exh12-2_031711.htm

											Exhibit 12.2
PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(In thousands, except ratio)

	Year Ended December 31,
	2010				2009			2008				2007			2006
Combined fixed charges and preferred stock dividends, as defined by the Securities and
Exchange Commission:

Interest expensed and capitalized	$	123,633			$	123,833		$	134,958			$	124,299		$	135,819
Amortization of debt premium, discount and expenses		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		6,888				7,034			7,894				8,804			7,124
Preferred dividend requirements of subsidiary		1,075				759			689				556			798
Total Fixed Charges	$	136,223			$	138,083		$	163,685			$	152,771		$	160,260


Preferred stock dividend requirements	$	4,865			$	4,865		$	1,216			$	-		$	-

Total Combined Fixed Charges and Preferred Stock Dividends	$	141,088			$	142,948		$	164,901			$	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	$	(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		(48,156	)			124,896			(358,694	)			55,531			164,018
Fixed charges as above		136,223				138,083			163,685				152,771			160,260
Interest capitalized		(3,401	)			(7,743	)		(8,849	)			(10,740	)		(6,503	)
Non-controlling interest in earnings of Valencia		(13,563	)			(11,890	)		(7,179	)			-			-
Preferred dividend requirements of subsidiary		(1,075	)			(759	)		(689	)			(556	)		(798	)

Earnings Available for Combined Fixed Charges and Preferred Stock Dividends	$	70,028			$	242,587		$	(211,726	)		$	197,006		$	316,977

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends		0.50		1		1.70			N/M		2		1.29			1.98

	1 The shortfall in the earnings available for combined fixed charges and preferred stock divendends to achieve a ratio of earnings to combined fixed charges and preferred stock dividends of 1.00 amounted to $71.1 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 combined fixed charges and preferred stock dividends would have been 1.83.

	2 The ratio of earnings to combinded fixed charges and preferred stock dividends for the year ended December 31, 2008 is not meaningful since earnings available for combined fixed charges and preferred stock dividends is negative. The shortfall in the earnings available for combined fixed charges and preferred stock dividends to achieve a ratio of earnings to combined fixed charges and preferred stock dividends of 1.00 amounted to $376.6 million for the year ended December 31, 2008.