News Release

June 30, 2009

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NEWS MEDIA CONTACT Don Brown Telephone: (505) 241-2882

New PNM Rates Take Effect in July

Albuquerque: New electric rates take effect in July for PNM customers in Bernalillo, Santa Fe, Valencia and Sandoval counties and for customers in Clayton, Deming and Las Vegas, N.M. Among other things, the new rates reflect the addition of new power sources to serve PNM customers and higher interest costs.

The average residential customer, who uses 600 kilowatt-hours a month, will pay about $2.33 more a month. Business and commercial customers also may see a rate increase that varies by customer class, although some may experience no change or have a slight decrease.

The new rates will be reflected on bills printed beginning July 1. Even with the increase, PNM electric rates remain significantly below the regional and national averages. “Maintaining energy affordability for customers is a key focus of our company,” said Pat Vincent-Collawn, PNM president and chief operating officer.

PNM has asked state regulators for permission to pass along to these customers, over a three month period, a credit for lower than forecasted fuel costs for the past year. If approved by the PRC, an average residential customer using 600 kWh a month would receive a credit of about $1.67 per month on each of the three monthly bills following PRC approval. This would help offset the increase for that period of time.

The credit would appear in a line on PNM bills called the “Fuel & Purchased Power Adjustment,” which reflects the cost of fuel to produce electricity and to purchase power to serve customers. It is reviewed regularly to ensure it matches up with the actual cost of fuel and purchased power. If the charge was higher than the actual cost, customers are credited the difference. Fuel prices, especially the cost of natural gas, dropped since July 2008. The fuel charge will be adjusted again next July.

The new rates do not affect customers in Silver City, Lordsburg, Bayard, Alamogordo, Tularosa and Ruidoso, communities formerly served by TNMP, where a previous order set rates. However, all PNM customers, including residents of those communities, can participate in PNM rebate programs to help lower energy usage and manage their monthly bills.

PNM’s energy efficiency offerings also are being expanded. In July, business and commercial customers will be able to take advantage of new PNM energy efficiency programs, including a refrigerator recycling program and more rebates for efficiency steps they take in both new and existing buildings. The expanded programs also include new programs to assist customers living on fixed or limited incomes. While PNM’s suite of energy efficiency programs will cost about $14 million annually, they have the potential to save up to $40 million over their lifetime. The new programs will add a minimal amount -- .6 percent – to all customers’ bills beginning in August.

Rates for PNM customers in Bernalillo, Santa Fe, Valencia and Sandoval Counties and for customers in Clayton, Deming and Las Vegas, N.M. will go up again in April 2010. That increase will be about $2.66 a month for the average residential customer.

For information about PNM rebate programs or your PNM bill, call 1-888-DIAL PNM (1-888-342-5766) or 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 497,000 retail 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.