Filed pursuant to Rule 424(b)(3)
                                                     Registration No. 333-100186

PROSPECTUS

                              PNM RESOURCES, INC.
                                PNM DIRECT PLAN
                                3,540,043 SHARES
                                  COMMON STOCK
                                 (NO PAR VALUE)

    This prospectus relates to up to an aggregate of 3,540,043 shares of common
stock, no par value, of PNM Resources, Inc. that may be offered in connection
with the Amended and Restated PNM Resources, Inc. PNM Direct Plan, or Plan. The
Plan becomes effective on March 7, 2003 and will amend and restate the PNM
Resources, Inc. PNM Direct Plan dated December 31, 2001, or the prior plan.

    The Plan provides investors with a convenient and economical way to purchase
shares of our common stock, and to reinvest cash dividends in additional shares
of our common stock. Below are some of the changes reflected in the amended
Plan:

    - The maximum investment has changed from $60,000 annually to a monthly
      maximum investment of $10,000.

    - Investments of cash and cash dividends in our common stock will normally
      be made within 5 business days of receipt.

    - If you hold less than 100 shares you will be automatically enrolled in the
      full dividend reinvestment portion of the Plan.

    - Effective March 7, 2003, interested new investors and participants may
      enroll or make changes to their individual plan options on-line through
      Investor ServiceDirect(R) at www.melloninvestor.com.

    - Employees of PNM Resources and its subsidiaries may continue to
      participate in the Plan via payroll deduction only until the
      implementation of the PNM Resources, Inc. Employee Stock Purchase Plan.

    - Under certain circumstances, PNM Resources may waive the maximum monthly
      investment limit of $10,000 in order to raise additional capital through
      the sale of newly issued shares under the Plan.

    - The Plan Administrator is now Mellon Bank, N.A.

    Unlike an individual stock brokerage account, the timing of purchases and
sales is subject to the provisions of the Plan. You should carefully read this
prospectus to find out more about the Plan. If you wish to continue your
participation in the Plan, you do not need to do anything at this time. If you
are currently a participant in the prior plan, and after reviewing this
prospectus, you do not wish to continue participation in the Plan, you should
contact the Plan Administrator. You may terminate your participation in the Plan
at any time.

    The Plan does not represent a change in the dividend policy of PNM
Resources. The payment of dividends is at the discretion of our board of
directors and will depend on future earnings, our financial condition and other
factors. Our board may change the amount and timing of dividends at any time and
without notice.

    The common stock of PNM Resources is traded on the New York Stock Exchange
under the ticker symbol PNM. The closing price of our common stock on February
18, 2003 was $19.77. Our principal executive offices are located at Alvarado
Square, Albuquerque, NM 87158. The telephone number is (505) 241-2700.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR HAS DETERMINED IF
THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

               The date of this prospectus is February 19, 2003.


                      WHERE YOU CAN FIND MORE INFORMATION

     PNM Resources files reports, proxy statements and other information with
the Securities and Exchange Commission, or SEC. These SEC filings are available
over the Internet at the SEC's web site at http://www.sec.gov. You may also read
and copy any document we file at the SEC's public reference room at 450 Fifth
Street N.W., Room 1024, Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for more information on the public reference rooms and their copy
charges. You may also inspect our SEC reports and other information at the New
York Stock Exchange, or NYSE, 20 Broad Street, New York, New York 10005.

     In connection with this offering, we have filed with the SEC a registration
statement on Form S-3 under the Securities Act of 1933, as amended ("Securities
Act"). As permitted by SEC rules, this prospectus omits certain information
included in the registration statement. For a more complete understanding of the
securities we may offer, you should refer to the registration statement,
including its exhibits.

     The SEC allows us to "incorporate by reference" into this prospectus the
information we file separately with it, which means we may disclose important
information by referring you to those other documents. The information we
incorporate by reference is considered to be part of this prospectus and
information we file later with the SEC will automatically update and supersede
such information. Any future filings made with the SEC under Section 13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), until the Plan is terminated will comprise the incorporated documents.
This prospectus incorporates by reference the documents set forth below that we
have filed previously with the SEC.

     SEC FILINGS (FILE NO.
333-32170)                                            PERIOD/DATE

     - Annual Report on Form
       10-K........................    Year ended December 31, 2001 and filed
                                       with the SEC on March 26, 2002

     - Current Reports on Form
       8-K.........................    Filed January 15, 2002, January 23, 2002,
                                       January 24, 2002, February 21, 2002,
                                       February 27, 2002, March 14, 2002, March
                                       19, 2002, April 5, 2002, April 9, 2002,
                                       April 19, 2002, April 24, 2002, May 10,
                                       2002, May 23, 2002, June 10, 2002 (two),
                                       June 18, 2002, July 10, 2002, July 12,
                                       2002, July 17, 2002, July 18, 2002, July
                                       23, 2002, July 24, 2002, August 14, 2002,
                                       August 19, 2002, August 23, 2002,
                                       September 13, 2002, September 18, 2002,
                                       September 26, 2002, September 27, 2002,
                                       October 4, 2002, October 11, 2002,
                                       October 15, 2002, October 22, 2002,
                                       October 30, 2002, November 14, 2002,
                                       December 10, 2002, December 11, 2002
                                       (two), December 19, 2002, January 3, 2003
                                       (two), and January 31, 2003

                                        2


     - Definitive Proxy Statement
       on Schedule 14A.............    Filed April 10, 2002, in connection with
                                       our 2002 annual meeting of shareholders

     - Quarterly Reports on Form
       10-Q........................    Quarter ended March 31, 2002 and filed
                                       with the SEC on May 15, 2002
                                       Quarter ended June 30, 2002 and filed
                                       with the SEC on August 14, 2002
                                       Quarter ended September 30, 2002 and
                                       filed with the SEC on November 12, 2002

     - Description of Capital
       Stock.......................    The description of PNM Resources' common
                                       stock, no par value, contained in PNM
                                       Resources' Current Report on Form 8-K
                                       filed December 31, 2001, and any
                                       amendment or reports filed for the
                                       purpose of updating such description

     You may request a copy of these filings at no cost by writing or
telephoning us at the following address:

                       PNM Resources, Inc., Investor Relations
                       Alvarado Square
                       Albuquerque, New Mexico 87158
                       Internet address: www.pnm.com
                       (505) 241-2477

                              PNM RESOURCES, INC.

     PNM Resources, Inc. is a holding company of energy and energy-related
companies incorporated in the State of New Mexico. We conduct all of our
operations through our subsidiaries.

     Our principal subsidiary is Public Service Company of New Mexico, or PNM. A
combined electric and gas utility, PNM generates, transmits and sells
electricity and provides natural gas distribution service to residential,
business and industrial customers in New Mexico. PNM also sells electric power
on the wholesale market in the Western U.S.

     We are exempt from registration as a public utility holding company
pursuant to Section 3(a)(1) of the Public Utility Holding Company Act of 1935.
Our executive office is located at Alvarado Square, Albuquerque, New Mexico
87158, and our telephone number is (505) 241-2700.

