SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D. C.  20549

                            FORM 10-Q

(Mark One)
(X)  COMBINED QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
     THE SECURITIES EXCHANGE ACT OF 1934
     For the quarterly period ended September 30, 1995

                               or

(  ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934
     For the transition period from      to


                 Commission File Number: 1-8847

                     TNP ENTERPRISES, INC.
     (Exact name of registrant as specified in its charter)

  Texas                                         75-1907501
(State of incorporation)         (I.R.S. employer identification number)

4100 International Plaza, P. O. Box 2943, Fort Worth, Texas 76113
      (Address and zip code of principal executive offices)
                                
 Registrant's telephone number, including area code 817-731-0099
                                
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes \X\ No \   \

TNP Enterprises, Inc. had 10,914,076 shares of common stock
outstanding as of October 26, 1995.

                 Commission File Number: 2-97230

                  TEXAS-NEW MEXICO POWER COMPANY
     (Exact name of registrant as specified in its charter)

  Texas                                         75-0204070
(State of incorporation)         (I.R.S. employer identification number)

4100 International Plaza, P. O. Box 2943, Fort Worth, Texas 76113
      (Address and zip code of principal executive offices)
                                
 Registrant's telephone number, including area code 817-731-0099
                                
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes \X\ No \   \

Texas-New Mexico Power Company had 10,705 shares of common stock
outstanding as of October 26, 1995.
                             Page 1
<PAGE>

             TNP Enterprises, Inc. And Subsidiaries
         Texas New-Mexico Power Company And Subsidiaries
   Combined Quarterly Report on Form 10-Q for the period ended
                       September 30, 1995

This Combined Quarterly Report on Form 10-Q is separately filed by TNP
Enterprises, Inc., and Texas-New Mexico Power Company. Texas-New
Mexico Power Company makes no representation as to information
relating to TNP Enterprises, Inc., except as it may relate to Texas-
New Mexico Power Company, or to any other affiliate or subsidiary of
TNP Enterprises, Inc.

                           TABLE OF CONTENTS

                    PART I.  FINANCIAL INFORMATION
<TABLE>
<S>                                                                           <C>
Item 1.  Financial Statements.
         (Unaudited for Periods Ended September 30, 1995, and 1994)

         TNP Enterprises, Inc. ("TNPE") and Subsidiaries:

           Consolidated Statements of Operations
           Three- and Nine-Month Periods Ended September 30,  1995, and 1994   3

           Consolidated Statements of Cash Flows
           Nine-Month Periods Ended September 30, 1995, and 1994               4

           Consolidated Balance Sheets
           September 30, 1995, and December 31, 1994                           5

         Texas-New Mexico Power Company ("TNMP") and Subsidiaries:

           Consolidated Statements of Operations
           Three- and Nine-Month Periods Ended September 30, 1995, and 1994    6

           Consolidated Statements of Cash Flows
           Nine-Month  Periods Ended September 30, 1995, and 1994              7

           Consolidated Balance Sheets
           September 30, 1995, and December 31, 1994                           8

         Notes to Consolidated Financial Statements                            9

Item 2. Management's Discussion and Analysis of Financial Condition 
        and Results of Operations.                                            11


                      PART II.  OTHER INFORMATION

Item 1. Legal Proceedings.                                                    14

Item 6. Exhibits and Reports on Form 8-K.                                     14
        (a) Exhibit Index                                                     14
        (b) Reports on Form 8-K                                               14
        Signature page (TNPE and TNMP)                                        15
</TABLE>
                                   
                                   
                                   
                    PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

The following interim consolidated financial statements of TNPE and
subsidiaries and TNMP and subsidiaries are unaudited. The 1995
financial statements reflect the sale of the Texas Panhandle
properties, a change in accounting for unbilled revenues, and
recognition of revenues that previously were deferred, as described in
Notes to Consolidated Financial Statements. The 1994 financial
statements reflect the recognition of regulatory disallowances. In
management's opinion, the financial statements reflect all other
adjustments (consisting only of normal recurring accruals) necessary
to state fairly results for the interim periods presented. Results for
interim periods are not necessarily indicative of results to be
expected for a full year or for previously reported periods, due in
part to seasonal revenue fluctuations and certain one-time items.
Amounts shown for TNPE and TNMP at December 31, 1994, are based on
audited consolidated financial statements appearing in TNPE's and
TNMP's 1994 Combined Annual Report on Form 10-K.
                                   
                                Page 2
<PAGE>
<TABLE>
<CAPTION>
                TNP ENTERPRISES, INC. AND SUBSIDIARIES
           Consolidated Statements of Operations (Unaudited)

                                             Three Months Ended         Nine Months Ended
                                               September 30,              September 30,
                                            1995           1994         1995         1994
                                                (In Thousands Except Per Share Amounts)
<S>                                       <C>           <C>           <C>         <C>
OPERATING REVENUES (note 3)               $151,586      $149,864      $378,470    $ 368,509

OPERATING EXPENSES:
 Power purchased for resale                 52,060        59,788       138,715      151,790
 Fuel                                       15,815        14,793        38,040       35,722
 Other operating and general expenses       18,172        18,387        53,985       54,240
 Maintenance                                 2,843         2,929         8,567        8,990
 Depreciation of utility plant               9,544         9,132        28,458       27,459
 Taxes, other than on income                 8,158         8,853        21,866       23,443
 Income taxes (note 4)                       9,847         4,998        11,548        2,555
   Total operating expenses                116,439       118,880       301,179      304,199

