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Segment Information
 6 Months Ended
Jun. 30, 2023
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, which includes the asset optimization of PNM's jurisdictional capacity, as well as providing transmission services to third parties. 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 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 June 30, 2023
Electric operating revenues$338,242 $138,914 $— $477,156 
Cost of energy133,609 38,843 — 172,452 
Utility margin204,633 100,071 — 304,704 
Other operating expenses106,154 33,395 (6,314)133,235 
Depreciation and amortization44,064 27,949 7,126 79,139 
Operating income (loss)54,415 38,727 (812)92,330 
Interest income (expense)5,370 121 (132)5,359 
Other income3,695 1,512 655 5,862 
Interest charges(20,766)(11,412)(13,721)(45,899)
Segment earnings (loss) before income taxes
42,714 28,948 (14,010)57,652 
Income taxes (benefit)7,411 4,316 (3,498)8,229 
Segment earnings (loss)
35,303 24,632 (10,512)49,423 
Valencia non-controlling interest
(3,987)— — (3,987)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$31,184 $24,632 $(10,512)$45,304 
Six Months Ended June 30, 2023
Electric operating revenues$768,407 $252,826 $— $1,021,233 
Cost of energy343,462 70,676 — 414,138 
Utility margin424,945 182,150 — 607,095 
Other operating expenses204,876 66,247 (12,662)258,461 
Depreciation and amortization87,750 55,389 14,074 157,213 
Operating income (loss)132,319 60,514 (1,412)191,421 
Interest income (expense)10,219 235 (252)10,202 
Other income 10,728 1,648 528 12,904 
Interest charges(38,888)(21,837)(26,097)(86,822)
Segment earnings (loss) before income taxes
114,378 40,560 (27,233)127,705 
Income taxes (benefit)19,240 5,895 (7,126)18,009 
Segment earnings (loss)
95,138 34,665 (20,107)109,696 
Valencia non-controlling interest
(9,114)— — (9,114)
Subsidiary preferred stock dividends
(264)— — (264)
Segment earnings (loss) attributable to PNMR
$85,760 $34,665 $(20,107)$100,318 
At June 30, 2023:
Total Assets
$6,440,357 $2,916,206 $270,407 $9,626,970 
Goodwill
$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended June 30, 2022
Electric operating revenues$376,754 $122,976 $— $499,730 
Cost of energy163,964 31,632 — 195,596 
Utility margin212,790 91,344 — 304,134 
Other operating expenses117,374 29,032 (5,433)140,973 
Depreciation and amortization45,981 24,312 6,476 76,769 
Operating income (loss)49,435 38,000 (1,043)86,392 
Interest income (expense)3,267 105 (45)3,327 
Other income (deductions)(41,816)1,123 408 (40,285)
Interest charges(14,523)(9,016)(5,678)(29,217)
Segment earnings (loss) before income taxes
(3,637)30,212 (6,358)20,217 
Income taxes (benefit)(1,182)4,161 (1,885)1,094 
Segment earnings (loss)
(2,455)26,051 (4,473)19,123 
Valencia non-controlling interest
(3,630)— — (3,630)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$(6,217)$26,051 $(4,473)$15,361 
Six Months Ended June 30, 2022
Electric operating revenues$715,463 $228,385 $— $943,848 
Cost of energy302,778 61,232 — 364,010 
Utility margin412,685 167,153 — 579,838 
Other operating expenses226,463 56,957 (10,575)272,845 
Depreciation and amortization91,771 47,954 12,808 152,533 
Operating income (loss)94,451 62,242 (2,233)154,460 
Interest income (expense)6,400 1,287 (68)7,619 
Other income (deductions)(67,032)2,060 203 (64,769)
Interest charges(29,095)(18,166)(8,176)(55,437)
Segment earnings (loss) before income taxes
4,724 47,423 (10,274)41,873 
Income taxes (benefit)(359)6,312 (2,421)3,532 
Segment earnings (loss)
5,083 41,111 (7,853)38,341 
Valencia non-controlling interest
(6,725)— — (6,725)
Subsidiary preferred stock dividends
(264)— — (264)
Segment earnings (loss) attributable to PNMR
$(1,906)$41,111 $(7,853)$31,352 
At June 30, 2022:
Total Assets
$6,090,151 $2,583,602 $237,352 $8,911,105 
Goodwill
$51,632 $226,665 $— $278,297 

Non-GAAP Financial Measures

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 consumers 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. PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP however, the calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below.
PNMTNMPCorporate and OtherPNMR Consolidated
(In thousands)
Three Months Ended June 30, 2023
Gross margin$120,215 $61,412 $— $181,627 
Energy production costs25,599 — — 25,599 
Transmission and distribution costs14,755 10,710 — 25,465 
Depreciation and amortization44,064 27,949 — 72,013 
1
Utility margin$204,633 $100,071 $— $304,704 
Six Months Ended June 30, 2023
Gross margin$260,596 $107,742 $— $368,338 
Energy production costs47,957 — — 47,957 
Transmission and distribution costs28,642 19,019 — 47,661 
Depreciation and amortization87,750 55,389 — 143,139 
1
Utility margin$424,945 $182,150 $— $607,095 

PNMTNMPCorporate and OtherPNMR Consolidated
(In thousands)
Three Months Ended June 30, 2022
Gross margin$110,792 $59,394 $— $170,186 
Energy production costs42,499 — — 42,499 
Transmission and distribution costs13,518 7,638 — 21,156 
Depreciation and amortization45,981 24,312 — 70,293 
1
Utility margin$212,790 $91,344 $— $304,134 
Six Months Ended June 30, 2022
Gross margin$219,720 $104,706 $— $324,426 
Energy production costs76,065 — — 76,065 
Transmission and distribution costs25,129 14,493 — 39,622 
Depreciation and amortization91,771 47,954 — 139,725 
1
Utility margin$412,685 $167,153 $— $579,838 

1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1.