Commission File Number | Names of Registrants, State of Incorporation, Address and Telephone Number | I.R.S. Employer Identification No. | ||
001-32462 | PNM Resources, Inc. (A New Mexico Corporation) 414 Silver Ave. SW Albuquerque, New Mexico 87102-3289 (505) 241-2700 | 85-0468296 | ||
001-06986 | Public Service Company of New Mexico (A New Mexico Corporation) 414 Silver Ave. SW Albuquerque, New Mexico 87102-3289 (505) 241-2700 | 85-0019030 | ||
002-97230 | Texas-New Mexico Power Company (A Texas Corporation) 577 N. Garden Ridge Blvd. Lewisville, Texas 75067 (972) 420-4189 | 75-0204070 |
Registrant | Title of Each Class | Name of Each Exchange on Which Registered | ||
PNM Resources, Inc. | Common Stock, no par value | New York Stock Exchange |
Registrant | Title of Each Class | |
Public Service Company of New Mexico | 1965 Series, 4.58% Cumulative Preferred Stock | |
($100 stated value without sinking fund) |
PNM Resources, Inc. (“PNMR”) | YES ü | NO | ||
Public Service Company of New Mexico (“PNM”) | YES | NO ü | ||
Texas-New Mexico Power Company (“TNMP”) | YES | NO ü |
PNMR | YES | NO ü | ||
PNM | YES | NO ü | ||
TNMP | YES ü | NO |
PNMR | YES ü | NO | ||
PNM | YES ü | NO | ||
TNMP | YES | NO ü |
PNMR | YES ü | NO | ||
PNM | YES ü | NO | ||
TNMP | YES ü | NO |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller Reporting Company | ||||||||
PNMR | ü | __ | |||||||||
PNM | __ | ü | |||||||||
TNMP | __ | ü |
PNMR | 79,653,624 | |
PNM | 39,117,799 | |
TNMP | 6,358 |
Page | |||
PART I | |||
ITEM 1. BUSINESS | |||
OPERATIONS & REGULATION | |||
EMPLOYEES | |||
ITEM 1A. RISK FACTORS | |||
ITEM 1B. UNRESOLVED STAFF COMMENTS | |||
ITEM 2. PROPERTIES | |||
ITEM 3. LEGAL PROCEEDINGS | |||
ITEM 4. MINE SAFETY DISCLOSURES | |||
PART II | |||
ITEM 5. MARKET FOR PNMR’S COMMON EQUITY, RELATED STOCKHOLDER | |||
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | |||
ITEM 6. SELECTED FINANCIAL DATA | |||
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |||
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK | |||
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | |||
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING | |||
AND FINANCIAL DISCLOSURE | |||
ITEM 9A. CONTROLS AND PROCEDURES | |||
ITEM 9B. OTHER INFORMATION | |||
PART III | |||
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERANCE | |||
ITEM 11. EXECUTIVE COMPENSATION | |||
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | |||
AND RELATED STOCKHOLDER MATTERS | |||
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR | |||
INDEPENDENCE | |||
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES | |||
PART IV | |||
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES | |||
Definitions: | ||
ABO | Accumulated Benefit Obligation | |
Afton | Afton Generating Station | |
AFUDC | Allowance for Funds Used During Construction | |
ALJ | Administrative Law Judge | |
AMS | Advanced Meter System | |
AOCI | Accumulated Other Comprehensive Income | |
APBO | Accumulated Postretirement Benefit Obligation | |
APS | Arizona Public Service Company, which is the operator and a co-owner of PVNGS and Four Corners | |
ARO | Asset Retirement Obligation | |
BACT | Best Available Control Technology | |
BART | Best Available Retrofit Technology | |
BHP | BHP Billiton, Ltd, the parent of SJCC | |
Board | Board of Directors of PNMR | |
BTU | British Thermal Unit | |
CAA | Clean Air Act | |
Cascade | Cascade Investment, L.L.C. | |
CCB | Coal Combustion Byproducts | |
CO2 | Carbon Dioxide | |
CTC | Competition Transition Charge | |
D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit | |
Delta | Delta-Person Generating Station | |
DOE | United States Department of Energy | |
DOI | United States Department of Interior | |
ECJV | ECJV Holdings, LLC | |
EIB | New Mexico Environmental Improvement Board | |
EIP | Eastern Interconnection Project | |
EPA | United States Environmental Protection Agency | |
EPE | El Paso Electric | |
ERCOT | Electric Reliability Council of Texas | |
ESA | Endangered Species Act | |
Exchange Act | Securities Exchange Act of 1934 | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
FIP | Federal Implementation Plan | |
First Choice | FCP Enterprises, Inc. and Subsidiaries | |
Four Corners | Four Corners Power Plant | |
FPL | FPL Energy New Mexico Wind, LLC | |
FPPAC | Fuel and Purchased Power Adjustment Clause | |
GAAP | Generally Accepted Accounting Principles in the United States of America | |
GEaR | Gross Earnings at Risk | |
GHG | Greenhouse Gas Emissions | |
GWh | Gigawatt hours | |
IBEW | International Brotherhood of Electrical Workers, Local 611 | |
IRP | Integrated Resource Plan | |
IRS | Internal Revenue Service | |
KW | Kilowatt | |
KWh | Kilowatt Hour |
LIBOR | London Interbank Offered Rate | |
Lordsburg | Lordsburg Generating Station | |
Luna | Luna Energy Facility | |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
MMBTU | Million BTUs | |
Moody’s | Moody’s Investor Services, Inc. | |
MW | Megawatt | |
MWh | Megawatt Hour | |
NAAQS | National Ambient Air Quality Standards | |
Navajo Acts | Navajo Nation Air Pollution Prevention and Control Act, Navajo Nation Safe Drinking Water Act, and Navajo Nation Pesticide Act | |
NDT | Nuclear Decommissioning Trusts for PVNGS | |
NEC | Navopache Electric Cooperative, Inc. | |
NERC | North American Electric Reliability Council | |
Ninth Circuit | United States Court of Appeals for the Ninth Circuit | |
NMAG | New Mexico Attorney General | |
NMED | New Mexico Environment Department | |
NMIEC | New Mexico Industrial Energy Consumers Inc. | |
NMPRC | New Mexico Public Regulation Commission | |
NOx | Nitrogen Oxides | |
NOI | Notice of Inquiry | |
NOPR | Notice of Proposed Rulemaking | |
NRC | United States Nuclear Regulatory Commission | |
NSPS | New Source Performance Standards | |
NSR | New Source Review | |
OCI | Other Comprehensive Income | |
OPEB | Other Post Employment Benefits | |
Optim Energy | Optim Energy, LLC, a limited liability company, formerly known as EnergyCo, LLC | |
OSM | United States Office of Surface Mining Reclamation and Enforcement | |
PBO | Projected Benefit Obligation | |
PCRBs | Pollution Control Revenue Bonds | |
PG&E | Pacific Gas and Electric Co. | |
PNM | Public Service Company of New Mexico and Subsidiaries | |
PNM Revolving Credit Facility | PNM's $400.0 Million Unsecured Revolving Credit Facility | |
PNMR | PNM Resources, Inc. and Subsidiaries | |
PNMR Revolving Credit Facility | PNMR's $300.0 Million Unsecured Revolving Credit Facility | |
PNMR Term Loan Agreement | PNMR’s $100 Million Unsecured Term Loan Facility | |
PPA | Power Purchase Agreement | |
PSD | Prevention of Significant Deterioration | |
PUCT | Public Utility Commission of Texas | |
PV | Photovoltaic | |
PVNGS | Palo Verde Nuclear Generating Station | |
RCRA | Resource Conservation and Recovery Act | |
RCT | Reasonable Cost Threshold | |
REA | New Mexico's Renewable Energy Act of 2004 | |
REC | Renewable Energy Certificates | |
REP | Retail Electricity Provider | |
RMC | Risk Management Committee |
RPS | Renewable Energy Portfolio Standard | |
SCE | Southern California Edison Company | |
SCPPA | Southern California Public Power Authority | |
SCR | Selective Catalytic Reduction | |
SEC | United States Securities and Exchange Commission | |
SIP | State Implementation Plan | |
SJCC | San Juan Coal Company | |
SJGS | San Juan Generating Station | |
SNCR | Selective Non-Catalytic Reduction | |
SO2 | Sulfur Dioxide | |
SPS | Southwestern Public Service Company | |
SRP | Salt River Project | |
S&P | Standard and Poor’s Ratings Services | |
TCEQ | Texas Commission on Environmental Quality | |
TECA | Texas Electric Choice Act | |
Tenth Circuit | United States Court of Appeals for the Tenth Circuit | |
TNMP | Texas-New Mexico Power Company and Subsidiaries | |
TNMP 2011 Term Loan Agreement | TNMP's $50 Million Secured Term Loan | |
TNMP Revolving Credit Facility | TNMP’s $75 Million Revolving Credit Facility | |
TNP | TNP Enterprises, Inc. and Subsidiaries | |
Tri-State | Tri-State Generation and Transmission Association, Inc. | |
Tucson | Tucson Electric Power Company | |
UAMPS | Utah Associated Municipal Power System | |
Valencia | Valencia Energy Facility | |
VaR | Value at Risk | |
WACC | Weighted Average Cost of Capital | |
WEG | WildEarth Guardians | |
WSPP | Western Systems Power Pool |
ITEM 1. | BUSINESS |
• | Earning authorized returns on its regulated businesses |
• | Continuing to improve credit ratings |
• | Providing a top quartile total return to investors |
• | PNMR: www.pnmresources.com |
• | PNM: www.pnm.com |
• | TNMP: www.tnmp.com |
• | Corporate Governance Principles |
• | Code of Ethics (Do the Right Thing-Principles of Business Conduct) |
• | Charters of the Audit and Ethics Committee, Nominating and Governance Committee, Compensation and Human Resources Committee, and Finance Committee |
• | $72.1 million increase in annual non-fuel revenues for all New Mexico retail customers, implemented August 21, 2011 |
• | Customers formerly served by TNMP prior to its acquisition by PNMR (“PNM South”) being covered by the same FPPAC utilized for other retail customers of PNM (“PNM North”) |
• | Subject to further NMPRC approvals, recovery of costs associated with NMPRC approved renewable energy procurement plans through a rate rider beginning no earlier than August 2012 |
• | No new general rate adjustment effective prior to July 1, 2013, unless PNM needs to file for recovery of costs to comply with any federal or state environmental law or requirement effective after June 30, 2010 |
• | Limit on annual recovery of costs for fuel, renewable energy, and energy efficiency, with recovery of additional amounts deferred for collection to future periods |
2012 | 2011 | 2010 | ||||||
(Megawatts) | ||||||||
Summer | 1,948 | 1,938 | 1,973 | |||||
Winter | 1,523 | 1,709 | 1,551 |
• | The NMPRC must set rates using the test period that best reflects the conditions the utility will experience when new rates are anticipated to go into effect. The NMPRC is required to consider that a future test period may be the one that best meets this requirement. A future test period is a twelve-month period beginning no later than the date a proposed rate change is expected to take effect. |
• | The NMPRC must include certain construction work in progress (“CWIP”) for environmental improvement, generation, and transmission projects in rate base, without an offset for AFUDC. With this provision, PNM will be able to collect costs as projects are being built rather than waiting until they are finished to include them in rate base. |
• | A revenue increase of $10.25 million, effective February 1, 2011 |
• | A return on equity of 10.125% |
• | A hypothetical 55%/45% debt-equity capital structure |
Generation | |||||||
Capacity | |||||||
Type | Name | Location | (MW) | ||||
Coal | SJGS | Waterflow, New Mexico | 783 | ||||
Coal | Four Corners | Fruitland, New Mexico | 200 | ||||
Gas | Reeves Station | Albuquerque, New Mexico | 154 | ||||
Gas | Afton (combined cycle) | La Mesa, New Mexico | 230 | ||||
Gas | Lordsburg | Lordsburg, New Mexico | 80 | ||||
Gas | Luna (combined cycle) | Deming, New Mexico | 185 | ||||
Gas/Oil | Delta | Albuquerque, New Mexico | 132 | ||||
Gas | Valencia | Belen, New Mexico | 145 | ||||
Nuclear | PVNGS | Wintersburg, Arizona | 402 | ||||
Solar | PNM-owned solar | Five sites in New Mexico | 22 | ||||
2,333 |
Plant | Operator | 2012 | 2011 | 2010 | ||||
SJGS | PNM | 81.7% | 86.9% | 73.5% | ||||
Four Corners | APS | 83.5% | 81.5% | 75.3% | ||||
PVNGS | APS | 90.6% | 89.1% | 88.6% |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Purchased under long-term PPAs | |||||||||||
MWh | 546,321 | 794,867 | 1,360,991 | ||||||||
Cost per MWh | $ | 27.25 | $ | 29.93 | $ | 34.36 | |||||
Other purchased power | |||||||||||
Total MWh | 948,911 | 988,564 | 1,083,548 | ||||||||
Cost per MWh | $ | 27.30 | $ | 31.47 | $ | 40.61 |
Coal | Nuclear | Gas and Oil | ||||||||||||||||||
Percent of Generation | Average Cost | Percent of Generation | Average Cost | Percent of Generation | Average Cost | |||||||||||||||
2012 | 59.2 | % | $ | 2.99 | 31.3 | % | $ | 0.88 | 9.0 | % | $ | 3.25 | ||||||||
2011 | 61.8 | % | $ | 2.79 | 29.7 | % | $ | 0.80 | 8.4 | % | $ | 4.47 | ||||||||
2010 | 58.9 | % | $ | 2.49 | 31.3 | % | $ | 0.66 | 9.8 | % | $ | 4.54 |
• | PVNGS Decommissioning Funding |
• | Nuclear Spent Fuel and Waste Disposal |
• | Environmental Matters under the caption “The Clean Air Act” |
• | Endangered Species Act |
• | Cooling Water Intake Structures |
• | Santa Fe Generating Station |
• | Environmental Matters under the caption “Coal Combustion Byproducts Waste Disposal” |
• | Hazardous Air Pollutants (“HAPs”) Rulemaking |
PNMR | PNM | TNMP | ||||||
Corporate (1) | 461 | — | — | |||||
PNM | 1,091 | 1,091 | — | |||||
TNMP | 357 | — | 357 | |||||
Total | 1,909 | 1,091 | 357 |
• | The ability of PNM and TNMP to recover costs and earn allowed returns in regulated jurisdictions |
• | The ability of the Company to successfully forecast and manage its operating and capital expenditures |
• | State and federal regulatory, legislative, and judicial decisions and actions on ratemaking, tax, and other matters |
• | State and federal regulation or legislation relating to environmental matters, including the resultant costs of |
• | The risk that recently enacted reliability standards regarding available transmission capacity and other FERC |
• | The performance of generating units, transmission systems, and distribution systems, which could be negatively affected by operational issues, extreme weather conditions, terrorism, and cybersecurity breaches |
• | Variability of prices and volatility and liquidity in the wholesale power and natural gas markets |
• | Changes in price and availability of fuel and water supplies, including the ability of the mines supplying coal to PNM's coal-fired generating units and the companies involved in supplying nuclear fuel to provide adequate quantities of fuel |
• | Uncertainty surrounding the status of PNM's participation in jointly-owned generation projects resulting from the scheduled expiration of the operational agreements for the projects |
• | The risks associated with completion of generation, transmission, distribution, and other projects |
• | Regulatory, financial, and operational risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainties |
• | Uncertainty regarding the requirements and related costs of decommissioning power plants and coal mines supplying certain power plants, as well as the ability to recover decommissioning costs from customers |
• | The impacts on the electricity usage of the Company's customers due to performance of state, regional, and national economies and mandatory energy efficiency measures, weather, seasonality, and other changes in supply and demand |
• | The Company's ability to access the financial markets, including disruptions in the credit markets, actions by ratings agencies, and fluctuations in interest rates |
• | The potential unavailability of cash from PNMR's subsidiaries due to regulatory, statutory, or contractual restrictions |
• | The impacts of decreases in the values of marketable equity securities maintained to provide for decommissioning, reclamation, pension benefits, and other postretirement benefits |
• | Commodity and counterparty credit risk transactions and the effectiveness of risk management |
• | The outcome of legal proceedings, including the extent of insurance coverage |
• | Changes in applicable accounting principles |
• | Environmental compliance expenditures |
• | New asset construction related to generation, transmission, and distribution systems necessary to provide electric service |
• | The regulatory mandate to generate power from renewable resources |
• | Increased regulation related to nuclear safety |
• | Fuel costs |
• | Costs related to pension and benefits |
• | Increased interest costs to finance capital investments |
• | Depreciation |
• | Adverse economic conditions |
• | Reductions in costs of energy efficiency technology |
• | Unpredictable weather patterns |
• | Reduced new sources of demand |
• | Changing customer behaviors |
• | Rates charged by PNM and TNMP |
• | Rates charged by REPs utilizing TNMP's facilities to deliver power |
• | Availability and cost of alternative sources of power |
• | National, regional, or local economic conditions |
• | Federally-mandated base closures or significant curtailment of the activities at the bases or national laboratories |
• | Closure of industrial facilities or significant curtailment of their activities |
• | The ability to obtain adequate supplies of nuclear fuel and water |
• | The ability to dispose of spent nuclear fuel |
• | Decommissioning of the plant |
• | Securing the facilities against possible terrorist attacks |
• | Unscheduled outages due to equipment failures |
• | An economic recession |
• | Declines in the health of the banking sector generally, and the failure of specific banks who are parties to our credit facilities |
• | The bankruptcy of an unrelated energy company |
• | War, terrorist attacks or threatened attacks |
• | Deterioration in the overall health of the utility industry |
• | The extent to which cash flows will support dividends |
• | The Company's financial circumstances and performance |
• | NMPRC's and PUCT's decisions in various regulatory cases currently pending and which may be docketed in the future |
• | Conditions imposed by the NMPRC or PUCT |
• | The effect of federal regulatory decisions and legislative acts |
• | Economic conditions in the United States |
• | Future growth plans and the related capital requirements |
• | Other business considerations |
• | Authorization for the Board to issue PNMR's preferred stock in series and to fix rights and preferences of the series (including, among other things, voting rights and preferences with respect to dividends and other matters) |
• | Advance notice procedures with respect to any proposal other than those adopted or recommended by the Board |
• | Provisions specifying that only a majority of the Board, the chairman of the Board, the chief executive officer, or holders of at least one-tenth of all of PNMR's shares entitled to vote may call a special meeting of stockholders |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
• | The Clean Air Act - Regional Haze – SJGS |
• | The Clean Air Act - Regional Haze – Four Corners |
• | The Clean Air Act - Four Corners BART FIP Challenge |
• | The Clean Air Act - WildEarth Guardians' Petition for Review of EPA's Approval of New Mexico Regional Haze SIP |
• | The Clean Air Act - SJGS Operating Permit Challenge |
• | The Clean Air Act - Citizen Suit Under the Clean Air Act |
• | The Clean Air Act - Navajo Nation Environmental Issues |
• | The Clean Air Act - Four Corners New Source Review |
• | Endangered Species Act |
• | Santa Fe Generating Station |
• | Coal Combustion Byproducts Waste Disposal - Sierra Club Allegations |
• | PVNGS Water Supply Litigation |
• | San Juan River Adjudication |
• | Complaint Against Southwestern Public Service Company |
• | Navajo Nations Allottee Matters |
• | Transmission Issues |
• | PNM - Renewable Portfolio Standard |
• | PNM - Renewable Energy Rider |
• | PNM - Energy Efficiency and Load Management |
• | PNM-2011 Integrated Resource Plan |
• | PNM - Emergency FFPAC |
• | PNM - Transmission Rate Case |
• | PNM - Application for Approvals to Purchase Delta |
• | PNM - Formula Transmission Rate Case |
• | PNM - Firm-Requirements Wholesale Customer Rate Case |
• | TNMP - Advance Meter System Deployment and Surcharge Request |
• | TNMP - Remand of ERCOT Transmission Rates for 1999 and 2000 |
• | TNMP - Transmission Cost of Service Rates |
ITEM 4. | MINE SAFETY DISCLOSURES |
Name | Age | Office | Initial Effective Date | |||
P. K. Collawn | 54 | Chairman, President, and Chief Executive Officer | January 2012 | |||
President and Chief Executive Officer | March 2010 | |||||
President and Chief Operating Officer | August 2008 | |||||
President, Utilities | June 2007 | |||||
C. N. Eldred | 59 | Executive Vice President and Chief Financial Officer | July 2007 | |||
P. V. Apodaca | 61 | Senior Vice President, General Counsel and Secretary | January 2010 | |||
University Counsel, University of New Mexico | May 2006 | |||||
R. E. Talbot | 52 | Senior Vice President and Chief Operating Officer | January 2012 | |||
Chief Operating Officer, Power Supply and Power Delivery - Indianapolis Power and Light Company | June 2011 | |||||
Senior Vice President, Power Supply - Indianapolis Power and Light Company | February 2007 | |||||
R. N. Darnell | 55 | Senior Vice President, Public Policy | December 2011 | |||
Vice President, Regulatory Affairs | April 2008 | |||||
Director, Regulatory Administration South - Xcel Energy | January 2007 | |||||
T. G. Sategna | 59 | Vice President and Corporate Controller | October 2003 |
ITEM 5. | MARKET FOR PNMR’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
Quarter Ended | Range of Sales Prices | Dividends | |||||||||
High | Low | Per Share | |||||||||
2012 | |||||||||||
March 31 | $ | 18.94 | $ | 17.52 | $ | 0.145 | |||||
June 30 | 19.54 | 17.84 | 0.145 | ||||||||
September 30 | 21.42 | 19.75 | 0.145 | ||||||||
December 31 | 22.32 | 20.05 | 0.145 | ||||||||
Fiscal Year | 22.32 | 17.52 | 0.580 | ||||||||
2011 | |||||||||||
March 31 | $ | 15.16 | $ | 12.96 | $ | 0.125 | |||||
June 30 | 17.10 | 14.46 | 0.125 | ||||||||
September 30 | 17.14 | 12.75 | 0.125 | ||||||||
December 31 | 19.17 | 15.81 | 0.125 | ||||||||
Fiscal Year | 19.17 | 12.75 | 0.500 |
ITEM 6. | SELECTED FINANCIAL DATA |
PNM RESOURCES, INC. AND SUBSIDIARIES | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
(In thousands except per share amounts and ratios) | |||||||||||||||||||
Total Operating Revenues from Continuing Operations | $ | 1,342,403 | $ | 1,700,619 | $ | 1,673,517 | $ | 1,647,744 | $ | 1,959,522 | |||||||||
Earnings (Loss) from Continuing Operations | $ | 120,125 | $ | 190,934 | $ | (31,124 | ) | $ | 65,933 | $ | (297,565 | ) | |||||||
Net Earnings (Loss) | $ | 120,125 | $ | 190,934 | $ | (31,124 | ) | $ | 136,734 | $ | (262,937 | ) | |||||||
Net Earnings (Loss) Attributable to PNMR | $ | 105,547 | $ | 176,359 | $ | (45,215 | ) | $ | 124,316 | $ | (270,644 | ) | |||||||
Earnings (Loss) from Continuing Operations Attributable to PNMR per Common Share | |||||||||||||||||||
Basic | $ | 1.32 | $ | 1.98 | $ | (0.49 | ) | $ | 0.58 | $ | (3.66 | ) | |||||||
Diluted | $ | 1.31 | $ | 1.96 | $ | (0.49 | ) | $ | 0.58 | $ | (3.66 | ) | |||||||
Net Earnings (Loss) Attributable to PNMR per Common Share | |||||||||||||||||||
Basic | $ | 1.32 | $ | 1.98 | $ | (0.49 | ) | $ | 1.36 | $ | (3.24 | ) | |||||||
Diluted | $ | 1.31 | $ | 1.96 | $ | (0.49 | ) | $ | 1.36 | $ | (3.24 | ) | |||||||
Cash Flow Data | |||||||||||||||||||
Net cash flows from operating activities | $ | 281,349 | $ | 292,240 | $ | 287,352 | $ | 87,706 | $ | 88,625 | |||||||||
Net cash flows from investing activities | $ | (285,895 | ) | $ | 19,778 | $ | (275,906 | ) | $ | 379,726 | $ | (320,715 | ) | ||||||
Net cash flows from financing activities | $ | (1,560 | ) | $ | (312,331 | ) | $ | (10,683 | ) | $ | (593,435 | ) | $ | 354,943 | |||||
Total Assets | $ | 5,372,583 | $ | 5,204,613 | $ | 5,225,083 | $ | 5,359,921 | $ | 6,147,982 | |||||||||
Long-Term Debt, including current installments | $ | 1,672,290 | $ | 1,674,013 | $ | 1,565,847 | $ | 1,567,331 | $ | 1,584,705 | |||||||||
Common Stock Data | |||||||||||||||||||
Market price per common share at year end | $ | 20.51 | $ | 18.23 | $ | 13.02 | $ | 12.65 | $ | 10.08 | |||||||||
Book value per common share at year end | $ | 20.19 | $ | 19.76 | $ | 17.90 | $ | 19.13 | $ | 19.13 | |||||||||
Tangible book value per share at year end | $ | 16.70 | $ | 16.27 | $ | 14.10 | $ | 15.33 | $ | 15.31 | |||||||||
Average number of common shares outstanding - diluted | 80,417 | 89,757 | 91,557 | 91,671 | 83,468 | ||||||||||||||
Dividends declared per common share | $ | 0.580 | $ | 0.500 | $ | 0.500 | $ | 0.500 | $ | 0.605 | |||||||||
Capitalization | |||||||||||||||||||
PNMR common stockholders’ equity | 48.9 | % | 48.3 | % | 47.8 | % | 49.6 | % | 49.3 | % | |||||||||
Convertible preferred stock | — | — | 3.1 | 3.0 | 3.0 | ||||||||||||||
Preferred stock of subsidiary, without mandatory redemption requirements | 0.3 | 0.3 | 0.4 | 0.3 | 0.3 | ||||||||||||||
Long-term debt | 50.8 | 51.4 | 48.7 | 47.1 | 47.4 | ||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
PNM RESOURCES, INC. AND SUBSIDIARIES | |||||||||||||||||||
COMPARATIVE OPERATING STATISTICS | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
(In thousands) | |||||||||||||||||||
PNM Revenues | |||||||||||||||||||
Residential | $ | 409,005 | $ | 390,380 | $ | 355,905 | $ | 320,965 | $ | 296,121 | |||||||||
Commercial | 413,332 | 386,383 | 355,699 | 330,552 | 326,408 | ||||||||||||||
Industrial | 103,991 | 94,883 | 85,576 | 79,540 | 100,665 | ||||||||||||||
Public authority | 25,495 | 23,970 | 21,302 | 19,770 | 19,135 | ||||||||||||||
Transmission | 39,373 | 43,637 | 38,667 | 36,075 | 33,161 | ||||||||||||||
Firm-requirements wholesale | 39,390 | 34,127 | 31,870 | 29,048 | 46,854 | ||||||||||||||
Other sales for resale | 47,321 | 69,318 | 121,729 | 140,314 | 345,948 | ||||||||||||||
Mark-to-market activity | 892 | 4,214 | (3,599 | ) | 151 | 56,560 | |||||||||||||
Other | 13,465 | 10,377 | 9,979 | 11,594 | 18,090 | ||||||||||||||
Total PNM Revenues | $ | 1,092,264 | $ | 1,057,289 | $ | 1,017,128 | $ | 968,009 | $ | 1,242,942 | |||||||||
TNMP Revenues | |||||||||||||||||||
Residential | $ | 103,255 | $ | 100,290 | $ | 83,645 | $ | 74,739 | $ | 71,673 | |||||||||
Commercial | 88,258 | 84,896 | 77,474 | 73,346 | 72,786 | ||||||||||||||
Industrial | 13,405 | 13,065 | 12,342 | 12,113 | 13,849 | ||||||||||||||
Other | 45,222 | 39,607 | 39,127 | 32,434 | 31,974 | ||||||||||||||
Total TNMP Revenues | $ | 250,140 | $ | 237,858 | $ | 212,588 | $ | 192,632 | $ | 190,282 | |||||||||
First Choice Revenues | |||||||||||||||||||
Residential | $ | — | $ | 260,161 | $ | 305,834 | $ | 349,629 | $ | 407,350 | |||||||||
Commercial | — | 166,498 | 159,785 | 160,998 | 205,518 | ||||||||||||||
Trading gains (losses) | — | — | (4 | ) | 14 | (49,931 | ) | ||||||||||||
Other | — | 12,791 | 17,588 | 18,177 | 19,287 | ||||||||||||||
Total First Choice Revenues | $ | — | $ | 439,450 | $ | 483,203 | $ | 528,818 | $ | 582,224 |
PNM RESOURCES, INC. AND SUBSIDIARIES | ||||||||||||||
COMPARATIVE OPERATING STATISTICS | ||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||
PNM MWh Sales | ||||||||||||||
Residential | 3,323,544 | 3,402,842 | 3,361,472 | 3,264,378 | 3,221,894 | |||||||||
Commercial | 4,022,184 | 4,043,796 | 4,015,999 | 3,899,121 | 4,029,802 | |||||||||
Industrial | 1,771,316 | 1,560,867 | 1,449,933 | 1,454,480 | 1,657,580 | |||||||||
Public authority | 279,169 | 282,062 | 263,424 | 249,554 | 253,079 | |||||||||
Firm-requirements wholesale | 651,972 | 650,356 | 677,508 | 689,740 | 1,123,539 | |||||||||
Other sales for resale | 1,652,225 | 2,076,869 | 2,203,787 | 3,996,317 | 5,095,183 | |||||||||
Total PNM MWh Sales | 11,700,410 | 12,016,792 | 11,972,123 | 13,553,590 | 15,381,077 | |||||||||
TNMP MWh Sales | ||||||||||||||
Residential | 2,714,511 | 2,862,337 | 2,699,601 | 2,582,555 | 2,533,025 | |||||||||
Commercial | 2,353,135 | 2,360,998 | 2,260,505 | 2,216,870 | 2,206,155 | |||||||||
Industrial | 2,727,126 | 2,578,877 | 2,241,452 | 1,983,165 | 2,094,789 | |||||||||
Other | 103,856 | 108,664 | 103,341 | 107,091 | 107,524 | |||||||||
Total TNMP MWh Sales | 7,898,628 | 7,910,876 | 7,304,899 | 6,889,681 | 6,941,493 | |||||||||
First Choice MWh Sales | ||||||||||||||
Residential | — | 2,006,437 | 2,267,836 | 2,441,550 | 2,547,490 | |||||||||
Commercial | — | 1,538,203 | 1,363,746 | 1,218,949 | 1,471,400 | |||||||||
Total First Choice MWh Sales | — | 3,544,640 | 3,631,582 | 3,660,499 | 4,018,890 |
Notes: | Under TECA, consumers in Texas can choose any REP to provide energy. TNMP delivers energy to consumers within its service area regardless of the REP chosen. Therefore, TNMP earns revenue for energy delivery and REPs earn revenue on the usage of that energy by its customers. The MWh reported above for TNMP and First choice include 836,599, 1,012,842, 1,131,907, and 1,563,260 MWh used by consumers of TNMP in 2011, 2010, 2009, and 2008, who chose First Choice as their REP. |
PNM RESOURCES, INC. AND SUBSIDIARIES | |||||||||||||||||||
COMPARATIVE OPERATING STATISTICS | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
PNM Customers | |||||||||||||||||||
Residential | 450,507 | 448,979 | 447,789 | 445,637 | 442,647 | ||||||||||||||
Commercial | 54,953 | 54,468 | 54,005 | 53,787 | 53,059 | ||||||||||||||
Industrial | 251 | 252 | 260 | 270 | 284 | ||||||||||||||
Other sales for resale | 36 | 28 | 46 | 44 | 55 | ||||||||||||||
Other | 952 | 983 | 1,003 | 991 | 991 | ||||||||||||||
Total PNM Customers | 506,699 | 504,710 | 503,103 | 500,729 | 497,036 | ||||||||||||||
TNMP Consumers | |||||||||||||||||||
Residential | 193,550 | 192,356 | 190,809 | 188,812 | 187,888 | ||||||||||||||
Commercial | 36,819 | 37,208 | 37,356 | 37,728 | 38,548 | ||||||||||||||
Industrial | 70 | 73 | 72 | 73 | 74 | ||||||||||||||
Other | 2,037 | 2,092 | 2,099 | 2,059 | 2,115 | ||||||||||||||
Total TNMP Consumers | 232,476 | 231,729 | 230,336 | 228,672 | 228,625 | ||||||||||||||
First Choice Customers | |||||||||||||||||||
Residential | — | 176,577 | 172,506 | 183,605 | 192,306 | ||||||||||||||
Commercial | — | 44,485 | 41,695 | 41,371 | 45,125 | ||||||||||||||
Total First Choice Customers | — | 221,062 | 214,201 | 224,976 | 237,431 | ||||||||||||||
PNMR Generation Statistics | |||||||||||||||||||
Net Capability - MW, including wind and solar | 2,537 | 2,547 | 2,631 | 2,711 | 2,713 | ||||||||||||||
Coincidental Peak Demand - MW | 1,948 | 1,938 | 1,973 | 1,866 | 1,901 | ||||||||||||||
Average Fuel Cost per MMBTU | $ | 2.308 | $ | 2.267 | $ | 2.064 | $ | 1.895 | $ | 2.404 | |||||||||
BTU per KWh of Net Generation | 10,289 | 10,441 | 10,237 | 10,277 | 10,269 |
Notes: | The consumers reported above for TNMP include 64,732, 70,366, 80,718, and 92,090 consumers of TNMP for 2011, 2010, 2009, and 2008, who chose First Choice as their REP. These TNMP customers are also included in the First choice customers. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Earning authorized returns on its regulated businesses |
• | Continuing to improve credit ratings |
• | Providing a top-quartile total return to investors |
• | Achieving industry-leading safety performance and customer satisfaction |
• | Maintaining strong plant performance and reliability |
• | Developing strategies to meet regional haze rules at the coal-fired SJGS as cost effectively as possible while providing broad environmental benefits |
• | NMED development of a revised SIP |
• | Approval of the revised SIP by EIB |
• | EPA approval of the revised SIP |
• | NMPRC approval of the retirement of Units 2 and 3 and plans to acquire replacement power |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||
Net earnings (loss) | $ | 105.5 | $ | 176.4 | $ | (45.2 | ) | $ | (70.9 | ) | $ | 221.6 | |||||||
Average common and common equivalent shares | 80.4 | 89.8 | 91.6 | (9.4 | ) | (1.8 | ) | ||||||||||||
Net earnings (loss) per diluted share | $ | 1.31 | $ | 1.96 | $ | (0.49 | ) | $ | (0.65 | ) | $ | 2.45 |
Change | |||||||
2012/2011 | 2011/2010 | ||||||
(In millions) | |||||||
PNM | $ | 37.0 | $ | (2.8 | ) | ||
TNMP | 4.4 | 6.3 | |||||
First Choice | (24.1 | ) | 0.1 | ||||
Corporate and Other | (88.2 | ) | 95.1 | ||||
Optim Energy, including impairment | — | 122.9 | |||||
Net change | $ | (70.9 | ) | $ | 221.6 |
• | Exit from unregulated businesses - As discussed above, PNMR sold First Choice in 2011, resulting in a pre-tax gain of $174.9 million, which was included in the Corporate and Other segment. Additionally, PNMR wrote-off its investment in Optim Energy in 2010, recognizing a pre-tax impairment loss of $188.2 million. In addition to the impacts of these transactions, results of operations only include Optim Energy through December 31, 2010 and First Choice through October 31, 2011. |
• | Rate increases for PNM and TNMP - Additional information about these rate increases is provided in Note 17 |
• | Decrease in the number of common and common equivalent shares, primarily due to PNMR's purchase of its equity as described in Note 6 |
• | Other factors impacting results of operation for each segment are discussed under Results of Operations below |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions) | |||||||||||||||||||
Total revenues | $ | 1,092.3 | $ | 1,057.3 | $ | 1,017.1 | $ | 35.0 | $ | 40.2 | |||||||||
Cost of energy | 353.6 | 362.2 | 352.3 | (8.6 | ) | 9.9 | |||||||||||||
Margin | 738.6 | 695.1 | 664.9 | 43.5 | 30.2 | ||||||||||||||
Operating expenses | 435.4 | 438.8 | 424.5 | (3.4 | ) | 14.3 | |||||||||||||
Depreciation and amortization | 97.3 | 94.8 | 92.3 | 2.5 | 2.5 | ||||||||||||||
Operating income | 205.9 | 161.4 | 148.1 | 44.5 | 13.3 | ||||||||||||||
Other income (deductions) | 26.5 | 19.9 | 31.6 | 6.6 | (11.7 | ) | |||||||||||||
Net interest charges | (76.1 | ) | (75.3 | ) | (72.4 | ) | (0.8 | ) | (2.9 | ) | |||||||||
Earnings before income taxes | 156.3 | 106.0 | 107.3 | 50.3 | (1.3 | ) | |||||||||||||
Income (taxes) | (50.7 | ) | (37.4 | ) | (36.4 | ) | (13.3 | ) | (1.0 | ) | |||||||||
Valencia non-controlling interest | (14.1 | ) | (14.0 | ) | (13.6 | ) | (0.1 | ) | (0.4 | ) | |||||||||
Preferred stock dividend requirements | (0.5 | ) | (0.5 | ) | (0.5 | ) | — | — | |||||||||||
Segment earnings | $ | 91.0 | $ | 54.0 | $ | 56.8 | $ | 37.0 | $ | (2.8 | ) |
2012/2011 Change | 2011/2010 Change | ||||||||||||||||||||||
Total Revenues | Cost of Energy | Margin | Total Revenues | Cost of Energy | Margin | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Retail rate increases | $ | 40.3 | $ | — | $ | 40.3 | $ | 32.1 | $ | — | $ | 32.1 | |||||||||||
Retail load, fuel, and transmission | (15.9 | ) | (10.6 | ) | (5.4 | ) | 28.3 | 10.7 | 17.5 | ||||||||||||||
Wholesale rate increase | 4.0 | — | 4.0 | ||||||||||||||||||||
Unregulated margins | (5.9 | ) | 1.1 | (7.0 | ) | (41.0 | ) | 0.9 | (41.9 | ) | |||||||||||||
Energy efficiency rider | 8.9 | — | 8.9 | 13.0 | — | 13.0 | |||||||||||||||||
Renewable rider | 6.9 | 2.0 | 4.9 | — | — | — | |||||||||||||||||
Net unrealized economic hedges | (3.3 | ) | (1.1 | ) | (2.2 | ) | 7.8 | (1.7 | ) | 9.5 | |||||||||||||
Total increase (decrease) | $ | 35.0 | $ | (8.6 | ) | $ | 43.5 | $ | 40.2 | $ | 9.9 | $ | 30.2 |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions, except customers) | |||||||||||||||||||
Residential | $ | 409.0 | $ | 390.4 | $ | 355.9 | $ | 18.6 | $ | 34.5 | |||||||||
Commercial | 413.3 | 386.4 | 355.7 | 26.9 | 30.7 | ||||||||||||||
Industrial | 104.0 | 94.9 | 85.6 | 9.1 | 9.3 | ||||||||||||||
Public authority | 25.5 | 24.0 | 21.3 | 1.5 | 2.7 | ||||||||||||||
Transmission | 39.4 | 43.6 | 38.7 | (4.2 | ) | 4.9 | |||||||||||||
Firm-requirements wholesale | 39.4 | 34.1 | 31.9 | 5.3 | 2.2 | ||||||||||||||
Other sales for resale | 47.4 | 69.3 | 121.7 | (21.9 | ) | (52.4 | ) | ||||||||||||
Mark-to-market activity | 0.9 | 4.2 | (3.6 | ) | (3.3 | ) | 7.8 | ||||||||||||
Other | 13.4 | 10.4 | 9.9 | 3.0 | 0.5 | ||||||||||||||
$ | 1,092.3 | $ | 1,057.3 | $ | 1,017.1 | $ | 35.0 | $ | 40.2 | ||||||||||
Average retail customers (thousands) | 505.6 | 503.9 | 501.7 | 1.7 | 2.2 |
Year Ended December 31, | Change | |||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | ||||||||||
(Gigawatt hours) | ||||||||||||||
Residential | 3,323.5 | 3,402.8 | 3,361.5 | (79.3 | ) | 41.3 | ||||||||
Commercial | 4,022.2 | 4,043.8 | 4,016.0 | (21.6 | ) | 27.8 | ||||||||
Industrial | 1,771.3 | 1,560.9 | 1,449.9 | 210.4 | 111.0 | |||||||||
Public authority | 279.2 | 282.1 | 263.4 | (2.9 | ) | 18.7 | ||||||||
Firm-requirements wholesale | 652.0 | 650.4 | 677.5 | 1.6 | (27.1 | ) | ||||||||
Other sales for resale | 1,652.2 | 2,076.8 | 2,203.8 | (424.6 | ) | (127.0 | ) | |||||||
11,700.4 | 12,016.8 | 11,972.1 | (316.4 | ) | 44.7 |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions) | |||||||||||||||||||
Total revenues | $ | 250.1 | $ | 237.9 | $ | 212.6 | $ | 12.2 | $ | 25.3 | |||||||||
Cost of energy | 46.2 | 41.2 | 37.1 | 5.0 | 4.1 | ||||||||||||||
Margin | 203.9 | 196.7 | 175.5 | 7.2 | 21.2 | ||||||||||||||
Operating expenses | 87.1 | 88.2 | 77.4 | (1.1 | ) | 10.8 | |||||||||||||
Depreciation and amortization | 49.3 | 44.6 | 41.7 | 4.7 | 2.9 | ||||||||||||||
Operating income | 67.5 | 63.8 | 56.4 | 3.7 | 7.4 | ||||||||||||||
Other income (deductions) | 2.7 | 1.6 | 0.8 | 1.1 | 0.8 | ||||||||||||||
Net interest charges | (28.2 | ) | (29.3 | ) | (31.2 | ) | 1.1 | 1.9 | |||||||||||
Earnings before income taxes | 42.1 | 36.1 | 26.0 | 6.0 | 10.1 | ||||||||||||||
Income (taxes) | (15.4 | ) | (13.9 | ) | (10.0 | ) | (1.5 | ) | (3.9 | ) | |||||||||
Segment earnings | $ | 26.7 | $ | 22.3 | $ | 16.0 | $ | 4.4 | $ | 6.3 |
2012/2011 Change | 2011/2010 Change | ||||||||||||||||||||||
Total Revenues | Cost of Energy | Margin | Total Revenues | Cost of Energy | Margin | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Rate increases | $ | 1.4 | $ | — | $ | 1.4 | $ | 8.7 | $ | — | $ | 8.7 | |||||||||||
Customer usage/load | (2.1 | ) | — | (2.1 | ) | 5.5 | — | 5.5 | |||||||||||||||
Transmission cost recovery factor | 4.9 | 5.0 | (0.1 | ) | 6.8 | 4.1 | 2.7 | ||||||||||||||||
AMS surcharge | 6.9 | — | 6.9 | 1.6 | 1.6 | ||||||||||||||||||
1999 rate settlement | 1.6 | — | 1.6 | — | — | — | |||||||||||||||||
Other | (0.5 | ) | — | (0.5 | ) | 2.7 | — | 2.7 | |||||||||||||||
Total increase | $ | 12.2 | $ | 5.0 | $ | 7.2 | $ | 25.3 | $ | 4.1 | $ | 21.2 |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions, except customers) | |||||||||||||||||||
Residential | $ | 103.3 | $ | 100.3 | $ | 83.6 | $ | 3.0 | $ | 16.7 | |||||||||
Commercial | 88.3 | 84.9 | 77.5 | 3.4 | 7.4 | ||||||||||||||
Industrial | 13.4 | 13.1 | 12.3 | 0.3 | 0.8 | ||||||||||||||
Other | 45.1 | 39.6 | 39.2 | 5.5 | 0.4 | ||||||||||||||
$ | 250.1 | $ | 237.9 | $ | 212.6 | $ | 12.2 | $ | 25.3 | ||||||||||
Average consumers (thousands) (1) | 233.0 | 231.3 | 229.4 | 1.7 | 1.9 |
(1) | TNMP provides transmission and distribution services to REPs that provide electric service to customers in TNMP's service territories. The number of consumers above represents the customers of these REPs. Under TECA, consumers in Texas have the ability to choose any REP to provide energy. The average consumers reported above include 67,268 and 75,220 consumers of TNMP for 2011 and 2010 that chose First Choice as their REP. These consumers are also included in the First Choice segment. |
Year Ended December 31, | Change | |||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | ||||||||||
(Gigawatt hours)(1) | ||||||||||||||
Residential | 2,714.5 | 2,862.3 | 2,699.6 | (147.8 | ) | 162.7 | ||||||||
Commercial | 2,353.1 | 2,361.0 | 2,260.5 | (7.9 | ) | 100.5 | ||||||||
Industrial | 2,727.1 | 2,578.9 | 2,241.5 | 148.2 | 337.4 | |||||||||
Other | 103.9 | 108.7 | 103.3 | (4.8 | ) | 5.4 | ||||||||
7,898.6 | 7,910.9 | 7,304.9 | (12.3 | ) | 606.0 |
(1) | The GWh sales reported above include 836.6 and 1,012.8 GWhs for 2011 and 2010 used by consumers of TNMP who have chosen First Choice as their REP. These GWhs are also included below in the First Choice segment. |
Ten Months Ended October 31, | Year Ended December 31, | Change | |||||||||
2011 | 2010 | 2011/2010 | |||||||||
(In millions) | |||||||||||
Total revenues | $ | 439.5 | $ | 483.2 | $ | (43.8 | ) | ||||
Cost of energy | 323.3 | 350.5 | (27.1 | ) | |||||||
Margin | 116.1 | 132.7 | (16.6 | ) | |||||||
Operating expenses | 76.0 | 92.1 | (16.1 | ) | |||||||
Depreciation and amortization | 1.1 | 0.9 | 0.2 | ||||||||
Operating income | 39.1 | 39.8 | (0.7 | ) | |||||||
Other income (deductions) | (0.6 | ) | (0.4 | ) | (0.2 | ) | |||||
Net interest charges | (0.6 | ) | (1.3 | ) | 0.7 | ||||||
Earnings before income taxes | 37.9 | 38.1 | (0.2 | ) | |||||||
Income (taxes) | (13.8 | ) | (14.1 | ) | 0.3 | ||||||
Segment earnings | $ | 24.1 | $ | 24.1 | $ | 0.1 |
Ten Months Ended October 31, | Year Ended December 31, | Change | |||||||||
2011 | 2010 | 2011/2010 | |||||||||
(In millions, except customers) | |||||||||||
Residential | $ | 260.2 | $ | 305.8 | $ | (45.6 | ) | ||||
Commercial | 166.5 | 159.8 | 6.7 | ||||||||
Other | 12.8 | 17.6 | (4.9 | ) | |||||||
$ | 439.5 | $ | 483.2 | $ | (43.8 | ) | |||||
Actual customers (thousands) (1,2) | 221.1 | 214.2 | 6.9 |
(1) | See note above in the TNMP segment discussion about the impact of TECA. |
(2) | Due to the competitive nature of First Choice’s business, actual customer count at the end of the period is a more representative business indicator than average customers. |
Ten Months Ended October 31, | Year Ended December 31, | Change | ||||||
2011 | 2010 | 2011/2010 | ||||||
(Gigawatt hours(1)) | ||||||||
Residential | 2,006.4 | 2,267.8 | (261.4 | ) | ||||
Commercial | 1,538.2 | 1,363.8 | 174.4 | |||||
3,544.6 | 3,631.6 | (87.0 | ) |
(1) | See note above in the TNMP segment discussion about the impact of TECA. |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions) | |||||||||||||||||||
Total revenues | $ | — | $ | (34.0 | ) | $ | (39.4 | ) | $ | 34.0 | $ | 5.4 | |||||||
Cost of energy | — | (33.8 | ) | (39.1 | ) | 33.8 | 5.3 | ||||||||||||
Margin | — | (0.2 | ) | (0.3 | ) | 0.2 | 0.2 | ||||||||||||
Operating expenses | (17.9 | ) | (9.7 | ) | (12.3 | ) | (8.2 | ) | 2.6 | ||||||||||
