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.


                         PNM Interoffice Correspondence


TO:        All PNM                             October 12, 2001

FROM:      Communications Group

RE:        News Release Sent Today: PNM Asks Court to Rule on
           Western Resources Agreement

PNM today asked a New York court to resolve PNM's disagreement with Western
Resources regarding PNM's pending acquisition of Western's electric utilities.

In its complaint, PNM asks the court to find that it is impossible to
complete the proposed transaction under the original terms. PNM also asks the
court to rule that an electric rate reduction mandated for Western by the Kansas
Corporation Commission (KCC) is sufficient cause for PNM to terminate its
agreement with Western.

Last November, PNM agreed to purchase Western's electric utility operations
in a stock for stock transaction valued in excess of $4 billion. That agreement
requires Western to separate its electric utilities from its other businesses
and split off those other businesses to Western's shareholders.

As part of the transaction, Western claimed that regulatory approval was
not required for the split-off. But in an order issued in July and since
reaffirmed, the KCC has ruled that Western's plan to restructure its operations,
including the split-off, is contrary to the public interest, unlawful and
prohibited with or without a merger.

"Although we take this step reluctantly, we believe we have no choice,"
said Jeff Sterba, PNM chairman, president and CEO. "Western has demanded that we
seek KCC approval of the original transaction, even though it contains a
provision that has now been ruled unlawful by the KCC. We believe it would be
futile for us to make such a filing.

"We believe the current agreement must be restructured, so that it can be
approved by the KCC," Sterba added.