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TEXAS-NEW MEXICO POWER COMPANY RECEIVES COURT OF APPEALS JUDGMENT

 FORT WORTH, Texas, Aug. 26 /PRNewswire/ -- Texas-New Mexico Power Company announced that on Wednesday, Aug. 25, 1993, the Court of Appeals, Third District of Texas, rendered a Judgment on the appeal of a 53rd District Court of Texas judgment. The district court judgment related to the Public Utility Commission of Texas (the "Commission") final order in the company's initial rate request (Docket No. 9491) with respect to the first 150 megawatt unit of TNP One, the company's two- unit, lignite-fired, circulating fluidized bed generating facility in Robertson County, Texas.
 The Court of Appeals Judgment states that "...the district court erred in (1) reversing that part of the Commission's order disallowing the Compressed Schedule Payment, the Force Majeure Payment, and a portion of the increased costs for the installation of a natural gas pipeline in Change Order No. 9, Item 2; (2) affirming that part of the Commission's order dealing with the prudence of TNP's decision to construct Unit 2 on the basis that this matter was not at issue in this proceeding; and (3) affirming that part of the Commission's order that failed to pass on to ratepayers TNP's federal income tax savings for expenses disallowed by the Commission. Accordingly, we reverse the district court's judgment and remand the cause to the district court with instructions that the cause be remanded to the Commission for proceedings not inconsistent with our opinion."
 In a February 1991 order on the rate request, the Commission allowed approximately $300 million of the requested costs of Unit 1 of TNP One into rate base for ratemaking purposes but disallowed approximately $39.5 million of costs.
 The district court judgment, signed July 6, 1992, reversed the Commission's disallowance of rate base treatment for the $39.5 million of costs for the first generating unit. The disallowed costs, including interest, associated with the Compressed Schedule Payment, the Force Majeure Payment and natural gas pipeline totaled approximately $22.5 million.
 The company anticipates filing motions for rehearing and pursuing further rights of appeal.
 Texas-New Mexico Power Company is the Fort Worth-based, wholly owned subsidiary of TNP Enterprises, Inc. (NYSE: TNP). The company provides electric service to more than 211,000 customers in 90 towns and cities in Texas and New Mexico.
 -0- 8/26/93
 /CONTACT: D.R. Barnard, Texas-New Mexico Power Company, 817-731-0099/
 (TNP)


CO: Texas-New Mexico Power Company ST: Texas IN: UTI SU:

LG -- NY019 -- 6055 08/26/93 10:00 EDT
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Publication:PR Newswire
Date:Aug 26, 1993
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