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Electric Operating Revenues
 9 Months Ended
Sep. 30, 2023
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 2022 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. 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 nine months ended September 30, 2023 and 2022, there were no estimated credit losses related to these transactions.
Disaggregation of Revenues

A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below.
PNMTNMPPNMR Consolidated
Three Months Ended September 30, 2023(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$111,406 $69,556 $180,962 
Commercial106,237 41,662 147,899 
Industrial19,891 10,665 30,556 
Public authority6,099 1,708 7,807 
Economy energy service4,958 — 4,958 
Transmission37,466 34,980 72,446 
Wholesale energy service62,804 — 62,804 
Miscellaneous1,507 984 2,491 
Total revenues from contracts with customers
350,368 159,555 509,923 
Alternative revenue programs(939)(4,038)(4,977)
Other electric operating revenues 905 — 905 
Total Electric Operating Revenues
$350,334 $155,517 $505,851 
Nine Months Ended September 30, 2023
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$339,307 $147,413 $486,720 
Commercial309,560 114,357 423,917 
Industrial65,524 36,359 101,883 
Public authority15,822 4,996 20,818 
Economy energy service24,999 — 24,999 
Transmission124,396 100,100 224,496 
Wholesale energy sales213,098 — 213,098 
Miscellaneous4,293 2,832 7,125 
Total revenues from contracts with customers
1,096,999 406,057 1,503,056 
Alternative revenue programs9,963 2,286 12,249 
Other electric operating revenues11,779 — 11,779 
Total Electric Operating Revenues
$1,118,741 $408,343 $1,527,084 

PNMTNMPPNMR Consolidated
Three Months Ended September 30, 2022(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$150,683 $60,878 $211,561 
Commercial136,314 41,705 178,019 
Industrial25,609 9,450 35,059 
Public authority6,893 1,720 8,613 
Economy energy service11,784 — 11,784 
Transmission44,513 28,881 73,394 
Wholesale energy sales220,219 — 220,219 
Miscellaneous1,368 961 2,329 
Total revenues from contracts with customers
597,383 143,595 740,978 
Alternative revenue programs(599)(11,044)(11,643)
Other electric operating revenues553 — 553 
Total Electric Operating Revenues
$597,337 $132,551 $729,888 
Nine Months Ended September 30, 2022
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$368,159 $146,367 $514,526 
Commercial325,492 111,365 436,857 
Industrial68,351 27,388 95,739 
Public authority16,063 4,806 20,869 
Economy energy service31,726 — 31,726 
Transmission114,699 83,731 198,430 
Wholesale energy sales365,554 — 365,554 
Miscellaneous4,043 2,887 6,930 
Total revenues from contracts with customers
1,294,087 376,544 1,670,631 
Alternative revenue programs1,039 (15,608)(14,569)
Other electric operating revenues17,674 — 17,674 
Total Electric Operating Revenues
$1,312,800 $360,936 $1,673,736 

Decreases in revenue in 2023 compared to 2022, reflect refunds under the SJGS abandonment settlement agreement (Note 12) and lower wholesale energy market sales through PNM’s participation in the EIM, which are passed on to customers under PNM’s FFPAC with no impact to net earnings.

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 $131.0 million at September 30, 2023 and $151.4 million at December 31, 2022 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 Transmission Service Agreement (“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 is $19.5 million at September 30, 2023 and $11.9 million at December 31, 2022. This contract asset is presented in Other deferred charges on the Condensed Consolidated Balance Sheets.

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 Open Access Transmission Tariff (“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.