PNM Statement Regarding Fatal
Accident at Utility Demonstration

Oct. 17, 2006

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

PNM has learned from the New Mexico Environment Department's Occupational Health and Safety Bureau that one of the two workers injured during a utility conference demonstration this morning has died of his injuries and the other remains seriously injured.

"We are deeply saddened by this tragic accident and our heartfelt sympathies go out to the families and friends affected," said Jeff Sterba, chairman, president and CEO of PNM Resources. "We are all hoping that the second injured worker will make a full recovery."

"Although we did not know this man personally, we do feel a kinship with him as a fellow utility professional. This tragedy is a solemn reminder to us of the dangerous work in which many of our employees are engaged, and how important it is for us to keep safety our highest priority at all times."

PNM linemen, since learning of the tragedy, have taken up a collection to benefit the family of the deceased.

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.