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Fair Value of Derivative and Other Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Commodity Derivatives

PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Consolidated Balance Sheets: 

			Economic Hedges
			December 31,
			2020						2019
			(In thousands)
Other current assets			$	1,096					$	1,089
Other deferred charges			455						1,507
			1,551						2,596
Other current liabilities			(1,096)						(1,089)
Other deferred credits			(455)						(1,507)
			(1,551)						(2,596)
Net			$	—					$	—

Schedule of Realized Gain (Loss)

Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table:

						Year ended December 31,
						2020						2019						2018
						(In thousands)
Equity securities:
Net gains from equity securities sold						$	5,861					$	5,698					$	4,864
Net gains (losses) from equity securities still held						17,707						18,319						(10,523)
Total net gains (losses) on equity securities						23,568						24,017						(5,659)
Available-for-sale debt securities:
Net gains (losses) on debt securities						(1,969)						5,572						(11,517)
Net gains (losses) on investment securities						$	21,599					$	29,589					$	(17,176)

Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $(3.2) million, $3.0 million, and $(9.4) million for the years ended December 31, 2020, 2019 and 2018.

			Year Ended December 31,
			2020						2019						2018
			(In thousands)
Proceeds from sales			$	590,998					$	494,528					$	984,533
Gross realized gains			$	35,904					$	25,760					$	19,358
Gross realized (losses)			$	(28,817)					$	(17,453)					$	(16,624)

Investments Classified by Contractual Maturity Date

At December 31, 2020, the available-for-sale debt securities held by PNM, had the following final maturities:

			Fair Value
			(In thousands)
Within 1 year			$	33,301
After 1 year through 5 years			89,646
After 5 years through 10 years			89,130
After 10 years through 15 years			14,947
After 15 years through 20 years			9,256
After 20 years			43,730
			$	280,010

Schedule of Instruments Presented by Level of Hierarchy

Items recorded at fair value by PNM on the Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities.

									GAAP Fair Value Hierarchy
			Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)												Unrealized Gains
			(In thousands)
December 31, 2020
Cash and cash equivalents			$	6,107					$	6,107					$	—
Equity securities:
Corporate stocks, common			85,271						85,271						—
Corporate stocks, preferred			9,910						3,608						6,302
Mutual funds and other			58,817						58,762						55
Available-for-sale debt securities:
U.S. government			55,839						29,579						26,260												$	950
International government			16,032						—						16,032												2,537
Municipals			50,139						—						50,139												2,779
Corporate and other			158,000						3						157,997												21,121
			$	440,115					$	183,330					$	256,785											$	27,387

December 31, 2019
Cash and cash equivalents			$	15,606					$	15,606					$	—
Equity securities:
Corporate stocks, common			64,527						64,527						—
Corporate stocks, preferred			9,033						2,212						6,821
Mutual funds and other			49,848						49,786						62
Available-for-sale debt securities:
U.S. government			48,439						31,389						17,050												$	535
International government			15,292						—						15,292												1,193
Municipals			46,642						—						46,642												1,768
Corporate and other			139,445						187						139,258												10,801
			$	388,832					$	163,707					$	225,125											$	14,297

Summary of Carrying Amounts and Fair Value of Instruments

The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Consolidated Balance Sheets are presented below:

			Carrying Amount						Fair Value
December 31, 2020			(In thousands)
PNMR			$	3,295,150					$	3,355,761
PNM			$	1,696,620					$	1,602,547
TNMP			$	853,673					$	1,006,722
December 31, 2019
PNMR			$	3,007,717					$	3,142,704
PNM			$	1,748,020					$	1,795,149
TNMP			$	670,691					$	753,317

Schedule of Investments Held by the Employee Benefit Plans

The fair values of investments held by the employee benefit plans are as follows:

									GAAP Fair Value Hierarchy
			Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)
December 31, 2020									(In thousands)
PNM Pension Plan
Participation in PNMR Master Trust Investments:
Investments categorized within fair value hierarchy			$	498,907					$	241,445					$	257,462
Uncategorized investments			88,984
Total Master Trust Investments			$	587,891
TNMP Pension Plan
Participation in PNMR Master Trust Investments:
Investments categorized within fair value hierarchy			$	56,966					$	28,732					$	28,234
Uncategorized investments			9,230
Total Master Trust Investments			$	66,196
PNM OPEB Plan
Cash and cash equivalents			$	1,310					$	1,310					$	—
Equity securities:
Mutual funds			92,400						52,284						40,116
			$	93,710					$	53,594					$	40,116
TNMP OPEB Plan
Cash and cash equivalents			$	18					$	18					$	—
Equity securities:
Mutual funds			12,843						10,806						2,037
			$	12,861					$	10,824					$	2,037

									GAAP Fair Value Hierarchy
			Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)
December 31, 2019
PNM Pension Plan
Participation in PNMR Master Trust Investments:
Investments categorized within fair value hierarchy			$	445,984					$	152,158					$	293,826
Uncategorized investments			86,675
Total Master Trust Investments			$	532,659
TNMP Pension Plan
Participation in PNMR Master Trust Investments:
Investments categorized within fair value hierarchy			$	49,353					$	17,335					$	32,018
Uncategorized investments			9,974
Total Master Trust Investments			$	59,327
PNM OPEB Plan
Cash and cash equivalents			$	1,022					$	1,022					$	—
Equity securities:
Mutual funds			85,727						39,361						46,366
			$	86,749					$	40,383					$	46,366
TNMP OPEB Plan
Cash and cash equivalents			$	275					$	275					$	—
Equity securities:
Mutual funds			10,635						4,075						6,560
			$	10,910					$	4,350					$	6,560

The fair values of investments in the PNMR Master Trust are as follows:

									GAAP Fair Value Hierarchy
			Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)
December 31, 2020			(In thousands)
PNMR Master Trust
Cash and cash equivalents			$	20,812					$	20,812					$	—
Equity securities:
Corporate stocks, common			114,983						114,983						—
Corporate stocks, preferred			1,187						135						1,052
Mutual funds and other			173,931						47,418						126,513
Fixed income securities:
U.S. government			97,460						86,829						10,631
International government			6,202						—						6,202
Municipals			6,277						—						6,277
Corporate and other			135,021						—						135,021
Total investments categorized within fair value hierarchy			555,873						$	270,177					$	285,696
Uncategorized investments:
Private equity funds			12,552
Hedge funds			52,285
Real estate funds			33,377
			$	654,087

									GAAP Fair Value Hierarchy
			Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)
December 31, 2019			(In thousands)
PNMR Master Trust
Cash and cash equivalents			$	19,982					$	19,982					$	—
Equity securities:
Corporate stocks, common			68,497						68,497						—
Corporate stocks, preferred			825						—						825
Mutual funds and other			172,326						—						172,326
Fixed income securities:
U.S. government			90,970						81,014						9,956
International government			5,411						—						5,411
Municipals			6,980						—						6,980
Corporate and other			130,346						—						130,346
Total investments categorized within fair value hierarchy			495,337						$	169,493					$	325,844
Uncategorized investments:
Private equity funds			15,827
Hedge funds			47,618
Real estate funds			33,204
			$	591,986

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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.

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