News Release

June 26 , 2008

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

PNM Offers Programs to Help When Energy Costs Rise With the Temperatures

Albuquerque: Demand for electricity is at its peak on hot summer afternoons when utility customers everywhere seek relief from the heat by turning down thermostats and cranking up cooling units. Because utilities and their customers pay more for electricity when demand rises, PNM offers these programs to help customers save:

• CFL Discounts: PNM provides lighting discounts for compact fluorescent bulbs with many retailers in its service territory, making it cheaper to purchase CFLs. Not only do CFLs use 75 percent less energy and last ten times longer than traditional bulbs, they burn cooler, reducing a source of heat as customers are trying to cool their homes and businesses. Find a list of retailers at PNM.com/cfl.
  
  
• Refrigerator Recycling: Because an older refrigerator can cost more than $175 to run per year, PNM pays electric customers $30 and provides free pickup of the old unit. The PNM program also assures that the old unit will be disposed of properly to protect the environment.

Other simple steps that can help reduce energy use in the home include:

• Keep the thermostat at 78 degrees while home, 85 degrees while away.
• Use fans to help circulate air and feel cooler.
• Use a power strip for electrical appliances such as televisions and computers. Turn off the power strip when not using.
• Remove battery-powered rechargeable devices from their docks after charging and do not leave cords plugged in.

Businesses can find additional programs and information designed to help them reduce energy use at PNM.com/save. Nonprofit organizations can find information about PNM Foundation grants of $2,500 each to fund projects that reduce their energy bills at PNM.com/foundation.

PNM Power Saver: PNM initiated a program that rewards customers for helping to lower energy use at peak demand times, typically hot summer afternoons. Residential and small business customers with central refrigerated air conditioning receive $25 when they sign up and an additional $25 each year they participate. A small device is attached to the refrigerated air unit. When load reduction is required, a radio signal is sent to a device attached to the unit that powers down the compressor while the fan continues to run, typically in 15-minute increments. Most customers will not notice the slight, temporary change in temperature. Customers who do not participate in the program also benefit because the cost of the program is less than the cost of purchasing power when it is most expensive. For more information or to sign up, visit PNM.com/powersaver.

Intense competition for the raw materials needed to create electricity and the need to update and expand the nation’s electric infrastructure have been driving the costs of providing electricity up. Following a trend that is occurring nationwide, PNM this spring finally raised its electric rates after nearly 20 years.

PNM’s new rates encourage energy efficiency by putting a premium on high-cost energy decisions. The new rates are higher during the summer, when electricity is most expensive to provide, and the rate structure is designed so that customers who use the most electricity will pay higher rates than the average PNM customer. (Average customer use is 600-kilowatt hours a month.) Even with its most recent rate increase, PNM rates remain well below regional and national averages.

For more energy saving tips and to learn more about the new PNM electric rates, visit PNM.com.

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.