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) January 25, 2001
                                                  ------------------
                                                  January 25, 2001
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                      PUBLIC SERVICE COMPANY OF NEW MEXICO
             (Exact name of registrant as specified in its charter)


         New Mexico                                          85-0019030
 ---------------------------     Commission              ----------------------
(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 the prepared  comments of the Company `s telephone  conference
call to discuss the  Company's  year-end  earnings that was broadcast on January
25, 2001 and is being filed herewith as a Regulation FD disclosure.

Teleconference Outline
January 25, 2001

Fourth Quarter and Year End 2000 Earnings Announcement

Barbara Barsky Opening Remarks

Good Morning. Thank you for participating in this teleconference to review PNM's
year 2000 results.  We'll also update you on our take on California's crisis and
restructuring  in New Mexico.  Today's  conference call can also be heard on the
web by accessing our web site at www.pnm.com.  I am Barbara  Barsky,  IR officer
for PNM. Joining me today are:

o        Jeff Sterba, Chairman, President and CEO
o        Max Maerki, CFO
o        Pat Ortiz, General Counsel
o        Eddie Padilla, Senior VP, Bulk Power
o        John Loyack, Controller

Yesterday,  we reported  record  earnings  for the 4th quarter and the full year
2000. A press release was issued which included  summary  financial  information
for the fourth  quarter and full year of 2000 and  earnings  guidance  for 2001.
(This press release was filed in the Company's Form 8-K dated January 25, 2001).

I need to remind you that some of the information we will provide today relative
to revenues,  earnings,  regulatory issues, merger issues and investments should
be considered forward looking  statements,  within the meaning of Section 21E of
the Securities  and Exchange Act.  Actual results for 2001 will be affected by a
number of factors,  including but not limited to weather, the local and national
economies,   the  competitive  environment  in  the  electric  and  natural  gas
industries,  various  legal and state and  federal  regulatory  and  legislative
outcomes  that  the  company  is  unable  to  predict  at this  time.  For  more
information  about these  uncertainties  and risk factors,  please consult PNM's
10K, 10Q and 8K filings with the Securities and Exchange Commission for 1999 and
2000.

I'd now like to introduce Jeff Sterba, who will take about 15 minutes to discuss
PNM's  financial  results  and other  recent  news.  Immediately  following  his
remarks, we will open the conference to questions.


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Jeff Sterba

Good morning and welcome.
The fourth  quarter of 2000 was  certainly not a dull time for us in the utility
industry, particularly here in the West. At PNM, it marked the climax of a great
year, a year in which our long-term  strategic  plan  continued to produce solid
earnings growth.

We recorded a substantial  increase in our wholesale power  business,  more than
doubling  revenues over the previous  year. Due to that success in the wholesale
market,  continued  retail load growth and effective cost control,  PNM earnings
for the year exceeded our original expectations.

And 2000 was the year in which we accelerated  our planned growth  strategy with
an  acquisition  that we  believe  will  make  PNM a  significant  multiregional
presence in our industry.

2000 was also a year in which we faced the  challenge  of a  volatile  wholesale
market,  driven by events in California -- and  California's  difficulties  have
raised  concerns  here  in New  Mexico  about  our  own  state's  transition  to
competition.

PNM has  responded to those  concerns  with a proposed  solution that we believe
will  provide New Mexico  customers  with a sound  transition  to a  competitive
market, while providing  appropriate  protection from the high prices and supply
shortages that  California has  experienced  due to their own disregard of sound
economic  and market  principles.  At this time,  it is unclear what the outcome
will be in New  Mexico,  but we will work to ensure that an  appropriate  market
structure  is put in place and that we are  provided  the  business  flexibility
necessary to enable us to compete.

1.     Fourth Quarter and 2000 Results:

I'll talk more a little later about industry  restructuring  here in New Mexico,
but first let's focus on earnings.

Yesterday we reported net  earnings of $2.53 per diluted  share,  an increase of
21.3 percent over 1999 net earnings of $2.01 per share.

For the fourth quarter, reported earnings were 35 cents per share compared to 41
cents per share in the fourth quarter in '99.

Excluding  one-time  items and costs related to our proposed  Western  Resources
acquisition,  PNM earned $2.58 per share compared to $1.92 in 1999. For the last
quarter of 2000,  earnings  net of  one-time  items was 58 cents  compared to 43
cents in 1999. I'll come back to those one-time items in a few moments.

The increase in earnings is primarily due to first, the success of our wholesale
power marketing business; second, a warmer summer and colder winter in 2000 than
in the  previous  year;  and third,  continued  cost control in all areas of our
business and lower interest expense.


                                       3


While PNM wholesale  sales for the year were up 11% in terms of  kilowatt-hours,
wholesale  revenues  more  than  doubled,  to $748  million  for the  year.  The
relatively  small growth in sales compared to the big jump in revenues  reflects
the  higher  prices  and  increased  volatility  we saw in the  western  market,
especially during the second half of 2000.

Although PNM electric retail sales increased about 4.2 percent over 1999 levels,
retail  electric  revenues  were down a little less than one percent.  The sales
increase  reflects both continued strong underlying growth in our home territory
and warmer temperatures in New Mexico last summer.  Those factors were offset by
the $37 million rate reduction we implemented for retail  customers in the third
quarter of 1999.

Operations  and  maintenance  expenses  were about flat in 2000  compared to the
previous  year,  and  interest  expense  for the year  declined  by more than $5
million  due to the net  retirement  of $53  million  in debt  over the past two
years.

We were also able to take  advantage of our strong cash position to buy back 1.5
million shares of common stock.

At year end, PNM recorded a one-time  regulatory  reserve of 17 cents per share,
reflecting our view of the probable  treatment of certain  regulatory  assets in
the transition to industry restructuring in New Mexico. The other one-time items
in 2000 were in the third  quarter and  included a gain of 21 cents from a legal
settlement,  a reversal  of gas rate  reserves  of 7 cents,  a charge of 7 cents
related to the acquisition of a new long-term wholesale customer and a charge of
10 cents  related to the  proposed  acquisition  of Western  Resources  electric
utility assets.

2.     California

The big news in our  industry  in  recent  months  has been  the  unraveling  of
industry restructuring in California,  and I want to talk a little bit about how
that  situation  impacted  our  wholesale  business  in  2000  and how we see it
affecting PNM going forward.

PNM is not a major participant in the California  market,  and only a small part
of our sales are directly  into the  California  PX and ISO. We do not track our
wholesale  trading  by  state,  but we  estimate  that  about 7  percent  of our
wholesale power went to the California PX and ISO last year.

But California is the 800-pound gorilla of the Western market,  and what happens
there  affects all of us, in 2000 and as we move  forward in 2001 in the western
marketplace.

First, let me review our exposure to the California and Western market, which we
obviously  monitor quite closely.  We take an active approach to risk management
and have  strong  policies  in  place to help us  understand  and  minimize  our
exposure to risks in a commodity market.


                                       4


We received  payment on January 18 from the  California  Power  Exchange for the
majority  of the bill due,  but the  exchange  is now in  default  on about $1.7
million  that  we  understand  to be the  Southern  California  Edison  portion.
Additionally,  the Power  Exchange  and ISO owe us about  $6.5  million  payable
within the next 90 days.

As of two weeks ago,  we  discontinued  trades with the PX and ISO until we have
some assurance of payment.  We have also transacted business with the California
department of Water  Resources,  but at this time we've also ceased that trading
activity until such time as additional security is provided. Until then, we will
trade with these California  parties only to the extent necessary to comply with
the Department of Energy's directive. Given that the greatest problems appear to
be in northern  California,  where it's difficult for us to transmit  power,  we
have only been called on once in recent weeks under this directive.

In the fourth  quarter,  we also booked an $8.5  million  reserve to reflect our
exposure to the wholesale market.

Going forward,  we expect that the  disruptions  in the  California  market will
continue to have an impact on PNM's wholesale business in 2001.

As you know, the  fundamental  problem in California is a mismatch in supply and
demand,  aggravated by a seriously flawed market structure.  While it's too soon
to say how long it will take to straighten out the market  problems,  it's clear
that it will take at least a year to 18 months before the new  generation now in
planning stages can begin to address the supply shortage,  and I believe it will
be two to three years before power supplies catch up with demand.

So we expect that demand and prices will remain strong,  and risk and volatility
will remain high in the Western market at least through 2001.

