News Release

Dec. 1 , 2006

Dropping Temperatures and Higher Cost of Gas
Mean December Heating Bills to Climb Sharply

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

Albuquerque: This week’s bitter-cold temperatures across the state combined with rising natural gas signal higher bills in December for PNM natural gas customers, and an increasing need for bill assistance among low-income customers.

PNM announced today that the cost of gas in December will climb 6 percent from last month to 87 cents a therm. By law, PNM purchases natural gas on behalf of its customers and passes the cost along without adding a profit.

The rising cost of gas combined with a projected increase in consumption from 43 therms in November to 103 therms in December, will result in an expected December bill of about $131 for the average residential customer.

“The cost of staying warm in the winter has increased significantly in recent years and many of our low-income customers really struggle to keep their bills paid,” said Terry Horn, vice president of customer service. “As energy bills rise we ask our customers who can to join us in helping our neighbors by donating the PNM Good Neighbor Fund, and our shareholders will match those donations dollar-for-dollar to help our low-income customers.”

PNM and KOAT-7 Promote ‘Puppet Pals’ to Help Low-income Families

New this year, people can purchase Puppet Pals to support the Good Neighbor Fund. For every $14.95 purchase (plus shipping and handling), about $10 will be donated to the PNM Good Neighbor Fund.

“The Puppet Pals are a great way for people to help fellow New Mexicans this holiday season” said Mary Lynn Roper, President and General Manager of KOAT-7, who has joined PNM in promoting Puppet Pals on the air. “KOAT-7 is proud to be a part of such a generous program that is helping less fortunate people in our state.”

Puppet Pals can be ordered at PNM.com or by calling (877) 766-1577.

There are three other ways customers can donate to the fund:

• Choose regular monthly donations determined by you that are included in your monthly PNM bill amount due.
• Select the round-up option, through which you authorize PNM to round up bills that are not a total dollar amount to the next dollar.
  • Example: A bill of $72.40 would be rounded up to $73; the extra 60 cents would be contributed to the fund.
• Write in the amount of your choice on the bill coupon you return with your PNM monthly bill payment.

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.