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PUBLIC SERVICE CO. OF NEW MEXICO SIGNS NEW AGREEMENT ON PROPOSED 50MW ASSET SALE TO ANAHEIM

 ALBUQUERQUE, N.M., Dec. 21 /PRNewswire/ -- Public Service Co. of New Mexico (PNM) (NYSE: PNM) has signed a stipulated agreement with the New Mexico Public Service Commission (NMPSC) staff and other intervenors which requests regulatory decertification of 50MW of San Juan generating capacity that PNM previously agreed to sell to the city of Anaheim, Calif.
 The stipulation requires PNM to flow back to its New Mexico jurisdictional customers $5 million of the estimated $10.5 million after-tax gain currently expected to be realized on the sale. Due to the projected operating losses on the remaining excluded capacity, the company will amortize its portion of the gain ($5.5 million) over the remaining lives of the excluded assets.
 If the sale is consumated, PNM expects to realize ongoing annual earnings benefits between 6 cents and 8 cents per share related to reductions in operating and financing costs. Because of the reduction in excluded capacity, customers will receive benefits of approximately $8.4 million (net present value) through a greater allocation of off-system sales.
 The agreement calls for PNM to develop and file with the NMPSC a non-incremental interruptible rate tariff by no later than Jan. 1, 1995. PNM further agreed to apply an $864/kw price cap to the next 50 megawatts of generating resources added prior to Dec. 31, 2005 and to seek NMPSC approval before purchasing power to meet future resource requirements.
 PNM anticipates an NMPSC order on the stipulated agreement by the first quarter 1993.
 -0- 12/21/92
 /CONTACT: Michael Temple, 505-848-2210; or Pam Lett, 505-848-4673, both of PNM/
 (PNM)


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

BB -- DV007 -- 0066 12/21/92 10:48 PST
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Publication:PR Newswire
Date:Dec 21, 1992
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