                                        3


                              SUMMARY OF THE PLAN

     The following summary of the Plan may omit certain information that may be
important to you. If you wish to receive a copy of the actual text of the Plan
as filed with the Securities and Exchange Commission, please contact: PNM
Resources, Inc., Investor Relations, Alvarado Square, Albuquerque, New Mexico
87158, telephone (505) 241-2477.

PURPOSE

     The purpose of the Plan is to provide new and existing shareholders with a
convenient and economical method of investing cash and cash dividends in shares
of our common stock. Since new shares of our common stock, or shares held in our
treasury, may be purchased directly from us, we may receive additional funds for
general corporate purposes.

     Nothing in this prospectus or other Plan information represents a
recommendation by PNM Resources or anyone else that any person buy or sell PNM
Resources common stock. We urge you to read this prospectus thoroughly before
you make your own independent decision regarding whether or not to invest in PNM
Resources common stock through this Plan.

     The value of shares of PNM Resources common stock may increase or decrease
from time to time. A Plan participant, like the owner of directly held shares,
bears all risk of loss that may result from market fluctuations in the price of
our common stock. Unlike an individual stock brokerage account, however, a Plan
participant does not have control or authority to direct the price or time at
which common stock held under the Plan for the Participant is purchased or sold.
We cannot guarantee that shares purchased under the Plan will, at any particular
time, be worth more than their purchase price. The Securities Investor
Protection Corporation, the Federal Deposit Insurance Corporation, or any other
entity does not insure Plan accounts.

PARTICIPATION -- HOW TO JOIN

FIRST TIME INVESTORS:

     After you have read this prospectus, you may complete the Enrollment Form
included, or you may enroll on-line through Investor ServiceDirect(R) at
www.melloninvestor.com. Click the "Stock Purchase Plans" button, at the "easy
search" screen select the ticker symbol button and enter PNM, then follow the
instructions for authorizing your initial investment and indicate whether you
want to participate in the full or partial dividend reinvestment portion of the
Plan.

                                        4


     If you purchase or currently own less than 100 shares, you will
automatically be enrolled in the dividend reinvestment portion of the Plan,
unless you request to receive cash dividends. All investments must be made in
U.S. dollars and drawn on a U.S. bank.

     You may make your initial investment by:

     1. authorizing an electronic debit of at least $50 but not more than
        $10,000 from your U.S. bank account. This alternative is available to
        on-line investors only; or

     2. mailing a check for at least $50 but not more than $10,000 drawn on a
        U.S. bank account to the Plan administrator along with your Enrollment
        Form.

     Follow the instructions on the on-line Enrollment Wizard to indicate your
selection and, if paying by check, print out the instruction sheet and submit
the sheet as indicated with your check, together with your Enrollment Form. You
can then make an election to have your dividends reinvested and/or make optional
cash investments as described more fully below.

     The Plan Administrator may confirm certain transactions affecting the
amount of shares in your Plan account and produce Plan statements in paper form
from time to time and will mail these to you at the address you give when you
enroll in the Plan.

CURRENT SHAREHOLDERS:

     Our shareholders whose common stock is registered with us are automatically
eligible to participate in the dividend reinvestment portion of the Plan, and
may make optional cash investments and sell shares through the Plan. If you are
a shareholder of record holding less than 100 shares, you will automatically be
enrolled in the full dividend reinvestment portion of the Plan and your
quarterly PNM Resources dividend will be applied to purchasing additional shares
of stock. If you own fewer than 100 shares but would prefer to have your
dividend paid to you in cash, you must contact the Plan Administrator and
request a cash payment. As a shareholder participating in the Plan with less
than 100 shares, you will have access to your account on-line through Investor
ServiceDirect(R) at www.melloninvestor.com and by telephone at 1-877-663-7775
and you will receive annual account statements, but you may no longer elect the
partial dividend reinvestment option.

     If you are a shareholder of record owning 100 shares or more you may elect
to reinvest all or part of your dividends pursuant to the Plan. As a shareholder
participating in the Plan with more than 100 shares, you will have access to
your account on-line through Investor ServiceDirect(R) at www.melloninvestor.com
and by telephone at 1-877-663-7775 and you will receive quarterly account
statements.

     Dividend payments not reinvested will be paid to you in the usual manner.

                                        5


FOR CURRENT SHAREHOLDERS AND NEW INVESTORS:

     You may sign up for automatic monthly investments, change your investment
amount or make additional investments at any time by accessing your account
on-line through Investor
ServiceDirect(R) at www.melloninvestor.com and using the account management
feature or by telephone at 1-877-663-7775.

     You may establish additional investment accounts for children or dependents
by following the instructions on the on-line Enrollment Wizard applicable to
custodial or trust accounts or by telephone at 1-877-663-7775.

HOW THE OPTIONAL CASH INVESTMENTS WORK

     In addition to having your dividend payments reinvested in our common
stock, you may buy additional shares by investing a minimum of $50 at any one
time not to exceed the maximum of $10,000 per month. You may submit your
optional cash investments by check, money order or by authorizing electronic
transfers. Do not send cash. You can make individual automatic deductions from
your bank account through Investor ServiceDirect(R) by accessing your account
on-line through the Plan Administrator's website www.melloninvestor.com. Upon
receipt of the funds, the Plan Administrator will normally invest initial and
optional cash investments at least once every five (5) business days.

     Optional cash investments of more than $10,000 per month by any current
participant and any initial cash investment by a new investor in excess of
$10,000 may only be made pursuant to a request for waiver that has been granted
by us as described in more detail on page 16 of this prospectus. Investors may
make a one-time initial or optional cash investment or invest regularly over a
period of time.

YOUR FUNDS WILL BE FULLY INVESTED

     Funds invested pursuant to the Plan are fully invested in whole and
fractional shares (computed to four decimal places) of our common stock either
through the purchase of shares directly from us or the purchase of shares in the
open market (or through a combination of these methods). We pay dividends on
both whole shares and fractions of shares.

SHARE SAFEKEEPING

     For your convenience, shares purchased through the Plan will be maintained
by the Plan Administrator in non-certificated (book-entry) form. Additionally,
the Plan offers a "safekeeping" service whereby you may deposit, free of any
service charges, certificates representing your shares of common stock and have
your ownership of such common stock maintained on the Plan Administrator's
records as part of your account. This feature protects against loss, theft or
destruction of stock certificates. A share certificate will be delivered to you
free of charge, upon request.
                                        6


YOU MAY SELL, WITHDRAW OR TRANSFER YOUR SHARES AT ANY TIME

     You may sell or withdraw shares of our common stock credited to your
account, including those shares deposited into the Plan for safekeeping, through
the Plan. Currently there is a $15.00 processing fee, plus a trading fee of
$0.06 per share, for sale transactions and liquidations. A statement will be
mailed to you for each month in which a transaction takes place. Additionally,
you may transfer or make gifts to others of our common stock by contacting the
Plan Administrator. There is no fee for this service.

