TXNM Energy (TXNM) 10-Q 4 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 28, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity Registrant Name	PNM Resources, Inc.
Entity Incorporation, State or Country Code	NM
Entity Address, Address Line One	414 Silver Ave. SW
Entity Address, City or Town	Albuquerque
Entity Address, State or Province	NM
Entity Address, Postal Zip Code	87102-3289
City Area Code	505
Local Phone Number	241-2700
Entity File Number	001-32462
Entity Tax Identification Number	85-0468296
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PNM
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		85,834,874
Entity Central Index Key	0001108426
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Amendment Flag	false
PNM
Entity Information [Line Items]
Entity Registrant Name	Public Service Company of New Mexico
Entity Address, Address Line One	414 Silver Ave. SW
Entity Address, City or Town	Albuquerque
Entity Address, State or Province	NM
Entity Address, Postal Zip Code	87102-3289
City Area Code	505
Local Phone Number	241-2700
Entity File Number	001-06986
Entity Tax Identification Number	85-0019030
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		39,117,799
Entity Central Index Key	0000081023
Current Fiscal Year End Date	--12-31
Texas-New Mexico Power Company
Entity Information [Line Items]
Entity Registrant Name	Texas-New Mexico Power Company
Entity Address, Address Line One	577 N. Garden Ridge Blvd.
Entity Address, City or Town	Lewisville
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75067
City Area Code	972
Local Phone Number	420-4189
Entity File Number	002-97230
Entity Tax Identification Number	75-0204070
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		6,358
Entity Central Index Key	0000022767
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - PNMR - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Electric Operating Revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Operating Expenses:
Administrative and general	54,039	51,342	109,149	107,203
Regulatory disallowances and restructuring costs	3,731	1,399	3,731	1,399
Depreciation and amortization	79,139	76,769	157,213	152,533
Transmission and distribution costs	25,465	21,156	47,661	39,622
Taxes other than income taxes	24,401	24,577	49,963	48,556
Total operating expenses	384,826	413,338	829,812	789,388
Operating income	92,330	86,392	191,421	154,460
Other Income and Deductions:
Interest income	5,359	3,327	10,202	7,619
Gains (losses) on investment securities	3,777	(41,795)	10,219	(68,368)
Other income	5,600	5,151	8,693	9,481
Other (deductions)	(3,515)	(3,641)	(6,008)	(5,882)
Net other income and deductions	11,221	(36,958)	23,106	(57,150)
Interest Charges	45,899	29,217	86,822	55,437
Earnings before Income Taxes	57,652	20,217	127,705	41,873
Income Taxes (Benefits)	8,229	1,094	18,009	3,532
Net Earnings (Loss)	49,423	19,123	109,696	38,341
(Earnings) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Preferred Stock Dividend Requirements	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	$ 45,304	$ 15,361	$ 100,318	$ 31,352
Net Earnings Attributable to PNMR per Common Share:
Basic (dollars per share)	$ 0.53	$ 0.18	$ 1.17	$ 0.36
Diluted (dollars per share)	0.53	0.18	1.16	0.36
Dividends Declared per Common Share (dollars per share)	$ 0.3675	$ 0.3475	$ 0.7350	$ 0.6950
Energy
Electric Operating Revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Operating Expenses:
Energy costs	172,452	195,596	414,138	364,010
Energy Production
Operating Expenses:
Energy costs	$ 25,599	$ 42,499	$ 47,957	$ 76,065

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - PNMR - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 49,423	$ 19,123	$ 109,696	$ 38,341
Unrealized Gains on Available-for-Sale Debt Securities:
Net increase (decrease) in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(99), $744, $(1,158) and $2,401	291	(2,184)	3,402	(7,051)
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $477, $366, $655, and $741	(1,401)	(1,074)	(1,925)	(2,176)
Pension Liability Adjustment:
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(303), $(451), $(606), and $(902)	891	1,325	1,782	2,650
Fair Value Adjustment for Cash Flow Hedges:
Change in fair market value, net of income tax (expense) of $(949), $(876), $(906), and $(876)	2,786	2,572	2,661	2,572
Reclassification adjustment for gains (losses) included in net earnings, net of income tax (expense) benefit of $(869), $301, $(304), and $301	2,552	(884)	893	(884)
Total Other Comprehensive Income (Loss)	5,119	(245)	6,813	(4,889)
Comprehensive Income (Loss)	54,542	18,878	116,509	33,452
Comprehensive (Income) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Preferred Stock Dividend Requirements of Subsidiary	(132)	(132)	(264)	(264)
Comprehensive Income (Loss) Attributable to PNM	$ 50,423	$ 15,116	$ 107,131	$ 26,463

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income - PNMR (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit	$ (99)	$ 744	$ (1,158)	$ 2,401
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit)	477	366	655	741
Pension liability adjustment, income tax expense (benefit)	(303)	(451)	(606)	(902)
Change in fair market value, income tax (expense) benefit	(949)	(876)	(906)	(876)
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit)	$ (869)	$ 301	$ (304)	$ 301

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - PNMR - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities:
Net Earnings	$ 109,696	$ 38,341
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	173,851	169,942
Deferred income tax expense	17,132	2,405
(Gains) losses on investment securities	(10,219)	68,368
Stock based compensation expense	4,343	4,816
Regulatory disallowances and restructuring costs	3,731	1,399
Allowance for equity funds used during construction	(5,309)	(5,839)
Other, net	742	754
Changes in certain assets and liabilities:
Accounts receivable and unbilled revenues	56,725	(36,893)
Materials, supplies, and fuel stock	(14,283)	(10,353)
Other current assets	(18,399)	9,773
Other assets	(6,407)	4,870
Accounts payable	(23,569)	4,954
Accrued interest and taxes	(8,000)	(2,312)
Other current liabilities	(23,360)	(2,615)
Other liabilities	(14,231)	(29,746)
Net cash flows from operating activities	242,443	217,864
Cash Flows From Investing Activities:
Utility plant additions	(537,004)	(475,732)
Proceeds from sale of PVNGS plant assets (Note 13)	28,372	0
Proceeds from sales of investment securities	274,777	230,880
Purchases of investment securities	(281,662)	(234,848)
Purchases of investment securities	(14,750)	0
Other, net	4	512
Net cash flows used in investing activities	(530,263)	(479,188)
Cash Flows From Financing Activities:
Revolving credit facilities borrowings (repayments), net	94,500	203,600
Long-term borrowings	960,000	238,000
Repayment of long-term debt	(685,000)	(104,500)
Awards of common stock	(9,618)	(7,625)
Dividends paid	(63,353)	(59,919)
Valencia’s transactions with its owner	(10,755)	(7,965)
Transmission interconnection and security deposit arrangements	29,362	46,643
Debt issuance costs and other, net	(5,750)	(3,161)
Net cash flows from financing activities	291,382	263,704
Change in Cash and Cash Equivalents	3,562	2,380
Cash and Cash Equivalents at Beginning of Period	4,078	1,104
Cash and Cash Equivalents at End of Period	7,640	3,484
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	82,947	50,057
Income taxes paid (refunded), net	1,400	904
Supplemental schedule of noncash investing activities:
Decrease in accrued plant additions	$ 44,547	$ 47,626

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - PNMR - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 7,640	$ 4,078
Accounts receivable, net of allowance for credit losses of $4,753 and $4,925	121,113	183,669
Unbilled revenues	67,504	63,473
Other receivables	31,233	20,320
Materials, supplies, and fuel stock	81,017	66,733
Regulatory assets	59,999	20,265
Prepaid assets	23,417	18,465
Income taxes receivable	2,875	2,351
Other current assets	9,839	31,624
Total current assets	404,637	410,978
Other Property and Investments:
Investment securities	433,192	417,476
Equity investment in NMRD	106,430	90,620
Other investments	175	177
Non-utility property, net	29,064	26,841
Total other property and investments	568,861	535,114
Utility Plant:
Plant in service, held for future use, and to be abandoned	9,223,619	9,164,564
Less accumulated depreciation and amortization	2,680,094	2,659,952
Net plant in service and plant held for future use	6,543,525	6,504,612
Construction work in progress	593,995	372,988
Nuclear fuel, net of accumulated amortization of $29,912 and $43,985	77,679	95,223
Net utility plant	7,215,199	6,972,823
Deferred Charges and Other Assets:
Regulatory assets	932,294	846,686
Goodwill	278,297	278,297
Operating lease right-of-use assets, net of accumulated amortization	50,104	55,982
Other deferred charges	177,578	157,497
Total deferred charges and other assets	1,438,273	1,338,462
Assets	9,626,970	9,257,377
Current Liabilities:
Short-term debt	326,500	232,000
Current installments of long-term debt	422,338	184,793
Accounts payable	147,593	215,708
Customer deposits	6,227	6,117
Accrued interest and taxes	69,307	76,783
Regulatory liabilities	3,226	17,002
Operating lease liabilities	8,825	18,781
Dividends declared	132	31,676
Transmission interconnection arrangement liabilities	28,527	20,473
Other current liabilities	95,564	87,037
Total current liabilities	1,108,239	890,370
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs	3,927,625	3,892,594
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	861,445	822,831
Regulatory liabilities	766,343	755,202
Asset retirement obligations	227,592	223,377
Accrued pension liability and postretirement benefit cost	29,487	32,799
Operating lease liabilities	34,658	41,336
Other deferred credits	346,456	342,413
Total deferred credits and liabilities	2,265,981	2,217,958
Total liabilities	7,301,845	7,000,922
Commitments and Contingencies (Note 11)
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares)	11,529	11,529
PNM common stockholder’s equity:
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares)	1,423,827	1,429,102
Accumulated other comprehensive income (loss), net of income taxes	(59,235)	(66,048)
Retained earnings	897,651	828,878
Total PNM common stockholder’s equity	2,262,243	2,191,932
Non-controlling interest in Valencia	51,353	52,994
Total equity	2,313,596	2,244,926
Total liabilities and stockholders' equity	$ 9,626,970	$ 9,257,377

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets - PNMR (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for uncollectible accounts	$ 4,753	$ 4,925
Accumulated depreciation, nuclear fuel	$ 29,912	$ 43,985
Cumulative preferred stock of subsidiary, stated value (in dollars per share)	$ 100	$ 100
Cumulative preferred stock of subsidiary, shares authorized (in shares)	10,000,000	10,000,000
Cumulative preferred stock of subsidiary, shares issued (in shares)	115,293	115,293
Cumulative preferred stock of subsidiary, shares outstanding (in shares)	115,293	115,293
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	85,834,874	85,834,874
Common stock, shares outstanding (in shares)	85,834,874	85,834,874

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Equity - PNMR - USD ($) $ in Thousands	Total	Total PNMR Common Stockholders’ Equity	Common Stock	AOCI	Retained Earnings	Non- controlling Interest in Valencia
Beginning balance at Dec. 31, 2021	$ 2,222,929	$ 2,167,524	$ 1,429,257	$ (71,936)	$ 810,203	$ 55,405
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings before subsidiary preferred stock dividends	38,341	31,616			31,616	6,725
Total other comprehensive income (loss)	(4,889)	(4,889)		(4,889)
Subsidiary preferred stock dividends	(264)	(264)			(264)
Dividends declared on common stock	(59,656)	(59,656)			(59,656)
Awards of common stock	(7,625)	(7,625)	(7,625)
Stock based compensation expense	4,816	4,816	4,816
Valencia’s transactions with its owner	(7,965)					(7,965)
Ending balance at Jun. 30, 2022	2,185,687	2,131,522	1,426,448	(76,825)	781,899	54,165
Beginning balance at Mar. 31, 2022	2,169,800	2,115,532	1,425,574	(76,580)	766,538	54,268
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings before subsidiary preferred stock dividends	19,123	15,493			15,493	3,630
Total other comprehensive income (loss)	(245)	(245)		(245)
Subsidiary preferred stock dividends	(132)	(132)			(132)
Awards of common stock	(890)	(890)	(890)
Stock based compensation expense	1,764	1,764	1,764
Valencia’s transactions with its owner	(3,733)					(3,733)
Ending balance at Jun. 30, 2022	2,185,687	2,131,522	1,426,448	(76,825)	781,899	54,165
Beginning balance at Dec. 31, 2022	2,244,926	2,191,932	1,429,102	(66,048)	828,878	52,994
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings before subsidiary preferred stock dividends	109,696	100,582			100,582	9,114
Total other comprehensive income (loss)	6,813	6,813		6,813
Subsidiary preferred stock dividends	(264)	(264)			(264)
Dividends declared on common stock	(31,545)	(31,545)			(31,545)
Awards of common stock	(9,618)	(9,618)	(9,618)
Stock based compensation expense	4,343	4,343	4,343
Valencia’s transactions with its owner	(10,755)					(10,755)
Ending balance at Jun. 30, 2023	2,313,596	2,262,243	1,423,827	(59,235)	897,651	51,353
Beginning balance at Mar. 31, 2023	2,264,802	2,212,191	1,424,198	(64,354)	852,347	52,611
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings before subsidiary preferred stock dividends	49,423	45,436			45,436	3,987
Total other comprehensive income (loss)	5,119	5,119		5,119
Subsidiary preferred stock dividends	(132)	(132)			(132)
Awards of common stock	(1,224)	(1,224)	(1,224)
Stock based compensation expense	853	853	853
Valencia’s transactions with its owner	(5,245)					(5,245)
Ending balance at Jun. 30, 2023	$ 2,313,596	$ 2,262,243	$ 1,423,827	$ (59,235)	$ 897,651	$ 51,353

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Earnings - PNM - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Electric Operating Revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Operating Expenses:
Administrative and general	54,039	51,342	109,149	107,203
Regulatory disallowances and restructuring costs	3,731	1,399	3,731	1,399
Depreciation and amortization	79,139	76,769	157,213	152,533
Transmission and distribution costs	25,465	21,156	47,661	39,622
Taxes other than income taxes	24,401	24,577	49,963	48,556
Total operating expenses	384,826	413,338	829,812	789,388
Operating income	92,330	86,392	191,421	154,460
Other Income and Deductions:
Interest income	5,359	3,327	10,202	7,619
Gains (losses) on investment securities	3,777	(41,795)	10,219	(68,368)
Other income	5,600	5,151	8,693	9,481
Other (deductions)	(3,515)	(3,641)	(6,008)	(5,882)
Net other income and deductions	11,221	(36,958)	23,106	(57,150)
Interest Charges	45,899	29,217	86,822	55,437
Earnings before Income Taxes	57,652	20,217	127,705	41,873
Income Taxes (Benefits)	8,229	1,094	18,009	3,532
Net Earnings (Loss)	49,423	19,123	109,696	38,341
(Earnings) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Preferred Stock Dividend Requirements	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	45,304	15,361	100,318	31,352
Energy
Electric Operating Revenues	477,156	499,730	1,021,233	943,848
Operating Expenses:
Energy costs	172,452	195,596	414,138	364,010
Energy Production
Operating Expenses:
Energy costs	25,599	42,499	47,957	76,065
PNM
Electric Operating Revenues	338,242	376,754	768,407	715,463
Operating Expenses:
Administrative and general	48,745	47,114	97,718	97,461
Regulatory disallowances and restructuring costs	3,731	1,399	3,731	1,399
Depreciation and amortization	44,064	45,981	87,750	91,771
Transmission and distribution costs	14,755	13,518	28,642	25,129
Taxes other than income taxes	13,324	12,844	26,828	26,409
Total operating expenses	283,827	327,319	636,088	621,012
Operating income	54,415	49,435	132,319	94,451
Other Income and Deductions:
Interest income	5,370	3,267	10,219	6,400
Gains (losses) on investment securities	3,777	(41,795)	10,219	(68,368)
Other income	2,721	2,863	5,172	5,911
Other (deductions)	(2,803)	(2,884)	(4,663)	(4,575)
Net other income and deductions	9,065	(38,549)	20,947	(60,632)
Interest Charges	20,766	14,523	38,888	29,095
Earnings before Income Taxes	42,714	(3,637)	114,378	4,724
Income Taxes (Benefits)	7,411	(1,182)	19,240	(359)
Net Earnings (Loss)	35,303	(2,455)	95,138	5,083
(Earnings) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Net Earnings (Loss) Attributable to PNM	31,316	(6,085)	86,024	(1,642)
Preferred Stock Dividend Requirements	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	31,184	(6,217)	85,760	(1,906)
PNM | Energy
Operating Expenses:
Energy costs	133,609	163,964	343,462	302,778
PNM | Energy Production
Operating Expenses:
Energy costs	$ 25,599	$ 42,499	$ 47,957	$ 76,065

Condensed Consolidated Statem_7

Condensed Consolidated Statements of Comprehensive Income - PNM - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Earnings (Loss)	$ 49,423	$ 19,123	$ 109,696	$ 38,341
Unrealized Gains on Available-for-Sale Debt Securities:
Net increase (decrease) in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(99), $744, $(1,158) and $2,401	291	(2,184)	3,402	(7,051)
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $477, $366, $655, and $741	(1,401)	(1,074)	(1,925)	(2,176)
Pension Liability Adjustment:
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(303), $(451), $(606), and $(902)	891	1,325	1,782	2,650
Total Other Comprehensive Income (Loss)	5,119	(245)	6,813	(4,889)
Comprehensive Income (Loss)	54,542	18,878	116,509	33,452
Comprehensive (Income) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Comprehensive Income (Loss) Attributable to PNM	50,423	15,116	107,131	26,463
PNM
Net Earnings (Loss)	35,303	(2,455)	95,138	5,083
Unrealized Gains on Available-for-Sale Debt Securities:
Net increase (decrease) in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(99), $744, $(1,158) and $2,401	291	(2,184)	3,402	(7,051)
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $477, $366, $655, and $741	(1,401)	(1,074)	(1,925)	(2,176)
Pension Liability Adjustment:
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(303), $(451), $(606), and $(902)	891	1,325	1,782	2,650
Total Other Comprehensive Income (Loss)	(219)	(1,933)	3,259	(6,577)
Comprehensive Income (Loss)	35,084	(4,388)	98,397	(1,494)
Comprehensive (Income) Attributable to Valencia Non-controlling Interest	(3,987)	(3,630)	(9,114)	(6,725)
Comprehensive Income (Loss) Attributable to PNM	$ 31,097	$ (8,018)	$ 89,283	$ (8,219)

Condensed Consolidated Statem_8

Condensed Consolidated Statements of Comprehensive Income - PNM (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit	$ (99)	$ 744	$ (1,158)	$ 2,401
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit)	477	366	655	741
Pension liability adjustment, income tax expense (benefit)	(303)	(451)	(606)	(902)
PNM
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit	(99)	744	(1,158)	2,401
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit)	477	366	655	741
Pension liability adjustment, income tax expense (benefit)	$ (303)	$ (451)	$ (606)	$ (902)

Condensed Consolidated Statem_9

Condensed Consolidated Statements of Cash Flows - PNM - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities:
Net Earnings	$ 109,696	$ 38,341
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	173,851	169,942
Deferred income tax expense	17,132	2,405
(Gains) losses on investment securities	(10,219)	68,368
Regulatory disallowances and restructuring costs	3,731	1,399
Allowance for equity funds used during construction	(5,309)	(5,839)
Other, net	742	754
Changes in certain assets and liabilities:
Accounts receivable and unbilled revenues	56,725	(36,893)
Materials, supplies, and fuel stock	(14,283)	(10,353)
Other current assets	(18,399)	9,773
Other assets	(6,407)	4,870
Accounts payable	(23,569)	4,954
Accrued interest and taxes	(8,000)	(2,312)
Other current liabilities	(23,360)	(2,615)
Other liabilities	(14,231)	(29,746)
Net cash flows from operating activities	242,443	217,864
Cash Flows From Investing Activities:
Utility plant additions	(537,004)	(475,732)
Proceeds from sale of PVNGS plant assets (Note 13)	28,372	0
Proceeds from sales of investment securities	274,777	230,880
Purchases of investment securities	(281,662)	(234,848)
Other, net	4	512
Net cash flows used in investing activities	(530,263)	(479,188)
Cash Flows From Financing Activities:
Revolving credit facilities borrowings (repayments), net	94,500	203,600
Long-term borrowings	960,000	238,000
Repayment of long-term debt	(685,000)	(104,500)
Dividends paid	(63,353)	(59,919)
Valencia’s transactions with its owner	(10,755)	(7,965)
Transmission interconnection and security deposit arrangements	29,362	46,643
Refunds paid under transmission interconnection and security deposit arrangements	(18,004)	(41,369)
Debt issuance costs and other, net	(5,750)	(3,161)
Net cash flows from financing activities	291,382	263,704
Change in Cash and Cash Equivalents	3,562	2,380
Cash and Cash Equivalents at Beginning of Period	4,078	1,104
Cash and Cash Equivalents at End of Period	7,640	3,484
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	82,947	50,057
Income taxes paid (refunded), net	1,400	904
Supplemental schedule of noncash investing activities:
Decrease in accrued plant additions	44,547	47,626
PNM
Cash Flows From Operating Activities:
Net Earnings	95,138	5,083
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	100,225	107,493
Deferred income tax expense	19,240	289
(Gains) losses on investment securities	(10,219)	68,368
Regulatory disallowances and restructuring costs	3,731	1,399
Allowance for equity funds used during construction	(4,299)	(4,768)
Other, net	1,800	1,757
Changes in certain assets and liabilities:
Accounts receivable and unbilled revenues	54,666	(20,660)
Materials, supplies, and fuel stock	(11,334)	(9,076)
Other current assets	(21,778)	10,083
Other assets	(2,961)	5,174
Accounts payable	(20,197)	10,504
Accrued interest and taxes	762	2,320
Other current liabilities	(7,199)	579
Other liabilities	(11,643)	(21,658)
Net cash flows from operating activities	185,932	156,887
Cash Flows From Investing Activities:
Utility plant additions	(284,037)	(213,886)
Proceeds from sale of PVNGS plant assets (Note 13)	28,372	0
Proceeds from sales of investment securities	274,777	230,880
Purchases of investment securities	(281,662)	(234,848)
Other, net	3	513
Net cash flows used in investing activities	(262,547)	(217,341)
Cash Flows From Financing Activities:
Revolving credit facilities borrowings (repayments), net	(54,300)	103,400
Long-term borrowings	330,000	73,000
Repayment of long-term debt	(185,000)	(104,500)
Dividends paid	(264)	(264)
Valencia’s transactions with its owner	(10,755)	(7,965)
Transmission interconnection and security deposit arrangements	18,362	40,243
Refunds paid under transmission interconnection and security deposit arrangements	(14,504)	(39,369)
Debt issuance costs and other, net	(3,333)	(1,851)
Net cash flows from financing activities	80,206	62,694
Change in Cash and Cash Equivalents	3,591	2,240
Cash and Cash Equivalents at Beginning of Period	2,985	19
Cash and Cash Equivalents at End of Period	6,576	2,259
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	34,293	25,198
Income taxes paid (refunded), net	0	0
Supplemental schedule of noncash investing activities:
Decrease in accrued plant additions	$ 26,570	$ 21,083

Condensed Consolidated Balanc_3

Condensed Consolidated Balance Sheets - PNM - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 7,640	$ 4,078
Accounts receivable, net of allowance for credit losses	121,113	183,669
Unbilled revenues	67,504	63,473
Other receivables	31,233	20,320
Materials, supplies, and fuel stock	81,017	66,733
Regulatory assets	59,999	20,265
Prepaid assets	23,417	18,465
Income taxes receivable	2,875	2,351
Other current assets	9,839	31,624
Current assets	404,637	410,978
Other Property and Investments:
Investment securities	433,192	417,476
Other investments	175	177
Non-utility property, net	29,064	26,841
Total other property and investments	568,861	535,114
Utility Plant:
Plant in service, held for future use, and to be abandoned	9,223,619	9,164,564
Less accumulated depreciation and amortization	2,680,094	2,659,952
Net plant in service and plant held for future use	6,543,525	6,504,612
Construction work in progress	593,995	372,988
Nuclear fuel, net of accumulated amortization of $29,912 and $43,985	77,679	95,223
Net utility plant	7,215,199	6,972,823
Deferred Charges and Other Assets:
Regulatory assets	932,294	846,686
Goodwill	278,297	278,297
Operating lease right-of-use assets, net of accumulated amortization	50,104	55,982
Other deferred charges	177,578	157,497
Total deferred charges and other assets	1,438,273	1,338,462
Assets	9,626,970	9,257,377
Current Liabilities:
Short-term debt	326,500	232,000
Current installments of long-term debt	422,338	184,793
Accounts payable	147,593	215,708
Customer deposits	6,227	6,117
Accrued interest and taxes	69,307	76,783
Regulatory liabilities	3,226	17,002
Operating lease liabilities	8,825	18,781
Dividends declared	132	31,676
Transmission interconnection arrangement liabilities	28,527	20,473
Other current liabilities	95,564	87,037
Total current liabilities	1,108,239	890,370
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs	3,927,625	3,892,594
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	861,445	822,831
Regulatory liabilities	766,343	755,202
Asset retirement obligations	227,592	223,377
Accrued pension liability and postretirement benefit cost	29,487	32,799
Operating lease liabilities	34,658	41,336
Other deferred credits	346,456	342,413
Total deferred credits and liabilities	2,265,981	2,217,958
Total liabilities	7,301,845	7,000,922
Commitments and Contingencies (Note 11)
Cumulative Preferred Stock without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares)	11,529	11,529
PNM common stockholder’s equity:
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares)	1,423,827	1,429,102
Accumulated other comprehensive income (loss), net of income taxes	(59,235)	(66,048)
Retained earnings	897,651	828,878
Total PNM common stockholder’s equity	2,262,243	2,191,932
Non-controlling interest in Valencia	51,353	52,994
Total equity	2,313,596	2,244,926
Total liabilities and stockholders' equity	9,626,970	9,257,377
PNM
Current Assets:
Cash and cash equivalents	6,576	2,985
Accounts receivable, net of allowance for credit losses	89,817	151,386
Unbilled revenues	50,385	45,282
Materials, supplies, and fuel stock	67,225	55,890
Regulatory assets	57,838	18,333
Prepaid assets	14,592	10,085
Income taxes receivable	18,233	18,233
Other current assets	1,974	20,706
Current assets	344,544	345,645
Other Property and Investments:
Investment securities	433,192	417,476
Other investments	73	76
Non-utility property, net	14,344	11,695
Total other property and investments	447,609	429,247
Utility Plant:
Plant in service, held for future use, and to be abandoned	5,979,148	6,007,464
Less accumulated depreciation and amortization	1,926,473	1,908,644
Net plant in service and plant held for future use	4,052,675	4,098,820
Construction work in progress	422,446	300,772
Nuclear fuel, net of accumulated amortization of $29,912 and $43,985	77,679	95,223
Net utility plant	4,552,800	4,494,815
Deferred Charges and Other Assets:
Regulatory assets	851,514	763,941
Goodwill	51,632	51,632
Operating lease right-of-use assets, net of accumulated amortization	47,648	52,556
Other deferred charges	144,610	134,330
Total deferred charges and other assets	1,095,404	1,002,459
Assets	6,440,357	6,272,166
Current Liabilities:
Short-term debt	131,600	185,900
Current installments of long-term debt	422,338	184,793
Customer deposits	6,227	6,117
Accrued interest and taxes	36,559	35,797
Regulatory liabilities	3,226	7,913
Operating lease liabilities	7,795	17,239
Dividends declared	132	132
Transmission interconnection arrangement liabilities	28,527	20,473
Other current liabilities	68,273	55,350
Total current liabilities	840,543	692,155
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs	1,722,397	1,816,107
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	717,191	682,040
Regulatory liabilities	555,598	556,989
Asset retirement obligations	226,729	222,549
Accrued pension liability and postretirement benefit cost	28,860	32,007
Operating lease liabilities	33,422	39,633
Other deferred credits	256,386	258,833
Total deferred credits and liabilities	1,818,186	1,792,051
Total liabilities	4,381,126	4,300,313
Commitments and Contingencies (Note 11)
Cumulative Preferred Stock without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares)	11,529	11,529
PNM common stockholder’s equity:
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares)	1,547,918	1,547,918
Accumulated other comprehensive income (loss), net of income taxes	(71,076)	(74,335)
Retained earnings	519,507	433,747
Total PNM common stockholder’s equity	1,996,349	1,907,330
Non-controlling interest in Valencia	51,353	52,994
Total equity	2,047,702	1,960,324
Total liabilities and stockholders' equity	6,440,357	6,272,166
PNM | Nonrelated Party
Current Assets:
Other receivables	28,631	13,877
Current Liabilities:
Accounts payable	116,755	163,522
PNM | Related Party
Current Assets:
Other receivables	9,273	8,868
Current Liabilities:
Accounts payable	$ 19,111	$ 14,919

Condensed Consolidated Balanc_4

Condensed Consolidated Balance Sheets - PNM (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Allowance for uncollectible accounts	$ 4,753	$ 4,925
Accumulated depreciation, nuclear fuel	$ 29,912	$ 43,985
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	85,834,874	85,834,874
Common stock, shares outstanding (in shares)	85,834,874	85,834,874
PNM
Allowance for uncollectible accounts	$ 4,753	$ 4,925
Accumulated depreciation, nuclear fuel	$ 29,912	$ 43,985
Cumulative preferred stock, stated value (in dollars per share)	$ 100	$ 100
Cumulative preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Cumulative preferred stock, shares issued (in shares)	115,293	115,293
Cumulative preferred stock, shares outstanding (in shares)	115,293	115,293
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	39,117,799	39,117,799
Common stock, shares outstanding (in shares)	39,117,799	39,117,799

Condensed Consolidated State_10

Condensed Consolidated Statements of Changes in Equity - PNM - USD ($) $ in Thousands	Total	Total PNMR Common Stockholders’ Equity	Common Stock	AOCI	Retained Earnings	Non- controlling Interest in Valencia	PNM	PNM Total PNMR Common Stockholders’ Equity	PNM Common Stock	PNM AOCI	PNM Retained Earnings	PNM Non- controlling Interest in Valencia
Beginning balance at Dec. 31, 2021	$ 2,222,929	$ 2,167,524	$ 1,429,257	$ (71,936)	$ 810,203	$ 55,405	$ 2,015,264	$ 1,959,859	$ 1,547,918	$ (71,936)	$ 483,877	$ 55,405
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Earnings (Loss)	38,341	31,616			31,616	6,725	5,083	(1,642)			(1,642)	6,725
Total other comprehensive income (loss)	(4,889)	(4,889)		(4,889)			(6,577)	(6,577)		(6,577)
Dividends declared on preferred stock							(264)	(264)			(264)
Valencia’s transactions with its owner	(7,965)					(7,965)	(7,965)					(7,965)
Ending balance at Jun. 30, 2022	2,185,687	2,131,522	1,426,448	(76,825)	781,899	54,165	2,005,541	1,951,376	1,547,918	(78,513)	481,971	54,165
Beginning balance at Mar. 31, 2022	2,169,800	2,115,532	1,425,574	(76,580)	766,538	54,268	2,013,794	1,959,526	1,547,918	(76,580)	488,188	54,268
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Earnings (Loss)	19,123	15,493			15,493	3,630	(2,455)	(6,085)			(6,085)	3,630
Total other comprehensive income (loss)	(245)	(245)		(245)			(1,933)	(1,933)		(1,933)
Dividends declared on preferred stock							(132)	(132)			(132)
Valencia’s transactions with its owner	(3,733)					(3,733)	(3,733)					(3,733)
Ending balance at Jun. 30, 2022	2,185,687	2,131,522	1,426,448	(76,825)	781,899	54,165	2,005,541	1,951,376	1,547,918	(78,513)	481,971	54,165
Beginning balance at Dec. 31, 2022	2,244,926	2,191,932	1,429,102	(66,048)	828,878	52,994	1,960,324	1,907,330	1,547,918	(74,335)	433,747	52,994
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Earnings (Loss)	109,696	100,582			100,582	9,114	95,138	86,024			86,024	9,114
Total other comprehensive income (loss)	6,813	6,813		6,813			3,259	3,259		3,259
Dividends declared on preferred stock							(264)	(264)			(264)
Valencia’s transactions with its owner	(10,755)					(10,755)	(10,755)					(10,755)
Ending balance at Jun. 30, 2023	2,313,596	2,262,243	1,423,827	(59,235)	897,651	51,353	2,047,702	1,996,349	1,547,918	(71,076)	519,507	51,353
Beginning balance at Mar. 31, 2023	2,264,802	2,212,191	1,424,198	(64,354)	852,347	52,611	2,017,995	1,965,384	1,547,918	(70,857)	488,323	52,611
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Earnings (Loss)	49,423	45,436			45,436	3,987	35,303	31,316			31,316	3,987
Total other comprehensive income (loss)	5,119	5,119		5,119			(219)	(219)		(219)
Dividends declared on preferred stock							(132)	(132)			(132)
Valencia’s transactions with its owner	(5,245)					(5,245)	(5,245)					(5,245)
Ending balance at Jun. 30, 2023	$ 2,313,596	$ 2,262,243	$ 1,423,827	$ (59,235)	$ 897,651	$ 51,353	$ 2,047,702	$ 1,996,349	$ 1,547,918	$ (71,076)	$ 519,507	$ 51,353

Condensed Consolidated State_11

Condensed Consolidated Statements of Earnings - TNMP - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Electric Operating Revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Operating Expenses:
Administrative and general	54,039	51,342	109,149	107,203
Depreciation and amortization	79,139	76,769	157,213	152,533
Transmission and distribution costs	25,465	21,156	47,661	39,622
Taxes other than income taxes	24,401	24,577	49,963	48,556
Total operating expenses	384,826	413,338	829,812	789,388
Operating income	92,330	86,392	191,421	154,460
Other Income and Deductions:
Interest income	5,359	3,327	10,202	7,619
Other income	5,600	5,151	8,693	9,481
Other (deductions)	(3,515)	(3,641)	(6,008)	(5,882)
Net other income and deductions	11,221	(36,958)	23,106	(57,150)
Interest Charges	45,899	29,217	86,822	55,437
Earnings before Income Taxes	57,652	20,217	127,705	41,873
Income Taxes	8,229	1,094	18,009	3,532
Texas-New Mexico Power Company
Electric Operating Revenues	138,914	122,976	252,826	228,385
Operating Expenses:
Cost of energy	38,843	31,632	70,676	61,232
Administrative and general	13,154	11,185	27,168	23,198
Depreciation and amortization	27,949	24,312	55,389	47,954
Transmission and distribution costs	10,710	7,638	19,019	14,493
Taxes other than income taxes	9,531	10,209	20,060	19,266
Total operating expenses	100,187	84,976	192,312	166,143
Operating income	38,727	38,000	60,514	62,242
Other Income and Deductions:
Interest income	121	105	235	1,287
Other income	1,767	1,408	2,278	2,460
Other (deductions)	(255)	(285)	(630)	(400)
Net other income and deductions	1,633	1,228	1,883	3,347
Interest Charges	11,412	9,016	21,837	18,166
Earnings before Income Taxes	28,948	30,212	40,560	47,423
Income Taxes	4,316	4,161	5,895	6,312
Net Earnings (Loss) Attributable to PNM	$ 24,632	$ 26,051	$ 34,665	$ 41,111

