ARTHUR
                                       ANDERSEN

                               ARTHUR ANDERSEN & CO. SC




May 6, 1994                                     Arthur Andersen & Co.
                                                Suite 400
                                                6501 Americas Parkway NE
                                                Albuquerque, NM 87110-5372
                                                505 889-4700


Public Service Company of New Mexico:

We are aware that Public Service Company of New Mexico has incorporated by
reference in its Registration Statement No. 33-65441 its Form 10-Q for the
quarter ended March 31, 1994, which includes our report dated May 6, 1994
covering the unaudited interim financial information contain 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 & Co.

Arthur Andersen & Co.