News Release

Dec. 4, 2002

PNM’s Afton Generating Station Up & Running

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

Afton: Afton Generating Station, PNM’s second new power plant online this year, is now fully operational, company officials said today, Dec. 4, 2002.

The simple-cycle, natural gas-fired facility is located near La Mesa, N.M., 12.5 miles southwest of Las Cruces, N.M. The plant will produce about 135 megawatts (MW) of electricity, or enough power to supply 94,500 average-sized New Mexico homes. It will most likely run during “peak periods” when additional power is needed to meet high demand. In New Mexico, those periods are generally in the hot summer months.

Afton Generating Station is a part of PNM’s resource portfolio providing power to the Western wholesale market. PNM has a contract with Texas-New Mexico Power Co. (TNMP) to provide electricity for TNMP’s southern New Mexico customers; the new plant will be a part of the resources used to supply TNMP. The new plant also will serve as critical backup for emergency electricity needs within New Mexico.

PNM broke ground on the plant a little more than one year ago on Nov. 15, 2001.

“This construction project ran smoothly and created more than 260 construction jobs and $7.2 million in wages during the course of the project,” said Pat Goodman, PNM’s vice president of power production. “About 50 percent of the construction workers were New Mexico residents. Now, six permanent staff, making wages averaging $60,000 a year, operate the new facility.

“This plant represents a long-term investment in southern New Mexico and serves to improve the reliability of the electrical system in our state,” Goodman added. “With ample supplies of electricity, we can attract business and provide the necessary infrastructure to enable sustainable growth in our communities.”

PNM is the principal subsidiary of PNM Resources, an energy holding company based in Albuquerque. PNM provides natural gas service to 441,000 gas customers and electric utility service to 378,000 customers in New Mexico. The company 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.