content_image/44983.jpg content_image/44994.jpg content_image/44995.jpg content_image/44992.jpg content_image/44996.jpg content_image/44997.jpg
<img src='content_image/44983.jpg'>

An agreement approved by New Mexico regulators early in 2003 sets PNM retail electric rates through the end of 2007. In January 2004, regulators approved a $22 million increase in gas rates and fees. 

A BRIGHT FUTURE 

The number of PNM electric cus- tomers increased about 3.1 percent in 2003. Growth in PNM’s home service territory has been above the 

national rate for most of the last 10 years. According to the New Mexico Department of Labor, employment in the Albuquerque metro area is 

projected to increase about 25 percent by 2010, significantly above the national average. 

STABILITY 600GLYPH<.notdef> 100GLYPH<.notdef> 

## CONSERVATIVE FINANCIAL STRATEGY 

The PNM financial strategy aims at reducing interest expense, maintaining a healthy cash flow and maintaining the company’s investment-grade credit rating. In 2003, we refinanced nearly $500 million in older, high-cost debt, cutting interest costs by about $12 million a year. 2001GLYPH<.notdef> 2002GLYPH<.notdef> 2003GLYPH<.notdef> 

<img src='content_image/44994.jpg'>

<img src='content_image/44995.jpg'>

## EFFICIENT USE OF GENERATING RESOURCES 

The balance of coal, nuclear, gas and renewables in the PNM fleet gives us the opportunity to make the most of each of these resources. Rather than limit certain plants to serving only retail customers, any PNM power not needed to serve retail load is available for the wholesale market. 

<img src='content_image/44992.jpg'>

<img src='content_image/44996.jpg'>

<img src='content_image/44997.jpg'>

