Most glowing lights in New Mexico are lit by PNM Resources. The company's primary utility Public Service Company of New Mexico (PNM Electric) distributes power to about 506,700 residential, commercial, and industrial customers in the state. PNM Resources has (or purchases power from) plants with about 2,540 MW of generating capacity and markets energy to wholesale customers in the western US. Its Texas-New Mexico Power Company (TNMP) unit provides transmission and distribution services at regulated rates to retail electricity providers that, in turn, provide retail electric service to about 232,480 end users in New Mexico and Texas.
The company distributes electricity to more than 739,100 homes and businesses in New Mexico and Texas.
PNM Resources revenues decreased by 21% in 2012 primarily due the sale of First Choice Power, offset by 3% higher PNM Electric revenues as the result of an increase in industrial sales (thanks to a spike in demand by one customer) and higher retail loads driven by cooler-than-usual temperatures in the winter and warmer-than-normal weather in the summer. TNMP revenues grew by 23% due to an ERCOT transmission rate settlement of outstanding 1999 costs.
Net income dropped by 40% in 2012 as the result of accelerated amortization of leasehold improvement costs (for part of its corporate headquarters), and higher transmission and distribution costs.
The company has returned to its core business model of being a pure-play electric utility in regulated markets by selling its non-regulated assets. In late 2011 the company sold unregulated retail power subsidiary First Choice Power to Houston-based Direct Energy for $270 million.
PNM Resources also had an unregulated power plant joint venture, (Optim Energy, formerly known as EnergyCo) with its largest shareholder, Cascade Investment LLC, that served markets in the southwestern and western US. However, difficult economic conditions limited Optim Energy's operations and PNM Resources sold its 51% ownership in the unit to ECJV Holdings, LLC in 2011 and 2012.
Growing it power capacity, in 2011 PNM Resources completed a $95 million investment in a utility-owned renewable energy project to store solar power and deliver energy during high-demand periods or when solar production is limited.
In 2012 PNM Resources agreed to buy the Delta-Person Generating Station, located in southwest Albuquerque, giving PNM Resources the ability to control operating costs at the plant.
In 2009 the company sold its natural gas operations (PNM Gas, which distributed natural gas to more than 480,000 customers) to a subsidiary of Continental for $640 million. The move allowed PNM Resources to pay down debt and to focus on investing in its core businesses.