PLAN ADMINISTRATOR

     Mellon Bank N.A. will administer the Plan and act as agent for the
participants. Mellon Bank N.A. has designated its affiliates, Mellon Investor
Services and FutureShare Financial LLC, and other agents to perform certain
services for the Plan.

     You may contact the Plan Administrator as directed below:


                                 
Call Mellon Investor Services       1-877-663-7775
On-line over the Internet at:       www.melloninvestor.com


     You may write the Plan Administrator at the following address:

              Mellon Investor Services
              P.O. Box 3338
              South Hackensack, NJ 07606-1938

     Please include your daytime telephone number, your social security or tax
I.D. number and a reference to PNM Resources, Inc. on all correspondence.

                                        7


                        TERMS AND CONDITIONS OF THE PLAN

AM I ELIGIBLE TO PARTICIPATE IN THE PLAN?

     You are eligible to participate in the Plan if you meet the requirements
outlined below.

     - IF YOU DO NOT CURRENTLY OWN OUR STOCK.  If you do not currently own any
       of our stock you may join the Plan, after receiving a copy of this
       prospectus, by making an initial investment of at least $50, but not more
       than $10,000. All U.S. citizens, U.S. residents and non-U.S. residents
       are eligible to participate in the Plan, whether they are current
       shareholders or not. In all cases, however, investments must be made in
       U.S. currency drawn on a U.S. bank. Prior to investing in our common
       stock, each participant is responsible for reviewing the applicable laws
       of his or her country of residence to determine if there are any
       restrictions on investment.

       You can get started in the Plan by enrolling on-line through Investor
       ServiceDirect(R) at www.melloninvestor.com (see Participation -- How to
       Join) or by returning a completed Enrollment Form to the Plan
       Administrator, along with your check or money order payable to PNM
       Direct. Do not send cash. The Plan Administrator will arrange for the
       purchase of shares for your account but will not pay interest on amounts
       held pending investment. Please allow two (2) weeks for your account to
       be established, initial shares to be purchased and a statement to be
       mailed to you.

     - IF YOU CURRENTLY OWN OUR STOCK.  If you already own less than 100 shares
       of our stock and the shares are registered in your name, you are
       automatically enrolled in the full dividend reinvestment portion of the
       Plan. If you already own 100 shares or more of our stock and the shares
       are registered in your name, you may join the dividend reinvestment
       portion and/or the optional purchase portion of the Plan by enrolling
       on-line (see Participation -- How to Join) or by returning a completed
       Enrollment Form to the Plan Administrator.

       If your shares are held in a brokerage, bank or other intermediary
       account, and you wish to participate directly in the Plan, you should
       instruct your broker, bank or trustee to register some or all of your
       shares of our common stock directly in your name.

     - IF YOU ARE ALREADY ENROLLED.  If you are currently enrolled in the prior
       plan, which is superseded by the Plan, and do not want to change your
       participation, no further action is required for your continued
       participation. However, if you wish to change your participation in any
       way (e.g., from partial to full reinvestment), you must submit a new
       Enrollment Form or access the account management feature on-line through
       Investor ServiceDirect(R) at www.melloninvestor.com or by telephone at
       1-877-663-7775. If you own less than 100 shares of our stock, you will no
       longer be able to elect partial reinvestment of cash dividends.

                                        8


WHAT ARE MY INVESTMENT OPTIONS?

     Once enrolled in the Plan, you may purchase additional shares of common
stock through reinvestment of your dividends and/or by cash investments as
described below:

     - DIVIDEND REINVESTMENT.  If you are a shareholder of record and you own
       less than 100 shares, you will automatically be enrolled in the Plan and
       will have your dividends reinvested in additional shares (unless you
       contact the Plan Administrator as directed on page 7 of this prospectus
       to request cash dividends). In addition, you will receive an annual
       statement and will have electronic access to your account on-line through
       Investor ServiceDirect(R) at www.melloninvestor.com or by telephone at
       1-877-663-7775. If you are a shareholder of record owning 100 shares or
       more, you may choose to reinvest all or a portion of the regular cash
       dividends paid on your shares held in the Plan toward the purchase of
       additional shares of our common stock. In addition, you will receive a
       quarterly account statement and have electronic access to your account
       on-line through Investor ServiceDirect(R) at www.melloninvestor.com or by
       telephone at 1-877-663-7775.

       You may change your dividend reinvestment election at any time by
       notifying the Plan Administrator. For a particular dividend to be
       reinvested, your notification must be received before the record date for
       that dividend. (The record date is approximately 14 days before the
       dividend payment date.)

       You may, of course, choose not to reinvest any of your dividends, in
       which case the Plan Administrator will remit any dividends to you by
       check or automatic deposit to a bank account you designate.

       If you elect to reinvest your dividends, you must choose one of the
       following:

       - FULL DIVIDEND REINVESTMENT.  This means you will purchase additional
         shares through the Plan by investing all your cash dividends.

       - PARTIAL DIVIDEND REINVESTMENT.  If you own 100 shares or more and
         choose to reinvest less than all your dividends, you may receive a cash
         dividend payment based on the number of full shares you specify and
         reinvest the dividends on all remaining shares. This allows you to
         receive a fixed amount of cash each quarter (assuming the dividend
         stays the same).

     - OPTIONAL CASH INVESTMENTS.  You may purchase additional shares of our
       common stock by using the Plan's optional cash investment feature. You
       must invest at least $50 at any one time but not more than $10,000 per
       month. Upon receipt of your funds, the Plan Administrator will invest
       initial and additional cash investments as promptly as practicable,
       normally at least once every 5 business days.

                                        9


       Shares will be posted to your account in whole and fractional shares
       immediately upon settlement, usually within 3 business days. You will
       receive a confirmation of your transaction by paper statement at the
       postal address you give us when you enroll in the plan.

       In the unlikely event that, due to unusual market conditions, the Plan
       Administrator is unable to invest your funds within 35 days, the Plan
       Administrator will return the funds to you by check. No interest will be
       paid on funds held by the Plan Administrator pending investment.

       For automatic monthly purchases, the amounts you have authorized will be
       withdrawn from your banking account on the 24th day of each month, or the
       next succeeding business day if the 24th falls on a weekend or holiday.
       The funds will be credited to your account and invested within 5 business
       days of receipt by the Plan Administrator.

       The Plan Administrator will use your investment to purchase as many full
       and fractional shares as possible. Fractional share amounts will be
       computed to four decimal places.

       You may make optional cash investments by sending a check or money order
       (not cash) to the Plan Administrator payable to PNM Direct, or by
       authorizing individual electronic transfers from your bank account by
       accessing your account on-line through Investor ServiceDirect(R) at
       www.melloninvestor.com. To facilitate processing of your investment when
       you send a check or money order, please use the transaction stub attached
       to your Plan statement. Mail your investment and transaction stub to the
       address specified on the statement. A $35 fee will be assessed for a
       check or electronic debit that is returned for insufficient funds. Please
       see the fee schedule attached as Appendix A.

