UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

(Mark One)

        X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934

For the period ended November 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 1-3789

               SOUTHWESTERN PUBLIC SERVICE COMPANY
     (Exact name of registrant as specified in its charter)

        New Mexico                                     75-0575400
        (State or other jurisdiction of             (I.R.S.  Employer
        incorporation or organization)             Identification No.)

              Tyler at Sixth, Amarillo, Texas 79101
       (Address of principal executive offices) (Zip Code)

Registrant's Telephone Number, including area code (806) 378-2121

        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 __

        As of January 10, 1996,  40,917,908 shares of the Company's common stock
were outstanding.
<PAGE>

SOUTHWESTERN PUBLIC SERVICE COMPANY
FORM 10-Q
For the Quarter Ended November 30, 1995


TABLE OF CONTENTS


PART I. Financial Information

        Condensed Consolidated Balance Sheets at November 30, 1995
          and August 31, 1995          

        Condensed Consolidated Statements of Earnings for the three and twelve
          months ended November 30, 1995 and November 30, 1994         

        Condensed Consolidated Statements of Cash Flows for the three and
          twelve months ended November 30, 1995 and November 30, 1994         

        Notes to Condensed Consolidated Financial Statements            

        Independent Accountants' Report         

        Management's Discussion and Analysis of
          Financial Condition and Results of Operations         

PART II. Other Information              

Signatures              

Exhibit 12. Statement of Computation of Ratio of Earnings               
<PAGE>

PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>

SOUTHWESTERN PUBLIC SERVICE COMPANY
Condensed Consolidated Balance Sheets


Assets
<S>                                                      <C>            <C>  
                                                         November 30,   August 31,
                                                         1995           1995
                                                         (Unaudited)
                                                              (In Thousands)
Utility plant:
        Utility plant in service                         $2,352,188     $2,366,435
        Accumulated depreciation                           (810,657)      (854,015)
                Net plant in service                      1,541,531      1,512,420
        Construction work in progress                        47,738         31,026
                Net utility plant                         1,589,269      1,543,446
Nonutility property and investments                          71,221         70,087

Current assets:
        Cash and temporary investments                       12,581         36,860
        Accounts receivable, net                             54,868         73,262
        Accrual for unbilled revenues                        21,287         28,626
        Materials and supplies, at average cost              20,535         21,647
        Prepayments and other current assets                 10,741         10,734
                Total current assets                        120,012        171,129

Deferred debits                                             124,312        124,343

                Total assets                             $1,904,814     $1,909,005

                                                              Continued . . .

See accompanying notes to condensed consolidated financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

SOUTHWESTERN PUBLIC SERVICE COMPANY
Condensed Consolidated Balance Sheets


Capitalization and Liabilities
<S>                                                                    <C>             <C>  
                                                                       November 30,    August 31,
                                                                       1995            1995
                                                                       (Unaudited)
                                                                           (In Thousands)
Capitalization:
        Common stock, $1 par value, authorized - 100,000,000 shares;
                issued and outstanding - 40,917,908 shares             $   40,918      $   40,918
        Premium on capital stock                                          306,376         306,376
        Retained earnings                                                 372,903         373,458
                Total common shareholders' equity                         720,197         720,752
        Preferred stock - redemption not required                          72,680          72,680
        Long-term debt                                                    580,653         582,276
                Total capitalization                                    1,373,530       1,375,708

Current liabilities:
        Current maturities of long-term debt                                  254             276
        Accounts payable                                                   16,910          12,187
        Liability for refunds to customers                                  4,804           5,969
        Interest accrued                                                   15,973           9,067
        Fuel and purchased power expense accrued                           29,577          40,164
        Taxes accrued                                                      33,468          39,757
        Dividends payable on common stock                                  22,505          22,505
        Other current liabilities                                          42,430          39,843
                Total current liabilities                                 165,921         169,768

Deferred credits:
        Deferred income taxes                                             347,171         344,794
        Unamortized investment tax credits                                  5,990           6,053
        Other                                                              12,202          12,682
                Total deferred credits                                    365,363         363,529

                Total capitalization and liabilities                   $1,904,814      $1,909,005

