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Segment Information
9 Months Ended
Sep. 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, generation services to firm requirements customers in New Mexico and Arizona, and 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 of PVNGS Unit 3, which is excluded from retail rates. FERC has jurisdiction over wholesale power and transmission 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. PNMR entered into an agreement to sell First Choice on September 23, 2011 and the sale was completed on November 1, 2011. See Note 16.

Optim Energy

PNMR owned 50% of Optim Energy until September 23, 2011, when PNMR's ownership interest was reduced to 1%. Optim Energy was considered a separate segment for PNMR, which was held in the Corporate and Other segment. PNMR accounted for its investment in Optim Energy using the equity method of accounting until September 23, 2011 and is using the cost method thereafter. Optim Energy’s revenues and expenses are not included in PNMR’s consolidated revenues and expenses or the following tables. PNMR fully impaired its investment in Optim Energy as of December 31, 2010. See Note 11.

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 September 30, 2011
(In thousands)
Operating revenues
$
323,760

 
$
54,787

 
$
170,999

 
$
(48
)
 
$
549,498

Intersegment revenues
—

 
12,196

 
—

 
(12,196
)
 
—

Total revenues
323,760

 
66,983

 
170,999

 
(12,244
)
 
549,498

Cost of energy
108,708

 
10,307

 
144,035

 
(12,196
)
 
250,854

Gross margin
215,052

 
56,676

 
26,964

 
(48
)
 
298,644

Other operating expenses
102,080

 
22,451

 
25,076

 
(1,617
)
 
147,990

Depreciation and amortization
25,058

 
12,674

 
346

 
4,292

 
42,370

Operating income (loss)
87,914

 
21,551

 
1,542

 
(2,723
)
 
108,284

Interest income
3,770

 
1

 
29

 
(52
)
 
3,748

Other income (deductions)
(5,573
)
 
313

 
(115
)
 
(1,664
)
 
(7,039
)
Net interest charges
(18,487
)
 
(7,276
)
 
(249
)
 
(5,112
)
 
(31,124
)
Segment earnings (loss) before income taxes
67,624

 
14,589

 
1,207

 
(9,551
)
 
73,869

Income taxes (benefit)
25,052

 
5,721

 
594

 
(5,403
)
 
25,964

Segment earnings (loss)
42,572

 
8,868

 
613

 
(4,148
)
 
47,905

Valencia non-controlling interest
(4,111
)
 
—

 
—

 
—

 
(4,111
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
38,329

 
$
8,868

 
$
613

 
$
(4,148
)
 
$
43,662

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2011
 
 
 
 
 
 
 
 
 
Operating revenues
$
797,232

 
$
150,175

 
$
405,485

 
$
(145
)
 
$
1,352,747

Intersegment revenues
—

 
30,608

 
—

 
(30,608
)
 
—

Total revenues
797,232

 
180,783

 
405,485

 
(30,753
)
 
1,352,747

Cost of energy
279,419

 
30,719

 
303,285

 
(30,609
)
 
582,814

Gross margin
517,813

 
150,064

 
102,200

 
(144
)
 
769,933

Other operating expenses
329,502

 
67,431

 
67,693

 
(7,172
)
 
457,454

Depreciation and amortization
71,691

 
33,662

 
987

 
12,775

 
119,115

Operating income (loss)
116,620

 
48,971

 
33,520

 
(5,747
)
 
193,364

Interest income
12,052

 
1

 
63

 
(106
)
 
12,010

Other income (deductions)
4,129

 
887

 
(494
)
 
(4,913
)
 
(391
)
Net interest charges
(54,593
)
 
(21,880
)
 
(535
)
 
(15,243
)
 
(92,251
)
Segment earnings (loss) before income taxes
78,208

 
27,979

 
32,554

 
(26,009
)
 
112,732

Income taxes (benefit)
26,574

 
10,845

 
11,833

 
(12,046
)
 
37,206

Segment earnings (loss)
51,634

 
17,134

 
20,721

 
(13,963
)
 
75,526

Valencia non-controlling interest
(10,764
)
 
—

 
—

 
—

 
(10,764
)
Subsidiary preferred stock dividends
(396
)
 
—

 
—

 
—

 
(396
)
Segment earnings (loss) attributable to PNMR
$
40,474

 
$
17,134

 
$
20,721

 
$
(13,963
)
 
$
64,366

At September 30, 2011:
 
 
 
 
 
 
 
 
 
