EX-12.2 6 pnm3312018ex122.htm EXHIBIT 12.2

Exhibit 12.2 |  |
PUBLIC SERVICE COMPANY OF NEW MEXICO |
Ratio of Earnings to Fixed Charges |
(In thousands, except ratio) |
|  | Three Months Ended |  | Year Ended December 31, |
|  | March 31, 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |
Fixed charges, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 21,929 |  |  | $ | 86,121 |  |  | $ | 89,502 |  |  | $ | 84,695 |  |  | $ | 79,834 |  |  | $ | 79,769 |  |
Amortization of debt premium, discount and expenses |  | 634 |  |  | 2,677 |  |  | 2,312 |  |  | 1,978 |  |  | 1,944 |  |  | 1,879 |  |
Estimated interest factor of lease rental charges |  | 287 |  |  | 1,182 |  |  | 1,217 |  |  | 1,532 |  |  | 2,541 |  |  | 3,732 |  |
Total Fixed Charges |  | $ | 22,850 |  |  | $ | 89,980 |  |  | $ | 93,031 |  |  | $ | 88,205 |  |  | $ | 84,319 |  |  | $ | 85,380 |  |
Earnings, as defined by the Securities and Exchange Commission: |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) before income taxes and non-controlling interest |  | $ | 11,166 |  |  | $ | 168,968 |  |  | $ | 132,860 |  |  | $ | (13,082 | ) |  | $ | 154,086 |  |  | $ | 151,480 |  |
Fixed charges as above |  | 22,850 |  |  | 89,980 |  |  | 93,031 |  |  | 88,205 |  |  | 84,319 |  |  | 85,380 |  |
Non-controlling interest in earnings of Valencia |  | (3,677 | ) |  | (15,017 | ) |  | (14,519 | ) |  | (14,910 | ) |  | (14,127 | ) |  | (14,521 | ) |
Interest capitalized |  | (1,937 | ) |  | (6,917 | ) |  | (6,094 | ) |  | (8,530 | ) |  | (5,211 | ) |  | (4,420 | ) |
Earnings Available for Fixed Charges |  | $ | 28,402 |  |  | $ | 237,014 |  |  | $ | 205,278 |  |  | $ | 51,683 |  |  | $ | 219,067 |  |  | $ | 217,919 |  |
Ratio of Earnings to Fixed Charges |  | 1.24 |  |  | 2.63 |  | 1 | 2.21 |  | 2 | 0.59 |  | 3 | 2.60 |  | 4 | 2.55 |  | 5
1 Earnings (loss) before income taxes and non-controlling interest for the year ended December 31, 2017 includes a pre-tax loss of $27.0 million due to the write-off of regulatory disallowances and restructuring costs. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.93 for 2017.
2 Earnings (loss) before income taxes and non-controlling interest for the year ended December 31, 2016 includes a pre-tax loss of $15.0 million due to the write-off of regulatory disallowances and restructuring costs. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.37 for 2016.
3 The shortfall in earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $36.5 million for the year ended December 31, 2015. Earnings (loss) before income taxes includes a pre-tax loss of $167.5 million due to the write-off of regulatory disallowances and restructuring costs. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.48 for 2015.
4 Earnings (loss) before income taxes and non-controlling interest for the year ended December 31, 2014 includes a pre-tax loss of $1.1 million due to the write-off of regulatory disallowances. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.61 for 2014.
5 Earnings (loss) before income taxes and non-controlling interest for the year ended December 31, 2013 includes a pre-tax loss of $12.2 million due to the write-off of regulatory disallowances. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.70 for 2013.