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