See accompanying notes to condensed consolidated financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
SOUTHWESTERN PUBLIC SERVICE COMPANY
Condensed Consolidated Statements of Earnings
(Unaudited)
<S>                                                  <C>        <C>          <C>        <C>    
                                                     Three Months Ended      Twelve Months Ended
                                                     11-30-95   11-30-94     11-30-95   11-30-94
                                                      (In Thousands, Except Per Share Amounts)

Operating revenues                                   $200,957   $187,216     $847,823   $827,594

Operating expenses:
        Operation:
                Fuel                                   89,450     84,026      375,476    391,618
                Purchased power                         1,438      1,098        5,579      4,406
                Other                                  28,557     25,733      110,291    107,440
        Maintenance                                     7,234      7,890       28,382     29,494
        Depreciation and amortization                  16,388     15,292       62,166     59,957
        Taxes other than property and income taxes      5,277      4,810       19,590     19,376
        Property taxes                                  5,678      5,844       23,843     22,862
        Income taxes                                   13,697     12,435       65,135     56,490
                        Total operating expenses      167,719    157,128      690,462    691,643
Operating income                                       33,238     30,088      157,361    135,951

Other income, net:
        Income taxes                                     (585)      (486)      (3,873)      (171)
        Other, net                                      1,503      1,535       10,942      1,921
                        Total other income, net           918      1,049        7,069      1,750

Interest charges                                       10,988      9,968       42,953     40,410
Net earnings                                           23,168     21,169      121,477     97,291
Dividends on cumulative preferred stock                 1,219      1,219        4,878      4,878
Earnings applicable to common stock                  $ 21,949   $ 19,950     $116,599   $ 92,413
Earnings per common share*                           $    .54   $    .49     $   2.85   $   2.26
Weighted average shares outstanding                    40,918     40,918       40,918     40,918
Dividends declared per common share                  $    .55   $    .55     $   2.20   $   2.20

( ) Denotes deduction.
*Based on weighted average shares outstanding.

See accompanying notes to condensed consolidated financial statements.
</TABLE>

<PAGE>

<TABLE>
SOUTHWESTERN  PUBLIC SERVICE COMPANY
Condensed  Consolidated  Statements of Cash Flows
(Unaudited)
<S>                                                                           <C>          <C>          <C>          <C> 
                                                                              Three Months Ended        Twelve Months Ended
                                                                              11-30-95     11-30-94     11-30-95     11-30-94
                                                                                                (In Thousands)
Operating Activities:
        Cash received from customers                                          $ 225,264    $ 213,958    $ 835,409    $ 839,328
        Cash paid to suppliers and employees                                   (128,683)    (135,212)    (503,790)    (537,112)
        Interest paid                                                            (4,154)      (4,258)     (41,986)     (39,964)
        Income taxes paid                                                       (19,205)     (11,010)     (58,283)     (47,813)
        Taxes other than income taxes paid                                       (9,248)      (9,059)     (42,087)     (41,531)
        Other operating cash receipts and payments, net                             441         (747)      11,007       13,841
            Net cash provided by operating activities                            64,415       53,672      200,270      186,749
Investing Activities:
        Construction expenditures                                               (32,991)     (22,146)    (105,507)     (90,195)
        Nonutility property and investments                                      (1,134)      (1,360)     (27,993)      (7,348)
        Acquisitions                                                            (29,200)           -      (29,200)           -
             Net cash used in investing activities                              (63,325)     (23,506)    (162,700)     (97,543)
Financing Activities:
        Issuance of long-term debt                                                    -            -       76,204            -
        Retirement of long-term debt                                             (1,645)        (150)     (18,375)     (26,170)
        Change in short-term debt                                                     -      (14,994)           -       (4,500)
        Dividends paid (common and preferred)                                   (23,724)     (23,724)     (94,898)     (94,898)
             Net cash used in financing activities                              (25,369)     (38,868)     (37,069)    (125,568)
Net Increase (Decrease) in Cash and Temporary Investments                       (24,279)      (8,702)         501      (36,362)
Cash and Temporary Investments at Beginning of Period                            36,860       20,782       12,080       48,442
Cash and Temporary Investments at End of Period                               $  12,581    $  12,080    $  12,581    $  12,080

