| PNM      RESOURCES, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                       |   |
| (In      thousands, except ratio)                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   | Nine      Months Ended |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   | September      30, |   |   | Year      Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
| Fixed      charges, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                                                                                                                                                                                                                                                                                                                                                               |   | $ | 72,622 |   |   | $ | 81,638 |   |   | $ | 84,773 |   |   | $ | 66,042 |   |   | $ | 34,488 |   |   | $ | 48,483 |   |
| Amortization      of debt premium, discount and expenses                                                                                                                                                                                                                                                                                                                                      |   |   | 5,227 |   |   |   | 6,566 |   |   |   | 4,729 |   |   |   | 3,962 |   |   |   | 3,036 |   |   |   | 2,990 |   |
| Other      interest                                                                                                                                                                                                                                                                                                                                                                           |   |   | 21,247 |   |   |   | 32,242 |   |   |   | 44,918 |   |   |   | 13,734 |   |   |   | 1,976 |   |   |   | 3,922 |   |
| Estimated      interest factor of lease rental charges                                                                                                                                                                                                                                                                                                                                        |   |   | 13,219 |   |   |   | 19,308 |   |   |   | 19,235 |   |   |   | 19,934 |   |   |   | 18,843 |   |   |   | 19,568 |   |
| Interest      capitalized                                                                                                                                                                                                                                                                                                                                                                     |   |   | 415 |   |   |   | 4,119 |   |   |   | 2,982 |   |   |   | 1,421 |   |   |   | 957 |   |   |   | 1,163 |   |
| Preferred      dividend requirements of subsidiaries                                                                                                                                                                                                                                                                                                                                          |   |   | 495 |   |   |   | 556 |   |   |   | 798 |   |   |   | 4,063 |   |   |   | 881 |   |   |   | 845 |   |
|      Total      Fixed Charges                                                                                                                                                                                                                                                                                                                                        |   | $ | 113,225 |   |   | $ | 144,429 |   |   | $ | 157,435 |   |   | $ | 109,156 |   |   | $ | 60,181 |   |   | $ | 76,971 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings,      as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                  |   | $ | (277,421 | ) |   | $ | 63,112 |   |   | $ | 164,018 |   |   | $ | 76,502 |   |   | $ | 107,060 |   |   | $ | 68,267 |   |
| (Earnings)      of equity investee                                                                                                                                                                                                                                                                                                                                                            |   |   | 29,091 |   |   |   | (7,581 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Earnings      from continuing operations before income taxes and  investee      earnings                                                                                                                                                                                                                                                                                            |   |   | (248,330 | ) |   |   | 55,531 |   |   |   | 164,018 |   |   |   | 76,502 |   |   |   | 107,060 |   |   |   | 68,267 |   |
| Fixed      charges as above                                                                                                                                                                                                                                                                                                                                                                   |   |   | 113,225 |   |   |   | 144,429 |   |   |   | 157,435 |   |   |   | 109,156 |   |   |   | 60,181 |   |   |   | 76,971 |   |
| Interest      capitalized                                                                                                                                                                                                                                                                                                                                                                     |   |   | (415 | ) |   |   | (4,119 | ) |   |   | (2,982 | ) |   |   | (1,421 | ) |   |   | (957 | ) |   |   | (1,163 | ) |
| Preferred      dividend requirements of subsidiaries                                                                                                                                                                                                                                                                                                                                          |   |   | (495 | ) |   |   | (556 | ) |   |   | (798 | ) |   |   | (4,063 | ) |   |   | (881 | ) |   |   | (845 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                     |   | $ | (136,015 | ) |   | $ | 195,285 |   |   | $ | 317,673 |   |   | $ | 180,174 |   |   | $ | 165,403 |   |   | $ | 143,230 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                       |   |   | N/M | * |   |   | 1.35 |   |   |   | 2.02 |   |   |   | 1.65 |   |   |   | 2.75 |   |   |   | 1.86 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *      The ratio of earnings to fixed charges for the nine months ended September      30, 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 $249.2 million for the nine months ended September 30,      2008. |   |
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