NET OPERATING INCOME                        35,147        30,984        77,291       64,310

OTHER INCOME (LOSS):
 Gain on sale of Texas 
  Panhandle properties (note 1)             14,583           -          14,583          -
 Recognition of regulatory disallowances       -             -              -       (31,546)
 Other income and deductions, net              572           761         1,097          898
 Income taxes (note 4)                      (5,299)         (787)       (5,697)      10,189
   Other income (loss), net of taxes         9,856           (26)        9,983      (20,459)

EARNINGS BEFORE INTEREST CHARGES
   AND CHANGE IN ACCOUNTING                 45,003        30,958        87,274       43,851

INTEREST CHARGES:
 Interest on long-term debt                 17,638        18,028        54,227       53,720
 Other interest and amortization 
   of debt-related costs                       676         1,059         2,635        2,959
 Allowance for borrowed funds 
   used during construction                    (39)          (50)         (126)        (211)
   Total interest charges                   18,275        19,037        56,736       56,468

EARNINGS (LOSS) BEFORE CUMULATIVE EFFECT
 OF CHANGE IN ACCOUNTING                    26,728        11,921        30,538      (12,617)

Cumulative effect of change in 
  accounting for unbilled revenues, 
  net of taxes (notes 2, 4)                    -            -           8,445           -

NET EARNINGS (LOSS)                         26,728        11,921       38,983       (12,617)

Dividends on preferred stock                   152           189          520           601

EARNINGS (LOSS) APPLICABLE 
  TO COMMON STOCK                          $26,576       $11,732      $38,463      $(13,218)

EARNINGS (LOSS) PER SHARE OF COMMON STOCK:
 Earnings (loss) before cumulative 
   effect of change in accounting          $  2.44       $  1.09      $  2.75      $  (1.23)

 Cumulative effect of change in 
   accounting for unbilled revenues            -             -           0.78           -

 Earnings (loss) per share                 $  2.44       $  1.09      $  3.53      $  (1.23)

DIVIDENDS PER SHARE                        $  0.20       $  0.20      $  0.60      $  1.015

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                         10,909        10,752       10,896        10,726

PRO FORMA AMOUNTS ASSUMING RETROACTIVE
   APPLICATION OF CHANGE IN ACCOUNTING :
 Earnings (loss) applicable 
   to common stock                         $26,576      $10,290       $30,018      $(12,332)
 Earnings (loss) per share                 $  2.44      $  0.96       $  2.75      $  (1.15)

</TABLE>




See accompanying Notes to Consolidated Financial Statements.

                                     Page 3
<PAGE>
<TABLE>
<CAPTION>
               TNP ENTERPRISES, INC. AND SUBSIDIARIES
          Consolidated Statements of Cash Flows (Unaudited)

                                                                     Nine Months Ended
                                                          September 30,              September 30,
                                                              1995                      1994
                                                                      (In Thousands)
<S>                                                         <C>                         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Cash received from customers                               $373,127                    $365,095
 Power purchased for resale                                 (138,838)                   (150,270)
 Fuel costs paid                                             (32,434)                    (36,568)
 Cash paid to other suppliers and for payroll                (52,551)                    (60,706)
 Interest paid, net of amounts capitalized                   (58,929)                    (62,633)
 Income taxes paid                                              (781)                        (56)
 Other taxes paid, net of amounts capitalized                (24,652)                    (23,950)
 Other operating cash receipts and payments, net                 916                        (434)
NET CASH PROVIDED BY OPERATING ACTIVITIES                     65,858                      30,478

CASH FLOWS FROM INVESTING ACTIVITIES:
 Additions to utility plant, net of capitalized 
   depreciation and interest                                 (19,956)                    (21,218)
 Net proceeds from sale of Texas Panhandle properties         29,009                         -
 Purchases of temporary investments                          (11,171)                     (5,522)
 Maturities of temporary investments                          10,612                         -  

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES            8,494                     (26,740)

CASH FLOWS FROM FINANCING ACTIVITIES:
 Dividends paid on preferred and common stocks                (7,062)                    (11,484)
 Issuances:
   Common stock                                                  743                       1,503
   Borrowings under secured notes payable                     28,000                     151,500
 Redemptions:
   Preferred stock                                            (1,100)                       (700)
   Repayments under secured notes payable                    (64,000)                   (142,529)
   Long-term debt - first mortgage bonds                      (1,070)                     (1,070)
NET CASH USED IN FINANCING ACTIVITIES                        (44,489)                     (2,780)

NET CHANGE IN CASH AND CASH EQUIVALENTS                       29,863                         958
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD              15,297                      12,423
CASH AND CASH EQUIVALENTS AT END OF PERIOD                   $45,160                     $13,381

RECONCILIATION OF NET EARNINGS (LOSS) TO NET

 CASH PROVIDED BY OPERATING ACTIVITIES:
 Net earnings (loss)                                         $38,983                    $(12,617)
 Adjustments to reconcile net earnings 
  (loss) to net cash provided by
  operating activities:
   Cumulative effect of change in 
     accounting for unbilled revenues,
     net of taxes                                             (8,445)                        -
   Recognition of deferred revenues                           (4,782)                        -
   Gain on sale of Texas Panhandle properties                (14,583)                        -
   Depreciation of utility plant                              28,458                      27,459
   Amortization of debt-related costs 
     and other deferred charges                                3,634                       4,399
   Allowance for borrowed funds used during construction        (126)                       (211)
   Deferred income taxes (excluding 
     effect of change in accounting)                           4,138                      (9,230)
   Investment tax credits                                      2,263                        (485)
   Recognition of regulatory disallowances                       -                        31,546
 Cash flows impacted by changes in 
   current assets and liabilities:
   Customer receivables                                            3                      (4,364)
   Deferred purchased power and fuel costs                     5,959                      (1,071)
   Accounts payable                                            7,195                       2,689
   Accrued interest                                           (4,454)                     (8,743)
   Accrued taxes                                               7,615                         666
   Changes in other current assets and liabilities             1,232                       1,316
 Other, net                                                   (1,232)                       (876)

NET CASH PROVIDED BY OPERATING ACTIVITIES                    $65,858                     $30,478

</TABLE>

See accompanying Notes to Consolidated Financial Statements.

