|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   | Exhibit 12.3 |   |
|-------------------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------|--------|
| TEXAS-NEW MEXICO POWER COMPANY                              |   |
| 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) |   | $                       | 22,232 |   |   | $      | 12,427 |   |   | $      | 22,394 |   |   | $            | 25,728 |   |   | $ | 25,727 |   |
| Amortization of debt premium, discount and expenses         |   |                    | 3,355  |   |   |   | 1,504  |   |   |   | 1,925  |   |   |         | 1,695  |   |   |   | 2,111 |   |
| Other interest (including interest capitalized)             |   |                    | 3,377  |   |   |   | 5,434  |   |   |   | 1,129  |   |   |         | 1,646  |   |   |   | 179 |   |
| Estimated interest factor of lease rental charges           |   |                    | 831    |   |   |   | 571    |   |   |   | 844    |   |   |         | 367    |   |   |   | 377 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Total Fixed Charges                                         |   | $                       | 29,795 |   |   | $      | 19,936 |   |   | $      | 26,292 |   |   | $            | 29,436 |   |   | $ | 28,394 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Earnings, as defined by the Securities and Exchange         |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Commission:                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Earnings from continuing operations before income taxes     |   | $                       | 20,151 |   |   | $      | 2,335  |   |   | $      | 29,055 |   |   | $            | 17,905 |   |   | $ | 25,183 |   |
| Fixed charges as above                                      |   |                    | 29,795 |   |   |   | 19,936 |   |   |   | 26,292 |   |   |         | 29,436 |   |   |   | 28,394 |   |
| Interest capitalized                                        |   |                    | (1,144 | )      |   |   | (1,025 | )      |   |   | (332   | )      |   |         | (209   | ) |   |   | (200 | ) |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Earnings Available for Fixed Charges                        |   | $                       | 48,802 |   |   | $      | 21,246 |   |   | $      | 55,015 |   |   | $            | 47,132 |   |   | $ | 53,377 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                          |   |                    | 1.64   |   |   |   | 1.07   |   |   |   | 2.09   |   |   |         | 1.60   |   |   |   | 1.88 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |         |   |   |   |   |   |   |

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