Gas

New PNM plant in commercial operation

ALBUQUERQUE, N.M., June 27, 2002 — PNM Resources announced recently that the company’s newest generating plant is now fully operational. The simple-cycle, natural gas-fired facility is located in Lordsburg, in far southwestern New Mexico near the Arizona border.

The Lordsburg plant is the first built by PNM to serve the wholesale power market. The plant’s output will help PNM meet its obligation to Texas-New Mexico Power Company under a five-year contract. Under the terms of that contract, PNM is to provide Texas-New Mexico Power with 32 MW of power in 2002 and more than 100 MW annually in 2003 through 2006.

Another new PNM plant, the 135-MW, natural gas-fired Afton Generating Station near Las Cruces, N.M., is currently under construction and expected to be in commercial operation in September.

PNM Resources is an energy holding company based in Albuquerque, New Mexico. Its principal subsidiary is Public Service Company of New Mexico, which provides electric power and natural gas utility services to more than 1.3 million people in New Mexico. The company also sells power on the wholesale market in the Western U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM.