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Fair Value of Derivative and Other Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2018
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
| March 31, 2018 |  | December 31, 2017
| (In thousands)
Current assets | $ | 1,087 |  |  | $ | 1,088 |
Deferred charges | 3,277 |  |  | 3,556 |
| 4,364 |  |  | 4,644 |
Current liabilities | (1,328 | ) |  | (1,182 | )
Long-term liabilities | (3,277 | ) |  | (3,556 | )
| (4,605 | ) |  | (4,738 | )
Net | $ | (241 | ) |  | $ | (94 | )
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
| March 31,
| 2018 |  | 2017
| (In thousands)
Electric operating revenues | $ | (10 | ) |  | $ | 3,341 |
Cost of energy | 12 |  |  | 11 |
Total gain | $ | 2 |  |  | $ | 3,352 |
Schedule of Net Buy (Sell) Volume Positions | The table below presents PNM’s net buy (sell) volume positions:
|  | Economic Hedges
|  | MMBTU |  | MWh
March 31, 2018 |  | 405,000 |  |  | (40,800 | )
December 31, 2017 |  | 100,000 |  |  | — |
Schedule of Fair Value and Gross Unrealized Gains in Available-for-sale Securities |
Schedule of Gross Realized Gains and Losses | Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table.
|  | Three Months Ended March 31, 2018
|  | (In thousands)
Equity securities: |  |
Net gains from equity securities sold |  | $ | 2,828 |
Net gains from equity securities still held |  | 136 |
Total net gains on equity securities |  | 2,964 |
Available-for-sale debt securities: |  |
Net gains (losses) on debt securities |  | (2,676 | )
Net gains on investment securities |  | $ | 288 |
The proceeds and gross realized gains and losses on the disposition of securities held in the NDT and coal mine reclamation trusts 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 ($1.2) million and $1.1 million for the three months ended March 31, 2018 and 2017.
| Three Months Ended
| March 31,
| 2018 |  | 2017
| (In thousands)
Proceeds from sales | $ | 626,729 |  |  | $ | 266,388 |
Gross realized gains | $ | 6,021 |  |  | $ | 8,645 |
Gross realized (losses) | $ | (4,677 | ) |  | $ | (3,085 | )
Investments Classified by Contractual Maturity Date | At March 31, 2018, 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 | $ | 8,562 |  |  | $ | — |
After 1 year through 5 years | 53,094 |  |  | 57,486 |
After 5 years through 10 years | 66,603 |  |  | — |
After 10 years through 15 years | 9,735 |  |  | — |
After 15 years through 20 years | 10,061 |  |  | — |
After 20 years | 36,263 |  |  | — |
| $ | 184,318 |  |  | $ | 57,486 |
Schedule of Investments |
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Unrealized Gains
| (In thousands)
March 31, 2018 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 22,810 |  |  | $ | 22,810 |  |  | $ | — |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |  |  |
Corporate stocks, common | 35,185 |  |  | 35,185 |  |  | — |  |  | — |  |  |
Corporate stocks, preferred | 6,714 |  |  | 865 |  |  | 5,849 |  |  | — |  |  |
Mutual funds and other | 74,976 |  |  | 74,976 |  |  | — |  |  | — |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |
U.S. Government | 23,829 |  |  | 23,829 |  |  | — |  |  | — |  |  | $ | 271 |
International Government | 9,894 |  |  | — |  |  | 9,894 |  |  | — |  |  | 61 |
Municipals | 35,782 |  |  | — |  |  | 35,782 |  |  | — |  |  | 103 |
Corporate and other | 114,813 |  |  | — |  |  | 112,462 |  |  | 2,351 |  |  | 680 |
| $ | 324,003 |  |  | $ | 157,665 |  |  | $ | 163,987 |  |  | $ | 2,351 |  |  | $ | 1,115 |
Commodity derivative assets | $ | 4,364 |  |  | $ | — |  |  | $ | 4,364 |  |  | $ | — |  |  |
Commodity derivative liabilities | (4,605 | ) |  | — |  |  | (4,605 | ) |  | — |  |  |
Net | $ | (241 | ) |  | $ | — |  |  | $ | (241 | ) |  | $ | — |  |  |
December 31, 2017 |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 52,636 |  |  | $ | 52,636 |  |  | $ | — |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |  |  |
Domestic value | 40,032 |  |  | 40,032 |  |  | — |  |  | — |  |  | $ | 4,011 |
Domestic growth | 35,456 |  |  | 35,456 |  |  | — |  |  | — |  |  | 3,995 |
International and other | 45,867 |  |  | 42,332 |  |  | 3,535 |  |  | — |  |  | 6,810 |
Fixed income securities: |  |  |  |  |  |  |  |  |
