News Release

Jan. 31, 2006

PNM Rebates Now Available for Energy Efficiency Measures

PNM NEWS News releases Financial news Contact PNM

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

SAVING NATURAL GAS HELPS THE ENVIRONMENT PNM expects the rebate program will save about 404,000 therms of natural gas per year. Saving one therm avoids the production of: 11.7 pounds of carbon dioxide .01 pounds of nitrogen oxide .00006 pounds of sulfur dioxide.

Albuquerque: Home weatherization just became an even smarter investment for PNM natural gas customers as the utility this week launches a suite of rebate programs aimed at promoting energy efficiency.

The rebates are available to all PNM residential natural gas customers to reduce the cost of certain weatherization products and measures and help customers reduce their heating bills through energy efficiency.

The program offers two kinds of rebates:

1. Retail rebates, with rebate forms available at participating retailers or at PNM.com, including:
• $10 back for the purchase of a water heater insulation blanket
• $25 back for the purchase of an ENERGY STAR® qualified programmable thermostat
  
2. Contractor rebates, for products installed by a participating contractor listed at PNM.com, including:

• 25 percent back (for as much as $500) on participating contractor-installed insulation and weatherization measures, including attic insulation, wall insulation, and ductwork leakage testing and sealing
• Contractor-installed efficiency products, including ENERGY STAR® qualified programmable thermostats ($40), hot water heater insulation blankets ($15), hot water pipe insulation ($5 for as much as 10 feet), and low-flow showerheads ($8).

While actual savings will depend on the size and condition of individual customers’ homes, most customers can expect to save money by participating in the program. For example, PNM estimates typical annual energy savings will be $150 or more for properly insulating and sealing air leak, $75 by using a programmable thermostat, and $25 for using a water heater blanket on water heaters older than five years.

February bills to remain high in February
The rebates become available as PNM announces its February price of gas of 88 cents per therm. While down from January’s price of 98 cents per therm, the average customer’s February bill is expected to be $159. This is 34 percent higher than last February when the average bill was $119.

“With the cost of natural gas higher than what we’re used to – and likely to remain high for the next few years – investing in energy efficiency is a very wise choice,” said Terry Horn, PNM vice president of Customer and Market Services. “By taking advantage of these rebates our customers can help reduce their heating bills for years to come.”

The rebate program will be funded by a $.0075-per-therm (3/4) of a cent) surcharge on residential natural gas bills, which will begin appearing on bills in April. The surcharge on the average monthly PNM natural gas bill will be about 44 cents.

More information about the energy rebate program is available at PNM.com/rebates, or by calling (866) REBATES.

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.