Regulators Approve Renewable Energy Program

ALBUQUERQUE, N.M. -- - PNM Resources (NYSE: PNM) utility subsidiary PNM plans to offer electric customers the opportunity to purchase renewable energy beginning in October. The proposed "PNM Sky Blue" program was recently approved by the New Mexico State Public Regulation Commission.

PNM Sky Blue will allow residential customers to purchase renewable energy in blocks of 100 Kilowatt-hours (KWh) for an additional charge of $1.80 per 100 KWh on the customer's monthly bill. Participating customers can choose to buy one or more blocks of renewable power each month, or set their purchase at 90 percent of their total monthly consumption.

Large business customers may also participate in the program by paying the 1.8 cent-per-kilowatt-hour rate for renewable energy. They would purchase the energy as a proportion of their overall electric usage rather than in blocks. A large business could select to purchase renewable energy equal to 1 percent, 2 percent, 3 percent, 5 percent, 10 percent, 50 percent or 90 percent of its overall electric monthly usage.

"PNM Sky Blue is designed to give customers committed to the environment and quality of life an easy and affordable way to demonstrate that commitment," said Joanne Reuter, PNM vice president of regulatory affairs.

Electricity for PNM Sky Blue will come from the New Mexico Wind Energy Center, a 204-megawatt facility near House, N.M. The wind center -- the world's third largest wind generation facility -- can generate enough electricity to supply 94,000 average-sized New Mexico homes.

PNM Resources is an energy holding company based in Albuquerque, N.M. PNM, the principal subsidiary of PNM Resources, serves about 450,000 natural gas customers and 390,000 electric customers in New Mexico. The company also sells power on the wholesale market in the western United States. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information about our company, see our Web site at www.pnm.com.