Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | PNM RESOURCES INC | |
Entity Central Index Key | 1,108,426 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 79,653,624 | |
Public Service Company of New Mexico [Member] | ||
Document Information [Line Items] | ||
Entity Registrant Name | PUBLIC SERVICE CO OF NEW MEXICO | |
Entity Central Index Key | 81,023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,117,799 | |
Texas-New Mexico Power Company [Member] | ||
Document Information [Line Items] | ||
Entity Registrant Name | TEXAS NEW MEXICO POWER CO | |
Entity Central Index Key | 22,767 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,358 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Electric Operating Revenues | $ 400,374 | $ 417,433 | $ 1,026,726 | $ 1,103,187 |
Operating Expenses: | ||||
Cost of energy | 108,766 | 124,255 | 282,498 | 353,939 |
Administrative and general | 46,942 | 46,375 | 139,214 | 130,161 |
Energy production costs | 31,460 | 42,168 | 112,026 | 129,627 |
Regulatory disallowances and restructuring costs | 16,451 | 0 | 17,225 | 1,744 |
Depreciation and amortization | 53,017 | 47,503 | 153,801 | 139,013 |
Transmission and distribution costs | 16,056 | 16,768 | 49,965 | 50,123 |
Taxes other than income taxes | 19,611 | 18,859 | 57,598 | 55,093 |
Total operating expenses | 292,303 | 295,928 | 812,327 | 859,700 |
Operating income | 108,071 | 121,505 | 214,399 | 243,487 |
Other Income and Deductions: | ||||
Interest income | 4,604 | 1,151 | 18,420 | 4,842 |
Gains on available-for-sale securities | 4,531 | 2,536 | 15,380 | 12,116 |
Other income | 4,884 | 6,165 | 13,413 | 16,844 |
Other (deductions) | (3,764) | (3,222) | (10,866) | (10,591) |
Net other income and deductions | 10,255 | 6,630 | 36,347 | 23,211 |
Interest Charges | 32,467 | 27,528 | 97,179 | 86,714 |
Earnings before Income Taxes | 85,859 | 100,607 | 153,567 | 179,984 |
Income Taxes | 27,303 | 35,752 | 50,094 | 61,621 |
Net Earnings | 58,556 | 64,855 | 103,473 | 118,363 |
(Earnings) Attributable to Valencia Non-controlling Interest | (4,006) | (3,678) | (11,037) | (10,909) |
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) |
Net Earnings Attributable to PNMR | 54,418 | 61,045 | 92,040 | 107,058 |
Net Earnings Available for PNM Common Stock | $ 54,418 | $ 61,045 | $ 92,040 | $ 107,058 |
Net Earnings Attributable to PNMR per Common Share: | ||||
Basic (dollars per share) | $ 0.68 | $ 0.77 | $ 1.15 | $ 1.34 |
Diluted (dollars per share) | 0.68 | 0.76 | 1.15 | 1.34 |
Dividends Declared per Common Share (dollars per share) | $ 0.22 | $ 0.200 | $ 0.66 | $ 0.600 |
Public Service Company of New Mexico [Member] | ||||
Electric Operating Revenues | $ 311,276 | $ 333,437 | $ 780,228 | $ 870,826 |
Operating Expenses: | ||||
Cost of energy | 88,565 | 105,708 | 222,376 | 299,302 |
Administrative and general | 41,370 | 41,927 | 122,553 | 118,450 |
Energy production costs | 31,460 | 42,168 | 112,026 | 129,627 |
Regulatory disallowances and restructuring costs | 16,451 | 0 | 17,225 | 1,744 |
Depreciation and amortization | 33,312 | 29,042 | 97,778 | 86,446 |
Transmission and distribution costs | 9,311 | 10,478 | 29,868 | 31,519 |
Taxes other than income taxes | 10,750 | 10,404 | 33,289 | 31,194 |
Total operating expenses | 231,219 | 239,727 | 635,115 | 698,282 |
Operating income | 80,057 | 93,710 | 145,113 | 172,544 |
Other Income and Deductions: | ||||
Interest income | 1,509 | 1,152 | 8,549 | 4,869 |
Gains on available-for-sale securities | 4,531 | 2,536 | 15,380 | 12,116 |
Other income | 3,239 | 5,369 | 9,578 | 13,661 |
Other (deductions) | (2,790) | (2,616) | (7,653) | (7,230) |
Net other income and deductions | 6,489 | 6,441 | 25,854 | 23,416 |
Interest Charges | 22,213 | 19,837 | 66,494 | 59,477 |
Earnings before Income Taxes | 64,333 | 80,314 | 104,473 | 136,483 |
Income Taxes | 19,343 | 27,258 | 32,131 | 44,560 |
Net Earnings | 44,990 | 53,056 | 72,342 | 91,923 |
(Earnings) Attributable to Valencia Non-controlling Interest | (4,006) | (3,678) | (11,037) | (10,909) |
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) |
Net Earnings Attributable to PNMR | 40,984 | 49,378 | 61,305 | 81,014 |
Net Earnings Available for PNM Common Stock | 40,852 | 49,246 | 60,909 | 80,618 |
Texas-New Mexico Power Company [Member] | ||||
Electric Operating Revenues | 89,098 | 83,996 | 246,498 | 232,361 |
Operating Expenses: | ||||
Cost of energy | 20,201 | 18,547 | 60,122 | 54,637 |
Administrative and general | 9,588 | 9,071 | 29,382 | 26,946 |
Depreciation and amortization | 16,354 | 15,016 | 45,760 | 42,065 |
Transmission and distribution costs | 6,745 | 6,290 | 20,097 | 18,604 |
Taxes other than income taxes | 7,851 | 7,405 | 20,849 | 19,782 |
Total operating expenses | 60,739 | 56,329 | 176,210 | 162,034 |
Operating income | 28,359 | 27,667 | 70,288 | 70,327 |
Other Income and Deductions: | ||||
Other income | 1,376 | 774 | 2,999 | 3,106 |
Other (deductions) | (521) | (102) | (860) | (349) |
Net other income and deductions | 855 | 672 | 2,139 | 2,757 |
Interest Charges | 7,308 | 6,855 | 22,150 | 20,636 |
Earnings before Income Taxes | 21,906 | 21,484 | 50,277 | 52,448 |
Income Taxes | 8,053 | 7,795 | 18,460 | 19,200 |
Net Earnings Attributable to PNMR | $ 13,853 | $ 13,689 | $ 31,817 | $ 33,248 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Earnings | $ 58,556 | $ 64,855 | $ 103,473 | $ 118,363 |
Unrealized Gains on Available-for-Sale Securities: | ||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit | 2,933 | (1,862) | 1,899 | 1,882 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense | (3,101) | (6,090) | (6,180) | (13,714) |
Pension Liability Adjustment: | ||||
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax expense (benefit) | 839 | 905 | 2,517 | 2,715 |
Fair Value Adjustment for Cash Flow Hedges: | ||||
Change in fair market value, net of income tax (expense) benefit of $(172), $276, $509 and $276 | 269 | (428) | (796) | (428) |
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $(79), $0, $(224) and $0 | 123 | 0 | 349 | 0 |
Total Other Comprehensive Income (Loss) | 1,063 | (7,475) | (2,211) | (9,545) |
Comprehensive Income | 59,619 | 57,380 | 101,262 | 108,818 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (4,006) | (3,678) | (11,037) | (10,909) |
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) |
Comprehensive Income Attributable to PNMR | 55,481 | 53,570 | 89,829 | 97,513 |
Public Service Company of New Mexico [Member] | ||||
Net Earnings | 44,990 | 53,056 | 72,342 | 91,923 |
Unrealized Gains on Available-for-Sale Securities: | ||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit | 2,933 | (1,862) | 1,899 | 1,882 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense | (3,101) | (6,090) | (6,180) | (13,714) |
Pension Liability Adjustment: | ||||
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax expense (benefit) | 839 | 905 | 2,517 | 2,715 |
Fair Value Adjustment for Cash Flow Hedges: | ||||
Total Other Comprehensive Income (Loss) | 671 | (7,047) | (1,764) | (9,117) |
Comprehensive Income | 45,661 | 46,009 | 70,578 | 82,806 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (4,006) | (3,678) | (11,037) | (10,909) |
Comprehensive Income Attributable to PNMR | $ 41,655 | $ 42,331 | $ 59,541 | $ 71,897 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | $ (1,877) | $ 1,200 | $ (1,216) | $ (1,213) |
Reclassification adjustment for (gains) included in net earnings, income tax expense | 1,985 | 3,925 | 3,955 | 8,838 |
Pension liability adjustment, income tax expense (benefit) | (537) | (583) | (1,611) | (1,749) |
Change in fair market value, income tax (expense) benefit | (172) | 276 | 509 | 276 |
Reclassification adjustment for (gains) losses included in net earnings (loss), income tax expense (benefit) | (79) | 0 | (224) | 0 |
Public Service Company of New Mexico [Member] | ||||
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | (1,877) | 1,200 | (1,216) | (1,213) |
Reclassification adjustment for (gains) included in net earnings, income tax expense | 1,985 | 3,925 | 3,955 | 8,838 |
Pension liability adjustment, income tax expense (benefit) | $ (537) | $ (583) | $ (1,611) | $ (1,749) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net Earnings | $ 103,473 | $ 118,363 |
Net earnings | 92,040 | 107,058 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 178,137 | 165,563 |
Deferred income tax expense | 50,302 | 62,511 |
Net unrealized (gains) losses on commodity derivatives | 2,179 | 1,251 |
Realized (gains) on available-for-sale securities | (15,380) | (12,116) |
Stock based compensation expense | 4,401 | 3,748 |
Regulatory disallowances and restructuring costs | 17,225 | 1,744 |
Other, net | (954) | (4,301) |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (1,145) | (23,783) |
Materials, supplies, and fuel stock | (4,629) | (3,629) |
Other current assets | (11,819) | 37,756 |
Other assets | 1,916 | 12,350 |
Accounts payable | 6,192 | 1,275 |
Accrued interest and taxes | 20,816 | 28,233 |
Other current liabilities | (19,431) | (12,731) |
Other liabilities | (10,297) | (40,662) |
Net cash flows from operating activities | 320,986 | 335,572 |
Cash Flows From Investing Activities: | ||
Additions to utility and non-utility plant | (502,530) | (411,606) |
Proceeds from sales of available-for-sale securities | 280,989 | 166,097 |
Purchases of available-for-sale securities | (284,706) | (166,268) |
Return of principal on PVNGS lessor notes | 8,547 | 21,694 |
Investment in Westmoreland Loan | (122,250) | 0 |
Principal repayments on Westmoreland Loan | 15,000 | 0 |
Other, net | 179 | 2,891 |
Net cash flows from investing activities | (604,771) | (387,192) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings, net | 105,300 | (3,000) |
Long-term borrowings | 503,500 | 463,605 |
Repayment of long-term debt | (288,157) | (333,066) |
Proceeds from stock option exercise | 6,668 | 7,394 |
Awards of common stock | (14,920) | (18,955) |
Dividends paid | (52,967) | (48,188) |
Valencia’s transactions with its owner | (12,327) | (12,107) |
Other, net | (1,682) | (5,402) |
Net cash flows from financing activities | 245,415 | 50,281 |
Change in Cash and Cash Equivalents | (38,370) | (1,339) |
Cash and Cash Equivalents at Beginning of Period | 46,051 | 28,274 |
Cash and Cash Equivalents at End of Period | 7,681 | 26,935 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 75,537 | 63,046 |
Income taxes paid (refunded), net | 850 | (1,636) |
Supplemental schedule of noncash investing activities: | ||
(Increase) decrease in accrued plant additions | 30,208 | (8,748) |
Public Service Company of New Mexico [Member] | ||
Cash Flows From Operating Activities: | ||
Net Earnings | 72,342 | 91,923 |
Net earnings | 61,305 | 81,014 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 122,344 | 111,371 |
Deferred income tax expense | 33,175 | 46,268 |
Net unrealized (gains) losses on commodity derivatives | 2,179 | 1,251 |
Realized (gains) on available-for-sale securities | (15,380) | (12,116) |
Regulatory disallowances and restructuring costs | 17,225 | 1,744 |
Other, net | (563) | (5,288) |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | 8,283 | (16,220) |
Materials, supplies, and fuel stock | (7,731) | (3,328) |
Other current assets | (4,005) | 36,707 |
Other assets | 10,117 | 12,126 |
Accounts payable | 6,819 | (794) |
Accrued interest and taxes | 16,146 | 22,856 |
Other current liabilities | (18,908) | (12,099) |
Other liabilities | (13,401) | (34,224) |
Net cash flows from operating activities | 228,642 | 240,177 |
Cash Flows From Investing Activities: | ||
Additions to utility and non-utility plant | (377,637) | (301,410) |
Proceeds from sales of available-for-sale securities | 280,989 | 166,097 |
Purchases of available-for-sale securities | (284,706) | (166,268) |
Return of principal on PVNGS lessor notes | 8,547 | 21,694 |
Other, net | 171 | 3,051 |
Net cash flows from investing activities | (372,636) | (276,836) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings, net | 42,400 | 0 |
Long-term borrowings | 321,000 | 313,605 |
Repayment of long-term debt | (271,000) | (214,300) |
Dividends paid | (4,538) | (46,548) |
Equity contribution from parent | 28,142 | 0 |
Valencia’s transactions with its owner | (12,327) | (12,107) |
Other, net | (928) | (4,934) |
Net cash flows from financing activities | 102,749 | 35,716 |
Change in Cash and Cash Equivalents | (41,245) | (943) |
Cash and Cash Equivalents at Beginning of Period | 43,138 | 25,480 |
Cash and Cash Equivalents at End of Period | 1,893 | 24,537 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 53,791 | 42,680 |
Income taxes paid (refunded), net | 0 | (1,450) |
Supplemental schedule of noncash investing activities: | ||
(Increase) decrease in accrued plant additions | 20,200 | (9,933) |
Texas-New Mexico Power Company [Member] | ||
Cash Flows From Operating Activities: | ||
Net earnings | 31,817 | 33,248 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 47,055 | 43,272 |
Deferred income tax expense | (739) | 3,575 |
Other, net | (391) | (125) |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (9,428) | (7,563) |
Materials, supplies, and fuel stock | 3,102 | (301) |
Other current assets | (3,570) | 2,712 |
Other assets | (8,415) | (272) |
Accounts payable | (6,758) | (210) |
Accrued interest and taxes | 22,896 | 19,757 |
Other current liabilities | (363) | 1,033 |
Other liabilities | 399 | (5,870) |
Net cash flows from operating activities | 75,605 | 89,256 |
Cash Flows From Investing Activities: | ||
Additions to utility and non-utility plant | (93,048) | (90,497) |
Net cash flows from investing activities | (93,048) | (90,497) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings, net | (59,000) | (5,000) |
Short-term borrowings (repayments) - affiliate, net | (11,800) | 25,800 |
Long-term borrowings | 60,000 | 0 |
Dividends paid | (17,965) | (19,559) |
Equity contribution from parent | 50,000 | 0 |
Other, net | (775) | 0 |
Net cash flows from financing activities | 20,460 | 1,241 |
Change in Cash and Cash Equivalents | 3,017 | 0 |
Cash and Cash Equivalents at Beginning of Period | 1 | 1 |
Cash and Cash Equivalents at End of Period | 3,018 | 1 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 15,642 | 13,308 |
Income taxes paid (refunded), net | 850 | 545 |
Supplemental schedule of noncash investing activities: | ||
(Increase) decrease in accrued plant additions | $ (10) | $ (216) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 7,681 | $ 46,051 |
Accounts receivable, net of allowance for uncollectible accounts | 92,060 | 98,699 |
Unbilled revenues | 57,705 | 52,012 |
Other receivables | 17,715 | 28,590 |
Current portion of Westmoreland Loan | 43,553 | 0 |
Materials, supplies, and fuel stock | 72,015 | 67,386 |
Regulatory assets | 7,558 | 1,070 |
Commodity derivative instruments | 3,949 | 3,813 |
Income taxes receivable | 6,904 | 5,845 |
Other current assets | 89,746 | 82,104 |
Total current assets | 398,886 | 385,570 |
Other Property and Investments: | ||
Long-term portion of Westmoreland Loan | 66,230 | 0 |
Available-for-sale securities | 271,035 | 259,042 |
Other investments | 428 | 604 |
Non-utility property | 3,404 | 3,404 |
Total other property and investments | 341,097 | 263,050 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 6,842,017 | 6,307,261 |
Less accumulated depreciation and amortization | 2,312,560 | 2,058,772 |
Net plant in service and plant held for future use | 4,529,457 | 4,248,489 |
Construction work in progress | 227,355 | 204,766 |
Nuclear fuel, net of accumulated amortization | 87,083 | 82,117 |
Net utility plant | 4,843,895 | 4,535,372 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 463,016 | 470,664 |
Goodwill | 278,297 | 278,297 |
Commodity derivative instruments | 747 | 2,622 |
Other deferred charges | 77,732 | 73,753 |
Total deferred charges and other assets | 819,792 | 825,336 |
Total assets | 6,403,670 | 6,009,328 |
Current Liabilities: | ||
Short-term debt | 355,900 | 250,600 |
Current installments of long-term debt | 101,335 | 124,979 |
Accounts payable | 76,403 | 100,419 |
Customer deposits | 11,693 | 12,216 |
Accrued interest and taxes | 80,180 | 58,306 |
Regulatory liabilities | 6,403 | 15,591 |
Commodity derivative instruments | 2,423 | 1,859 |
Dividends declared | 17,656 | 17,656 |
Other current liabilities | 49,833 | 59,494 |
Total current liabilities | 701,826 | 641,120 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 2,207,005 | 1,966,969 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 935,796 | 877,393 |
Regulatory liabilities | 468,979 | 467,413 |
Asset retirement obligations | 119,032 | 111,895 |
Accrued pension liability and postretirement benefit cost | 63,437 | 73,097 |
Commodity derivative instruments | 58 | 0 |
Other deferred credits | 137,686 | 133,692 |
Total deferred credits and other liabilities | 1,724,988 | 1,663,490 |
Total liabilities | 4,633,819 | 4,271,579 |
Commitments and Contingencies (See Note 11) | ||
Cumulative preferred stock of subsidiary without mandatory redemption requirements | 11,529 | 11,529 |
