News Release

Dec. 18, 2001

PNM To Pursue Community Working Group
Recommendation on Electric Transmission Line

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NEWS MEDIA CONTACT Susan Sponar Telephone: (505) 241-2768

Santa Fe: PNM will seek permission next year to enhance electric transmission in the Santa Fe area, an investment recommended by a community working group that has been studying the area’s electric system, the company announced today.

Engineering studies are under way at PNM to determine the best potential routes for a new line similar in size and construction to several other transmission lines already serving the area. The final solution could also include upgrading an existing line or lines.

“The community working group had good dialogue on the various alternatives,” said PNM Vice President Melvin Christopher. “After exploring these alternatives, the group concluded that the transmission line option is the best solution for the 2003-2004 timeframe.”

PNM has identified that period as a critical one for the area’s electric system – a time when neither of the area’s two main transmission lines, on its own, can carry enough power to supply local needs. Industry planning standards require that utilities design electric systems to meet local demand even if a major line or other critical piece of equipment fails or is out of service.

To tackle that potential problem, PNM created Project Power and asked a group of community leaders and activists to help it find the most feasible and acceptable solution.

The group met several times during the past six months and determined that transmission enhancements are the only workable solution for the 2003-2004 timeframe. At the same time, they also expressed a strong interest in energy efficiency and conservation.

“Because of that, we’d like to continue to explore with them what might be effective for PNM to do in this area, beyond those activities and projects we already have under way. We will continue to support the Project Power process,” Christopher said.

"Members of the community working group were incredibly frank and direct in comments and suggestions as we reviewed the various options,” said John Pacheco, president emeritus of Santa Fe Community College. “The open dialog has resulted in the group and PNM deciding to continue the discussion into the future. For me, this has been an exemplary effort by an industry to show it values the thinking of the community.”

Group members have said they want to remain involved in the site selection and permitting process for any potential new line. They have also expressed an interest in exploring longer-term options for the area’s future electric system, including utilization of distributed generation, wind, solar, and other technologies along with energy efficiency and conservation.

More information on Project Power and the electric system that serves Santa Fe and Las Vegas is available online at www.project-power.org.