XML 44 R25.htm IDEA: XBRL DOCUMENT
v3.22.2

Electric Operating Revenues | 6 Months Ended
--- | ---
Jun. 30, 2022
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 2021 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. PNM updated its allowance for accounts receivable balances and recorded incremental reductions to credit losses of $(0.7) million and $(1.6) million in the three and six months ended June 30, 2022 and increases of $0.8 million and $2.4 million in the three and six months ended June 30, 2021. 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 addition to the allowance for credit losses on trade receivables, the Company has evaluated other receivables for potential credit related losses. These balances include potential exposures for other non-retail utility services. In the three and six months ended June 30, 2022 and 2021, there were no estimated credit losses related to these transactions. 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 deferred bad debt expense (credit losses) from defaulting REPs to a regulatory asset which totaled $0.8 million at both June 30, 2022 and December 31, 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.
|  | PNM |  | TNMP |  | PNMR Consolidated
Three Months Ended June 30, 2022 |  | (In thousands)
Electric Operating Revenues: |  |  |  |  |  |
Contracts with customers: |  |  |  |  |  |
Retail electric revenue |  |  |  |  |  |
Residential |  | $ | 104,902 |  |  | $ | 46,121 |  |  | $ | 151,023 |
Commercial |  | 101,174 |  |  | 36,557 |  |  | 137,731 |
Industrial |  | 19,610 |  |  | 9,548 |  |  | 29,158 |
Public authority |  | 4,744 |  |  | 1,561 |  |  | 6,305 |
Economy energy service |  | 11,003 |  |  | — |  |  | 11,003 |
Transmission |  | 35,659 |  |  | 29,321 |  |  | 64,980 |
Miscellaneous |  | 3,128 |  |  | 992 |  |  | 4,120 |
Total revenues from contracts with customers |  | 280,220 |  |  | 124,100 |  |  | 404,320 |
Alternative revenue programs |  | 3,703 |  |  | (1,124) |  |  | 2,579 |
Other electric operating revenues (1) |  | 92,831 |  |  | — |  |  | 92,831 |
Total Electric Operating Revenues |  | $ | 376,754 |  |  | $ | 122,976 |  |  | $ | 499,730 |
Six Months Ended June 30, 2022 |  |
Electric Operating Revenues: |  |  |  |  |  |
Contracts with customers: |  |  |  |  |  |
Retail electric revenue |  |  |  |  |  |
Residential |  | $ | 217,477 |  |  | $ | 85,489 |  |  | $ | 302,966 |
Commercial |  | 189,178 |  |  | 69,660 |  |  | 258,838 |
Industrial |  | 42,742 |  |  | 17,938 |  |  | 60,680 |
Public authority |  | 9,170 |  |  | 3,086 |  |  | 12,256 |
Economy energy service |  | 19,943 |  |  | — |  |  | 19,943 |
Transmission |  | 70,186 |  |  | 54,850 |  |  | 125,036 |
Miscellaneous |  | 7,168 |  |  | 1,926 |  |  | 9,094 |
Total revenues from contracts with customers |  | 555,864 |  |  | 232,949 |  |  | 788,813 |
Alternative revenue programs |  | 1,638 |  |  | (4,564) |  |  | (2,926) |
Other electric operating revenues (1) |  | 157,961 |  |  | — |  |  | 157,961 |
Total Electric Operating Revenues |  | $ | 715,463 |  |  | $ | 228,385 |  |  | $ | 943,848 |
(1) Increase in 2022 is primarily the result of participation in the EIM beginning in April 2021.
|  | PNM |  | TNMP |  | PNMR 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 |
Commercial |  | 108,085 |  |  | 29,469 |  |  | 137,554 |
Industrial |  | 22,837 |  |  | 7,046 |  |  | 29,883 |
Public authority |  | 5,337 |  |  | 1,465 |  |  | 6,802 |
Economy energy service |  | 6,753 |  |  | — |  |  | 6,753 |
Transmission |  | 16,957 |  |  | 23,653 |  |  | 40,610 |
Miscellaneous |  | 3,593 |  |  | 941 |  |  | 4,534 |
Total revenues from contracts with customers |  | 271,652 |  |  | 97,241 |  |  | 368,893 |
Alternative revenue programs |  | 1,886 |  |  | 5,350 |  |  | 7,236 |
Other electric operating revenues |  | 50,411 |  |  | — |  |  | 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 |
Commercial |  | 190,019 |  |  | 58,898 |  |  | 248,917 |
Industrial |  | 41,737 |  |  | 14,340 |  |  | 56,077 |
Public authority |  | 9,924 |  |  | 2,948 |  |  | 12,872 |
Economy energy service |  | 17,334 |  |  | — |  |  | 17,334 |
Transmission |  | 34,460 |  |  | 44,774 |  |  | 79,234 |
Miscellaneous |  | 6,625 |  |  | 1,900 |  |  | 8,525 |
Total revenues from contracts with customers |  | 522,858 |  |  | 192,620 |  |  | 715,478 |
Alternative revenue programs |  | 2,862 |  |  | 3,465 |  |  | 6,327 |
Other electric operating revenues |  | 69,442 |  |  | — |  |  | 69,442 |
Total Electric Operating Revenues |  | $ | 595,162 |  |  | $ | 196,085 |  |  | $ | 791,247 |
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 $98.2 million at June 30, 2022 and $86.8 million at December 31, 2021 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). Upon the completion of the Western Spirit Line, PNM entered into a TSA with Pattern Wind under an incremental tariff rate approved by FERC. The terms of the agreement provide for a financing component that benefits the customer. As such, the revenue that PNM recognizes will be in excess of the consideration received at the beginning of the service term resulting in a contract asset. The balance of the contract asset as of June 30, 2022 is $6.2 million and $0.6 million as of December 31, 2021. This contract asset is presented in Other deferred charges on the Condensed Consolidated Balance Sheet. 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 not material for any of the 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.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration