PNM RESOURCES • 2 0 0 3 A n n u a l R e p o r t t o S h a r e h o l d e r s 13 PROFITABLE GROWTH. The PNM goal is to grow earnings by an average of 5 to 6 percent a year over the long term, maintaining a balance between our wholesale power sales and our core regulated electric and gas utility operations. 12 Phoenix (Palo Verde) Albuquerque Las Vegas (Mead) Four Corners EIP N E W M E X I C O C O L O R A D O N E V A D A U T A H C A L I F O R N I A A R I Z O N A 1700 1800 1900 1400 1500 1600 1300 2000 99 00 01 02 03 1700 1800 1900 1400 1500 1600 1300 2000 300 350 400 450 500 150 200 250 100 50 00 00 01 02 03 99 PNM added wholesale power sales contracts totaling 330 megawatts in 2003. Sales to other utilities and large wholesale customers in the West totaled 11.8 million MWh last year. LONG TERM CONTRACTS (MW) STRATEGIC LOCATION PNM has access to critical transmission hubs in the Four Corners, at Palo Verde in eastern Arizona and near Lake Mead in southern Nevada. PNM begins as Albuquerque Gas & Electric Co. Albuquerque population 27,000, NM population 423,000 Reeves Station, a natural gas-fired plant, goes on line. 1963 Four Corners Power Plant, one of the largest coal-fired generating stations in U.S., goes on line. PNM is listed on the  New York Stock Exchange.  1973 San Juan Generating Station, with a  generating capacity of 1,800 gross megawatts, goes on-line. PNM reaquires Gas Company of New Mexico 1986 Palo Verde Nuclear Generating Station, the most productive nuclear power plant in the U.S., goes on line. Albuquerque population: 442,000 NM population: 1,819,001 2003 The New Mexico Wind Energy Center, the world’s third-largest wind generation project, goes on line. SYSTEM PEAK GROWING CAP ACITY Not including the impact of warmer weather, PNM electric retail growth was about 3 percent in our New Mexico  service territory last year. System peak reached a new record high of 1,661 megawatts in the summer of 2003. T serve our growing retail and whole- sale business, PNM has added 553 MW of generation resources over the last three years. 00 01 02 03 On a 1 to 10 scale of customer satis- faction, PNM scores 8.2 with business customers like Mary Anne Giangola, CFM, Facility Manager of TransCore. Utility average nationwide is 7.6. 1917 1930 1958 1972 1985 2000 We also own one of the few interconnections between the Western power grid and the Southwest Power Pool. Those key links put PNM Power Marketing in reach of the largest power markets in the West.