Condensed Consolidated State_12

Condensed Consolidated Statements of Cash Flows - TNMP - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities:
Net Earnings	$ 109,696	$ 38,341
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	173,851	169,942
Deferred income tax expense	17,132	2,405
Other, net	(742)	(754)
Changes in certain assets and liabilities:
Accounts receivable and unbilled revenues	56,725	(36,893)
Materials, supplies, and fuel stock	(14,283)	(10,353)
Other current assets	(18,399)	9,773
Other assets	(6,407)	4,870
Accounts payable	(23,569)	4,954
Accrued interest and taxes	(8,000)	(2,312)
Other current liabilities	(23,360)	(2,615)
Other liabilities	(14,231)	(29,746)
Net cash flows from operating activities	242,443	217,864
Cash Flows From Investing Activities:
Utility plant additions	(537,004)	(475,732)
Net cash flows used in investing activities	(530,263)	(479,188)
Cash Flows From Financing Activities:
Revolving credit facilities borrowings (repayments), net	94,500	203,600
Long-term borrowings	960,000	238,000
Transmission interconnection and security deposit arrangements	29,362	46,643
Refunds paid under transmission interconnection and security deposit arrangements	(18,004)	(41,369)
Debt issuance costs and other, net	(5,750)	(3,161)
Net cash flows from financing activities	291,382	263,704
Change in Cash and Cash Equivalents	3,562	2,380
Cash and Cash Equivalents at Beginning of Period	4,078	1,104
Cash and Cash Equivalents at End of Period	7,640	3,484
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	82,947	50,057
Income taxes paid (refunded), net	1,400	904
Supplemental schedule of noncash investing activities:
Decrease in accrued plant additions	44,547	47,626
Texas-New Mexico Power Company
Cash Flows From Operating Activities:
Net Earnings	34,665	41,111
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	55,721	48,370
Deferred income tax expense	3,214	(208)
Other, net	1,009	1,071
Changes in certain assets and liabilities:
Accounts receivable and unbilled revenues	2,059	(16,234)
Materials, supplies, and fuel stock	(2,949)	(1,277)
Other current assets	1,776	(1,393)
Other assets	521	(57)
Accounts payable	(539)	(3,062)
Accrued interest and taxes	(6,942)	(853)
Other current liabilities	(1,919)	6,393
Other liabilities	(2,611)	(5,667)
Net cash flows from operating activities	81,987	66,052
Cash Flows From Investing Activities:
Utility plant additions	(218,488)	(245,715)
Net cash flows used in investing activities	(218,488)	(245,715)
Cash Flows From Financing Activities:
Revolving credit facilities borrowings (repayments), net	400	99,600
Short-term borrowings (repayments) – affiliate, net	0	11,300
Long-term borrowings	130,000	65,000
Transmission interconnection and security deposit arrangements	11,000	6,400
Refunds paid under transmission interconnection and security deposit arrangements	(3,500)	(2,000)
Debt issuance costs and other, net	(1,399)	(604)
Net cash flows from financing activities	136,501	179,696
Change in Cash and Cash Equivalents	0	33
Cash and Cash Equivalents at Beginning of Period	0	0
Cash and Cash Equivalents at End of Period	0	33
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	19,561	16,800
Income taxes paid (refunded), net	1,400	904
Supplemental schedule of noncash investing activities:
Decrease in accrued plant additions	$ 9,734	$ 16,145

Condensed Consolidated Balanc_5

Condensed Consolidated Balance Sheets - TNMP - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 7,640	$ 4,078
Accounts receivable	121,113	183,669
Unbilled revenues	67,504	63,473
Other receivables	31,233	20,320
Materials, supplies, and fuel stock	81,017	66,733
Regulatory assets	59,999	20,265
Total current assets	404,637	410,978
Other Property and Investments:
Other investments	175	177
Non-utility property, net	29,064	26,841
Total other property and investments	568,861	535,114
Utility Plant:
Plant in service, held for future use, and to be abandoned	9,223,619	9,164,564
Less accumulated depreciation and amortization	2,680,094	2,659,952
Net plant in service and plant held for future use	6,543,525	6,504,612
Construction work in progress	593,995	372,988
Net utility plant	7,215,199	6,972,823
Deferred Charges and Other Assets:
Regulatory assets	932,294	846,686
Goodwill	278,297	278,297
Operating lease right-of-use assets, net of accumulated amortization	50,104	55,982
Other deferred charges	177,578	157,497
Total deferred charges and other assets	1,438,273	1,338,462
Assets	9,626,970	9,257,377
Current Liabilities:
Short-term debt	326,500	232,000
Accounts payable	147,593	215,708
Accrued interest and taxes	69,307	76,783
Regulatory liabilities	3,226	17,002
Operating lease liabilities	8,825	18,781
Other current liabilities	95,564	87,037
Total current liabilities	1,108,239	890,370
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs	3,927,625	3,892,594
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	861,445	822,831
Regulatory liabilities	766,343	755,202
Asset retirement obligations	227,592	223,377
Accrued pension liability and postretirement benefit cost	29,487	32,799
Operating lease liabilities	34,658	41,336
Other deferred credits	346,456	342,413
Total deferred credits and liabilities	2,265,981	2,217,958
Total liabilities	7,301,845	7,000,922
Commitments and Contingencies (Note 11)
PNM common stockholder’s equity:
Common stock ($10 par value; 12,000,000 shares authorized; issued and outstanding 6,358 shares)	1,423,827	1,429,102
Retained earnings	897,651	828,878
Total PNM common stockholder’s equity	2,262,243	2,191,932
Total liabilities and stockholders' equity	9,626,970	9,257,377
Texas-New Mexico Power Company
Current Assets:
Cash and cash equivalents	0	0
Accounts receivable	31,296	32,283
Unbilled revenues	17,119	18,191
Other receivables	4,922	8,552
Materials, supplies, and fuel stock	13,792	10,843
Regulatory assets	2,161	1,932
Prepaid and other current assets	4,184	2,346
Total current assets	73,474	74,147
Other Property and Investments:
Other investments	102	101
Non-utility property, net	13,619	14,010
Total other property and investments	13,721	14,111
Utility Plant:
Plant in service, held for future use, and to be abandoned	2,920,261	2,853,130
Less accumulated depreciation and amortization	570,974	578,157
Net plant in service and plant held for future use	2,349,287	2,274,973
Construction work in progress	163,836	63,820
Net utility plant	2,513,123	2,338,793
Deferred Charges and Other Assets:
Regulatory assets	80,780	82,745
Goodwill	226,665	226,665
Operating lease right-of-use assets, net of accumulated amortization	2,456	3,426
Other deferred charges	5,987	6,714
Total deferred charges and other assets	315,888	319,550
Assets	2,916,206	2,746,601
Current Liabilities:
Short-term debt	37,100	36,700
Accrued interest and taxes	47,730	54,672
Regulatory liabilities	0	9,089
Operating lease liabilities	1,030	1,543
Other current liabilities	8,359	6,336
Total current liabilities	128,442	148,765
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs	1,206,160	1,076,875
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	172,212	164,637
Regulatory liabilities	210,745	198,213
Asset retirement obligations	863	828
Accrued pension liability and postretirement benefit cost	627	792
Operating lease liabilities	1,237	1,703
Other deferred credits	59,431	52,964
Total deferred credits and liabilities	445,115	419,137
Total liabilities	1,779,717	1,644,777
Commitments and Contingencies (Note 11)
PNM common stockholder’s equity:
Common stock ($10 par value; 12,000,000 shares authorized; issued and outstanding 6,358 shares)	64	64
Paid-in-capital	805,166	805,166
Retained earnings	331,259	296,594
Total PNM common stockholder’s equity	1,136,489	1,101,824
Total liabilities and stockholders' equity	2,916,206	2,746,601
Texas-New Mexico Power Company | Nonrelated Party
Current Liabilities:
Accounts payable	23,880	34,152
Texas-New Mexico Power Company | Related Party
Current Liabilities:
Accounts payable	$ 10,343	$ 6,273

Condensed Consolidated Balanc_6

Condensed Consolidated Balance Sheets - TNMP (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	85,834,874	85,834,874
Common stock, shares outstanding (in shares)	85,834,874	85,834,874
Texas-New Mexico Power Company
Common stock, par value (in dollars per share)	$ 10	$ 10
Common stock, shares authorized (in shares)	12,000,000	12,000,000
Common stock, shares issued (in shares)	6,358	6,358
Common stock, shares outstanding (in shares)	6,358	6,358

Condensed Consolidated State_13

Condensed Consolidated Statements of Changes in Common Stockholder's Equity - TNMP - USD ($) $ in Thousands	Total	Retained Earnings	Texas-New Mexico Power Company	Texas-New Mexico Power Company Common Stock	Texas-New Mexico Power Company Paid-in Capital	Texas-New Mexico Power Company Retained Earnings
Beginning balance TNMP at Dec. 31, 2021			$ 941,557	$ 64	$ 737,166	$ 204,327
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings			41,111			41,111
Dividends declared on common stock	$ 59,656	$ 59,656
Ending balance TNMP at Jun. 30, 2022			982,668	64	737,166	245,438
Beginning balance TNMP at Mar. 31, 2022			956,617	64	737,166	219,387
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings			26,051			26,051
Ending balance TNMP at Jun. 30, 2022			982,668	64	737,166	245,438
Beginning balance TNMP at Dec. 31, 2022	2,191,932		1,101,824	64	805,166	296,594
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings			34,665			34,665
Dividends declared on common stock	31,545	$ 31,545
Ending balance TNMP at Jun. 30, 2023	2,262,243		1,136,489	64	805,166	331,259
Beginning balance TNMP at Mar. 31, 2023			1,111,857	64	805,166	306,627
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings			24,632			24,632
Ending balance TNMP at Jun. 30, 2023	$ 2,262,243		$ 1,136,489	$ 64	$ 805,166	$ 331,259

Significant Accounting Policies

Significant Accounting Policies and Responsibility for Financial Statements	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Significant Accounting Policies and Responsibility for Financial Statements	Significant Accounting Policies and Responsibility for Financial Statements Financial Statement Preparation In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements reflect all normal and recurring accruals and adjustments that are necessary to present fairly the consolidated financial position at June 30, 2023 and December 31, 2022, and the consolidated results of operations, comprehensive income, and cash flows for the three and six months ended June 30, 2023 and 2022. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. Weather causes the Company’s results of operations to be seasonal in nature and the results of operations presented in the accompanying Condensed Consolidated Financial Statements are not necessarily representative of operations for an entire year. The Notes to Condensed Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. This report uses the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP are so indicated. Certain amounts in the 2022 Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2023 financial statement presentation. These Condensed Consolidated Financial Statements are unaudited. Certain information and note disclosures normally included in the annual audited Consolidated Financial Statements have been condensed or omitted, as permitted under the applicable rules and regulations. Readers of these financial statements should refer to PNMR’s, PNM’s, and TNMP’s audited Consolidated Financial Statements and Notes thereto that are included in their respective 2022 Annual Reports on Form 10-K. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events accordingly. Principles of Consolidation The Condensed Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia. See Note 6. PNM owns undivided interests in several jointly-owned power plants and records its pro-rata share of the assets, liabilities, and expenses for those plants. The agreements for the jointly-owned plants provide that if an owner were to default on its payment obligations, the non-defaulting owners would be responsible for their proportionate share of the obligations of the defaulting owner. In exchange, the non-defaulting owners would be entitled to their proportionate share of the generating capacity of the defaulting owner. There have been no such payment defaults under any of the agreements for the jointly-owned plants. PNMR Services Company expenses, which represent costs that are primarily driven by corporate level activities, are charged to the business segments. These services are billed at cost and are reflected as general and administrative expenses in the business segments. Other significant intercompany transactions between PNMR, PNM, and TNMP include interest and income tax sharing payments, as well as equity transactions, and interconnection billings. See Note 15. All intercompany transactions and balances have been eliminated. Dividends on Common Stock Dividends on PNMR’s common stock are declared by the Board. The timing of the declaration of dividends is dependent on the timing of meetings and other actions of the Board. This has historically resulted in dividends attributable to the second quarter of each year being declared through actions of the Board during the third quarter of the year. The Board declared dividends attributable to the second quarter of 2023 of $0.3675 per share on August 1, 2023, and declared dividends attributable to the second quarter of 2022 of $0.3475 per share in August 2022, which are reflected as Dividends Declared per Common Share on the PNMR Condensed Consolidated Statement of Earnings. PNMR did not make any cash equity contributions to PNM or TNMP in the three and six months ended June 30, 2023 and 2022. Neither PNM nor TNMP declared or paid any cash dividends to PNMR in the three and six months ended June 30, 2023 and 2022. New Accounting Pronouncements Information concerning a recently issued accounting pronouncement that has not yet been adopted by the Company is presented below. The Company does not expect difficulty in adopting this standard by its required effective date. Accounting Standards Update 2022-03 - Fair Value Measurement (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03 clarifying that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and, therefore, is not considered in measuring fair value. The amendment also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Disclosure requirements from the amendment include disclosure of the fair value of equity securities subject to contractual sale restrictions that are reflected in the balance sheet; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). ASU 2022-03 is effective for the Company beginning January 1, 2024 with early adoption for both interim and annual periods being permitted. ASU 2022-03 is to be applied prospectively with any adjustments recognized in earnings and disclosed on the date of adoption.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
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. 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. 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 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended June 30, 2023 Electric operating revenues $ 338,242 $ 138,914 $ — $ 477,156 Cost of energy 133,609 38,843 — 172,452 Utility margin 204,633 100,071 — 304,704 Other operating expenses 106,154 33,395 (6,314) 133,235 Depreciation and amortization 44,064 27,949 7,126 79,139 Operating income (loss) 54,415 38,727 (812) 92,330 Interest income (expense) 5,370 121 (132) 5,359 Other income 3,695 1,512 655 5,862 Interest charges (20,766) (11,412) (13,721) (45,899) Segment earnings (loss) before income taxes 42,714 28,948 (14,010) 57,652 Income taxes (benefit) 7,411 4,316 (3,498) 8,229 Segment earnings (loss) 35,303 24,632 (10,512) 49,423 Valencia non-controlling interest (3,987) — — (3,987) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 31,184 $ 24,632 $ (10,512) $ 45,304 Six Months Ended June 30, 2023 Electric operating revenues $ 768,407 $ 252,826 $ — $ 1,021,233 Cost of energy 343,462 70,676 — 414,138 Utility margin 424,945 182,150 — 607,095 Other operating expenses 204,876 66,247 (12,662) 258,461 Depreciation and amortization 87,750 55,389 14,074 157,213 Operating income (loss) 132,319 60,514 (1,412) 191,421 Interest income (expense) 10,219 235 (252) 10,202 Other income 10,728 1,648 528 12,904 Interest charges (38,888) (21,837) (26,097) (86,822) Segment earnings (loss) before income taxes 114,378 40,560 (27,233) 127,705 Income taxes (benefit) 19,240 5,895 (7,126) 18,009 Segment earnings (loss) 95,138 34,665 (20,107) 109,696 Valencia non-controlling interest (9,114) — — (9,114) Subsidiary preferred stock dividends (264) — — (264) Segment earnings (loss) attributable to PNMR $ 85,760 $ 34,665 $ (20,107) $ 100,318 At June 30, 2023: Total Assets $ 6,440,357 $ 2,916,206 $ 270,407 $ 9,626,970 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended June 30, 2022 Electric operating revenues $ 376,754 $ 122,976 $ — $ 499,730 Cost of energy 163,964 31,632 — 195,596 Utility margin 212,790 91,344 — 304,134 Other operating expenses 117,374 29,032 (5,433) 140,973 Depreciation and amortization 45,981 24,312 6,476 76,769 Operating income (loss) 49,435 38,000 (1,043) 86,392 Interest income (expense) 3,267 105 (45) 3,327 Other income (deductions) (41,816) 1,123 408 (40,285) Interest charges (14,523) (9,016) (5,678) (29,217) Segment earnings (loss) before income taxes (3,637) 30,212 (6,358) 20,217 Income taxes (benefit) (1,182) 4,161 (1,885) 1,094 Segment earnings (loss) (2,455) 26,051 (4,473) 19,123 Valencia non-controlling interest (3,630) — — (3,630) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ (6,217) $ 26,051 $ (4,473) $ 15,361 Six Months Ended June 30, 2022 Electric operating revenues $ 715,463 $ 228,385 $ — $ 943,848 Cost of energy 302,778 61,232 — 364,010 Utility margin 412,685 167,153 — 579,838 Other operating expenses 226,463 56,957 (10,575) 272,845 Depreciation and amortization 91,771 47,954 12,808 152,533 Operating income (loss) 94,451 62,242 (2,233) 154,460 Interest income (expense) 6,400 1,287 (68) 7,619 Other income (deductions) (67,032) 2,060 203 (64,769) Interest charges (29,095) (18,166) (8,176) (55,437) Segment earnings (loss) before income taxes 4,724 47,423 (10,274) 41,873 Income taxes (benefit) (359) 6,312 (2,421) 3,532 Segment earnings (loss) 5,083 41,111 (7,853) 38,341 Valencia non-controlling interest (6,725) — — (6,725) Subsidiary preferred stock dividends (264) — — (264) Segment earnings (loss) attributable to PNMR $ (1,906) $ 41,111 $ (7,853) $ 31,352 At June 30, 2022: Total Assets $ 6,090,151 $ 2,583,602 $ 237,352 $ 8,911,105 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. PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended June 30, 2023 Gross margin $ 120,215 $ 61,412 $ — $ 181,627 Energy production costs 25,599 — — 25,599 Transmission and distribution costs 14,755 10,710 — 25,465 Depreciation and amortization 44,064 27,949 — 72,013 1 Utility margin $ 204,633 $ 100,071 $ — $ 304,704 Six Months Ended June 30, 2023 Gross margin $ 260,596 $ 107,742 $ — $ 368,338 Energy production costs 47,957 — — 47,957 Transmission and distribution costs 28,642 19,019 — 47,661 Depreciation and amortization 87,750 55,389 — 143,139 1 Utility margin $ 424,945 $ 182,150 $ — $ 607,095 PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended June 30, 2022 Gross margin $ 110,792 $ 59,394 $ — $ 170,186 Energy production costs 42,499 — — 42,499 Transmission and distribution costs 13,518 7,638 — 21,156 Depreciation and amortization 45,981 24,312 — 70,293 1 Utility margin $ 212,790 $ 91,344 $ — $ 304,134 Six Months Ended June 30, 2022 Gross margin $ 219,720 $ 104,706 $ — $ 324,426 Energy production costs 76,065 — — 76,065 Transmission and distribution costs 25,129 14,493 — 39,622 Depreciation and amortization 91,771 47,954 — 139,725 1 Utility margin $ 412,685 $ 167,153 $ — $ 579,838 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.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Information regarding accumulated other comprehensive income (loss) for the six months ended June 30, 2023 and 2022 is as follows: Accumulated Other Comprehensive Income (Loss) PNM Corporate and Other PNMR Consolidated Unrealized Pension Fair Value Total Total (In thousands) Balance at December 31, 2022 $ 7,422 $ (81,757) $ (74,335) $ 8,287 $ (66,048) Amounts reclassified from AOCI (pre-tax) (2,580) 2,388 (192) 1,197 1,005 Income tax impact of amounts reclassified 655 (606) 49 (304) (255) Other OCI changes (pre-tax) 4,560 — 4,560 3,567 8,127 Income tax impact of other OCI changes (1,158) — (1,158) (906) (2,064) Net after-tax change 1,477 1,782 3,259 3,554 6,813 Balance at June 30, 2023 $ 8,899 $ (79,975) $ (71,076) $ 11,841 $ (59,235) Balance at December 31, 2021 $ 11,715 $ (83,651) $ (71,936) $ — $ (71,936) Amounts reclassified from AOCI (pre-tax) (2,917) 3,552 635 (1,185) (550) Income tax impact of amounts reclassified 741 (902) (161) 301 140 Other OCI changes (pre-tax) (9,452) — (9,452) 3,448 (6,004) Income tax impact of other OCI changes 2,401 — 2,401 (876) 1,525 Net after-tax change (9,227) 2,650 (6,577) 1,688 (4,889) Balance at June 30, 2022 $ 2,488 $ (81,001) $ (78,513) $ 1,688 $ (76,825) The Condensed Consolidated Statements of Earnings include pre-tax amounts reclassified from AOCI related to Unrealized Gains on Available-for-Sale Debt Securities in gains (losses) on investment securities, related to Pension Liability Adjustment in other (deductions), and related to Fair Value Adjustment for Cash Flow Hedges in interest charges. The income tax impacts of all amounts reclassified from AOCI are included in income taxes in the Condensed Consolidated Statements of Earnings.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Dual presentation of basic and diluted earnings per share is presented in the Condensed Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 45,304 $ 15,361 $ 100,318 $ 31,352 Average Number of Common Shares: Outstanding during period 85,835 85,835 85,835 85,835 Vested awards of restricted stock 250 351 258 303 Average Shares – Basic 86,085 86,186 86,093 86,138 Dilutive Effect of Common Stock Equivalents: Restricted stock 39 40 38 60 2023 Forward Sale Agreements 5 — 2 — Average Shares – Diluted 86,129 86,226 86,133 86,198 Net Earnings Per Share of Common Stock: Basic $ 0.53 $ 0.18 $ 1.17 $ 0.36 Diluted $ 0.53 $ 0.18 $ 1.16 $ 0.36

Electric Operating Revenues

Electric Operating Revenues	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Electric Operating Revenues	Electric Operating Revenues 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 2022 Annual Reports on Form 10-K. Accounts Receivable and Allowance for Credit Losses Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company estimates the allowance for credit losses on trade receivables based on historical experience and estimated default rates. Accounts receivable balances are reviewed monthly, adjustments to the allowance for credit losses are made as necessary and amounts that are deemed uncollectible are written off. In addition to the allowance for credit losses on trade receivables, the Company has evaluated other receivables for potential credit related losses. These balances include potential exposures for other non-retail utility services. In the three and six months ended June 30, 2023 and 2022, there were no estimated credit losses related to these transactions. Disaggregation of Revenues A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. PNM TNMP PNMR Consolidated Three Months Ended June 30, 2023 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 108,016 $ 41,491 $ 149,507 Commercial 105,262 37,965 143,227 Industrial 26,156 12,930 39,086 Public authority 5,305 1,669 6,974 Economy energy service 10,731 — 10,731 Transmission 37,922 35,062 72,984 Wholesale energy service 37,308 — 37,308 Miscellaneous 1,377 907 2,284 Total revenues from contracts with customers 332,077 130,024 462,101 Alternative revenue programs 3,577 8,890 12,467 Other electric operating revenues 2,588 — 2,588 Total Electric Operating Revenues $ 338,242 $ 138,914 $ 477,156 Six Months Ended June 30, 2023 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 227,901 $ 77,857 $ 305,758 Commercial 203,323 72,695 276,018 Industrial 45,633 25,694 71,327 Public authority 9,723 3,288 13,011 Economy energy service 20,041 — 20,041 Transmission 86,930 65,120 152,050 Wholesale energy sales 150,294 — 150,294 Miscellaneous 2,786 1,848 4,634 Total revenues from contracts with customers 746,631 246,502 993,133 Alternative revenue programs 10,902 6,324 17,226 Other electric operating revenues 10,874 — 10,874 Total Electric Operating Revenues $ 768,407 $ 252,826 $ 1,021,233 PNM TNMP PNMR Consolidated Three Months Ended June 30, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 104,902 $ 46,121 $ 151,023 Commercial 101,174 36,557 137,731 Industrial 19,610 9,548 29,158 Public authority 4,744 1,561 6,305 Economy energy service 11,003 — 11,003 Transmission 35,659 29,321 64,980 Wholesale energy sales 85,645 — 85,645 Miscellaneous 1,299 992 2,291 Total revenues from contracts with customers 364,036 124,100 488,136 Alternative revenue programs 3,703 (1,124) 2,579 Other electric operating revenues 9,015 — 9,015 Total Electric Operating Revenues $ 376,754 $ 122,976 $ 499,730 Six Months Ended June 30, 2022 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 217,477 $ 85,489 $ 302,966 Commercial 189,178 69,660 258,838 Industrial 42,742 17,938 60,680 Public authority 9,170 3,086 12,256 Economy energy service 19,943 — 19,943 Transmission 70,186 54,850 125,036 Wholesale energy sales 145,336 — 145,336 Miscellaneous 2,672 1,926 4,598 Total revenues from contracts with customers 696,704 232,949 929,653 Alternative revenue programs 1,638 (4,564) (2,926) Other electric operating revenues 17,121 — 17,121 Total Electric Operating Revenues $ 715,463 $ 228,385 $ 943,848 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, including amounts under ARPs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for credit losses, includes $89.8 million at June 30, 2023 and $151.4 million at December 31, 2022 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). Upon the completion of the Western Spirit Line, PNM entered into a Transmission Service Agreement ("TSA") with Pattern Wind under an incremental tariff rate approved by FERC. The terms of the agreement provide for a financing component that benefits the customer. As such, the revenue that PNM recognizes will be in excess of the consideration received at the beginning of the service term resulting in a contract asset. The balance of the contract asset is $16.9 million at June 30, 2023 and $11.9 million at December 31, 2022. This contract asset is presented in Other deferred charges on the Condensed Consolidated Balance Sheets.

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2023
Variable Interest Entities [Abstract]
Variable Interest Entities	Variable Interest Entities How an enterprise evaluates and accounts for its involvement with variable interest entities, focuses primarily on whether the enterprise has the power to direct the activities that most significantly impact the economic performance of a variable interest entity (“VIE”). This evaluation requires continual reassessment of the primary beneficiary of a VIE. Additional information concerning PNM’s VIEs is contained in Note 10 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Valencia PNM has a PPA to purchase all of the electric capacity and energy from Valencia, a 155 MW natural gas-fired power plant near Belen, New Mexico, through May 2028. A third party built, owns, and operates the facility while PNM is the sole purchaser of the electricity generated. PNM is obligated to pay fixed operation and maintenance and capacity charges in addition to variable operation and maintenance charges under this PPA. For the three and six months ended June 30, 2023, PNM paid $5.1 million and $10.0 million for fixed charges and $1.1 million and $2.7 million for variable charges. For the three and six months ended June 30, 2022, PNM paid $4.8 million and $9.6 million for fixed charges and $0.3 million and $0.4 million for variable charges. PNM does not have any other financial obligations related to Valencia. The assets of Valencia can only be used to satisfy its obligations and creditors of Valencia do not have any recourse against PNM’s assets. During the term of the PPA, PNM has the option, under certain conditions, to purchase and own up to 50% of the plant or the VIE. The PPA specifies that the purchase price would be the greater of 50% of book value reduced by related indebtedness or 50% of fair market value. PNM sources fuel for the plant, controls when the facility operates through its dispatch, and receives the entire output of the plant, which factors directly and significantly impact the economic performance of Valencia. Therefore, PNM has concluded that the third-party entity that owns Valencia is a VIE and that PNM is the primary beneficiary of the entity since PNM has the power to direct the activities that most significantly impact the economic performance of Valencia and will absorb the majority of the variability in the cash flows of the plant. As the primary beneficiary, PNM consolidates Valencia in its financial statements. Accordingly, the assets, liabilities, operating expenses, and cash flows of Valencia are included in the Condensed Consolidated Financial Statements of PNM although PNM has no legal ownership interest or voting control of the VIE. The assets and liabilities of Valencia are set forth below and are not shown separately on the Condensed Consolidated Balance Sheets. The owner’s equity and net income of Valencia are considered attributable to non-controlling interest. Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ 6,144 $ 5,098 $ 12,748 $ 10,030 Operating expenses 2,157 1,468 3,634 3,305 Earnings attributable to non-controlling interest $ 3,987 $ 3,630 $ 9,114 $ 6,725 Financial Position June 30, December 31, 2023 2022 (In thousands) Current assets $ 3,577 $ 3,429 Net property, plant, and equipment 48,673 50,094 Total assets 52,250 53,523 Current liabilities 897 529 Owners’ equity – non-controlling interest $ 51,353 $ 52,994 Westmoreland San Juan Mining, LLC As discussed in the subheading Coal Supply in Note 11, PNM purchased coal for SJGS under the SJGS CSA. PNM and Westmoreland also entered into agreements under which CCR disposal and mine reclamation services for SJGS would be provided. In 2019, Westmoreland emerged from Chapter 11 bankruptcy as a privately held company owned and operated by a group of its former creditors. Under the reorganization, the assets of SJCC were sold to Westmoreland San Juan Mining, LLC (“WSJ LLC”), a subsidiary of Westmoreland Mining Holdings, LLC. As successor entity to SJCC, WSJ LLC assumed all rights and obligations of SJCC including obligations to PNM under the SJGS CSA and to PNMR under letter of credit support agreements. PNMR issued $30.3 million in letters of credit to facilitate the issuance of reclamation bonds required in order for SJCC to mine coal to be supplied to SJGS. As discussed above, WSJ LLC assumed the rights and obligations of SJCC, including obligations to PNMR for the letters of credit. The letters of credit support results in PNMR having a variable interest in WSJ LLC since PNMR is subject to possible loss in the event performance by PNMR is required under the letters of credit support. PNMR considers the possibility of loss under the letters of credit support to be remote since the purpose of posting the bonds is to provide assurance that WSJ LLC performs the required reclamation of the mine site in accordance with applicable regulations and the reclamation services agreement provides WSJ LLC the ability to recover the cost of reclamation. Additionally, much of the mine reclamation activities will be performed after the SJGS CSA expired on September 30, 2022. As discussed in Note 11, each of the SJGS participants has established and actively fund trusts to meet future reclamation obligations. WSJ LLC is considered a VIE. PNMR’s analysis of its arrangements with WSJ LLC concluded that WSJ LLC had the ability to direct its mining operations and reclamation services, which are the factors that most significantly impact the economic performance of WSJ LLC. Other than PNM being able to ensure that coal was supplied in adequate quantities and of sufficient quality to provide the fuel necessary to operate SJGS in a normal manner and monitoring of reclamation activities, the mining operations and reclamation services were solely under the control of WSJ LLC, including developing mining and reclamation plans, hiring of personnel, and incurring operating and maintenance expenses. Neither PNMR nor PNM had any ability to direct or influence the mining operation or reclamation activities. PNM’s involvement through the SJGS CSA and the reclamation services agreement is a protective right rather than a participating right and WSJ LLC still has the power to direct the activities that most significantly impact the economic performance of WSJ LLC. The SJGS CSA required WSJ LLC to deliver coal to fuel SJGS in exchange for payment of a set price per ton, which escalated over time for inflation. The reclamation services agreement requires WSJ LLC to perform reclamation services at a base price per activity, which escalates over time for inflation. If WSJ LLC had been able to mine or performs reclamation services more efficiently than anticipated,

