News Release

March 1, 2007

COST OF NATURAL GAS March 2007 Per Therm Cost of Gas: 86 cents Estimated Use: 86 therms Estimated “Average” Bill: $110.48 March 2006 Per Therm Cost of Gas: 81 cents Actual Use: 84 therms Actual “Average” Bill: $102.19 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 Use: 101 therms Actual “Average” Bill: $128.52   By law, PNM passes the cost of natural gas onto the customer without any mark-up.

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

Milder Weather Could Bring Lower Heating Bills
Energy Efficiency Rebates, Bill Assistance Still Available

Albuquerque: Milder weather could bring lower heating bills for March, despite higher natural gas costs.

The per-therm cost of gas for March is about 86 cents. PNM estimates the “average” customer will use 86 therms and pay around $110, down from an estimated average February bill of $127.

“However, we continue to reach out to help our customers manage their fuel bills,” said Terry Horn, PNM vice president for customer and market services.

Horn said it is not too late for low-income customers to apply for help with this winter’s heating bills. This is also a good time to take advantage of rebates for energy-saving home improvements that could save PNM customers money next winter.

Depending on the size and condition of their homes, and their energy use, PNM estimates that residential gas customers can save up to $150 per season for properly insulating and sealing air leaks, in addition to receiving up to $500 in rebates from PNM. The company also offers rebates for installing a water-heater wrap or an Energy Star-qualified programmable thermostat available at local hardware stores or from participating contractors. Details are posted at PNM.com/rebates or by calling 1-866-REBATES.

Despite the cold, PNM says fewer customers applied for heating assistance this year. Funds are still available and it is not too late to apply for help through the Low Income Energy Assistance Program (LIHEAP). Those who are eligible can also receive up to $180 through the PNM Good Neighbor Fund.

PNM encourages customers having trouble with bills to call now to discuss a payment plan to protect them from accumulating bills that become insurmountable.

By law, PNM passes the cost of natural gas onto customers without any mark-up.

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.