Segment Information

12 Months Ended

Dec. 31, 2016

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 includes the generation and sale of electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional assets as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale and transmission rates.

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.

Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development and NM Capital are also included in Corporate and Other.

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

2016	PNM			TNMP			Corporate and Other			Consolidated
	(In thousands)
Electric operating revenues	$	1,035,913		$	327,038		$	—		$	1,362,951
Cost of energy	299,714			80,882			—			380,596
Utility margin	736,199			246,156			—			982,355
Other operating expenses	414,662			93,389			(12,791		)	495,260
Depreciation and amortization	133,447			61,126			14,537			209,110
Operating income (loss)	188,090			91,641			(1,746		)	277,985
Interest income	10,173			—			12,120			22,293
Other income (deductions)	22,066			3,202			(1,739		)	23,529
Interest charges	(87,469		)	(29,335		)	(11,829		)	(128,633		)
Segment earnings (loss) before income taxes	132,860			65,508			(3,194		)	195,174
Income taxes (benefit)	40,922			23,836			(1,480		)	63,278
Segment earnings (loss)	91,938			41,672			(1,714		)	131,896
Valencia non-controlling interest	(14,519		)	—			—			(14,519		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	76,891		$	41,672		$	(1,714	)	$	116,849
At December 31, 2016:
Total Assets	$	4,867,546		$	1,383,223		$	220,311		$	6,471,080
Goodwill	$	51,632		$	226,665		$	—		$	278,297

2015	PNM			TNMP			Corporate and Other			Consolidated
Electric operating revenues	$	1,131,195		$	307,887		$	—		$	1,439,082
Cost of energy	391,131			73,518			—			464,649
Utility margin	740,064			234,369			—			974,433
Other operating expenses	590,967			88,051			(14,854		)	664,164
Depreciation and amortization	115,717			56,285			13,917			185,919
Operating income	33,380			90,033			937			124,350
Interest income	6,574			—			(76		)	6,498
Other income (deductions)	26,914			3,736			(485		)	30,165
Interest charges	(79,950		)	(27,681		)	(7,229		)	(114,860		)
Segment earnings (loss) before income taxes	(13,082		)	66,088			(6,853		)	46,153
Income taxes (benefit)	(12,758		)	24,125			3,708			15,075
Segment earnings (loss)	(324		)	41,963			(10,561		)	31,078
Valencia non-controlling interest	(14,910		)	—			—			(14,910		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	(15,762	)	$	41,963		$	(10,561	)	$	15,640
At December 31, 2015:
Total Assets	$	4,599,344		$	1,297,139		$	112,845		$	6,009,328
Goodwill	$	51,632		$	226,665		$	—		$	278,297

2014	PNM			TNMP			Corporate and Other			Consolidated
Electric operating revenues	$	1,147,914		$	287,939		$	—		$	1,435,853
Cost of energy	403,626			67,930			—			471,556
Utility margin	744,288			220,009			—			964,297
Other operating expenses	422,051			84,365			(14,450		)	491,966
Depreciation and amortization	109,524			50,056			13,054			172,634
Operating income	212,713			85,588			1,396			299,697
Interest income	8,557			—			(74		)	8,483
Other income (deductions)	12,258			2,138			(2,302		)	12,094
Interest charges	(79,442		)	(27,396		)	(12,789		)	(119,627		)
Segment earnings (loss) before income taxes	154,086			60,330			(13,769		)	200,647
Income taxes (benefit)	52,633			22,523			(5,418		)	69,738
Segment earnings (loss)	101,453			37,807			(8,351		)	130,909
Valencia non-controlling interest	(14,127		)	—			—			(14,127		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	86,798		$	37,807		$	(8,351	)	$	116,254
At December 31, 2014:
Total Assets	$	4,453,114		$	1,229,417		$	107,706		$	5,790,237
Goodwill	$	51,632		$	226,665		$	—		$	278,297

Major Customers

No individual customer accounted for more than 10% of the electric operating revenues of PNMR or PNM. Three REPs accounted for more than 10% of the electric operating revenues of TNMP, as follows:

	Year Ended December 31,
	2016		2015		2014
REP A	16	%	16	%	15	%
REP B	11	%	13	%	15	%
REP C	11	%	11	%	11	%