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Regulatory Assets and Liabilities | 12 Months Ended
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Dec. 31, 2021
Regulated Operations [Abstract] |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The operations of PNM and TNMP are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to its regulated operations. Regulatory assets represent probable future recovery of previously incurred costs that will be collected from customers through the ratemaking process. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are to be credited to customers through the ratemaking process. Regulatory assets and liabilities reflected in the Consolidated Balance Sheets are presented below.
| PNM |  | TNMP
| December 31, |  | December 31,
| 2021 |  | 2020 |  | 2021 |  | 2020
Assets: | (In thousands)
Current: |  |  |  |  |  |  |
FPPAC | $ | 7,130 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Transmission cost recovery factor | — |  |  | — |  |  | 3,906 |  |  | — |
Energy efficiency costs | — |  |  | — |  |  | 2,158 |  |  | 202 |
Other | 1,591 |  |  | — |  |  | — |  |  | — |
| 8,721 |  |  | — |  |  | 6,064 |  |  | 202 |
| PNM |  | TNMP
| December 31, |  | December 31,
| 2021 |  | 2020 |  | 2021 |  | 2020
Assets (Continued): | (In thousands)
Non-Current: |  |  |  |  |  |  |
Coal mine reclamation costs(1) | $ | 9,942 |  |  | $ | 9,980 |  |  | $ | — |  |  | $ | — |
Deferred income taxes | 68,687 |  |  | 65,564 |  |  | 9,505 |  |  | 9,817 |
Loss on reacquired debt | 17,249 |  |  | 19,748 |  |  | 27,615 |  |  | 28,914 |
Pension and OPEB(2) | 165,006 |  |  | 190,147 |  |  | 17,924 |  |  | 22,863 |
Shutdown of SJGS Units 2 and 3 | 100,954 |  |  | 107,231 |  |  | — |  |  | — |
AMS surcharge | — |  |  | — |  |  | 12,507 |  |  | 18,761 |
AMS retirement and other costs | — |  |  | — |  |  | 12,286 |  |  | 13,915 |
Deferred cost under the ETA | 42,656 |  |  | 42,703 |  |  | — |  |  | — |
Deferred COVID-19 costs | 6,896 |  |  | 8,761 |  |  | — |  |  | 676 |
SJGS replacement resources | 8,269 |  |  | 8,282 |  |  | — |  |  | — |
EIM | 7,028 |  |  | 2,209 |  |  | — |  |  | — |
Other | 2,294 |  |  | 3,328 |  |  | 5,440 |  |  | 4,891 |
| 428,981 |  |  | 457,953 |  |  | 85,277 |  |  | 99,837 |
Total regulatory assets | $ | 437,702 |  |  | $ | 457,953 |  |  | $ | 91,341 |  |  | $ | 100,039 |
Liabilities: |
Current: |  |  |  |  |  |  |
FPPAC | $ | — |  |  | $ | (2,274) |  |  | $ | — |  |  | $ | — |
Renewable energy rider | (5,989) |  |  | (2,044) |  |  | — |  |  | — |
Energy efficiency costs | (2,327) |  |  | (1,101) |  |  | — |  |  | — |
Transmission cost recovery factor | — |  |  | — |  |  | — |  |  | (2,052) |
| (8,316) |  |  | (5,419) |  |  | — |  |  | (2,052) |
Non-Current: |  |  |  |  |  |  |
Cost of removal | (294,193) |  |  | (284,695) |  |  | (73,029) |  |  | (59,613) |
Deferred income taxes | (321,976) |  |  | (343,844) |  |  | (107,250) |  |  | (119,695) |
PVNGS ARO | (1,215) |  |  | (5,394) |  |  | — |  |  | — |
Renewable energy tax benefits | (16,756) |  |  | (17,912) |  |  | — |  |  | — |
Accelerated depreciation SNCRs(3) | (16,331) |  |  | (12,045) |  |  | — |  |  | — |
Pension and OPEB | (2,376) |  |  | — |  |  | (6,099) |  |  | (5,535) |
COVID-19 cost savings | (900) |  |  | (900) |  |  | — |  |  | — |
Other | (83) |  |  | (83) |  |  | (1,185) |  |  | (512) |
| (653,830) |  |  | (664,873) |  |  | (187,563) |  |  | (185,355) |
Total regulatory liabilities | $ | (662,146) |  |  | $ | (670,292) |  |  | $ | (187,563) |  |  | $ | (187,407) |
(1) Includes $9.3 million in coal mine reclamation costs related to PNM’s planned retirement of SJGS in 2022 and recoverable under the ETA as described in Note 16 (2) Includes $2.2 million for certain PNM pension costs as described in Note 11 (3) Amounts to be included under the ETA The Company’s regulatory assets and regulatory liabilities are reflected in rates charged to customers or have been addressed in a regulatory proceeding. The Company does not receive or pay a rate of return on the following regulatory assets and regulatory liabilities (and their remaining amortization periods): coal mine reclamation costs (through 2020); deferred income taxes (over the remaining life of the taxable item, up to the remaining life of utility plant); pension and OPEB costs (through 2033); PVNGS ARO (to be determined in a future regulatory proceeding); costs recoverable under the ETA (over the securitization period); deferred COVID-19 costs (to be determined in a future regulatory proceeding); and SJGS replacement resources (to be determined in a future regulatory proceeding). The Company is permitted, under rate regulation, to accrue and record a regulatory liability for the estimated cost of removal and salvage associated with certain of its assets through depreciation expense. Actuarial losses and prior service costs for pension plans are required to be recorded in AOCI; however, to the extent authorized for recovery through the regulatory process these amounts are recorded as regulatory assets or liabilities. Based on prior regulatory approvals, the amortization of these amounts will be included in the Company’s rates. Based on a current evaluation of the various factors and conditions that are expected to impact future cost recovery, the Company believes that future recovery of its regulatory assets is probable.

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- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
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