XML 96 R29.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Fair Value of Derivative and Other Financial Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2015
Fair Value of Derivative and Other Financial Instruments [Abstract] |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows:
| Economic Hedges
| September 30, 2015 |  | December 31, 2014
PNMR and PNM | (In thousands)
Current assets | $ | 6,144 |  |  | $ | 11,232 |
Deferred charges | 3,369 |  |  | — |
| 9,513 |  |  | 11,232 |
Current liabilities | (984 | ) |  | (1,209 | )
Long-term liabilities | — |  |  | (477 | )
| (984 | ) |  | (1,686 | )
Net | $ | 8,529 |  |  | $ | 9,546 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the effect of mark-to-market 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 |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
PNMR and PNM | (In thousands)
Electric operating revenues | $ | 6,823 |  |  | $ | 2,352 |  |  | $ | 7,354 |  |  | $ | (2,124 | )
Cost of energy | (78 | ) |  | (60 | ) |  | (227 | ) |  | 186 |
Total gain (loss) | $ | 6,745 |  |  | $ | 2,292 |  |  | $ | 7,127 |  |  | $ | (1,938 | )
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below presents PNMR’s and PNM’s net buy (sell) volume positions:
|  | Economic Hedges
|  | MMBTU |  | MWh
PNMR and PNM |  |  |  |
September 30, 2015 |  | 1,227,498 |  |  | (2,942,281 | )
December 31, 2014 |  | 650,000 |  |  | (1,919,000 | )
Schedule of Collateral Related to Derivative | The table below presents information about the Company’s contingent requirements to provide collateral under commodity contracts having an objectively determinable collateral provision that are in net liability positions and are not fully collateralized with cash. Contractual liability represents commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. The table only reflects cash collateral that has been posted under the existing contracts and does not reflect letters of credit under PNM’s revolving credit facilities that have been issued as collateral. Net exposure is the net contractual liability for all contracts, including those designated as normal purchases and normal 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)
PNMR and PNM |  |  |  |  |  |
September 30, 2015 |  | $ | 967 |  |  | $ | — |  |  | $ | 207 |
December 31, 2014 |  | $ | 1,686 |  |  | $ | — |  |  | $ | 167 |
Available-for-sale Securities | The fair value and gross unrealized gains of investments in available-for-sale securities are presented in the following table.
| September 30, 2015 |  | December 31, 2014
| Unrealized Gains |  | Fair Value |  | Unrealized Gains |  | Fair Value
PNMR and PNM |  |  | (In thousands) |  |
Cash and cash equivalents | $ | — |  |  | $ | 28,813 |  |  | $ | — |  |  | $ | 8,276 |
Equity securities: |  |  |  |  |  |  |
Domestic value | 11,880 |  |  | 42,769 |  |  | 17,418 |  |  | 45,340 |
Domestic growth | 10,124 |  |  | 58,424 |  |  | 21,354 |  |  | 74,053 |
International and other | 1 |  |  | 1,681 |  |  | 156 |  |  | 16,599 |
Fixed income securities: |  |  |  |  |  |  |
U.S. Government | 598 |  |  | 25,544 |  |  | 903 |  |  | 22,563 |
Municipals | 3,499 |  |  | 61,106 |  |  | 5,851 |  |  | 68,973 |
Corporate and other | 618 |  |  | 24,458 |  |  | 666 |  |  | 14,341 |
| $ | 26,720 |  |  | $ | 242,795 |  |  | $ | 46,348 |  |  | $ | 250,145 |
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. Gross realized losses shown below exclude the change in realized impairment losses of $(2.4) million and $(3.2) million for the three and nine months ended September 30, 2015 and $(1.2) million and $(0.7) million for the three and nine months ended September 30, 2014.
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
| (In thousands)
Proceeds from sales | $ | 71,576 |  |  | $ | 29,103 |  |  | $ | 166,097 |  |  | $ | 82,222 |
Gross realized gains | $ | 8,998 |  |  | $ | 3,134 |  |  | $ | 22,463 |  |  | $ | 11,616 |
Gross realized (losses) | $ | (4,014 | ) |  | $ | (936 | ) |  | $ | (7,133 | ) |  | $ | (2,731 | )
Investments Classified by Contractual Maturity Date | At September 30, 2015, 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 | $ | 4,558 |  |  | $ | 8,947 |  |  | $ | 8,947 |
After 1 year through 5 years | 21,516 |  |  | 652 |  |  | — |
After 5 years through 10 years | 23,048 |  |  | — |  |  | — |
After 10 years through 15 years | 11,105 |  |  | — |  |  | — |
After 15 years through 20 years | 10,593 |  |  | — |  |  | — |
After 20 years | 40,288 |  |  | — |  |  | — |
| $ | 111,108 |  |  | $ | 9,599 |  |  | $ | 8,947 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | Items recorded at fair value on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy. There were no Level 3 fair value measurements at September 30, 2015 and December 31, 2014 for items recorded at fair value.
