SECURITIES AND EXCHANGE
COMMISSION
Washington, D. C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY
CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE
PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY
ACT OF 1935
*****
File No. 69-291
Texas-New Mexico Power Company
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935 (Act), and submits the following
information:
1. The name, State of organization, location and nature of business of
claimant and every subsidiary thereof:
State of Location and
Name Organization Nature of Business
____ ______________ __________________
Texas-New Mexico Power Company Texas P. O. Box 2943
Ft. Worth, Texas
76113
Electric Utility/
Holding Company
Texas Generating Company Texas P. O. Box 2943
Ft. Worth, Texas
76113
Special purpose
corporation
Texas Generating Company II Texas P. O. Box 2943
Ft. Worth, Texas
76113
Special purpose
corporation
2. Following is a brief description of the properties of claimant and of
each of its wholly owned public utility subsidiaries, Texas Generating Company
(TGC) and Texas Generating Company II (TGC II), used for the generation,
transmission and distribution of electric energy for sale, indicating the
location of principal generating plants, transmission lines and distribution
facilities including all such properties which are outside the State in which
claimant and its subsidiaries are organized, and all transmission lines which
deliver or receive electric energy at the borders of such States:
Texas-New Mexico Power Company (TNMP) serves approximately 222,000
customers in a total of 85 municipalities and adjacent rural areas. TNMP is a
subsidiary of TNP Enterprises, Inc., a public utility holding company exempt
under Section 3(a)(1) of the Act.
Within Texas, TNMP is a regulated public utility engaged in the supply,
transmission, distribution and sale of electric energy. TNMP has three operating
regions throughout Texas. The largest municipalities within Texas served by TNMP
are Texas City, Lewisville, and League City. The regions located in the State of
Texas are as follows:
* North Central Region. Electric transmission and distribution
systems serving 56 communities in northeastern and central
Texas. The region is based at Lewisville, Texas.
* Gulf Coast Region. Electric transmission and distribution
systems serving 14 communities in southeastern Texas. The
region is based at Texas City, Texas.
* Mountain Region. Electric transmission and distribution
system serves 6 communities in southwestern Texas and 9
communities in southern New Mexico. The Mountain region is
based at Silver City, New Mexico. The largest municipalities
within this region served by TNMP are Silver City,
Alamogordo and Ruidoso, New Mexico, and Pecos, Texas.
Generating facilities owned by TNMP and the subsidiaries are located within
Robertson County, Texas, which is in the central part of Texas. The generating
facilities are referred to as 150 MW, circulating fluidized bed units currently
using lignite as the fuel source. TNMP owns two units. TNMP also has a
transmission line connecting these units to a major transmission grid in Texas.
Electricity from these units is sold by TNMP solely within Texas. Neither the
claimant nor any of its subsidiaries own transmission lines which deliver or
receive electricity at the border of Texas.
Within New Mexico, TNMP is a regulated public utility engaged in the
supply, transmission, distribution and sale of electric energy. A portion of
the Mountain Region serves southern New Mexico, as described above.
3. Certain information, for the calendar year 1997 with respect to claimant
and its subsidiaries, is provided in the following chart:
(a) MWH sold:
Retail 9,652,131
Wholesale 498,038
___________________
Total 10,150,169
===================
TNP Enterprises, Inc. and Texas-New Mexico Power Company are incorporated in
the State of Texas.
(b) MWH sold at retail in (a) above include 1,648,904 MWH sold in New Mexico.
(c) MWH sold at wholesale in (a) above were within Texas.
(d) MWH purchased:
Texas 6,734,548
New Mexico 1,709,442
___________________
Total 8,443,990
===================
<PAGE>
4. Neither the claimant nor any of its subsidiaries are directly or
indirectly involved with, or have an interest in either an Exempt Wholesale
Generator or a foreign utility company.
Exhibit A. A consolidating statement of operations of the claimant and its
subsidiaries for the last calendar year 1997, together with a consolidating
balance sheet and consolidating statements of retained earnings of claimant and
its subsidiaries as of the close of the 1997 calendar year, are presented.
Exhibit B. A Financial Data Schedule for the period ended December 31,
1997, including Item Nos. 1, 2, and 3.
The above named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 26th day of February, 1998.
