Exhibit 10.48.3

                             THIRD AMENDMENT TO THE
                  PNM RESOURCES, INC. OBRA '93 RETIREMENT PLAN


         Effective as of November 15, 1993, Public Service Company of New Mexico
("PNM") established the Public Service Company of New Mexico OBRA '93 Retirement
Plan (the "Plan"). The Plan has been amended on two occasions. The Second
Amendment to the Plan transferred sponsorship of the Plan from PNM to PNM
Resources, Inc. (the "Company") and changed the name of the Plan to the "PNM
Resources, Inc. OBRA '93 Retirement Plan." The purpose of this Amendment is to
make certain provisions of the Plan more consistent with the other benefit plans
and programs sponsored by the Company.

         1. This Amendment shall be effective as of the date set forth below,
unless otherwise specified herein.

         2. This Amendment amends only the provisions of the Plan as set forth
herein. Those provisions not expressly amended by this Amendment shall continue
in full force and effect.

         3. Article IV (Source of Payments) of the Plan is hereby amended by
deleting the last paragraph (as added by the First Amendment to the Plan) and
replacing it with the following new paragraph:

                  Notwithstanding the above, as a condition to the closing of a
         "Change in Control" transaction (as defined in the PNM Resources, Inc.
         Officer Retention Plan, as it may be amended from time to time), the
         Company shall fully fund the Public Service Company of New Mexico and
         Paragon Resources, Inc. Deferred Compensation Trust Agreement and the
         Trust Agreement between PNM Resources, Inc. Deferred Compensation Trust
         Agreement and the Trust Agreement between PNM Resources, Inc. and
         Fiduciary Trust International of Delaware (commonly known as the "Rabbi
         Trusts"), which provide a funding mechanism for certain plans sponsored
         by the Company or its affiliates.


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         4. Article VI (Claims Procedure) of the Plan is hereby amended in its
entirety to read as follows:

                                   ARTICLE VI
                                Claims Procedures

                  6.01 Review. If a Participant, Participant's beneficiary or
         any other person (all of whom are referred to in this Section as a
         "Claimant") is dissatisfied with the determination of his benefits,
         eligibility, participation, service or any other right or interest
         under this Plan, the Claimant may file a written request with the
         organizational unit of the Company responsible for administering
         benefit programs (the "Benefits Department") in a manner prescribed by
         the Benefits Department. The Benefits Department will notify the
         Claimant of the disposition of the claim within ninety (90) days after
         the request is filed with Benefits Department. The Benefits Department
         may have an additional period of up to ninety (90) days to decide the
         claim if the Benefits Department determines that special circumstances
         require an extension of time to decide the claim and the Benefits
         Department advises the Claimant in writing of the need for an extension
         (including an explanation of the special circumstances requiring the
         extension) and the date on which the Benefits Department expects to
         decide the claim. If, following the review, the claim is denied, in
         whole or in part, the notice of disposition shall set forth:

                           A. the specific reason(s) for denial of the claim;

                           B. reference to the specific Plan provisions upon
         which the determination is based;

                           C. a description of any additional material or
         information necessary for the Claimant to perfect the claim and an
         explanation of why such material or information is necessary;

                           D. an explanation of the Plan's appeal procedures,
         and an explanation of the time limits applicable to the Plan's appeal
         procedures, including a statement of the Claimant's right to bring a
         civil action under Section 502(a) of the Employee Retirement Income
         Security Act of 1974, as it may be amended from time to time (the
         "Act").

                  6.02     Appeal of Adverse Benefit Determination.

                           A. Within sixty (60) days after receiving the written
         notice of the disposition of the claim described in Section 6.01, the
         Claimant, or the Claimant's authorized representative, may appeal such
         denied claim. The Claimant may submit a written statement of his claim
         (including any written comments, documents, records and other
         information relating to the claim) and the reasons for granting the
         claim to the Benefits Governance Committee. The Benefits Governance

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         Committee shall have the right to request of and receive from the
         Claimant such additional information, documents or other evidence as
         the Benefits Governance Committee may reasonably require. If the
         Claimant does not request an appeal of the denied claim within sixty
         (60) days after receiving written notice of the disposition of the
         claim as described in 6.01, the Claimant shall be deemed to have
         accepted the disposition of the claim and such written disposition will
         be final and binding on the Claimant and anyone claiming benefits
         through the Claimant, unless the Claimant shall have been physically or
         mentally incapacitated so as to be unable to request review within the
         sixty (60) day period. The appeal shall take into account all comments,
         documents, records and other information submitted by the Claimant
         relating to the claim, without regard to whether such documents,
         records or other information were submitted or considered in the
         initial benefit determination or the initial review.

                           B. A decision on appeal to the Benefits Governance
         Committee shall be rendered in writing by the Benefits Governance
         Committee ordinarily not later than sixty (60) days after the Claimant
         requests review. A written copy of the decision shall be delivered to
         the Claimant. If special circumstances require an extension of the
         ordinary period, the Benefits Governance Committee shall so notify the
         Claimant of the extension with such notice containing an explanation of
         the special circumstances requiring the extension and the date by which
         the Benefits Governance Committee expects to render a decision. Any
         such extension shall not extend beyond sixty (60) days after the
         ordinary period. The period of time within which a benefit
         determination on review is required to be made shall begin at the time
         an appeal is filed in accordance with the provisions of 6.02A. above,
         without regard to whether all the information necessary to make a
         decision on appeal accompanies the filing.

                           If the appeal to the Benefits Governance Committee is
         denied, in whole or in part, the decision on appeal referred to in the
         first sentence of this paragraph B. shall set forth:

                                    (1) the specific reason(s) for denial of the
claim;

                                    (2) reference to the specific Plan
provisions upon which the denial is based;

                                    (3) a statement that the Claimant is
entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records, and other information relevant to the
Claimant's claim for benefits; and

                                    (4) a statement of the Claimant's right to
bring a civil action under Section 502(a) of the Act.


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                  6.03     Special  Rules For  Disability  Claims.  Claims
         involving a determination of disability shall be administered in
         accordance with this Article VI except as otherwise provided in this
         Section 6.03.

                           A. Special Timing Rules. With respect to Section 6.01
         above, the Benefits Department will notify the Claimant of the
         disposition of the claim within forty-five (45) days after the request
         is filed with the Benefits Department. This forty-five (45) day period
         may be extended by the Benefits Department for up to thirty (30) days,
         provided that the Benefits Department both determines that such an
         extension is necessary due to matters beyond the control of the
         Benefits Department and notifies the Claimant, prior to the expiration
         of the initial forty-five (45) day period, of the circumstances
         requiring the extension and the day by which it expects to render a
         decision. If, prior to the end of this thirty (30) day extension
         period, the Benefits Department determines that, due to matters beyond
         the control of the Plan, a decision cannot be rendered within such
         extension period, the period for making the determination may be
         extended for up to an additional thirty (30) days, provided that the
         Benefits Department notifies the Claimant prior to the expiration of
         the first thirty (30) day extension period of the circumstances
         requiring the extension and the date as of which it expects to render a
         decision. In addition, for purposes of Section 6.02A. above, the number
         sixty (60) shall be replaced with the number one hundred eighty (180).
         For purposes of Section 6.02B. above, the number sixty (60) shall be
         replaced with the number forty-five (45).

                           B. Special Information Rules. With respect to
         Sections 6.01 and 6.02, notice of the denial of a claim for disability
         benefits shall set forth the following additional information:

                                    (1) A statement whether any internal rule,
         guideline, protocol or other similar criterion was relied upon in
         denying the claim, and if so, that such internal rule, guideline,
         protocol or other similar criterion will be provided free of charge
         upon request;

                                    (2) A statement that the Claimant is
         entitled to receive, upon request and free of charge, the names of any
         experts whose advice was sought with respect to the claim without
         regard to whether the advice was relied upon in deciding the appeal;

                                    (3) A statement that the Claimant is
         entitled to receive, upon request and free of charge, an explanation of
         any medical and/or vocational findings, if the denial was based, in
         whole or in part, on such findings;

                                    (4) The following statement: "You and your
         plan may have other voluntary alternative dispute resolution options
         such as mediation. One way to find out what may be available is to
         contact your local U.S. Department of Labor Office and your State
         insurance regulatory agency"; and

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                                    (5) A statement describing any voluntary
         appeal procedures offered by the Plan and the Claimant's right to
         receive information about such voluntary procedures.

