Fair Value of Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Derivative and Other Financial Instruments [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

Commodity derivative instruments are summarized as follows:

	PNMR						PNM
	Economic Hedges						Economic Hedges
	September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010
	(In thousands)
Current assets	$	32,168		$	15,999		$	3,716		$	1,443
Deferred charges	9,064			5,264			247			—
	41,232			21,263			3,963			1,443
Current liabilities	(41,018		)	(31,407		)	(1,746		)	(3,110		)
Long-term liabilities	(16,373		)	(12,831		)	(1,913		)	(2,009		)
	(57,391		)	(44,238		)	(3,659		)	(5,119		)
Net	$	(16,159	)	$	(22,975	)	$	304		$	(3,676	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the effect of commodity derivative instruments on earnings and OCI, excluding income tax effects. For cash flow hedges, the earnings impact reflects the reclassification from AOCI when the hedged transactions settle.

	Economic Hedges						Trading Transactions					Qualified Cash Flow Hedges
	September 30,						September 30,					September 30,
	2011			2010			2011		2010			2011			2010
Three Months Ended	(In thousands)
PNMR
Electric operating revenues	$	2,915		$	(2,131	)	$	—	$	30		$	—		$	9,006
Cost of energy	(2,873		)	(20,222		)	—		—			66			(684		)
Total gain (loss)	$	42		$	(22,353	)	$	—	$	30		$	66		$	8,322
Recognized in OCI												$	(66	)	$	(6,531	)
PNM
Electric operating revenues	$	2,915		$	(2,131	)	$	—	$	—		$	—		$	9,006
Cost of energy	(562		)	(1,781		)	—		—			—			(35		)
Total gain (loss)	$	2,353		$	(3,912	)	$	—	$	—		$	—		$	8,971
Recognized in OCI												$	—		$	(7,181	)
Nine Months Ended
PNMR
Electric operating revenues	$	4,250		$	(4,138	)	$	—	$	(3	)	$	—		$	22,294
Cost of energy	(2,788		)	(49,451		)	—		—			(183		)	(1,930		)
Total gain (loss)	$	1,462		$	(53,589	)	$	—	$	(3	)	$	(183	)	$	20,364
Recognized in OCI												$	183		$	(11,349	)
PNM
Electric operating revenues	$	4,250		$	(4,138	)	$	—	$	—		$	—		$	22,294
Cost of energy	(404		)	(5,443		)	—		—			—			(21		)
Total gain (loss)	$	3,846		$	(9,581	)	$	—	$	—		$	—		$	22,273
Recognized in OCI												$	—		$	(13,259	)

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

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

	Economic Hedges
	Decatherms	MWh
September 30, 2011
PNMR	27,187,500	3,597,170
PNM	1,425,000	(961,192	)
December 31, 2010
PNMR	22,767,500	1,693,431
PNM	1,882,500	(990,120	)

Schedule of Collateral Related to Derivative [Table Text Block]

Contingent Feature – Credit Rating Downgrade	Contractual Liability		Existing Cash Collateral		Net Exposure
	(In thousands)
September 30, 2011
PNMR	$	12,787	$	—	$	4,026
PNM	$	3,486	$	—	$	3,064
December 31, 2010
PNMR	$	8,113	$	—	$	2,642
PNM	$	291	$	—	$	119

Available-for-sale Securities [Table Text Block]

The fair value of and gross unrealized gains on investments in available-for-sale securities are presented in the following table.

	September 30, 2011				December 31, 2010
	Unrealized Gains		Fair Value		Unrealized Gains		Fair Value
			(In thousands)
Equity securities:
Domestic value	$	1,137	$	22,051	$	5,108	$	25,491
Domestic growth	12,356		47,358		17,239		48,237
Multinational	243		12,509		2,730		10,670
Fixed income securities:
Municipals	2,486		39,316		837		37,595
U.S. Government	1,305		22,779		348		21,541
Corporate and other	728		9,292		573		8,402
Cash and equivalents	—		3,696		—		4,986
	$	18,255	$	157,001	$	26,835	$	156,922

Realized gains and losses are determined by specific identification of costs of securities sold.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
				(In thousands)
Proceeds from sales	$	26,312		$	20,813		$	121,202		$	57,098
Gross realized gains	$	2,800		$	1,568		$	16,290		$	4,999
Gross realized (losses)	$	(1,847	)	$	(1,227	)	$	(4,129	)	$	(3,099	)

Investments Classified by Contractual Maturity Date [Table Text Block]

At September 30, 2011, 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	$	683	$	—	$	—
After 1 year through 5 years	20,259		123,206		112,083
After 5 years through 10 years	10,740		3,370		—
Over 10 years	39,705		—		—
	$	71,387	$	126,576	$	112,083

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying amount and fair value of held-to-maturity debt securities and other non-derivative financial instruments (including current maturities) are:

	September 30, 2011				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
PNMR
Long-term debt	$	1,566,329	$	1,751,691	$	1,565,847	$	1,659,674
Investment in PVNGS lessor notes	$	107,435	$	108,345	$	136,145	$	141,663
Other investments	$	14,639	$	21,070	$	18,791	$	21,675
PNM
Long-term debt	$	1,055,760	$	1,107,490	$	1,055,748	$	1,056,864
Investment in PVNGS lessor notes	$	107,435	$	108,345	$	136,145	$	141,663
Other investments	$	4,193	$	4,522	$	5,068	$	5,563
TNMP
Long-term debt	$	310,807	$	423,253	$	310,337	$	385,220
Other investments	$	267	$	267	$	282	$	282

