As a result, management expects First Choice Power's earnings before interest, taxes, depreciation and amortization, or EBITDA, to finish the year in the range of $55 million to $60 million. The expected increase in EBITDA would translate to an incremental increase of $0.14 to $0.18 to PNM Resources' 2009 consolidated earnings per diluted share outlook.

When the company issued its second-quarter financial results in late July, management indicated that First Choice Power's 2009 EBITDA would likely exceed $35 million, which was the high end of the previously announced EBITDA outlook range. At that time, management said it would not update First Choice Power's financial expectations until after the summer months.

"First Choice Power continued to demonstrate strong performance in July and August, clearly indicating that our expectations will be exceeded," said Jeff Sterba, PNM Resources chairman and CEO. "While we are pleased to see First Choice Power return to profitability just one year after a disappointing 2008, we strongly caution that 2010 likely will not be as strong as this year. In addition, we see bad debt as a persistent problem negatively affecting First Choice Power's performance. This continues to be an issue that needs regulator intervention through change in market rules.

"Similar to how the ERCOT market conditions -- along with First Choice Power's buying and selling positions within that market -- had a negative impact on the business in 2008, those same drivers worked in its favor this year," he said. "For 2010, we expect market conditions to continue to be a key driver for the business, and we believe margins will return to more historic levels."

Sterba said the company will revise its 2009 consolidated earnings outlook when third-quarter financial results are announced next month.

MANAGEMENT TO ATTEND CONFERENCE IN NEW YORK CITY

PNM Resources management will meet with energy industry analysts and investors Tuesday and Wednesday during the 2009 Bank of America Merrill Lynch Power & Gas Leaders Conference.

Supporting material for the investor meetings is available on the company's Web site at http://pnm.client.shareholder.com/investors/events.cfm.

THIRD-QUARTER EARNINGS ANNOUNCED OCT. 29, 2009

PNM Resources plans to issue its 2009 third-quarter financial results on Thursday, Oct. 29, 2009, before the market opens. The earnings news release will be available on the company's Web site at www.PNMResources.com.

Management will host a live conference call and webcast later that morning at 9 a.m. Eastern to discuss quarterly results and the updated 2009 earnings outlook.

Investors, analysts and other participants can listen to the live conference call by dialing (877) 440-5791 (toll free) or (719) 325-4868 (toll) five to 10 minutes prior to the event and referencing "the PNM Resources earnings conference call." A telephone replay will be available at noon Eastern until midnight Nov.