Electric Operating Revenues

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

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 September 30, 2019	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	137,741		$	50,718		$	188,459
Commercial	121,702			31,042			152,744
Industrial	20,946			5,415			26,361
Public authority	6,140			1,440			7,580
Economy energy service	5,731			—			5,731
Transmission	16,068			17,384			33,452
Miscellaneous	3,465			881			4,346
Total revenues from contracts with customers	311,793			106,880			418,673
Alternative revenue programs	(2,372		)	(4,407		)	(6,779		)
Other electric operating revenues	21,692			—			21,692
Total Electric Operating Revenues	$	331,113		$	102,473		$	433,586



	PNM			TNMP		PNMR Consolidated
Nine Months Ended September 30, 2019	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	331,371		$	114,791	$	446,162
Commercial	305,903			86,529		392,432
Industrial	51,022			16,326		67,348
Public authority	15,447			4,204		19,651
Economy energy service	18,677			—		18,677
Transmission	43,794			48,972		92,766
Miscellaneous	9,581			2,670		12,251
Total revenues from contracts with customers	775,795			273,492		1,049,287
Alternative revenue programs	(1,617		)	1,317		(300		)
Other electric operating revenues	64,471			—		64,471
Total Electric Operating Revenues	$	838,649		$	274,809	$	1,113,458



Three Months Ended September 30, 2018
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	138,091		$	40,227		$	178,318
Commercial	121,755			28,850			150,605
Industrial	17,919			4,402			22,321
Public authority	6,872			1,390			8,262
Economy energy service	6,158			—			6,158
Transmission	13,538			16,743			30,281
Miscellaneous	1,686			2,392			4,078
Total revenues from contracts with customers	306,019			94,004			400,023
Alternative revenue programs	(5,338		)	(2,712		)	(8,050		)
Other electric operating revenues	30,693			—			30,693
Total Electric Operating Revenues	$	331,374		$	91,292		$	422,666

Nine Months Ended September 30, 2018
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	334,767		$	100,808		$	435,575
Commercial	315,256			84,084			399,340
Industrial	45,976			12,891			58,867
Public authority	16,726			4,205			20,931
Economy energy service	19,825			—			19,825
Transmission	40,128			49,995			90,123
Miscellaneous	10,632			6,740			17,372
Total revenues from contracts with customers	783,310			258,723			1,042,033
Alternative revenue programs	(3,484		)	2,018			(1,466		)
Other electric operating revenues	52,290			—			52,290
Total Electric Operating Revenues	$	832,116		$	260,741		$	1,092,857

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 ARPs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for uncollectible accounts, includes $76.7 million at September 30, 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 September 30, 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. PNM and TNMP also receive payments 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 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	4,384			1,518			5,902
Deferred revenue earned	(3,369		)	(1,147		)	(4,516		)
Balance at September 30, 2019	$	1,364		$	371		$	1,735