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Segment Information
 12 Months Ended
Dec. 31, 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. PNM includes the results of ETBC I upon its formation in 2023.

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.

PNMR SEGMENT INFORMATION

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.
 
2023PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,403,948 $535,250 $— $1,939,198 
Cost of energy663,614 138,647 — 802,261 
Utility margin740,334 396,603 — 1,136,937 
Other operating expenses479,525 133,443 (26,874)586,094 
Depreciation and amortization177,633 113,142 28,728 319,503 
Operating income (loss)83,176 150,018 (1,854)231,340 
Interest income21,355 — 608 21,963 
Other income (deductions)20,003 8,368 (790)27,581 
Interest charges(86,574)(46,152)(57,629)(190,355)
Segment earnings (loss) before income taxes37,960 112,234 (59,665)90,529 
Income taxes (benefit)(16,758)17,297 (16,889)(16,350)
Segment earnings (loss)
54,718 94,937 (42,776)106,879 
Valencia non-controlling interest(18,533)— — (18,533)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$35,657 $94,937 $(42,776)$87,818 
At December 31, 2023:
Total Assets$6,813,065 $3,145,031 $294,509 $10,252,605 
Goodwill$51,632 $226,665 $— $278,297 
2022PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,766,825 $482,730 $— $2,249,555 
Cost of energy864,013 123,928 — 987,941 
Utility margin902,812 358,802 — 1,261,614 
Other operating expenses460,513 124,519 (22,031)563,001 
Depreciation and amortization180,812 98,316 25,725 304,853 
Operating income (loss)261,487 135,967 (3,694)393,760 
Interest income14,816 — 1,279 16,095 
Other income (deductions)(77,012)8,653 (2,278)(70,637)
Interest charges(61,073)(37,192)(29,643)(127,908)
Segment earnings (loss) before income taxes138,218 107,428 (34,336)211,310 
Income taxes (benefit)19,198 15,161 (8,229)26,130 
Segment earnings (loss)
119,020 92,267 (26,107)185,180 
Valencia non-controlling interest(15,122)— — (15,122)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$103,370 $92,267 $(26,107)$169,530 
At December 31, 2022:
Total Assets$6,272,166 $2,746,601 $238,610 $9,257,377 
Goodwill$51,632 $226,665 $— $278,297 

2021PNMTNMPCorporate
and Other		PNMR Consolidated
 (In thousands)
Electric operating revenues$1,362,020 $417,853 $— $1,779,873 
Cost of energy531,786 113,067 — 644,853 
Utility margin830,234 304,786 — 1,135,020 
Other operating expenses438,372 114,228 (9,840)542,760 
Depreciation and amortization170,365 90,440 23,302 284,107 
Operating income (loss)221,497 100,118 (13,462)308,153 
Interest income (loss)14,605 — 57 14,662 
Other income (deductions)13,809 5,408 (726)18,491 
Interest charges(51,360)(33,735)(11,782)(96,877)
Segment earnings (loss) before income taxes198,551 71,791 (25,913)244,429 
Income taxes (benefit)26,992 7,912 (2,322)32,582 
Segment earnings (loss)
171,559 63,879 (23,591)211,847 
Valencia non-controlling interest(15,490)— — (15,490)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to PNMR
$155,541 $63,879 $(23,591)$195,829 
At December 31, 2021:
Total Assets$6,060,133 $2,364,772 $241,980 $8,666,885 
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)
2023
Gross margin$409,366 $246,465 $— $655,831 
Energy production costs91,610 — — 91,610 
Transmission and distribution costs61,725 36,996 — 98,721 
Depreciation and amortization177,633 113,142 — 290,775 
1
Utility margin$740,334 $396,603 $— $1,136,937 
2022
Gross margin$516,375 $224,080 $— $740,455 
Energy production costs147,347 — — 147,347 
Transmission and distribution costs58,278 36,406 — 94,684 
Depreciation and amortization180,812 98,316 — 279,128 
1
Utility margin$902,812 $358,802 $— $1,261,614 
2021
Gross margin$466,092 $182,857 $— $648,949 
Energy production costs143,931 — — 143,931 
Transmission and distribution costs49,846 31,489 — 81,335 
Depreciation and amortization170,365 90,440 — 260,805 
1
Utility margin$830,234 $304,786 $— $1,135,020 
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.

Major Customers

PNM’s participation in EIM, operated by CAISO, accounted for approximately 15%, 24%, and 11% of electric operating revenues during the years ended December 31, 2023, 2022, and 2021. These revenues are passed on to customers under PNM’s FPPAC with no impact to net earnings. Two REPs during the years ended December 31, 2023 and 2022 and three REPs during the years ended December 31, 2021 accounted for more than 10% of the electric operating revenues of TNMP as follows:
Year Ended December 31,
202320222021
REP A25 %27 %23 %
REP B19 20 19 
REP CN/AN/A10