UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) March 27, 2001
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March 27, 2001
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PUBLIC SERVICE COMPANY OF NEW MEXICO
(Exact name of registrant as specified in its charter)
New Mexico 85-0019030
--------------------------- Commission ----------------------
(State or Other Jurisdiction File Number 1-6986 (I.R.S. Employer
of Incorporation) ------ Identification) Number)
Alvarado Square, Albuquerque, New Mexico 87158
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(Address of principal executive offices) (Zip Code)
(505) 241-2700
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report)
Item 9. Regulation FD Disclosure
The following is a press release issued by the Company on March 27, 2001 and is
being filed herewith as a Regulation FD Disclosure.
PNM RAISES EARNINGS FORECAST FOR FIRST QUARTER
ALBUQUERQUE, N.M. March 27, 2001 -PNM, Public Service Company of New Mexico
(NYSE:PNM), today announced it expects earnings for the first quarter 2001 will
significantly exceed results for the comparable period last year. PNM first
quarter 2001 earnings are now expected to be between $1.45 and $1.65 per diluted
share, compared to earnings of 55 cents per diluted share in the first quarter
of 2000.
PNM management expects full year earnings to be substantially higher than the
company's previous forecast of $2.60 to $2.70 per share. The current First Call
consensus estimate for PNM 2001 earnings is $2.62 per diluted share. PNM expects
to revise its earnings guidance for the full year when first quarter results are
announced on April 18, 2001.
The anticipated increase in first quarter earnings is primarily due to continued
high prices in the wholesale power market, according to PNM Chairman, President
and Chief Executive Officer Jeff Sterba.
"Although total wholesale sales are down so far this year compared to last year
in terms of megawatt-hours (MWh), the higher prices that we began to see in the
market during the second and third quarter of 2000 continue to boost revenues
and earnings," Sterba said.
The quarterly earnings forecast of between $1.45 and $1.65 per diluted share
represents a broader range than previous quarterly estimates because results are
dependent upon trends in the wholesale power market. "Our estimates in the
future will be much broader as the increased volatility of this commodity market
makes it more difficult to project earnings as precisely as in the past," Sterba
noted.
PNM wholesale power sales in January and February 2001 totaled 1,998,884 MWh,
down 9.5 percent from the 2,207,624 MWh sold in the comparable months last year.
Under the company's risk management practices, sales volume will generally
decrease as price volatility increases.
PNM retail electric sales for January and February 2001 totaled 1,145,379 MWh,
up 4.1 percent from the comparable two months in 2000. The increase in retail
sales was primarily due to an increase in heating degree days in 2001 compared
to the previous year and to continued growth in the company's New Mexico service
territory.
PNM plans to announce first quarter 2001 earnings on April 18, 2001. A
conference call for analysts and investors to discuss first quarter results with
management is scheduled for the morning of April 19, 2001.
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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.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this filing that relate to future events are made pursuant to
the Private Securities Litigation Reform Act of 1995. Readers are cautioned that
such forward-looking statements with respect to revenues, earnings, performance,
strategies, prospects and other aspects of the business of the Company are based
upon current expectations and are subject to risk and uncertainties. The Company
assumes no obligation to update this information.
Because actual results may differ materially from expectations, the Company
cautions readers not to place undue reliance on these statements. A number of
factors, including weather, fuel costs, changes in supply and demand in the
market for electric power, the performance of generating units and transmission
system, and state and federal regulatory and legislative decisions and actions,
including rulings issued by the New Mexico Public Regulation Commission pursuant
to the Electric Utility Industry Restructuring Act of 1999 and the recently
enacted delay bill and in other cases now pending or which may be brought before
the commission and any action by the New Mexico Legislature to further amend or
repeal that Act, or other actions relating to restructuring or stranded cost
recovery, or federal or state regulatory, legislative or legal action connected
with the California wholesale power market, could cause the Company's results or
outcomes to differ materially from those indicated by such forward-looking
statements in this filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW MEXICO
(Registrant)
Date: March 27, 2001 /s/ John R. Loyack
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John R. Loyack
Vice President, Corporate Controller
and Chief Accounting Officer
(Officer duly authorized
to sign this report)
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