8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)	May 7, 2007
	(May 7, 2007)

Commission	Name of Registrants, State of Incorporation,	I.R.S. Employer
File Number	Address and Telephone Number	Identification No.
001-32462	PNM Resources, Inc.	85-0468296
	(A New Mexico Corporation)
	Alvarado Square
	Albuquerque, New Mexico 87158
	(505) 241-2700
001-06986	Public Service Company of New Mexico	85-0019030
	(A New Mexico Corporation)
	Alvarado Square
	Albuquerque, New Mexico 87158
	(505) 241-2700
002-97230	Texas-New Mexico Power Company	75-0204070
	(A Texas Corporation)
	4100 International Plaza,
	P.O. Box 2943
	Fort Worth, Texas 76113
	(817) 731-0099
______________________________
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

[] Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c)

Item 2.02Results of Operations and Financial Condition.

On May 7, 2007, PNM Resources, Inc. (the “Company”) issued a press release announcing its preliminary unaudited results of operations for the three months ended March 31, 2007. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

The Company’s press release and other communications from time to time may include certain non-Generally Accepted Accounting Principles ("GAAP") financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income, other income and deductions, net income, earnings per share and other GAAP measures of operating performance that exclude or include the effect of litigation settlements, accounting or regulatory changes, the restructuring of selected operations, certain merger activities and other similar events. The Company’s management believes these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measures is consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures presented in prior periods. The non-GAAP financial measures used by the Company should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

The Company uses ongoing earnings guidance to provide investors with management’s expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Management is generally not able to estimate the impact of the reconciling items between ongoing earnings guidance and forecasted GAAP earnings, nor their probable impact on GAAP earnings; therefore, management is generally not able to provide a corresponding GAAP equivalent for earnings guidance. Reconciling items may include the cumulative effect of changes in accounting principles or estimates, and/or revenues and expenses resulting from transactions that do not occur in the normal course of the Company’s business operations.

Limitation on Incorporation by Reference

In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.

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Item 9.01Financial Statements and Exhibits.

(d) Exhibits:

Exhibit NumberDescription

99.1 Press Release dated March 7, 2007, and PNM Resources, Inc. and Subsidiaries Preliminary Unaudited Condensed Consolidated Statements of Earnings for the three months ended March 31, 2007 and 2006, and other preliminary financial information.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

	PNM RESOURCES, INC.
	PUBLIC SERVICE COMPANY OF NEW MEXICO
	TEXAS-NEW MEXICO POWER COMPANY
	(Registrants)
Date: May 7, 2007	/s/ Thomas G. Sategna
	Thomas G. Sategna
	Vice President and Corporate Controller
	(Officer duly authorized to sign this report)

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EX-99.1

EXHIBIT 99.1

PNM Resources Reports 2007 First Quarter Earnings

Contribution of Twin Oaks Power plant to EnergyCo joint venture expected in June

Proceeds to reduce debt

1^st QUARTER HIGHLIGHTS

·   GAAP earnings of $0.38 per diluted share

·   Ongoing earnings of $0.39 per diluted share

·   First Choice Power customer growth and sales volumes improve earnings

·   2007 earnings guidance range affirmed

(ALBUQUERQUE, N.M.) - PNM Resources (NYSE: PNM) today reported unaudited first quarter 2007 consolidated ongoing earnings per diluted share of $0.39. The company also reported quarterly GAAP (generally accepted accounting principles) earnings of $0.38 per diluted share. Both ongoing and GAAP earnings per diluted share equaled 2006 quarterly results of $0.39 and $0.38, respectively.

Ongoing earnings exclude acquisition-related costs and other non-recurring charges and revenue. A reconciliation of GAAP to ongoing earnings is provided on Schedule 1.

Quarterly ongoing earnings available for common stock increased 14.2 percent to $30.7 million. However, a 12.6 percent increase in the average number of common shares outstanding resulted in overall ongoing earnings per diluted share to remain the same as the first quarter of 2006.

“We continued to demonstrate strong growth in net earnings, although this performance was not reflected in earnings per share results. We saw significant improvement at the Palo Verde Nuclear Generating Station this quarter,” said Jeff Sterba, PNM Resources chairman, president and CEO. “In addition, we had continued good performance from First Choice Power - the result of its growth strategy in action. Negatively impacting our earnings were increased coal costs and reduced availability at our base load coal plants.

