News Release

Sept. 29, 2005

Rising October Natural Gas Price Underscores Importance of Weatherizing Now

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

Albuquerque: While temperatures have dropped in New Mexico, PNM customer consumption of natural gas in October is generally low – a perfect time to weatherize before freezing temperatures hit and bills begin to rise substantially.

PNM today notified state regulators the October price of natural gas will be $1.10 per therm, resulting in an average residential bill of $46.78, a 46 percent increase from the October 2004 average residential bill of $32.14, when the market-driven price was 59 cents per therm.

By law, PNM purchases natural gas on behalf of its 471,000 customers and passes the cost along to customers without adding a profit. This winter, the cost of natural gas is expected to comprise more than 70 percent of the average residential bill, state-regulated PNM delivery fees about 20 percent, and taxes and government fees about 10 percent.

PNM officials say the price for October does not reflect the full impact of recent hurricanes in the Gulf Coast region and that prices are expected to climb higher this winter.

Now is the time to begin weatherization

Customer consumption of natural gas in October is low compared to the subsequent five months. Residential customers typically use 26 therms of natural gas in October, 45 therms in November, 102 therms in December, 131 therms in January, 127 therms in February and 96 therms in March.

"This is the perfect time to begin to weatherize," said PNM Vice President Cindy McGill. "A few hours and dollars spent changing furnace filters, weather-stripping doors, caulking crevices around windows and installing a programmable thermostat will pay substantial dividends this winter."

PNM is offering customers a free, bilingual DVD that includes eight weatherization videos. To order the DVD, customers can call PNM at (505) 246-5700 in Albuquerque or (800) 687-7854 statewide. They may also request it online at PNM.com.