Electric Operating Revenues

PNMR is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s electric utilities are PNM and TNMP.

Additional information concerning electric operating revenue is contained in Note 4 of the Notes to Consolidated Financial Statements in the 2018 Annual Reports on Form 10-K.

Disaggregation of Revenues

A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. The table also reflects alternative revenue program revenues (“ARP”) and other revenues.



	PNM		TNMP		PNMR Consolidated
Three Months Ended March 31, 2019	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	107,302	$	30,432	$	137,734
Commercial	85,233		27,429		112,662
Industrial	14,747		5,616		20,363
Public authority	4,711		1,374		6,085
Economy energy service	6,922		—		6,922
Transmission	13,385		14,003		27,388
Miscellaneous	3,641		903		4,544
Total revenues from contracts with customers	235,941		79,757		315,698
Alternative revenue programs	66		570		636
Other electric operating revenues	33,311		—		33,311
Total Electric Operating Revenues	$	269,318	$	80,327	$	349,645



	PNM		TNMP		PNMR Consolidated
Three Months Ended March 31, 2018	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	97,169	$	29,266	$	126,435
Commercial	82,849		27,152		110,001
Industrial	13,459		4,305		17,764
Public authority	4,635		1,416		6,051
Economy energy service	7,288		—		7,288
Transmission	12,482		16,508		28,990
Miscellaneous	4,682		2,140		6,822
Total revenues from contracts with customers	222,564		80,787		303,351
Alternative revenue programs	65		859		924
Other electric operating revenues	13,603		—		13,603
Total Electric Operating Revenues	$	236,232	$	81,646	$	317,878

Contract balances

Performance obligations related to contracts with customers are typically satisfied when the energy is delivered and the customer or end-user utilizes the energy. Accounts receivable from customers represent amounts billed to the customer or end-user, including amounts under ARP programs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for uncollectible accounts, includes $65.2 million at March 31, 2019 and $61.7 million at December 31, 2018 resulting from contracts with customers. All of TNMP’s accounts receivable results from contracts with customers.

Contract assets are an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). The Company has no contract assets as of March 31, 2019 or December 31, 2018. Contract liabilities arise when consideration is received in advance from a customer before satisfying the performance obligations. Therefore, revenue is deferred and not recognized until the obligation is satisfied. Under its Open Access Transmission Tariff, PNM accepts upfront consideration for capacity reservations requested by transmission customers, which requires PNM to defer the customer’s transmission capacity rights for a specific period of time. PNM recognizes the revenue of these capacity reservations over the period the capacity rights have been reserved, which is generally over one year. Other utilities pay PNM and TNMP in advance for the joint-use of their utility poles. These revenues are recognized over the period of time specified in the joint-use contract, typically for one calendar year. Deferred revenues on these arrangements are recorded as contract liabilities. The Company has no other arrangements with remaining performance obligations to which a portion of the transaction price would be required to be allocated.

Changes during the period in the balances of contract liabilities, which are included in other current liabilities on the Condensed Consolidated Balance Sheets, are as follows:



	PNM			TNMP			PNMR Consolidated
	(In thousands)
Balance at December 31, 2018	$	349		$	—		$	349
Consideration received in advance of service to be provided	3,981			1,389			5,370
Deferred revenue earned	(1,349		)	(371		)	(1,720		)
Balance at March 31, 2019	$	2,981		$	1,018		$	3,999