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Electric Operating Revenues
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Electric Operating Revenues 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 2020 Annual Reports on Form 10-K.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company estimates the allowance for credit losses on trade receivables based on historical experience and estimated default rates. Accounts receivable balances are reviewed monthly, adjustments to the allowance for credit losses are made as necessary and amounts that are deemed uncollectible are written off. As a result of the economic conditions resulting from the COVID-19 pandemic, PNM updated its allowance for accounts receivable balances and recorded incremental credit losses of $0.8 million and $2.4 million in the three and six months ended June 30, 2021 and $0.4 million and $0.7 million in the three and six months ended June 30, 2020. The NMPRC issued an order authorizing all public utilities to create a regulatory asset to defer incremental costs related to COVID-19, including increases in uncollectible accounts. See discussion regarding regulatory treatment in Note 12.

In February 2021, Texas experienced a severe winter storm delivering the coldest temperatures in 100 years for many parts of the state. As a result, the ERCOT market was not able to deliver sufficient generation load to the grid resulting in significant, statewide outages as ERCOT directed transmission operators to curtail thousands of firm load megawatts. TNMP complied with ERCOT directives to curtail delivery of electricity in its service territory and did not experience significant outages on its system outside of the ERCOT directed curtailments. During the weather event, generators experienced an extreme spike in market driven fuel prices and in turn charged REPs excessive market driven power prices which eventually get passed to end users on their electricity bill. Given the uncertainty of the collectability of end users bills by REPs, ERCOT also
increased the collateral required by REPs in order to do business within ERCOT's Balancing Authority. TNMP has deferred bad debt expense (credit losses) from defaulting REPs to a regulatory asset totaling $1.0 million at June 30, 2021 and will seek recovery in a general rate case.

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.
PNMTNMPPNMR Consolidated
Three Months Ended June 30, 2021(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$108,090 $34,667 $142,757 
Commercial108,085 29,469 137,554 
Industrial22,837 7,046 29,883 
Public authority5,337 1,465 6,802 
Economy energy service6,753 — 6,753 
Transmission16,957 23,653 40,610 
Miscellaneous3,593 941 4,534 
Total revenues from contracts with customers
271,652 97,241 368,893 
Alternative revenue programs1,886 5,350 7,236 
Other electric operating revenues50,411 — 50,411 
Total Electric Operating Revenues
$323,949 $102,591 $426,540 
Six Months Ended June 30, 2021
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$222,759 $69,760 $292,519 
Commercial190,019 58,898 248,917 
Industrial41,737 14,340 56,077 
Public authority9,924 2,948 12,872 
Economy energy service17,334 — 17,334 
Transmission34,460 44,774 79,234 
Miscellaneous6,625 1,900 8,525 
Total revenues from contracts with customers
522,858 192,620 715,478 
Alternative revenue programs2,862 3,465 6,327 
Other electric operating revenues69,442 — 69,442 
Total Electric Operating Revenues
$595,162 $196,085 $791,247 
PNMTNMPPNMR Consolidated
Three Months Ended June 30, 2020(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$109,090 $37,302 $146,392 
Commercial93,364 28,106 121,470 
Industrial20,373 6,857 27,230 
Public authority4,907 1,419 6,326 
Economy energy service3,278 — 3,278 
Transmission14,097 20,238 34,335 
Miscellaneous3,042 1,002 4,044 
Total revenues from contracts with customers
248,151 94,924 343,075 
Alternative revenue programs2,529 1,937 4,466 
Other electric operating revenues10,108 — 10,108 
Total Electric Operating Revenues
$260,788 $96,861 $357,649 
Six Months Ended June 30, 2020
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$211,899 $69,200 $281,099 
Commercial179,713 56,791 236,504 
Industrial39,838 13,390 53,228 
Public authority9,254 2,842 12,096 
Economy energy service8,531 — 8,531 
Transmission28,264 38,250 66,514 
Miscellaneous6,410 1,675 8,085 
Total revenues from contracts with customers
483,909 182,148 666,057 
Alternative revenue programs4,690 202 4,892 
Other electric operating revenues20,322 — 20,322 
Total Electric Operating Revenues
$508,921 $182,350 $691,271 

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, including amounts under ARPs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for credit losses, includes $89.2 million at June 30, 2021 and $86.2 million at December 31, 2020 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 had no contract assets as of June 30, 2021 or December 31, 2020. 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 OATT, 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 it defers the customer's capacity rights. 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. PNMR's, PNM's, and TNMP's contract liabilities and related revenues
are insignificant for all periods presented. The Company has no other arrangements with remaining performance obligations to which a portion of the transaction price would be required to be allocated.