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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 13, 1996
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(March 12, 1996)
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PUBLIC SERVICE COMPANY OF NEW MEXICO
(Exact Name of Registrant as Specified in its Charter)
Commission
New Mexico File Number 1-6986 85-0019030
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation) Identification Number)
Alvarado Square, Albuquerque, New Mexico 87158
(Address of Principal Executive Offices) (Zip Code)
(505) 241-2700
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address if Changed, Since Last Report)
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ITEM 5. Other Event
Declaration of Cash Dividends on Common Stock
On March 12, 1996, the Company's Board of Directors ("Board"), at its regular
meeting, declared a cash dividend of 12 cents per common share payable on May
24, 1996, to stockholders of record as of May 1, 1996. Based on 1995 earnings
from ongoing operations, this dividend reflects a 35 percent payout ratio. The
Board has not declared cash dividends on common stock since 1989.
The Board set the dividend payout ratio below the industry average to allow for
dividend growth in the future and to sustain financial flexibility for the
Company to respond to potential opportunities in the evolving energy
marketplace. In establishing its new dividend policy, the Board weighed the
Company's current financial position and its future business plan, as well as
the regulatory and business climate in New Mexico.
Future dividend declaration will be reviewed for action by the Board and
coordinated with quarterly earnings announcements. The payment of future
dividends will depend on earnings, the financial condition of the Company,
market conditions and other factors.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Public Service Company of New Mexico
(Registrant)
Date: March 13, 1996 /s/ Donna M. Burnett
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Donna M. Burnett
Corporate Controller and
Chief Accounting Officer
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