EX-12.1 8 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

PNM RESOURCES, INC. AND SUBSIDIARIES

Ratio of Earnings to Fixed Charges

(In thousands, except ratio)

 

     Three Months Ended
March 31, 2011		     Year Ended December 31,  
     2010     2009     2008     2007     2006  

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

             

Interest expensed and capitalized

    $ 30,132      $ 123,633      $ 123,833      $ 134,958      $ 124,299      $ 135,819   

Amortization of debt premium, discount and expenses

      913        4,627        5,430        6,386        6,566        4,729   

Interest from discontinued operations (including capitalized interest)

      —          —          1,027        13,758        12,546        11,790   

Estimated interest factor of lease rental charges

      1,726        6,888        7,034        7,894        8,804        7,124   

Preferred dividend requirements of subsidiary

      195        1,075        759        689        556        798   
                                                

Total Fixed Charges

    $ 32,966      $ 136,223      $ 138,083      $ 163,685      $ 152,771      $ 160,260   
                                                

Earnings, as defined by the Securities and Exchange Commission:

             

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

    $ 29,458      $ (63,379 )    $ 94,751      $ (388,381 )    $ 63,112      $ 164,018   

(Earnings) loss of equity investee

      —          15,223        30,145        29,687        (7,581 )      —     
                                                

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

      29,458        (48,156 )      124,896        (358,694 )      55,531        164,018   

Fixed charges as above

      32,966        136,223        138,083        163,685        152,771        160,260   

Interest capitalized

      (572 )      (3,401 )      (7,743 )      (8,849 )      (10,740 )      (6,503 ) 

Non-controlling interest in earnings of Valencia

      (3,183 )      (13,563 )      (11,890 )      (7,179 )      —          —     

Preferred dividend requirements of subsidiary

      (195 )      (1,075 )      (759 )      (689 )      (556 )      (798 ) 
                                                

Earnings Available for Fixed Charges

    $ 58,474      $ 70,028      $ 242,587      $ (211,726 )    $ 197,006      $ 316,977   
                                                

Ratio of Earnings to Fixed Charges

      1.77        0.51 1      1.76        N/M 2      1.29        1.98   
                                                

 

1

The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010. Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR’s investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90.

2

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 to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008.