3.     Update on Path to Deregulation in New Mexico

California's problems have raised a lot of second thoughts about proceeding with
utility  industry  restructuring  here  in New  Mexico.  A  number  of  parties,
including the  legislator who sponsored New Mexico's  restructuring  legislation
back in 1999, are now calling for delay of implementation or even repeal.

We  understand  the concern and fear that what has  happened in  California  not
happen here in New Mexico.  We believe  that the  combination  of the New Mexico
law, developed after five years of study with a focus on avoiding the California
model,  second,  the  desire  for New  Mexico to be the site of  environmentally
appropriate new power generation, and third, our proposed plan of transition can
assure that the California disease will not infect New Mexico customers.

We and many others continue to believe that  competition and customer choice are
the future of our industry, and that there is no effective back to go back to.


                                       5


We are urging  regulators  and  legislators  to continue to press  forward  with
implementation, while learning from the errors made in California. New Mexico is
not California,  and our approach to industry  restructuring avoids the pitfalls
that California fell into.  However, we have also indicated a commitment to work
with the Legislature if they feel a short-term  delay is essential,  provided it
is structured  to continue the  development  of a competitive  supply market and
provide us the business flexibility to position and compete.

The  Legislature  has  several  possible  options:  it can  decline to amend the
restructuring  law, which would leave us on track for open access beginning next
year.

Alternatively, the Legislature could choose to let the open access dates slip by
one, two or maybe even five years,  but allow PNM and the other utilities in the
state to proceed with corporate separation or something similar that facilitates
development of a competitive  supply market as well as the other necessary steps
in preparation for customer choice.

Or the Legislature  could allow delay of all those  preparatory steps as well as
the open access dates,  effectively calling a "time out" that freezes the status
quo. It also raises questions about how the supply needs will be met.

The most  extreme  option would be to repeal the law  altogether  and attempt to
return to the old regulatory system.

There is no doubt that  California's  unfortunate  experience  has shaken public
confidence in the benefits of utility  industry  restructuring.  Ours is a vital
industry,  indispensable to modern life in the 21st Century,  and people look to
us to provide a reliable supply of energy at affordable prices.

But we also believe that free markets, properly structured,  will continue to do
that, and do it better than  regulation.  We strongly  support  continuing  with
preparing for a competitive  market,  particularly  focusing on the supply side,
even if the actual date for open access is delayed for some period of time.

4.     Earnings Forecast for 2001

Based on our strong  results in 2000 and our view of  developments  this year we
are raising our earnings forecast for 2001 to $2.60 to $2.70 a share.

We believe that the first and second  quarters  will exceed the same quarters of
last year.  In part,  this  change  reflects  the pricing in the West during the
second half of 2000.  We don't believe we will see the same spikes in the second
half of this year as we did in 2000 on a comparative basis, so we look for lower
third and fourth quarters in 2001 compared to last year.

That assumes  that retail sales growth will  continue at 2000's rate and that we
will  continue to see growth in our  wholesale  margins.  It also  includes  the
positive effect of the two gas rate cases settled at the end of the year.


                                       6


Expenses will  increase due to  inflation,  growth  initiatives  and  regulatory
costs. Significant capital additions in 2000 will lead to increased depreciation
in 2001, but fewer shares  outstanding  and reduced losses in our  non-regulated
businesses will benefit earnings.

At $2.60 to $2.70  earnings  for this year,  we will  produce an annual 16 to 18
percent  earnings growth rate since 1999 and be positioned to achieve our target
growth rate of 10 percent over the next 5 to 6 years.

Now we'd be glad to take any questions.

Barbara Barsky

Thank you for your interest.  Debi Randall and I are available this afternoon if
for further discussion.

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 the company
assumes no obligation to update this  information.  Because  actual  results may
differ materially from  expectations,  the company 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  system,  and state and federal
regulatory and legislative  decisions and actions,  including but not limited to
rulings issued by the New Mexico Public  Regulation  Commission  pursuant to the
Electric  Utility  Industry  Restructuring  Act of 1999 and in other  cases  now
pending or which may be brought  before the commission and any action by the New
Mexico  Legislature  to amend or repeal that Act, or other  actions  relating to
restructuring  or stranded cost recovery could cause PNM operating  revenues and
earnings to differ from results  forecast in this press 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 for the year ended  December  31,  1999,  Form 10-Q for the
quarter ended September 30, 2000 and 8K filings with the Securities and Exchange
Commission.


                                       7



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:  January 25, 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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