                                       Page 4
<PAGE>
<TABLE>
<CAPTION>
                    TNP ENTERPRISES, INC. AND SUBSIDIARIES
                         Consolidated Balance Sheets

                                                   September 30, 1995         December 31,
                                                      (Unaudited)                  1994
                                                                   (In Thousands)
ASSETS
<S>                                                     <C>                     <C>
UTILITY PLANT (note 1):
 Electric plant                                         $1,187,339              $1,192,277
 Construction work in progress                               3,271                   3,816
     Total                                               1,190,610               1,196,093
 Less accumulated depreciation                             245,974                 228,820
     Net utility plant                                     944,636                 967,273

NONUTILITY PROPERTY, at cost                                 1,159                   1,308

CURRENT ASSETS:
 Cash and cash equivalents (note 1)                         45,160                  15,297
 Temporary investments                                       6,149                   5,590
 Customer receivables (note 2)                              16,822                   3,832
 Inventories, at lower of average cost or market:
   Fuel                                                      1,051                   1,157
   Materials and supplies                                    7,724                   7,527
 Deferred purchased power and fuel costs                     9,299                  15,258
 Accumulated deferred taxes on income                           53                   2,702
 Other current assets                                        1,181                   1,817
     Total current assets                                   87,439                  53,180

REGULATORY TAX ASSETS                                       16,642                  17,304
DEFERRED CHARGES                                            29,997                  32,727
                                                        $1,079,873              $1,071,792

CAPITALIZATION AND LIABILITIES

CAPITALIZATION:
 Common stockholders' equity:
   Common stock - no par value per share. 
   Shares authorized 50,000,000; issued 
   10,914,076 shares in 1995 and 10,866,441
   in 1994                                               $134,860                 $134,117
   Retained earnings                                       82,677                   50,752
     Total common stockholders' equity                    217,537                  184,869

 Preferred stock                                            7,580                    8,680
 Long-term debt, less current maturities (note 1)         616,588                  682,832
     Total capitalization                                 841,705                  876,381

CURRENT LIABILITIES:
 Current maturities of long-term debt                      31,870                    2,670
 Accounts payable                                          29,146                   21,951
 Accrued interest                                           7,239                   11,693
 Accrued taxes                                             25,337                   17,722
 Customers' deposits                                        2,756                    3,973
 Revenues subject to refund (note 3)                         -                       4,782
 Other current liabilities                                 12,525                   10,621
     Total current liabilities                            108,873                   73,412

REGULATORY TAX LIABILITIES                                 43,404                   47,307
ACCUMULATED DEFERRED INCOME TAXES                          56,237                   46,960
ACCUMULATED DEFERRED INVESTMENT TAX CREDITS                19,176                   16,912
DEFERRED CREDITS                                           10,478                   10,820
COMMITMENTS AND CONTINGENCIES (notes 1, 4)
                                                       $1,079,873               $1,071,792

</TABLE>
See accompanying Notes to Consolidated Financial Statements.

                                     Page 5
<PAGE>
<TABLE>
<CAPTION>

               TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
            (a wholly owned subsidiary of TNP Enterprises, Inc.)
              Consolidated Statements of Operations (Unaudited)



                                        Three Months Ended          Nine Months Ended
                                          September 30,              September 30,
                                        1995         1994           1995        1994
                                                         (In Thousands)
<S>                                   <C>          <C>            <C>        <C>
OPERATING REVENUES (note 3)           $151,586     $149,864       $378,470   $368,509

OPERATING EXPENSES:
 Power purchased for resale             52,060       59,788        138,715    151,790
 Fuel                                   15,815       14,793         38,040     35,722
 Other operating and general expenses   18,172       18,387         53,985     54,240
 Maintenance                             2,843        2,929          8,567      8,990
 Depreciation of utility plant           9,544        9,132         28,458     27,459
 Taxes, other than on income             8,158        8,853         21,866     23,443
 Income taxes (note 4)                   9,847        4,998         11,548      2,555
  Total operating expenses             116,439      118,880        301,179    304,199

 NET OPERATING INCOME                   35,147       30,984         77,291     64,310

OTHER INCOME (LOSS):
 Gain on sale of Texas 
  Panhandle properties (note 1)         14,583          -          14,583         -
 Recognition of regulatory 
  disallowances                           -             -             -       (31,546)
 Other income and deductions, net          657          888         1,252       1,239
 Income taxes (note 4)                  (5,329)        (320)       (5,593)     10,581
    Other income (loss), net of taxes    9,911          568        10,242     (19,726)

EARNINGS BEFORE INTEREST CHARGES AND
   CHANGE IN ACCOUNTING                 45,058       31,552        87,533      44,584

INTEREST CHARGES:
 Interest on long-term debt             17,638       18,028        54,227      53,720
 Other interest and amortization 
   of debt-related costs                   676        1,059         2,635       2,959
 Allowance for borrowed funds 
   used during construction                (39)         (50)         (126)       (211)
   Total interest charges               18,275       19,037        56,736      56,468

EARNINGS (LOSS) BEFORE CUMULATIVE EFFECT
   OF CHANGE IN ACCOUNTING              26,783       12,515        30,797     (11,884)

Cumulative effect of change in 
  accounting for unbilled revenues, 
  net of taxes (notes 2, 4)                -            -           8,445         -

NET EARNINGS (LOSS)                     26,783       12,515        39,242     (11,884)

Dividends on preferred stock               152          189           520         601

EARNINGS (LOSS) APPLICABLE 
  TO COMMON STOCK                      $26,631      $12,326       $38,722    $(12,485)

PRO FORMA EARNINGS (LOSS) APPLICABLE 
  TO COMMON STOCK ASSUMING RETROACTIVE
  APPLICATION OF CHANGE IN ACCOUNTING  $26,631      $10,884      $30,277     $(11,599)

</TABLE>




See accompanying Notes to Consolidated Financial Statements.

                                    Page 6
<PAGE>
<TABLE>
<CAPTION>

            TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
         (a wholly owned subsidiary of TNP Enterprises, Inc.)
           Consolidated Statements of Cash Flows (Unaudited)
                                   
                                                                  Nine Months Ended
                                                        September 30,           September 30,
                                                             1995                  1994
                                                                   (In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                        <C>                   <C>
 Cash received from customers                              $373,127              $365,095
 Power purchased for resale                                (138,838)             (150,270)
 Fuel costs paid                                            (32,434)              (36,568)
 Cash paid to other suppliers and for payroll               (52,327)              (60,882)
 Interest paid, net of amounts capitalized                  (58,929)              (62,633)
 Income taxes paid                                           (1,037)                 (944)
 Other taxes paid, net of amounts capitalized               (24,301)              (23,950)
 Other operating cash receipts and payments, net                595                   129
NET CASH PROVIDED BY OPERATING ACTIVITIES                    65,856                29,977

CASH FLOWS FROM INVESTING ACTIVITIES:
 Additions to utility plant, net of
   capitalized depreciation and interest                    (19,956)              (21,218)
 Net proceeds from sale of Texas Panhandle properties        29,009                   -
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES         9,053               (21,218)

CASH FLOWS FROM FINANCING ACTIVITIES:
 Dividends paid on preferred and common stocks                 (525)                (9,401)
 Issuances:
   Borrowings under secured notes payable                    28,000                151,500
 Redemptions:
   Preferred stock                                           (1,100)                  (700)
   Repayments under secured notes payable                   (64,000)              (142,529)
   Long-term debt - first mortgage bonds                     (1,070)                (1,070)
NET CASH USED IN FINANCING ACTIVITIES                       (38,695)                (2,200)

NET CHANGE IN CASH AND CASH EQUIVALENTS                      36,214                  6,559
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD              8,614                  2,078
CASH AND CASH EQUIVALENTS AT END OF PERIOD                  $44,828                 $8,637

RECONCILIATION OF NET EARNINGS (LOSS) TO NET
 CASH PROVIDED BY OPERATING ACTIVITIES:
 Net earnings (loss)                                        $39,242               $(11,884)
 Adjustments to reconcile net earnings (loss) 
   to net cash provided by operating activities:
   Cumulative effect of change in accounting 
     for unbilled revenues, net of taxes                     (8,445)                   -
   Recognition of deferred revenues                          (4,782)                   -
   Gain on sale of Texas Panhandle properties               (14,583)                   -
   Depreciation of utility plant                             28,458                 27,459
   Amortization of debt-related costs and 
     other deferred charges                                   3,634                  4,399
   Allowance for borrowed funds used during construction       (126)                  (211)
   Deferred income taxes (excluding effect of 
      change in accounting)                                   4,003                 (9,246)
   Investment tax credits                                     2,271                   (428)
   Recognition of regulatory disallowances                      -                   31,546

 Cash flows impacted by changes in current 
   assets and liabilities:
   Customer receivables                                           3                 (4,364)
   Deferred purchased power and fuel costs                    5,959                 (1,071)
   Accounts payable                                           7,195                  2,689
   Accrued interest                                          (4,454)                (8,743)
   Accrued taxes                                              7,398                    (68)
   Changes in other current assets and liabilities            1,493                    787
 Other, net                                                  (1,410)                  (888)

NET CASH PROVIDED BY OPERATING ACTIVITIES                   $65,856                $29,977

</TABLE>

See accompanying Notes to Consolidated Financial Statements.

                                          Page 7
<PAGE>
<TABLE>
<CAPTION>
                    TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
                 (a wholly owned subsidiary of TNP Enterprises, Inc.)
                              Consolidated Balance Sheets


                                               September 30, 1995       December 31,
                                                   (Unaudited)              1994
                                                              (In Thousands)

ASSETS
<S>                                                 <C>                  <C>
UTILITY PLANT (note 1):
 Electric plant                                     $1,187,339           $1,192,277
 Construction work in progress                           3,271                3,816
     Total                                           1,190,610            1,196,093
 Less accumulated depreciation                         245,974              228,820
     Net utility plant                                 944,636              967,273

NONUTILITY PROPERTY, at cost                               175                  183

CURRENT ASSETS:
 Cash and cash equivalents (note 1)                     44,828                8,614
 Customer receivables (note 2)                          16,822                3,832
 Inventories, at lower of average cost or market:
   Fuel                                                  1,051                1,157
   Materials and supplies                                7,724                7,527
 Deferred purchased power and fuel costs                 9,299               15,258
 Accumulated deferred taxes on income                       53                2,702
 Other current assets                                    1,212                1,958
     Total current assets                               80,989               41,048

REGULATORY TAX ASSETS                                   16,642               17,304
DEFERRED CHARGES                                        31,829               34,674
                                                    $1,074,271           $1,060,482

CAPITALIZATION AND LIABILITIES

CAPITALIZATION:
 Common stockholder's equity:
   Common stock, $10 par value per share.
     Authorized 12,000,000 shares; 
     issued 10,705 shares                            $    107              $    107
   Capital in excess of par value                     175,111               175,111
   Retained earnings                                   49,281                10,559
     Total common stockholder's equity                224,499               185,777

