UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) February 17, 2000
-----------------
February 10, 2000
-----------------
PUBLIC SERVICE COMPANY OF NEW MEXICO
------------------------------------
(Exact name of registrant as specified in its charter)
New Mexico Commission 85-00019030
--------------------------- File Number 1-6986 ----------------------
(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, former address and former fiscal year,
if changed since last report)
<PAGE>
Item 5. Other Event
Avistar Invests in Internet Energy Exchange
Energy services provider Avistar Inc., a wholly-owned subsidiary of Public
Service Company of New Mexico (the "Company") announced today that it has
acquired a significant stake in AMDAX.com, a business to business e-commerce
company in San Diego, California.
Under the terms of the agreement, Avistar is acquiring three million shares of
AMDAX convertible preferred stock ($.001 par value) at $1.00 per share,
representing approximately a 25 percent ownership interest in the company, and
warrants to purchase two million shares of AMDAX common stock. Total purchase
price is $3.0 million. Avistar representatives will have one seat on the
seven-member AMDAX Board of Directors. The Company will account for this
investment under the equity method. The investment does not meet the definition
of a significant acquisition as defined in the filing requirements of Form 8-K.
AMDAX has developed a proprietary, Internet-based auction platform, "PowerBid,"
which efficiently brings together electricity buyers and sellers in the newly
deregulated electric power market. Through PowerBid, multiple energy suppliers
actively compete for the energy contracts of commercial, industrial and
governmental customers, based upon the terms and conditions selected by the
customers. The proposed contracts, together with the customers' energy usage
profiles and credit ratings, are electronically posted on a secure web site.
Pre-qualified energy suppliers logon to the system to review the available
contracts and submit their bids.
In addition to managing the auction process, AMDAX will offer a range of
additional customer services, either directly or through strategic alliances
formed with some of the leading providers in the industry. These services will
include energy audits, billing, meter installations and solutions, meter reading
and demand side management. The company expects to begin conducting its first
auctions in March 2000.
In addition to its investment, Avistar will assist AMDAX in regulatory
proceedings in states now engaged in energy industry restructuring, and the two
companies will engage in joint marketing efforts.
Avistar operates an advanced meter servicing business in California and Nevada,
and offers energy and water management solutions for government and
institutional clients in the Southwest.
2
<PAGE>
For more information about AMDAX and a demonstration of the PowerBid system,
visit the company's web site at www.amdax.com. Information about Avistar's
advanced meter servicing business is available at www.phaser.com. Information
about PNM is available at www.pnm.com.
Disclosure Regarding Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 (the "Act") provides a
"safe harbor" for forward-looking statements to encourage companies to provide
prospective information about their companies without fear of litigation so long
as those statements are identified as forward-looking and are accompanied by
meaningful, cautionary statements identifying important factors that could cause
actual results to differ materially from those projected in the statement. Words
such as "estimates," "expects," "anticipates," "plans," "believes," "projects,"
and similar expressions identify forward-looking statements. Accordingly, the
Company hereby identifies the following important factors which could cause the
Company's actual financial results to differ materially from any such results
which might be projected, forecasted, estimated or budgeted by the Company in
forward-looking statements: (i) adverse actions of utility regulatory
commissions; (ii) utility industry restructuring; (iii) failure to recover
stranded costs; (iv) the inability of the Company to successfully compete
outside its traditional regulated market; (v) the success of the Company's
expansion strategies; (vi) regional economic conditions, which could affect
customer growth; (vii) adverse impacts resulting from environmental regulations;
(viii) loss of favorable fuel supply contracts; (ix) failure to obtain water
rights and rights-of-way; (x) operational and environmental problems at
generating stations; (xi) the cost of debt and equity capital; (xii) weather
conditions; and (xiii) technical developments in the utility industry.
3
<PAGE>
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 thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW MEXICO
-----------------------------------------
(Registrant)
Date: February 17, 2000 /s/ John R. Loyack
-----------------------------------------
John R. Loyack
Vice President, Corporate Controller
and Chief Accounting Officer
(Officer duly authorized to
sign this report)
4
