News Release

Sept. 24, 2005

Hurricane Damage to PNM Sister Utility on Texas Gulf Coast
Appears Minimal; PNM Crews Unlikely To Be Needed in Region

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

Albuquerque: With Hurricane Rita hitting the Gulf Coast further east than initial predictions, the damage to infrastructure owned and operated by PNM sister utility Texas-New Mexico Power Co. (TNMP) appears minimal at this point in time.

TNMP crews are still assessing the full impact to company infrastructure. TNMP provides electric transmission and distribution service to about 105,000 customers on the Texas Gulf Coast. Of that number, an estimated 20,000 customers were initially without power as a result of the hurricane, but power restoration was underway by mid-morning and that number is dropping. Evacuated TNMP employees are beginning to return to the area to help with power restoration. In addition, TNMP crews from other areas of Texas are being dispatched to the Gulf Coast to provide additional assistance.

With damage now appearing minimal, PNM is unlikely to send crews to help with power restoration. PNM had anticipated sending 62 employees to the area to help with power restoration. However, PNM could still send crews to the Gulf Coast in the next few days if requested by other utilities hit harder by Hurricane Rita.

PNM's call center will continue to take outage calls from TNMP customers until TNMP's call center in League City, Texas, is operational again.

PNM is the principal subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 413,000 customers and natural gas service to 471,000 customers in New Mexico. The company also sells power on the wholesale market in the Western U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's Web site at PNM.com.