Depreciation and amortization | 17.5 | 16.5 | 16.8 | 1.0 | (0.3 | ) | |||||||||||||
Operating income (loss) | 0.3 | (7.0 | ) | (4.9 | ) | 7.3 | (2.2 | ) | |||||||||||
Gain on sale of First Choice | 1.0 | 174.9 | — | (173.9 | ) | 174.9 | |||||||||||||
Optim Energy loss and impairment | — | — | (203.4 | ) | — | 203.4 | |||||||||||||
Other income (deductions) | (8.1 | ) | (15.8 | ) | (6.0 | ) | 7.7 | (9.8 | ) | ||||||||||
Net interest charges | (16.6 | ) | (19.6 | ) | (20.5 | ) | 3.0 | 0.9 | |||||||||||
Earnings (loss) before income taxes | (23.4 | ) | 132.5 | (234.8 | ) | (155.9 | ) | 367.3 | |||||||||||
Income (taxes) benefit | 11.2 | (56.5 | ) | 92.8 | 67.7 | (149.3 | ) | ||||||||||||
Segment earnings (loss) | $ | (12.2 | ) | $ | 76.0 | $ | (142.0 | ) | $ | (88.2 | ) | $ | 218.1 |
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | 2010 | 2012/2011 | 2011/2010 | |||||||||||||||
(In millions) | |||||||||||||||||||
Net cash flows from: | |||||||||||||||||||
Operating activities | $ | 281.3 | $ | 292.2 | $ | 287.4 | $ | (10.9 | ) | $ | 4.8 | ||||||||
Investing activities | (285.9 | ) | 19.8 | (275.9 | ) | (305.7 | ) | 295.7 | |||||||||||
Financing activities | (1.6 | ) | (312.3 | ) | (10.7 | ) | 310.7 | (301.6 | ) | ||||||||||
Net change in cash and cash equivalents | $ | (6.1 | ) | $ | (0.3 | ) | $ | 0.8 | $ | (5.9 | ) | $ | (1.1 | ) |
• | Upgrading generation resources, including those for renewable energy |
• | Expanding the electric transmission and distribution systems |
• | Purchasing nuclear fuel |
2013 | 2014-2017 | Total | |||||||||
(In millions) | |||||||||||
Construction expenditures | $ | 372.8 | $ | 1,409.1 | $ | 1,781.9 | |||||
Dividends on PNMR common stock | 52.6 | 210.3 | 262.9 | ||||||||
Dividends on PNM preferred stock | 0.5 | 2.1 | 2.6 | ||||||||
Total capital requirements | $425.9 | $1,621.5 | $2,047.4 |
• | Ability to earn a fair return on equity |
• | Results of operations |
• | Ability to obtain required regulatory approvals |
• | Conditions in the financial markets |
• | Credit ratings |
PNMR | PNM | TNMP | |
S&P | |||
Senior secured | * | * | BBB+ |
Senior unsecured | BB+ | BBB- | * |
Preferred stock | * | BB | * |
Moody’s | |||
Senior secured | * | * | A3 |
Senior unsecured | Ba1 | Baa3 | * |
Preferred stock | * | Ba2 | * |
* Not applicable |
PNMR Separate | PNM Separate | TNMP Separate | PNMR Consolidated | ||||||||||||
(In millions) | |||||||||||||||
Financing capacity - revolving credit facility | $ | 300.0 | $ | 400.0 | $ | 75.0 | $ | 775.0 | |||||||
Amounts outstanding as of February 22, 2013: | |||||||||||||||
Revolving credit facility | 24.2 | 107.7 | 25.0 | 156.9 | |||||||||||
Letters of credit | 11.3 | 3.5 | 0.3 | 15.1 | |||||||||||
Total short term-debt and letters of credit | 35.5 | 111.2 | 25.3 | 172.0 | |||||||||||
Remaining availability as of February 22, 2013 | $ | 264.5 | $ | 288.8 | $ | 49.7 | $ | 603.0 | |||||||
Invested cash as of February 22, 2013 | $ | 2.8 | $ | — | $ | — | $ | 2.8 |
PVNGS Units 1&2 | EIP | Delta | Total | ||||||||||||
(In thousands) | |||||||||||||||
2013 | $ | 27,427 | $ | — | $ | 5,956 | $ | 33,383 | |||||||
2014 | 32,236 | 4,267 | 5,956 | 42,459 | |||||||||||
2015 | 17,082 | — | 5,956 | 23,038 | |||||||||||
2016 | 3,270 | — | 5,956 | 9,226 | |||||||||||
2017 | — | — | 5,956 | 5,956 | |||||||||||
Thereafter | — | — | 15,385 | 15,385 | |||||||||||
Total | $ | 80,015 | $ | 4,267 | $ | 45,165 | $ | 129,447 |
Payments Due | ||||||||||||||||||||
Contractual Obligations | 2013 | 2014-2015 | 2016-2017 | 2018 and Thereafter | Total | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-term debt (a) | $ | 2,530 | $ | 231,892 | $ | 57,000 | $ | 1,385,070 | $ | 1,676,492 | ||||||||||
Interest on long-term debt (b) | 116,377 | 227,180 | 198,033 | 606,679 | 1,148,269 | |||||||||||||||
Operating leases (c) | 44,040 | 83,525 | 28,309 | 94,883 | 250,757 | |||||||||||||||
Transmission reservation payments | 13,443 | 14,859 | 11,276 | 19,667 | 59,245 | |||||||||||||||
Coal contracts (d) | 61,809 | 125,687 | 101,853 | — | 289,349 | |||||||||||||||
Coal mine decommissioning (e) | 3,907 | 1,327 | 2,928 | 72,983 | 81,145 | |||||||||||||||
Nuclear decommissioning funding requirements (f) | 2,600 | 5,200 | 5,200 | 60,812 | 73,812 | |||||||||||||||
Outsourcing | 5,573 | 7,771 | 3,629 | — | 16,973 | |||||||||||||||
Pension and retiree medical (g) | 64,542 | 35,719 | 8,274 | — | 108,535 | |||||||||||||||
Construction expenditures (h) | 372,807 | 827,969 | 581,114 | — | 1,781,890 | |||||||||||||||
Total (i) | $ | 687,628 | $ | 1,561,129 | $ | 997,616 | $ | 2,240,094 | $ | 5,486,467 |
(a) | Represents total long-term debt excluding unamortized discounts of $4.2 million. |
(b) | Represents interest payments during the period. |
(c) | The operating lease amounts include amounts due to Delta. The amounts include payments under the PVNGS leases through their existing expiration. As discussed in Note 7, PNM gave notice to the lessors under the PVNGS Unit 1 leases in 2013 that PNM would renew the leases. The renewal payments under the PVNGS Unit 1 leases are $16.5 million, which are not included in the above table. The renewal period is yet to be determined, but will be between two and eight years. The amounts in the above table are net of amounts to be returned to PNM as payments on its investments in related PVNGS lessor notes. See Investments in Note 1 and Note 7. See Note 9 for additional information about the Delta operating lease, including the potential purchase of Delta. |
(d) | Represents only certain minimum payments that may be required under the coal contracts if no deliveries are made. |
(e) | Includes funding of the trust established for post-term reclamation related to the mines serving SJGS. See Note 16. |
(f) | These obligations represent funding based on the current rate of return on investments. |
(g) | The Company only forecasts funding for its pension and retiree medical plans for the next five years. |
(h) | Represents forecasted construction expenditures, including nuclear fuel, under which substantial commitments have been made. See Note 14. The Company only forecasts capital expenditures for the next five years. The construction expenditures include the purchase of the leased portion of the EIP at the expiration of the lease. See Capital Requirements above and Note 16. |
(i) | PNMR is unable to reasonably estimate the timing of liability and interest payments for uncertain income tax positions in individual years due to uncertainties in the timing of the effective settlement of tax positions. Therefore, PNMR’s liability of $19.2 million and interest payable of $1.1 million are not reflected in this table. Amounts PNM is obligated to pay Valencia are not included above since Valencia is consolidated by PNM in accordance with GAAP. See Note 9. No amounts are included above for the New Mexico Wind Energy PPA since there are no minimum payments required under that agreement. |
December 31, | |||||
PNMR | 2012 | 2011 | |||
PNMR common equity | 48.9 | % | 48.3 | % | |
Preferred stock of subsidiary | 0.3 | % | 0.3 | % | |
Long-term debt | 50.8 | % | 51.4 | % | |
Total capitalization | 100.0 | % | 100.0 | % | |
PNM | |||||
PNM common equity | 50.5 | % | 49.7 | % | |
Preferred stock | 0.5 | % | 0.5 | % | |
Long-term debt | 49.0 | % | 49.8 | % | |
Total capitalization | 100.0 | % | 100.0 | % | |
TNMP | |||||
Common equity | 59.8 | % | 59.8 | % | |
Long-term debt | 40.2 | % | 40.2 | % | |
Total capitalization | 100.0 | % | 100.0 | % |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
Economic Hedges | |||||||
PNMR | PNM | ||||||
(In thousands) | |||||||
Sources of fair value gain (loss): | |||||||
Net fair value at December 31, 2010 | $ | (22,975 | ) | $ | (3,676 | ) | |
Amount realized on contracts delivered during period | 5,232 | (802 | ) | ||||
Changes in fair value | 3,481 | 4,624 | |||||
Net mark-to-market change recorded in earnings | 8,713 | 3,822 | |||||
Net change recorded as regulatory liability | (502 | ) | (502 | ) | |||
Unearned/prepaid option premiums | 1,793 | — | |||||
Settlement of de-designated cash flow hedges | 423 | — | |||||
Sale of First Choice | 12,192 | — | |||||
Net fair value at December 31, 2011 | (356 | ) | (356 | ) | |||
Amount realized on contracts delivered during period | (4,110 | ) | (4,110 | ) | |||
Changes in fair value | 5,708 | 5,708 | |||||
Net mark-to-market change recorded in earnings | 1,598 | 1,598 | |||||
Net change recorded as regulatory liability | (38 | ) | (38 | ) | |||
Net fair value at December 31, 2012 | $ | 1,204 | $ | 1,204 |
2013 | 2014 | 2015 | 2016 | ||||||||||||
PNMR and PNM | (In thousands) | ||||||||||||||
Economic hedges | |||||||||||||||
Prices actively quoted | $ | — | $ | — | $ | — | $ | — | |||||||
Prices provided by other external sources | 2,785 | (585 | ) | (669 | ) | (327 | ) | ||||||||
Prices based on models and other valuations | — | — | — | — | |||||||||||
Total | $ | 2,785 | $ | (585 | ) | $ | (669 | ) | $ | (327 | ) |
Rating (1) | Credit Risk Exposure(2) | Number of Counter-parties >10% | Net Exposure of Counter-parties >10% | ||||||||
(Dollars in thousands) | |||||||||||
PNMR and PNM | |||||||||||
External ratings: | |||||||||||
Investment grade | $ | 6,117 | 3 | $ | 3,345 | ||||||
Non-investment grade | — | — | — | ||||||||
Internal ratings: | |||||||||||
Investment grade | 121 | — | — | ||||||||
Non-investment grade | 33 | — | — | ||||||||
Total | $ | 6,271 | $ | 3,345 |
(1) | The rating “Investment Grade” is for counterparties, or a guarantor, with a minimum S&P rating of BBB- or Moody’s rating of Baa3. The category “Internal Ratings - Investment Grade” includes those counterparties that are internally rated as investment grade in accordance with the guidelines established in the Company’s credit policy. |
(2) | The Credit Risk Exposure is the gross credit exposure, including long-term contracts (other than full-requirements customers), forward sales, and short-term sales. The exposure captures the amounts from receivables/payables for realized transactions, delivered and unbilled revenues, and mark-to-market gains/losses. Gross exposures can be offset according to legally enforceable netting arrangements but are not reduced by posted credit collateral. At December 31, 2012, PNMR and PNM held no credit collateral to offset their credit exposure. |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Page | ||
PNM Resources, Inc. and Subsidiaries | ||
Public Service Company of New Mexico and Subsidiaries | ||
Texas-New Mexico Power Company and Subsidiaries | ||
Supplementary Data: | ||
/s/ Patricia K. Collawn |
Patricia K. Collawn, |
Chairman, President, and Chief Executive Officer |
/s/ Charles Eldred |
Charles Eldred |
Executive Vice President and |
Chief Financial Officer |
/s/ Patricia K. Collawn |
Patricia K. Collawn, |
President and Chief Executive Officer |
/s/ Charles Eldred |
Charles Eldred |
Executive Vice President and |
Chief Financial Officer |
/s/ Patricia K. Collawn |
Patricia K. Collawn, |
Chief Executive Officer |
/s/ Thomas G. Sategna |
Thomas G. Sategna |
Vice President and Controller |
/s/ DELOITTE & TOUCHE LLP |
Phoenix, Arizona March 1, 2013 |
/s/ DELOITTE & TOUCHE LLP |
Phoenix, Arizona March 1, 2013 |
/s/ DELOITTE & TOUCHE LLP |
Phoenix, Arizona March 1, 2013 |
/s/ DELOITTE & TOUCHE LLP |
Phoenix, Arizona March 1, 2013 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Electric Operating Revenues | $ | 1,342,403 | $ | 1,700,619 | $ | 1,673,517 | |||||
Operating Expenses: | |||||||||||
Cost of energy | 399,850 | 692,922 | 700,727 | ||||||||
Administrative and general | 187,740 | 257,774 | 264,556 | ||||||||
Energy production costs | 185,417 | 180,850 | 195,919 | ||||||||
Regulatory disallowances | — | 21,402 | — | ||||||||
Depreciation and amortization | 164,173 | 157,047 | 151,704 | ||||||||
Transmission and distribution costs | 71,125 | 69,693 | 63,421 | ||||||||
Taxes other than income taxes | 60,377 | 63,632 | 57,738 | ||||||||
Total operating expenses | 1,068,682 | 1,443,320 | 1,434,065 | ||||||||
Operating income | 273,721 | 257,299 | 239,452 | ||||||||
Other Income and Deductions: | |||||||||||
Interest income | 13,072 | 15,515 | 18,896 | ||||||||
Gains on investments held by NDT | 13,015 | 8,985 | 4,868 | ||||||||
Other income | 12,746 | 5,309 | 14,837 | ||||||||
Gain on sale of First Choice | 1,012 | 174,925 | — | ||||||||
Equity in net earnings (loss) of Optim Energy | — | — | (15,223 | ) | |||||||
Impairment of equity investment in Optim Energy | — | — | (188,176 | ) | |||||||
Other deductions | (17,686 | ) | (24,715 | ) | (12,660 | ) | |||||
Net other income (deductions) | 22,159 | 180,019 | (177,458 | ) | |||||||
Interest Charges | 120,845 | 124,849 | 125,373 | ||||||||
Earnings (Loss) before Income Taxes | 175,035 | 312,469 | (63,379 | ) | |||||||
Income Taxes (Benefit) | 54,910 | 121,535 | (32,255 | ) | |||||||
Net Earnings (Loss) | 120,125 | 190,934 | (31,124 | ) | |||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (14,050 | ) | (14,047 | ) | (13,563 | ) | |||||
Preferred Stock Dividend Requirements of Subsidiary | (528 | ) | (528 | ) | (528 | ) | |||||
Net Earnings (Loss) Attributable to PNMR | $ | 105,547 | $ | 176,359 | $ | (45,215 | ) | ||||
Net Earnings (Loss) Attributable to PNMR per Common Share: | |||||||||||
Basic | $ | 1.32 | $ | 1.98 | $ | (0.49 | ) | ||||
Diluted | $ | 1.31 | $ | 1.96 | $ | (0.49 | ) | ||||
Dividends Declared per Common Share | $ | 0.58 | $ | 0.50 | $ | 0.50 |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Net Earnings (Loss) | $ | 120,125 | $ | 190,934 | $ | (31,124 | ) | ||||
Other Comprehensive Income (Loss): | |||||||||||
Unrealized Gain (Loss) on Investment Securities: | |||||||||||
Unrealized holding gains arising during the period, net of income tax (expense) benefit of $(15,262), $(13,577), and $(6,643) | 23,286 | 20,718 | 10,136 | ||||||||
Reclassification adjustment for (gains) included in net earnings (loss), net of income tax expense of $14,755, $13,956, and $3,070 | (22,514 | ) | (21,295 | ) | (4,684 | ) | |||||
Pension Liability Adjustment: | |||||||||||
Experience gain (loss), net of income tax (expense) benefit of $11,910, $1,187 and $6,328 | (18,174 | ) | (1,771 | ) | (9,670 | ) | |||||
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax (expense) of $(1,825), $(1,699) and $(1,217) | 2,786 | 2,593 | 1,857 | ||||||||
Fair Value Adjustment for Designated Cash Flow Hedges: | |||||||||||
Change in fair market value, net of income tax (expense) benefit of $153, $349, and $(4,839) | (275 | ) | (653 | ) | 7,065 | ||||||
Reclassification adjustment for (gains) losses included in net earnings (loss), net of income tax expense (benefit) of $(65), $(1,230), and $18,120 | 117 | 2,218 | (27,313 | ) | |||||||
Total Other Comprehensive Income (Loss) | (14,774 | ) | 1,810 | (22,609 | ) | ||||||
Comprehensive Income (Loss) | 105,351 | 192,744 | (53,733 | ) | |||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (14,050 | ) | (14,047 | ) | (13,563 | ) | |||||
Preferred Stock Dividend Requirements of Subsidiary | (528 | ) | (528 | ) | (528 | ) | |||||
Comprehensive Income (Loss) Attributable to PNMR | $ | 90,773 | $ | 178,169 | $ | (67,824 | ) |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net earnings (loss) | $ | 120,125 | $ | 190,934 | $ | (31,124 | ) | ||||
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 206,499 | 195,366 | 186,067 | ||||||||
PVNGS firm-sales contracts revenue | — | (2,558 | ) | (58,289 | ) | ||||||
Bad debt expense | 3,367 | 24,116 | 27,566 | ||||||||
Deferred income tax expense | 56,243 | 124,424 | 35,674 | ||||||||
(Gain) on sale of First Choice | (1,012 | ) | (174,925 | ) | — | ||||||
Equity in net (earnings) loss of Optim Energy | — | — | 15,223 | ||||||||
Impairment of equity investment in Optim Energy | — | — | 188,176 | ||||||||
Net unrealized (gains) losses on derivatives | (1,598 | ) | (8,713 | ) | 29,303 | ||||||
Realized (gains) on investments held by NDT | (13,015 | ) | (8,985 | ) | (4,868 | ) | |||||
Loss on reacquired debt | — | 9,209 | — | ||||||||
Abandonment of leased premises | 7,411 | — | — | ||||||||
Stock based compensation expense | 3,585 | 6,556 | 2,894 | ||||||||
Regulatory disallowances | — | 21,402 | — | ||||||||
Other, net | (4,115 | ) | (939 | ) | (1,719 | ) | |||||
Changes in certain assets and liabilities: | |||||||||||
Accounts receivable and unbilled revenues | (2,547 | ) | (70,734 | ) | (11,398 | ) | |||||
Materials, supplies, and fuel stock | (5,412 | ) | (2,200 | ) | (1,848 | ) | |||||
Other current assets | (2,598 | ) | (21,979 | ) | (42,841 | ) | |||||
Other assets | (30,778 | ) | (15,835 | ) | 8,559 | ||||||
Accounts payable | 14,020 | 20,969 | (15,462 | ) | |||||||
Accrued interest and taxes | 255 | 7,304 | 34,163 | ||||||||
Other current liabilities | (19,905 | ) | 3,460 | (35,974 | ) | ||||||
Proceeds from governmental grants | 21,567 | 2,103 | — | ||||||||
Other liabilities | (70,743 | ) | (6,735 | ) | (36,750 | ) | |||||
Net cash flows from operating activities | 281,349 | 292,240 | 287,352 | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Utility plant additions | (308,909 | ) | (326,931 | ) | (281,488 | ) | |||||
Proceeds from sales of investments held by NDT | 167,330 | 145,286 | 79,853 | ||||||||
Purchases of investments held by NDT | (173,158 | ) | (149,185 | ) | (85,847 | ) | |||||
Proceeds from sale of First Choice | 4,034 | 329,281 | — | ||||||||
Transaction costs for sale of First Choice | — | (10,930 | ) | — | |||||||
Return of principal on PVNGS lessor notes | 23,455 | 32,274 | 29,851 | ||||||||
Investments in Optim Energy | — | — | (20,279 | ) | |||||||
Other, net | 1,353 | (17 | ) | 2,004 | |||||||
Net cash flows from investing activities | (285,895 | ) | 19,778 | (275,906 | ) |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Financing Activities: | |||||||||||
Short-term loan | 100,000 | — | — | ||||||||
Revolving credit facilities borrowings (repayments), net | (24,000 | ) | (139,300 | ) | 24,000 | ||||||
Long-term borrowings | 20,000 | 210,000 | 403,845 | ||||||||
Repayment of long-term debt | (22,387 | ) | (110,752 | ) | (405,970 | ) | |||||
Purchase of preferred stock | — | (73,475 | ) | — | |||||||
Purchase of common stock | — | (125,683 | ) | — | |||||||
Proceeds from stock option exercise | 11,684 | 5,622 | 1,247 | ||||||||
Purchases to satisfy awards of common stock | (25,168 | ) | (10,104 | ) | (2,986 | ) | |||||
Excess tax (shortfall) from stock-based payment arrangements | — | — | (580 | ) | |||||||
Payments received on PVNGS firm-sales contracts | — | 2,558 | 30,476 | ||||||||
Dividends paid | (45,137 | ) | (45,656 | ) | (46,254 | ) | |||||
Valencia’s transactions with its owner | (15,630 | ) | (16,801 | ) | (17,745 | ) | |||||
Proceeds from transmission interconnection arrangements | 983 | 1,246 | 8,515 | ||||||||
Repayment of transmission interconnection arrangements | (1,753 | ) | (4,637 | ) | — | ||||||
Debt issuance costs and other | (152 | ) | (5,349 | ) | (5,231 | ) | |||||
Net cash flows from financing activities | (1,560 | ) | (312,331 | ) | (10,683 | ) | |||||
Change in Cash and Cash Equivalents | (6,106 | ) | (313 | ) | 763 | ||||||
Cash and Cash Equivalents at Beginning of Year | 15,091 | 15,404 | 14,641 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 8,985 | $ | 15,091 | $ | 15,404 | |||||
Supplemental Cash Flow Disclosures: | |||||||||||
Interest paid, net of amounts capitalized | $ | 113,265 | $ | 116,391 | $ | 119,676 | |||||
Income taxes paid (refunded), net | $ | 5,302 | $ | (5,527 | ) | $ | (99,318 | ) |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 8,985 | $ | 15,091 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,751 and $1,778 | 87,093 | 87,794 | |||||
Unbilled revenues | 57,266 | 57,401 | |||||
Other receivables | 53,332 | 71,069 | |||||
Materials, supplies, and fuel stock | 59,643 | 54,231 | |||||
Regulatory assets | 39,120 | 44,993 | |||||
Commodity derivative instruments | 3,785 | 3,713 | |||||
Income taxes receivable | 101,477 | 95,130 | |||||
Other current assets | 31,490 | 33,397 | |||||
Total current assets | 442,191 | 462,819 | |||||
Other Property and Investments: | |||||||
Investment in PVNGS lessor notes | 54,325 | 79,049 | |||||
Investments held by NDT | 188,971 | 168,851 | |||||
Other investments | 9,139 | 12,207 | |||||
Non-utility property, net of accumulated depreciation of $131 and $120 | 4,487 | 4,631 | |||||
Total other property and investments | 256,922 | 264,738 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 5,313,796 | 5,120,167 | |||||
Less accumulated depreciation and amortization | 1,774,223 | 1,705,520 | |||||
3,539,573 | 3,414,647 | ||||||
Construction work in progress | 125,287 | 132,420 | |||||
Nuclear fuel, net of accumulated amortization of $42,644 and $36,411 | 81,627 | 80,067 | |||||
Net utility plant | 3,746,487 | 3,627,134 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 555,577 | 482,155 | |||||
Goodwill | 278,297 | 278,297 | |||||
Commodity derivative instruments | 352 | — | |||||
Other deferred charges | 92,757 | 89,470 | |||||
Total deferred charges and other assets | 926,983 | 849,922 | |||||
$ | 5,372,583 | $ | 5,204,613 |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 158,700 | $ | 82,700 | |||
Current installments of long-term debt | 2,530 | 2,387 | |||||
Accounts payable | 99,177 | 103,139 | |||||
Customer deposits | 18,176 | 15,971 | |||||
Accrued interest and taxes | 52,003 | 53,114 | |||||
Regulatory liabilities | 15,173 | 125 | |||||
Commodity derivative instruments | 1,000 | 1,632 | |||||
Dividends declared | 11,679 | 10,089 | |||||
Current portion of accumulated deferred income taxes | 258 | 9,080 | |||||
Other current liabilities | 75,407 | 95,031 | |||||
Total current liabilities | 434,103 | 373,268 | |||||
Long-term Debt | 1,669,760 | 1,671,626 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 701,545 | 645,099 | |||||
Accumulated deferred investment tax credits | 14,242 | 15,771 | |||||
Regulatory liabilities | 423,460 | 418,098 | |||||
Asset retirement obligations | 85,893 | 79,233 | |||||
Accrued pension liability and postretirement benefit cost | 224,565 | 224,766 | |||||
Commodity derivative instruments | 1,933 | 2,437 | |||||
Other deferred credits | 116,523 | 106,378 | |||||
Total deferred credits and other liabilities | 1,568,161 | 1,491,782 | |||||
Total liabilities | 3,672,024 | 3,536,676 | |||||
Commitments and Contingencies (See Note 16) | |||||||
Cumulative Preferred Stock of Subsidiary | |||||||
without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNMR common stockholders’ equity: | |||||||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,182,819 | 1,193,191 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (81,630 | ) | (66,856 | ) | |||
Retained earnings | 506,998 | 447,650 | |||||
Total PNMR common stockholders’ equity | 1,608,187 | 1,573,985 | |||||
Non-controlling interest in Valencia | 80,843 | 82,423 | |||||
Total equity | 1,689,030 | 1,656,408 | |||||
$ | 5,372,583 | $ | 5,204,613 |
PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||
Attributable to PNMR | Non- controlling Interest in Valencia | ||||||||||||||||||||||||||
PNMR Common Stockholders’ Equity | |||||||||||||||||||||||||||
Preferred Stock, Series A | Common Stock | AOCI | Retained Earnings | Total | Total Equity | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Balance at December 31, 2009 | $ | 100,000 | $ | 1,289,890 | $ | (46,057 | ) | $ | 405,884 | $ | 1,649,717 | $ | 89,359 | $ | 1,839,076 | ||||||||||||
Proceeds from stock option exercise | — | 1,247 | — | — | 1,247 | — | 1,247 | ||||||||||||||||||||
Purchases to satisfy awards of common stock | — | (2,986 | ) | — | — | (2,986 | ) | — | (2,986 | ) | |||||||||||||||||
Excess tax (shortfall) from stock-based payment arrangements | — | (580 | ) | — | — | (580 | ) | — | (580 | ) | |||||||||||||||||
Stock based compensation expense | — | 2,894 | — | — | 2,894 | — | 2,894 | ||||||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | — | (17,745 | ) | (17,745 | ) | ||||||||||||||||||
Net earnings (loss) excluding subsidiary preferred stock dividends | — | — | — | (44,687 | ) | (44,687 | ) | 13,563 | (31,124 | ) | |||||||||||||||||
Subsidiary preferred stock dividends | — | — | — | (528 | ) | (528 | ) | — | (528 | ) | |||||||||||||||||
Total other comprehensive income (loss) | — | — | (22,609 | ) | — | (22,609 | ) | — | (22,609 | ) | |||||||||||||||||
Dividends declared on common stock | — | — | — | (45,726 | ) | (45,726 | ) | — | (45,726 | ) | |||||||||||||||||
Balance at December 31, 2010 | 100,000 | 1,290,465 | (68,666 | ) | 314,943 | 1,536,742 | 85,177 | 1,721,919 | |||||||||||||||||||
Proceeds from stock option exercise | — | 5,622 | — | — | 5,622 | — | 5,622 | ||||||||||||||||||||
Purchases to satisfy awards of common stock | — | (10,104 | ) | — | — | (10,104 | ) | — | (10,104 | ) | |||||||||||||||||
Stock based compensation expense | — | 6,556 | — | — | 6,556 | — | 6,556 | ||||||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | — | (16,801 | ) | (16,801 | ) | ||||||||||||||||||
Purchase of preferred stock | (100,000 | ) | 26,490 | — | — | 26,490 | — | (73,510 | ) | ||||||||||||||||||
Purchase of common stock | — | (125,838 | ) | — | — | (125,838 | ) | — | (125,838 | ) | |||||||||||||||||
Net earnings excluding subsidiary preferred stock dividends | — | — | — | 176,887 | 176,887 | 14,047 | 190,934 | ||||||||||||||||||||
Subsidiary preferred stock dividends | — | — | — | (528 | ) | (528 | ) | — | (528 | ) | |||||||||||||||||
Total other comprehensive income | — | — | 1,810 | — | 1,810 | — | 1,810 | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | (43,652 | ) | (43,652 | ) | — | (43,652 | ) | |||||||||||||||||
Balance at December 31, 2011 | — | 1,193,191 | (66,856 | ) | 447,650 | 1,573,985 | 82,423 | $ | 1,656,408 | ||||||||||||||||||
Proceeds from stock option exercise | — | 11,684 | — | — | 11,684 | — | 11,684 | ||||||||||||||||||||
Purchases to satisfy awards of common stock | — | (25,168 | ) | — | — | (25,168 | ) | — | (25,168 | ) | |||||||||||||||||
Excess tax (shortfall) from stock-based payment arrangements | — | (473 | ) | — | — | (473 | ) | — | (473 | ) | |||||||||||||||||
Stock based compensation expense | — | 3,585 | — | — | 3,585 | — | 3,585 | ||||||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | — | (15,630 | ) | (15,630 | ) | ||||||||||||||||||
Net earnings excluding subsidiary preferred stock dividends | — | — | — | 106,075 | 106,075 | 14,050 | 120,125 | ||||||||||||||||||||
Subsidiary preferred stock dividends | — | — | — | (528 | ) | (528 | ) | — | (528 | ) | |||||||||||||||||
Total other comprehensive income | — | — | (14,774 | ) | — | (14,774 | ) | — | (14,774 | ) | |||||||||||||||||
Dividends declared on common stock | — | — | — | (46,199 | ) | (46,199 | ) | — | (46,199 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 1,182,819 | $ | (81,630 | ) | $ | 506,998 | $ | 1,608,187 | $ | 80,843 | $ | 1,689,030 |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Electric Operating Revenues | $ | 1,092,264 | $ | 1,057,289 | $ | 1,017,128 | |||||
Operating Expenses: | |||||||||||
Cost of energy | 353,649 | 362,237 | 352,270 | ||||||||
Administrative and general | 169,285 | 157,217 | 153,585 | ||||||||
Energy production costs | 185,403 | 180,802 | 195,917 | ||||||||
Regulatory disallowances | — | 17,479 | — | ||||||||
Depreciation and amortization | 97,291 | 94,787 | 92,281 | ||||||||
Transmission and distribution costs | 46,039 | 45,768 | 43,059 | ||||||||
Taxes other than income taxes | 34,715 | 37,556 | 31,894 | ||||||||
Total operating expenses | 886,382 | 895,846 | 869,006 | ||||||||
Operating income | 205,882 | 161,443 | 148,122 | ||||||||
Other Income and Deductions: | |||||||||||
Interest income | 13,243 | 15,562 | 18,854 | ||||||||
Gains on investments held by NDT | 13,015 | 8,985 | 4,868 | ||||||||
Other income | 8,126 | 2,220 | 12,794 | ||||||||
Other deductions | (7,851 | ) | (6,896 | ) | (4,950 | ) | |||||
Net other income (deductions) | 26,533 | 19,871 | 31,566 | ||||||||
Interest Charges | 76,101 | 75,349 | 72,400 | ||||||||
Earnings before Income Taxes | 156,314 | 105,965 | 107,288 | ||||||||
Income Taxes | 50,713 | 37,427 | 36,427 | ||||||||
Net Earnings | 105,601 | 68,538 | 70,861 | ||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (14,050 | ) | (14,047 | ) | (13,563 | ) | |||||
Net Earnings Attributable to PNM | 91,551 | 54,491 | 57,298 | ||||||||
Preferred Stock Dividends Requirements | (528 | ) | (528 | ) | (528 | ) | |||||
Net Earnings Available for PNM Common Stock | $ | 91,023 | $ | 53,963 | $ | 56,770 |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Year ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Net Earnings | $ | 105,601 | $ | 68,538 | $ | 70,861 | |||||
Other Comprehensive Income (Loss): | |||||||||||
Unrealized Gain (Loss) on Investment Securities: | |||||||||||
Unrealized holding gains arising during the period, net of income tax (expense) benefit of $(15,262), $(13,577), and $(6,643) | 23,286 | 20,718 | 10,136 | ||||||||
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $14,755, $13,956, and $3,070 | (22,514 | ) | (21,295 | ) | (4,684 | ) | |||||
Pension Liability Adjustment: | |||||||||||
Experience gain (loss), net of income tax (expense) benefit of $11,910, $1,334 and $6,289 | (18,174 | ) | (2,035 | ) | (9,597 | ) | |||||
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax (expense) of $(1,825), $(1,694) and $(1,218) | 2,786 | 2,584 | 1,859 | ||||||||
Fair Value Adjustment for Designated Cash Flow Hedges: | |||||||||||
Change in fair market value, net of income tax (expense) of $0, $0, and $(3,406) | — | — | 5,198 | ||||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $0, $(11), and $11,725 | — | 16 | (17,891 | ) | |||||||
Total Other Comprehensive Income (Loss) | (14,616 | ) | (12 | ) | (14,979 | ) | |||||
Comprehensive Income | 90,985 | 68,526 | 55,882 | ||||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (14,050 | ) | (14,047 | ) | (13,563 | ) | |||||
Comprehensive Income Attributable to PNM | $ | 76,935 | $ | 54,479 | $ | 42,319 |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net earnings | $ | 105,601 | $ | 68,538 | $ | 70,861 | |||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 129,514 | 123,216 | 117,619 | ||||||||
PVNGS firm-sales contracts revenue | — | (2,558 | ) | (58,289 | ) | ||||||
Deferred income tax expense | 65,479 | 90,567 | 113,680 | ||||||||
Net unrealized (gains) losses on derivatives | (1,598 | ) | (3,822 | ) | 5,693 | ||||||
Realized (gains) on investments held by NDT | (13,015 | ) | (8,985 | ) | (4,868 | ) | |||||
Regulatory disallowances | — | 17,479 | — | ||||||||
Other, net | (120 | ) | 4,216 | 882 | |||||||
Changes in certain assets and liabilities: | |||||||||||
Accounts receivable and unbilled revenues | (4,756 | ) | (23,487 | ) | 8,145 | ||||||
Materials, supplies, and fuel stock | (5,268 | ) | (2,067 | ) | (1,665 | ) | |||||
Other current assets | (3,014 | ) | (14,916 | ) | (24,434 | ) | |||||
Other assets | (27,338 | ) | (795 | ) | 21,569 | ||||||
Accounts payable | 11,028 | 12,524 | (5,542 | ) | |||||||
Accrued interest and taxes | 47,666 | (45,579 | ) | (15,992 | ) | ||||||
Other current liabilities | (2,539 | ) | 15,216 | (27,914 | ) | ||||||
Proceeds from governmental grants | 21,567 | 2,103 | — | ||||||||
Other liabilities | (54,787 | ) | (18,612 | ) | (50,617 | ) | |||||
Net cash flows from operating activities | 268,420 | 213,038 | 149,128 | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Utility plant additions | (196,800 | ) | (251,345 | ) | (226,766 | ) | |||||
Proceeds from sales of investments held by NDT | 167,330 | 145,286 | 79,853 | ||||||||
Purchases of investments held by NDT | (173,158 | ) | (149,185 | ) | (85,847 | ) | |||||
Return of principal on PVNGS lessor notes | 23,455 | 32,274 | 29,851 | ||||||||
Other, net | (1,184 | ) | 1,782 | 2,319 | |||||||
Net cash flows from investing activities | (180,357 | ) | (221,188 | ) | (200,590 | ) |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Financing Activities: | |||||||||||
Short-term borrowings (repayments), net | (44,900 | ) | (124,000 | ) | 72,000 | ||||||
Long-term borrowings | 20,000 | 160,000 | 403,845 | ||||||||
Repayment of long-term debt | (20,000 | ) | — | (403,845 | ) | ||||||
Payments received on PVNGS firm-sales contracts | — | 2,558 | 30,476 | ||||||||
Equity contribution from parent | — | 43,000 | — | ||||||||
Valencia’s transactions with its owner | (15,630 | ) | (16,801 | ) | (17,745 | ) | |||||
Dividends paid | (34,961 | ) | (47,862 | ) | (28,524 | ) | |||||
Proceeds from transmission interconnection arrangements | 983 | 1,246 | 8,515 | ||||||||
Repayment of transmission interconnection arrangements | (1,753 | ) | (4,637 | ) | — | ||||||
Other, net | (151 | ) | (3,383 | ) | (4,297 | ) | |||||
Net cash flows from financing activities | (96,412 | ) | 10,121 | 60,425 | |||||||
Change in Cash and Cash Equivalents | (8,349 | ) | 1,971 | 8,963 | |||||||
Cash and Cash Equivalents at Beginning of Year | 12,307 | 10,336 | 1,373 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 3,958 | $ | 12,307 | $ | 10,336 | |||||
Supplemental Cash Flow Disclosures: | |||||||||||
Interest paid, net of amounts capitalized | $ | 73,036 | $ | 69,995 | $ | 72,392 | |||||
Income taxes paid (refunded), net | $ | (63,113 | ) | $ | (1,541 | ) | $ | (59,298 | ) |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 3,958 | $ | 12,307 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,751 and $1,778 | 69,876 | 68,661 | |||||
Unbilled revenues | 49,085 | 48,928 | |||||
Other receivables | 50,975 | 65,465 | |||||
Affiliate receivables | 9,050 | 8,912 | |||||
Materials, supplies, and fuel stock | 56,790 | 51,521 | |||||
Regulatory assets | 36,490 | 44,480 | |||||
Commodity derivative instruments | 3,785 | 3,713 | |||||
Income taxes receivable | 80,223 | 128,858 | |||||
Other current assets | 27,457 | 26,776 | |||||
Total current assets | 387,689 | 459,621 | |||||
Other Property and Investments: | |||||||
Investment in PVNGS lessor notes | 54,325 | 79,049 | |||||
Investments held by NDT | 188,971 | 168,851 | |||||
Other investments | 4,034 | 2,900 | |||||
Non-utility property | 976 | 976 | |||||
Total other property and investments | 248,306 | 251,776 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 4,133,532 | 4,009,873 | |||||
Less accumulated depreciation and amortization | 1,355,240 | 1,305,754 | |||||
2,778,292 | 2,704,119 | ||||||
Construction work in progress | 102,329 | 116,030 | |||||
Nuclear fuel, net of accumulated amortization of $42,644 and $36,411 | 81,627 | 80,067 | |||||
Net utility plant | 2,962,248 | 2,900,216 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 431,956 | 352,387 | |||||
Goodwill | 51,632 | 51,632 | |||||
Commodity derivative instruments | 352 | — | |||||
Other deferred charges | 81,724 | 79,655 | |||||
Total deferred charges and other assets | 565,664 | 483,674 | |||||
$ | 4,163,907 | $ | 4,095,287 |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 21,100 | $ | 66,000 | |||
Accounts payable | 73,914 | 82,619 | |||||
Affiliate payables | 25,340 | 14,592 | |||||
Customer deposits | 18,176 | 15,971 | |||||
Accrued interest and taxes | 30,320 | 32,111 | |||||
Regulatory liabilities | 15,172 | 125 | |||||
Commodity derivative instruments | 1,000 | 1,632 | |||||
Dividends declared | 132 | 132 | |||||
Current portion of accumulated deferred income taxes | 3,447 | 16,562 | |||||
Other current liabilities | 54,150 | 60,819 | |||||
Total current liabilities | 242,751 | 290,563 | |||||
Long-term Debt | 1,215,579 | 1,215,540 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 573,881 | 504,419 | |||||
Accumulated deferred investment tax credits | 14,242 | 15,771 | |||||
Regulatory liabilities | 379,841 | 373,703 | |||||
Asset retirement obligations | 85,042 | 78,425 | |||||
Accrued pension liability and postretirement benefit cost | 208,618 | 213,688 | |||||
Commodity derivative instruments | 1,933 | 2,437 | |||||
Other deferred credits | 95,585 | 94,700 | |||||
Total deferred credits and liabilities | 1,359,142 | 1,283,143 | |||||
Total liabilities | 2,817,472 | 2,789,246 | |||||
Commitments and Contingencies (See Note 16) | |||||||
Cumulative Preferred Stock | |||||||
without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNM common stockholder’s equity: | |||||||
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares) | 1,061,776 | 1,061,776 | |||||
Accumulated other comprehensive income (loss), net of income tax | (81,414 | ) | (66,798 | ) | |||
Retained earnings | 273,701 | 217,111 | |||||
Total PNM common stockholder’s equity | 1,254,063 | 1,212,089 | |||||
Non-controlling interest in Valencia | 80,843 | 82,423 | |||||
Total equity | 1,334,906 | 1,294,512 | |||||
$ | 4,163,907 | $ | 4,095,287 |
PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||
Attributable to PNM | |||||||||||||||||||||||
Common Stock | AOCI | Retained Earnings | Total PNM Common Stockholder’s Equity | Non- controlling Interest in Valencia | Total Equity | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at December 31, 2009 | $ | 1,018,776 | $ | (51,807 | ) | $ | 181,706 | $ | 1,148,675 | $ | 89,359 | $ | 1,238,034 | ||||||||||
Valencia’s transactions with its owner | — | — | — | — | (17,745 | ) | (17,745 | ) | |||||||||||||||
Net earnings | — | — | 57,298 | 57,298 | 13,563 | 70,861 | |||||||||||||||||
Total other comprehensive income (loss) | — | (14,979 | ) | — | (14,979 | ) | — | (14,979 | ) | ||||||||||||||
Dividends declared on preferred stock | — | — | (528 | ) | (528 | ) | — | (528 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (67,117 | ) | (67,117 | ) | — | (67,117 | ) | ||||||||||||||
Balance at December 31, 2010 | 1,018,776 | (66,786 | ) | 171,359 | 1,123,349 | 85,177 | 1,208,526 | ||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | (16,801 | ) | (16,801 | ) | |||||||||||||||
Net earnings | — | — | 54,491 | 54,491 | 14,047 | 68,538 | |||||||||||||||||
Total other comprehensive income (loss) | — | (12 | ) | — | (12 | ) | — | (12 | ) | ||||||||||||||
Equity contributions from parent | 43,000 | — | — | 43,000 | — | 43,000 | |||||||||||||||||
Dividends declared on preferred stock | — | — | (528 | ) | (528 | ) | — | (528 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (8,211 | ) | (8,211 | ) | — | (8,211 | ) | ||||||||||||||
Balance at December 31, 2011 | 1,061,776 | (66,798 | ) | 217,111 | 1,212,089 | 82,423 | 1,294,512 | ||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | (15,630 | ) | (15,630 | ) | |||||||||||||||
Net earnings | — | — | 91,551 | 91,551 | 14,050 | 105,601 | |||||||||||||||||
Total other comprehensive income (loss) | — | (14,616 | ) | — | (14,616 | ) | — | (14,616 | ) | ||||||||||||||
Dividends declared on preferred stock | — | — | (528 | ) | (528 | ) | — | (528 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (34,433 | ) | (34,433 | ) | — | (34,433 | ) | ||||||||||||||
Balance at December 31, 2012 | $ | 1,061,776 | $ | (81,414 | ) | $ | 273,701 | $ | 1,254,063 | $ | 80,843 | $ | 1,334,906 |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Electric Operating Revenues | |||||||||||
Non-affiliates | $ | 250,140 | $ | 204,045 | $ | 173,504 | |||||
Affiliate | — | 33,813 | 39,084 | ||||||||
Total electric operating revenues | 250,140 | 237,858 | 212,588 | ||||||||
Operating Expenses: | |||||||||||
Cost of energy | 46,201 | 41,166 | 37,064 | ||||||||
Administrative and general | 40,775 | 39,485 | 37,070 | ||||||||
Regulatory disallowances | — | 3,923 | — | ||||||||
Depreciation and amortization | 49,340 | 44,616 | 41,726 | ||||||||
Transmission and distribution costs | 25,086 | 23,915 | 20,357 | ||||||||
Taxes other than income taxes | 21,218 | 20,911 | 19,960 | ||||||||
Total operating expenses | 182,620 | 174,016 | 156,177 | ||||||||
Operating income | 67,520 | 63,842 | 56,411 | ||||||||
Other Income and Deductions: | |||||||||||
Interest income | 1 | 2 | 1 | ||||||||
Other income | 4,698 | 1,753 | 1,275 | ||||||||
Other deductions | (1,959 | ) | (173 | ) | (504 | ) | |||||
Net other income (deductions) | 2,740 | 1,582 | 772 | ||||||||
Interest Charges | 28,161 | 29,286 | 31,157 | ||||||||
Earnings Before Income Taxes | 42,099 | 36,138 | 26,026 | ||||||||
Income Taxes | 15,352 | 13,881 | 10,044 | ||||||||
Net Earnings | $ | 26,747 | $ | 22,257 | $ | 15,982 |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Net Earnings | $ | 26,747 | $ | 22,257 | $ | 15,982 | |||||
Other Comprehensive Income (Loss): | |||||||||||
Pension Liability Adjustment: | |||||||||||
Experience gain (loss), net of income tax (expense) benefit of $0, $(147) and $41 | — | 267 | (74 | ) | |||||||
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax (expense) benefit of $0, $(5) and $1 | — | 8 | (2 | ) | |||||||
Fair Value Adjustment for Designated Cash Flow Hedge: | |||||||||||
Change in fair value, net of income tax (expense) of $153, $430, and $1,139 | (275 | ) | (777 | ) | (2,056 | ) | |||||
Reclassification adjustment for losses included in net earnings, net of income tax expense (benefit) of $(65), $(1,068), and $(399) | 117 | 1,929 | 721 | ||||||||
Total Other Comprehensive Income (Loss) | (158 | ) | 1,427 | (1,411 | ) | ||||||
Comprehensive Income | $ | 26,589 | $ | 23,684 | $ | 14,571 |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net earnings | $ | 26,747 | $ | 22,257 | $ | 15,982 | |||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 54,396 | 48,572 | 45,703 | ||||||||
Regulatory disallowances | — | 3,923 | — | ||||||||
Deferred income tax expense | 4,378 | 15,478 | 4,962 | ||||||||
Other, net | (889 | ) | (532 | ) | 23 | ||||||
