News Release

Feb. 26, 2004

Natural Gas Bills Expected To Drop in March

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

Albuquerque: While the price of natural gas remains high, March in New Mexico should bring some relief to PNM's 450,000 natural gas customers.

The March price of natural gas, a pass-through for PNM, will be 64.34 cents per therm, up from the February price of 59.63 cents per therm but a few cents below the March 2003 price of 67.67 cents per therm.

Combined with lower consumption due to warmer weather, the average PNM residential natural gas bill in March is estimated to be $91.28. This is $20.74 below the average estimated February bill. March calculations assume average residential consumption of 96 therms for the month.

"March is typically the first month of the year when natural gas consumption begins to drop, providing some relief on the customer's monthly bill," said PNM Vice President Cindy McGill. "It is after March when we see a dramatic drop-off in consumption and an equally dramatic drop-off in monthly natural gas bills. That is something to which we can all look forward."

Market prices for natural gas have remained high throughout the winter due to sluggish production and demand driven by colder-than-normal weather nationwide. PNM purchases natural gas from dozens of producers in New Mexico and, by state regulation, passes the cost through directly to customers.