News Release

Sept. 1, 2003

Price of Electricity To Drop 4 Percent Starting Today

PNM NEWS News releases Financial news Contact PNM

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

Albuquerque: In the face of rising gasoline prices and other cost-of-living increases, PNM electric customers can look forward to smaller electricity bills as a planned 4 percent rate decrease goes into effect today.

The rate decrease is the first of a two-part reduction resulting from a stipulated agreement approved by the New Mexico Public Regulation Commission in January. The agreement, which was negotiated with staff of the PRC, Attorney General Patricia Madrid and other parties, also includes a second rate decrease of 2.5 percent set to happen Sept. 1, 2005.

The rate decrease will apply to all electricity used on or after Sept. 1 and will be fully reflected in October bills. All PNM customer groups, from residential to both small and large businesses, will see the benefits of the two-step, 6.5 percent rate reduction.

"We are not only pleased to pass this cost savings to our customers, we are proud to be able to do it," said Cindy McGill, PNM Vice President of Customer and Market Services. "The rate reduction is possible because PNM has been successful in increasing efficiency and decreasing its cost of doing business. This saves customers money at the same time that they enjoy a record level of electric reliability."

PNM last year was found to have the most reliable electric service in the nation, according to the Edison Electric Institute.

When the 2005 rate decrease combines with the present decrease, retail prices for electricity will be what they were for PNM customers back in 1982. Under the stipulated agreement, the lowered rates will remain in effect until Jan. 1, 2008.

With the new rates, the average residential PNM electric bill will drop from $47.16 to $45.28 – an average savings of $1.88 per month. Combined with the next rate reduction coming Sept. 1, 2005, the average monthly savings will grow to $3.07 a month. PNM has not had an electric rate increase in more than 17 years, while lowering residential rates by more than 17 percent since 1994.