HOW ARE MY SHARES TYPICALLY PURCHASED AND HOW IS THE PURCHASE PRICE FOR THE
SHARES DETERMINED?

     Shares of our common stock purchased under the Plan will, at our election,
be newly issued shares purchased directly from us, treasury shares purchased
directly from us, shares purchased by a broker, or a combination thereof. If
shares are purchased under the Plan directly from us and by the Plan
Administrator through its broker, each participant's Plan account will be
credited with its pro rata portion of the number of shares purchased directly
from us and by the broker. We have full discretion as to whether the common
stock purchased under the Plan will be purchased on the open market or purchased
directly from us, based on our need for capital.

     - COMMON STOCK PURCHASED IN THE OPEN MARKET.  The investment price of our
       common stock purchased in the open market with reinvested dividends, with
       initial cash investments or with optional cash investments will be the
       weighted average price, including applicable brokerage trading fees,
       incurred in connection with the purchase of such shares for the relevant
       investment date. No interest will be paid on funds held by the Plan
       Administrator pending

                                        10


       investment. The Plan Administrator will normally invest cash dividends
       within 5 business days of the dividend payment date and will normally
       invest initial and optional cash investments at least once every 5
       business days. The brokerage trading fee is currently 6 cents per share.
       We will pay this fee for shares purchased with reinvested dividends and
       so the weighed average price for such shares will not include this
       trading fee. See Appendix A.

     - COMMON STOCK PURCHASED DIRECTLY FROM US.  The price of our common stock
       purchased directly from us with reinvested dividends, initial cash
       investments or optional cash investments will be the average of the high
       and low sale prices of shares of our common stock reported on the NYSE on
       the dividend payment date, initial cash investment date or optional cash
       investment date, as the case may be. No interest will be paid on funds
       held by the Plan Administrator pending investment. The Plan Administrator
       will normally invest initial and optional cash investments at least once
       every 5 business days.

     The "weighted average price" used to calculate the investment price of open
market purchases assumes the use of multiple open market purchases to invest
plan participant investments. For example, if plan investments required the
acquisition of 5,000 shares for allocation to 100 investors and the plan needed
the following three separate purchases in the open market to acquire the 5,000
shares, the weighted average would be calculated as follows:

                       1,000 shares @ $21.00  = $21,000
                       3,000 shares @ $21.25  = $63,750
                       1,000 shares @ $21.125 = $21,125
                                       $105,875/5,000 = $21.175

     The same computational method, however, is not used for shares purchased
directly from us because shares purchased in the open market are based upon
specific open market transactions that need to be allocated to participants at
actual cost. Newly issued shares issued by the Company are not based on specific
transactions that need to be allocated but are based on the market, for that
day, which is best represented by an average of the low and the high prices of
the common stock for the entire day.

     Thus, for shares purchased directly from the Company, the issuance price of
those shares will be based on the average of the high and low prices of stock
trades during the day. If, for example, there were only three trades on a day,
at prices indicated in the previous example for market purchases, the average of
the high and low prices would be $21.125 per share ((21.00+21.25)/2).

     Your account will be credited with that number of shares, including
fractional shares computed to four decimal places, equal to the amount invested
with respect to your Plan account, divided by the price per share of such shares
for all purchases for all Plan participants during the applicable period.

                                        11


YOU DO NOT HAVE CONTROL OR AUTHORITY TO DIRECT THE PRICE OR TIME AT WHICH COMMON
STOCK IS PURCHASED OR SOLD FOR PLAN ACCOUNTS. THEREFORE, YOU BEAR MARKET RISK
ASSOCIATED WITH FLUCTUATIONS IN THE PRICE OF COMMON STOCK AS THE PRICE OF COMMON
STOCK MAY GO UP OR DOWN BEFORE A PURCHASE OR SALE IS MADE FOR YOUR ACCOUNT.

     Unless you request one, certificates for shares of common stock purchased
under the Plan will not be issued. The number of shares purchased for your
account under the Plan will be shown on your statement of account in book-entry
form.

     Certificates for any number of whole shares credited to your account under
the Plan will be issued upon your request. Any remaining full shares and
fractions of a share will continue to be credited to your account. Certificates
for fractions of shares will not be issued.

HOW DO I SELL MY SHARES OUT OF THE PLAN?

     You may sell any number of shares held in book-entry form by notifying the
Plan Administrator by phone at 1-877-663-7775, by accessing your account on-line
through Investor ServiceDirect(R) at www.melloninvestor.com, or in writing. Your
sale request will be processed and your shares will, subject to market
conditions and other factors, generally be sold by the close of the trading day
for requests received by the Plan Administrator by 1:00 p.m. eastern time. The
sale price will be the weighted average price of all shares sold for Plan
participants during the period. Please note that the Plan Administrator cannot
and does not guarantee the actual sale date or price, nor can it stop or cancel
any outstanding sales or issuance requests. All requests are final. The Plan
Administrator will mail a check to you (less applicable sales fees) on the
settlement date, which is 3 business days after your shares have been sold.
Please allow an additional 5 to 7 business days from the settlement date for the
post office to deliver your check.

     Currently, there is a $15.00 processing fee, plus a trading fee of $0.06
per share, for sale transactions and liquidations.

     Alternatively, you may choose to sell your shares through a stockbroker of
your choice, in which case you would have to request a certificate for your
shares from the Plan Administrator prior to such sale.

WHAT IS SAFEKEEPING?

     Shares of our common stock that you buy under the Plan will be maintained
in your Plan account for safekeeping. You will receive a periodic Plan statement
detailing the status of your holdings. Safekeeping protects your shares against
loss, theft or accidental destruction. Safekeeping also provides a convenient
way for you to keep track of your shares. Only shares held in safekeeping may be
sold through the Plan.

                                        12


     If you own additional shares of our common stock in certificated form, you
may deposit your certificates into your Plan account, free of charge. To use
this service, send your certificates to Mellon Investor Services by registered
mail with written instructions to deposit them into your Plan account for
safekeeping. The Plan Administrator will provide loss insurance coverage for
your certificates with a value not exceeding $100,000 in any one shipping
package that is mailed to its address at 85 Challenger Road, Ridgefield Park,
New Jersey 07660 by USPS registered mail or by any of the following overnight
couriers: Airborne, DHL, Emery, ExpressMail, FedEx, Purolator, TNT and UPS. Do
not endorse the certificates or complete the assignment section.

Note:  Mail loss insurance covers only the replacement of shares of stock and in
no way protects against any loss resulting from fluctuations in the value of
such shares.

MAY I GIFT MY SHARES OUT OF THE PLAN?

     You may gift or transfer your shares to any recipient you choose by:

     - making an initial $50 cash investment to establish an account in the
       recipient's name or

     - transferring shares from your account to the recipient.