Changes in certain assets and liabilities: | |||||||||||
Accounts receivable and unbilled revenues | 2,208 | (9,130 | ) | 536 | |||||||
Materials and supplies | (143 | ) | 77 | (195 | ) | ||||||
Other current assets | (3,515 | ) | 4,777 | (3,011 | ) | ||||||
Other assets | (3,145 | ) | (3,247 | ) | (2,937 | ) | |||||
Accounts payable | (666 | ) | 2,225 | (706 | ) | ||||||
Accrued interest and taxes | 9,825 | (2,520 | ) | 17,442 | |||||||
Other current liabilities | (2,106 | ) | 513 | (24 | ) | ||||||
Other liabilities | 4,311 | (611 | ) | (581 | ) | ||||||
Net cash flows from operating activities | 91,401 | 81,782 | 77,194 | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Utility plant additions | (92,973 | ) | (67,407 | ) | (41,018 | ) | |||||
Net cash flows from investing activities | (92,973 | ) | (67,407 | ) | (41,018 | ) |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flow From Financing Activities: | |||||||||||
Short-term borrowings (repayments) – affiliate, net | 27,600 | (500 | ) | (22,300 | ) | ||||||
Long-term borrowings | — | 50,000 | — | ||||||||
Repayment of long-term debt | — | (50,000 | ) | — | |||||||
Dividends paid | (26,028 | ) | (13,714 | ) | (13,079 | ) | |||||
Debt issuance costs and other | — | (161 | ) | (934 | ) | ||||||
Net cash flows from financing activities | 1,572 | (14,375 | ) | (36,313 | ) | ||||||
Change in Cash and Cash Equivalents | — | — | (137 | ) | |||||||
Cash and Cash Equivalents at Beginning of Year | 1 | 1 | 138 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 1 | $ | 1 | $ | 1 | |||||
Supplemental Cash Flow Disclosures: | |||||||||||
Interest paid, net of amounts capitalized | $ | 25,360 | $ | 27,236 | $ | 27,696 | |||||
Income taxes paid, (refunded) net | $ | 1,848 | $ | 1,466 | $ | (11,705 | ) |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1 | $ | 1 | |||
Accounts receivable | 17,217 | 19,133 | |||||
Unbilled revenues | 8,181 | 8,473 | |||||
Other receivables | 2,359 | 847 | |||||
Materials and supplies | 2,853 | 2,710 | |||||
Regulatory assets | 2,630 | 513 | |||||
Current portion of accumulated deferred income taxes | 1,131 | 2,272 | |||||
Other current assets | 1,107 | 694 | |||||
Total current assets | 35,479 | 34,643 | |||||
Other Property and Investments: | |||||||
Other investments | 281 | 271 | |||||
Non-utility property | 2,240 | 2,240 | |||||
Total other property and investments | 2,521 | 2,511 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 1,009,108 | 947,327 | |||||
Less accumulated depreciation and amortization | 339,315 | 323,123 | |||||
669,793 | 624,204 | ||||||
Construction work in progress | 19,801 | 12,968 | |||||
Net utility plant | 689,594 | 637,172 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 123,621 | 129,768 | |||||
Goodwill | 226,665 | 226,665 | |||||
Other deferred charges | 8,349 | 6,686 | |||||
Total deferred charges and other assets | 358,635 | 363,119 | |||||
$ | 1,086,229 | $ | 1,037,445 |
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY OWNED SUBSIDIARY OF PNM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt – affiliate | $ | 28,300 | $ | 700 | |||
Accounts payable | 8,848 | 12,263 | |||||
Affiliate payables | 4,381 | 1,314 | |||||
Accrued interest and taxes | 30,491 | 20,666 | |||||
Other current liabilities | 8,854 | 9,480 | |||||
Total current liabilities | 80,874 | 44,423 | |||||
Long-term Debt | 311,589 | 310,963 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 163,710 | 159,197 | |||||
Regulatory liabilities | 43,619 | 44,395 | |||||
Asset retirement obligations | 732 | 699 | |||||
Accrued pension liability and postretirement benefit cost | 15,947 | 11,078 | |||||
Other deferred credits | 5,944 | 3,437 | |||||
Total deferred credits and other liabilities | 229,952 | 218,806 | |||||
Total liabilities | 622,415 | 574,192 | |||||
Commitments and Contingencies (See Note 16) | |||||||
Common Stockholder’s Equity: | |||||||
Common stock ($10 par value; 12,000,000 shares authorized; issued and outstanding 6,358 shares) | 64 | 64 | |||||
Paid-in-capital | 390,366 | 416,394 | |||||
Accumulated other comprehensive income (loss), net of income tax | (216 | ) | (58 | ) | |||
Retained earnings | 73,600 | 46,853 | |||||
Total common stockholder’s equity | 463,814 | 463,253 | |||||
$ | 1,086,229 | $ | 1,037,445 |
Common Stock | Paid-in Capital | AOCI | Retained Earnings | Total Common Stockholder’s Equity | |||||||||||||||
(In thousands) | |||||||||||||||||||
Balance at December 31, 2009 | $ | 64 | $ | 443,187 | $ | (74 | ) | $ | 8,614 | $ | 451,791 | ||||||||
Net earnings | — | — | — | 15,982 | 15,982 | ||||||||||||||
Total other comprehensive income (loss) | — | — | (1,411 | ) | — | (1,411 | ) | ||||||||||||
Dividends declared on common stock | — | (13,079 | ) | — | — | (13,079 | ) | ||||||||||||
Balance at December 31, 2010 | 64 | 430,108 | (1,485 | ) | 24,596 | 453,283 | |||||||||||||
Net earnings | — | — | — | 22,257 | 22,257 | ||||||||||||||
Total other comprehensive income | — | — | 1,427 | — | 1,427 | ||||||||||||||
Dividends declared on common stock | — | (13,714 | ) | — | — | (13,714 | ) | ||||||||||||
Balance at December 31, 2011 | 64 | 416,394 | (58 | ) | 46,853 | 463,253 | |||||||||||||
Net earnings | — | — | — | 26,747 | 26,747 | ||||||||||||||
Total other comprehensive income (loss) | — | — | (158 | ) | — | (158 | ) | ||||||||||||
Dividends declared on common stock | — | (26,028 | ) | — | — | (26,028 | ) | ||||||||||||
Balance at December 31, 2012 | $ | 64 | $ | 390,366 | $ | (216 | ) | $ | 73,600 | $ | 463,814 |
(1) | Summary of the Business and Significant Accounting Policies |
PNMR | PNM | TNMP | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Coal | $ | 19,231 | $ | 17,175 | $ | 19,231 | $ | 17,175 | $ | — | $ | — | |||||||||||
Materials and supplies | 40,412 | 37,056 | 37,559 | 34,346 | 2,853 | 2,710 | |||||||||||||||||
$ | 59,643 | $ | 54,231 | $ | 56,790 | $ | 51,521 | $ | 2,853 | $ | 2,710 |
Year ended December 31 | ||||||||
2012 | 2011 | 2010 | ||||||
PNM | ||||||||
Electric plant | 2.25 | % | 2.24 | % | 2.24 | % | ||
Common, intangible, and general plant | 5.35 | % | 6.03 | % | 5.63 | % | ||
TNMP | 3.56 | % | 3.41 | % | 3.39 | % |
(2) | Segment Information |
2012 | PNM | TNMP | Corporate and Other | Consolidated | |||||||||||
(In thousands) | |||||||||||||||
Electric operating revenues | $ | 1,092,264 | $ | 250,140 | $ | (1 | ) | $ | 1,342,403 | ||||||
Cost of energy | 353,649 | 46,201 | — | 399,850 | |||||||||||
Margin | 738,615 | 203,939 | (1 | ) | 942,553 | ||||||||||
Other operating expenses | 435,442 | 87,079 | (17,862 | ) | 504,659 | ||||||||||
Depreciation and amortization | 97,291 | 49,340 | 17,542 | 164,173 | |||||||||||
Operating income | 205,882 | 67,520 | 319 | 273,721 | |||||||||||
Interest income | 13,243 | 1 | (172 | ) | 13,072 | ||||||||||
Gain on sale of First Choice | — | — | 1,012 | 1,012 | |||||||||||
Other income (deductions) | 13,290 | 2,739 | (7,954 | ) | 8,075 | ||||||||||
Net interest charges | (76,101 | ) | (28,161 | ) | (16,583 | ) | (120,845 | ) | |||||||
Earnings (loss) before income taxes | 156,314 | 42,099 | (23,378 | ) | 175,035 | ||||||||||
Income taxes | 50,713 | 15,352 | (11,155 | ) | 54,910 | ||||||||||
Earnings (loss) from continuing operations | 105,601 | 26,747 | (12,223 | ) | 120,125 | ||||||||||
Valencia non-controlling interest | (14,050 | ) | — | — | (14,050 | ) | |||||||||
Subsidiary preferred stock dividends | (528 | ) | — | — | (528 | ) | |||||||||
Segment earnings (loss) from continuing operations attributable to PNMR | $ | 91,023 | $ | 26,747 | $ | (12,223 | ) | $ | 105,547 | ||||||
Gross property additions | $ | 196,800 | $ | 92,973 | $ | 19,136 | $ | 308,909 | |||||||
At December 31, 2012: | |||||||||||||||
Total Assets | $ | 4,163,907 | $ | 1,086,229 | $ | 122,447 | $ | 5,372,583 | |||||||
Goodwill | $ | 51,632 | $ | 226,665 | $ | — | $ | 278,297 | |||||||
Additions to utility plant and non-utility plant included in accounts payable | $ | 7,083 | $ | 1,987 | $ | 6,602 | $ | 15,672 |
2011 | PNM | TNMP | First Choice | Corporate and Other | Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Operating revenues | $ | 1,057,289 | $ | 204,045 | $ | 439,450 | $ | (165 | ) | $ | 1,700,619 | ||||||||
Intersegment revenues | — | 33,813 | — | (33,813 | ) | — | |||||||||||||
Total revenues | 1,057,289 | 237,858 | 439,450 | (33,978 | ) | 1,700,619 | |||||||||||||
Cost of energy | 362,237 | 41,166 | 323,331 | (33,812 | ) | 692,922 | |||||||||||||
Margin | 695,052 | 196,692 | 116,119 | (166 | ) | 1,007,697 | |||||||||||||
Other operating expenses | 438,822 | 88,234 | 75,966 | (9,671 | ) | 593,351 | |||||||||||||
Depreciation and amortization | 94,787 | 44,616 | 1,098 | 16,546 | 157,047 | ||||||||||||||
Operating income (loss) | 161,443 | 63,842 | 39,055 | (7,041 | ) | 257,299 | |||||||||||||
Interest income | 15,562 | 2 | 64 | (113 | ) | 15,515 | |||||||||||||
Gain on sale of First Choice | — | — | — | 174,925 | 174,925 | ||||||||||||||
Other income (deductions) | 4,309 | 1,580 | (650 | ) | (15,660 | ) | (10,421 | ) | |||||||||||
Net interest charges | (75,349 | ) | (29,286 | ) | (581 | ) | (19,633 | ) | (124,849 | ) | |||||||||
Earnings (loss) before income taxes | 105,965 | 36,138 | 37,888 | 132,478 | 312,469 | ||||||||||||||
Income taxes (benefit) | 37,427 | 13,881 | 13,772 | 56,455 | 121,535 | ||||||||||||||
Earnings (loss) from continuing operations | 68,538 | 22,257 | 24,116 | 76,023 | 190,934 | ||||||||||||||
Valencia non-controlling interest | (14,047 | ) | — | — | — | (14,047 | ) | ||||||||||||
Subsidiary preferred stock dividends | (528 | ) | — | — | — | (528 | ) | ||||||||||||
Segment earnings (loss) from continuing operations attributable to PNMR | $ | 53,963 | $ | 22,257 | $ | 24,116 | $ | 76,023 | $ | 176,359 | |||||||||
Gross property additions | $ | 251,345 | $ | 67,407 | $ | 2,089 | $ | 6,090 | $ | 326,931 | |||||||||
At December 31, 2011: | |||||||||||||||||||
Total Assets | $ | 4,095,287 | $ | 1,037,445 | $ | — | $ | 71,881 | $ | 5,204,613 | |||||||||
Goodwill | $ | 51,632 | $ | 226,665 | $ | — | $ | — | $ | 278,297 | |||||||||
Additions to utility plant and non-utility plant included in accounts payable | $ | 26,815 | $ | 4,736 | $ | — | $ | 2,104 | $ | 33,655 |
2010 | PNM | TNMP | First Choice | Corporate and Other | Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Operating revenues | $ | 1,017,128 | $ | 173,504 | $ | 483,203 | $ | (318 | ) | $ | 1,673,517 | ||||||||
Intersegment revenues | — | 39,084 | — | (39,084 | ) | — | |||||||||||||
Total revenues | 1,017,128 | 212,588 | 483,203 | (39,402 | ) | 1,673,517 | |||||||||||||
Cost of energy | 352,270 | 37,064 | 350,476 | (39,083 | ) | 700,727 | |||||||||||||
Margin | 664,858 | 175,524 | 132,727 | (319 | ) | 972,790 | |||||||||||||
Other operating expenses | 424,455 | 77,387 | 92,077 | (12,285 | ) | 581,634 | |||||||||||||
Depreciation and amortization | 92,281 | 41,726 | 864 | 16,833 | 151,704 | ||||||||||||||
Operating income (loss) | 148,122 | 56,411 | 39,786 | (4,867 | ) | 239,452 | |||||||||||||
Interest income | 18,854 | 1 | 18 | 23 | 18,896 | ||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (203,399 | ) | (203,399 | ) | ||||||||||||
Other income (deductions) | 12,712 | 771 | (411 | ) | (6,027 | ) | 7,045 | ||||||||||||
Net interest charges | (72,400 | ) | (31,157 | ) | (1,268 | ) | (20,548 | ) | (125,373 | ) | |||||||||
Earnings (loss) before income taxes | 107,288 | 26,026 | 38,125 | (234,818 | ) | (63,379 | ) | ||||||||||||
Income taxes (benefit) | 36,427 | 10,044 | 14,064 | (92,790 | ) | (32,255 | ) | ||||||||||||
Earnings (loss) from continuing operations | 70,861 | 15,982 | 24,061 | (142,028 | ) | (31,124 | ) | ||||||||||||
Valencia non-controlling interest | (13,563 | ) | — | — | — | (13,563 | ) | ||||||||||||
Subsidiary preferred stock dividends | (528 | ) | — | — | — | (528 | ) | ||||||||||||
Segment earnings (loss) from continuing operations attributable to PNMR | $ | 56,770 | $ | 15,982 | $ | 24,061 | $ | (142,028 | ) | $ | (45,215 | ) | |||||||
Gross property additions | $ | 226,766 | $ | 41,018 | $ | 3,046 | $ | 10,658 | $ | 281,488 | |||||||||
At December 31, 2010: | |||||||||||||||||||
Total Assets | $ | 3,875,573 | $ | 1,010,957 | $ | 218,411 | $ | 120,142 | $ | 5,225,083 | |||||||||
Goodwill | $ | 51,632 | $ | 226,665 | $ | 43,013 | $ | — | $ | 321,310 |
(3) | Sale of First Choice |
(4) | Regulatory Assets and Liabilities |
December 31, | |||||||
2012 | 2011 | ||||||
Assets: | (In thousands) | ||||||
Current: | |||||||
Fuel and purchased power adjustment clause | $ | 36,266 | $ | 41,254 | |||
Other | 224 | 3,226 | |||||
36,490 | 44,480 | ||||||
Non-Current: | |||||||
Coal mine reclamation costs | 46,065 | 51,985 | |||||
Deferred income taxes | 54,781 | 51,436 | |||||
Loss on reacquired debt | 29,702 | 31,276 | |||||
Pension and OPEB | 254,351 | 208,033 | |||||
Fuel and purchased power adjustment clause | 18,619 | — | |||||
Renewable energy costs | 18,768 | 9,550 | |||||
Other | 9,670 | 107 | |||||
431,956 | 352,387 | ||||||
Total regulatory assets | $ | 468,446 | $ | 396,867 | |||
Liabilities: | |||||||
Current: | |||||||
Other | $ | (15,172 | ) | $ | (125 | ) | |
Non-Current: | |||||||
Cost of removal | $ | (257,396 | ) | $ | (250,778 | ) | |
Deferred income taxes | (49,723 | ) | (45,323 | ) | |||
Asset retirement obligations | (39,280 | ) | (39,979 | ) | |||
Renewable energy tax benefits | (26,988 | ) | (27,958 | ) | |||
Other | (6,454 | ) | (9,665 | ) | |||
(379,841 | ) | (373,703 | ) | ||||
Total regulatory liabilities | $ | (395,013 | ) | $ | (373,828 | ) |
December 31, | |||||||
2012 | 2011 | ||||||
Assets: | (In thousands) | ||||||
Current: | |||||||
Other | $ | 2,630 | $ | 513 | |||
Non-Current: | |||||||
Stranded costs | 71,240 | 81,256 | |||||
Deferred income taxes | 11,179 | 11,491 | |||||
Pension and OPEB | 28,307 | 18,818 | |||||
Loss on reacquired debt | 1,711 | 2,852 | |||||
Hurricane recovery costs | 4,572 | 9,210 | |||||
Other | 6,612 | 6,141 | |||||
123,621 | 129,768 | ||||||
Total regulatory assets | $ | 126,251 | $ | 130,281 | |||
Liabilities: | |||||||
Non-Current: | |||||||
Cost of removal | $ | (31,115 | ) | $ | (32,786 | ) | |
Deferred income taxes | (5,203 | ) | (5,843 | ) | |||
Other | (7,301 | ) | (5,766 | ) | |||
Total regulatory liabilities | $ | (43,619 | ) | $ | (44,395 | ) |
(5) | Stockholders’ Equity |
(6) | Financing |
December 31, | ||||||||
Short-term Debt | 2012 | 2011 | ||||||
(In thousands) | ||||||||
PNM Revolving Credit Facility | $ | 21,100 | $ | 66,000 | ||||
TNMP Revolving Credit Facility | — | — | ||||||
PNMR | ||||||||
Revolving Credit Facility | 37,600 | 16,700 | ||||||
PNMR Term Loan Agreement | 100,000 | N/A | ||||||
Local line of credit | * | — | ||||||
$ | 158,700 | $ | 82,700 |
December 31, | ||||||||
Long-term Debt | 2012 | 2011 | ||||||
(In thousands) | ||||||||
PNM Debt | ||||||||
Senior Unsecured Notes, Pollution Control Revenue Bonds: | ||||||||
4.875% due 2033 | $ | 146,000 | $ | 146,000 | ||||
5.15% due 2037 | — | 20,000 | ||||||
6.25% due 2038 | 36,000 | 36,000 | ||||||
4.75% due 2040, mandatory tender at June 1, 2017 | 37,000 | 37,000 | ||||||
5.20% due 2040, mandatory tender at June 1, 2020 | 40,045 | 40,045 | ||||||
5.90% due 2040 | 255,000 | 255,000 | ||||||
6.25% due 2040 | 11,500 | 11,500 | ||||||
2.54% due 2042, mandatory tender at June 1, 2017 | 20,000 | — | ||||||
4.00% due 2043, mandatory tender at June 1, 2015 | 39,300 | 39,300 | ||||||
5.20% due 2043, mandatory tender at June 1, 2020 | 21,000 | 21,000 | ||||||
Senior Unsecured Notes: | ||||||||
7.95% due 2018 | 350,000 | 350,000 | ||||||
7.50% due 2018 | 100,025 | 100,025 | ||||||
5.35% due 2021 | 160,000 | 160,000 | ||||||
Other, including unamortized discounts | (291 | ) | (330 | ) | ||||
1,215,579 | 1,215,540 | |||||||
Less current maturities | — | — | ||||||
1,215,579 | 1,215,540 | |||||||
TNMP Debt | ||||||||
First Mortgage Bonds: | ||||||||
2011 Term Loan Agreement, due 2014 | 50,000 | 50,000 | ||||||
9.50% due 2019, Series 2009A | 265,500 | 265,500 | ||||||
Other, including unamortized discounts | (3,911 | ) | (4,537 | ) | ||||
311,589 | 310,963 | |||||||
Less current maturities | — | — | ||||||
311,589 | 310,963 | |||||||
PNMR Debt | ||||||||
Senior unsecured notes, 9.25% due 2015 | 142,592 | 142,592 | ||||||
Other | 2,530 | 4,918 | ||||||
145,122 | 147,510 | |||||||
Less current maturities | 2,530 | 2,387 | ||||||
142,592 | 145,123 | |||||||
Total Consolidated PNMR Debt | 1,672,290 | 1,674,013 | ||||||
Less current maturities | 2,530 | 2,387 | ||||||
$ | 1,669,760 | $ | 1,671,626 |
PNMR | PNM | TNMP | PNMR Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
2013 | $ | 2,530 | $ | — | $ | — | $ | 2,530 | |||||||
2014 | — | — | 50,000 | 50,000 | |||||||||||
2015 | 142,592 | 39,300 | — | 181,892 | |||||||||||
2016 | — | — | — | — | |||||||||||
2017 | — | 57,000 | — | 57,000 | |||||||||||
Thereafter | — | 1,119,570 | 265,500 | 1,385,070 | |||||||||||
Total | $ | 145,122 | $ | 1,215,870 | $ | 315,500 | $ | 1,676,492 |
(7) | Lease Commitments |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
2012 | $ | 84,794 | $ | 78,483 | $ | 2,871 | |||||
2011 | $ | 86,323 | $ | 78,422 | $ | 3,606 | |||||
2010 | $ | 79,491 | $ | 71,209 | $ | 3,737 |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
2013 | $ | 44,040 | $ | 40,217 | $ | 481 | |||||
2014 | 52,136 | 49,079 | 55 | ||||||||
2015 | 31,389 | 29,601 | — | ||||||||
2016 | 15,790 | 15,790 | — | ||||||||
2017 | 12,519 | 12,519 | — | ||||||||
Later years | 94,883 | 94,883 | — | ||||||||
250,757 | 242,089 | 536 | |||||||||
Future payments under non-cancelable subleases | 233 | — | — | ||||||||
Net minimum lease payments | $ | 250,524 | $ | 242,089 | $ | 536 |
(8) | Fair Value of Derivative and Other Financial Instruments |
Economic Hedges | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
PNM and PNMR | |||||||
Current assets | $ | 3,785 | $ | 3,713 | |||
Deferred charges | 352 | — | |||||
4,137 | 3,713 | ||||||
Current liabilities | (1,000 | ) | (1,632 | ) | |||
Long-term liabilities | (1,933 | ) | (2,437 | ) | |||
(2,933 | ) | (4,069 | ) | ||||
Net | $ | 1,204 | $ | (356 | ) |
Economic Hedges | Qualified Cash Flow Hedges | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
PNMR | |||||||||||||||
Electric operating revenues | $ | 6,168 | $ | 5,682 | $ | — | $ | — | |||||||
Cost of energy | (460 | ) | (2,201 | ) | — | (422 | ) | ||||||||
Total gain (loss) | $ | 5,708 | $ | 3,481 | $ | — | $ | (422 | ) | ||||||
Recognized in OCI | $ | — | $ | 422 | |||||||||||
PNM | |||||||||||||||
Electric operating revenues | $ | 6,168 | $ | 5,682 | $ | — | $ | — | |||||||
Cost of energy | (460 | ) | (1,058 | ) | — | — | |||||||||
Total gain (loss) | $ | 5,708 | $ | 4,624 | $ | — | $ | — | |||||||
Recognized in OCI | $ | — | $ | — |
Economic Hedges | |||||
MMBTU | MWh | ||||
December 31, 2012 | |||||
PNMR and PNM | 1,127,500 | (2,477,520 | ) | ||
December 31, 2011 | |||||
PNMR and PNM | 1,499,000 | (366,448 | ) |
Contingent Feature – Credit Rating Downgrade | Contractual Liability | Existing Cash Collateral | Net Exposure | |||||||||
(In thousands) | ||||||||||||
December 31, 2012 | ||||||||||||
PNMR and PNM | $ | 2,933 | $ | — | $ | 2,777 | ||||||
December 31, 2011 | ||||||||||||
PNMR and PNM | $ | 4,036 | $ | — | $ | 4,036 |
December 31, 2012 | December 31, 2011 | ||||||||||||||
Unrealized Gains | Fair Value | Unrealized Gains | Fair Value | ||||||||||||
PNMR and PNM | (In thousands) | ||||||||||||||
Equity securities: | |||||||||||||||
Domestic value | $ | 5,223 | $ | 30,044 | $ | 3,549 | $ | 25,143 | |||||||
Domestic growth | 15,212 | 51,650 | 16,714 | 52,187 | |||||||||||
International and other | 247 | 14,868 | 662 | 12,754 | |||||||||||
Fixed income securities: | |||||||||||||||
Municipals | 4,069 | 43,861 | 2,861 | 41,463 | |||||||||||
United States government | 1,305 | 32,592 | 1,353 | 25,367 | |||||||||||
Corporate and other | 1,100 | 14,868 | 742 | 9,171 | |||||||||||
Cash investments | — | 4,628 | — | 2,766 | |||||||||||
$ | 27,156 | $ | 192,511 | $ | 25,881 | $ | 168,851 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Proceeds from sales | $ | 167,330 | $ | 145,286 | $ | 79,853 | |||||
Gross realized gains | $ | 15,907 | $ | 17,493 | $ | 5,635 | |||||
Gross realized (losses) | $ | (8,170 | ) | $ | (6,223 | ) | $ | (3,704 | ) |
Fair Value | |||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||
PNMR and PNM | PNMR | PNM | |||||||||
(In thousands) | |||||||||||
Within 1 year | $ | 2,374 | $ | 3,695 | $ | — | |||||
After 1 year through 5 years | 29,342 | 85,520 | 84,198 | ||||||||
After 5 years through 10 years | 15,943 | — | — | ||||||||
After 10 years through 15 years | 8,700 | — | — | ||||||||
After 15 years through 20 years | 11,217 | — | — | ||||||||
After 20 years | 23,745 | — | — | ||||||||
$ | 91,321 | $ | 89,215 | $ | 84,198 |
GAAP Fair Value Hierarchy | |||||||||||
Total(1) | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
December 31, 2012 | (In thousands) | ||||||||||
PNMR and PNM | |||||||||||
Decommissioning and reclamation investments | |||||||||||
Cash and equivalents | $ | 4,628 | $ | 4,628 | $ | — | |||||
Equity securities: | |||||||||||
Domestic value | 30,044 | 30,044 | — | ||||||||
Domestic growth | 51,650 | 51,650 | — | ||||||||
International and other | 14,868 | 14,868 | — | ||||||||
Fixed income securities: | |||||||||||
United States government | 32,592 | 27,737 | 4,855 | ||||||||
Municipals | 43,861 | — | 43,861 | ||||||||
Corporate and other | 14,868 | — | 14,868 | ||||||||
Total | $ | 192,511 | $ | 128,927 | $ | 63,584 | |||||
Commodity derivative assets | $ | 4,137 | $ | — | $ | 4,137 | |||||
Commodity derivative liabilities | (2,933 | ) | — | (2,933 | ) | ||||||
Net | $ | 1,204 | $ | — | $ | 1,204 |
GAAP Fair Value Hierarchy | |||||||||||
Total(1) | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
December 31, 2011 | (In thousands) | ||||||||||
PNMR and PNM | |||||||||||
NDT investments | |||||||||||
Cash and equivalents | $ | 2,766 | $ | 2,766 | $ | — | |||||
Equity securities: | |||||||||||
Domestic value | 25,143 | 25,143 | — | ||||||||
Domestic growth | 52,187 | 52,187 | — | ||||||||
International and other | 12,754 | 12,754 | — | ||||||||
Fixed income securities: | |||||||||||
United States government | 25,367 | 21,409 | 3,958 | ||||||||
Municipals | 41,463 | — | 41,463 | ||||||||
Corporate and other | 9,171 | — | 9,171 | ||||||||
Total | $ | 168,851 | $ | 114,259 | $ | 54,592 | |||||
Commodity derivative assets | $ | 3,713 | $ | — | $ | 3,713 | |||||
Commodity derivative liabilities | (4,069 | ) | — | (4,069 | ) | ||||||
Net | $ | (356 | ) | $ | — | $ | (356 | ) |
(1) | The Level 1 and 2 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. There were no account reclassifications between commodity derivative assets and commodity derivative liabilities and there were no Level 3 fair value measurements at December 31, 2012 and 2011. |
PNMR | |||||||
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Balance at beginning of period | $ | — | $ | (822 | ) | ||
Total gains (losses) included in earnings | — | 1,020 | |||||
Purchases | — | 3,163 | |||||
Settlements | — | (1,578 | ) | ||||
Sale of First Choice | — | (1,783 | ) | ||||
Balance at end of period | $ | — | $ | — | |||
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 | $ | — | $ | — |
GAAP Fair Value Hierarchy (1) | |||||||||||||||||||
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
December 31, 2012 | (In thousands) | ||||||||||||||||||
PNMR | |||||||||||||||||||
Long-term debt | $ | 1,672,290 | $ | 1,969,362 | $ | — | $ | 1,966,725 | $ | 2,637 | |||||||||
Investment in PVNGS lessor notes | $ | 77,682 | $ | 84,198 | $ | — | $ | — | $ | 84,198 | |||||||||
Other investments | $ | 5,599 | $ | 6,965 | $ | 774 | $ | — | $ | 6,191 | |||||||||
PNM | |||||||||||||||||||
Long-term debt | $ | 1,215,579 | $ | 1,385,433 | $ | — | $ | 1,385,433 | $ | — | |||||||||
Investment in PVNGS lessor notes | $ | 77,682 | $ | 84,198 | $ | — | $ | — | $ | 84,198 | |||||||||
Other investments | $ | 494 | $ | 494 | $ | 494 | $ | — | $ | — | |||||||||
TNMP | |||||||||||||||||||
Long-term debt | $ | 311,589 | $ | 418,166 | $ | — | $ | 418,166 | $ | — | |||||||||
Other investments | $ | 281 | $ | 281 | $ | 281 | $ | — | $ | — | |||||||||
December 31, 2011 | |||||||||||||||||||
PNMR | |||||||||||||||||||
Long-term debt | $ | 1,674,013 | $ | 1,873,002 | |||||||||||||||
Investment in PVNGS lessor notes | $ | 107,094 | $ | 108,742 | |||||||||||||||
Other investments | $ | 12,207 | $ | 14,208 | |||||||||||||||
PNM | |||||||||||||||||||
Long-term debt | $ | 1,215,540 | $ | 1,294,846 | |||||||||||||||
Investment in PVNGS lessor notes | $ | 107,094 | $ | 108,742 | |||||||||||||||
Other investments | $ | 2,900 | $ | 3,052 | |||||||||||||||
TNMP | |||||||||||||||||||
Long-term debt | $ | 310,963 | $ | 413,966 | |||||||||||||||
Other investments | $ | 271 | $ | 271 |
(1) | GAAP does not require disclosure of the fair value hierarchy information prior to 2012 |
GAAP Fair Value Hierarchy | |||||||||||||||
Total | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2012 | (In thousands) | ||||||||||||||
PNM Pension Plan | |||||||||||||||
Participation in PNMR Master Trust Total Plan Investments | $ | 517,238 | $ | 205,491 | $ | 232,730 | $ | 79,017 | |||||||
TNMP Pension Plan | |||||||||||||||
Participation in PNMR Master Trust Total Plan Investments | $ | 66,450 | $ | 26,462 | $ | 25,817 | $ | 14,171 | |||||||
PNM OPEB Plan | |||||||||||||||
Cash and equivalents | $ | 4,976 | $ | 4,976 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International funds | 2,651 | — | 2,651 | — | |||||||||||
Domestic growth | 46,145 | 19,511 | 26,634 | — | |||||||||||
Other funds | 7,588 | — | 7,588 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Mutual funds | 4,176 | 4,176 | — | — | |||||||||||
Total Assets | $ | 65,536 | $ | 28,663 | $ | 36,873 | $ | — | |||||||
TNMP OPEB Plan | |||||||||||||||
Cash and equivalents | $ | 42 | $ | 42 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International funds | 1,444 | — | 1,444 | — | |||||||||||
Domestic growth | 1,289 | 1,289 | — | — | |||||||||||
Other funds | 3,660 | — | 3,660 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Mutual funds | 2,325 | 2,325 | — | — | |||||||||||
Total Assets | $ | 8,760 | $ | 3,656 | $ | 5,104 | $ | — |
GAAP Fair Value Hierarchy | |||||||||||||||
Total | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2011 | (In thousands) | ||||||||||||||
PNM Pension Plan | |||||||||||||||
Participation in PNMR Master Trust | $ | 444,466 | $ | 176,279 | $ | 184,054 | $ | 84,133 | |||||||
TNMP Pension Plan | |||||||||||||||
Participation in PNMR Master Trust | $ | 62,139 | $ | 24,118 | $ | 23,466 | $ | 14,555 | |||||||
PNM OPEB Plan | |||||||||||||||
Cash and equivalents | $ | 1,128 | $ | 1,128 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International funds | 2,740 | — | 2,740 | — | |||||||||||
Domestic value | 1,289 | 1,289 | — | — | |||||||||||
Domestic growth | 43,016 | 22,215 | 20,801 | — | |||||||||||
Other funds | 7,678 | — | 7,678 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Mutual funds | 4,006 | 4,006 | — | — | |||||||||||
Total Assets | $ | 59,857 | $ | 28,638 | $ | 31,219 | $ | — | |||||||
TNMP OPEB Plan | |||||||||||||||
Cash and equivalents | $ | 180 | $ | 180 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International funds | 1,248 | — | 1,248 | — | |||||||||||
Domestic value | 551 | 551 | — | — | |||||||||||
Domestic growth | 738 | 738 | — | — | |||||||||||
Other funds | 3,048 | — | 3,048 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Mutual funds | 2,694 | 2,694 | — | — | |||||||||||
Total Assets | $ | 8,459 | $ | 4,163 | $ | 4,296 | $ | — |
GAAP Fair Value Hierarchy | |||||||||||||||
Total | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2012 | (In thousands) | ||||||||||||||
PNMR Master Trust | |||||||||||||||
Cash and equivalents | $ | 10,404 | $ | 10,404 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International | 39,867 | 39,867 | — | — | |||||||||||
Domestic value | 39,492 | 39,492 | — | — | |||||||||||
Domestic growth | 63,888 | 63,888 | — | — | |||||||||||
Other funds | 17,035 | — | 17,035 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Corporate | 101,936 | — | 101,936 | — | |||||||||||
United States government | 148,341 | 78,302 | 70,039 | — | |||||||||||
Municipals | 3,639 | — | 3,639 | — | |||||||||||
Other funds | 65,898 | — | 65,898 | — | |||||||||||
Alternative investments: | |||||||||||||||
Private equity funds | 38,212 | — | — | 38,212 | |||||||||||
Hedge funds | 31,277 | — | — | 31,277 | |||||||||||
Real estate funds | 23,699 | — | — | 23,699 | |||||||||||
Total Fair Value of Plan Investments | $ | 583,688 | $ | 231,953 | $ | 258,547 | $ | 93,188 | |||||||
December 31, 2011 | |||||||||||||||
PNMR Master Trust | |||||||||||||||
Cash and equivalents | $ | 6,753 | $ | 6,753 | $ | — | $ | — | |||||||
Equity securities: | |||||||||||||||
International | 37,173 | 37,173 | — | — | |||||||||||
Domestic value | 58,350 | 57,437 | 913 | — | |||||||||||
Domestic growth | 65,004 | 65,004 | — | — | |||||||||||
Other funds | 15,271 | — | 15,271 | — | |||||||||||
Fixed income securities: | |||||||||||||||
Corporate | 59,730 | — | 59,730 | — | |||||||||||
United States government | 104,102 | 34,030 | 70,072 | — | |||||||||||
Municipals | 3,478 | — | 3,478 | — | |||||||||||
Other funds | 58,056 | — | 58,056 | — | |||||||||||
Alternative investments: | |||||||||||||||
Private equity funds | 37,100 | — | — | 37,100 | |||||||||||
Hedge funds | 36,904 | — | — | 36,904 | |||||||||||
Real estate funds | 24,684 | — | — | 24,684 | |||||||||||
Total Assets | $ | 506,605 | $ | 200,397 | $ | 207,520 | $ | 98,688 |
Year Ended December 31, | |||||||
Level 3 Fair Value Assets and Liabilities | 2012 | 2011 | |||||
(In thousands) | |||||||
PNM Pension | Master Trust | Master Trust | |||||
Balance at beginning of period | $ | 84,133 | $ | 78,940 | |||
Actual return on assets sold during the period | 2,627 | 1,624 | |||||
Actual return on assets still held at period end | 2,386 | 1,404 | |||||
Purchases | 5,498 | 4,030 | |||||
Sales | (15,627 | ) | (1,865 | ) | |||
Balance at end of period | $ | 79,017 | $ | 84,133 | |||
TNMP Pension | |||||||
Balance at beginning of period | $ | 14,555 | $ | 13,659 | |||
Actual return on assets sold during the period | 197 | 280 | |||||
Actual return on assets still held at period end | 179 | 243 | |||||
Purchases | 413 | 695 | |||||
Sales | (1,173 | ) | (322 | ) | |||
Balance at end of period | $ | 14,171 | $ | 14,555 |
PNMR Master Trust | Private equity funds | Hedge funds | Real estate funds | Total | |||||||||||
(In thousands) | |||||||||||||||
Balance at December 31, 2010 | $ | 32,935 | $ | 37,622 | $ | 22,042 | $ | 92,599 | |||||||
Actual return on assets sold during the period | 1,904 | — | — | 1,904 | |||||||||||
Actual return on assets still held at period end | 2,372 | (718 | ) | (7 | ) | 1,647 | |||||||||
Purchases | 2,076 | — | 2,649 | 4,725 | |||||||||||
Sales | (2,187 | ) | — | — | (2,187 | ) | |||||||||
Balance at December 31, 2011 | 37,100 | 36,904 | 24,684 | 98,688 | |||||||||||
Actual return on assets sold during the period | 2,966 | (80 | ) | (62 | ) | 2,824 | |||||||||
Actual return on assets still held at period end | 40 | 2,453 | 72 | 2,565 | |||||||||||
Purchases | 3,906 | — | 2,005 | 5,911 | |||||||||||
Sales | (5,800 | ) | (8,000 | ) | (3,000 | ) | (16,800 | ) | |||||||
Balance at December 31, 2012 | $ | 38,212 | $ | 31,277 | $ | 23,699 | $ | 93,188 |
(9) | Variable Interest Entities |
Results of Operations | |||||||||||
Year ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Operating revenues | $ | 19,585 | $ | 19,720 | $ | 18,907 | |||||
Operating expenses | (5,535 | ) | (5,673 | ) | (5,344 | ) | |||||
Earnings attributable to non-controlling interest | $ | 14,050 | $ | 14,047 | $ | 13,563 |
Financial Position | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Current assets | $ | 3,655 | $ | 2,405 | |||
Net property, plant and equipment | 77,953 | 80,785 | |||||
Total assets | 81,608 | 83,190 | |||||
Current liabilities | 765 | 767 | |||||
Owners’ equity – non-controlling interest | $ | 80,843 | $ | 82,423 |
(10) | Earnings Per Share |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Earnings (Loss) Attributable to PNMR: | |||||||||||
Earnings (loss) | $ | 120,125 | $ | 190,934 | $ | (31,124 | ) | ||||
Earnings attributable to Valencia Non-controlling Interest | (14,050 | ) | (14,047 | ) | (13,563 | ) | |||||
Preferred stock dividend requirements of subsidiary | (528 | ) | (528 | ) | (528 | ) | |||||
Net Earnings (Loss) Attributable to PNMR | $ | 105,547 | $ | 176,359 | $ | (45,215 | ) | ||||
Average Number of Common Shares: | |||||||||||
Outstanding during year | 79,654 | 85,558 | 86,673 | ||||||||
Equivalents from convertible preferred stock (Note 5) | — | 3,469 | 4,778 | ||||||||
Vested awards of restricted stock | 145 | 174 | 106 | ||||||||
Average Shares - Basic | 79,799 | 89,201 | 91,557 | ||||||||
Dilutive Effect of Common Stock Equivalents (1): | |||||||||||
Stock options and restricted stock | 618 | 556 | — | ||||||||
Average Shares – Diluted | 80,417 | 89,757 | 91,557 | ||||||||
Net Earnings (Loss) Per Share of Common Stock: | |||||||||||
Basic | $ | 1.32 | $ | 1.98 | $ | (0.49 | ) | ||||
Diluted | 1.31 | 1.96 | (0.49 | ) |
(1) | Excludes out-of-the-money options for 1,214,365 shares of common stock at December 31, 2012. Due to losses in the year ended December 31, 2010, no potentially dilutive securities are reflected in the average number of common shares used to compute earnings (loss) per share since any impact would be anti-dilutive. See Note 13. |
(11) | Income Taxes |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Current federal income tax | $ | (1,296 | ) | $ | 1,319 | $ | (52,184 | ) | |||
Current state income tax | (37 | ) | (4,208 | ) | (15,528 | ) | |||||
Deferred federal income tax | 50,851 | 119,280 | 28,364 | ||||||||
Deferred state income tax | 6,921 | 7,462 | 9,522 | ||||||||
Investment tax credit earned and deferred | 708 | — | — | ||||||||
Amortization of accumulated investment tax credits | (2,237 | ) | (2,318 | ) | (2,429 | ) | |||||
Total income taxes (benefit) | $ | 54,910 | $ | 121,535 | $ | (32,255 | ) |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Federal income tax at statutory rates | $ | 61,262 | $ | 109,364 | $ | (22,183 | ) | ||||
First Choice goodwill | — | 15,055 | — | ||||||||
Investment tax credits | (2,237 | ) | (2,318 | ) | (2,429 | ) | |||||
Flow-through of depreciation items | 1,284 | 3,659 | 3,995 | ||||||||
Earnings attributable to non-controlling interest in Valencia | (4,918 | ) | (4,917 | ) | (4,747 | ) | |||||
State income tax | 4,646 | 3,395 | (6,312 | ) | |||||||
Other | (5,127 | ) | (2,703 | ) | (579 | ) | |||||
Total income taxes (benefit) | $ | 54,910 | $ | 121,535 | $ | (32,255 | ) | ||||
Effective tax rate | 31.37 | % | 38.90 | % | 50.89 | % |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 110,989 | $ | 86,985 | |||
Pension | 26,452 | 50,515 | |||||
Regulatory liabilities related to income taxes | 53,439 | 49,413 | |||||
Other | 129,801 | 109,875 | |||||
Total deferred tax assets | 320,681 | 296,788 | |||||
Deferred tax liabilities: | |||||||
Depreciation and plant related | (759,587 | ) | (697,528 | ) | |||
Investment tax credit | (14,242 | ) | (15,771 | ) | |||
Regulatory assets related to income taxes | (59,471 | ) | (56,312 | ) | |||
Stranded costs | (24,934 | ) | (28,439 | ) | |||
Other | (178,492 | ) | (168,688 | ) | |||
Total deferred tax liabilities | (1,036,726 | ) | (966,738 | ) | |||
Net accumulated deferred income tax liabilities | (716,045 | ) | (669,950 | ) | |||
Current accumulated deferred income tax (asset) liability | 258 | 9,080 | |||||
Non-current accumulated deferred income tax liability | $ | (715,787 | ) | $ | (660,870 | ) |
Year Ended | |||
December 31, 2012 | |||
(In thousands) | |||
Net change in deferred income tax liability per above table | $ | 46,095 | |
Change in tax effects of income tax related regulatory assets and liabilities | 942 | ||
Tax effect of mark-to-market adjustments | (570 | ) | |
Tax effect of excess pension liability | 10,085 | ||
Adjustment for uncertain income tax positions | (381 | ) | |
Other | 72 | ||
Deferred income taxes | $ | 56,243 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Current federal income tax | $ | (12,951 | ) | $ | (46,364 | ) | $ | (77,691 | ) | ||
Current state income tax | (1,815 | ) | (6,776 | ) | 438 | ||||||
Deferred federal income tax | 55,486 | 78,673 | 109,170 | ||||||||
Deferred state income tax | 11,522 | 14,212 | 6,939 | ||||||||
Investment tax credit earned and deferred | 708 | — | — | ||||||||
Amortization of accumulated investment tax credits | (2,237 | ) | (2,318 | ) | (2,429 | ) | |||||
Total income taxes | $ | 50,713 | $ | 37,427 | $ | 36,427 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Federal income tax at statutory rates | $ | 54,710 | $ | 37,088 | $ | 37,551 | |||||
Investment tax credits | (2,237 | ) | (2,318 | ) | (2,429 | ) | |||||
Flow-through of depreciation items | 1,268 | 3,656 | 3,994 | ||||||||
Earnings attributable to non-controlling interest in Valencia | (4,918 | ) | (4,917 | ) | (4,747 | ) | |||||
State income tax | 6,500 | 4,797 | 4,747 | ||||||||
Other | (4,610 | ) | (879 | ) | (2,689 | ) | |||||
Total income taxes | $ | 50,713 | $ | 37,427 | $ | 36,427 | |||||
Effective tax rate | 32.44 | % | 35.32 | % | 33.95 | % |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Net operating loss | $ | 93,980 | $ | 72,615 | |||
Pension | 32,532 | 54,270 | |||||
Regulatory liabilities related to income taxes | 48,027 | 43,578 | |||||
Other | 55,629 | 47,263 | |||||
Total deferred tax assets | 230,168 | 217,726 | |||||
Deferred tax liabilities: | |||||||
Depreciation and plant related | (624,724 | ) | (570,278 | ) | |||
Investment tax credit | (14,242 | ) | (15,771 | ) | |||
Regulatory assets related to income taxes | (48,726 | ) | (45,331 | ) | |||
Other | (134,046 | ) | (123,098 | ) | |||
Total deferred tax liabilities | (821,738 | ) | (754,478 | ) | |||
Net accumulated deferred income tax liabilities | (591,570 | ) | (536,752 | ) | |||
Current accumulated deferred income tax liability | 3,447 | 16,562 | |||||
Non-current accumulated deferred income tax liability | $ | (588,123 | ) | $ | (520,190 | ) |
Year Ended | |||
December 31, 2012 | |||
(In thousands) | |||
Net change in deferred income tax liability per above table | $ | 54,818 | |
Change in tax effects of income tax related regulatory assets and liabilities | 1,054 | ||
Tax effect of mark-to-market adjustments | (506 | ) | |
Tax effect of excess pension liability | 10,085 | ||
Adjustment for uncertain income tax positions | (370 | ) | |
Other | 398 | ||
Deferred income taxes | $ | 65,479 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Current federal income tax | $ | 9,152 | $ | (3,578 | ) | $ | 3,532 | ||||
Current state income tax | 1,822 | 1,981 | 1,766 | ||||||||
Deferred federal income tax | 4,406 | 15,507 | 4,775 | ||||||||
Deferred state income tax | (28 | ) | (29 | ) | (29 | ) | |||||
Total income taxes | $ | 15,352 | $ | 13,881 | $ | 10,044 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Federal income tax at statutory rates | $ | 14,735 | $ | 12,648 | $ | 9,109 | |||||
State income tax | 1,185 | 1,288 | 1,148 | ||||||||
Other | (568 | ) | (55 | ) | (213 | ) | |||||
Total income taxes | $ | 15,352 | $ | 13,881 | $ | 10,044 | |||||
Effective tax rate | 36.47 | % | 38.41 | % | 38.59 | % |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Regulatory liabilities related to income taxes | $ | 5,412 | $ | 5,835 | |||
Other | 16,702 | 16,043 | |||||
Total deferred tax assets | 22,114 | 21,878 | |||||
Deferred tax liabilities: | |||||||
Depreciation and plant related | (133,686 | ) | (125,270 | ) | |||
Stranded costs | (24,934 | ) | (28,439 | ) | |||
Regulatory assets related to income taxes | (10,745 | ) | (10,981 | ) | |||
Other | (15,328 | ) | (14,113 | ) | |||
Total deferred tax liabilities | (184,693 | ) | (178,803 | ) | |||
Net accumulated deferred income tax liabilities | (162,579 | ) | (156,925 | ) | |||
Current accumulated deferred income tax (asset) | (1,131 | ) | (2,272 | ) | |||
Non-current accumulated deferred income tax liability | $ | (163,710 | ) | $ | (159,197 | ) |
Year Ended | |||
December 31, 2012 | |||
(In thousands) | |||
Net change in deferred income tax liability per above table | $ | 5,654 | |
Change in tax effects of income tax related regulatory assets and liabilities | (112 | ) | |
Adjustments for uncertain income tax positions | (905 | ) | |
Other | (259 | ) | |
Deferred income taxes | $ | 4,378 |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
Balance at December 31, 2009 | $ | 22,591 | $ | (218 | ) | $ | 6,796 | ||||
Additions based on tax positions related to 2010 | 13,514 | 12,136 | 992 | ||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Balance at December 31, 2010 | 36,105 | 11,918 | 7,788 | ||||||||
Additions based on tax positions related to 2011 | (790 | ) | (717 | ) | (74 | ) | |||||
Reductions for tax positions of prior years | (15,735 | ) | (449 | ) | (13 | ) | |||||
Settlements | — | — | — | ||||||||
Balance at December 31, 2011 | 19,580 | 10,752 | 7,701 | ||||||||
Additions based on tax positions related to 2012 | 2,046 | 1,152 | — | ||||||||
Reductions for tax positions of prior years | (2,428 | ) | (1,522 | ) | (905 | ) | |||||
Settlements | — | — | — | ||||||||
Balance at December 31, 2012 | $ | 19,198 | $ | 10,382 | $ | 6,796 |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
