8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)	September 16, 2008
	(September 10, 2008)

Commission	Name of Registrants, State of Incorporation,	I.R.S. Employer
File Number	Address and Telephone Number	Identification No.
001-32462	PNM Resources, Inc.	85-0468296
	(A New Mexico Corporation)
	Alvarado Square
	Albuquerque, New Mexico  87158
	(505) 241-2700
001-06986	Public Service Company of New Mexico	85-0019030
	(A New Mexico Corporation)
	Alvarado Square
	Albuquerque, New Mexico  87158
	(505) 241-2700
______________________________
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

o Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c)

Item 8.01  Other Events.

On September 10, 2008, Public Service Company of New Mexico (“PNM”), which is a wholly-owned subsidiary of PNM Resources, Inc. (“PNMR”), the staff of the New Mexico Public Regulation Commission (“NMPRC”), the New Mexico Attorney General’s Office, the City of Albuquerque and the Coalition for Clean Affordable Energy signed a stipulation supporting the recovery of the costs of adding 357 megawatts to PNM’s retail generation portfolio. Other parties may support the stipulation, oppose it, or take no position. The stipulation is subject to approval by the NMPRC, which as of September 16, 2008, has not scheduled hearings on the stipulation.

The stipulation provides that PNM should be able to recover the costs of the purchase-power agreement associated with a 145-megawatt natural gas generation plant in Valencia County, just south of Albuquerque, as well as operating the Luna Energy Facility and the Lordsburg Generation Station as jurisdictional plants to serve retail customers. Additionally, the stipulation provides for approval of PNM’s acquisition of the beneficial interest in 29.8 megawatts of  the Palo Verde Nuclear Generating Station Unit 2, which is currently leased from another subsidiary of PNMR.

    On September 10, 2008, PNMR issued a press release announcing the stipulation.  The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

Item 9.01  Financial Statements and Exhibits

(c) Exhibits.

Exhibit Number                    Exhibit

99.1    Press Release dated September 10, 2008. 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

	PNM RESOURCES, INC.
	PUBLIC SERVICE COMPANY OF NEW MEXICO
	(Registrants)
Date:  September 16, 2008	/s/ Thomas G. Sategna
	Thomas G. Sategna
	Vice President and Corporate Controller
	(Officer duly authorized to sign this report)

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EX-99.1

Exhibit 99.1

For Immediate Release

Sept. 10, 2008

PNM Resources Announces Agreement with Key Parties to Allow Recovery

of Needed Generation by PNM Utility

(ALBUQUERQUE, N.M.) – PNM Resources’ (NYSE: PNM) largest utility, PNM, has reached an agreement with key parties that – if approved by state regulators – would allow PNM to recover the costs of adding 357 megawatts to its retail generation portfolio.

The agreement, which was filed today with the N.M. Public Regulation Commission, also provides for approval of PNM’s acquisition of the beneficial interest in 29.8 megawatts of Unit 2 of the Palo Verde Nuclear Generating Station. The retail allocation of this share of Unit 2 currently is recovered as an operating lease expense in PNM’s rate structure.

PNM, Commission staff, the state Attorney General’s Office, the City of Albuquerque and the Coalition for Clean Affordable Energy have signed the stipulation. Other parties may support it, oppose it or take no position. The Commission must approve the agreement with the parties, also called a stipulation.

“This agreement, if approved, allows PNM to add much-needed, clean and affordable generation resources to its mix in a way that makes sense for customers and the company,” said Pat Vincent-Collawn, PNM Resources president and chief operating officer.

The parties agree the needed generation should be added to PNM’s portfolio of jurisdictional resources, and the associated costs should be included in base rates in the utility’s next electric rate case, which is expected to be filed by the end of September. According to the agreement, PNM should be able to recover the costs of:

●   The purchase-power agreement associated with a 145-megawatt natural gas generation plant in Valencia County, which is just south of Albuquerque. In the interim, approval of the stipulation would allow PNM to recover the capacity costs of the Valencia plant in its emergency fuel and purchased power cost adjustment clause.

●   Operating the Luna Energy Facility and the Lordsburg Generating Station as jurisdictional plants to serve retail customers. PNM currently operates both facilities as merchant plants. For the purposes of ratemaking, Luna and Lordsburg will be included in retail rate base at estimated values of $38.7 million and $40.2 million, respectively.

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PNM Generation Addition Agreement Reached                                                                                                9-10-08      &# 160;    pg. 2 of 2

For the purposes of ratemaking, the acquisition of the beneficial interest in Palo Verde Unit 2 will be included in retail rate base at an estimated value of $70.1 million.

If approved, the agreement would increase PNM’srevenue requirement by about $30 million in the next rate case. The stipulation is available on the PNM Resources Web site at http://www.pnmresources.com/investors/regulatory.cfm.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2007 consolidated operating revenues from continuing and discontinued operations of $2.4 billion. Through its utility and energy subsidiaries, PNM Resources serves electricity to more than 859,000 homes and businesses in New Mexico and Texas and natural gas to more than 495,000 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Another subsidiary is First Choice Power, a deregulated competitive retail electric provider in Texas. With generation resources of approximately 2,700 megawatts, PNM Resources and its subsidiaries market power throughout the Southwest, Texas and the West. In addition, the company has a 50-percent ownership of EnergyCo, which owns approximately 920 megawatts of generation. For more information, visit www.PNMResources.com.

CONTACTS:

Analysts                                                                    Analysts & Media

Gina Jacobi, (505) 241-2211                                                                               Frederick Bermudez, (505) 241-4831

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