News Release

April 03, 2008

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Pass the Fries – PNM Offers Rebates on Energy Efficient Commercial Gas Fryers and Water Heaters

Albuquerque: PNM now offers rebates to natural gas business customers to help them purchase energy-efficient gas fryers and water heaters.

“Our rebates make it easier to purchase equipment that will help you lower the natural gas bills your restaurant or business pays each year,” said Erick Seelinger, a PNM engineer who helped design the company’s energy efficiency program.

Dozens of fryer models from six manufacturers qualify for the ENERGY STAR label. The ENERGY STAR website, www.energystar.gov, lists qualified models and features an energy calculator to help estimate savings.

Ultra-high efficiency water (storage) heaters and demand water heaters (sometimes called instantaneous or tankless) also provide more value for your energy dollar.

Ultra-high efficiency water heaters use technology that creates the right mix of gas and air for optimal combustion and provides the greatest transfer of heat to the water. Energy savings can be up to 20 percent, depending on use, meaning some customers will pay around $723 less each year for natural gas. PNM offers a rebate of $2 per thousand British thermal units per hour (MBtu/hr), or $200 for a water heater with a rated heat input capacity of 100,000 Btu/hr. As with the gas fryers, the rebate and energy savings result in a two-year payback period for the additional cost of purchasing an energy efficient model that will go on to yield savings for years to come.

Demand water heaters use less energy because they have no storage tank, so energy is not wasted heating water while it is not being used. The PNM rebate amount for a qualified demand water heater is $1.50 per MBtu/hr, or a $150 rebate for a heater with a burner rated at 100,000 Btu/hr. Demand water heaters can be 24 to 34 percent more energy efficient than conventional storage tank water heaters for businesses that use less than 50 gallons per day, according to Seelinger. He recommends consulting a commercial plumbing professional to determine which type of water heater is right for your business..

To research water heater models and manufacturers, visit the Gas Appliance Manufacturers Association website, www.gamapower.org/water.php.

“If you are replacing aging equipment, consider energy efficient models. With natural gas prices rising, this makes more economic sense than ever,” said Seelinger.

To qualify for a PNM rebate, businesses must be non-transportation PNM customers receiving gas service under PNM Rate 54 or PNM Rate 56. For complete information about program requirements, qualifying equipment and to download a rebate application, 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 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.