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