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Segment Information
 12 Months Ended
Dec. 31, 2020
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 capacity as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale power and transmission rates.
TNMP
TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities.

Corporate and Other
The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development, NM Capital, and the equity method investment in NMRD are also included in Corporate and Other. Eliminations of intercompany income and expense transactions are reflected in the Corporate and Other segment.
PNMR SEGMENT INFORMATION
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.
 
2020PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,139,834 $383,178 $— $1,523,012 
Cost of energy345,167 102,074 — 447,241 
Utility margin794,667 281,104 — 1,075,771 
Other operating expenses414,445 104,852 (4,419)514,878 
Depreciation and amortization165,325 87,799 22,488 275,612 
Operating income (loss)214,897 88,453 (18,069)285,281 
Interest income14,469 — (246)14,223 
Other income (deductions)17,120 6,828 (1,108)22,840 
Interest charges(64,615)(30,388)(19,389)(114,392)
Segment earnings (loss) before income taxes181,871 64,893 (38,812)207,952 
Income taxes (benefit)21,857 6,308 (7,529)20,636 
Segment earnings (loss)
160,014 58,585 (31,283)187,316 
Valencia non-controlling interest(14,013)— — (14,013)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$145,473 $58,585 $(31,283)$172,775 
At December 31, 2020:
Total Assets$5,581,033 $2,132,580 $226,241 $7,939,854 
Goodwill$51,632 $226,665 $— $278,297 

2019PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,093,822 $363,781 $— $1,457,603 
Cost of energy317,725 95,087 — 412,812 
Utility margin776,097 268,694 — 1,044,791 
Other operating expenses554,661 98,621 (20,499)632,783 
Depreciation and amortization160,368 84,259 23,181 267,808 
Operating income61,068 85,814 (2,682)144,200 
Interest income14,303 — (281)14,022 
Other income (deductions)26,989 4,131 (1,477)29,643 
Interest charges(72,900)(29,100)(19,016)(121,016)
Segment earnings (loss) before income taxes29,460 60,845 (23,456)66,849 
Income taxes(25,962)5,046 (4,366)(25,282)
Segment earnings (loss)
55,422 55,799 (19,090)92,131 
Valencia non-controlling interest(14,241)— — (14,241)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$40,653 $55,799 $(19,090)$77,362 
At December 31, 2019:
Total Assets$5,242,991 $1,860,439 $195,344 $7,298,774 
Goodwill$51,632 $226,665 $— $278,297 
2018PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,091,965 $344,648 $— $1,436,613 
Cost of energy314,036 85,690 — 399,726 
Utility margin777,929 258,958 — 1,036,887 
Other operating expenses481,030 96,272 (17,650)559,652 
Depreciation and amortization151,866 66,189 23,133 241,188 
Operating income (loss)145,033 96,497 (5,483)236,047 
Interest income13,089 — 2,451 15,540 
Other income (deductions)(17,312)4,065 (2,039)(15,286)
Interest charges(76,458)(32,091)(18,695)(127,244)
Segment earnings (loss) before income taxes64,352 68,471 (23,766)109,057 
Income taxes (benefit)(5,971)16,880 (3,134)7,775 
Segment earnings (loss)
70,323 51,591 (20,632)101,282 
Valencia non-controlling interest(15,112)— — (15,112)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$54,683 $51,591 $(20,632)$85,642 
At December 31, 2018:
Total Assets$5,035,883 $1,665,177 $164,491 $6,865,551 
Goodwill$51,632 $226,665 $— $278,297 

The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to customers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented under GAAP and is considered a non-GAAP measure.

Major Customers

No individual customer accounted for more than 10% of the electric operating revenues of PNMR or PNM. Three REPs accounted for more than 10% of the electric operating revenues of TNMP, as follows:
Year Ended December 31,
202020192018
REP A21 %22 %21 %
REP B18 %17 %15 %
REP C11 %12 %12 %