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PNM REPORTS 1992 RESULTS FOURTH QUARTER CHARGE TAKEN FOR EXCESS CAPACITY

 ALBUQUERQUE, N.M., Feb. 3 /PRNewswire/ -- Today, Public Service Co. of New Mexico (PNM) (NYSE: PNM) reported a 1992 net loss of $110.6 million or $(2.65) per share, versus $13.5 million available for common or 32 cents per share in 1991. The loss for the fourth quarter 1992 was $134.9 million $(3.23) per share versus $0.1 million available for common, 0 cents per share, in the like period 1991.
 The loss was the result of $142.5 million in one-time charges taken in the fourth quarter. The charges are largely attributable to a write- down of the company's investment in Palo Verde Nuclear Generating Station Unit 3 and a loss provision associated with its 105 MW power purchase contract from Modesto-Santa Clara-Redding (MSR). These write- offs were taken to recognize the company's change in corporate strategy, announced Jan. 11, 1993.
 Earnings before one-time charges for the year were $31.3 million or 75 cents per share as compared to $25.9 million or 62 cents per share in 1991. Earnings before one-time charges in the fourth quarter were $7.1 million or 17 cents per share versus $5.0 million or 12 cents per share in the comparable quarter 1991.
 Total operating revenues for 1992 were $849.1 million, a decrease of $8.0 million from 1991. Electric and water operating revenues increased $26 million to $606.7 million. Gas operating revenues in 1992 decreased $34.6 million to $242.4 million, the result of a reduction in the cost of gas, a component of gas revenues. A better indicator of financial performance, total gross margin (revenues less fuel, purchased power, and cost of gas sold), increased 2.1 percent, or $11.5 million.
 In 1992, total KWh sales rose 9.2 percent. Retail KWh sales increased by 3.1 percent while wholesale KWh sales increased 19.2 percent due to improved wholesale market conditions.
 Non-fuel operations and maintenance (O and M) expenses decreased $7.2 million. However, $5.1 million of the decrease is due to the purchase of 22 percent of the lessors interest in Palo Verde 1 and 2 leases, resulting in a reduction of Palo Verde lease payments . Apart from the lease payment reduction, O and M decreased $2.1 million or 1 percent, evidence of the company's continuing commitment to cost control.
 Other income and deductions (net of tax) for the fourth quarter were
$(142.3) million. The write-off detail is as follows:
 Palo Verde 3: $102.1 million after tax--$(2.44)/share
 MSR: $24.5 million after tax--(59 cents)/share
 Other: $15.9 million after tax--(37 cents)/share charges
 include: transaction privilege tax, discontinuation of
 FAS 71 for FERC wholesale customers, and other charges.
 -0- 2/3/93
 /CONTACT: Michael Temple, 505-848-2210; Sam Brothwell, 505-848-2287; or Pam Lett, 505-848-4673, all of Public Service Co. of New Mexico/
 (PNM)


CO: Public Service Co. of New Mexico ST: New Mexico IN: UTI SU: ERN

BB -- DV003 -- 2292 02/03/93 10:12 EST
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Publication:PR Newswire
Date:Feb 3, 1993
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