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

The fair values of derivatives and investments that are recorded at fair value on the Condensed Consolidated Balance Sheets are as follows:

				Quoted Prices in Active Market for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
	Total(1)			(Level 1)			(Level 2)			(Level 3)
September 30, 2011				(In thousands)
PNMR and PNM
NDT investments
Cash and equivalents	$	3,696		$	3,696		$	—		$	—
Equity securities:
Domestic value	22,051			22,051			—			—
Domestic growth	47,358			47,358			—			—
Multinational	12,509			12,509			—			—
Fixed income securities:
U.S. government	22,779			18,149			4,630			—
Municipals	39,316			—			39,316			—
Corporate and other	9,292			—			9,292			—
Total NDT investments	$	157,001		$	103,763		$	53,238		$	—
PNMR
Commodity derivative assets	$	41,232		$	19,589		$	18,982		$	1,302
Commodity derivative liabilities	(57,391		)	(41,574		)	(14,094		)	(364		)
Net	$	(16,159	)	$	(21,985	)	$	4,888		$	938
PNM
Commodity derivative assets	$	3,963		$	—		$	3,963		$	—
Commodity derivative liabilities	(3,659		)	—			(3,659		)	—
Net	$	304		$	—		$	304		$	—

				Quoted Prices in Active Market for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
	Total(1)			(Level 1)			(Level 2)			(Level 3)
December 31, 2010	(In thousands)
PNMR and PNM
NDT investments
Cash and equivalents	$	4,986		$	4,986		$	—		$	—
Equity securities:
Domestic value	25,491			25,491			—			—
Domestic growth	48,237			48,237			—			—
Multinational	10,670			10,670			—			—
Fixed income securities:
U.S. government	21,541			16,613			4,928			—
Municipals	37,595			—			37,595			—
Corporate and other	8,402			—			8,402			—
Total NDT investments	$	156,922		$	105,997		$	50,925		$	—
PNMR
Commodity derivative assets	$	21,263		$	8,646		$	12,308		$	272
Commodity derivative liabilities	(44,238		)	(26,378		)	(16,729		)	(1,094		)
Net	$	(22,975	)	$	(17,732	)	$	(4,421	)	$	(822	)
PNM
Commodity derivative assets	$	1,443		$	—		$	1,443		$	—
Commodity derivative liabilities	(5,119		)	—			(5,119		)	—
Net	$	(3,676	)	$	—		$	(3,676	)	$	—

(1) The Level 1, 2 and 3 columns in the above table are presented based on the nature of each instrument. The total column is presented based on the balance sheet classification of the instruments and reflect unit of account reclassifications between commodity derivative assets and commodity derivative liabilities of $1.4 million for PNMR and zero for PNM at September 30, 2011 and less than $0.1 million for PNMR and zero for PNM at December 31, 2010. There were no transfers between levels for the three months and nine months ended September 30, 2011 and 2010.

Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

A reconciliation of the changes in Level 3 fair value measurements is as follows:

	PNMR						PNM
	September 30,						September 30,
	2011			2010			2011		2010
Three Months Ended	(In thousands)
Balance at beginning of period	$	4,392		$	(278	)	$	—	$	—
Total gains (losses) included in earnings	(5,025		)	(945		)	—		—
Purchases	429			34			—		—
Settlements	1,142			(83		)	—		—
Balance at end of period	$	938		$	(1,272	)	$	—	$	—
Total gains (losses) included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period	$	589		$	(994	)	$	—	$	—
Nine Months Ended
Balance at beginning of period	$	(822	)	$	248		$	—	$	(17	)
Total gains (losses) included in earnings	201			(1,759		)	—		(128		)
Purchases	3,163			34			—		—
Settlements	(1,604		)	205			—		145
Balance at end of period	$	938		$	(1,272	)	$	—	$	—
Total gains (losses) included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period	$	1,455		$	(1,537	)	$	—	$	—

Fair Value, Gains Losses From Level 3 Inputs Effect on Statement of Financial Performance [Table Text Block]

Gains and losses (realized and unrealized) for Level 3 fair value measurements included in earnings are reported in operating revenues and cost of energy as follows:

	PNMR						PNM
	September 30,						September 30,
	2011			2010			2011		2010
Three Months Ended	(In thousands)
Gains (losses) included in earnings:
Electric operating revenues	$	—		$	—		$	—	$	—
Cost of energy	(5,025		)	(945		)	—		—
Total	$	(5,025	)	$	(945	)	$	—	$	—
Change in unrealized gains or losses related to assets still held at the reporting date:
Electric operating revenues	$	—		$	—		$	—	$	—
Cost of energy	589			(994		)	—		—
Total	$	589		$	(994	)	$	—	$	—
Nine Months Ended
Gains (losses) included in earnings:
Electric operating revenues	$	—		$	—		$	—	$	—
Cost of energy	201			(1,759		)	—		(128		)
Total	$	201		$	(1,759	)	$	—	$	(128	)
Change in unrealized gains or losses related to assets still held at the reporting date:
Electric operating revenues	$	—		$	—		$	—	$	—
Cost of energy	1,455			(1,537		)	—		—
Total	$	1,455		$	(1,537	)	$	—	$	—