Fair Value of Derivative and Ot

Fair Value of Derivative and Other Financial Instruments	6 Months Ended
	Jun. 30, 2023
Fair Value of Derivative and Other Financial Instruments [Abstract]
Fair Value of Derivative and Other Financial Instruments	Fair Value of Derivative and Other Financial Instruments Additional information concerning energy related derivative contracts and other financial instruments is contained in Note 9 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is based on current market quotes as available and is supplemented by modeling techniques and assumptions made by the Company to the extent quoted market prices or volatilities are not available. External pricing input availability varies based on commodity location, market liquidity, and term of the agreement. Valuations of derivative assets and liabilities take into account nonperformance risk, including the effect of counterparties’ and the Company’s credit risk. The Company regularly assesses the validity and availability of pricing data for its derivative transactions. Although the Company uses its best judgment in estimating the fair value of these instruments, there are inherent limitations in any estimation technique. Energy Related Derivative Contracts Overview The primary objective for the use of commodity derivative instruments, including energy contracts, options, swaps, and futures, is to manage price risk associated with forecasted purchases of energy and fuel used to generate electricity, as well as managing anticipated generation capacity in excess of forecasted demand from existing customers. PNM’s energy related derivative contracts manage commodity risk. PNM is required to meet the demand and energy needs of its customers. PNM may be exposed to market risk for the needs of its customers not covered under the FPPAC. PNM has entered into several agreements to purchase power from third parties in order to ensure that customer demand during the 2023 summer peak load is met. Agreements for purchases totaling 85 MW from June 1, 2023 through September 30, 2023 were not considered derivatives because there was either no notional amount due to their unit-contingent nature or qualified for a normal purchase, normal sale scope exception. Agreements totaling 375 MW were accounted for as derivative agreements and are considered economic hedges. For additional information related to 2023 summer peak resource adequacy, see Note 12. In 2021, PNM entered into three agreements to purchase power from third parties at a fixed price in order to ensure that customer demand during the 2022 summer peak load period was met. Two of the agreements, the purchase of 85 MW from June through September 2022 and the purchase of 40 MW for the full year of 2022, were not considered derivatives because there were no notional amounts due to the unit-contingent nature of the agreements. The third agreement for the purchase of 150 MW firm power in June and September 2022 were accounted for as derivative agreements and are considered economic hedges. PNM was exposed to market risk for its 65 MW interest in SJGS Unit 4, which was held as merchant plant as ordered by the NMPRC from January 1, 2018 until September 30, 2022. PNM entered into agreements to sell power from 36 MW of that capacity to a third party at a fixed price for the period January 1, 2018 through June 30, 2022, subject to certain conditions. Under these agreements, PNM was obligated to deliver 36 MW of power only when SJGS Unit 4 was operating. In May 2022, PNM executed a new agreement to sell 50 MW of that capacity to a third party for the period from July 1, 2022 through September 30, 2022 on a system-contingent basis. These agreements were not considered derivatives because there was no notional amount due to the unit-contingent nature of the transactions. PNM and Tri-State had a hazard sharing agreement that expired in May 2022. Under this agreement, each party sold the other party 100 MW of capacity and energy from a designated generation resource on a unit contingent basis, subject to certain performance guarantees. The agreement was accounted for as a commodity derivative. In May 2022, PNM and Tri-State entered into another hazard sharing agreement that existed on a unit contingent basis through September 30, 2022, however this agreement did not include a performance guarantee. As a result, this agreement was not considered a derivative. Both the purchases and sales were made at the same market index price. This agreement served to reduce the magnitude of each party’s single largest generating hazard and assist in enhancing the reliability and efficiency of their respective operations. PNM passed the sales and purchases through to customers under PNM’s FPPAC. PNM’s operations are managed primarily through a net asset-backed strategy, whereby PNM’s aggregate net open forward contract position is covered by its forecasted excess generation capabilities or market purchases. PNM could be exposed to market risk if its generation capabilities were to be disrupted or if its load requirements were to be greater than anticipated. If all or a portion of load requirements were required to be covered as a result of such unexpected situations, commitments would have to be met through market purchases. TNMP does not enter into energy related derivative contracts. Commodity Risk Marketing and procurement of energy often involve market risks associated with managing energy commodities and establishing positions in the energy markets, primarily on a short-term basis. PNM routinely enters into various derivative instruments such as forward contracts, option agreements, and price basis swap agreements to economically hedge price and volume risk on power commitments and fuel requirements and to minimize the effect of market fluctuations. PNM monitors the market risk of its commodity contracts in accordance with approved risk and credit policies. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, PNM accounts for its various instruments for the purchase and sale of energy, which meet the definition of a derivative, based on PNM’s intent. During the six months ended June 30, 2023 and the year ended December 31, 2022, PNM was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flow hedges. The derivative contracts recorded at fair value that do not qualify or are not designated for cash flow hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power agreements, used to economically hedge generation assets, purchased power and fuel costs, and customer load requirements. Changes in the fair value of economic hedges are reflected in results of operations and are classified between operating revenues and cost of energy according to the intent of the hedge. PNM also uses such instruments under an NMPRC approved hedging plan to manage fuel and purchased power costs related to customers covered by its FPPAC. Changes in the fair value of instruments covered by its FPPAC are recorded as regulatory assets and liabilities. PNM has no trading transactions. Commodity Derivatives PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets: Economic Hedges June 30, December 31, (In thousands) Other current assets $ 641 $ 9,780 Other current liabilities (22,917) (19,209) Net $ (22,276) $ (9,429) Certain of PNM’s commodity derivative instruments in the above table are subject to master netting agreements whereby assets and liabilities could be offset in the settlement process. PNM does not offset fair value and cash collateral for derivative instruments under master netting arrangements and the above table reflects the gross amounts of fair value assets and liabilities for commodity derivatives. As discussed above, PNM has NMPRC-approved guidelines for hedging arrangements to manage fuel and purchased power costs related to customers covered by its FPPAC. The table above includes $0.6 million of current assets and, $22.9 million of current liabilities related to these arrangements at June 30, 2023 and $9.8 million of current assets and $19.2 million of current liabilities at December 31, 2022 with changes in fair value recorded as regulatory assets and regulatory liabilities. At June 30, 2023 and December 31, 2022, PNM had no amounts recognized for the legal right to reclaim cash collateral. However, amounts posted as cash collateral under margin arrangements were $0.9 million at June 30, 2023 and $10.5 million at December 31, 2022. These amounts are included in other current assets on the Condensed Consolidated Balance Sheets. At June 30, 2023 and December 31, 2022, obligations to return cash collateral were $0.2 million, which is included in other current liabilities on the Condensed Consolidated Balance Sheets. The changes in the fair value of commodity derivative instruments that are considered economic hedges had no impact on PNM’s net earnings during the six months ended June 30, 2023 and 2022. Commodity derivatives had no impact on OCI for any of the periods presented. Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM's net buy (sell) volume positions: Economic Hedges MMBTU MWh June 30, 2023 155,000 471,415 December 31, 2022 — 432,200 In connection with managing its commodity risks, PNM enters into master agreements with certain counterparties. If PNM is in a net liability position under an agreement, some agreements provide that the counterparties can request collateral if PNM’s credit rating is downgraded; other agreements provide that the counterparty may request collateral to provide it with “adequate assurance” that PNM will perform; and others have no provision for collateral. The table below presents information about PNM's contingent requirement to provide collateral under certain commodity contracts having an objectively determinable collateral provision, that are in net liability positions, and that are not fully collateralized with cash. Contractual liability represents those commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. Cash collateral posted under these contracts does not reflect letters of credit under the Company's revolving credit facilities that may have been issued as collateral. Net exposure is the net contractual liability for all contracts, including those designated as normal purchase and normal sale, offset by existing collateral and by any offsets available under master netting agreements, including both assets and liability positions. Contingent Feature - Credit Rating Downgrade Contractual Liability Existing Cash Collateral Net Exposure (In thousands) June 30, 2023 $ 26,190 $ — $ 22,743 December 31, 2022 $ 15,288 $ — $ 13,087 Non-Derivative Financial Instruments The carrying amounts reflected on the Condensed Consolidated Balance Sheets approximate fair value for cash, receivables, and payables due to the short period of maturity. Investment securities are carried at fair value. Investment securities consist of PNM assets held in the NDT for its share of decommissioning costs of PVNGS, a trust for PNM's share of decommissioning costs at SJGS, and trusts for PNM’s share of final reclamation costs related to the coal mines serving SJGS and Four Corners. See Note 11. At June 30, 2023 and December 31, 2022, the fair value of investment securities included $342.7 million and $325.3 million for the NDT, $15.1 million and $14.7 million for the SJGS decommissioning trust, and $75.4 million and $77.5 million for the coal mine reclamation trusts. PNM records a realized loss as an impairment for any available-for-sale debt security that has a fair value that is less than its carrying value. At June 30, 2023 and December 31, 2022, PNM had no available-for-sale debt securities for which carrying value exceeds fair value and there are no impairments considered to be “other than temporary” that are included in AOCI and not recognized in earnings. All gains and losses resulting from sales and changes in the fair value of equity securities are recognized immediately in earnings. Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT, SJGS decommissioning, and coal mine reclamation trusts are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ 2,792 $ (1,061) $ 1,947 $ 3,945 Net gains (losses) from equity securities still held 1,142 (26,224) 8,619 (48,259) Total net gains (losses) on equity securities 3,934 (27,285) 10,566 (44,314) Available-for-sale debt securities: Net (losses) on debt securities (157) (14,510) (347) (24,054) Net gains (losses) on investment securities $ 3,777 $ (41,795) $ 10,219 $ (68,368) The proceeds and gross realized gains and losses on the disposition of securities held in the NDT, SJGS decommissioning trust, and coal mine reclamation trusts are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold. Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $1.4 million and $3.4 million for the three and six months ended June 30, 2023 and $(12.7) million and $(21.6) million for the three and six months ended June 30, 2022. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Proceeds from sales $ 183,566 $ 105,634 $ 274,777 $ 230,880 Gross realized gains 7,014 7,545 10,442 17,723 Gross realized (losses) (5,741) (10,361) (12,212) (16,201) At June 30, 2023, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 72,289 After 1 year through 5 years 67,056 After 5 years through 10 years 67,886 After 10 years through 15 years 20,197 After 15 years through 20 years 12,169 After 20 years 38,128 $ 277,725 Fair Value Disclosures The Company determines the fair values of its derivative and other financial instruments based on the hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. For investment securities, Level 2 and Level 3 fair values are provided by fund managers utilizing a pricing service. For Level 2 fair values, the pricing provider predominantly uses the market approach using bid side market values based upon a hierarchy of information for specific securities or securities with similar characteristics. Fair values of Level 2 investments in mutual funds are equal to net asset value. For commodity derivatives, Level 2 fair values are determined based on market observable inputs, which are validated using multiple broker quotes, including forward price, volatility, and interest rate curves to establish expectations of future prices. Credit valuation adjustments are made for estimated credit losses based on the overall exposure to each counterparty. For the Company’s long-term debt, Level 2 fair values are provided by an external pricing service. The pricing service primarily utilizes quoted prices for similar debt in active markets when determining fair value. The valuation of Level 3 investments, when applicable, requires significant judgment by the pricing provider due to the absence of quoted market values, changes in market conditions, and the long-term nature of the assets. The Company has no Level 3 investments as of June 30, 2023 and December 31, 2022. Management of the Company independently verifies the information provided by pricing services. Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unrealized Gains (In thousands) June 30, 2023 Cash and cash equivalents $ 21,511 $ 21,511 $ — Equity securities: Corporate stocks, common 74,375 74,375 — Corporate stocks, preferred 4,906 752 4,154 Mutual funds and other 54,675 54,675 — Available-for-sale debt securities: U.S. government 35,550 35,245 305 $ 1,490 International government 10,833 — 10,833 1,428 Municipals 46,693 — 46,693 1,051 Corporate and other 184,649 184,649 7,997 $ 433,192 $ 186,558 $ 246,634 $ 11,966 December 31, 2022 Cash and cash equivalents $ 66,843 $ 66,843 $ — Equity securities: Corporate stocks, common 40,103 40,103 — Corporate stocks, preferred 5,191 790 4,401 Mutual funds and other 66,359 66,359 — Available-for-sale debt securities: U.S. government 45,905 45,645 260 $ 1,334 International government 9,762 — 9,762 1,117 Municipals 43,136 — 43,136 1,062 Corporate and other 140,177 — 140,177 6,473 $ 417,476 $ 219,740 $ 197,736 $ 9,986 The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below: Carrying Amount Fair Value June 30, 2023 (In thousands) PNMR $ 4,349,963 $ 3,996,151 PNM 2,144,735 1,928,350 TNMP 1,206,160 1,067,801 December 31, 2022 PNMR $ 4,077,387 $ 3,726,195 PNM 2,000,900 1,789,186 TNMP 1,076,875 937,009 The carrying amount and fair value of the Company’s other investments presented on the Condensed Consolidated Balance Sheets are not material and not shown in the above table.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation PNMR has various stock-based compensation programs, which provide restricted stock awards under the Performance Equity Plan (“PEP”). Although certain PNM and TNMP employees participate in the PNMR plans, PNM and TNMP do not have separate employee stock-based compensation plans. Certain restricted stock awards are subject to achieving performance or market targets. Other awards of restricted stock are only subject to time vesting requirements. Restricted stock expected to be awarded under the PEP for performance periods ending after 2023 no longer have market targets. Additional information concerning stock-based compensation under the PEP is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Restricted stock under the PEP refers to awards of stock subject to vesting, performance, or market conditions rather than to shares with contractual post-vesting restrictions. Generally, the awards vest ratably over three years from the grant date of the award. However, awards with performance or market conditions vest upon satisfaction of those conditions. In addition, plan provisions provide that upon retirement, participants become 100% vested in certain stock awards. The vesting period for awards of restricted stock to non-employee members of the Board is one-year. The stock-based compensation expense related to restricted stock awards without performance or market conditions to participants that are retirement eligible on the grant date is recognized immediately at the grant date and is not amortized. Compensation expense for other such awards is amortized over the shorter of the requisite vesting period or the period until the participant becomes retirement eligible. Compensation expense for performance-based shares is recognized ratably over the performance period as required service is provided and is adjusted periodically to reflect the level of achievement expected to be attained. Compensation expense related to market-based shares is recognized ratably over the measurement period, regardless of the actual level of achievement, provided the employees meet their service requirements. At June 30, 2023, PNMR had unrecognized expense related to stock awards of $6.8 million, which is expected to be recognized over an average of 2.2 years. The grant date fair value for restricted stock and stock awards with internal PNMR performance targets is determined based on the market price of PNMR common stock on the date of the agreements reduced by the present value of future dividends that will not be received prior to vesting. The grant date fair value is applied to the total number of shares that are anticipated to vest, although the number of performance shares that ultimately vest cannot be determined until after the performance periods end. The grant date fair value of stock awards with market targets were determined using Monte Carlo simulation models, which provide grant date fair values that include an expectation of the number of shares to vest at the end of the measurement period. The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Six Months Ended June 30, Restricted Shares and Performance Based Shares 2023 2022 Expected quarterly dividends per share $ 0.3675 $ 0.3475 Risk-free interest rate 4.46 % 1.46 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares for the six months ended June 30, 2023: Restricted Stock Shares Weighted- Outstanding at December 31, 2022 182,446 $ 42.09 Granted 194,453 45.00 Released (197,120) 43.99 Forfeited (1,222) 42.57 Outstanding at June 30, 2023 178,557 $ 43.31 PNMR’s current stock-based compensation program provides for performance targets through 2025 and market targets through 2023. Included, as granted and released, in the table above are 100,991 previously awarded shares that were earned for the 2020 - 2022 performance measurement period and ratified by the Board in February 2023 (based upon achieving targets at above "target", below "maximum" levels). Excluded from the table above are 143,837, 149,898, and 141,885 shares for the three-year performance periods ending in 2023, 2024 and 2025 that will be awarded if all performance and market criteria are achieved at maximum levels and all executives remain eligible. The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares: Six Months Ended June 30, Restricted Stock 2023 2022 Weighted-average grant date fair value $ 45.00 $ 41.04 Total fair value of restricted shares that vested (in thousands) $ 9,622 $ 7,782

Financing

Financing	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Financing	Financing The Company’s financing strategy includes both short-term and long-term borrowings. The Company utilizes short-term revolving credit facilities, as well as cash flows from operations, to provide funds for both construction and operating expenditures. Depending on market and other conditions, the Company will periodically sell long-term debt or enter into term loan arrangements and use the proceeds to reduce borrowings under the revolving credit facilities or refinance other debt. Each of the Company’s revolving credit facilities, term loans, and other debt agreements contains a single financial covenant that requires the maintenance of a debt-to-capitalization ratio. For the PNMR agreements this ratio must be maintained at less than or equal to 70%, and for the PNM and TNMP agreements this ratio must be maintained at less than or equal to 65%. The Company’s revolving credit facilities, term loans, and other debt agreements generally also contain customary covenants, events of default, cross-default provisions, and change-of-control provisions. PNM must obtain NMPRC approval for any financing transaction having a maturity of more than 18 months. In addition, PNM files its annual informational financing filing and short-term financing plan with the NMPRC. Additional information concerning financing activities is contained in Note 7 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. On May 16, 2023, PNM filed a shelf registration statement to issue up to $650.0 million of SUNs that expires in May 2026. On March 2, 2022, PNMR filed a shelf registration that provides for the issuance of various types of debt and equity securities. The PNMR shelf registration statement expires in March 2025. Financing Activities On June 30, 2023, PNMR entered into a $500.0 million term loan agreement (the "PNMR 2023 Term Loan") among PNMR, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent. The PNMR 2023 Term Loan matures on June 30, 2026 and bears interest at a variable rate, which was 6.55% at June 30, 2023. The proceeds were used to prepay an equal amount of the PNMR 2021 Delayed Draw Term Loan, without penalty. At December 31, 2022, PNM had $130.0 million of 1.10% PCRBs outstanding with a mandatory remarketing date of June 1, 2023, issued by the City of Farmington, New Mexico with a final maturity of June 2040. On June 1, 2023, PNM remarketed the $130.0 million to new investors at 3.90% with a mandatory tender date of June 1, 2028. At December 31, 2022, PNM had $55.0 million aggregate principal amount of its 3.15% SUNs outstanding due May 2023. On May 15, 2023, PNM repaid the $55.0 million 3.15% SUNs. On April 28, 2023, PNM entered into an agreement (the "PNM 2023 Note Purchase Agreement") with institutional investors for the sale and issuance of $200.0 million aggregate principal amount of two series of SUNs (the “PNM 2023 SUNs”) offered in private placement transactions. The PNM 2023 SUNs were issued on April 28, 2023. PNM issued $150.0 million of the PNM 2023 SUNs at 5.51%, due April 28, 2035, and another $50.0 million at 5.92%, due April 28, 2053. Proceeds from the PNM 2023 SUNs were used to repay borrowings under the PNM Revolving Credit Facility and the PNM New Mexico Credit Facility, funding of capital expenditures, and for general corporate purposes. The PNM 2023 Note Purchase Agreement includes the customary covenants discussed above. In the event of a change of control, PNM will be required to offer to prepay the PNM 2023 SUNs at par. Although there are customary change of control provisions in the PNM debt agreements, the change of control provisions in these agreements, including the PNM 2023 Note Purchase Agreement, are not triggered by the closing of the Merger. PNM has the right to redeem any or all of the PNM 2023 SUNs prior to their maturities, subject to payment of a customary make-whole premium. On April 28, 2023, TNMP entered into an agreement (the “TNMP 2023 Bond Purchase Agreement”) with institutional investors for the sale of $185.0 million aggregate principal amount of two series of TNMP first mortgage bonds (the “TNMP 2023 Bonds”) offered in private placement transactions. TNMP issued the first series of $130.0 million on April 28, 2023, at a 5.01% interest rate, due April 28, 2033. The second series of $55.0 million was issued on July 28, 2023, at a 5.47% interest rate, due July 28, 2053. The proceeds were used to repay borrowings under the TNMP Revolving Credit Facility, funding of capital expenditures, and for other corporate purposes. The TNMP 2023 Bonds are subject to continuing compliance with the representations, warranties and covenants set forth in the supplemental indenture governing the TNMP 2023 Bonds. The terms of the supplemental indentures governing the TNMP 2023 Bonds include the customary covenants discussed above. In the event of a change of control, TNMP will be required to offer to prepay the TNMP 2023 Bonds at par. However, the definition of change of control in the supplemental indentures governing the TNMP 2023 Bonds will not be triggered by the close of the Merger. TNMP has the right to redeem any or all of the TNMP 2023 Bonds prior to their maturity, subject to payment of a customary make-whole premium. On November 10, 2022, PNMR entered into a distribution agreement with BofA Securities, Inc., MUFG Securities Americas Inc. and Wells Fargo Securities, LLC, as sales agents and Bank of America, N.A., MUFG Securities EMEA plc and Wells Fargo Bank, N.A., as forward purchasers, pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $200.0 million of its common stock, no par value, through the sales agents (the “PNMR 2022 ATM Program”). During the first quarter of 2023, PNMR entered into forward sale agreements with each of Bank of America, N.A. and Wells Fargo Bank, N.A. as forward purchasers relating to the sale of 504,452 shares and 528,082 shares of common stock, respectively, under the PNMR 2022 ATM Program (the “2023 Q1 Forward Sale Agreements”). The average initial forward sale price of $48.49 per share and $48.30 per share, respectively, are subject to adjustments based on a net interest rate factor and by future dividends paid on PNMR common stock as specified in the 2023 Q1 Forward Sales Agreements. During the second quarter of 2023, PNMR entered into additional forward sale agreements with MUFG Securities EMEA plc as forward purchaser relating to the sale of 1,049,116 shares of common stock under the PNMR 2022 ATM Program (the "2023 Q2 Forward Sale Agreements”, and together with the 2023 Q1 Forward Sales Agreements, the "2023 Forward Sales Agreements"). The average initial forward sale price of $45.49 per share is subject to adjustments based on a net interest rate factor and by future dividends paid on PNMR common stock as specified in the 2023 Q2 Forward Sale Agreements. PNMR did not initially receive any proceeds upon the execution of the 2023 Forward Sales Agreements and, except in certain specified circumstances, has the option to elect physical, cash, or net share settlement of the forward sale agreements on or before a date that is 12 months from the agreement effective dates. The Company expects to receive proceeds from the sale of shares upon future physical settlement(s) of the 2023 Forward Sale Agreements, in which case the Company will deliver newly issued shares to the forward purchasers in exchange for cash in an amount equal to the number of shares delivered multiplied by the then-applicable forward sale price. PNMR also has the option to net settle the agreements in cash or shares of PNMR common stock. Under a net cash settlement, under which no PNMR common stock would be issued, PNMR would receive net proceeds for a decrease in the market value of PNMR's common stock relative to the then-applicable forward sales price per share, or would owe cash in the event of an increase in the market value of PNMR common stock. Under a net share settlement, PNMR would not receive any cash proceeds and may be required to deliver a sufficient number of shares of PNMR common stock to satisfy its obligation to the forward purchasers. The number of shares to be delivered to the forward purchasers would be based on the increase in the PNMR's common stock price relative to the then-applicable forward sales price per share. The forward sale agreements meet the derivative scope exception requirements for contracts involving an entity's own equity. Until settlement of the forward sale agreements, PNMR’s EPS dilution resulting from the agreements, if any, will be determined using the treasury stock method, which will result in dilution during periods when the average market price of PNMR stock during the reporting period is higher than the applicable forward sales price as of the end of that period. As of June 30, 2023, no shares have been settled under the 2023 Forward Sale Agreements. On April 27, 2022, TNMP entered into an agreement (the "TNMP 2022 Bond Purchase Agreement") with institutional investors for the sale of $160.0 million aggregate principal amount of two series of TNMP first mortgage bonds (the "TNMP 2022 Bonds") offered in private placement transactions. TNMP issued the first series of $65.0 million of the TNMP 2022 Bonds on May 12, 2022, at a 4.13% interest rate, due May 12, 2052, and the second series of $95.0 million of the TNMP 2022 Bonds on July 28, 2022, at a 3.81% interest rate, due July 28, 2032. The proceeds were used to repay borrowings under the TNMP Revolving Credit Facility and for other corporate purposes. The TNMP 2022 Bonds are subject to continuing compliance with the representations, warranties and covenants set forth in the supplemental indenture governing the TNMP 2022 Bonds. The terms of the supplemental indentures governing the TNMP 2022 Bonds include the customary covenants discussed above. In the event of a change of control, TNMP will be required to offer to prepay the TNMP 2022 Bonds at par. However, the definition of change of control in the supplemental indentures governing the TNMP 2022 Bonds will not be triggered by the close of the Merger. TNMP has the right to redeem any or all of the TNMP 2022 Bonds prior to their maturity, subject to payment of a customary make-whole premium. At December 31, 2021, PNM had $104.5 million PCRBs outstanding with a mandatory remarketing date of June 1, 2022, consisting of $36.0 million at 1.05% issued by the Maricopa County, Arizona Pollution Control Corporation with a final maturity of January 2038; $37.0 million at 2.125% issued by the City of Farmington, New Mexico with a final maturity of June 2040; $11.5 million at 1.20% issued by the City of Farmington, New Mexico with a final maturity of June 2040; and $20.0 million at 2.45% issued by the City of Farmington, New Mexico with a final maturity of September 2042. On June 1, 2022, PNM remarketed to new investors the $36.0 million and $37.0 million series in the tax-exempt market at 3.00% with a mandatory put date of June 1, 2024. PNM purchased and redeemed the remaining two series of PCRBs, totaling $31.5 million, on June 1, 2022. At June 30, 2023, variable interest rates were 6.15% on the PNMR 2021 Delayed-Draw Term Loan that matures in May 2025, 6.55% on the PNMR 2023 Term Loan that matures in June 2026, and 5.99% on the PNM 2022 Delayed-Draw Term Loan that matures in February 2024. Hedging Arrangements PNMR has entered into hedging agreements that establish a fixed rate for the indicated amount of variable rate debt, above which a customary spread is applied, which is subject to change if there is a change in PNMR's credit rating. As of June 30, 2023, PNMR's hedging agreements are as follows: Variable Rate Established Effective Date Maturity Date Debt Hedged Fixed Rate (In millions) (Percent) March 17, 2023 September 30, 2023 $ 150.0 4.57 % October 31, 2022 December 31, 2023 100.0 4.65 October 31, 2022 December 31, 2023 100.0 4.66 September 30, 2022 December 31, 2023 100.0 4.17 September 30, 2022 December 31, 2023 100.0 4.18 May 20, 2022 December 31, 2023 100.0 2.52 May 2, 2022 December 31, 2023 150.0 2.65 May 2, 2022 December 31, 2023 200.0 2.65 January 1, 2024 December 31, 2024 100.0 3.32 January 1, 2024 December 31, 2024 100.0 3.32 January 1, 2024 December 31, 2024 100.0 3.38 January 1, 2024 December 31, 2024 150.0 3.62 January 1, 2024 December 31, 2024 150.0 3.57 These hedge agreements are accounted for as cash flow hedges. The fair value of these hedges was a gain of $15.9 million at June 30, 2023, $8.1 million of which is included in Other current assets and $7.8 million of which is included in Other deferred charges on the Condensed Consolidated Balance Sheets. The fair value was determined using Level 2 inputs under GAAP, including using forward SOFR curves under the mid-market convention to discount cash flows over the remaining term of the agreements. Short-term Debt and Liquidity Currently, the PNMR Revolving Credit Facility has a financing capacity of $300.0 million and the PNM Revolving Credit Facility has a financing capacity of $400.0 million. On May 20, 2022, both PNMR and PNM extended the facilities to October 31, 2024 with two one-year extension options that, if exercised, would extend the maturity through October 2026, subject to approval by a majority of the lenders. On January 26, 2023 PNMR and PNM exercised one of the one-year extension options in their respective agreements, extending their maturities through October 2025; provided that, effective November 1, 2024, the capacity of the PNMR Revolving Credit Facility will adjust to $285.0 million and the PNM Revolving Credit Facility will adjust to $380.0 million because one lender in each facility did not agree to the one-year extension through October 2025. Also on May 20, 2022, the $40.0 million PNM New Mexico Credit Facility was extended to May 20, 2026. On March 11, 2022, the TNMP Revolving Credit Facility, with a capacity of $75.0 million secured by $75.0 million aggregate principal amount of TNMP first mortgage bonds was amended to extend the maturity to September 23, 2024, with two one-year extension options that, if exercised, would extend the maturity to September 2026, subject to approval by a majority of the lenders. The amended TNMP Revolving Credit Facility also contained an accordion feature that would allow TNMP to increase the size of the revolver from $75.0 million to $100.0 million, subject to certain conditions. On May 13, 2022, TNMP exercised the accordion feature and increased the capacity of the TNMP Revolving Credit Facility to $100.0 million, secured by $100.0 million aggregate principal amount of TNMP first mortgage bonds. On January 26, 2023, TNMP exercised one of the one-year extension options on its credit facility, which extended the maturity to September 23, 2025. Variable interest rates under the PNMR, PNM, and TNMP revolving credit facilities are based on SOFR. Short-term debt outstanding consists of: June 30, December 31, Short-term Debt 2023 2022 (In thousands) PNM: PNM Revolving Credit Facility $ 111,600 $ 145,900 PNM New Mexico Credit Facility 20,000 40,000 131,600 185,900 TNMP Revolving Credit Facility 37,100 36,700 PNMR Revolving Credit Facility 157,800 9,400 $ 326,500 $ 232,000 At June 30, 2023, the weighted average interest rates were 6.48% for the PNM Revolving Credit Facility, 6.44% for the PNM New Mexico Credit Facility, 6.10% for the TNMP Revolving Credit Facility, and 6.71% for the PNMR Revolving Credit Facility. In addition to the above borrowings, PNMR, PNM, and TNMP had letters of credit outstanding of $3.1 million, zero, and zero at June 30, 2023 that reduce the available capacity under their respective revolving credit facilities. PNMR also had $30.3 million of letters of credit outstanding under the WFB LOC Facility. The above table excludes intercompany debt. As of June 30, 2023, PNM, TNMP, and PNMR Development had zero, zero, and $9.5 million in intercompany borrowings from PNMR. As of December 31, 2022, neither PNM, TNMP, nor PNMR Development had any intercompany borrowings from PNMR. PNMR had zero and $5.3 million in intercompany borrowings from PNMR Development at June 30, 2023 and December 31, 2022. The Company’s debt arrangements have various maturities and expiration dates. PNM has $225.0 million from the PNM 2022 Delayed Draw Term Loan that is due in February 2024 and $198.0 million of PCRBs that mature in June 2024. Additional information on debt maturities is contained in Note 7 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefit Plans	Pension and Other Postretirement Benefit Plans PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. The Company presents the service cost component of its net periodic benefit costs in administrative and general expenses and the non-service costs components in other income (deductions), net of amounts capitalized or deferred to regulatory assets and liabilities, on the Condensed Consolidated Statements of Earnings. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of accumulated periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Additional information concerning pension and OPEB plans is contained in Note 11 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Annual net periodic benefit cost for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year. Differences between TNMP's annual net periodic costs (income) and amounts included in its regulated rates are deferred to regulatory assets or liabilities, for recovery or refund in future rate proceedings. PNM Plans The following table presents the components of the PNM Plans’ net periodic benefit cost: Three Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ — $ 2 $ — $ — Interest cost 5,914 4,214 676 479 135 90 Expected return on plan assets (7,299) (7,141) (1,243) (1,088) — — Amortization of net loss 2,645 3,949 — — 38 82 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 1,260 $ 1,022 $ (567) $ (607) $ 173 $ 172 Six Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ — $ 4 $ — $ — Interest cost 11,827 8,428 1,352 958 270 180 Expected return on plan assets (14,598) (14,282) (2,485) (2,176) — — Amortization of net loss 5,291 7,898 — — 76 164 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 2,520 $ 2,044 $ (1,133) $ (1,214) $ 346 $ 344 PNM did not make any contributions to its pension plan trust in the six months ended June 30, 2023 and 2022 and does not anticipate making any contributions to the pension plan in 2023 through 2026 based on current law, funding requirements, and estimates of portfolio performance. In 2027 PNM does anticipate making a contribution of $0.4 million based on current law, funding requirements, and estimates of portfolio performance. Funding assumptions were developed using a discount rate of 5.7%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM did not make any cash contributions to the OPEB trust in the six months ended June 30, 2023 and 2022, however, a portion of the disbursements attributable to the OPEB trust is paid by PNM and are therefore considered to be contributions to the OPEB plan. Payments by PNM on behalf of the PNM OPEB plan were less than $0.1 million and $0.1 million for the three and six months ended June 30, 2023 and $0.9 million and $1.8 million for the three and six months ended June 30, 2022. These payments are expected to total $0.2 million in 2023 and $9.0 million for 2024-2027. Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.2 million and $0.6 million in the three and six months ended June 30, 2023 and $0.3 million and $0.6 million in the three and six months ended June 30, 2022 and are expected to total $1.3 million during 2023 and $4.5 million for 2024-2027. TNMP Plans The following table presents the components of the TNMP Plans’ net periodic benefit cost: Three Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 6 $ 9 $ — $ — Interest cost 600 430 107 77 3 3 Expected return on plan assets (675) (618) (121) (104) — — Amortization of net (gain) loss 109 233 (190) (130) — — Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 34 $ 45 $ (198) $ (148) $ 3 $ 3 Six Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 11 $ 18 $ — $ — Interest cost 1,201 860 213 154 6 6 Expected return on plan assets (1,349) (1,236) (241) (208) — — Amortization of net (gain) loss 219 466 (380) (260) — — Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 71 $ 90 $ (397) $ (296) $ 6 $ 6

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Overview There are various claims and lawsuits pending against the Company. In addition, the Company is subject to federal, state, and local environmental laws and regulations and periodically participates in the investigation and remediation of various sites. In addition, the Company periodically enters into financial commitments in connection with its business operations. Also, the Company is involved in various legal and regulatory proceedings in the normal course of its business. See Note 12. It is not possible at this time for the Company to determine fully the effect of all litigation and other legal and regulatory proceedings on its financial position, results of operations, or cash flows. With respect to some of the items listed below, the Company has determined that a loss is not probable or that, to the extent probable, cannot be reasonably estimated. In some cases, the Company is not able to predict with any degree of certainty the range of possible loss that could be incurred. The Company assesses legal and regulatory matters based on current information and makes judgments concerning their potential outcome, giving due consideration to the nature of the claim, the amount and nature of any damages sought, and the probability of success. Such judgments are made with the understanding that the outcome of any litigation, investigation, or other legal proceeding is inherently uncertain. The Company records liabilities for matters where it is probable a loss has been incurred and the amount of loss is reasonably estimatable. The actual outcomes of the items listed below could ultimately differ from the judgments made and the differences could be material. The Company cannot make any assurances that the amount of reserves or potential insurance coverage will be sufficient to cover the cash obligations that might be incurred as a result of litigation or regulatory proceedings. Except as otherwise disclosed, the Company does not expect that any known lawsuits, environmental costs, or commitments will have a material effect on its financial condition, results of operations, or cash flows. Additional information concerning commitments and contingencies is contained in Note 16 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Commitments and Contingencies Related to the Environment Nuclear Spent Fuel and Waste Disposal Nuclear power plant operators are required to enter into spent fuel disposal contracts with the DOE that require the DOE to accept and dispose of all spent nuclear fuel and other high-level radioactive wastes generated by domestic power reactors. Although the Nuclear Waste Policy Act required the DOE to develop a permanent repository for the storage and disposal of spent nuclear fuel by 1998, the DOE announced that it would not be able to open the repository by 1998 and sought to excuse its performance of these requirements. In November 1997, the DC Circuit issued a decision preventing the DOE from excusing its own delay but refused to order the DOE to begin accepting spent nuclear fuel. Based on this decision and the DOE’s delay, a number of utilities, including APS (on behalf of itself and the other PVNGS owners, including PNM), filed damages actions against the DOE in the Court of Federal Claims. The lawsuits filed by APS alleged that damages were incurred due to DOE’s continuing failure to remove spent nuclear fuel and high-level waste from PVNGS. In August 2014, APS and the DOE entered into a settlement agreement that established a process for the payment of claims for costs incurred through December 31, 2019. APS has accepted the DOE's extensions of the settlement agreement for recovery of costs incurred through December 31, 2025. Under the settlement agreement, APS must submit claims annually for payment of allowable costs. PNM records estimated claims on a quarterly basis. The benefit from the claims is passed through to customers under the FPPAC to the extent applicable to NMPRC regulated operations. PNM estimates that it will incur approximately $59.6 million (in 2019 dollars) for its share of the costs related to the on-site interim storage of spent nuclear fuel at PVNGS during the term of the operating licenses. PNM accrues these costs as a component of fuel expense as the nuclear fuel is consumed. At June 30, 2023 and December 31, 2022, PNM had a liability for interim storage costs of $11.4 million and $12.0 million, which is included in other deferred credits. PVNGS has sufficient capacity at its on-site Independent Spent Fuel Storage Installation (“ISFSI”) to store all of the nuclear fuel that will be irradiated during the initial operating license period, which ends in December 2027. Additionally, PVNGS has sufficient capacity at its on-site ISFSI to store a portion of the fuel that will be irradiated during the period of extended operation, which ends in November 2047. If uncertainties regarding the U.S. government’s obligation to accept and store spent fuel are not favorably resolved, APS will evaluate alternative storage solutions that may obviate the need to expand the ISFSI to accommodate all of the fuel that will be irradiated during the period of extended operation. The Energy Transition Act New Mexico state law Senate Bill 489, known as the Energy Transition Act (“ETA”) became effective as of June 14, 2019 and sets a statewide standard that requires investor-owned electric utilities to have specified percentages of their electric-generating portfolios be from renewable and zero-carbon generating resources. The ETA requires utilities operating in New Mexico to have renewable portfolios equal to 40% by 2025, 50% by 2030, 80% by 2040, and 100% zero-carbon energy by 2045. The ETA also allows for the recovery of undepreciated investments and decommissioning costs related to qualifying EGUs that the NMPRC has required be removed from retail jurisdictional rates, provided replacement resources to be included in retail rates have lower or zero-carbon emissions. The ETA requires the NMPRC to review and approve utilities’ annual renewable portfolio plans to ensure compliance with the RPS. The ETA also directs the New Mexico Environmental Improvement Board to adopt standards of performance that limit CO 2 emissions to no more than 1,100 lbs. per MWh beginning January 1, 2023 for new or existing coal-fired EGUs with original installed capacities exceeding 300 MW. The ETA provides for a transition from fossil-fuel generation resources to renewable and other carbon-free resources through certain provisions relating to the abandonment of coal-fired generating facilities. These provisions include the use of energy transition bonds, which are designed to be highly rated bonds that can be issued to finance certain costs of abandoning coal-fired facilities that are retired prior to January 1, 2023 for facilities operated by a “qualifying utility,” or prior to January 1, 2032 for facilities that are not operated by a qualifying utility. The amount of energy transition bonds that can be issued to recover abandonment costs is limited to the lesser of $375.0 million or 150% of the undepreciated investment of the facility as of the abandonment date. Proceeds provided by energy transition bonds must be used only for purposes related to providing utility service to customers and to pay energy transition costs (as defined by the ETA). These costs may include plant decommissioning and coal mine reclamation costs provided those costs have not previously been recovered from customers or disallowed by the NMPRC or by a court order. Proceeds from energy transition bonds may also be used to fund severances for employees of the retired facility and related coal mine and to promote economic development, education and job training in areas impacted by the retirement of the coal-fired facilities. Energy transition bonds must be issued under a NMPRC-approved financing order, are secured by “energy transition property,” are non-recourse to the issuing utility, and are repaid by a non-bypassable charge paid by all customers of the issuing utility. These customer charges are subject to an adjustment mechanism designed to provide for timely and complete payment of principal and interest due under the energy transition bonds. The ETA also provides that utilities must obtain NMPRC approval of competitively procured replacement resources that shall be evaluated based on their cost, economic development opportunity, ability to provide jobs with comparable pay and benefits to those lost upon retirement of the facility, and that do not exceed emissions thresholds specified in the ETA. In determining whether to approve replacement resources, the NMPRC must give preference to resources with the least environmental impacts, those with higher ratios of capital costs to fuel costs, and those located in the school district of the abandoned facility. The ETA also provides for the procurement of energy storage facilities and gives utilities discretion to maintain, control, and operate these systems to ensure reliable and efficient service. The ETA has and will have a significant impact on PNM’s future generation portfolio, including PNM’s retirement of SJGS in 2022 and the potential Four Corners exit in 2024 (subject to regulatory approval). PNM cannot predict the full impact of the ETA or the outcome of its pending and potential future generating resource abandonment and replacement resource filings with the NMPRC. See additional discussion in Note 12 of PNM’s SJGS and Four Corners Abandonment Applications. The Clean Air Act Regional Haze In 1999, EPA developed a regional haze program and regional haze rules under the CAA. The rule directs each of the 50 states to address regional haze. Pursuant to the CAA, states are required to establish goals for improving visibility in national parks and wilderness areas (also known as Class I areas) and to develop long-term strategies for reducing emissions of air pollutants that cause visibility impairment in their own states and for preventing degradation in other states. States must establish a series of interim goals to ensure continued progress by adopting a new SIP every ten years. In the first SIP planning period, states were required to conduct BART determinations for certain covered facilities, including utility boilers, built between 1962 and 1977 that have the potential to emit more than 250 tons per year of visibility impairing pollution. If it was demonstrated that the emissions from these sources caused or contributed to visibility impairment in any Class I area, BART must have been installed by the beginning of 2018. For all future SIP planning periods, states must evaluate whether additional emissions reduction measures may be needed to continue making reasonable progress toward natural visibility conditions. In 2017, EPA published revisions to the regional haze rule in the Federal Register. The new rule delayed the due date for the next cycle of SIPs from 2019 to 2021, altered the planning process that states must employ in determining whether to impose “reasonable progress” emission reduction measures, and gave new authority to federal land managers to seek additional emission reduction measures outside of the states’ planning process. Finally, the rule made several procedural changes to the regional haze program, including changes to the schedule and process for states to file 5-year progress reports. EPA’s new rule was challenged by numerous parties. On January 19, 2018, EPA filed a motion to hold the case in abeyance in light of several letters issued by EPA on January 17, 2018 to grant various petitions for reconsideration of the 2017 rule revisions. EPA’s decision to revisit the 2017 rule is not a determination on the merits of the issues raised in the petitions. In 2018, EPA released a new guidance document on tracking visibility progress for the second planning period. EPA is allowing states discretion to develop SIPs that may differ from EPA’s guidance as long as they are consistent with the CAA and other applicable regulations. In 2019, EPA finalized the draft guidance that was previously released as a companion to the regional haze rule revisions, and EPA clarified that guidance in a memorandum issued in 2021. SIPs for the second planning period were due in July 2021, which deadline NMED was unable to meet. NMED is currently preparing its SIP for the second compliance period and has notified PNM that it will not be required to submit a regional haze four-factor analysis for SJGS since PNM retired its share of SJGS in 2022. On April 7, 2022, EPA announced its intent to make findings by August 31, 2022 of the states that have failed to submit regional haze implementation plans for the second planning period and directed states to file their plans by August 15, 2022 to avoid inclusion in that finding. Despite that announcement, on April 13, 2022, four environmental groups sued EPA in the U.S. District Court for the Northern District of California seeking to compel EPA to issue a finding that 34 states failed to submit regional haze SIPs for the second planning period. On August 30, 2022, EPA published in the Federal Register an official "Finding of Failure to Submit" for states, including New Mexico, that have not yet submitted a round 2 regional haze SIP. This action by EPA starts a 2-year clock for it to issue a Federal Implementation Plan (FIP). NMED’s current timeline indicates the proposed SIP will be submitted to EPA by October 2023. Carbon Dioxide Emissions In 2015, EPA established standards to limit CO 2 emissions from power plants, including (1) Carbon Pollution Standards for new, modified, and reconstructed power plants; and (2) the Clean Power Plan for existing power plants. Multiple states, utilities, and trade groups filed petitions for review in the DC Circuit to challenge both the Carbon Pollution Standards for new sources and the Clean Power Plan for existing sources in separate cases. Challengers successfully petitioned the US Supreme Court for a stay of the Clean Power Plan. However, before the DC Circuit could issue an opinion regarding either the Carbon Pollution Standards or the Clean Power Plan, the Trump Administration asked that the case be held in abeyance while the rules were reevaluated, which was granted. In 2019, EPA repealed the Clean Power Plan, promulgated the ACE Rule, and revised the implementing regulations for all emission guidelines. EPA set the BSER for existing coal-fired power plants as heat rate efficiency improvements based on a range of "candidate technologies" that can be applied inside the fence line of an individual facility. The DC Circuit issued an order that granted motions by various petitioners, including industry groups and EPA, to dismiss the cases challenging the Clean Power Plan as moot due to EPA’s issuance of the ACE Rule. The ACE Rule was also challenged, and on January 19, 2021, the DC Circuit issued an opinion in American Lung Association and American Public Health Association v. EPA, et al., finding that EPA misinterpreted the CAA when it determined that the language of Section 111 unambiguously barred consideration of emissions reduction options that were not applied at the source. As a result, the court vacated the ACE Rule and remanded the record back to the EPA for further consideration consistent with the court's opinion. While the DC Circuit rejected the ACE Rule, it did not reinstate the Clean Power Plan. EPA filed a motion seeking a partial stay of the mandate as to the repeal of the Clean Power Plan, to ensure the court’s order will not render effective the now out-of-date Clean Power Plan. On February 22, 2021, the U.S. Court of Appeals for the DC Circuit granted EPA’s motion, indicating that it would withhold issuance of the mandate with respect to the repeal of the Clean Power Plan until EPA responds to the court’s remand in a new rulemaking action. On October 29, 2021, the US Supreme Court granted four petitions for writs of certiorari of the D.C. Circuit's decisions, and on June 30, 2022, the US Supreme Court held that the "generation shifting" approach in the Clean Power Plan exceeded the powers granted to EPA by Congress, though the Court did not address the related issue of whether Section 111 of the CAA only authorizes EPA to require measures that can be implemented entirely within the fenceline at an individual source. Of broader significance in administrative law, the Court expressly invoked the major question doctrine as a basis for rejecting EPA's statutory interpretation. The basic principle of the major question doctrine is that, if an agency seeks to decide an issue of "vast economic or political significance," its action must be supported by clear statutory authorization. In cases where there is no authority, courts need not defer to the agency's statutory interpretation. The decision sets legal precedent for future rulemakings by EPA and other federal regulatory agencies whereby the agencies' authority may be limited based upon similar reasoning. The litigation over the Carbon Pollution Standards remains held in abeyance but could be reactivated by the parties upon a determination by the court that reconsideration of the rule has concluded. On May 23, 2023, EPA published in the Federal Register proposed regulatory actions under CAA sections 111(b) and (d) to reduce GHGs from fossil-fueled EGUs. The proposed regulations cover: (1) New natural gas-based EGUs under section 111(b); (2) Existing large and frequently operated natural gas-based EGUs under section 111(d); and (3) Existing coal-based EGUs under section 111(d). Standards of performance for existing coal and existing and new natural gas EGUs will be based upon two technologies: carbon capture and storage (CCS), co-firing natural gas in lieu of coal, and the production and use of green hydrogen in lieu of natural gas. States will be required to develop SIPs to EPA that provide for the establishment, implementation and enforcement of these standards as they apply to existing sources. States may take into account remaining useful life and other factors when applying the standards. EPA is proposing that existing coal units must start complying with their gas co-firing or CCS based standards of performance on January 1, 2030, unless they commit to retirement before 2032 (or retirement by 2035 if they also commit to a 20% annual operating limit). Existing combustion turbine units must start complying with their hydrogen or CCS based standards of performance on January 1, 2032, or January 1, 2035, depending on their subcategory, which is based on the control technology selected. The package also includes a proposed repeal of the ACE rule and revisions to the standard for modified and reconstructed units, along with a notice of public rulemaking seeking data and information about setting standards for existing smaller natural gas-based generators. Comments on the rule are due to EPA by August 8, 2023. PNM is reviewing the proposed rule and its potential impacts on the company’s fossil generation resources. On January 27, 2021, President Biden signed an extensive Executive Order aimed at addressing climate change concerns domestically and internationally. The order is intended to build on the initial climate-related actions the Biden Administration took on January 20, 2021. It addresses a wide range of issues, including establishing climate change concerns as an essential element of U.S. foreign and security policy, identifying a process to determine the U.S. INDC under the Paris Agreement, and establishing a Special Presidential Envoy for Climate that will sit on the National Security Council. On April 22, 2021, at the Earth Day Summit, as part of the U.S.’s re-entry into the Paris Agreement, President Biden unveiled the goal to cut U.S. emissions by 50% - 52% from 2005 levels by 2030, nearly double the GHG emissions reduction target set by the Obama Administration. The 2030 goal joins President Biden’s other climate goals which include a carbon pollution-free power sector by 2035 and a net-zero emissions economy by no later than 2050. PNM’s review of the GHG emission reductions standards that may occur as a result of legislation or regulation under the Biden Administration and in response to the court's ruling on the ACE Rule is ongoing. PNM cannot predict the impact these standards may have on its operations or a range of the potential costs of compliance, if any. National Ambient Air Quality Standards (“NAAQS”) The CAA requires EPA to set NAAQS for pollutants reasonably anticipated to endanger public health or welfare. EPA has set NAAQS for certain pollutants, including NOx, SO 2 , ozone, and particulate matter. NOx Standard – In 2018, EPA published the final rule to retain the current primary health-based NOx standards of which NO 2 is the constituent of greatest concern and is the indicator for the primary NAAQS. EPA concluded that the current 1-hour and annual primary NO 2 standards are requisite to protect public health with an adequate margin of safety. The rule became effective on May 18, 2018. The State of New Mexico has attained the current NOx NAAQS standards. SO 2 Standard – In 2019, EPA announced its final decision to retain, without changes, the primary health-based NAAQS for SO 2 . Specifically, EPA will retain the current 1-hour standard for SO 2 , which is 75 parts per billion, based on the 3-year average of the 99th percentile of daily maximum 1-hour SO 2 concentrations. On March 26, 2021, EPA published in the Federal Register the initial air quality designations for all remaining areas not yet designated under the 2010 SO 2 Primary NAAQS. This is EPA’s fourth and final set of actions to designate areas of the U.S. for the 2010 SO 2 NAAQS. All areas of New Mexico have been designated attainment/unclassifiable through four rounds of designations by EPA. Ozone Standard – In 2015, EPA finalized the new ozone NAAQS and lowered both the primary and secondary 8-hour standard from 75 to 70 parts per billion. With ozone standards becoming more stringent, fossil-fueled generation units will come under increasing pressure to reduce emissions of NOx and volatile organic compounds since these are the pollutants that form ground-level ozone. On July 13, 2020, EPA proposed to retain the existing ozone NAAQS based on a review of the full body of currently available scientific evidence and exposure/risk information. EPA finalized its decision to retain the ozone NAAQS in a notice published on December 31, 2020, making it immediately effective. The Center for Biological Diversity filed a lawsuit on February 25, 2021, challenging the decision to retain the existing ozone standard. In response to lawsuits brought by states and environmental groups, on October 29, 2021, EPA filed a motion in the DC Circuit indicating it will reconsider the 2020 ozone NAAQS. In April 2022, EPA released an External Review Draft Policy Assessment for the reconsideration of the ozone NAAQS, in which EPA Staff recommended that EPA retain the existing primary and secondary ozone NAAQS. On March 15, 2023, EPA published an updated draft policy assessment and indicated the revised assessment is being developed for consideration by the EPA Administrator in reaching a decision on the reconsideration of the December 2020 decision to retain the existing ozone NAAQS. The EPA anticipates issuing a proposed decision in this reconsideration in Spring 2024. In 2015, EPA proposed a rule revising its Exceptional Events Rule, which outlines the requirements for excluding air quality data (including ozone data) from regulatory decisions if the data is affected by events outside an area’s control. The proposed rule is important in light of the more stringent ozone NAAQS final rule since western states like New Mexico and Arizona are subject to elevated background ozone transport from natural local sources, such as wildfires and stratospheric inversions, and transported via winds from distant sources in other regions or countries. EPA finalized the rule on October 3, 2016 and released related guidance in 2018 and 2019 to help implement its new exceptional events policy. During 2017 and 2018, EPA released rules establishing area designations for ozone. In those rules, San Juan County, New Mexico, where Four Corners is located, is designated as attainment/unclassifiable and only a small area in Doña Ana County, New Mexico is designated as marginal non-attainment. Although Afton Generating Station is located in Doña Ana County, it is not located within the small area designated as non-attainment for the 2015 ozone standard. The rule became effective May 8, 2018. NMED has responsibility for bringing the small area in Doña Ana County designated as marginal/non-attainment for ozone into compliance and will look at all sources of NOx and volatile organic compounds. NMED has submitted the required elements for the Sunland Park Ozone Non-attainment Area SIP. This includes a transportation conformity demonstration, a 2017 baseline emissions inventory and emissions statement, and an amendment to the state's Non-attainment Permitting rules at 20.2.79 New Mexico Administrative Code to conform to EPA's SIP Requirements Rule for 2015 Q3 NAAQS (i.e., "implementation rule"). The SIP elements had staggered deadlines and were done in three submissions: (1) the transportation conformity demonstration was completed by the El Paso Metropolitan Planning Organization on behalf of New Mexico in 2019, which is responsible for transportation planning in that area, and the submission received concurrence from EPA and the Federal Highway Administration; (2) the emissions inventory and statement SIP was submitted to EPA in September 2020; and (3) the Non-attainment New Source Review SIP was submitted to EPA on August 10, 2021. On October 15, 2021, EPA proposed to approve New Mexico's SIP to meet the emissions inventory and statement requirements of the CAA for the Sunland Park Ozone Non-Attainment Area. PNM does not believe there will be material impacts to its facilities because of NMED’s non-attainment designation of the small area within Doña Ana County. Until EPA approves attainment designations for the Navajo Nation and releases a proposal to implement the revised ozone NAAQS, PNM is unable to predict what impact the adoption of these standards may have on Four Corners. With respect to EPA's reconsideration of the 2020 decision to retain the 2015 ozone standards, it is expected to be completed by the end of 2023. PNM cannot predict the outcome of this matter. In 2019, EPA issued findings that several states, including New Mexico, had failed to submit interstate transport SIPs for the 2015 8-hour ozone NAAQS. In response, NMED published the Public Review Draft of the New Mexico 2013 NAAQS Good Neighbor SIP that demonstrates that there are no significant contributions from New Mexico to downwind problems in meeting the federal ozone standard. On March 15, 2023, EPA Administrator Regan signed a final action indicating that an updated analysis suggests New Mexico may be significantly contributing to one or more nonattainment or maintenance areas. The action, was published on June 5, 2023, does not make any final determinations with respect to the state but indicates EPA intends to address New Mexico’s interstate transport obligations in a subsequent action. PM Standard – On January 30, 2020, EPA published in the Federal Register a notice announcing the availability of a final Policy Assessment for the Review of the NAAQS for Particulate Matter (the "PA"). The 2020 final PA was prepared as part of the review of the primary and secondary PM NAAQS. In the 2020 final PA, EPA recommended lowering the primary annual PM 2.5 standard to between 8 µg/m3 and 10 µg/m3. However, on April 30, 2020, EPA published a proposed rule to retain the current standards for PM due to uncertainties in the data relied upon in the 2020 final PA and EPA published a notice of that final action on December 18, 2020, making it immediately effective. On January 14, 2021, several states and New York City filed a petition for review in the DC Circuit, challenging EPA’s final rule retaining the current primary and secondary PM NAAQS and a similar lawsuit was filed by the Center for Biological Diversity in the DC Circuit. On June 10, 2021, EPA announced that it will reconsider the previous administration’s December 2020 decision to retain the current primary and secondary PM NAAQS and on October 8, 2021, EPA announced the release of a new draft PA stating that available scientific evidence and technical information indicate that the current standards may not be adequate to protect public health and welfare, as required by the CAA. On June 1, 2022, EPA issued a new final PA that likewise indicates current standards may not be adequate and that available scientific evidence could support lowering the standards. On January 27, 2023, EPA published in the Federal Register a proposal to lower the annual fine PM standard to between 9-10 µg/m3 but retain the rest of its PM standards, including the current daily fine particulate matter standard, the daily coarse particulate matter standard, and the secondary PM standards. Although the proposal focuses on the range of 9-10 µg/m3, EPA requests comment on a range between 8-11 µg/m3, but that range does not include the current annual standard of 12 µg/m3, indicating EPA will not consider retaining the current standard. Comments on the proposal were due March 28, 2023. EPA’s current regulatory agenda indicates EPA plans to finalize the proposal in October 2023. PNM cannot predict the impacts of the outcome of future rulemaking. Cooling Water Intake Structures In 2014, EPA issued a rule establishing national standards for certain cooling water intake structures at existing power plants and other facilities under the Clean Water Act to protect fish and other aquatic organisms by minimizing impingement mortality (the capture of aquatic wildlife on intake structures or against screens) and entrainment mortality (the capture of fish or shellfish in water flow entering and passing through intake structures). To minimize impingement mortality, the rule provides operators of facilities, such as Four Corners, seven options for meeting Best Technology Available (“BTA”) standards for reducing impingement. The permitting authority must establish the BTA for entrainment on a site-specific basis, taking into consideration an array of factors, including endangered species and social costs and benefits. Affected sources must submit source water baseline characterization data to the permitting authority to assist in the determination. Compliance deadlines under the rule are tied to permit renewal and will be subject to a schedule of compliance established by the permitting authority. EPA has indicated that it is contemplating a December 31, 2023 compliance deadline. With respect to SJGS, no material changes will result given the shutdown of the plant in September of 2022. In 2018, several environmental groups sued EPA Region IX in the U.S. Court of Appeals for the Ninth Circuit Court over EPA’s failure to timely reissue the Four Corners NPDES permit. The petitioners asked the court to issue a writ of mandamus compelling EPA Region IX to take final action on the pending NPDES permit by a reasonable date. EPA subsequently reissued the NPDES permit. The permit did not contain conditions related to the cooling water intake structure rule, as EPA determined that the facility has achieved BTA for both impingement and entrainment by operating a closed-cycle recirculation system. Several environmental groups filed a petition for review with EPA’s Environmental Appeals Board ("EAB") concerning the reissued permit. The environmental groups alleged that the permit was reissued in contravention of several requirements under the Clean Water Act and did not contain required provisions concerning certain revised ELG, existing-source regulations governing cooling-water intake structures, and effluent limits for surface seepage and subsurface discharges from coal-ash disposal facilities. EPA withdrew the Four Corners NPDES permit in order to examine issues raised by the environmental groups. Withdrawal of the permit moots the appeal pending before the EAB. EAB thereafter dismissed the environmental groups’ appeal. EPA issued an updated NPDES permit in 2019. The permit was once again appealed to the EAB and was stayed before the effective date. Oral argument was heard on September

Regulatory and Rate Matters

Regulatory and Rate Matters	6 Months Ended
	Jun. 30, 2023
Regulated Operations [Abstract]
Regulatory and Rate Matters	Regulatory and Rate Matters The Company is involved in various regulatory matters, some of which contain contingencies that are subject to the same uncertainties as those described in Note 11. Additional information concerning regulatory and rate matters is contained in Note 17 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. PNMR Merger Regulatory Proceedings On October 20, 2020, PNMR, Avangrid, and Merger Sub entered into the Merger Agreement pursuant to which Merger Sub will merge with and into PNMR, with PNMR surviving the Merger as a wholly-owned subsidiary of Avangrid. Among other conditions, consummation of the Merger is subject to receipt of all required regulatory approvals. In 2021, five federal agencies and the PUCT completed their reviews and approved the Merger, with the NMPRC as the only regulatory agency yet to approve the Merger. The original application before the NMPRC was filed in November 2020. For additional information on the Merger regulatory proceedings, including supplemental regulatory filings that were required due to the Merger Agreement being amended in January 2022, April 2023, and June 2023, see Note 18. PNM New Mexico General Rate Case 2024 Rate Change On December 5, 2022, PNM filed an application with the NMPRC for a general increase in retail electric rates. The requested change primarily reflects investments in transmission and distribution infrastructure, largely offset by cost reductions resulting from PNM’s transition to lower-cost, clean generation resources. Key aspects of PNM’s request are: • Recovery on total rate base of $2.7 billion, based on a calendar year 2024 FTY. • An increase of $63.8 million in retail non-fuel revenues • ROE of 10.25% • Rate adjustments to resolve revenue deficiencies, including: ◦ Needed investments in transmission, distribution, and generation facilities for six years of operations, covering 2019 through 2024. In particular, PNM is focused on expanding and improving its aging infrastructure to provide the underlying infrastructure crucial to a successful energy transition and to support distribution generation. ◦ Cost reductions from closing SJGS and the expiration of 114 MW leased PVNGS capacity. ◦ Lower-cost replacements for SJGS and PVNGS using renewable energy purchases and battery storage systems. Some of these costs will be reflected in PNM’s requested base rates, while energy purchases will flow through PNM’s FPPAC. ◦ Updated depreciation rates, including new terminal dates, for natural gas plants to align with the Company’s 2040 carbon-free portfolio goal. ◦ Proposed customer-oriented services, such as fee-free payment options, and increased payment location options to address the needs of customers. ◦ Increasing operating costs reflecting six years of inflation, including the impacts of today’s current high inflation and the expenses that come with providing quality electric service to customers. Distribution maintenance increases also are necessary to enhance vegetation management programs to protect lines and support wildfire mitigation efforts. PNM has endeavored to keep operating costs below inflationary levels. ◦ Increased energy sales and customer loads since PNM’s last filing help cover the increased cost of doing business as PNM continues the energy transition. ◦ Overall cost of capital based on PNM’s actual regulatory capital structure of 52% equity / 48% debt, reflecting the increase in the ROE that shareholders require to fund new investments in PNM’s system, which is partially offset by lower cost of debt. • Proposed ratemaking treatment of PVNGS Leased Interest and testimony supporting the prudence of PNM’s decisions to renew the five leases and repurchase 64.1 MW of PVNGS Unit 2 capacity regarding PVNGS; see PVNGS Lease Abandonment Application below. • Proposed return of the unamortized unprotected portion of excess deferred federal income taxes to customers over a five-year period, beginning when rates from the case go into effect. • Time-of-Day pilot proposal with the objective of incentivizing customers, through price signals, to use energy during the day when renewable generation is abundant. The NMPRC has suspended PNM’s advice notice in the case for the statutory suspension period, until January 4, 2024 and the hearing examiners set a procedural schedule with a hearing to begin September 5, 2023. On March 10, 2023, the NMAG and WRA filed a motion for declaratory order with the NMPRC requesting that the NMPRC find that PNM no longer has legal authority to issue ETA bonds because the issuance of the bonds so far from the time of abandonment was not authorized by the Financing Order. On June 16, 2023, the hearing examiners filed an order denying the declaratory order, finding that the motion was misfiled and that a request for declaratory orders must be initiated by petitioning the NMPRC directly and not through an established proceeding. On March 27, 2023, PNM filed a motion requesting the NMPRC dismiss or remove issues related to Four Corners regarding prudence for lack of jurisdiction because the matter is on appeal at the NM Supreme Court. On April 6, 2023, PNM filed a motion requesting the NMPRC dismiss or remove issues related to the SJGS show cause order for lack of jurisdiction because the matter is on appeal at the NM Supreme Court. On June 16, 2023, the hearing examiners filed orders denying both of PNM's motions requesting dismissal and removal for lack of jurisdiction. On January 3, 2023, a joint motion and brief for accounting order was filed with the NMPRC. NM AREA, Staff, WRA, Bernalillo County, NEE, and CCAE (the “Joint Movants”) jointly filed the motion which asked that the NMPRC issue an accounting order for the purpose of requiring PNM to create a regulatory liability to track the costs associated with the retirement of SJGS which are currently embedded in base rates. The Joint Movants requested that the NMPRC order PNM to track all costs associated with the running and management of SJGS totaling $98.3 million annually and requested that the accounting order require PNM to create a regulatory liability to track the SJGS costs from the time Unit 1 and Unit 4 were abandoned, July 1, 2022, and October 1, 2022, respectively, until the date new rates are put into effect, and for any other relief the NMPRC deems is just and reasonable. On February 3, 2023, the hearing examiners issued an order requiring PNM to create a pure accounting order regulatory liability that tracks cost of SJGS which are currently embedded in base rates. On February 6, 2023, PNM filed a motion to permit interlocutory appeal of the hearing examiners order requiring PNM to create a pure accounting order regulatory liability. On February 10, 2023, the hearing examiners issued an order denying PNM’s interlocutory appeal and clarified that the accounting order only required PNM to track the costs of SJGS. On February 14, 2023, NM AREA, Staff, WRA, ABCWUA, and CCAE filed a joint motion for clarification of the hearing examiners accounting order. For additional discussion on the retirement of SJGS and the associated accounting impacts see SJGS Abandonment Application discussion below. PNM is unable to predict the outcome of this matter. Renewable Energy Portfolio Standard As discussed in Note 11, the ETA amends the REA including removal of diversity requirements and certain customer caps and exemptions relating to the application of the RPS under the REA. The REA provides for streamlined proceedings for approval of utilities’ renewable energy procurement plans, assures that utilities recover costs incurred consistent with approved procurement plans, and requires the NMPRC to establish a Reasonable Cost Threshold ("RCT") for the procurement of renewable resources to prevent excessive costs being added to rates. The ETA sets a RCT of $60 per MWh, adjusted for inflation, using an average annual levelized resource cost basis. PNM makes renewable procurements consistent with the NMPRC approved plans and recovers certain renewable procurement costs from customers through the renewable energy rider billed on a KWh basis. Included in PNM’s approved procurement plans are the following renewable energy resources: • 158 MW of PNM-owned solar-PV facilities • A PPA through 2044 for the output of New Mexico Wind, having a current aggregate capacity of 200 MW, and a PPA through 2035 for the output of Red Mesa Wind, having an aggregate capacity of 102 MW • A PPA through 2040 for 140 MW of output from La Joya Wind II • A PPA through 2042 for the output of the Lightning Dock Geothermal facility with a current capacity of 11 MW • Solar distributed generation, aggregating 261.6 MW at June 30, 2023, owned by customers or third parties from whom PNM purchases any net excess output and RECs The NMPRC has authorized PNM to recover certain renewable procurement costs through a rate rider billed on a per KWh basis. In its 2023 renewable energy procurement plan, which became effective on January 1, 2023, PNM proposed to collect $61.0 million for the year. PNM recorded revenues from the rider of $15.4 million and $34.0 million in the three and six months ended June 30, 2023 and $17.4 million and $31.8 million in the three and six months ended June 30, 2022. On June 1, 2023, PNM filed its renewable energy procurement plan for 2024 which proposes to collect $59.0 million for the year. PNM is not proposing any new resource procurements, and the plan states that existing projects are anticipated to exceed the applicable RPS standards of 2024. On June 30, 2023, the hearing examiners issued a procedural order in this proceeding with a hearing scheduled for September 1, 2023. Under the renewable rider, if PNM’s earned rate of return on jurisdictional equity in a calendar year, adjusted for items not representative of normal operations, exceeds the NMPRC-approved rate by 0.5%, PNM is required to refund the excess to customers during May through December of the following year. On March 31, 2023, PNM filed an affidavit that provides documentation that PNM’s ROE for 2022 was 10.173%, exceeding a 10.075% return (9.575% allowed ROE plus 0.5%). PNM began refunding the excess to customers effective May 1, 2023. Energy Efficiency and Load Management Program Costs and Incentives/Disincentives The New Mexico Efficient Use of Energy Act (“EUEA”) requires public utilities to achieve specified levels of energy savings and to obtain NMPRC approval to implement energy efficiency and load management programs. The EUEA requires the NMPRC to remove utility disincentives to implementing energy efficiency and load management programs and to provide incentives for such programs. The NMPRC has adopted a rule to implement this act. PNM’s costs to implement approved programs and incentives are recovered through a rate rider. During the 2019 New Mexico legislative session, the EUEA was amended to, among other things, include a decoupling mechanism for disincentives, preclude a reduction to a utility’s ROE based on approval of disincentive or incentive mechanisms, establish energy savings targets for the period 2021 through 2025, and require that annual program funding be 3% to 5% of an electric utility's annual customer bills excluding gross receipt taxes, franchise and right-of-way access fees, provided that a customer's annual cost not exceed seventy-five thousand dollars. On April 15, 2020, PNM filed an application for energy efficiency and load management programs to be offered in 2021, 2022, and 2023. The proposed program portfolio consists of twelve programs with a total annual budget of $31.4 million in 2021, $31.0 million in 2022, and $29.6 million in 2023. The application also sought approval of an annual base incentive of 7.1% of the portfolio budget if PNM were to achieve energy savings of at least 80 GWh in a year. The proposed incentive would increase if PNM is able to achieve savings greater than 94 GWh in a year. On October 28, 2020, the NMPRC issued an order approving PNM's proposed efficiency and load management program. On April 15, 2022, PNM filed an advice notice which reconciles the actual 2021 energy efficiency profit incentive collections with the profit incentive authorized by the NMPRC resulting in an additional $0.3 million incentive to be collected through the energy efficiency rider during the remainder of 2022. The additional incentive was authorized for 2021 because annual energy savings for the year exceeded 94 GWh. PNM began collecting the incentive effective May 31, 2022. On April 17, 2023, PNM filed an application for energy efficiency and load management programs to be offered in 2024, 2025, and 2026 (the "2024 Plan"). The 2024 Plan proposes to continue ten existing energy efficiency programs with modification and a total annual budget of $34.5 million in 2024, $35.4 million in 2025, and $36.5 million in 2026. The application also sought approval of an annual base incentive of 7.1% of the portfolio budget and a sliding scale that provides additional incentive for additional energy saved as a percentage of program cost, up to the maximum allowed by the energy efficiency rule which for PNM is 10.73%. On April 26, 2023, the NMPRC appointed a hearing examiner. On May 19, 2023, the hearing examiner issued an order setting out a procedural schedule with a hearing to begin October 18, 2023. PNM is unable to predict the outcome of this matter. 2020 Decoupling Petition As discussed above, the legislature amended the EUEA to, among other things, include a decoupling mechanism for disincentives. On May 28, 2020, PNM filed a petition for approval of a rate adjustment mechanism that would decouple the rates of its residential and small power rate classes. Decoupling is a rate design principle that severs the link between the recovery of fixed costs of the utility through volumetric charges. On July 13, 2020, NEE, ABCWUA, the City of Albuquerque, and Bernalillo County filed motions to dismiss the petition on the grounds that approving PNM’s proposed rate adjustment mechanism outside of a general rate case would result in retroactive ratemaking and piecemeal ratemaking. The motions to dismiss also alleged that PNM’s proposed rate adjustment mechanism is inconsistent with the EUEA. On October 2, 2020, PNM requested an order to vacate the public hearing, scheduled to begin October 13, 2020, and staying the proceeding until the NMPRC decides whether to entertain a petition to issue a declaratory order resolving the issues raised in the motions to dismiss. On October 7, 2020, the hearing examiner approved PNM's request to stay the proceeding and vacate the public hearing and required PNM to file a petition for declaratory order by October 30, 2020. On October 30, 2020, PNM filed a petition for declaratory order asking the NMPRC to issue an order finding that full revenue decoupling is authorized by the EUEA. On November 4, 2020, ABCWUA and Bernalillo County jointly filed a competing petition asking the NMPRC to issue a declaratory order on the EUEA’s requirements related to disincentives. On November 24, 2020, the NMAG requested that the NMPRC deny both petitions for declaratory orders and instead address disincentives under the EUEA in a rulemaking. On March 17, 2021, the NMPRC issued an order granting the petitions for declaratory order, commencing a declaratory order proceeding to address the petitions, denying the NMAG’s request to initiate a rulemaking, and appointing a hearing examiner to preside over the declaratory order proceeding. On January 14, 2022, the hearing examiner issued a recommended decision recommending the NMPRC find that the EUEA does not mandate the NMPRC to authorize or approve a full decoupling mechanism, defining full decoupling as limited to energy efficiency and load management measures and programs. The recommended decision also states that a utility may request approval of a rate adjustment mechanism to remove regulatory disincentives to energy efficiency and load management measures and programs through a stand-alone petition, as part of the utility’s triennial energy efficiency application or a general rate case and that PNM is not otherwise precluded from petitioning for a rate adjustment mechanism prior to its next general rate case. Finally, the recommended decision stated that the EUEA does not permit the NMPRC to reduce a utility’s ROE based on approval of a disincentive removal mechanism founded on removing regulatory disincentives to energy efficiency and load management measures and programs. The recommended decision does not specifically prohibit a downward adjustment to a utility’s capital structure, based on approval of a disincentive removal mechanism. On April 27, 2022, the NMPRC issued an order adopting the recommended decision in its entirety. On May 24, 2022, PNM filed a notice of appeal with the NM Supreme Court. On June 23, 2022, PNM and other parties filed Statement of Issues with the NM Supreme Court. On September 6, 2022, PNM and other parties filed Briefs in Chief with the NM Supreme Court. On October 21, 2022, NEE filed Answer Briefs with the NM Supreme Court. The NM Supreme Court has scheduled oral arguments to be held on November 13, 2023. PNM cannot predict the outcome of this matter. FPPAC Continuation Application NMPRC rules require public utilities to file an application to continue using their FPPAC every four years. On June 17, 2022, PNM filed the required continuation application and requested that its FPPAC be continued without modification. On July 21, 2022, the NMPRC issued an order requiring Staff to file a response to PNM's application and set certain procedural dates. On August 4, 2022, Staff filed a response to PNM's application stating that while PNM’s filing demonstrates that PNM’s FPPAC meets the requirements of NMPRC rules, it would support a hearing if the NMPRC desires one. On January 27, 2023, the hearing examiner issued a recommended decision recommending that the FPPAC Continuation Application be consolidated into the 2024 Rate Change and on March 1, 2023, the NMPRC issued an order adopting the hearing examiner's recommended decision. The FPPAC Continuation Application is now consolidated into the 2024 Rate Change and the procedural schedule for this matter was vacated. Integrated Resource Plans NMPRC rules require that investor-owned utilities file an IRP every three years. The IRP is required to cover a 20-year planning period and contain an action plan covering the first four years of that period. On September 14, 2022, the NMPRC adopted revisions to the IRP Rule. The new rule revamps and modernizes the planning process to accommodate increased stakeholder involvement. The IRP Rule establishes a collaborative facilitated process for a utility and stakeholders to agree on a statement of need for potential new or additional resources, as well as an action plan to guide procurement or development of resources to meet the stated need. A most-cost-effective portfolio of resources shall be derived from the statement of need analysis. The statement of need and action plan must be accepted before the utility begins the resource solicitation process pursuant to the IRP Rule. Following acceptance of the statement of need and action plan, a utility will provide the NMPRC and intervenors drafts of the request for proposals (“RFP”) and a timeline for issuing, receiving, evaluating, and ranking bids. The NMPRC will then appoint an Independent Monitor (“IM”) to oversee the RFP process, which allows for parties and the IM to comment on the RFP consistency with the IRP, after which the utility issues the RFP. Within 75 days of receiving bids the utility shall provide the IM with results including pricing and non-price evaluation criteria, ranking of bids, chosen portfolio and alternatives that also meet the needs; the IM then rules on the fairness of the RFP execution. Acceptance of the statement of need and action plan will not constitute a finding of prudency or pre-approval of costs associated with the additional resources. Following the RFP and IM processes, the utility may apply approvals, and any costs incurred to implement the action plan will be considered in a general rate case and/or resource acquisition proceeding. On October 14, 2022, PNM and other investor-owned utilities filed motions for rehearing with the NMPRC. On October 26, 2022, the NMPRC issued an order partially granting and partially denying certain aspects of PNM's and the other investor-owned utilities' motions for rehearing. On November 2, 2022, the NMPRC adopted an amended IRP Rule. On December 2, 2022, PNM filed an appeal with the NM Supreme Court and on January 3, 2023, PNM and two other investor-owned utilities filed statements of issues with the NM Supreme Court. Among other things, the investor-owned utilities question whether the IRP Rule exceeds the NMPRC authority by imposing unauthorized requirements on utilities and extending NMPRC jurisdictional through over-broad interpretation of the statutes and state that the IRP Rule is contrary to law in its provisions for NMPRC regulation of a utility’s resource procurement decision-making. On June 5, 2023, PNM and the other two investor-owned utilities filed their Joint Brief in Chief and request for oral arguments at the NM Supreme Court. PNM cannot predict the outcome of this matter. 2023 IRP On March 1, 2023, the NMPRC issued an order granting PNM’s Motion for Extension of time to file its 2023 IRP until December 15, 2023, and the deadline for commencing the facilitated stakeholder process, which commenced on June 15, 2023. Abandonment Applications made under the ETA As discussed in Note 11, the ETA provides for a transition from fossil-fueled generating resources to renewable and carbon-free resources by allowing utilities to issue energy transition bonds related to the retirement of certain coal-fired generating facilities, to qualified investors. SJGS Abandonment Application In 2019, PNM filed a Consolidated Application for the Abandonment and Replacement of SJGS and Related Securitized Financing Pursuant to the ETA (the “SJGS Abandonment Application”). The SJGS Abandonment Application sought NMPRC approval to retire PNM’s share of SJGS after the coal supply and participation agreements end in 2022, for approval of replacement resources, and for the issuance of approximately $361 million of energy transition bonds (the “Securitized Bonds”). PNM’s request for the issuance of Securitized Bonds included approximately $283 million of forecasted undepreciated investments in SJGS at June 30, 2022, an estimated $28.6 million for plant decommissioning and coal mine reclamation costs, approximately $9.6 million in upfront financing costs, and approximately $20.0 million for job training and severance costs for affected employees. Proceeds from the Securitized Bonds would also be used to fund approximately $19.8 million for economic development in the Four Corners area. The NMPRC issued an order requiring the SJGS Abandonment Application be considered in two proceedings: one addressing SJGS abandonment and related financing, and the other addressing replacement resources. In 2020, the NMPRC approved PNM’s proposed abandonment of SJGS, subject to approval of replacement resources, and approved PNM’s proposed financing order to issue Securitized Bonds up to $361 million and establish a rate rider to collect non-bypassable customer charges for repayment of the bonds, subject to bi-annual adjustments (the "Energy Transition Charge"). The NMPRC authorized an interim rate rider adjustment upon the start date of the Energy Transition Charge to provide immediate credits to customers for the full value of PNM’s revenue requirement related to SJGS until those reductions are reflected in base rates. The NMPRC also granted PNM authority to establish regulatory assets to recover costs that PNM will pay prior to the issuance of the Securitized Bonds, including costs associated with the bond issuances as well as for severances, job training, economic development, and workforce training. In addition, the NMPRC authorized PNM to record regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA to preserve its ability to recover the costs in a future general rate case, but the authority only extends to the deferral of the costs and is not approval of any ratemaking treatment. Later that year, the NMPRC issued an order approving replacement resource selection criteria identified in the ETA. On February 28, 2022, WRA and CCAE filed a joint motion for order to show cause and enforce financing order and supporting brief, which requested that the NMPRC order PNM to show cause why its rates should not be reduced at the time SJGS was abandoned. The NMPRC issued an order appointing hearing examiners to conduct a hearing and to issue a recommended decision to address the issues raised by the motion. On June 17, 2022, the hearing examiners issued a recommended decision requesting the NMPRC issue an order that would require PNM to: • Revise its rates to remove all of the costs of SJGS Unit 1 by issuing rate credits of $21.1 million on an annual basis, to customers by July 1, 2022 • Revise its rates again, to remove all costs of SJGS Unit 1, Unit 4, and common facilities by increasing the rate credits to $98.3 million on an annual basis, by October 1, 2022 • Transfer payments due and owing to the Indian Affairs Fund, Economic Development Assistance Fund, and the Displaced Workers Assistance Fund within 30 days of the abandonment of SJGS Unit 1 • Include (in its next rate case application) an explanation and defense of the prudence in the timing of the issuance of Securitized Bonds beyond the abandonment dates and what actions were taken to protect customers from interest rate increases occurring as well as the continued marketability of the Securitized Bonds issued On June 29, 2022, the NMPRC issued its final order adopting and approving the recommended decision in its entirety with certain additions. The additions to the final order include requirements for PNM file a report, no later than October 15, 2022, that contains a record of all of its costs incurred in the show cause proceeding so that the prudence of those costs will be known and be subject to review in PNM's future rate case and that the prudency review shall include a compliance filing to enable a review of the prudence of PNM's decision to delay bond issuance beyond the dates of the SJGS abandonment. On June 29, 2022, PNM filed an Emergency Motion and Supporting Brief for Stay with the NMPRC, which was denied. On June 30, 2022, PNM filed a Notice of Appeal and an Emergency Motion for Partial Interim Stay of the NMPRC's Final Order with the NM Supreme Court. Subsequently, on July 25, 2022, PNM filed another emergency motion seeking an immediate and ongoing stay from the NM Supreme Court for the pendency of the appeal. In the interim, PNM began issuing rate credits effective July 31, 2022, and PNM made payments totaling $19.8 million to the Indian Affairs Fund, Economic Development Assistance Fund, and the Displaced Workers Assistance Fund. On September 2, 2022, the NM Supreme Court issued an order granting PNM's July 25, 2022 motion for partial stay and as a result PNM suspended issuing rate credits. On October 14, 2022, PNM made its required compliance filing under the NMPRC's June 29, 2022 final order. On November 1, 2022, the NM Supreme Court issued an order continuing the partial stay of the rate credits during the pendency of the appeal. On November 15, 2022, PNM filed a supplemental compliance filing to its October 14, 2022 compliance filing. On May 22, 2023, PNM filed its Brief in Chief with the NM Supreme Court requesting the final order be vacated, and remanded back to the NMPRC, to properly apply the ETA and financing order to issue Securitized Bonds. The NMPRC and other parties filed Answer Briefs on July 27, 2023. PNM also requested that the NM Supreme Court allow oral arguments. PNM cannot predict the outcome of this matter. As required under GAAP, PNM evaluated the consequences of the NMPRC's June 29, 2022 order and the related NM Supreme Court appeal and order granting the stay, as well as the subsequent motions and the hearing examiners' accounting order filed in the 2024 Rate Change. Specifically, PNM assessed the likelihood PNM would be required to establish a regulatory liability for the benefit of the rate credits and the associated carrying charge during the pendency of the stay. These evaluations indicate that it is reasonably possible that PNM would be successful on the issues it was appealing and defending at the NMPRC, and therefore, no loss or regulatory liability has been recorded as of June 30, 2023. The amount of any such loss to be recorded would depend on the ultimate outcome of the appeal, however based on amounts currently included in base rates, discussed above, PNM estimates the potential loss as of June 30, 2023 to be $77.8 million. Additional information concerning the SJGS Abandonment Application is contained in Note 17 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. Four Corners Abandonment Application On November 1, 2020, PNM entered into the Four Corners Purchase and Sale Agreement with NTEC, pursuant to which PNM agreed to sell its 13% ownership interest (other than certain transmission assets) in Four Corners to NTEC. The sale is contingent upon NMPRC approval. In connection with the sale, PNM would make payments of $75.0 million to NTEC for relief from its obligations under the coal supply agreement for Four Corners after December 31, 2024. Pursuant to the Four Corners Purchase and Sale Agreement, PNM would retain its current plant decommissioning and coal mine reclamation obligations. PNM made an initial payment to NTEC of $15.0 million in November 2020, subject to refund with interest upon termination of the Four Corners Purchase and Sale Agreement prior to closing. Under the terms of the Four Corners Purchase and Sale Agreement, upon receipt of the NMPRC approval, PNM is expected to make a final payment of $60.0 million. On January 8, 2021, PNM filed the Four Corners Abandonment Application, which sought NMPRC approval to exit PNM’s share of Four Corners as of December 31, 2024, and issuance of approximately $300 million of Securitized Bonds as provided by the ETA. PNM’s request for the issuance of Securitized Bonds included approximately $272 million of forecasted undepreciated investments in Four Corners at December 31, 2024, an estimated $4.6 million for plant decommissioning costs, an estimated $7.3 million in upfront financing costs, and an estimated $16.5 million for economic development in the Four Corners area. On March 15, 2021, PNM filed an amended application and supplemental testimony for the approval of the abandonment and transfer of Four Corners and issuance of a financing order pursuant to the ETA and a motion to withdraw the January 8, 2021 Four Corners Application. The amended application and supplemental testimony provided additional information to support PNM's request to abandon its interest in Four Corners and transfer that interest to NTEC, and also provided additional detail explaining how the proposed sale and abandonment provides a net public benefit. On November 12, 2021, the hearing examiner issued a recommended decision recommending approval of the Four Corners Abandonment Application and the corresponding request for issuance of securitized financing. On December 15, 2021, the NMPRC issued a final order rejecting the hearing examiner's recommended decision and denying approval of the Four Corners Abandonment Application and the corresponding request for issuance of securitized financing. In its order, the NMPRC concluded that PNM needed to conduct a review of the actual replacement resource portfolio and determined that the record was insufficient to determine the prudence of PNM’s investments in Four Corners. On December 22, 2021, PNM filed a Notice of Appeal with the NM Supreme Court of the NMPRC decision to deny the application. On January 21, 2022, PNM filed its Statement of Issues outlining the arguments for appeal asserting, among other things, that the NMPRC misinterpreted and improperly applied the ETA in concluding that the NMPRC needed to review the actual replacement resource portfolio before authorizing abandonment and that the NMPRC improperly deferred the issue of prudence with respect to certain of PNM’s investments in Four Corners, where

Lease Commitments

Lease Commitments	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Lease Commitments	Lease Commitments The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS Unit 2 and certain rights-of-way agreements are classified as leases. All of the Company's leases with terms in excess of one year are recorded on the balance sheet by recording a present value lease liability and a corresponding right-of-use asset. Operating lease expense is recognized within operating expenses according to the use of the asset on a straight-line basis. Financing lease costs, which are comprised primarily of fleet and office equipment leases commencing after January 1, 2019, are recognized by amortizing the right-of-use asset on a straight-line basis and by recording interest expense on the lease liability. Financing lease right-of-use assets amortization is reflected in depreciation and amortization and interest on financing lease liabilities is reflected as interest charges on the Company’s Condensed Consolidated Statements of Earnings. See additional discussion of the Company's leasing activities in Note 8 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. PVNGS In 1985 and 1986, PNM entered into leases for its interest in PVNGS Unit 1 and 2. The leases initially were scheduled to expire in January 2015 for four Unit 1 leases and January 2016 for four Unit 2 leases. Following procedures set forth in the PVNGS leases, PNM notified four of the lessors under the Unit 1 leases and one lessor under the Unit 2 lease that it would elect to renew those leases on the expiration date of the original leases. The four Unit 1 leases expired in January 2023 and the one Unit 2 lease expires in January 2024. The annual lease payments during the renewal periods aggregate $1.6 million on the remaining PVNGS Unit 2 lease. The terms of each of the extended leases did not provide for additional renewal options beyond their scheduled expiration dates. PNM had the option to purchase the assets underlying each of the extended leases at their fair market value or to return the lease interests to the lessors on the expiration dates. On June 11, 2020, PNM provided notice to the lessors and the NMPRC of its intent to return the assets underlying both the PVNGS Unit 1 and Unit 2 leases upon their expiration in January 2023 and 2024. Although PNM elected to return the assets underlying the extended leases, PNM retains certain obligations related to PVNGS, including costs to decommission the facility. PNM depreciates its capital improvements related to the extended leases using NMPRC approved rates through the end of the NRC license period for each unit, which expire in June 2045 for Unit 1 and in June 2046 for Unit 2. Upon expiration of the leases PNM will cease depreciation and, as authorized by the NMPRC, create a regulatory asset for the associated remaining undepreciated investments. On April 5, 2021, PNM and SRP entered into an Asset Purchase and Sale Agreement, pursuant to which PNM agreed to sell to SRP certain PNM-owned assets and nuclear fuel necessary to the ongoing operation and maintenance of leased capacity in PVNGS Unit 1 and Unit 2, which SRP has agreed to acquire from the lessors upon termination of the existing leases. The proposed transaction between PNM and SRP received all necessary approvals, including NRC approval for the transfer of the associated possessory licenses to SRP at the end of the term of each of the respective leases. In January 2023, the Unit 1 leases expired, and PNM closed on the associated sale to SRP, receiving payments of $33.7 million, of which $28.4 million was recorded as a reduction to Net utility plant on the Condensed Consolidated Balance Sheets and is presented as cash flows from investing activities on the Condensed Consolidated Statement of Cash Flows. In addition, $5.3 million was recorded as a reduction to Materials, supplies, and fuel stock on the Condensed Consolidated Balance Sheets and is presented as cash flows from operating activities on the Condensed Consolidated Statement of Cash Flows. See Note 12 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which included PNM's request to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the PVNGS lease arrangements upon the occurrence of certain events that PNM does not consider reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to PVNGS or the occurrence of specified nuclear events), PNM would be required to make specified payments to the lessors and take title to the leased interests. If such an event had occurred as of June 30, 2023, amounts due to the lessors under the circumstances described above would have been up to $13.8 million, payable on July 15, 2023 in addition to the scheduled lease payments due on that date. Land Easements and Rights-of-Ways Many of PNM’s electric transmission and distribution facilities are located on lands that require the grant of rights-of-way from governmental entities, Native American tribes, or private parties. PNM has completed several renewals of rights-of-way, the largest of which is a renewal with the Navajo Nation. PNM is obligated to pay the Navajo Nation annual payments of $6.0 million, subject to adjustment each year based on the Consumer Price Index, through 2029. PNM’s April 2023 payment for the amount due under the Navajo Nation right-of-way lease was $8.3 million, which included amounts due under the Consumer Price Index adjustment. Changes in the Consumer Price Index subsequent to January 1, 2019 are considered variable lease payments. PNM has other prepaid rights-of-way agreements that are not accounted for as leases or recognized as a component of plant in service. PNM reflects the unamortized balance of these prepayments in other deferred charges on the Condensed Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Condensed Consolidated Statement of Earnings over their term. As of June 30, 2023 and December 31, 2022, the unamortized balance of these rights-of-ways was $57.5 million and $54.6 million. PNM recognized amortization expense associated with these agreements of $0.9 million and $1.8 million in the three and six months ended June 30, 2023 and $0.9 million and $2.0 million in the three and six months ended June 30, 2022. Fleet Vehicles and Equipment Fleet vehicle and equipment leases commencing on or after January 1, 2019 are classified as financing leases. Fleet vehicle and equipment leases existing as of December 31, 2018 are classified as operating leases. The Company’s fleet vehicle and equipment lease agreements include non-lease components for insignificant administrative and other costs that are billed over the life of the agreement. At June 30, 2023, residual value guarantees on fleet vehicle and equipment leases are $0.9 million, $1.1 million, and $2.0 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 47,648 $ 2,456 $ 50,104 $ 52,556 $ 3,426 $ 55,982 Current portion of operating lease liabilities 7,795 1,030 8,825 17,239 1,543 18,781 Long-term portion of operating lease liabilities 33,422 1,237 34,658 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 Condensed Consolidated Balance Sheets is presented below: June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 24,105 $ 21,855 $ 46,290 $ 19,324 $ 20,084 $ 39,738 Accumulated depreciation (9,857) (10,364) (20,518) (7,726) (8,202) (16,189) Non-utility property, net 14,248 11,491 25,772 11,598 11,882 23,549 Other current liabilities $ 4,355 $ 4,184 $ 8,565 $ 3,441 $ 3,867 $ 7,363 Other deferred credits 9,859 7,323 17,190 8,079 8,028 16,123 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of June 30, 2023 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 7.75 1.99 7.43 Financing leases 3.99 3.09 3.58 Weighted average discount rate: Operating leases 4.07 % 4.13 % 4.08 % Financing leases 4.24 % 3.90 % 4.08 % Information for the components of lease expense is as follows: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 2,468 $ 401 $ 2,869 $ 6,376 $ 830 $ 7,206 Amounts capitalized (103) (331) (434) (263) (684) (947) Total operating lease expense 2,365 70 2,435 6,113 146 6,259 Financing lease cost: Amortization of right-of-use assets 1,123 1,098 2,235 2,132 2,162 4,329 Interest on lease liabilities 140 112 252 262 223 486 Amounts capitalized (778) (699) (1,477) (1,469) (1,699) (3,167) Total financing lease expense 485 511 1,010 925 686 1,648 Variable lease expense 360 — 360 622 — 622 Short-term lease expense 145 1 149 292 1 299 Total lease expense for the period $ 3,355 $ 582 $ 3,954 $ 7,952 $ 833 $ 8,828 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,665 $ 495 $ 7,181 $ 13,349 $ 1,023 $ 14,418 Amounts capitalized (173) (457) (630) (358) (926) (1,283) Total operating lease expense 6,492 38 6,551 12,991 97 13,135 Financing lease cost: Amortization of right-of-use assets 769 799 1,583 1,501 1,555 3,095 Interest on lease liabilities 79 80 160 147 153 301 Amounts capitalized (563) (764) (1,327) (1,060) (1,480) (2,540) Total financing lease expense 285 115 416 588 228 856 Variable lease expense 262 — 262 367 — 367 Short-term lease expense (1) 1,137 3 1,147 2,269 3 2,317 Total lease expense for the period $ 8,176 $ 156 $ 8,376 $ 16,215 $ 328 $ 16,675 (1) Includes expense of $1.1 million and $2.3 million for the three and six months ended June 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $1.1 million and $2.3 million for the three and six months ended June 30, 2022. Supplemental cash flow information related to the Company’s leases is as follows: Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,208 $ 155 $ 16,363 $ 16,260 $ 75 $ 16,381 Operating cash flows from financing leases 88 38 127 45 21 68 Finance cash flows from financing leases 792 646 1,474 528 236 809 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 6 $ 100 $ 1,079 $ — $ 1,079 Financing leases 4,793 1,783 6,576 2,151 1,625 3,776 Capitalized lease costs are reflected as investing activities on the Company’s Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Future expected lease payments are shown below: As of June 30, 2023 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2023 $ 2,539 $ 1,148 $ 2,343 $ 602 $ 4,900 $ 1,750 2024 4,204 8,149 4,068 945 8,286 9,094 2025 3,232 7,428 3,070 770 6,304 8,198 2026 2,735 7,019 1,912 76 4,647 7,094 2027 1,577 7,023 748 — 2,325 7,023 Later years 1,229 17,510 81 — 1,310 17,510 Total minimum lease payments 15,516 48,277 12,222 2,393 27,772 50,669 Less: Imputed interest 1,302 7,060 715 126 2,017 7,186 Lease liabilities as of June 30, 2023 $ 14,214 $ 41,217 $ 11,507 $ 2,267 $ 25,755 $ 43,483 The above table includes $13.1 million, $12.0 million, and $25.1 million for PNM, TNMP, and PNMR at June 30, 2023 for expected future payments on fleet vehicle and equipment leases that could be avoided if the leased assets were returned and the lessor is able to recover estimated market value for the equipment from third parties. At June 30, 2023, the Company has various lease arrangements that have been executed but have not yet commenced, which are primarily related to battery storage agreements. The Company currently expects lease commencement dates in 2023 and 2024, with lease terms expiring in 2044, and will recognize lease assets and liabilities upon lease commencement. The expected total fixed consideration to be paid for these arrangements, which includes non-lease payments, is approximately $1.3 billion over the 20-year terms of the agreements.
Lease Commitments	Lease Commitments The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS Unit 2 and certain rights-of-way agreements are classified as leases. All of the Company's leases with terms in excess of one year are recorded on the balance sheet by recording a present value lease liability and a corresponding right-of-use asset. Operating lease expense is recognized within operating expenses according to the use of the asset on a straight-line basis. Financing lease costs, which are comprised primarily of fleet and office equipment leases commencing after January 1, 2019, are recognized by amortizing the right-of-use asset on a straight-line basis and by recording interest expense on the lease liability. Financing lease right-of-use assets amortization is reflected in depreciation and amortization and interest on financing lease liabilities is reflected as interest charges on the Company’s Condensed Consolidated Statements of Earnings. See additional discussion of the Company's leasing activities in Note 8 of the Notes to Consolidated Financial Statements in the 2022 Annual Reports on Form 10-K. PVNGS In 1985 and 1986, PNM entered into leases for its interest in PVNGS Unit 1 and 2. The leases initially were scheduled to expire in January 2015 for four Unit 1 leases and January 2016 for four Unit 2 leases. Following procedures set forth in the PVNGS leases, PNM notified four of the lessors under the Unit 1 leases and one lessor under the Unit 2 lease that it would elect to renew those leases on the expiration date of the original leases. The four Unit 1 leases expired in January 2023 and the one Unit 2 lease expires in January 2024. The annual lease payments during the renewal periods aggregate $1.6 million on the remaining PVNGS Unit 2 lease. The terms of each of the extended leases did not provide for additional renewal options beyond their scheduled expiration dates. PNM had the option to purchase the assets underlying each of the extended leases at their fair market value or to return the lease interests to the lessors on the expiration dates. On June 11, 2020, PNM provided notice to the lessors and the NMPRC of its intent to return the assets underlying both the PVNGS Unit 1 and Unit 2 leases upon their expiration in January 2023 and 2024. Although PNM elected to return the assets underlying the extended leases, PNM retains certain obligations related to PVNGS, including costs to decommission the facility. PNM depreciates its capital improvements related to the extended leases using NMPRC approved rates through the end of the NRC license period for each unit, which expire in June 2045 for Unit 1 and in June 2046 for Unit 2. Upon expiration of the leases PNM will cease depreciation and, as authorized by the NMPRC, create a regulatory asset for the associated remaining undepreciated investments. On April 5, 2021, PNM and SRP entered into an Asset Purchase and Sale Agreement, pursuant to which PNM agreed to sell to SRP certain PNM-owned assets and nuclear fuel necessary to the ongoing operation and maintenance of leased capacity in PVNGS Unit 1 and Unit 2, which SRP has agreed to acquire from the lessors upon termination of the existing leases. The proposed transaction between PNM and SRP received all necessary approvals, including NRC approval for the transfer of the associated possessory licenses to SRP at the end of the term of each of the respective leases. In January 2023, the Unit 1 leases expired, and PNM closed on the associated sale to SRP, receiving payments of $33.7 million, of which $28.4 million was recorded as a reduction to Net utility plant on the Condensed Consolidated Balance Sheets and is presented as cash flows from investing activities on the Condensed Consolidated Statement of Cash Flows. In addition, $5.3 million was recorded as a reduction to Materials, supplies, and fuel stock on the Condensed Consolidated Balance Sheets and is presented as cash flows from operating activities on the Condensed Consolidated Statement of Cash Flows. See Note 12 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which included PNM's request to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the PVNGS lease arrangements upon the occurrence of certain events that PNM does not consider reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to PVNGS or the occurrence of specified nuclear events), PNM would be required to make specified payments to the lessors and take title to the leased interests. If such an event had occurred as of June 30, 2023, amounts due to the lessors under the circumstances described above would have been up to $13.8 million, payable on July 15, 2023 in addition to the scheduled lease payments due on that date. Land Easements and Rights-of-Ways Many of PNM’s electric transmission and distribution facilities are located on lands that require the grant of rights-of-way from governmental entities, Native American tribes, or private parties. PNM has completed several renewals of rights-of-way, the largest of which is a renewal with the Navajo Nation. PNM is obligated to pay the Navajo Nation annual payments of $6.0 million, subject to adjustment each year based on the Consumer Price Index, through 2029. PNM’s April 2023 payment for the amount due under the Navajo Nation right-of-way lease was $8.3 million, which included amounts due under the Consumer Price Index adjustment. Changes in the Consumer Price Index subsequent to January 1, 2019 are considered variable lease payments. PNM has other prepaid rights-of-way agreements that are not accounted for as leases or recognized as a component of plant in service. PNM reflects the unamortized balance of these prepayments in other deferred charges on the Condensed Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Condensed Consolidated Statement of Earnings over their term. As of June 30, 2023 and December 31, 2022, the unamortized balance of these rights-of-ways was $57.5 million and $54.6 million. PNM recognized amortization expense associated with these agreements of $0.9 million and $1.8 million in the three and six months ended June 30, 2023 and $0.9 million and $2.0 million in the three and six months ended June 30, 2022. Fleet Vehicles and Equipment Fleet vehicle and equipment leases commencing on or after January 1, 2019 are classified as financing leases. Fleet vehicle and equipment leases existing as of December 31, 2018 are classified as operating leases. The Company’s fleet vehicle and equipment lease agreements include non-lease components for insignificant administrative and other costs that are billed over the life of the agreement. At June 30, 2023, residual value guarantees on fleet vehicle and equipment leases are $0.9 million, $1.1 million, and $2.0 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 47,648 $ 2,456 $ 50,104 $ 52,556 $ 3,426 $ 55,982 Current portion of operating lease liabilities 7,795 1,030 8,825 17,239 1,543 18,781 Long-term portion of operating lease liabilities 33,422 1,237 34,658 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 Condensed Consolidated Balance Sheets is presented below: June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 24,105 $ 21,855 $ 46,290 $ 19,324 $ 20,084 $ 39,738 Accumulated depreciation (9,857) (10,364) (20,518) (7,726) (8,202) (16,189) Non-utility property, net 14,248 11,491 25,772 11,598 11,882 23,549 Other current liabilities $ 4,355 $ 4,184 $ 8,565 $ 3,441 $ 3,867 $ 7,363 Other deferred credits 9,859 7,323 17,190 8,079 8,028 16,123 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of June 30, 2023 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 7.75 1.99 7.43 Financing leases 3.99 3.09 3.58 Weighted average discount rate: Operating leases 4.07 % 4.13 % 4.08 % Financing leases 4.24 % 3.90 % 4.08 % Information for the components of lease expense is as follows: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 2,468 $ 401 $ 2,869 $ 6,376 $ 830 $ 7,206 Amounts capitalized (103) (331) (434) (263) (684) (947) Total operating lease expense 2,365 70 2,435 6,113 146 6,259 Financing lease cost: Amortization of right-of-use assets 1,123 1,098 2,235 2,132 2,162 4,329 Interest on lease liabilities 140 112 252 262 223 486 Amounts capitalized (778) (699) (1,477) (1,469) (1,699) (3,167) Total financing lease expense 485 511 1,010 925 686 1,648 Variable lease expense 360 — 360 622 — 622 Short-term lease expense 145 1 149 292 1 299 Total lease expense for the period $ 3,355 $ 582 $ 3,954 $ 7,952 $ 833 $ 8,828 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,665 $ 495 $ 7,181 $ 13,349 $ 1,023 $ 14,418 Amounts capitalized (173) (457) (630) (358) (926) (1,283) Total operating lease expense 6,492 38 6,551 12,991 97 13,135 Financing lease cost: Amortization of right-of-use assets 769 799 1,583 1,501 1,555 3,095 Interest on lease liabilities 79 80 160 147 153 301 Amounts capitalized (563) (764) (1,327) (1,060) (1,480) (2,540) Total financing lease expense 285 115 416 588 228 856 Variable lease expense 262 — 262 367 — 367 Short-term lease expense (1) 1,137 3 1,147 2,269 3 2,317 Total lease expense for the period $ 8,176 $ 156 $ 8,376 $ 16,215 $ 328 $ 16,675 (1) Includes expense of $1.1 million and $2.3 million for the three and six months ended June 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $1.1 million and $2.3 million for the three and six months ended June 30, 2022. Supplemental cash flow information related to the Company’s leases is as follows: Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,208 $ 155 $ 16,363 $ 16,260 $ 75 $ 16,381 Operating cash flows from financing leases 88 38 127 45 21 68 Finance cash flows from financing leases 792 646 1,474 528 236 809 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 6 $ 100 $ 1,079 $ — $ 1,079 Financing leases 4,793 1,783 6,576 2,151 1,625 3,776 Capitalized lease costs are reflected as investing activities on the Company’s Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Future expected lease payments are shown below: As of June 30, 2023 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2023 $ 2,539 $ 1,148 $ 2,343 $ 602 $ 4,900 $ 1,750 2024 4,204 8,149 4,068 945 8,286 9,094 2025 3,232 7,428 3,070 770 6,304 8,198 2026 2,735 7,019 1,912 76 4,647 7,094 2027 1,577 7,023 748 — 2,325 7,023 Later years 1,229 17,510 81 — 1,310 17,510 Total minimum lease payments 15,516 48,277 12,222 2,393 27,772 50,669 Less: Imputed interest 1,302 7,060 715 126 2,017 7,186 Lease liabilities as of June 30, 2023 $ 14,214 $ 41,217 $ 11,507 $ 2,267 $ 25,755 $ 43,483 The above table includes $13.1 million, $12.0 million, and $25.1 million for PNM, TNMP, and PNMR at June 30, 2023 for expected future payments on fleet vehicle and equipment leases that could be avoided if the leased assets were returned and the lessor is able to recover estimated market value for the equipment from third parties. At June 30, 2023, the Company has various lease arrangements that have been executed but have not yet commenced, which are primarily related to battery storage agreements. The Company currently expects lease commencement dates in 2023 and 2024, with lease terms expiring in 2044, and will recognize lease assets and liabilities upon lease commencement. The expected total fixed consideration to be paid for these arrangements, which includes non-lease payments, is approximately $1.3 billion over the 20-year terms of the agreements.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company makes an estimate of its anticipated effective tax rate for the year as of the end of each quarterly period within its fiscal year. In interim periods, income tax expense is calculated by applying the anticipated annual effective tax rate to year-to-date earnings before income taxes. Certain unusual or infrequently occurring items, including excess tax benefits or deficiencies related to stock awards and taxes on Merger-related costs are excluded from the estimated annual effective tax rate calculation. At June 30, 2023, PNMR, PNM, and TNMP estimated their effective income tax rates for the year ended December 31, 2023 would be 15.68%, 18.69%, and 14.72%. The primary difference between the statutory income tax rates and the effective tax rates is the effect of the reduction in income tax expense resulting from the amortization of excess deferred federal income taxes. During the six months ended June 30, 2023, income tax expense calculated by applying the expected annual effective income tax rate to earnings before income taxes was further reduced by excess tax benefits related to stock awards of $0.3 million for PNMR, of which $0.2 million was allocated to PNM and $0.1 million was allocated to TNMP.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions PNMR, PNM, TNMP, and NMRD are considered related parties, as is PNMR Services Company, a wholly-owned subsidiary of PNMR that provides corporate services to PNMR and its subsidiaries in accordance with shared services agreements. These services are billed at cost on a monthly basis to the business units. In addition, PNMR provides construction and operations and maintenance services to NMRD, a 50% owned subsidiary of PNMR Development. PNM purchases renewable energy from certain NMRD-owned facilities at a fixed price per MWh of energy produced. PNM also provides interconnection services to PNMR Development and NMRD. See Note 16 for additional discussion of NMRD. The table below summarizes the nature and amount of related party transactions of PNMR, PNM, TNMP, and NMRD: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Services billings: PNMR to PNM $ 29,142 $ 28,378 $ 60,642 $ 56,071 PNMR to TNMP 11,333 10,252 23,727 20,556 PNM to TNMP 104 123 169 216 TNMP to PNMR 35 35 71 71 PNMR to NMRD 82 81 164 145 Renewable energy purchases: PNM from NMRD 3,748 3,801 6,109 6,422 Interconnection and facility study billings: PNM to NMRD — — — — PNM to PNMR — — — — NMRD to PNM — — — — Interest billings: PNMR to PNM 7 2 10 9 PNM to PNMR 143 47 273 70 PNMR to TNMP 117 72 128 117 Income tax sharing payments: PNMR to PNM — — — — TNMP to PNMR — — — —

Equity Method Investment

Equity Method Investment	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment As discussed in Note 21 of the Company's 2022 Annual Reports on Form 10-K, PNMR Development and AEP OnSite Partners created NMRD in September 2017 to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. As of June 30, 2023, NMRD’s renewable energy capacity in operation was 135.1 MW. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. The investment in NMRD is accounted for using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR Development, together with AEP OnSite Partners, has selected an adviser for the sale of NMRD. In the six months ended June 30, 2023, PNMR Development and AEP OnSite Partners each made cash contributions to NMRD of $14.8 million for its construction activities. In the six months ended June 30, 2022, neither PNMR Development nor AEP OnSite Partners made any cash contributions to NMRD for its construction activities. PNMR presents its share of net earnings from NMRD in other income on the Condensed Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows: Results of Operations Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ 3,975 $ 4,021 $ 6,505 $ 6,817 Operating expenses 1,965 2,387 4,384 4,791 Net earnings $ 2,010 $ 1,634 $ 2,121 $ 2,026 Financial Position June 30, December 31, 2023 2022 (In thousands) Current assets $ 4,468 $ 8,357 Net property, plant, and equipment 200,071 169,440 Non-current assets 9,856 9,631 Total assets 214,395 187,428 Current liabilities 1,162 5,822 Non-current liabilities 373 366 Owners’ equity $ 212,860 $ 181,240

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The excess purchase price over the fair value of the assets acquired and the liabilities assumed by PNMR for its 2005 acquisition of TNP Enterprises, Inc. and Subsidiaries ("TNP") was recorded as goodwill and was pushed down to the businesses acquired. In 2007, the TNMP assets that were included in its New Mexico operations, including goodwill, were transferred to PNM. PNMR’s reporting units that currently have goodwill are PNM and TNMP. The Company evaluates its goodwill for impairment annually at the reporting unit level or more frequently if circumstances indicate that the goodwill may be impaired. Application of the impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, and determination of the fair value of each reporting unit. In certain circumstances an entity may perform a qualitative analysis to conclude that the goodwill of a reporting unit is not impaired. Under a qualitative assessment an entity considers macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events affecting a reporting unit, as well as whether a sustained decrease (both absolute and relative to its peers) in share price has occurred. An entity considers the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit’s fair value with its carrying amount. An entity places more weight on the events and circumstances that most affect a reporting unit’s fair value or the carrying amount of its net assets. An entity also considers positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity evaluates, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative analysis is not required if, after assessing events and circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. In other circumstances, an entity may perform a quantitative analysis to reach the conclusion regarding impairment with respect to a reporting unit. An entity may choose to perform a quantitative analysis without performing a qualitative analysis and may perform a qualitative analysis for certain reporting units, but a quantitative analysis for others. The first step of the quantitative impairment test requires an entity to compare the fair value of the reporting unit with its carrying value, including goodwill. If, as a result of this analysis, the entity concludes there is an indication of impairment in a reporting unit having goodwill, the entity is required to perform the second step of the impairment analysis, determining the amount of goodwill impairment to be recorded. The amount is calculated by comparing the implied fair value of the goodwill to its carrying amount. This exercise would require the entity to allocate the fair value determined in step one to the individual assets and liabilities of the reporting unit. Any remaining fair value would be the implied fair value of goodwill on the testing date. To the extent the recorded amount of goodwill of a reporting unit exceeds the implied fair value determined in step two, an impairment loss would be reflected in results of operations. PNMR periodically updates its quantitative analysis for both PNM and TNMP. The use of a quantitative approach in a given period is not necessarily an indication that a potential impairment has been identified under a qualitative approach. When PNMR performs a quantitative analysis for PNM or TNMP, a discounted cash flow methodology is primarily used to estimate the fair value of the reporting unit. This analysis requires significant judgments, including estimations of future cash flows, which is dependent on internal forecasts, estimations of long-term growth rates for the business, and determination of appropriate weighted average cost of capital for the reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment. When PNMR performs a qualitative or quantitative analysis for PNM or TNMP, PNMR considers market and macroeconomic factors including changes in growth rates, changes in the Weighted Average Cost of Capital ("WACC"), and changes in discount rates. PNMR also evaluates its stock price relative to historical performance, industry peers, and to major market indices, including an evaluation of PNMR’s market capitalization relative to the carrying value of its reporting units. For its annual evaluations performed as of April 1, 2023, PNMR performed a qualitative analysis for both the PNM and TNMP reporting units. In addition to the typical considerations discussed above, the qualitative analysis considered changes in the Company's expectations of future financial performance since the April 1, 2018 quantitative analysis and the previous qualitative analyses through April 1, 2022 performed for PNM, as well as the April 1, 2020 quantitative analysis and the previous qualitative analyses through April 1, 2022 performed for TNMP. This analysis considered Company specific events such as the Merger, potential impacts of legal and regulatory matters discussed in Note 11 and Note 12, including potential outcomes in PNM’s San Juan Abandonment Application, PNM's Four Corners Abandonment Application, and PNM's PVNGS Leased Interest Abandonment Application. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2023 carrying values of PNM and TNMP exceeded their fair value. Since the April 1, 2023 annual evaluation, there have been no events or indications that the fair values of the reporting units with recorded goodwill have decreased below their carrying values. For its annual evaluations performed as of April 1, 2022, PNMR performed a qualitative analysis for both the PNM and TNMP reporting units. In addition to the typical considerations discussed above, the qualitative analysis considered changes in the Company's expectations of future financial performance since the April 1, 2018 quantitative analysis and the previous qualitative analyses through April 1, 2021 performed for PNM, as well as the April 1, 2020 quantitative analysis and the previous qualitative analyses through April 1, 2021 performed for TNMP. The April 1, 2018 quantitative evaluations indicated the fair value of the PNM reporting unit, which has goodwill of $51.6 million, exceeded its carrying value by approximately 19%. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2022 carrying value of PNM exceeded its fair value. The April 1, 2020 quantitative evaluations indicated the fair value of the TNMP reporting unit, which has goodwill of $226.7 million, exceeded its carrying value by approximately 38%. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2022 carrying value of TNMP exceeded its fair value.

