EX-12.3 5 pnm9302011ex123.htm EXHIBIT 12.3

Exhibit 12.3 |
PUBLIC SERVICE COMPANY OF NEW MEXICO
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
|  | Nine Months Ended |  | Year Ended December 31,
|  | September 30, 2011 |  | 2010 |  | 2009 |  | 2008 |  | 2007 |  | 2006
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 54,468 |  |  | $ | 73,423 |  |  | $ | 73,104 |  |  | $ | 72,427 |  |  | $ | 58,045 |  |  | $ | 49,379 |
Amortization of debt premium, discount and expenses |  | 919 |  |  | 1,274 |  |  | 1,336 |  |  | 4,345 |  |  | 4,618 |  |  | 2,871 |
Interest from discontinued operations (including capitalized interest) |  | — |  |  | — |  |  | 1,027 |  |  | 13,758 |  |  | 12,546 |  |  | 11,790 |
Estimated interest factor of lease rental charges |  | 3,114 |  |  | 4,103 |  |  | 4,517 |  |  | 4,553 |  |  | 4,661 |  |  | 4,337 |
Total Fixed Charges |  | $ | 58,501 |  |  | $ | 78,800 |  |  | $ | 79,984 |  |  | $ | 95,083 |  |  | $ | 79,870 |  |  | $ | 68,377 |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) from continuing operations before income taxes and non-controlling interest |  | $ | 78,208 |  |  | $ | 107,288 |  |  | $ | 45,627 |  |  | $ | (69,324 | ) |  | $ | 34,611 |  |  | $ | 89,657 |
Fixed charges as above |  | 58,501 |  |  | 78,800 |  |  | 79,984 |  |  | 95,083 |  |  | 79,870 |  |  | 68,377 |
Non-controlling interest in earnings of Valencia |  | (10,764 | ) |  | (13,563 | ) |  | (11,890 | ) |  | (7,179 | ) |  | — |  |  | — |
Interest capitalized |  | (1,220 | ) |  | (2,811 | ) |  | (6,067 | ) |  | (7,363 | ) |  | (10,033 | ) |  | (5,257 | )
Earnings Available for Fixed Charges |  | $ | 124,725 |  |  | $ | 169,714 |  |  | $ | 107,654 |  |  | $ | 11,217 |  |  | $ | 104,448 |  |  | $ | 152,777 |
Ratio of Earnings to Fixed Charges |  | 2.13 |  | 1 | 2.15 |  |  | 1.35 |  |  | 0.12 |  | 2 | 1.31 |  |  | 2.23 |
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the nine months ended September 30, 2011 includes a pre-tax loss of $17.5 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.43.
2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $83.9 million for the year December 31, 2008.