News Release

Jan. 3, 2007

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

Good News: Cost of Natural Gas Drops for January
PNM Says Cold Weather Could Keep Usage Up

Albuquerque: PNM says the cost of natural gas has dropped, but cold winter weather could still mean high consumption in January.

Natural gas will cost a little over 79 cents per therm this month, 8.4 percent less than last month and 18.8 percent lower than last January. PNM estimates that the “average” residential customer will use 108 therms and pay $127.78 in January, versus $130.62 last month and $178.04 last January.

The drop in price was caused by warm temperatures in other parts of the country that reduced demand for natural gas. By law, PNM passes on the cost of natural gas to its customers without any markup.

Still, this winter has been a cold one for New Mexicans. PNM advises customers who may be struggling to pay winter heating bills to take advantage of programs designed to help.

The Salvation Army helps low-income and senior citizens with winter heating bills through the PNM Good Neighbor Fund, a fund supported by PNM employees, customers and shareholders. Help is also available for eligible New Mexicans through the Low Income Home Energy Assistance Program known as LIHEAP. Apply for LIHEAP at any New Mexico Department of Human Services office. Call (800) 283-4465 to find the nearest location.

The amount of LIHEAP assistance available this year is significantly less than last year, which means the average grant per household is less. PNM is encouraging the New Mexico Legislature to consider a long-term state funding mechanism for LIHEAP to help assist the estimated 180,000 New Mexican households that may be eligible for the program.

Regardless of funding levels, those who apply and are qualified for LIHEAP by the NM Department of Human Services are protected from having their gas or electric service disconnected during a moratorium that lasts from November 15 and March 15.

To help customers avoid having all their winter heating bills come due at once when the moratorium ends, PNM customer service representatives can also discuss individual payment plans.

For information about available winter heating assistance, call PNM at (505) 246-5700 or (800) 687-7854 outside of the Albuquerque metro area.

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.