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## BOARD OF DIRECTORS 

JEFFRY E. STERBA Chairman, President and Chief Executive Officer of PNM Resources, Inc., Age 49, Director since 2000 

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ADELMO E. ARCHULETA President and Chief Executive Officer of Molzen-Corbin & Associates Age 53, Director since 2003 

committees: Audit and Ethics Human Resources and Compensation 

## OFFICERS OF PNM RESOURCES 

Jeffry E. Sterba, 49, Chairman, President and CEO • Roger J. Flynn, 61, Executive VP, COO* • Alice A. Cobb, 56, Senior VP, People Services and Development John R. Loyack, 40, Senior VP, CFO • Patrick T. Ortiz, 54, Senior VP, General Counsel and Secretary • Eddie Padilla, Jr., 50, Senior VP, Power Marketing and Development • William J. Real, 55, Senior VP, Public Policy • Barbara L. Barsky, 59, VP, Investor Relations • Ernest T. C'de Baca, 50, VP, Governmental Affairs • Terry R. Horn, 51, VP and Treasurer • Thomas G. Sategna, 50, VP, Corporate Controller 

## OFFICERS OF PNM (In addition to above) 

Melvin J. Christopher, 43, VP, Energy Supply and Marketing • Patrick J. Goodman, 54, VP, Power Production • Sarita P. Loehr, 46, VP, Operations and Engineering • Cindy E. McGill, 47, VP, Customer and Market Services • John H. Myers, 46, VP, Construction and Reliability 

* retiring 6.30.04 

ROBERT G. ARMSTRONG President of Armstrong Energy Corporation, Age 57, Director since 1991 

committees: Governance and Public Policy Audit and Ethics 

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R. MARTIN CHAVEZ, Ph.D. Chairman and Chief Executive Officer of Kiodex, Inc., Age 40, Director since 2001 

committees: Finance - Chair Audit and Ethics 

JULIE A. DOBSON Chairman of TeleBright Inc., Age 47, Director since 2002 

committees: Audit and Ethics - Chair Finance 

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MANUEL T. PACHECO, Ph.D. President, University of Missouri System, Age 62, Director since 2001 

committees: Governance and Public Policy - Chair Human Resources and Compensation 

THEODORE F. PATLOVICH Retired Vice Chairman and Senior VP of Loctite Corporation, Age 76, Director since 2000 

committees: Human Resources and Compensation Finance 

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ROBERT M. PRICE President of PSV, Inc., Age 73, Director since 1992 

committees: Human Resources and Compensation - Chair Finance 

BONNIE S. REITZ Retired Senior Vice President Sales and Distribution Continental Airlines, Age 51, Director since 2002 

committees: Human Resources and Compensation Governance and Public Policy 

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JOAN B. WOODARD, Ph.D. Executive Vice President and Deputy Director for Sandia National Laboratories, Age 51, Director since 2003 

committees: Governance and Public Policy Finance 

Effective as of March 1, 2004 

## Disclosure Regarding Forward Looking Statements 

Statements made in this filing that relate to future events or the Company’s expectations, projections, estimates, intentions, goals, targets and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward- looking statements are based upon current expectations and are subject to risk and uncertainties. The Company assumes no obligation to update this information. 

Because actual results may differ materially from expectations, projections, estimates, goals and targets, the Company cautions readers not to place undue reliance on these forward-looking statements. Future financial results will be affected by a number of factors, including interest rates, weather, fuel costs, changes in supply and demand in the market for electric power, wholesale power prices, market liquidity, the competitive environment in the electric and natural gas industries, the performance of generating units and transmission system, state and federal regulatory and legislative decisions and actions, the recoverability of regulatory assets, the outcome of legal proceedings, changes in applicable accounting principles and the performance of state, regional and national economies. 

## FINANCIAL INFORMATION 

16 Selected Financial Data 

17 Management’s Discussion and Analysis 

42 Management’s Responsibility for Financial Statements and Report of Independent Auditors 

43 Consolidated Financial Statements 

49 Notes to Consolidated Financial Statements 

