News Release

May 12, 2010

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

PNM Resources: New Senate Energy and Climate Bill Critical Next Step

Albuquerque: The following is a statement from Jeff Sterba, chairman of the PNM Resources (NYSE : PNM) Board of Directors, regarding legislation released today by Senators John Kerry (D-MA) and Joseph Lieberman (I-CT):

"We commend Senators Kerry and Lieberman for releasing legislation to address what we and many others believe is a pressing environmental and economic risk facing the nation. We also commend Senator Lindsey Graham for his valuable contributions on this issue.

The triple challenge of creating new jobs, securing our energy supply and reducing carbon emissions deserves a comprehensive approach like the Kerry-Lieberman bill. While we are still studying the specifics of this bill, we strongly believe that federal legislation, if crafted correctly, can address those challenges while keeping energy affordable for customers.

Our primary focus is to ensure there is an appropriate transition mechanism so the impact on our customers' electric bills can be minimized, particularly in the near term when there are limited actions that can be taken to reduce carbon emissions that won't significantly increase costs to consumers, while establishing a pathway to a low-carbon future.

The Kerry-Lieberman bill is an important and constructive step forward, and we hope the U.S. Senate can reach broad, bipartisan consensus on these significant issues."

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to about 500,000 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.