Reconciliation of Net Earnings to Net Cash Provided
  by Operating Activities:
                Net earnings                                                  $  23,168    $  21,169    $ 121,477    $  97,291
                Adjustments to reconcile net earnings to net cash
                  provided by operating activities:
                        Depreciation                                             16,388       15,292       62,166       59,957
                        Deferred income taxes and investment tax credits          3,074        2,420       10,122       13,484
                        Allowance for equity funds used during construction         (60)         (43)        (245)        (243)
                Cash flows impacted by changes in:
                        Accounts receivable                                      18,394       15,610       (1,121)       2,063
                        Accrual for unbilled revenues                             7,339        9,852       (9,821)       7,663
                        Materials and supplies                                    1,112       (1,373)        (924)      (2,534)
                        Accounts payable                                          4,723       (1,420)       6,029        1,665
                        Fuel and purchased power expense accrued                (10,587)     (12,228)         921       (4,188)
                        Taxes accrued                                            (6,289)       1,087        2,022           99
                        Liability for refunds to customers                       (1,165)       1,536         (536)       3,016
                        Other, net                                                8,318        1,770       10,180        8,476
                           Net cash provided by operating activities          $  64,415    $  53,672    $ 200,270    $ 186,749

See accompanying notes to condensed consolidated financial statements.
</TABLE>

<PAGE>

SOUTHWESTERN  PUBLIC SERVICE COMPANY 
Notes to Condensed Consolidated Financial Statements
(Unaudited)


(1) Interim  periods.  The results of operations for the interim periods are not
necessarily an indication of the expected results for the fiscal year due to the
seasonal nature of Southwestern Public Service Company's (the Company) business.
The unaudited condensed  consolidated  financial statements included herein were
prepared from the books of the Company in  accordance  with  generally  accepted
accounting  principles and reflect all adjustments (none of which are other than
normal recurring adjustments) which are, in the opinion of management, necessary
to provide a fair statement of the results of operations and financial  position
for the interim  periods.  Such financial  statements  generally  conform to the
presentation  reflected in the  Company's  Annual  Report to  Stockholders.  The
current interim period reported herein is included in the fiscal year subject to
independent audit at the end of the year.


(2) Income taxes. The components of income tax expense (benefit) are as
 follows:
<TABLE>
<CAPTION>
<S>                              <C>        <C>            <C>        <C>  
                                 Three Months Ended        Twelve Months Ended
                                 11-30-95   11-30-94       11-30-95   11-30-94
                                                (In Thousands) 
Taxes on operating income:
      Federal-current            $10,050    $ 9,658        $51,985    $41,151
      Federal-deferred             3,287      2,490         11,468     13,876
      Investment tax credits         (62)       (62)          (250)      (250)
      State-current                  422        349          1,932      1,713
                                  13,697     12,435         65,135     56,490
Taxes on other income:
      Federal-current                730        495          4,938        313
      Federal-deferred              (151)        (9)        (1,096)      (142)
      State-current                    6          -             31          -
                                     585        486          3,873        171
          Total income taxes     $14,282    $12,921        $69,008    $56,661
</TABLE>

(3) Merger  with Public  Service  Company of  Colorado  (PSCo).  The Company and
Denver-based  PSCo entered into a definitive  merger  agreement  (the Merger) on
August 22, 1995, to form a registered  public utility  holding company named New
Century  Energies,  Inc.,  which will be the parent  company for the Company and
PSCo. The transaction is subject to various conditions, including receipt of the
approval of the shareholders of the Company and PSCo, as well as the approval of
or the taking of other action by the  Securities  and Exchange  Commission,  the
Federal Trade  Commission,  the  Department of Justice,  the Nuclear  Regulatory
Commission,  the Federal  Energy  Regulatory  Commission,  and the state  public
utility commissions in Texas, Colorado, New Mexico, Wyoming, and Kansas.

     The  Merger,  with a  targeted  completion  date in the  fall of  1996,  is
conditioned on qualifying as a tax-free  reorganization  and being accounted for
as a pooling of interests.

