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Segment Information
 9 Months Ended
Sep. 30, 2020
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 capacity, as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale power 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. 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, NM Capital, and the equity method investment in NMRD are also included in Corporate and Other. 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 September 30, 2020
Electric operating revenues$364,504 $107,961 $— $472,465 
Cost of energy108,284 25,707 — 133,991 
Utility margin256,220 82,254 — 338,474 
Other operating expenses99,171 27,983 (4,885)122,269 
Depreciation and amortization40,509 22,492 5,399 68,400 
Operating income (loss)116,540 31,779 (514)147,805 
Interest income3,239 — (59)3,180 
Other income11,563 2,286 213 14,062 
Interest charges(14,747)(7,942)(4,574)(27,263)
Segment earnings (loss) before income taxes
116,595 26,123 (4,934)137,784 
Income taxes (benefit)13,591 2,202 (3,462)12,331 
Segment earnings (loss)
103,004 23,921 (1,472)125,453 
Valencia non-controlling interest
(3,553)— — (3,553)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$99,319 $23,921 $(1,472)$121,768 
Nine Months Ended September 30, 2020
Electric operating revenues$873,425 $290,311 $— $1,163,736 
Cost of energy250,692 75,872 — 326,564 
Utility margin622,733 214,439 — 837,172 
Other operating expenses299,284 78,444 (14,644)363,084 
Depreciation and amortization123,721 66,696 16,978 207,395 
Operating income (loss)199,728 69,299 (2,334)266,693 
Interest income9,882 — (208)9,674 
Other income (deductions)(1,509)4,810 (542)2,759 
Interest charges(51,554)(22,475)(14,756)(88,785)
Segment earnings (loss) before income taxes
156,547 51,634 (17,840)190,341 
Income taxes (benefit)16,127 4,447 (5,848)14,726 
Segment earnings (loss)
140,420 47,187 (11,992)175,615 
Valencia non-controlling interest
(11,222)— — (11,222)
Subsidiary preferred stock dividends
(396)— — (396)
Segment earnings (loss) attributable to PNMR
$128,802 $47,187 $(11,992)$163,997 
At September 30, 2020:
Total Assets
$5,449,238 $2,075,291 $217,583 $7,742,112 
Goodwill
$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended September 30, 2019
Electric operating revenues$331,113 $102,473 $— $433,586 
Cost of energy84,915 23,821 — 108,736 
Utility margin246,198 78,652 — 324,850 
Other operating expenses97,200 24,051 (5,291)115,960 
Depreciation and amortization40,545 22,005 5,800 68,350 
Operating income (loss)108,453 32,596 (509)140,540 
Interest income3,515 — (75)3,440 
Other income (deductions)770 1,766 (206)2,330 
Interest charges(18,492)(7,047)(4,820)(30,359)
Segment earnings (loss) before income taxes
94,246 27,315 (5,610)115,951 
Income taxes (benefit)9,525 2,228 (2,565)9,188 
Segment earnings (loss)
84,721 25,087 (3,045)106,763 
Valencia non-controlling interest
(3,860)— — (3,860)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$80,729 $25,087 $(3,045)$102,771 
Nine Months Ended September 30, 2019
Electric operating revenues$838,649 $274,809 $— $1,113,458 
Cost of energy243,120 71,025 — 314,145 
Utility margin595,529 203,784 — 799,313 
Other operating expenses459,180 73,303 (16,589)515,894 
Depreciation and amortization119,581 62,722 17,468 199,771 
Operating income (loss)16,768 67,759 (879)83,648 
Interest income10,701 — (212)10,489 
Other income (deductions)19,307 3,083 (1,021)21,369 
Interest charges(55,379)(22,408)(13,998)(91,785)
Segment earnings (loss) before income taxes
(8,603)48,434 (16,110)23,721 
Income taxes (benefit)(31,984)3,982 (4,418)(32,420)
Segment earnings (loss)
23,381 44,452 (11,692)56,141 
Valencia non-controlling interest
(10,188)— — (10,188)
Subsidiary preferred stock dividends
(396)— — (396)
Segment earnings (loss) attributable to PNMR
$12,797 $44,452 $(11,692)$45,557 
At September 30, 2019:
Total Assets
$5,176,831 $1,832,066 $192,035 $7,200,932 
Goodwill
$51,632 $226,665 $— $278,297 

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 customers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented under GAAP and is considered a non-GAAP measure.