EX-12.1 2 dex121.htm PNMR - RATIO OF EARNINGS TO FIXED CHARGES PNMR - Ratio of Earnings to Fixed Charges
  PNM RESOURCES, INC. AND SUBSIDIARIES   Exhibit 12.1

Ratio of Earnings to Fixed Charges

(In thousands, except ratio)

 

    Six Months Ended
June 30, 2010		   Year Ended December 31,
      2009   2008     2007   2006   2005

Fixed charges, as defined by the Securities and Exchange Commission:

            

Interest expensed and capitalized

     $ 62,699       $ 123,833       $ 134,958          $ 124,299       $ 135,819     $ 83,402  

Amortization of debt premium, discount and expenses

     2,340       5,430       6,386          6,566       4,729       3,962  

Interest from discontinued operations (including capitalized interest)

     -       1,027       13,758          12,546       11,790       10,658  

Estimated interest factor of lease rental charges

     3,235       7,034       7,894          8,804       7,124       7,568  

Preferred dividend requirements of subsidiary

     371       759       689          556       798       4,063  
                                     

Total Fixed Charges

     $ 68,645       $ 138,083       $ 163,685          $ 152,771       $ 160,260       $ 109,653  
                                     

Earnings, as defined by the Securities and Exchange Commission:

            

Earnings from continuing operations before income taxes and non-controlling interest

     $ 29,641       $ 94,751       $ (388,381)         $ 63,112       $ 164,018       $ 76,502  

(Earnings) loss of equity investee

     8,210       30,145       29,687          (7,581)      -           -      
                                     

Earnings from continuing operations before income taxes, non-controlling interest, and investee earnings

     37,851       124,896       (358,694)         55,531       164,018       76,502  

Fixed charges as above

     68,645       138,083       163,685          152,771       160,260       109,653  

Interest capitalized

     (2,098)      (7,743)      (8,849)         (10,740)      (6,503)      (4,025) 

Non-controlling interest in earnings of Valencia

     (6,396)      (11,890)      (7,179)         -           -           -      

Preferred dividend requirements of subsidiary

     (371)      (759)      (689)         (556)      (798)      (4,063) 
                                     

Earnings Available for Fixed Charges

     $ 97,631       $         242,587       $         (211,726)         $         197,006       $         316,977       $ 178,067  
                                     

Ratio of Earnings to Fixed Charges

     1.42       1.76       N/M   *      1.29       1.98       1.62  
                                     

* The ratio of earnings to fixed charges for the year ended December 31, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008.