(4) Rate and Regulatory  Matters.  A Public  Utility  Commission of Texas (PUCT)
substantive  rule  requires  periodic  examination  of the  Company's  fuel  and
purchased  power costs,  the  efficiency  of the use of such fuel and  purchased
power, fuel acquisition and management  policies and purchase power commitments.
On May  1,  1995,  the  Company  filed  with  the  PUCT  a  petition  for a fuel
reconciliation  for the months of January 1992 through  December 1994. A hearing
was held in September  1995,  and in January 1996 an order was issued which will
require  the  Company to make a $3.9  million  fuel  refund  consisting  of $2.1
million of overrecovered fuel costs (which has previously been accrued) and $1.8
million of  disallowed  fuel costs for the  period.  The Company is filing for a
motion for rehearing on the disallowed fuel costs. Additionally,  the order will
require the Company to flow through to customers  100% of margins from  non-firm
off-system  opportunity  sales as of January 1995. Prior Commission  rulings had
allowed  the Company to retain 25% of these  margins.  The  retained  portion of
these margins for calendar year 1995 was $2.3 million. The $1.8 million and $2.3
million  would be charged to  earnings if the  Company is  unsuccessful  in this
matter;  however,  the Company  believes the final  determination of this matter
will not significantly  affect  consolidated  financial results. 

     On December 19,  1989,  the FERC issued its order  regarding  the 1985 rate
case.  The  Company  appealed  certain  portions  of the order  that  related to
recognition in rates of the reduction of the federal income tax rate from 46% to
34%. The United  States  Court of Appeals for the  District of Columbia  Circuit
remanded the case,  directing the FERC to reconsider  the Company's  claim of an
offsetting  cost and limiting the FERC's  actions.  The FERC issued its Order on
Remand in July 1992,  required filings were made and a hearing was completed in
February 1994. In October 1994, the  administrative law judge issued a favorable
initial  decision  that, if approved by the FERC,  would result in a substantial
recovery by the  Company.  Negotiated  settlements  with the  Company's  partial
requirements  customers and Texas-New  Mexico Power Company were approved by the
FERC in July 1993 and September  1993,  respectively,  and the Company  received
approximately $2.8 million.  In a settlement  with  the  Company's  New  Mexico
cooperative  customers,  which  the FERC  approved  in July  1995,  the  Company
received  approximately $7.0 million, including interest.  Resolutions with the
remaining  wholesale  customers,  Golden Spread member cooperatives and Lyntegar
Electric  Cooperative  have not been  reached.  The  Company  cannot  reasonably
estimate the ultimate amount  recoverable  from these  proceedings;  however,  a
favorable resolution could materially improve 1996 consolidated earnings.

(5) General.  See note (1) of Notes to Consolidated  Financial Statements in the
Company's  1995  Annual  Report  on Form  10-K for a  summary  of the  Company's
significant accounting policies.


<PAGE>

 Independent Accountant's Report

Southwestern Public Service Company:

We have  reviewed  the  accompanying  condensed  consolidated  balance  sheet of
Southwestern  Public Service  Company and  subsidiaries as of November 30, 1995,
and the related condensed consolidated statements of earnings and cash flows for
the three-month and twelve-month periods ended November 30, 1995 and 1994. These
financial statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters.  It is  substantially  less in scope than an audit in  accordance  with
generally accepted auditing standards,  the objective of which is the expression
of an opinion regarding the financial statements taken as a whole.  Accordingly,
we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to such condensed  consolidated  financial  statements for them to be in
conformity with generally accepted accounting principles.

We have  previously  audited,  in accordance  with generally  accepted  auditing
standards,  the consolidated  balance sheet and statement of  capitalization  of
Southwestern  Public Service Company and subsidiaries as of August 31, 1995, and
the related consolidated statements of earnings,  shareholders' equity, and cash
flows for the year then ended (not  presented  herein);  and in our report dated
October 10,  1995,  we expressed an  unqualified  opinion on those  consolidated
financial  statements.  In  our  opinion,  the  information  set  forth  in  the
accompanying  condensed  consolidated  balance  sheet as of August 31, 1995,  is
fairly stated, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.



DELOITTE & TOUCHE LLP

January 12, 1996
Dallas, Texas
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

        Operating Revenues and Kilowatt-Hour Sales

        Substantially  all of the Company's  operating  revenues result from the
sale of electric  energy.  The principal  factors  determining  revenues are the
amount and price per unit of energy sold.  The  following  table  describes  the
principal components of changes in revenues.
<TABLE>
<CAPTION>
<S>                                                 <C>             <C>                                                      
                                                    Increase (Decrease) From
                                                    Corresponding Prior Period
                                                    Three Months    Twelve Months
                                                    Ended           Ended
                                                    11-30-95        11-30-95
                                                    (Dollars In Thousands)
Estimated effect on revenues of variations in:
        Kilowatt-hour (kwh) sales*                  $  7,101        $ 28,138
        Rates                                          1,987          13,177
        Fuel and purchased power cost recovery         6,176          (8,646)
                Subtotal                              15,264          32,669
        Non-firm kwh sales                            (1,523)        (12,440)
                Total revenue increase          )   $ 13,741        $ 20,229
Increase in kwh sales* (in millions)                     182             714
Decrease in non-firm kwh sales (in millions)            (205)           (681)

        *Comprised  of  retail  and  wholesale  sales   excluding   economy  and
interruptible (non-firm) wholesale kwh sales.
</TABLE>

        Variations  in Kwh  Sales.  The  revenue  increases  for the  three- and
twelve-month  periods resulted  primarily from increased sales to rural electric
cooperatives  (RECs),  primarily Cap Rock Electric Cooperative (Cap Rock). Sales
began  in  February  1994  and  increased  to  100%  of Cap  Rock's  West  Texas
requirements in February 1995.  Increased  irrigation  sales,  reflecting  below
normal  precipitation,  also  contributed  to the  rise in REC  sales  for  both
periods.  Accounting  adjustments  to the estimate of  delivered  not billed kwh
sales also increased revenues for the twelve-month  period by approximately $8.3
million.  These  estimated  kwh sales relate to energy used by customers but not
billed until the subsequent month.

        Variations in Rates.  Increased revenues for the twelve-month period are
primarily the result of greater demand charge revenues paid by certain wholesale
customers.  Additionally,  a settlement  of the 1985 Federal  Energy  Regulatory
Commission  (FERC)  rate  case  with the  Company's  New  Mexico  wholesale  REC
customers  contributed  increased  revenues of  approximately  $4.0 million (and
interest of $3.0 million which is included in other income).

        Variations in Fuel and Purchased Power Cost Recovery.  Revenue increases
for the  three-month  period are due to increased coal and gas costs.  Decreases
for the twelve-month period are due to substantially lower natural gas prices.

        Variations  in Non-Firm Kwh Sales.  The amount of revenues  arising from
non-firm  sales is dependent,  in large part,  upon the amount and cost of power
available to the Company for sale,  the demand for power,  the  availability  of
competing  hydroelectric  power from the  Northwest  and  generation  from major
plants in the West. The decline in non-firm sales for both periods was primarily
due to available power from major western plants and excess  hydroelectric power
in the  Northwest.  Mild  weather  throughout  the region,  particularly  in the
winter, also contributed to the decline for the year.

        In January  1996 the Public  Utility  Commission  of Texas  ordered  the
company to flow through 100% of the margins related to these sales as of January
1995 (compared to 75% which has previously been flowed  through).  The amount of
these margins for calendar year 1995 was $2.3 million. The company is requesting
rehearing of this order. See Note (4).

        Operating Expenses and Non-Operating Items

        Operating Expenses. Fuel and purchased power expense comprised 54.2% and
55.2% of total operating expenses for the three and twelve months ended November
30, 1995,  respectively.  When compared to the corresponding  periods last year,
these expenses  increased $5.8 million,  or 6.8%, for the three-month period and
decreased $15.0 million,  or 3.8%, for the twelve-month  period.  Increased fuel
costs caused the three-month rise.  Substantially lower gas prices and decreased
generation of electricity, primarily due to lower non-firm sales, contributed to
the decline in the twelve-month  period. Fuel expense (excluding purchased power
expense), per net kwh generated, increased from 1.68 to 1.83 cents and decreased
from 1.82 to 1.78 cents for the respective three- and twelve-month  periods. The
increase in the  three-month  period is due to higher coal and natural gas costs
while the decline in the twelve-month period is due to lower natural gas prices.

