Asset Retirement Obligations

12 Months Ended

Dec. 31, 2014

Asset Retirement Obligation Disclosure [Abstract]

AROs are recorded based on the determination of underlying assumptions, such as discount rates, estimates of the future costs for decommissioning, and the timing of the removal activities to be performed. Any changes in these assumptions underlying the required calculations may require revisions to the estimated AROs when identified. A reconciliation of the ARO liability is as follows:



	PNMR			PNM			TNMP
	(In thousands)
Liability at December 31, 2011	$	79,233		$	78,425		$	699
Liabilities incurred	—			—			—
Liabilities settled	(25		)	—			(25		)
Accretion expense	6,685			6,617			58
Liability at December 31, 2012	85,893			85,042			732
Liabilities incurred	—			—			—
Liabilities settled	(79		)	(67		)	(12		)
Accretion expense	7,245			7,174			62
Revisions to estimated cash flows⁽¹⁾	3,076			3,076			—
Liability at December 31, 2013	96,135			95,225			782
Liabilities incurred	—			—			—
Liabilities settled	—			—			—
Accretion expense	7,984			7,906			66
Revisions to estimated cash flows	51			51			—
Liability at December 31, 2014	$	104,170		$	103,182		$	848

⁽¹⁾

Based on studies to estimate the amount and timing of future ARO expenditures. PNM has an ARO for PVNGS that includes the obligations for nuclear decommissioning of that facility. In 2013, a new decommissioning study for PVNGS was implemented reflecting updated cash flow estimates, including the extended operating licenses. The new study resulted in an increase of $0.5 million to the ARO. In addition, a new decommissioning study for SJGS was implemented in 2013, resulting in a $2.5 million increase to the ARO.