                           C. Special Appeal Consultation Rules. If an appeal is
         based in whole or in part on a medical judgment, a health care
         professional who has appropriate training and experience in the field
         of medicine involved in the medical judgment, other than the health
         care professional who was consulted in connection with the initial
         benefit determination or a subordinate of such health care
         professional, must be consulted.

                           D. No Deference To Original Decision. A decision on
         an appeal shall not afford deference to the initial adverse benefit
         determination and must be conducted by an appropriate named fiduciary
         of the Plan who is neither the individual who made the adverse benefit
         determination that is the subject of the appeal, nor the subordinate of
         such individual.

                  6.04 Right To Examine Plan Documents And To Submit Materials.
         In connection with the determination of a claim, or in connection with
         review of a denied claim or appeal pursuant to this Article VI, the
         Claimant may examine this Plan and any other pertinent documents
         generally available to Participants relating to the claim and may
         submit written comments, documents, records and other information
         relating to the claim for benefits. The Claimant also will be provided,
         upon request and free of charge, reasonable access to, and copies of,
         all documents, records, and other information relevant to the
         Claimant's claim for benefits with such relevance to be determined in
         accordance with Section 6.05.

                  6.05 Relevance. For purpose of this Article VI, documents,
         records, or other information shall be considered "relevant" to a
         Claimant's claim for benefits if such documents, records or other
         information:

                           A. were relied upon in making the benefit
         determination;

                           B. were submitted, considered, or generated in the
         course of making the benefit determination, without regard to whether
         such documents, records or other information were relied upon in making
         the benefit determination; or

                           C. demonstrate compliance with the administrative
         processes and safeguards required pursuant to this Article VI regarding
         the making of the benefit determination.

                  6.06 Decisions Final; Procedures Mandatory. To the extent
         permitted by law, a decision on review or appeal shall be binding and
         conclusive upon all persons whomsoever. To the extent permitted by law,
         completion of the claims procedures described in this Article VI shall
         be a mandatory precondition that must be complied with prior to
         commencement of a legal or equitable action in connection with the Plan

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         by a person claiming rights under the Plan or by another person
         claiming rights through such a person. The Benefits Governance
         Committee may, in its sole discretion, waive these procedures as a
         mandatory precondition to such an action.

                  6.07 Time For Filing Legal Or Equitable Action. Any legal or
         equitable action filed in connection with the Plan by a person claiming
         rights under the Plan or by another person claiming rights through such
         a person must be commenced not later than the earlier of: A. the
         shortest applicable statute of limitations provided by law; or B. two
         years from the date the written copy of the Benefits Governance
         Committee's decision on review is delivered to the claimant in
         accordance with Section 6.02B, as modifed by Section 6.03A, as
         applicable.

         5.       Section 7.03, (Administrator), of the Plan is hereby amended
                  in its entirety to read as follows:

                  Section 7.03 Administrator. The PNM Resources, Inc. Benefits
         Governance Committee (the "Benefits Governance Committee") shall
         administer the Plan. The Benefits Governance Committee shall be the
         "named fiduciary" for purposes of the ERISA and shall have the
         discretion and authority to control, interpret and construe the Plan
         and manage the operations thereof. Any such interpretation and
         construction of any provisions of this Plan by the Benefits Governance
         Committee shall be final. The Benefits Governance Committee shall, in
         addition to the foregoing, exercise such other powers and perform such
         other duties as it may deem advisable in the administration of the
         Plan. The Benefits Governance Committee may delegate some (or all) of
         its authority hereunder to the PNM Resources, Inc. Benefits Department
         (the "Benefits Department"). The Committee also may engage agents and
         obtain other assistance from the Company, including Company counsel.
         The Benefits Governance Committee shall not be responsible for any
         action taken or not taken on the advice of legal counsel. The Benefits
         Governance Committee is given specific authority to allocate and revoke
         responsibilities among its members or designees. When the Benefits
         Governance Committee has allocated authority pursuant to the foregoing,
         the Benefits Governance Committee shall not be liable for the acts or
         omissions of the party to whom such responsibility has been allocated,
         except to the extent provided by law.

         IN WITNESS WHEREOF, the Company has caused this Amendment to be
         executed as of this _9th__ day of December, 2003.


                                    PNM RESOURCES, INC.


                                    By:         /s/  Alice  A. Cobb
                                        ----------------------------------------
                                          Its:  Senior Vice President,
                                        ----------------------------------------
                                                People Services & Development


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