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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
TXNM has three reportable segments including PNM, TNMP, and Corporate and other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The measure of profitability used by the CODM is Segment earnings (loss) attributable to TXNM, as presented below. The CODM uses this measure of profitability to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget to actual variances on a regular basis when making decisions about allocating capital and operational expense funding to the segments. TXNM’s CODM is its President and COO who is also the CEO of the PNM and TNMP segments.

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 TXNM 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 until the close of the sale of NMRD on February 27, 2024 (Note 21). Eliminations of intercompany transactions are reflected in the Corporate and Other segment.

The following tables present summarized financial information for TXNM by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.

2024PNMTNMPCorporate
and Other
TXNM Consolidated
(In thousands)
Electric operating revenues$1,379,088 $592,111 $— $1,971,199 
Cost of energy
Fuel burn
130,380 — — 130,380 
Purchases for resale
286,399 — — 286,399 
Transmission by others
18,139 149,066 — 167,205 
Significant segment expenses
Administrative and general - direct
63,105 (1,452)151,089 212,742 
Administrative and general - corporate allocation
132,209 53,166 (185,375)— 
Customer related expenses
31,246 2,997 131 34,374 
Energy production costs
93,748 — — 93,748 
Regulatory disallowances
8,980 — — 8,980 
Depreciation and amortization
221,780 125,915 37,230 384,925 
Transmission and distribution costs
61,302 37,078 — 98,380 
Taxes other than income taxes
49,807 44,441 6,332 100,580 
Total operating expenses
1,097,095 411,211 9,407 1,517,713 
Net other income and (deductions)
61,494 8,725 (15,399)54,820 
Interest charges(106,018)(58,983)(63,065)(228,066)
Income taxes (benefit)29,217 27,114 (34,813)21,518 
Valencia non-controlling interest(16,040)— — (16,040)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to TXNM
$191,684 $103,528 $(53,058)$242,154 
At December 31, 2024:
Total Assets$7,407,279 $3,649,125 $155,329 $11,211,733 
Goodwill$51,632 $226,665 $— $278,297 
 
2023PNMTNMPCorporate
and Other
TXNM Consolidated
(In thousands)
Electric operating revenues$1,403,948 $535,250 $— $1,939,198 
Cost of energy
Fuel burn
138,538 — — 138,538 
Purchases for resale
499,921 — — 499,921 
Transmission by others
25,155 138,647 — 163,802 
Significant segment expenses
Administrative and general - direct
52,554 2,710 139,010 194,274 
Administrative and general - corporate allocation
124,321 47,470 (171,791)— 
Customer related expenses
29,775 3,783 68 33,626 
Energy production costs
91,610 — — 91,610 
Regulatory disallowances
70,750 1,173 — 71,923 
Depreciation and amortization
177,633 113,142 28,728 319,503 
Transmission and distribution costs
61,725 36,996 — 98,721 
Taxes other than income taxes
48,790 41,311 5,839 95,940 
Total operating expenses
1,320,772 385,232 1,854 1,707,858 
Net other income and (deductions)
41,358 8,368 (182)49,544 
Interest charges(86,574)(46,152)(57,629)(190,355)
Income taxes (benefit)(16,758)17,297 (16,889)(16,350)
Valencia non-controlling interest(18,533)— — (18,533)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to TXNM
$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
TXNM Consolidated
(In thousands)
Electric operating revenues$1,766,825 $482,730 $— $2,249,555 
Cost of energy
Fuel burn
299,411 — — 299,411 
Purchases for resale
541,828 — — 541,828 
Trading mark-to-market
(456)— — (456)
Transmission by others
23,230 123,928 — 147,158 
Significant segment expenses
Administrative and general - direct
62,505 3,607 130,336 196,448 
Administrative and general - corporate allocation
115,416 42,293 (157,709)— 
Customer related expenses
26,925 3,692 84 30,701 
Energy production costs
147,347 — — 147,347 
Regulatory disallowances
832 — — 832 
Depreciation and amortization
180,812 98,316 25,725 304,853 
Transmission and distribution costs
58,278 36,406 — 94,684 
Taxes other than income taxes
49,210 38,521 5,258 92,989 
Total operating expenses
1,505,338 346,763 3,694 1,855,795 
Net other income and (deductions)
(62,196)8,653 (999)(54,542)
Interest charges(61,073)(37,192)(29,643)(127,908)
Income taxes (benefit)19,198 15,161 (8,229)26,130 
Valencia non-controlling interest(15,122)— — (15,122)
Subsidiary preferred stock dividends(528)— — (528)
Segment earnings (loss) attributable to TXNM
$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 

Significant Segment Expenses

Reflected above are certain additional categories of operating expenses that are regularly provided to the CODM. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. Administrative and general - direct expenses are those that are incurred directly by the segment while corporate allocation are those costs that are incurred by the corporate and other segment and allocated to the utilities based on the nature of the cost incurred. Corporate allocation is eliminated in the corporate and other segment. Customer related expenses include meter reading, customer service, and bad debt expenses.

Major Customers

PNM’s participation in EIM, operated by CAISO, accounted for approximately 4%, 15%, and 24% of electric operating revenues during the years ended December 31, 2024, 2023, and 2022. 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, 2024, 2023, and 2022 accounted for more than 10% of the electric operating revenues of TNMP as follows:
Year Ended December 31,
202420232022
REP A26 %25 %27 %
REP B20 19 20