 Redeemable cumulative preferred stock                  7,580                 8,680
 Long-term debt, less current maturities (note 1)     616,588               682,832
     Total capitalization                             848,667               877,289

CURRENT LIABILITIES:
 Current maturities of long-term debt                  31,870                 2,670
 Accounts payable                                      29,146                21,951
 Accrued interest                                       7,239                11,693
 Accrued taxes                                         24,296                16,898
 Customers' deposits                                    2,756                 3,973
 Revenues subject to refund (note 3)                      -                   4,782
 Other current liabilities                             12,525                10,622
     Total current liabilities                        107,832                72,589

REGULATORY TAX LIABILITIES                             43,404                47,307
ACCUMULATED DEFERRED INCOME TAXES                      45,911                36,769
ACCUMULATED DEFERRED INVESTMENT TAX CREDITS            17,979                15,708
DEFERRED CREDITS                                       10,478                10,820
COMMITMENTS AND CONTINGENCIES (notes 1, 4)
                                                   $1,074,271            $1,060,482
</TABLE>
See accompanying Notes to Consolidated Financial Statements.

                                    Page 8
<PAGE>
                 TNP Enterprises, Inc. and Subsidiaries
            Texas-New Mexico Power Company and Subsidiaries
              Notes to Consolidated Financial Statements

(1) Sale of Texas Panhandle Properties

TNMP completed the $29.2 million sale of its Texas Panhandle
properties to Southwestern Public Service Company ("SPS") on September
15, 1995, and recognized a net of tax gain of $9.5 million, or $0.87
per share. The sale was consummated pursuant to the sale agreement
between TNMP and SPS discussed in TNPE's and TNMP's 1994 Combined
Annual Report on Form 10-K on page 52. The Panhandle properties
comprised a relatively small portion of TNMP's business. The book
value of the Panhandle properties sold was $14.3 million. For the nine-
month period ended September 30, 1995, revenues for the properties
were $7.4 million with corresponding sales of 76.3 gigawatt-hours to
7,350 customers.

The $29.2 million in proceeds received from SPS were deposited
directly with Bank of America, Illinois, as Trustee, to redeem $29.2
million of Series T First Mortgage Bonds ("FMBs") in accordance with
the indenture governing TNMP's FMBs. On October 16, 1995, the Trustee
paid the proceeds to the holders of the FMBs that were redeemed.

After receiving notice of the redemption, PPM America, Inc. ("PPM"),
representing certain bondholders, contacted TNMP questioning the
appropriateness of the redemption and threatening to take legal action
against TNMP. On September 28, 1995, TNMP filed a lawsuit against PPM
and Bank of America-Illinois in Texas state court. On PPM's motion,
the lawsuit was removed to the United States District Court, Northern
District of Texas, Fort Worth Division (No. 495-CV-738-A). In general,
TNMP seeks a declaratory judgment that redemption of $29.2 million of
its Series T FMBs with proceeds from the sale of its Panhandle
properties is proper under the indenture governing its FMBs. PPM filed
a counterclaim in the lawsuit. In its counterclaim, PPM seeks a
declaration that TNMP cannot partially redeem the Series T FMBs and
that TNMP's partial redemption breached indenture provisions governing
the Series T FMB's. PPM also claims that TNMP violated the Texas
Securities Act, and is seeking alleged actual and punitive damages of
approximately $6.0 million. PPM has requested certification of the
proceeding as a class action. Management believes that PPM's claims
are without merit and is vigorously contesting the claims. In the
opinion of management, the ultimate disposition of this matter will
not have a material adverse effect on TNPE's and TNMP's consolidated
financial position or results of operations.

As of September 30, 1995, cash and cash equivalents included the $29.2
million received from SPS (restricted for redemption of FMBs), and the
related $29.2 million for Series T FMBs has been presented as a
current liability in the accompanying interim consolidated balance
sheets.

(2)  Change in Accounting for Unbilled Revenues

Effective January 1, 1995, TNMP changed its method of accounting for
operating revenues from cycle billing to full accrual. This change
resulted in the recognition of $12,993,000 of additional revenues
($8,445,000, net of taxes). Accruing unbilled revenues more closely
matches revenues and expenses and more closely conforms to common
utility industry practice. Unbilled revenues represent the estimated
amount customers will be charged for service received, but not yet
billed, as of the end of each month. Previously these revenues were
recognized as operating revenues in the following month.

(3) Revenues Subject to Refund

During the third quarter of 1995, the Internal Revenue Service ("IRS")
issued TNMP a favorable private letter ruling that enabled TNMP to
recognize additional revenues and accrued interest of $4.9 million
that previously had been deferred. This resulted in a one-time after-
tax earnings increase of $3.0 million, or $0.28 per share. The Public
Utility Commission of Texas ("PUCT") ordered TNMP to seek the private
letter ruling from the IRS concerning the regulatory tax treatment of
disallowed utility plant costs as discussed in TNPE's and TNMP's 1994
Combined Annual Report on Form 10-K on page 51.

