Fair Value of Derivative and Other Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value of Derivative and Other Financial Instruments [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

Commodity derivative instruments are summarized as follows:



	Economic Hedges
	December 31,
	2011			2010
	(In thousands)
PNMR
Current assets	$	3,713		$	15,999
Deferred charges	—			5,264
	3,713			21,263
Current liabilities	(1,632		)	(31,407		)
Long-term liabilities	(2,437		)	(12,831		)
	(4,069		)	(44,238		)
Net	$	(356	)	$	(22,975	)
PNM
Current assets	$	3,713		$	1,443
Current liabilities	(1,632		)	(3,110		)
Long-term liabilities	(2,437		)	(2,009		)
	(4,069		)	(5,119		)
Net	$	(356	)	$	(3,676	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the effect of commodity derivative instruments on earnings and OCI, excluding income tax effects. For cash flow hedges, including de-designated hedges, the earnings impact reflects the reclassification from AOCI when the hedged transactions settle.



	Economic Hedges						Qualified Cash Flow Hedges
	Year Ended December 31,						Year Ended December 31,
	2011			2010			2011			2010
	(In thousands)
PNMR
Electric operating revenues	$	5,682		$	(4,030	)	$	—		$	29,930
Cost of energy	(2,201		)	(44,743		)	(422		)	(2,263		)
Total gain (loss)	$	3,481		$	(48,773	)	$	(422	)	$	27,667
Recognized in OCI							$	422		$	(18,739	)
PNM
Electric operating revenues	$	5,682		$	(4,030	)	$	—		$	29,930
Cost of energy	(1,058		)	(5,386		)	—			(18		)
Total gain (loss)	$	4,624		$	(9,416	)	$	—		$	29,912
Recognized in OCI							$	—		$	(20,984	)

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

Commodity contract volume positions are presented in Decatherms for gas related contracts and in MWh for power related contracts. The table below presents PNMR’s and PNM’s net buy (sell) volume positions:



	Economic Hedges
	Decatherms	MWh
December 31, 2011
PNMR and PNM	1,499,000	(366,448	)
December 31, 2010
PNMR	22,767,500	1,693,431
PNM	1,882,500	(990,120	)

Schedule of Collateral Related to Derivative [Table Text Block]



Contingent Feature – Credit Rating Downgrade	Contractual Liability		Existing Cash Collateral		Net Exposure
	(In thousands)
December 31, 2011
PNMR and PNM	$	4,036	$	—	$	4,036
December 31, 2010
PNMR	$	8,113	$	—	$	2,642
PNM	$	291	$	—	$	119

Available-for-sale Securities [Table Text Block]

The fair value of and gross unrealized gains of investments in available-for-sale securities are presented in the following table.



	December 31, 2011				December 31, 2010
	Unrealized Gains		Fair Value		Unrealized Gains		Fair Value
			(In thousands)
Equity securities:
Domestic value	$	3,549	$	25,143	$	5,108	$	25,491
Domestic growth	16,714		52,187		17,239		48,237
International and other	662		12,754		2,730		10,670
Fixed income securities:
Municipals	2,861		41,463		837		37,595
U.S. Government	1,353		25,367		348		21,541
Corporate and other	742		9,171		573		8,402
Cash investments	—		2,766		—		4,986
	$	25,881	$	168,851	$	26,835	$	156,922

Schedule of Realized Gain (Loss) [Table Text Block]

Realized gains and losses are determined by specific identification of costs of securities sold.



	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Proceeds from sales	$	145,286		$	79,853		$	124,519
Gross realized gains	$	17,493		$	5,635		$	6,009
Gross realized (losses)	$	(6,223	)	$	(3,704	)	$	(7,359	)

Investments Classified by Contractual Maturity Date [Table Text Block]

At December 31, 2011, the available-for-sale and held-to-maturity debt securities had the following final maturities:



	Fair Value
	Available-for-Sale		Held-to-Maturity
	PNMR and PNM		PNMR		PNM
	(In thousands)
Within 1 year	$	1,470	$	2,339	$	2,339
After 1 year through 5 years	20,862		115,788		108,742
After 5 years through 10 years	11,897		2,060		—
Over 10 years	41,772		—		—
	$	76,001	$	120,187	$	111,081

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying amount and fair value of held-to-maturity debt securities and other non-derivative financial instruments (including current maturities) are:



	December 31, 2011				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
PNMR
Long-term debt	$	1,674,013	$	1,873,002	$	1,565,847	$	1,659,674
Investment in PVNGS lessor notes	$	107,094	$	108,742	$	136,145	$	141,663
Other investments	$	12,207	$	14,208	$	18,791	$	21,675
PNM
Long-term debt	$	1,215,540	$	1,294,846	$	1,055,748	$	1,056,864
Investment in PVNGS lessor notes	$	107,094	$	108,742	$	136,145	$	141,663
Other investments	$	2,900	$	3,052	$	5,068	$	5,563
TNMP
Long-term debt	$	310,963	$	413,966	$	310,337	$	385,220
Other investments	$	271	$	271	$	282	$	282

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

The fair values of derivatives and investments that are recorded at fair value on the Consolidated Balance Sheets are as follows:



	Total⁽¹⁾			Quoted Prices in Active Market for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
December 31, 2011				(In thousands)
PNMR and PNM
NDT investments
Cash and equivalents	$	2,766		$	2,766		$	—		$	—
Equity securities:
Domestic value	25,143			25,143			—			—
Domestic growth	52,187			52,187			—			—
International and other	12,754			12,754			—			—
Fixed income securities:
U.S. government	25,367			21,409			3,958			—
Municipals	41,463			—			41,463			—
Corporate and other	9,171			—			9,171			—
Total NDT investments	$	168,851		$	114,259		$	54,592		$	—

Commodity derivative assets	$	3,713		$	—		$	3,713		$	—
Commodity derivative liabilities	(4,069		)	—			(4,069		)	—
Net	$	(356	)	$	—		$	(356	)	$	—
December 31, 2010
PNMR and PNM
NDT investments
Cash and equivalents	$	4,986		$	4,986		$	—		$	—
Equity securities:
Domestic value	25,491			25,491			—			—
Domestic growth	48,237			48,237			—			—
International and other	10,670			10,670			—			—
Fixed income securities:
U.S. government	21,541			16,613			4,928			—
Municipals	37,595			—			37,595			—
Corporate and other	8,402			—			8,402			—
Total NDT investments	$	156,922		$	105,997		$	50,925		$	—
PNMR
Commodity derivative assets	$	21,263		$	8,646		$	12,308		$	272
Commodity derivative liabilities	(44,238		)	(26,378		)	(16,729		)	(1,094		)
Net	$	(22,975	)	$	(17,732	)	$	(4,421	)	$	(822	)
PNM
Commodity derivative assets	$	1,443		$	—		$	1,443		$	—
Commodity derivative liabilities	(5,119		)	—			(5,119		)	—
Net	$	(3,676	)	$	—		$	(3,676	)	$	—

Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

A reconciliation of the changes in Level 3 fair value measurements is as follows:



	PNMR						PNM
	Year Ended December 31,						Year Ended December 31,
	2011			2010			2011		2010
	(In thousands)
Balance at beginning of period	$	(822	)	$	248		$	—	$	(17	)
Total gains (losses) included in earnings	1,020			(1,646		)	—		(128		)
Purchases	3,163			70			—		—
Settlements	(1,578		)	506			—		145
Sale of First Choice	(1,783		)	—			—		—
Balance at end of period	$	—		$	(822	)	$	—	$	—
Total gains (losses) included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period	$	—		$	(1,087	)	$	—	$	—

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The fair values of investments held by the employee benefit plans are as follows:



	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2011			(In thousands)
PNM Pension Plan
Participation in PNMR Master Trust Total Plan Investments	$	444,466	$	176,279	$	184,054	$	84,133
TNMP Pension Plan
Participation in PNMR Master Trust Total Plan Investments	$	62,139	$	24,118	$	23,466	$	14,555
PNM OPEB Plan
Cash and equivalents	$	1,128	$	1,128	$	—	$	—
Equity securities:
International funds	2,740		—		2,740		—
Domestic value	1,289		1,289		—		—
Domestic growth	43,016		22,215		20,801		—
Other funds	7,678		—		7,678		—
Fixed income securities:
Mutual funds	4,006		4,006		—		—
Total Assets	$	59,857	$	28,638	$	31,219	$	—
TNMP OPEB Plan
Cash and equivalents	$	180	$	180	$	—	$	—
Equity securities:
International funds	1,248		—		1,248		—
Domestic value	551		551		—		—
Domestic growth	738		738		—		—
Other funds	3,048		—		3,048		—
Fixed income securities:
Mutual funds	2,694		2,694		—		—
Total Assets	$	8,459	$	4,163	$	4,296	$	—