2012 | $ | 243 | $ | 244 | $ | (3 | ) | ||||
2011 | $ | 467 | $ | 401 | $ | 2 | |||||
2010 | $ | 397 | $ | 465 | $ | (8 | ) |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
December 31, 2012: | |||||||||||
Accumulated accrued interest receivable | $ | 3,796 | $ | 3,796 | $ | — | |||||
Accumulated accrued interest payable | $ | (1,108 | ) | $ | (23 | ) | $ | (116 | ) | ||
December 31, 2011: | |||||||||||
Accumulated accrued interest receivable | $ | 3,552 | $ | 3,552 | $ | — | |||||
Accumulated accrued interest payable | $ | (1,107 | ) | $ | (23 | ) | $ | (113 | ) |
(12) | Pension and Other Postretirement Benefits |
• | Maximize the return on assets, commensurate with the risk that the Corporate Investment Committee deems appropriate to meet the obligations of the pension plans and other postretirement benefits plans, minimize the volatility of expense, and account for contingencies |
• | Transition asset mix over time to a higher proportion of high quality fixed income investments as the plans' funded statuses improve |
PNM Plan | TNMP Plan | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
PBO at beginning of year | $ | 588,874 | $ | 593,457 | $ | 67,234 | $ | 72,260 | |||||||
Service cost | — | — | — | — | |||||||||||
Interest cost | 32,232 | 32,804 | 3,635 | 3,800 | |||||||||||
Actuarial (gain) loss | 94,361 | 1,197 | 11,434 | (2,793 | ) | ||||||||||
Benefits paid | (39,918 | ) | (38,584 | ) | (5,663 | ) | (6,033 | ) | |||||||
PBO at end of year | 675,549 | 588,874 | 76,640 | 67,234 | |||||||||||
Fair value of plan assets at beginning of year | 427,386 | 392,788 | 59,952 | 60,387 | |||||||||||
Actual return on plan assets | 52,927 | 31,671 | 6,951 | 4,447 | |||||||||||
Employer contributions | 77,700 | 41,511 | 5,300 | 1,151 | |||||||||||
Benefits paid | (39,918 | ) | (38,584 | ) | (5,663 | ) | (6,033 | ) | |||||||
Fair value of plan assets at end of year | 518,095 | 427,386 | 66,540 | 59,952 | |||||||||||
Funded status-asset (liability) for pension benefits | $ | (157,454 | ) | $ | (161,488 | ) | $ | (10,100 | ) | $ | (7,282 | ) |
PNM Plan | TNMP Plan | ||||||||||
December 31, 2012 | December 31, 2012 | ||||||||||
Prior service cost | Net actuarial (gain) loss | Net actuarial (gain) loss | |||||||||
(In thousands) | |||||||||||
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | $ | 171 | $ | 134,088 | $ | — | |||||
Experience loss (gain) | — | 82,734 | 9,807 | ||||||||
Regulatory asset (liability) adjustment | (1 | ) | (52,423 | ) | (9,807 | ) | |||||
Amortization recognized in net periodic benefit cost (income) | (138 | ) | (4,573 | ) | — | ||||||
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | $ | 32 | $ | 159,826 | $ | — | |||||
Amortization expected to be recognized in 2013 | $ | (32 | ) | $ | (6,233 | ) | $ | — |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
PNM Plan | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 32,232 | 32,804 | 34,073 | ||||||||
Expected return on plan assets | (41,301 | ) | (37,075 | ) | (37,354 | ) | |||||
Amortization of net (gain) loss | 10,516 | 9,209 | 6,450 | ||||||||
Amortization of prior service cost | 317 | 317 | 317 | ||||||||
Net periodic benefit cost | $ | 1,764 | $ | 5,255 | $ | 3,486 | |||||
TNMP Plan | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 3,635 | 3,800 | 4,126 | ||||||||
Expected return on plan assets | (5,324 | ) | (5,470 | ) | (5,794 | ) | |||||
Amortization of net (gain) loss | 462 | 346 | — | ||||||||
Amortization of prior service cost | — | — | — | ||||||||
Net periodic benefit cost (income) | $ | (1,227 | ) | $ | (1,324 | ) | $ | (1,668 | ) |
Year Ended December 31, | ||||||||
PNM Plan | 2012 | 2011 | 2010 | |||||
Discount rate for determining December 31 PBO | 4.30 | % | 5.67 | % | 5.72 | % | ||
Discount rate for determining net periodic benefit cost (income) | 5.67 | % | 5.72 | % | 6.47 | % | ||
Expected return on plan assets | 8.25 | % | 8.50 | % | 8.75 | % | ||
Rate of compensation increase | N/A | N/A | N/A | |||||
TNMP Plan | ||||||||
Discount rate for determining December 31 PBO | 4.19 | % | 5.69 | % | 5.50 | % | ||
Discount rate for determining net periodic benefit cost (income) | 5.69 | % | 5.50 | % | 6.31 | % | ||
Expected return on plan assets | 8.25 | % | 8.50 | % | 8.75 | % | ||
Rate of compensation increase | N/A | N/A | N/A |
PNM Plan | TNMP Plan | ||||||
(In thousands) | |||||||
2013 | $ | 42,186 | $ | 5,922 | |||
2014 | 42,979 | 6,189 | |||||
2015 | 43,573 | 6,385 | |||||
2016 | 44,092 | 5,982 | |||||
2017 | 44,608 | 5,893 | |||||
2018 – 2022 | 223,777 | 26,193 |
PNM Plan | TNMP Plan | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
APBO at beginning of year | $ | 96,221 | $ | 99,486 | $ | 11,344 | $ | 12,152 | |||||||
Service cost | 217 | 259 | 244 | 306 | |||||||||||
Interest cost | 5,293 | 5,378 | 624 | 654 | |||||||||||
Participant contributions | 2,266 | 2,206 | 404 | 281 | |||||||||||
Actuarial (gain) loss | 5,008 | 712 | 2,727 | (862 | ) | ||||||||||
Benefits paid | (9,392 | ) | (10,315 | ) | (1,665 | ) | (1,187 | ) | |||||||
Plan amendments | — | (1,505 | ) | — | — | ||||||||||
APBO at end of year | 99,613 | 96,221 | 13,678 | 11,344 | |||||||||||
Fair value of plan assets at beginning of year | 58,776 | 61,749 | 8,303 | 8,596 | |||||||||||
Actual return on plan assets | 9,285 | 2,263 | 1,259 | 262 | |||||||||||
Employer contributions | 3,529 | 2,873 | 342 | 351 | |||||||||||
Participant contributions | 2,266 | 2,206 | 404 | 281 | |||||||||||
Benefits paid | (9,392 | ) | (10,315 | ) | (1,665 | ) | (1,187 | ) | |||||||
Fair value of plan assets at end of year | 64,464 | 58,776 | 8,643 | 8,303 | |||||||||||
Funded status-asset (liability) | $ | (35,149 | ) | $ | (37,445 | ) | $ | (5,035 | ) | $ | (3,041 | ) |
PNM Plan | TNMP Plan | ||||||||||||||
December 31, 2012 | December 31, 2012 | ||||||||||||||
Prior service cost (credit) | Net actuarial (gain) loss | Prior service cost | Net actuarial (gain) loss | ||||||||||||
(In thousands) | |||||||||||||||
Amount in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | $ | (121 | ) | $ | 960 | $ | — | $ | — | ||||||
Experience loss (gain) | — | 623 | — | 1,985 | |||||||||||
Regulatory asset (liability) adjustment | 156 | (1,683 | ) | — | (1,985 | ) | |||||||||
Amortization recognized in net periodic benefit cost (income) | (35 | ) | 100 | — | |||||||||||
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | $ | — | $ | — | $ | — | $ | — | |||||||
Amortization expected to be recognized in 2013 | $ | — | $ | — | $ | — | $ | — |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
PNM Plan | |||||||||||
Service cost | $ | 217 | $ | 259 | $ | 419 | |||||
Interest cost | 5,293 | 5,378 | 7,650 | ||||||||
Expected return on plan assets | (4,901 | ) | (5,388 | ) | (5,572 | ) | |||||
Amortization of net (gain) loss | 3,888 | 3,205 | 5,489 | ||||||||
Amortization of prior service credit | (1,343 | ) | (2,648 | ) | (4,143 | ) | |||||
Net periodic benefit cost | $ | 3,154 | $ | 806 | $ | 3,843 | |||||
TNMP Plan | |||||||||||
Service cost | $ | 244 | $ | 306 | $ | 289 | |||||
Interest cost | 624 | 654 | 711 | ||||||||
Expected return on plan assets | (516 | ) | (533 | ) | (514 | ) | |||||
Amortization of net (gain) loss | (209 | ) | (193 | ) | (195 | ) | |||||
Amortization of prior service cost | 57 | 60 | 60 | ||||||||
Net periodic benefit cost | $ | 200 | $ | 294 | $ | 351 |
Year Ended December 31, | ||||||||
PNM Plan | 2012 | 2011 | 2010 | |||||
Discount rate for determining December 31 APBO | 4.26 | % | 5.70 | % | 5.59 | % | ||
Discount rate for determining net periodic benefit cost | 5.70 | % | 5.59 | % | 6.42 | % | ||
Expected return on plan assets | 8.50 | % | 8.50 | % | 8.75 | % | ||
Rate of compensation increase | N/A | N/A | N/A | |||||
TNMP Plan | ||||||||
Discount rate for determining December 31 APBO | 4.26 | % | 5.70 | % | 5.59 | % | ||
Discount rate for determining net periodic benefit cost | 5.70 | % | 5.59 | % | 6.42 | % | ||
Expected return on plan assets | 6.50 | % | 6.30 | % | 6.70 | % | ||
Rate of compensation increase | N/A | N/A | N/A |
PNM Plan | |||||
December 31, | |||||
2012 | 2011 | ||||
Health care cost trend rate assumed for next year | 7.0 | % | 7.5 | % | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.0 | % | 5.0 | % | |
Year that the rate reaches the ultimate trend rate | 2017 | 2017 |
PNM Plan | |||||||
1-Percentage- Point Increase | 1-Percentage- Point Decrease | ||||||
(In thousands) | |||||||
Effect on total of service and interest cost | $ | 395 | $ | (342 | ) | ||
Effect on APBO | $ | 6,454 | $ | (5,550 | ) |
PNM Plan | TNMP Plan | ||||||
(In thousands) | |||||||
2013 | $ | 6,123 | $ | 786 | |||
2014 | 6,327 | 796 | |||||
2015 | 6,450 | 803 | |||||
2016 | 6,668 | 823 | |||||
2017 | 6,780 | 838 | |||||
2018 – 2022 | 34,983 | 4,322 |
PNM Plan | TNMP Plan | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
PBO at beginning of year | $ | 16,191 | $ | 17,020 | $ | 844 | $ | 884 | |||||||
Service cost | — | — | — | — | |||||||||||
Interest cost | 876 | 930 | 45 | 46 | |||||||||||
Actuarial (gain) loss | 1,895 | (252 | ) | 107 | 8 | ||||||||||
Benefits paid | (1,495 | ) | (1,507 | ) | (94 | ) | (94 | ) | |||||||
PBO at end of year-funded status | 17,467 | 16,191 | 902 | 844 | |||||||||||
Less current liability | 1,452 | 1,436 | 90 | 89 | |||||||||||
Non-current liability | $ | 16,015 | $ | 14,755 | $ | 812 | $ | 755 |
December 31, 2012 | |||||||
PNM Plan | TNMP Plan | ||||||
(In thousands) | |||||||
Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year | $ | 1,354 | $ | — | |||
Experience loss (gain) | 1,895 | 107 | |||||
Regulatory asset (liability) adjustment | (1,216 | ) | (107 | ) | |||
Amortization recognized in net periodic benefit cost (income) | 36 | — | |||||
Amount in AOCI not yet recognized in net periodic benefit cost at end of year | $ | 2,069 | $ | — | |||
Amortization expected to be recognized in 2013 | $ | (98 | ) | $ | — |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
PNM Plan | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 876 | 930 | 1,053 | ||||||||
Amortization of net loss | 83 | 93 | 71 | ||||||||
Amortization of prior service cost | — | — | — | ||||||||
Net periodic benefit cost | $ | 959 | $ | 1,023 | $ | 1,124 | |||||
TNMP Plan | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 45 | 46 | 52 | ||||||||
Amortization of net (gain) loss | — | — | (4 | ) | |||||||
Amortization of prior service cost | — | — | — | ||||||||
Net periodic benefit cost | $ | 45 | $ | 46 | $ | 48 |
Year Ended December 31, | ||||||||
PNM Plan | 2012 | 2011 | 2010 | |||||
Discount rate for determining December 31 PBO | 4.30 | % | 5.67 | % | 5.72 | % | ||
Discount rate for determining net periodic benefit cost | 5.67 | % | 5.72 | % | 6.47 | % | ||
Long-term rate of return on plan assets | N/A | N/A | N/A | |||||
Rate of compensation increase | N/A | N/A | N/A | |||||
TNMP Plan | ||||||||
Discount rate for determining December 31 PBO | 4.19 | % | 5.69 | % | 5.50 | % | ||
Discount rate for determining net periodic benefit cost | 5.69 | % | 5.50 | % | 6.31 | % | ||
Long-term rate of return on plan assets | N/A | N/A | N/A | |||||
Rate of compensation increase | N/A | N/A | N/A |
PNM Plan | TNMP Plan | ||||||
(In thousands) | |||||||
2013 | $ | 1,452 | $ | 92 | |||
2014 | 1,436 | 91 | |||||
2015 | 1,418 | 89 | |||||
2016 | 1,396 | 87 | |||||
2017 | 1,371 | 85 | |||||
2018 – 2022 | 6,340 | 371 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
PNMR | |||||||||||
401(k) plan | $ | 16,185 | $ | 17,000 | $ | 17,199 | |||||
Non-qualified plan | $ | 1,491 | $ | 1,931 | $ | 2,500 | |||||
PNM | |||||||||||
401(k) plan | $ | 12,427 | $ | 12,541 | $ | 12,788 | |||||
Non-qualified plan | $ | 1,143 | $ | 1,407 | $ | 1,871 | |||||
TNMP | |||||||||||
401(k) plan | $ | 3,739 | $ | 3,723 | $ | 3,496 | |||||
Non-qualified plan | $ | 327 | $ | 431 | $ | 478 |
(13) | Stock-Based Compensation Plans |
Year Ended December 31, | ||||||||||||
Stock Options | 2012 | 2011 | 2010 | |||||||||
Dividend yield | — | % | — | % | 4.09 | % | ||||||
Expected volatility | — | % | — | % | 41.55 | % | ||||||
Risk-free interest rates | — | % | — | % | 2.13 | % | ||||||
Expected life (years) | — | — | 4.6 | |||||||||
Restricted Shares and Performance-Based Shares | ||||||||||||
Expected quarterly dividends per share | $ | 0.145 | $ | 0.125 | $ | 0.125 | ||||||
Risk-free interest rate | 1.22 | % | 1.35 | % | 1.49 | % | ||||||
Market-Based Shares | ||||||||||||
Dividend yield | 3.45 | % | — | — | ||||||||
Expected volatility | 43.98 | % | — | — | ||||||||
Risk-free interest rate | 1.04 | % | — | — |
Stock Option Shares | Weighted Average Exercise Price | Restricted Stock | Weighted-Average Grant Date Fair Value | ||||||||||
Outstanding at December 31, 2011 | 3,202,229 | $ | 18.95 | 418,730 | $ | 12.36 | |||||||
Granted | — | $ | — | 320,597 | $ | 16.75 | |||||||
Exercised | (906,850 | ) | $ | 12.88 | (375,402 | ) | $ | 13.58 | |||||
Forfeited | (7,434 | ) | $ | 12.22 | (10,203 | ) | $ | 12.88 | |||||
Expired | (295,245 | ) | $ | 25.82 | — | — | |||||||
Outstanding at December 31, 2012 | 1,992,700 | $ | 20.72 | 353,722 | 14.03 |
Year Ended December 31, | ||||||||||||
Stock Options | 2012 | 2011 | 2010 | |||||||||
Weighted-average grant date fair value of options granted | $ | — | $ | — | $ | 3.05 | ||||||
Total fair value of options that vested (in thousands) | $ | 6,787 | $ | 1,189 | $ | 1,393 | ||||||
Total intrinsic value of options exercised (in thousands) | $ | 6,356 | $ | 2,616 | $ | 525 | ||||||
Restricted Stock | ||||||||||||
Weighted-average grant date fair value | $ | 16.75 | $ | 13.79 | $ | 9.26 | ||||||
Total fair value of restricted shares that vested (in thousands) | $ | 5,099 | $ | 1,240 | $ | 1,365 |
(14) | Construction Program and Jointly-Owned Electric Generating Plants |
Station (Fuel Type) | Plant in Service | Accumulated Depreciation | Construction Work in Progress | Composite Interest | ||||||||||
(In thousands) | ||||||||||||||
SJGS (Coal) | $ | 978,575 | $ | (401,866 | ) | $ | 19,144 | 46.30 | % | |||||
PVNGS (Nuclear) (1) | $ | 489,425 | $ | (132,781 | ) | $ | 41,134 | 10.20 | % | |||||
Four Corners Units 4 and 5 (Coal) | $ | 152,873 | $ | (100,010 | ) | $ | 5,988 | 13.00 | % | |||||
Luna (Gas) | $ | 62,778 | $ | (15,195 | ) | $ | 117 | 33.33 | % |
(1) | Includes interest in PVNGS Unit 3, interest in common facilities for all PVNGS units, and owned interests in PVNGS Units 1 and 2. |
2013 | 2014 | 2015 | 2016 | 2017 | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
PNM | $ | 274.0 | $ | 287.2 | $ | 310.1 | $ | 196.7 | $ | 174.5 | $ | 1,242.5 | |||||||||||
TNMP | 84.0 | 97.5 | 105.6 | 90.5 | 92.7 | 470.3 | |||||||||||||||||
Corporate and Other | 14.8 | 13.8 | 13.8 | 13.4 | 13.3 | 69.1 | |||||||||||||||||
Total PNMR | $ | 372.8 | $ | 398.5 | $ | 429.5 | $ | 300.6 | $ | 280.5 | $ | 1,781.9 |
(15) | Asset Retirement Obligations |
PNMR | PNM | TNMP | |||||||||
(In thousands) | |||||||||||
Liability at December 31, 2009 | $ | 70,963 | $ | 70,099 | $ | 771 | |||||
Liabilities incurred | 532 | 531 | — | ||||||||
Liabilities settled | (603 | ) | (413 | ) | (190 | ) | |||||
Accretion expense | 6,019 | 5,945 | 67 | ||||||||
Revisions to estimated cash flows (1) | (274 | ) | (274 | ) | — | ||||||
Liability at December 31, 2010 | 76,637 | 75,888 | 648 | ||||||||
Liabilities incurred | 60 | 60 | — | ||||||||
Liabilities settled | (4 | ) | — | (4 | ) | ||||||
Accretion expense | 6,114 | 6,051 | 55 | ||||||||
Revisions to estimated cash flows (1) | (3,574 | ) | (3,574 | ) | — | ||||||
Liability at December 31, 2011 | 79,233 | 78,425 | 699 | ||||||||
Liabilities incurred | — | — | — | ||||||||
Liabilities settled | (25 | ) | — | (25 | ) | ||||||
Accretion expense | 6,685 | 6,617 | 58 | ||||||||
Liability at December 31, 2012 | $ | 85,893 | $ | 85,042 | $ | 732 |
(1) | Based on studies to estimate amount and timing of future ARO expenditures. PNM has an ARO for PVNGS that includes the obligations for nuclear decommissioning of that facility. In 2011, a new decommissioning study for PVNGS reflects updated cash flow estimates and the 20-year license extension, which extends the commencement of decommissioning to 2045. The new study resulted in a $4.2 million decrease to the ARO. |
(16) | Commitments and Contingencies |
(17) | Regulatory and Rate Matters |
(18) | Related Party Transactions |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Electricity, transmission and distribution related services billings: | |||||||||||
TNMP to PNMR | $ | — | $ | 33,813 | $ | 39,084 | |||||
Services billings: | |||||||||||
PNMR to PNM | 99,986 | 98,914 | 93,602 | ||||||||
PNMR to TNMP | 29,110 | 29,353 | 25,455 | ||||||||
PNM to TNMP | 595 | 550 | 400 | ||||||||
TNMP to PNMR | 15 | 164 | 319 | ||||||||
PNMR to Optim Energy | — | 4,083 | 5,778 | ||||||||
Optim Energy to PNMR | — | 23 | 173 | ||||||||
Income tax sharing payments: | |||||||||||
PNMR to TNMP | 1,951 | — | 13,869 | ||||||||
PNMR to PNM | 63,114 | — | 59,298 | ||||||||
Interest payments: | |||||||||||
PNM to PNMR | 1 | 54 | 13 | ||||||||
TNMP to PNMR | 137 | 40 | 281 |
(19) | Accumulated Other Comprehensive Income (Loss) |
Unrealized gain on securities | Pension liability adjustment | Mark-to- market for cash-flow hedge transactions | Accumulated other comprehensive income (loss) | ||||||||||||
(In thousands) | |||||||||||||||
PNMR | |||||||||||||||
Balance at December 31, 2012 | $ | 16,406 | $ | (97,820 | ) | $ | (216 | ) | $ | (81,630 | ) | ||||
Balance at December 31, 2011 | $ | 15,634 | $ | (82,432 | ) | $ | (58 | ) | $ | (66,856 | ) | ||||
PNM | |||||||||||||||
Balance at December 31, 2012 | $ | 16,406 | $ | (97,820 | ) | $ | — | $ | (81,414 | ) | |||||
Balance at December 31, 2011 | $ | 15,634 | $ | (82,432 | ) | $ | — | $ | (66,798 | ) | |||||
TNMP | |||||||||||||||
Balance at December 31, 2012 | $ | — | $ | — | $ | (216 | ) | $ | (216 | ) | |||||
Balance at December 31, 2011 | $ | — | $ | — | $ | (58 | ) | $ | (58 | ) |
Results of Operations | |||||||
Nine Months Ended September 30, 2011 | Year Ended December 31, 2010 | ||||||
(In thousands) | |||||||
Operating revenues | $ | 256,786 | $ | 374,358 | |||
Margin | 84,689 | 109,980 | |||||
Net earnings (loss) | (21,434 | ) | (25,090 | ) |
Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
PNMR | |||||||||||||||
2012 | |||||||||||||||
Operating revenues | $ | 305,374 | $ | 323,860 | $ | 390,411 | $ | 322,758 | |||||||
Operating income | 53,729 | 65,106 | 118,150 | 36,736 | |||||||||||
Net earnings | 20,477 | 25,099 | 61,976 | 12,573 | |||||||||||
Net earnings attributable to PNMR | 17,080 | 21,512 | 57,864 | 9,091 | |||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | 0.21 | 0.27 | 0.73 | 0.11 | |||||||||||
Diluted | 0.21 | 0.27 | 0.72 | 0.11 | |||||||||||
2011 | |||||||||||||||
Operating revenues | $ | 387,663 | $ | 415,586 | $ | 549,498 | $ | 347,872 | |||||||
Operating income | 52,220 | 32,860 | 108,284 | 63,935 | |||||||||||
Net earnings(1) | 19,952 | 7,669 | 47,905 | 115,408 | |||||||||||
Net earnings attributable to PNMR | 16,637 | 4,067 | 43,662 | 111,993 | |||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | 0.18 | 0.04 | 0.48 | 1.36 | |||||||||||
Diluted | 0.18 | 0.04 | 0.48 | 1.35 | |||||||||||
PNM | |||||||||||||||
2012 | |||||||||||||||
Operating revenues | $ | 250,416 | $ | 260,094 | $ | 321,731 | $ | 260,023 | |||||||
Operating income | 42,105 | 46,669 | 96,973 | 20,135 | |||||||||||
Net earnings | 21,077 | 20,340 | 54,891 | 9,293 | |||||||||||
Net earnings attributable to PNM | 17,812 | 16,885 | 50,911 | 5,943 | |||||||||||
2011 | |||||||||||||||
Operating revenues | $ | 234,238 | $ | 239,234 | $ | 323,760 | $ | 260,057 | |||||||
Operating income | 18,165 | 10,543 | 87,914 | 44,821 | |||||||||||
Net earnings | 6,964 | 2,097 | 42,572 | 16,905 | |||||||||||
Net earnings (loss) attributable to PNM | 3,781 | (1,373 | ) | 38,461 | 13,622 | ||||||||||
TNMP | |||||||||||||||
2012 | |||||||||||||||
Operating revenues | $ | 54,958 | $ | 63,766 | $ | 68,680 | $ | 62,736 | |||||||
Operating income | 11,791 | 18,897 | 20,970 | 15,862 | |||||||||||
Net earnings | 3,011 | 8,018 | 9,084 | 6,634 | |||||||||||
2011 | |||||||||||||||
Operating revenues | $ | 53,842 | $ | 59,957 | $ | 66,983 | $ | 57,076 | |||||||
Operating income | 13,724 | 13,695 | 21,551 | 14,872 | |||||||||||
Net earnings | 4,163 | 4,102 | 8,868 | 5,124 |
Year ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Operating Revenues | $ | — | $ | — | $ | — | |||||
Operating Expenses | 3,287 | 20,547 | 6,584 | ||||||||
Operating income (loss) | (3,287 | ) | (20,547 | ) | (6,584 | ) | |||||
Other Income and Deductions: | |||||||||||
Equity in earnings of subsidiaries | 117,900 | 205,215 | 96,804 | ||||||||
Equity in net earnings (loss) of Optim Energy | — | — | (15,223 | ) | |||||||
Impairment of equity investment in Optim Energy | — | — | (188,176 | ) | |||||||
Other income | 670 | 59 | 948 | ||||||||
Other deductions | (20,904 | ) | (34,124 | ) | (25,772 | ) | |||||
Net other income (deductions) | 97,666 | 171,150 | (131,419 | ) | |||||||
Income (Loss) Before Income Taxes | 94,379 | 150,603 | (138,003 | ) | |||||||
Income Tax Expense (Benefit) | (11,168 | ) | (25,756 | ) | (92,788 | ) | |||||
Net Earnings (Loss) | $ | 105,547 | $ | 176,359 | $ | (45,215 | ) |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net earnings (loss) | $ | 105,547 | $ | 176,359 | $ | (45,215 | ) | ||||
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 5,000 | 7,654 | 6,767 | ||||||||
Deferred income tax expense | (46,632 | ) | (34,396 | ) | (73,067 | ) | |||||
Equity in (earnings) of subsidiaries | (117,900 | ) | (205,215 | ) | (96,804 | ) | |||||
Equity in net (earnings) loss of Optim Energy | — | — | 15,223 | ||||||||
Impairment of equity investment in Optim Energy | — | — | 188,176 | ||||||||
(Gain) on reacquired debt | — | 9,209 | — | ||||||||
Stock based compensation expense | 3,585 | 6,556 | 2,894 | ||||||||
Changes in certain assets and liabilities: | |||||||||||
Other current assets | (43,638 | ) | 42,687 | 15,171 | |||||||
Other assets | 34,096 | 59,975 | 31 | ||||||||
Accounts payable | 8 | (1 | ) | (157 | ) | ||||||
Accrued interest and taxes | (28,855 | ) | 27,348 | 141 | |||||||
Other current liabilities | 3,876 | 4,765 | (8,955 | ) | |||||||
Other liabilities | (29,601 | ) | (12,854 | ) | 18,236 | ||||||
Net cash flows from operating activities | (114,514 | ) | 82,087 | 22,441 | |||||||
Cash Flows From Investing Activities: | |||||||||||
Utility plant additions | (7,524 | ) | — | — | |||||||
Investments in subsidiaries | — | (43,000 | ) | — | |||||||
Investments in Optim Energy | — | — | (20,279 | ) | |||||||
Cash dividends from subsidiaries | 61,406 | 285,757 | 47,940 | ||||||||
Net cash flows from investing activities | 53,882 | 242,757 | 27,661 | ||||||||
Cash Flows From Financing Activities: | |||||||||||
Short-term borrowings (repayments), net | 120,900 | (15,300 | ) | (8,000 | ) | ||||||
Short-term borrowings (repayments) – affiliate, net | — | 300 | 1,719 | ||||||||
Repayment of long-term debt | (2,387 | ) | (60,391 | ) | (2,125 | ) | |||||
Purchase of preferred stock | — | (73,475 | ) | — | |||||||
Purchase of common stock | — | (125,683 | ) | — | |||||||
Proceeds from stock option exercise | 11,684 | 5,622 | 1,247 | ||||||||
Purchases to satisfy awards of common stock | (25,168 | ) | (10,104 | ) | (2,986 | ) | |||||
Excess tax (shortfall) from stock-based payment arrangements | — | — | (580 | ) | |||||||
Dividends paid | (44,609 | ) | (45,128 | ) | (45,726 | ) | |||||
Other, net | — | (747 | ) | — | |||||||
Net cash flows from financing activities | 60,420 | (324,906 | ) | (56,451 | ) | ||||||
Change in Cash and Cash Equivalents | (212 | ) | (62 | ) | (6,349 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 241 | 303 | 6,652 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 29 | $ | 241 | $ | 303 | |||||
Supplemental Cash Flow Disclosures: | |||||||||||
Interest paid | $ | 15,007 | $ | 19,215 | $ | 19,078 | |||||
Income taxes paid (refunded), net | $ | 1,501 | $ | 5,454 | $ | (27,018 | ) |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 29 | $ | 241 | |||
Intercompany receivables | 108,875 | 76,982 | |||||
Income taxes receivable | 41,434 | — | |||||
Other, net | 2,204 | — | |||||
Total current assets | 152,542 | 77,223 | |||||
Property, plant and equipment, net of accumulated depreciation of $8,262 and $14,340 | 25,642 | 18,792 | |||||
Long-term investments | 3,651 | 7,439 | |||||
Investment in subsidiaries | 1,688,168 | 1,646,449 | |||||
Other long-term assets | 49,302 | 37,294 | |||||
Total long-term assets | 1,766,763 | 1,709,974 | |||||
$ | 1,919,305 | $ | 1,787,197 | ||||
Liabilities and Stockholders’ Equity | |||||||
Short-term debt | $ | 137,600 | $ | 16,700 | |||
Short-term debt-affiliate | 8,819 | 8,819 | |||||
Current maturities of long-term debt | 2,530 | 2,387 | |||||
Accrued interest and taxes | 3,127 | 31,510 | |||||
Other current liabilities | 13,218 | 7,743 | |||||
Total current liabilities | 165,294 | 67,159 | |||||
Long-term debt | 142,592 | 145,123 | |||||
Other long-term liabilities | 3,232 | 930 | |||||
Total liabilities | 311,118 | 213,212 | |||||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,182,819 | 1,193,191 | |||||
Accumulated other comprehensive income (loss), net of tax | (81,630 | ) | (66,856 | ) | |||
Retained earnings | 506,998 | 447,650 | |||||
Total common stockholders’ equity | 1,608,187 | 1,573,985 | |||||
$ | 1,919,305 | $ | 1,787,197 |
Additions | Deductions | ||||||||||||||||||||
Description | Balance at beginning of year | Charged to costs and expenses | Charged to other accounts | Write-offs and other | Balance at end of year | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Allowance for doubtful accounts, year ended December 31: | |||||||||||||||||||||
2010 | $ | 12,783 | $ | 27,566 | $ | — | $ | 29,171 | $ | 11,178 | |||||||||||
2011 | $ | 11,178 | $ | 24,116 | $ | — | $ | 33,516 | (1) | $ | 1,778 | ||||||||||
2012 | $ | 1,778 | $ | 3,367 | $ | — | $ | 3,394 | $ | 1,751 |
Additions | Deductions | ||||||||||||||||||||
Description | Balance at beginning of year | Charged to costs and expenses | Charged to other accounts | Write-offs | Balance at end of year | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Allowance for doubtful accounts, year ended December 31: | |||||||||||||||||||||
2010 | $ | 1,483 | $ | 2,600 | $ | — | $ | 2,600 | $ | 1,483 | |||||||||||
2011 | $ | 1,483 | $ | 3,736 | $ | — | $ | 3,441 | $ | 1,778 | |||||||||||
2012 | $ | 1,778 | $ | 3,384 | $ | — | $ | 3,411 | $ | 1,751 |
Additions | Deductions | |||||||||||||||||||
Description | Balance at beginning of year | Charged to costs and expenses | Charged to other accounts | Write-offs | Balance at end of year | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Allowance for doubtful accounts, year ended December 31: | ||||||||||||||||||||
2010 | $ | — | $ | 22 | $ | — | $ | 22 | $ | — | ||||||||||
2011 | $ | — | $ | 33 | $ | — | $ | 33 | $ | — | ||||||||||
2012 | $ | — | $ | (17 | ) | $ | — | $ | (17 | ) | $ | — |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
(a) - 1. | See Index to Financial Statements under Part II, Item 8. | ||
(a) - 2. | Financial Statement Schedules for the years 2012, 2011, and 2010 are omitted for the reason that they are not required or the information is otherwise supplied under Part II, Item 8. | ||
(a) - 3-A. | Exhibits Filed: | ||
Exhibit No | Description | ||
10.1** | PNMR | 2013 Director Compensation Summary | |
12.1 | PNMR | Ratio of Earnings to Fixed Charges | |
12.2 | PNM | Ratio of Earnings to Fixed Charges | |
12.3 | TNMP | Ratio of Earnings to Fixed Charges | |
21 | PNMR | Certain subsidiaries of PNM Resources, Inc. | |
23.1 | PNMR | Consent of Deloitte & Touche LLP for PNM Resources, Inc. | |
23.2 | PNM | Consent of Deloitte & Touche LLP for Public Service Company of New Mexico | |
31.1 | PNMR | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | PNMR | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.3 | PNM | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.4 | PNM | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.5 | TNMP | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.6 | TNMP | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | PNMR | Chief Executive Officer and Chief Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | PNM | Chief Financial Officer and Chief Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.3 | TNMP | Chief Executive Officer and Chief Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | PNMR | XBRL Instance Document | |
101.SCH | PNMR | XBRL Taxonomy Extension Schema Document | |
101.CAL | PNMR | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | PNMR | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | PNMR | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | PNMR | XBRL Taxonomy Extension Presentation Linkbase Document |
(a) -3- B. | Exhibits Incorporated By Reference: |
Exhibit No. | Description of Exhibit | Filed as Exhibit: | Registrant(s) File No: | ||||
Plan of Acquisition | |||||||
2.1 | Stock Purchase Agreement dated as of September 23, 2011 among PNMR, TNP Enterprises, Inc. and Direct LP, Inc. | 2.1 to PNMR's Current Report on Form 8K filed September 23, 2011 | 1-32464 PNMR | ||||
2.2 | Asset Purchase Agreement dated January 12, 2008 among PNM, Continental Energy Systems, LLC and New Mexico Gas Company, Inc. | 2.0 to PNM's Annual Report on Form 10-K for the year ended December 31, 2007 | 1-6986 PNM | ||||
Articles of Incorporation and By-laws | |||||||
3.1 | Articles of Incorporation of PNM Resources, as amended to date (Certificate of Amendment dated October 27, 2008 and Restated Articles of Incorporation dated August 3, 2006) | 3.1 to the Company's Current Report on Form 8-K filed November 21, 2008 | 1-32462 PNMR | ||||
3.2 | Restated Articles of Incorporation of PNM, as amended through May 31, 2002 | 3.1.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 | 1-6986 PNM | ||||
3.3 | Articles of Incorporation of TNMP, as amended through July 7, 2005 | 3.1.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 | 2-97230 TNMP | ||||
3.4 | Bylaws of PNM Resources, Inc. with all amendments to and including December 8, 2009 | 3.1 to the Company's Current Report on Form 8-K filed December 11, 2009 | 1-32462 PNMR | ||||
3.5 | Bylaws of PNM with all amendments to and including May 31, 2002 | 3.1.2 to the Company's Report on Form 10-Q for the fiscal quarter ended June 30, 2002 | 1-6986 PNM | ||||
3.6 | Bylaws of TNMP as amended effective June 26, 2011 | 3.6 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 | 2-97230 TNMP | ||||
Indentures‡ | |||||||
PNMR | |||||||
4.1 | Indenture, dated as of March 15, 2005, between PNMR and JPMorgan Chase Bank, N.A., as Trustee | 10.2 to PNMR's Current Report on Form 8-K filed March 31, 2005 | 1-32462 PNMR | ||||
4.2 | Supplemental Indenture No. 1, dated as of March 30, 2005, between the Company and JPMorgan Chase Bank, N.A. as Trustee, with Form of Senior Note included as Exhibit A thereto | 10.3 to PNMR's Current Report on Form 8-K filed March 31, 2005 | 333-32170 PNMR | ||||
4.3 | Supplemental Indenture No. 2, dated as of May 16, 2008 between PNMR and The Bank of New York Trust Company, N.A. (successor to JPMorgan Chase Bank, N.A.), as trustee | 4.3 to PNMR's Current Report on Form 8-K filed May 21, 2008 | 1-32462 PNMR | ||||
4.4 | Agreement of Resignation, Appointment and Acceptance, effective as of June 1, 2011, among PNMR, The Bank of New York Mellon Trust Company, N.A. and Union Bank, N.A. (for March 15, 2005 PNMR Indenture) | 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 | 1-32462 PNMR | ||||
PNM | |||||||
4.5 | Indenture (for Senior Notes), dated as of March 11, 1998, between PNM and The Chase Manhattan Bank, as Trustee | 4.4 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998 | 1-6986 PNM | ||||
4.6 | First Supplemental Indenture, dated as of March 11, 1998, supplemental to Indenture, dated as of March 11, 1998, Between PNM and The Chase Manhattan Bank, as Trustee | 4.5 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998 | 1-6986 PNM | ||||
4.7 | Second Supplemental Indenture, dated as of March 11, 1998, supplemental to Indenture, dated as of March 11, 1998, Between PNM and The Chase Manhattan Bank, as Trustee | 4.6 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998 | 1-6986 PNM | ||||
4.8 | Third Supplemental Indenture, dated as of October 1, 1999 to Indenture dated as of March 11, 1998, between PNM and The Chase Manhattan Bank, as Trustee | 4.6.1 to PNM's Annual Report on Form 10-K for the fiscal year ended December 31, 1999 | 1-6986 PNM | ||||
4.9 | Fourth Supplemental Indenture, dated as of May 1, 2003 to Indenture dated as of March 11, 1998, between PNM and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee | 4.6.2 to PNM's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 | 1-6986 PNM | ||||
4.10 | Fifth Supplemental Indenture, dated as of May 1, 2003 to Indenture dated as of March 11, 1998, between PNM and JPMorgan Chase Bank, as Trustee | 4.6.3 to PNM's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 | 1-6986 PNM | ||||
4.11 | Sixth Supplemental Indenture, dated as of May 1, 2003 to Indenture dated as of March 11, 1998, between PNM and JPMorgan Chase Bank, as Trustee | 4.6.4 to PNM's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 | 1-6986 PNM | ||||
4.12 | Seventh Supplemental Indenture, dated as of June 1, 2007 to Indenture dated as of March 11, 1998, between PNM and The Bank of New York Trust Company, N.A. (successor to JPMorgan Chase Bank), as Trustee | 4.23 to PNM's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 | 1-6986 PNM | ||||
4.13 | Eighth Supplemental Indenture, dated as of June 1, 2010 to Indenture dated as of March 11, 1988, between PNM and The Bank of New York Mellon Trust Company (successor to JPMorgan Chase Bank), as Trustee | 10.1 to PNM's Current Report on Form 8-K/A filed July 29, 2010 | 1-6986 PNM | ||||
4.14 | Ninth Supplemental Indenture, dated as of June 1, 2010 to Indenture dated as of March 11, 1988, between PNM and The Bank of New York Mellon Trust Company (successor to JPMorgan Chase Bank), as Trustee | 10.2 to PNM's Current Report on Form 8-K/A filed July 29, 2010 | 1-6986 PNM | ||||
4.15 | Agreement of Resignation, Appointment and Acceptance effective as of May 1, 2011, among PNM, The Bank of New York Mellon Trust Company, N.A. and Union Bank, N.A. (for March 11, 1998 PNM Indenture) | 4.2 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-6986 PNM | ||||
4.16 | Tenth Supplemental Indenture, dated as of September 1, 2012, between PNM and Union Bank, N.A.(ultimate successor as trustee to The Chase Manhattan Bank), as Trustee | 4.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 | 1-6986 PNM | ||||
4.17 | Indenture (for Senior Notes), dated as of August 1, 1998, between PNM and The Chase Manhattan Bank, as Trustee | 4.1 to PNM's Registration Statement No. 333-53367 | 333-53367 PNM | ||||
4.18 | First Supplemental Indenture, dated August 1, 1998, supplemental to Indenture, dated as of August 1, 1998, between PNM and The Chase Manhattan Bank, as Trustee | 4.3 to PNM's Current Report on Form 8-K Dated August 7, 1998 | 1-6986 PNM | ||||
4.19 | Second Supplemental Indenture, dated September 1, 2003, supplemental to Indenture, dated as of August 1, 1998, between PNM and JPMorgan Chase Bank (formerly, The Chase Manhattan Bank), as Trustee | 4.7.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003 | 1-6986 PNM | ||||
4.20 | Third Supplemental Indenture, dated as of May 13, 2008 between PNM and The Bank of New York Trust Company, N.A. as trustee | 4.1 to PNM's Current Report on Form 8-K filed May 15, 2008 | 1-6986 PNM | ||||
4.21 | Agreement of Resignation, Appointment and Acceptance, effective as of June 1, 2011, among PNM, The Bank of New York Mellon Trust Company and Union Bank, N.A. (for August 1, 1998 PNM Indenture) | 4.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 | 1-6986 PNM |
4.22 | Fourth Supplemental Indenture, dated as of October 12, 2011, to the Indenture, dated as of August 1, 1998, between PNM and Union Bank, N.A. (ultimate successor as trustee to The Chase Manhattan Bank), as trustee | 4.1 to PNM's Current Report on Form 8-K filed October 12, 2011 | 1-6986 PNM | ||||
TNMP | |||||||
4.23 | The First Mortgage Indenture dated as of March 23, 2009, between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee | 4.1 to TNMP's Current Report on Form 8-K filed March 27, 2009 | 2-97230 TNMP | ||||
4.24 | The First Supplemental Indenture dated as of March 23, 2009, between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee | 4.2 to TNMP's Current Report on Form 8-K filed March 27, 2009 | 2-97230 TNMP | ||||
4.25 | The Second Supplemental Indenture dated as of March 25, 2009, between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee | 4.3 to TNMP's Current Report on Form 8-K filed March 27, 2009 | 2-97230 TNMP | ||||
4.26 | The Third Supplemental Indenture dated as of April 30, 2009 between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee | 4.1 to TNMP's current Report on Form 8-K filed May 6, 2009 | 2-97230 TNMP | ||||
4.27 | First Amendment dated as of December 16, 2010 between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee to The Third Supplemental Indenture dated as of April 30, 2009 between TNMP and The Bank of New York Mellon Trust Company, N.A., as Trustee | 4.1 to TNMP's Current Report on Form 8-K filed December 17, 2010 | 2-97230 TNMP | ||||
4.28 | Agreement of Resignation, Appointment and Acceptance, effective as of June 1, 2011, among TNMP, The Bank of New York Mellon Trust Company, N.A. and Union Bank, N.A. (for March 23, 2009 TNMP Indenture) | 4.4 to TNMP's Quarterly Report Form 10-Q for the quarter ended June 30, 2011 | 2-97230 TNMP | ||||
4.29 | Fourth Supplemental Indenture dated as of September 30, 2011 between TNMP and Union Bank, N.A., as Trustee | 4.1 to TNMP's 8-K filed October 6, 2011 | 2-97230 TNMP | ||||
Material Contracts | |||||||
10.2 | Credit Agreement, dated as of October 31, 2011, among PNM Resources, Inc., the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent and Union Bank, N.A., as Syndication Agent | 10.1 to the Company's Current Report on Form 8-K filed October 31, 2011 | 1-32462 PNMR | ||||
10.3 | First Amendment to Credit Agreement dated January 18, 2012 among PNMR, the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent | 10.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2011 | 1-32462 PNMR | ||||
10.4 | Term Loan Agreement dated as of December 14, 2012 among PNMR, the lenders identified therein and JPMorgan Chase Bank, N.A., as administrative agent | 10.1 to PNMR's Current Report on form 8-K filed December 17, 2012 | 1-32462 PNMR | ||||
10.5 | Letter Agreement, dated as of February 28, 2011, between PNM Resources, Inc. and Cascade Investment, L.L.C. | 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-32462 PNMR | ||||
10.6 | Amendment to Letter Agreement, dated as of May 5, 2011, between PNM Resources, Inc. and Cascade Investment, L.L.C. | 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 | 1-32462 PNMR | ||||
10.7 | Sale and Purchase Agreement, dated as of November 4, 2011, between PNMR and Cascade Investment, L.L.C. | 10.1 to PNMR's Current Report on Form 8-K filed November 4, 2011 | 1-32462 PNMR | ||||
10.8 | Sale and Purchase Agreement dated as of September 23, 2011 between PNM Resources, Inc. and Cascade Investment, L.L.C. | 10.1 to PNMR's Current Report on Form 8-K filed September 23, 2011 | 1-32462 PNMR | ||||
10.9 | Credit Agreement, dated as of October 31, 2011, among PNM, the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent and Union Bank, N.A., as Syndication Agent | 10.2 to PNM's Current Report on Form 8-K filed October 31, 2011 | 1-6986 PNM |
10.10 | First Amendment to Credit Agreement dated January 18, 2012 among PNM, the lenders party thereto, and Wells Fargo Bank, National Association, as Administrative Agent | 10.2 to PNM's Annual Report on Form 10-K for the year ended December 31, 2011 | 1-6986 PNM | ||||
10.11 | Term Loan Credit Agreement dated as of September 30, 2011, among TNMP, as borrower, the lenders identified therein, and JPMorgan Chase Bank, N.A., as administrative agent | 10.1 to TNMP's Current Report on Form 8-K filed October 6, 2011 | 2-97230 TNMP | ||||
10.12 | Amended and Restated Credit Agreement, dated as of December 16, 2010, among TNMP, the lenders identified therein and JPMorgan Chase Bank, N.A., as administrative agent | 10.1 to TNMP's Current Report on Form 8-K filed December 17, 2010 | 2-97230 TNMP | ||||
10.13 | Amendment No. 1 to the Amended and Restated Credit Agreement, dated as of September 30, 2011 by and among TNMP, the institutions parties thereto as lenders, and JPMorgan Chase Bank, N.A. as administrative agent | 10.2 to TNMP's Current Report on Form 8-K filed October 6, 2011 | 2-97230 TNMP | ||||
10.14** | PNM Resources, Inc. Second Amended and Restated Omnibus Performance Equity Plan dated May 19, 2009 (“PEP”) | 4.1 to PNM Resources' Form S-8 Registration Statement filed May 20, 2009 | 333-159361 PNMR | ||||
10.15** | Amendment dated May 17, 2011 to PNMR's Second Amended and Restated Omnibus Performance Equity Plan | 10.1 to PNMR's Current Report Form 8-K filed May 20, 2011 | 1-32462 PNMR | ||||
10.16** | Second Amendment executed March 28, 2012 to the PNMR Second Amended and Restated Omnibus Performance Equity Plan | 10.6 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.17** | Third Amendment (approved by PNMR Shareholders on May 15, 2012) to the PNMR Second Amended and Restated Omnibus Performance Equity Plan | 10.1 to PNMR's Current Report on Form 8-K filed May 17, 2012 | 1-32462 PNMR | ||||
