Exhibit 99.2

Success Over Last 12 Months Demonstrates PNM's Ability to Thrive On Change,
Chairman and CEO Tells Shareholders at Company's Annual Meeting

     ALBUQUERQUE,  N.M.,  July 3, 2001 - In today's  utility  industry,  success
depends on being able to respond rapidly and effectively to changing conditions,
Jeff Sterba,  chairman,  president and chief  executive  officer of PNM,  Public
Service Company of New Mexico (NYSE:PNM), told shareholders today.

     "We are continually  learning how to respond to change and make it work for
us to benefit PNM customers,  shareholders, and employees," Sterba said "We have
learned to respond  quickly,  not just to day-to-day  shifts in the market,  but
also to the shifting  currents of political and regulatory action at the federal
level."

     The  latest  change  PNM  has  faced  was  the  Federal  Energy  Regulatory
Commission's  June 18 decision  expanding price controls  throughout the Western
wholesale power market, Sterba noted. "While we are still watching the effect of
that order on the  current  market,  if the price caps  expire as  scheduled  in
September  2002, we do not believe it will  adversely  affect the company in the
long-term."

     Sterba noted that PNM shareholders  have seen a 105 percent total return on
their  investment  since the  company's  last annual  meeting,  compared to a 26
percent return for similar electric and gas utilities.

     "I believe our track record in the wholesale  market over the past 10 years
speaks for itself," he said.  "Yes, the market is changing.  In fact,  it's been
evolving at a pace  undreamed of just a few years ago. But we have  demonstrated
our ability to thrive on that  change,  and I am confident we can continue to do
so."

     Sterba  made  his  remarks  at  the  PNM  annual  shareholders  meeting  in
Albuquerque  Tuesday  morning.  At the meeting,  shareholders  re-elected  three
members to the PNM Board of Directors.  The three directors elected are: John T.
Ackerman, of Corrales, New Mexico; Joyce A. Godwin, Albuquerque, New Mexico; and
Manuel Lujan, Jr., also of Albuquerque.

     At the meeting,  shareholders also overwhelmingly approved proposals by the
PNM Board of Directors to amend the company's  director  retainer  plan,  ratify
amendments to the articles of incorporation of PNM Resources, a proposed holding
company, and approve amendment of the employee stock incentive plan for that new
holding company.

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     PNM is a  combined  electric  and gas  utility  serving  approximately  1.3
million  people in New  Mexico.  The company  also sells power on the  wholesale
market in the Western U.S.  PNM stock is traded  primarily on the NYSE under the
symbol PNM. For a transcript of Mr. Sterba's remarks at the annual  shareholders
meeting  and more news  about  PNM,  visit  the  company's  web site at  pnm.com
www.pnm.com


FOR MORE INFORMATION:
         Analysts contact:     Barbara Barsky       (505) 241-2662
                               Debra Randall        (505) 241-2649
         Media contact:        Bob Hagan            (505) 241-2621



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