----

```
PNM RESOURCES, INC. AND SUBSIDIARIESRatio of Earnings to Fixed Charges(In thousands, except ratio) 
```

|                                                                                                                   |   | Nine                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|----------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                                                                                   |   | Months                Ended       |    |   | Year                Ended December 31,          |   |
|                                                                                                                   |   | September                30, 2007 |    |   | 2006                                                                                         |   |    | 2005   |   |   | 2004    |   |   | 2003   |    |   | 2002   |   |
| Fixed                charges, as defined by the Securities and Exchange                                                |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Commission:                                                                                                            |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest                on long-term debt                                                                              |   | $                                 | 67,910  |   |                                                                                         | $      | 95,301  |   |   | $      | 75,736  |   |   | $      | 46,702  |   |   | $      | 59,429 |   |   | $ | 56,409 |   |
| Amortization                of debt premium, discount and expenses                                                     |   |                              | 4,869   |   |                                                                                         |   | 4,417   |   |   |   | 3,642   |   |   |   | 2,697   |   |   |   | 2,838 |   |   |   | 2,302 |   |
| Other                interest                                                                                          |   |                              | 30,437  |   |                                                                                         |   | 45,811  |   |   |   | 14,299  |   |   |   | 2,319   |   |   |   | 5,423 |   |   |   | 2,859 |   |
| Estimated                interest factor of lease rental charges                                                       |   |                              | 16,541  |   |                                                                                         |   | 19,714  |   |   |   | 20,643  |   |   |   | 19,617  |   |   |   | 20,452 |   |   |   | 23,233 |   |
| Interest                capitalized                                                                                    |   |                              | 3,685   |   |                                                                                         |   | 2,982   |   |   |   | 1,421   |   |   |   | 957     |   |   |   | 1,163 |   |   |   | - |   |
| Preferred                dividend requirements of subsidiaries                                                         |   |                              | 430     |   |                                                                                         |   | 806     |   |   |   | 4,220   |   |   |   | 896     |   |   |   | 869 |   |   |   | 893 |   |
|      Total                Fixed Charges                                                       |   | $                                 | 123,872 |   |                                                                                         | $      | 169,031 |   |   | $      | 119,961 |   |   | $      | 73,188  |   |   | $      | 90,174 |   |   | $ | 85,696 |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Earnings,                as defined by the Securities and Exchange                                                     |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                            |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Earnings                from continuing operations before income taxes                                                 |   | $                                 | 63,670  |   |                                                                                         | $      | 185,316 |   |   | $      | 102,586 |   |   | $      | 136,209 |   |   | $      | 85,731 |   |   | $ | 96,007 |   |
| (Earnings)                of equity investee                                                                           |   |                              | (12,166 | )      |                                                                                         |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |   |   | - |   |
| Earnings                from continuing operations before income taxes and  investee                earnings |   |                              | 51,504  |   |                                                                                         |   | 185,316 |   |   |   | 102,586 |   |   |   | 136,209 |   |   |   | 85,731 |   |   |   | 96,007 |   |
| Fixed                charges as above                                                                                  |   |                              | 123,872 |   |                                                                                         |   | 169,031 |   |   |   | 119,961 |   |   |   | 73,188  |   |   |   | 90,174 |   |   |   | 85,696 |   |
| Interest                capitalized                                                                                    |   |                              | (3,685  | )      |                                                                                         |   | (2,982  | )      |   |   | (1,421  | )      |   |   | (957    | )      |   |   | (1,163 | ) |   |   | - |   |
| Preferred                dividend requirements of subsidiaries                                                         |   |                              | (430    | )      |                                                                                         |   | (806    | )      |   |   | (4,220  | )      |   |   | (896    | )      |   |   | (869 | ) |   |   | (893 | ) |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Earnings                Available for Fixed Charges                                                                    |   | $                                 | 171,261 |   |                                                                                         | $      | 350,559 |   |   | $      | 216,906 |   |   | $      | 207,544 |   |   | $      | 173,873 |   |   | $ | 180,810 |   |
|                                                                                                                   |   |                              |    |   |                                                                                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Ratio                for Earnings to Fixed Charges                                                                     |   |                              | 1.38    |   |                                                                                         |   | 2.07    |   |   |   | 1.81    |   |   |   | 2.84    |   |   |   | 1.93 |   |   |   | 2.11 |   |