     You must transfer a whole number of shares unless you transfer your entire
account. You may transfer shares to new or existing shareholders. The Plan
Administrator will automatically place such new accounts in full dividend
reinvestment status. New participants, at their discretion, may elect another
option. If you participate in the dividend reinvestment portion of the Plan and
your request to either transfer all your shares or make a partial sale and
transfer the balance of your shares is received between the ex-dividend date
(the day after the last day during the quarter on which stock can be transferred
with the new owner receiving that quarter's dividend payout), and the dividend
record date, the processing of your request may be held until after your account
is credited with reinvested dividends.

     You must have your signature guaranteed by a financial institution
participating in the Medallion Guarantee program. The Medallion Guarantee
program ensures that the individual signing the certificate or transfer
instructions is in fact the registered owner as the name appears on the stock
certificate or stock power.

     If you need additional assistance, please contact the Plan Administrator.

HOW DO I GET MY STOCK CERTIFICATES?

     You may withdraw all or some of the shares from your Plan account by
notifying the Plan Administrator. Certificates will be issued for whole shares
only. If your request involves a fractional share, a check (less any applicable
fees) for the value of the fractional share will be mailed to you.

                                        13


     Certificates will be issued in the name(s) in which the account is
registered, unless otherwise instructed. If the certificate is issued in a name
other than that on your Plan account registration form, the signature on the
instructions or stock power must be guaranteed by a financial institution
participating in the Medallion Guarantee program, as described above.

WHAT ARE THE FEES RELATING TO PARTICIPATION IN THE PLAN?

     The current fees are described in Appendix A. The Plan Administrator will
deduct the applicable fees from the investment amount or proceeds from a sale.

HOW IS MY INVESTMENT TRACKED?

     If you participate in the dividend reinvestment portion of the Plan and you
hold more than 100 shares, the Plan Administrator will mail you a quarterly Plan
statement showing all transactions (shares, amounts invested, purchase prices)
for your account, including year-to-date and other account information. If you
own less than 100 shares, you will receive an annual statement.

     Supplemental statements or notices will be sent when you make an initial or
optional cash investment or a deposit, transfer or withdrawal of shares.

     Please retain your Plan statements to establish the cost basis of shares
purchased under the Plan for income tax and other purposes.

     You should notify the Plan Administrator promptly of any change in address
since all notices, statements and reports will be mailed to your address of
record.

HOW DO I TERMINATE PARTICIPATION IN THE DIVIDEND REINVESTMENT PORTION OF THE
PLAN?

     You may discontinue the reinvestment of your dividends at any time by
giving notice to the Plan Administrator. The Plan Administrator must receive
such notice before the close of business on the record date for any dividend
payment in order to terminate your dividend reinvestment participation prior to
such dividend payment date. The Plan Administrator will continue to hold your
shares unless you request a certificate for any full shares and a check for any
fractional share. You may also request the sale of all or part of any such
shares or have the Plan Administrator electronically transfer your shares to
your brokerage account.

     After you terminate your participation in the dividend reinvestment portion
of the Plan, you may rejoin at any time by re-enrolling with the Plan
Administrator. However, the Plan Administrator has the right to reject such
enrollment if you repeatedly join and withdraw from the Plan, or for any other
reason. The Plan Administrator's exercise of such right is intended to minimize
unnecessary administrative expenses and to encourage use of the Plan as a
long-term shareholder investment service.

                                        14


WHAT ARE THE MATERIAL FEDERAL INCOME TAX CONSEQUENCES OF MY PARTICIPATION IN THE
PLAN?

     Your reinvested dividends will be treated for federal income tax purposes
in the same manner they would have been treated had you received such dividends
in cash on the applicable dividend payment date. Your tax basis in the shares
purchased will be equal to the amount of the cash dividends and optional cash
investments applied to the purchases of such shares. Your holding period for the
shares acquired pursuant to the Plan will begin on the day after the date the
shares are purchased. You may recognize gain or loss when your shares (including
fractional shares) are sold or otherwise disposed of in a taxable exchange,
whether by the Administrator on your behalf or by you upon withdrawal of your
shares from the Plan. The amount of such gain or loss will be the difference
between the amount you receive for the shares and your tax basis in such shares.
YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISER TO DETERMINE THE PARTICULAR TAX
CONSEQUENCES THAT MAY RESULT FROM YOUR PARTICIPATION IN THE PLAN AND THE
SUBSEQUENT SALE OR OTHER DISPOSITION OF SHARES ACQUIRED UNDER THE PLAN,
INCLUDING THE EFFECT OF ANY APPLICABLE STATE, LOCAL AND FOREIGN TAX LAWS.

                                OTHER PROVISIONS

HOW DO I VIEW THE STATUS OF MY ACCOUNT?

     You can view the status of your account at any time by logging onto
Investor ServiceDirect(R) at www.melloninvestor.com or by telephoning
1-877-663-7775 and entering your Social Security Number and the PIN number that
you establish the first time you access your account.

HOW DO I CHANGE OR STOP THE AUTOMATIC INVESTMENT FEATURE?

     Simply access your account through Investor ServiceDirect(R) on
www.melloninvestor.com or by telephoning 1-877-663-7775, choose the
"Purchase/Sell" menu and indicate your change in the "Periodic Purchase"
selection. Your request must be received at least three business days before the
24th day of the month.

PLAN MODIFICATION OR TERMINATION

     We reserve the right to suspend, modify or terminate the Plan at any time.
You will receive notice of any such suspension, modification or termination. We,
together with the Plan Administrator, also reserve the right to change any
administrative procedures of the Plan.

SUSPENSION OR TERMINATION

     We reserve the right to deny, suspend or terminate participation by a
shareholder who is using the Plan for purposes inconsistent with the intended
purpose of the Plan. In such event, the Plan

                                        15


Administrator will notify you in writing and will continue to keep your shares
safe but will no longer accept optional cash investments or reinvest your
dividends. The Plan Administrator will issue a certificate to you upon request.

LIMITATION OF LIABILITY

     The Plan provides that neither we nor the Plan Administrator in
administering the Plan nor any independent agent will be liable for any act done
in good faith or for the good faith omission to act in connection with the Plan.
This includes, without limitation, any claims of liability:

     - for failure to terminate your account upon your death or adjudicated
       incompetence prior to receiving written notice of such death or
       adjudicated incompetence; or

     - relating to purchase or sale prices reflected in your Plan account or the
       dates of purchases or sales of your Plan shares; or

     - for any loss or fluctuation in the market value after purchase or sale of
       such shares. The foregoing does not represent a waiver of any rights you
       may have under applicable securities laws.

HOW DO I MAKE AN INITIAL OR OPTIONAL CASH INVESTMENT OVER THE MAXIMUM MONTHLY
AMOUNT?

