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Segment Information
 9 Months Ended
Sep. 30, 2021
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 transactions are reflected in the Corporate and Other segment.

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
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended September 30, 2021
Electric operating revenues$435,523 $119,028 $— $554,551 
Cost of energy170,902 28,478 — 199,380 
Utility margin264,621 90,550 — 355,171 
Other operating expenses107,385 28,677 (4,058)132,004 
Depreciation and amortization42,673 23,031 5,734 71,438 
Operating income (loss)114,563 38,842 (1,676)151,729 
Interest income (loss)3,364 — (35)3,329 
Other income1,358 1,144 34 2,536 
Interest charges(12,509)(8,403)(2,332)(23,244)
Segment earnings (loss) before income taxes
106,776 31,583 (4,009)134,350 
Income taxes (benefit)15,500 3,642 (2,474)16,668 
Segment earnings (loss)
91,276 27,941 (1,535)117,682 
Valencia non-controlling interest
(4,229)— — (4,229)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$86,915 $27,941 $(1,535)$113,321 
Nine Months Ended September 30, 2021
Electric operating revenues$1,030,685 $315,113 $— $1,345,798 
Cost of energy383,556 83,896 — 467,452 
Utility margin647,129 231,217 — 878,346 
Other operating expenses320,638 82,950 (6,379)397,209 
Depreciation and amortization127,111 67,696 17,232 212,039 
Operating income (loss)199,380 80,571 (10,853)269,098 
Interest income10,376 — 90 10,466 
Other income (deductions)13,705 3,251 (92)16,864 
Interest charges(38,441)(25,155)(9,651)(73,247)
Segment earnings (loss) before income taxes
185,020 58,667 (20,506)223,181 
Income taxes (benefit)26,178 6,341 (5,986)26,533 
Segment earnings (loss)
158,842 52,326 (14,520)196,648 
Valencia non-controlling interest
(11,643)— — (11,643)
Subsidiary preferred stock dividends
(396)— — (396)
Segment earnings (loss) attributable to PNMR
$146,803 $52,326 $(14,520)$184,609 
At September 30, 2021:
Total Assets
$5,723,176 $2,311,559 $221,335 $8,256,070 
Goodwill
$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended September 30, 2020
Electric operating revenues$364,504 $107,961 $— $472,465 
Cost of energy108,284 25,707 — 133,991 
Utility margin256,220 82,254 — 338,474 
Other operating expenses99,171 27,983 (4,885)122,269 
Depreciation and amortization40,509 22,492 5,399 68,400 
Operating income (loss)116,540 31,779 (514)147,805 
Interest income3,239 — (59)3,180 
Other income11,563 2,286 213 14,062 
Interest charges(14,747)(7,942)(4,574)(27,263)
Segment earnings (loss) before income taxes
116,595 26,123 (4,934)137,784 
Income taxes (benefit)13,591 2,202 (3,462)12,331 
Segment earnings (loss)
103,004 23,921 (1,472)125,453 
Valencia non-controlling interest
(3,553)— — (3,553)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$99,319 $23,921 $(1,472)$121,768 
Nine Months Ended September 30, 2020
Electric operating revenues$873,425 $290,311 $— $1,163,736 
Cost of energy250,692 75,872 — 326,564 
Utility margin622,733 214,439 — 837,172 
Other operating expenses299,284 78,444 (14,644)363,084 
Depreciation and amortization123,721 66,696 16,978 207,395 
Operating income (loss)199,728 69,299 (2,334)266,693 
Interest income9,882 — (208)9,674 
Other income (deductions)(1,509)4,810 (542)2,759 
Interest charges(51,554)(22,475)(14,756)(88,785)
Segment earnings (loss) before income taxes
156,547 51,634 (17,840)190,341 
Income taxes (benefit)16,127 4,447 (5,848)14,726 
Segment earnings (loss)
140,420 47,187 (11,992)175,615 
Valencia non-controlling interest
(11,222)— — (11,222)
Subsidiary preferred stock dividends
(396)— — (396)
Segment earnings (loss) attributable to PNMR
$128,802 $47,187 $(11,992)$163,997 
At September 30, 2020:
Total Assets
$5,449,238 $2,075,291 $217,583 $7,742,112 
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 and is considered a non-GAAP measure.