Merger

Merger	6 Months Ended
	Jun. 30, 2023
Business Combinations [Abstract]
Merger	Merger On October 20, 2020, PNMR, Avangrid and Merger Sub entered into the Merger Agreement pursuant to which Merger Sub will merge with and into PNMR, with PNMR surviving the Merger as a wholly-owned subsidiary of Avangrid. Pursuant to the Merger Agreement, each issued and outstanding share of PNMR common stock at the Effective Time will be converted into the right to receive $50.30 in cash. The proposed Merger has been unanimously approved by the Boards of Directors of PNMR, Avangrid and Merger Sub and approved by PNMR shareholders at the Special Meeting of Shareholders held on February 12, 2021. The Merger Agreement provided that it may be terminated by each of PNMR and Avangrid under certain circumstances, including if the Effective Time shall not have occurred by the January 20, 2022 End Date; however, either PNMR or Avangrid could extend the End Date to April 20, 2022 if all conditions to closing have been satisfied other than the obtaining of all required regulatory approvals. As discussed below, in December 2021, the NMPRC issued an order rejecting the stipulation agreement relating to the Merger. In January 2022, PNMR, Avangrid and Merger Sub entered into an Amendment to the Merger Agreement pursuant to which PNMR and Avangrid agreed to extend the End Date to April 20, 2023. On April 12, 2023, PNMR, Avangrid, and Merger Sub entered into Amendment No. 2 to the Merger Agreement whereby all of the parties agreed to extend the End Date to July 20, 2023. On June 19, 2023, PNMR, Avangrid, and Merger Sub entered into Amendment No. 3 to the Merger Agreement whereby all of the parties agreed to extend the End Date to December 31, 2023, subject to a three-month extension by PNMR and Avangrid by mutual consent if all of the conditions to closing, other than the conditions relating to regulatory approval, have been satisfied as of December 31, 2023. The Merger is subject to certain regulatory approvals, including from the NMPRC. The Joint Applicants to the NMPRC application and a number of intervening parties had entered into an amended stipulation and agreement in the Joint Application for approval of Merger pending before the NMPRC. An evidentiary hearing was held in August 2021. On November 1, 2021, a Certification of Stipulation was issued by the hearing examiner, which recommended against approval of the amended stipulation. On December 8, 2021, the NMPRC issued an order adopting the Certification of Stipulation, rejecting the amended stipulation reached by the parties. On January 3, 2022, PNMR and Avangrid filed a notice of appeal with the NM Supreme Court. On February 2, 2022, PNMR and Avangrid filed a statement of issues outlining the argument for appeal. On April 7, 2022, PNMR and Avangrid filed their Brief in Chief with the NM Supreme Court. Answer briefs from the NMPRC were filed on June 14, 2022, and response briefs were filed on August 5, 2022. On March 8, 2023, PNM, Avangrid, and the NMPRC filed a motion with the NM Supreme Court to dismiss the appeal and remand the proceeding back to the NMPRC for further proceedings. On May 15, 2023, the NM Supreme Court issued an order denying the joint motion to dismiss the appeal, retaining jurisdiction over the case and has set oral argument for September 15, 2023. With respect to other regulatory proceedings related to the Merger, in 2021 PNMR received clearances for the Merger from the Federal Trade Commission ("FTC") under the HSR Act, CFIUS, the FCC, FERC, the PUCT, and the NRC. As a result of the delay in closing of the Merger due to the need to obtain NMPRC approval, PNMR and Avangrid were required to make a new filing under the HSR Act and request extensions of approvals previously received from the FCC and NRC. PNM has received approval from the FCC that runs through September 5, 2023, approval from the NRC that runs through May 25, 2024 and clearance under the HSR Act through March 10, 2024. No additional approvals are required from CFIUS, FERC or the PUCT. Consummation of the Merger remains subject to the satisfaction or waiver of certain customary closing conditions, including, without limitation, the absence of any material adverse effect on PNMR, the receipt of required regulatory approval from the NMPRC, and the agreements relating to the divestiture of Four Corners being in full force and effect and all applicable regulatory filings associated therewith being made. The agreement relating to the divestiture of Four Corners has been entered into and is in full effect and related filings have been made with the NMPRC. The Merger Agreement provides for certain customary termination rights. The Merger Agreement further provides that, upon termination of the Merger Agreement under certain specified circumstances (including if Avangrid terminates the Merger Agreement due to a change in recommendation of the Board or if PNMR terminates the Merger Agreement to accept a superior proposal (as defined in the Merger Agreement) and in either case prior to PNMR's shareholder having approved the Merger), PNMR will be required to pay Avangrid a termination fee of $130.0 million. In addition, the Merger Agreement provides that (i) if the Merger Agreement is terminated by either party due to a failure of a regulatory closing condition and such failure is the result of Avangrid’s breach of its regulatory covenants or (ii) Avangrid fails to effect the closing when all closing conditions have been satisfied and it is otherwise obligated to do so under the Merger Agreement, then, in either such case, upon termination of the Merger Agreement, Avangrid will be required to pay PNMR a termination fee of $184.0 million as the sole and exclusive remedy. Upon the termination of the Merger Agreement under certain specified circumstances involving a breach of the Merger Agreement, either PNMR or Avangrid will be required to reimburse the other party’s reasonable and documented out-of-pocket fees and expenses up to $10.0 million (which amount will be credited toward, and offset against, the payment of any applicable termination fee).

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Significant Accounting Polici_2

Significant Accounting Policies and Responsibility for Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The Condensed Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia. See Note 6. PNM owns undivided interests in several jointly-owned power plants and records its pro-rata share of the assets, liabilities, and expenses for those plants. The agreements for the jointly-owned plants provide that if an owner were to default on its payment obligations, the non-defaulting owners would be responsible for their proportionate share of the obligations of the defaulting owner. In exchange, the non-defaulting owners would be entitled to their proportionate share of the generating capacity of the defaulting owner. There have been no such payment defaults under any of the agreements for the jointly-owned plants.
New Accounting Pronouncements	New Accounting Pronouncements Information concerning a recently issued accounting pronouncement that has not yet been adopted by the Company is presented below. The Company does not expect difficulty in adopting this standard by its required effective date. Accounting Standards Update 2022-03 - Fair Value Measurement (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03 clarifying that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and, therefore, is not considered in measuring fair value. The amendment also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Disclosure requirements from the amendment include disclosure of the fair value of equity securities subject to contractual sale restrictions that are reflected in the balance sheet; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). ASU 2022-03 is effective for the Company beginning January 1, 2024 with early adoption for both interim and annual periods being permitted. ASU 2022-03 is to be applied prospectively with any adjustments recognized in earnings and disclosed on the date of adoption.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Summary of Financial Information by 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 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended June 30, 2023 Electric operating revenues $ 338,242 $ 138,914 $ — $ 477,156 Cost of energy 133,609 38,843 — 172,452 Utility margin 204,633 100,071 — 304,704 Other operating expenses 106,154 33,395 (6,314) 133,235 Depreciation and amortization 44,064 27,949 7,126 79,139 Operating income (loss) 54,415 38,727 (812) 92,330 Interest income (expense) 5,370 121 (132) 5,359 Other income 3,695 1,512 655 5,862 Interest charges (20,766) (11,412) (13,721) (45,899) Segment earnings (loss) before income taxes 42,714 28,948 (14,010) 57,652 Income taxes (benefit) 7,411 4,316 (3,498) 8,229 Segment earnings (loss) 35,303 24,632 (10,512) 49,423 Valencia non-controlling interest (3,987) — — (3,987) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 31,184 $ 24,632 $ (10,512) $ 45,304 Six Months Ended June 30, 2023 Electric operating revenues $ 768,407 $ 252,826 $ — $ 1,021,233 Cost of energy 343,462 70,676 — 414,138 Utility margin 424,945 182,150 — 607,095 Other operating expenses 204,876 66,247 (12,662) 258,461 Depreciation and amortization 87,750 55,389 14,074 157,213 Operating income (loss) 132,319 60,514 (1,412) 191,421 Interest income (expense) 10,219 235 (252) 10,202 Other income 10,728 1,648 528 12,904 Interest charges (38,888) (21,837) (26,097) (86,822) Segment earnings (loss) before income taxes 114,378 40,560 (27,233) 127,705 Income taxes (benefit) 19,240 5,895 (7,126) 18,009 Segment earnings (loss) 95,138 34,665 (20,107) 109,696 Valencia non-controlling interest (9,114) — — (9,114) Subsidiary preferred stock dividends (264) — — (264) Segment earnings (loss) attributable to PNMR $ 85,760 $ 34,665 $ (20,107) $ 100,318 At June 30, 2023: Total Assets $ 6,440,357 $ 2,916,206 $ 270,407 $ 9,626,970 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended June 30, 2022 Electric operating revenues $ 376,754 $ 122,976 $ — $ 499,730 Cost of energy 163,964 31,632 — 195,596 Utility margin 212,790 91,344 — 304,134 Other operating expenses 117,374 29,032 (5,433) 140,973 Depreciation and amortization 45,981 24,312 6,476 76,769 Operating income (loss) 49,435 38,000 (1,043) 86,392 Interest income (expense) 3,267 105 (45) 3,327 Other income (deductions) (41,816) 1,123 408 (40,285) Interest charges (14,523) (9,016) (5,678) (29,217) Segment earnings (loss) before income taxes (3,637) 30,212 (6,358) 20,217 Income taxes (benefit) (1,182) 4,161 (1,885) 1,094 Segment earnings (loss) (2,455) 26,051 (4,473) 19,123 Valencia non-controlling interest (3,630) — — (3,630) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ (6,217) $ 26,051 $ (4,473) $ 15,361 Six Months Ended June 30, 2022 Electric operating revenues $ 715,463 $ 228,385 $ — $ 943,848 Cost of energy 302,778 61,232 — 364,010 Utility margin 412,685 167,153 — 579,838 Other operating expenses 226,463 56,957 (10,575) 272,845 Depreciation and amortization 91,771 47,954 12,808 152,533 Operating income (loss) 94,451 62,242 (2,233) 154,460 Interest income (expense) 6,400 1,287 (68) 7,619 Other income (deductions) (67,032) 2,060 203 (64,769) Interest charges (29,095) (18,166) (8,176) (55,437) Segment earnings (loss) before income taxes 4,724 47,423 (10,274) 41,873 Income taxes (benefit) (359) 6,312 (2,421) 3,532 Segment earnings (loss) 5,083 41,111 (7,853) 38,341 Valencia non-controlling interest (6,725) — — (6,725) Subsidiary preferred stock dividends (264) — — (264) Segment earnings (loss) attributable to PNMR $ (1,906) $ 41,111 $ (7,853) $ 31,352 At June 30, 2022: Total Assets $ 6,090,151 $ 2,583,602 $ 237,352 $ 8,911,105 Goodwill $ 51,632 $ 226,665 $ — $ 278,297
Public Utilities General Disclosures	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. PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended June 30, 2023 Gross margin $ 120,215 $ 61,412 $ — $ 181,627 Energy production costs 25,599 — — 25,599 Transmission and distribution costs 14,755 10,710 — 25,465 Depreciation and amortization 44,064 27,949 — 72,013 1 Utility margin $ 204,633 $ 100,071 $ — $ 304,704 Six Months Ended June 30, 2023 Gross margin $ 260,596 $ 107,742 $ — $ 368,338 Energy production costs 47,957 — — 47,957 Transmission and distribution costs 28,642 19,019 — 47,661 Depreciation and amortization 87,750 55,389 — 143,139 1 Utility margin $ 424,945 $ 182,150 $ — $ 607,095 PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended June 30, 2022 Gross margin $ 110,792 $ 59,394 $ — $ 170,186 Energy production costs 42,499 — — 42,499 Transmission and distribution costs 13,518 7,638 — 21,156 Depreciation and amortization 45,981 24,312 — 70,293 1 Utility margin $ 212,790 $ 91,344 $ — $ 304,134 Six Months Ended June 30, 2022 Gross margin $ 219,720 $ 104,706 $ — $ 324,426 Energy production costs 76,065 — — 76,065 Transmission and distribution costs 25,129 14,493 — 39,622 Depreciation and amortization 91,771 47,954 — 139,725 1 Utility margin $ 412,685 $ 167,153 $ — $ 579,838 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.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Information regarding accumulated other comprehensive income (loss) for the six months ended June 30, 2023 and 2022 is as follows: Accumulated Other Comprehensive Income (Loss) PNM Corporate and Other PNMR Consolidated Unrealized Pension Fair Value Total Total (In thousands) Balance at December 31, 2022 $ 7,422 $ (81,757) $ (74,335) $ 8,287 $ (66,048) Amounts reclassified from AOCI (pre-tax) (2,580) 2,388 (192) 1,197 1,005 Income tax impact of amounts reclassified 655 (606) 49 (304) (255) Other OCI changes (pre-tax) 4,560 — 4,560 3,567 8,127 Income tax impact of other OCI changes (1,158) — (1,158) (906) (2,064) Net after-tax change 1,477 1,782 3,259 3,554 6,813 Balance at June 30, 2023 $ 8,899 $ (79,975) $ (71,076) $ 11,841 $ (59,235) Balance at December 31, 2021 $ 11,715 $ (83,651) $ (71,936) $ — $ (71,936) Amounts reclassified from AOCI (pre-tax) (2,917) 3,552 635 (1,185) (550) Income tax impact of amounts reclassified 741 (902) (161) 301 140 Other OCI changes (pre-tax) (9,452) — (9,452) 3,448 (6,004) Income tax impact of other OCI changes 2,401 — 2,401 (876) 1,525 Net after-tax change (9,227) 2,650 (6,577) 1,688 (4,889) Balance at June 30, 2022 $ 2,488 $ (81,001) $ (78,513) $ 1,688 $ (76,825)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Computation of Earnings Per Share	Information regarding the computation of earnings per share is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 45,304 $ 15,361 $ 100,318 $ 31,352 Average Number of Common Shares: Outstanding during period 85,835 85,835 85,835 85,835 Vested awards of restricted stock 250 351 258 303 Average Shares – Basic 86,085 86,186 86,093 86,138 Dilutive Effect of Common Stock Equivalents: Restricted stock 39 40 38 60 2023 Forward Sale Agreements 5 — 2 — Average Shares – Diluted 86,129 86,226 86,133 86,198 Net Earnings Per Share of Common Stock: Basic $ 0.53 $ 0.18 $ 1.17 $ 0.36 Diluted $ 0.53 $ 0.18 $ 1.16 $ 0.36

Electric Operating Revenues (Ta

Electric Operating Revenues (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. PNM TNMP PNMR Consolidated Three Months Ended June 30, 2023 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 108,016 $ 41,491 $ 149,507 Commercial 105,262 37,965 143,227 Industrial 26,156 12,930 39,086 Public authority 5,305 1,669 6,974 Economy energy service 10,731 — 10,731 Transmission 37,922 35,062 72,984 Wholesale energy service 37,308 — 37,308 Miscellaneous 1,377 907 2,284 Total revenues from contracts with customers 332,077 130,024 462,101 Alternative revenue programs 3,577 8,890 12,467 Other electric operating revenues 2,588 — 2,588 Total Electric Operating Revenues $ 338,242 $ 138,914 $ 477,156 Six Months Ended June 30, 2023 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 227,901 $ 77,857 $ 305,758 Commercial 203,323 72,695 276,018 Industrial 45,633 25,694 71,327 Public authority 9,723 3,288 13,011 Economy energy service 20,041 — 20,041 Transmission 86,930 65,120 152,050 Wholesale energy sales 150,294 — 150,294 Miscellaneous 2,786 1,848 4,634 Total revenues from contracts with customers 746,631 246,502 993,133 Alternative revenue programs 10,902 6,324 17,226 Other electric operating revenues 10,874 — 10,874 Total Electric Operating Revenues $ 768,407 $ 252,826 $ 1,021,233 PNM TNMP PNMR Consolidated Three Months Ended June 30, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 104,902 $ 46,121 $ 151,023 Commercial 101,174 36,557 137,731 Industrial 19,610 9,548 29,158 Public authority 4,744 1,561 6,305 Economy energy service 11,003 — 11,003 Transmission 35,659 29,321 64,980 Wholesale energy sales 85,645 — 85,645 Miscellaneous 1,299 992 2,291 Total revenues from contracts with customers 364,036 124,100 488,136 Alternative revenue programs 3,703 (1,124) 2,579 Other electric operating revenues 9,015 — 9,015 Total Electric Operating Revenues $ 376,754 $ 122,976 $ 499,730 Six Months Ended June 30, 2022 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 217,477 $ 85,489 $ 302,966 Commercial 189,178 69,660 258,838 Industrial 42,742 17,938 60,680 Public authority 9,170 3,086 12,256 Economy energy service 19,943 — 19,943 Transmission 70,186 54,850 125,036 Wholesale energy sales 145,336 — 145,336 Miscellaneous 2,672 1,926 4,598 Total revenues from contracts with customers 696,704 232,949 929,653 Alternative revenue programs 1,638 (4,564) (2,926) Other electric operating revenues 17,121 — 17,121 Total Electric Operating Revenues $ 715,463 $ 228,385 $ 943,848

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2023
Variable Interest Entities [Abstract]
Summarized Financial Information	Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ 6,144 $ 5,098 $ 12,748 $ 10,030 Operating expenses 2,157 1,468 3,634 3,305 Earnings attributable to non-controlling interest $ 3,987 $ 3,630 $ 9,114 $ 6,725 Financial Position June 30, December 31, 2023 2022 (In thousands) Current assets $ 3,577 $ 3,429 Net property, plant, and equipment 48,673 50,094 Total assets 52,250 53,523 Current liabilities 897 529 Owners’ equity – non-controlling interest $ 51,353 $ 52,994

Fair Value of Derivative and _2

Fair Value of Derivative and Other Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value of Derivative and Other Financial Instruments [Abstract]
Summary of Derivatives	PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets: Economic Hedges June 30, December 31, (In thousands) Other current assets $ 641 $ 9,780 Other current liabilities (22,917) (19,209) Net $ (22,276) $ (9,429)
Schedule of Commodity Contract Volume Positions	Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM's net buy (sell) volume positions: Economic Hedges MMBTU MWh June 30, 2023 155,000 471,415 December 31, 2022 — 432,200
Schedule of Gross Realized Gains and Losses	Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT, SJGS decommissioning, and coal mine reclamation trusts are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ 2,792 $ (1,061) $ 1,947 $ 3,945 Net gains (losses) from equity securities still held 1,142 (26,224) 8,619 (48,259) Total net gains (losses) on equity securities 3,934 (27,285) 10,566 (44,314) Available-for-sale debt securities: Net (losses) on debt securities (157) (14,510) (347) (24,054) Net gains (losses) on investment securities $ 3,777 $ (41,795) $ 10,219 $ (68,368) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Proceeds from sales $ 183,566 $ 105,634 $ 274,777 $ 230,880 Gross realized gains 7,014 7,545 10,442 17,723 Gross realized (losses) (5,741) (10,361) (12,212) (16,201)
Investments Classified by Contractual Maturity Date	At June 30, 2023, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 72,289 After 1 year through 5 years 67,056 After 5 years through 10 years 67,886 After 10 years through 15 years 20,197 After 15 years through 20 years 12,169 After 20 years 38,128 $ 277,725
Schedule of Investments	Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unrealized Gains (In thousands) June 30, 2023 Cash and cash equivalents $ 21,511 $ 21,511 $ — Equity securities: Corporate stocks, common 74,375 74,375 — Corporate stocks, preferred 4,906 752 4,154 Mutual funds and other 54,675 54,675 — Available-for-sale debt securities: U.S. government 35,550 35,245 305 $ 1,490 International government 10,833 — 10,833 1,428 Municipals 46,693 — 46,693 1,051 Corporate and other 184,649 184,649 7,997 $ 433,192 $ 186,558 $ 246,634 $ 11,966 December 31, 2022 Cash and cash equivalents $ 66,843 $ 66,843 $ — Equity securities: Corporate stocks, common 40,103 40,103 — Corporate stocks, preferred 5,191 790 4,401 Mutual funds and other 66,359 66,359 — Available-for-sale debt securities: U.S. government 45,905 45,645 260 $ 1,334 International government 9,762 — 9,762 1,117 Municipals 43,136 — 43,136 1,062 Corporate and other 140,177 — 140,177 6,473 $ 417,476 $ 219,740 $ 197,736 $ 9,986
Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value	The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below: Carrying Amount Fair Value June 30, 2023 (In thousands) PNMR $ 4,349,963 $ 3,996,151 PNM 2,144,735 1,928,350 TNMP 1,206,160 1,067,801 December 31, 2022 PNMR $ 4,077,387 $ 3,726,195 PNM 2,000,900 1,789,186 TNMP 1,076,875 937,009
Schedule Of Commodity Contract Contingent Consideration	The table below presents information about PNM's contingent requirement to provide collateral under certain commodity contracts having an objectively determinable collateral provision, that are in net liability positions, and that are not fully collateralized with cash. Contractual liability represents those commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. Cash collateral posted under these contracts does not reflect letters of credit under the Company's revolving credit facilities that may have been issued as collateral. Net exposure is the net contractual liability for all contracts, including those designated as normal purchase and normal sale, offset by existing collateral and by any offsets available under master netting agreements, including both assets and liability positions. Contingent Feature - Credit Rating Downgrade Contractual Liability Existing Cash Collateral Net Exposure (In thousands) June 30, 2023 $ 26,190 $ — $ 22,743 December 31, 2022 $ 15,288 $ — $ 13,087

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Activity	The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Six Months Ended June 30, Restricted Shares and Performance Based Shares 2023 2022 Expected quarterly dividends per share $ 0.3675 $ 0.3475 Risk-free interest rate 4.46 % 1.46 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares for the six months ended June 30, 2023: Restricted Stock Shares Weighted- Outstanding at December 31, 2022 182,446 $ 42.09 Granted 194,453 45.00 Released (197,120) 43.99 Forfeited (1,222) 42.57 Outstanding at June 30, 2023 178,557 $ 43.31 The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares: Six Months Ended June 30, Restricted Stock 2023 2022 Weighted-average grant date fair value $ 45.00 $ 41.04 Total fair value of restricted shares that vested (in thousands) $ 9,622 $ 7,782

Financing (Tables)

Financing (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Derivative Liabilities at Fair Value	PNMR has entered into hedging agreements that establish a fixed rate for the indicated amount of variable rate debt, above which a customary spread is applied, which is subject to change if there is a change in PNMR's credit rating. As of June 30, 2023, PNMR's hedging agreements are as follows: Variable Rate Established Effective Date Maturity Date Debt Hedged Fixed Rate (In millions) (Percent) March 17, 2023 September 30, 2023 $ 150.0 4.57 % October 31, 2022 December 31, 2023 100.0 4.65 October 31, 2022 December 31, 2023 100.0 4.66 September 30, 2022 December 31, 2023 100.0 4.17 September 30, 2022 December 31, 2023 100.0 4.18 May 20, 2022 December 31, 2023 100.0 2.52 May 2, 2022 December 31, 2023 150.0 2.65 May 2, 2022 December 31, 2023 200.0 2.65 January 1, 2024 December 31, 2024 100.0 3.32 January 1, 2024 December 31, 2024 100.0 3.32 January 1, 2024 December 31, 2024 100.0 3.38 January 1, 2024 December 31, 2024 150.0 3.62 January 1, 2024 December 31, 2024 150.0 3.57
Schedule of Short-term Debt	Short-term debt outstanding consists of: June 30, December 31, Short-term Debt 2023 2022 (In thousands) PNM: PNM Revolving Credit Facility $ 111,600 $ 145,900 PNM New Mexico Credit Facility 20,000 40,000 131,600 185,900 TNMP Revolving Credit Facility 37,100 36,700 PNMR Revolving Credit Facility 157,800 9,400 $ 326,500 $ 232,000

Pension and Other Postretirem_2

Pension and Other Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of Net Benefit Costs	The following table presents the components of the PNM Plans’ net periodic benefit cost: Three Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ — $ 2 $ — $ — Interest cost 5,914 4,214 676 479 135 90 Expected return on plan assets (7,299) (7,141) (1,243) (1,088) — — Amortization of net loss 2,645 3,949 — — 38 82 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 1,260 $ 1,022 $ (567) $ (607) $ 173 $ 172 Six Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ — $ 4 $ — $ — Interest cost 11,827 8,428 1,352 958 270 180 Expected return on plan assets (14,598) (14,282) (2,485) (2,176) — — Amortization of net loss 5,291 7,898 — — 76 164 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 2,520 $ 2,044 $ (1,133) $ (1,214) $ 346 $ 344 The following table presents the components of the TNMP Plans’ net periodic benefit cost: Three Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 6 $ 9 $ — $ — Interest cost 600 430 107 77 3 3 Expected return on plan assets (675) (618) (121) (104) — — Amortization of net (gain) loss 109 233 (190) (130) — — Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 34 $ 45 $ (198) $ (148) $ 3 $ 3 Six Months Ended June 30, Pension Plan OPEB Plan Executive Retirement Program 2023 2022 2023 2022 2023 2022 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 11 $ 18 $ — $ — Interest cost 1,201 860 213 154 6 6 Expected return on plan assets (1,349) (1,236) (241) (208) — — Amortization of net (gain) loss 219 466 (380) (260) — — Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 71 $ 90 $ (397) $ (296) $ 6 $ 6

Regulatory and Rate Matters (Ta

Regulatory and Rate Matters (Tables)	6 Months Ended
	Jun. 30, 2023
Regulated Operations [Abstract]
Schedule of Rate Increases for Transmission Costs	The following sets forth TNMP’s recent interim transmission cost rate increases: Effective Date Approved Increase in Rate Base Annual Increase in Revenue (In millions) September 20, 2021 $41.2 $6.3 March 25, 2022 $95.6 $14.2 September 22, 2022 $36.0 $5.3 May 12, 2023 $150.5 $19.4
Schedule Of Interim Distribution Rate Increases	The following sets forth TNMP’s recent interim distribution rate increases: Effective Date Approved Increase in Rate Base Annual Increase in Revenue (In millions) September 1, 2021 $104.5 $13.5 September 1, 2022 $95.7 $6.8 September 1, 2023 $157.0 $14.5

Lease Commitments (Tables)

Lease Commitments (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Assets and Liabilities, Lessee	Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 47,648 $ 2,456 $ 50,104 $ 52,556 $ 3,426 $ 55,982 Current portion of operating lease liabilities 7,795 1,030 8,825 17,239 1,543 18,781 Long-term portion of operating lease liabilities 33,422 1,237 34,658 39,633 1,703 41,336 June 30, 2023 December 31, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 24,105 $ 21,855 $ 46,290 $ 19,324 $ 20,084 $ 39,738 Accumulated depreciation (9,857) (10,364) (20,518) (7,726) (8,202) (16,189) Non-utility property, net 14,248 11,491 25,772 11,598 11,882 23,549 Other current liabilities $ 4,355 $ 4,184 $ 8,565 $ 3,441 $ 3,867 $ 7,363 Other deferred credits 9,859 7,323 17,190 8,079 8,028 16,123 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of June 30, 2023 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 7.75 1.99 7.43 Financing leases 3.99 3.09 3.58 Weighted average discount rate: Operating leases 4.07 % 4.13 % 4.08 % Financing leases 4.24 % 3.90 % 4.08 %
Lease, Cost	Information for the components of lease expense is as follows: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 2,468 $ 401 $ 2,869 $ 6,376 $ 830 $ 7,206 Amounts capitalized (103) (331) (434) (263) (684) (947) Total operating lease expense 2,365 70 2,435 6,113 146 6,259 Financing lease cost: Amortization of right-of-use assets 1,123 1,098 2,235 2,132 2,162 4,329 Interest on lease liabilities 140 112 252 262 223 486 Amounts capitalized (778) (699) (1,477) (1,469) (1,699) (3,167) Total financing lease expense 485 511 1,010 925 686 1,648 Variable lease expense 360 — 360 622 — 622 Short-term lease expense 145 1 149 292 1 299 Total lease expense for the period $ 3,355 $ 582 $ 3,954 $ 7,952 $ 833 $ 8,828 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,665 $ 495 $ 7,181 $ 13,349 $ 1,023 $ 14,418 Amounts capitalized (173) (457) (630) (358) (926) (1,283) Total operating lease expense 6,492 38 6,551 12,991 97 13,135 Financing lease cost: Amortization of right-of-use assets 769 799 1,583 1,501 1,555 3,095 Interest on lease liabilities 79 80 160 147 153 301 Amounts capitalized (563) (764) (1,327) (1,060) (1,480) (2,540) Total financing lease expense 285 115 416 588 228 856 Variable lease expense 262 — 262 367 — 367 Short-term lease expense (1) 1,137 3 1,147 2,269 3 2,317 Total lease expense for the period $ 8,176 $ 156 $ 8,376 $ 16,215 $ 328 $ 16,675 (1) Includes expense of $1.1 million and $2.3 million for the three and six months ended June 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $1.1 million and $2.3 million for the three and six months ended June 30, 2022.
Schedule of Leases, Supplemental Cash Flows	Supplemental cash flow information related to the Company’s leases is as follows: Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,208 $ 155 $ 16,363 $ 16,260 $ 75 $ 16,381 Operating cash flows from financing leases 88 38 127 45 21 68 Finance cash flows from financing leases 792 646 1,474 528 236 809 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 6 $ 100 $ 1,079 $ — $ 1,079 Financing leases 4,793 1,783 6,576 2,151 1,625 3,776
Lessee, Operating Lease, Liability, Maturity	Future expected lease payments are shown below: As of June 30, 2023 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2023 $ 2,539 $ 1,148 $ 2,343 $ 602 $ 4,900 $ 1,750 2024 4,204 8,149 4,068 945 8,286 9,094 2025 3,232 7,428 3,070 770 6,304 8,198 2026 2,735 7,019 1,912 76 4,647 7,094 2027 1,577 7,023 748 — 2,325 7,023 Later years 1,229 17,510 81 — 1,310 17,510 Total minimum lease payments 15,516 48,277 12,222 2,393 27,772 50,669 Less: Imputed interest 1,302 7,060 715 126 2,017 7,186 Lease liabilities as of June 30, 2023 $ 14,214 $ 41,217 $ 11,507 $ 2,267 $ 25,755 $ 43,483
Finance Lease, Liability, Maturity	Future expected lease payments are shown below: As of June 30, 2023 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2023 $ 2,539 $ 1,148 $ 2,343 $ 602 $ 4,900 $ 1,750 2024 4,204 8,149 4,068 945 8,286 9,094 2025 3,232 7,428 3,070 770 6,304 8,198 2026 2,735 7,019 1,912 76 4,647 7,094 2027 1,577 7,023 748 — 2,325 7,023 Later years 1,229 17,510 81 — 1,310 17,510 Total minimum lease payments 15,516 48,277 12,222 2,393 27,772 50,669 Less: Imputed interest 1,302 7,060 715 126 2,017 7,186 Lease liabilities as of June 30, 2023 $ 14,214 $ 41,217 $ 11,507 $ 2,267 $ 25,755 $ 43,483

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The table below summarizes the nature and amount of related party transactions of PNMR, PNM, TNMP, and NMRD: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Services billings: PNMR to PNM $ 29,142 $ 28,378 $ 60,642 $ 56,071 PNMR to TNMP 11,333 10,252 23,727 20,556 PNM to TNMP 104 123 169 216 TNMP to PNMR 35 35 71 71 PNMR to NMRD 82 81 164 145 Renewable energy purchases: PNM from NMRD 3,748 3,801 6,109 6,422 Interconnection and facility study billings: PNM to NMRD — — — — PNM to PNMR — — — — NMRD to PNM — — — — Interest billings: PNMR to PNM 7 2 10 9 PNM to PNMR 143 47 273 70 PNMR to TNMP 117 72 128 117 Income tax sharing payments: PNMR to PNM — — — — TNMP to PNMR — — — —

Equity Method Investment (Table

Equity Method Investment (Tables)	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Marketable Securities	Summarized financial information for NMRD is as follows: Results of Operations Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Operating revenues $ 3,975 $ 4,021 $ 6,505 $ 6,817 Operating expenses 1,965 2,387 4,384 4,791 Net earnings $ 2,010 $ 1,634 $ 2,121 $ 2,026 Financial Position June 30, December 31, 2023 2022 (In thousands) Current assets $ 4,468 $ 8,357 Net property, plant, and equipment 200,071 169,440 Non-current assets 9,856 9,631 Total assets 214,395 187,428 Current liabilities 1,162 5,822 Non-current liabilities 373 366 Owners’ equity $ 212,860 $ 181,240

Significant Accounting Polici_3

Significant Accounting Policies and Responsibility for Financial Statements (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 01, 2023	Aug. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Payment defaults under agreements			$ 0		$ 0
Dividends declared per common share (dollars per share)		$ 0.3475	$ 0.3675	$ 0.3475	$ 0.7350	$ 0.6950
Subsequent event
Subsequent Event [Line Items]
Dividends declared per common share (dollars per share)	$ 0.3675

