|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Exhibit 12.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| PNM RESOURCES, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 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                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 60,265 |  |   |   | $ | 123,633 |  |   | $ | 123,833 |  |   | $ | 134,958 |  |   | $ | 124,299 |  |   | $ | 135,819 |  |
| Amortization of debt premium, discount and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 1,821 |  |   |   | 4,627 |  |   | 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                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 3,482 |  |   |   | 6,888 |  |   | 7,034 |  |   | 7,894 |  |   | 8,804 |  |   | 7,124 |  |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 371 |  |   |   | 1,075 |  |   | 759 |  |   | 689 |  |   | 556 |  |   | 798 |  |
|      Total Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 65,939 |  |   |   | $ | 136,223 |  |   | $ | 138,083 |  |   | $ | 163,685 |  |   | $ | 152,771 |  |   | $ | 160,260 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings, as defined by the Securities and Exchange Commission:                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations before income taxes and non-controlling interest                                                                                                                                                                                                                                                                                                                                                                                                |   | $ | 38,861 |  |   |   | $ | (63,379 | ) |   | $ | 94,751 |  |   | $ | (388,381 | ) |   | $ | 63,112 |  |   | $ | 164,018 |  |
| (Earnings) loss of equity investee                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | — |  |   |   | 15,223 |  |   | 30,145 |  |   | 29,687 |  |   | (7,581 | ) |   | — |  |
| Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings                                                                                                                                                                                                                                                                                                                                                                            |   | 38,861 |  |   |   | (48,156 | ) |   | 124,896 |  |   | (358,694 | ) |   | 55,531 |  |   | 164,018 |  |
| Fixed charges as above                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 65,939 |  |   |   | 136,223 |  |   | 138,083 |  |   | 163,685 |  |   | 152,771 |  |   | 160,260 |  |
| Interest capitalized                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (1,244 | ) |   |   | (3,401 | ) |   | (7,743 | ) |   | (8,849 | ) |   | (10,740 | ) |   | (6,503 | ) |
| Non-controlling interest in earnings of Valencia                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (6,652 | ) |   |   | (13,563 | ) |   | (11,890 | ) |   | (7,179 | ) |   | — |  |   | — |  |
| Preferred dividend requirements of subsidiary                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (371 | ) |   |   | (1,075 | ) |   | (759 | ) |   | (689 | ) |   | (556 | ) |   | (798 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $ | 96,533 |  |   |   | $ | 70,028 |  |   | $ | 242,587 |  |   | $ | (211,726 | ) |   | $ | 197,006 |  |   | $ | 316,977 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 1.46 |  | 1  |   | 0.51 |  | 2  | 1.76 |  |   |  N/M |  | 3  |  | 1.29 |  |   | 1.98 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 1.79.                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010.  Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR's investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 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 to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008.                                                                                                                                                             |

----