News Release

Aug. 28 , 2006

PNM Reports on Environmental, Community, Economic Performance

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

Albuquerque: PNM's second sustainability report, which details the company's 2005 performance and progress on environmental, community and economic development efforts, is now available at PNM.com.

The report covers the company's goals and actions to reduce air emissions from power plants, efforts to reduce waste streams and use of freshwater, and to expand renewable energy, as well as information on PNM's commitments to the communities it serves and the programs and activities it undertakes to strengthen the state's economic base. PNM now posts the report to the community on an annual basis.

"PNM is committed to investing in and protecting New Mexico's natural assets - its people and its natural environment," said Jeff Burks, PNM Resources director of environmental sustainability. "Being transparent and reporting on our community activities and our progress towards meeting our environmental goals is a key part of the company's effort to build a sustainable business. We encourage people to download a copy of the report and let us now how you think we are doing."

The 55-page report contains information PNM's progress toward achieving its self-imposed environmental sustainability goals that include:

• Reducing air emissions
• Reducing waste streams
• Reducing freshwater use
• Promoting renewable energy.

PNM adopted environmental sustainability goals in late 2003 and is striving to achieve them by 2009.

The report also provides information about the company's numerous activities and programs to support the communities in which it does business. In addition, the report contains information about the company's financial performance.

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 427,000 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.