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Segment Information
 6 Months Ended
Jun. 30, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information


The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided.


PNM Electric


PNM Electric includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM Electric provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico as well as the sale of transmission to third parties. PNM Electric also includes the generation and sale of electricity into the wholesale market. This includes the asset optimization of PNM’s jurisdictional assets as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale rates.


TNMP Electric


TNMP Electric is an electric utility operating in Texas. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides regulated transmission and distribution services in Texas under the TECA.


First Choice


First Choice is a certified retail electric provider operating in Texas, which allows it to provide electricity to residential, small commercial, and governmental customers. Although First Choice is regulated in certain respects by the PUCT, it is not subject to traditional rate regulation.


Optim Energy


Optim Energy is considered a separate segment for PNMR. PNMR’s investment in Optim Energy is held in the Corporate and Other segment and is accounted for using the equity method of accounting. Optim Energy’s revenues and expenses are not included in PNMR’s consolidated revenues and expenses or the following tables. As described in Note 11, PNMR fully impaired its investment in Optim Energy as of December 31, 2010.


Corporate and Other


PNMR Services Company is included in the Corporate and Other segment.


The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.




PNMR SEGMENT INFORMATION
 
PNM
Electric
 
TNMP
Electric
 
First
Choice
 
Corporate
and Other
 
Consolidated
Three Months Ended June 30, 2011
(In thousands)
Operating revenues
$
239,234


 
$
50,359


 
$
126,036


 
$
(43
)
 
$
415,586


Intersegment revenues
—


 
9,598


 
—


 
(9,598
)
 
—


Total revenues
239,234


 
59,957


 
126,036


 
(9,641
)
 
415,586


Cost of energy
81,497


 
10,259


 
91,296


 
(9,598
)
 
173,454


Gross margin
157,737


 
49,698


 
34,740


 
(43
)
 
242,132


Other operating expenses
124,297


 
25,277


 
23,630


 
(2,204
)
 
171,000


Depreciation and amortization
22,897


 
10,726


 
360


 
4,289


 
38,272


Operating income (loss)
10,543


 
13,695


 
10,750


 
(2,128
)
 
32,860


Interest income
4,225


 
—


 
31


 
(22
)
 
4,234


Other income (deductions)
4,484


 
259


 
(273
)
 
(1,648
)
 
2,822


Net interest charges
(18,027
)
 
(7,305
)
 
(141
)
 
(5,039
)
 
(30,512
)
Segment earnings (loss) before income taxes
1,225


 
6,649


 
10,367


 
(8,837
)
 
9,404


Income taxes (benefit)
(872
)
 
2,547


 
3,745


 
(3,685
)
 
1,735


Segment earnings (loss)
2,097


 
4,102


 
6,622


 
(5,152
)
 
7,669


Valencia non-controlling interest
(3,470
)
 
—


 
—


 
—


 
(3,470
)
Subsidiary preferred stock dividends
(132
)
 
—


 
—


 
—


 
(132
)
Segment earnings (loss) attributable to PNMR
$
(1,505
)
 
$
4,102


 
$
6,622


 
$
(5,152
)
 
$
4,067


 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
 
 
 
 
 
 
 
 
 
Operating revenues
$
473,472


 
$
95,387


 
$
234,486


 
$
(96
)
 
$
803,249


Intersegment revenues
—


 
18,412


 
—


 
(18,412
)
 
—


Total revenues
473,472


 
113,799


 
234,486


 
(18,508
)
 
803,249


Cost of energy
170,711


 
20,412


 
159,250


 
(18,412
)
 
331,961


Gross margin
302,761


 
93,387


 
75,236


 
(96
)
 
471,288


Other operating expenses
227,423


 
44,981


 
42,616


 
(5,556
)
 
309,464


Depreciation and amortization
46,632


 
20,987


 
641


 
8,485


 
76,745


Operating income (loss)
28,706


 
27,419


 
31,979


 
(3,025
)
 
85,079


Interest income
8,282


 
—


 
34


 
(55
)
 
8,261


Other income (deductions)
9,702


 
575


 
(379
)
 
(3,250
)
 
6,648


Net interest charges
(36,107
)
 
(14,604
)
 
(286
)
 
(10,130
)
 
(61,127
)
Segment earnings (loss) before income taxes
10,583


 
13,390


 
31,348


 
(16,460
)
 
38,861


Income taxes (benefit)
1,522


 
5,125


 
11,237


 
(6,643
)
 
11,241


Segment earnings (loss)
9,061


 
8,265


 
20,111


 
(9,817
)
 
27,620


Valencia non-controlling interest
(6,652
)
 
—


 
—


 
—


 
(6,652
)
Subsidiary preferred stock dividends
(264
)
 