“Our energy joint venture is progressing and a strong, core management team is being established. The building blocks soon will be in place for additional growth with the planned contribution of Twin Oaks Power during the second quarter.”

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Palo Verde had strong performance during the quarter with an equivalent availability factor of 92.5 percent, compared with 70.5 percent during the same period in 2006. However, an extended maintenance outage for Unit 2 at the San Juan Generating Station and forced outages at the Four Corners Plant partially offset Palo Verde’s contribution.

FIRST QUARTER 2007 SEGMENT REPORTING

Regulated Operations

PNM - a natural gas and vertically integrated electric and gas utility in New Mexico with distribution, transmission and generation assets.

Electric:

Beginning in 2007, the PNM Electric segment includes the territory in southern New Mexico formerly served by Texas-New Mexico Power Co.

·   PNM Electric reported earnings per diluted share of $0.13, unchanged from the first quarter of 2006. Earnings increased $1.5 million, or 17.6 percent, to $10.3 million and gross margin increased $10.8 million, or 11.0 percent, to $109.3 million.

·   Increases in earnings and margin were driven primarily by improved Palo Verde performance and a 3.2 percent increase in load growth, which was partially offset by the rising costs to serve increased demand. The addition of TNMP-New Mexico operations also improved earnings. Earnings were reduced by an increase in coal costs, and planned and forced outages at San Juan and Four Corners, respectively.

Gas:

·   PNM Gas reported earnings per diluted share of $0.16, compared with $0.15 during the quarter in 2006. Earnings increased $2.4 million to $12.8 million and gross margin increased $5.0 million to $54.8 million.

·   Colder weather and customer growth of 2.4 percent were partially offset by continued customer conservation and increased maintenance and repair costs.

TNMP - a transmission and distribution company in Texas.

Beginning in 2007, the TNMP Electric segment consists only of Texas transmission and distribution operations.

·   TNMP reported earnings per diluted share of $0.01, compared with $0.02 in 2006. Earnings decreased 19.7 percent to $0.9 million and gross margin decreased slightly to $33.8 million.

·   The collection of the competitive transition charge, which began in December 2006, increased earnings but was more than offset by the transfer of the southern New Mexico operations, and higher transmission and distribution operating costs.

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Unregulated Operations

Wholesale - a business segment consisting of the generation and sale of electricity into wholesale markets.

·   Wholesale reported quarterly earnings per diluted share of $0.09, compared with $0.13 in 2006. Gross margin increased $21.1 million to $52.5 million. Increased operating and maintenance expenses related to plant outages and the additions of Twin Oaks and the Luna Energy Facility reduced earnings. In addition, during the first quarter of 2006 Wholesale significantly benefited from robust forward sales related to hurricane-driven prices that were not replicated in 2007.

·   Improved performance at Palo Verde added $0.04 to earnings per diluted share while the addition of Twin Oaks added $0.02 to earnings per diluted share.

First Choice Power - a competitive retail electric provider in Texas.

·   First Choice Power reported quarterly earnings per diluted share of $0.08, compared with $0.01 for 2006. Earnings increased substantially to $5.9 million from $0.8 million and gross margin increased $10.0 million to $24.8 million.

·   Performance largely was driven by strong business and residential customer growth and a 33.1 percent increase in sales volumes.

Corporate/Other - a business segment that reflects costs at the holding company, PNM Resources. The segment includes Avistar and PNMR Services Company, which provides corporate services to PNM Resources and all of its subsidiaries.

·   Ongoing earnings per diluted share decreased to $(0.08) in 2007 from $(0.05) in 2006, mainly driven by increased financing charges related to short-term borrowings. GAAP earnings per diluted share also decreased $0.03, from $(0.06) in 2006 to $(0.09) in 2007.

TWIN OAKS CONTRIBUTION TO ENERGYCO and EARNINGS GUIDANCE

PNM Resources today also provided updates regarding EnergyCo, its joint venture with a wholly owned subsidiary of Cascade Investment, L.L.C.