|  |  | GAAP Fair Value Hierarchy
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2)
September 30, 2015 | (In thousands)
PNMR and PNM |  |  |  |  |
Available-for-sale securities |  |  |  |  |
Cash and cash equivalents | $ | 28,813 |  |  | $ | 28,813 |  |  | $ | — |
Equity securities: |  |  |  |  |
Domestic value | 42,769 |  |  | 42,769 |  |  | — |
Domestic growth | 58,424 |  |  | 58,424 |  |  | — |
International and other | 1,681 |  |  | 1,681 |  |  | — |
Fixed income securities: |  |  |  |  |
U.S. Government | 25,544 |  |  | 24,254 |  |  | 1,290 |
Municipals | 61,106 |  |  | — |  |  | 61,106 |
Corporate and other | 24,458 |  |  | 4,169 |  |  | 20,289 |
| $ | 242,795 |  |  | $ | 160,110 |  |  | $ | 82,685 |
Commodity derivative assets | $ | 9,513 |  |  | $ | — |  |  | $ | 9,513 |
Commodity derivative liabilities | (984 | ) |  | — |  |  | (984 | )
Net | $ | 8,529 |  |  | $ | — |  |  | $ | 8,529 |
December 31, 2014 |  |  |  |  |
PNMR and PNM |  |  |  |  |
Available-for-sale securities |  |  |  |  |
Cash and cash equivalents | $ | 8,276 |  |  | $ | 8,276 |  |  | $ | — |
Equity securities: |  |  |  |  |
Domestic value | 45,340 |  |  | 45,340 |  |  | — |
Domestic growth | 74,053 |  |  | 74,053 |  |  | — |
International and other | 16,599 |  |  | 16,599 |  |  | — |
Fixed income securities: |  |  |  |  |
U.S. Government | 22,563 |  |  | 20,808 |  |  | 1,755 |
Municipals | 68,973 |  |  | — |  |  | 68,973 |
Corporate and other | 14,341 |  |  | 4,843 |  |  | 9,498 |
| $ | 250,145 |  |  | $ | 169,919 |  |  | $ | 80,226 |
Commodity derivative assets | $ | 11,232 |  |  | $ | — |  |  | $ | 11,232 |
Commodity derivative liabilities | (1,686 | ) |  | — |  |  | (1,686 | )
Net | $ | 9,546 |  |  | $ | — |  |  | $ | 9,546 |
Fair Value, by Balance Sheet Grouping | 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
September 30, 2015 | (In thousands)
PNMR |  |  |  |  |  |  |  |  |
Long-term debt | $ | 2,105,381 |  |  | $ | 2,297,887 |  |  | $ | — |  |  | $ | 2,297,887 |  |  | $ | — |
Investment in PVNGS lessor notes | $ | 8,824 |  |  | $ | 8,947 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,947 |
Other investments | $ | 490 |  |  | $ | 1,142 |  |  | $ | 490 |  |  | $ | — |  |  | $ | 652 |
PNM |  |  |  |  |  |  |  |  |
Long-term debt | $ | 1,589,991 |  |  | $ | 1,719,947 |  |  | $ | — |  |  | $ | 1,719,947 |  |  | $ | — |
Investment in PVNGS lessor notes | $ | 8,824 |  |  | $ | 8,947 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,947 |
Other investments | $ | 252 |  |  | $ | 252 |  |  | $ | 252 |  |  | $ | — |  |  | $ | — |
TNMP |  |  |  |  |  |  |  |  |
Long-term debt | $ | 365,390 |  |  | $ | 427,940 |  |  | $ | — |  |  | $ | 427,940 |  |  | $ | — |
Other investments | $ | 238 |  |  | $ | 238 |  |  | $ | 238 |  |  | $ | — |  |  | $ | — |
December 31, 2014 |  |  |  |  |  |  |  |  |
PNMR |  |  |  |  |  |  |  |  |
Long-term debt | $ | 1,975,090 |  |  | $ | 2,173,117 |  |  | $ | — |  |  | $ | 2,173,117 |  |  | $ | — |
Investment in PVNGS lessor notes | $ | 31,232 |  |  | $ | 32,836 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,836 |
Other investments | $ | 1,762 |  |  | $ | 2,375 |  |  | $ | 639 |  |  | $ | — |  |  | $ | 1,736 |
PNM |  |  |  |  |  |  |  |  |
Long-term debt | $ | 1,490,657 |  |  | $ | 1,624,222 |  |  | $ | — |  |  | $ | 1,624,222 |  |  | $ | — |
Investment in PVNGS lessor notes | $ | 31,232 |  |  | $ | 32,836 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,836 |
Other investments | $ | 397 |  |  | $ | 397 |  |  | $ | 397 |  |  | $ | — |  |  | $ | — |
TNMP |  |  |  |  |  |  |  |  |
Long-term debt | $ | 365,667 |  |  | $ | 427,356 |  |  | $ | — |  |  | $ | 427,356 |  |  | $ | — |
Other investments | $ | 242 |  |  | $ | 242 |  |  | $ | 242 |  |  | $ | — |  |  | $ | — |

X
- Definition Fair Value of Derivative and Other Financial Instruments [Abstract] + References No definition available. + Details
Name: | pnm_FairValueOfDerivativeAndOtherFinancialInstrumentsAbstract
Namespace Prefix: | pnm_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule of Collateral Related to Derivative [Table Text Block] + References No definition available. + Details
Name: | pnm_ScheduleOfCollateralRelatedToDerivativeTableTextBlock
Namespace Prefix: | pnm_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27337-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27198-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 + Details
Name: | us-gaap_AvailableForSaleSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration