ARTHUR ANDERSEN LLP






July 28, 1999







Public Service Company of New Mexico:

We are aware that  Public  Service  Company of New  Mexico has  incorporated  by
reference in its Registration Statement Nos. 33-65418, 333-03289, 333-03303, and
333-53367 its Form 10-Q for the quarter ended June 30, 1999,  which includes our
report dated July 28, 1999, covering the unaudited interim financial information
contained 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,



/s/ Arthur Andersen LLP