News Release

Aug. 7, 2009

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PNM Seeks Major Expansion of Solar Photovoltaic Capacity

Albuquerque: In a boost for the New Mexico solar photovoltaic industry, PNM today asked for bids on the design and installation of four megawatts of new solar PV on its electric system – nearly triple what exists today.

“We understand the importance of local industry in making our state a renewable energy leader and fully expect that this plan will help grow the industry and create new, ‘green-collar’ jobs,” said Pat Vincent-Collawn, PNM president and CEO.

PNM is seeking permission from the N.M. Public Regulation Commission to launch a program in which PNM would own this solar capacity, but it would be sited on property owned by participating customers. PNM would pay participating customers lease payments in return for hosting a PNM-owned solar PV system.

“This program would provide a unique opportunity for customers who want to actively support the growth of the solar PV industry in our state,” Vincent-Collawn said.

PNM today issued a request for proposals for companies interested in designing, engineering, procuring, installing, testing and commissioning various sizes of solar PV systems as part of the program. The number of systems to be installed has not yet been determined, but PNM is proposing to have four megawatts of new capacity installed. There currently is about 1.4 megawatts of solar PV capacity on PNM’s system, almost all owned by individual customers.

Companies interested in bidding can get more information at www.pnm.com/rfp/solarpv. Proposals are due Sept. 1. PNM finalized the RFP after holding workshops with New Mexico solar vendors this week.

The proposed program, which is still being finalized, would complement PNM’s existing programs for customer-owned solar PV systems. PNM not only purchases excess renewable energy generated by customer-owned systems, but also pays customers for the environmental attributes associated with the renewable energy (known as a renewable energy credit). These RECs help PNM meet the state’s renewable portfolio standard.

PNM will file specific details of the program with the PRC this fall. PNM this fall also will announce details on plans to install more than 70 megawatts of new utility-scale solar and wind capacity to be in place in 2011.

Both of these projects are part of PNM’s plan to meet the state’s renewable portfolio standard, which is 6 percent of energy sales in 2010 and 10 percent in 2011. PNM is proposing a mix of programs that would allow it to meet the RPS and stay within the state’s limits on associated cost increases for customers, including a proposal to use biogas -- derived from the waste of livestock -- as fuel for an existing natural gas-fired power plant near Deming.

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.