Fair Value of Derivative and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

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
March 31, 2015	(In thousands)
PNMR
Long-term debt	$	2,125,007	$	2,322,072	$	—	$	2,322,072	$	—
Investment in PVNGS lessor notes	$	16,806	$	17,173	$	—	$	—	$	17,173
Other investments	$	509	$	1,135	$	509	$	—	$	626
PNM
Long-term debt	$	1,490,666	$	1,627,751	$	—	$	1,627,751	$	—
Investment in PVNGS lessor notes	$	16,806	$	17,173	$	—	$	—	$	17,173
Other investments	$	267	$	267	$	267	$	—	$	—
TNMP
Long-term debt	$	365,575	$	427,356	$	—	$	427,356	$	—
Other investments	$	242	$	242	$	242	$	—	$	—
December 31, 2014
PNMR
Long-term debt	$	1,975,090	$	2,173,117	$	—	$	2,173,117	$	—
Investment in PVNGS lessor notes	$	31,232	$	32,836	$	—	$	—	$	32,836
Other investments	$	1,762	$	2,375	$	639	$	—	$	1,736
PNM
Long-term debt	$	1,490,657	$	1,624,222	$	—	$	1,624,222	$	—
Investment in PVNGS lessor notes	$	31,232	$	32,836	$	—	$	—	$	32,836
Other investments	$	397	$	397	$	397	$	—	$	—
TNMP
Long-term debt	$	365,667	$	427,356	$	—	$	427,356	$	—
Other investments	$	242	$	242	$	242	$	—	$	—

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
	March 31, 2015			December 31, 2014
PNMR and PNM	(In thousands)
Current assets	$	9,342		$	11,232
Deferred charges	—			—
	9,342			11,232
Current liabilities	(1,235		)	(1,209		)
Long-term liabilities	(277		)	(477		)
	(1,512		)	(1,686		)
Net	$	7,830		$	9,546

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
	March 31,
	2015			2014
PNMR and PNM	(In thousands)
Electric operating revenues	$	(472	)	$	(4,151	)
Cost of energy	(50		)	189
Total gain (loss)	$	(522	)	$	(3,962	)

Schedule of Notional Amounts of Outstanding Derivative Positions

The table below presents PNMR’s and PNM’s net buy (sell) volume positions:

	Economic Hedges
	MMBTU	MWh
PNMR and PNM
March 31, 2015	575,000	(1,417,913	)
December 31, 2014	650,000	(1,919,000	)

Schedule of Collateral Related to Derivative

The table below presents information about the Company’s contingent requirements to provide collateral under commodity contracts having an objectively determinable collateral provision that are in net liability positions and are not fully collateralized with cash. Contractual liability represents commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. The table only reflects cash collateral that has been posted under the existing contracts and does not reflect letters of credit under the Company’s revolving credit facilities that have been issued as collateral. 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)
PNMR and PNM
March 31, 2015	$	1,512	$	—	$	117
December 31, 2014	$	1,686	$	—	$	167

Available-for-sale Securities

The fair value and gross unrealized gains of investments in available-for-sale securities are presented in the following table. At March 31, 2015 and December 31, 2014, the fair value of available-for-sale securities included $251.8 million and $244.6 million for the NDT and $5.7 million and $5.5 million for the mine reclamation trust.

	March 31, 2015				December 31, 2014
	Unrealized Gains		Fair Value		Unrealized Gains		Fair Value
PNMR and PNM			(In thousands)
Cash and cash equivalents	$	—	$	5,142	$	—	$	8,276
Equity securities:
Domestic value	16,786		46,129		17,418		45,340
Domestic growth	22,849		78,013		21,354		74,053
International and other	995		17,478		156		16,599
Fixed income securities:
U.S. Government	1,256		21,912		903		22,563
Municipals	6,198		73,554		5,851		68,973
Corporate and other	758		15,236		666		14,341
	$	48,842	$	257,464	$	46,348	$	250,145

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. Gross realized losses shown below exclude the change in realized impairment losses of $0.4 million and $0.5 million for the three months ended March 31, 2015 and 2014.

	Three Months Ended
	March 31,
	2015			2014
	(In thousands)
Proceeds from sales	$	31,852		$	22,804
Gross realized gains	$	5,135		$	3,118
Gross realized (losses)	$	(1,541	)	$	(1,039	)

Investments Classified by Contractual Maturity Date

At March 31, 2015, 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	$	5,108	$	17,173	$	17,173
After 1 year through 5 years	17,210		626		—
After 5 years through 10 years	14,006		—		—
After 10 years through 15 years	10,705		—		—
After 15 years through 20 years	12,048		—		—
After 20 years	51,625		—		—
	$	110,702	$	17,799	$	17,173

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 March 31, 2015 and December 31, 2014 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)
March 31, 2015	(In thousands)
PNMR and PNM
Available-for-sale securities
Cash and cash equivalents	$	5,142		$	5,142	$	—
Equity securities:
Domestic value	46,129			46,129		—
Domestic growth	78,013			78,013		—
International and other	17,478			17,478		—
Fixed income securities:
U.S. Government	21,912			20,603		1,309
Municipals	73,554			—		73,554
Corporate and other	15,236			4,901		10,335
	$	257,464		$	172,266	$	85,198
Commodity derivative assets	$	9,342		$	—	$	9,342
Commodity derivative liabilities	(1,512		)	—		(1,512		)
Net	$	7,830		$	—	$	7,830
December 31, 2014
PNMR and PNM
Available-for-sale securities
Cash and cash equivalents	$	8,276		$	8,276	$	—
Equity securities:
Domestic value	45,340			45,340		—
Domestic growth	74,053			74,053		—
International and other	16,599			16,599		—
Fixed income securities:
U.S. Government	22,563			20,808		1,755
Municipals	68,973			—		68,973
Corporate and other	14,341			4,843		9,498
	$	250,145		$	169,919	$	80,226
Commodity derivative assets	$	11,232		$	—	$	11,232
Commodity derivative liabilities	(1,686		)	—		(1,686		)
Net	$	9,546		$	—	$	9,546