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Electric Operating Revenues | 9 Months Ended
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Sep. 30, 2024
Revenue from Contract with Customer [Abstract] |
Electric Operating Revenues | Electric Operating Revenues TXNM is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. TXNM’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 nine months ended September 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 $103.1 million at September 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 $29.6 million at September 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. TXNM’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.
|  | PNM |  | TNMP |  | TXNM
Three Months Ended September 30, 2024 |  | (In thousands)
Electric Operating Revenues: |  |  |  |  |  |
Contracts with customers: |  |  |  |  |  |
Retail electric revenue |  |  |  |  |  |
Residential |  | $ | 174,765 |  |  | $ | 67,004 |  |  | $ | 241,769 |
Commercial |  | 149,245 |  |  | 45,735 |  |  | 194,980 |
Industrial |  | 31,841 |  |  | 7,106 |  |  | 38,947 |
Public authority |  | 7,433 |  |  | 1,920 |  |  | 9,353 |
Economy energy service |  | 3,662 |  |  | — |  |  | 3,662 |
Transmission |  | 35,671 |  |  | 39,195 |  |  | 74,866 |
Wholesale energy sales (1) |  | 8,311 |  |  | — |  |  | 8,311 |
Miscellaneous |  | 1,511 |  |  | 916 |  |  | 2,427 |
Total revenues from contracts with customers |  | 412,439 |  |  | 161,876 |  |  | 574,315 |
Alternative revenue programs |  | (7,864) |  |  | 861 |  |  | (7,003) |
Other electric operating revenues |  | 1,944 |  |  | — |  |  | 1,944 |
Total Electric Operating Revenues |  | $ | 406,519 |  |  | $ | 162,737 |  |  | $ | 569,256 |
Nine Months Ended September 30, 2024 |  |
Electric Operating Revenues: |  |  |  |  |  |
Contracts with customers: |  |  |  |  |  |
Retail electric revenue |  |  |  |  |  |
Residential |  | $ | 416,216 |  |  | $ | 155,812 |  |  | $ | 572,028 |
Commercial |  | 358,511 |  |  | 121,777 |  |  | 480,288 |
Industrial |  | 90,811 |  |  | 24,878 |  |  | 115,689 |
Public authority |  | 17,047 |  |  | 5,376 |  |  | 22,423 |
Economy energy service |  | 15,257 |  |  | — |  |  | 15,257 |
Transmission |  | 105,153 |  |  | 117,120 |  |  | 222,273 |
Wholesale energy sales (1) |  | 43,508 |  |  | — |  |  | 43,508 |
Miscellaneous |  | 4,324 |  |  | 2,835 |  |  | 7,159 |
Total revenues from contracts with customers |  | 1,050,827 |  |  | 427,798 |  |  | 1,478,625 |
Alternative revenue programs |  | (5,128) |  |  | 18,132 |  |  | 13,004 |
Other electric operating revenues |  | 2,606 |  |  | — |  |  | 2,606 |
Total Electric Operating Revenues |  | $ | 1,048,305 |  |  | $ | 445,930 |  |  | $ | 1,494,235 |
|  | PNM |  | TNMP |  | TXNM
Three Months Ended September 30, 2023 |  | (In thousands)
Electric Operating Revenues: |  |  |  |  |  |
Contracts with customers: |  |  |  |  |  |
Retail electric revenue |  |  |  |  |  |
Residential |  | $ | 111,406 |  |  | $ | 69,556 |  |  | $ | 180,962 |
Commercial |  | 106,237 |  |  | 41,662 |  |  | 147,899 |
Industrial |  | 19,891 |  |  | 10,665 |  |  | 30,556 |
Public authority |  | 6,099 |  |  | 1,708 |  |  | 7,807 |
Economy energy service |  | 4,958 |  |  | — |  |  | 4,958 |
Transmission |  | 37,466 |  |  | 34,980 |  |  | 72,446 |
Wholesale energy sales (1) |  | 62,804 |  |  | — |  |  | 62,804 |
Miscellaneous |  | 1,507 |  |  | 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 |
Commercial |  | 309,560 |  |  | 114,357 |  |  | 423,917 |
Industrial |  | 65,524 |  |  | 36,359 |  |  | 101,883 |
Public authority |  | 15,822 |  |  | 4,996 |  |  | 20,818 |
Economy energy service |  | 24,999 |  |  | — |  |  | 24,999 |
Transmission |  | 124,396 |  |  | 100,100 |  |  | 224,496 |
Wholesale energy sales (1) |  | 213,098 |  |  | — |  |  | 213,098 |
Miscellaneous |  | 4,293 |  |  | 2,832 |  |  | 7,125 |
Total revenues from contracts with customers |  | 1,096,999 |  |  | 406,057 |  |  | 1,503,056 |
Alternative revenue programs |  | 9,963 |  |  | 2,286 |  |  | 12,249 |
Other electric operating revenues |  | 11,779 |  |  | — |  |  | 11,779 |
Total Electric Operating Revenues |  | $ | 1,118,741 |  |  | $ | 408,343 |  |  | $ | 1,527,084 |
(1) Includes sales for resale activity resulting from PNM’s participation in the EIM. Increases in revenue in 2024 compared to 2023, resulted from refunds under the SJGS abandonment settlement agreement recorded in 2023 (Note 12).

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- 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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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