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Segment Information
 3 Months Ended
Mar. 31, 2024
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, 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. In 2023, ETBC I, a special purpose entity that is wholly-owned by PNM, was formed for the limited purpose of purchasing, owning, and administering energy transition property, issuing Securitized Bonds, and performing related activities. See Note 6.

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 PNMR 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 on February 27, 2024 (Note 16). Eliminations of intercompany transactions are reflected in the Corporate and Other segment.

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
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended March 31, 2024
Electric operating revenues$308,115 $128,762 $— $436,877 
Cost of energy97,412 34,892 — 132,304 
Utility margin210,703 93,870 — 304,573 
Other operating expenses106,466 32,750 (8,420)130,796 
Depreciation and amortization53,287 30,382 9,518 93,187 
Operating income (loss)50,950 30,738 (1,098)80,590 
Interest income (expense)4,527 169 (116)4,580 
Other income (deductions)
20,546 876 (15,035)6,387 
Interest charges(25,116)(13,336)(15,310)(53,762)
Segment earnings (loss) before income taxes
50,907 18,447 (31,559)37,795 
Income taxes (benefit)5,811 3,864 (22,246)(12,571)
Segment earnings (loss)
45,096 14,583 (9,313)50,366 
Valencia non-controlling interest
(3,044)— — (3,044)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$41,920 $14,583 $(9,313)$47,190 
At March 31, 2024:
Total Assets
$6,878,575 $3,204,936 $174,142 $10,257,653 
Goodwill
$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended March 31, 2023
Electric operating revenues$430,165 $113,912 $— $544,077 
Cost of energy209,853 31,833 — 241,686 
Utility margin220,312 82,079 — 302,391 
Other operating expenses98,722 32,852 (6,348)125,226 
Depreciation and amortization43,686 27,440 6,948 78,074 
Operating income (loss)77,904 21,787 (600)99,091 
Interest income (expense)4,849 114 (120)4,843 
Other income (deductions)7,033 136 (127)7,042 
Interest charges(18,122)(10,425)(12,376)(40,923)
Segment earnings (loss) before income taxes
71,664 11,612 (13,223)70,053 
Income taxes (benefit)11,829 1,579 (3,628)9,780 
Segment earnings (loss)
59,835 10,033 (9,595)60,273 
Valencia non-controlling interest
(5,127)— — (5,127)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$54,576 $10,033 $(9,595)$55,014 
At March 31, 2023:
Total Assets
$6,306,396 $2,803,168 $243,572 $9,353,136 
Goodwill
$51,632 $226,665 $— $278,297 

Non-GAAP Financial Measures

The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to consumers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented and is considered a non-GAAP measure. PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP however, the calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below.
PNMTNMPCorporate and OtherPNMR Consolidated
(In thousands)
Three Months Ended March 31, 2024
Gross margin$120,854 $55,074 $— $175,928 
Energy production costs22,212 — — 22,212 
Transmission and distribution costs14,350 8,414 — 22,764 
Depreciation and amortization53,287 30,382 — 83,669 
1
Utility margin$210,703 $93,870 $— $304,573 
Three Months Ended March 31, 2023
Gross margin$140,381 $46,330 $— $186,711 
Energy production costs22,358 — — 22,358 
Transmission and distribution costs13,887 8,309 — 22,196 
Depreciation and amortization43,686 27,440 — 71,126 
1
Utility margin$220,312 $82,079 $— $302,391 
1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1.