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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2024

Variable Interest Entities [Abstract]

Summarized financial information for Valencia is as follows:


	Results of Operations
	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Electric Operating Revenues	$	6,659	$	6,679	$	17,324	$	19,427
Operating Expenses	1,595		1,621		5,433		5,255
Earnings Attributable to Non-controlling Interest	$	5,064	$	5,058	$	11,891	$	14,172


	Financial Position
	September 30,		December 31,
	2024		2023
	(In thousands)
Current assets	$	3,859	$	3,422
Net utility plant	45,122		47,253
Total assets	48,981		50,675
Current liabilities	912		717
Equity – Non-controlling Interest	$	48,069	$	49,958

The following tables summarize the impact of ETBC I on PNM’s Financial Statements:


	Results of Operations
	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
	(In thousands)
Electric Operating Revenues	$	6,336	$	18,092
Depreciation and amortization	1,232		2,874
Interest Charges	5,014		15,078
Other	90		140
Net Earnings	$	—	$	—


	Financial Position
	September 30, 2024		December 31, 2023
	(In thousands)
Regulatory assets - Current	$	—	$	2,724
Restricted cash (included in Other current assets)	7,470		—
Restricted cash (included in Other deferred charges)	1,731		1,728
Securitized Cost (included in Regulatory assets - Deferred)	337,755		340,629
Current installments of long-term debt	6,907		2,529
Accrued interest and taxes	2,484		2,502
Regulatory liabilities - Current	5,862		—
Long-term Debt	331,699		338,521

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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