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Lease Commitments (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Assets and Liabilities, Lessee
Information related to the Company’s operating leases recorded on the Consolidated Balance Sheets is presented below:
December 31, 2023December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Operating leases:
Operating lease assets, net of amortization
$180,370 $1,814 $182,201 $52,556 $3,426 $55,982 
Current portion of operating lease liabilities
11,371 895 12,267 17,239 1,543 18,781 
Long-term portion of operating lease liabilities
166,191 809 167,000 39,633 1,703 41,336 

As discussed above, the Company classifies its fleet vehicle and equipment leases and its office equipment leases commencing on or after January 1, 2019, as financing leases. Information related to the Company’s financing leases recorded on the Consolidated Balance Sheets is presented below:
December 31, 2023December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Financing leases:
Non-utility property
$25,425 $24,487 $49,981 $19,324 $20,084 $39,738 
Accumulated depreciation
(11,984)(11,869)(23,905)(7,726)(8,202)(16,189)
Non-utility property, net
$13,441 $12,618 $26,076 $11,598 $11,882 $23,549 
Other current liabilities
$4,146 $4,616 $8,776 $3,441 $3,867 $7,363 
Other deferred credits
9,300 8,023 17,326 8,079 8,028 16,123 
Lease, Cost
Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities is presented below:
December 31, 2023December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
Weighted average remaining lease term (years):
Operating leases
16.791.6516.656.742.166.48
Financing leases
3.813.083.453.993.393.68
Weighted average discount rate:
Operating leases
5.61 %4.16 %5.60 %4.01 %3.94 %4.00 %
Financing leases4.54 4.63 4.58 3.36 3.53 3.44 
Information for the components of lease expense is as follows:
Year Ended December 31, 2023
PNMTNMPPNMR Consolidated
(In thousands)
Operating lease cost:
Battery storage leases
$4,351 $— $4,351 
Other operating leases
11,127 1,479 12,606 
Amounts capitalized(374)(1,298)(1,672)
Total operating lease expense
15,104 181 15,285 
Financing lease cost:
Amortization of right-of-use assets
4,566 4,634 9,253 
Interest on lease liabilities
562 497 1,060 
Amounts capitalized(3,190)(4,250)(7,440)
Total financing lease expense
1,938 881 2,873 
Variable lease expense1,342 — 1,342 
Short-term lease expense
675 29 782 
Total lease expense for the period$19,059 $1,091 $20,282 

Year Ended December 31, 2022
PNMTNMPPNMR Consolidated
(In thousands)
Operating lease cost
$26,764 $2,020 $28,835 
Amounts capitalized(690)(1,728)(2,417)
Total operating lease expense
26,074 292 26,418 
Financing lease cost:
Amortization of right-of-use assets
3,175 3,279 6,529 
Interest on lease liabilities
327 330 659 
Amounts capitalized(2,264)(3,208)(5,471)
Total financing lease expense
1,238 401 1,717 
Variable lease expense890 — 890 
Short-term lease expense (1)
3,058 5 3,109 
Total lease expense for the period$31,260 $698 $32,134 
(1) Includes expense of $2.7 million for the twelve months ended December 31, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $2.7 million for the twelve months ended December 31, 2022.
Supplemental cash flow information related to the Company’s leases is as follows:

Year Ended December 31, 2023Year Ended December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$21,575 $110 $21,685 $25,687 $246 $25,984 
Operating cash flows from financing leases
183 73 256 96 43 141 
Financing cash flows from financing leases1,671 802 2,527 1,123 499 1,711 
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases
$138,204 $6 $138,210 $2,924 $179 $3,103 
Financing leases
6,421 5,407 11,828 4,205 4,061 8,266 
Finance Lease, Liability, Maturity
Future expected lease payments are shown below:
As of December 31, 2023
PNMTNMPPNMR Consolidated
Operating
Operating
Financing
Battery Storage
Other
FinancingOperatingFinancing
Battery Storage
Other
(In thousands)
2024
$4,649 $11,786 $8,046 $5,083 $945 $9,746 $11,786 $8,991 
2025
3,605 11,786 7,087 3,991 770 7,598 11,786 7,857 
2026
3,089 11,786 7,025 2,781 76 5,870 11,786 7,101 
2027
1,859 11,786 7,029 1,381 — 3,240 11,786 7,029 
2028
889 11,786 7,032 310 — 1,199 11,786 7,032 
Later years
614 172,254 10,587 37 — 651 172,254 10,587 
Total minimum lease payments14,705 231,184 46,806 13,583 1,791 28,304 231,184 48,597 
Less: Imputed interest1,259 94,563 5,865 944 87 2,202 94,563 5,951 
Lease liabilities
$13,446 $136,621 $40,941 $12,639 $1,704 $26,102 $136,621 $42,646 
Lessee, Operating Lease, Liability, Maturity
Future expected lease payments are shown below:
As of December 31, 2023
PNMTNMPPNMR Consolidated
Operating
Operating
Financing
Battery Storage
Other
FinancingOperatingFinancing
Battery Storage
Other
(In thousands)
2024
$4,649 $11,786 $8,046 $5,083 $945 $9,746 $11,786 $8,991 
2025
3,605 11,786 7,087 3,991 770 7,598 11,786 7,857 
2026
3,089 11,786 7,025 2,781 76 5,870 11,786 7,101 
2027
1,859 11,786 7,029 1,381 — 3,240 11,786 7,029 
2028
889 11,786 7,032 310 — 1,199 11,786 7,032 
Later years
614 172,254 10,587 37 — 651 172,254 10,587 
Total minimum lease payments14,705 231,184 46,806 13,583 1,791 28,304 231,184 48,597 
Less: Imputed interest1,259 94,563 5,865 944 87 2,202 94,563 5,951 
Lease liabilities
$13,446 $136,621 $40,941 $12,639 $1,704 $26,102 $136,621 $42,646