—


 
—


 
—


 
(264
)
Segment earnings (loss) attributable to PNMR
$
2,145


 
$
8,265


 
$
20,111


 
$
(9,817
)
 
$
20,704


At June 30, 2011:
 
 
 
 
 
 
 
 
 
Total Assets
$
3,920,154


 
$
1,018,425


 
$
254,352


 
$
108,702


 
$
5,301,633


Goodwill
$
51,632


 
$
226,665


 
$
43,013


 
$
—


 
$
321,310


Additions to utility and non-utility plant included in accounts payable
$
16,514


 
$
360


 
$
237


 
$
1,165


 
$
18,276




 
PNM
Electric
 
TNMP
Electric
 
First
Choice
 
Corporate
and Other
 
Consolidated
Three Months Ended June 30, 2010
(In thousands)
Operating revenues
$
243,060


 
$
42,934


 
$
119,916


 
$
(93
)
 
$
405,817


Intersegment revenues
—


 
9,635


 
—


 
(9,635
)
 
—


Total revenues
243,060


 
52,569


 
119,916


 
(9,728
)
 
405,817


Cost of energy
79,639


 
9,057


 
72,121


 
(9,636
)
 
151,181


Gross margin
163,421


 
43,512


 
47,795


 
(92
)
 
254,636


Other operating expenses
107,107


 
19,031


 
21,253


 
(3,805
)
 
143,586


Depreciation and amortization
22,924


 
10,040


 
210


 
4,202


 
37,376


Operating income (loss)
33,390


 
14,441


 
26,332


 
(489
)
 
73,674


Interest income
5,081


 
—


 
11


 
(9
)
 
5,083


Equity in net earnings (loss) of Optim Energy
—


 
—


 
—


 
(3,858
)
 
(3,858
)
Other income (deductions)
(1,991
)
 
283


 
(90
)
 
(1,546
)
 
(3,344
)
Net interest charges
(18,385
)
 
(7,953
)
 
(387
)
 
(5,036
)
 
(31,761
)
Segment earnings (loss) before income taxes
18,095


 
6,771


 
25,866


 
(10,938
)
 
39,794


Income taxes (benefit)
5,901


 
2,665


 
9,313


 
(4,387
)
 
13,492


Segment earnings (loss)
12,194


 
4,106


 
16,553


 
(6,551
)
 
26,302


Valencia non-controlling interest
(3,292
)
 
—


 
—


 
—


 
(3,292
)
Subsidiary preferred stock dividends
(132
)
 
—


 
—


 
—


 
(132
)
Segment earnings (loss) attributable to PNMR
$
8,770


 
$
4,106


 
$
16,553


 
$
(6,551
)
 
$
22,878


 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2010
 
 
 
 
 
 
 
 
 
Operating revenues
$
473,596


 
$
81,525


 
$
234,306


 
$
(215
)
 
$
789,212


Intersegment revenues
—


 
19,221


 
—


 
(19,221
)
 
—


Total revenues
473,596


 
100,746


 
234,306


 
(19,436
)
 
789,212


Cost of energy
166,073


 
18,107


 
177,111


 
(19,222
)
 
342,069


Gross margin
307,523


 
82,639


 
57,195


 
(214
)
 
447,143


Other operating expenses
215,900


 
37,822


 
41,701


 
(7,091
)
 
288,332


Depreciation and amortization
45,776


 
20,135


 
473


 
8,271


 
74,655


Operating income (loss)
45,847


 
24,682


 
15,021


 
(1,394
)
 
84,156


Interest income
10,015


 
—


 
13


 
82


 
10,110


Equity in net earnings (loss) of Optim Energy
—


 
—


 
—


 
(8,210
)
 
(8,210
)
Other income (deductions)
9,167


 
630


 
(98
)
 
(2,943
)
 
6,756


Net interest charges
(36,462
)
 
(15,822
)
 
(697
)
 
(10,190
)
 
(63,171
)
Segment earnings (loss) before income taxes
28,567


 
9,490


 
14,239


 
(22,655
)
 
29,641


Income taxes (benefit)
8,822


 
3,740


 
5,139


 
(9,149
)
 
8,552


Segment earnings (loss)
19,745


 
5,750


 
9,100


 
(13,506
)
 
21,089


Valencia non-controlling interest
(6,396
)
 
—


 
—


 
—


 
(6,396
)
Subsidiary preferred stock dividends
(264
)
 
—


 
—


 
—


 
(264
)
Segment earnings (loss) attributable to PNMR
$
13,085


 
$
5,750


 
$
9,100


 
$
(13,506
)
 
$
14,429


At June 30, 2010:
 
 
 
 
 
 
 
 
 
     Total Assets
$
3,813,524


 
$
1,013,131


 
$
239,035


 
$
337,832


 
$
5,403,522


     Goodwill
$
51,632


 
$
226,665


 
$
43,013


 
$
—


 
$
321,310