News Release

June 17, 2003

PNM Lowers Price of Renewable Energy

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

Albuquerque: The price of renewable energy for PNM customers will be lower than previously proposed if a PNM plan being filed today with state regulators is approved.

PNM, the staff of the state Public Regulation Commission and the nonprofit Coalition for Clean, Affordable Energy (CCAE) have come to agreement on the terms of PNM's proposed renewable energy tariff, which would allow PNM's electric customers to voluntarily purchase renewable energy for a small monthly premium.

Under the proposal, which still needs PRC approval, residential and business customers can voluntarily purchase renewable energy for an additional 1.8 cents per kilowatt hour. PNM had previously proposed a price of 2.5 cents per kilowatt hour.

"This proposal gives us an extremely competitive renewable energy package," said Bill Real, PNM senior vice president for public policy. "We believe this will be a cost-effective and appealing way for customers to voice their support for growing a strong renewable energy industry in New Mexico.

"Equally important, this renewable energy package is an expression of our long-term environmental strategy to enhance the air quality of New Mexico," Real added.

Real said the company agreed to the lower price in order to speed consideration of the tariff. PNM hopes broad support of the tariff will allow the company to offer renewable energy to customers as soon as October.

PNM plans to meet initial customer demand for renewable energy with electricity from the New Mexico Wind Energy Center, the world's third-largest wind generation facility, now under construction in eastern New Mexico. That facility is expected to be producing power by the third quarter of this year. More than 75 of 136 turbines planned for the site are now complete.