EXHIBIT 12.01

EL PASO ELECTRIC COMPANY

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Thousands)

	Years Ended December 31,
	2009		2008		2007		2006		2005
Earnings from Continuing Operations (a)	99,977		115,451		109,220		87,453		55,204
Fixed Charges (b)
Interest charges	50,908		48,813		37,648		36,744		41,461
Interest portion of rent expense	929		1,085		1,181		1,186		1,251
Total Fixed Charges	51,837		49,898		38,829		37,930		42,712
Capitalized Interest	(16,283	)	(15,872	)	(11,897	)	(4,907	)	(5,783	)
Earnings (c)	135,531		149,477		136,152		120,476		92,133
Ratio of Earnings to Fixed Charges	2.6		3.0		3.5		3.2		2.2

(a) Earnings from continuing operations consist of income from continuing operations before income taxes, extraordinary item and cumulative effects of accounting changes.

(b) Fixed charges consist of all interest on indebtedness, amortization of debt discount and expense and the estimated portion of rental expense that represents an interest factor.

(c) Earnings consist of earnings from continuing operations and fixed charges less AFUDC and capitalized interest.