Texas		74-0607870
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Stanton Tower, 100 North Stanton, El Paso, Texas		79901
(Address of principal executive offices)		(Zip Code)

		Page No.
PART I.     FINANCIAL INFORMATION
Item 1.     Financial Statements
Consolidated Balance Sheets – June 30, 2002 and December 31, 2001		1
Consolidated Statements of Operations – Three Months, Six Months and Twelve Months Ended June 30, 2002 and 2001		3
Consolidated Statements of Comprehensive Operations – Three Months, Six Months and Twelve Months Ended June 30, 2002 and 2001		5
Consolidated Statements of Cash Flows – Six Months Ended June 30, 2002 and 2001		6
Notes to Consolidated Financial Statements		7
Independent Accountants’ Review Report		15
Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.     Quantitative and Qualitative Disclosures About Market Risk		25
PART II.     OTHER INFORMATION
Item 1.     Legal Proceedings		26
Item 4.     Submission of Matters to a Vote of Security Holders		26
Item 6.     Exhibits and Reports on Form 8-K		26

ASSETS (In thousands)		June 30, 2002 (Unaudited)			December 31, 2001
Utility plant:
Electric plant in service		$	1,713,301		$	1,708,908
Less accumulated depreciation and amortization			512,836			472,297
Net plant in service			1,200,465			1,236,611
Construction work in progress			113,246			86,802
Nuclear fuel; includes fuel in process of $9,440 and $11,356, respectively			73,634			74,004
Less accumulated amortization			33,851			33,177
Net nuclear fuel			39,783			40,827
Net utility plant			1,353,494			1,364,240
Current assets:
Cash and temporary investments			31,818			27,994
Accounts receivable, principally trade, net of allowance for doubtful accounts of $3,281 and $3,525, respectively			76,769			75,025
Accumulated deferred income taxes			42,646			39,299
Inventories, at cost			24,568			24,356
Undercollection of fuel revenues			20,765			26,797
Prepayments and other			8,331			9,741
Total current assets			204,897			203,212
Deferred charges and other assets:
Decommissioning trust funds			59,498			60,901
Other			15,895			16,086
Total deferred charges and other assets			75,393			76,987
Total assets		$	1,633,784		$	1,644,439

CAPITALIZATION AND LIABILITIES (In thousands except for share data)		June 30, 2002 (Unaudited)				December 31, 2001
Capitalization:
Common stock, stated value $1 per share, 100,000,000 shares authorized, 62,384,827 and 61,982,963 shares issued, and 223,256 and 267,334 restricted shares, respectively		$	62,608			$	62,250
Capital in excess of stated value			260,735				257,891
Unearned compensation – restricted stock awards			(2,391	)			(2,041	)
Retained earnings			283,944				265,775
Accumulated other comprehensive income, net of tax			(1,417	)			752
			603,479				584,627
Treasury stock, 12,442,937 and 11,991,637 shares, respectively; at cost			(140,885	)			(134,434	)
Common stock equity			462,594				450,193
Long-term debt, net of current portion			588,711				590,925
Financing obligations, net of current portion			27,207				28,440
Total capitalization			1,078,512				1,069,558
Current liabilities:
Current portion of long-term debt and financing obligations			60,587				90,355
Accounts payable, principally trade			25,582				24,626
Taxes accrued other than federal income taxes			15,395				16,713
Interest accrued			15,892				16,860
Overcollection of fuel revenues			1,758				3,265
Other			17,313				15,942
Total current liabilities			136,527				167,761
Deferred credits and other liabilities:
Decommissioning liability			141,742				137,614
Accrued postretirement benefit liability			86,756				84,974
Accumulated deferred income taxes			123,280				116,850
Accrued pension liability			30,506				30,694
Other			36,461				36,988
Total deferred credits and other liabilities			418,745				407,120
Commitments and contingencies
Total capitalization and liabilities		$	1,633,784			$	1,644,439

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
Electric utility operating revenues		$	179,917			$	203,127			$	327,524			$	394,517
Energy expenses:
Fuel			35,241				53,207				62,398				102,659
Purchased and interchanged power			29,890				34,537				45,225				51,148
			65,131				87,744				107,623				153,807
Electric utility operating revenues net of energy expenses			114,786				115,383				219,901				240,710
Energy services operations:
Operating revenues			1,105				496				2,695				1,985
Operating expenses			1,433				1,220				3,152				3,113
			(328	)			(724	)			(457	)			(1,128	)
Other electric utility operating expenses:
Other operations			34,371				31,687				67,020				64,692
Maintenance			10,967				13,899				22,484				25,181
Depreciation and amortization			22,443				22,246				45,009				44,399
Taxes other than income taxes			11,229				10,812				22,416				21,539
			79,010				78,644				156,929				155,811
Operating income			35,448				36,015				62,515				83,771
Other income (deductions):
Investment income (loss), net			(286	)			1,706				177				2,607
Other, net			(586	)			(613	)			(934	)			(1,253	)
			(872	)			1,093				(757	)			1,354
Income before interest charges			34,576				37,108				61,758				85,125