News Release

Sept. 11, 2003

PNM Supports Richardson Push for Legislative
Adoption of PRC Renewable Portfolio Standard

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

Las Cruces: A PNM official today said the company supports Gov. Bill Richardson's proposal to enact into law the state Public Regulation Commission's renewable portfolio standard.

"The governor has said he will ask the legislature to adopt a 10 percent renewable requirement for the state's utilities. We will support that effort," said Art Hull, of PNM Government Affairs, in testimony at a meeting of the legislative Interim Committee on Economic and Rural Development and Telecommunications in Las Cruces.

The Public Regulation Commission (PRC) last year passed a rule requiring investor-owned utilities to use renewable energy to meet 5 percent of customer electric needs by 2006 and 10 percent of customer needs by 2011.

"We believe legislation will bring greater certainty, so that utilities, their customers, and renewable energy developers have a common roadmap for growing the state's renewable energy industry," Hull said.

Hull said PNM will support codification of the 10 percent renewable portfolio standard as well as provisions to clarify cost recovery and establish a price cap to protect customers against unreasonable costs.

Hull also spoke to the committee about the role of economic incentives in the development of the New Mexico Wind Energy Center, a 204-megawatt wind generation facility located near House, N.M. PNM officials say both state and federal economic development incentives played a role in the creation of the facility. FPL Energy, of Florida, owns and operates the facility; PNM is purchasing all of its output.

The wind energy center is expected to have a $40 million positive economic impact on De Baca and Quay counties over the next 25 years. The facility will be dedicated Oct. 1.

Also on Oct. 1, PNM will launch PNM Sky Blue, a voluntary renewable energy program for residential and business customers recently approved by the PRC. At the end of the month, PNM will file a renewable plan with the PRC to lay out how the company plans to meet the renewable portfolio standard and offer more details on the company's plans for possible additional investment in renewable energy resources.