EX-12.3 4 pnm6302013ex123.htm EXHIBIT 12.3

Exhibit 12.3 |
TEXAS-NEW MEXICO POWER COMPANY
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
|  | Six Months Ended |  | Year Ended December 31,
|  | June 30, 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 12,675 |  |  | $ | 26,233 |  |  | $ | 27,914 |  |  | $ | 28,632 |  |  | $ | 25,609 |  |  | $ | 17,861 |
Amortization of debt premium, discount and expenses |  | 672 |  |  | 1,493 |  |  | 1,679 |  |  | 2,683 |  |  | 3,355 |  |  | 1,504 |
Estimated interest factor of lease rental charges |  | 589 |  |  | 956 |  |  | 1,202 |  |  | 1,246 |  |  | 831 |  |  | 571 |
Total Fixed Charges |  | $ | 13,936 |  |  | $ | 28,682 |  |  | $ | 30,795 |  |  | $ | 32,561 |  |  | $ | 29,795 |  |  | $ | 19,936 |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes |  | $ | 19,410 |  |  | $ | 42,099 |  |  | $ | 36,138 |  |  | $ | 26,026 |  |  | $ | 20,151 |  |  | $ | 2,335 |
Fixed charges as above |  | 13,936 |  |  | 28,682 |  |  | 30,795 |  |  | 32,561 |  |  | 29,795 |  |  | 19,936 |
Interest capitalized |  | (237 | ) |  | (706 | ) |  | (593 | ) |  | (158 | ) |  | (1,144 | ) |  | (1,025 | )
Earnings Available for Fixed Charges |  | $ | 33,109 |  |  | $ | 70,075 |  |  | $ | 66,340 |  |  | $ | 58,429 |  |  | $ | 48,802 |  |  | $ | 21,246 |
Ratio of Earnings to Fixed Charges |  | 2.38 |  |  | 2.44 |  |  | 2.15 |  | 1 | 1.79 |  |  | 1.64 |  |  | 1.07 |
1 Earnings from continuing operations before income taxes for the year ended December 31, 2011 includes a pre-tax loss of $3.9 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.28.