Fair Value of Derivative and Other Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value of Derivative and Other Financial Instruments [Line Items]

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	$	—	$	—

PNMR and PNM [Member]

Fair Value of Derivative and Other Financial Instruments [Line Items]

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

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	)

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	)

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

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

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

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
Commodity derivative assets	$	7,066		$	—	$	7,066
Commodity derivative liabilities	(3,793		)	—		(3,793		)
Net	$	3,273		$	—	$	3,273