PNM Resources' Texas Utility Files for Rate Increase

ALBUQUERQUE, N.M.--(Business Wire)--
PNM Resources' (NYSE: PNM) transmission and distribution utility
in Texas, TNMP, has filed for an $8.7 million increase in revenues -
the first such request in more than 5 years.

If approved, new rates would go into effect in about one year and
includes a return on equity of 11.25 percent, based on a rate base of
$399.6 million and a revenue requirement of $162.9 million.

"Given the rising cost of poles, wire and other basic construction
materials, we believe this is a necessary request so that we can
continue to maintain and improve our system," said Pat
Vincent-Collawn, PNM Resources president and chief operating officer.

TNMP is a transmission and distribution service provider that
delivers power to residential and business customers in three
non-contiguous areas spanning more than 13,100 square miles. TNMP's
rates primarily cover the use of the transmission and distribution
system and meter-reading services, which account for less than 20
percent of a typical electric bill.

In its request to the Public Utility Commission of Texas, TNMP
also asked for permission to implement a catastrophe reserve fund
similar to those approved for other transmission and distribution
companies. Catastrophe funds help pay for a utility system's recovery
from natural disasters and acts of terrorism.

Once the rate case is finalized by the PUCT, TNMP may update its
transmission rates annually to reflect changes in its invested
capital. Updated rates would reflect the addition and retirement of
transmission facilities, including appropriate depreciation, federal
income tax and other associated taxes, and the approved rate of return
on such facilities.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2007 consolidated operating revenues from
continuing and discontinued operations of $2.4 billion. Through its
utility and energy subsidiaries, PNM Resources serves electricity to
more than 859,000 homes and businesses in New Mexico and Texas and
natural gas to more than 495,000 customers in New Mexico. Its utility
subsidiaries are PNM and Texas-New Mexico Power. Another subsidiary is
First Choice Power, a deregulated competitive retail electric provider
in Texas. With generation resources of approximately 2,700 megawatts,
PNM Resources and its subsidiaries market power throughout the
Southwest, Texas and the West. In addition, the company has a
50-percent ownership of EnergyCo, which owns approximately 920
megawatts of generation. For more information, visit
www.PNMResources.com.

For PNM Resources
Analysts
Gina Jacobi, 505-241-2211
or
Analysts & Media
Frederick Bermudez, 505-241-4831

Copyright Business Wire 2008