TNMP RESTORATION UNDER WAY FOLLOWING HURRICANE RITA

FORT WORTH, Texas — Sept. 24, 2005 — By early afternoon Saturday Texas-New Mexico Power Co. reports power restored to about 15,000 of the estimated 20,000 customers who lost power immediately following Hurricane Rita, with restoration efforts still under way.

TNMP provides electrical transmission and distribution services to approximately 105,000 customers in the Gulf Coast region. TNMP crews are still assessing the full impact to company infrastructure, but early assessments indicated minimal damage.

Evacuated TNMP employees have begun returning to the area to help with power restoration and tree trimmers and additional crews from other areas of Texas have been dispatched to assist.

While progress is being made toward restoration, the company asks customers still without power to be patient, and advised life support customers to call 911 if they have immediate power needs. Among the factors affecting restoration times will be traffic for evacuees returning to Houston and fuel availability.

The company also urged customers to proceed cautiously and safely when making decisions to return home and to assume any downed power line is energized.

The outages immediately following the storm were in the communities of Alvin, Dickinson, Friendswood, League City and Texas City. Power has been restored to most of the main circuits in those communities, although there still are isolated outages on lateral lines being reported. Isolated outages also were reported in Brazoria County.

TNMP’s emergency operations plan calls for restoration of power a quickly as possible in the event of an outage. Key facilities such as water treatment plants and public service facilities receive top priority for power restoration, followed by major lines and circuits servicing large numbers of customers.

Texas-New Mexico Power Co. is a wholly owned subsidiary of PNM Resources (NYSE: PNM), an energy holding company headquartered in Albuquerque, N.M. TNMP provides transmission and distribution services in Texas to 209,000 customers and electricity to 49,000 customers in New Mexico.