Total Assets
$
3,936,468

 
$
1,041,613

 
$
274,741

 
$
119,818

 
$
5,372,640

Goodwill
$
51,632

 
$
226,665

 
$
43,013

 
$
—

 
$
321,310

Additions to utility and non-utility plant included in accounts payable
$
6,811

 
$
4,672

 
$
106

 
$
253

 
$
11,842


 
PNM
Electric
 
TNMP
Electric
 
First
Choice
 
Corporate
and Other
 
Consolidated
Three Months Ended September 30, 2010
(In thousands)
Operating revenues
$
304,268

 
$
49,709

 
$
149,729

 
$
(53
)
 
$
503,653

Intersegment revenues
—

 
11,495

 
—

 
(11,495
)
 
—

Total revenues
304,268

 
61,204

 
149,729

 
(11,548
)
 
503,653

Cost of energy
98,030

 
9,276

 
119,358

 
(11,495
)
 
215,169

Gross margin
206,238

 
51,928

 
30,371

 
(53
)
 
288,484

Other operating expenses
102,452

 
20,711

 
23,952

 
(3,019
)
 
144,096

Depreciation and amortization
23,111

 
11,594

 
210

 
4,065

 
38,980

Operating income (loss)
80,675

 
19,623

 
6,209

 
(1,099
)
 
105,408

Interest income
4,523

 
—

 
3

 
(27
)
 
4,499

Equity in net earnings (loss) of Optim Energy
—

 
—

 
—

 
2,495

 
2,495

Other income (deductions)
1,902

 
88

 
(66
)
 
(1,603
)
 
321

Net interest charges
(18,011
)
 
(7,661
)
 
(364
)
 
(5,281
)
 
(31,317
)
Segment earnings (loss) before income taxes
69,089

 
12,050

 
5,782

 
(5,515
)
 
81,406

Income taxes (benefit)
25,926

 
4,721

 
2,225

 
(4,059
)
 
28,813

Segment earnings (loss)
43,163

 
7,329

 
3,557

 
(1,456
)
 
52,593

Valencia non-controlling interest
(3,909
)
 
—

 
—

 
—

 
(3,909
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
39,122

 
$
7,329

 
$
3,557

 
$
(1,456
)
 
$
48,552

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2010
 
 
 
 
 
 
 
 
 
Operating revenues
$
777,864

 
$
131,233

 
$
384,034

 
$
(266
)
 
$
1,292,865

Intersegment revenues
—

 
30,717

 
—

 
(30,717
)
 
—

Total revenues
777,864

 
161,950

 
384,034

 
(30,983
)
 
1,292,865

Cost of energy
264,102

 
27,383

 
296,469

 
(30,716
)
 
557,238

Gross margin
513,762

 
134,567

 
87,565

 
(267
)
 
735,627

Other operating expenses
318,353

 
58,534

 
65,652

 
(10,109
)
 
432,430

Depreciation and amortization
68,887

 
31,728

 
683

 
12,336

 
113,634

Operating income (loss)
126,522

 
44,305

 
21,230

 
(2,494
)
 
189,563

Interest income
14,538

 
1

 
16

 
53

 
14,608

Equity in net earnings (loss) of Optim Energy
—

 
—

 
—

 
(5,714
)
 
(5,714
)
Other income (deductions)
11,069

 
717

 
(164
)
 
(4,544
)
 
7,078

Net interest charges
(54,473
)
 
(23,483
)
 
(1,062
)
 
(15,470
)
 
(94,488
)
Segment earnings (loss) before income taxes
97,656

 
21,540

 
20,020

 
(28,169
)
 
111,047

Income taxes (benefit)
34,748

 
8,461

 
7,363

 
(13,207
)
 
37,365

Segment earnings (loss)
62,908

 
13,079

 
12,657

 
(14,962
)
 
73,682

Valencia non-controlling interest
(10,305
)
 
—

 
—

 
—

 
(10,305
)
Subsidiary preferred stock dividends
(396
)
 
—

 
—

 
—

 
(396
)
Segment earnings (loss) attributable to PNMR
$
52,207

 
$
13,079

 
$
12,657

 
$
(14,962
)
 
$
62,981

At September 30, 2010:
 
 
 
 
 
 
 
 
 
     Total Assets
$
3,812,829

 
$
1,004,785

 
$
259,621

 
$
303,574

 
$
5,380,809

     Goodwill
$
51,632

 
$
226,665

 
$
43,013

 
$
—

 
$
321,310