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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

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, 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
Actual return on assets sold during the period	(48		)		(5		)		(53		)
Actual return on assets still held at period end	—				—				—
Purchases	133				15				148
Sales	(373		)		(43		)		(416		)
Balance at December 31, 2019	$	—			$	—			$	—

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,
	2019				2018				2019				2018
	(In thousands)
PBO at beginning of year	$	564,258			$	623,983			$	60,587			$	68,423
Service cost	—				—				—				—
Interest cost	25,175				24,270				2,686				2,625
Actuarial (gain) loss	61,151				(41,025		)		7,889				(5,216		)
Benefits paid	(44,839		)		(42,970		)		(5,588		)		(5,245		)
PBO at end of year	605,745				564,258				65,574				60,587
Fair value of plan assets at beginning of year	489,978				562,016				55,074				63,499
Actual return on plan assets	86,328				(29,068		)		9,881				(3,180		)
Employer contributions	—				—				—				—
Benefits paid	(44,839		)		(42,970		)		(5,588		)		(5,245		)
Fair value of plan assets at end of year	531,467				489,978				59,367				55,074
Funded status – asset (liability) for pension benefits	$	(74,278	)		$	(74,280	)		$	(6,207	)		$	(5,513	)

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,
	2019				2018				2019				2018
	(In thousands)
APBO at beginning of year	$	75,305			$	89,897			$	10,064			$	12,279
Service cost	53				83				50				134
Interest cost	3,316				3,439				451				477
Participant contributions	2,131				2,390				316				174
Actuarial (gain) loss	2,587				(12,206		)		1,004				(2,213		)
Benefits paid	(8,271		)		(8,298		)		(650		)		(787		)
APBO at end of year	75,121				75,305				11,235				10,064
Fair value of plan assets at beginning of year	69,703				80,356				8,744				10,002
Actual return on plan assets	19,257				(7,669		)		2,434				(988		)
Employer contributions	3,580				2,924				—				343
Participant contributions	2,131				2,390				316				174
Benefits paid	(8,271		)		(8,298		)		(650		)		(787		)
Fair value of plan assets at end of year	86,400				69,703				10,844				8,744
Funded status – asset (liability)	$	11,279			$	(5,602	)		$	(391	)		$	(1,320	)

Schedule of Assumptions Used

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	2019			2018			2017
Discount rate for determining December 31 PBO	3.42	%		4.65	%		4.05	%
Discount rate for determining net periodic benefit cost (income)	4.65	%		4.05	%		4.51	%
Expected return on plan assets	6.86	%		6.54	%		6.40	%
Rate of compensation increase	N/A			N/A			N/A
TNMP
Discount rate for determining December 31 PBO	3.46	%		4.63	%		4.01	%
Discount rate for determining net periodic benefit cost (income)	4.63	%		4.01	%		4.49	%
Expected return on plan assets	6.90	%		6.57	%		6.40	%
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,
	2019				2018				2019				2018
	(in thousands)
Discount rates	$	66,108			$	(34,769	)		$	8,006			$	(4,278	)
Demographic experience	(732		)		431				394				(301		)
Mortality rate	(4,225		)		(6,966		)		(296		)		(705		)
Other assumptions and experience	—				279				(215		)		68
	$	61,151			$	(41,025	)		$	7,889			$	(5,216	)

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	2019			2018			2017
Discount rate for determining December 31 APBO	3.42	%		4.63	%		4.00	%
Discount rate for determining net periodic benefit cost	4.63	%		4.00	%		4.47	%
Expected return on plan assets	7.20	%		7.42	%		7.50	%
Rate of compensation increase	N/A			N/A			N/A
TNMP
Discount rate for determining December 31 APBO	3.42	%		4.63	%		4.00	%
Discount rate for determining net periodic benefit cost	4.63	%		4.00	%		4.47	%
Expected return on plan assets	5.80	%		5.86	%		5.40	%
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	2019			2018			2017
Discount rate for determining December 31 PBO	3.44	%		4.66	%		4.05	%
Discount rate for determining net periodic benefit cost	4.66	%		4.05	%		4.51	%
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	3.46	%		4.63	%		4.01	%
Discount rate for determining net periodic benefit cost	4.63	%		4.01	%		4.49	%
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								TNMP
	Year Ended December 31,								Year Ended December 31,
	2019				2018				2019				2018
	(in thousands)
Discount rates	$	7,236			$	(4,076	)		$	1,375			$	(710	)
Claims, contributions, and demographic experience	(4,022		)		(3,174		)		(311		)		72
Assumed participation rate	—				(4,040		)		—				(1,461		)
Mortality rate	(627		)		(916		)		(60		)		(114		)
	$	2,587			$	(12,206	)		$	1,004			$	(2,213	)

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

The following table presents pre-tax information about net actuarial (gain) loss in AOCI as of December 31, 2019.

