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Electric Operating Revenues
 9 Months Ended
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.
PNMTNMP
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 
Commercial149,245 45,735 194,980 
Industrial31,841 7,106 38,947 
Public authority7,433 1,920 9,353 
Economy energy service3,662 — 3,662 
Transmission35,671 39,195 74,866 
Wholesale energy sales (1)
8,311 — 8,311 
Miscellaneous1,511 916 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 
Commercial358,511 121,777 480,288 
Industrial90,811 24,878 115,689 
Public authority17,047 5,376 22,423 
Economy energy service15,257 — 15,257 
Transmission105,153 117,120 222,273 
Wholesale energy sales (1)
43,508 — 43,508 
Miscellaneous4,324 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 revenues2,606 — 2,606 
Total Electric Operating Revenues
$1,048,305 $445,930 $1,494,235 
PNMTNMP
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 
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 sales (1)
62,804 — 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 revenues905 — 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 sales (1)
213,098 — 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 

(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).