News Release

Nov. 30, 2004

Natural Gas Cost Remains Steady in December

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

Albuquerque: Though the price of natural gas in December will be similar to November's price, the monthly bills of PNM gas customers are expected to go up due to higher consumption.

PNM customers typically use twice as much gas in December as they do in November. The average residential usage for December is 102 therms; for November, it is 45 therms.

The December price of gas is 69.32 cents per therm, close to the November price (69.59 cents) but up significantly from the December 2003 price (48.65 cents). Based on expected average residential use of 102 therms in December, this will result in an average residential bill of $108.40, including franchise fee and gross receipts tax. Last December, the average residential bill was $79.27.

PNM purchases gas from every major supplier in New Mexico and uses a variety of techniques, including hedging, gas storage and fix-price gas contracts, to try to get the best market price for customers. Under state regulation, the cost of gas is a pass-through for PNM.

"We want customers to know that because market prices are expected to stay high for some time, it is never too late to weatherize their homes and help keep their bills under control," said PNM Vice President Cindy McGill.

To assist customers with weatherization, PNM's December EnergyWorks bill insert offers customers a free DVD that includes eight separate weatherization videos, in both English and Spanish. Those DVDs are available beginning Friday.

The December EnergyWorks also includes a coupon good for certain purchases at participating Ace Hardware stores throughout New Mexico. The coupon is good for 25 percent off programmable thermostats in stock or $5 off the purchase of weatherization products totaling at least $25.