Electric Operating Revenues

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

PNMR is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’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 2018 Annual Reports on Form 10-K.

Disaggregation of Revenues

A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. The table also reflects alternative revenue program revenues (“ARP”) and other revenues.



	PNM		TNMP		PNMR Consolidated
Three Months Ended June 30, 2019	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	86,328	$	33,640	$	119,968
Commercial	98,968		28,058		127,026
Industrial	15,329		5,295		20,624
Public authority	4,596		1,391		5,987
Economy energy service	6,024		—		6,024
Transmission	14,342		17,585		31,927
Miscellaneous	2,474		887		3,361
Total revenues from contracts with customers	228,061		86,856		314,917
Alternative revenue programs	691		5,153		5,844
Other electric operating revenues	9,467		—		9,467
Total Electric Operating Revenues	$	238,219	$	92,009	$	330,228



	PNM		TNMP		PNMR Consolidated
Six Months Ended June 30, 2019	(In thousands)
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	193,629	$	64,072	$	257,701
Commercial	184,201		55,487		239,688
Industrial	30,076		10,911		40,987
Public authority	9,307		2,764		12,071
Economy energy service	12,946		—		12,946
Transmission	27,727		31,589		59,316
Miscellaneous	6,116		1,789		7,905
Total revenues from contracts with customers	464,002		166,612		630,614
Alternative revenue programs	756		5,724		6,480
Other electric operating revenues	42,778		—		42,778
Total Electric Operating Revenues	$	507,536	$	172,336	$	679,872



Three Months Ended June 30, 2018
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	99,508	$	31,315	$	130,823
Commercial	110,652		28,082		138,734
Industrial	14,597		4,184		18,781
Public authority	5,220		1,399		6,619
Economy energy service	6,378		—		6,378
Transmission	14,108		16,743		30,851
Miscellaneous	4,265		2,208		6,473
Total revenues from contracts with customers	254,728		83,931		338,659
Alternative revenue programs	1,789		3,871		5,660
Other electric operating revenues	7,994		—		7,994
Total Electric Operating Revenues	$	264,511	$	87,802	$	352,313

Six Months Ended June 30, 2018
Electric Operating Revenues:
Contracts with customers:
Retail electric revenue
Residential	$	196,676	$	60,581	$	257,257
Commercial	193,501		55,234		248,735
Industrial	28,056		8,489		36,545
Public authority	9,855		2,815		12,670
Economy energy service	13,666		—		13,666
Transmission	26,590		33,251		59,841
Miscellaneous	8,947		4,349		13,296
Total revenues from contracts with customers	477,291		164,719		642,010
Alternative revenue programs	1,854		4,730		6,584
Other electric operating revenues	21,597		—		21,597
Total Electric Operating Revenues	$	500,742	$	169,449	$	670,191

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 to the customer or end-user, including amounts under ARPs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for uncollectible accounts, includes $52.7 million at June 30, 2019 and $61.7 million at December 31, 2018 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). The Company has no contract assets as of June 30, 2019 or December 31, 2018. 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. Under its Open Access Transmission Tariff, PNM accepts upfront consideration for capacity reservations requested by transmission customers, which requires PNM to defer the customer’s transmission capacity rights for a specific period of time. PNM recognizes the revenue of these capacity reservations over the period the capacity rights have been reserved, which is generally over one year. 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 year. Deferred revenues on these arrangements are recorded as contract liabilities. The Company has no other arrangements with remaining performance obligations to which a portion of the transaction price would be required to be allocated.

Changes during the period in the balances of contract liabilities, which are included in other current liabilities on the Condensed Consolidated Balance Sheets, are as follows:



	PNM			TNMP			PNMR Consolidated
	(In thousands)
Balance at December 31, 2018	$	349		$	—		$	349
Consideration received in advance of service to be provided	4,157			1,517			5,674
Deferred revenue earned	(2,259		)	(776		)	(3,035		)
Balance at June 30, 2019	$	2,247		$	741		$	2,988