U.S. Government | 34,317 |  |  | 33,645 |  |  | 672 |  |  | — |  |  | 273 |
Municipals | 48,076 |  |  | — |  |  | 48,076 |  |  | — |  |  | 1,225 |
Corporate and other | 67,140 |  |  | — |  |  | 67,140 |  |  | — |  |  | 1,714 |
| $ | 323,524 |  |  | $ | 204,101 |  |  | $ | 119,423 |  |  | $ | — |  |  | $ | 18,028 |
Commodity derivative assets | $ | 4,644 |  |  | $ | — |  |  | $ | 4,644 |  |  | $ | — |  |  |
Commodity derivative liabilities | (4,738 | ) |  | — |  |  | (4,738 | ) |  | — |  |  |
Net | $ | (94 | ) |  | $ | — |  |  | $ | (94 | ) |  | $ | — |  |  |
Summary of Level 3 Measurements | A reconciliation of the changes in Level 3 fair value measurements is as follows:
| Corporate Debt
| (In thousands)
Balance at December 31, 2017 | $ | — |
Actual return on assets sold during the period | (3 | )
Actual return on assets still held at period end | (11 | )
Purchases | 2,724 |
Sales | (359 | )
Balances at March 31, 2018 | $ | 2,351 |
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
March 31, 2018 | (In thousands)
PNMR |  |  |  |  |  |  |  |  |
Long-term debt | $ | 2,581,549 |  |  | $ | 2,661,283 |  |  | $ | — |  |  | $ | 2,661,283 |  |  | $ | — |
Westmoreland Loan | $ | 50,991 |  |  | $ | 57,486 |  |  | $ | — |  |  | $ | — |  |  | $ | 57,486 |
Other investments | $ | 375 |  |  | $ | 375 |  |  | $ | 375 |  |  | $ | — |  |  | $ | — |
PNM |  |  |  |  |  |  |  |  |
Long-term debt | $ | 1,658,431 |  |  | $ | 1,703,098 |  |  | $ | — |  |  | $ | 1,703,098 |  |  | $ | — |
Other investments | $ | 155 |  |  | $ | 155 |  |  | $ | 155 |  |  | $ | — |  |  | $ | — |
TNMP |  |  |  |  |  |  |  |  |
Long-term debt | $ | 480,716 |  |  | $ | 513,690 |  |  | $ | — |  |  | $ | 513,690 |  |  | $ | — |
Other investments | $ | 220 |  |  | $ | 220 |  |  | $ | 220 |  |  | $ | — |  |  | $ | — |
December 31, 2017 |  |  |  |  |  |  |  |  |
PNMR |  |  |  |  |  |  |  |  |
Long-term debt | $ | 2,437,645 |  |  | $ | 2,554,836 |  |  | $ | — |  |  | $ | 2,554,836 |  |  | $ | — |
Westmoreland Loan | $ | 56,640 |  |  | $ | 66,588 |  |  | $ | — |  |  | $ | — |  |  | $ | 66,588 |
Other investments | $ | 503 |  |  | $ | 503 |  |  | $ | 503 |  |  | $ | — |  |  | $ | — |
PNM |  |  |  |  |  |  |  |  |
Long-term debt | $ | 1,657,910 |  |  | $ | 1,727,135 |  |  | $ | — |  |  | $ | 1,727,135 |  |  | $ | — |
Other investments | $ | 283 |  |  | $ | 283 |  |  | $ | 283 |  |  | $ | — |  |  | $ | — |
TNMP |  |  |  |  |  |  |  |  |
Long-term debt | $ | 480,620 |  |  | $ | 527,563 |  |  | $ | — |  |  | $ | 527,563 |  |  | $ | — |
Other investments | $ | 220 |  |  | $ | 220 |  |  | $ | 220 |  |  | $ | — |  |  | $ | — |

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- Definition Fair Value of Derivative and Other Financial Instruments [Abstract] + References No definition available. + Details
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- 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=75019621&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=82897076&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=82897076&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=75019621&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=82897076&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=82897076&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=82897076&loc=d3e27290-111563 + Details
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- 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=66048111&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 (bb) -URI http://asc.fasb.org/extlink&oid=66048111&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 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 4: 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=66048111&loc=d3e19207-110258 Reference 5: 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=66048111&loc=SL7498348-110258 Reference 6: 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=66048111&loc=d3e19190-110258 + Details
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- 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=84234895&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=84234895&loc=SL5618551-113959 + Details
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