10.18** | PNM Resources, Inc. 2012 Officer Annual Incentive Plan dated March 28, 2012 | 10.1 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.19** | PNMR 2011 Officer Short-Term Cash Incentive Plan dated April 29, 2011 | 10.4 to PNMR's Quarterly Report on form 10-Q for the quarter ended March 31, 2011 | 1-32462 PNMR | ||||
10.20** | PNMR 2012 Long-Term Incentive Plan dated March 28, 2012 | 10.2 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.21** | PNM Resources, Inc. 2011 Long-Term Incentive Transition Plan, dated April 29, 2011 | 10.5 to the Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-32462 PNMR | ||||
10.22** | PNM Resources, Inc. 2011 Long-Term Incentive Plan Terms and Conditions, dated March 22, 2011 | 10.6 to the Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-32462 PNMR | ||||
10.23** | Description of 2010 long term incentive program for named executive officers | Item 5.02(e) of PNM Resources' Current Report on Form 8-K filed March 25, 2010 | 1-32462 PNMR | ||||
10.24** | Form of Stock Option Award Agreement for non-qualified stock options granted under PEP in 2010 | 10.3 to PNMR's Current Report on Form 8-K filed May 26, 2009 | 1-32462 PNMR | ||||
10.25** | Form of Performance Restricted Stock Rights Award Agreement for performance-based, time-vested restricted stock rights awards based on adjusted cash earnings granted under PEP in 2010 | 10.4 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 | 1-32464 PNMR | ||||
10.26** | Form of Performance Restricted Stock Rights Award Agreement for performance-based, time-vested restricted stock rights awards based on adjusted cash earnings granted under PEP in 2009 | 10.4 to PNMR's Current Report on Form 8-K filed May 26, 2009 (the 2009 long-term incentive program for named executive officers is described in Item 5.02(e) of this Current Report on Form 8-K filed May 26, 2009) | 1-32462 PNMR | ||||
10.27** | Form of the award agreement for non- qualified stock options granted under the PEP in 2007-2009 | 10.2 to the Company's Current Report on Form 8-K filed February 16, 2007 | 1-32462 PNMR | ||||
10.28** | 2013 Director Compensation Summary | 10.1 to PNMR's Annual Report on Form 10-K for the year ended December 31, 2012 | 1-32462 PNMR | ||||
10.29** | 2012 Director Compensation Summary | 10.7 to PNMR;s Annual Report on Form 10-K for the year ended December 31, 2011 | 1-32462 PNMR | ||||
10.30** | Form of award notice for restricted stock awards and stock options granted to directors under the PEP (restricted stock awards notice also used for 2011 and 2012 officer awards under PEP) | 10.3 to the Company's Current Report on Form 8-K filed March 1, 2011 | 1-32462 PNMR | ||||
10.31** | PNM Resources, Inc. Executive Spending Account Plan (amended and restated effective January 1, 2011) | 10.4 to the Company's Current Report on Form 8-K filed March 1, 2011 | 333-32170 PNMR | ||||
10.32** | PNM Resources, Inc. Executive Savings Plan II (amended and restated effective January 1, 2009) | 4.1 to PNMR's Registration Statement on Form S-8 (333-156243) filed December 17, 2008 | 333-156243 PNMR | ||||
10.33** | First Amendment executed March 28, 2012 to the PNMR Executive Savings Plan II | 10.4 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.34** | PNM Resources, Inc. After-Tax Retirement Plan effective January 1, 2009 | 10.5 to PNMR's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 | 1-32462 PNMR | ||||
10.35** | First Amendment executed March 28, 2012 to the PNMR After-Tax Retirement Plan | 10.5 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.36** | Special Performance-Based Retention Award Agreement between PNMR and Patricia K. Collawn dated March 29, 2012 | 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.37** | Summary of Executive Time Off Policy Effective January 1, 2006 | 10.31 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 | 1-32462 PNMR | ||||
10.38** | Amendment to Corporate Policy Absence from Work Policy 125 executed December 16, 2011 | 10.6 to the Company's Annual Report on Form 10-K for the year ended December 31, 2011 | 1-32462 PNMR | ||||
10.39** | PNM Resources, Inc. Non-Union Severance Pay Plan effective August 1, 2007 (amended and restated) | 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 | 1-32462 PNMR | ||||
10.40** | First Amendment to the PNM Resources Non-Union Severance Pay Plan executed November 20, 2008 | 10.3 to PNMR's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 | 1-32462 PNMR | ||||
10.41** | Second Amendment (executed March 27, 2012) to PNMR Non-Union Severance Pay Plan | 10.8 to PNMR's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.42** | PNM Resources, Inc. Officer Retention Plan executed March 28, 2012 as amended and restated effective as of January 1, 2012 | 10.7 to the Company's Quarterly Report in Form 10-Q for the quarter ended March 31, 2012 | 1-32462 PNMR | ||||
10.43** | PNM Resources Executive Spending Account Plan dated December 9, 2003 | 10.52 to the Company's Annual Report on Form 10-K for fiscal year ended December 31, 2003 | 333-32170 PNMR | ||||
10.44** | First Amendment to PNM Resources Executive Spending Account Plan effective January 1, 2004 | 10.52.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 | 333-32170 PNMR | ||||
10.45** | Second Amendment to PNMR's Executive Spending Account Plan executed August 28, 2008 | 10.2 to PNMR's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 | 1-32462 PNMR | ||||
10.46** | Third Amendment to PNMR's Executive Spending Account Plan effective January 1, 2009 | 10.7 to PNMR's Annual Report on Form 10-K for the year ended December 31, 2008 | 1-32462 PNMR | ||||
10.47** | PNM Resources, Inc. Director Retainer Plan, dated December 31, 2001 | 4.3 to PNM Resources, Inc. Post-Effective Amendment No. 1 to Form S-8 Registration Statement filed December 31, 2001 | 333-03289 PNMR | ||||
10.48** | First Amendment dated February 17, 2003 to PNM Resources, Inc. Director Retainer Plan | 10.40.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 | 333-32170 PNMR | ||||
10.49** | PNM Resources Officer Life Insurance Plan dated April 28, 2004 | 10.24.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 | 333-32170 PNMR | ||||
10.50** | First Amendment to PNM Resources Officer Life Insurance Plan dated December 16, 2004 | 10.27 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004. | 333-32170 PNMR | ||||
10.51** | Second Amendment to PNM Resources Officer Life Insurance Plan executed April 15, 2007 | 10.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 | 1-32462 PNMR | ||||
10.52** | Third Amendment to the PNMR Officer Life Insurance Plan effective January 1, 2009 | 10.10 to PNMR's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 | 1-32462 PNMR | ||||
10.53** | Fourth Amendment to the PNMR Officer Life Insurance Plan effective January 1, 2009 | 10.15 to PNMR's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 | 1-32462 PNMR | ||||
10.54** | Fifth Amendment to the PNM Resources, Inc. Officer Life Insurance Plan executed December 16, 2011 | 10.5 to the Company's Annual Report on Form 10-K for the year ended December 31, 2011 | 1-32462 PNMR | ||||
10.55** | Executive Long Term Disability effective January 1, 2003 | 10.88 to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 | 333-32170 PNMR | ||||
10.56 | Supplemental Indenture of Lease dated as of July 19, 1966 between PNM and other participants in the Four Corners Project and the Navajo Indian Tribal Council | 4-D to PNM's Registration Statement No. 2-26116 | 2-26116 PNM | ||||
10.57 | Amendment and Supplement No. 1 to Supplemental and Additional Indenture of Lease dated April 25, 1985 between the Navajo Tribe of Indians and Arizona Public Service Company, El Paso Electric Company, Public Service Company of New Mexico, Salt River Project Agricultural Improvement and Power District, Southern California Edison Company, and Tucson Electric Power Company (refiled) | 10.1.1 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1995 | 1-6986 PNM | ||||
10.58 | Amendment and Supplement No. 2 to Supplemental and Additional Indenture of Lease with the Navajo Nation dated March 7, 2011 | 10.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-6986 PNM | ||||
10.59 | Amendment and Supplement No. 3 to Supplemental and Additional Indenture of Lease with the Navajo Nation dated March 7, 2011 | 10.2 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-6986 PNM | ||||
10.60 | Water Supply Agreement between the Jicarilla Apache Tribe and Public Service Company of New Mexico, dated July 20, 2000 | 10.5 to PNM's Quarterly Report of Form 10-Q for the quarter ended September 30, 2001 | 1-6986 PNM | ||||
10.61 | Arizona Nuclear Power Project Participation Agreement among PNM and Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, Tucson Gas & Electric Company and El Paso Electric Company, dated August 23, 1973 | 5-T to PNM's Registration Statement No. 2-50338 | 2-50338 PNM | ||||
10.62 | Amendments No. 1 through No. 6 to Arizona Nuclear Power Project Participation Agreement | 10.8.1 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1991 | 1-6986 PNM | ||||
10.63 | Amendment No. 7 effective April 1, 1982, to the Arizona Nuclear Power Project Participation Agreement (refiled) | 10.8.2 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1991 | 1-6986 PNM | ||||
10.64 | Amendment No. 8 effective September 12, 1983, to the Arizona Nuclear Power Project Participation Agreement (refiled) | 10.58 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1993 | 1-6986 PNM | ||||
10.65 | Amendment No. 9 to Arizona Nuclear Power Project Participation Agreement dated as of June 12, 1984 (refiled) | 10.8.4 to PNM's Annual Report of the Registrant on Form 10-K for fiscal year ended December 31, 1994 | 1-6986 PNM | ||||
10.66 | Amendment No. 10 dated as of November 21, 1985 and Amendment No. 11 dated as of June 13, 1986 and effective January 10, 1987 to Arizona Nuclear Power Project Participation Agreement (refiled) | 10.8.5 to PNM's Annual Report of the Registrant on Form 10-K for fiscal year ended December 31, 1995 | 1-6986 PNM | ||||
10.67 | Amendment No. 12 to Arizona Nuclear Power Project Participation Agreement dated June 14, 1988, and effective August 5, 1988 | 19.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 1990 | 1-6986 PNM | ||||
10.68 | Amendment No. 13 to the Arizona Nuclear Power Project Participation Agreement dated April 4, 1990, and effective June 15, 1991 | 10.8.10 to PNM's Annual Report on Form 10-K for the fiscal year ended December 31, 1990 | 1-6986 PNM | ||||
10.69 | Amendment No. 14 to the Arizona Nuclear Power Project Participation Agreement effective June 20, 2000 | 10.8.9 to PNM's Annual Report on Form 10-K for the fiscal year ended December 31, 2000 | 1-6986 PNM | ||||
10.70 | Amendment No. 15 to the Arizona Nuclear Power Project Participation Agreement dated November 29, 2010 and effective January 1, 2010 | 10.1 to PNM's Current Report on Form 8-K filed March 1, 2011 | 1-6986 PNM | ||||
10.71 | Underground Coal Sales Agreement, dated August 31, 2001 among San Juan Coal Company, PNM and Tucson Electric Power Company | 10.85 to PNM's Quarterly Report on Form 10-Q for the quarter ending September 30, 2001 (Confidential treatment was requested for portions of this exhibit, and such portions were omitted from this exhibit filed and were filed separately with the Securities and Exchange Commission) | 1-6986 PNM | ||||
10.72 | Amendment One to Underground Coal Sales Agreement dated December 15, 2003 among San Juan Coal Company, PNM and Tucson Electric Coal Company | 10.9.1 to PNM's Amended Report on Form 10-K for fiscal year ended December 31, 2003 (Confidential treatment was requested for portions of this exhibit, and such portions were omitted from this exhibit filed and were filed separately with the Securities and Exchange Commission) | 1-6986 PNM | ||||
10.73 | Amendment Two to Underground Coal Sales Agreement effective September 15, 2004 among San Juan Coal Company, PNM and Tucson Electric Coal Company | 10.9.2 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 | 1-6986 PNM | ||||
10.74 | Amendment Three to Underground Coal Sales Agreement executed April 29, 2005 among San Juan Coal Company, PNM and Tucson Electric Coal Company (Confidential treatment was requested for portions of this exhibit, and such portions were omitted from this exhibit filed and were filed separately with the Securities and Exchange Commission) | 10.86.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 | 1-6986 PNM | ||||
10.75 | Amendment Four to Underground Coal Sales Agreement effective March 7, 2007 among San Juan Coal Company, PNM and Tucson Electric Coal Company | 10.89 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 | 1-6986 PNM | ||||
10.76 | Amendment Five to Underground Coal Sales Agreement executed December 21, 2007 among San Juan Coal Company, PNM and Tucson Electric Power Company (Confidential treatment was requested for portions of this exhibit, and such portions were omitted from this exhibit filed and were filed separately with the Securities and Exchange Commission) | 10.95 to PNM's Annual Report on Form 10-K for the year ended December 31, 2007 | 1-6986 PNM | ||||
10.77 | Participation Agreement among PNM, Tucson Electric Power Company and certain financial institutions relating to the San Juan Coal Trust dated as of December 31, 1981 (refiled) | 10.14 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1992 | 1-6986 PNM | ||||
10.78 | Participation Agreement dated as of June 30, 1983 among Security Trust Company, as Trustee, PNM, Tucson Electric Power Company and certain financial institutions relating to the San Juan Coal Trust (refiled) | 10.61 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1993 | 1-6986 PNM | ||||
10.79 | Amended and Restated San Juan Project Participation Agreement dated as of March 23, 2006, among Public Service Company of New Mexico, Tucson Electric Power Company, The City of Farmington, New Mexico, M-S-R Public Power Agency, The Incorporated County of Los Alamos, New Mexico, Southern California Public Power Authority, City of Anaheim, Utah Associated Municipal Power System and Tri-State Generation and Transmission Association, Inc. | 10.119 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 30, 2006 | 1-6986 PNM | ||||
10.80* | Facility Lease dated as of December 16, 1985 between The First National Bank of Boston, as Owner Trustee, and Public Service Company of New Mexico together with Amendments No. 1, 2 and 3 thereto (refiled) | 10.18 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1995 | 1-6986 PNM | ||||
10.81* | Amendment No. 4 dated as of March 8, 1995, to Facility Lease between Public Service Company of New Mexico and the First National Bank of Boston, dated as of December 16, 1985 | 10.18.4 to the PNM's Quarterly Report on Form10-Q for the quarter ended March 31, 1995 | 1-6986 PNM | ||||
10.82 | Facility Lease dated as of July 31, 1986, between the First National Bank of Boston, as Owner Trustee, and Public Service Company of New Mexico together with Amendments No. 1, 2 and 3 thereto (refiled) | 10.19 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
10.83 | Facility Lease dated as of August 12, 1986, between The First National Bank of Boston, as Owner Trustee, and Public Service Company of New Mexico together with Amendments No. 1 and 2 thereto (refiled) | 10.20 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
10.84 | Amendment No. 2 dated as of April 10, 1987 to Facility Lease dated as of August 12, 1986, as amended, between The First National Bank of Boston, not in its individual capacity, but solely as Owner Trustee under a Trust Agreement, dated as of August 12, 1986, with MFS Leasing Corp., Lessor and Public Service Company of New Mexico, Lessee (refiled) | 10.20.2 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1998 | 1-6986 PNM | ||||
10.85 | Amendment No. 3 dated as of March 8, 1995, to Facility Lease between Public Service Company of New Mexico and the First National Bank of Boston, dated as of August 12, 1986 | 10.20.3 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1995 | 1-6986 PNM | ||||
10.86 | Facility Lease dated as of December 15, 1986, between The First National Bank of Boston, as Owner Trustee, and Public Service Company of New Mexico (Unit 1 Transaction) together with Amendment No. 1 thereto (refiled) | 10.21 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
10.87 | Facility Lease dated as of December 15, 1986, between The First National Bank of Boston, as Owner Trustee, and Public Service Company of New Mexico Unit 2 Transaction) together with Amendment No. 1 thereto (refiled) | 10.22 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
10.88 | Master Decommissioning Trust Agreement for Palo Verde Nuclear Generating Station dated March 15, 1996, between Public Service Company of New Mexico and Mellon Bank, N.A. | 10.68 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1996 | 1-6986 PNM | ||||
10.89 | Amendment Number One to the Master Decommissioning Trust Agreement for Palo Verde Nuclear Generating Station dated January 27, 1997, between Public Service Company of New Mexico and Mellon Bank, N.A. | 10.68.1 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1997 | 1-6986 PNM | ||||
10.90 | Amendment Number Two to the Master Decommissioning Trust Agreement for Palo Verde Nuclear Generating Station between Public Service Company of New Mexico and Mellon Bank, N.A. | 10.68.2 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 2003 | 1-6986 PNM | ||||
10.91 | Refunding Agreement No. 8A, dated as of December 23, 1997, among PNM, the Owner Participant Named Therein, State Street Bank and Trust Company, as Owner Trustee, The Chase Manhattan Bank, as Indenture Trustee, and First PV Funding Corporation | 10.73 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998 | 1-6986 PNM | ||||
10.92 | PVNGS Capital Trust-Variable Rate Trust Notes-PVNGS Note Agreement dated as of July 31, 1998 | 10.76 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 1998 | 1-6986 PNM | ||||
10.93 | Stipulation in the matter of PNM's transition plan Utility Case No. 3137, dated October 10, 2002 as amended by Amendment to Stipulated Agreement dated October 18, 2002 | 10.86 to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 | 1-6986 PNM | ||||
10.94 | Stipulation dated February 28, 2005 in NMPRC Case No. 04-00315-UT regarding the application of PNM Resources and TNMP for approval of the TNP acquisition | 10.134 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 | 1-32462 PNMR/ TNMP | ||||
10.95 | Settlement Agreement dated February 3, 2005, between PNM Resources, Inc. and Texas-New Mexico Power Company, the cities of Dickenson, Lewisville, La Marque, Ft. Stockton and Friendswood, Texas, the Legal and Enforcement Division of the Public Utility Commission of Texas, the Office of Public Utility Counsel, the Texas Industrial Energy Consumers and the Alliance for Retail Markets | 10.1-10.1.7 to the Company's Current Report on Form 8-K filed February 7, 2005 | 1-32462 PNMR/ TNMP | ||||
10.96 | Consent Decree entered into by PNM on March 9, 2005 relating to the citizen suit under the Clean Air Act and the excess emissions report matter for SJGS | 10.135 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 | 1-6986 PNM | ||||
10.97 | Settlement and Release of Claims Agreement dated February 11, 2010 among PNM, PG&E, SDG&E, CPUC, California ex. rel. Edmund G. Brown, Jr., Attorney General and the California Dept. of Water Resources (collectively, “PNM and the California Parties”) (relating to certain 2000-2001 transactions in California energy markets) | 10.1 to PNM's Current Report on Form 8-K filed February 12, 2010 | 1-6986 PNM | ||||
10.98 | Agreement for Disposition of Escrowed Funds dated January 11, 2010 among PNM and the California Parties | 10.1 to PNM's current Report on Form 8-K filed January 14, 2010 | 1-6986 PNM | ||||
Subsidiaries | |||||||
21 | Certain subsidiaries of PNM Resources | 21 to the Company's Annual Report on Form 10-K for the year ended December 31, 2012 | 1-32462 PNMR | ||||
Additional Exhibits | |||||||
99.1* | Participation Agreement dated as of December 16, 1985, among the Owner Participant named therein, First PV Funding Corporation. The First National Bank of Boston, in its individual capacity and as Owner Trustee (under a Trust Agreement dated as of December 16, 1985 with the Owner Participant), Chemical Bank, in its individual capacity and as Indenture Trustee (under a Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 16, 1985 with the Owner Trustee), and Public Service Company of New Mexico, including Appendix A definitions, together with Amendment No. 1 dated July 15, 1986 and Amendment No. 2 dated November 18, 1986 (refiled) | 99.2 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1995 | 1-6986 PNM | ||||
99.2 | Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 16, 1985, between the First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee together with Supplemental Indentures Nos. 1 and 2 (refiled) | 99.3 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1996 | 1-6986 PNM | ||||
99.3 | Supplemental Indenture No. 3 dated as of March 8, 1995, to Trust Indenture Mortgage, Security Agreement and Assignment of Rents between The First National Bank of Boston and Chemical Bank dated as of December 16, 1985 | 99.3.3 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1995 | 1-6986 PNM | ||||
99.4* | Assignment, Assumption and Further Agreement dated as of December 16, 1985, between Public Service Company of New Mexico and The First National Bank of Boston, as Owner Trustee | 28(c) to PNM's Current Report on Form 8-K dated December 31, 1985 | 1-6986 PNM | ||||
99.5 | Participation Agreement dated as of July 31, 1986, among the Owner Participant named herein, First PV Funding Corporation, The First National Bank of Boston, in its individual capacity and as Owner Trustee (under a Trust Agreement dated as of July 31, 1986, with the Owner Participant), Chemical Bank, in its individual capacity and as Indenture Trustee (under a Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of July 31, 1986, with the Owner Trustee), and Public Service Company of New Mexico, including Appendix A definitions together with Amendment No. 1 thereto (refiled) | 99.5 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.6 | Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of July 31, 1986, between The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee together with Supplemental Indenture No. 1 thereto (refiled) | 99.6 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.7 | Assignment, Assumption, and Further Agreement dated as of July 31, 1986, between Public Service Company of New Mexico and The First National Bank of Boston, as Owner Trustee (refiled) | 99.7 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.8 | Participation Agreement dated as of August 12, 1986, among the Owner Participant named therein, First PV Funding Corporation. The First National Bank of Boston, in its individual capacity and as Owner Trustee (under a Trust Agreement dated as of August 12, 1986, with the Owner Participant), Chemical Bank, in its individual capacity and as Indenture Trustee (under a Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of August 12, 1986, with the Owner Trustee), and Public Service Company of New Mexico, including Appendix A definitions (refiled) | 99.8 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.9* | Amendment No. 1 dated as of November 18, 1986, to Participation Agreement dated as of August 12, 1986 (refiled) | 99.8.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.10* | Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of August 12, 1986, between the First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee together with Supplemental Indenture No. 1 thereto (refiled) | 99.9 to PNM's Annual Report of the Registrant on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.11 | Supplemental Indenture No. 2 dated as of March 8, 1995, to Trust Indenture, Mortgage, Security Agreement and Assignment of Rents between The First National Bank of Boston and Chemical Bank dated as of August 12, 1986 (refiled) | 99.9.1 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1995 | 1-6986 PNM | ||||
99.12* | Assignment, Assumption, and Further Agreement dated as of August 12, 1986, between Public Service Company of New Mexico and The First National Bank of Boston, as Owner Trustee (refiled) | 99.10 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.13* | Participation Agreement dated as of December 15, 1986, among the Owner Participant named therein, First PV Funding Corporation, The First National Bank of Boston, in its individual capacity and as Owner Trustee (under a Trust Agreement dated as of December 15, 1986, with the Owner Participant), Chemical Bank, in its individual capacity and as Indenture Trustee (under a Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 15, 1986, with the Owner Trustee), and Public Service Company of New Mexico, including Appendix A definitions (Unit 1 Transaction) (refiled) | 99.11 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.14 | Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 15, 1986, between The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee (Unit 1 Transaction) (refiled) | 99.12 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.15 | Assignment, Assumption and Further Agreement dated as of December 15, 1986, between Public Service Company of New Mexico and The First National Bank of Boston, as Owner Trustee (Unit 1 Transaction) (refiled) | 99.13 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.16 | Participation Agreement dated as of December 15, 1986, among the Owner Participant named therein, First PV Funding Corporation, The First National Bank of Boston, in its individual capacity and as Owner Trustee (under a Trust Agreement dated as of December 15, 1986, with the Owner Participant), Chemical Bank, in its individual capacity and as Indenture Trustee (under a Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 15, 1986, with the Owner Trustee), and Public Service Company of New Mexico, including Appendix A definitions (Unit 2 Transaction) (refiled) | 99.14 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.17 | Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 31, 1986, between the First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee (Unit 2 Transaction) (refiled) | 99.15 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.18 | Assignment, Assumption, and Further Agreement dated as of December 15, 1986, between Public Service Company of New Mexico and The First National Bank of Boston, as Owner Trustee (Unit 2 Transaction) (refiled) | 99.16 to PNM's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 | 1-6986 PNM | ||||
99.19* | Waiver letter with respect to “Deemed Loss Event” dated as of August 18, 1986, between the Owner Participant named therein, and Public Service Company of New Mexico (refiled) | 99.17 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.20* | Waiver letter with respect to Deemed Loss Event” dated as of August 18, 1986, between the Owner Participant named therein, and Public Service Company of New Mexico (refiled) | 99.18 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.21 | Agreement No. 13904 (Option and Purchase of Effluent), dated April 23, 1973, among Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, the Cities of Phoenix, Glendale, Mesa, Scottsdale, and Tempe, and the Town of Youngtown (refiled) | 99.19 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.22 | Agreement for the Sale and Purchase of Wastewater Effluent, dated June 12, 1981, Among Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District and the City of Tolleson, as amended (refiled) | 99.20 to PNM's Annual Report on Form 10-K for fiscal year ended December 31, 1996 | 1-6986 PNM | ||||
99.23 | Municipal Effluent Purchase and Sale Agreement dated April 23, 2010 between Cities of Phoenix, Mesa, Tempe, Scottsdale and Glendale, Arizona municipal corporations; and APS, SRP, acting on behalf of themselves and EPE, SCE, PNM, SCPPA, and Los Angeles Department of Water and Power | 10.6 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 | 1-6986 PNM | ||||
99.24* | 1996 Supplemental Indenture dated as of September 27, 1996 to Trust Indenture, Mortgage, Security Agreement and Assignment of Rents dated as of December 16, 1985 between State Street Bank and Trust Company, as Owner Trustee, and The Chase Manhattan Bank, as Indenture Trustee | 99.21 to PNM's Quarterly Report on Form 10-Q for the quarter ended September 30, 1996 | 1-6986 PNM | ||||
99.25 | 1997 Supplemental Indenture, dated as of December 23, 1997, to Trust Indenture, Mortgage, Security Agreement and Assignment of Rents, dated as of August 12, 1986, between State Street Bank and Trust, as Owner Trustee, and The Chase Manhattan Bank, as Indenture Trustee | 99.22 to the Company's Annual Report on Form 10-K for the year ended December 31, 2006 | 1-6986 PNM |
PNM RESOURCES, INC. | ||||
(Registrant) | ||||
Date: | March 1, 2013 | By | /s/ P. K. Collawn | |
P. K. Collawn | ||||
Chairman, President, and Chief Executive Officer |
Signature | Capacity | Date | |
/s/ P. K. Collawn | Principal Executive Officer and Director | March 1, 2013 | |
P. K. Collawn | |||
Chairman, President, and | |||
Chief Executive Officer | |||
/s/ C. N. Eldred | Principal Financial Officer | March 1, 2013 | |
C. N. Eldred | |||
Executive Vice President and | |||
Chief Financial Officer | |||
/s/ T. G. Sategna | Principal Accounting Officer | March 1, 2013 | |
T. G. Sategna | |||
Vice President and | |||
Corporate Controller | |||
/s/ A. E. Archuleta | Director | March 1, 2013 | |
A. E. Archuleta | |||
/s/ J. A. Dobson | Director | March 1, 2013 | |
J. A. Dobson | |||
/s/ A. J. Fohrer | Director | March 1, 2013 | |
A. J. Fohrer | |||
/s/ R. R. Nordhaus | Director | March 1, 2013 | |
R. R. Nordhaus | |||
/s/ M. T. Pacheco | Director | March 1, 2013 | |
M. T. Pacheco | |||
/s/ B. S. Reitz | Director | March 1, 2013 | |
B. S. Reitz | |||
/s/ D. K. Schwanz | Director | March 1, 2013 | |
D. K. Schwanz | |||
/s/ B. W. Wilkinson | Director | March 1, 2013 | |
B. W. Wilkinson | |||
/s/ J. B. Woodard | Director | March 1, 2013 | |
J. B. Woodard |
PUBLIC SERVICE COMPANY OF NEW MEXICO | ||||
(Registrant) | ||||
Date: | March 1, 2013 | By | /s/ P. K. Collawn | |
P. K. Collawn | ||||
President and Chief Executive Officer |
Signature | Capacity | Date | |
/s/ P. K. Collawn | Principal Executive Officer and Chairman of the Board | March 1, 2013 | |
P. K. Collawn | |||
President and | |||
Chief Executive Officer | |||
/s/ C. N. Eldred | Principal Financial Officer and Director | March 1, 2013 | |
C. N. Eldred | |||
Executive Vice President and | |||
Chief Financial Officer | |||
/s/ T. G. Sategna | Principal Accounting Officer | March 1, 2013 | |
T. G. Sategna | |||
Vice President and | |||
Corporate Controller | |||
/s/ R. N. Darnell | Director | March 1, 2013 | |
R. N. Darnell | |||
/s/ R. E. Talbot | Director | March 1, 2013 | |
R. E. Talbot |
TEXAS-NEW MEXICO POWER COMPANY | ||||
(Registrant) | ||||
Date: | March 1, 2013 | By | /s/ P. K. Collawn | |
P. K. Collawn | ||||
Chief Executive Officer |
Signature | Capacity | Date | |
/s/ P. K. Collawn | Principal Executive Officer and Chairman of the Board | March 1, 2013 | |
P. K. Collawn | |||
Chief Executive Officer | |||
/s/ T. G. Sategna | Principal Financial Officer and Principal Accounting Officer | March 1, 2013 | |
T. G. Sategna | |||
Vice President and | |||
Controller | |||
/s/ R. N. Darnell | Director | March 1, 2013 | |
R. N. Darnell | |||
/s/ C. N. Eldred | Director | March 1, 2013 | |
C. N. Eldred | |||
/s/ R. E. Talbot | Director | March 1, 2013 | |
R. E. Talbot | |||
/s/ J. N. Walker | Director | March 1, 2013 | |
J. N. Walker |
Annual Retainer: | Restricted stock rights* with a grant date market value of $65,000; and an annual cash retainer of $52,500 paid in quarterly installments | |
Annual Presiding Lead Director Fee: | $20,000 paid in quarterly installments | |
Annual Committee Chair Fee: | $ 5,000 paid in quarterly installments (in addition to meeting attendance fees), except that the annual chair fee for the Audit and Ethics Committee and Compensation and Human Resources Committee is $10,000 | |
Committee Meeting Attendance Fees: | $ 1,500 per Board Committee meeting |
Exhibit 12.1 | ||||||||||||||||||||||
PNM RESOURCES, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||||||
(In thousands, except ratio) | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Fixed charges, as defined by the Securities and Exchange Commission: | ||||||||||||||||||||||
Interest expensed and capitalized | $ | 125,379 | $ | 122,998 | $ | 123,633 | $ | 123,833 | $ | 134,958 | ||||||||||||
Amortization of debt premium, discount and expenses | 4,023 | 3,695 | 4,627 | 5,430 | 6,386 | |||||||||||||||||
Interest from discontinued operations (including capitalized interest) | — | — | — | 1,027 | 13,758 | |||||||||||||||||
Estimated interest factor of lease rental charges | 5,585 | 6,665 | 6,888 | 7,034 | 7,894 | |||||||||||||||||
Preferred dividend requirements of subsidiary | 769 | 864 | 1,075 | 759 | 689 | |||||||||||||||||
Total Fixed Charges | $ | 135,756 | $ | 134,222 | $ | 136,223 | $ | 138,083 | $ | 163,685 | ||||||||||||
Earnings, as defined by the Securities and Exchange Commission: | ||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and non-controlling interest | $ | 175,035 | $ | 321,469 | $ | (63,379 | ) | $ | 94,751 | $ | (388,381 | ) | ||||||||||
(Earnings) loss of equity investee | — | — | 15,223 | 30,145 | 29,687 | |||||||||||||||||
Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings | 175,035 | 321,469 | (48,156 | ) | 124,896 | (358,694 | ) | |||||||||||||||
Fixed charges as above | 135,756 | 134,222 | 136,223 | 138,083 | 163,685 | |||||||||||||||||
Interest capitalized | (5,432 | ) | (2,697 | ) | (3,401 | ) | (7,743 | ) | (8,849 | ) | ||||||||||||
Non-controlling interest in earnings of Valencia | (14,050 | ) | (14,047 | ) | (13,563 | ) | (11,890 | ) | (7,179 | ) | ||||||||||||
Preferred dividend requirements of subsidiary | (769 | ) | (864 | ) | (1,075 | ) | (759 | ) | (689 | ) | ||||||||||||
Earnings Available for Fixed Charges | $ | 290,540 | $ | 438,083 | $ | 70,028 | $ | 242,587 | $ | (211,726 | ) | |||||||||||
Ratio of Earnings to Fixed Charges | 2.14 | 3.26 | 1 | 0.51 | 2 | 1.76 | N/M | 3 | ||||||||||||||
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss of $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 3.42. In addition, 2011 includes a pre-tax gain on the sale of First Choice of $174.9 million. If that gain were also excluded, the Ratio of Earnings to Fixed Charges would have been 1.96. | ||||||||||||||||||||||
2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010. Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR's investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90. | ||||||||||||||||||||||
3 The ratio of earnings to fixed charges for the year ended December 31, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008. |
Exhibit 12.2 | |||||||||||||||||||||
PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||||||||||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||||||
(In thousands, except ratio) | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Fixed charges, as defined by the Securities and Exchange Commission: | |||||||||||||||||||||
Interest expensed and capitalized | $ | 82,864 | $ | 75,217 | $ | 73,423 | $ | 73,104 | $ | 72,427 | |||||||||||
Amortization of debt premium, discount and expenses | 1,818 | 1,325 | 1,274 | 1,336 | 4,345 | ||||||||||||||||
Interest from discontinued operations (including capitalized interest) | — | — | — | 1,027 | 13,758 | ||||||||||||||||
Estimated interest factor of lease rental charges | 3,743 | 4,139 | 4,103 | 4,517 | 4,553 | ||||||||||||||||
Total Fixed Charges | $ | 88,425 | $ | 80,681 | $ | 78,800 | $ | 79,984 | $ | 95,083 | |||||||||||
Earnings, as defined by the Securities and Exchange Commission: | |||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and non-controlling interest | $ | 156,314 | $ | 105,965 | $ | 107,288 | $ | 45,627 | $ | (69,324 | ) | ||||||||||
Fixed charges as above | 88,425 | 80,681 | 78,800 | 79,984 | 95,083 | ||||||||||||||||
Non-controlling interest in earnings of Valencia | (14,050 | ) | (14,047 | ) | (13,563 | ) | (11,890 | ) | (7,179 | ) | |||||||||||
Interest capitalized | (4,314 | ) | (1,761 | ) | (2,811 | ) | (6,067 | ) | (7,363 | ) | |||||||||||
Earnings Available for Fixed Charges | $ | 226,375 | $ | 170,838 | $ | 169,714 | $ | 107,654 | $ | 11,217 | |||||||||||
Ratio of Earnings to Fixed Charges | 2.56 | 2.12 | 1 | 2.15 | 1.35 | 0.12 | 2 | ||||||||||||||
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss of $17.5 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.33. | |||||||||||||||||||||
2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $83.9 million for the year December 31, 2008. |
Exhibit 12.3 | ||||||||||||||||||||
TEXAS-NEW MEXICO POWER COMPANY | ||||||||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||||
(In thousands, except ratio) | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Fixed charges, as defined by the Securities and Exchange Commission: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 26,233 | $ | 27,914 | $ | 28,632 | $ | 25,609 | $ | 17,861 | ||||||||||
Amortization of debt premium, discount and expenses | 1,493 | 1,679 | 2,683 | 3,355 | 1,504 | |||||||||||||||
Estimated interest factor of lease rental charges | 956 | 1,202 | 1,246 | 831 | 571 | |||||||||||||||
Total Fixed Charges | $ | 28,682 | $ | 30,795 | $ | 32,561 | $ | 29,795 | $ | 19,936 | ||||||||||
Earnings, as defined by the Securities and Exchange Commission: | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 42,099 | $ | 36,138 | $ | 26,026 | $ | 20,151 | $ | 2,335 | ||||||||||
Fixed charges as above | 28,682 | 30,795 | 32,561 | 29,795 | 19,936 | |||||||||||||||
Interest capitalized | (706 | ) | (593 | ) | (158 | ) | (1,144 | ) | (1,025 | ) | ||||||||||
Earnings Available for Fixed Charges | $ | 70,075 | $ | 66,340 | $ | 58,429 | $ | 48,802 | $ | 21,246 | ||||||||||
Ratio of Earnings to Fixed Charges | 2.44 | 2.15 | 1 | 1.79 | 1.64 | 1.07 | ||||||||||||||
1 Earnings from continuing operations before income taxes for the year ended December 31, 2011 includes a pre-tax loss of $3.9 million due to the write-off of regulatory disallowances. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.28. |
1. | I have reviewed this Annual Report on Form 10-K of PNM Resources, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (each registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
PNM Resources, Inc. |
1. | I have reviewed this Annual Report on Form 10-K of PNM Resources, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (each registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Charles N. Eldred | ||
Charles N. Eldred | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
PNM Resources, Inc. |
1. | I have reviewed this Annual Report on Form 10-K of Public Service Company of New Mexico; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (each registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
Public Service Company of New Mexico |
1. | I have reviewed this Annual Report on Form 10-K of Public Service Company of New Mexico; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (each registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Charles N. Eldred | ||
Charles N. Eldred | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
Public Service Company of New Mexico |
1. | I have reviewed this Annual Report on Form 10-K of Texas-New Mexico Power Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
Texas-New Mexico Power Company |
1. | I have reviewed this Annual Report on Form 10-K of Texas-New Mexico Power Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 1, 2013 | By: | /s/ Thomas G. Sategna | ||
Thomas G. Sategna | |||||
Vice President and Controller | |||||
Texas-New Mexico Power Company |
(1) | the Report fully complies with the requirements of § 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
PNM Resources, Inc. | |||||
By: | /s/ Charles N. Eldred | ||||
Charles N. Eldred | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
PNM Resources, Inc. |
(1) | the Report fully complies with the requirements of § 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
Public Service Company of New Mexico | |||||
By: | /s/ Charles N. Eldred | ||||
Charles N. Eldred | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
Public Service Company of New Mexico |
(1) | the Report fully complies with the requirements of § 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 1, 2013 | By: | /s/ Patricia K. Collawn | ||
Patricia K. Collawn | |||||
President and Chief Executive Officer | |||||
Texas-New Mexico Power Company | |||||
By: | /s/ Thomas G. Sategna | ||||
Thomas G. Sategna | |||||
Vice President, Controller | |||||
Texas-New Mexico Power Company |
Fair Value of Derivative and Other Financial Instruments (Tables)
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Dec. 31, 2012
