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| Exhibit 12.3                                                                                                                                                                                                                                                                                                                  |   |
| PUBLIC SERVICE COMPANY OF NEW MEXICO                                                                                                                                                                                                                                                                                          |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                            |
| (In thousands, except ratio)                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | Six Months Ended |   | Year Ended December 31, |
|                                                                                                                                                                                                                                                                                                                          |   | June 30, 2011 |   | 2010 |   | 2009 |   | 2008 |   | 2007 |   | 2006 |
| Fixed charges, as defined by the Securities and Exchange Commission:                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expensed and capitalized                                                                                                                                                                                                                                                                                             |   | $ | 36,024 |  |   | $ | 73,423 |  |   | $ | 73,104 |  |   | $ | 72,427 |  |   | $ | 58,045 |  |   | $ | 49,379 |  |
| Amortization of debt premium, discount and expenses                                                                                                                                                                                                                                                                           |   | 613 |  |   | 1,274 |  |   | 1,336 |  |   | 4,345 |  |   | 4,618 |  |   | 2,871 |  |
| Interest from discontinued operations (including capitalized interest)                                                                                                                                                                                                                                                        |   | — |  |   | — |  |   | 1,027 |  |   | 13,758 |  |   | 12,546 |  |   | 11,790 |  |
| Estimated interest factor of lease rental charges                                                                                                                                                                                                                                                                             |   | 2,098 |  |   | 4,103 |  |   | 4,517 |  |   | 4,553 |  |   | 4,661 |  |   | 4,337 |  |
|      Total Fixed Charges                                                                                                                                                                                                                                                                             |   | $ | 38,735 |  |   | $ | 78,800 |  |   | $ | 79,984 |  |   | $ | 95,083 |  |   | $ | 79,870 |  |   | $ | 68,377 |  |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings, as defined by the Securities and Exchange Commission:                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations before income taxes and non-controlling interest                                                                                                                                                                                                                                   |   | $ | 10,583 |  |   | $ | 107,288 |  |   | $ | 45,627 |  |   | $ | (69,324 | ) |   | $ | 34,611 |  |   | $ | 89,657 |  |
| Fixed charges as above                                                                                                                                                                                                                                                                                                        |   | 38,735 |  |   | 78,800 |  |   | 79,984 |  |   | 95,083 |  |   | 79,870 |  |   | 68,377 |  |
| Non-controlling interest in earnings of Valencia                                                                                                                                                                                                                                                                              |   | (6,652 | ) |   | (13,563 | ) |   | (11,890 | ) |   | (7,179 | ) |   | — |  |   | — |  |
| Interest capitalized                                                                                                                                                                                                                                                                                                          |   | (814 | ) |   | (2,811 | ) |   | (6,067 | ) |   | (7,363 | ) |   | (10,033 | ) |   | (5,257 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                          |   | $ | 41,852 |  |   | $ | 169,714 |  |   | $ | 107,654 |  |   | $ | 11,217 |  |   | $ | 104,448 |  |   | $ | 152,777 |  |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                            |   | 1.08 |  | 1  | 2.15 |  |   | 1.35 |  |   | 0.12 |  | 2  | 1.31 |  |   | 2.23 |  |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the six months ended June 30, 2011 includes a pre-tax loss of $17.5 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.53. |
|                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| 2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $83.9 million for the year December 31, 2008.                                                                                                                                            |