Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided.

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 provides generation service to firm-requirements wholesale customers and sells electricity into the general wholesale market, as well as providing transmission services to third parties. The sale of electricity into the wholesale market includes the optimization of PNM's jurisdictional capacity, as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale and transmission rates.

TNMP

TNMP is an electric utility providing regulated transmission and distribution services in Texas under the TECA. TNMP's operations are subject to traditional rate regulation by the PUCT.

Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company.

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

PNMR SEGMENT INFORMATION

	PNM			TNMP			Corporate and Other			Consolidated
Three Months Ended June 30, 2013	(In thousands)
Electric operating revenues	$	279,690		$	67,909		$	—		$	347,599
Cost of energy	91,855			13,804			—			105,659
Margin	187,835			54,105			—			241,940
Other operating expenses	103,482			22,159			(3,207		)	122,434
Depreciation and amortization	26,051			12,279			3,309			41,639
Operating income (loss)	58,302			19,667			(102		)	77,867
Interest income	2,868			—			(35		)	2,833
Other income (deductions)	3,360			486			(2,213		)	1,633
Net interest charges	(19,890		)	(6,759		)	(3,967		)	(30,616		)
Segment earnings (loss) before income taxes	44,640			13,394			(6,317		)	51,717
Income taxes	14,943			5,055			336			20,334
Segment earnings (loss)	29,697			8,339			(6,653		)	31,383
Valencia non-controlling interest	(3,573		)	—			—			(3,573		)
Subsidiary preferred stock dividends	(132		)	—			—			(132		)
Segment earnings (loss) attributable to PNMR	$	25,992		$	8,339		$	(6,653	)	$	27,678
Six Months Ended June 30, 2013
Electric operating revenues	$	537,583		$	127,680		$	—		$	665,263
Cost of energy	183,514			26,851			—			210,365
Margin	354,069			100,829			—			454,898
Other operating expenses	206,643			44,148			(6,910		)	243,881
Depreciation and amortization	51,884			23,960			6,602			82,446
Operating income	95,542			32,721			308			128,571
Interest income	5,541			—			(74		)	5,467
Other income (deductions)	4,766			694			(3,936		)	1,524
Net interest charges	(39,847		)	(14,005		)	(8,062		)	(61,914		)
Segment earnings (loss) before income taxes	66,002			19,410			(11,764		)	73,648
Income taxes (benefit)	21,532			7,345			(574		)	28,303
Segment earnings (loss)	44,470			12,065			(11,190		)	45,345
Valencia non-controlling interest	(6,777		)	—			—			(6,777		)
Subsidiary preferred stock dividends	(264		)	—			—			(264		)
Segment earnings (loss) attributable to PNMR	$	37,429		$	12,065		$	(11,190	)	$	38,304
At June 30, 2013:
Total Assets	$	4,185,189		$	1,155,928		$	62,789		$	5,403,906
Goodwill	$	51,632		$	226,665		$	—		$	278,297
Additions to utility and non-utility plant included in accounts payable	$	7,900		$	1,101		$	749		$	9,750

	PNM			TNMP			Corporate and Other			Consolidated
Three Months Ended June 30, 2012	(In thousands)
Electric operating revenues	$	260,094		$	63,766		$	—		$	323,860
Cost of energy	83,235			11,484			—			94,719
Margin	176,859			52,282			—			229,141
Other operating expenses	106,244			21,319			(4,582		)	122,981
Depreciation and amortization	23,946			12,066			5,042			41,054
Operating income (loss)	46,669			18,897			(460		)	65,106
Interest income	3,429			—			(43		)	3,386
Other income (deductions)	(989		)	774			(1,434		)	(1,649		)
Net interest charges	(18,928		)	(7,069		)	(4,201		)	(30,198		)
Segment earnings (loss) before income taxes	30,181			12,602			(6,138		)	36,645
Income taxes (benefit)	9,841			4,584			(2,879		)	11,546
Segment earnings (loss)	20,340			8,018			(3,259		)	25,099
Valencia non-controlling interest	(3,455		)	—			—			(3,455		)
Subsidiary preferred stock dividends	(132		)	—			—			(132		)
Segment earnings (loss) attributable to PNMR	$	16,753		$	8,018		$	(3,259	)	$	21,512
Six Months Ended June 30, 2012
Electric operating revenues	$	510,510		$	118,724		$	—		$	629,234
Cost of energy	163,792			22,773			—			186,565
Margin	346,718			95,951			—			442,669
Other operating expenses	210,364			41,908			(7,906		)	244,366
Depreciation and amortization	47,580			23,353			8,535			79,468
Operating income (loss)	88,774			30,690			(629		)	118,835
Interest income	6,764			—			(86		)	6,678
Other income (deductions)	3,995			878			(3,974		)	899
Net interest charges	(37,422		)	(14,167		)	(8,176		)	(59,765		)
Segment earnings (loss) before income taxes	62,111			17,401			(12,865		)	66,647
Income taxes (benefit)	20,694			6,372			(5,995		)	21,071
Segment earnings (loss)	41,417			11,029			(6,870		)	45,576
Valencia non-controlling interest	(6,720		)	—			—			(6,720		)
Subsidiary preferred stock dividends	(264		)	—			—			(264		)
Segment earnings (loss) attributable to PNMR	$	34,433		$	11,029		$	(6,870	)	$	38,592
At June 30, 2012:
Total Assets	$	4,069,375		$	1,054,679		$	128,535		$	5,252,589
Goodwill	$	51,632		$	226,665		$	—		$	278,297
Additions to utility and non-utility plant included in accounts payable	$	8,681		$	551		$	392		$	9,624