Fair Value of Derivative and Other Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

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, recorded at fair value are summarized as follows:



	Economic Hedges
	December 31,
	2012			2011
	(In thousands)
PNM and PNMR
Current assets	$	3,785		$	3,713
Deferred charges	352			—
	4,137			3,713
Current liabilities	(1,000		)	(1,632		)
Long-term liabilities	(1,933		)	(2,437		)
	(2,933		)	(4,069		)
Net	$	1,204		$	(356	)

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

The following table presents the effect of mark-to-market 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,
	2012			2011			2012		2011
	(In thousands)
PNMR
Electric operating revenues	$	6,168		$	5,682		$	—	$	—
Cost of energy	(460		)	(2,201		)	—		(422		)
Total gain (loss)	$	5,708		$	3,481		$	—	$	(422	)
Recognized in OCI							$	—	$	422
PNM
Electric operating revenues	$	6,168		$	5,682		$	—	$	—
Cost of energy	(460		)	(1,058		)	—		—
Total gain (loss)	$	5,708		$	4,624		$	—	$	—
Recognized in OCI							$	—	$	—

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

Commodity contract volume positions are presented in MMBTU 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
	MMBTU	MWh
December 31, 2012
PNMR and PNM	1,127,500	(2,477,520	)
December 31, 2011
PNMR and PNM	1,499,000	(366,448	)

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, 2012
PNMR and PNM	$	2,933	$	—	$	2,777
December 31, 2011
PNMR and PNM	$	4,036	$	—	$	4,036

Available-for-sale Securities [Table Text Block]

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



	December 31, 2012				December 31, 2011
	Unrealized Gains		Fair Value		Unrealized Gains		Fair Value
PNMR and PNM			(In thousands)
Equity securities:
Domestic value	$	5,223	$	30,044	$	3,549	$	25,143
Domestic growth	15,212		51,650		16,714		52,187
International and other	247		14,868		662		12,754
Fixed income securities:
Municipals	4,069		43,861		2,861		41,463
United States government	1,305		32,592		1,353		25,367
Corporate and other	1,100		14,868		742		9,171
Cash investments	—		4,628		—		2,766
	$	27,156	$	192,511	$	25,881	$	168,851

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,
	2012			2011			2010
	(In thousands)
Proceeds from sales	$	167,330		$	145,286		$	79,853
Gross realized gains	$	15,907		$	17,493		$	5,635
Gross realized (losses)	$	(8,170	)	$	(6,223	)	$	(3,704	)

Investments Classified by Contractual Maturity Date [Table Text Block]

At December 31, 2012, 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	$	2,374	$	3,695	$	—
After 1 year through 5 years	29,342		85,520		84,198
After 5 years through 10 years	15,943		—		—
After 10 years through 15 years	8,700		—		—
After 15 years through 20 years	11,217		—		—
After 20 years	23,745		—		—
	$	91,321	$	89,215	$	84,198

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

Items recorded at fair value on the Consolidated Balance Sheets are presented below:



				GAAP Fair Value Hierarchy
	Total(1)			Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
December 31, 2012				(In thousands)
PNMR and PNM
Decommissioning and reclamation investments
Cash and equivalents	$	4,628		$	4,628	$	—
Equity securities:
Domestic value	30,044			30,044		—
Domestic growth	51,650			51,650		—
International and other	14,868			14,868		—
Fixed income securities:
United States government	32,592			27,737		4,855
Municipals	43,861			—		43,861
Corporate and other	14,868			—		14,868
Total	$	192,511		$	128,927	$	63,584

Commodity derivative assets	$	4,137		$	—	$	4,137
Commodity derivative liabilities	(2,933		)	—		(2,933		)
Net	$	1,204		$	—	$	1,204



				GAAP Fair Value Hierarchy
	Total⁽¹⁾			Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
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:
United States government	25,367			21,409		3,958
Municipals	41,463			—		41,463
Corporate and other	9,171			—		9,171
Total	$	168,851		$	114,259	$	54,592

Commodity derivative assets	$	3,713		$	—	$	3,713
Commodity derivative liabilities	(4,069		)	—		(4,069		)
Net	$	(356	)	$	—	$	(356	)


⁽¹⁾	The Level 1 and 2 columns in the above table are presented based on the nature of each instrument. The total column is presented based on the balance sheet classification of the instruments. There were no account reclassifications between commodity derivative assets and commodity derivative liabilities and there were no Level 3 fair value measurements at December 31, 2012 and 2011.

