EX-12.2 3 pnm6302012ex122.htm EXHIBIT 12.2

Exhibit 12.2 |
PUBLIC SERVICE COMPANY OF NEW MEXICO
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
|  | Six Months Ended |  | Year Ended December 31,
|  | June 30, 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008 |  | 2007
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 38,837 |  |  | $ | 75,217 |  |  | $ | 73,423 |  |  | $ | 73,104 |  |  | $ | 72,427 |  |  | $ | 58,045 |
Amortization of debt premium, discount and expenses |  | 898 |  |  | 1,325 |  |  | 1,274 |  |  | 1,336 |  |  | 4,345 |  |  | 4,618 |
Interest from discontinued operations (including capitalized interest) |  | — |  |  | — |  |  | — |  |  | 1,027 |  |  | 13,758 |  |  | 12,546 |
Estimated interest factor of lease rental charges |  | 1,893 |  |  | 4,139 |  |  | 4,103 |  |  | 4,517 |  |  | 4,553 |  |  | 4,661 |
Total Fixed Charges |  | $ | 41,628 |  |  | $ | 80,681 |  |  | $ | 78,800 |  |  | $ | 79,984 |  |  | $ | 95,083 |  |  | $ | 79,870 |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) from continuing operations before income taxes and non-controlling interest |  | $ | 62,111 |  |  | $ | 105,965 |  |  | $ | 107,288 |  |  | $ | 45,627 |  |  | $ | (69,324 | ) |  | $ | 34,611 |
Fixed charges as above |  | 41,628 |  |  | 80,681 |  |  | 78,800 |  |  | 79,984 |  |  | 95,083 |  |  | 79,870 |
Non-controlling interest in earnings of Valencia |  | (6,720 | ) |  | (14,047 | ) |  | (13,563 | ) |  | (11,890 | ) |  | (7,179 | ) |  | — |
Interest capitalized |  | (2,597 | ) |  | (1,761 | ) |  | (2,811 | ) |  | (6,067 | ) |  | (7,363 | ) |  | (10,033 | )
Earnings Available for Fixed Charges |  | $ | 94,422 |  |  | $ | 170,838 |  |  | $ | 169,714 |  |  | $ | 107,654 |  |  | $ | 11,217 |  |  | $ | 104,448 |
Ratio of Earnings to Fixed Charges |  | 2.27 |  |  | 2.12 |  | 1 | 2.15 |  |  | 1.35 |  |  | 0.12 |  | 2 | 1.31 |
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 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 2.33.
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.