Chuck Eldred, PNM Resources senior vice president and CFO, said the company expects to contribute the Twin Oaks Power plant to the joint venture on or about June 1, 2007. He said PNM Resources and the Cascade subsidiary have agreed on a fair market value for Twin Oaks of approximately $554 million, which includes two existing power sales agreements and the development rights for a possible 600-megawatt expansion.

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Under the terms of a non-binding letter of intent, the Cascade subsidiary would make a cash contribution to EnergyCo that is equal to 50 percent of Twin Oaks’ fair market value, or approximately $277 million. EnergyCo then would distribute the cash to PNM Resources. Eldred said PNM Resources plans to use the approximate $277 million distribution from EnergyCo to reduce its corporate debt.

“Contributing Twin Oaks to EnergyCo will improve PNM Resources’ financial position,” Eldred said. “It also provides a solid foundation for the future growth of EnergyCo. Twin Oaks brings a stable, dependable revenue source with the potential of additional earnings when the current under-market contract expires Sept. 30.”

When PNM Resources acquired Twin Oaks in April 2006, it assumed two power sales contracts. The first contract called for the delivery of 100 percent of the plant’s 305-megawatt capacity through September 2007. The second contract is for 75 percent of Twin Oaks’ output from October 2007 through December 2010.

Eldred said the June contribution of Twin Oaks is expected to reduce 2007 earnings per diluted share by approximately $0.05. The stated 2007 ongoing earnings guidance range remains unchanged at $1.80 to $2.00 per diluted share.

ENERGYCO MANAGEMENT ADDITION

Sterba, who also serves as an EnergyCo board member, said EnergyCo has named its second management team member. Charles Kitowski, who joined First Choice Power in June 2005 as vice president of Portfolio Trading and Energy Supply and for the last year has been co-president of First Choice Power, will serve as EnergyCo’s president of Marketing and Trading.

Kitowski has more than 15 years of experience in general management, operations and finance in the energy and manufacturing sectors. Prior to joining First Choice Power, he spent more than six years with TXU Corporation in various finance and risk management positions, including vice president of Risk Management. He holds a bachelor’s degree in mechanical engineering from Texas A&M University, a master’s degree in material science and engineering from the University of Texas, and a master’s degree in business administration from Harvard University.

Kitowski joins Mark Kubow at EnergyCo. Kubow, who most recently served as a vice president at BG Group and launched that company’s power business in North America, was named EnergyCo president of Generation and Development on April 2.

OTHER COMPANY UPDATES

·   First Choice Power President: Jeff Weiser, who with Kitowski served as co-president of First Choice Power, will now be president of the retail energy provider. Weiser has more than 20 years of experience in general management, sales and marketing, and corporate development, including 11 years in senior management at TXU.  Weiser holds a bachelor's degree in economics and Spanish from Northwestern University, as well as a master's degree in finance and marketing from Northwestern's J.L. Kellogg Graduate School of Management.

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·   Investor Relations Director: The company has named Gina Jacobi director of Investor Relations and Shareholder Services. Jacobi has served as director of Modeling and Forecasting for PNM Resources since 2005. She has more than 20 years of experience in financial planning and analysis, including serving as director of Finance and Forecasting for TNMP. Jacobi holds a bachelor's degree in management and Spanish from Rice University, and a master’s degree in management from Northwestern's J.L. Kellogg Graduate School of Management.

·   Power Purchase Agreement: PNM has signed a 20-year agreement with Black Hills Corporation to purchase the output of a natural gas-fired power plant to be built in central New Mexico. Black Hills will develop and operate the 149-megawatt, simple-cycle facility, which is expected to be online in June 2008. PNM will purchase the fuel for the plant when it is operational and has the option to acquire up to 50 percent ownership.

·   PNM Gas Rate Case: The company continues to await the recommended decision by a New Mexico Public Regulation Commission hearing examiner regarding PNM’s proposed $20.5 million increase to natural gas rates and services. Once the recommended decision is made, the commissioners must review it with a final decision due no later than June 29.

·   PNM Electric Rate Case: The procedural schedule regarding PNM’s request to increase general electric rates by $68.9 million has been established. Regulatory staff and intervener testimony is due by Aug. 6. A hearing is scheduled for Sept. 5-14 and a final order is due Dec. 23.