Texas-New Mexico Power Company
By /s/ M. S. Cheema
_______________________
Corporate Seal M. S. Cheema
Attest: Sr. Vice President - Chief Financial
Officer
/s/ Paul W. Talbot
__________________
Paul W. Talbot
Secretary
The name, title and address of the officer to whom notices and correspondence
concerning this statement should be addressed is:
Paul W. Talbot Secretary
______________ _________
Name Title
P. O. Box 2943, Fort Worth, Texas 76113
________________________________________
Address
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING STATEMENTS OF INCOME (LOSS)
For the Year Ended December 31, 1997
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 580,693 $ 4,312 $ 5,625 $ (9,937) $ 580,693
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES:
Purchased power 261,043 261,043
Fuel 41,730 41,730
Other operating and maintenance 94,231 (9,937) 84,294
Depreciation of utility plant 28,914 4,312 5,625 38,851
Taxes other than income taxes 33,260 33,260
Income taxes 21,964 98 22,062
------------ ------------ ------------ ------------ ------------
Total Operating Expenses 481,142 4,410 5,625 (9,937) 481,240
------------ ------------ ------------ ------------ ------------
NET OPERATING INCOME (LOSS) 99,551 (98) - - 99,453
------------ ------------ ------------ ------------ ------------
OTHER INCOME (LOSS):
Other income and deductions, net 1,017 8 6 89 1,120
Income taxes 262 (3) (2) 257
------------ ------------ ------------ ------------ ------------
Other income (loss), net of taxes 1,279 5 4 89 1,377
------------ ------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE INTEREST
CHARGES 100,830 (93) 4 89 100,830
Interest charges 56,912 56,912
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) 43,918 (93) 4 89 43,918
Dividends on preferred stock 158 158
------------ ------------ ------------ ------------ ------------
INCOME (LOSS) APPLICABLE TO
COMMON STOCK $ 43,760 $ (93) $ 4 $ 89 $ 43,760
============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1996 $ 65,308 $ (54,682) $ (25,161) $ 79,843 $ 65,308
Net income (loss) 43,918 (93) 4 89 43,918
Dividends on preferred stock (158) (158)
Dividends on common stock (44,300) (44,300)
------------ ------------ ------------ ------------ ------------
BALANCE AT DECEMBER 31, 1997 $ 64,768 $ (54,775) $ (25,157) $ 79,932 $ 64,768
============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING BALANCE SHEET
December 31, 1997
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
--------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C> <C>
UTILITY PLANT $ 854,770 $ 170,000 $ 212,750 $ - $ 1,237,520
Less: accumulated depreciation 248,137 31,524 34,609 314,270
------------ ------------ ------------ ------------ ------------
Net Utility Plant 606,633 138,476 178,141 - 923,250
------------ ------------ ------------ ------------ ------------
INVESTMENT IN SUBSIDIARY COMPANIES (79,912) 79,912 -
TNP ONE REPLACEMENT NOTES 417,750 (417,750) -
OTHER PROPERTY AND INVESTMENTS,
at cost 214 214
CURRENT ASSETS:
Cash and cash equivalents 2,470 159 143 2,772
Customer accounts receivable 460 460
Other accounts receivable 111,355 35,147 142,904 (287,524) 1,882
Other current assets 6,852 6,852
Deferred purchased power and fuel
costs 2,570 2,570
------------ ------------ ------------ ------------ ------------
Total current assets 123,707 35,306 143,047 (287,524) 14,536
------------ ------------ ------------ ------------ ------------
DEFERRED CHARGES 29,006 29,006
------------ ------------ ------------ ------------ ------------
$ 1,097,398 $ 173,782 $ 321,188 $ (625,362) $ 967,006
============ ============ ============ ============ ============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholder's equity:
Common stock $ 107 $ 10 $ 10 $ (20) $ 107
Capital in excess of par value 222,146 222,146
Retained earnings 64,768 (54,775) (25,157) 79,932 64,768
------------ ------------ ------------ ------------ ------------
Total common shareholder's
equity 287,021 (54,765) (25,147) 79,912 287,021
Redeemable cumulative preferred
stock 3,240 3,240
Long-term debt, less current
maturities 477,900 205,000 212,750 (417,750) 477,900
------------ ------------ ------------ ------------ ------------
Total capitalization 768,161 150,235 187,603 (337,838) 768,161
------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES:
Current maturities of long-term debt 100 100
Accounts payable 115,431 50,599 146,353 (287,524) 24,859
Other current liabilities 121,448 (43,112) (30,865) 47,471
------------ ------------ ------------ ------------ ------------
Total current liabilities 236,979 7,487 115,488 (287,524) 72,430
------------ ------------ ------------ ------------ ------------
REGULATORY TAX LIABILITIES 7,139 (537) (284) 6,318
ACCUMULATED DEFERRED INCOME TAXES 46,107 16,597 18,381 81,085
ACCUMULATED DEFERRED ITC 21,286 21,286
DEFERRED CREDITS 17,726 17,726
------------ ------------ ------------ ------------ ------------
$ 1,097,398 $ 173,782 $ 321,188 $ (625,362) $ 967,006
============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit B
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
Financial Data Schedule
For the Period Ending December 31, 1997
(Amounts in Thousands)
<S> <C>
Item No. Caption Heading Amount
- ------------ ------------------------------ -------------------
1 Total Assets $ 967,006
2 Total Operating Revenues 580,693
3 Net Income (Loss) 43,918
</TABLE>