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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, recorded at fair value are summarized as follows:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents the effect of mark-to-market commodity derivative instruments on earnings and OCI, excluding income tax effects. For cash flow hedges, including de-designated hedges, the earnings impact reflects the reclassification from AOCI when the hedged transactions settle.
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | 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:
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Schedule of Collateral Related to Derivative [Table Text Block] |
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Available-for-sale Securities [Table Text Block] | The fair value and gross unrealized gains of investments in available-for-sale securities are presented in the following table.
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Schedule of Realized Gain (Loss) [Table Text Block] | Realized gains and losses are determined by specific identification of costs of securities sold.
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Investments Classified by Contractual Maturity Date [Table Text Block] | At December 31, 2012, the available-for-sale and held-to-maturity debt securities had the following final maturities:
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | Items recorded at fair value on the Consolidated Balance Sheets are presented below:
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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:
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Fair Value, by Balance Sheet Grouping [Table Text Block] | 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 Consolidated Balance Sheets are presented below:
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Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The fair values of investments held by the employee benefit plans are as follows:
The fair values of investments in the PNMR Master Trust are as follows:
A reconciliation of the changes in Level 3 fair value measurements is as follows:
Additional information concerning changes in Level 3 fair value measurements for the PNMR Master Trust is as follows: Level 3 Fair Value Assets and Liabilities
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Related Party Transactions (Tables)
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Dec. 31, 2012
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP:
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Fair Value of Derivative and Other Financial Instruments, Debt Maturities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
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PNMR and PNM [Member]
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Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |
Available-for-sale debt securities, Within 1 year | $ 2,374 |
Available-for-sale debt securities, After 1 year through 5 years | 29,342 |
Available-for-sale debt securities, After 5 years through 10 years | 15,943 |
Available-for-sale debt securities, After 10 years through 15 years | 8,700 |
Available-for-sale debt securities, After 15 years through 20 years | 11,217 |
Available-for-sale debt securities, After 20 years | 23,745 |
Available-for-sale debt securities | 91,321 |
PNM Resources [Member]
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Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Held-to-maturity debt securities, Due within 1 year | 3,695 |
Held-to-maturity debt securities, After 1 year through 5 years | 85,520 |
Held-to-maturity debt securities, After 5 years through 10 years | 0 |
Held-to-maturity debt securities | 89,215 |
Public Service Company of New Mexico [Member]
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Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Held-to-maturity debt securities, Due within 1 year | 0 |
Held-to-maturity debt securities, After 1 year through 5 years | 84,198 |
Held-to-maturity debt securities, After 5 years through 10 years | 0 |
Held-to-maturity debt securities | $ 84,198 |
Segment Information (Narrative and Major Customers) (Details) (Sales [Member])
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12 Months Ended | ||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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First Choice [Member]
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Concentration Risk [Line Items] | |||
Operating revenues from continuing operations (as a percent) | 19.00% | 17.00% | 18.00% |
Unaffiliated Customer of Texas-New Mexico Power Company One [Member]
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Concentration Risk [Line Items] | |||
Operating revenues from continuing operations (as a percent) | 17.00% | 19.00% | 19.00% |
Unaffiliated Customer of Texas-New Mexico Power Company Two [Member]
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Concentration Risk [Line Items] | |||
Operating revenues from continuing operations (as a percent) | 10.00% | 12.00% | 13.00% |
PNMR and PNM [Member] | Maximum [Member]
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Concentration Risk [Line Items] | |||
Operating revenues from continuing operations (as a percent) | 10.00% |
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
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Dec. 31, 2011
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Components of Deferred Tax Assets [Abstract] | ||
Net operating loss | $ 110,989 | $ 86,985 |
Pension | 26,452 | 50,515 |
Regulatory liabilities related to income taxes | 53,439 | 49,413 |
Other | 129,801 | 109,875 |
Total deferred tax assets | 320,681 | 296,788 |
Components of Deferred Tax Liabilities [Abstract] | ||
Depreciation and plant related | (759,587) | (697,528) |
Investment tax credit | (14,242) | (15,771) |
Regulatory assets related to income taxes | (59,471) | (56,312) |
Stranded costs | (24,934) | (28,439) |
Other | (178,492) | (168,688) |
Total deferred tax liabilities | (1,036,726) | (966,738) |
Deferred Tax Assets (Liabilities), Net [Abstract] | ||
Net accumulated deferred income tax liabilities | (716,045) | (669,950) |
Current accumulated deferred income tax (asset) liability | 258 | 9,080 |
Non-current accumulated deferred income tax liability | (715,787) | (660,870) |
Texas-New Mexico Power Company [Member]
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Components of Deferred Tax Assets [Abstract] | ||
Regulatory liabilities related to income taxes | 5,412 | 5,835 |
Other | 16,702 | 16,043 |
Total deferred tax assets | 22,114 | 21,878 |
Components of Deferred Tax Liabilities [Abstract] | ||
Depreciation and plant related | (133,686) | (125,270) |
Regulatory assets related to income taxes | (10,745) | (10,981) |
Stranded costs | (24,934) | (28,439) |
Other | (15,328) | (14,113) |
Total deferred tax liabilities | (184,693) | (178,803) |
Deferred Tax Assets (Liabilities), Net [Abstract] | ||
Net accumulated deferred income tax liabilities | (162,579) | (156,925) |
Current accumulated deferred income tax (asset) liability | (1,131) | (2,272) |
Non-current accumulated deferred income tax liability | (163,710) | (159,197) |
Public Service Company of New Mexico [Member]
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Components of Deferred Tax Assets [Abstract] | ||
Net operating loss | 93,980 | 72,615 |
Pension | 32,532 | 54,270 |
Regulatory liabilities related to income taxes | 48,027 | 43,578 |
Other | 55,629 | 47,263 |
Total deferred tax assets | 230,168 | 217,726 |
Components of Deferred Tax Liabilities [Abstract] | ||
Depreciation and plant related | (624,724) | (570,278) |
Investment tax credit | (14,242) | (15,771) |
Regulatory assets related to income taxes | (48,726) | (45,331) |
Other | (134,046) | (123,098) |
Total deferred tax liabilities | (821,738) | (754,478) |
Deferred Tax Assets (Liabilities), Net [Abstract] | ||
Net accumulated deferred income tax liabilities | (591,570) | (536,752) |
Current accumulated deferred income tax (asset) liability | 3,447 | 16,562 |
Non-current accumulated deferred income tax liability | $ (588,123) | $ (520,190) |
Quarterly Operating Results (Unaudited) (Details) (USD $)
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3 Months Ended | 12 Months Ended | |||||||||||||||
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Mar. 31, 2011
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | $ 322,758,000 | $ 390,411,000 | $ 323,860,000 | $ 305,374,000 | $ 347,872,000 | $ 549,498,000 | $ 415,586,000 | $ 387,663,000 | $ 1,342,403,000 | $ 1,700,619,000 | $ 1,673,517,000 | ||||||
Operating income | 36,736,000 | 118,150,000 | 65,106,000 | 53,729,000 | 63,935,000 | 108,284,000 | 32,860,000 | 52,220,000 | 273,721,000 | 257,299,000 | 239,452,000 | ||||||
Net earnings | 12,573,000 | 61,976,000 | 25,099,000 | 20,477,000 | 115,408,000 | [1] | 47,905,000 | [1] | 7,669,000 | [1] | 19,952,000 | [1] | 120,125,000 | 190,934,000 | (31,124,000) | ||
Net Earnings (Loss) Attributable to PNMR | 9,091,000 | 57,864,000 | 21,512,000 | 17,080,000 | 111,993,000 | 43,662,000 | 4,067,000 | 16,637,000 | 105,547,000 | 176,359,000 | (45,215,000) | ||||||
Net Earnings (Loss) Attributable to PNMR per Common Share: | |||||||||||||||||
Basic (dollars per share) | $ 0.11 | $ 0.73 | $ 0.27 | $ 0.21 | $ 1.36 | $ 0.48 | $ 0.04 | $ 0.18 | $ 1.32 | $ 1.98 | $ (0.49) | ||||||
Diluted (dollars per share) | $ 0.11 | $ 0.72 | $ 0.27 | $ 0.21 | $ 1.35 | $ 0.48 | $ 0.04 | $ 0.18 | $ 1.31 | $ 1.96 | $ (0.49) | ||||||
Gain on sale of business segment | 1,012,000 | 174,925,000 | 0 | ||||||||||||||
Public Service Company of New Mexico [Member]
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Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 260,023,000 | 321,731,000 | 260,094,000 | 250,416,000 | 260,057,000 | 323,760,000 | 239,234,000 | 234,238,000 | 1,092,264,000 | 1,057,289,000 | 1,017,128,000 | ||||||
Operating income | 20,135,000 | 96,973,000 | 46,669,000 | 42,105,000 | 44,821,000 | 87,914,000 | 10,543,000 | 18,165,000 | 205,882,000 | 161,443,000 | 148,122,000 | ||||||
Net earnings | 9,293,000 | 54,891,000 | 20,340,000 | 21,077,000 | 16,905,000 | 42,572,000 | 2,097,000 | 6,964,000 | 105,601,000 | 68,538,000 | 70,861,000 | ||||||
Net Earnings (Loss) Attributable to PNMR | 5,943,000 | 50,911,000 | 16,885,000 | 17,812,000 | 13,622,000 | 38,461,000 | (1,373,000) | 3,781,000 | 91,551,000 | 54,491,000 | 57,298,000 | ||||||
Texas-New Mexico Power Company [Member]
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Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 62,736,000 | 68,680,000 | 63,766,000 | 54,958,000 | 57,076,000 | 66,983,000 | 59,957,000 | 53,842,000 | 250,140,000 | 237,858,000 | 212,588,000 | ||||||
Operating income | 15,862,000 | 20,970,000 | 18,897,000 | 11,791,000 | 14,872,000 | 21,551,000 | 13,695,000 | 13,724,000 | 67,520,000 | 63,842,000 | 56,411,000 | ||||||
Net Earnings (Loss) Attributable to PNMR | 6,634,000 | 9,084,000 | 8,018,000 | 3,011,000 | 5,124,000 | 8,868,000 | 4,102,000 | 4,163,000 | 26,747,000 | 22,257,000 | 15,982,000 | ||||||
First Choice [Member]
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Net Earnings (Loss) Attributable to PNMR per Common Share: | |||||||||||||||||
Gain on sale of business segment | 174,900,000 | 174,900,000 | |||||||||||||||
Gain on sale of business segment, net of tax | $ 97,000,000 | ||||||||||||||||
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Asset Retirement Obligations (Tables)
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Dec. 31, 2012
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset Retirement Obligations [Table Text Block] | A reconciliation of ARO is as follows:
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Summary of Business and Significant Accounting Policies (Policies)
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12 Months Ended |
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Dec. 31, 2012
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Accounting Policies [Abstract] | |
Principles of Consolidation | The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates the PVNGS Capital Trust and Valencia. PNM owns undivided interests in several jointly-owned power plants and records its pro-rata share of the assets, liabilities, and expenses for those plants. PNMR shared services’ administrative and general expenses, which represent costs that are primarily driven by corporate level activities, are charged to the business segments. These services are billed at cost, except those services billed to Optim Energy, which included a profit element. Other significant intercompany transactions between PNMR, PNM, and TNMP include transmission and distribution services; lease, interest, and income tax sharing payments; and dividends paid on common stock. All intercompany transactions and balances have been eliminated. |
Accounting for the Effects of Certain Types of Regulation | The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of FERC, the NMPRC, and the PUCT. Information on regulatory assets and regulatory liabilities is contained in Note 4. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. |
Cash and Cash Equivalents | Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash equivalents. |
Utility Plant | Utility plant is stated at cost, which includes capitalized payroll-related costs such as taxes, pension, and other fringe benefits, administrative costs and AFUDC where authorized by rate regulation. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains or losses resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to the accumulated provision for depreciation. |
Allowance for Funds Used During Construction | As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is a non-cash item designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction) and a return on other funds (allowance for equity funds used during construction). |
Capitalized Interest | PNMR capitalizes interest on its construction projects and major computer software projects not subject to the computation of AFUDC. |
Carrying Charges on Stranded Costs | TNMP’s estimate of allowable carrying charges on stranded costs that it may recover from its transmission and distribution customers is based on a Texas Supreme Court ruling and the PUCT’s application of that ruling. |
Materials, Supplies, and Fuel Stock | Materials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Periodic aerial surveys are performed on the coal piles and adjustments are made. |
Investments | The Company’s other investments, including the NDT, are primarily comprised of international, United States, state, and municipal government obligations and corporate debt and equity securities. All investments are held in the Company’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. At December 31, 2012 and 2011, substantially all of these investments were classified as available for sale. PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS and, beginning in August 2012, a trust for PNM's share of post-term reclamation costs related to the coal mines serving SJGS (Note 16). PNM evaluates these investment securities for impairment on an on-going basis. Since third party investment managers have sole discretion over the purchase and sales of the NDT securities, PNM records a realized loss as an impairment for any security that has a market value that is less than cost at the end of each quarter. For the years ended December 31, 2012, 2011, and 2010, PNM recorded impairment losses on securities held in the NDT of $4.8 million, $12.5 million, and $5.0 million. No gains or losses are deferred as regulatory assets or liabilities. Unrealized gains on these investments are included in other comprehensive income, net of any related tax effect. |
Equity Method Investments | Through September 23, 2011, PNMR accounted for its investment in Optim Energy using the equity method of accounting because PNMR’s ownership interest resulted in significant influence, but not control, over Optim Energy and its operations. |
Cost Method Investments | On September 23, 2011, PNMR's ownership interest in Optim Energy was reduced to 1% and PNMR began using the cost method of accounting. |
Goodwill and Other Intangible Assets | Under GAAP, the Company does not amortize goodwill. Certain intangible assets are amortized over their estimated useful lives. Goodwill and non-amortizable other intangible assets are evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill and intangible assets might be impaired. Amortizable other intangible assets are amortized over the shorter of their economic or legal lives and are evaluated for impairment when events and circumstances indicate that the assets might be impaired. |
Asset Impairment | Tangible long-lived assets are evaluated in relation to the future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. |
Revenue Recognition | Operating revenues are recorded in the period of energy delivery, which includes estimated amounts for service rendered but unbilled at the end of each accounting period. The determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading and the corresponding unbilled revenue are estimated. Unbilled electric revenue is estimated based on the daily generation volumes, estimated customer usage by class, weather factors, line losses, and applicable customer rates reflecting historical trends and experience. PNM’s wholesale electricity sales are recorded as operating revenues and the wholesale electricity purchases are recorded as costs of energy sold. In accordance with GAAP, derivative contracts that are net settled or “booked-out” are recorded net in earnings. A book-out is the planned or unplanned netting of off-setting purchase and sale transactions. A book-out is a transmission mechanism to reduce congestion on the transmission system or administrative burden. For accounting purposes, a book-out is the recording of net revenues upon the settlement of a derivative contract. Unrealized gains and losses on contracts that do not qualify for the normal purchases or normal sales exception or are not designated for hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power agreements, used to hedge generation assets and purchased power costs. Changes in the fair value of economic hedges are reflected in results of operations, with changes related to economic hedges on sales included in operating revenues and changes related to economic hedges on purchases included in cost of energy sold. The Company has no trading transactions. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company calculates the allowance for uncollectible accounts based on historical experience and estimated default rates by customer class applied to corresponding accounts receivable balances net of customer deposit coverage. The accounts receivable balances are reviewed monthly and adjustments to the allowance for uncollectible accounts and bad debt expense are made as necessary. Amounts that are deemed uncollectible are written off. |
Depreciation and Amortization | PNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation of non-utility property is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between depreciation expense and construction projects based on the use of the equipment. |
Amortization of Debt Acquisition Costs | Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or deductions, except for amounts attributable to NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. |
Derivatives | The Company records derivative instruments, other than those designated as normal purchases or sales, in the balance sheet as either an asset or liability measured at their fair value. GAAP requires that changes in the derivatives’ fair value be recognized currently in earnings unless specific hedge accounting or normal purchase or sale criteria are met. For qualifying hedges, an entity must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. GAAP provides that the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument be reported as a component of AOCI and be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. The results of hedge ineffectiveness and the portion of the change in fair value of a derivative that an entity has chosen to exclude from hedge effectiveness are required to be presented in current earnings. See Note 8. The Company treats all forward electric purchases and sales contracts subject to unplanned netting or book-out by the transmission provider as derivative instruments subject to mark-to-market accounting, unless the contract qualifies for the normal exception by meeting the definition of a capacity contract. Under this definition, the contract cannot permit net settlement, the seller must have the resources to serve the contract, and the buyer must be a load serving entity. GAAP gives guidance on whether realized gains and losses on derivative contracts not held for trading purposes should be reported on a net or gross basis and concludes such classification is a matter of judgment that depends on the relevant facts and circumstances. Changes in the fair value of economic hedges are reflected in results of operations and are classified between operating revenues and cost of energy according to the intent of the economic hedge. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, the Company accounts for its various derivative instruments for the purchase and sale of energy based on the Company’s intent. Energy contracts that meet the definition of a derivative under GAAP and do not qualify, or are not designated, for the normal sales and purchases exception are recorded on the balance sheet at fair value at each period end. The changes in fair value are recognized in earnings unless specific hedge accounting criteria are met and elected. Normal sales and purchases are not marked to market and are reflected in results of operations when the underlying transactions settle. For derivative transactions meeting the definition of a cash flow hedge, the Company documents the relationships between the hedging instruments and the items being hedged. This documentation includes the strategy that supports executing the specific transaction and the methods utilized to assess the effectiveness of the hedges. Changes in the fair value of contracts qualifying for cash flow hedge accounting are included in AOCI to the extent effective. The Company assesses the effectiveness of hedge relationships at least quarterly using statistical data. Ineffectiveness gains and losses were immaterial for all periods presented. Gains or losses related to cash flow hedge instruments, including those de-designated, are reclassified from AOCI when the hedged transaction settles and impacts earnings. As of December 31, 2012 and 2011, the Company was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flows hedges. The contracts recorded at fair value that do not qualify or are not designated for cash flow hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power agreements, used to economically hedge generation assets, purchased power and fuel costs, and customer load requirements. Changes in the fair value of economic hedges are reflected in results of operations and are classified between operating revenues and cost of energy according to the intent of the hedge. The Company has no trading transactions. Fair value is defined under GAAP as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is based on current market quotes as available and is supplemented by modeling techniques and assumptions made by the Company to the extent quoted market prices or volatilities are not available. External pricing input availability varies based on commodity location, market liquidity, and term of the agreement. Valuations of derivative assets and liabilities take into account nonperformance risk including the effect of counterparties' and the Company’s credit risk. The Company regularly assesses the validity and availability of pricing data for its derivative transactions. Although the Company uses its best judgment in estimating the fair value of these instruments, there are inherent limitations in any estimation technique. |
Decommissioning Costs | PNM owns and leases nuclear and fossil-fuel generating facilities. In accordance with GAAP, PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the extended PVNGS license period. PVNGS Unit 3 is excluded from PNM’s retail rates while PVNGS Units 1 and 2 are included. PNM collects a provision for ultimate decommissioning of PVNGS Units 1 and 2 and its fossil-fueled generation facilities in its rates and recognizes a corresponding expense and liability for these amounts. See Note 15. In connection with both the SJGS coal agreement and the Four Corners fuel agreement, the owners are required to reimburse the mining companies for the cost of contemporaneous reclamation as well as the costs for final reclamation of the coal mines. The reclamation costs are based on site-specific studies that estimate the costs to be incurred in the future and are dependent upon numerous assumptions. PNM considers the contemporaneous reclamation costs part of the cost of its delivered coal costs. See Note 16 for a discussion of the final reclamation costs. |
Environmental Costs | The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and in some instances may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. The Company records its environmental liabilities when site assessments or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. The Company reviews its sites and measures the liability by assessing a range of reasonably likely costs for each identified site using currently available information and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operations and maintenance, monitoring, and site closure. The ultimate cost to clean up the Company's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process. |
Income Taxes | Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. GAAP requires that rate-regulated enterprises record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded at the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory liabilities and assets offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits related to rate regulated assets and amortizes them over the estimated useful lives of those assets. |
Excise Taxes | The Company pays certain fees or taxes which are either considered to be an excise tax or similar to an excise tax. Substantially all of these taxes are recorded on a net basis in the Consolidated Statements of Earnings. |
Segment Information | The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided. |
Fair Value Derivatives | Fair Value Disclosures The Company determines the fair values of its derivative and other financial instruments based on the hierarchy established in GAAP, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. GAAP describes three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs used in determining fair values for the Company consist of internal valuation models. |
Variable Interest Entities | GAAP determines how an enterprise evaluates and accounts for its involvement with variable interest entities, focusing primarily on whether the enterprise has the power to direct the activities that most significantly impact the economic performance of a variable interest entity. GAAP also requires continual reassessment of the primary beneficiary of a variable interest entity. |
Pension and Other Postretirement Benefits | The expected long-term rate of return on pension and postretirement plan assets is calculated on the market-related value of assets. GAAP requires that actual gains and losses on pension and postretirement plan assets be recognized in the market-related value of assets equally over a period of not more than five years, which reduces year-to-year volatility. GAAP requires a plan sponsor to (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. GAAP requires unrecognized prior service costs and unrecognized gains or losses to be recorded in AOCI and subsequently amortized. The amortization of these incurred costs will ultimately be included as pension and postretirement benefit periodic cost or income in subsequent years. To the extent the amortization of these items will ultimately be recovered in future rates, PNM and TNMP record the costs as a regulatory asset or regulatory liability. |
Commitments and Contingencies | There are various claims and lawsuits pending against the Company. The Company is also subject to federal, state, and local environmental laws and regulations and periodically participates in the investigation and remediation of various sites. In addition, the Company occasionally enters into financial commitments in connection with its business operations. The Company is also involved in various legal and regulatory (Note 17) proceedings in the normal course of its business. It is not possible at this time for the Company to determine fully the effect of all litigation and other legal and regulatory proceedings on its financial position, results of operations, or cash flows. With respect to some of the items listed below, the Company has determined that a loss is not probable or that, to the extent probable, cannot be reasonably estimated. In some cases, the Company is not able to predict with any degree of certainty the range of possible loss that could be incurred. Notwithstanding these facts, the Company has assessed these matters based on current information and made judgments concerning their potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought, and the probability of success. Such judgments are made with the understanding that the outcome of any litigation, investigation, and other legal proceeding is inherently uncertain. In accordance with GAAP, the Company records liabilities for matters where it is probable a loss has been incurred and the amount of loss is reasonably estimable. The actual outcomes of the items listed below could ultimately differ from the judgments made and the differences could be material. The Company cannot make any assurances that the amount of reserves or potential insurance coverage will be sufficient to cover the cash obligations that might be incurred as a result of litigation or regulatory proceedings. The Company does not expect that any known lawsuits, environmental costs, and commitments will have a material effect on its financial condition, results of operations, or cash flows. |
Income Taxes Schedule of Deferred Income Tax Components (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | $ 46,095 | ||
Change in tax effects of income tax related regulatory assets and liabilities | 942 | ||
Tax effect of mark-to-market adjustments | (570) | ||
Tax effect of excess pension liability | 10,085 | ||
Adjustment for uncertain income tax positions | (381) | ||
Other | 72 | ||
Deferred income taxes | 56,243 | 124,424 | 35,674 |
Public Service Company of New Mexico [Member]
|
|||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 54,818 | ||
Change in tax effects of income tax related regulatory assets and liabilities | 1,054 | ||
Tax effect of mark-to-market adjustments | (506) | ||
Tax effect of excess pension liability | 10,085 | ||
Adjustment for uncertain income tax positions | (370) | ||
Other | 398 | ||
Deferred income taxes | 65,479 | 90,567 | 113,680 |
Texas-New Mexico Power Company [Member]
|
|||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 5,654 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (112) | ||
Adjustment for uncertain income tax positions | (905) | ||
Other | (259) | ||
Deferred income taxes | $ 4,378 | $ 15,478 | $ 4,962 |
Fair Value of Derivative and Other Financial Instruments, Defined Benefit Plans Disclosure (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||
Private Equity, Hedge and Real Estate Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 93,188 | $ 98,688 | $ 92,599 | |||
Actual return on assets sold during the period | 2,824 | |||||
Actual return on assets still held at period end | 2,565 | 1,647 | ||||
Purchases | 5,911 | 4,725 | ||||
Sales | (16,800) | (2,187) | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,969,362 | 1,873,002 | ||||
Investment in PVNGS lessor notes | 84,198 | 108,742 | ||||
Other investments | 6,965 | 14,208 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 583,688 | 506,605 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,385,433 | 1,294,846 | ||||
Investment in PVNGS lessor notes | 84,198 | 108,742 | ||||
Other investments | 494 | 3,052 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 418,166 | 413,966 | ||||
Other investments | 281 | 271 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 10,404 | 6,753 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, International Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 39,867 | 37,173 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Value [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 39,492 | 58,350 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Growth [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 63,888 | 65,004 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Other [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 17,035 | 15,271 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed Income Securities, Corporate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 101,936 | 59,730 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed Income Securities, U.S. Government [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 148,341 | 104,102 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed Income Securities, Municipals [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,639 | 3,478 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed Income Securities, Other Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 65,898 | 58,056 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Private Equity Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 38,212 | 37,100 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Hedge Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 31,277 | 36,904 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Real Estate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 23,699 | 24,684 | ||||
Fair Value, Inputs, Level 1 [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 0 | [1] | ||||
Investment in PVNGS lessor notes | 0 | [1] | ||||
Other investments | 774 | [1] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 231,953 | 200,397 | ||||
Fair Value, Inputs, Level 1 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 0 | [1] | ||||
Investment in PVNGS lessor notes | 0 | [1] | ||||
Other investments | 494 | [1] | ||||
Fair Value, Inputs, Level 1 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 0 | [1] | ||||
Other investments | 281 | [1] | ||||
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 10,404 | 6,753 | ||||
Fair Value, Inputs, Level 1 [Member] | Equity Securities, International Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 39,867 | 37,173 | ||||
Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Value [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 39,492 | 57,437 | ||||
Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Growth [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 63,888 | 65,004 | ||||
Fair Value, Inputs, Level 1 [Member] | Equity Securities, Other [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities, Corporate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities, U.S. Government [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 78,302 | 34,030 | ||||
Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities, Municipals [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities, Other Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Private Equity Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Hedge Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,966,725 | [1] | ||||
Investment in PVNGS lessor notes | 0 | [1] | ||||
Other investments | 0 | [1] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 258,547 | 207,520 | ||||
Fair Value, Inputs, Level 2 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,385,433 | [1] | ||||
Investment in PVNGS lessor notes | 0 | [1] | ||||
Other investments | 0 | [1] | ||||
Fair Value, Inputs, Level 2 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 418,166 | [1] | ||||
Other investments | 0 | [1] | ||||
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities, International Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Value [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 913 | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Growth [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Equity Securities, Other [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 17,035 | 15,271 | ||||
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities, Corporate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 101,936 | 59,730 | ||||
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities, U.S. Government [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 70,039 | 70,072 | ||||
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities, Municipals [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,639 | 3,478 | ||||
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities, Other Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 65,898 | 58,056 | ||||
Fair Value, Inputs, Level 2 [Member] | Private Equity Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Hedge Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 2,637 | [1] | ||||
Investment in PVNGS lessor notes | 84,198 | [1] | ||||
Other investments | 6,191 | [1] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 93,188 | 98,688 | ||||
Fair Value, Inputs, Level 3 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 0 | [1] | ||||
Investment in PVNGS lessor notes | 84,198 | [1] | ||||
Other investments | 0 | [1] | ||||
Fair Value, Inputs, Level 3 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 0 | [1] | ||||
Other investments | 0 | [1] | ||||
Fair Value, Inputs, Level 3 [Member] | PNMR Master Trust [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 79,017 | 84,133 | 78,940 | |||
Actual return on assets sold during the period | 2,627 | 1,624 | ||||
Actual return on assets still held at period end | 2,386 | 1,404 | ||||
Purchases | 5,498 | 4,030 | ||||
Sales | (15,627) | (1,865) | ||||
Fair Value, Inputs, Level 3 [Member] | PNMR Master Trust [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 14,171 | 14,555 | 13,659 | |||
Actual return on assets sold during the period | 197 | 280 | ||||
Actual return on assets still held at period end | 179 | 243 | ||||
Purchases | 413 | 695 | ||||
Sales | (1,173) | (322) | ||||
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Equity Securities, International Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Value [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Growth [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Equity Securities, Other [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Fixed Income Securities, Corporate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Fixed Income Securities, U.S. Government [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Fixed Income Securities, Municipals [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Fixed Income Securities, Other Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Private Equity Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 38,212 | 37,100 | 32,935 | |||
Actual return on assets sold during the period | 2,966 | 1,904 | ||||
Actual return on assets still held at period end | 40 | 2,372 | ||||
Purchases | 3,906 | 2,076 | ||||
Sales | (5,800) | (2,187) | ||||
Fair Value, Inputs, Level 3 [Member] | Hedge Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 31,277 | 36,904 | 37,622 | |||
Actual return on assets sold during the period | (80) | 0 | ||||
Actual return on assets still held at period end | 2,453 | (718) | ||||
Purchases | 0 | 0 | ||||
Sales | (8,000) | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 23,699 | 24,684 | 22,042 | |||
Actual return on assets sold during the period | (62) | 0 | ||||
Actual return on assets still held at period end | 72 | (7) | ||||
Purchases | 2,005 | 2,649 | ||||
Sales | (3,000) | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Private Equity, Hedge and Real Estate Funds [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Actual return on assets sold during the period | 1,904 | |||||
Pension Plan [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 518,095 | 427,386 | 392,788 | |||
Pension Plan [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 66,540 | 59,952 | 60,387 | |||
Pension Plan [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | PNMR Master Trust [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 517,238 | 444,466 | ||||
Pension Plan [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | PNMR Master Trust [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 66,450 | 62,139 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | PNMR Master Trust [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 205,491 | 176,279 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | PNMR Master Trust [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 26,462 | 24,118 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | PNMR Master Trust [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 232,730 | 184,054 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | PNMR Master Trust [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 25,817 | 23,466 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | PNMR Master Trust [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 79,017 | 84,133 | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | PNMR Master Trust [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 14,171 | 14,555 | ||||