FIRST QUARTER EARNINGS CALL

PNM Resources will conduct its first quarter 2007 earnings conference call on Tuesday, May 8, at 9 a.m. Eastern.

Participants within the United States call:	(866) 831-6267
Participants outside the United States call:	(617) 213-8857
Pass code:	53333893

The call will be broadcast live and the presentation available at www.PNMResources.com.

A transcript of the call also will be on PNM Resources’ Web site as soon as possible. A replay of the conference call will be available through May 15, 2007:

Participants within the United States call:	(888) 286-8010
Participants outside the United States call:	(617) 801-6888
Pass code:	71764615

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About PNM Resources

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2006 consolidated operating revenues of $2.5 billion. Through its utility and energy subsidiaries, PNM Resources serves electricity to more than 835,000 homes and businesses in New Mexico and Texas and natural gas to more than 492,000 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Other subsidiaries include First Choice Power, a deregulated competitive retail electric provider in Texas, and Avistar, an unregulated energy technology company. With generation resources of more than 2,770 megawatts, PNM Resources and its subsidiaries sell power on the wholesale market throughout the Southwest, Texas and the West. The company also owns a 50-percent share of an energy joint venture with Cascade Investment, L.L.C. For more information, visit www.PNMResources.com.

About Cascade Investment

Based in Kirkland, Wash., Cascade Investment, L.L.C., oversees the personal investments of William H. Gates III and the investment assets of the Bill & Melinda Gates Foundation.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements made in this earnings release that relate to future events or the Company’s expectations, projections, estimates, intentions, goals, targets and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. You are cautioned that all forward-looking statements are based upon current expectations and estimates and the Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions you not to place undue reliance on these statements. The Company’s business, financial condition, cash flow and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward looking statements. These factors include the risk that the new limited liability company in which the Company has a 50% interest, and which temporarily is named “EnergyCo”, is unable to identify and implement profitable acquisitions or that the contribution of assets to EnergyCo by PNMR may not be implemented as expected, the potential unavailability of cash from the Company’s subsidiaries due to regulatory, statutory and contractual restrictions, the outcome of any appeals of the Public Utility Commission of Texas order in the stranded cost true-up proceeding, the ability of First Choice Power to attract and retain customers, changes in Electric Reliability Council of Texas protocols, changes in the cost of power acquired by First Choice Power, collections experience, insurance coverage available for claims made in litigation, fluctuations in interest rates, conditions affecting the Company’s ability to access the financial markets, weather, water supply, changes in fuel costs, availability of fuel supplies, the effectiveness of risk management and commodity risk transactions, seasonality and other changes in supply and demand in the market for electric power, variability of wholesale power prices and natural gas prices, volatility and liquidity in the wholesale power markets and the natural gas markets, changes in the competitive environment in the electric and natural gas industries, the performance of generating units, including PVNGS, SJGS and Four Corners, and transmission systems, , the ability to secure long-term power sales, the risks associated with completion of the construction of generation, including pollution control equipment at the San Juan Generating Station and the expansion of the Afton Generating Station, transmission, distribution and other projects, including construction delays and unanticipated cost overruns, state and federal regulatory and legislative decisions and actions, the risk that the Company and its subsidiaries may have to commit to substantial capital investments and additional operating costs to comply with new environmental control requirements including possible future requirements to address concerns about global climate change, the outcome of legal proceedings, changes in applicable accounting principles and the performance of state, regional and national economies. For a detailed discussion of the important factors that affect the Company and that could cause actual results to differ from those expressed or implied by the Company’s forward-looking statements, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s current and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and the Company’s current and future Current Reports on Form 8-K, filed with the SEC.

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PNM Resources, Inc.

