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Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Information
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
PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also includes the generation and sale of electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional assets as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale and transmission rates.
TNMP
TNMP is an electric utility providing regulated transmission and distribution services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT.
First Choice
First Choice, which was sold by PNMR on November 1, 2011 (Note 3), operated as a certified REP in Texas. First Choice provided electricity to residential, small commercial, and governmental customers. Although First Choice was regulated in certain respects by the PUCT, it was not subject to traditional rate regulation.
Corporate and Other
The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company.

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
 
2013
PNM
 
TNMP
 
Corporate
and Other
 
Consolidated
 
(In thousands)
Electric operating revenues
$
1,116,312

 
$
271,611

 
$
—

 
$
1,387,923

Cost of energy
374,710

 
57,606

 
—

 
432,316

Margin
741,602

 
214,005

 
—

 
955,607

Other operating expenses
428,591

 
91,601

 
(18,308
)
 
501,884

Depreciation and amortization
103,826

 
50,219

 
12,836

 
166,881

Operating income
209,185

 
72,185

 
5,472

 
286,842

Interest income
10,182

 
—

 
(139
)
 
10,043

Other income (deductions)
11,288

 
1,919

 
(13,575
)
 
(368
)
Net interest charges
(79,175
)
 
(27,393
)
 
(14,880
)
 
(121,448
)
Segment earnings (loss) before income taxes
151,480

 
46,711

 
(23,122
)
 
175,069

Income taxes (benefit)
48,804

 
17,621

 
(6,912
)
 
59,513

Segment earnings (loss)
102,676

 
29,090

 
(16,210
)
 
115,556

Valencia non-controlling interest
(14,521
)
 
—

 
—

 
(14,521
)
Subsidiary preferred stock dividends
(528
)
 
—

 
—

 
(528
)
Segment earnings (loss) attributable to PNMR
$
87,627

 
$
29,090

 
$
(16,210
)
 
$
100,507

 
 
 
 
 
 
 
 
Gross property additions
$
239,906

 
$
89,117

 
$
19,016

 
$
348,039

At December 31, 2013:
 
 
 
 
 
 
 
Total Assets
$
4,227,616

 
$
1,162,431

 
$
110,163

 
$
5,500,210

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297

2012
PNM
 
TNMP
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
 
 
 
Electric operating revenues
$
1,092,264

 
$
250,140

 
$
(1
)
 
$
1,342,403

Cost of energy
353,649

 
46,201

 
—

 
399,850

Margin
738,615

 
203,939

 
(1
)
 
942,553

Other operating expenses
435,442

 
87,079

 
(17,862
)
 
504,659

Depreciation and amortization
97,291

 
49,340

 
17,542

 
164,173

Operating income
205,882

 
67,520

 
319

 
273,721

Interest income
13,243

 
1

 
(172
)
 
13,072

Gain on sale of First Choice
—

 
—

 
1,012

 
1,012

Other income (deductions)
13,290

 
2,739

 
(7,954
)
 
8,075

Net interest charges
(76,101
)
 
(28,161
)
 
(16,583
)
 
(120,845
)
Segment earnings (loss) before income taxes
156,314

 
42,099

 
(23,378
)
 
175,035

Income taxes (benefit)
50,713

 
15,352

 
(11,155
)
 
54,910

Segment earnings (loss)
105,601

 
26,747

 
(12,223
)
 
120,125

Valencia non-controlling interest
(14,050
)
 
—

 
—

 
(14,050
)
Subsidiary preferred stock dividends
(528
)
 
—

 
—

 
(528
)
Segment earnings (loss) attributable to PNMR
$
91,023

 
$
26,747

 
$
(12,223
)
 
$
105,547

 
 
 
 
 
 
 
 
Gross property additions
$
196,800

 
$
92,973

 
$
19,136

 
$
308,909

At December 31, 2012:
 
 
 
 
 
 
 
Total Assets
$
4,163,907

 
$
1,086,229

 
$
122,447

 
$
5,372,583

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297


2011
PNM
 
TNMP
 
First
Choice
 
Corporate
and Other
 
Consolidated
 
 
 
 
 
(In thousands)
 
 
 
 
Electric operating revenues:
 
 
 
 
 
 
 
 
 
Non-affiliates
$
1,057,289

 
$
204,045

 
$
439,450

 
$
(165
)
 
$
1,700,619

Affiliate
—

 
33,813

 
—

 
(33,813
)
 
—

Total electric operating revenues
1,057,289

 
237,858

 
439,450

 
(33,978
)
 
1,700,619

Cost of energy
362,237

 
41,166

 
323,331

 
(33,812
)
 
692,922

Margin
695,052

 
196,692

 
116,119

 
(166
)
 
1,007,697

Other operating expenses
438,822

 
88,234

 
75,966

 
(9,671
)
 
593,351

Depreciation and amortization
94,787

 
44,616

 
1,098

 
16,546

 
157,047

Operating income (loss)
161,443

 
63,842

 
39,055

 
(7,041
)
 
257,299

Interest income
15,562

 
2

 
64

 
(113
)
 
15,515

Gain on sale of First Choice
—

 
—

 
—

 
174,925

 
174,925

Other income (deductions)
4,309

 
1,580

 
(650
)
 
(15,660
)
 
(10,421
)
Net interest charges
(75,349
)
 
(29,286
)
 
(581
)
 
(19,633
)
 
(124,849
)
Segment earnings before income taxes
105,965

 
36,138

 
37,888

 
132,478

 
312,469

Income taxes
37,427

 
13,881

 
13,772

 
56,455

 
121,535

Segment earnings
68,538

 
22,257

 
24,116

 
76,023

 
190,934

Valencia non-controlling interest
(14,047
)
 
—

 
—

 
—

 
(14,047
)
Subsidiary preferred stock dividends
(528
)
 
—

 
—

 
—

 
(528
)
Segment earnings attributable to PNMR
$
53,963

 
$
22,257

 
$
24,116

 
$
76,023

 
$
176,359

 
 
 
 
 
 
 
 
 
 
Gross property additions
$
251,345

 
$
67,407

 
$
2,089

 
$
6,090

 
$
326,931

At December 31, 2011:
 
 
 
 
 
 
 
 
 
Total Assets
$
4,095,287

 
$
1,037,445

 
$
—

 
$
71,881

 
$
5,204,613

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
—

 
$
278,297

Major Customers
No individual customer accounted for more than 10% of the electric operating revenues of PNMR or PNM. The acquiror of First Choice, including the former First Choice operations, accounted for 17% and 19% of TNMP’s electric operating revenues in 2013 and 2012. Two other unaffiliated customers of TNMP accounted for revenues of 16% in 2013, 17% in 2012, and 19% in 2011 and 10% in 2013, 10% in 2012, and 12% in 2011. First Choice accounted for 17% of TNMP’s revenues in 2011.