Other Postretirement Benefits [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 64,464 | 58,776 | 61,749 | |||
Other Postretirement Benefits [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 8,643 | 8,303 | 8,596 | |||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Total Assets Owned At the End of Period | 65,536 | 59,857 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Total Assets Owned At the End of Period | 8,760 | 8,459 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,976 | 1,128 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 42 | 180 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, International Funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,651 | 2,740 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, International Funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,444 | 1,248 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Value [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,289 | |||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Value [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 551 | |||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Growth [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 46,145 | 43,016 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Domestic Growth [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,289 | 738 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Other [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,588 | 7,678 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities, Other [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,660 | 3,048 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed income securities, Mutual funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,176 | 4,006 | ||||
Other Postretirement Benefits [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fixed income securities, Mutual funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,325 | 2,694 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 28,663 | 28,638 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,656 | 4,163 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,976 | 1,128 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 42 | 180 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, International Funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, International Funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Value [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,289 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Value [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 551 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Growth [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 19,511 | 22,215 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Domestic Growth [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,289 | 738 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Other [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Other [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Fixed income securities, Mutual funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,176 | 4,006 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | Fixed income securities, Mutual funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,325 | 2,694 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 36,873 | 31,219 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5,104 | 4,296 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, International Funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,651 | 2,740 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, International Funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,444 | 1,248 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Value [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Value [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Growth [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 26,634 | 20,801 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Domestic Growth [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Other [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,588 | 7,678 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities, Other [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,660 | 3,048 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed income securities, Mutual funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed income securities, Mutual funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, International Funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, International Funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Value [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Value [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Growth [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Domestic Growth [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Other [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities, Other [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed income securities, Mutual funds [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed income securities, Mutual funds [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | PNMR [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,672,290 | 1,674,013 | ||||
Investment in PVNGS lessor notes | 77,682 | 107,094 | ||||
Other investments | 5,599 | 12,207 | ||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Public Service Company of New Mexico [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 1,215,579 | 1,215,540 | ||||
Investment in PVNGS lessor notes | 77,682 | 107,094 | ||||
Other investments | 494 | 2,900 | ||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Texas-New Mexico Power Company [Member]
|
||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Long-term debt | 311,589 | 310,963 | ||||
Other investments | $ 281 | $ 271 | ||||
|
Pension and Other Postretirement Benefit Plans Pension Benefit Payments are Expected to be Paid (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Public Service Company of New Mexico [Member] | Executive Retirement Program [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | $ 1,452 |
2014 | 1,436 |
2015 | 1,418 |
2016 | 1,396 |
2017 | 1,371 |
Years 2018 - 2022 | 6,340 |
Public Service Company of New Mexico [Member] | Other Postretirement Benefits [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | 6,123 |
2014 | 6,327 |
2015 | 6,450 |
2016 | 6,668 |
2017 | 6,780 |
Years 2018 - 2022 | 34,983 |
Public Service Company of New Mexico [Member] | Pension Plan [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | 42,186 |
2014 | 42,979 |
2015 | 43,573 |
2016 | 44,092 |
2017 | 44,608 |
Years 2018 - 2022 | 223,777 |
Texas-New Mexico Power Company [Member] | Executive Retirement Program [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | 92 |
2014 | 91 |
2015 | 89 |
2016 | 87 |
2017 | 85 |
Years 2018 - 2022 | 371 |
Texas-New Mexico Power Company [Member] | Other Postretirement Benefits [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | 786 |
2014 | 796 |
2015 | 803 |
2016 | 823 |
2017 | 838 |
Years 2018 - 2022 | 4,322 |
Texas-New Mexico Power Company [Member] | Pension Plan [Member]
|
|
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2013 | 5,922 |
2014 | 6,189 |
2015 | 6,385 |
2016 | 5,982 |
2017 | 5,893 |
Years 2018 - 2022 | $ 26,193 |
Stockholders' Equity (Details) (USD $)
|
0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
Sep. 23, 2011
|
Sep. 23, 2011
Series A convertible preferred stock [Member]
|
Dec. 31, 2012
Public Service Company of New Mexico [Member]
|
Dec. 31, 2011
Public Service Company of New Mexico [Member]
|
Dec. 31, 2010
Public Service Company of New Mexico [Member]
|
Dec. 31, 2012
Texas-New Mexico Power Company [Member]
|
Jan. 31, 2011
Affiliated Entity [Member]
Public Service Company of New Mexico [Member]
|
Dec. 31, 2012
Affiliated Entity [Member]
Public Service Company of New Mexico [Member]
|
Dec. 31, 2011
Affiliated Entity [Member]
Public Service Company of New Mexico [Member]
|
Dec. 31, 2010
Affiliated Entity [Member]
Public Service Company of New Mexico [Member]
|
Dec. 31, 2012
Affiliated Entity [Member]
Texas-New Mexico Power Company [Member]
|
Dec. 31, 2011
Affiliated Entity [Member]
Texas-New Mexico Power Company [Member]
|
Dec. 31, 2010
Affiliated Entity [Member]
Texas-New Mexico Power Company [Member]
|
Dec. 31, 2012
Line of Credit [Member]
Texas-New Mexico Power Company [Member]
|
|
Class of Stock [Line Items] | |||||||||||||||
Equity contribution from parent | $ 0 | $ 43,000,000 | $ 0 | ||||||||||||
Cash dividends paid to parent company by consolidated subsidiaries | 39,100,000 | 34,400,000 | 8,200,000 | 28,000,000 | 26,000,000 | 13,700,000 | 13,100,000 | ||||||||
Ratio of debt to capital, maximum (as a percent) | 65.00% | 65.00% | |||||||||||||
Amount available for dividend distribution without prior approval from regulators or financial counterparties | $ 208,000,000 | $ 181,000,000 | |||||||||||||
Agreement to purchase all outstanding shares related to Series A convertible preferred stock (in shares) | 477,800 | ||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 4,778,000 | 10 | |||||||||||||
Preferred stock, dividend rate (as a percent) | 4.58% | ||||||||||||||
Preferred stock, redemption percent (as a percent) | 102.00% | ||||||||||||||
Preferred Stock, Shares Outstanding | 477,800 | 115,293 | 115,293 | ||||||||||||
Preferred stock, cumulative shares authorized (in shares) | 10,000,000 | 10,000,000 | 1,000,000 |
Schedule II - Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | $ 1,778 | $ 11,178 | [1] | $ 12,783 | |||
Charged to costs and expenses | 3,367 | 24,116 | 27,566 | ||||
Charged to other accounts | 0 | 0 | 0 | ||||
Write-offs and other | 3,394 | 33,516 | [1] | 29,171 | |||
Balance at end of year | 1,751 | 1,778 | 11,178 | [1] | |||
Public Service Company of New Mexico [Member]
|
|||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | 1,778 | 1,483 | 1,483 | ||||
Charged to costs and expenses | 3,384 | 3,736 | 2,600 | ||||
Charged to other accounts | 0 | 0 | 0 | ||||
Write-offs and other | 3,411 | 3,441 | 2,600 | ||||
Balance at end of year | 1,751 | 1,778 | 1,483 | ||||
Texas-New Mexico Power Company [Member]
|
|||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | 0 | 0 | 0 | ||||
Charged to costs and expenses | (17) | 33 | 22 | ||||
Charged to other accounts | 0 | 0 | 0 | ||||
Write-offs and other | (17) | 33 | 22 | ||||
Balance at end of year | $ 0 | $ 0 | $ 0 | ||||
|
Income Taxes Schedule of Components of Income Tax Expense (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Income Taxes [Line Items] | |||
Current federal income tax | $ (1,296) | $ 1,319 | $ (52,184) |
Current state income tax | (37) | (4,208) | (15,528) |
Deferred federal income tax | 50,851 | 119,280 | 28,364 |
Deferred state income tax | 6,921 | 7,462 | 9,522 |
Investment tax credit earned and deferred | 708 | 0 | 0 |
Amortization of accumulated investment tax credits | (2,237) | (2,318) | (2,429) |
Total income taxes (benefit) | 54,910 | 121,535 | (32,255) |
Public Service Company of New Mexico [Member]
|
|||
Income Taxes [Line Items] | |||
Current federal income tax | (12,951) | (46,364) | (77,691) |
Current state income tax | (1,815) | (6,776) | 438 |
Deferred federal income tax | 55,486 | 78,673 | 109,170 |
Deferred state income tax | 11,522 | 14,212 | 6,939 |
Investment tax credit earned and deferred | 708 | 0 | 0 |
Amortization of accumulated investment tax credits | (2,237) | (2,318) | (2,429) |
Total income taxes (benefit) | 50,713 | 37,427 | 36,427 |
Texas-New Mexico Power Company [Member]
|
|||
Income Taxes [Line Items] | |||
Current federal income tax | 9,152 | (3,578) | 3,532 |
Current state income tax | 1,822 | 1,981 | 1,766 |
Deferred federal income tax | 4,406 | 15,507 | 4,775 |
Deferred state income tax | (28) | (29) | (29) |
Total income taxes (benefit) | $ 15,352 | $ 13,881 | $ 10,044 |
Pension and Other Postretirement Benefit Plans Pre-Tax Information about Prior Service Cost and Net Actuarial (Gain) loss in AOCI (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Public Service Company of New Mexico [Member] | Pension Plan [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | $ 171 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 134,088 |
Prior service cost (credit) - Experience loss (gain) | 0 |
Net actuarial (gain) loss - Experience loss (gain) | 82,734 |
Prior service cost (credit) - Regulatory asset (liability) adjustment | (1) |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (52,423) |
Prior service cost (credit) - Amortization recognized in net periodic benefit cost (income) | (138) |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | (4,573) |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 32 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 159,826 |
Prior service cost (credit) - Amortization expected to be recognized in in 2013 | (32) |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | (6,233) |
Public Service Company of New Mexico [Member] | Other Postretirement Benefits [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | (121) |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 960 |
Prior service cost (credit) - Experience loss (gain) | 0 |
Net actuarial (gain) loss - Experience loss (gain) | 623 |
Prior service cost (credit) - Regulatory asset (liability) adjustment | 156 |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (1,683) |
Prior service cost (credit) - Amortization recognized in net periodic benefit cost (income) | (35) |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | 100 |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Prior service cost (credit) - Amortization expected to be recognized in in 2013 | 0 |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | 0 |
Public Service Company of New Mexico [Member] | Executive Retirement Program [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 1,354 |
Net actuarial (gain) loss - Experience loss (gain) | 1,895 |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (1,216) |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | 36 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 2,069 |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | (98) |
Texas-New Mexico Power Company [Member] | Pension Plan [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Net actuarial (gain) loss - Experience loss (gain) | 9,807 |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (9,807) |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | 0 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | 0 |
Texas-New Mexico Power Company [Member] | Other Postretirement Benefits [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Prior service cost (credit) - Experience loss (gain) | 0 |
Net actuarial (gain) loss - Experience loss (gain) | 1,985 |
Prior service cost (credit) - Regulatory asset (liability) adjustment | 0 |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (1,985) |
Prior service cost (credit) - Amortization recognized in net periodic benefit cost (income) | 0 |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | |
Prior service cost (credit) - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Prior service cost (credit) - Amortization expected to be recognized in in 2013 | 0 |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | 0 |
Texas-New Mexico Power Company [Member] | Executive Retirement Program [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Net actuarial (gain) loss - Experience loss (gain) | 107 |
Net actuarial (gain) loss - Regulatory asset (liability) adjustment | (107) |
Net actuarial (gain) loss - Amortization recognized in net periodic benefit cost (income) | 0 |
Net actuarial (gain) loss - Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Net actuarial (gain) loss - Amortization expected to be recognized in in 2013 | $ 0 |
Income Taxes Interest Expense (Income) Related to Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Income Taxes [Line Items] | |||
Interest income related to income taxes | $ 243 | $ 467 | $ 397 |
Public Service Company of New Mexico [Member]
|
|||
Income Taxes [Line Items] | |||
Interest income related to income taxes | 244 | 401 | 465 |
Texas-New Mexico Power Company [Member]
|
|||
Income Taxes [Line Items] | |||
Interest income related to income taxes | $ (3) | $ 2 | $ (8) |
Pension and Other Postretirement Benefit Plans Components of Net Periodic Benefit Cost (Income) Recognized (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Public Service Company of New Mexico [Member] | Pension Plan [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 32,232 | 32,804 | 34,073 |
Expected return on plan assets | (41,301) | (37,075) | (37,354) |
Amortization of net (gain) loss | 10,516 | 9,209 | 6,450 |
Amortization of prior service cost (credit) | 317 | 317 | 317 |
Net periodic benefit cost | 1,764 | 5,255 | 3,486 |
Public Service Company of New Mexico [Member] | Executive Retirement Program [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 876 | 930 | 1,053 |
Amortization of net (gain) loss | 83 | 93 | 71 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic benefit cost | 959 | 1,023 | 1,124 |
Public Service Company of New Mexico [Member] | Other Postretirement Benefits [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 217 | 259 | 419 |
Interest cost | 5,293 | 5,378 | 7,650 |
Expected return on plan assets | (4,901) | (5,388) | (5,572) |
Amortization of net (gain) loss | 3,888 | 3,205 | 5,489 |
Amortization of prior service cost (credit) | (1,343) | (2,648) | (4,143) |
Net periodic benefit cost | 3,154 | 806 | 3,843 |
Texas-New Mexico Power Company [Member] | Pension Plan [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 3,635 | 3,800 | 4,126 |
Expected return on plan assets | (5,324) | (5,470) | (5,794) |
Amortization of net (gain) loss | 462 | 346 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic benefit cost | (1,227) | (1,324) | (1,668) |
Texas-New Mexico Power Company [Member] | Executive Retirement Program [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 45 | 46 | 52 |
Amortization of net (gain) loss | 0 | 0 | (4) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic benefit cost | 45 | 46 | 48 |
Texas-New Mexico Power Company [Member] | Other Postretirement Benefits [Member]
|
|||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 244 | 306 | 289 |
Interest cost | 624 | 654 | 711 |
Expected return on plan assets | (516) | (533) | (514) |
Amortization of net (gain) loss | (209) | (193) | (195) |
Amortization of prior service cost (credit) | 57 | 60 | 60 |
Net periodic benefit cost | $ 200 | $ 294 | $ 351 |
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 61,262 | $ 109,364 | $ (22,183) |
First Choice goodwill | 0 | 15,055 | 0 |
Investment tax credits | (2,237) | (2,318) | (2,429) |
Flow-through of depreciation items | 1,284 | 3,659 | 3,995 |
Earnings attributable to non-controlling interest in Valencia | (4,918) | (4,917) | (4,747) |
State income tax | 4,646 | 3,395 | (6,312) |
Other | (5,127) | (2,703) | (579) |
Total income taxes (benefit) | 54,910 | 121,535 | (32,255) |
Effective tax rate | 31.37% | 38.90% | 50.89% |
Public Service Company of New Mexico [Member]
|
|||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | 54,710 | 37,088 | 37,551 |
Investment tax credits | (2,237) | (2,318) | (2,429) |
Flow-through of depreciation items | 1,268 | 3,656 | 3,994 |
Earnings attributable to non-controlling interest in Valencia | (4,918) | (4,917) | (4,747) |
State income tax | 6,500 | 4,797 | 4,747 |
Other | (4,610) | (879) | (2,689) |
Total income taxes (benefit) | 50,713 | 37,427 | 36,427 |
Effective tax rate | 32.44% | 35.32% | 33.95% |
Texas-New Mexico Power Company [Member]
|
|||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | 14,735 | 12,648 | 9,109 |
State income tax | 1,185 | 1,288 | 1,148 |
Other | (568) | (55) | (213) |
Total income taxes (benefit) | $ 15,352 | $ 13,881 | $ 10,044 |
Effective tax rate | 36.47% | 38.41% | 38.59% |
Fair Value of Derivative and Other Financial Instruments, Recurring (Details) (PNMR and PNM [Member], Measured on a recurring basis [Member], USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | $ 192,511 | [1] | $ 168,851 | [1] | ||
Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 114,259 | |||||
Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 54,592 | |||||
Cash and equivalents [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 4,628 | [1] | 2,766 | [1] | ||
Cash and equivalents [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 4,628 | 2,766 | ||||
Cash and equivalents [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
Domestic value [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 30,044 | [1] | 25,143 | [1] | ||
Domestic value [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 30,044 | 25,143 | ||||
Domestic value [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
Domestic growth [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 51,650 | [1] | 52,187 | [1] | ||
Domestic growth [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 51,650 | 52,187 | ||||
Domestic growth [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
International and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 14,868 | [1] | 12,754 | [1] | ||
International and other [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 14,868 | 12,754 | ||||
International and other [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
U.S. Government [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 32,592 | [1] | 25,367 | [1] | ||
U.S. Government [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 27,737 | 21,409 | ||||
U.S. Government [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 4,855 | 3,958 | ||||
Municipals [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 43,861 | [1] | 41,463 | [1] | ||
Municipals [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
Municipals [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 43,861 | 41,463 | ||||
Corporate and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 14,868 | [1] | 9,171 | [1] | ||
Corporate and other [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 0 | 0 | ||||
Corporate and other [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
NDT Investments | 14,868 | 9,171 | ||||
Commodity Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity derivative instruments, Assets | 4,137 | 3,713 | ||||
Commodity derivative instruments, Liabilities | (2,933) | (4,069) | ||||
Commodity derivative instruments, Net | 1,204 | [1] | (356) | [1] | ||
Commodity Contract [Member] | Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity derivative instruments, Assets | 0 | 0 | ||||
Commodity derivative instruments, Liabilities | 0 | 0 | ||||
Commodity derivative instruments, Net | 0 | |||||
Commodity Contract [Member] | Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity derivative instruments, Assets | 4,137 | 3,713 | ||||
Commodity derivative instruments, Liabilities | (2,933) | (4,069) | ||||
Commodity derivative instruments, Net | $ (356) | |||||
|
Regulatory and Rate Matters
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12 Months Ended |
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Dec. 31, 2012
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Regulated Operations [Abstract] | |
Regulatory and Rate Matters | Regulatory and Rate Matters The Company is involved in various regulatory matters, some of which contain contingencies that are subject to the same uncertainties as those described in Note 16. PNM Renewable Portfolio Standard The REA establishes a mandatory RPS requiring a utility to acquire a renewable energy portfolio equal to 10% of retail electric sales by 2011, 15% by 2015, and 20% by 2020. The NMPRC requires renewable energy portfolios to be “fully diversified.” As amended in December 2012, the diversity requirements are 30% wind, 20% solar, 5% other, and 1.5% distributed generation, increasing to 3% in 2015. The REA provides for streamlined proceedings for approval of utilities' renewable energy procurement plans, assures utilities recovery of costs incurred consistent with approved procurement plans, and requires the NMPRC to establish a RCT for the procurement of renewable resources to prevent excessive costs being added to rates. In December 2012, the NMPRC approved an amended RCT set at 3% of customers' annual electric charges beginning in 2013 and continuing thereafter. In August 2010, the NMPRC partially approved PNM's revised 2010 procurement plan, including PNM's investment in 22 MW of solar PV facilities at various PNM sites and the construction of a solar-storage demonstration project. The NMPRC approved the estimated costs of $107.7 million. Under the REA, actual costs incurred pursuant to and consistent with an approved procurement plan are deemed to be reasonable and recoverable in the ratemaking process. Construction of these facilities was completed in 2011 at a total cost of approximately $95 million. In July 2010, PNM filed its renewable energy procurement plan for 2011. PNM requested a variance from the diversity requirements for solar and certain “other resources” for 2011 based on the RCT and availability constraints, which the NMPRC granted. The NMPRC ultimately rejected a portion of PNM's proposal in an order that was appealed to the New Mexico Supreme Court. On June 7, 2012, the New Mexico Supreme Court dismissed the appeal. In July 2011, PNM filed its renewable energy procurement plan for 2012. The plan requested a variance from the RPS due to RCT limitations. The plan was diversity-compliant based on the reduced RPS, except for non-wind/non-solar resources, which were not available. In December 2011, the NMPRC approved PNM's 2012 plan, but ordered PNM to spend an additional $0.9 million on renewable procurements in 2012. PNM intends to recover the costs of the supplemental procurements in 2013 through the renewable rider discussed below. This order also required PNM to file its 2013 renewable energy procurement plan by April 30, 2012. The 2013 plan proposed procurements for 2013 and 2014 of 20 MW of PNM-owned solar PV facilities, at an estimated cost of $45.5 million, wind and solar REC purchases in 2013, and a purchased power agreement for the output of a new geothermal facility. The plan also included a supplemental procurement of 2 MW of PNM-owned solar PV facilities at a estimated cost of $4.5 million to supply the energy sold under PNM's voluntary renewable energy tariff. The plan will enable PNM to comply with the statutory RPS amount in 2013, but requires a variance from the NMPRC's diversity requirements in 2013 while the proposed geothermal facilities are being constructed. This plan is expected to achieve full RPS quantity and diversity compliance by 2014 without exceeding the RCT. The NMPRC approved the plan in December 2012, but reduced the supplemental solar PV procurement to 1.5 MW. PNM is recovering certain renewable procurement costs from customers through a rate rider. See Renewable Energy Rider below. Renewable Energy Rider In January 2012, PNM filed an application for a rate rider that PNM proposed would go into effect in August 2012 to collect costs for renewable energy procurements incurred after December 31, 2010 that are not otherwise being collected in rates. These costs include the procurement of solar RECs from customers, wind resource procurements during November and December 2011 as ordered by the NMPRC, and the revenue requirements for PNM-owned solar PV facilities and a solar battery storage demonstration project that went into service during 2011. The 2012 rider rate would be reset as of January 1, 2013 to reflect unrecovered costs from 2012 and projected costs to be incurred in 2013. The rider would terminate upon a final order in PNM's next general rate case unless that order authorized a continuation of the rider. Amounts collected under the rider are capped at $18.0 million in 2012 and $24.6 million in 2013 under the stipulation in PNM's 2010 Electric Rate Case. Any amounts above the caps are deferred for future recovery without carrying costs. As a separate component of the rider, if PNM's earned return on jurisdictional equity in 2013, adjusted for weather and other items not representative of normal operations, exceeds 10.5%, it must refund to customers during May through December 2014 the amount over 10.5%. On August 14, 2012, the NMPRC approved collection of renewable procurement costs through the rider on a per KWh basis. The approved rate is $0.0022335 per KWh in 2012 and $0.0028371 per KWh in 2013. The order disapproved the recovery of the cost of the supplemental procurement ordered by the NMPRC in the 2012 procurement plan case because the NMPRC had not yet acted on the specific $0.9 million procurement proposed by PNM, which is discussed under Renewable Portfolio Standard above. The NMPRC subsequently approved the supplemental procurement, but ordered that a hearing must be held on its inclusion in the rider. In October 2012, the NMPRC issued an order to clarify that no separate hearing is required prior to increasing the rider rate for new procurements if a legally appropriate hearing on the increase was conducted as part of the hearing on the procurement plan. PNM implemented the rider on August 20, 2012. Energy Efficiency and Load Management Program Costs Public utilities are required by the Efficient Use of Energy Act to achieve specified levels of energy savings and to obtain NMPRC approval to implement energy efficiency and load management. Costs to implement approved programs are recovered through a rate rider. In September 2010, PNM filed an energy efficiency program application for programs to be offered beginning July 1, 2011. The NMPRC issued an order in June 2011 that approved a rider recovery amount of $17.1 million in program costs. The new rider rate was effective with bills rendered July 27, 2011. In April 2011, PNM filed a reconciliation of energy efficiency program costs and collections as of December 31, 2010. Included in this filing was an adjustment of the adder amount to reflect the measured and verified savings for 2010 program participation in its 2010 Annual Electric Energy Efficiency Report, also filed in April 2011. PNM proposed an adjustment to the energy efficiency rider to recover an under-collected balance of $2.6 million. After an evidentiary hearing, the NMPRC issued an order in November 2011 that approved recovery of substantially all of the under-collected program costs. In October 2012, PNM filed an energy efficiency program application for programs to be offered beginning in May 2013. The filing included proposed program costs of $22.5 million plus a proposed profit incentive of $4.2 million. PNM requested that the NMPRC issue an order by April 1, 2013. Portions of the program plan and proposed profit incentive are opposed by other parties to the case. PNM subsequently revised its proposed profit incentive to $2.9 million. A hearing on the application was held in February 2013. PNM is not able to predict the outcome of this matter. Disincentives/Incentives Adder The Efficient Use of Energy Act requires the NMPRC to remove utility disincentives to implementing energy efficiency and load management programs and to provide incentives for such programs. A rule approved by the NMPRC authorized electric utilities to collect rate adders of $0.01 per KWh for lifetime energy savings and $10 per KW for demand savings related to energy efficiency and demand response programs beginning in 2010. The NMAG and NMIEC appealed the NMPRC order adopting this rule to the New Mexico Supreme Court. PNM began implementing a rate rider under the rule to collect adders related to its 2010 program savings in December 2010 while the appeal of the rule was pending. In July 2011, the Supreme Court annulled and vacated the order adopting the rule and remanded the matter to the NMPRC. As a result of the Supreme Court decision, PNM filed revised tariffs and ceased collecting this adder for 2010 program savings on August 21, 2011. Of the $4.2 million authorized for recovery, $2.6 million was collected through August 20, 2011. In June 2011, prior to the Supreme Court decision, the NMPRC approved PNM-specific adders of $0.002 per KWh and $4 per KW for savings due to programs implemented in 2011. PNM is presently collecting $1.3 million in adder revenues consistent with this order. After the Supreme Court decision vacating the rule, the NMPRC initiated a proceeding to determine whether PNM should be required to cease collecting the adders and to refund all adder revenues collected since December 2010. In November 2011, the NMPRC issued orders that PNM is not required to refund any adder revenues and is authorized to continue collecting the adders. However, in an order on rehearing, which it subsequently rescinded, the NMPRC further reduced the amount of the authorized adders. Prior to the rescission, PNM appealed the rehearing order to the Supreme Court. In March 2012, the Supreme Court granted PNM's motion to vacate the rehearing order and dismiss PNM's appeal. In a separate appeal and writ proceeding in the Supreme Court, NMIEC and the NMAG seek to overturn the NMPRC order allowing PNM to continue to collect adders in light of the 2011 Supreme Court decision. On May 21, 2012 the Supreme Court dismissed the writ proceeding. Oral argument in the appeal was held in December 2012 and a decision in the appeal is expected in 2013. PNM is unable to predict the outcome of the appeal. Decoupling Rulemaking On May 15, 2012, the NMPRC issued a NOPR that would have amended the NMPRC's energy efficiency rule to authorize use of a decoupling mechanism to recover certain fixed costs of providing retail electric service from the rates charged on a per KWh of consumption, as the mechanism for removal of disincentives associated with the implementation of energy efficiency programs. The proposed mechanism was generally consistent with the decoupling proposal that PNM included, and subsequently agreed to withdraw, in its 2010 Electric Rate Case. The proposed rule also addressed incentives associated with energy efficiency. On July 26, 2012, the NMPRC closed the proposed rulemaking and opened a new energy efficiency rulemaking docket that may address decoupling and incentives. Workshops to develop a proposed rule have been held, but no order proposing a rule has been issued. PNM is unable to predict the outcome of this matter. 2010 Electric Rate Case PNM filed its 2010 Electric Rate Case application with the NMPRC in June 2010 for rate increases totaling $165.2 million for all PNM retail customers to be effective April 1, 2011. The application proposed separate rate increases for customers served by TNMP prior to its acquisition by PNMR (“PNM South”) and other customers of PNM (“PNM North”). PNM also proposed to implement a FPPAC for PNM South. The filed revenue requirements were based on a future test period ending December 31, 2011. On August 21, 2011, PNM implemented a $72.1 million annual increase in rates as authorized by an order of the NMPRC, which modified a stipulation agreed to by PNM and several other parties. The amended stipulation allows PNM to file a new general rate case for rates to become effective on or after July 1, 2013 and limits the amount that can be recovered on an annual basis for fuel costs, renewable energy costs, and energy efficiency costs during certain years. Costs in excess of the limits are deferred, without carrying costs, for recovery in future periods. The caps are $38.8 million for the FPPAC year beginning July 1, 2012, which PNM began collecting at that time, and $36.2 million for the FPPAC year beginning July 1, 2013. PNM estimates that the caps will result in approximately $41.0 million of FPPAC costs being deferred for future collection at June 30, 2014. Costs attributed to the mine fire incident discussed in Note 16 are included in the FPPAC amounts. Possible recovery of costs through SJCC's insurance, also discussed in Note 16, is not reflected in the FPPAC amounts. As a result of the modified stipulation, PNM recorded pre-tax losses for the $10.0 million of fuel costs that will not be recovered through the FPPAC and $7.5 million for other costs that will not be recovered in rates. These amounts were recorded as of June 30, 2011 and are reflected as regulatory disallowances on PNM's Consolidated Statement of Earnings. 2011 Integrated Resource Plan NMPRC rules require that investor owned utilities file an IRP every three years. The IRP is required to cover a 20-year planning period and contain an action plan covering the first four years of that period. In its most recent IRP, which was filed in July 2011, PNM indicated that it planned to meet its anticipated load growth through a combination of new natural gas-fired generating plants, renewable energy resources, load management, and energy efficiency programs. However, PNM has not entered into any commitments regarding these plans beyond what is otherwise described herein. As required by NMPRC rules, PNM utilized a public advisory group process during the development of the 2011 IRP. Two protests were filed to the IRP requesting rejection of the plan. The NMPRC assigned the case to a Hearing Examiner and designated a mediator to facilitate negotiations. The NMPRC staff filed a motion in December 2011 to dismiss the protests and terminate the proceeding on the ground that PNM's IRP fully complies with NMPRC rules. PNM is unable to predict the outcome of this matter. 