Exhibit 99.2 Slide presentation by the Company's Chairman, President and Chief Executive Officer, Jeff Sterba, at the Edison Electric Institute's 35th Annual Financial Conference on Tuesday, October 31, 2000 scheduled to be delivered at 1:30 PM (EST). Powering Up for the 21st Century Public Service Company of New Mexico 1. PNM Stock Price Compared to the Philadelphia Utility Index PNM Utility Index Date Price Return (1) Price Return (1) 10/20/2000 26.06 66.03 365.77 38.91 10/13/2000 25.88 64.84 369.48 40.32 10/06/2000 25.38 61.65 355.09 34.85 09/29/2000 25.89 64.96 374.70 42.12 09/22/2000 25.56 62.85 352.16 33.57 09/15/2000 25.02 59.39 372.28 41.15 09/08/2000 24.59 56.63 363.76 37.84 09/01/2000 21.88 39.36 335.55 26.92 08/25/2000 20.69 31.79 323.71 22.41 08/18/2000 21.50 36.97 329.87 24.56 08/11/2000 21.44 36.57 326.18 23.02 08/04/2000 18.63 18.65 320.54 20.58 07/28/2000 18.00 13.45 303.01 13.79 07/21/2000 18.06 13.84 304.59 14.38 07/14/2000 15.50 -2.31 299.52 12.48 07/07/2000 15.69 -1.12 294.50 10.59 06/30/2000 15.45 -2.60 283.37 6.36 06/23/2000 15.50 -2.31 297.24 11.45 06/16/2000 16.63 4.78 302.98 13.60 06/09/2000 16.25 2.42 302.31 13.22 06/02/2000 16.50 4.00 299.74 12.01 05/26/2000 16.63 4.78 307.25 14.80 05/19/2000 16.19 2.03 301.60 12.50 05/12/2000 16.50 4.00 301.16 12.25 05/05/2000 16.63 4.78 290.89 8.10 6 Exhibit 99.2 (Continued) PNM Utility Index Date Price Return (1) Price Return (1) 04/28/2000 18.00 13.45 295.53 9.76 04/21/2000 16.81 4.80 286.23 6.16 04/14/2000 16.44 2.46 279.86 3.80 04/07/2000 15.44 -3.77 262.60 -2.60 03/31/2000 15.75 -1.82 258.69 -4.17 03/03/2000 15.69 -2.21 255.78 -5.70 02/25/2000 15.19 -5.33 251.15 -7.52 02/18/2000 16.19 .91 268.22 -1.33 02/11/2000 16.00 -.26 276.45 1.54 02/04/2000 15.75 -1.82 286.41 4.92 01/28/2000 15.44 -3.77 284.45 4.00 01/21/2000 15.94 -1.92 287.49 5.11 01/14/2000 16.06 -1.15 283.32 3.59 01/07/2000 16.63 2.31 285.31 4.31 12/31/1999 16.25 .00 273.82 .00 (1) Return assumes all common stock dividends are reinvested. 2. PNM Earnings Drivers - Energy Delivery - Power Marketing/Power Production - Technology Initiatives 3. Energy Delivery Customer focus supports a positive regulatory environment earning an appropriate return. 4. A Proven Approach to Power Marketing: Customized products in a commodity world - a niche strategy built on trading expertise backed by competitive generation assets and effective risk management. 5. Total Electric Sales and Margin 1995 1996 1997 1998 1999 2000 (2) Sales-GWh 2,591 4,575 6,789 8,782 11,148 12,580 Gross Margin (in millions) $45.70 $63.32 $77.26 $97.55 $96.33 $123.21 (2) Includes estimates for the fourth quarter. 7 Exhibit 99.2 (Continued) 6. Uniquely Positioned 1999 Total Sales By Delivery Point: Palo Verde/West Wing............................... 58% San Juan/Four Corners.............................. 24% California Oregon Border........................... 2% California......................................... 9% Blackwater......................................... 2% Other Sales........................................ 5% 7. Underground Mining at San Juan - $500 Million Savings in Coal Costs - $2 Million/Year Reduction in O&M - Benefits Begin to Phase-in Next Year - New Mine in Full Production 11/02 8. Growth Targets: Grow Asset Backed Trading Strategy Representative Investment Plan Cumulative Amounts ----------------------------------------------- 2001 2002 2003 2004 2005 Combustine Turbine..................... 