Company common stockholders’ equity: | ||
Common stock | 1,162,599 | 1,166,465 |
Accumulated other comprehensive income (loss), net of income taxes | (73,643) | (71,432) |
Retained earnings | 599,249 | 559,780 |
Total stockholders' equity | 1,688,205 | 1,654,813 |
Non-controlling interest in Valencia | 70,117 | 71,407 |
Total equity | 1,758,322 | 1,726,220 |
Total liabilities and stockholders' equity | 6,403,670 | 6,009,328 |
Public Service Company of New Mexico [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 1,893 | 43,138 |
Accounts receivable, net of allowance for uncollectible accounts | 63,109 | 78,291 |
Unbilled revenues | 47,450 | 42,641 |
Other receivables | 15,676 | 24,725 |
Affiliate receivables | 8,956 | 15,105 |
Materials, supplies, and fuel stock | 68,208 | 60,477 |
Regulatory assets | 4,364 | 0 |
Commodity derivative instruments | 3,949 | 3,813 |
Income taxes receivable | 15,621 | 14,577 |
Other current assets | 81,419 | 74,990 |
Total current assets | 310,645 | 357,757 |
Other Property and Investments: | ||
Available-for-sale securities | 271,035 | 259,042 |
Other investments | 197 | 366 |
Non-utility property | 96 | 96 |
Total other property and investments | 271,328 | 259,504 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 5,303,910 | 4,833,303 |
Less accumulated depreciation and amortization | 1,785,507 | 1,569,549 |
Net plant in service and plant held for future use | 3,518,403 | 3,263,754 |
Construction work in progress | 152,940 | 172,238 |
Nuclear fuel, net of accumulated amortization | 87,083 | 82,117 |
Net utility plant | 3,758,426 | 3,518,109 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 335,025 | 342,910 |
Goodwill | 51,632 | 51,632 |
Commodity derivative instruments | 747 | 2,622 |
Other deferred charges | 71,209 | 66,810 |
Total deferred charges and other assets | 458,613 | 463,974 |
Total assets | 4,799,012 | 4,599,344 |
Current Liabilities: | ||
Short-term debt | 42,400 | 0 |
Current installments of long-term debt | 56,862 | 124,979 |
Accounts payable | 59,003 | 72,386 |
Affiliate payables | 15,082 | 14,318 |
Customer deposits | 11,693 | 12,216 |
Accrued interest and taxes | 50,379 | 33,189 |
Regulatory liabilities | 6,403 | 15,591 |
Commodity derivative instruments | 2,423 | 1,859 |
Dividends declared | 132 | 132 |
Other current liabilities | 31,606 | 42,251 |
Total current liabilities | 275,983 | 316,921 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,574,725 | 1,455,698 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 737,780 | 696,384 |
Regulatory liabilities | 434,755 | 434,863 |
Asset retirement obligations | 118,133 | 111,049 |
Accrued pension liability and postretirement benefit cost | 57,057 | 66,285 |
Commodity derivative instruments | 58 | 0 |
Other deferred credits | 117,797 | 117,275 |
Total deferred credits and other liabilities | 1,465,580 | 1,425,856 |
Total liabilities | 3,316,288 | 3,198,475 |
Commitments and Contingencies (See Note 11) | ||
Cumulative preferred stock of subsidiary without mandatory redemption requirements | 11,529 | 11,529 |
Company common stockholders’ equity: | ||
Common stock | 1,264,918 | 1,236,776 |
Accumulated other comprehensive income (loss), net of income taxes | (73,240) | (71,476) |
Retained earnings | 209,400 | 152,633 |
Total stockholders' equity | 1,401,078 | 1,317,933 |
Non-controlling interest in Valencia | 70,117 | 71,407 |
Total equity | 1,471,195 | 1,389,340 |
Total liabilities and stockholders' equity | 4,799,012 | 4,599,344 |
Texas-New Mexico Power Company [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 3,018 | 1 |
Accounts receivable, net of allowance for uncollectible accounts | 28,951 | 20,408 |
Unbilled revenues | 10,255 | 9,371 |
Other receivables | 1,129 | 811 |
Materials, supplies, and fuel stock | 3,807 | 6,909 |
Regulatory assets | 3,194 | 1,070 |
Other current assets | 2,167 | 1,053 |
Total current assets | 52,521 | 39,623 |
Other Property and Investments: | ||
Other investments | 231 | 238 |
Non-utility property | 2,240 | 2,240 |
Total other property and investments | 2,471 | 2,478 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 1,342,081 | 1,285,727 |
Less accumulated depreciation and amortization | 435,245 | 406,516 |
Net plant in service and plant held for future use | 906,836 | 879,211 |
Construction work in progress | 45,580 | 16,561 |
Net utility plant | 952,416 | 895,772 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 127,991 | 127,754 |
Goodwill | 226,665 | 226,665 |
Other deferred charges | 4,776 | 4,847 |
Total deferred charges and other assets | 359,432 | 359,266 |
Total assets | 1,366,840 | 1,297,139 |
Current Liabilities: | ||
Short-term debt | 0 | 59,000 |
Short-term debt – affiliate | 0 | 11,800 |
Accounts payable | 9,258 | 16,006 |
Affiliate payables | 2,346 | 3,681 |
Accrued interest and taxes | 55,788 | 32,891 |
Other current liabilities | 3,012 | 2,044 |
Total current liabilities | 70,404 | 125,422 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 420,802 | 361,411 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 232,218 | 232,791 |
Regulatory liabilities | 34,224 | 32,550 |
Asset retirement obligations | 739 | 695 |
Accrued pension liability and postretirement benefit cost | 6,380 | 6,812 |
Other deferred credits | 4,841 | 4,078 |
Total deferred credits and other liabilities | 278,402 | 276,926 |
Total liabilities | 769,608 | 763,759 |
Commitments and Contingencies (See Note 11) | ||
Company common stockholders’ equity: | ||
Common stock | 64 | 64 |
Paid-in-capital | 454,166 | 404,166 |
Retained earnings | 143,002 | 129,150 |
Total stockholders' equity | 597,232 | 533,380 |
Total liabilities and stockholders' equity | $ 1,366,840 | $ 1,297,139 |
Condensed Consolidated Balance7
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for uncollectible accounts | $ 1,264 | $ 1,397 |
Accumulated depreciation, nuclear fuel | $ 50,623 | $ 44,455 |
Cumulative preferred stock of subsidiary, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock of subsidiary, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Cumulative preferred stock of subsidiary, shares issued (in shares) | 115,293 | 115,293 |
Cumulative preferred stock of subsidiary, shares outstanding (in shares) | 115,293 | 115,293 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 79,653,624 | 79,653,624 |
Common stock, shares outstanding (in shares) | 79,653,624 | 79,653,624 |
Public Service Company of New Mexico [Member] | ||
Allowance for uncollectible accounts | $ 1,264 | $ 1,397 |
Accumulated depreciation, nuclear fuel | $ 50,623 | $ 44,455 |
Cumulative preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Cumulative preferred stock, shares issued (in shares) | 115,293 | 115,293 |
Cumulative preferred stock, shares outstanding (in shares) | 115,293 | 115,293 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 39,117,799 | 39,117,799 |
Common stock, shares outstanding (in shares) | 39,117,799 | 39,117,799 |
Texas-New Mexico Power Company [Member] | ||
Common stock, par value (in dollars per share) | $ 10 | $ 10 |
Common stock, shares authorized (in shares) | 12,000,000 | 12,000,000 |
Common stock, shares issued (in shares) | 6,358 | 6,358 |
Common stock, shares outstanding (in shares) | 6,358 | 6,358 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Changes in Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Total PNMR Common Stockholders’ Equity [Member] | Common Stock [Member] | AOCI [Member] | Retained Earnings [Member] | Non-controlling Interest in Valencia [Member] | Public Service Company of New Mexico [Member] | Public Service Company of New Mexico [Member]Total PNMR Common Stockholders’ Equity [Member] | Public Service Company of New Mexico [Member]Common Stock [Member] | Public Service Company of New Mexico [Member]AOCI [Member] | Public Service Company of New Mexico [Member]Retained Earnings [Member] | Public Service Company of New Mexico [Member]Non-controlling Interest in Valencia [Member] | Texas-New Mexico Power Company [Member] | Texas-New Mexico Power Company [Member]Common Stock [Member] | Texas-New Mexico Power Company [Member]Paid-in Capital [Member] | Texas-New Mexico Power Company [Member]Retained Earnings [Member] |
Beginning balance at Dec. 31, 2015 | $ 1,726,220 | $ 1,654,813 | $ 1,166,465 | $ (71,432) | $ 559,780 | $ 71,407 | $ 1,389,340 | $ 1,317,933 | $ 1,236,776 | $ (71,476) | $ 152,633 | $ 71,407 | ||||
Beginning balance TNMP at Dec. 31, 2015 | 1,654,813 | 1,317,933 | $ 533,380 | $ 64 | $ 404,166 | $ 129,150 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net Earnings | 103,473 | 92,436 | 92,436 | 11,037 | 72,342 | 61,305 | 0 | 61,305 | 11,037 | |||||||
Net earnings | 92,040 | 61,305 | 31,817 | 31,817 | ||||||||||||
Total other comprehensive income (loss) | (2,211) | (2,211) | (2,211) | (1,764) | (1,764) | (1,764) | 0 | |||||||||
Subsidiary preferred stock dividends | (396) | (396) | (396) | |||||||||||||
Dividends declared on preferred stock | (396) | (396) | 0 | (396) | ||||||||||||
Equity contribution from parent | 28,142 | 28,142 | 28,142 | 50,000 | 0 | 50,000 | 0 | |||||||||
Dividends declared on common stock | (52,571) | (52,571) | (52,571) | (4,142) | (4,142) | 0 | (4,142) | (17,965) | (17,965) | |||||||
Proceeds from stock option exercise | 6,668 | 6,668 | 6,668 | |||||||||||||
Awards of common stock | (14,920) | (14,920) | (14,920) | |||||||||||||
Excess tax (shortfall) from stock-based payment arrangements | (15) | (15) | (15) | |||||||||||||
Stock based compensation expense | 4,401 | 4,401 | 4,401 | |||||||||||||
Valencia’s transactions with its owner | (12,327) | (12,327) | (12,327) | (12,327) | ||||||||||||
Ending balance at Sep. 30, 2016 | 1,758,322 | $ 1,688,205 | $ 1,162,599 | $ (73,643) | $ 599,249 | $ 70,117 | 1,471,195 | $ 1,401,078 | $ 1,264,918 | $ (73,240) | $ 209,400 | $ 70,117 | ||||
Ending balance TNMP at Sep. 30, 2016 | $ 1,688,205 | $ 1,401,078 | $ 597,232 | $ 64 | $ 454,166 | $ 143,002 |
Significant Accounting Policies
Significant Accounting Policies and Responsibility for Financial Statements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Responsibility for Financial Statements | Significant Accounting Policies and Responsibility for Financial Statements Financial Statement Preparation In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements reflect all normal and recurring accruals and adjustments that are necessary to present fairly the consolidated financial position at September 30, 2016 and December 31, 2015 , the consolidated results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and cash flows for the nine months ended September 30, 2016 and 2015 . 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. Weather causes the Company’s results of operations to be seasonal in nature and the results of operations presented in the accompanying Condensed Consolidated Financial Statements are not necessarily representative of operations for an entire year. The Notes to Condensed Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. This report uses the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP are so indicated. Certain amounts in the 2015 Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2016 financial statement presentation. These Condensed Consolidated Financial Statements are unaudited. Certain information and note disclosures normally included in the annual Consolidated Financial Statements have been condensed or omitted, as permitted under the applicable rules and regulations. Readers of these financial statements should refer to PNMR’s, PNM’s, and TNMP’s audited Consolidated Financial Statements and Notes thereto that are included in their respective 2015 Annual Reports on Form 10-K. 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 Condensed 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 Valencia (Note 5) and, through January 15, 2016, the PVNGS Capital Trust. 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. The agreements for the jointly-owned plants provide that if an owner were to default on its payment obligations, the non-defaulting owners would be responsible for their proportionate share of the obligations of the defaulting owner. In exchange, the non-defaulting owners would be entitled to their proportionate share of the generating capacity of the defaulting owner. There have been no such payment defaults under any of the agreements for the jointly-owned 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. Other significant intercompany transactions between PNMR, PNM, and TNMP include interest and income tax sharing payments, as well as equity transactions. All intercompany transactions and balances have been eliminated. See Note 14. Dividends on Common Stock Dividends on PNMR’s common stock are declared by its Board. The timing of the declaration of dividends is dependent on the timing of meetings and other actions of the Board. This has historically resulted in dividends considered to be attributable to the second quarter of each year being declared through actions of the Board during the third quarter of the year. The Board declared dividends on common stock considered to be for the second quarter of $0.22 per share in July 2016 and $0.20 in July 2015, which are reflected as being in the second quarter within “Dividends Declared per Common Share” on the PNMR Condensed Consolidated Statements of Earnings. The Board declared dividends on common stock considered to be for the third quarter of $0.22 per share in September 2016 and $0.20 per share in September 2015, which are reflected as being in the third quarter within “Dividends Declared per Common Share” on the PNMR Condensed Consolidated Statements of Earnings. In the nine months ended September 30, 2016, PNMR made equity contributions of $28.1 million to PNM and $50.0 million to TNMP. PNM declared and paid cash dividends on common stock to PNMR of $4.1 million and $46.2 million in the nine months ended September 30, 2016 and 2015. TNMP declared and paid cash dividends on common stock to PNMR of $18.0 million and $19.6 million in the nine months ended September 30, 2016 and 2015. New Accounting Pronouncements Information concerning recently issued accounting pronouncements that have not been adopted by the Company is presented below. Accounting Standards Update 2014-09 – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU No. 2014-09. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. When it becomes effective, the new standard will replace most existing revenue recognition guidance in GAAP. In August 2015, the FASB issued a one-year deferral in the effective date. Since the issuance of ASU No. 2014-09, the FASB also has issued additional ASUs that clarify implementation guidance regarding principal versus agent considerations, licensing, and identifying performance obligations, as well as adding certain additional practical expedients. The Company must adopt ASU 2014-09 beginning on January 1, 2018. Early adoption would be permitted beginning January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method although it is unlikely the Company would elect to early adopt the new standard. The Company is analyzing the impacts this new standard will have on its consolidated financial statements and related disclosures, but has not determined the effect of the standard on its financial reporting. Accounting Standards Update 2014-15 – Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU No. 2014-15, which requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern in connection with the preparation of financial statements for each annual and interim reporting period. Disclosure requirements associated with management’s evaluation are also outlined in the new guidance. The new standard is effective for the Company for reporting periods ending after December 15, 2016, with early adoption permitted. The Company anticipates adopting this standard as of December 31, 2016. The Company is analyzing the impacts of this new standard, but does not anticipate it will have a significant impact on the Company’s financial statements. Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, which makes targeted improvements to GAAP regarding financial instruments. The new standard eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and will require those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Also, the new standard will revise certain presentation and disclosure requirements. Under the new standard, accounting for investments in debt securities remains essentially unchanged. The new standard will be effective for the Company beginning on January 1, 2018. Early adoption of the standard is permitted. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU No. 2016-02, which will change how lessees account for leases. The ASU will require that a liability be recorded on the balance sheet for all leases based on the present value of future lease obligations. A corresponding right-of-use asset will also be recorded. Amortization of the lease obligation and the right-of-use asset for certain leases, primarily those classified as operating leases, will be on a straight-line basis, which is not expected to have a significant impact on the statements of earnings or cash flows, whereas other leases will be required to be accounted for as financing arrangements similar to the accounting treatment for capital leases under current GAAP. Also, the new standard will revise certain disclosure requirements. The new standard will be effective for the Company beginning on January 1, 2019. Early adoption of the standard is permitted. At adoption of the ASU, leases will be recognized and measured as of the earliest period presented using a modified retrospective approach. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-09 – Compensation – Stock Compensation (Topic 718) In March 2016, the FASB issued ASU No. 2016-09. The ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Currently, tax benefits resulting from deductions in excess of compensation cost on vested restricted stock and performance awards and on exercised stock options (“excess tax benefits”) are recorded to equity provided these benefits reduce taxes payable. Tax deficiencies resulting from deductions related to awards, which are below realized compensation cost upon vesting and on canceled stock options are recorded to equity. The Company has not recorded excess tax benefits to equity since 2009 because it is in a net operating loss position for income tax purposes. Upon implementation of the new standard, the Company will record a cumulative effect adjustment to recognize excess tax benefits that have not been recorded due to the Company’s net operating loss. Subsequent to implementation, all excess tax benefits and deficiencies will be recorded to tax expense on the Condensed Consolidated Income Statements and classified as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. The Company continues its process of analyzing the impacts of this new standard, but does not believe there will be any retrospective impacts to its financial statements. The Company anticipates adopting the new standard upon its required effective date of January 1, 2017. Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13. The ASU changes the way entities recognize impairment of many financial assets, including accounts receivable and investments in debt securities, by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. The new standard is effective for the Company beginning on January 1, 2020. Early adoption is permitted beginning on January 1, 2019. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-15 – Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15. The ASU eliminates diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for the Company beginning on January 1, 2018. Early adoption is permitted including adoption in an interim period. The Company is in the process of analyzing the impacts of this new standard, but does not anticipate it will have a significant impact on the Company’s financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share In accordance with GAAP, dual presentation of basic and diluted earnings per share is presented in the Condensed Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 54,418 $ 61,045 $ 92,040 $ 107,058 Average Number of Common Shares: Outstanding during period 79,654 79,654 79,654 79,654 Vested awards of restricted stock 96 100 99 103 Average Shares – Basic 79,750 79,754 79,753 79,757 Dilutive Effect of Common Stock Equivalents: Stock options and restricted stock 367 362 377 377 Average Shares – Diluted 80,117 80,116 80,130 80,134 Net Earnings Per Share of Common Stock: Basic $ 0.68 $ 0.77 $ 1.15 $ 1.34 Diluted $ 0.68 $ 0.76 $ 1.15 $ 1.34 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 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. PNM PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also provides generation service to firm-requirements wholesale customers and sells electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity into the wholesale market includes the optimization of PNM’s jurisdictional capacity, as well as the capacity from PVNGS Unit 3, which currently is not included in retail rates (Note 11). FERC has jurisdiction over wholesale power and transmission rates. TNMP TNMP is an electric utility providing regulated transmission and distribution services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. Corporate and Other The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and investments, as well as PNMR Services Company. The activities of PNMR Development and NM Capital are also included in Corporate and Other. The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. PNMR SEGMENT INFORMATION PNM TNMP Corporate and Other Consolidated (In thousands) Three Months Ended September 30, 2016 Electric operating revenues $ 311,276 $ 89,098 $ — $ 400,374 Cost of energy 88,565 20,201 — 108,766 Utility margin 222,711 68,897 — 291,608 Other operating expenses 109,342 24,184 (3,006 ) 130,520 Depreciation and amortization 33,312 16,354 3,351 53,017 Operating income (loss) 80,057 28,359 (345 ) 108,071 Interest income 1,509 — 3,095 4,604 Other income (deductions) 4,980 855 (184 ) 5,651 Interest charges (22,213 ) (7,308 ) (2,946 ) (32,467 ) Segment earnings (loss) before income taxes 64,333 21,906 (380 ) 85,859 Income taxes (benefit) 19,343 8,053 (93 ) 27,303 Segment earnings (loss) 44,990 13,853 (287 ) 58,556 Valencia non-controlling interest (4,006 ) — — (4,006 ) Subsidiary preferred stock dividends (132 ) — — (132 ) Segment earnings (loss) attributable to PNMR $ 40,852 $ 13,853 $ (287 ) $ 54,418 Nine Months Ended September 30, 2016 Electric operating revenues $ 780,228 $ 246,498 $ — $ 1,026,726 Cost of energy 222,376 60,122 — 282,498 Utility margin 557,852 186,376 — 744,228 Other operating expenses 314,961 70,328 (9,261 ) 376,028 Depreciation and amortization 97,778 45,760 10,263 153,801 Operating income (loss) 145,113 70,288 (1,002 ) 214,399 Interest income 8,549 — 9,871 18,420 Other income (deductions) 17,305 2,139 (1,517 ) 17,927 Interest charges (66,494 ) (22,150 ) (8,535 ) (97,179 ) Segment earnings (loss) before income taxes 104,473 50,277 (1,183 ) 153,567 Income taxes (benefit) 32,131 18,460 (497 ) 50,094 Segment earnings (loss) 72,342 31,817 (686 ) 103,473 Valencia non-controlling interest (11,037 ) — — (11,037 ) Subsidiary preferred stock dividends (396 ) — — (396 ) Segment earnings (loss) attributable to PNMR $ 60,909 $ 31,817 $ (686 ) $ 92,040 At September 30, 2016: Total Assets $ 4,799,012 $ 1,366,840 $ 237,818 $ 6,403,670 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate and Other Consolidated (In thousands) Three Months Ended September 30, 2015 Electric operating revenues $ 333,437 $ 83,996 $ — $ 417,433 Cost of energy 105,708 18,547 — 124,255 Utility margin 227,729 65,449 — 293,178 Other operating expenses 104,977 22,766 (3,573 ) 124,170 Depreciation and amortization 29,042 15,016 3,445 47,503 Operating income 93,710 27,667 128 121,505 Interest income 1,152 — (1 ) 1,151 Other income (deductions) 5,289 672 (482 ) 5,479 Interest charges (19,837 ) (6,855 ) (836 ) (27,528 ) Segment earnings (loss) before income taxes 80,314 21,484 (1,191 ) 100,607 Income taxes (benefit) 27,258 7,795 699 35,752 Segment earnings (loss) 53,056 13,689 (1,890 ) 64,855 Valencia non-controlling interest (3,678 ) — — (3,678 ) Subsidiary preferred stock dividends (132 ) — — (132 ) Segment earnings (loss) attributable to PNMR $ 49,246 $ 13,689 $ (1,890 ) $ 61,045 Nine Months Ended September 30, 2015 Electric operating revenues $ 870,826 $ 232,361 $ — $ 1,103,187 Cost of energy 299,302 54,637 — 353,939 Utility margin 571,524 177,724 — 749,248 Other operating expenses 312,534 65,332 (11,118 ) 366,748 Depreciation and amortization 86,446 42,065 10,502 139,013 Operating income 172,544 70,327 616 243,487 Interest income 4,869 — (27 ) 4,842 Other income (deductions) 18,547 2,757 (2,935 ) 18,369 Interest charges (59,477 ) (20,636 ) (6,601 ) (86,714 ) Segment earnings (loss) before income taxes 136,483 52,448 (8,947 ) 179,984 Income taxes (benefit) 44,560 19,200 (2,139 ) 61,621 Segment earnings (loss) 91,923 33,248 (6,808 ) 118,363 Valencia non-controlling interest (10,909 ) — — (10,909 ) Subsidiary preferred stock dividends (396 ) — — (396 ) Segment earnings (loss) attributable to PNMR $ 80,618 $ 33,248 $ (6,808 ) $ 107,058 At September 30, 2015: Total Assets $ 4,615,442 $ 1,282,766 $ 114,374 $ 6,012,582 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 At December 31, 2015, the Company adopted ASU 2015-03 – Interest – Imputation of Interest (Subtopic 835-30) and ASU 2015-17, Income Taxes (Topic 740 ) - Balance Sheet Classification of Deferred Taxes , which require that debt issuance costs be reflected as a direct reduction of the related debt liability, except for arrangements such as the Company’s revolving credit facilities, and eliminated the requirement to classify deferred tax assets and liabilities as non-current or current. The Company applied the updates retrospectively to make all periods comparable. As a result, amounts previously reported as total assets at September 30, 2015 above have been reduced to reflect the reclassifications aggregating $40.3 million for PNMR, $22.1 million for PNM, and $10.4 million for TNMP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Information regarding accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Fair Value Gains on Adjustment Available-for- Pension for Cash Sale Liability Flow Securities Adjustment Total Hedges Total (In thousands) Balance at December 31, 2015 $ 17,346 $ (88,822 ) $ (71,476 ) $ 44 $ (71,432 ) Amounts reclassified from AOCI (pre-tax) (10,135 ) 4,128 (6,007 ) 573 (5,434 ) Income tax impact of amounts reclassified 3,955 (1,611 ) 2,344 (224 ) 2,120 Other OCI changes (pre-tax) 3,115 — 3,115 (1,305 ) 1,810 Income tax impact of other OCI changes (1,216 ) — (1,216 ) 509 (707 ) Net change after income taxes (4,281 ) 2,517 (1,764 ) (447 ) (2,211 ) Balance at September 30, 2016 $ 13,065 $ (86,305 ) $ (73,240 ) $ (403 ) $ (73,643 ) Balance at December 31, 2014 $ 28,008 $ (89,763 ) $ (61,755 ) $ — $ (61,755 ) Amounts reclassified from AOCI (pre-tax) (22,552 ) 4,464 (18,088 ) — (18,088 ) Income tax impact of amounts reclassified 8,838 (1,749 ) 7,089 — 7,089 Other OCI changes (pre-tax) 3,095 — 3,095 (704 ) 2,391 Income tax impact of other OCI changes (1,213 ) — (1,213 ) 276 (937 ) Net change after income taxes (11,832 ) 2,715 (9,117 ) (428 ) (9,545 ) Balance at September 30, 2015 $ 16,176 $ (87,048 ) $ (70,872 ) $ (428 ) $ (71,300 ) Pre-tax amounts reclassified from AOCI related to “Unrealized Gains on Available-for-Sale Securities” are included in “Gains on available-for-sale securities” in the Condensed Consolidated Statements of Earnings. Pre-tax amounts reclassified from AOCI related to “Pension Liability Adjustment” are reclassified to “Operating Expenses – Administrative and general” in the Condensed Consolidated Statements of Earnings. For the nine months ended September 30, 2016 and 2015 , 24.3% and 22.4% of the pension amounts reclassified were capitalized into construction work in process and 2.5% and 2.5% were capitalized into other accounts. Pre-tax amounts reclassified from AOCI related to “Fair Value Adjustment for Cash Flow Hedges” are reclassified to “Interest Charges” in the Condensed Consolidated Statements of Earnings. An insignificant amount was capitalized as AFUDC and capitalized interest. The income tax impacts of all amounts reclassified from AOCI are included in “Income Taxes” in the Condensed Consolidated Statements of Earnings. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 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 (“VIE”). GAAP also requires continual reassessment of the primary beneficiary of a VIE. Additional information concerning PNM’s VIEs is contained in Note 9 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Valencia PNM has a PPA to purchase all of the electric capacity and energy from Valencia, a 158 MW natural gas-fired power plant near Belen, New Mexico, through May 2028. A third-party built, owns, and operates the facility while PNM is the sole purchaser of the electricity generated. PNM is obligated to pay fixed operations and maintenance and capacity charges in addition to variable operation and maintenance charges under this PPA. For the three and nine months ended September 30, 2016 , PNM paid $4.9 million and $14.5 million for fixed charges and $0.5 million and $1.1 million for variable charges. For the three and nine months ended September 30, 2015 , PNM paid $4.9 million and $14.5 million for fixed charges and $0.3 million and $0.9 million for variable charges. PNM does not have any other financial obligations related to Valencia. The assets of Valencia can only be used to satisfy obligations of Valencia and creditors of Valencia do not have any recourse against PNM’s assets. PNM has concluded that the third party entity that owns Valencia is a VIE and that PNM is the primary beneficiary of the entity under GAAP since PNM has the power to direct the activities that most significantly impact the economic performance of Valencia and will absorb the majority of the variability in the cash flows of the plant. As the primary beneficiary, PNM consolidates Valencia in its financial statements. The assets and liabilities of Valencia set forth below are immaterial to PNM and, therefore, not shown separately on the Condensed Consolidated Balance Sheets. The owner’s equity and net income of Valencia are considered attributable to non-controlling interest. Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Operating revenues $ 5,356 $ 5,182 $ 15,541 $ 15,337 Operating expenses (1,350 ) (1,504 ) (4,504 ) (4,428 ) Earnings attributable to non-controlling interest $ 4,006 $ 3,678 $ 11,037 $ 10,909 Financial Position September 30, December 31, 2016 2015 (In thousands) Current assets $ 3,506 $ 2,588 Net property, plant, and equipment 67,656 69,784 Total assets 71,162 72,372 Current liabilities 1,045 965 Owners’ equity – non-controlling interest $ 70,117 $ 71,407 During the term of the PPA, PNM has the option to purchase and own up to 50% of the plant or the VIE. The PPA specifies that the purchase price would be the greater of (i) 50% of book value reduced by related indebtedness or (ii) 50% of fair market value. On October 8, 2013, PNM notified the owner of Valencia that PNM may exercise the option to purchase 50% of the plant. As provided in the PPA, an appraisal process was initiated since the parties failed to reach agreement on fair market value within 60 days. Under the PPA, results of the appraisal process established the purchase price after which PNM was to determine in its sole discretion whether or not to exercise its option to purchase the 50% interest. The PPA also provides that the purchase price may be adjusted to reflect the period between the determination of the purchase price and the closing. The appraisal process determined the purchase price as of October 8, 2013 to be $85.0 million , prior to any adjustment to reflect the period through the closing date. Approval of the NMPRC and FERC would be required, which process could take up to 15 months. On May 30, 2014, after evaluating its alternatives with respect to Valencia, PNM notified the owner of Valencia that PNM intended to purchase 50% of the plant, subject to certain conditions. PNM’s conditions include: agreeing on the purchase price, adjusted to reflect the period between October 8, 2013 and the closing; approval of the NMPRC, including specified ratemaking treatment, and FERC; approval of the Board and PNM’s board of directors; receipt of other necessary approvals and consents; and other customary closing conditions. PNM received a letter dated June 30, 2014 from the owner of Valencia suggesting that the conditions set forth in PNM’s notification raise issues under the PPA. The owner of Valencia submitted a counter-proposal to PNM in April 2015 and the parties are continuing to have periodic discussions. PNM cannot predict if it will reach agreement with the owner of Valencia, if required regulatory and other approvals will be received, or if the purchase will be completed. PVNGS Leases PNM leases interests in Units 1 and 2 of PVNGS under arrangements, which initially were scheduled to expire on January 15, 2015 for the four Unit 1 leases and January 15, 2016 for the four Unit 2 leases. At January 15, 2015, the four Unit 1 leases were extended. At January 15, 2016, one of the Unit 2 leases was extended and PNM exercised its fair market value options to purchase the assets underlying the other three Unit 2 leases. See Note 7 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K and Note 6 for additional information regarding the leases, including PNM’s actions regarding the renewal and purchase options. See Note 12 for information concerning the NMPRC’s treatment of the purchased assets and