News Release

June 2 , 2006

PNM Celebrates Completion of Solar Generating Facility

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

Algodones: PNM today joined numerous officials from state and federal government, along with environmental advocates, to celebrate the completion of its new 25 kilowatt solar generating station in Algodones, N.M.

The facility is located near Interstate 25, between Albuquerque and Santa Fe, where it can be easily spotted by thousands of motorists who pass the site daily. The facility was specially designed to be eye-catching, in hopes that the facility will help elevate public interest in solar photovoltaic (PV) technology.

“While this facility has direct benefits to the environment by producing emission-free electricity, we expect its primary value will be helping to show that solar PV is not a technology of the future, but one that is viable now,” said PNM Senior Vice President Hugh Smith. “We hope this will encourage more of our customers to consider installing solar PV systems for their homes and businesses, and enrolling in PNM’s customer-owned solar photovoltaic program.”

Through its customer-owned solar photovoltaic program, PNM purchases renewable energy certificates from participating customers at a rate of 13 cents every time their interconnected solar PV systems generate a kilowatt-hour of electricity. There are currently 59 customers enrolled in the program, for a combined capacity of 113 kilowatts (AC) of solar energy. PNM estimates the program, combined with federal and state tax credits as well as payment for energy being sent onto the grid, reduces the cost of a typical residential solar PV system by more than 60 percent.

Several key officials and environmental advocates attended today’s celebration, including Karen Harbert, assistant secretary for policy and international affairs at the U.S. Department of Energy. Harbert’s office is the primary policy advisor to the secretary of energy and plays a lead role in implementing the National Energy Policy Act.

"Facilities like this reflect the increasingly important role renewable energy technologies are playing to enhance our nation's energy security," Harbert said. "Solar photovoltaic technology has made significant advances in recent years and is likely to become more and more prominent in the years to come. I commend PNM for helping to raise awareness of this technology."

PNM plans to make the facility available for group tours starting this fall. For information about scheduling a tour, call 241-2763.

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 426,000 customers and natural gas service to 481,000 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.