Schedule 1: 1^st Quarter 2007 Reconciliation of Ongoing Earnings to GAAP Earnings

(Preliminary and Unaudited)

	Quarter Ended March 31,
	2007				2006
	Earnings		Diluted		Earnings		Diluted
	(in 000s)		EPS		(in 000s)		EPS
Net Earnings Available to Common Shareholders	$	29,969	$	0.38	$	26,325	$	0.38
Adjustments for Acquisition-Related
Charges (net of income tax effects):
Acquisition Integration Costs		--		--		569		0.01
JV Formation Costs		742		0.01		--		--
Total Adjustments		742		0.01		569		0.01
Net Ongoing Earnings Available to Common Shareholders	$	30,711	$	0.39	$	26,894	$	0.39
Average Diluted Shares		78,099				69,375

All adjustments are included in the Corporate/Other segment

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PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
	Three Months Ended March 31,
	2007			2006
	(In thousands, except share information)
Operating Revenues:
Electric	$	436,807		$	448,216
Gas		216,484			207,476
Other		210			109
Total operating revenues		653,501			655,801
Operating Expenses:
Cost of energy sold		378,521			425,972
Administrative and general		71,205			65,305
Energy production costs		47,500			37,587
Depreciation and amortization		40,442			34,330
Transmission and distribution costs		22,567			19,050
Taxes, other than income taxes		18,620			16,964
Income taxes		13,969			10,247
Total operating expenses		592,824			609,455
Operating income		60,677			46,346
Other Income and Deductions:
Interest income		10,788			10,151
Gains on investment securities		70			966
Other income		2,012			2,201
Equity in net loss of EnergyCo		(662	)		-
Carrying charges on regulatory assets		-			1,973
Other deductions		(987	)		(1,516	)
Other income taxes		(3,950	)		(5,101	)
Net other income and deductions		7,271			8,674
Earnings before interest charges		67,948			55,020
Interest Charges:
Interest on long-term debt		24,009			22,531
Other interest charges		13,838			6,032
Total interest charges		37,847			28,563
Preferred Stock Dividend Requirements of Subsidiary		132			132
Net Earnings	$	29,969		$	26,325
Net Earnings per Common Share
Basic	$	0.39		$	0.38
Diluted	$	0.38		$	0.38
Dividends Declared per Common Share	$	0.23		$	0.22

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PNM RESOURCES, INC. AND SUBSIDIARIES

PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows PNM Electric revenues by customer class, including intersegment revenues that are eliminated within the presentation of the preliminary condensed consolidated statements of earnings, and average number of customers:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(In thousands, except customers)
Residential	$	67,797	$	55,328	$	12,469
Commercial		64,707		57,079		7,628
Industrial		23,450		14,741		8,709
Transmission		8,866		7,045		1,821
Other		5,293		4,585		708
	$	170,113	$	138,778	$	31,335
Average customers		487,001		425,919		61,082

The following table shows PNM Electric MWh sales by customer class:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(Megawatt hours)
Residential		820,630		688,472		132,158
Commercial		876,954		803,700		73,254
Industrial		470,277		314,008		156,269
Other		56,367		54,863		1,504
		2,224,228		1,861,043		363,185

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PNM RESOURCES, INC. AND SUBSIDIARIES

PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows TNMP Electric revenues by customer class, including intersegment revenues that are eliminated within the presentation of the preliminary condensed consolidated statements of earnings, and average number of customers:

	Three Months Ended
	March 31,
	2007		2006(1)		Variance
	(In thousands, except customers)
Residential	$	14,760	$	19,271	$	(4,511	)
Commercial		15,969		20,599		(4,630	)
Industrial		1,744		13,319		(11,575	)
Other		8,455		9,496		(1,041	)
	$	40,928	$	62,685	$	(21,757	)
Average customers(2)		225,380		271,103		(45,723	)

(1) The customer class revenues presented above for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with current year presentation, as a result of changes in customer classifications. Additionally, the average customer count presented above for the three months ended March 31, 2006 has been reclassified from prior year presentation in order to be consistent with the current year presentation for the Electric Service Identifier (ESI ID) customer count methodology used by the Electric Reliability Council of Texas (ERCOT).

(2) Under the Texas Electric Choice Act (TECA), customers of TNMP Electric in Texas have the ability to choose First Choice or any other Retail Electric Provider (REP) to provide energy. The average customers reported above include 135,707 and 149,014 customers of TNMP Electric at March 31, 2007 and 2006, respectively, who have chosen First Choice as their REP. These TNMP Electric customers are also included below in the First Choice segment. For PNMR consolidated reporting purposes, these customers are included only once in the consolidated customer count.