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
	Year Ended December 31,
	2012		2011
	(In thousands)
Balance at beginning of period	$	—	$	(822	)
Total gains (losses) included in earnings	—		1,020
Purchases	—		3,163
Settlements	—		(1,578		)
Sale of First Choice	—		(1,783		)
Balance at end of period	$	—	$	—
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	$	—	$	—

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

The carrying amounts and fair values of investments in PVNGS lessor notes, other investments, and long-term debt, which are not recorded at fair value on the Consolidated Balance Sheets are presented below:



					GAAP Fair Value Hierarchy ⁽¹⁾
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2012	(In thousands)
PNMR
Long-term debt	$	1,672,290	$	1,969,362	$	—	$	1,966,725	$	2,637
Investment in PVNGS lessor notes	$	77,682	$	84,198	$	—	$	—	$	84,198
Other investments	$	5,599	$	6,965	$	774	$	—	$	6,191
PNM
Long-term debt	$	1,215,579	$	1,385,433	$	—	$	1,385,433	$	—
Investment in PVNGS lessor notes	$	77,682	$	84,198	$	—	$	—	$	84,198
Other investments	$	494	$	494	$	494	$	—	$	—
TNMP
Long-term debt	$	311,589	$	418,166	$	—	$	418,166	$	—
Other investments	$	281	$	281	$	281	$	—	$	—

December 31, 2011
PNMR
Long-term debt	$	1,674,013	$	1,873,002
Investment in PVNGS lessor notes	$	107,094	$	108,742
Other investments	$	12,207	$	14,208
PNM
Long-term debt	$	1,215,540	$	1,294,846
Investment in PVNGS lessor notes	$	107,094	$	108,742
Other investments	$	2,900	$	3,052
TNMP
Long-term debt	$	310,963	$	413,966
Other investments	$	271	$	271


⁽¹⁾	GAAP does not require disclosure of the fair value hierarchy information prior to 2012

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

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



			GAAP Fair Value Hierarchy
	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2012			(In thousands)
PNM Pension Plan
Participation in PNMR Master Trust Total Plan Investments	$	517,238	$	205,491	$	232,730	$	79,017
TNMP Pension Plan
Participation in PNMR Master Trust Total Plan Investments	$	66,450	$	26,462	$	25,817	$	14,171
PNM OPEB Plan
Cash and equivalents	$	4,976	$	4,976	$	—	$	—
Equity securities:
International funds	2,651		—		2,651		—
Domestic growth	46,145		19,511		26,634		—
Other funds	7,588		—		7,588		—
Fixed income securities:
Mutual funds	4,176		4,176		—		—
Total Assets	$	65,536	$	28,663	$	36,873	$	—
TNMP OPEB Plan
Cash and equivalents	$	42	$	42	$	—	$	—
Equity securities:
International funds	1,444		—		1,444		—
Domestic growth	1,289		1,289		—		—
Other funds	3,660		—		3,660		—
Fixed income securities:
Mutual funds	2,325		2,325		—		—
Total Assets	$	8,760	$	3,656	$	5,104	$	—



			GAAP Fair Value Hierarchy
	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	$	444,466	$	176,279	$	184,054	$	84,133
TNMP Pension Plan
Participation in PNMR Master Trust	$	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	$	—

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



			GAAP Fair Value Hierarchy
	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2012	(In thousands)
PNMR Master Trust
Cash and equivalents	$	10,404	$	10,404	$	—	$	—
Equity securities:
International	39,867		39,867		—		—
Domestic value	39,492		39,492		—		—
Domestic growth	63,888		63,888		—		—
Other funds	17,035		—		17,035		—
Fixed income securities:
Corporate	101,936		—		101,936		—
United States government	148,341		78,302		70,039		—
Municipals	3,639		—		3,639		—
Other funds	65,898		—		65,898		—
Alternative investments:
Private equity funds	38,212		—		—		38,212
Hedge funds	31,277		—		—		31,277
Real estate funds	23,699		—		—		23,699
Total Fair Value of Plan Investments	$	583,688	$	231,953	$	258,547	$	93,188
December 31, 2011
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		—
United States 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 Assets	$	506,605	$	200,397	$	207,520	$	98,688

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	2012			2011
	(In thousands)
PNM Pension	Master Trust			Master Trust
Balance at beginning of period	$	84,133		$	78,940
Actual return on assets sold during the period	2,627			1,624
Actual return on assets still held at period end	2,386			1,404
Purchases	5,498			4,030
Sales	(15,627		)	(1,865		)
Balance at end of period	$	79,017		$	84,133
TNMP Pension
Balance at beginning of period	$	14,555		$	13,659
Actual return on assets sold during the period	197			280
Actual return on assets still held at period end	179			243
Purchases	413			695
Sales	(1,173		)	(322		)
Balance at end of period	$	14,171		$	14,555

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, 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
Actual return on assets sold during the period	2,966			(80		)	(62		)	2,824
Actual return on assets still held at period end	40			2,453			72			2,565
Purchases	3,906			—			2,005			5,911
Sales	(5,800		)	(8,000		)	(3,000		)	(16,800		)
Balance at December 31, 2012	$	38,212		$	31,277		$	23,699		$	93,188