     If you wish to make an initial or optional cash investment in excess of
$10,000 per month and be eligible for a potential discount from the market
price, you must obtain our prior written approval. To obtain our approval, you
must submit a request for waiver. To make this request, you should obtain a
"Request For Waiver" form by contacting Mellon's Waiver Department at
1-917-320-6300. Completed Request For Waiver forms should be sent to Mellon's
Waiver Department via facsimile at 1-917-320-6312 no later than 3 business days
prior to the pricing period start date set forth in Appendix B for the
applicable pricing period.

     If we approve your request, Mellon will notify you via return facsimile.
You must then send the authorized amount to the Plan Administrator in the form
of a certified check, money order or electronic funds transfer drawn on a U.S.
bank. The Plan Administrator must receive your investment no later than the
close of business on the last day before the applicable pricing period start
date. These dates are listed in Appendix B of this prospectus. Any funds
received by the Plan Administrator after the applicable date will be returned to
the investor.

     We also may make the foregoing information available on the
Investing-Shareholder Services segment of our website at www.pnm.com or on
another website we or Mellon may establish for this purpose from time to time.

     We have the sole discretion whether to approve any request to make an
initial or optional cash investment in excess of the $10,000 monthly maximum. We
may grant those requests for waiver in order of receipt or by any other method
that we determine to be appropriate. We also may determine

                                        16


the amount that you may invest pursuant to a waiver. In deciding whether to
approve your request for waiver, we may consider the following material factors:

     - whether, at the time of your request, the Plan Administrator is acquiring
       shares of common stock for the Plan directly from us or in the open
       market or in privately negotiated transactions with third parties;

     - whether we need cash to fund a specific project at the current time, at
       some time in the foreseeable future, or whether funds can be used for a
       general operational purpose;

     - if we decide that there is a need for additional funds, then we would
       consider whether this Plan was the most beneficial means of raising
       additional cash compared to an underwritten offering or the issuance of
       new debt or the use of current debt;

     - whether the potential issue price is above or below book value, the
       general stock market trends at the time of consideration, the general
       utility trends regarding stock prices at the time of consideration, and
       our recent stock price trend;

     - whether you have participated in the Plan in the past, your current level
       of participation and whether you are known as a short seller of stock;

     - whether granting the waiver request will facilitate obtaining new,
       diversified and long-term investment in PNM Resources through the Plan;
       and

     - whether the total amount of waiver requests exceeds our cash-raising goal
       and if so we may adjust potential investments down if the requests are
       greater than required to meet our goal.

     We will probably not grant waiver requests when the Plan Administrator is
acquiring shares in the open market or through privately negotiated
transactions. In addition, if, at the time of your request, we do not need
additional funds, determine that issuing new shares is not the most beneficial
means of obtaining additional funds, or determine that the purchase price is
below book value, then we may not grant your waiver request.

     If you do not receive a response from us within 3 business days of
submitting your waiver request, you should assume that we have denied your
request.

     If requests for a waiver are submitted for any pricing period for an
aggregate amount in excess of the amount we are then willing to accept, we may
honor these requests in order of receipt, or by any other method that we
determine, in our sole discretion, to be appropriate. In making this
determination we may consider the make-up of our shareholder base and existing
ownership levels. Currently, our stock is held by approximately 81%
institutional investors and 19% retail investors. Our top ten shareholders own
almost 40% of the outstanding shares. Our goal is to increase diversity of our
shareholder base by lowering the percentage ownership of our top ten
shareholders and by increasing the number of both institutional and retail
shareholders. We believe that increasing the

                                        17


diversity of our shareholder base reduces the risk of a single shareholder or a
small number of shareholders creating significant movements in our stock price.
A lack of shareholder diversity may increase volatility and could negatively
impact shareholder value.

     We reserve the right to modify, suspend or terminate participation in the
Plan by otherwise eligible registered holders or beneficial owners of our common
stock for any reason whatsoever including eliminating practices that are
inconsistent with the purposes of the Plan, which are to provide a convenient
and economical method of investing in our stock and to encourage long-term
investment. If it becomes apparent that an individual is buying and immediately
selling our common stock to take advantage of the discount provision, we will
take action to prevent that type of activity, e.g., by not granting any future
waiver requests for that person.

ONCE A WAIVER REQUEST FOR A CASH INVESTMENT OVER $10,000 HAS BEEN GRANTED, HOW
ARE SHARES PRICED AND PURCHASED?

     Shares purchased pursuant to a granted waiver request will be purchased
directly from us. Initial and optional cash investments made pursuant to a
request for waiver will be applied to the purchase of shares of common stock as
soon as practicable on or after the "waiver investment date" set forth in
Appendix B. Initial and optional cash investments made pursuant to a request for
waiver will be acquired at a price equal to the average of the daily high and
low sales prices computed up to 4 decimal places, if necessary, of our common
stock as reported on the New York Stock Exchange for the 10 trading days
immediately preceding the applicable waiver investment date. A "trading day" is
any day on which our stock is reported as bought or sold over the NYSE. The last
10 trading days before each of the waiver investment dates listed in Appendix B
are in the "pricing period" for that investment date. All funds properly
received by the Plan Administrator up to the close of business on the last
business day before the pricing period begins will be invested by the Plan
Administrator in shares of PNM Resources common stock as soon as practicable on
or after the waiver investment date.

                                        18


   Example of Timing of Optional Cash Investment Over Maximum Monthly Amount
                Assuming Waiver Investment Date of April 2, 2003




----------------------------------------------------------------------------------------------------
                                                                       
  Filing a Request     Funds must be       Pricing Period*     Waiver Investment   Investment by
  for Waiver           Received by                             Date                Administrator
----------------------------------------------------------------------------------------------------
  No later than March  March 18, 2003      March 19 to April        APRIL 2        As soon as
  14, 2003                                 1, 2003*                                practicable after
                                                                                   April 2, 2003
----------------------------------------------------------------------------------------------------


* The purchase price will be the average of the daily high and low sales price
  for the 10 trading days during the pricing period (assuming that we do not set
  a threshold price for the pricing period or offer a discount from the purchase
  price as discussed further below).

     For purposes of determining the price per share for investments made
pursuant to a request for waiver, we may set a minimum purchase price per share
or threshold price, for any pricing period. This threshold price is a minimum
price that would be used under an alternative method for setting the per share
purchase price that is described in the next paragraph. We will determine
whether to set a threshold price, and, if so, its amount, at least 3 business
days before the first day of the pricing period. We will notify the Plan
Administrator of the threshold price, if any. In deciding whether to set a
threshold price, we will consider one, all or a combination of the following
factors:

     - the general trend of the stock market as a whole, the general trend of
       the utility sector of the stock market, and the general trend of our
       stock.

     - whether any previous offerings under the waiver provisions of the Plan
       been over or under subscribed.

     - do we have an immediate need for the cash, do we foresee an upcoming
       transaction that will require new cash and are there external events
       affecting the decision.

