News Release

July 2, 2009

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Solar, Wind and Biogas Part of PNM Plan to Meet State’s Growing Requirement for Renewable Energy

Albuquerque: PNM plans to use a combination of solar, wind, biogas and purchases of renewable energy credits to meet the 2010 state requirement for renewable energy.

In a filing made yesterday with the N.M. Public Regulation Commission, PNM indicated those resources also will lay the groundwork for meeting a higher requirement in 2011. The 2010 requirement is that 6 percent of energy be generated from renewable resources. In 2011, it increases to 10 percent.

To meet that 10 percent requirement, PNM states in its filing that it is working to secure agreements to construct about 70 megawatts of combined wind and solar generation facilities to come online in 2011 – renewable facilities capable of producing enough energy to power about 28,000 average sized New Mexico homes. The company also is proposing PNM-owned solar installations that would be sited on customers’ property, with lease payments to the customers. Supplemental filings later this fall will outline details of many of the new projects.

One of the new proposed projects, which would use biogas in existing power-generation facilities, was announced earlier this year. The company would begin using biogas –fuel derived from the waste of livestock -- in its Luna Energy Facility in Deming if the proposal is approved. The project also is expected to provide benefits to the dairy and livestock industry in New Mexico.

Through both RFPs, PNM received more than 80 unique bid responses, the most the company has ever received. “The tremendous response we received through this process demonstrates the high level of interest in renewable energy,” said Pat Collawn, PNM President. “We are thrilled with the response and excited about what this means for New Mexico’s future.”

The proposals underwent a rigorous evaluation process which considered cost, resource diversification, engineering, environmental and site planning, team qualifications, credit-worthiness and the project’s contribution to electric reliability. From this evaluation process, 36 proposals─including wind, solar and other technologies─have been advanced to the next phase of evaluation.

“In the second phase of evaluation, we will look at several criteria, including cost, diversification and the project’s fit with PNM’s existing portfolio,” said Collawn. Following this second phase of evaluation and successful negotiation, PNM expects to submit the final projects as part of its renewable procurement plan later this year.

“Renewable energy projects like these are critical to our long term sustainability,” said Collawn. “We are aggressively seeking renewable energy to meet the state’s requirements, but also because it is the right direction for the company. Ultimately, we will choose those projects that help meet our customers’ growing energy needs and help the environment but do so in a way that minimizes the financial impact on customers.”

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.