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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

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

	Fixed Income - Corporate
PNMR Master Trust	PNM Pension				TNMP Pension				Total Master Trust
	(In thousands)
Balance at December 31, 2014	$	655			$	72			$	727
Actual return on assets sold during the period	—				—				—
Actual return on assets still held at period end	(1		)		—				(1		)
Purchases	177				17				194
Sales	(112		)		(11		)		(123		)
Balance at December 31, 2015	719				78				797
Actual return on assets sold during the period	1				—				1
Actual return on assets still held at period end	19				2				21
Purchases	—				—				—
Sales	(387		)		(42		)		(429		)
Balance at December 31, 2016	$	352			$	38			$	390

The following table presents information about the PBO, fair value of plan assets, and funded status of the plans:

	PNM Plan								TNMP Plan
	Year Ended December 31,								Year Ended December 31,
	2016				2015				2016				2015
	(In thousands)
PBO at beginning of year	$	597,900			$	657,557			$	64,198			$	72,305
Service cost	—				—				—				—
Interest cost	30,307				28,255				3,304				3,043
Actuarial (gain) loss	39,463				(38,151		)		4,318				(5,157		)
Benefits paid	(45,919		)		(49,761		)		(4,759		)		(5,993		)
PBO at end of year	621,751				597,900				67,061				64,198
Fair value of plan assets at beginning of year	557,923				587,909				62,082				69,177
Actual return on plan assets	31,597				(10,225		)		3,301				(1,102		)
Employer contributions	—				30,000				—				—
Benefits paid	(45,919		)		(49,761		)		(4,759		)		(5,993		)
Fair value of plan assets at end of year	543,601				557,923				60,624				62,082
Funded status – asset (liability) for pension benefits	$	(78,150	)		$	(39,977	)		$	(6,437	)		$	(2,116	)

The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans:

	PNM Plan								TNMP Plan
	Year Ended December 31,								Year Ended December 31,
	2016				2015				2016				2015
	(In thousands)
APBO at beginning of year	$	84,674			$	95,175			$	13,106			$	14,070
Service cost	140				204				186				247
Interest cost	4,346				4,089				677				608
Participant contributions	2,690				2,439				520				320
Actuarial (gain) loss	17,877				(6,565		)		(96		)		(575		)
Benefits paid	(11,734		)		(10,668		)		(1,563		)		(1,564		)
Plan design changes	(3,724		)		—				—				—
APBO at end of year	94,269				84,674				12,830				13,106
Fair value of plan assets at beginning of year	72,952				78,175				9,111				10,094
Actual return on plan assets	5,923				(617		)		476				(82		)
Employer contributions	2,863				3,623				—				343
Participant contributions	2,690				2,439				520				320
Benefits paid	(11,734		)		(10,668		)		(1,563		)		(1,564		)
Fair value of plan assets at end of year	72,694				72,952				8,544				9,111
Funded status – asset (liability)	$	(21,575	)		$	(11,722	)		$	(4,286	)		$	(3,995	)

Schedule of Assumptions Used

Actuarial (gain) loss results from changes in:

	PNM Plan								TNMP Plan
	Year Ended December 31,								Year Ended December 31,
	2016				2015				2016				2015
	(in thousands)
Discount rates	$	6,569			$	(7,345	)		$	1,112			$	(1,322	)
Claims, contributions, and demographic experience	19,562				780				(102		)		747
Assumed participation rate	(6,335		)		—				(1,013		)		—
Mortality rate	(691		)		—				(93		)		—
Medical benefits	(1,228		)		—				—				—
	$	17,877			$	(6,565	)		$	(96	)		$	(575	)

The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected.

	Year Ended December 31,
PNM Plan	2016			2015			2014
Discount rate for determining December 31 APBO	4.47	%		5.34	%		4.45	%
Discount rate for determining net periodic benefit cost	5.34	%		4.45	%		5.21	%
Expected return on plan assets	7.70	%		7.70	%		8.50	%
Rate of compensation increase	N/A			N/A			N/A
TNMP Plan
Discount rate for determining December 31 APBO	4.47	%		5.34	%		4.45	%
Discount rate for determining net periodic benefit cost	5.34	%		4.45	%		5.21	%
Expected return on plan assets	5.70	%		5.70	%		6.50	%
Rate of compensation increase	N/A			N/A			N/A

The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected.

