News Release

Mar 15, 2006

PNM Welcomes First Solar Customer in New Program

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

Albuquerque: PNM today welcomed its first participant into an innovative new program that pays customers with solar photovoltaic (PV) systems for the environmental benefit they create when they generate electricity.

Marlene Brown, president of the New Mexico Solar Energy Association, will begin receiving payments for the environmental benefits created by her rooftop solar PV system, at a rate of 13 cents every time it generates a kilowatt-hour (kwh) of electricity. Brown’s 1.2 kilowatt (kW) system produces about 180 kWh a month on average.

Participating customers also save 7.5 cents on their PNM electric bill every time their system produces a kWh of electricity – for a combined net value of 20.5 cents per kWh.

“We’re proud to offer this program to our customers with solar PV systems as a way of helping them recoup some of the cost of their systems, while they help us bring the benefits of additional renewable energy into our system,” said Jeff Sterba, PNM chairman, president and CEO. “The environmental benefits of solar energy will be shared by all PNM customers because they will help meet the demand for electricity without consuming water or creating air emissions.”

By providing education to customers interested in installing solar PV systems, NMSEA plays a key role in the success of the new program. “This is an exciting time for solar and for New Mexico and NMSEA is proud to be a part of this effort,” said Brown. The New Mexico Solar Energy Association is dedicated to promoting solar energy and related sustainable practices. More information can be found at http://www.nmsea.org.

The New Mexico Public Regulation Commission approved the PNM solar PV program in December, and PNM began accepting applications March 1. As of today, 22 customers have applied to participate in the program. The new program will run for 12 years, and PNM anticipates signing up about 45 new customers each year.

By year 12 of the program, PNM projects that the program will have brought the same environmental benefit as a 1.2 megawatt (MW) solar generating facility; at a fraction of the cost: The program cost is $2.8 million, a 1.2 MW facility would cost about $7.8 million.

PNM currently owns a 6.2 kW solar PV system and plans on installing an additional 25 kW of solar capacity later this year. PNM also purchases all of the electricity generated at one of the largest wind facilities is the world, the New Mexico Wind Energy Center. PNM customers may purchase wind energy through PNM Sky Blue™. For information about PNM renewable energy programs, visit PNM.com.