News Release

Aug 29, 2007

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

PNM Programs Put the Power to Save
in Customers’ Hands

Albuquerque: PNM received approval from the N.M. Public Regulation Commission (PRC) to offer a variety of electric energy efficiency programs designed to put the power to save money and energy in the hands of its electric customers.

“To encourage our customers to reduce energy use, we offer simple ways people can participate and save money, while creating a cost-effective energy resource,” said Pat Vincent, PNM Resources utilities president. “When you use less energy, you also reduce your impact on the environment.”

The new programs will be launched this fall, starting with a refrigerator-recycling program. When purchasing a new refrigerator, many people keep their older one, which was typically manufactured before current energy efficiency standards were put into place. Getting rid of that inefficient second refrigerator can save an estimated $100 annually on electric bills. PNM will offer free pick-up, environmentally responsible recycling and a $30 rebate.

PNM will work with retailers throughout its service territory to promote the sale of compact fluorescent lights (CFLs) through discounts. Because CFLs use 75 percent less energy, replacing 10 incandescent bulbs with 10 CFLs could shave $41 a year off a residential electric bill. The average PNM electric bill is $52 per month.

Vincent said energy efficiency measures like switching to CFLs or getting rid of an old refrigerator continue to yield savings on electric bills not just this year, but in the future.

The new PNM programs also include a $500 rebate for builders who build ENERGY STAR®-certified homes, a free program for low-income customers to install energy-saving measures in their homes, a rebate program for customers who use energy-efficient advanced evaporative coolers and a load management program. The latter is a cost-effective approach used by many utilities to reduce demand when temperatures rise and the need for electricity is at its peak. PNM customers will get a rebate for voluntarily participating next summer. The program works by allowing the utility to signal refrigerated air units and non-critical business equipment to cycle on and off briefly, lowering demand on the system without significantly affecting comfort or interfering with business processes.

The Sierra Club will partner with PNM to pilot a CFL-exchange and energy efficiency education program for students in Albuquerque and Santa Fe, an idea that came from an informal PRC workshop on energy efficiency held in May. The PRC also asked PNM to work with Community Action New Mexico on an additional low-income program proposal for inclusion in its 2008 energy efficiency filing.

The company will recover the cost of the energy efficiency programs through a 1.27 percent charge on monthly bills. The surcharge will cover PNM’s costs of running the programs and nothing more.

“It is important to start saving energy because over the next decade several factors combined are expected to have a significant impact on energy bills in New Mexico and across the country, including the rising cost of fuel, steel, cement and copper, and increased demand for energy and the corresponding need to build power plants,” Vincent said.

Together, PNM customers who participate could save 26 million kilowatt-hours over the useful life of the measures they take in just one year, enough to power 3,632 average PNM homes. Producing that much energy today creates CO2 emissions roughly equivalent to that created by 3,200 cars in a year.

Over the next four years, the load management program could make nearly 63 megawatts of power available for PNM customers for roughly 60 percent of what it costs to produce or purchase a megawatt on a hot afternoon. The program will help to slow the rate of growth on the PNM system.

“We are just beginning to explore the potential of energy efficiency measures to help our customers. There are real challenges ahead. Energy efficiency programs won’t eliminate price increases or the need to build new power plants, but slowing growth could help us delay the need for new plants and help us continue to reduce our impact on the environment,” said Vincent.

PNM developed the programs with input from public and private organizations and is working with experienced contractors to deliver them. The programs will be rolled out in the next six weeks.

PNM residential gas customers can take advantage of rebates on insulation right now. For information, call 1-866-REBATES or visit PNM.com/rebates.

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to more than 487,000 customers and natural gas service to 492,000 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.