2008-05-09 15:18:08 -

www.pnmresources.com - PNM Resources' (NYSE:PNM) New Mexico utility, PNM, today announced the pricing of its previously announced offering of $350 million aggregate principal amount of 7.95% senior unsecured notes due 2018. The notes will pay interest semi-annually at a rate of 7.95% per year, payable on May 15 and Nov. 15 of each year, beginning November, 2008,

and will mature on May 15, 2018.

Lehman Brothers, Merrill Lynch & Co., Citi, Deutsche Bank Securities, Morgan Stanley, RBC Capital Markets and Wachovia Securities served as joint book-running managers in the offering. The offering is scheduled to close on May 13, 2008.

Proceeds from the offerings will be used for general corporate purposes, including repayment of short-term debt.

The notes are expected to be rated "Baa3" (under review for possible downgrade) by Moody's Investors Service and "BB+" (stable) by Standard & Poor's Rating Service. Investors are cautioned that a security rating is not a recommendation to buy, sell or hold securities, that it is subject to revision or withdrawal at any time by the assigning rating organization, and that each rating should be evaluated independently of any other rating.

The PNM offering may only be made by means of a prospectus and a related prospectus supplement, copies of which may be obtained by contacting the following parties: -0- Lehman Brothers c/o Broadridge Prospectus Fulfillment 1155 Long Island Avenue Edgewood, New York, 11717 Merrill Lynch & Co. Attention: Prospectus Department 4 World Financial Center New York, New York, 10080

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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 company has a 50-percent ownership of EnergyCo, which 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)