2008 Electric Rate Case In September 2008, PNM filed its 2008 Electric Rate Case requesting the NMPRC to approve an increase in electric service rates to all PNM retail customers except those formerly served by TNMP. In June 2009, the NMPRC approved a stipulation providing for an increase in annual non-fuel revenues of $77.1 million, of which 65% was implemented on July 1, 2009 and the remaining 35% was implemented on April 1, 2010. As an offset to the increase, PNM implemented a credit to customers totaling $26.3 million, representing past sales of SO2 allowances. This amount was credited to ratepayers over 21 months beginning July 1, 2009. The stipulation also provided for a traditional FPPAC with 100% of off-systems sales margins being credited against costs in the FPPAC. The FPPAC factor is set annually. Under NMPRC rules, PNM must file an application for continued use of its FPPAC at least every four years. PNM anticipates making this continuation filing in May 2013. Emergency FPPAC In 2008, the NMPRC authorized PNM to implement an Emergency FPPAC from June 2, 2008 through June 30, 2009. The NMPRC order approving the Emergency FPPAC also provided that if PNM's base load generating units did not operate at or above a specified capacity factor and PNM was required to obtain replacement power to serve jurisdictional customers, PNM would be required to make a filing with the NMPRC seeking approval of the replacement power costs. In its required filing, PNM stated that the costs of the replacement power amounting to $8.0 million were prudently incurred and made a motion that they be approved. The NMPRC staff opposed PNM's motion and recommended that PNM be required to refund the amount collected. Auditors selected by the NMPRC found that PNM was prudent in operating its base load units and in securing replacement power but had not obtained prior NMPRC approval in the manner required by the NMPRC order. PNM continues to assert that its recovery of replacement power costs was proper and did not violate the NMPRC's order. The NMPRC has not ruled on this matter. Under the terms of the approved stipulation in the 2010 Electric Rate Case, the parties to the stipulation, including the NMPRC staff, jointly requested that the NMPRC take no further action in this matter and close the docket. No party has opposed that request. PNM is unable to predict the outcome of this matter. Applications for Approvals to Purchase Delta As discussed in Note 9, PNM has entered in to an agreement to purchase Delta, a 132 MW natural gas peaking unit from which PNM currently acquires energy and capacity under a PPA. The agreement to purchase Delta is subject to approvals by the NMPRC and FERC. On January 3, 2013, PNM filed an application with the NMPRC for a Certificate of Convenience and Necessity to own and operate Delta and for a determination of related ratemaking principles and treatment. PNM requested expedited consideration of the application so that a final order could be issued by May 31, 2013. The NMPRC has assigned the matter to a hearing examiner. A hearing on the application is scheduled to begin on May 13, 2013. PNM filed an application for approval of the Delta acquisition at FERC on January 24, 2013. FERC approved the purchase on February 26, 2013. PNM is unable to predict the outcome of this matter. Transmission Rate Case In October 2010, PNM filed a notice with FERC to increase its wholesale electric transmission revenues by $11.1 million annually, based on a return on equity of 12.25%. The filing also seeks to revise certain Open Access Transmission Tariff provisions and bi-lateral contractual terms. If approved, the rate increase would apply to all of PNM's wholesale electric transmission service customers, which include other utilities, electric cooperatives, and entities that use PNM's transmission system to transmit power at the wholesale level. The proposed rate increase would not impact PNM's retail customers. In December 2010, FERC issued an order accepting PNM's filing and suspending the proposed tariff revisions for five months. The proposed rates were implemented on June 1, 2011, subject to refund. On July 3, 2012, PNM filed an unopposed settlement agreement with the FERC. Under the settlement agreement, PNM would increase transmission service revenues by $2.9 million annually and would refund amounts collected in excess of the settled rates. In addition, the parties agreed that if PNM files for a formula based rate change within one year from FERC's approval of the settlement agreement, no party will oppose the general principle of a formula rate, although the parties may still object to particular aspects of the formula. On January 2, 2013, FERC approved the settlement agreement. PNM refunded amounts collected in excess of the settled rates in January 2013. Formula Transmission Rate Case On December 31, 2012, PNM filed a request with FERC for a $3.2 million wholesale electric transmission rate increase, based on a 10.81% return on equity and authority to adjust transmission rates annually based on an approved formula. The proposed $3.2 million rate increase is in addition to the $2.9 million rate increase approved by the FERC on January 2, 2013 in the transmission rate case discussed above. If approved, the request would apply to all of PNM's wholesale electric transmission service customers, which include other utilities, electric cooperatives, and entities that use PNM's transmission system to transmit power at the wholesale level. The request would not impact PNM's retail customers. PNM has requested FERC approval by March 2013. PNM anticipates that FERC will allow rates to go into effect, subject to refund, in the third quarter of 2013. Firm-Requirements Wholesale Customer Rate Case In September 2011, PNM filed an unexecuted amended sales agreement between PNM and NEC with FERC. The agreement proposes a cost of service based rate for the electric service and ancillary services PNM provides to NEC, which would result in an annual increase of $8.7 million or a 39.8% increase over existing rates. PNM also requested a FPPAC and full recovery of certain third-party transmission charges PNM incurs to serve NEC. NEC filed a protest to PNM's filing with FERC. In November 2011, FERC issued an order accepting the filing, suspending the effective date for a five-month period, to be effective April 14, 2012, subject to refund, and set the proceeding for settlement. The parties have finalized a settlement agreement and PNM filed for the necessary FERC approval on December 6, 2012. The settlement agreement would result in an annual increase of $5.3 million, an extension of the contract for 10 years, and an agreement that PNM will be able to file an application for formula based rates to be effective in 2015. On January 23, 2013, the FERC settlement judge certified the settlement agreement and approval is pending before FERC. PNM is unable to predict the outcome of this proceeding. TNMP Interest Rate Compliance Tariff Following a revision of the interest rate on TNMP's CTC, TNMP filed a compliance tariff to implement the new lower 8.31% rate. Intervenors asserted objections and, after regulatory proceedings, the PUCT issued an order making the new rate retroactive to July 20, 2006. Ultimately, the Texas 3rd Court of Appeals reaffirmed the PUCT's decision. Due to the new retroactive ratemaking theory contained in the Texas 3rd Court of Appeals opinion, TNMP recorded a pre-tax regulatory disallowance of $3.9 million in 2011 to reflect the impact of applying the 8.31% rate retroactively. In June 2012, the Texas Supreme Court denied TNMP's petition for review. TNMP filed a motion for rehearing, which was denied in August 2012 concluding this matter. 2010 Rate Case In August 2010, TNMP filed with the PUCT for a $20.1 million increase in revenues. In January 2011, the PUCT approved a settlement that provided for a revenue increase of $10.25 million, a return on equity of 10.125%, and a hypothetical 55%/45% debt-equity capital structure. The PUCT approved the settlement in January 2011. TNMP implemented the new rates on February 1, 2011. 2010 Rate Case Expense Proceeding The determination of the amount of reasonable rate case expenses incurred by TNMP and other parties in TNMP's 2010 Rate Case was severed into a separate proceeding. The parties agreed to a settlement of the case, which was approved by the PUCT in May 2011. TNMP began collecting $2.8 million over three years on July 1, 2011. Advanced Meter System Deployment and Surcharge Request In July 2011, the PUCT approved a settlement and authorized an advanced meter deployment plan that permits TNMP to collect $113.3 million in deployment costs through a surcharge over a 12-year period. TNMP began collecting the surcharge on August 11, 2011. Deployment of advanced meters began in September 2011 and is scheduled to be completed over a 5-year period. In February 2012, the PUCT opened a proceeding to consider the feasibility of an “opt-out” program for retail consumers that wish to decline receipt of an advanced meter. The PUCT has requested comments and convened a public meeting to hear various issues. No proposal or decision has yet been announced by the PUCT. However, various individuals filed a petition with the PUCT seeking a moratorium on any advanced meter deployment. The PUCT denied the petition and an appeal was filed with the Texas District Court on September 28, 2012. Any opt-out program would apply to all transmission and distribution utilities in ERCOT. TNMP cannot predict the outcome or effect of this proceeding. Remand of ERCOT Transmission Rates for 1999 and 2000 Following a variety of appeals, the ERCOT transmission rates approved in 1999 and 2000 were remanded back to the PUCT. These dockets concern the recalculation of rates for the fourth quarter of 1999 and all of 2000. In October 2011, TNMP joined in a non-unanimous settlement of the issues relating to resettlement of the last four months of 1999. In January 2012, the PUCT approved the non-unanimous settlement. TNMP received $1.6 million under the settlement. In June 2012, TNMP filed its transmission cost recovery factor filing (“TCRF") seeking $3.2 million in additional transmission costs. The PUCT staff requested a hearing asserting the settlement proceeds from the 1999 remand settlement need to be credited against the costs TNMP requested in its TCRF. TNMP maintains that the settlement proceeds should not be passed on to customers since TNMP was unable to recover those costs in 1999. Subsequently, the PUCT staff agreed to interim rate relief permitting TNMP to add $1.6 million in uncontested costs to its existing TCRF and add $1.6 million in costs in a subsequent TCRF if TNMP is successful in the contested case. The ALJ approved the interim relief on July 16, 2012. TNMP implemented the interim rates on September 1, 2012. On September 26, 2012, the contested portion of the case was remanded back to the PUCT pursuant to an agreed resolution that permits the $1.6 million in interim rates to become final and authorizes TNMP to institute a surcharge in March 2013 to collect the additional $1.6 million in initially disputed costs plus interest at the PUCT under-billing rate. The PUCT approved the joint resolution on November 19, 2012. Energy Efficiency TNMP recovers the costs of its energy efficiency programs through an energy efficiency cost recovery factor. The PUCT approved TNMP's collection of its 2010 energy efficiency program costs of $2.6 million over 11 months beginning February 1, 2010. Recovery of the 2011 program costs of $2.7 million were approved for collection beginning January 1, 2011. In September 2011, the PUCT approved a settlement that allows TNMP to collect the estimated 2012 energy efficiency program costs of $3.4 million and a $0.3 million bonus for 2010. TNMP's new rates were effective January 1, 2012. On August 28, 2012, the PUCT approved a settlement that permits TNMP to collect estimated 2013 program costs of $4.8 million, plus recovery of an aggregate of $0.4 million in under-collected costs from prior years, case expenses, and a performance bonus for 2011. Transmission Cost of Service Rates TNMP can update its transmission rates twice per year to reflect changes in its invested capital. Updated rates reflect the addition and retirement of transmission facilities, including appropriate depreciation, federal income tax and other associated taxes, and the approved rate of return on such facilities. In March 2010, TNMP filed an application to update its transmission rates to reflect changes in its invested capital. The requested increase in total rate base is $33.8 million, with a total revenue requirement increase of $5.5 million. The PUCT approved the interim adjustment on May 14, 2010. On August 23, 2012, TNMP filed an application to update its transmission rates to reflect changes in its invested capital. The application reflected an increase in total rate base of $26.4 million and requested an increase in revenues of $2.5 million annually. The application reflected the addition and retirement of transmission facilities, including depreciation, federal income tax, and other associated taxes, and the approved rate of return on such facilities. The PUCT approved the interim adjustment and TNMP implemented it on September 27, 2012. On January 31, 2013, TNMP filed an application to further update its transmission rates to reflect changes in its invested capital. The requested increase in total rate base is $21.9 million, which will increase revenues $2.9 million annually. The proposed rates reflect the addition and retirement of transmission facilities, including depreciation, federal income tax, and other associated taxes, and the approved rate of return on such facilities. The application is pending before the PUCT and TNMP cannot predict the outcome of this matter. Periodic Distribution Rate Adjustment In September 2011, the PUCT approved a new rule permitting interim rate adjustments to reflect changes in investments in distribution assets. The rule permits distribution utilities to file for a periodic rate adjustment between April 1 through April 8 of each year as long as the electric utility is not earning more than its authorized rate of return using weather-normalized data. |
Quarterly Operating Results (Unaudited) (Tables)
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Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Unaudited operating results by quarters for 2012 and 2011 are presented below. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results of operations for such periods have been included.
(1) During the fourth quarter of 2011, PNMR completed the sale of First Choice which resulted in a $174.9 million ($97.0 million after-tax) gain, that positively affected net earnings, net earnings attributable to PNMR, and earnings per share. See Note 3. |
Income Taxes (Tables)
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Dec. 31, 2012
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Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | PNMR’s income taxes (benefit) consist of the following components:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | PNMR’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of PNMR’s net accumulated deferred income tax liability were:
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Schedule of Deferred Income Tax Components [Table Text Block] | The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
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Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of unrecognized tax benefits (expenses) is as follows:
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Interest Income (Expense) Related to Income Taxes [Table Text Block] | Interest income (expense) related to income taxes is as follows:
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Accumulated Accrued Interest Receivable (Payable) Related to Income Taxes [Table Text Block] | Accumulated accrued interest receivable (payable) related to income taxes is as follows:
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Public Service Company of New Mexico [Member]
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Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | PNM’s income taxes (benefit) consist of the following components:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences are attributable to the following factors:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of PNM’s net accumulated deferred income tax liability were:
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Schedule of Deferred Income Tax Components [Table Text Block] | The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
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Texas-New Mexico Power Company [Member]
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Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | TNMP’s income taxes consist of the following components:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences are attributable to the following factors:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of TNMP’s net accumulated deferred income tax liability at December 31, were:
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Schedule of Deferred Income Tax Components [Table Text Block] | The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
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Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Mar. 31, 2011
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Earnings Per Share [Abstract] | ||||||||||||||||
Earnings (loss) | $ 120,125 | $ 190,934 | $ (31,124) | |||||||||||||
Earnings attributable to Valencia Non-controlling Interest | (14,050) | (14,047) | (13,563) | |||||||||||||
Preferred stock dividend requirements of subsidiary | (528) | (528) | (528) | |||||||||||||
Net Earnings (Loss) Attributable to PNMR | $ 9,091 | $ 57,864 | $ 21,512 | $ 17,080 | $ 111,993 | $ 43,662 | $ 4,067 | $ 16,637 | $ 105,547 | $ 176,359 | $ (45,215) | |||||
Average Number of Common Shares: | ||||||||||||||||
Outstanding during year | 79,654,000 | 85,558,000 | 86,673,000 | |||||||||||||
Equivalents from convertible preferred stock (Note 5) | 0 | 3,469,000 | 4,778,000 | |||||||||||||
Vested awards of restricted stock | 145,000 | 174,000 | 106,000 | |||||||||||||
Average Shares - Basic | 79,799,000 | 89,201,000 | 91,557,000 | |||||||||||||
Dilutive Effect of Common Stock Equivalents: | ||||||||||||||||
Stock options and restricted stock | 618,000 | [1] | 556,000 | [1] | 0 | [1] | ||||||||||
Average Shares – Diluted | 80,417,000 | [1] | 89,757,000 | [1] | 91,557,000 | [1] | ||||||||||
Net Earnings (Loss) Per Share of Common Stock: | ||||||||||||||||
Basic (dollars per share) | $ 0.11 | $ 0.73 | $ 0.27 | $ 0.21 | $ 1.36 | $ 0.48 | $ 0.04 | $ 0.18 | $ 1.32 | $ 1.98 | $ (0.49) | |||||
Diluted (dollars per share) | $ 0.11 | $ 0.72 | $ 0.27 | $ 0.21 | $ 1.35 | $ 0.48 | $ 0.04 | $ 0.18 | $ 1.31 | $ 1.96 | $ (0.49) | |||||
Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding Shares Above Entities Stock Price (in shares) | 1,214,365 | |||||||||||||||
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Asset Retirement Obligations (Details) (USD $)
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12 Months Ended | |||||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liability Beginning Balance | $ 79,233,000 | $ 76,637,000 | $ 70,963,000 | [1] | ||
Liabilities incurred | 0 | 60,000 | 532,000 | |||
Liabilities settled | (25,000) | (4,000) | (603,000) | |||
Accretion expense | 6,685,000 | 6,114,000 | 6,019,000 | |||
Revisions to estimated cash flows | (3,574,000) | (274,000) | ||||
Liability Ending Balance | 85,893,000 | 79,233,000 | 76,637,000 | |||
Asset Retirement Obligation | 85,893,000 | 79,233,000 | 76,637,000 | |||
Public Service Company of New Mexico [Member]
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Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liability Beginning Balance | 78,425,000 | 75,888,000 | 70,099,000 | [1] | ||
Liabilities incurred | 0 | 60,000 | 531,000 | |||
Liabilities settled | 0 | 0 | (413,000) | |||
Accretion expense | 6,617,000 | 6,051,000 | 5,945,000 | |||
Revisions to estimated cash flows | (3,574,000) | (274,000) | ||||
Liability Ending Balance | 85,042,000 | 78,425,000 | 75,888,000 | |||
Asset Retirement Obligation | 85,042,000 | 78,425,000 | 75,888,000 | |||
Texas-New Mexico Power Company [Member]
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Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liability Beginning Balance | 699,000 | 648,000 | 771,000 | [1] | ||
Liabilities incurred | 0 | 0 | 0 | |||
Liabilities settled | (25,000) | (4,000) | (190,000) | |||
Accretion expense | 58,000 | 55,000 | 67,000 | |||
Revisions to estimated cash flows | 0 | 0 | ||||
Liability Ending Balance | 732,000 | 699,000 | 648,000 | |||
Asset Retirement Obligation | 732,000 | 699,000 | 648,000 | |||
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member]
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Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Nuclear Decommissioning License Extension Term | 20 years | |||||
Asset Retirement Obligation, Period Increase (Decrease) | $ (4,200,000) | |||||
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Financing (Tables)
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Dec. 31, 2012
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt [Table Text Block] | Short-term debt outstanding consists of:
* This line of credit was allowed to expire in August 2012. |
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Schedule of Long-term Debt Instruments [Table Text Block] | Information concerning long-term debt outstanding is as follows:
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Schedule of Maturities of Long-term Debt [Table Text Block] | Reflecting mandatory tender dates, long-term debt matures as follows:
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Summary of Business and Significant Accounting Policies (Inventories/Depreciation and Amortization) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 59,643 | 54,231 | |
Coal [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 19,231 | 17,175 | |
Materials and supplies [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 40,412 | 37,056 | |
Public Service Company of New Mexico [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 56,790 | 51,521 | |
Public Service Company of New Mexico [Member] | Coal [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 19,231 | 17,175 | |
Public Service Company of New Mexico [Member] | Materials and supplies [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 37,559 | 34,346 | |
Public Service Company of New Mexico [Member] | Electric plant [Member]
|
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Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used (as a percent) | 2.25% | 2.24% | 2.24% |
Public Service Company of New Mexico [Member] | Common, intangible, and general plant [Member]
|
|||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used (as a percent) | 5.35% | 6.03% | 5.63% |
Texas-New Mexico Power Company [Member]
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 2,853 | 2,710 | |
Depreciation average rates used (as a percent) | 3.56% | 3.41% | 3.39% |
Texas-New Mexico Power Company [Member] | Coal [Member]
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 0 | 0 | |
Texas-New Mexico Power Company [Member] | Materials and supplies [Member]
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Public Utilities, Inventory [Line Items] | |||
Inventory, Net | 2,853 | 2,710 |
Fair Value of Derivative and Other Financial Instruments, Margin, Notional Amounts, Credit Rating (Details) (PNMR and PNM [Member], USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Derivative [Line Items] | ||
Contractual Liability | $ 2,933 | $ 4,036 |
Existing Cash Collateral | 0 | 0 |
Net Exposure | $ 2,777 | $ 4,036 |
Commodity Contract [Member] | Economic hedges [Member] | Derivative Long Position [Member]
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Derivative [Line Items] | ||
Volume positions (MMBTU/ MWh) | (2,477,520,000) | 1,499,000,000 |
Financing Schedule of Long-term Debt Maturities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
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Long-term Debt, by Maturity [Abstract] | |
2013 | $ 2,530 |
2014 | 50,000 |
2015 | 181,892 |
2016 | 0 |
2017 | 57,000 |
Therafter | 1,385,070 |
Total | 1,676,492 |
PNMR [Member]
|
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Long-term Debt, by Maturity [Abstract] | |
2013 | 2,530 |
2014 | 0 |
2015 | 142,592 |
2016 | 0 |
2017 | 0 |
Therafter | 0 |
Total | 145,122 |
Public Service Company of New Mexico [Member]
|
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Long-term Debt, by Maturity [Abstract] | |
2013 | 0 |
2014 | 0 |
2015 | 39,300 |
2016 | 0 |
2017 | 57,000 |
Therafter | 1,119,570 |
Total | 1,215,870 |
Texas-New Mexico Power Company [Member]
|
|
Long-term Debt, by Maturity [Abstract] | |
2013 | 0 |
2014 | 50,000 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
Therafter | 265,500 |
Total | $ 315,500 |
Accumulated Other Comprehensive Income (Loss) (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | AOCI reports a measure for accumulated changes in equity that result from transactions and other economic events other than transactions with shareholders. The following table sets forth each component of AOCI, net of income taxes:
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Summary of Business and Significant Accounting Policies
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Dec. 31, 2012
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Business and Significant Accounting Policies | Summary of the Business and Significant Accounting Policies Nature of Business PNMR is an investor-owned holding company of energy and energy-related businesses. At December 31, 2012, PNMR’s primary subsidiaries are PNM and TNMP. PNM is a public utility with regulated operations primarily engaged in the generation, transmission, and distribution of electricity. TNMP is a wholly owned subsidiary of TNP, which is a holding company that is wholly owned by PNMR. TNMP provides regulated transmission and distribution services in Texas. PNMR completed the sale of First Choice, which was also a subsidiary of TNP on November 1, 2011. First Choice was a competitive retail electric provider operating in Texas. Until September 23, 2011, PNMR owned 50% of Optim Energy, which was focused on unregulated electric operations, principally within the areas of Texas covered by ERCOT. See Note 3 and Note 21. PNMR’s common stock trades on the New York Stock Exchange under the symbol PNM. Financial Statement Preparation and Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. The Notes to Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. For discussion purposes, this report will use the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP will be indicated as such. Certain amounts in the 2011 and 2010 Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2012 financial statement presentation. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events as required by GAAP. Principles of Consolidation The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates the PVNGS Capital Trust and Valencia. PNM owns undivided interests in several jointly-owned power plants and records its pro-rata share of the assets, liabilities, and expenses for those plants. PNMR shared services’ administrative and general expenses, which represent costs that are primarily driven by corporate level activities, are charged to the business segments. These services are billed at cost, except those services billed to Optim Energy, which included a profit element. Other significant intercompany transactions between PNMR, PNM, and TNMP include transmission and distribution services; lease, interest, and income tax sharing payments; and dividends paid on common stock. All intercompany transactions and balances have been eliminated. See Note 18. Accounting for the Effects of Certain Types of Regulation The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of FERC, the NMPRC, and the PUCT. Information on regulatory assets and regulatory liabilities is contained in Note 4. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. Cash and Cash Equivalents Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash equivalents. Utility Plant Utility plant is stated at cost, which includes capitalized payroll-related costs such as taxes, pension, and other fringe benefits, administrative costs and AFUDC where authorized by rate regulation. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains or losses resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to the accumulated provision for depreciation. Allowance for Funds Used During Construction As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is a non-cash item designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction) and a return on other funds (allowance for equity funds used during construction). The allowance for borrowed funds used during construction is recorded in interest expense and the allowance for equity funds used during construction is recorded in other income on the Consolidated Statements of Earnings (Loss). In 2012, 2011, and 2010, PNM recorded $7.3 million, $1.5 million, and $4.6 million of AFUDC on certain projects and TNMP recorded $1.3 million, $1.2 million, and $0.2 million. Capitalized Interest PNMR capitalizes interest on its construction projects and major computer software projects not subject to the computation of AFUDC. Interest was capitalized at the overall weighted average borrowing rate of 6.6%, 6.6%, and 6.7% for 2012, 2011, and 2010. In 2012, 2011, and 2010, PNMR’s capitalized interest was $1.2 million, $0.5 million, and $0.8 million; PNM’s was $0.8 million, $0.2 million, and $0.4 million; and TNMP had no capitalized interest. Carrying Charges on Stranded Costs TNMP’s estimate of allowable carrying charges on stranded costs that it may recover from its transmission and distribution customers is based on a Texas Supreme Court ruling and the PUCT’s application of that ruling. Materials, Supplies, and Fuel Stock Materials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Periodic aerial surveys are performed on the coal piles and adjustments are made. Inventories consisted of the following at December 31:
Investments In 1985 and 1986, PNM entered into eleven operating leases for interests in certain PVNGS generation facilities (Note 7). The 10.3% and 10.15% lessor notes that were issued by the owners of the assets subject to these leases were subsequently purchased by and are now held by the PVNGS Capital Trust, which is consolidated by PNM. Eight leases continue and are classified as operating leases. The PVNGS Capital Trust intends to hold the lessor notes until such notes mature in 2015 and 2016. Similarly, in 1985, PNM entered into two operating leases for the EIP transmission line for which the owners had issued lessor notes. In 2003, PNM acquired a 60% ownership interest in the EIP, collapsing the lease relating to it. In 2004, PNM purchased the outstanding lessor note relating to the remaining 40% interest. The remaining EIP lessor note bore interest at 10.25%, matured in 2012, and was carried on the Consolidated Balance Sheet in other investments at $2.2 million as of December 31, 2011. The PVNGS EIP lessor notes are carried at amortized cost, as were the EIP lessor notes. The Company’s other investments, including the NDT, are primarily comprised of international, United States, state, and municipal government obligations and corporate debt and equity securities. All investments are held in the Company’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. At December 31, 2012 and 2011, substantially all of these investments were classified as available for sale. PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS and, beginning in August 2012, a trust for PNM's share of post-term reclamation costs related to the coal mines serving SJGS (Note 16). PNM evaluates these investment securities for impairment on an on-going basis. Since third party investment managers have sole discretion over the purchase and sales of the NDT securities, PNM records a realized loss as an impairment for any security that has a market value that is less than cost at the end of each quarter. For the years ended December 31, 2012, 2011, and 2010, PNM recorded impairment losses on securities held in the NDT of $4.8 million, $12.5 million, and $5.0 million. No gains or losses are deferred as regulatory assets or liabilities. Unrealized gains on these investments are included in other comprehensive income, net of any related tax effect. Investment in Optim Energy Through September 23, 2011, PNMR accounted for its investment in Optim Energy using the equity method of accounting because PNMR’s ownership interest resulted in significant influence, but not control, over Optim Energy and its operations. On September 23, 2011, PNMR's ownership interest in Optim Energy was reduced to 1% and PNMR began using the cost method of accounting. On January 4, 2012, ECJV acquired PNMR's remaining 1% ownership interest at fair market value, which was determined to be zero. Through December 31, 2010, PNMR recorded its percentage share of earnings or loss of Optim Energy and carried its investment at cost, adjusted for its share of undistributed earnings or losses. PNMR’s investment in Optim Energy was reduced to zero at December 31, 2010 due to the determination that the investment was fully impaired. See Note 21. Goodwill and Other Intangible Assets Under GAAP, the Company does not amortize goodwill. Certain intangible assets are amortized over their estimated useful lives. Goodwill and non-amortizable other intangible assets are evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill and intangible assets might be impaired. Amortizable other intangible assets are amortized over the shorter of their economic or legal lives and are evaluated for impairment when events and circumstances indicate that the assets might be impaired. See Note 22. Asset Impairment Tangible long-lived assets are evaluated in relation to the future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. Revenue Recognition Operating revenues are recorded in the period of energy delivery, which includes estimated amounts for service rendered but unbilled at the end of each accounting period. The determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading and the corresponding unbilled revenue are estimated. Unbilled electric revenue is estimated based on the daily generation volumes, estimated customer usage by class, weather factors, line losses, and applicable customer rates reflecting historical trends and experience. PNM’s wholesale electricity sales are recorded as operating revenues and the wholesale electricity purchases are recorded as costs of energy sold. In accordance with GAAP, derivative contracts that are net settled or “booked-out” are recorded net in earnings. A book-out is the planned or unplanned netting of off-setting purchase and sale transactions. A book-out is a transmission mechanism to reduce congestion on the transmission system or administrative burden. For accounting purposes, a book-out is the recording of net revenues upon the settlement of a derivative contract. Unrealized gains and losses on contracts that do not qualify for the normal purchases or normal sales exception or are not designated for hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power agreements, used to hedge generation assets and purchased power costs. Changes in the fair value of economic hedges are reflected in results of operations, with changes related to economic hedges on sales included in operating revenues and changes related to economic hedges on purchases included in cost of energy sold. The Company has no trading transactions. Accounts Receivable and Allowance for Uncollectible Accounts Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company calculates the allowance for uncollectible accounts based on historical experience and estimated default rates by customer class applied to corresponding accounts receivable balances net of customer deposit coverage. The accounts receivable balances are reviewed monthly and adjustments to the allowance for uncollectible accounts and bad debt expense are made as necessary. Amounts that are deemed uncollectible are written off. Depreciation and Amortization PNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation of non-utility property is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between depreciation expense and construction projects based on the use of the equipment. Average rates used are as follows:
Amortization of Debt Acquisition Costs Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or deductions, except for amounts attributable to NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. Derivatives The Company records derivative instruments, other than those designated as normal purchases or sales, in the balance sheet as either an asset or liability measured at their fair value. GAAP requires that changes in the derivatives’ fair value be recognized currently in earnings unless specific hedge accounting or normal purchase or sale criteria are met. For qualifying hedges, an entity must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. GAAP provides that the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument be reported as a component of AOCI and be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. The results of hedge ineffectiveness and the portion of the change in fair value of a derivative that an entity has chosen to exclude from hedge effectiveness are required to be presented in current earnings. See Note 8. The Company treats all forward electric purchases and sales contracts subject to unplanned netting or book-out by the transmission provider as derivative instruments subject to mark-to-market accounting, unless the contract qualifies for the normal exception by meeting the definition of a capacity contract. Under this definition, the contract cannot permit net settlement, the seller must have the resources to serve the contract, and the buyer must be a load serving entity. GAAP gives guidance on whether realized gains and losses on derivative contracts not held for trading purposes should be reported on a net or gross basis and concludes such classification is a matter of judgment that depends on the relevant facts and circumstances. Changes in the fair value of economic hedges are reflected in results of operations and are classified between operating revenues and cost of energy according to the intent of the economic hedge. Decommissioning Costs PNM owns and leases nuclear and fossil-fuel generating facilities. In accordance with GAAP, PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the extended PVNGS license period. PVNGS Unit 3 is excluded from PNM’s retail rates while PVNGS Units 1 and 2 are included. PNM collects a provision for ultimate decommissioning of PVNGS Units 1 and 2 and its fossil-fueled generation facilities in its rates and recognizes a corresponding expense and liability for these amounts. See Note 15. In connection with both the SJGS coal agreement and the Four Corners fuel agreement, the owners are required to reimburse the mining companies for the cost of contemporaneous reclamation as well as the costs for final reclamation of the coal mines. The reclamation costs are based on site-specific studies that estimate the costs to be incurred in the future and are dependent upon numerous assumptions. PNM considers the contemporaneous reclamation costs part of the cost of its delivered coal costs. See Note 16 for a discussion of the final reclamation costs. Environmental Costs The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and in some instances may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. The Company records its environmental liabilities when site assessments or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. The Company reviews its sites and measures the liability by assessing a range of reasonably likely costs for each identified site using currently available information and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operations and maintenance, monitoring, and site closure. The ultimate cost to clean up the Company's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process. Amounts recorded for environmental expense in the years ended December 31, 2012, 2011, and 2010, as well as the amounts of environmental liabilities at December 31, 2012 and 2011 were insignificant. Pension and Other Postretirement Benefits See Note 12 for a discussion of pension and postretirement benefits expense, including a discussion of the actuarial assumptions. Stock-Based Compensation See Note 13 for a discussion of stock-based compensation expense. Income Taxes Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. GAAP requires that rate-regulated enterprises record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded at the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory liabilities and assets offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits related to rate regulated assets and amortizes them over the estimated useful lives of those assets. See Note 11. Excise Taxes The Company pays certain fees or taxes which are either considered to be an excise tax or similar to an excise tax. Substantially all of these taxes are recorded on a net basis in the Consolidated Statements of Earnings. |
Lease Commitments Narratives (Details) (USD $)
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12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
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Dec. 31, 2010
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Lease commitments | |||
Operating Lease, Extended Term | 2 years | ||
Operating Leases, Renewal Options After Original Lease Term | 6 years | ||
Public Service Company of New Mexico [Member]
|
|||
Lease commitments | |||
Cash received back from lessor | $ 55,400,000 | $ 55,600,000 | $ 56,300,000 |
Operating Leases, Renewal Options After Original Lease Term | 2 | ||
Operating Leases, Rent Expense, Net | 78,483,000 | 78,422,000 | 71,209,000 |
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station [Member]
|
|||
Lease commitments | |||
Operating Lease, Extended Term, Notice Period to Retain Leased Assets | 3 years | ||
Operating Lease, Extended Term, Notice Period to Purchase or Renewal Options | 2 years | ||
Rental Payments, Fixed renewal option period during original terms of leases | 50.00% | ||
Lease Covenant, Restriction on Conveying, Transferring, Leasing, & Dividends | 5.00% | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 167,600,000 | ||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases [Member]
|
|||
Lease commitments | |||
Annual lease payments | 33,000,000 | ||
Annual Lease Payments During Renewal Period | 16,500,000 | ||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 2 Leases [Member]
|
|||
Lease commitments | |||
Annual lease payments | 23,700,000 | ||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station and EIP [Member]
|
|||
Lease commitments | |||
Sale Leaseback Transaction, Annual Rental Payments | 69,100,000 | ||
Public Service Company of New Mexico [Member] | Navajo Nation [Member]
|
|||
Lease commitments | |||
Annual lease payments | 6,000,000 | ||
Public Service Company of New Mexico [Member] | Delta [Member]
|
|||
Lease commitments | |||
Annual lease payments | 6,000,000 | ||
Texas-New Mexico Power Company [Member]
|
|||
Lease commitments | |||
Operating Leases, Rent Expense, Net | 2,871,000 | 3,606,000 | 3,737,000 |
Corporate Headquarters [Member]
|
|||
Lease commitments | |||
Operating Leases, Rent Expense, Net | 1,900,000 | ||
Approximate Annual Total for Operating Lease Payments [Member]
|
|||
Lease commitments | |||
Operating Leases Rent Expense Return on Lessor notes Rental Payments to be Received | 39,000,000 | ||
Approximate Annual Total for Operating Lease Payments [Member]
|
|||
Lease commitments | |||
Operating Leases Rent Expense Return on Lessor notes Rental Payments to be Received | 33,000,000 | ||
Administrative and General Expense [Member]
|
|||
Lease commitments | |||
Abandonment expense | (7,400,000) | ||
Administrative and General Expense [Member] | Public Service Company of New Mexico [Member]
|
|||
Lease commitments | |||
Abandonment expense | (6,200,000) | ||
Administrative and General Expense [Member] | Texas-New Mexico Power Company [Member]
|
|||
Lease commitments | |||
Abandonment expense | $ (1,200,000) | ||
Minimum [Member] | Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases [Member]
|
|||
Lease commitments | |||
Operating Leases, Renewal Options After Original Lease Term | 2 years | ||
Maximum [Member] | Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases [Member]
|
|||
Lease commitments | |||
Operating Leases, Renewal Options After Original Lease Term | 8 years |