Exhibit 99.1

PNM Asks Court to Rule on Western Resources Agreement

October 12, 2001 05:30 PM ET

ALBUQUERQUE, N.M., October 12/PRNewswire/ -- PNM, Public Service Company of New
Mexico (PNM) today asked a New York court to resolve PNM's disagreement with
Western Resources (WR) regarding PNM's pending acquisition of Western's electric
utilities.

In its complaint, PNM asks the court to find that it is impossible to complete
the proposed transaction under the original terms. PNM also asks the court to
rule that an electric rate reduction mandated for Western by the Kansas
Corporation Commission (KCC) is sufficient cause for PNM to terminate its
agreement with Western.

Last November, PNM agreed to purchase Western's electric utility operations in a
stock for stock transaction valued in excess of $4 billion. That agreement
requires Western to separate its electric utilities from its other businesses
and split off those other businesses to Western's shareholders. As part of the
transaction, Western claimed that regulatory approval was not required for the
split-off. But in an order issued in July and since reaffirmed, the KCC has
ruled that Western's plan to restructure its operations, including the
split-off, is contrary to the public interest, unlawful and prohibited with or
without a merger.

"Although we take this step reluctantly, we believe we have no choice," said
Jeff Sterba, PNM chairman, president and CEO. "Western has demanded that we seek
KCC approval of the original transaction, even though it contains a provision
that has now been ruled unlawful by the KCC. We believe it would be futile for
us to make such a filing.

"We believe the current agreement must be restructured, so that it can be
approved by the KCC," Sterba added.

PNM is a combined electric and gas utility serving approximately 1.3 million
people in New Mexico. The company also sells power on the wholesale market in
the Western U.S. PNM stock is traded primarily on the NYSE under the symbol PNM.
For more information about PNM, see the Company's web site at www.pnm.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements made in this news release that relate to future events are made
pursuant to the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon current expectations and the company
assumes no obligation to update this information. Because actual results may
differ materially from expectations, the company cautions readers not to place
undue reliance on these statements. A number of factors, including rulings
issued by New Mexico Public Regulation Commission pursuant to the Electric
Utility Industry Restructuring Act of 1999(as amended), and in other cases now
pending or which may be brought before the commission, and decisions of
regulatory agencies involving or affecting the proposed transaction to acquire
Western Resources' electric utility operations could



cause future events to differ from those forecast in this press release. For a
detailed discussion of the important factors affecting PNM, please see
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Form 10-K, as amended, for the year ended December
31, 2000, as amended, Form 10-Q for the quarters ended March 31, 2001 and June
30, 2001, and Form 8-K filings with the Securities and Exchange Commission.