UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) July 3, 2001
PUBLIC SERVICE COMPANY OF NEW MEXICO
(Exact name of registrant as specified in its charter)
New Mexico Commission 85-0019030
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(State or Other Jurisdiction File Number 1-6986 (I.R.S. Employer
of Incorporation) Identification) Number)
Alvarado Square, Albuquerque, New Mexico 87158
(Address of principal executive offices) (Zip Code)
(505) 241-2700
(Registrant's telephone number, including area code)
______________________________
(Former name, former address and former fiscal year,
if changed since last report)
Item 9. Regulation FD Disclosure
The following is a press release issued by the Company on July 3, 2001 and
is being filed herewith as a Regulation FD Disclosure.
PNM TO SERVE TEXAS-NEW MEXICO POWER
WITH LONG-TERM POWER SALE
-- New PNM Power Plant Planned for Las Cruces Area Will Serve TNMP --
ALBUQUERQUE, New Mexico, July 2, 2001 - Texas-New Mexico Power (TNMP) and
PNM, Public Service Company of New Mexico (NYSE:PNM), have signed a long-term
wholesale power contract to improve price stability and ensure an adequate power
supply for TNMP's firm retail customers.
The contract, which runs from July 1, 2001 until Dec. 31, 2006, will
provide varying amounts of firm power through 2002 to complement existing
contracts TNMP has in place. As those contracts expire, PNM will replace them
and become TNMP's sole supplier beginning Jan.1, 2003. In the last year of the
contract, TNMP will need 114 megawatts of firm power.
"Reliable service at stable prices is important to our customers," said
TNMP President and CEO Jack V. Chambers. "This agreement is an important step in
insulating our customers from the dramatic price fluctuations and reliability
problems that California has experienced."
"We are pleased to have won the bid to supply southern New Mexico with
power," said PNM Chairman, President and CEO Jeff Sterba. "This contract offers
TNMP stable power costs while providing PNM with revenue stability over the
course of the contract."
PNM will supply TNMP's needs from its resource portfolio, including a new
natural gas-fired power plant PNM plans to build in southern New Mexico.
The new plant, located approximately 12 miles west of Las Cruces, is
currently scheduled to begin operations in the fall of 2002 providing 135
megawatts (MW) of electricity. The company plans to expand the plant to 220 MW
in late 2003. It will be PNM's initial investment in new power supply for the
competitive wholesale market.
"We are providing TNMP not only its power supply but also key services,
including scheduling and dispatching of the wholesale power," Sterba added. "PNM
will act as TNMP's agent to procure, schedule and dispatch wholesale power on
TNMP's behalf."
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TNMP, headquartered in Fort Worth, Texas, serves 46,000 residential and
commercial customers in New Mexico. It provides service to residents of Silver
City, Lordsburg, Alamogordo, Ruidoso and surrounding areas in Hidalgo, Luna,
Grant, Lincoln and Otero Counties.
Texas-New Mexico Power Company provides community-based electric service to
85 cities and more than 238,000 customers in Texas and New Mexico. It is a
wholly owned subsidiary of TNP Enterprises, Inc.
PNM is a combined electric and gas utility serving approximately 1.3
million people in New Mexico. The company also sells power on the wholesale
market in the Western U.S. PNM stock is traded primarily on the NYSE under the
symbol PNM.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995.
Statements made in this news release that relate to future events are made
pursuant to the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon current expectations and PNM assumes
no obligation to update this information. Because actual results may differ
materially from expectations, PNM cautions readers not to place undue reliance
on these statements. A number of factors, including weather, fuel costs, changes
in supply and demand in the market for electric power, the performance of
generating units and transmission systems, and state and federal regulatory and
legislative decisions and actions, including the wholesale electric power
pricing mitigation plan ordered by the Federal Energy Regulatory Commission
(FERC) on June 18, 2001, rulings issued by the New Mexico Public Regulation
Commission (NMPRC) pursuant to the Electric Utility Industry Restructuring Act
of 1999 (as amended), and in other cases now pending or which may be brought
before the FERC or the NMPRC, or other actions relating to utility restructuring
or stranded cost recovery, could cause PNM results to differ from results
forecast in this news release. For a detailed discussion of the important
factors affecting PNM, please see ``Management's Discussion and Analysis of
Financial Condition and Results of Operations'' in the company's Form 10-K (as
amended) for the year ended December 31, 2000, Form 10-Q for the quarter ended
March 31, 2001, and Form 8-K filings with the Securities and Exchange
Commission.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW MEXICO
--------------------------------------------
(Registrant)
Date: July 6, 2001 /s/ John R. Loyack
---------------------------------------------
John R. Loyack
Vice President, Corporate Controller
and Chief Accounting Officer
(Officer duly authorized to sign this report)
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