	PNM				TNMP
	(In thousands)
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year	$	150,274			$	—
Experience (gain) loss	8,926				1,877
Regulatory asset (liability) adjustment	(5,539		)		(1,877		)
Amortization recognized in net periodic benefit cost (income)	(7,270		)		—
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year	$	146,391			$	—
Amortization expected to be recognized in 2020	$	8,131			$	—

The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2019.

	December 31, 2019
	PNM				TNMP
	(In thousands)
Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year	$	2,086			$	—
Experience (gain) loss	1,053				54
Regulatory asset (liability) adjustment	(611		)		(54		)
Amortization recognized in net periodic benefit cost (income)	(133		)		—
Amount in AOCI not yet recognized in net periodic benefit cost at end of year	$	2,395			$	—
Amortization expected to be recognized in 2020	$	169			$	—

Schedule of Net Benefit Costs

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

	Year Ended December 31,
	2019				2018				2017
	(In thousands)
PNM
Service cost	$	—			$	—			$	—
Interest cost	25,175				24,270				26,908
Expected return on plan assets	(34,103		)		(34,686		)		(33,803		)
Amortization of net (gain) loss	15,518				16,348				16,006
Amortization of prior service cost	(965		)		(965		)		(965		)
Net periodic benefit cost	$	5,625			$	4,967			$	8,146
TNMP
Service cost	$	—			$	—			$	—
Interest cost	2,686				2,625				2,887
Expected return on plan assets	(3,868		)		(3,963		)		(3,779		)
Amortization of net (gain) loss	941				1,088				923
Amortization of prior service cost	—				—				—
Net periodic benefit cost (income)	$	(241	)		$	(250	)		$	31

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

	Year Ended December 31,
	2019				2018				2017
	(In thousands)
PNM
Service cost	$	53			$	83			$	96
Interest cost	3,316				3,439				4,025
Expected return on plan assets	(5,278		)		(5,414		)		(5,230		)
Amortization of net (gain) loss	675				2,354				3,682
Amortization of prior service credit	(397		)		(1,664		)		(1,663		)
Net periodic benefit cost (income)	$	(1,631	)		$	(1,202	)		$	910
TNMP
Service cost	$	50			$	134			$	143
Interest cost	451				477				556
Expected return on plan assets	(517		)		(542		)		(456		)
Amortization of net (gain) loss	(444		)		(227		)		(79		)
Amortization of prior service cost	—				—				—
Net periodic benefit cost (income)	$	(460	)		$	(158	)		$	164

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

	Year Ended December 31,
	2019				2018				2017
	(In thousands)
PNM
Service cost	$	—			$	—			$	—
Interest cost	651				622				697
Amortization of net (gain) loss	318				359				313
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	969			$	981			$	1,010
TNMP
Service cost	$	—			$	—			$	—
Interest cost	30				29				33
Amortization of net (gain) loss	15				15				9
Amortization of prior service cost	—				—				—
Net periodic benefit cost	$	45			$	44			$	42

Schedule of Expected Benefit Payments

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

	PNM				TNMP
	(In thousands)
2020	$	1,459			$	93
2021	1,424				90
2022	1,383				86
2023	1,335				82
2024	1,280				76
2025 - 2029	5,419				273

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

	PNM				TNMP
	(In thousands)
2020	$	6,770			$	647
2021	6,584				670
2022	6,216				695
2023	6,017				709
2024	5,755				719
2025 - 2029	24,122				3,497

The following pension benefit payments are expected to be paid:

	PNM				TNMP
	(In thousands)
2020	$	46,600			$	5,321
2021	45,636				5,244
2022	44,702				5,111
2023	43,595				4,895
2024	42,637				4,652
2025 - 2029	193,885				20,846

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,
	2019			2018
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			2026

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	$	55			$	(77	)
Effect on APBO	$	1,310			$	(1,744	)

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,
	2019				2018				2019				2018
	(In thousands)
PBO at beginning of year	$	14,726			$	16,117			$	702			$	771
Service cost	—				—				—				—
Interest cost	651				622				30				29
Actuarial (gain) loss	1,053				(508		)		54				(4		)
Benefits paid	(1,436		)		(1,505		)		(94		)		(94		)
PBO at end of year – funded status	14,994				14,726				692				702
Less current liability	1,434				1,627				91				141
Non-current liability	$	13,560			$	13,099			$	601			$	561

Summary of Expenses for Other Retirement Plans

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

	Year Ended December 31,
	2019				2018				2017
	(In thousands)
PNMR
401(k) plan	$	16,097			$	16,677			$	16,452
Non-qualified plan	$	4,551			$	865			$	3,702
PNM
401(k) plan	$	11,587			$	12,052			$	12,120
Non-qualified plan	$	3,384			$	621			$	2,834
TNMP
401(k) plan	$	4,511			$	4,625			$	4,332
Non-qualified plan	$	1,167			$	244			$	868

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