EX-12.2 3 pnm6302014ex122.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, 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009 |
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 39,778 |  |  | $ | 79,769 |  |  | $ | 82,864 |  |  | $ | 75,217 |  |  | $ | 73,423 |  |  | $ | 73,104 |  |
Amortization of debt premium, discount and expenses |  | 977 |  |  | 1,879 |  |  | 1,818 |  |  | 1,325 |  |  | 1,274 |  |  | 1,336 |  |
Interest from discontinued operations (including capitalized interest) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,027 |  |
Estimated interest factor of lease rental charges |  | 1,761 |  |  | 3,732 |  |  | 3,743 |  |  | 4,139 |  |  | 4,103 |  |  | 4,517 |  |
Total Fixed Charges |  | $ | 42,516 |  |  | $ | 85,380 |  |  | $ | 88,425 |  |  | $ | 80,681 |  |  | $ | 78,800 |  |  | $ | 79,984 |  |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes and non-controlling interest |  | $ | 52,649 |  |  | $ | 151,480 |  |  | $ | 156,314 |  |  | $ | 105,965 |  |  | $ | 107,288 |  |  | $ | 45,627 |  |
Fixed charges as above |  | 42,516 |  |  | 85,380 |  |  | 88,425 |  |  | 80,681 |  |  | 78,800 |  |  | 79,984 |  |
Non-controlling interest in earnings of Valencia |  | (7,439 | ) |  | (14,521 | ) |  | (14,050 | ) |  | (14,047 | ) |  | (13,563 | ) |  | (11,890 | ) |
Interest capitalized |  | (2,345 | ) |  | (4,420 | ) |  | (4,314 | ) |  | (1,761 | ) |  | (2,811 | ) |  | (6,067 | ) |
Earnings Available for Fixed Charges |  | $ | 85,381 |  |  | $ | 217,919 |  |  | $ | 226,375 |  |  | $ | 170,838 |  |  | $ | 169,714 |  |  | $ | 107,654 |  |
Ratio of Earnings to Fixed Charges |  | 2.01 |  |  | 2.55 |  | 1 | 2.56 |  |  | 2.12 |  | 2 | 2.15 |  |  | 1.35 |  |
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2013 includes a pre-tax loss $12.2 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.70.
2 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss $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.