The following table shows TNMP Electric MWh sales by customer class:

	Three Months Ended
	March 31,
	2007		2006 (2)		Variance
	(Megawatt hours(1))
Residential		538,462		527,880		10,582
Commercial		459,149		480,586		(21,437	)
Industrial		407,345		556,056		(148,711	)
Other		24,122		28,959		(4,837	)
		1,429,078		1,593,481		(164,403	)

(1) The MWh sales reported above include 473,014 and 474,841 MWh used by customers of TNMP Electric at March 31, 2007 and 2006, respectively, who have chosen First Choice as their REP. These MWh are also included below in the First Choice segment.

(2) The customer class sales presented above for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with current year presentation, as a result of changes in customer classifications.

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PNM RESOURCES, INC. AND SUBSIDIARIES

PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows PNM Gas revenues by customer class, including intersegment revenues that are eliminated within the presentation of the preliminary condensed consolidated statements of earnings, and average number of customers:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(In thousands, except customers)
Residential	$	152,331	$	141,637	$	10,694
Commercial		45,186		44,021		1,165
Industrial		583		737		(154	)
Transportation(1)		5,014		4,659		355
Other		13,418		16,471		(3,053	)
	$	216,532	$	207,525	$	9,007
Average customers		491,995		480,655		11,340

(1) Customer-owned gas.

The following table shows PNM Gas throughput by customer class:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(Thousands of Decatherms)
Residential		13,944		11,962		1,982
Commercial		4,634		4,166		468
Industrial		63		72		(9	)
Transportation(1)		10,800		11,031		(231	)
Other		1,326		1,566		(240	)
		30,767		28,797		1,970

(1) Customer-owned gas.

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PNM RESOURCES, INC. AND SUBSIDIARIES

PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows Wholesale revenues by class of sales transactions, including intersegment revenues that are eliminated within the presentation of the preliminary condensed consolidated statements of earnings:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(In thousands)
Long-term contracts	$	75,494	$	31,234	$	44,260
Short-term sales		59,057		148,254		(89,197	)
	$	134,551	$	179,488	$	(44,937	)

The following table shows Wholesale MWh sales by customer class:

	Three Months Ended
	March 31,
	2007		2006		Variance
	(Megawatt hours)
Long-term contracts		1,162,214		578,544		583,670
Short-term sales		1,440,366		2,220,752		(780,386	)
		2,602,580		2,799,296		(196,716	)

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PNM RESOURCES, INC. AND SUBSIDIARIES

PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows First Choice electric operating revenues by customer class, including intersegment revenues that are eliminated within the presentation of the preliminary condensed consolidated statements of earnings, and number of customers:

	Three Months Ended
	March 31,
	2007		2006(1)		Variance
	(In thousands, except customers)
Residential	$	85,552	$	59,601	$	25,951
Mass-market		16,169		18,821		(2,652	)
Mid-market		30,557		19,447		11,110
Trading(4)		1,134		1,836		(702	)
Other		2,153		5,377		(3,224	)
	$	135,565	$	105,082	$	30,483
Actual customers (2,3)		256,931		219,071		37,860

 (1) The customer class revenues presented above for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with current year presentation, as a result of changes in customer classifications. Additionally, the average customer count presented above for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with the current year presentation for the ESI ID customer count methodology used by the ERCOT.

 (2) See note above in the TNMP Electric segment discussion about the impact of TECA.

(3)   Due to the competitive nature of First Choice’s business, actual customer count at March 31 is presented in the table above as a more representative business indicator than the average customers that are shown in the table for TNMP customers. First Choice had 256,465 average customers and 220,525 average customers for the three months ended March 31, 2007 and 2006, respectively. The 220,525 average customers for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with the current year presentation for the ESI ID customer count methodology used by the ERCOT.

(4)   Includes gas trading

The following table shows First Choice MWh electric sales by customer class:

	Three Months Ended
	March 31,
	2007		2006(2)		Variance
	(Megawatt hours(1))
Residential		614,908		427,544		187,364
Mass-market		99,866		121,027		(21,161	)
Mid-market		259,876		177,643		82,233
Other		9,279		13,005		(3,726	)
		983,929		739,219		244,710

(1) See note above in the TNMP Electric segment discussion about the impact of TECA.

(2) The customer class sales presented above for the three months ended March 31, 2006 have been reclassified from prior year presentation in order to be consistent with current year presentation, as a result of changes in customer classifications.

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