        Total operating expenses,  excluding fuel and purchased power, increased
$4.8 million,  or 6.7%, for the three-month period, and increased $13.8 million,
or 4.7%, for the twelve-month period.  The increase in the three-month period is
due primarily to merger-related costs. (See Other Matters).  The increase in the
twelve-month  period was due  primarily to increased  federal  income taxes as a
result of larger taxable income.

        Other Income. Other income increased  in  the  twelve-month  period  due
primarily  to  approximately  $3.0  million  of  interest  from  the  rate  case
settlement with New Mexico  wholesale  customers.  The write-off of nonrecurring
expenses  of  $3.4  million  (related  to  engineering  and  design  costs  of a
previously planned generating facility and business development costs related to
a generation project in Missouri) reduced other income for last year.

        Earnings

        Current  operating  income  and  earnings  applicable  to  common  stock
improved  for both  periods  primarily  because of  increased  kwh sales to RECs
(primarily Cap Rock), residential and commercial customers. The increase for the
twelve-month  period also  resulted from the change in estimate of delivered not
billed kwh sales  ($5.4  million or 13 cents per share) and the New Mexico  rate
settlement ($4.5 million or 11 cents per share).

        Assuming  normal weather  conditions,  earnings for the 1996 fiscal year
are expected to remain relatively level. A favorable resolution of the 1985 FERC
rate case with Texas  wholesale  REC  customers  could  materially  improve 1996
earnings.  Additionally,  Quixx has entered  into an  agreement  to sell certain
water rights to the Canadian River Municipal  Water Authority  (CRMWA) for $14.5
million that would result in an after-tax  gain of  approximately  $7.6 million.
The sale is conditioned on CRMWA receiving assurances from certain member cities
that the cost of the water  rights will be repaid.  The contract is scheduled to
close in fiscal 1996; however,  the Company expects,  but can give no assurance,
that this sale will be closed.

LIQUIDITY AND CAPITAL RESOURCES

        The Company's demand for capital is normally related to the construction
of utility plant and equipment.  Cash construction  expenditures excluding AFUDC
for the three and twelve months ended November 30, 1995,  were $33.0 million and
$105.5  million,  respectively.  Such  expenditures  are expected to approximate
$112.9 million for 1996. The anticipated purchase of TUCO Inc. (TUCO) from Cabot
Corporation  for $77 million and the purchase of certain Texas  properties  from
Texas-New Mexico Power Company (TNP) for $29.2 million will result in additional
cash requirements in 1996. The Company cannot accurately forecast the portion of
internally generated funds to be used for capital expenditures, but expects that
it will be approximately 40% in fiscal 1996 (including TNP and TUCO).

        The Company  redeemed  on  December  27,  1995,  all of its  outstanding
Preferred  Stock that was  redeemable by its terms and in January 1996 purchased
and  cancelled  all of the  outstanding  2,600  shares of its  14.50% Cumulative
Preferred Stock that was not redeemable by its terms.  The aggregate  redemption
and  purchase  price of the  shares  of stock  was  approximately  $76  million,
including  accrued  dividends.  The Company plans to finance the  redemption and
purchase of the  Preferred  Stock with the use of short-term  borrowings,  which
would  be  repaid,  subject  to  market  conditions,  with the  issuance  of new
Preferred Stock or Bonds during 1996. The information set forth in the preceding
paragraph does not include the  expenditures  or refinancing in connection  with
the  redemption  and  purchase of the  Preferred  Stock.  The Company  currently
contemplates  the sale of other Preferred  Stock,  Common Stock and Bonds during
the  five-year  period  1996-2000  in  connection  with  the  financing  of  its
construction program and retirement of Bonds.

