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Fair Value of Derivative and Other Financial Instruments (Tables)
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6 Months Ended |
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Jun. 30, 2014
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| Fair Value of Derivative and Other Financial Instruments [Line Items] |
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| Fair Value, by Balance Sheet Grouping |
The carrying amounts and fair values of investments in PVNGS lessor notes, other investments, and long-term debt, which are not recorded at fair value on the Condensed Consolidated Balance Sheets are presented below: | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP Fair Value Hierarchy | | Carrying Amount | | Fair Value | | Level 1 | | Level 2 | | Level 3 | June 30, 2014 | (In thousands) | PNMR | | | | | | | | | | Long-term debt | $ | 1,875,254 |
| | $ | 2,088,787 |
| | $ | — |
| | $ | 2,088,787 |
| | $ | — |
| Investment in PVNGS lessor notes | $ | 42,234 |
| | $ | 45,067 |
| | $ | — |
| | $ | — |
| | $ | 45,067 |
| Other investments | $ | 1,798 |
| | $ | 2,525 |
| | $ | 677 |
| | $ | — |
| | $ | 1,848 |
| PNM | | | | | | | | | | Long-term debt | $ | 1,390,637 |
| | $ | 1,530,418 |
| | $ | — |
| | $ | 1,530,418 |
| | $ | — |
| Investment in PVNGS lessor notes | $ | 42,234 |
| | $ | 45,067 |
| | $ | — |
| | $ | — |
| | $ | 45,067 |
| Other investments | $ | 432 |
| | $ | 432 |
| | $ | 432 |
| | $ | — |
| | $ | — |
| TNMP | | | | | | | | | | Long-term debt | $ | 365,851 |
| | $ | 431,706 |
| | $ | — |
| | $ | 431,706 |
| | $ | — |
| Other investments | $ | 245 |
| | $ | 245 |
| | $ | 245 |
| | $ | — |
| | $ | — |
| | | | | | | | | | | December 31, 2013 | | | | | | | | | | PNMR | | | | | | | | | | Long-term debt | $ | 1,745,420 |
| | $ | 1,905,230 |
| | $ | — |
| | $ | 1,905,230 |
| | $ | — |
| Investment in PVNGS lessor notes | $ | 52,958 |
| | $ | 57,279 |
| | $ | — |
| | $ | — |
| | $ | 57,279 |
| Other investments | $ | 1,835 |
| | $ | 3,196 |
| | $ | 690 |
| | $ | — |
| | $ | 2,506 |
| PNM | | | | | | | | | | Long-term debt | $ | 1,290,618 |
| | $ | 1,382,938 |
| | $ | — |
| | $ | 1,382,938 |
| | $ | — |
| Investment in PVNGS lessor notes | $ | 52,958 |
| | $ | 57,279 |
| | $ | — |
| | $ | — |
| | $ | 57,279 |
| Other investments | $ | 445 |
| | $ | 445 |
| | $ | 445 |
| | $ | — |
| | $ | — |
| TNMP | | | | | | | | | | Long-term debt | $ | 336,036 |
| | $ | 390,814 |
| | $ | — |
| | $ | 390,814 |
| | $ | — |
| Other investments | $ | 245 |
| | $ | 245 |
| | $ | 245 |
| | $ | — |
| | $ | — |
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PNMR and PNM [Member]
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| Fair Value of Derivative and Other Financial Instruments [Line Items] |
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
Commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows: | | | | | | | | | | Economic Hedges | | June 30,
2014 | | December 31,
2013 | PNMR and PNM | (In thousands) | Current assets | $ | 4,082 |
| | $ | 4,064 |
| Deferred charges | 1,515 |
| | 3,002 |
| | 5,597 |
| | 7,066 |
| | | | | Current liabilities | (5,073 | ) | | (2,699 | ) | Long-term liabilities | (915 | ) | | (1,094 | ) | | (5,988 | ) | | (3,793 | ) | Net | $ | (391 | ) | | $ | 3,273 |
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| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
The following table presents the effect of mark-to-market commodity derivative instruments on earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented.
