News Release

Nov. 30, 2005

Neighbors May Notice New Activity at Luna Energy Facility

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

Deming, NM: Neighbors of Luna Energy Facility, located just north of Deming, N.M., may notice new activity at the plant beginning next week as the plant undergoes preparation for full operation.

Beginning Monday, Dec. 5, contractors will begin steam cleaning the plant’s internal piping. This will involve blowing steam produced by the plant at high velocity through piping to remove weld slag, rust and any construction debris remaining in the lines. The steam-cleaning process will run 24 hours a day for about nine days.

A temporary silencer will keep the sound level at the property’s edge close to that of normal operation; however, the nature of the sound will be different.

“This is an important step in preparing the plant for commercial operation,” said John Myers, PNM vice president of power production.

This activity is part of the process of commissioning the plant, or getting it ready to begin producing electricity and sending it on to the electric grid. Commissioning will take several more months. The plant is expected to begin full commercial operation in May 2006.

Luna Energy Facility is a 570-megawatt, natural gas-fired power plant jointly owned by PNM, Tucson Electric Power Company and Phelps Dodge Energy Services. When fully completed, the plant will be operated by North American Energy Services and capable of producing enough electricity to supply 456,000 average-sized homes. Permanent operation is expected to add about $26 million to the local economy, including wages, services and products, and payment to local governments.

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.