| PNM RESOURCES, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                           |   |
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| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                             |   |
| (In thousands, except ratio)                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   | Year Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                           |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Fixed charges, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on long-term debt (including interest capitalized)                                                                                                                                                                                                                                                                                    |   | $ | 113,574 |   |   | $ | 98,455 |   |   | $ | 85,757 |   |   | $ | 87,755 |   |   | $ | 67,463 |   |
| Amortization of debt premium, discount and expenses                                                                                                                                                                                                                                                                                            |   |   | 5,430 |   |   |   | 6,386 |   |   |   | 6,566 |   |   |   | 4,729 |   |   |   | 3,962 |   |
| Other interest (including interest capitalized)                                                                                                                                                                                                                                                                                                |   |   | 10,259 |   |   |   | 36,503 |   |   |   | 38,542 |   |   |   | 48,064 |   |   |   | 15,939 |   |
| Interest from discontinued operations (including capitalized interest)                                                                                                                                                                                                                                                                         |   |   | 1,027 |   |   |   | 13,758 |   |   |   | 12,546 |   |   |   | 11,790 |   |   |   | 10,658 |   |
| Estimated interest factor of lease rental charges                                                                                                                                                                                                                                                                                              |   |   | 7,034 |   |   |   | 7,894 |   |   |   | 8,804 |   |   |   | 7,124 |   |   |   | 7,568 |   |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                  |   |   | 759 |   |   |   | 689 |   |   |   | 556 |   |   |   | 798 |   |   |   | 4,063 |   |
|      Total Fixed Charges                                                                                                                                                                                                                                                                                              |   | $ | 138,083 |   |   | $ | 163,685 |   |   | $ | 152,771 |   |   | $ | 160,260 |   |   | $ | 109,653 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from continuing operations before income taxes and non-controlling interest                                                                                                                                                                                                                                                           |   | $ | 94,751 |   |   | $ | (388,381 | ) |   | $ | 63,112 |   |   | $ | 164,018 |   |   | $ | 76,502 |   |
| (Earnings) loss of equity investee                                                                                                                                                                                                                                                                                                             |   |   | 30,145 |   |   |   | 29,687 |   |   |   | (7,581 | ) |   |   | - |   |   |   | - |   |
| Earnings from continuing operations before income taxes, non-controlling interest,  and investee earnings                                                                                                                                                                                                                            |   |   | 124,896 |   |   |   | (358,694 | ) |   |   | 55,531 |   |   |   | 164,018 |   |   |   | 76,502 |   |
| Fixed charges as above                                                                                                                                                                                                                                                                                                                         |   |   | 138,083 |   |   |   | 163,685 |   |   |   | 152,771 |   |   |   | 160,260 |   |   |   | 109,653 |   |
| Interest capitalized                                                                                                                                                                                                                                                                                                                           |   |   | (7,743 | ) |   |   | (8,849 | )  |   |   | (10,740 | ) |   |   | (6,503 | ) |   |   | (4,025 | ) |
| Non-controlling interest in earnings of Valencia                                                                                                                                                                                                                                                                                               |   |   | (11,890 | ) |   |   | (7,179 | )  |   |   | - |   |   |   | - |   |   |   | - |   |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                  |   |   | (759 | ) |   |   | (689 | )  |   |   | (556 | ) |   |   | (798 | ) |   |   | (4,063 | ) |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                                           |   | $ | 242,587 |   |   | $ | (211,726 | )  |   | $ | 197,006 |   |   | $ | 316,977 |   |   | $ | 178,067 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                             |   |   | 1.76 |   |   |   | N/M |   | * |   | 1.29 |   |   |   | 1.98 |   |   |   | 1.62 |   |
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| * The ratio of earnings to fixed charges for the year ended December 31, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of1.00 amounted to $375.4 million for the year ended December 31, 2008. |   |
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