EX-12.3 5 pnm12312015ex123.htm EXHIBIT 12.3

Exhibit 12.3 |  |
TEXAS-NEW MEXICO POWER COMPANY |
Ratio of Earnings to Fixed Charges |
(In thousands, except ratio) |
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 25,875 |  |  | $ | 24,941 |  |  | $ | 24,481 |  |  | $ | 26,233 |  |  | $ | 27,914 |  |
Amortization of debt premium, discount, and expenses |  | 1,100 |  |  | 1,195 |  |  | 1,159 |  |  | 1,493 |  |  | 1,679 |  |
Estimated interest factor of lease rental charges |  | 1,229 |  |  | 1,311 |  |  | 1,241 |  |  | 956 |  |  | 1,202 |  |
Total Fixed Charges |  | $ | 28,204 |  |  | $ | 27,447 |  |  | $ | 26,881 |  |  | $ | 28,682 |  |  | $ | 30,795 |  |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes |  | $ | 66,088 |  |  | $ | 60,330 |  |  | $ | 46,711 |  |  | $ | 42,099 |  |  | $ | 36,138 |  |
Fixed charges as above |  | 28,204 |  |  | 27,447 |  |  | 26,881 |  |  | 28,682 |  |  | 30,795 |  |
Interest capitalized |  | (593 | ) |  | (609 | ) |  | (361 | ) |  | (706 | ) |  | (593 | ) |
Earnings Available for Fixed Charges |  | $ | 93,699 |  |  | $ | 87,168 |  |  | $ | 73,231 |  |  | $ | 70,075 |  |  | $ | 66,340 |  |
Ratio of Earnings to Fixed Charges |  | 3.32 |  |  | 3.18 |  |  | 2.72 |  |  | 2.44 |  |  | 2.15 |  | 1
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.