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) July 3, 2001



                      PUBLIC SERVICE COMPANY OF NEW MEXICO
             (Exact name of registrant as specified in its charter)


          New Mexico                  Commission                85-0019030
- ----------------------------                             -----------------------
(State or Other Jurisdiction      File Number 1-6986        (I.R.S. Employer
     of Incorporation)                                   Identification) Number)



                 Alvarado Square, Albuquerque, New Mexico 87158
               (Address of principal executive offices) (Zip Code)



                                 (505) 241-2700
              (Registrant's telephone number, including area code)

                         ______________________________
              (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 July 3, 2001 and
is being filed herewith as a Regulation FD Disclosure.


PNM TO SERVE TEXAS-NEW MEXICO POWER
WITH LONG-TERM POWER SALE

      -- New PNM Power Plant Planned for Las Cruces Area Will Serve TNMP --

     ALBUQUERQUE,  New Mexico,  July 2, 2001 - Texas-New Mexico Power (TNMP) and
PNM,  Public Service Company of New Mexico  (NYSE:PNM),  have signed a long-term
wholesale power contract to improve price stability and ensure an adequate power
supply for TNMP's firm retail customers.

     The  contract,  which  runs from July 1, 2001  until Dec.  31,  2006,  will
provide  varying  amounts  of firm power  through  2002 to  complement  existing
contracts TNMP has in place.  As those contracts  expire,  PNM will replace them
and become TNMP's sole supplier  beginning Jan.1,  2003. In the last year of the
contract, TNMP will need 114 megawatts of firm power.

     "Reliable  service at stable  prices is important to our  customers,"  said
TNMP President and CEO Jack V. Chambers. "This agreement is an important step in
insulating our customers from the dramatic price  fluctuations  and  reliability
problems that California has experienced."

     "We are  pleased to have won the bid to supply  southern  New  Mexico  with
power," said PNM Chairman,  President and CEO Jeff Sterba. "This contract offers
TNMP stable  power costs while  providing  PNM with revenue  stability  over the
course of the contract."

     PNM will supply TNMP's needs from its resource  portfolio,  including a new
natural gas-fired power plant PNM plans to build in southern New Mexico.

     The new  plant,  located  approximately  12 miles  west of Las  Cruces,  is
currently  scheduled  to  begin  operations  in the fall of 2002  providing  135
megawatts (MW) of  electricity.  The company plans to expand the plant to 220 MW
in late 2003.  It will be PNM's  initial  investment in new power supply for the
competitive wholesale market.

     "We are  providing  TNMP not only its power  supply but also key  services,
including scheduling and dispatching of the wholesale power," Sterba added. "PNM
will act as TNMP's agent to procure,  schedule and dispatch  wholesale  power on
TNMP's behalf."

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    TNMP,  headquartered in Fort Worth,  Texas,  serves 46,000  residential and
commercial  customers in New Mexico.  It provides service to residents of Silver
City,  Lordsburg,  Alamogordo,  Ruidoso and surrounding areas in Hidalgo,  Luna,
Grant, Lincoln and Otero Counties.

     Texas-New Mexico Power Company provides community-based electric service to
85 cities  and more than  238,000  customers  in Texas and New  Mexico.  It is a
wholly owned subsidiary of TNP Enterprises, Inc.

     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 news release that relate to future events are made
pursuant  to  the  Private  Securities  Litigation  Reform  Act of  1995.  These
forward-looking  statements are based upon current  expectations and PNM assumes
no  obligation to update this  information.  Because  actual  results may differ
materially from  expectations,  PNM 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  systems, and state and federal regulatory and
legislative  decisions  and actions,  including  the  wholesale  electric  power
pricing  mitigation  plan ordered by the Federal  Energy  Regulatory  Commission
(FERC) on June 18,  2001,  rulings  issued by the New Mexico  Public  Regulation
Commission  (NMPRC) pursuant to the Electric Utility Industry  Restructuring Act
of 1999 (as  amended),  and in other  cases now  pending or which may be brought
before the FERC or the NMPRC, or other actions relating to utility restructuring
or stranded  cost  recovery,  could  cause PNM  results to differ  from  results
forecast  in this news  release.  For a  detailed  discussion  of the  important
factors  affecting  PNM,  please see  ``Management's  Discussion and Analysis of
Financial  Condition and Results of  Operations'' in the company's Form 10-K (as
amended) for the year ended  December 31, 2000,  Form 10-Q for the quarter ended
March  31,  2001,  and  Form  8-K  filings  with  the  Securities  and  Exchange
Commission.




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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:  July 6, 2001                             /s/ John R. Loyack
                                   ---------------------------------------------
                                                  John R. Loyack
                                        Vice President, Corporate Controller
                                            and Chief Accounting Officer
                                   (Officer duly authorized to sign this report)






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