EXHIBIT 18

LETTER RE: CHANGE IN ACCOUNTING PRINCIPLE

August 8, 1995

TNP Enterprises, Inc.
Texas-New Mexico Power Company
Fort Worth, Texas

Ladies and Gentlemen:

We  have been furnished with a copy of the combined Form 10-Q/A  of
TNP  Enterprises, Inc. and Texas-New Mexico Power Company  for  the
three  months  ended March 31, 1995, and have read  the  Companies'
statements  contained  in  Note  1 to  the  consolidated  financial
statements  included therein. As stated in Note  1,  the  Companies
changed their method of accounting for operating revenues from  the
basis  of  monthly  meter readings to accrual of electric  services
provided  but not billed at the end of each month and  stated  that
the  newly  adopted  accounting  principle  is  preferable  in  the
circumstances  because  accruing  unbilled  revenues  more  closely
matches  revenues and expenses and more closely conforms to utility
industry  practice.  In  accordance  with  your  request,  we  have
reviewed and discussed with Company officials the circumstances and
business judgment and planning upon which the decision to make this
change in the method of accounting was based.

We  have  not  audited any financial statements of TNP Enterprises,
Inc.  or  Texas-New Mexico Power Company as of any date or for  any
period  subsequent to December 31, 1994, nor have  we  audited  the
information  set  forth  in  the  aforementioned  Note  1  to   the
consolidated financial statements; accordingly, we do  not  express
an opinion concerning the factual information contained therein.

With  regard to the aforementioned accounting change, authoritative
criteria have not been established for evaluating the preferability
of  one  acceptable  method of accounting over  another  acceptable
method. However, for purposes of TNP Enterprises, Inc.'s and Texas-
New  Mexico Power Company's compliance with the requirements of the
Securities and Exchange Commission, we are furnishing this letter.

Based  on  our review and discussion, with reliance on management's
business  judgment and planning, we concur that the  newly  adopted
method of accounting is preferable in the Companies' circumstances.


                                        Very truly yours,


                                        \s\ KPMG Peat Marwick LLP
                                        KPMG Peat Marwick LLP