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I'm trying to find out the max power consumption for an XBee Series 2 2mW module so as to pick out a suitable power supply for the system. The docs state that it has a TX Peak Current of 40 mA and RX Current of 40 mA (@3.3 V).

Does this mean that the max power that can be consumed by the XBee is (40 mA + 40 mA) * 3.3 V = 264 mW?

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Generally RF Transcievers can trasmit or receive on an instant time. So XBee's also can only transmit or receive at a time.

Your answer is will be 40mA* 3.3V = 132mW in this case.

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