News Release

Aug. 11, 2003

San Juan Generating Station Receives Green Zia
Environmental Excellence Recognition for Second Year

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

Waterflow: The PNM San Juan Generating Station (SJGS) once again will be recognized by the New Mexico Environment Department (NMED) Green Zia Environmental Excellence Program for the plant's commitment to pollution prevention and environmental management. This year, the plant has received the achievement level of recognition for furthering its efforts in pollution prevention.

Green Zia is a voluntary program that encourages New Mexico organizations to consider environmental performance as a core business practice. The program encourages business and environmental integration through a pollution prevention-based environmental management system. SJGS will receive its Green Zia award from NMED and Gov. Bill Richardson in September during an award ceremony in Santa Fe.

"We're honored that our environmental efforts are being recognized once again by the State of New Mexico," said Russell Huffman, SJGS plant manager. "San Juan Generating Station recognizes that our commitment to environmental stewardship is important in the Four Corners area, and we will continue to look for ways to improve our environmental performance."

To receive the recognition, SJGS had to demonstrate environmental commitment and results in numerous areas, including company and community leadership; planning for continuous environmental improvement; customer and supplier involvement; internal and external information collection and management; employee involvement; process management; and environmental results.

SJGS's pollution-prevention performance recognized by the Green Zia program includes:

• The plant meets or exceeds all state and federal regulations established by the Clean Air Act of 1970 and the Clean Air Act Amendments of 1990.
• From 1998 to 2002, SJGS has decreased emissions in the following areas:
  • 58 percent decrease in sulfur dioxide (SO2) emissions;
  • 61 percent decrease in acid gas emissions;
  • 9.4 percent decrease in fly ash produced; and
  • 1,930 percent increase in fly ash recycled.

Some of the efforts SJGS has made to improve plant performance in these areas include:

• In 2002, SJGS entered into a 15-year agreement with Phoenix Cement Company to recycle between 150,000 and 300,000 tons of fly ash annually from two of the plant's units. Phoenix Cement uses this fly ash in concrete products and roadwork.
• In 2001, SJGS began using coal from an underground mine after BHP Billiton, the plant's coal supplier, decided to replace the San Juan and La Plata surface mines with an underground long wall mine located adjacent to the power plant. This conversion has reduced fly ash generation and increased plant efficiency.
• SJGS participates in numerous federal, state and local initiatives, including the Four Corners Ozone Task Force, the San Juan River Recovery Project and the U.S. Department of Energy's voluntary reporting of greenhouse reductions.
• SJGS installed a new $75 million pollution control system using limestone oxidation process in 1998.

SJGS has received state, national, international and industry recognition for its environmental management practices. In 2000, an independent auditor certified SJGS's environmental management system to international ISO 14001 requirements, and the plant was one of two coal-fired plants to be recognized nationwide as a member of the Environmental Protection Agency's National Performance Track.

In 2002, SJGS was recognized with a Green Zia award by the NMED and was a finalist for the Edison Electric Institute Edison Award, an industry award for excellence and innovation, for its proven commitment to environmental initiatives. This spring, SJGS was named to Greenbiz.com, which recognizes organizations that have voluntarily reduced their environmental impacts through initiatives such as preventing pollution, eliminating waste and using energy, water and other resources more efficiently.

PNM is the principal subsidiary of PNM Resources, an energy holding company based in Albuquerque. PNM provides electric utility service to 387,000 customers and natural gas service to 450,000 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.

SJGS is a 1,798-megawatt coal-fired power plant located 15 miles northwest of Farmington, N.M. The plant is PNM's primary generation source, providing 6058 percent of the power needed by PNM customers. PNM operates the plant on behalf of the company and eight other owners.