PNM Signs 10-Year Power Deal with the City of Aztec, N.M.

ALBUQUERQUE, N.M. -- PNM Resources' (NYSE: PNM) largest utility, PNM, will provide the City of Aztec in northwest New Mexico the majority of its power needs for the next 10 years, according to an agreement recently approved by city officials.

The power sales are estimated to peak at 11 megawatts and will begin July 1, continuing through June 30, 2016. Located in the Four Corners region of New Mexico, the City of Aztec operates a public electric utility serving more than 7,000 residential and commercial customers. PNM will supply all of the city's power needs in excess of the hydroelectric power Aztec receives from the Western Area Power Administration, a federal power-marketing arm of the U.S. Department of Energy.

The agreement with the City of Aztec is the latest in a series of power contracts recently announced by PNM. Since November 2005, PNM has signed agreements to provide more than 260 megawatts of electricity to municipal utilities, the U.S. Navy in San Diego and APS, Arizona's largest electricity supplier. PNM's wholesale power strategy is to market energy to municipal utilities and other power suppliers throughout the Southwest and West under long-term contracts.

Background

PNM Resources is an energy holding company based in Albuquerque, N.M., with consolidated operating revenues of $2.1 billion. Through its utility and energy service subsidiaries, PNM Resources supplies electricity to 748,500 homes and businesses in New Mexico and Texas, and natural gas to 481,000 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Other subsidiaries include First Choice Power, a deregulated competitive retail electric provider in Texas, and Avistar, an energy research and development company. The company has generation resources of approximately 2,840 megawatts and sells power on the wholesale market throughout the Southwest. For more information, visit PNMResources.com.