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PUBLIC SERVICE CO. OF NEW MEXICO SETTLES LAWSUIT

 PUBLIC SERVICE CO. OF NEW MEXICO SETTLES LAWSUIT
 ALBUQUERQUE, N.M., Dec. 11 /PRNewswire/ -- Public Service Co. of


New Mexico (PNM) (NYSE: PNM) has reached a settlement with the defendants in the PNM versus Geist et al lawsuit.
 Settlement was sought due to the continued and increasing litigation costs of pursuing the case in light of the court's ruling ordering the Company to pay all legal expenses of the defendants until the merits of the case were resolved.
 The estimated costs to shareholders of the lawsuit to date, which was filed in January 1991, is approximately $3 million. Current monthly costs have been between $450,000 and $500,000. PNM expected the case to have continued through the next 12 months and could have continued thereafter through the appeals process.
 Besides halting legal costs in this case, the settlement also enables the Company to avoid almost $2 million of future payments related to the Company's claims.
 "When we filed the suit, it was our understanding we would not have to pay the very substantial legal fees of the defendants," Joyce Godwin, board member and Special Litigation Committee chairman, said. "The court's ruling ordering us to pay these costs immediately required us to reconsider whether continuing the pursuit of the lawsuit was in the best interests of the Company."
 "This Company has to focus its resources on the future," John Ackerman, PNM CEO and president said. "While these costs would not have affected customers' rates, they would have a continued effect on our stockholders. This is a prudent business decision."
 -0- 12/11/91
 /CONTACT: Michael Temple, 505-848-2210; or Ernie C'DeBaca, 505-848-2806, both of Public Service Co. of New Mexico/
 (PNM) CO: Public Service Co. of New Mexico ST: New Mexico IN: UTI SU:


MC -- DV002 -- 1480 12/11/91 12:41 EST
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Publication:PR Newswire
Date:Dec 11, 1991
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