| PNM RESOURCES, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                          |   |
| (In thousands, except ratio)                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three Months Ended |   |   | Year Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   | March 31, 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Fixed charges, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expensed and capitalized                                                                                                                                                                                                                                                                                                                                                                           |   | $ | 31,306 |   |   | $ | 123,833 |   |   | $ | 134,958 |   |   | $ | 124,299 |   |   | $ | 135,819 |   |
| Amortization of debt premium, discount and expenses                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,178 |   |   |   | 5,430 |   |   |   | 6,386 |   |   |   | 6,566 |   |   |   | 4,729 |   |
| Interest from discontinued operations (including capitalized interest)                                                                                                                                                                                                                                                                                                                                      |   |   | - |   |   |   | 1,027 |   |   |   | 13,758 |   |   |   | 12,546 |   |   |   | 11,790 |   |
| Estimated interest factor of lease rental charges                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,384 |   |   |   | 7,034 |   |   |   | 7,894 |   |   |   | 8,804 |   |   |   | 7,124 |   |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                                                                               |   |   | 257 |   |   |   | 759 |   |   |   | 689 |   |   |   | 556 |   |   |   | 798 |   |
|      Total Fixed Charges                                                                                                                                                                                                                                                                                                                                                           |   | $ | 34,125 |   |   | $ | 138,083 |   |   | $ | 163,685 |   |   | $ | 152,771 |   |   | $ | 160,260 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from continuing operations before income taxes and non-controlling interest                                                                                                                                                                                                                                                                                                                        |   | $ | (10,153 | ) |   | $ | 94,751 |   |   | $ | (388,381 | ) |   | $ | 63,112 |   |   | $ | 164,018 |   |
| (Earnings) loss of equity investee                                                                                                                                                                                                                                                                                                                                                                          |   |   | 4,352 |   |   |   | 30,145 |   |   |   | 29,687 |   |   |   | (7,581 | ) |   |   | - |   |
| Earnings from continuing operations before income taxes, non-controlling interest, and investee earnings                                                                                                                                                                                                                                                                                               |   |   | (5,801 | ) |   |   | 124,896 |   |   |   | (358,694 | ) |   |   | 55,531 |   |   |   | 164,018 |   |
| Fixed charges as above                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 34,125 |   |   |   | 138,083 |   |   |   | 163,685 |   |   |   | 152,771 |   |   |   | 160,260 |   |
| Interest capitalized                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (1,186 | ) |   |   | (7,743 | ) |   |   | (8,849 | ) |   |   | (10,740 | ) |   |   | (6,503 | ) |
| Non-controlling interest in earnings of Valencia                                                                                                                                                                                                                                                                                                                                                            |   |   | (3,103 | ) |   |   | (11,890 | ) |   |   | (7,179 | ) |   |   | - |   |   |   | - |   |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                                                                               |   |   | (257 | ) |   |   | (759 | ) |   |   | (689 | ) |   |   | (556 | ) |   |   | (798 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 23,778 |   |   | $ | 242,587 |   |   | $ | (211,726 | ) |   | $ | 197,006 |   |   | $ | 316,977 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                          |   |   | 0.70 | * |   |   | 1.76 |   |   |   | N/M | * |   |   | 1.29 |   |   |   | 1.98 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| * 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 of 1.00 amounted to $10.3 million for the three months ended March 31, 2010 and $375.4 million for the year ended December 31, 2008. |   |
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