Exhibit 99.2
1. 2001 vs. 2000 Second Quarter Earnings
Six Months Six Months
Ended Ended
06/30/01 06/30/00
---------- ----------
Reported Earnings (Diluted) $ 1.24 $ 0.45
Non-Recurring Items 0.27 0.00
Western Resources Acquisition Costs 0.06 0.00
--------------- ---------------
Ongoing Earnings $ 1.57 $ 0.45
=============== ===============
2. Itemization of Second Quarter 2001 Non-Recurring Items
2Q01 Reported Earnings $ 1.24
Contribution to not-for-profit PNM Foundation 0.07 Other Income
Coal mine decommissioning charges related to
excluded plant at SJGS 0.20 Other Income
Western Resources Acquisition Costs 0.06 Other Income
------
2Q01 Ongoing Earnings $ 1.57
======
3. Year-to-date and Twelve Months-to-date Earnings
Six Months Twelve Months
Ended Ended
6/30/01 6/30/01
--------------- ---------------
Reported Earnings (Diluted) $ 2.84 $ 4.37
Non-Recurring Items 0.27 0.23
Western Resources Acquisition Costs 0.10 0.20
--------------- --------------
Ongoing Earnings $ 3.21 $ 4.80
=============== ==============
4. Electric Sales and Revenues
Three Months Three Months
Ended Ended
MWh Sales 6/30/01 6/30/00 % Chg
------------ ------------ -----
Total Retail 1,771,214 1,721,661 2.90%
Wholesale Sales 3,151,356 2,945,660 7.00%
------------- -------------
Total Sales 4,922,570 4,667,321 5.50%
============= ============= =====
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5. Key Dates
Jul 1 PRC approved new holding company, PNM Resources, Inc.
(see Issues Update)
Jul 3 PNM Annual Shareholder Meeting.
Jul 25 KCC issues final order on KGE/KPL rate cases.
Oct 4-6 PNM hosts meeting for analysts, investors and bankers
in Albuquerque, NM.
Oct 28-30 EEI Financial Conference in New Orleans.
4Q, '01
(estimated) Shareholder vote on PNM's acquisition of Western Resources.
6. Issues Update
Issue Status
- ----- ------
New Holding Co. Order On June 29, 2001, the PRC issued a Final Order
issued by PRC authorizing PNM to form a new holding company,
PNM Resources, Inc. The company has some concerns
over certain terms and conditions attached, and is
reviewing the Order to determine how to proceed.
Effect of FERC Order While we do not believe that price caps are the
on PNM Wholesale answer to the energy shortage we are facing in the
Power Sales West, it is still too early to fully quantify the
impact of that order on PNM revenues and earnings
going forward. Nonetheless, ongoing earnings for
2001 are expected to be between $4.25 and $4.50.
New Long-term Power From July 1, 2001 until Dec. 31, 2006, PNM will
Contract provide varying amounts of firm power (up to 114 MW)
to Texas-New Mexico Power. PNM will build a new
135 MW gas-fired plant that will be operational by
the fall of 2002 to help serve this load. The
company plans to expand the plant to 220 MW in
late 2003.
Generating Resources The company's generating plants have been operating
at above 84% capacity factor in 2001. Even in the
event of unplanned outages, PNM is well-positioned
to meet its requirements for power.
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