        The Company has effective a shelf  registration  under which a remaining
aggregate of $130 million of First Mortgage Bonds and Cumulative Preferred Stock
may be issued (a maximum of $40 million Preferred Stock is issuable thereunder).
At November  30, 1995,  the Company  maintained  committed  bank lines of credit
aggregating $128 million, of which the Company had no borrowings  outstanding at
November 30, 1995.

        The Company will seek approval of the holders of its Common Stock at the
Annual Meeting to be held on January 31, 1996, (the Annual Meeting) to amend its
Articles  relating  to the  Preferred  Stock  in order to  provide  for  updated
provisions and eliminate  certain  restrictive  covenants imposed by the current
provisions.

OTHER MATTERS

        Electric  utilities  have  historically  operated in a highly  regulated
environment  in which they have an  obligation  to provide  electric  service to
their  customers  in return for an  exclusive  franchise  within  their  service
territory  with  an  opportunity  to  earn a  regulated  rate  of  return.  This
regulatory  environment  is  changing.  The  generation  sector has  experienced
competition from nonutility power producers and the FERC is requiring utilities,
including the Company, to provide wholesale  transmission  service to others and
may order electric utilities to enlarge their transmission systems to facilitate
transmission   services   without   impairing   reliability.   State  regulatory
authorities  are in the process of changing  utility  regulations in response to
federal and state statutory changes and evolving markets. In part in response to
these  changing  conditions  the Company has entered  into a  definitive  merger
agreement with Public Service  Company of Colorado (PSCo) (the Merger) to form a
registered public utility holding company named New Century Energies, Inc.(NCE).
Consummation  of  the  Merger  is  subject  to  customary  conditions  including
receiving   shareholder  and  regulatory  authority  approvals.   The  Company's
shareholders will be asked to approve the Merger at the Annual Meeting.  The two
utilities  are  working  toward  a  completion  date in the  fall of  1996.  The
foregoing  discussions of the Company's  "Results of Operations"  and "Liquidity
and Capital  Resources" do not take into account any changes that could arise as
a result of the Merger.

        For  further  information  concerning  the  Merger and the impact on the
Company,  reference  is made to the joint  proxy of the Company and PSCo and the
prospectus for NCE (including the merger  agreement and exhibits  thereto) dated
December 13, 1995, filed with the Securities and Exchange Commission.
<PAGE>

PART II. OTHER INFORMATION

Item 5. Other Information.

     On August 22, 1995, the Company and Denver-based  Public Service Company of
Colorado (PSCo) entered into a definitive  agreement  providing for a "merger of
equals" of the two companies,  as previously  reported in the Company's  Current
Report on Form 8-K dated August 22, 1995,  and in it Annual  Report on Form 10-K
for the fiscal year ended August 31, 1995. Detailed  information with respect to
the business  combination  is contained in the Joint Proxy  Statement/Prospectus
dated  December 13, 1995,  (contained in the  Registration  No.  33-64951).  The
Company's Joint Proxy  Statement/Prospectus,  which includes unaudited pro forma
combined  financial  data for the Company and PSCo giving effect to the business
combination,  to the extent  information  has been  provided by the Company,  is
incorporated herein by reference.

     The Company has filed applications with the applicable state  jurisdictions
and FERC and numerous  intervenors  have filed in the  proceedings.  Hearings in
some of the state jurisdictions have been scheduled to commence in the summer of
1996.

     The  Company's  ratio of  earnings to fixed  charges for the twelve  months
ended  November 30, 1995,  was 5.06.  The ratio of earnings to fixed charges and
preferred dividend requirements combined was 4.35 for such period.

Item 6. Exhibits and Reports on Form 8-K.

        (a)     Exhibits:

                 12   Statement showing computations of ratio of earnings for
                      the twelve months ended November 30, 1995

                 15   Letter of Deloitte & Touche LLP regarding unaudited
                      condensed consolidated interim financial information

        (b)     Reports on Form 8-K:

                 None

<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.



        SOUTHWESTERN PUBLIC SERVICE COMPANY


           Doyle R. Bunch II
           Executive Vice-President
           Accounting and Corporate Development




DATE: January 12, 1996