PNM Electric Rate Recommended Decision Issued

State Regulators Will Issue Final Order in May
ALBUQUERQUE, N.M.--(Business Wire)--
PNM Resources' (NYSE: PNM) New Mexico electric utility, PNM, will
receive a $24.2 million rate increase if regulators approve a
recommended decision issued late today by a N.M. Public Regulation
Commission hearing examiner.

The decision also recommends that commissioners reject a
fuel-adjustment clause that would allow the utility to recover higher
fuel and purchased-power costs needed to serve retail customers. The
recommendation is based on a revenue requirement of $556.3 million and
an authorized return on equity of 9.71 percent. The commission will
issue a final order regarding the electric rate case by May 7.

PNM had requested a $76.9 million rate increase, an ROE of 10.75
percent and a fuel-adjustment clause.

"We are still reviewing the hearing examiner's recommended
decision. But given a recommended base rate increase of one-third of
what we requested, and the disallowance of a fuel and purchased power
adjustment clause, the recommended decision is extremely disappointing
and potentially devastating for our primary subsidiary, PNM," said
Jeff Sterba, PNM Resources chairman, president and CEO.

"This recommended decision misses the mark of what is required of
us to raise the necessary capital to provide the safe and reliable
service our current and future customers expect and deserve. It
also limits our ability to invest in the renewable power we believe
our customers want us to develop," Sterba said. "If left to
stand, this recommended decision would undermine our ability to meet
the growing demand for energy in a manner that prepares New Mexico for
the future."

The recommended decision is available at
www.pnmresources.com/investors/regulatory.cfm.

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
approximately 835,000 homes and businesses in New Mexico and Texas and
natural gas to nearly 492,000 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 more than 2,650 megawatts, PNM
Resources and its subsidiaries market power throughout the Southwest,
Texas and the West. In addition, the joint venture in which the
company has a 50-percent ownership owns approximately 920 megawatts of
generation. For more information, visit www.PNMResources.com.

PNM Resources
Gina Jacobi, 505-241-2211 (Analysts)
Frederick Bermudez, 505-241-4831 (Analysts & Media)

Copyright Business Wire 2008