| PNM      RESOURCES, INC. AND SUBSIDIARIES |                                                                                                                                                                                                                          |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ratio      of Earnings to Fixed Charges   |                                                                                                                                                                                                                          |
| (In      thousands, except ratio)         |                                                                                                                                                                                                                          |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          | Six      Months Ended |   | Year      Ended December 31, |   |
|                                      |                                                                                                                                                                                                                          | June      30, 2009 |   | 2008 |   | 2007 |   | 2006 |   | 2005 |   | 2004 |   |
|                                      | Fixed      charges, as defined by the Securities and Exchange                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Commission:                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Interest      on long-term debt (including interest capitalized)                                                                                                                                                              |  $                       54,705 |   |  $                   98,455 |   |  $              85,757 |   |  $         87,755 |   |  $        67,463 |   |  $            35,445 |   |
|                                      | Amortization      of debt premium, discount and expenses                                                                                                                                                                      |                             3,049 |   |                         6,386 |   |                    6,566 |   |               4,729 |   |              3,962 |   |                  3,036 |   |
|                                      | Other      interest (including interest capitalized)                                                                                                                                                                          |                             6,915 |   |                       36,503 |   |                  38,542 |   |             48,064 |   |            15,939 |   |                  3,464 |   |
|                                      | Estimated      interest factor of lease rental charges                                                                                                                                                                        |                             7,599 |   |                       17,632 |   |                  19,308 |   |             19,235 |   |            19,934 |   |                18,843 |   |
|                                      | Preferred      dividend requirements of subsidiary                                                                                                                                                                            |                                350 |   |                            689 |   |                       556 |   |                  798 |   |              4,063 |   |                     881 |   |
|                                      |      Total      Fixed Charges                                                                                                                                                                        |  $                       72,618 |   |  $                 159,665 |   |  $            150,729 |   |  $       160,581 |   |  $      111,361 |   |  $            61,669 |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Earnings,      as defined by the Securities and Exchange                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Commission:                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Earnings      from continuing operations before income taxes and non-controlling      interest                                                                                                                                |  $                       26,279 |   |  $               (388,381) | * |  $              63,112 |   |  $       164,018 |   |  $        76,502 |   |  $          107,060 |   |
|                                      | (Earnings)      loss of equity investee                                                                                                                                                                                       |                             5,958 |   |                       29,687 |   |                   (7,581) |   |                     - |   |                    - |   |                       - |   |
|                                      | Earnings      from continuing operations before income taxes, non-controlling      interest,  and investee earnings                                                                                                 |                           32,237 |   |                   (358,694) |   |                  55,531 |   |           164,018 |   |            76,502 |   |              107,060 |   |
|                                      | Fixed      charges as above                                                                                                                                                                                                   |                           72,618 |   |                     159,665 |   | 150,729 |   | 160,581 |   | 111,361 |   | 61,669 |   |
|                                      | Interest      capitalized                                                                                                                                                                                                     |                           (4,265) |   |                       (8,301) |   |                 (10,419) |   |              (6,128) |   |            (3,626) |   |                (2,445) |   |
|                                      | Non-controlling      interest in earnings of Valencia                                                                                                                                                                         |                           (5,354) |   |                       (7,179) |   |                          - |   |                     - |   |                    - |   |                       - |   |
|                                      | Preferred      dividend requirements of subsidiary                                                                                                                                                                            |                              (350) |   |                          (689) |   | (556) |   | (798) |   | (4,063) |   | (881) |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Earnings      Available for Fixed Charges                                                                                                                                                                                     |  $                       94,886 |   |  $               (215,198) |   |  $            195,285 |   |  $       317,673 |   |  $      180,174 |   |  $          165,403 |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | Ratio      of Earnings to Fixed Charges                                                                                                                                                                                       |                               1.31 |   | N/M | ** | 1.30 |   | 1.98 |   | 1.62 |   | 2.68 |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | *      The presentation of non-controlling interest in earnings of Valencia was      changed effective January 1, 2009 in accordance with SFAS      160.  The 2008 presentation has been changed                    |   |
|                                      | to      be consistent with 2009.  There is no impact on periods prior to      2008.                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      | **      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 $374.9 million for the twelve months ended December 31,      2008.                                                            |   |   |   |   |   |
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