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Fair Value of Derivative and Other Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value of Derivative and Other Financial Instruments [Abstract]  
Summary of Derivatives
PNM’s 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,
2017
 
December 31,
2016
 
(In thousands)
Current assets
$
3,093

 
$
5,224

Deferred charges
3,846

 
—

 
6,939

 
5,224

Current liabilities
(1,279
)
 
(2,339
)
Long-term liabilities
(3,846
)
 
—

 
(5,125
)
 
(2,339
)
Net
$
1,814

 
$
2,885
Effect of Mark-to-Market on Earnings, Excluding Tax Effects
The following table presents the effect of mark-to-market commodity derivative instruments on PNM’s 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,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Electric operating revenues
$
(2,237
)
 
$
1,652

 
$
5,697

 
$
214

Cost of energy
(14
)
 
(1
)
 
(5,289
)
 
(1,113
)
   Total gain (loss)
$
(2,251
)
 
$
1,651

 
$
408

 
$
(899
)
Schedule of Net Buy (Sell) Volume Positions
The table below presents PNM’s net buy (sell) volume positions:
 
 
Economic Hedges
 
 
MMBTU
 
MWh
 
 
 
 
 
September 30, 2017
 
100,000

 
(630,933
)
December 31, 2016
 
254,100

 
(2,471,600
)
Schedule of Fair Value and Gross Unrealized Gains in 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, 2017
 
December 31, 2016
 
Unrealized Gains
 
Fair Value
 
Unrealized Gains
 
Fair Value
 
 
 
(In thousands)
 
 
Cash and cash equivalents
$
—

 
$
8,151

 
$
—

 
$
23,683

Equity securities:
 
 
 
 
 
 
 
   Domestic value
5,252

 
72,162

 
1,135

 
34,796

   Domestic growth
5,775

 
73,345

 
3,032

 
47,595

International and other
4,865

 
43,167

 
2,029

 
27,481

Fixed income securities:
 
 
 
 
 
 
 
   U.S. Government
307

 
28,960

 
115

 
40,962

   Municipals
998

 
41,131

 
585

 
43,789

   Corporate and other
1,434

 
39,528

 
553

 
54,671

 
$
18,631

 
$
306,444

 
$
7,449

 
$
272,977
Schedule of Gross Realized Gains and Losses
The proceeds and gross realized gains and losses on the disposition of available-for-sale securities 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 (increase)/decrease in realized impairment losses of $0.1 million and $1.1 million for the three and nine months ended September 30, 2017 and $0.1 million and $1.0 million for the three and nine months ended September 30, 2016.
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Proceeds from sales
$
98,532

 
$
86,975

 
$
456,577

 
$
280,989

Gross realized gains
$
8,128

 
$
7,026

 
$
24,745

 
$
27,273

Gross realized (losses)
$
(2,829
)
 
$
(2,565
)
 
$
(8,150
)
 
$
(12,913
)
Investments Classified by Contractual Maturity Date
At September 30, 2017, 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
 
(In thousands)
Within 1 year
$
3,913

 
$
—

After 1 year through 5 years
22,766

 
76,353

After 5 years through 10 years
25,456

 
—

After 10 years through 15 years
5,178

 
—

After 15 years through 20 years
10,692

 
—

After 20 years
41,614

 
—

 
$
109,619

 
$
76,353
Schedule of Investments
Items recorded at fair value by PNM 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, 2017 and December 31, 2016 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)
 
(In thousands)
September 30, 2017
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
   Cash and cash equivalents
$
8,151

 
$
8,151

 
$
—

   Equity securities:
 
 
 
 
 
     Domestic value
72,162

 
72,162

 
—

     Domestic growth
73,345

 
73,345

 
—

International and other
43,167

 
39,931

 
3,236

   Fixed income securities:
 
 
 
 
 
     U.S. Government
28,960

 
28,273

 
687

     Municipals
41,131

 
—

 
41,131

     Corporate and other
39,528

 
—

 
39,528

          
$
306,444

 
$
221,862

 
$
84,582

 
 
 
 
 
 
Commodity derivative assets
$
6,939

 
$
—

 
$
6,939

Commodity derivative liabilities
(5,125
)
 
—

 
(5,125
)
          Net
$
1,814

 
$
—

 
$
1,814

 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Available-for-sale securities

 
 
 
 
   Cash and cash equivalents
$
23,683

 
$
23,683

 
$
—

   Equity securities:

 
 
 
 
     Domestic value
34,796

 
34,796

 
—

     Domestic growth
47,595

 
47,595

 
—

     International and other
27,481

 
27,481

 
—

   Fixed income securities:
 
 
 
 
 
     U.S. Government
40,962

 
39,723

 
1,239

     Municipals
43,789

 
—

 
43,789

     Corporate and other
54,671

 
23,158

 
31,513

          
$
272,977

 
$
196,436

 
$
76,541

 

 
 
 
 
Commodity derivative assets
$
5,224

 
$
—

 
$
5,224

Commodity derivative liabilities
(2,339
)
 
—

 
(2,339
)
          Net
$
2,885

 
$
—

 
$
2,885
Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value
The carrying amounts and fair values of investments in the Westmoreland Loan, 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, 2017
(In thousands)
PNMR
 
 
 
 
 
 
 
 
 
Long-term debt
$
2,447,702

 
$
2,564,887

 
$
—

 
$
2,564,887

 
$
—

Westmoreland Loan
$
66,230

 
$
76,353

 
$
—

 
$
—

 
$
76,353

Other investments
$
386

 
$
386

 
$
386

 
$
—

 
$
—

PNM
 
 
 
 
 
 
 
 
 
Long-term debt
$
1,657,396

 
$
1,736,026

 
$
—

 
$
1,736,026

 
$
—

Other investments
$
166

 
$
166

 
$
166

 
$
—

 
$
—

TNMP
 
 
 
 
 
 
 
 
 
Long-term debt
$
480,589

 
$
517,977

 
$
—

 
$
517,977

 
$
—

Other investments
$
220

 
$
220

 
$
220

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
PNMR
 
 
 
 
 
 
 
 
 
Long-term debt
$
2,392,712

 
$
2,540,693

 
$
—

 
$
2,540,693

 
$
—

Westmoreland Loan
$
95,000

 
$
100,893

 
$
—

 
$
—

 
$
100,893

Other investments
$
547

 
$
1,164

 
$
547

 
$
—

 
$
617

PNM
 
 
 
 
 
 
 
 
 
Long-term debt
$
1,631,369

 
$
1,730,157

 
$
—

 
$
1,730,157

 
$
—

Other investments
$
316

 
$
316

 
$
316

 
$
—

 
$
—

TNMP
 
 
 
 
 
 
 
 
 
Long-term debt
$
420,875

 
$
468,329

 
$
—

 
$
468,329

 
$
—

Other investments
$
231

 
$
231

 
$
231

 
$
—

 
$
—