                                Page 9
<PAGE>

(4) Income Taxes

The components of income taxes were as follows:

<TABLE>

                                            Three Months Ended September 30,
                                                TNPE               TNMP
                                            1995    1994      1995     1994
                                                     (In Thousands)
  <S>                                    <C>       <C>      <C>      <C>
  Taxes included in net operating income:
   Federal - current                       $ 915   $2,396      $915    $2,396
   State - current                           541       80       541        80
   Federal - deferred                      5,993    2,023     5,993     2,023
   Investment tax credits ("ITC")          2,398      499     2,398       499
                                           9,847    4,998     9,847     4,998
  Taxes included in other income:
   Federal - current                       7,506      786     7,519       320
   Federal - deferred                     (2,183)      48    (2,170)      -
   ITC                                       (24)     (47)      (20)      -
                                           5,299      787     5,329       320
   Total income taxes                    $15,146   $5,785   $15,176   $ 5,318
</TABLE>
<TABLE>
<CAPTION>
                                              Nine Months Ended September 30,
                                                TNPE                TNMP
                                            1995    1994      1995       1994
                                                    (In Thousands)
  <S>                                    <C>      <C>       <C>      <C>
  Taxes included in net operating income:
   Federal - current                      $2,944   $1,052     $2,944   $1,052
   State - current                           541      136        541      136
   Federal - deferred                      5,772    1,795      5,772    1,795
   ITC                                     2,291     (428)     2,291     (428)
                                          11,548    2,555     11,548    2,555
  Taxes included in other income :
   Federal - current                       7,359      893      7,382      460
   Federal - deferred                     (1,634) (11,025)    (1,769) (11,041)
   ITC                                       (28)     (57)       (20)     -
                                           5,697  (10,189)     5,593  (10,581)
  Taxes on cumulative effect of 
    change in accounting, federal
      - deferred (note 2)                  4,548       -       4,548      -
   Total income taxes                    $21,793  $(7,634)   $21,689  $(8,026)

</TABLE>
<TABLE>
<CAPTION>

The following summarizes federal tax carryforwards as of September 30, 1995:

                                       TNPE        TNMP
                                        (In Thousands)
  <S>                                 <C>         <C>
  Net operating loss
   Amount                             $11,868     $27,257
   First year of expiration period      2009       2008
   Last year of expiration period       2009       2009
  Minimum tax credits
   Amount                             $22,441     $27,379
   Expiration period                    none       none
  ITC
   Amount                             $14,381     $15,576
   Expiration period                    2005       2005
</TABLE>
  
As indicated in the 1994 Combined Annual Report on Form 10-K on page
50, an IRS revenue agent involved in auditing TNPE's 1990 and 1991
consolidated federal income tax returns recommended, in March 1995,
that a private letter ruling concerning the TNP One generating plant's
eligibility for ITC be revoked retroactively. Management believes that
TNMP's claim for ITC is valid and is contesting the agent's
recommendation. Of the $22.5 million of ITC at issue, TNPE and its
subsidiaries have utilized $5.2 million in the consolidated returns
through 1994; TNMP's portion is $4.0 million. However, TNPE and TNMP
have only recognized a cumulative of $0.9 million of the ITC in
results of operations since 1990.

                                Page 10
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations.
    
     The following discussion should be read in conjunction with the
     related consolidated financial statements and notes. References
     to "note(s)" will mean Notes to Consolidated Financial
     Statements.
     
     RESULTS OF OPERATIONS

     Overall Results

     TNPE's earnings applicable to common stock were $26.6 million for
     the third quarter of 1995 ("current quarter") as compared to
     $11.7 million for the third quarter of 1994 ("prior quarter").
     Exclusive of one-time items and the change in unbilled revenues,
     earnings for the current quarter were $16.2 million, an
     improvement of $4.5 million over the prior quarter. The $4.5
     million improvement resulted primarily from higher base revenues,
     increased GWH sales, and cost containment.

     Two one-time items also contributed to the improvement in current
     quarter earnings. First, TNMP completed the sale of its Texas
     Panhandle properties to SPS and recognized a net of tax gain of
     $9.5 million as described in note 1. Second, TNMP recognized a
     net of tax increase of $3.0 million from previously deferred
     revenues after receiving a favorable IRS private letter ruling as
     described in note 3. In addition, the change in unbilled revenues
     as described in note 2 decreased current quarter earnings by $2.1
     million.

     For the nine-month period ended September 30, 1995 ("current nine-
     month period"), TNPE's earnings applicable to common stock were
     $38.5 million as compared to the loss applicable to common stock
     of $13.2 million for the same period ended September 30, 1994
     ("prior nine-month period"). Exclusive of one-time items in both
     nine-month periods and the change in unbilled revenues, current
     nine-month period earnings were $17.6 million as compared to $7.3
     million for the prior nine-month period. The $10.3 million
     improvement resulted primarily from higher base revenues and cost
     containment.

     Three one-time items contributed to the improvement in earnings
     for the current nine-month period: the $9.5 million gain on
     TNMP's sale of its Panhandle properties as described in note 1,
     recognition of the net increase from previously deferred revenues
     of $3.0 million as described in note 3, and the cumulative effect
     of change in accounting for unbilled revenues of $8.4 million as
     described in note 2. For the prior nine-month period, earnings
     decreased by $20.5 million for the one-time 1994 recognition of
     regulatory disallowances.

     The sale of the Panhandle properties is not expected to
     materially affect future results of operations.
     Since the operations of TNMP (the principal subsidiary) represent
     virtually all of TNPE's operations, the following discussion
     focuses primarily on TNMP's operations.

