News Release

June 30, 2008

PNM NEWS News releases Financial news Contact PNM

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

OTHER COMPANIES' CONTACTS Teresa Souza, El Paso Electric Telephone: (915) 543-5823 Wes Reeves, Xcel Energy Telephone: (806) 679-7773 Jim Van Someren, Tri-State Telephone: (303) 254-3132

State's Four Major Utilities Partner on Solar Project

Albuquerque: New Mexico's four largest electricity providers have partnered to bring the first large-scale, commercial solar generating plant to the state.

El Paso Electric, Xcel Energy, PNM, and Tri-State Generation and Transmission Association today jointly issued a request for proposals (RFP) seeking detailed proposals from solar developers for the construction of a solar parabolic trough generation facility to provide solar electricity to each of the utilities by 2012.

The RFP outlines several requirements that a successful bid would have to meet, which include:

• The facility must be located within New Mexico.
• The facility must use parabolic trough technology.
• Thermal energy storage is encouraged.
• The facility must be able to deliver between 211,000 and 375,000 megawatt-hours (MWh) per year (enough to power between 29,000 and 52,000 average New Mexico homes).

"Each of the utilities has shown tremendous leadership by coming together as partners for renewable energy," said Pat Vincent, PNM Utilities President. "The four of us directly or indirectly provide electricity to almost every customer in the state."

The RFP follows a feasibility study commissioned by the utilities last year. The study, performed by the Electric Power Research Institute (EPRI), found that the most feasible solar technology currently available for a large-scale New Mexico plant is parabolic trough. This technology utilizes a series of trough-shaped mirrors to focus sunlight onto an oil-filled tube, and then uses the hot oil to generate steam. The steam is used to turn a generator, producing electricity. When combined with thermal energy storage, this solar technology is capable of generating electricity at night as well as during cloudy periods.

If a viable project emerges from the RFP process, the utility partners expect to have a contract negotiated by the end of 2008, and energy from the project could be serving New Mexico customers by the end of 2011 pending regulatory approvals.

Parties interested in submitting a proposal can learn more about the RFP process at pnm.com/rfp.

About El Paso Electric
El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 357,000 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico. EPE has a net dependable generating capability of 1,503 MW. EPE's common stock trades on the New York Stock Exchange under the symbol EE.

About Xcel Energy
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

About PNM
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.

About Tri-State Generation & Transmission
Based in Denver, Tri-State is the wholesale power supplier to 12 member electric cooperatives in New Mexico, 18 in Colorado, eight in Wyoming and six in Nebraska, which in turn provide electricity to more than 588,000 meters or a population of approximately 1.4 million end-use consumers.