MODIFICATION 8

                               TO

              SAN JUAN PROJECT CO-TENANCY AGREEMENT

                             BETWEEN

              PUBLIC SERVICE COMPANY OF NEW MEXICO

                               AND

                  TUCSON ELECTRIC POWER COMPANY



     THIS MODIFICATION No. 8 to the San Juan Project Co-Tenancy
Agreement between PUBLIC SERVICE COMPANY OF NEW MEXICO ("New
Mexico") and TUCSON ELECTRIC POWER COMPANY ("Tucson"), hereinafter
referred collectively as the "Parties", is hereby entered into and
executed as of this ____ day of _________________, 1993.

WITNESSETH:

     WHEREAS, the Parties entered into an agreement described as
the San Juan Project Co-Tenancy Agreement ("Co-Tenancy Agreement")
effective July 1, 1969, as modified by Modification No. 1 on May
16, 1979, Modification No. 2 on December 31, 1983, Modification
No. 3 on July 17, 1984, Modification No. 4 on October 25, 1984,
Modification No. 5 on July 1, 1985, Modification No. 6 on April 1,
1993, and Modification No. 7 on April 1, 1993, which establishes
certain terms and conditions relating to their participation and
responsibilities in the San Juan Project; and

     WHEREAS, on August 18, 1980, the Parties entered into a Coal
Sales Agreement with the San Juan Coal Company ("SJCC"), as
amended; and

     WHEREAS, the Parties, in order to more efficiently use the San
Juan Project, desire to amend the terms and conditions under which
fuel expenses are allocated among the Participants; and 

     WHEREAS, the Parties desire to acknowledge certain obligations
of the Participants regarding the Coal Sales Agreement; and

     WHEREAS, the Parties desire to amend the Co-Tenancy Agreement
in other particulars as described herein.

     NOW THEREFORE, the Parties agree that the Co-Tenancy Agreement
is hereby amended as follows:

DEFINITIONS:   The following terms when used herein shall have the
meaning specified:

1.0  Effective Date:  This Modification No. 8 shall become
effective January 1, 1993.

2.0  Section 5.13 shall be amended to read in its entirety as
follows:

          Emergency Coal Storage Pile(s):  The coal storage pile,
     sometimes referred to as the Minimum Coal Storage Pile, for
     the unit(s) which is to be drawn upon when fuel deliveries are
     interrupted.

3.0  Section 6.4 shall be amended to read in its entirety as
follows:

          Emergency Coal Storage Pile shall be owned by the
     Participants and Unit Participants, in proportion to their
     respective investment in the Emergency Coal Storage Pile.



     IN WITNESS WHEREOF, the Parties hereto have caused this
Modification No. 8 to the Co-Tenancy Agreement to be executed as of
this _____ day of _____________, 1993.

                         PUBLIC SERVICE COMPANY OF NEW MEXICO


                         By:  ______________________________

                         Its: ______________________________



                         TUCSON ELECTRIC POWER COMPANY


                         By:  ______________________________  

                         Its: ______________________________