	Year Ended December 31,
PNM Plan	2016			2015			2014
Discount rate for determining December 31 PBO	4.51	%		5.29	%		4.48	%
Discount rate for determining net periodic benefit cost	5.29	%		4.48	%		5.27	%
Long-term rate of return on plan assets	N/A			N/A			N/A
Rate of compensation increase	N/A			N/A			N/A
TNMP Plan
Discount rate for determining December 31 PBO	4.49	%		5.39	%		4.39	%
Discount rate for determining net periodic benefit cost	5.39	%		4.39	%		5.06	%
Long-term rate of return on plan assets	N/A			N/A			N/A
Rate of compensation increase	N/A			N/A			N/A

Actuarial (gain) loss results from changes in:

	PNM Plan								TNMP Plan
	Year Ended December 31,								Year Ended December 31,
	2016				2015				2016				2015
	(in thousands)
Discount rates	$	41,849			$	(45,918	)		$	5,055			$	(6,090	)
Demographic experience	(334		)		2,778				(556		)		877
Other assumption and experience	(2,052		)		4,989				(181		)		56
	$	39,463			$	(38,151	)		$	4,318			$	(5,157	)

The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected.

	Year Ended December 31,
PNM Plan	2016			2015			2014
Discount rate for determining December 31 PBO	4.51	%		5.29	%		4.48	%
Discount rate for determining net periodic benefit cost (income)	5.29	%		4.48	%		5.27	%
Expected return on plan assets	6.50	%		6.80	%		7.20	%
Rate of compensation increase	N/A			N/A			N/A
TNMP Plan
Discount rate for determining December 31 PBO	4.49	%		5.39	%		4.39	%
Discount rate for determining net periodic benefit cost (income)	5.39	%		4.39	%		5.06	%
Expected return on plan assets	6.50	%		6.80	%		7.20	%
Rate of compensation increase	N/A			N/A			N/A

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The following table presents pre-tax information about prior service cost and net actuarial (gain) loss in AOCI as of December 31, 2016.

	PNM Plan								TNMP Plan
	December 31, 2016								December 31, 2016
	Prior service cost				Net actuarial (gain) loss				Net actuarial (gain) loss
	(In thousands)
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year	$	(1,855	)		$	146,775			$	—
Experience (gain) loss	—				43,283				4,960
Regulatory asset (liability) adjustment	—				(25,104		)		(4,960		)
Amortization recognized in net periodic benefit cost (income)	405				(5,805		)		—
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year	$	(1,450	)		$	159,149			$	—
Amortization expected to be recognized in 2017	$	(405	)		$	6,320			$	—

The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2016.

	December 31, 2016
	PNM Plan				TNMP Plan
	(In thousands)
Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year	$	2,084			$	—
Experience (gain) loss	768				47
Regulatory asset (liability) adjustment	(445		)		(47		)
Amortization recognized in net periodic benefit cost (income)	(108		)		—
Amount in AOCI not yet recognized in net periodic benefit cost at end of year	$	2,299			$	—
Amortization expected to be recognized in 2017	$	132			$	—

Schedule of Net Benefit Costs

The following table presents the components of net periodic benefit cost (income):

	Year Ended December 31,
	2016				2015				2014
	(In thousands)
PNM Plan
Service cost	$	—			$	—			$	—
Interest cost	30,307				28,255				30,163
Expected return on plan assets	(35,416		)		(39,323		)		(38,044		)
Amortization of net (gain) loss	13,820				14,820				13,020
Amortization of prior service cost	(965		)		(965		)		(965		)
Net periodic benefit cost	$	7,746			$	2,787			$	4,174
TNMP Plan
Service cost	$	—			$	—			$	—
Interest cost	3,304				3,043				3,193
Expected return on plan assets	(3,943		)		(4,420		)		(4,526		)
Amortization of net (gain) loss	700				782				665
Amortization of prior service cost	—				—				—
Net periodic benefit cost (income)	$	61			$	(595	)		$	(668	)

The following table presents the components of net periodic benefit cost:

