SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 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)      December 21, 1995
                                                      (November 20, 1995)


                      PUBLIC SERVICE COMPANY OF NEW MEXICO
             (Exact Name of Registrant as Specified in its Charter)


                                   Commission
          New Mexico               File Number 1-6986       85-0019030
 (State or Other Jurisdiction                            (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 or Former Address if Changed, Since Last Report)









ITEM 5. Other Event

Ojo Line Extension ("OLE") Transmission Project

As previously reported, plans to construct the OLE transmission line, a proposed
345 Kv line  connecting  the existing  Ojo 345 Kv line to the Norton  station in
northern New Mexico,  had faced  considerable  opposition  by persons  concerned
primarily about the  environmental  impacts of the project.  OLE was designed to
provide a needed improvement to the northern  transmission  system in New Mexico
and to allow greater  delivery of power into the  Company's two largest  service
territories,  the greater  Albuquerque  area and the Santa Fe/Las Vegas area. In
July 1995, a New Mexico Public Utility  Commission  ("NMPUC")  hearing  examiner
issued a recommended  decision,  recommending  disapproval  of the project.  The
Company filed  exceptions to the recommended  decision in August 1995. (See PART
I, ITEM  2.--"MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF FINANCIAL  CONDITION AND
RESULTS OF OPERATIONS--OTHER ISSUES FACING THE COMPANY--Transmission Issues--Ojo
Line Extension ("OLE")  Transmission  Project" in the Company's Quarterly Report
on Form 10-Q for the quarter ended June 30, 1995.)

On November 20, 1995, the NMPUC issued a final order,  accepting in its entirety
the hearing examiner's  recommendation.  The Company has incurred  approximately
$17  million  for the OLE  project  and has  previously  established  accounting
reserves as deemed  appropriate.  The Company  intends to seek recovery of these
costs in future appropriate proceedings;  however, an additional reserve will be
recorded in the fourth quarter.

On  December  20,  1995,  the  Company  filed a limited  Motion  for  Rehearing,
accepting the NMPUC's  determination  that the OLE routing should not be pursued
but seeking  reconsideration  of various  parts of the final order which discuss
system planning and reliability matters.




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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 hereunto duly authorized.

                                    Public Service Company of New Mexico
                                               (Registrant)



Date:  December 21, 1995                   /s/ Donna M. Burnett
                                    -------------------------------
                                          Donna M. Burnett
                                          Corporate Controller and
                                          Chief Accounting Officer