extended leases in PNM’s NM 2015 Rate Case. Each of the lease agreements is with a different trust whose beneficial owner is an institutional investor. PNM is not the legal or tax owner of the leased assets. The beneficial owners of the trusts possess all of the voting control and pecuniary interest in the trusts. PNM is only obligated to make payments to the trusts for the scheduled semi-annual lease payments and other than as discussed in Note 6, PNM has no other financial obligations or commitments to the trusts or the beneficial owners although PNM is responsible for all decommissioning obligations related to its entire interest in PVNGS both during and after termination of the leases. Creditors of the trusts have no recourse to PNM’s assets other than with respect to the contractual lease payments. PNM has no additional rights to the assets of the trusts other than the use of the leased assets. PNM has no assets or liabilities recorded on its Condensed Consolidated Balance Sheets related to the trusts other than accrued lease payments of $3.8 million at September 30, 2016 and $18.4 million at December 31, 2015 , which are included in other current liabilities on the Condensed Consolidated Balance Sheets. Prior to their exercise or expiration, PNM’s fixed rate renewal options were considered to be variable interests in the trusts and resulted in the trusts being considered VIEs under GAAP. PNM evaluated the PVNGS lease arrangements, including actions taken with respect to the renewal and purchase options, and concluded that it did not have the power to direct the activities that most significantly impacted the economic performance of the trusts and, therefore, was not the primary beneficiary of the trusts under GAAP. Upon execution of documents establishing terms of the asset purchases or lease extensions, PNM’s variable interest in the trusts ceased to exist. Westmoreland San Juan LLC (“WSJ”) and SJCC As discussed in the subheading Coal Supply in Note 11, PNM purchases coal for SJGS from SJCC under a coal supply agreement (“CSA”). That section includes information on the purchase of SJCC by WSJ on January 31, 2016, as well as a $125.0 million loan (the “Westmoreland Loan”) from NM Capital, a subsidiary of PNMR, to WSJ, which loan provided substantially all of the funds required for the SJCC purchase, and the issuance of a $40.0 million letter of credit support under the PNMR Revolving Credit Facility to facilitate the issuance of reclamation bonds required in order for SJCC to mine coal to be supplied to SJGS. The Westmoreland Loan and the letter of credit support result in PNMR being considered to have a variable interest in WSJ, including its subsidiary, SJCC, since PNMR and NM Capital could be subject to loss in the event WSJ were to default under the Westmoreland Loan and/or performance under the letter of credit support was required. Principal payments under the Westmoreland Loan began on August 1, 2016 and are required quarterly thereafter. Interest is also paid quarterly beginning on May 1, 2016. At September 30, 2016 , the amount outstanding under the Westmoreland Loan was $110.0 million , after the August 1, 2016 scheduled principal payment of $15.0 million , and is reflected on the Condensed Consolidated Balance Sheet net of unamortized fees. In addition, interest receivable of $1.5 million is included in Other receivables. In August 2016, the $40.0 million letter of credit support was reduced to $30.3 million . The Westmoreland Loan requires that all cash flows of WSJ, in excess of normal operating expenses, capital additions, and operating reserves, be utilized for principal and interest payments under the loan until it is fully repaid. A principal payment of $15.0 million plus interest of $2.3 million is due on November 1, 2016. As of October 21, 2016, $17.3 million was held in a restricted bank account that is to be used solely to service the Westmoreland Loan. The Westmoreland Loan is secured by the assets of and the equity interests in SJCC. In the event of a default by WSJ, NM Capital would have the ability to take over the mining operations. In such event, NM Capital would likely engage a third-party mining company to operate SJCC so that operations of the mine are not disrupted. Since the acquisition of SJCC by WSJ for approximately $125.0 million is a recently negotiated, arms-length transaction between Westmoreland and BHP, the amount should approximate the fair value of SJCC. Therefore, if WSJ were to default, NM Capital should be able to acquire assets of approximately the value of the Westmoreland Loan without a significant loss. Furthermore, PNMR considers the possibility of loss under the letter of credit support to be remote since the purpose of posting the bonds is to provide assurance that SJCC performs the required reclamation of the mine site in accordance with applicable regulations and all reclamation costs are reimbursable under the CSA. Also, much of the mine reclamation activities will not be performed for many years in the future, including after the expiration of the CSA and the final maturity of the Westmoreland Loan. In addition, each of the SJGS participants has established, and funds, a trust to meet its future reclamation obligations. Both WSJ and SJCC are considered to be VIEs. PNMR’s analysis of these arrangements concluded that Westmoreland, as the parent of WSJ, has the ability to direct the SJCC mining operations, which is the factor that most significantly impacts the economic performance of WSJ and SJCC. NM Capital’s rights under the Westmoreland Loan are the typical protective rights of a lender, but do not give NM Capital any oversight over mining operations unless there is a default under the loan. Other than PNM being able to ensure that coal is supplied in adequate quantities and of sufficient quality to provide the fuel necessary to operate SJGS in a normal manner, the mining operations are solely under the control of Westmoreland and its subsidiaries, including developing mining plans, hiring of personnel, and incurring operating and maintenance expenses. Neither PNMR nor PNM has any ability to direct or influence the mining operation. Therefore, PNM’s involvement through the CSA is a protective right rather than a participating right and Westmoreland has the power to direct the activities that most significantly impact the economic performance of the SJCC. The CSA requires SJCC to deliver coal required to fuel SJGS in exchange for payment of a set price per ton, which is escalated over time for inflation. If SJCC is able to mine more efficiently than anticipated, its economic performance will be improved. Conversely, if SJCC cannot mine as efficiently as anticipated, its economic performance will be negatively impacted. Accordingly, PNMR believes Westmoreland is the primary beneficiary of WSJ and, therefore, WSJ and SJCC are not consolidated by either PNMR or PNM. The amounts outstanding under the Westmoreland Loan and the letter of credit support constitute PNMR’s maximum exposure to loss from the VIEs. |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases office buildings, vehicles, and other equipment under operating leases. In addition, PNM leases interests in Units 1 and 2 of PVNGS and, through April 1, 2015, leased an interest in the EIP transmission line. All of the Company’s leases are currently accounted for as operating leases. See Note 1. Additional information concerning the Company’s lease commitments is contained in Note 7 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K, including PNM’s actions with regard to renewal and purchase options under the PVNGS leases. The PVNGS leases were scheduled to expire on January 15, 2015 for the four Unit 1 leases and January 15, 2016 for the four Unit 2 leases. The four Unit 1 leases have been extended to expire on January 15, 2023 and one of the Unit 2 leases has been extended to expire on January 15, 2024. For the other three PVNGS Unit 2 leases, PNM exercised its fair market value options to purchase the assets underlying those leases on the expiration date of the original leases. On January 15, 2016, PNM paid $78.1 million to the lessor under one lease for 31.25 MW of the entitlement from PVNGS Unit 2 and $85.2 million to the lessors under the other two leases for 32.76 MW of the entitlement from PVNGS Unit 2. See Note 12 for information concerning the NMPRC’s treatment of the purchased assets and extended leases in PNM’s NM 2015 Rate Case. PNM is exposed to losses under the PVNGS lease arrangements upon the occurrence of certain events that PNM does not consider to be reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to PVNGS or the occurrence of specified nuclear events), PNM would be required to make specified payments to the lessors, and take title to the leased interests. If such an event had occurred as of September 30, 2016 , amounts due to the lessors under the circumstances described above would be up to $176.1 million , payable on January 15, 2017 in addition to the scheduled lease payments due on January 15, 2017. At March 31, 2015, PNM owned 60% of the EIP and leased the other 40% , under a lease that expired on April 1, 2015. PNM purchased the leased capacity at fair market value, which the parties agreed was $7.7 million , on April 1, 2015. |
Fair Value of Derivative and Ot
Fair Value of Derivative and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Derivative and Other Financial Instruments [Abstract] | |
Fair Value of Derivative and Other Financial Instruments | Fair Value of Derivative and Other Financial Instruments Additional information concerning the Company’s energy related derivative contracts and other financial instruments is contained in Note 8 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. 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 for commodity derivatives 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 fair values, there are inherent limitations in any estimation technique. Energy Related Derivative Contracts Overview The primary objective for the use of derivative instruments, including energy contracts, options, and futures, is to manage price risk associated with forecasted purchases of energy and fuel used to generate electricity, as well as managing anticipated generation capacity in excess of forecasted demand from existing customers. PNM’s energy related derivative contracts manage commodity risk. PNM is required to meet the demand and energy needs of its retail and firm-requirements wholesale customers. PNM is exposed to market risk for its share of PVNGS Unit 3 and the needs of its firm-requirements wholesale customers not covered under a FPPAC. However, as discussed below, PNM has hedging arrangements for the output of PVNGS Unit 3 through December 31, 2017, at which time PVNGS Unit 3 will be included as a jurisdictional resource to serve New Mexico retail customers. PNM’s operations are managed primarily through a net asset-backed strategy, whereby PNM’s aggregate net open forward contract position is covered by its forecasted excess generation capabilities or market purchases. PNM could be exposed to market risk if its generation capabilities were to be disrupted or if its load requirements were to be greater than anticipated. If all or a portion of load requirements were required to be covered as a result of such unexpected situations, commitments would have to be met through market purchases. Commodity Risk Marketing and procurement of energy often involve market risks associated with managing energy commodities and establishing open positions in the energy markets, primarily on a short-term basis. PNM routinely enters into various derivative instruments such as forward contracts, option agreements, and price basis swap agreements to economically hedge price and volume risk on power commitments and fuel requirements and to minimize the effect of market fluctuations in wholesale portfolios. PNM monitors the market risk of its commodity contracts using VaR calculations to maintain total exposure within management-prescribed limits in accordance with approved risk and credit policies. 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. During the nine months ended September 30, 2016 and the year ended December 31, 2015, 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. Commodity Derivatives Commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows: Economic Hedges September 30, December 31, PNMR and PNM (In thousands) Current assets $ 3,949 $ 3,813 Deferred charges 747 2,622 4,696 6,435 Current liabilities (2,423 ) (1,859 ) Long-term liabilities (58 ) — (2,481 ) (1,859 ) Net $ 2,215 $ 4,576 Included in the above table are $2.7 million of current assets and $0.6 million of deferred charges at September 30, 2016 and $3.0 million of current assets and $2.6 million of deferred charges at December 31, 2015 related to contracts for the sale of energy from PVNGS Unit 3 through 2017 at market price plus a premium. Certain of PNM’s commodity derivative instruments in the above table are subject to master netting agreements whereby assets and liabilities could be offset in the settlement process. The Company does not offset fair value, cash collateral, and accrued payable or receivable amounts recognized for derivative instruments under master netting arrangements and the above table reflects the gross amounts of assets and liabilities. The amounts that could be offset under master netting agreements were immaterial at September 30, 2016 and December 31, 2015 . At September 30, 2016 and December 31, 2015 , PNMR and PNM had no amounts recognized for the legal right to reclaim cash collateral. However, at September 30, 2016 and December 31, 2015 , amounts posted as cash collateral under margin arrangements were $3.0 million and $2.7 million for both PNMR and PNM. At September 30, 2016 and December 31, 2015 , obligations to return cash collateral were $0.1 million and $0.1 million for both PNMR and PNM. Cash collateral amounts are included in other current assets and other current liabilities on the Condensed Consolidated Balance Sheets. PNM has a NMPRC approved hedging plan to manage fuel and purchased power costs related to customers covered by its FPPAC. The table above includes $0.1 million of current assets, less than $0.1 million of deferred charges, and less than $0.1 million of current liabilities at September 30, 2016 and $0.4 million of current assets and $0.2 million of current liabilities at December 31, 2015 related to this plan. The offsets to these amounts are recorded as regulatory assets and liabilities on the Condensed Consolidated Balance Sheets. The following table presents the effect of mark-to-market commodity derivative instruments on earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented. Economic Hedges Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 PNMR and PNM (In thousands) Electric operating revenues $ 1,652 $ 6,823 $ 214 $ 7,354 Cost of energy (1 ) (78 ) (1,113 ) (227 ) Total gain (loss) $ 1,651 $ 6,745 $ (899 ) $ 7,127 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: Economic Hedges MMBTU MWh PNMR and PNM September 30, 2016 200,000 (2,924,985 ) December 31, 2015 577,481 (3,405,843 ) In connection with managing its commodity risks, the Company enters into master agreements with certain counterparties. If the Company is in a net liability position under an agreement, some agreements provide that the counterparties can request collateral from the Company if the Company’s credit rating is downgraded; other agreements provide that the counterparty may request collateral to provide it with “adequate assurance” that the Company will perform; and others have no provision for collateral. The table below presents information about the Company’s contingent requirements to provide collateral under commodity contracts having an objectively determinable collateral provision that are in net liability positions and are not fully collateralized with cash. Contractual Liability represents commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. The table only reflects cash collateral that has been posted under the existing contracts and does not reflect letters of credit under the PNM Revolving Credit Facility that have been issued as collateral. Net Exposure is the net contractual liability for all contracts, including those designated as normal purchases and normal sales, offset by existing cash collateral and by any offsets available under master netting agreements, including both asset and liability positions. Contingent Feature – Credit Rating Downgrade Contractual Liability Existing Cash Collateral Net Exposure (In thousands) PNMR and PNM September 30, 2016 $ — $ — $ — December 31, 2015 $ 839 $ — $ 839 Sale of Power from PVNGS Unit 3 Because PNM’s 134 MW share of Unit 3 at PVNGS is not currently included in retail rates, that unit’s power is being sold in the wholesale market. PVNGS Unit 3 will be included as a jurisdictional resource to serve New Mexico retail customers beginning on January 1, 2018. As of September 30, 2016 , PNM had contracted to sell 100% of PVNGS Unit 3 output through 2017, at market price plus a premium. Through hedging arrangements that are accounted for as economic hedges, PNM has established fixed rates for substantially all of the sales through 2017, which average approximately $26 per MWh in 2016 and $29 per MWh in 2017. Non-Derivative Financial Instruments The carrying amounts reflected on the Condensed Consolidated Balance Sheets approximate fair value for cash, receivables, and payables due to the short period of maturity. Available-for-sale securities are carried at fair value. Available-for-sale securities for PNMR and PNM consist of PNM assets held in the NDT for its share of decommissioning costs of PVNGS and trusts for PNM’s share of post-term reclamation costs related to the coal mines serving SJGS and Four Corners (Note 11). At September 30, 2016 and December 31, 2015 , the fair value of available-for-sale securities included $258.6 million and $249.1 million for the NDT and $12.4 million and $9.9 million for the mine reclamation trusts. The fair value and gross unrealized gains of investments in available-for-sale securities are presented in the following table. September 30, 2016 December 31, 2015 Unrealized Gains Fair Value Unrealized Gains Fair Value PNMR and PNM (In thousands) Cash and cash equivalents $ — $ 4,831 $ — $ 10,700 Equity securities: Domestic value 8,345 63,666 11,610 44,505 Domestic growth 5,619 47,996 11,163 61,078 International and other 2,868 28,304 1,569 27,961 Fixed income securities: U.S. Government 696 37,152 178 27,880 Municipals 2,490 52,459 3,672 58,576 Corporate and other 1,698 36,627 628 28,342 $ 21,716 $ 271,035 $ 28,820 $ 259,042 The proceeds and gross realized gains and losses on the disposition of available-for-sale securities for PNMR and PNM are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold. Gross realized losses shown below exclude the change in realized impairment losses of $0.1 million and $1.0 million for the three and nine months ended September 30, 2016 and $(2.4) million and $(3.2) million for the three and nine months ended September 30, 2015. