News Release

Jan. 29, 2002

February Natural Gas Bills To Be Repeat of January

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

Albuquerque: PNM natural gas bills for February will look much the same as January bills – but relief from high bills is in sight, a company official said today.

Continued volatility in the wholesale natural gas market has driven the February price 15 percent higher than the January price, up to 53.68 cents per therm from the earlier price of 46.79 cents.

However, the 15 percent increase in price is offset by lower February consumption. The average residential customer uses 132 therms of gas in February, compared to the January average of 145 therms.

The result? An average residential bill of $105.55, up $1.33 - or about 1 percent - from the average January bill of $104.22.

"While we expect natural gas prices to remain high for the foreseeable future, customers will be glad to know relief is in sight," said PNM Vice President Sarita Loehr. "As spring approaches, and the weather warms, average residential consumption begins to drop. Bills generally get lower each month as we head into spring and then summer."

PNM does not make a profit on the cost of gas. Instead, it buys gas on the wholesale market and passes the full cost directly on to customers.