News Release

June 24, 2002

Lordsburg Generating Station Now Producing Power

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Lordsburg: Lordsburg Generating Station, the first power plant built by PNM in more than 20 years, is now fully operational, company officials said today.

The simple-cycle, natural gas-fired facility is located in Lordsburg, in far southwestern New Mexico near the Arizona border. The plant can produce about 80 megawatts of electricity, or enough power to supply 64,000 average-sized New Mexico homes.

Electricity from the plant will be sold on the wholesale power market. The plant will also help PNM meet its long-term obligation to provide power to Texas-New Mexico Power Co. (TNMP) under a wholesale contract signed in 2001. TNMP, headquartered in Forth Worth, has 46,000 residential and commercial customers in southern New Mexico.

PNM broke ground on the plant on January 17. “Throughout the approval process, and then during construction, this plant has been extremely well received by the citizens of Lordsburg,” said PNM Executive Vice President Bill Real. “We appreciate the community’s support and look forward to being an active and positive part of that community.”

Another new PNM plant, the 135-MW, natural gas-fired Afton Generating Station near Las Cruces, N.M., is currently under construction and expected to be completed in September.

PNM is a combined electric and gas utility serving approximately 1.3 million people in New Mexico. The company, a wholly owned subsidiary of PNM Resources, also sells power on the wholesale market in the Western U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's website at www.pnm.com.