News Release

Nov. 30, 2005

December Natural Gas Bills Rise; PNM and Ace Hardware Stores Offer Customers
50 Percent Off Select Weatherization Products

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

Albuquerque: As expected, December natural gas bills for PNM customers will be substantially higher than last year, reinforcing the importance of weatherization as customer consumption more than doubles heading into the final month of the year.

The cost of natural gas in December will drop to 95 cents per therm, down from the November price of $1.14 per therm. But significantly higher consumption will mean higher customer bills. The average residential natural gas bill for December is expected to be $137.86, a 27 percent increase from the December 2004 average residential bill of $108.40, when natural gas cost 69 cents per therm. By law, PNM purchases natural gas on behalf of its customers and passes the cost along without adding a profit.

The average residential customer uses 102 therms of natural gas in December, compared to 45 therms in November.

“Now is when weatherization can begin to make a big difference,” said PNM Vice President Cindy McGill. “Customers can reduce their consumption by up to 25 percent by doing two simple things: turning thermostats down eight degrees when they are sleeping or away from the house, and weatherizing windows, doors and any other openings to keep warm air in and reduce drafts.”

The market price of natural gas has moderated in recent weeks, but PNM still believes heating bills will be substantially higher this winter than they were last year. Customers of natural gas utilities throughout the country face a similar predicament this winter, McGill said.

To encourage customers to invest in weatherization, PNM and participating Ace Hardware stores throughout New Mexico have teamed to offer PNM customers 50 percent off silicone sealant, foam outlet gaskets, rope caulk, insulating pipe wrap and shrink film window kits. A coupon for the discount is available in December PNM bills in the Energy Works bill supplement. Certain limitations apply.

Visit PNM.com/toolkit for energy saving tips and other helpful information.

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 419,000 customers and natural gas service to 470,000 customers in New Mexico. The company also sells power on the wholesale market in the West. 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.