Segment Information - Summarize

Segment Information - Summarized Financial Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Apr. 01, 2020 USD ($)	Apr. 01, 2018 USD ($)
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Utility margin	181,627	170,186	368,338	324,426
Other operating expenses	133,235	140,973	258,461	272,845
Depreciation and amortization	79,139	76,769	157,213	152,533
Operating income	92,330	86,392	191,421	154,460
Interest income (expense)	5,359	3,327	10,202	7,619
Other income	5,862	(40,285)	12,904	(64,769)
Interest Charges	(45,899)	(29,217)	(86,822)	(55,437)
Earnings before Income Taxes	57,652	20,217	127,705	41,873
Income taxes (benefit)	8,229	1,094	18,009	3,532
Net Earnings (Loss)	49,423	19,123	109,696	38,341
Valencia non-controlling interest	(3,987)	(3,630)	(9,114)	(6,725)
Subsidiary preferred stock dividends	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	45,304	15,361	100,318	31,352
Total Assets	9,626,970	8,911,105	9,626,970	8,911,105	$ 9,257,377
Goodwill	278,297	278,297	$ 278,297	278,297	278,297
PNM
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	338,242	376,754	$ 768,407	715,463
Depreciation and amortization	44,064	45,981	87,750	91,771
Operating income	54,415	49,435	132,319	94,451
Interest Charges	(20,766)	(14,523)	(38,888)	(29,095)
Earnings before Income Taxes	42,714	(3,637)	114,378	4,724
Income taxes (benefit)	7,411	(1,182)	19,240	(359)
Net Earnings (Loss)	35,303	(2,455)	95,138	5,083
Valencia non-controlling interest	(3,987)	(3,630)	(9,114)	(6,725)
Subsidiary preferred stock dividends	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	31,184	(6,217)	85,760	(1,906)
Total Assets	6,440,357		6,440,357		6,272,166
Goodwill	51,632		$ 51,632		51,632		$ 51,600
TNMP
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	138,914	122,976	$ 252,826	228,385
Cost of energy	38,843	31,632	70,676	61,232
Depreciation and amortization	27,949	24,312	55,389	47,954
Operating income	38,727	38,000	60,514	62,242
Interest Charges	(11,412)	(9,016)	(21,837)	(18,166)
Earnings before Income Taxes	28,948	30,212	40,560	47,423
Income taxes (benefit)	4,316	4,161	5,895	6,312
Net Earnings (Loss)			34,665	41,111
Total Assets	2,916,206		2,916,206		2,746,601
Goodwill	226,665		226,665		$ 226,665	$ 226,700
PNM
Segment Reporting Information, Profit (Loss) [Abstract]
Utility margin	120,215	110,792	260,596	219,720
Other operating expenses	106,154	117,374	204,876	226,463
Depreciation and amortization	44,064	45,981	87,750	91,771
Operating income	54,415	49,435	132,319	94,451
Interest income (expense)	5,370	3,267	10,219	6,400
Other income	3,695	(41,816)	10,728	(67,032)
Interest Charges	(20,766)	(14,523)	(38,888)	(29,095)
Earnings before Income Taxes	42,714	(3,637)	114,378	4,724
Income taxes (benefit)	7,411	(1,182)	19,240	(359)
Net Earnings (Loss)	35,303	(2,455)	95,138	5,083
Valencia non-controlling interest	(3,987)	(3,630)	(9,114)	(6,725)
Subsidiary preferred stock dividends	(132)	(132)	(264)	(264)
Net Earnings (Loss) Available for PNM Common Stock	31,184	(6,217)	85,760	(1,906)
Total Assets	6,440,357	6,090,151	6,440,357	6,090,151
Goodwill	51,632	51,632	51,632	51,632
TNMP
Segment Reporting Information, Profit (Loss) [Abstract]
Utility margin	61,412	59,394	107,742	104,706
Other operating expenses	33,395	29,032	66,247	56,957
Depreciation and amortization	27,949	24,312	55,389	47,954
Operating income	38,727	38,000	60,514	62,242
Interest income (expense)	121	105	235	1,287
Other income	1,512	1,123	1,648	2,060
Interest Charges	(11,412)	(9,016)	(21,837)	(18,166)
Earnings before Income Taxes	28,948	30,212	40,560	47,423
Income taxes (benefit)	4,316	4,161	5,895	6,312
Net Earnings (Loss)	24,632	26,051	34,665	41,111
Valencia non-controlling interest	0	0	0	0
Subsidiary preferred stock dividends	0	0	0	0
Net Earnings (Loss) Available for PNM Common Stock	24,632	26,051	34,665	41,111
Total Assets	2,916,206	2,583,602	2,916,206	2,583,602
Goodwill	226,665	226,665	226,665	226,665
Corporate and Other
Segment Reporting Information, Profit (Loss) [Abstract]
Utility margin	0	0	0	0
Other operating expenses	(6,314)	(5,433)	(12,662)	(10,575)
Depreciation and amortization	7,126	6,476	14,074	12,808
Operating income	(812)	(1,043)	(1,412)	(2,233)
Interest income (expense)	(132)	(45)	(252)	(68)
Other income	655	408	528	203
Interest Charges	(13,721)	(5,678)	(26,097)	(8,176)
Earnings before Income Taxes	(14,010)	(6,358)	(27,233)	(10,274)
Income taxes (benefit)	(3,498)	(1,885)	(7,126)	(2,421)
Net Earnings (Loss)	(10,512)	(4,473)	(20,107)	(7,853)
Valencia non-controlling interest	0	0	0	0
Subsidiary preferred stock dividends	0	0	0	0
Net Earnings (Loss) Available for PNM Common Stock	(10,512)	(4,473)	(20,107)	(7,853)
Total Assets	270,407	237,352	270,407	237,352
Goodwill	0	0	0	0
Energy
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	477,156	499,730	1,021,233	943,848
Cost of energy	172,452	195,596	414,138	364,010
Utility margin	304,704	304,134	607,095	579,838
Energy | PNM
Segment Reporting Information, Profit (Loss) [Abstract]
Cost of energy	133,609	163,964	343,462	302,778
Energy | PNM
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	338,242	376,754	768,407	715,463
Cost of energy	133,609	163,964	343,462	302,778
Utility margin	204,633	212,790	424,945	412,685
Energy | TNMP
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	138,914	122,976	252,826	228,385
Cost of energy	38,843	31,632	70,676	61,232
Utility margin	100,071	91,344	182,150	167,153
Energy | Corporate and Other
Segment Reporting Information, Profit (Loss) [Abstract]
Electric operating revenues	0	0	0	0
Cost of energy	0	0	0	0
Utility margin	$ 0	$ 0	$ 0	$ 0

Segment Information - Schedule

Segment Information - Schedule of Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Gross margin	$ 181,627	$ 170,186	$ 368,338	$ 324,426
Transmission and distribution costs	25,465	21,156	47,661	39,622
Depreciation and amortization	72,013	70,293	143,139	139,725
Utility margin	304,704	304,134	607,095	579,838
Energy Production
Segment Reporting Information [Line Items]
Energy production costs	25,599	42,499	47,957	76,065
Public Service Company of New Mexico
Segment Reporting Information [Line Items]
Gross margin	120,215	110,792	260,596	219,720
Transmission and distribution costs	14,755	13,518	28,642	25,129
Depreciation and amortization	44,064	45,981	87,750	91,771
Utility margin	204,633	212,790	424,945	412,685
Public Service Company of New Mexico | Energy Production
Segment Reporting Information [Line Items]
Energy production costs	25,599	42,499	47,957	76,065
Texas-New Mexico Power Company
Segment Reporting Information [Line Items]
Gross margin	61,412	59,394	107,742	104,706
Transmission and distribution costs	10,710	7,638	19,019	14,493
Depreciation and amortization	27,949	24,312	55,389	47,954
Utility margin	100,071	91,344	182,150	167,153
Texas-New Mexico Power Company | Energy Production
Segment Reporting Information [Line Items]
Energy production costs	0	0	0	0
Corporate and Other
Segment Reporting Information [Line Items]
Gross margin	0	0	0	0
Transmission and distribution costs	0	0	0	0
Depreciation and amortization	0	0	0	0
Utility margin	0	0	0	0
Corporate and Other | Energy Production
Segment Reporting Information [Line Items]
Energy production costs	$ 0	$ 0	$ 0	$ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 2,264,802	$ 2,169,800	$ 2,244,926	$ 2,222,929
Total Other Comprehensive Income (Loss)	5,119	(245)	6,813	(4,889)
Ending balance	2,313,596	2,185,687	2,313,596	2,185,687
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(64,354)	(76,580)	(66,048)	(71,936)
Amounts reclassified from AOCI (pre-tax)			1,005	(550)
Income tax impact of amounts reclassified			(255)	140
Other OCI changes (pre-tax)			8,127	(6,004)
Income tax impact of other OCI changes			(2,064)	1,525
Total Other Comprehensive Income (Loss)	5,119	(245)	6,813	(4,889)
Ending balance	(59,235)	(76,825)	(59,235)	(76,825)
Fair Value Adjustment for Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			8,287	0
Amounts reclassified from AOCI (pre-tax)			1,197	(1,185)
Income tax impact of amounts reclassified			(304)	301
Other OCI changes (pre-tax)			3,567	3,448
Income tax impact of other OCI changes			(906)	(876)
Total Other Comprehensive Income (Loss)			3,554	1,688
Ending balance	11,841	1,688	11,841	1,688
PNM
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	2,017,995	2,013,794	1,960,324	2,015,264
Total Other Comprehensive Income (Loss)	(219)	(1,933)	3,259	(6,577)
Ending balance	2,047,702	2,005,541	2,047,702	2,005,541
PNM | Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(70,857)	(76,580)	(74,335)	(71,936)
Amounts reclassified from AOCI (pre-tax)			(192)	635
Income tax impact of amounts reclassified			49	(161)
Other OCI changes (pre-tax)			4,560	(9,452)
Income tax impact of other OCI changes			(1,158)	2,401
Total Other Comprehensive Income (Loss)	(219)	(1,933)	3,259	(6,577)
Ending balance	(71,076)	(78,513)	(71,076)	(78,513)
PNM | Unrealized Gains on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			7,422	11,715
Amounts reclassified from AOCI (pre-tax)			(2,580)	(2,917)
Income tax impact of amounts reclassified			655	741
Other OCI changes (pre-tax)			4,560	(9,452)
Income tax impact of other OCI changes			(1,158)	2,401
Total Other Comprehensive Income (Loss)			1,477	(9,227)
Ending balance	8,899	2,488	8,899	2,488
PNM | Pension Liability Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(81,757)	(83,651)
Amounts reclassified from AOCI (pre-tax)			2,388	3,552
Income tax impact of amounts reclassified			(606)	(902)
Other OCI changes (pre-tax)			0	0
Income tax impact of other OCI changes			0	0
Total Other Comprehensive Income (Loss)			1,782	2,650
Ending balance	$ (79,975)	$ (81,001)	$ (79,975)	$ (81,001)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Earnings Attributable to PNMR	$ 45,304	$ 15,361	$ 100,318	$ 31,352
Average Number of Common Shares:
Outstanding during period (in shares)	85,835	85,835	85,835	85,835
Vested awards of restricted stock (in shares)	250	351	258	303
Average Shares – Basic (in shares)	86,085	86,186	86,093	86,138
Dilutive Effect of Common Stock Equivalents:
Restricted stock (in shares)	39	40	38	60
PNMR 2020 Forward Equity Sale Agreements (in shares)	5	0	2	0
Average Shares – Diluted (in shares)	86,129	86,226	86,133	86,198
Net Earnings Per Share of Common Stock:
Basic (in dollars per share)	$ 0.53	$ 0.18	$ 1.17	$ 0.36
Diluted (in dollars per share)	$ 0.53	$ 0.18	$ 1.16	$ 0.36

Electric Operating Revenues - N

Electric Operating Revenues - Narrative (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) utility	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Number of regulated utilities | utility	2
Other receivables, allowance for credit loss, period increase	$ 0	$ 0
Contract assets	16,900,000		$ 11,900,000
PNM
Disaggregation of Revenue [Line Items]
Accounts receivable	$ 89,800,000		$ 151,400,000

Electric Operating Revenues - D

Electric Operating Revenues - Disaggregation of revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	$ 462,101	$ 488,136	$ 993,133	$ 929,653
Alternative revenue programs	12,467	2,579	17,226	(2,926)
Other electric operating revenue	2,588	9,015	10,874	17,121
Electric Operating Revenues	477,156	499,730	1,021,233	943,848
PNM
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	332,077	364,036	746,631	696,704
Alternative revenue programs	3,577	3,703	10,902	1,638
Other electric operating revenue	2,588	9,015	10,874	17,121
Electric Operating Revenues	338,242	376,754	768,407	715,463
TNMP
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	130,024	124,100	246,502	232,949
Alternative revenue programs	8,890	(1,124)	6,324	(4,564)
Other electric operating revenue	0	0	0	0
Electric Operating Revenues	138,914	122,976	252,826	228,385
Energy
Disaggregation of Revenue [Line Items]
Electric Operating Revenues	477,156	499,730	1,021,233	943,848
Energy | Residential
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	149,507	151,023	305,758	302,966
Energy | Commercial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	143,227	137,731	276,018	258,838
Energy | Industrial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	39,086	29,158	71,327	60,680
Energy | Public authority
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	6,974	6,305	13,011	12,256
Energy | Economy energy service
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	10,731	11,003	20,041	19,943
Energy | PNM | Residential
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	108,016	104,902	227,901	217,477
Energy | PNM | Commercial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	105,262	101,174	203,323	189,178
Energy | PNM | Industrial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	26,156	19,610	45,633	42,742
Energy | PNM | Public authority
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	5,305	4,744	9,723	9,170
Energy | PNM | Economy energy service
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	10,731	11,003	20,041	19,943
Energy | TNMP | Residential
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	41,491	46,121	77,857	85,489
Energy | TNMP | Commercial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	37,965	36,557	72,695	69,660
Energy | TNMP | Industrial
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	12,930	9,548	25,694	17,938
Energy | TNMP | Public authority
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	1,669	1,561	3,288	3,086
Energy | TNMP | Economy energy service
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0	0	0
Transmission
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	72,984	64,980	152,050	125,036
Transmission | PNM
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	37,922	35,659	86,930	70,186
Transmission | TNMP
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	35,062	29,321	65,120	54,850
Wholesale energy sales
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	37,308	85,645	150,294	145,336
Wholesale energy sales | PNM
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	37,308	85,645	150,294	145,336
Wholesale energy sales | TNMP
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0	0	0
Miscellaneous
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	2,284	2,291	4,634	4,598
Miscellaneous | PNM
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	1,377	1,299	2,786	2,672
Miscellaneous | TNMP
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	$ 907	$ 992	$ 1,848	$ 1,926

Variable Interest Entities (Det

Variable Interest Entities (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jan. 31, 2016 USD ($)
Results of Operations
Operating revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Operating expenses	384,826	413,338	829,812	789,388
Earnings attributable to non-controlling interest	3,987	3,630	9,114	6,725
Financial Position
Current assets	404,637		404,637		$ 410,978
Assets	9,626,970	8,911,105	9,626,970	8,911,105	9,257,377
Current liabilities	1,108,239		1,108,239		890,370
Owners’ equity – non-controlling interest	$ 51,353		$ 51,353		52,994
San Juan Generating Station | Coal supply
Variable Interest Entity [Line Items]
Cash used to support bank letter or credit arrangement						$ 30,300
PNM
Variable Interest Entity [Line Items]
Number of megawatts purchased (in megawatts) | MW	64.1		64.1
Results of Operations
Operating revenues	$ 338,242	376,754	$ 768,407	715,463
Operating expenses	283,827	327,319	636,088	621,012
Earnings attributable to non-controlling interest	3,987	3,630	9,114	6,725
Financial Position
Current assets	344,544		344,544		345,645
Assets	6,440,357		6,440,357		6,272,166
Current liabilities	840,543		840,543		692,155
Owners’ equity – non-controlling interest	51,353		51,353		52,994
PNM | Valencia
Variable Interest Entity [Line Items]
Payment for fixed costs	5,100	4,800	10,000	9,600
Payment for variable costs	1,100	300	$ 2,700	400
Long-term contract option to purchase, ownership percentage (up to)			50%
Long-term contract option to purchase, purchase price - percentage of adjusted NBV			50%
Long-term contract option to purchase, purchase price - percentage of FMV			50%
Results of Operations
Operating revenues	6,144	5,098	$ 12,748	10,030
Operating expenses	2,157	1,468	3,634	3,305
Earnings attributable to non-controlling interest	3,987	$ 3,630	9,114	$ 6,725
Financial Position
Current assets	3,577		3,577		3,429
Net property, plant, and equipment	48,673		48,673		50,094
Assets	52,250		52,250		53,523
Current liabilities	897		897		529
Owners’ equity – non-controlling interest	$ 51,353		$ 51,353		$ 52,994
PNM | Purchased through May 2028 | Valencia
Variable Interest Entity [Line Items]
Number of megawatts purchased (in megawatts) | MW	155		155

Fair Value of Derivative and _3

Fair Value of Derivative and Other Financial Instruments - Narrative (Details)		3 Months Ended			6 Months Ended
	Nov. 15, 2015 power_purchase_agreement	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)	Mar. 31, 2022 MW power_purchase_agreement	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2022 MW	Jan. 01, 2018 MW
Debt Securities, Available-for-sale [Line Items]
Number of purchase power agreements, non derivatives | power_purchase_agreement				2
Obligations to return cash							$ 200,000
PNM
Debt Securities, Available-for-sale [Line Items]
Number of purchase power agreements | power_purchase_agreement	2			3
Expected exposure to market risk (in megawatts) | MW		36			36			50	65
Amounts recognized for right to reclaim cash		$ 0			$ 0		0
Cash collateral under margin arrangements		900,000			900,000		10,500,000
(Increase)/decrease in other than temporary losses of available-for-sale securities, net portion recognized in earnings		1,400,000	$ (12,700,000)		3,400,000	$ (21,600,000)
PNM | Commodity derivatives | Designated as Hedging Instrument
Debt Securities, Available-for-sale [Line Items]
Other current assets		641,000			641,000		9,780,000
Current derivative liability		$ 22,917,000			$ 22,917,000		19,209,000
PNM | Portfolio One
Debt Securities, Available-for-sale [Line Items]
Number of megawatts available in purchase power agreement (in megawatts) | MW		85		85
PNM | Portfolio Two
Debt Securities, Available-for-sale [Line Items]
Number of megawatts available in purchase power agreement (in megawatts) | MW				40	375
PNM | Portfolio Three
Debt Securities, Available-for-sale [Line Items]
Number of megawatts available in purchase power agreement (in megawatts) | MW				150
PNM | Fuel and purchased power costs | Commodity derivatives | Designated as Hedging Instrument
Debt Securities, Available-for-sale [Line Items]
Other current assets							9,800,000
Current derivative liability							19,200,000
PNM | Tri-State
Debt Securities, Available-for-sale [Line Items]
Power to be sold to third party (in megawatts) | MW								100
PNM | Recurring
Debt Securities, Available-for-sale [Line Items]
Available-for-sale debt securities		$ 433,192,000			$ 433,192,000		417,476,000
Nuclear Decommissioning Trust | PNM | Recurring
Debt Securities, Available-for-sale [Line Items]
Available-for-sale debt securities		342,700,000			342,700,000		325,300,000
SJGS Decommissioning Trust | PNM | Recurring
Debt Securities, Available-for-sale [Line Items]
Available-for-sale debt securities		15,100,000			15,100,000		14,700,000
Mine Reclamation Trust | PNM | Recurring
Debt Securities, Available-for-sale [Line Items]
Available-for-sale debt securities		$ 75,400,000			$ 75,400,000		$ 77,500,000

Fair Value of Derivative and _4

Fair Value of Derivative and Other Financial Instruments - Overview and Commodity Derivatives (Details) - PNM - Designated as Hedging Instrument - Commodity derivatives - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Other current assets	$ 641	$ 9,780
Other current liabilities	(22,917)	(19,209)
Net	$ (22,276)	$ (9,429)

Fair Value of Derivative and _5

Fair Value of Derivative and Other Financial Instruments - Schedule of Commodity Contract Volume Positions (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2023 MMBTU	Mar. 31, 2023 MWh	Jun. 30, 2023 MMBTU	Jun. 30, 2023 MWh
Commodity derivatives | Designated as Hedging Instrument | Public Service Company of New Mexico
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Economic Hedges (in mmbtu and mwh)	0	432,200	155,000	471,415

Fair Value of Derivative and _6

Fair Value of Derivative and Other Financial Instruments - Schedule of Commodity Contract Contingent Consideration (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Contractual Liability	$ 26,190,000	$ 15,288,000
Existing Cash Collateral	0	0
Net Exposure	$ 22,743,000	$ 13,087,000

Fair Value of Derivative and _7

Fair Value of Derivative and Other Financial Instruments - Investments in NDT and Gross Realized Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity securities:
Net gains (losses) from equity securities sold	$ 2,792	$ (1,061)	$ 1,947	$ 3,945
Net gains (losses) from equity securities still held	1,142	(26,224)	8,619	(48,259)
Total net gains (losses) on equity securities	3,934	(27,285)	10,566	(44,314)
Available-for-sale debt securities:
Net (losses) on debt securities	(157)	(14,510)	(347)	(24,054)
Net gains (losses) on investment securities	$ 3,777	$ (41,795)	$ 10,219	$ (68,368)

Fair Value Measures and Disclos

Fair Value Measures and Disclosures - Gross Realized (Losses) (Details) - PNM - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Proceeds from sales	$ 183,566	$ 105,634	$ 274,777	$ 230,880
Gross realized gains	7,014	7,545	10,442	17,723
Gross realized (losses)	$ (5,741)	$ (10,361)	$ (12,212)	$ (16,201)

Fair Value of Derivative and _8

Fair Value of Derivative and Other Financial Instruments - Maturities of Debt Securities (Details) - PNMR and PNM $ in Thousands	Jun. 30, 2023 USD ($)
Available-for-Sale
Within 1 year	$ 72,289
After 1 year through 5 years	67,056
After 5 years through 10 years	67,886
After 10 years through 15 years	20,197
After 15 years through 20 years	12,169
After 20 years	38,128
Available-for-sale debt securities	$ 277,725

Fair Value of Derivative and _9

Fair Value of Derivative and Other Financial Instruments - Items Recorded and Presented by Level of Hierarchy (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 3,996,151	$ 3,726,195
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	4,349,963	4,077,387
PNM
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	1,928,350	1,789,186
PNM | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	2,144,735	2,000,900
TNMP
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	1,067,801	937,009
TNMP | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	1,206,160	1,076,875
Recurring | PNM
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	433,192	417,476
Investments, unrealized gain	11,966	9,986
Recurring | PNM | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	186,558	219,740
Recurring | PNM | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	246,634	197,736
Recurring | PNM | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	21,511	66,843
Recurring | PNM | Cash and cash equivalents | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	21,511	66,843
Recurring | PNM | Cash and cash equivalents | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Recurring | PNM | Corporate stocks, common
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	74,375	40,103
Recurring | PNM | Corporate stocks, common | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	74,375	40,103
Recurring | PNM | Corporate stocks, common | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Recurring | PNM | Corporate stocks, preferred
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	4,906	5,191
Recurring | PNM | Corporate stocks, preferred | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	752	790
Recurring | PNM | Corporate stocks, preferred | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	4,154	4,401
Recurring | PNM | Mutual funds and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	54,675	66,359
Recurring | PNM | Mutual funds and other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	54,675	66,359
Recurring | PNM | Mutual funds and other | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Recurring | PNM | U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	35,550	45,905
Investments, unrealized gain	1,490	1,334
Recurring | PNM | U.S. government | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	35,245	45,645
Recurring | PNM | U.S. government | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	305	260
Recurring | PNM | International government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	10,833	9,762
Investments, unrealized gain	1,428	1,117
Recurring | PNM | International government | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Recurring | PNM | International government | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	10,833	9,762
Recurring | PNM | Municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	46,693	43,136
Investments, unrealized gain	1,051	1,062
Recurring | PNM | Municipals | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Recurring | PNM | Municipals | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	46,693	43,136
Recurring | PNM | Corporate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	184,649	140,177
Investments, unrealized gain	7,997	6,473
Recurring | PNM | Corporate and other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities		0
Recurring | PNM | Corporate and other | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	$ 184,649	$ 140,177

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) shares
Restricted Shares and Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense related to stock awards | $	$ 6.8
Period of time stock expense is expected to be recognized	2 years 2 months 12 days
Executive | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares awarded in year two (in shares)	143,837
Maximum number of shares awarded in year three (in shares)	149,898
Maximum number of shares awarded in year four (in shares)	141,885
Performance period	3 years
Executive | Performance Shares | Achieved Performance Target For 2019 Through 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares awarded in year one (in shares)	100,991
Performance Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Vesting rate	100%
Performance Equity Plan | Non-employee Members of the Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restricted Shares and Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected quarterly dividends per share (in dollars per share)	$ 0.3675	$ 0.3475
Risk-free interest rate	4.46%	1.46%
Restricted Stock
Restricted Stock, Shares
Outstanding at beginning of period (in shares)	182,446
Granted (in shares)	194,453
Exercised (in shares)	(197,120)
Forfeited (in shares)	(1,222)
Outstanding at end of period (in shares)	178,557
Restricted Stock, Weighted- Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 42.09
Granted (in dollars per share)	45	$ 41.04
Exercised (in dollars per share)	43.99
Forfeited (in dollars per share)	42.57
Outstanding at end of period (in dollars per share)	43.31
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-average grant date fair value (in dollars per share)	$ 45	$ 41.04
Total fair value of restricted shares that vested	$ 9,622	$ 7,782

Financing - Financing Activitie

Financing - Financing Activities (Details)

3 Months Ended

6 Months Ended

Jun. 30, 2023 USD ($)

May 13, 2023 USD ($)

Nov. 10, 2022 USD ($)

Jun. 30, 2023 USD ($) $ / shares shares

Mar. 31, 2023 $ / shares shares

Jun. 30, 2023 USD ($)

Jun. 30, 2022 USD ($)

Jun. 01, 2023 USD ($)

May 16, 2023 USD ($)

Apr. 28, 2023 USD ($) bond debtInstrument

Dec. 31, 2022 USD ($)

Jun. 01, 2022 USD ($) bond

Apr. 27, 2022 USD ($) bond

Dec. 31, 2021 USD ($)

Debt Instrument [Line Items]

Repayments of long-term debt

$ 685,000,000

$ 104,500,000

Fair value of hedge agreements

$ 15,900,000

$ 15,900,000

15,900,000

Bank Of America, N.A.

Debt Instrument [Line Items]

Forward sale agreement (in shares) | shares

504,452

Forward sale agreement (in dollars per share) | $ / shares

$ 48.49

Wells Fargo Bank, N.A.

Debt Instrument [Line Items]

Forward sale agreement (in shares) | shares

528,082

Forward sale agreement (in dollars per share) | $ / shares

$ 48.30

MUFG Securities EMEA plc

Debt Instrument [Line Items]

Forward sale agreement (in shares) | shares

1,049,116

Forward sale agreement (in dollars per share) | $ / shares

$ 45.49

Other Current Assets

Debt Instrument [Line Items]

Fair value of hedge agreements

8,100,000

$ 8,100,000

8,100,000

Other Deferred Costs Net Including Deferred Finance Costs

Debt Instrument [Line Items]

Fair value of hedge agreements

$ 7,800,000

$ 7,800,000

$ 7,800,000

At-The-Market

Debt Instrument [Line Items]

Distribution agreement

$ 200,000,000

PNM 3.15% Senior Unsecured Notes, Due May 2023

Debt Instrument [Line Items]

Repayments of long-term debt

$ 55,000,000

PNM

Debt Instrument [Line Items]

Maturity term over which financings require regulator approval (more than)

18 months

Repayments of long-term debt

$ 185,000,000

$ 104,500,000

Number of debt issuances | bond

2

Line of credit

Debt Instrument [Line Items]

Ratio of debt to capital (less than or equal to)

70%

Line of credit | PNM and TNMP

Debt Instrument [Line Items]

Ratio of debt to capital (less than or equal to)

65%

Bonds | PCRB 1.10%, Due June 2040

Debt Instrument [Line Items]

Aggregate principal amount

$ 130,000,000

Stated interest rate

1.10%

Bonds | PCRB 3.90%, Due June 2028

Debt Instrument [Line Items]

Aggregate principal amount

$ 130,000,000

Stated interest rate

3.90%

Bonds | PNMR 2021 Delayed-Draw Term Loan

Debt Instrument [Line Items]

Variable interest rate

6.15%

6.15%

6.15%

Bonds | PNMR 2023 Delayed-Draw Term Loan

Debt Instrument [Line Items]

Variable interest rate

6.55%

6.55%

6.55%

Bonds | PNM | PCRB's

Debt Instrument [Line Items]

Long-term debt

$ 31,500,000

$ 104,500,000

Bonds | PNM | PCRB, 1.05%, Due January 2038

Debt Instrument [Line Items]

Stated interest rate

1.05%

Long-term debt

$ 36,000,000

Bonds | PNM | PCRB, 2.125% Due June 2040

Debt Instrument [Line Items]

Stated interest rate

2.125%

Long-term debt

$ 37,000,000

Bonds | PNM | PCRB, 1.20% Due June 2040

Debt Instrument [Line Items]

Stated interest rate

1.20%

Long-term debt

$ 11,500,000

Bonds | PNM | PCRB, 2.45% Due September 2042

Debt Instrument [Line Items]

Stated interest rate

2.45%

Long-term debt

$ 20,000,000

Bonds | PNM | PCRB, 3.00% Due June 2024 (1)

Debt Instrument [Line Items]

Aggregate principal amount

$ 36,000,000

Stated interest rate

3%

Bonds | PNM | PCRB, 3.00% Due June 2024 (2)

Debt Instrument [Line Items]

Aggregate principal amount

$ 37,000,000

Stated interest rate

3%

Bonds | PNM | PNM 2021 75 Million Term Loan

Debt Instrument [Line Items]

Variable interest rate

5.99%

5.99%

5.99%

Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement

Debt Instrument [Line Items]

Aggregate principal amount

$ 160,000,000

Debt instrument, series of bond issuance | bond

2

Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement at 4.13% Due May 12, 2022

Debt Instrument [Line Items]

Aggregate principal amount

$ 65,000,000

Stated interest rate

4.13%

Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement at 3.81% Due July 28, 2032

Debt Instrument [Line Items]

Aggregate principal amount

$ 95,000,000

Stated interest rate

3.81%

Unsecured Debt | PNM, Due May 2026

Debt Instrument [Line Items]

Aggregate principal amount

$ 650,000,000

Unsecured Debt | PNM 3.15% Senior Unsecured Notes, Due May 2023

Debt Instrument [Line Items]

Stated interest rate

3.15%

Unsecured Debt | PNM | PNM 3.15% Senior Unsecured Notes, Due May 2023

Debt Instrument [Line Items]

Aggregate principal amount

$ 55,000,000

Unsecured Debt | PNM | PNM 2023 Note Purchase Agreement

Debt Instrument [Line Items]

Aggregate principal amount

$ 200,000,000

Number of debt issuances | debtInstrument

2

Unsecured Debt | PNM | PNM 2023 SUNs At 5.1%, Due April 28, 2035

Debt Instrument [Line Items]

Aggregate principal amount

$ 150,000,000

Stated interest rate

5.51%

Unsecured Debt | PNM | PNM 2023 SUNs At 5.92%, Due April 28, 2053

Debt Instrument [Line Items]

Aggregate principal amount

$ 50,000,000

Stated interest rate

5.92%

Secured Debt | PNM 2023 Term Loan

Debt Instrument [Line Items]

Aggregate principal amount

$ 500,000,000

$ 500,000,000

$ 500,000,000

Variable rate

6.55%

Secured Debt | PNM | TNMP 2023 Bond Purchase Agreement

Debt Instrument [Line Items]

Debt instrument, series of bond issuance | bond

2

Secured Debt | Texas-New Mexico Power Company | TNMP 2023 Bond Purchase Agreement

Debt Instrument [Line Items]

Aggregate principal amount

$ 185,000,000

Secured Debt | Texas-New Mexico Power Company | TNMP 2023 Bond Purchase Agreement At 5.01%, Due April 28, 2033

Debt Instrument [Line Items]

Aggregate principal amount

$ 130,000,000

Stated interest rate

5.01%

Secured Debt | Texas-New Mexico Power Company | TNMP 2023 Bond Purchase Agreement At 5.47%, Due July 28, 2053

Debt Instrument [Line Items]

Aggregate principal amount

$ 55,000,000

Stated interest rate

5.47%

Financing - Short-term Debt and

Financing - Short-term Debt and Liquidity (Details)	Jan. 26, 2023 USD ($) extension_option	May 20, 2022 USD ($) extension_option	Mar. 11, 2022 USD ($) extension_option	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	May 13, 2022 USD ($)	Mar. 10, 2022 USD ($)
Short-term Debt [Line Items]
Letters of credit outstanding				$ 3,100,000
PNMR Development
Short-term Debt [Line Items]
Notes payable				0	$ 5,300,000
Revolving credit facility | PNM 2022 Delayed-Draw Term Loan | Line of credit
Short-term Debt [Line Items]
Financing capacity							$ 225,000,000
PNMR Revolving Credit Facility
Short-term Debt [Line Items]
Financing capacity	$ 285,000,000
PNMR Revolving Credit Facility | WEB LOC Facility
Short-term Debt [Line Items]
Letters of credit outstanding				30,300,000
PNM
Short-term Debt [Line Items]
Letters of credit outstanding				0
PNM | PNMR
Short-term Debt [Line Items]
Notes payable				0
PNM | Lines of credit
Short-term Debt [Line Items]
NMPRC approved credit facility		$ 40,000,000
PNM | PNM Revolving Credit Facility
Short-term Debt [Line Items]
Financing capacity	$ 380,000,000
TNMP
Short-term Debt [Line Items]
Letters of credit outstanding				0
TNMP | PNMR
Short-term Debt [Line Items]
Notes payable				$ 0
TNMP | PNM Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, interest rate at period end				6.48%
TNMP | PNM New Mexico Credit Facility
Short-term Debt [Line Items]
Line of credit facility, interest rate at period end				6.44%
TNMP | TNMP Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, interest rate at period end				6.10%
PNMR Development | PNMR
Short-term Debt [Line Items]
Notes payable				$ 9,500,000
PNMR Development | PNMR Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, interest rate at period end				6.71%
Revolving credit facility
Short-term Debt [Line Items]
Financing capacity				$ 300,000,000
Number of extensions | extension_option		2
Extension period		1 year
Revolving credit facility | PNM
Short-term Debt [Line Items]
Financing capacity				$ 400,000,000
Number of extensions exercised | extension_option	1
Extension period exercised	1 year
Revolving credit facility | TNMP
Short-term Debt [Line Items]
Financing capacity			$ 100,000,000			$ 100,000,000	75,000,000
Number of extensions | extension_option			2
Extension period	1 year		1 year
Number of extensions exercised | extension_option	1
Extension period exercised	1 year
Revolving credit facility | TNMP | First mortgage bonds
Short-term Debt [Line Items]
Collateral amount						$ 100,000,000
Senior Notes | PNM
Short-term Debt [Line Items]
Financing capacity							$ 198,000,000
TNMP Revolving Credit Facility | TNMP
Short-term Debt [Line Items]
Financing capacity			$ 75,000,000
TNMP Revolving Credit Facility | TNMP | First mortgage bonds
Short-term Debt [Line Items]
Collateral amount			$ 75,000,000

Financing - Schedule of Hedging

Financing - Schedule of Hedging Arrangements (Details) - Designated as Hedging Instrument - Interest rate contract $ in Thousands	Jun. 30, 2023 USD ($)
Variable Rate Debt, 4.57%, Due September 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 150,000
Fixed interest rate	4.57%
Variable Rate Debt, 4.65%, Due December 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	4.65%
Variable Rate Debt, 4.66%, Due December 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	4.66%
Variable Rate Debt, 4.17% Due December 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	4.17%
Variable Rate Debt, 4.18%, Due December 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	4.18%
Variable Rate Debt, 2.52%, Due December 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	2.52%
Variable Rate Debt, 2.65% Due December 2023 (1)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 150,000
Fixed interest rate	2.65%
Variable Rate Debt, 2.65%, Due December 2023 (2)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 200,000
Fixed interest rate	2.65%
Variable Rate Debt, 3.32%, Due December 2024 (1)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	3.32%
Variable Rate Debt, 3.32%, Due December 2024 (2)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	3.32%
Variable Rate Debt, 3.38%, Due December 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 100,000
Fixed interest rate	3.38%
Variable Rate Debt, 3.62%, Due December 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 150,000
Fixed interest rate	3.62%
Variable Rate Debt, 3.57%, Due December 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 150,000
Fixed interest rate	3.57%

Financing - Schedule of Short-T

Financing - Schedule of Short-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Short-term debt	$ 326,500	$ 232,000
PNM
Short-term Debt [Line Items]
Short-term debt	131,600	185,900
Texas-New Mexico Power Company
Short-term Debt [Line Items]
Short-term debt	37,100	36,700
PNM Revolving Credit Facility | PNM
Short-term Debt [Line Items]
Short-term debt	111,600	145,900
PNM New Mexico Credit Facility | PNM
Short-term Debt [Line Items]
Short-term debt	20,000	40,000
TNMP Revolving Credit Facility | Texas-New Mexico Power Company
Short-term Debt [Line Items]
Short-term debt	37,100	36,700
PNMR Revolving Credit Facility
Short-term Debt [Line Items]
Short-term debt	$ 157,800	$ 9,400

