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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [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, 2016	$	352			$	38			$	390
Actual return on assets sold during the period	1				—				1
Actual return on assets still held at period end	(7		)		(1		)		(8		)
Purchases	92				10				102
Sales	(247		)		(26		)		(273		)
Balance at December 31, 2017	191				21				212
Actual return on assets sold during the period	(7		)		(1		)		(8		)
Actual return on assets still held at period end	(1		)		—				(1		)
Purchases	192				23				215
Sales	(87		)		(10		)		(97		)
Balance at December 31, 2018	$	288			$	33			$	321

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

	PNM								TNMP
	Year Ended December 31,								Year Ended December 31,
	2018				2017				2018				2017
	(In thousands)
PBO at beginning of year	$	623,983			$	621,751			$	68,423			$	67,061
Service cost	—				—				—				—
Interest cost	24,270				26,908				2,625				2,887
Actuarial (gain) loss	(41,025		)		26,298				(5,216		)		3,050
Benefits paid	(42,970		)		(50,974		)		(5,245		)		(4,575		)
PBO at end of year	564,258				623,983				60,587				68,423
Fair value of plan assets at beginning of year	562,016				543,601				63,499				60,624
Actual return on plan assets	(29,068		)		69,389				(3,180		)		7,450
Employer contributions	—				—				—				—
Benefits paid	(42,970		)		(50,974		)		(5,245		)		(4,575		)
Fair value of plan assets at end of year	489,978				562,016				55,074				63,499
Funded status – asset (liability) for pension benefits	$	(74,280	)		$	(61,967	)		$	(5,513	)		$	(4,924	)

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

	PNM								TNMP
	Year Ended December 31,								Year Ended December 31,
	2018				2017				2018				2017
	(In thousands)
APBO at beginning of year	$	89,897			$	94,269			$	12,279			$	12,830
Service cost	83				96				134				143
Interest cost	3,439				4,025				477				556
Participant contributions	2,390				3,069				174				379
Actuarial (gain) loss	(12,206		)		(1,601		)		(2,213		)		(381		)
Benefits paid	(8,298		)		(9,961		)		(787		)		(1,248		)
APBO at end of year	75,305				89,897				10,064				12,279
Fair value of plan assets at beginning of year	80,356				72,694				10,002				8,544
Actual return on plan assets	(7,669		)		14,222				(988		)		1,642
Employer contributions	2,924				332				343				685
Participant contributions	2,390				3,069				174				379
Benefits paid	(8,298		)		(9,961		)		(787		)		(1,248		)
Fair value of plan assets at end of year	69,703				80,356				8,744				10,002
Funded status – asset (liability)	$	(5,602	)		$	(9,541	)		$	(1,320	)		$	(2,277	)

Schedule of Assumptions Used

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	2018			2017			2016
Discount rate for determining December 31 PBO	4.66	%		4.05	%		4.51	%
Discount rate for determining net periodic benefit cost	4.05	%		4.51	%		5.29	%
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
Discount rate for determining December 31 PBO	4.63	%		4.01	%		4.49	%
Discount rate for determining net periodic benefit cost	4.01	%		4.49	%		5.39	%
Long-term rate of return on plan assets	N/A			N/A			N/A
Rate of compensation increase	N/A			N/A			N/A

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	2018			2017			2016
Discount rate for determining December 31 APBO	4.63	%		4.00	%		4.47	%
Discount rate for determining net periodic benefit cost	4.00	%		4.47	%		5.34	%
Expected return on plan assets	7.42	%		7.50	%		7.70	%
Rate of compensation increase	N/A			N/A			N/A
TNMP
Discount rate for determining December 31 APBO	4.63	%		4.00	%		4.47	%
Discount rate for determining net periodic benefit cost	4.00	%		4.47	%		5.34	%
Expected return on plan assets	5.86	%		5.40	%		5.70	%
Rate of compensation increase	N/A			N/A			N/A

Actuarial (gain) loss results from changes in:

	PNM								TNMP
	Year Ended December 31,								Year Ended December 31,
	2018				2017				2018				2017
	(in thousands)
Discount rates	$	(34,769	)		$	27,547			$	(4,278	)		$	3,528
Demographic experience	431				(1,249		)		(301		)		(517		)
Mortality rate	(6,966		)		—				(705		)		—
Other assumptions and experience	279				—				68				39
	$	(41,025	)		$	26,298			$	(5,216	)		$	3,050

Actuarial (gain) loss results from changes in:

	PNM								TNMP
	Year Ended December 31,								Year Ended December 31,
	2018				2017				2018				2017
	(in thousands)
Discount rates	$	(4,076	)		$	3,536			$	(710	)		$	613
Claims, contributions, and demographic experience	(3,174		)		(5,845		)		72				(994		)
Assumed participation rate	(4,040		)		—				(1,461		)		—
Mortality rate	(916		)		—				(114		)		—
Medical benefits	—				1,425				—				—
Dental trend assumption	—				(717		)		—				—
	$	(12,206	)		$	(1,601	)		$	(2,213	)		$	(381	)

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	2018			2017			2016
Discount rate for determining December 31 PBO	4.65	%		4.05	%		4.51	%
Discount rate for determining net periodic benefit cost (income)	4.05	%		4.51	%		5.29	%
Expected return on plan assets	6.54	%		6.40	%		6.50	%
Rate of compensation increase	N/A			N/A			N/A
TNMP
Discount rate for determining December 31 PBO	4.63	%		4.01	%		4.49	%
Discount rate for determining net periodic benefit cost (income)	4.01	%		4.49	%		5.39	%
Expected return on plan assets	6.57	%		6.40	%		6.50	%
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, 2018.

	PNM								TNMP
	December 31, 2018								December 31, 2018
	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	$	(1,045	)		$	148,526			$	—
Experience (gain) loss	—				22,728				1,926
Regulatory asset (liability) adjustment	1,045				(13,571		)		(1,926		)
Amortization recognized in net periodic benefit cost (income)	—				(7,409		)		—
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year	$	—			$	150,274			$	—
Amortization expected to be recognized in 2019	$	—			$	7,270			$	—

The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2018.

	December 31, 2018
	PNM				TNMP
	(In thousands)
Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year	$	2,450			$	—
Experience (gain) loss	(508		)		4
Regulatory asset (liability) adjustment	295				(4		)
Amortization recognized in net periodic benefit cost (income)	(151		)		—
Amount in AOCI not yet recognized in net periodic benefit cost at end of year	$	2,086			$	—
Amortization expected to be recognized in 2019	$	133			$	—

Schedule of Net Benefit Costs

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

	Year Ended December 31,
	2018				2017				2016
	(In thousands)
PNM
Service cost	$	83			$	96			$	140
Interest cost	3,439				4,025				4,346
Expected return on plan assets	(5,414		)		(5,230		)		(5,483		)
Amortization of net (gain) loss	2,354				3,682				1,145
Amortization of prior service credit	(1,664		)		(1,663		)		(30		)
Net periodic benefit cost (income)	$	(1,202	)		$	910			$	118
TNMP
Service cost	$	134			$	143			$	186
Interest cost	477				556				677
Expected return on plan assets	(542		)		(456		)		(490		)
Amortization of net (gain) loss	(227		)		(79		)		(40		)
Amortization of prior service cost	—				—				—
Net periodic benefit cost (income)	$	(158	)		$	164			$	333

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

	Year Ended December 31,
	2018				2017				2016
	(In thousands)
PNM
Service cost	$	—			$	—			$	—
Interest cost	622				697				812
Amortization of net (gain) loss	359				313				256
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	981			$	1,010			$	1,068
TNMP
Service cost	$	—			$	—			$	—
Interest cost	29				33				40
Amortization of net (gain) loss	15				9				2
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	44			$	42			$	42

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

	Year Ended December 31,
	2018				2017				2016
	(In thousands)
PNM
Service cost	$	—			$	—			$	—
Interest cost	24,270				26,908				30,307
Expected return on plan assets	(34,686		)		(33,803		)		(35,416		)
Amortization of net (gain) loss	16,348				16,006				13,820
Amortization of prior service cost	(965		)		(965		)		(965		)
Net periodic benefit cost	$	4,967			$	8,146			$	7,746
TNMP
Service cost	$	—			$	—			$	—
Interest cost	2,625				2,887				3,304
Expected return on plan assets	(3,963		)		(3,779		)		(3,943		)
Amortization of net (gain) loss	1,088				923				700
Amortization of prior service cost	—				—				—
Net periodic benefit cost (income)	$	(250	)		$	31			$	61

Schedule of Expected Benefit Payments

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

	PNM				TNMP
	(In thousands)
2019	$	7,365			$	629
2020	7,309				653
2021	7,029				674
2022	6,653				699
2023	6,351				714
2024 - 2028	26,678				3,558

The following pension benefit payments are expected to be paid:

	PNM				TNMP
	(In thousands)
2019	$	46,125			$	5,137
2020	45,595				5,065
2021	44,804				5,005
2022	44,000				4,886
2023	43,066				4,667
2024 - 2028	199,157				21,075

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

	PNM				TNMP
	(In thousands)
2019	$	1,627			$	141
2020	1,463				91
2021	1,427				88
2022	1,385				84
2023	1,337				79
2024 - 2028	5,792				301

Schedule of Health Care Cost Trend Rates

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

	PNM
	December 31,
	2018			2017
Health care cost trend rate assumed for next year	6.5	%		6.5	%
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	2026			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
	1-Percentage- Point  Increase				1-Percentage- Point  Decrease
	(In thousands)
Effect on total of service and interest cost	$	60			$	100
Effect on APBO	$	1,158			$	(1,529	)

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								TNMP
	Year Ended December 31,								Year Ended December 31,
	2018				2017				2018				2017
	(In thousands)
PBO at beginning of year	$	16,117			$	16,212			$	771			$	787
Service cost	—				—				—				—
Interest cost	622				697				29				33
Actuarial (gain) loss	(508		)		674				(4		)		44
Benefits paid	(1,505		)		(1,466		)		(94		)		(93		)
PBO at end of year – funded status	14,726				16,117				702				771
Less current liability	1,627				1,501				141				93
Non-current liability	$	13,099			$	14,616			$	561			$	678

Summary of Expenses for Other Retirement Plans

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

	Year Ended December 31,
	2018				2017				2016
	(In thousands)
PNMR
401(k) plan	$	16,677			$	16,452			$	17,762
Non-qualified plan	$	865			$	3,702			$	2,017
PNM
401(k) plan	$	12,052			$	12,120			$	13,397
Non-qualified plan	$	621			$	2,834			$	1,535
TNMP
401(k) plan	$	4,625			$	4,332			$	4,365
Non-qualified plan	$	244			$	868			$	482

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