     Operating Revenues

<TABLE>
<CAPTION>

     The components of operating revenues are summarized in the following 
     table (in thousands):

                                   Three Months Ended Sept. 30,            Nine Months Ended Sept. 30,

                                                        Increase                                 Increase
                                   1995       1994     (Decrease)           1995       1994     (Decrease)
     <S>                         <C>        <C>            <C>            <C>         <C>          <C>
     Total operating revenues    $151,586   149,864        1,722          378,470     368,509      9,961
     Effect of change in
       unbilled revenues            3,220       -          3,220             (604)        -         (604)
     Effect of recognizing 
       deferred revenue from 
       private letter ruling       (4,128)      -         (4,128)          (4,128)        -       (4,128)
        Subtotal                  150,678   149,864          814          373,738     368,509      5,229
     
     Less pass-through items:
      Power purchased for resale   52,060    59,788       (7,728)         138,715     151,790    (13,075)
      Fuel                         14,744    13,400        1,344           34,972      32,497      2,475
      Standby power                 1,346     1,294           52            4,376       4,709       (333)
     
        Total pass-through items   68,150    74,482       (6,332)         178,063     188,996    (10,933)
     
     Base revenues-billed         $82,528   $75,382       $7,146         $195,675    $179,513   $ 16,162
</TABLE>
     
     The change in accounting for unbilled revenues was applied
     retroactively to January 1, 1995. Unbilled revenues for the
     current quarter decreased by $3.2 million and increased by $0.6
     million for the current nine-month period. The change in
     accounting is not expected to materially affect total annual
     revenues as compared to the prior fiscal year. However, revenues
     in particular months are expected to fluctuate as compared to the
     same months in the prior year due to the seasonal variation in
     sales.

                                     Page 11
<PAGE>
     The recognition of previously deferred revenues as
     described at note 3 increased operating revenues by $4.1 million.
     
     Pass-through items are the portion of operating revenues that
     recover from customers the costs of power purchased for resale,
     fuel, and standby power. These items affect customer rates but do
     not affect operating income. Explanations for the quarterly and
     nine-month period variances are discussed under "Results of
     Operations -- Operating Expenses."
     
     Excluding the effect of the change in accounting, recognition of
     deferred revenue, and pass-through items, current quarter and
     nine-month period base revenues exceeded the corresponding
     periods last year by $7.1 million and $16.2 million,
     respectively. The base revenue increases are primarily due to
     rate increases in both Texas ($17.5 million annualized) and New
     Mexico ($0.4 million annualized). These rate increases resulted
     from settlement agreements in October 1994 and May 1994,
     respectively.
     
     Increased sales also contributed to the base revenue increases.
     Current quarter sales of 2,023 GWH represented a 3.8% improvement
     over prior quarter sales and contributed $2.7 million to the
     increase in base revenues. The increase in sales resulted from
     increased consumption by all customer classes, and is attributed
     to warmer weather and customer growth. The increases for each
     customer class are residential (4.7%), commercial (4.0%), and
     industrial (3.1%). Excluding the reduction in customers from the
     sale of the Texas Panhandle properties (note 1), total customers
     increased by 2.3%.

     Current nine-month period sales of 5,063 GWH represented a 2.1%
     improvement over prior nine-month period sales and contributed
     $3.5 million to the increase in base revenues. The increase in
     sales resulted from the increase in total customers (as described
     above) and more consumption by residential (2.9%) and commercial
     (4.4%) customers.
     
     Operating Expenses
     
     Current quarter operating expenses decreased by $2.4 million as
     compared to the prior quarter. The decrease is primarily due to
     lower pass-through expenses of $6.3 million and other operating
     expenses of $0.9 million offset by increased income tax expense
     of $4.8 million.

     Current nine-month period operating expenses decreased by $3.0
     million as compared to the prior nine-month period. The decrease
     is primarily due to decreased pass-through expenses of $10.9
     million and other operating expenses of $1.1 million offset by
     increased income tax expense of $9.0 million.

     Pass-through Expenses.  Pass-through expenses consist of power
     purchased for resale, fuel, and standby power. The overall
     decreases are primarily due to lower costs of power purchased for
     resale offset by increased fuel expense.

     Power purchased for resale in the current quarter and current
     nine-month period decreased $7.7 million and $13.1 million,
     respectively, as compared to the corresponding periods last year.
     In Texas, the reduction in the cost of power purchased for resale
     was achieved by shifting purchases to lower cost suppliers for
     supplemental summer peaking capacity. This arrangement became
     effective May 1, 1995, and is expected to result in cost savings
     of $7.0 million annually. Also, TNMP actively intervened in a
     Texas rate case of a major supplier and is benefiting with cost
     savings of $10.5 million annually. In New Mexico, TNMP exercised
     rights under its purchased power contracts applicable to its New
     Mexico customers to shift purchases to lower cost suppliers.
     TNMP's customers directly benefit from these cost reductions as
     these expenses are recovered through adjustment clauses.

     Increases in fuel expense in the current quarter and current nine-
     month period were $1.3 million and $2.5 million, respectively,
     and are directly related to an increased fixed fuel recovery
     factor approved by the Public Utility Commission of Texas
     ("PUCT") in connection with the 1994 Texas rate case settlement.
     The majority of TNMP's fuel expense is equal to the amount
     recovered in revenues and any difference from actual costs is
     deferred until a new factor is established under a fuel factor
     reconciliation hearing. The current fixed fuel factor was
     established to recover current expense as well as the under
     recovered fuel amounting to $15.3 million at December 31, 1994.
     The under recovered amount at September 30, 1995 was $9.3
     million. Also, contributing to the recovery of under recovered
     fuel is the 20% reduction in the cost of lignite coal as
     discussed in TNPE's and TNMP's 1994 Combined Annual Report on
     Form 10-K on page 21. In management's opinion, the current fixed
     fuel factor along with the fuel cost reduction should enable the
     recovery of under-recovered fuel costs by the second half of
     1996. Once the under recovery is eliminated, TNMP plans to
     request a revised fuel factor from the PUCT, enabling cost
     savings to be passed on to customers.

     Other Operating Expenses.  The overall decreases in other
     operating expenses in the current quarter and current nine-month
     period are primarily due to direct payroll expense decreases of
     $0.7 million and $2.2 million, respectively, as a result of the
     1994 reorganization. Increases in certain employee benefits and
     customer collection costs partially offset the payroll decreases.

