News Release

Dec. 20, 2005

PRC Approves PNM Energy Efficiency Rebate Program

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

Albuquerque: The New Mexico Public Regulation Commission (PRC) today approved a program that will help PNM residential natural gas customers save money on products that will make their homes more energy efficient.

The program will give rebates for certain energy efficiency products that will help customers better manage their consumption of natural gas, the primary fuel used to heat homes and businesses in New Mexico.

The program will offer rebates for retail items such as programmable thermostats and water heater wraps, as well as rebates for contractor-installed services such as home insulation. PNM will provide customers with information on how to take advantage of the rebates when the program is launched in February.

"Natural gas has reached record high costs this winter, and we expect this cost to remain high for several years," said Cindy McGill, PNM vice president of customer and market services. "We hope this rebate program will help customers invest in energy efficiency so they can manage the increased cost of heating."

With today's PRC approval, PNM will finalize details of the program and plans to offer the rebates to customers beginning in February.

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 Western United States. 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.