Filed by: Public Service Company of New Mexico
                                   pursuant to Rule 425 under the Securities Act
                                of 1933 and deemed filed pursuant to Rule 14a-12
                                ------------------------------------------------
                                          of the Securities Exchange Act of 1934
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                Public Service Company of New Mexico Commission File No.: 1-6986
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                             Western Resources, Inc. Commission File No.: 1-3523
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                                        Subject Company: Western Resources, Inc.






Dear Fellow Shareholder,

I am very pleased to announce  that PNM has entered into an agreement to acquire
the electric utility operations of Western Resources,  serving more than 600,000
retail  customers  in Topeka,  Wichita,  the  suburbs of Kansas City and much of
eastern Kansas.

This  combination will create a single,  multi-regional  energy company with the
scale and scope needed to compete successfully in today's  marketplace.  Our new
company will have:

o more than 1 million retail electric customers and 400,000 retail gas customers
  in two states,
o generating capacity of more than 7,000 megawatts, strategically
  located in Arizona,  New Mexico and Kansas, and
o a combined work force of over
  5,000 employees.

This combination is about growth and opportunity,  particularly in the wholesale
power business,  where we see the potential for significant revenue and earnings
growth by giving us access to key Midwestern markets.

I strongly  believe that,  together,  PNM and Western  Resources will be able to
deliver  tangible  benefits to our employees,  our customers and especially you,
our shareholders, beyond what either company could provide by itself.

Although  this proposal has been approved by both the PNM Board of Directors and
the Western  Resources  Board of  Directors,  before it can be finalized it must
also be approved by  shareholders in both companies and by a number of state and
federal regulatory agencies.



Before we ask you to vote to approve this combination,  we will provide you with
more detailed  information on the transaction and its impact on your investment.
In the meantime, to learn more about our plans for PNM's future, please call our
shareholder information line at 800-840-0766 or visit the PNM website at pnm.com

Thank you for your continued confidence in PNM.

Sincerely,


Jeff Sterba
Chairman, President
And Chief Executive Officer

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

This update contains forward-looking  statements within the meaning of the "safe
harbor" provisions of the United States Private Securities Litigation Reform Act
of 1995.  Investors  are cautioned  that such  forward-looking  statements  with
respect to revenues,  earnings,  performance,  strategies,  prospects  and other
aspects of the  businesses of PNM and Western  Resources and with respect to the
benefits of the transaction are based on current  expectations  that are subject
to risk and  uncertainties.  Such  statements are based upon the current beliefs
and  expectations  of the management of PNM and Western  Resources.  A number of
factors could cause actual results or outcomes to differ  materially  from those
indicated by such forward-looking statements. These factors include, but are not
limited  to,  risks  and   uncertainties   relating  to:  the  possibility  that
shareholders of PNM and/or Western  Resources will not approve the  transaction,
the risks that the businesses will not be integrated successfully, the risk that
the benefits of the  transaction may not be fully realized or may take longer to
realize than expected,  disruption from the transaction making it more difficult
to maintain  relationships  with  clients,  employees,  suppliers or other third
parties,   conditions  in  the  financial   markets  relevant  to  the  proposed
transaction,  the receipt of regulatory and other approvals of the  transaction,
that future circumstances could cause business decisions or accounting treatment
to be decided  differently  than now intended,  changes in laws or  regulations,
changing  governmental  policies and regulatory  actions with respect to allowed
rates of return on equity and equity ratio limits,  industry and rate structure,
stranded  cost  recovery,  operation of nuclear power  facilities,  acquisition,
disposal, depreciation and amortization of assets and facilities,  operation and
construction  of plant  facilities,  recovery of fuel and purchased power costs,
decommissioning  costs, present or prospective  wholesale and retail competition
(including  retail  wheeling and  transmission  costs),  political  and economic
risks,  changes  in and  compliance  with  environmental  and  safety  laws  and
policies,  weather  conditions  (including natural disasters such as tornadoes),
population  growth rates and  demographic  patterns,  competition for retail and
wholesale customers,  availability, pricing and transportation of fuel and other

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energy commodities,  market demand for energy from plants or facilities, changes
in tax rates or policies or in rates of  inflation or in  accounting  standards,
unanticipated  delays or changes in costs for  capital  projects,  unanticipated
changes  in  operating  expenses  and  capital   expenditures,   capital  market
conditions,  competition for new energy development  opportunities and legal and
administrative  proceedings (whether civil, such as environmental,  or criminal)
and settlements, the outcome of Protection One accounting issues reviewed by the
SEC staff as disclosed in previous Western Resources SEC filings,  the impact of
Protection One's financial condition on Western Resources' consolidated results,
and other factors.  PNM and Western Resources  disclaim any obligation to update
any forward-looking  statements as a result of developments  occurring after the
date of this update.  Readers are referred to PNM's and Western  Resources' most
recent reports filed with the Securities and Exchange Commission.

Additional Information

In connection with the proposed transaction, PNM and Western Resources will file
a  joint  proxy   statement  /  prospectus  with  the  Securities  and  Exchange
Commission.  INVESTORS AND SECURITY  HOLDERS ARE ADVISED TO READ THE JOINT PROXY
STATEMENT  /  PROSPECTUS  WHEN IT BECOMES  AVAILABLE,  BECAUSE  IT WILL  CONTAIN
IMPORTANT INFORMATION.  Investors and security holders may obtain a free copy of
the joint proxy  statement / prospectus  (when  available)  and other  documents
filed  by PNM and  Western  Resources  with  the SEC at the  SEC's  web  site at
http://www.sec.gov.  Free copies of the joint proxy statement / prospectus, when
available,  and each  company's  other filings with the SEC may also be obtained
from the respective  companies.  Free copies of PNM's filings may be obtained by
directing a request to PNM,  Alvarado  Square,  Albuquerque,  New Mexico  87158.
Phone: (800) 545-4425. Free copies of Western Resources' filings may be obtained
by  directing  a request to Western  Resources,  P.O.  Box 889,  Topeka,  Kansas
66601-0889. Phone: (800) 527-2495.

Participants in Solicitation

PNM,  Western  Resources and certain of their  respective  directors,  executive
officers and other members of their  management and employees,  each of whom may
be considered participants in this transaction under applicable securities laws,
may be soliciting  proxies from their  respective  stockholders  in favor of the
transaction.  Information  concerning  PNM's  directors and  executive  officers
participating  in the  solicitation  is set forth in PNM's Annual Report on Form
10-K  filed  with the  Commission  on March 9, 2000 and  information  concerning
Western  Resources'  directors  and  executive  officers  participating  in  the
solicitation is set forth in Western Resources' Annual Report on Form 10-K filed
with the  Commission  on March 29,  2000 and  amended on April 3, 2000.  Certain
directors and executive officers of PNM and Western Resources may have direct or
indirect  interests in the  transaction due to securities  holdings,  vesting of

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options,  and rights to severance  payments if their  employment  is  terminated
following  the  transaction.  In addition,  directors  and  officers,  after the
transaction,  will be indemnified by PNM and Western Resources, and benefit from
insurance  coverage  for  liabilities  that may  arise  from  their  service  as
directors  and officers of PNM or Western  Resources  prior to the  transaction.
Additional   information  regarding  PNM's  and  Western  Resources'  respective
participants  in  the  solicitation   will  be  contained  in  the  joint  proxy
statement/prospectus.

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