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Electric Operating Revenues
 6 Months Ended
Jun. 30, 2024
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 2023 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 six months ended June 30, 2024 and 2023, there were no estimated credit losses related to these transactions.

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 $82.4 million at June 30, 2024 and $93.6 million at December 31, 2023 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 $27.1 million at June 30, 2024 and $22.1 million at December 31, 2023. 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. 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.

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 June 30, 2024(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$121,065 $47,313 $168,378 
Commercial109,929 40,499 150,428 
Industrial34,201 7,917 42,118 
Public authority5,216 1,740 6,956 
Economy energy service4,033 — 4,033 
Transmission33,333 42,116 75,449 
Wholesale energy sales (1)
23,507 — 23,507 
Miscellaneous1,389 962 2,351 
Total revenues from contracts with customers
332,673 140,547 473,220 
Alternative revenue programs830 13,884 14,714 
Other electric operating revenues 168 — 168 
Total Electric Operating Revenues
$333,671 $154,431 $488,102 
Six Months Ended June 30, 2024
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$241,450 $88,808 $330,258 
Commercial209,266 76,043 285,309 
Industrial58,970 17,773 76,743 
Public authority9,614 3,456 13,070 
Economy energy service11,595 — 11,595 
Transmission69,482 77,925 147,407 
Wholesale energy sales (1)
35,197 — 35,197 
Miscellaneous2,814 1,917 4,731 
Total revenues from contracts with customers
638,388 265,922 904,310 
Alternative revenue programs2,736 17,271 20,007 
Other electric operating revenues662 — 662 
Total Electric Operating Revenues
$641,786 $283,193 $924,979 
PNMTNMPPNMR Consolidated
Three Months Ended June 30, 2023(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$108,016 $41,491 $149,507 
Commercial105,262 37,965 143,227 
Industrial26,156 12,930 39,086 
Public authority5,305 1,669 6,974 
Economy energy service10,731 — 10,731 
Transmission37,922 35,062 72,984 
Wholesale energy sales (1)
37,308 — 37,308 
Miscellaneous1,377 907 2,284 
Total revenues from contracts with customers
332,077 130,024 462,101 
Alternative revenue programs3,577 8,890 12,467 
Other electric operating revenues2,588 — 2,588 
Total Electric Operating Revenues
$338,242 $138,914 $477,156 
Six Months Ended June 30, 2023
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential$227,901 $77,857 $305,758 
Commercial203,323 72,695 276,018 
Industrial45,633 25,694 71,327 
Public authority9,723 3,288 13,011 
Economy energy service20,041 — 20,041 
Transmission86,930 65,120 152,050 
Wholesale energy sales (1)
150,294 — 150,294 
Miscellaneous2,786 1,848 4,634 
Total revenues from contracts with customers
746,631 246,502 993,133 
Alternative revenue programs10,902 6,324 17,226 
Other electric operating revenues10,874 — 10,874 
Total Electric Operating Revenues
$768,407 $252,826 $1,021,233 
(1) Includes sales for resale activity resulting from PNM’s participation in the EIM.