| | | | | | | | | | | | | | | | | | Economic Hedges | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2014 | | 2013 | | 2014 | | 2013 | PNMR and PNM | (In thousands) | Electric operating revenues | $ | (324 | ) | | $ | 3,269 |
| | $ | (4,475 | ) | | $ | (1,334 | ) | Cost of energy | 57 |
| | (263 | ) | | 245 |
| | 493 |
| Total gain (loss) | $ | (267 | ) | | $ | 3,006 |
| | $ | (4,230 | ) | | $ | (841 | ) |
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| Schedule of Notional Amounts of Outstanding Derivative Positions |
Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNMR’s and PNM’s net buy (sell) volume positions: | | | | | | | | Economic Hedges | | MMBTU | | MWh | June 30, 2014 | | | | PNMR and PNM | 1,165,000 |
| | (2,809,507 | ) | December 31, 2013 | | | | PNMR and PNM | 905,000 |
| | (3,343,783 | ) |
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| Schedule of Collateral Related to Derivative |
Net exposure is the net contractual liability for all contracts, including those designated as normal purchases and normal sales, offset by existing cash collateral and by any offsets available under master netting agreements, including both asset and liability positions. | | | | | | | | | | | | | | Contingent Feature – Credit Rating Downgrade | | Contractual Liability | | Existing Cash Collateral | |
Net Exposure | | | (In thousands) | June 30, 2014 | | | | | | | PNMR and PNM | | $ | 2,740 |
| | $ | — |
| | $ | 1,663 |
| December 31, 2013 | | | | | | | PNMR and PNM | | $ | 2,398 |
| | $ | — |
| | $ | 2,152 |
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| Available-for-sale Securities |
The proceeds and gross realized gains and losses on the disposition of available-for-sale securities for PNMR and PNM are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold and reflect impairments. | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2014 | | 2013 | | 2014 | | 2013 | | (In thousands) | Proceeds from sales | $ | 30,316 |
| | $ | 61,821 |
| | $ | 53,119 |
| | $ | 76,106 |
| Gross realized gains | $ | 5,364 |
| | $ | 4,905 |
| | $ | 8,482 |
| | $ | 6,243 |
| Gross realized (losses) | $ | (665 | ) | | $ | (1,688 | ) | | $ | (1,210 | ) | | $ | (1,496 | ) |
The fair value of and gross unrealized gains on investments in available-for-sale securities are presented in the following table. At June 30, 2014 and December 31, 2013, the fair value of available-for-sale securities included $231.9 million and $222.5 million for the NDT and $4.5 million and $4.4 million for the mine reclamation trust. | | | | | | | | | | | | | | | | | | June 30, 2014 | | December 31, 2013 | | Unrealized Gains | | Fair Value | | Unrealized Gains | | Fair Value | PNMR and PNM | | | (In thousands) | | | Cash and cash equivalents | $ | — |
| | $ | 3,114 |
| | $ | — |
| | $ | 3,356 |
| Equity securities: | | | | | | | | Domestic value | 16,014 |
| | 42,664 |
| | 14,523 |
| | 39,460 |
| Domestic growth | 19,931 |
| | 75,621 |
| | 25,656 |
| | 76,292 |
| International and other | 2,227 |
| | 17,848 |
| | 1,040 |
| | 16,633 |
| Fixed income securities: | | | | | | | | U.S. Government | 534 |
| | 19,814 |
| | 158 |
| | 21,941 |
| Municipals | 4,282 |
| | 65,872 |
| | 1,018 |
| | 58,568 |
| Corporate and other | 625 |
| | 11,494 |
| | 207 |
| | 10,605 |
| | $ | 43,613 |
| | $ | 236,427 |
| | $ | 42,602 |
| | $ | 226,855 |
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| Investments Classified by Contractual Maturity Date |
At June 30, 2014, the available-for-sale and held-to-maturity debt securities had the following final maturities: | | | | | | | | | | | | | | Fair Value | | Available-for-Sale | | Held-to-Maturity | | PNMR and PNM | | PNMR | | PNM | | (In thousands) | Within 1 year | $ | 2,911 |
| | $ | 12,017 |
| | $ | 12,017 |
| After 1 year through 5 years | 21,556 |
| | 33,776 |
| | 33,050 |
| After 5 years through 10 years | 10,875 |
| | — |
| | — |
| After 10 years through 15 years | 9,114 |
| | — |
| | — |
| After 15 years through 20 years | 11,431 |
| | — |
| | — |
| After 20 years | 41,293 |
| | — |
| | — |
| | $ | 97,180 |
| | $ | 45,793 |
| | $ | 45,067 |
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| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis |
Items recorded at fair value on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy. There were no Level 3 fair value measurements at June 30, 2014 and December 31, 2013 for items recorded at fair value. | | | | | | | | | | | | | | | | GAAP Fair Value Hierarchy | | Total | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | June 30, 2014 | (In thousands) | PNMR and PNM | | | | | | Available-for-sale securities | | | | | | Cash and cash equivalents | $ | 3,114 |
| | $ | 3,114 |
| | $ | — |
| Equity securities: | | | | | | Domestic value | 42,664 |
| | 42,664 |
| | — |
| Domestic growth | 75,621 |
| | 75,621 |
| | — |
| International and other | 17,848 |
| | 17,848 |
| | — |
| Fixed income securities: | | | | | | U.S. Government | 19,814 |
| | 18,053 |
| | 1,761 |
| Municipals | 65,872 |
| | — |
| | 65,872 |
| Corporate and other | 11,494 |
| | 2,481 |
| | 9,013 |
| | $ | 236,427 |
| | $ | 159,781 |
| | $ | 76,646 |
| | | | | | | Commodity derivative assets | $ | 5,597 |
| | $ | — |
| | $ | 5,597 |
| Commodity derivative liabilities | (5,988 | ) | | — |
| | (5,988 | ) | Net | $ | (391 | ) | | $ | — |
| | $ | (391 | ) | | | | | | | December 31, 2013 | | | | | | PNMR and PNM |
| | | | | Available-for-sale securities |
| | | | | Cash and cash equivalents | $ | 3,356 |
| | $ | 3,356 |
| | $ | — |
| Equity securities: |
| | | | | Domestic value | 39,460 |
| | 39,460 |
| | — |
| Domestic growth | 76,292 |
| | 76,292 |
| | — |
| International and other | 16,633 |
| | 16,633 |
| | — |
| Fixed income securities: | | | | | | U.S. Government | 21,941 |
| | 20,194 |
| | 1,747 |
| Municipals | 58,568 |
| | — |
| | 58,568 |
| Corporate and other | 10,605 |
| | 2,245 |
| | 8,360 |
| | $ | 226,855 |
| | $ | 158,180 |
| | $ | 68,675 |
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| | | | | Commodity derivative assets | $ | 7,066 |
| | $ | — |
| | $ | 7,066 |
| Commodity derivative liabilities | (3,793 | ) | | — |
| | (3,793 | ) | Net | $ | 3,273 |
| | $ | — |
| | $ | 3,273 |
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