2008-07-21 22:56:13 -

- PNM has issued a request for proposals (RFP) for renewable energy projects that will decrease its dependence on fossil fuels and help PNM meet the state's renewable portfolio standard (RPS).

Through the RPS, PNM earns renewable energy certificates (RECs) for each kilowatt hour of electricity that it generates or buys from clean, renewable energy sources such as solar

and wind. PNM is required by state mandate to generate 6 percent of its retail energy from renewable resources. This 6 percent mandate will be in place until 2011, when it will increase to 10 percent. In 2015, the requirement will be 15 percent, and by 2020, it will reach 20 percent.

"We are not just trying to meet the RPS, we are also trying to find cost-effective energy sources that are also good for the environment," said Evelin Wheeler, PNM's director of strategy, planning and analytics. "If we can find renewable energy sources that also are cost-effective, we will surpass the RPS requirement."

The RFP is seeking multiple proposals for wind, solar, geothermal and bio-fuel that will help PNM achieve a fully diversified portfolio. While the RPS contains specific requirements for diversification, Wheeler said diversity is important for another reasons as well. "Renewable energy sources operate in varying conditions, such as wind or sunlight. We need to ensure we are able to meet the needs of our customers, regardless of the conditions," Wheeler said.

PNM is also seeking biofuels that can offset dependence on natural gas in existing generation facilities owned by PNM. "Using clean renewable fuel in an existing power plant increases environmental benefits while maintaining a highly reliable system," Wheeler said.

Due to soaring interest in renewable energy, PNM hopes to receive a large number of proposals. Interest in an RFP jointly issued by PNM in June for the construction of a parabolic solar trough generation facility, as well as interest by energy developers, has been high.

PNM is seeking renewable energy sources that can be available beginning in 2009 and no later than 2011. Depending on complexity, it could take between six months and two years to develop a renewable energy facility.

The deadline for submissions is Oct. 15, 2008. Interested parties can learn more about the RFP process at www.pnm.com/rfp.

PNM is a subsidiary of PNM Resources (NYSE: PNM), an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 495,000 customers and natural gas service to 492,000 customers in New Mexico. The company also sells power on the wholesale market in the West. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's Web site at www.pnm.com.

PNM Resources, Albuquerque
Cathy Garber, 505-241-2811
Cell: 505-362-6340
cathy.garber@pnmresources.com