XML 54 R23.htm IDEA: XBRL DOCUMENT v3.6.0.2
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
Asset Retirement Obligations
AROs are recorded based on studies to estimate the amount and timing of future ARO expenditures and refect underlying assumptions, such as discount rates, estimates of the future costs for decommissioning, and the timing of the removal activities to be performed. Any changes in these assumptions underlying the required calculations may require revisions to the estimated AROs when identified. A reconciliation of the ARO liability is as follows:
 
 
PNMR
 
PNM
 
TNMP
 
(In thousands)
Liability at December 31, 2013
$
96,135

 
$
95,225

 
$
782

Liabilities incurred
—

 
—

 
—

Liabilities settled
—

 
—

 
—

Accretion expense
7,984

 
7,906

 
66

Revisions to estimated cash flows
51

 
51

 
—

Liability at December 31, 2014
104,170

 
103,182

 
848

Liabilities incurred
—

 
—

 
—

Liabilities settled
(730
)
 
(506
)
 
(224
)
Accretion expense
8,625

 
8,543

 
71

Revisions to estimated cash flows(1)
(170
)
 
(170
)
 
—

Liability at December 31, 2015
111,895

 
111,049

 
695

Liabilities incurred
—

 
—

 
—

Liabilities settled
(14
)
 
(14
)
 
—

Accretion expense
9,170

 
9,098

 
59

Revisions to estimated cash flows(2)
6,468

 
6,468

 
—

Liability at December 31, 2016
$
127,519

 
$
126,601

 
$
754


(1)  PNM has an ARO for Four Corners that includes the obligations for decommissioning of that facility. In 2015, a new decommissioning study for Four Corners was implemented reflecting updated cash flow estimates. The new study resulted in an increase of $1.0 million to the ARO. In addition, a new decommissioning study for SJGS was implemented in 2015, resulting in a $1.2 million decrease to the ARO.
(2) 
PNM has an ARO for PVNGS that includes obligations for nuclear decommissioning of that facility. In 2016, a new decommissioning study for PVNGS was implemented reflecting updated cash flow estimates. The new study resulted in an increase of $6.1 million to the ARO. In addition, an adjustment for SJGS related to the 2015 decommissioning study was implemented in 2016, resulting in a $0.3 million increase to the ARO.