November 10, 2000


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 September
30,  2000,  which  includes  our report  dated  November  10, 2000  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