News Release

June 6, 2005

PNM Resources Welcomes 49,000 TNMP Customers in Southern New Mexico

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Albuquerque: With its purchase of the parent company of Texas-New Mexico Power Co. (TNMP) now complete, PNM Resources (NYSE: PNM) is pledging rate reductions and continued service quality and community engagement to TNMP's 49,000 new electric customers in Southern New Mexico.

TNMP serves customers in and around the communities of Ruidoso, Alamogordo, Lordsburg, Silver City and Bayard.

"As a New Mexico-based company, we are proud to have the opportunity to serve an even greater number of the state's residents and businesses," said PNM Resources Chairman, President and CEO Jeff Sterba. "This acquisition will bring rates down significantly for TNMP electric customers and give us an opportunity to build upon both companies' traditions of employee engagement in the communities we serve."

PNM Resources today completed its purchase of Texas-based TNP Enterprises, which owned TNMP. TNMP is now a subsidiary of PNM Resources, which also owns PNM, New Mexico's largest electric and gas utility.

The acquisition will save New Mexico electric and gas customers $64.3 million in the coming years. TNMP customers will have new, lower rates beginning in 2006, saving those customers $53 million over five years. Residential rates will decrease by 16 percent in three phases, saving the average customer $120 per year once the new rates are fully implemented. Business customers will see a reduction in rates ranging from 15 percent to 19 percent.

An additional benefit for TNMP customers is that the new, lower rates will remain in effect through 2010, adding price stability to bills for five years in a time when energy costs are rising.

The acquisition will not affect a planned electric rate reduction of 2.4 percent for PNM customers beginning in September. That reduction is the second reduction under the terms of a rate agreement approved by the New Mexico Public Regulation Commission (PRC) in 2003.

PNM Resources' purchase of TNP Enterprises will also result in modest savings for PNM's 413,000 electric customers and 471,000 natural gas customers. PNM customers will receive $11.3 million in credits during the coming years as their share of savings from combining certain administrative functions of the two companies. The credits for PNM natural gas customers, totaling $4.3 million, will be passed along through an existing credit line item on customers' monthly bills. This credit, less than 10 cents per month for the average residential customer, will begin to show up in customer bills in July. PNM electric customers will begin receiving their credits, totaling $7 million, once an existing rate freeze expires in early 2008.

As part of its purchase of TNP Enterprises, PNM Resources will now have customers in Texas for the first time. TNMP provides transmission and distribution services for 207,000 customers in Texas. First Choice Power, another TNP subsidiary purchased by PNM Resources, is an electric retail provider in Texas and serves 219,000 customers throughout that state. Many of the same customers are served by both TNMP and First Choice Power.

PNM Resources' acquisition of TNP Enterprises, announced in July 2004, was approved by the PRC, the Texas Public Utilities Commission, the Federal Energy Regulatory Commission, the Federal Trade Commission and the U.S. Securities and Exchange Commission.

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with consolidated operating revenues of $2.3 billion. Through its utility and energy service subsidiaries, PNM Resources supplies electricity to 725,000 homes and businesses in New Mexico and Texas and natural gas to 471,000 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Other subsidiaries include First Choice Power, a deregulated competitive retail electric provider in Texas, and Avistar, an energy research and development company. PNM Resources and its subsidiaries also sell power on the wholesale market in the West.