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TNP ENTERPRISES ANNOUNCES INCREASE IN THIRD QUARTER EARNINGS

 TNP ENTERPRISES ANNOUNCES INCREASE IN THIRD QUARTER EARNINGS
 FORT WORTH, Texas, Oct. 26 /PRNewswire/ -- TNP Enterprises, Inc. (NYSE: TNP) announced today a 5.9 percent increase in consolidated earnings available for common stock for the quarter just ended to $12.4 million, or $1.46 per share, compared to $11.7 million, or $1.42 per share for the third quarter in 1991. Operating revenues for the same period increased 3.3 percent, from $132.9 million in 1991 to $137.3 million in 1992.
 Operating revenues increased 2.6 percent to $443 million for the 12 months ended Sept. 30, 1992 compared to $432 million for the 12 months ended Sept. 30, 1991. Consolidated earnings available for common stock for the most recent twelve months were $14.6 million, or $1.74 per share, compared to $18.3 million, or $2.22 per share, for the prior 12 months. This represents a 20.5 percent decline in consolidated earnings, resulting in a return on common equity of 7.8 percent.
 TNP Enterprises, Inc. is the Fort Worth-based holding company of Texas-New Mexico Power Company, an electric utility.
 Texas-New Mexico Power Company (Utility), the principal subsidiary of TNP Enterprises, Inc. attributed decreased utility earnings for the 12 months just ended to an increase in interest charges that was not fully offset by an increase in net operating income. Interest charges increased due, in part, to the assumption in July 1991 of the financing facility related to Unit 2 of TNP One and because portions of the financing facilities for Unit 1 and Unit 2 were refinanced during January 1992 with securities that have higher interest rates.
 For the quarter and for the 12 months ended Sept. 30, 1992, net operating income increased because revenues, affected primarily by higher rates, grew faster than operating expenses. Revenues, while affected by higher rates during the quarter and during the 12 months just ended, were also affected by customer usage declines. Part of the declines in customer usage is attributed to milder than normal temperatures in Texas during the last three quarters.
 On Oct. 16, 1992, the Public Utility Commission of Texas (PUCT) approved an increase in annualized revenues of $25.7 million, or 72 percent of the Utility's original $35.8 million requested rate increase, primarily related to Unit 2 of TNP One. The PUCT's final order allowed $250.7 million of the costs of Unit 2 in rate base; however, the PUCT disallowed from rate base $24.5 million of the requested costs of $275.2 million for the unit. This rate order is subject to motions for rehearing before the PUCT and, ultimately, appeal to the courts.
 The operation of Unit 2 of TNP One, a two-unit lignite fueled generating plant in Robertson County, Texas led to increases in certain operating expenses and interest charges, although resulting in a decrease in the expense of power purchased for resale.
 A summary of consolidated earnings for the quarter and 12 months ended Sept. 30, 1992, and for the same period in 1991 is shown below.
 3 Months Ended 12 Months Ended
 Sept. 30 Sept. 30 Sept. 30 Sept. 30
 1992 1991 1992 1991
 (Amounts in thousands except per share amounts)
 Operating revenues $137,287 $132,903 $443,495 $432,446
 Net operating income 29,110 21,877 78,228 59,416
 Net earnings 12,653 11,980 15,568 19,458
 Earnings available
 for common stock:
 Utility operations 12,351 11,770 14,479 18,256
 Nonutility operations 69 (44) 100 89
 Consolidated earnings
 available for common
 stock 12,420 11,726 14,579 18,345
 Earnings per share of
 common stock:
 Utility operations 1.45 1.42 1.73 2.21
 Nonutility operations 0.01 0.00 0.01 0.01
 Consolidated earnings
 per share of common
 stock $ 1.46 $ 1.42 $ 1.74 $ 2.22
 Weighted average number
 of common shares
 outstanding 8,492 8,284 8,384 8,256
 -0- 10/26/92
 /CONTACT: D.R. Barnard of TNP Enterprises, 817-731-0099, ext. 319/
 (TNP) CO: TNP Enterprises, Inc. ST: Texas IN: UTI SU: ERN


KD -- NY070 -- 4787 10/26/92 12:34 EST
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Date:Oct 26, 1992
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