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Fair Value of Derivative and Other Financial Instruments (Tables)
 3 Months Ended
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

 
$
—

 
$
—