XML 28 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value of Derivative and Other Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2013
Fair Value of Derivative and Other Financial Instruments [Line Items]  
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 Condensed Consolidated Balance Sheets are presented below:
 
 
 
 
 
GAAP Fair Value Hierarchy
 
Carrying Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
March 31, 2013
(In thousands)
PNMR
 
 
 
 
 
 
 
 
 
Long-term debt
$
1,672,456

 
$
1,977,199

 
$
—

 
$
1,974,550

 
$
2,649

Investment in PVNGS lessor notes
$
66,375

 
$
69,155

 
$
—

 
$
—

 
$
69,155

Other investments
$
4,647

 
$
6,939


$
761

 
$
—

 
$
6,178

PNM
 
 
 
 
 
 
 
 
 
Long-term debt
$
1,215,589

 
$
1,391,714

 
$
—

 
$
1,391,714

 
$
—

Investment in PVNGS lessor notes
$
66,375

 
$
69,155

 
$
—

 
$
—

 
$
69,155

Other investments
$
480

 
$
480

 
$
480

 
$
—

 
$
—

TNMP
 
 
 
 
 
 
 
 
 
Long-term debt
$
311,745

 
$
418,912

 
$
—

 
$
418,912

 
$
—

Other investments
$
281

 
$
281

 
$
281

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
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

 
$
—

 
$
—
PNMR and PNM [Member]
  
Fair Value of Derivative and Other Financial Instruments [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
Commodity derivative instruments are summarized as follows:
 
Economic Hedges
 
March 31,
2013
 
December 31,
2012
PNMR and PNM
(In thousands)
Current assets
$
2,114

 
$
3,785

Deferred charges
—

 
352

 
2,114

 
4,137

 
 
 
 
Current liabilities
(4,132
)
 
(1,000
)
Long-term liabilities
(1,785
)
 
(1,933
)
 
(5,917
)
 
(2,933
)
Net
$
(3,803
)
 
$
1,204
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, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented.
 
Economic Hedges
 
Three Months Ended
 
March 31,
 
2013
 
2012
PNMR and PNM
(In thousands)
Electric operating revenues
$
(4,603
)
 
$
5,218

Cost of energy
756

 
(604
)
   Total gain (loss)
$
(3,847
)
 
$
4,614
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
March 31, 2013
 
 
 
PNMR and PNM
1,425,000

 
(2,042,657
)
December 31, 2012
 
 
 
PNMR and PNM
1,127,500

 
(2,477,520
)
Schedule of Collateral Related to Derivative [Table Text Block]
Net exposure is the net contractual liability for all contracts, including those designated as normal purchases and sales, offset by existing cash collateral and by any offsets available under master netting agreements, including both asset and liability positions.
Contingent Feature –
Credit Rating Downgrade
 
Contractual Liability
 
Existing Cash Collateral
 

Net Exposure
 
 
(In thousands)
March 31, 2013
 
 
 
 
 
 
PNMR and PNM
 
$
3,935

 
$
—

 
$
3,854

December 31, 2012
 
 
 
 
 
 
PNMR and PNM
 
$
2,933

 
$
—

 
$
2,777
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.
 
March 31, 2013
 
December 31, 2012
 
Unrealized Gains
 
Fair Value
 
Unrealized Gains
 
Fair Value
 
 
 
(In thousands)
 
 
Cash and cash equivalents
$
—

 
$
3,877

 
$
—

 
$
4,628

Equity securities:
 
 
 
 
 
 
 
   Domestic value
8,782

 
34,410

 
5,223

 
30,044

   Domestic growth
18,184

 
55,435

 
15,212

 
51,650

International and other
803

 
15,420

 
247

 
14,868

Fixed income securities:
 
 
 
 
 
 
 
   U.S. Government
1,077

 
33,721

 
1,305

 
32,592

   Municipals
3,845

 
43,459

 
4,069

 
43,861

   Corporate and other
989

 
15,085

 
1,100

 
14,868

 
$
33,680

 
$
201,407

 
$
27,156

 
$
192,511

The proceeds and gross realized gains and losses on the disposition of available-for-sale securities for PNMR and PNM are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold.
 
Three Months Ended
 
March 31,
 
2013
 
2012
 
(In thousands)
Proceeds from sales
$
14,284

 
$
26,760

Gross realized gains
$
1,391

 
$
2,332

Gross realized (losses)
$
(407
)
 
$
(738
)
Investments Classified by Contractual Maturity Date [Table Text Block]
At March 31, 2013, 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
$
1,792

 
$
7,478

 
$
3,780

After 1 year through 5 years
30,751

 
66,708

 
66,375

After 5 years through 10 years
17,244

 
—

 
—

After 10 years through 15 years
8,637

 
—

 
—

After 15 years through 20 years
11,060

 
—

 
—

After 20 years
22,781

 
—

 
—

 
$
92,265

 
$
74,186

 
$
70,155
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]
Items recorded at fair value on the Condensed Consolidated Balance Sheets are presented below:
 
 
 
GAAP Fair Value Hierarchy
 
Total
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
March 31, 2013
 
 
(In thousands)
PNMR and PNM
 
 
 
 
 
Decommissioning and reclamation investments:
 
 
 
 
 
   Cash and cash equivalents
$
3,877

 
$
3,877

 
$
—

   Equity securities:
 
 
 
 
 
     Domestic value
34,410

 
34,410

 
—

     Domestic growth
55,435

 
55,435

 
—

International and other
15,420

 
15,420

 
—

   Fixed income securities:
 
 
 
 
 
     U.S. government
33,721

 
30,193

 
3,528

     Municipals
43,459

 
—

 
43,459

     Corporate and other
15,085

 
—

 
15,085

          
$
201,407

 
$
139,335

 
$
62,072

 
 
 
 
 
 
Commodity derivative assets
$
2,114

 
$
—

 
$
2,114

Commodity derivative liabilities
(5,917
)
 
—

 
(5,917
)
          Net
$
(3,803
)
 
$
—

 
$
(3,803
)
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
PNMR and PNM

 
 
 
 
Decommissioning and reclamation investments:

 
 
 
 
   Cash and cash 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:
 
 
 
 
 
     U.S. government
32,592

 
27,737

 
4,855

     Municipals
43,861

 
—

 
43,861

     Corporate and other
14,868

 
—

 
14,868

          
$
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