Participants may ascertain whether a threshold price has been set or waived for
any given pricing period by calling Mellon's Waiver Department at 1-917-320-6300
or such other number as we may establish from time to time.

     We will fix the threshold price for a pricing period as a dollar amount
that the average of the high and low sales prices as reported by the NYSE for
each trading day of that pricing period (not adjusted for discounts, if any)
must equal or exceed. We will exclude from the pricing period and from the
determination of the purchase price any trading day within the pricing period
that does not meet the threshold price. Thus, for example, if the threshold
price is not met for 2 of the 10 trading days in a pricing period, then we will
base the purchase price upon the remaining 8 trading days in which the threshold
price was met.

                                        19


     In addition, we will return a pro rata portion of each cash investment made
pursuant to an approved request for waiver for each trading day of a pricing
period for which the threshold price is not met as soon as reasonably practical
after the pricing period, without interest. The returned amount will equal
one-tenth (1/10th) of the total amount of that cash investment (not just the
amount exceeding $10,000) for each trading day that the threshold price is not
met. Thus, for example, if the threshold price is not met for two (2) of the ten
(10) trading days in a pricing period, then we will return two-tenths (2/10th or
20%) of the initial or optional cash investment to you without interest after
conclusion of the pricing period. This does not constitute a discount to the
purchase price; however, it does reduce the total number of shares that you may
purchase with respect to an investment date.

     The establishment of the threshold price and the possible return of a
portion of the payment applies only to initial or optional cash investments
exceeding $10,000 per month made pursuant to a granted request for waiver.
Setting a threshold price for a pricing period will not affect the setting of a
threshold price for any other pricing period. We may waive our right to set a
threshold price for any particular pricing period. Neither we nor the Plan
Administrator are required to give you notice of the threshold price for any
pricing period. We may alter or amend at our sole discretion these pricing
periods at any time and from time to time, prior to the commencement of any
pricing period and prior to the granting of any waiver with respect to such
period.

     At our sole discretion, we may offer participants making a cash investment
in excess of $10,000 a discount of up to 3% from the regular purchase price on
any particular investment date. The maximum discount rate, if any, on initial or
optional cash investments in excess of $10,000 per month may be obtained at
least 3 business days before the first day of the applicable pricing period, as
provided on Appendix B to this prospectus, by calling Mellon's Waiver Department
at 1-917-320-6300.

     Setting a discount from the purchase price for initial and optional cash
investments in excess of $10,000 per month for a particular pricing period will
not affect the setting of a discount for any other pricing period. We may
increase, decrease, or waive our right to set a discount from the purchase price
for any particular pricing period. Neither we nor the Plan Administrator is
required to give you notice of the discount for any pricing period. When setting
the discount, if any, we will consider our capital needs, whether we want to
issue equity to meet our capital needs and how quickly we desire to close the
investment. For example, to the extent we desire to issue equity in a particular
pricing period to meet our capital needs, we are more likely to establish a
discount to encourage participants to make cash investments.

                                USE OF PROCEEDS

     We expect to use the net proceeds received from the issuance and sale of
common stock offered hereby for general corporate purposes, including capital
expenditures.

                                        20


                              PLAN OF DISTRIBUTION

     Subject to the discussion below, we will distribute newly issued shares of
our common stock sold under the Plan. FutureShare, a registered broker/dealer,
will assist in the identification of investors and other related services, but
will not be acting as an underwriter with respect to shares of our common stock
sold under the Plan. There are no brokerage commissions or service charges
allocated to participants in the Plan in connection with their purchases of such
newly issued shares of common stock.

     In connection with the administration of the Plan, we may be requested to
approve investments made pursuant to waiver requests by or on behalf of
participants or other investors who may be engaged in the securities business.

     Persons who acquire shares of our common stock through the Plan and resell
them shortly after acquiring them, including coverage of short positions, under
certain circumstances, may be participating in a distribution of securities that
would require compliance with Regulation M under the Exchange Act, and may be
considered to be underwriters within the meaning of the Securities Act. We will
not extend to any such person any rights or privileges other than those to which
it would be entitled as a participant, nor will we enter into any agreement with
any such person regarding the resale or distribution by any such person of the
shares of our common stock so purchased. We may, however, accept investments
made pursuant to Requests for Waiver by such persons.

     From time to time, financial intermediaries, including brokers and dealers,
and other persons may engage in positioning transactions in order to benefit
from any waiver discounts applicable to investments made pursuant to waiver
requests under the Plan. Those transactions may cause fluctuations in the
trading volume of our common stock. Financial intermediaries and such other
persons who engage in positioning transactions may be deemed to be underwriters.
We have no arrangements or understandings, formal or informal, with any person
relating to the sale of shares of our common stock to be received under the
Plan. We reserve the right to modify, suspend or terminate participation in the
Plan by otherwise eligible persons to eliminate practices that are inconsistent
with the purpose of the Plan.

     We will pay any and all brokerage commissions and related expenses incurred
in connection with purchases of our common stock under the Plan, except that a
trading fee (currently $.06 per share) is included in the share price for open
market purchases. Upon withdrawal by a participant from the Plan by the sale of
shares of our common stock held under the Plan, the participant will receive the
proceeds of that sale less a transaction and trading fee and any required tax
withholdings or transfer taxes.

     You will not incur fees, commissions or expenses in connection with
purchases made under the Plan, other than the current trading fee included in
the open market share price of $.06 per share.

                                        21


This trading fee will not be charged to you for shares purchased with reinvested
dividends. If you direct the Plan Administrator to sell shares of common stock
credited to your account, however, the Administrator will deduct from the sales
proceeds; (1) any applicable service fee (currently $15.00 per sale transaction)
plus (2) the applicable trading fee (currently $.06 per share). The current fees
are set forth in Appendix A.

                          TRANSFER AGENT AND REGISTRAR

     Our Transfer Agent and Registrar is Mellon Investor Services, 85 Challenger
Road, Ridgefield Park, New Jersey 07660.

                                    EXPERTS

     The consolidated financial statements and financial schedules incorporated
by reference in this prospectus and elsewhere in this registration statement of
which this prospectus is a part by reference to PNM Resources and PNM's Annual
Report on Form 10-K for the year ended December 31, 2001 have been so
incorporated in reliance in the report of Arthur Andersen LLP, independent
public accountants, given on the authority of said firm as experts in accounting
and auditing.