Pension and Other Postretirem_3

Pension and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
PNM | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	5,914	4,214	11,827	8,428
Expected return on plan assets	(7,299)	(7,141)	(14,598)	(14,282)
Amortization of net loss	2,645	3,949	5,291	7,898
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	1,260	1,022	2,520	2,044
PNM | OPEB Plan
Components of Net Periodic Benefit Cost
Service cost	0	2	0	4
Interest cost	676	479	1,352	958
Expected return on plan assets	(1,243)	(1,088)	(2,485)	(2,176)
Amortization of net loss	0	0	0	0
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	(567)	(607)	(1,133)	(1,214)
PNM | Executive Retirement Program
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	135	90	270	180
Expected return on plan assets	0	0	0	0
Amortization of net loss	38	82	76	164
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	173	172	346	344
Texas-New Mexico Power Company | Pension Plan
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	600	430	1,201	860
Expected return on plan assets	(675)	(618)	(1,349)	(1,236)
Amortization of net loss	109	233	219	466
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	34	45	71	90
Texas-New Mexico Power Company | OPEB Plan
Components of Net Periodic Benefit Cost
Service cost	6	9	11	18
Interest cost	107	77	213	154
Expected return on plan assets	(121)	(104)	(241)	(208)
Amortization of net loss	(190)	(130)	(380)	(260)
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	(198)	(148)	(397)	(296)
Texas-New Mexico Power Company | Executive Retirement Program
Components of Net Periodic Benefit Cost
Service cost	0	0	0	0
Interest cost	3	3	6	6
Expected return on plan assets	0	0	0	0
Amortization of net loss	0	0	0	0
Amortization of prior service cost	0	0	0	0
Net Periodic Benefit Cost (Income)	$ 3	$ 3	$ 6	$ 6

Pension and Other Postretirem_4

Pension and Other Postretirement Benefit Plans - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pension Plan | PNM
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			$ 0	$ 0
Estimated employer contributions for remainder of fiscal year through year four	$ 0		0
Estimated future contributions, year five	400,000		$ 400,000
Pension Plan | PNM | Maximum
Defined Benefit Plan Disclosure [Line Items]
Assumptions used calculating net periodic benefit cost, discount rate			5.70%
Pension Plan | Texas-New Mexico Power Company
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			$ 0	0
Estimated employer contributions for remainder of fiscal year through year four	0		$ 0
Pension Plan | Texas-New Mexico Power Company | Maximum
Defined Benefit Plan Disclosure [Line Items]
Assumptions used calculating net periodic benefit cost, discount rate			5.80%
OPEB Plan | PNM
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			$ 0	0
Disbursements by employer	100,000	$ 900,000	100,000	1,800,000
Disbursements by employer, year one through four			9,000,000
Estimated disbursement by employer, current year			200,000
OPEB Plan | Texas-New Mexico Power Company
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	0	0	0	0
Disbursements by employer, year one through four			0
Executive Retirement Program | PNM
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	200,000	300,000	600,000	600,000
Disbursements by employer, year one through four			4,500,000
Estimated disbursement by employer, current year			1,300,000
Executive Retirement Program | Texas-New Mexico Power Company
Defined Benefit Plan Disclosure [Line Items]
Disbursements by employer, year one through four			200,000
Estimated disbursement by employer, current year			100,000
Executive Retirement Program | Texas-New Mexico Power Company | Maximum
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	$ 0	$ 0	$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Nuclear Spent Fuel and Waste Disposal (Details) - PNM - Nuclear spent fuel and waste disposal - Palo Verde Nuclear Generating Station - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Public Utilities, Commitments And Contingencies [Line Items]
Estimate of possible loss	$ 59.6
Other deferred credits
Public Utilities, Commitments And Contingencies [Line Items]
Loss contingency accrual	$ 11.4	$ 12

Commitments and Contingencies_2

Commitments and Contingencies - Santa Fe Generating Station (Details)			24 Months Ended
	Jul. 20, 2020 numberOfAMIMeter	Jan. 01, 2020 numberOfAMIMeter	Dec. 31, 2014 monitoringWell
Commitments and Contingencies Disclosure [Abstract]
Number of field work reports | numberOfAMIMeter	2	2
Number of monitoring wells containing free-phase hydrocarbon products | monitoringWell			1

Commitments and Contingencies_3

Commitments and Contingencies - Coal Supply (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jan. 31, 2016
PNM | Loss on long-term purchase commitment | Surface
Public Utilities, Commitments And Contingencies [Line Items]
Loss contingency accrual	$ 56,600,000	$ 62,600,000
PNM | Loss on long-term purchase commitment | Underground
Public Utilities, Commitments And Contingencies [Line Items]
Loss contingency accrual	28,600,000	28,200,000
PNM | Loss on long-term purchase commitment | San Juan Generating Station | Surface
Public Utilities, Commitments And Contingencies [Line Items]
Estimate of possible loss	60,900,000
PNM | Loss on long-term purchase commitment | San Juan Generating Station | Underground
Public Utilities, Commitments And Contingencies [Line Items]
Estimate of possible loss	33,300,000
Coal supply | San Juan Generating Station
Public Utilities, Commitments And Contingencies [Line Items]
Cash used to support bank letter or credit arrangement			$ 30,300,000
Coal supply | Four Corners
Public Utilities, Commitments And Contingencies [Line Items]
Payments for relief from obligations	75,000,000
Coal supply | NM Capital | San Juan Generating Station
Public Utilities, Commitments And Contingencies [Line Items]
Requirement to post reclamation bonds	118,700,000
Cash used to support bank letter or credit arrangement	30,300,000
Four Corners CSA | PNM
Public Utilities, Commitments And Contingencies [Line Items]
Funds contributed, mine reclamation trust		2,400,000
Reclamation trust funding, remainder of year	200,000
San Juan Generating Station | Loss on long-term purchase commitment | PNM
Public Utilities, Commitments And Contingencies [Line Items]
Annual funding post-term reclamation trust		$ 10,000,000
Annual funding post-term reclamation trust, remainder of year	0
Annual funding post-term reclamation trust, year one	0
Annual funding post-term reclamation trust, year two	0
San Juan Generating Station and Four Corners | Mine Reclamation Trust | PNM
Public Utilities, Commitments And Contingencies [Line Items]
Customer reclamation funding cost	$ 100,000,000

Commitments and Contingencies_4

Commitments and Contingencies - San Juan County Decommissioning Ordinance (Details) - San Juan Generating Station - Coal-Fired Electricity Generating Facility Demolition And Remediation Ordinance - Public Service Company of New Mexico - USD ($) $ in Millions	Nov. 09, 2021	Sep. 30, 2022
Public Utilities, Commitments And Contingencies [Line Items]
Initial funding requirement	$ 14.7
Surety bond	$ 46
Decrease in decommissioning obligation		$ 21.1

Commitments and Contingencies_5

Commitments and Contingencies - PVNGS Liability and Insurance Matters, Navajo Nation Allottee Matters and Texas Winter Storm (Details)		3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 29, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) generatingUnit lawsuit	Dec. 31, 2012 landOwner	Dec. 01, 2015 allotment_parcel	Jul. 13, 2015 a	Jan. 22, 2015 allotment_parcel	Dec. 31, 2014 allotment_parcel
PNM
Public Utilities, Commitments And Contingencies [Line Items]
Payments for legal settlements	$ 19,800,000
PNM | Navajo Nation Allottee Matters
Public Utilities, Commitments And Contingencies [Line Items]
Number of landowners involved in the appeal | landOwner				43
Number of allotments where landowners are revoking rights of way renewal consents (in allotment parcels) | allotment_parcel					2		10	6
Area of land (in acres) | a						15.49
Number of allotment parcels at issue that are not to be condemned | allotment_parcel					2
Number of allotment parcels at issue | allotment_parcel					5
Payments for legal settlements		$ 1,500,000
PNM | Palo Verde Nuclear Generating Station | Nuclear plant
Public Utilities, Commitments And Contingencies [Line Items]
Number of units | generatingUnit			3
Maximum potential assessment per incident			$ 31,200,000
Annual payment limitation related to incident			4,700,000
Aggregate amount of all risk insurance			2,800,000,000
Maximum amount under nuclear electric insurance limited			5,100,000
PNM | Maximum | Palo Verde Nuclear Generating Station | Nuclear plant
Public Utilities, Commitments And Contingencies [Line Items]
Liability insurance coverage			13,700,000,000
Liability insurance coverage sublimit			$ 2,250,000,000
Texas-New Mexico Power Company
Public Utilities, Commitments And Contingencies [Line Items]
New claims filed | lawsuit			22
Regulatory asset, allowance for credit loss		$ 800,000	$ 800,000
Commercial providers | PNM | Palo Verde Nuclear Generating Station | Nuclear plant
Public Utilities, Commitments And Contingencies [Line Items]
Liability insurance coverage			450,000,000
Industry Wide Retrospective Assessment Program | PNM | Palo Verde Nuclear Generating Station | Nuclear plant
Public Utilities, Commitments And Contingencies [Line Items]
Liability insurance coverage			$ 13,200,000,000

Regulatory and Rate Matters - P

Regulatory and Rate Matters - PNM (Details) $ in Millions

3 Months Ended

6 Months Ended

Jun. 01, 2023 USD ($)

Apr. 17, 2023 USD ($) program

Apr. 15, 2023 USD ($)

Jan. 03, 2023 USD ($)

Jan. 01, 2023 USD ($)

Dec. 05, 2022 USD ($) MW

Apr. 15, 2020 USD ($) MMBTU program

Jun. 30, 2023 USD ($) $ / MWh MW

Jun. 30, 2022 USD ($)

Jun. 30, 2023 USD ($) lease $ / MWh MW

Jun. 30, 2022 USD ($)

Dec. 31, 2021 GWh

Public Utilities, Commitments And Contingencies [Line Items]

Excess return on jurisdictional equity that would require refund

0.50%

0.50%

Return on equity

10.173%

Approved return on equity

10.075%

Allowed return on equity

9.575%

Allowed return on equity, additional

0.50%

PNM

Public Utilities, Commitments And Contingencies [Line Items]

Approved equity capital structure

52%

Approved debt capital structure

48%

Number of leases renewed | lease

5

Number of megawatts purchased (in megawatts) | MW

64.1

64.1

Non-recurring costs

$ 98.3

Renewable Portfolio Standard | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Number of megawatts of Solar PV facilities | MW

158

158

Current output in the geothermal facility (in megawatts) | MW

11

11

Solar generation capacity (in megawatts) | MW

261.6

261.6

Energy Efficiency and Load Management Program | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Program costs related to energy efficiency, number of programs | program

12

Program costs related to energy efficiency, in year one

$ 31.4

Program costs related to energy efficiency, in year two

31

Program costs related to energy efficiency, in year three

$ 29.6

Energy efficiency and load management programs targeted energy savings (in Gigawatts) | MMBTU

94

2024 Plan | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Program costs related to energy efficiency, number of programs | program

10

Program costs related to energy efficiency, in year one

$ 34.5

Program costs related to energy efficiency, in year two

35.4

Program costs related to energy efficiency, in year three

$ 36.5

Integrated Resource Plan, 2011 | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Frequency of IRP filings

3 years

Planning period covered of IRP

20 years

NM 2022 Rate Case | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Recovery of base rate

$ 2,700

Revenue deficiency driver, years of operation

6 years

Leased PVNGS capacity, expiration | MW

114

NM 2022 Rate Case | PNM | Non-Fuel Energy

Public Utilities, Commitments And Contingencies [Line Items]

Requested rate increase (decrease)

$ 63.8

NMPRC

Public Utilities, Commitments And Contingencies [Line Items]

Requested return on equity

10.25%

Action plan, covered period

4 years

NMPRC | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Proposed revision to rider that will allow for recovery

$ 59

$ 61

NMPRC | Renewable Energy Rider | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Recorded revenues from renewable rider

$ 15.4

$ 17.4

$ 34

$ 31.8

Minimum | Renewable Portfolio Standard | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Energy efficiency and load management programs targeted energy savings (in Gigawatts) | MMBTU

80

Minimum | Energy Efficiency and Load Management Program | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Profit incentive sliding scale multiplier

0.071

0.071

Maximum | Renewable Portfolio Standard | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Reasonable cost threshold in megawatts per hour | $ / MWh

60

60

Maximum | Energy Efficiency and Load Management Program | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Profit incentive sliding scale multiplier

0.1073

New Mexico Wind | Renewable Portfolio Standard 2014 | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Number of megawatts for wind energy | MW

200

Red Mesa Wind | Renewable Portfolio Standard 2014 | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Number of megawatts for wind energy | MW

102

La Joya Wind | Renewable Portfolio Standard | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Number of megawatts for wind energy | MW

140

Disincentives and Incentives Added | 2020 Energy Efficiency Annual Report | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Energy efficiency and load management programs additional incentive targeted energy savings (in Gigawatts) | GWh

94

Disincentives and Incentives Added | 2021 Energy Efficiency Annual Report | PNM

Public Utilities, Commitments And Contingencies [Line Items]

Energy efficiency and load management programs

$ 0.3

Regulatory and Rate Matters - S

Regulatory and Rate Matters - SJGS Abandonment Application, Fours Corners, PVNGS Leased Interest Abandonment Application, Summer Peak Resource Adequacy, COVID and Transportation Electrification Program (Details) $ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

Jul. 18, 2023 MW

Jan. 30, 2023 MW

Dec. 05, 2022 MW

Oct. 03, 2022 USD ($)

Sep. 08, 2022

Jul. 29, 2022 USD ($)

Jul. 19, 2022 MW

Jun. 17, 2022 USD ($)

Jan. 08, 2021 USD ($)

Nov. 01, 2020 USD ($)

Jul. 10, 2019 proceeding

Jul. 01, 2019 USD ($)

Nov. 15, 2015 numberOfAMIMeter batteryStorageAgreement power_purchase_agreement

Nov. 30, 2020 USD ($)

Jun. 30, 2023 USD ($)

Mar. 31, 2022 power_purchase_agreement

Jun. 30, 2023 USD ($)

Mar. 31, 2023 MW

Dec. 31, 2022 USD ($)

Sep. 02, 2022 MW

Feb. 14, 2022 MW

Apr. 02, 2021 lease MW

Feb. 21, 2020 USD ($)

Public Utilities, General Disclosures [Line Items]

Regulatory disallowance

$ 3,700

Decrease in undepreciated leasehold improvements

88,200

$ 88,200

Increase in deferred regulatory assets

88,200

88,200

Regulatory assets

932,294

932,294

$ 846,686

Regulatory liabilities

766,343

766,343

755,202

PNM

Public Utilities, General Disclosures [Line Items]

Payments for legal settlements

$ 19,800

Loss contingency

77,800

77,800

Regulatory disallowance

3,700

Number of leases under which lease term was extended | lease

5

Number of purchase power agreements | power_purchase_agreement

2

3

Number of battery storage agreements | batteryStorageAgreement

3

Potential loss on rate change

18,700

Total number of agreements | numberOfAMIMeter

5

Filing period, extension

2 days

Filing period, with extension

12 days

Number of megawatts, peak during period (in megawatts) | MW

2,139

Grid modernization investment

$ 344,000

Grid modernization, initial term

6 years

Grid modernization term

11 years

Regulatory assets

851,514

851,514

763,941

Regulatory liabilities

555,598

555,598

556,989

PNM | Subsequent event

Public Utilities, General Disclosures [Line Items]

Number of megawatts, peak during period (in megawatts) | MW

2,162

PNM | Four Corners

Public Utilities, General Disclosures [Line Items]

Request issuance of energy transition bonds

$ 300,000

Forecasted undepreciated investment

272,000

Plant decommissioning and coal mine reclamation costs

4,600

Upfront financing costs

7,300

Proceeds from securitization bonds

$ 16,500

Payments for relief from obligations

$ 75,000

$ 15,000

Final payment for relief from obligations

$ 60,000

PNM | Four Corners | PNM

Public Utilities, General Disclosures [Line Items]

Noncontrolling interest, ownership percentage by noncontrolling owners

13%

PNM | Deferred COVID-19 Costs | COVID-19

Public Utilities, General Disclosures [Line Items]

Regulatory assets

5,700

Regulatory liabilities

$ 900

$ 900

$ 900

PNM | Leased Interest Termination on January 15, 2023

Public Utilities, General Disclosures [Line Items]

Number of leases under which lease term was extended | lease

4

PNM | Leased Interest Termination on January 15, 2023 | NMPRC

Public Utilities, General Disclosures [Line Items]

Solar generation capacity (in megawatts) | MW

104

PNM | Leased Interest Termination on January 15, 2024 | NMPRC

Public Utilities, General Disclosures [Line Items]

Solar generation capacity (in megawatts) | MW

10

PNM | Replacement Resource Portfolio One

Public Utilities, General Disclosures [Line Items]

Solar generation capacity (in megawatts) | MW

150

150

Number of megawatts in battery storage facilities (in megawatts) | MW

40

40

PNM | Replacement Resource Portfolio Two

Public Utilities, General Disclosures [Line Items]

Number of megawatts in battery storage facilities (in megawatts) | MW

100

100

PNM | Replacement Resource Portfolio Three

Public Utilities, General Disclosures [Line Items]

Solar generation capacity (in megawatts) | MW

300

300

Number of megawatts in battery storage facilities (in megawatts) | MW

300

150

150

PNM | Solar Agreement

Public Utilities, General Disclosures [Line Items]

Number of megawatts available in purchase power agreement (in megawatts) | MW

100

PNM | Battery Storage Agreement

Public Utilities, General Disclosures [Line Items]

Number of megawatts available in purchase power agreement (in megawatts) | MW

30

PNM | NM 2022 Rate Case

Public Utilities, General Disclosures [Line Items]

Megawatt repurchase | MW

64.1

PNM | Firm Power Purchases

Public Utilities, General Disclosures [Line Items]

Number of megawatts available in purchase power agreement (in megawatts) | MW

420

PNM | Firm Capacity

Public Utilities, General Disclosures [Line Items]

Number of megawatts available in purchase power agreement (in megawatts) | MW

40

San Juan Generating Station | PNM

Public Utilities, General Disclosures [Line Items]

Request issuance of energy transition bonds

$ 361,000

Forecasted undepreciated investment

283,000

$ 361,000

Plant decommissioning and coal mine reclamation costs

28,600

Upfront financing costs

9,600

Severance costs

20,000

Proceeds from securitization bonds

$ 19,800

Number of proceedings | proceeding

2

Number of recommendations | proceeding

1

San Juan Generation Station, Unit 1 | PNM

Public Utilities, General Disclosures [Line Items]

Annual rate credits

$ 21,100

San Juan Generating Station, Unit 4 | PNM

Public Utilities, General Disclosures [Line Items]

Annual rate credits

$ 98,300

Number of days to transfer payment

30 days

Regulatory and Rate Matters - B

Regulatory and Rate Matters - Battery Energy Storage System Certificate of Public Convenience and Necessity ("CCN") (Details) - Public Service Company of New Mexico $ in Millions	May 03, 2023 USD ($) storageSystem MW
Public Utilities, General Disclosures [Line Items]
Number of battery storage systems | storageSystem	2
Battery energy storage systems (in megawatts) | MW	6
Battery energy storage system, costs | $	$ 25.8

Regulatory and Rate Matters - M

Regulatory and Rate Matters - Meta Platforms Inc. Data Center (Details) - Public Service Company of New Mexico - MW		6 Months Ended
	Jul. 24, 2023	Jun. 30, 2023
Public Utilities, General Disclosures [Line Items]
Megawatts procured (in megawatts)		130
Solar Power | Subsequent event
Public Utilities, General Disclosures [Line Items]
Megawatts procured (in megawatts)	140
Battery Storage | Subsequent event
Public Utilities, General Disclosures [Line Items]
Megawatts procured (in megawatts)	50

Regulatory and Rate Matters - T

Regulatory and Rate Matters - Transportation and Electrification Program (TEP) (Details) - Public Service Company of New Mexico $ in Millions	Jun. 01, 2023 USD ($)
Public Utilities, General Disclosures [Line Items]
Expected budgeted expenditures	$ 37.1
Budget period	3 years
Budge dedication to low-income customers	22%
Budget eedication to low-income customers	$ 8

Regulatory and Rate Matters -_2

Regulatory and Rate Matters - Schedule of Transmission Cost of Service Rates (Details) - PUCT - TNMP - USD ($) $ in Millions	May 12, 2023	Sep. 22, 2022	Mar. 25, 2022	Sep. 20, 2021
Public Utilities, General Disclosures [Line Items]
Approved Increase in Rate Base	$ 150.5	$ 36	$ 95.6	$ 41.2
Annual Increase in Revenue	$ 19.4	$ 5.3	$ 14.2	$ 6.3

Regulatory and Rate Matters -_3

Regulatory and Rate Matters - TNMP Narrative (Details) - USD ($) $ in Millions	Jul. 21, 2023	May 26, 2023	Sep. 24, 2022	May 27, 2022	Mar. 01, 2022
Subsequent event
Public Utilities, Commitments And Contingencies [Line Items]
Requested total rate base	$ 21.4
Requested total rate base, annual	$ 4.2
TNMP
Public Utilities, Commitments And Contingencies [Line Items]
Energy efficiency cost recovery, requested change amount		$ 6.6		$ 1.9	$ 7.2
Energy efficiency cost recovery, requested bonus		$ 1.2		$ 7.4	$ 2.3
Energy efficiency cost recovery factor, approved settlement amount			$ 7.3
Energy efficiency cost recovery factor, approved performance bonus			$ 1.9

Regulatory and Rate Matters -_4

Regulatory and Rate Matters - Schedule of Interim Distribution Rate Increases (Details) - Texas-New Mexico Power Company - Periodic Distribution Rate Adjustment - USD ($) $ in Millions	Sep. 01, 2023	Sep. 01, 2022	Sep. 01, 2021
Public Utilities, General Disclosures [Line Items]
Approved Increase in Rate Base		$ 95.7	$ 104.5
Annual Increase in Revenue		$ 6.8	$ 13.5
Subsequent event
Public Utilities, General Disclosures [Line Items]
Approved Increase in Rate Base	$ 157
Annual Increase in Revenue	$ 14.5

Lease Commitments - Narrative (

Lease Commitments - Narrative (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2023 USD ($)	Apr. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Apr. 02, 2021 lease	Jan. 15, 2016 lease	Jan. 15, 2015 lease
Operating Leased Assets [Line Items]
Proceeds from sale of productive assets					$ 28,372	$ 0
Reduction to inventories					14,283	10,353
Operating lease, payments to lessor upon occurrence of certain events			$ 13,800		13,800
Unamortized cost, right-of-way lease payments			57,500		57,500		$ 54,600
Operating lease, right-of-use asset, amortization expense			900	$ 900	1,800	2,000
Lessee, operating lease, unguaranteed residual value			25,100		25,100
Lease to be executed, fixed consideration			$ 1,300,000		$ 1,300,000
Lease to be executed, term of contract			20 years		20 years
Materials, Supplies, and Fuel Stock
Operating Leased Assets [Line Items]
Reduction to inventories					$ (5,300)
PNM
Operating Leased Assets [Line Items]
Number of leases under which lease term was extended | lease								5
Proceeds from sale of productive assets					28,372	0
Reduction to inventories					11,334	9,076
Lessee, operating lease, unguaranteed residual value			$ 13,100		13,100
PNM | Palo Verde Nuclear Generating Station, Unit 1 and 4 Leases
Operating Leased Assets [Line Items]
Number of leases, expiring | lease										4
Number of leases under which lease term was extended | lease										4
PNM | Palo Verde Nuclear Generating Station, Unit 2 Leases
Operating Leased Assets [Line Items]
Number of leases, expiring | lease									4
Number of leases under which lease term was extended | lease									1
Annual lease payments during renewal period					1,600
PNM | Navajo Nation
Operating Leased Assets [Line Items]
Annual lease payments					6,000
Right-of-way lease payments		$ 8,300
TNMP
Operating Leased Assets [Line Items]
Reduction to inventories					2,949	$ 1,277
Lessee, operating lease, unguaranteed residual value			12,000		12,000
Equipment
Operating Leased Assets [Line Items]
Operating lease, residual value of leased asset			2,000		2,000
Equipment | PNM
Operating Leased Assets [Line Items]
Operating lease, residual value of leased asset			900		900
Equipment | TNMP
Operating Leased Assets [Line Items]
Operating lease, residual value of leased asset			$ 1,100		$ 1,100
PNM Owned Assets
Operating Leased Assets [Line Items]
Proceeds from sale of productive assets	$ 33,700

Lease Commitments - Operating L

Lease Commitments - Operating Lease Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating leases:
Operating lease assets, net of amortization	$ 50,104	$ 55,982
Current portion of operating lease liabilities	8,825	18,781
Long-term portion of operating lease liabilities	34,658	41,336
PNM
Operating leases:
Operating lease assets, net of amortization	47,648	52,556
Current portion of operating lease liabilities	7,795	17,239
Long-term portion of operating lease liabilities	33,422	39,633
TNMP
Operating leases:
Operating lease assets, net of amortization	2,456	3,426
Current portion of operating lease liabilities	1,030	1,543
Long-term portion of operating lease liabilities	$ 1,237	$ 1,703

Lease Commitments - Finance Lea

Lease Commitments - Finance Lease Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing leases:
Non-utility property	$ 46,290	$ 39,738
Accumulated depreciation	(20,518)	(16,189)
Non-utility property, net	25,772	23,549
Other current liabilities	8,565	7,363
Other deferred credits	17,190	16,123
PNM
Financing leases:
Non-utility property	24,105	19,324
Accumulated depreciation	(9,857)	(7,726)
Non-utility property, net	14,248	11,598
Other current liabilities	4,355	3,441
Other deferred credits	9,859	8,079
TNMP
Financing leases:
Non-utility property	21,855	20,084
Accumulated depreciation	(10,364)	(8,202)
Non-utility property, net	11,491	11,882
Other current liabilities	4,184	3,867
Other deferred credits	$ 7,323	$ 8,028

Lease Commitments - Schedule of

Lease Commitments - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details)	Jun. 30, 2023
Weighted average remaining lease term (years):
Operating leases	7 years 5 months 4 days
Financing leases	3 years 6 months 29 days
Weighted average discount rate:
Operating leases	4.08%
Financing leases	4.08%
PNM
Weighted average remaining lease term (years):
Operating leases	7 years 9 months
Financing leases	3 years 11 months 26 days
Weighted average discount rate:
Operating leases	4.07%
Financing leases	4.24%
TNMP
Weighted average remaining lease term (years):
Operating leases	1 year 11 months 26 days
Financing leases	3 years 1 month 2 days
Weighted average discount rate:
Operating leases	4.13%
Financing leases	3.90%

Lease Commitments - Components

Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease, Cost [Line Items]
Operating lease cost:	$ 2,869	$ 7,181	$ 7,206	$ 14,418
Amounts capitalized	(434)	(630)	(947)	(1,283)
Total operating lease expense	2,435	6,551	6,259	13,135
Financing lease cost:
Amortization of right-of-use assets	2,235	1,583	4,329	3,095
Interest on lease liabilities	252	160	486	301
Amounts capitalized	(1,477)	(1,327)	(3,167)	(2,540)
Total financing lease expense	1,010	416	1,648	856
Variable lease expense	360	262	622	367
Short-term lease expense	149	1,147	299	2,317
Total lease expense for the period	3,954	8,376	8,828	16,675
Cooling Towers
Financing lease cost:
Short-term lease expense		1,100		2,300
Increase reimbursements		1,100		2,300
PNM
Lease, Cost [Line Items]
Operating lease cost:	2,468	6,665	6,376	13,349
Amounts capitalized	(103)	(173)	(263)	(358)
Total operating lease expense	2,365	6,492	6,113	12,991
Financing lease cost:
Amortization of right-of-use assets	1,123	769	2,132	1,501
Interest on lease liabilities	140	79	262	147
Amounts capitalized	(778)	(563)	(1,469)	(1,060)
Total financing lease expense	485	285	925	588
Variable lease expense	360	262	622	367
Short-term lease expense	145	1,137	292	2,269
Total lease expense for the period	3,355	8,176	7,952	16,215
TNMP
Lease, Cost [Line Items]
Operating lease cost:	401	495	830	1,023
Amounts capitalized	(331)	(457)	(684)	(926)
Total operating lease expense	70	38	146	97
Financing lease cost:
Amortization of right-of-use assets	1,098	799	2,162	1,555
Interest on lease liabilities	112	80	223	153
Amounts capitalized	(699)	(764)	(1,699)	(1,480)
Total financing lease expense	511	115	686	228
Variable lease expense	0	0	0	0
Short-term lease expense	1	3	1	3
Total lease expense for the period	$ 582	$ 156	$ 833	$ 328

Lease Commitments - Schedule _2

Lease Commitments - Schedule of Supplemental Cash Flows Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 16,363	$ 16,381
Operating cash flows from financing leases	127	68
Finance cash flows from financing leases	1,474	809
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	100	1,079
Financing leases	6,576	3,776
PNM
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	16,208	16,260
Operating cash flows from financing leases	88	45
Finance cash flows from financing leases	792	528
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	94	1,079
Financing leases	4,793	2,151
TNMP
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	155	75
Operating cash flows from financing leases	38	21
Finance cash flows from financing leases	646	236
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	6	0
Financing leases	$ 1,783	$ 1,625

Lease Commitments - Schedule _3

Lease Commitments - Schedule of Future Expected Lease Payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Financing
Remainder of 2023	$ 4,900
2024	8,286
2025	6,304
2026	4,647
2027	2,325
Later years	1,310
Total minimum lease payments	27,772
Less: Imputed interest	2,017
Lease liabilities as of June 30, 2023	25,755
Operating
Remainder of 2023	1,750
2024	9,094
2025	8,198
2026	7,094
2027	7,023
Later years	17,510
Total minimum lease payments	50,669
Less: Imputed interest	7,186
Lease liabilities as of June 30, 2023	43,483
PNM
Financing
Remainder of 2023	2,539
2024	4,204
2025	3,232
2026	2,735
2027	1,577
Later years	1,229
Total minimum lease payments	15,516
Less: Imputed interest	1,302
Lease liabilities as of June 30, 2023	14,214
Operating
Remainder of 2023	1,148
2024	8,149
2025	7,428
2026	7,019
2027	7,023
Later years	17,510
Total minimum lease payments	48,277
Less: Imputed interest	7,060
Lease liabilities as of June 30, 2023	41,217
TNMP
Financing
Remainder of 2023	2,343
2024	4,068
2025	3,070
2026	1,912
2027	748
Later years	81
Total minimum lease payments	12,222
Less: Imputed interest	715
Lease liabilities as of June 30, 2023	11,507
Operating
Remainder of 2023	602
2024	945
2025	770
2026	76
2027	0
Later years	0
Total minimum lease payments	2,393
Less: Imputed interest	126
Lease liabilities as of June 30, 2023	$ 2,267

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2017
Income Tax Contingency [Line Items]
Effective tax rate	15.68%
Income tax assessment	$ 0.3
Deferred federal, state and local, income taxes	$ 22.9
PNM
Income Tax Contingency [Line Items]
Effective tax rate	18.69%
Income tax assessment	$ 0.2
Deferred federal, state and local, income taxes	$ 14.3
TNMP
Income Tax Contingency [Line Items]
Effective tax rate	14.72%
Income tax assessment	$ 0.1
Deferred federal, state and local, income taxes	$ 8.6
NMPRC
Income Tax Contingency [Line Items]
Period of time for proposed return to customers the benefit of the reduction in federal corporate income tax rate		23 years

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
PNMR Development
Related Party Transaction [Line Items]
Ownership	50%		50%
Services billings: | PNMR to PNM
Related Party Transaction [Line Items]
Amount of related party transaction	$ 29,142	$ 28,378	$ 60,642	$ 56,071
Services billings: | PNMR to TNMP
Related Party Transaction [Line Items]
Amount of related party transaction	11,333	10,252	23,727	20,556
Services billings: | PNM to TNMP
Related Party Transaction [Line Items]
Amount of related party transaction	104	123	169	216
Services billings: | TNMP to PNMR
Related Party Transaction [Line Items]
Amount of related party transaction	35	35	71	71
Services billings: | PNMR to NMRD
Related Party Transaction [Line Items]
Amount of related party transaction	82	81	164	145
Renewable energy purchases: | PNM from NMRD
Related Party Transaction [Line Items]
Amount of related party transaction	3,748	3,801	6,109	6,422
Interconnection and facility study billings: | PNM from NMRD
Related Party Transaction [Line Items]
Amount of related party transaction	0	0	0	0
Interconnection and facility study billings: | PNM to PNMR
Related Party Transaction [Line Items]
Amount of related party transaction	0	0	0	0
Interconnection and facility study billings: | NMRD to PNM
Related Party Transaction [Line Items]
Amount of related party transaction	0	0	0	0
Interest billings: | PNMR to PNM
Related Party Transaction [Line Items]
Amount of related party transaction	7	2	10	9
Interest billings: | PNMR to TNMP
Related Party Transaction [Line Items]
Amount of related party transaction	117	72	128	117
Interest billings: | PNM to PNMR
Related Party Transaction [Line Items]
Amount of related party transaction	143	47	273	70
Income tax sharing payments: | PNMR to PNM
Related Party Transaction [Line Items]
Amount of related party transaction	0	0	0	0
Income tax sharing payments: | TNMP to PNMR
Related Party Transaction [Line Items]
Amount of related party transaction	$ 0	$ 0	$ 0	$ 0

Equity Method Investment - Narr

Equity Method Investment - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) MW
NMRD
Business Acquisition [Line Items]
Renewable energy capacity in operating (in mw) | MW	135.1
PNMR Development | NMRD
Business Acquisition [Line Items]
Contribution to construction activities | $	$ 14.8
PNMR Development | NMRD
Business Acquisition [Line Items]
Ownership	50%
AEP OnSite Partners | NMRD
Business Acquisition [Line Items]
Ownership	50%

Equity Method Investment - Summ

Equity Method Investment - Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Results of Operations
Operating revenues	$ 477,156	$ 499,730	$ 1,021,233	$ 943,848
Financial Position
Net property, plant, and equipment	593,995		593,995		$ 372,988
Assets	9,626,970	8,911,105	9,626,970	8,911,105	9,257,377
Total PNM common stockholder’s equity	2,262,243		2,262,243		2,191,932
NMRD
Results of Operations
Operating revenues	3,975	4,021	6,505	6,817
Operating expenses	1,965	2,387	4,384	4,791
Net Earnings (Loss) Attributable to PNM	2,010	$ 1,634	2,121	$ 2,026
Financial Position
Current assets	4,468		4,468		8,357
Net property, plant, and equipment	200,071		200,071		169,440
Non-current assets	9,856		9,856		9,631
Assets	214,395		214,395		187,428
Current liabilities	1,162		1,162		5,822
Non-current liabilities	373		373		366
Total PNM common stockholder’s equity	$ 212,860		$ 212,860		$ 181,240

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Apr. 01, 2020	Apr. 01, 2018
Goodwill [Line Items]
Goodwill	$ 278,297	$ 278,297	$ 278,297
PNM
Goodwill [Line Items]
Goodwill	51,632	51,632			$ 51,600
TNMP
Goodwill [Line Items]
Goodwill	$ 226,665	$ 226,665		$ 226,700
Goodwill fair value exceeded by its carrying value				38%

Merger (Details)

Merger (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 20, 2023	Apr. 20, 2023	Dec. 31, 2023
Business Acquisition [Line Items]
Merger agreement period extension	3 months
Merger Agreement
Business Acquisition [Line Items]
Termination fees		$ 130
Out-of-pocket fees and expenses reimbursement		10
Merger Agreement | Forecast
Business Acquisition [Line Items]
Business combination, cash right per common share (in dollars per share)			$ 50.30
Merger Agreement | Avangrid
Business Acquisition [Line Items]
Termination fees		$ 184