     Income Taxes.  The current quarter and current nine-month period
     income tax expense increases are due to improved operating
     results, the gain from the Panhandle properties sale, and the
     recognition of the previously deferred revenues.

                                 Page 12
<PAGE>
     FINANCIAL CONDITION
     
     Liquidity

     As of September 30, 1995, available unused credit under the Unit
     2 Credit Agreement was $98.5 million (total commitment is $147.75
     million), subject to interest coverage and equity ratio tests.
     This compares to available unused credit of $62.5 million as of
     December 31, 1994. The $36.0 million increase in available credit
     is attributed to improved cash flow from operations as explained
     in "Results of Operations."

     TNMP entered into a new credit facility (the "New Credit
     Agreement") effective November 3, 1995. The New Credit Agreement
     provides for a total commitment of $150 million and replaced the
     borrowings under the Unit 2 Credit Agreement. The interest rate
     margins under the New Credit Agreement are initially 0.875% lower
     than those under the Unit 2 Credit Agreement. In addition,
     interest rate margins under the previous Unit 2 Credit Agreement
     were scheduled to automatically increase each year while those
     under the New Credit Agreement will decrease as the ratings on
     TNMP's FMBs improve.

     Collateral securing the New Credit Agreement is generally a first
     lien on a portion of TNP One, a second lien on TNMP's first
     mortgage bond trust estate located in Texas, and a pledge of $30
     million of FMBs. Although the total commitment is for $150
     million, TNMP may initially borrow only $100 million. To borrow
     amounts above $100 million, TNMP must pledge additional FMBs, in
     an amount equal to any borrowings in excess of $100 million, to
     the New Credit Agreement banks. Therefore, to borrow the full
     $150 million commitment, TNMP must pledge a total of $80 million
     of FMBs. These FMBs are or will be issued for collateral purposes
     only and will not bear interest except in the event of a default.

     The New Credit Agreement will not only result in lower interest
     rates, but also will provide TNMP with additional financing
     flexibility. The Unit 2 Credit Agreement commitment was scheduled
     to reduce by approximately $36.9 million each year beginning on
     December 31, 1995. The New Credit Agreement commitment will
     reduce to $125 million on November 3, 1998 and to $100 million on
     November 3, 1999, and will expire on November 3, 2000. TNMP also
     has the ability to draw on the New Credit Agreement to redeem
     other outstanding debt.

     TNMP believes that cash flow from operations and periodic
     borrowings under the New Credit Agreement will be sufficient to
     meet working capital requirements and planned capital
     expenditures at least through December 1996. TNMP has sufficient
     liquidity to satisfy the possibility of adverse rulings, if any,
     for the contingencies described in notes 1 and 4.

     Common Stock Dividend

     On November 7, 1995, TNPE announced an increase in the quarterly
     dividend from $0.20 to $0.22 per share. This will be effective
     with the quarterly dividends to be paid on December 15, 1995.

     At September 30, 1995, the amounts available to support TNPE's
     dividend consist of TNPE's unconsolidated cash and investments of
     approximately $6.4 million and TNMP's unrestricted retained
     earnings of $34.6 million that are available for cash dividends
     to TNPE.

                                   Page 13     
<PAGE>

                              PART II - OTHER INFORMATION
     
Item 1.   Legal Proceedings.
     
          The information set forth in note 1 of Notes to Consolidated
          Financial Statements regarding legal matters is incorporated in
          this Item 1 by reference.
     
Item 6.   Exhibits and Reports on Form 8-K.
     
          (a)   Exhibits
     
          The Exhibit Index on pages 56 to 67 of TNPE's and TNMP's 1994
          Combined Annual Report on Form 10-K and the exhibits listed
          in that Exhibit Index are incorporated in this report by
          reference. A copy of the referenced Exhibit Index is filed as
          Exhibit 99(a) to this report.
     
          The following exhibits are incorporated by reference to the
          exhibits with the same exhibit number designation in TNPE's
          and TNMP's original Form 10-Q for the quarter ended March 31,
          1995:

     *10(vv)   TNP Enterprises, Inc. Equity Incentive Plan
               (incorporated by reference to Exhibit 4(i) of TNPE's
               registration statement on Form S-8 filed with the SEC
               on April 28, 1995, File No. 33-58897)

     *10(ww)   TNP Enterprises, Inc. Nonemployee Director
               Stock Plan (incorporated by reference to Exhibit 4(j)
               of TNPE's registration statement on Form S-8 filed with
               the SEC on April 28, 1995, File No. 33-58897)

     *10(xx)   TNP Enterprises, Inc. Management Short-Term Incentive
               Plan

     *10(yy)   TNP Enterprises, Inc. Broad-Based Short-Term Incentive
               Plan

     *10(zz)   TNMP Excess Benefit Plan, as amended
     
        The following exhibits are filed with this report:

      27(a)     Financial Data Schedule for TNPE
  
      27(b)     Financial Data Schedule for TNMP

      99(a)     Exhibit Index (incorporated by reference to
                pages 56 to 67 of TNPE's and TNMP's 1994 Combined
                Annual Report on Form 10-K)

*    Management contracts.

          (b)   Reports on Form 8-K
                None.

                                    Page 14        
<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.


(Registrant)             TNP ENTERPRISES, INC.


                            By  \s\  Manjit S. Cheema
                                     Manjit S. Cheema
Date: November 14, 1995              Vice President & Chief Financial Officer


(Registrant)             TEXAS-NEW MEXICO POWER COMPANY


                            By \s\  Melissa D. Davis
                                    Melissa D. Davis
Date: November 14, 1995             Controller and as Chief Accounting Officer









                                Page 15                                     
<PAGE>