72 72 72 72 72 TBD.................................... 24 24 24 24 24 Combustine Turbine..................... - 63 63 63 63 Combustine Turbine..................... - 80 80 80 80 Combine Cycle/Combustine Turbine....... - 40 40 40 40 Combustine Turbine..................... - 68 68 68 68 TBD (4-5 projects)..................... - 233 501 549 597 Combustine Turbine..................... - - 40 40 40 TBD.................................... - - 256 256 256 Combine Cycle/Combustine Turbine....... - - - 155 155 Combine Cycle/Combustine Turbine....... - - - - 108 ------- ------- ------- ------ ------ Total MWs.............................. 96 580 1,144 1,347 1,503 ======= ======= ======= ====== ====== $$ (in millions)....................... $197.7 $414.6 $698.0 $776.4 $834.8 ======= ======= ======= ====== ====== 9. Opportunities in Innovative Technology - $20 - $30 Million planned investment in late stage ventures. - Breakeven by year-end 2002 8 Exhibit 99.2 (Continued) 10. Deregulation: - Price stability is key. Customers look to us for solutions 11. 2000 - 2001 Earnings Forecast Year Ended 2000 Estimate Year Ended 2001 Estimate ------------------------ ------------------------ - 1999 Reported - 2000 Estimated Earnings $1.92 Earnings $2.40-$2.50 - YTD 9/30/00 - San Diego Contract ($0.27) Reported Earnings $2.17 - Retail/Wholesale - One-Time Items (3) ($0.21) Sales Growth Unknown - 4th Quarter Earnings - Weather Unknown Estimate $0.45-$0.55 - Other Unknown ------------ ------------ - Estimated Earnings $2.40-$2.50 - Estimated Earnings $2.50-$2.60 ============ ============ (3) One-time items recorded in the nine months ended September 30, 2000 include a gain of 21 cents per share from settlement of a lawsuit, a gain of 7 cents per share for the reversal of certain reserves associated with the expected resolution of two gas rate cases now pending before state regulators and a one-time charge of 7 cents per share in connection with acquisition of a new, long-time wholesale customer. 12. Disclosure Regarding Forward Looking Statements PNM considers this presentation to contain "forward-looking statements" under Federal securities law. It is prepared to assist the investment community in evaluating PNM and its securities. This presentation does not contain all of the information material to an evaluation and should be read in conjunction with the reports, proxy statements, and other information PNM files with the Securities and Exchange Commission. Important factors which could cause results to differ materially from those forecasted include the following: - - Adverse actions of utility regulatory commissions, - - Utility industry restructuring, - - Failure to recover stranded assets, - - The inability of the Company to successfully compete outside its traditional regulated market, - - Regional economic conditions, which could affect customer growth, - - Adverse impacts resulting from environmental regulations, 9 Exhibit 99.2 (Continued) - - Loss of favorable fuel supply contracts or inability to negotiate new fuel supply contracts, - - Failure to obtain water rights and rights-of-way, - - Operational and environmental problems at generating stations, - - The cost of debt and equity capital, - - Weather conditions, and, - - Technical developments in the utility industry. In addition, "Management's Discussion and Analysis of Financial Conditions and Results of Operations" in the company's Form 10-K should be referred to for discussion of known trends and uncertainties. The forecast data and sensitivities represented herein reflect management's most recent assessment of the company's future operations and economic conditions based upon assumptions with regard to future events. The assumptions may not prove accurate, and PNM cautions readers against attributing undue certainty to management's assessment. The company intends to issue this information periodically, with updated information that reflects actual results and changes in management's assessment and underlying assumptions. Otherwise, PNM does not undertake to update the forecast data and sensitivities presented herein. For further information, call Barbara Barsky, Senior Vice President of Planning and Investor Services at 505-241-2662. 10