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Fair Value of Derivative and Other Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

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 and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets:

			Economic Hedges
			June 30, 2021						December 31, 2020
			(In thousands)
Other current assets			$	1,008					$	1,096
Other deferred charges			—						455
			1,008						1,551
Other current liabilities			(1,008)						(1,096)
Other deferred credits			—						(455)
			(1,008)						(1,551)
Net			$	—					$	—

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												Six Months Ended
			June 30,												June 30,
			2021						2020						2021						2020
			(In thousands)
Equity securities:
Net gains from equity securities sold			$	4,218					$	5,356					$	6,240					$	4,041
Net gains (losses) from equity securities still held			8,707						13,377						5,541						(5,554)
Total net gains (losses) on equity securities			12,925						18,733						11,781						(1,513)
Available-for-sale debt securities:
Net gains (losses) on debt securities			267						2,887						2,379						(9,716)
Net gains (losses) on investment securities			$	13,192					$	21,620					$	14,160					$	(11,229)

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 $1.7 million and $0.6 million for the three and six months ended June 30, 2021 and $4.0 million and $(8.7) million for the three and six months ended June 30, 2020.

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2021						2020						2021						2020
			(In thousands)
Proceeds from sales			$	239,696					$	205,296					$	363,291					$	354,651
Gross realized gains			$	10,611					$	11,262					$	19,304					$	17,087
Gross realized (losses)			$	(7,805)					$	(7,002)					$	(11,249)					$	(14,037)

Investments Classified by Contractual Maturity Date

At June 30, 2021, the available-for-sale debt securities held by PNM, had the following final maturities:

			Fair Value
			(In thousands)
Within 1 year			$	30,148
After 1 year through 5 years			69,772
After 5 years through 10 years			96,981
After 10 years through 15 years			19,469
After 15 years through 20 years			13,145
After 20 years			37,327
			$	266,842

Schedule of Investments

Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt 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)
June 30, 2021
Cash and cash equivalents			$	10,336					$	10,336					$	—
Equity securities:
Corporate stocks, common			97,939						97,939						—
Corporate stocks, preferred			9,491						3,320						6,171
Mutual funds and other			68,399						68,345						54
Available-for-sale debt securities:
U.S. government			53,168						22,616						30,552												$	291
International government			16,769						—						16,769												2,261
Municipals			46,914						—						46,914												2,224
Corporate and other			149,991						7						149,984												17,308
			$	453,007					$	202,563					$	250,444											$	22,084
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

Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value

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 Condensed Consolidated Balance Sheets, are presented below:

			Carrying Amount						Fair Value
June 30, 2021			(In thousands)
PNMR			$	3,436,103					$	3,454,118
PNM			$	1,732,769					$	1,627,109
TNMP			$	853,606					$	977,008
December 31, 2020
PNMR			$	3,295,150					$	3,355,761
PNM			$	1,696,620					$	1,602,547
TNMP			$	853,673					$	1,006,722

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Fair Value of Derivative and Other Financial Instruments [Abstract]

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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