     There may be risks and your recovery may be limited as a result of our
prior use of Arthur Andersen LLP as our independent public accounting firm. On
March 31, 2002, Arthur Andersen LLP, our independent public accounting firm for
the years ended December 31, 1993 through 2001, was indicted on federal
obstruction of justice charges arising from the U.S. government's investigation
of Enron. On June 7, 2002, we dismissed Arthur Andersen LLP as our independent
public accountants and hired Deloitte & Touche LLP as our independent auditors
for the year ending December 31, 2002. Because our former audit partner has left
Arthur Andersen LLP, after reasonable efforts, we have not been able to obtain
the written consent of Arthur Andersen LLP to the incorporation into this
registration statement of their report with respect to the consolidated
financial statements which appeared in our Annual Report on Form 10-K for the
year ended December 31, 2001. Under these circumstances, Rule 437a under the
Securities Act permits us to dispense with the requirements under Section 7 of
the Securities Act to file such consent with this registration statement. The
absence of such consent may limit recovery by investors on certain claims. In
particular, and without limitation, investors will not be able to recover
against Arthur Andersen LLP under Section 11(a)(4) of the Securities Act for any
untrue statement of material fact contained in our consolidated financial
statements for the year ended December 31, 2001 or any omissions to state a
material fact required to be stated therein. In addition, the ability of Arthur
Andersen LLP to satisfy any claims (including claims arising from Arthur
Andersen LLP's provision of auditing and other services to us) may be limited as
a practical matter due to recent events involving Arthur Andersen LLP.

                                        22


     With respect to the unaudited interim financial information for the three
and six-month periods ended June 30, 2002 and the three and nine-month periods
ended September 30, 2002 which are incorporated herein by reference, Deloitte &
Touche LLP has applied limited procedures in accordance with professional
standards for a review of such information. However, as stated in their reports
included in PNM Resources' Quarterly Report on Form 10-Q for the quarters ended
June 30, 2002 and September 30, 2002 and incorporated by reference herein, they
did not audit and they do not express an opinion on that interim financial
information. Accordingly, the degree of reliance on their reports on such
information should be restricted in light of the limited nature of the review
procedures applied. Deloitte & Touche LLP are not subject to the liability
provisions of Section 11 of the Securities Act for their reports on the
unaudited interim financial information because those reports are not "reports"
or a "part" of the registration statement prepared or certified by an accountant
within the meaning of Sections 7 and 11 of the Securities Act.

                                 LEGAL OPINION

     Certain legal matters in connection with the common stock offered hereby
have been passed upon for PNM Resources by Keleher & McLeod, P.A., Albuquerque,
New Mexico.

                                        23


                                   APPENDIX A

                                  FEE SCHEDULE

Enrollment fee for new
investors.....................   No charge

Initial purchase of shares....   Trading fee included in share price (currently
                                 $0.06 per share), applicable when shares are
                                 acquired by the Plan Administrator through its
                                 broker

Reinvestment of dividends.....   No charge. We will pay the applicable trading
                                 fee when shares are acquired by the Plan
                                 Administrator through its broker

Optional cash investments.....   Trading fee included in share price (currently
                                 $0.06 per share), applicable when shares are
                                 acquired by the Plan Administrator through its
                                 broker

Sale of shares (partial or
full):   Transaction fee......   $15 per sale transaction or liquidation

  Trading fee.................   Currently $0.06 per share

Gift or transfer of shares....   No charge

Safekeeping of stock
certificates..................   No charge

Certificate issuance..........   No charge

Returned checks or rejected
automatic debit...............   $35 per check or transaction

Duplicate statements:
  Current year................   No charge

  Prior year(s)...............   $20 flat fee per request per each prior year

PLAN FEES ARE AT THE DISCRETION OF PNM RESOURCES, INC. INVESTORS SHOULD NOT RELY
SOLELY ON THE ABOVE SCHEDULE AS FEES ARE SUBJECT TO CHANGE. FOR MORE
INFORMATION, PLEASE CONTACT THE PLAN ADMINISTRATOR AT 1-877-663-7775.

                                        24


                                   APPENDIX B

     "REQUEST FOR WAIVER" INITIAL OR OPTIONAL CASH INVESTMENTS OF MORE THAN
$10,000 PER MONTH



                         THRESHOLD PRICE AND
                       WAIVER DISCOUNT, IF ANY,   OPTIONAL CASH INVESTMENTS   PRICING PERIOD        WAIVER
YEAR                        WILL BE SET BY           MUST BE RECEIVED BY        START DATE     INVESTMENT DATE
----                   ------------------------   -------------------------   --------------   ----------------
                                                                                   
2003                        March 14                   March 18                 March 19           April 2
                            April 3                    April 7                   April 8           April 23
                            April 24                   April 28                 April 29            May 13
                             May 14                     May 16                   May 19             June 3
                             June 4                     June 6                   June 9            June 23
                            June 24                    June 26                   June 27           July 14
                            July 15                    July 17                   July 18           August 1
                            August 4                   August 6                 August 7          August 21
                           August 22                  August 26                 August 27        September 11
                          September 12               September 16             September 17        October 1
                           October 2                  October 6                 October 7         October 21
                           October 22                 October 24               October 27        November 10
                          November 11                November 13               November 14        December 1
                           December 2                 December 4               December 5        December 19
                          December 22                December 24               December 26     January 12, 2004
2004                       January 13                 January 15               January 16         February 2
                           February 3                 February 5               February 6        February 23
                          February 24                February 26               February 27         March 12
                            March 15                   March 17                 March 18           April 1
                            April 2                    April 6                   April 7           April 22
                            April 23                   April 27                 April 28            May 12
                             May 13                     May 17                   May 18             June 2
                             June 3                     June 7                   June 8            June 22
                            June 23                    June 25                   June 28           July 13
                            July 14                    July 16                   July 19          August 14
                            August 3                   August 5                 August 6          August 20
                           August 23                  August 25                 August 26        September 10
                          September 13               September 15             September 16       September 30
                           October 1                  October 5                 October 6         October 20
                           October 21                 October 25               October 26         November 9


PRICING PERIODS ARE AT THE DISCRETION OF PNM RESOURCES, INC. INVESTORS SHOULD
NOT RELY SOLELY ON THE ABOVE SCHEDULE AS PRICING PERIODS AND WAIVER INVESTMENT
DATES MAY VARY. FOR MORE INFORMATION, PLEASE CONTACT THE PLAN ADMINISTRATOR'S
WAIVER DEPARTMENT AT 1-917-320-6300.
                                        25


          ------------------------------------------------------------
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     NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED
BY PNM RESOURCES, INC. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR
A SOLICITATION OF ANY OFFER TO BUY, ANY OF THE SECURITIES OFFERED HEREBY IN ANY
JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR
SOLICITATION. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE
HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE AN IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF.

                               TABLE OF CONTENTS



                                           PAGE
                                           ----
                                        
Where You Can Find More Information......    2
PNM Resources............................    3
Summary of the Plan......................    4
Terms and Conditions of the Plan.........    8
Other Provisions.........................   15
Use of Proceeds..........................   20
Plan of Distribution.....................   21
Transfer Agent and Registrar.............   22
Experts..................................   22
Legal Opinion............................   23
Appendix A...............................   24
Appendix B...............................   25


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                                   (PNM LOGO)

                              PNM RESOURCES, INC.
                                  COMMON STOCK
                                 (NO PAR VALUE)
                              PNM RESOURCES, INC.
                                PNM DIRECT PLAN
                                   PROSPECTUS
                               February 19, 2003

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