May 14, 2001


Public Service Company of New Mexico:

     We are aware that PUBLIC SERVICE COMPANY OF NEW MEXICO and subsidiaries has
incorporated by reference in its Registration Statement No. 33-65418, 333-03289,
333-03303, 333-32170 and 333-53367 its Form 10-Q for the quarter ended March 31,
2001,  which  includes  our report  dated May 9, 2001  covering  the  unaudited
interim financial information contained therein. Pursuant to Regulation C of the
Securities Act of 1933, that report is not considered a part of the registration
statement prepared or certified by our firm or a report prepared or certified by
our firm within the meaning of Sections 7 and 11 of the Act.

Very truly yours,

Arthur Andersen LLP