EX-12.2 5 pnm6302015ex122.htm PNM 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, 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 40,695 |  |  | $ | 79,834 |  |  | $ | 79,769 |  |  | $ | 82,864 |  |  | $ | 75,217 |  |  | $ | 73,423 |  |
Amortization of debt premium, discount and expenses |  | 894 |  |  | 1,944 |  |  | 1,879 |  |  | 1,818 |  |  | 1,325 |  |  | 1,274 |  |
Estimated interest factor of lease rental charges |  | 845 |  |  | 2,541 |  |  | 3,732 |  |  | 3,743 |  |  | 4,139 |  |  | 4,103 |  |
Total Fixed Charges |  | $ | 42,434 |  |  | $ | 84,319 |  |  | $ | 85,380 |  |  | $ | 88,425 |  |  | $ | 80,681 |  |  | $ | 78,800 |  |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes and non-controlling interest |  | $ | 56,168 |  |  | $ | 154,086 |  |  | $ | 151,480 |  |  | $ | 156,314 |  |  | $ | 105,965 |  |  | $ | 107,288 |  |
Fixed charges as above |  | 42,434 |  |  | 84,319 |  |  | 85,380 |  |  | 88,425 |  |  | 80,681 |  |  | 78,800 |  |
Non-controlling interest in earnings of Valencia |  | (7,231 | ) |  | (14,127 | ) |  | (14,521 | ) |  | (14,050 | ) |  | (14,047 | ) |  | (13,563 | ) |
Interest capitalized |  | (2,852 | ) |  | (5,211 | ) |  | (4,420 | ) |  | (4,314 | ) |  | (1,761 | ) |  | (2,811 | ) |
Earnings Available for Fixed Charges |  | $ | 88,519 |  |  | $ | 219,067 |  |  | $ | 217,919 |  |  | $ | 226,375 |  |  | $ | 170,838 |  |  | $ | 169,714 |  |
Ratio of Earnings to Fixed Charges |  | 2.09 |  | 1 | 2.60 |  | 2 | 2.55 |  | 2 | 2.56 |  |  | 2.12 |  | 3 | 2.15 |  |
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the six months ended June 30, 2015 includes a pre-tax loss $1.7 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.13.
2 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the years ended December 31, 2014 and December 31, 2013 include pre-tax losses of $1.1 million and $12.2 million due to the write-off of regulatory disallowances. If these losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.61 for 2014 and 2.70 for 2013.
3 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.