	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2010	(In thousands)
PNM Pension Plan
Participation in PNMR Master Trust	$	393,480	$	208,759	$	105,781	$	78,940
TNMP Pension Plan
Participation in PNMR Master Trust	$	60,506	$	30,530	$	16,317	$	13,659
PNM OPEB Plan
Cash and equivalents	$	1,811	$	1,811	$	—	$	—
Equity securities:
International funds	3,182		—		3,182		—
Domestic value	1,363		1,363		—		—
Domestic growth	41,278		22,939		18,339		—
Other funds	9,057		—		9,057		—
Fixed income securities:
Mutual funds	5,860		5,860		—		—
Total Assets	$	62,551	$	31,973	$	30,578	$	—
TNMP OPEB Plan
Cash and equivalents	$	424	$	424	$	—	$	—
Equity securities:
International funds	1,116		—		1,116		—
Domestic value	582		582		—		—
Domestic growth	710		710		—		—
Other funds	2,959		—		2,959		—
Fixed income securities:
Mutual funds	2,834		2,834		—		—
Total Assets	$	8,625	$	4,550	$	4,075	$	—

The fair values of investments in the PNMR Master Trust are as follows:



	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2011	(In thousands)
PNMR Master Trust
Cash and equivalents	$	6,753	$	6,753	$	—	$	—
Equity securities:
International	37,173		37,173		—		—
Domestic value	58,350		57,437		913		—
Domestic growth	65,004		65,004		—		—
Other funds	15,271		—		15,271		—
Fixed income securities:
Corporate	59,730		—		59,730		—
U.S. government	104,102		34,030		70,072		—
Municipals	3,478		—		3,478		—
Other funds	58,056		—		58,056		—
Alternative investments:
Private equity funds	37,100		—		—		37,100
Hedge funds	36,904		—		—		36,904
Real estate funds	24,684		—		—		24,684
Total Fair Value of Plan Investments	$	506,605	$	200,397	$	207,520	$	98,688
December 31, 2010
PNMR Master Trust
Cash and equivalents	$	10,718	$	10,718	$	—	$	—
Equity securities:
International	46,505		46,505		—		—
Domestic value	79,218		76,493		2,725		—
Domestic growth	81,375		81,375		—		—
Other funds	49,307		—		49,307		—
Fixed income securities:
Corporate	2,062		—		2,062		—
U.S. government	39,585		24,198		15,387		—
Municipals	2,935		—		2,935		—
Other funds	49,682		—		49,682		—
Alternative investments:
Private equity funds	32,935		—		—		32,935
Hedge funds	37,622		—		—		37,622
Real estate funds	22,042		—		—		22,042
Total Assets	$	453,986	$	239,289	$	122,098	$	92,599

A reconciliation of the changes in Level 3 fair value measurements is as follows:



	Year Ended December 31,
Level 3 Fair Value Assets and Liabilities	2011			2010
	(In thousands)
PNM Pension	Master Trust			Master Trust			Real Estate Funds
Balance at beginning of period	$	78,940		$	74,105		$	2,168
Actual return on assets sold during the period	1,624			(778		)	(1,846		)
Actual return on assets still held at period end	1,404			4,015			—
Purchases	4,030			33,731			—
Sales	(1,865		)	(32,133		)	(322		)
Balance at end of period	$	84,133		$	78,940		$	—
TNMP Pension
Balance at beginning of period	$	13,659		$	12,426
Actual return on assets sold during the period	280			(199		)
Actual return on assets still held at period end	243			1,024
Purchases	695			8,602
Sales	(322		)	(8,194		)
Balance at end of period	$	14,555		$	13,659

Additional information concerning changes in Level 3 fair value measurements for the PNMR Master Trust is as follows:

Level 3 Fair Value Assets and Liabilities



PNMR Master Trust	Private equity funds			Hedge funds			Real estate funds			Total
				(In thousands)
Balance at December 31, 2009	$	26,883		$	34,921		$	24,727		$	86,531
Actual return on assets sold during the period	(769		)	—			(208		)	(977		)
Actual return on assets still held at period end	2,363			2,701			(25		)	5,039
Purchases	39,255			—			3,078			42,333
Sales	(34,797		)	—			(5,530		)	(40,327		)
Balance at December 31, 2010	32,935			37,622			22,042			92,599
Actual return on assets sold during the period	1,904			—			—			1,904
Actual return on assets still held at period end	2,372			(718		)	(7		)	1,647
Purchases	2,076			—			2,649			4,725
Sales	(2,187		)	—			—			(2,187		)
Balance at December 31, 2011	$	37,100		$	36,904		$	24,684		$	98,688