News Release

Jan. 31, 2007

FEBRUARY COST OF GAS February 2007 Per Therm Cost of Gas: 81 cents Estimated Use: 106 therms Estimated “Average” Bill: $127.32 February 2006 Per Therm Cost of Gas: 88 cents Actual “Average” Bill: $128.52 January 2007 Per Therm Cost of Gas: 79 cents Estimated “Average” Bill: $151.80 January 2006 Per Therm Cost of Gas: 98 cents Actual “Average” Bill: $142.11

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

With Temperatures Low, Gas Consumption is Up

Albuquerque: PNM says that despite the lower per therm cost of natural gas this year, cold weather is forcing heating bills up, leaving some New Mexicans financially out in the cold.

PNM estimates that customers used 26 percent more natural gas this January than last due to colder weather. This January the “average” residential heating bill may be an estimated seven percent higher than last January. February could bring “average” bills of about $127.32.

PNM estimates that the total average winter heating bill will be $570. However, help available for low-income families through the Low Income Energy Assistance Program (LIHEAP) this year is $124, down from an average $417 a year per household last year. The state legislature made a one-time allocation of $23 million for LIHEAP assistance last winter to supplement federal funds for LIHEAP, which made the higher level of assistance available.

“This is significant for low-income families, and for elderly and disabled customers living a fixed income, for whom heating costs take a proportionately larger share of their total income,” said Terry Horn, PNM vice president, customer and market services.

PNM is working with the state legislature to try to secure immediate and ongoing funding. PNM also joins with utilities across the country in urging Congress to maintain funding for FY07 LIHEAP at FY06 levels. To do so will require that $1 billion be added to the federal government’s continuing budget resolution.

Those who apply for LIHEAP and are qualified by the NM Department of Human Services are protected by a moratorium that delays potential gas or electric service disconnections through March 15. The lack of LIHEAP funding this year will make it all the more difficult for those families to catch up before the next heating season rolls around. PNM encourages its customers to discuss a payment plan to protect them from having a large bill coming due all at once.

For information about available winter heating assistance, including the PNM Good Neighbor Fund, call PNM at 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 435,000 customers and natural gas service to 487,000 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.