Fair Value of Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value of Derivative and Other Financial Instruments [Abstract]

Summary of Derivatives

PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets:

	Economic Hedges
	September 30, 2022		December 31, 2021
	(In thousands)
Other current assets	$	5,466	$	684
Other deferred charges	170		—
	5,636		684
Other current liabilities	(17,346)		(2,275)
Other deferred credits	(2,723)		—
	(20,069)		(2,275)
Net	$	(14,433)	$	(1,591)

Schedule of Commodity Contract Volume Positions

Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM's net buy (sell) volume positions:

	Economic Hedges
	MMBTU	MWh
September 30, 2022	—	302,880
December 31, 2021	—	122,400

Schedule of Gross Realized Gains and Losses

Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(In thousands)
Equity securities:
Net gains (losses) from equity securities sold	$	(2,210)	$	(309)	$	1,735	$	5,931
Net gains (losses) from equity securities still held	(4,061)		(3,153)		(52,320)		2,388
Total net gains (losses) on equity securities	(6,271)		(3,462)		(50,585)		8,319
Available-for-sale debt securities:
Net gains (losses) on debt securities	(9,465)		5,410		(33,519)		7,789
Net gains (losses) on investment securities	$	(15,736)	$	1,948	$	(84,104)	$	16,108

Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $(7.1) million and $(28.7) million for the three and nine months ended September 30, 2022 and $0.6 million and $1.2 million for the three and nine months ended September 30, 2021.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(In thousands)
Proceeds from sales	$	92,371	$	128,683	$	323,251	$	396,870
Gross realized gains	2,366		10,986		20,089		30,290
Gross realized (losses)	(6,908)		(6,527)		(23,109)		(17,776)

Investments Classified by Contractual Maturity Date

At September 30, 2022, the available-for-sale debt securities held by PNM, had the following final maturities:

	Fair Value
	(In thousands)
Within 1 year	$	38,433
After 1 year through 5 years	64,326
After 5 years through 10 years	70,355
After 10 years through 15 years	15,098
After 15 years through 20 years	11,897
After 20 years	30,072
	$	230,181

Schedule of Investments

Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities:

			GAAP Fair Value Hierarchy
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unrealized Gains
	(In thousands)
September 30, 2022
Cash and cash equivalents	$	15,385	$	15,385	$	—
Equity securities:
Corporate stocks, common	59,781		59,781		—
Corporate stocks, preferred	5,955		1,314		4,641
Mutual funds and other	65,360		65,360		—
Available-for-sale debt securities:
U.S. government	43,175		43,175		—		$	1,182
International government	9,540		—		9,540		318
Municipals	42,287		—		42,287		9
Corporate and other	135,179				135,179		2,635
	$	376,662	$	185,015	$	191,647	$	4,144
December 31, 2021
Cash and cash equivalents	$	7,895	$	7,895	$	—
Equity securities:
Corporate stocks, common	97,626		97,626		—
Corporate stocks, preferred	9,114		3,775		5,339
Mutual funds and other	75,285		75,241		44
Available-for-sale debt securities:
U.S. government	43,128		13,204		29,924		$	214
International government	16,001		—		16,001		1,508
Municipals	47,050		—		47,050		1,807
Corporate and other	167,027		—		167,027		12,212
	$	463,126	$	197,741	$	265,385	$	15,741

Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value

The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below:

	Carrying Amount		Fair Value
September 30, 2022	(In thousands)
PNMR	$	4,078,184	$	3,694,753
PNM	2,000,635		1,763,306
TNMP	1,077,977		931,447
December 31, 2021
PNMR	$	3,698,919	$	3,915,010
PNM	1,881,110		1,975,987
TNMP	918,050		1,039,023