	Year Ended December 31,
	2016				2015				2014
	(In thousands)
PNM Plan
Service cost	$	—			$	—			$	—
Interest cost	812				760				822
Amortization of net (gain) loss	256				325				210
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	1,068			$	1,085			$	1,032
TNMP Plan
Service cost	$	—			$	—			$	—
Interest cost	40				36				39
Amortization of net (gain) loss	2				5				—
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	42			$	41			$	39

The following table presents the components of net periodic benefit cost:

	Year Ended December 31,
	2016				2015				2014
	(In thousands)
PNM Plan
Service cost	$	140			$	204			$	181
Interest cost	4,346				4,089				4,630
Expected return on plan assets	(5,483		)		(5,610		)		(5,638		)
Amortization of net (gain) loss	1,145				1,966				2,225
Amortization of prior service credit	(30		)		(642		)		(1,343		)
Net periodic benefit cost	$	118			$	7			$	55
TNMP Plan
Service cost	$	186			$	247			$	237
Interest cost	677				608				619
Expected return on plan assets	(490		)		(520		)		(534		)
Amortization of net (gain) loss	(40		)		—				(122		)
Amortization of prior service cost	—				—				32
Net periodic benefit cost	$	333			$	335			$	232

Schedule of Expected Benefit Payments

The following executive retirement plan payments, which reflect expected future service, are expected:

	PNM Plan				TNMP Plan
	(In thousands)
2017	$	1,510			$	93
2018	1,487				92
2019	1,459				89
2020	1,427				86
2021	1,391				83
2022 – 2026	6,228				341

The following other postretirement benefit payments, which reflect expected future service and are net of participant contributions, are expected to be paid:

	PNM Plan				TNMP Plan
	(In thousands)
2017	$	8,425			$	803
2018	8,327				818
2019	8,092				827
2020	7,965				839
2021	7,792				859
2022 - 2026	33,891				4,466

The following pension benefit payments are expected to be paid:

	PNM Plan				TNMP Plan
	(In thousands)
2017	$	50,244			$	5,526
2018	48,398				5,728
2019	47,696				5,086
2020	46,879				5,042
2021	45,348				5,294
2022 – 2026	209,331				22,509

Schedule of Health Care Cost Trend Rates

The following table shows the assumed health care cost trend rates for the PNM postretirement benefit plan:

	PNM Plan
	December 31,
	2016			2015
Health care cost trend rate assumed for next year	6.8	%		7.0	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.0	%		5.0	%
Year that the rate reaches the ultimate trend rate	2024			2024

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

The following table shows the impact of a one-percentage-point change in assumed health care cost trend rates:

	PNM Plan
	1-Percentage- Point  Increase				1-Percentage- Point  Decrease
	(In thousands)
Effect on total of service and interest cost	$	259			$	(226	)
Effect on APBO	$	1,575			$	(2,193	)

Schedule of Net Funded Status

For the executive retirement programs, the following table presents information about the PBO and funded status of the plans:

	PNM Plan								TNMP Plan
	Year Ended December 31,								Year Ended December 31,
	2016				2015				2016				2015
	(In thousands)
PBO at beginning of year	$	16,105			$	17,730			$	794			$	878
Service cost	—				—				—				—
Interest cost	812				760				40				36
Actuarial (gain) loss	768				(908		)		47				(26		)
Benefits paid	(1,473		)		(1,477		)		(94		)		(94		)
PBO at end of year – funded status	16,212				16,105				787				794
Less current liability	1,510				1,519				93				93
Non-current liability	$	14,702			$	14,586			$	694			$	701

Summary of Expenses for Other Retirement Plans

A summary of expenses for these other retirement plans is as follows:

	Year Ended December 31,
	2016				2015				2014
	(In thousands)
PNMR
401(k) plan	$	17,762			$	16,725			$	16,703
Non-qualified plan	$	2,017			$	1,436			$	2,257
PNM
401(k) plan	$	13,397			$	12,679			$	12,745
Non-qualified plan	$	1,535			$	1,090			$	1,722
TNMP
401(k) plan	$	4,365			$	4,046			$	3,958
Non-qualified plan	$	482			$	346			$	535

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