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Proceeds from sales $ 86,975 $ 71,576 $ 280,989 $ 166,097 Gross realized gains $ 7,026 $ 8,998 $ 27,273 $ 22,463 Gross realized (losses) $ (2,565 ) $ (4,014 ) $ (12,913 ) $ (7,133 ) Held-to-maturity securities are those investments in debt securities that the Company has the ability and intent to hold until maturity. At September 30, 2016, held-to-maturity securities consist of the Westmoreland Loan. The Company has no available-for-sale or held-to-maturity securities for which carrying value exceeds fair value. There are no impairments considered to be “other than temporary” that are included in AOCI and not recognized in earnings. At September 30, 2016 , the available-for-sale and held-to-maturity debt securities had the following final maturities: Fair Value Available-for-Sale Held-to-Maturity PNMR and PNM PNMR (In thousands) Within 1 year $ 4,349 $ — After 1 year through 5 years 36,265 119,987 After 5 years through 10 years 24,512 — After 10 years through 15 years 10,286 — After 15 years through 20 years 9,446 — After 20 years 41,380 — $ 126,238 $ 119,987 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. The Company records any transfers between fair value hierarchy levels as of the end of each calendar quarter. There were no transfers between levels during the nine months ended September 30, 2016 and the year ended December 31, 2015 . For available-for-sale securities, Level 2 fair values are provided by the trustee utilizing a pricing service. The pricing provider predominantly uses the market approach using bid side market value based upon a hierarchy of information for specific securities or securities with similar characteristics. For commodity derivatives, Level 2 fair values are determined based on market observable inputs, which are validated using multiple broker quotes, including forward price, volatility, and interest rate curves to establish expectations of future prices. Credit valuation adjustments are made for estimated credit losses based on the overall exposure to each counterparty. For the Company’s long-term debt, Level 2 fair values are provided by an external pricing service. The pricing service primarily utilizes quoted prices for similar debt in active markets when determining fair value. For investments categorized as Level 3, including the Westmoreland Loan, PVNGS lessor notes, and certain items in other investments, fair values were determined by discounted cash flow models that take into consideration discount rates that are observable for similar types of assets and liabilities. Management of the Company independently verifies the information provided by pricing services. Items recorded at fair value on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy. There were no Level 3 fair value measurements at September 30, 2016 and December 31, 2015 for items recorded at fair value. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) September 30, 2016 (In thousands) PNMR and PNM Available-for-sale securities Cash and cash equivalents $ 4,831 $ 4,831 $ — Equity securities: Domestic value 63,666 63,666 — Domestic growth 47,996 47,996 — International and other 28,304 28,304 — Fixed income securities: U.S. Government 37,152 35,879 1,273 Municipals 52,459 — 52,459 Corporate and other 36,627 6,849 29,778 $ 271,035 $ 187,525 $ 83,510 Commodity derivative assets $ 4,696 $ — $ 4,696 Commodity derivative liabilities (2,481 ) — (2,481 ) Net $ 2,215 $ — $ 2,215 December 31, 2015 PNMR and PNM Available-for-sale securities Cash and cash equivalents $ 10,700 $ 10,700 $ — Equity securities: Domestic value 44,505 44,505 — Domestic growth 61,078 61,078 — International and other 27,961 27,961 — Fixed income securities: U.S. Government 27,880 26,608 1,272 Municipals 58,576 — 58,576 Corporate and other 28,342 6,500 21,842 $ 259,042 $ 177,352 $ 81,690 Commodity derivative assets $ 6,435 $ — $ 6,435 Commodity derivative liabilities (1,859 ) — (1,859 ) Net $ 4,576 $ — $ 4,576 The carrying amounts and fair values of investments in the Westmoreland Loan, PVNGS lessor notes, other investments, and long-term debt, which are not recorded at fair value on the Condensed Consolidated Balance Sheets are presented below: GAAP Fair Value Hierarchy Carrying Amount Fair Value Level 1 Level 2 Level 3 September 30, 2016 (In thousands) PNMR Long-term debt $ 2,308,340 $ 2,508,344 $ — $ 2,508,344 $ — Westmoreland Loan $ 109,783 $ 119,987 $ — $ — $ 119,987 Other investments $ 428 $ 1,030 $ 428 $ — $ 602 PNM Long-term debt $ 1,631,587 $ 1,768,115 $ — $ 1,768,115 $ — Other investments $ 197 $ 197 $ 197 $ — $ — TNMP Long-term debt $ 420,802 $ 482,385 $ — $ 482,385 $ — Other investments $ 231 $ 231 $ 231 $ — $ — December 31, 2015 PNMR Long-term debt $ 2,091,948 $ 2,264,869 $ — $ 2,264,869 $ — Investment in PVNGS lessor notes $ 8,587 $ 8,947 $ — $ — $ 8,947 Other investments $ 604 $ 1,269 $ 604 $ — $ 665 PNM Long-term debt $ 1,580,677 $ 1,703,209 $ — $ 1,703,209 $ — Investment in PVNGS lessor notes $ 8,587 $ 8,947 $ — $ — $ 8,947 Other investments $ 366 $ 366 $ 366 $ — $ — TNMP Long-term debt $ 361,411 $ 411,661 $ — $ 411,661 $ — Other investments $ 238 $ 238 $ 238 $ — $ — |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation PNMR has various stock-based compensation programs, including stock options, restricted stock, and performance shares granted under the Performance Equity Plan (“PEP”). Although certain PNM and TNMP employees participate in the PNMR plans, PNM and TNMP do not have separate employee stock-based compensation plans. In 2011, the Company changed its approach to awarding stock-based compensation. As a result, no stock options have been granted since 2010 and awards of restricted stock have increased. Certain restricted stock awards are subject to achieving performance or market targets. Other awards of restricted stock are only subject to time vesting requirements. Additional information concerning stock-based compensation under the PEP is contained in Note 13 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Restricted stock under the PEP refers to awards of stock subject to vesting, performance, or market conditions rather than to shares with contractual post-vesting restrictions. Generally, the awards vest ratably over three years from the grant date of the award. However, awards with performance or market conditions vest upon satisfaction of those conditions. In addition, plan provisions provide that upon retirement, participants become 100% vested in certain stock awards. The stock-based compensation expense related to restricted stock awards without performance or market conditions for awards to participants that are retirement eligible on the grant date is recognized immediately at the grant date and is not amortized. Compensation expense for other such awards is amortized to compensation expense over the shorter of the requisite vesting period, which is generally three years, or the period until the participant becomes retirement eligible. Compensation expense for performance-based shares is recognized ratably over the performance period and is adjusted periodically to reflect the level of achievement expected to be attained. Compensation expense related to market-based shares is recognized ratably over the measurement period, regardless of the actual level of achievement, provided the employees meet their service requirements. At September 30, 2016 and December 31, 2015 , PNMR had unrecognized expense related to stock awards of $5.9 million and $5.7 million , which are expected to be recognized over an average of 1.9 and 1.4 years. The grant date fair value for restricted stock and stock awards with Company internal performance targets is determined based on the market price of PNMR common stock on the date of the agreements reduced by the present value of future dividends, which will not be received prior to vesting, applied to the total number of shares that are anticipated to vest, although the number of performance shares that ultimately vest cannot be determined until after the performance periods end. The grant date fair value of stock awards with market targets is determined using Monte Carlo simulation models, which provide grant date fair values that include an expectation of the number of shares to vest at the end of the measurement period. The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Nine Months Ended September 30, Restricted Shares and Performance Based Shares 2016 2015 Expected quarterly dividends per share $ 0.22 $ 0.20 Risk-free interest rate 0.94 % 0.92 % Market-Based Shares Dividend yield 2.74 % 2.87 % Expected volatility 20.44 % 18.73 % Risk-free interest rate 0.97 % 1.00 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares, and stock options, for the nine months ended September 30, 2016 : Restricted Stock Stock Options Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Exercise Price Outstanding at December 31, 2015 245,094 $ 24.81 569,342 $ 19.35 Granted 190,276 $ 26.49 — $ — Exercised (213,812 ) $ 23.44 (241,468 ) $ 27.61 Forfeited (714 ) $ 29.54 (2,000 ) $ 12.22 Expired — $ — (8,200 ) $ 24.85 Outstanding at September 30, 2016 220,844 $ 27.58 317,674 $ 12.97 PNMR’s stock-based compensation program provides for performance and market targets through 2018. Included as granted and exercised in the above table are 79,619 previously awarded shares that were earned for the 2013 through 2015 performance measurement period and approved by the Board in February 2016 (based upon achieving market targets at “target” levels, weighted at 60% , and performance targets at “threshold” levels, weighted at 40% ). Excluded from the above table are maximums of 165,628 , 166,797 , and 147,031 shares for the three -year performance periods ending in 2016, 2017, and 2018 that would be awarded if all performance and market criteria are achieved at maximum levels and all executives remain eligible. In March 2012, the Company entered into a retention award agreement with its Chairman, President, and Chief Executive Officer under which she would receive 135,000 shares of PNMR’s common stock if PNMR meets specific market targets at the end of 2016 and she remains an employee of the Company. Under the agreement, she would receive 35,000 of the total shares if PNMR achieved specific market targets at the end of 2014. The specified market target was achieved at the end of 2014 and the Board approved her receiving the 35,000 shares in February 2015. The retention award was made under the PEP and was approved by the Board on February 28, 2012. The above table does not include the restricted stock shares that remain unvested under this retention award agreement. Effective as of January 1, 2015, the Company entered into a retention award agreement with its Executive Vice President and Chief Financial Officer under which he would receive awards of restricted stock if PNMR meets specific performance targets at the end of 2016 and 2017 and he remains an employee of the Company. If PNMR achieves the specific performance target for the period from January 1, 2015 through December 31, 2016, he would receive $100,000 of PNMR common stock based on the market value per share on the grant date in early 2017. Similarly, if PNMR achieves the specific performance target for the period from January 1, 2015 through December 31, 2017, he would receive $275,000 of PNMR common stock based on the market value per share on the grant date in early 2018. If the target for the first performance period is not met, but the target for the second performance period is met, he would receive both awards, less any amount received previously under the agreement. The retention award was made under the PEP and was approved by the Board on December 9, 2014. The above table does not include any restricted stock shares under this retention award agreement. In March 2015, the Company entered into a retention award agreement with its Chairman, President, and Chief Executive Officer under which she would receive 53,859 shares of PNMR’s common stock if PNMR meets certain performance targets at the end of 2019 and she remains an employee of the Company. Under the agreement, she would receive 17,953 of the total shares if PNMR achieves specific performance targets at the end of 2017. The retention award was made under the PEP and was approved by the Board on February 26, 2015. The above table does not include any restricted stock shares under this retention award agreement. At September 30, 2016 , the aggregate intrinsic value of stock options outstanding, all of which are exercisable, was $6.3 million with a weighted-average remaining contract life of 2.22 years. At September 30, 2016 , no outstanding stock options had an exercise price greater than the closing price of PNMR common stock on that date. The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares, and stock options: Nine Months Ended September 30, Restricted Stock 2016 2015 Weighted-average grant date fair value $ 26.49 $ 20.34 Total fair value of restricted shares that vested (in thousands) $ 5,011 $ 6,503 Stock Options Weighted-average grant date fair value of options granted $ — $ — Total fair value of options that vested (in thousands) $ — $ — Total intrinsic value of options exercised (in thousands) $ 1,208 $ 1,814 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing | Financing The Company’s financing strategy includes both short-term and long-term borrowings. The Company utilizes short-term revolving credit facilities, as well as cash flows from operations, to provide funds for both construction and operating expenditures. Depending on market and other conditions, the Company will periodically sell long-term debt or enter into term loan arrangements and use the proceeds to reduce borrowings under the revolving credit facilities. Each of the revolving credit facilities and the Company’s term loans contains one financial covenant, which requires the maintenance of debt-to-capital ratios of less than or equal to 65% and generally include customary covenants, events of default, cross default provisions, and change of control provisions. PNM must obtain NMPRC approval for any financing transaction having a maturity of more than 18 months. In addition, PNM files its annual short-term financing plan with the NMPRC. Additional information concerning financing activities is contained in Note 6 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Financing Activities On March 9, 2015, PNMR entered into a $150.0 million Term Loan Agreement (“PNMR 2015 Term Loan Agreement”) between PNMR, the lenders identified therein, and Wells Fargo Bank, National Association, as Lender and Administrative Agent. The PNMR 2015 Term Loan Agreement bears interest at a variable rate, which was 1.42% at September 30, 2016 , and must be repaid on or before March 9, 2018. In September 2015, PNMR entered into a hedging agreement whereby it effectively established a fixed interest rate of 1.927% , subject to change if there is a change in PNMR’s credit rating, for borrowings under the PNMR 2015 Term Loan Agreement for the period from January 11, 2016 through March 9, 2018. This hedge is accounted for as a cash-flow hedge and had a fair value loss of $0.7 million at September 30, 2016 , which is included in Other deferred credits on the Condensed Consolidated Balance Sheets, and a fair value gain of $0.1 million at December 31, 2015, using Level 2 inputs under GAAP determined using forward LIBOR curves under the mid-market convention to discount cash flows over the remaining term of the swap agreements. As discussed in Note 11, NM Capital, a wholly owned subsidiary of PNMR, entered into a $125.0 million term loan agreement (the “BTMU Term Loan Agreement”), among NM Capital, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”), as lender, and BTMU, as Administrative Agent, as of February 1, 2016. The BTMU Term Loan Agreement has a maturity date of February 1, 2021 and bears interest at a rate based on LIBOR plus a customary spread, which aggregated 3.51% at September 30, 2016 . PNMR, as parent company of NM Capital, has guaranteed NM Capital’s obligations to BTMU. NM Capital utilized the proceeds of the BTMU Term Loan Agreement to provide funding of $125.0 million (the “Westmoreland Loan”) to a ring-fenced, bankruptcy-remote, special-purpose entity that is a subsidiary of Westmoreland Coal Company to finance the purchase price of the stock of SJCC. The BTMU Term Loan Agreement provides that the amount outstanding thereunder must be reduced by at least $5.0 million quarterly beginning on November 1, 2016. NM Capital is also required to utilize the net proceeds of all amounts received under the Westmoreland Loan, after income taxes and fees, to make principal and interest payments on the BTMU Term Loan Agreement. The principal balance outstanding under the BTMU Term Loan Agreement was $107.8 million at September 30, 2016 . Based on scheduled payments on the Westmoreland Loan, NM Capital estimates it will make principal payments of $45.1 million on the BTMU Term Loan Agreement in the twelve months ended September 30, 2017. On December 17, 2015, TNMP entered into an agreement (the “TNMP 2015 Bond Purchase Agreement”), which provided that TNMP would issue $60.0 million aggregate principal amount of 3.53% first mortgage bonds, due 2026 (the “Series 2016A Bonds”) on or about February 10, 2016, subject to satisfaction of certain conditions. TNMP issued the Series 2016A Bonds on February 10, 2016 and used the proceeds to reduce short-term debt and intercompany debt. On May 20, 2016, PNM entered into a $175.0 million term loan agreement (the “PNM 2016 Term Loan Agreement”) between PNM and JPMorgan Chase Bank, N.A., as lender and administrative agent. The PNM 2016 Term Loan Agreement bears interest at a variable rate, which was 1.15% at September 30, 2016 , and has a maturity date of November 17, 2017. PNM used a portion of the proceeds of the PNM 2016 Term Loan Agreement to prepay without penalty the $125.0 million outstanding under the PNM Multi-draw Term Loan, which had a scheduled maturity of June 21, 2016. On September 27, 2016, PNM participated in the issuance and sale of an aggregate of $146.0 million of PCRBs by the City of Farmington, New Mexico. The proceeds from the sale were utilized to refund an aggregate of $146.0 million of outstanding PCRBs previously issued by the City of Farmington. The arrangements governing the PCRBs result in PNM reflecting the bonds as debt on its financial statements. The PCRBs issued consist of the 2016 Series A in the aggregate principal amount of $46.0 million and the 2016 Series B in the aggregate principal amount of $100.0 million . Both series bear interest at a rate of 1.875% for the period from September 27, 2016 through September 30, 2021, have a mandatory tender for remarketing on October 1, 2021, and a final maturity on April 1, 2033. On October 21, 2016, PNMR entered into a letter of credit arrangement with JPMorgan Chase Bank, N.A. under which letters of credit aggregating $30.3 million (the “JPM LOCs”) were issued to replace letters of credit issued from available capacity under the PNMR Revolving Credit Facility. The letters of credit issued from available capacity under the PNMR Revolving Credit Facility will be surrendered and canceled upon acceptance of the JPM LOCs by the surety companies that issue the reclamation bonds. The letters of credit facilitate the posting of reclamation bonds, which SJCC was required to post in connection with permits relating to the operation of the San Juan mine (Note 11). Short-term Debt The PNMR Revolving Credit Facility has a financing capacity of $300.0 million and the PNM Revolving Credit Facility has a financing capacity of $400.0 million , both of which mature on October 31, 2020. The TNMP Revolving Credit Facility is a $75.0 million revolving credit facility secured by $75.0 million aggregate principal amount of TNMP first mortgage bonds. The TNMP Revolving Credit Facility matures on September 18, 2018. PNM also has the $50.0 million PNM New Mexico Credit Facility that expires on January 8, 2018. At September 30, 2016 , the weighted average interest rate was 1.78% for the PNMR Revolving Credit Facility, 1.66% for the PNM Revolving Credit Facility, 1.68% for the PNM New Mexico Credit Facility, and 1.38% for borrowings outstanding under the twelve -month $150.0 million PNMR Term Loan Agreement, which matures in December 2016. Short-term debt outstanding consisted of: September 30, December 31, Short-term Debt 2016 2015 (In thousands) PNM: PNM Revolving Credit Facility $ 22,400 $ — PNM New Mexico Credit Facility 20,000 — TNMP Revolving Credit Facility — 59,000 PNMR: PNMR Revolving Credit Facility 163,500 41,600 PNMR Term Loan Agreement 150,000 150,000 $ 355,900 $ 250,600 In addition to the above borrowings, PNMR, PNM, and TNMP had letters of credit outstanding of $36.5 million , $2.5 million , and $0.1 million at September 30, 2016 that reduce the available capacity under their respective revolving credit facilities. At October 21, 2016 , PNMR, PNM, and TNMP had $100.4 million , $373.5 million , and $74.9 million of availability under their respective revolving credit facilities, including reductions of availability due to outstanding letters of credit, and PNM had $44.0 million of availability under the PNM New Mexico Credit Facility. Total availability at October 21, 2016 , on a consolidated basis, was $592.8 million for PNMR. As of October 21, 2016 , PNM and TNMP had no borrowings from PNMR under intercompany loan agreements. At October 21, 2016 , PNMR, PNM, and TNMP had consolidated invested cash of $1.8 million , none , and $0.3 million . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. Additional information concerning pension and OPEB plans is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Annual net periodic benefit cost (income) for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year. PNM Plans The following tables present the components of the PNM Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 35 $ 51 $ — $ — Interest cost 7,577 7,064 1,087 1,022 203 190 Expected return on plan assets (8,854 ) (9,831 ) (1,371 ) (1,403 ) — — Amortization of net (gain) loss 3,455 3,705 286 491 64 81 Amortization of prior service cost (241 ) (241 ) (7 ) (160 ) — — Net periodic benefit cost $ 1,937 $ 697 $ 30 $ 1 $ 267 $ 271 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 105 $ 153 $ — $ — Interest cost 22,731 21,191 3,260 3,067 609 570 Expected return on plan assets (26,562 ) (29,492 ) (4,113 ) (4,208 ) — — Amortization of net (gain) loss 10,365 11,115 858 1,474 192 243 Amortization of prior service cost (724 ) (724 ) (22 ) (481 ) — — Net periodic benefit cost $ 5,810 $ 2,090 $ 88 $ 5 $ 801 $ 813 PNM made contributions to its pension plan trust of zero and $30.0 million in the three and nine months ended September 30, 2015 and does not anticipate making any contributions to the pension plan in 2016 -2020, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.8% to 5.7% . Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM made contributions to the OPEB trust of $0.8 million and $2.4 million in the three and nine months ended September 30, 2016 and $0.8 million and $2.4 million in the three and nine months ended September 30, 2015 . PNM does not expect to make additional contributions to the OPEB trust in 2016 and does not expect to make contributions for 2017-2020. Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.4 million and $1.2 million in the three and nine months ended September 30, 2016 and $0.4 million and $1.2 million in the three and nine months ended September 30, 2015 and are expected to total $1.5 million during 2016 and $5.9 million for 2017-2020. TNMP Plans The following tables present the components of the TNMP Plans’ net periodic benefit cost (income): Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost (Income) Service cost $ — $ — $ 46 $ 62 $ — $ — Interest cost 826 761 169 152 10 9 Expected return on plan assets (986 ) (1,105 ) (122 ) (130 ) — — Amortization of net (gain) loss 175 195 (10 ) — 1 1 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 15 $ (149 ) $ 83 $ 84 $ 11 $ 10 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost (Income) Service cost $ — $ — $ 139 $ 185 $ — $ — Interest cost 2,478 2,282 508 456 30 27 Expected return on plan assets (2,957 ) (3,315 ) (367 ) (390 ) — — Amortization of net (gain) loss 525 586 (30 ) — 1 3 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 46 $ (447 ) $ 250 $ 251 $ 31 $ 30 TNMP made no contribution to its pension trust in 2015 and does not anticipate making any contributions in 2016 -2020, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.8% to 5.7% . Actual amounts to be funded in the future will depend on the actuarial assumptions at that time, including the appropriate discount rate. TNMP may make additional contributions at its discretion. TNMP made no contributions to the OPEB trust in the three and nine months ended September 30, 2016 and 2015. TNMP expects to make contributions to the OPEB trust totaling $0.3 million in 2016 and $1.4 million for 2017-2020. Disbursements under the executive retirement program, which are funded by TNMP and considered to be contributions to the plan, were less than $0.1 million in the three and nine months ended September 30, 2016 and 2015 and are expected to total $0.1 million during 2016 and $0.4 million in 2017-2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Overview There are various claims and lawsuits pending against the Company. The Company also is 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 periodically enters into financial commitments in connection with its business operations. Also, the Company is involved in various legal and regulatory (Note 12) 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. Nevertheless, the Company assesses legal and regulatory matters based on current information and makes judgments concerning their potential outcome, giving due consideration to the nature of the claim, the amount and nature of any damages sought, and the probability of success. Such judgments are made with the understanding that the outcome of any litigation, investigation, or 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. Except as otherwise disclosed, 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. Additional information concerning commitments and contingencies is contained in Note 16 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Commitments and Contingencies Related to the Environment Nuclear Spent Fuel and Waste Disposal Nuclear power plant operators are required to enter into spent fuel disposal contracts with the DOE that require the DOE to accept and dispose of all spent nuclear fuel and other high-level radioactive wastes generated by domestic power reactors. Although the Nuclear Waste Policy Act required the DOE to develop a permanent repository for the storage and disposal of spent nuclear fuel by 1998, the DOE announced that it would not be able to open the repository by 1998 and sought to excuse its performance of these requirements. In November 1997, the DC Circuit issued a decision preventing the DOE from excusing its own delay, but refused to order the DOE to begin accepting spent nuclear fuel. Based on this decision and the DOE’s delay, a number of utilities, including APS (on behalf of itself and the other PVNGS owners, including PNM), filed damages actions against the DOE in the Court of Federal Claims. The lawsuits filed by APS alleged that damages were incurred due to DOE’s continuing failure to remove spent nuclear fuel and high level waste from PVNGS. In August 2014, APS and DOE entered into a settlement agreement, which establishes a process for the payment of claims for costs incurred through December 31, 2016. Under the settlement agreement, APS must submit claims annually for payment of allowable costs. In the first quarter of 2015, PNM recorded $4.3 million , including $3.1 million credited back to PNM’s customers, for its share of the settlement under this process for costs incurred from July 2011 through June 2014. PNM now records estimated claims quarterly. The settlement agreement terminates upon payment of costs incurred through December 31, 2016, unless extended by mutual written agreement. PNM estimates that it will incur approximately $58.0 million (in 2013 dollars) for its share of the costs related to the on-site interim storage of spent nuclear fuel at PVNGS during the term of the operating licenses. PNM accrues these costs as a component of fuel expense as the fuel is consumed. At September 30, 2016 and December 31, 2015 , PNM had a liability for interim storage costs of $12.0 million and $12.2 million included in other deferred credits. PVNGS has sufficient capacity at its on-site ISFSI to store all of the nuclear fuel that will be irradiated during the initial operating license period, which ends in December 2027. Additionally, PVNGS has sufficient capacity at its on-site ISFSI to store a portion of the fuel that will be irradiated during the period of extended operation, which ends in November 2047. If uncertainties regarding the United States government’s obligation to accept and store spent fuel are not favorably resolved, APS will evaluate alternative storage solutions that may obviate the need to expand the ISFSI to accommodate all of the fuel that will be irradiated during the period of extended operation. On June 8, 2012, the DC Circuit issued its decision on a challenge by several states and environmental groups of the NRC’s rulemaking regarding temporary storage and permanent disposal of high level nuclear waste and spent nuclear fuel. The petitioners had challenged the NRC’s 2010 update to the agency’s Waste Confidence Decision and temporary storage rule (the “Waste Confidence Decision”). The DC Circuit found that the Waste Confidence Decision update constituted a major federal action, which, consistent with NEPA, requires either an environmental impact statement or a finding of no significant impact from the NRC’s actions. The DC Circuit found that the NRC’s evaluation of the environmental risks from spent nuclear fuel was deficient and, therefore, remanded the Waste Confidence Decision update for further action consistent with NEPA. On September 6, 2012, the NRC commissioners issued a directive to the NRC staff to proceed with development of a generic EIS to support an updated Waste Confidence Decision. In September 2013, the NRC issued its draft generic EIS to support an updated Waste Confidence Decision. On August 26, 2014, the NRC approved a final rule on the environmental effects of continued storage of spent nuclear fuel. The continued storage rule adopted the findings of the generic EIS regarding the environmental impacts of storing spent fuel at any reactor site after the reactor’s licensed period of operations. As a result, those generic impacts do not need to be re-analyzed in the environmental reviews for individual licenses. The NRC lifted its suspension on final licensing actions on all nuclear power plant licenses and renewals that went into effect when the DC Circuit issued its June 2012 decision although PVNGS had not been involved in any licensing actions affected by that decision. The August 2014 final rule has been subject to continuing legal challenges before the NRC and the United States Court of Appeals. PNM is unable to predict the outcome of this matter. In 2011, the National Association of Regulatory Utility Commissioners and the Nuclear Energy Institute challenged DOE’s 2010 determination of the adequacy of the one tenth of a cent per KWh fee (the “one-mill fee”) paid by the nation’s commercial nuclear power plant owners pursuant to their individual contracts with the DOE. On May 16, 2014, the DOE adjusted the fee to zero . PNM anticipates challenges to this action and is unable to predict its ultimate outcome. The Clean Air Act Regional Haze In 1999, EPA developed a regional haze program and regional haze rules under the CAA. The rule directs each of the 50 states to address regional haze. Pursuant to the CAA, states have the primary role to regulate visibility requirements by promulgating SIPs. States are required to establish goals for improving visibility in national parks and wilderness areas (also known as Class I areas) and to develop long-term strategies for reducing emissions of air pollutants that cause visibility impairment in their own states and for preventing degradation in other states. States must establish a series of interim goals to ensure continued progress. The first planning period specifies setting reasonable progress goals for improving visibility in Class I areas by the year 2018. In July 2005, EPA promulgated its final regional haze rule guidelines for states to conduct BART determinations for certain covered facilities, including utility boilers, built between 1962 and 1977 that have the potential to emit more than 250 tons per year of visibility impairing pollution. If it is demonstrated that the emissions from these sources cause or contribute to visibility impairment in any Class I area, then BART must be installed by 2018. SJGS BART Compliance – SJGS is a source that is subject to the statutory obligations of the CAA to reduce visibility impacts. Note 16 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K contains detailed information concerning the BART compliance process, including interactions with governmental agencies responsible for environmental oversight and the NMPRC approval process. In December 2015, PNM received NMPRC approval for the plan to comply with the EPA regional haze rule at SJGS. Under the approved plan, the installation of selective non-catalytic reduction technology (“SNCR”) was required on SJGS Units 1 and 4, which was completed in early 2016, and Units 2 and 3 are to be retired by the end of 2017. In addition to the required SNCR equipment, the NSR permit, which was required to be obtained in order to install the SNCRs, specified that SJGS Units 1 and 4 be converted to balanced draft technology (“BDT”). PNM’s share of the total costs for SNCRs and BDT equipment was $76.8 million . See Note 12 for information concerning the NMPRC’s treatment of BDT in PNM’s NM 2015 Rate Case. Although operating costs will be reduced due to the retirement of SJGS Units 2 and 3, the operating costs for SJGS Units 1 and 4 will increase with the installation of SNCR and BDT equipment. On December 16, 2015, following oral argument, the NMPRC issued a final order regarding SJGS. As provided in that order: • PNM will retire SJGS Units 2 and 3 (PNM’s current ownership interest totals 418 MW) at December 31, 2017 and recover, over 20 years, 50% of their undepreciated net book value at that date and earn a regulated return on those costs • PNM is granted a CCN to acquire an additional 132 MW in SJGS Unit 4, with an initial book value of zero , plus the costs of SNCR and other capital additions • PNM is granted a CCN for 134 MW of PVNGS Unit 3 with an initial rate base value equal to the book value as of December 31, 2017, including transmission assets associated with PVNGS Unit 3, (estimated to aggregate approximately $152 million ) • No later than December 31, 2018, and before entering into a binding agreement for post-2022 coal supply for SJGS, PNM will file its position and supporting testimony in a NMPRC case to determine the extent to which SJGS should continue serving PNM’s retail customers’ needs after mid-2022; all parties to the stipulation agree to support this case being decided within six months (to facilitate the 2018 filing, PNM anticipates developing two resource portfolios in its 2017 IRP to be filed in July 2017, one with SJGS continuing beyond mid-2022 and one where it is shutdown) • PNM is authorized to acquire 65 MW of SJGS Unit 4 as excluded utility plant; PNM and PNMR commit that no further coal-fired merchant plant will be acquired at any time by PNM, PNMR, or any PNM affiliate; PNM is not precluded from seeking a CCN to include the 65 MW or other coal capacity in rate base • Beginning January 1, 2020, for every MWh produced by 197 MW of coal-fired generation from PNM’s ownership share of SJGS, PNM will acquire and retire one MWh of RECs or allowances that include a zero-CO 2 emission attribute compliant with EPA’s Clean Power Plan; this REC retirement is in addition to what is required to meet the RPS; the cost of these RECs are to be capped at $7.0 million per year and will be recovered in rates; PNM should purchase EPA-compliant RECs from New Mexico renewable generation unless those RECs are more costly • PNM will accelerate recovery of SNCR costs on SJGS Units 1 and 4 so that the costs are fully recovered by July 1, 2022 (cost recovery for PNM’s BDT project is discussed in Note 12) • PNM will not recover approximately $20 million of other costs incurred in connection with CAA compliance • PNM’s 2014 IRP docket will be closed without other NMPRC action At December 31, 2015, PNM estimated the undepreciated net book value of SJGS Units 2 and 3 at December 31, 2017 would be approximately $255.3 million , 50% of which would be recovered over a 20 year period, including a return on the unrecovered amount at PNM’s WACC. At December 31, 2015, PNM recorded a $127.6 million regulatory disallowance to reflect the write-off of the 50% of the estimated December 31, 2017 net book value that will not be recovered. The ultimate amount of the disallowance will be dependent on the actual December 31, 2017 net book values of SJGS Units 2 and 3. Accordingly, the amount initially recorded will be adjusted periodically to reflect changes in the projected December 31, 2017 net book values. At December 31, 2015, PNM recorded losses for regulatory disallowances and restructuring costs, aggregating $165.7 million , reflecting the above disallowance, the other unrecoverable costs, and the $16.5 million increase in the estimated liability recorded for coal mine reclamation resulting from the new coal mine reclamation arrangement entered into in conjunction with the new coal supply agreement (“CSA”). Additional information about the CSA is discussed under Coal Supply below and in Note 16 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. In the three months ended March 31, 2016, PNM revised its estimates of the December 31, 2017 projected book value of SJGS Units 2 and 3 and the other unrecoverable costs, which resulted in an expense of $0.8 million that is reflected in regulatory disallowances and restructuring costs on the Condensed Consolidated Statement of Earnings. In addition, PNMR Development recorded an expense of $0.6 million for costs it was obligated to reimburse the other SJGS participants under the restructuring arrangement, which is included in other deductions on the Condensed Consolidated Statement of Earnings. In the three months ended September 30, 2016, PNM recorded $5.2 million of additional regulatory disallowances and restructuring costs, including $4.8 million related to a refinement of the estimated liability for coal mine reclamation resulting from the new coal mine reclamation arrangement and $0.4 million from a further revision of estimated December 31, 2017 projected book value of SJGS Units 2 and 3 and the other unrecoverable costs. At September 30, 2016, the carrying value for PNM’s current ownership share of SJGS Units 2 and 3 is comprised of plant in service of $471.6 million and accumulated depreciation and amortization of $201.4 million for a net undepreciated book value of $270.2 million , offset by 50% (which equals $128.6 million ) of the anticipated December 31, 2017 undepreciated net book value of SJGS Units 2 and 3 that will not be recovered, resulting in the net carrying value for SJGS Units 2 and 3 being $141.6 million at September 30, 2016. On January 14, 2016, NEE filed, with the NM Supreme Court, a Notice of Appeal of the NMPRC’s December 16, 2015 order. On July 22, 2016, NEE filed a brief alleging that the NMPRC’s decision violated NM Statutes and NMPRC regulations because PNM did not adequately consider replacement resources other than those proposed by PNM, the NMPRC did not require PNM to adequately address and mitigate ratepayer risk, the NMPRC unlawfully shifted the burden of proof, and the NMPRC’s decision was arbitrary and capricious. PNM’s response brief is due November 2, 2016. In addition, on February 5, 2016, NEE filed, with the NMPRC, a motion for reconsideration of that final order based on developments related to the loan made by NM Capital to facilitate the sale of SJCC, which is described under Coal Supply below. NEE alleged the loan is a transaction that, under the New Mexico Public Utility Act, requires prior NMPRC approval. PNM filed its response to NEE’s motion for reconsideration on February 18, 2016. The NEE motion was denied by operation of law because the NMPRC did not act on the motion. On March 31, 2016, NEE filed, with the NMPRC, a complaint against PNM regarding the financing provided by NM Capital to facilitate the sale of SJCC. The complaint alleges that PNM failed to comply with its discovery obligation in the SJGS abandonment case and requests the NMPRC to investigate whether the financing transactions could adversely affect PNM’s ability to provide electric service to its retail customers. PNM responded to the complaint on May 4, 2016. The NMPRC has taken no action on this matter. PNM cannot currently predict the outcome of these matters. SJGS Ownership Restructuring Matters – As discussed in Note 16 of the Notes to Consolidated Financial Statements in the 2015 Annual Report on Form 10-K, SJGS currently is jointly owned by PNM and eight other entities. In connection with the proposed retirement of SJGS Units 2 and 3, some of the SJGS participants expressed a desire to exit their ownership in the plant. As a result, the SJGS participants negotiated a restructuring of the ownership in SJGS and addressed the obligations of the exiting participants for plant decommissioning, mine reclamation, environmental matters, and certain future operating costs, among other items. Following mediated negotiations, the SJGS participants executed the San Juan Project Restructuring Agreement (“RA”) on July 31, 2015. The RA provides the essential terms of restructured ownership and addresses other related matters, including that the exiting participants remain obligated for their proportionate shares of environmental, mine reclamation, and certain other legacy liabilities that are attributable to activities that occurred prior to their exit. PNMR Development became a party to the RA and agreed to acquire a 65 MW ownership interest in SJGS Unit 4 on the exit date, which is anticipated to be December 31, 2017, but has obligations related to Unit 4 before then. On the exit date, PNM and PNMR Development would acquire 132 MW and 65 MW of the capacity in SJGS Unit 4 from the exiting owners for no initial cost other than funding capital improvements, including the costs of installing SNCR and BDT equipment. PNMR currently anticipates that PNMR Development would transfer the rights and obligations related to the 65 MW to PNM prior to December 31, 2017 in order to facilitate dispatch of power from that capacity. As ordered by the NMPRC, PNM would treat the 65 MW as merchant utility plant that would be excluded from retail rates. The RA became effective contemporaneously with the effectiveness of the new CSA. The effectiveness of the new CSA was dependent on the closing of the purchase of the existing coal mine operation by a new mine operator, which as discussed in Coal Supply below, occurred at 11:59 PM on January 31, 2016. The RA sets forth the terms under which PNM acquired the coal inventory of the exiting SJGS participants as of January 1, 2016 and will supply coal to the exiting participants for the period from January 1, 2016 through December 31, 2017, which arrangement provides economic benefits that are being passed on to PNM’s customers through the FPPAC. Other SJGS Matters – Although the RA results in an agreement among the SJGS participants enabling compliance with current CAA requirements, it is possible that the financial impact of climate change regulation or legislation, other environmental regulations, the result of litigation, and other business considerations, could jeopardize the economic viability of SJGS or the ability or willingness of individual participants to continue participation in the plant. Four Corners On August 6, 2012, EPA issued its Four Corners FIP with a final BART determination for Four Corners. The rule included two compliance alternatives. On December 30, 2013, APS notified EPA that the Four Corners participants selected the alternative that required APS to permanently close Units 1-3 by January 1, 2014 and install SCR post-combustion NOx controls on each of Units 4 and 5 by July 31, 2018. PNM owns a 13% interest in Units 4 and 5, but had no ownership interest in Units 1-3, which were shut down by APS on December 30, 2013. For particulate matter emissions, EPA is requiring Units 4 and 5 to meet an emission limit of 0.015 lb/MMBTU and the plant to meet a 20% opacity limit, both of which are achievable through operation of the existing baghouses. Although unrelated to BART, the final BART rule also imposes a 20% opacity limitation on certain fugitive dust emissions from Four Corners’ coal and material handling operations. PNM estimates its share of costs for post-combustion controls at Four Corners Units 4 and 5 to be up to $90.1 million , including amounts incurred through September 30, 2016 and PNM’s AFUDC. PNM will seek recovery from its ratepayers of all costs that are ultimately incurred. PNM is unable to predict the ultimate outcome of this matter. The Four Corners participants’ obligations to comply with EPA’s final BART determinations, coupled with the financial impact of climate change regulation or legislation, other environmental regulations, and other business considerations, could jeopardize the economic viability of Four Corners or the ability of individual participants to continue their participation in Four Corners. Four Corners Federal Agency Lawsuit – On December 21, 2015, several environmental groups filed a notice of intent to sue the OSM and other federal agencies under the ESA, alleging that OSM’s reliance on the Biological Opinion and Incidental Take Statement prepared in connection with a federal environmental review was not in accordance with applicable law. The environmental review was undertaken as part of the DOI’s review process necessary to allow for the effectiveness of lease amendments and related rights-of-way renewals for Four Corners. This review process also required separate environmental impact evaluations under NEPA and culminated in the issuance of a Record of Decision justifying the agency action extending the life of the plant and the adjacent mine. On April 20, 2016, the same environmental groups filed a lawsuit against OSM and other federal agencies in the United States District Court for the District of Arizona. Expanding upon the December 2015 ESA notice, the lawsuit alleges that these federal agencies violated both the ESA and NEPA in providing the federal approvals necessary to extend operations at Four Corners and the adjacent mine past July 6, 2016. The court granted APS’ motion to intervene in the litigation on August 3, 2016. Briefing on the merits of this litigation is expected to extend through May 2017. On September 15, 2016, the Navajo Transitional Energy Company, LLC (“NTEC”), the current owner of the mine providing coal to Four Corners, filed a motion to intervene for the purpose of dismissing the lawsuit based on NTEC’s tribal sovereign immunity. PNM cannot predict the timing or outcome of this matter. Carbon Dioxide Emissions On August 3, 2015, EPA established final standards to limit CO 2 emissions from power plants. EPA took three separate but related actions in which it: (1) established the final carbon pollution standards for new, modified and reconstructed power plants; (2) established the final Clean Power Plan to set standards for carbon emission reductions from existing power plants; and (3) released a proposed federal plan associated with the final Clean Power Plan. The Clean Power Plan was published on October 23, 2015. Multiple states, utilities, and trade groups subsequently filed petitions for review and motions to stay in the DC Circuit. The Clean Power Plan establishes state-by-state targets for carbon emissions reduction and establishes deadlines for states to submit initial plans to EPA by September 6, 2016, with a potential two -year extension, and final plans by 2018. Those deadlines will be adjusted due to the stay of the Clean Power Plan issued by the US Supreme Court and pending litigation described below. State plans can be based on either an emission standards (rate or mass) approach or a state measures approach. Under an emission standards approach, federally enforceable emission limits are placed directly on affected units in the state. A state measures approach must meet equivalent rates statewide, but may include some elements, such as renewable energy or energy efficiency requirements, that are not federally enforceable. State measures plans may only be used with mass-based goals and must include “backstop” federally enforceable standards that will become effective if the state measures fail to achieve the expected level of emission reductions. On January 21, 2016, the DC Circuit denied petitions to stay the Clean Power Plan. On January 26, 2016, 29 states and state agencies filed a petition to the US Supreme Court asking the court to reverse the DC Circuit’s decision and stay the implementation of the Clean Power Plan. On February 9, 2016, the US Supreme Court granted the applications to stay the Clean Power Plan pending judicial review of the rule. The US Supreme Court issued a one-page order that stated, “The EPA rule to have states cut power sector carbon dioxide (CO 2 ) emissions 32% by 2030 is stayed pending disposition of the applicants’ petitions for review in the United States Court of Appeals for the District of Columbia Circuit.” The vote was 5-4 among the US Supreme Court Justices. The decision means the Clean Power Plan is not in effect and states are not obliged to comply with its requirements. If the rule prevails through the legal challenges, states will be able to resume preparing state plans where they left off and may still have six more months to prepare initial plans and 2.5 years for final plans. The DC Circuit heard oral arguments on September 27, 2016 in the case challenging the Clean Power Plan. A decision by the DC Circuit is not expected until sometime in 2017. The stay will remain in effect pending US Supreme Court review if such review is sought. The proposed federal plan released concurrently with the Clean Power Plan is important to Four Corners and the Navajo Nation. Since the Navajo Nation does not have primacy over its air quality program, the EPA would be the regulatory authority responsible for implementing the Clean Power Plan on the Navajo Nation. In addition, the proposed rule recommends that EPA determine it is “necessary or appropriate” for EPA to regulate CO 2 emissions on the Navajo Nation. The comment period for the proposed rule closed on January 21, 2016. APS and PNM filed separate comments with EPA on EPA’s draft plan and model trading rules, advocating that such a federal plan is neither necessary nor appropriate to protect air quality on the Navajo Nation. If EPA was to determine that it was “not necessary or appropriate”, then the Clean Power Plan would not apply to the Navajo Nation, in which case, APS has indicated the Clean Power Plan would not have a material impact on Four Corners. PNM is unable to predict the financial or operational impacts on Four Corners operations if EPA determines that a federal plan is necessary or appropriate for the Navajo Nation. On June 30, 2016, EPA published in the Federal Register the design details of its voluntary Clean Energy Incentive Program under the Clean Power Plan. The due date for comments to EPA on the program has been extended to November 1, 2016. PNM’s review of the new CO 2 emission reductions standards is ongoing and the assessment of its impacts will depend on the outcome of the judicial and regulatory proceedings. Accordingly, PNM cannot predict the impact these standards may have on its operations or a range of the potential costs of compliance. National Ambient Air Quality Standards (“NAAQS”) The CAA requires EPA to set NAAQS for pollutants considered harmful to public health and the environment. EPA has set NAAQS for certain pollutants, including NOx, SO 2 , ozone, and particulate matter. In 2010, EPA updated the primary NOx and SO 2 NAAQS to include a 1-hour maximum standard while retaining the annual standards for NOx and SO 2 and the 24-hour SO 2 standard. New Mexico is in attainment for the 1-hour NOx NAAQS. On May 13, 2014, EPA released the draft data requirements rule for the 1-hour SO 2 NAAQS, which directs state and tribal air agencies to characterize current air quality in areas with large SO 2 sources to identify maximum 1-hour SO 2 concentrations. The proposed rule also describes the process and timetable by which air regulatory agencies would characterize air quality around large SO 2 sources through ambient monitoring or modeling. This characterization will result in these areas being designated as attainment, nonattainment, or unclassified for compliance with the 1-hour SO 2 NAAQS. On March 2, 2015, the United States District Court for the Northern District of California approved a settlement that imposes deadlines for EPA to identify areas that violate the NAAQS standards for 1-hour SO 2 emissions. The settlement results from a lawsuit brought by Earthjustice on behalf of the Sierra Club and the Natural Resources Defense Council under the CAA. The consent decree requires the following: (1) within 16 months of the consent decree entry, EPA must issue area designations for areas containing non-retiring facilities that either emitted more than 16,000 tons of SO 2 in 2012 or emitted more than 2,600 tons with an emission rate of 0.45 lbs/MMBTU or higher in 2012; (2) by December 2017, EPA must issue designations for areas for which states have not adopted a new monitoring network under the proposed data requirements rule; and (3) by December 2020, EPA must issue designations for areas for which states have adopted a new monitoring network under the proposed data requirements rule. SJGS and Four Corners SO 2 emissions are below the tonnages set forth in 1) above. EPA regions sent letters to state environmental agencies explaining how EPA plans to implement the consent decree. The letters outline the schedule that EPA expects states to follow in moving forward with new SO 2 non-attainment designations. NMED did not receive a letter. On August 11, 2015, EPA released the Data Requirements Rule for SO 2 , telling states how to model or monitor to determine attainment or nonattainment with the new 1-hour SO 2 NAAQS. On June 3, 2016, NMED notified PNM that air quality modeling results indicated that SJGS was in compliance with the standard. The next compliance date is in January 2017, when NMED will submit their formal modeling report and recommendations regarding attainment status to EPA. Thereafter, every July, NMED must submit a report to EPA documenting annual SO 2 emissions from SJGS and the associated compliance status. EPA finalized revisions to its NAAQS for fine particulate matter on December 14, 2012. PNM believes the equipment modifications required under its amended NSR air permit for the installation of SNCRs and installation of BDT equipment to reduce fugitive emissions, including NOx, SO 2 and particulate matter, will assist the plant in complying with the particulate matter NAAQS. In January 2010, EPA announced it would strengthen the 8-hour ozone standard by setting a new standard in a range of 60 - 70 parts per billion (“ppb”). On October 1, 2015, EPA finalized the new ozone NAAQS and lowered both the primary and secondary 8-hour standard from 75 ppb to 70 ppb. With ozone standards becoming more stringent, fossil-fueled generation units will come under increasing pressure to reduce emissions of NOx and volatile organic compounds and to generate emission offsets for new projects or facility expansions located in nonattainment areas. On November 10, 2015, EPA proposed a rule revising its Exceptional Events Rule, which outlines the requirements for excluding air qu |
Regulatory and Rate Matters
Regulatory and Rate Matters | 9 Months Ended |
Sep. 30, 2016 | |
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 11. Additional information concerning regulatory and rate matters is contained in Note 17 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. PNM New Mexico General Rate Case (“NM 2015 Rate Case”) On August 27, 2015, PNM filed an application with the NMPRC for a general increase in retail electric rates. The application proposed a revenue increase of $123.5 million , including base non-fuel revenues of $121.7 million . The application was based on a future test year (“FTY”) period beginning October 1, 2015 and proposed a ROE of 10.5% . The primary drivers of PNM’s identified revenue deficiency were the cost of infrastructure investments, including depreciation expense based on an updated depreciation study, and a decline in energy sales as a result of PNM’s successful energy efficiency programs and economic factors. The application included several proposed changes in rate design to establish fair and equitable pricing across rate classes and to better align cost recovery with cost causation. Specific rate design proposals included higher customer and demand charges, a revenue decoupling pilot program applicable to residential and small commercial customers, a re-allocation of revenue among PNM’s customer classes, a new economic development rate, and continuation of PNM’s renewable energy rider. PNM requested that the proposed new rates become effective beginning in July 2016. On March 2, 2016, the NMPRC required PNM to file supplemental testimony regarding the treatment of renewable energy in PNM’s FPPAC due to issues identified in PNM’s 2016 renewable energy procurement plan and extended the rate suspension period to July 31, 2016. As ordered by the NMPRC, PNM filed supplemental testimony in the NM 2015 Rate Case demonstrating that PNM’s FPPAC is designed to properly recover its fuel and purchased power expenses. See Renewable Portfolio Standard below. A public hearing on the proposed new rates was held in April 2016. Subsequent to this hearing, the NMPRC ordered PNM to file additional testimony regarding PNM’s interests in PVNGS, including the 64.1 MW of PVNGS Unit 2 that PNM repurchased in January 2016, pursuant to the terms of the initial sales-leaseback transactions (Note 6). A subsequent public hearing was held in June 2016. After the close of the April hearing, the NMPRC further extended the rate suspension period through August 31, 2016. After the June hearing, PNM and other parties were ordered to file supplemental briefs and to provide final recommended revenue requirements that incorporated fuel savings that PNM implemented effective January 1, 2016 from PNM’s SJGS coal supply agreement. PNM’s filing indicated that recovery for fuel related costs would be reduced by approximately $42.9 million reflecting the current CSA (Note 11), which also reduced the request for base non-fuel related revenues by $0.2 million to $121.5 million . On August 4, 2016, the hearing examiner in the case issued a recommended decision (“RD”). The RD proposed an increase in non-fuel revenues of $41.3 million compared to the $121.5 million increase requested by PNM. Major components of the difference in the increase in non-fuel revenues, include: • The RD proposed a ROE of 9.575% compared to the 10.5% requested by PNM • The RD proposed disallowing recovery of the entire $163.3 million purchase price for the January 15, 2016 purchases of the assets underlying three leases of portions of PVNGS Unit 2 (Note 6); the RD proposed that power from the previously leased assets, aggregating 64.1 MW of capacity, be dedicated to serving New Mexico retail customers with those customers being charged for the costs of fuel and operating and maintenance expenses (other than property taxes, which are currently $0.8 million per year), but the customers would not bear any capital or depreciation costs other than those related to improvements made after the date of the original leases • The RD proposed that PNM not recover from retail customers any of the rent expense, which aggregate $18.1 million per year, under the four leases of capacity in PVNGS Unit 1 that were extended for eight years beginning January 15, 2015 and the one lease of capacity in PVNGS Unit 2 that was extended for eight years beginning January 15, 2016 (Note 6) and not recover related property taxes, which are currently $1.5 million per year; the RD proposed that power from the leased assets, aggregating 114.6 MW of capacity, be dedicated to serving New Mexico retail customers with those customers being charged for the costs of fuel and operating and maintenance expense, except that customers would not bear rental costs or property taxes • The RD proposed that PNM not recover the costs of converting SJGS Units 1 and 4 to BDT, which is required by the NSR permit for SJGS, (Note 11); PNM’s share of the costs of installing the BDT equipment was $52.3 million of which $40.0 million was included in rate base in PNM’s current rate request • The RD proposed that $4.5 million of amounts recorded as regulatory assets and deferred charges not be recovered from retail customers The RD recommended that the NMPRC find PNM was imprudent in the actions taken to purchase the previously leased 64.1 MW of capacity in PVNGS Unit 2, extending the leases for 114.6 MW of capacity of PVNGS Units 1 and 2, and installing the BDT equipment on SJGS Units 1 and 4. The RD also proposed that all fuel costs be removed from base rates and be recovered through the FPPAC. The RD would credit retail customers with 100% of the New Mexico jurisdictional portion of revenues from refined coal (a third-party pre-treatment process) at SJGS. In addition, the RD would remove recovery of the costs of power obtained from New Mexico Wind from the FPPAC and include recovery of those costs through PNM’s renewable energy rider discussed below. The RD recommended continuation of the renewable energy rider and certain aspects of PNM’s proposals regarding rate design, but would not approve certain other rate design proposals or PNM’s request for a revenue decoupling pilot program. The RD proposed approving PNM’s proposals for revised depreciation rates (with one exception), the inclusion of CWIP in rate base, and ratemaking treatment of the prepaid pension asset. The RD did not preclude PNM from supporting the prudence of the PVNGS purchases and lease renewals in its next general rate case and seeking recovery of those costs. PNM disagreed with many of the key conclusions reached by the hearing examiner in the RD and filed exceptions to defend its prudent utility investments. Other parties also filed exceptions to the RD. The NMPRC extended the rate suspension period to end on September 30, 2016. The NMPRC issued a final order on September 28, 2016 that authorizes PNM to implement an increase in non-fuel rates of $61.2 million , effective for bills sent to customers after September 30, 2016. The final order generally approved the RD, but with certain significant modifications. The modifications to the RD include: • Inclusion of the January 2016 purchase of the assets underlying three leases of capacity, aggregating 64.1 MW, of PVNGS Unit 2 at an initial rate base value of $83.7 million ; and disallowance of the recovery of the undepreciated costs of capitalized improvements made during the period the 64.1 MW was being leased by PNM, which aggregated $43.8 million when the final order was issued • Full recovery of the rent expense and property taxes associated with the extended leases for capacity, aggregating 114.6 MW, in Palo Verde Units 1 and 2 • Disallowance of the recovery of any future contribution for PVNGS decommissioning costs related to the 64.1 MW of capacity purchased in January 2016 and the 114.6 MW of capacity under the extended leases • Recovery of assumed operating and maintenance expense savings of $0.3 million annually related to BDT On September 30, 2016, PNM filed a Notice of Appeal with the NM Supreme Court regarding the final order in the NM 2015 Rate Case. Subsequently, NEE, NMIEC, and ABCWUA filed notices of cross-appeal. On October 26, 2016, PNM filed, with the NM Supreme Court, a statement of issues related to its appeal, which states PNM is appealing the NMPRC’s determination that PNM was imprudent in the actions taken to purchase the previously leased 64.1 MW of capacity in PVNGS Unit 2, extending the leases for 114.6 MW of capacity of PVNGS Units 1 and 2, and installing the BDT equipment on SJGS Units 1 and 4. Specifically, PNM’s statement indicated it is appealing the following elements of the NMPRC’s final order: • Disallowance of recovery of the full purchase price, representing fair market value, of the 64.1 MW of capacity in PVNGS Unit 2 purchased in January 2016 • Disallowance of the recovery of the undepreciated costs of capitalized improvements made during the period the 64.1 MW of capacity was leased by PNM • Disallowance of recovery of future contributions for PVNGS decommissioning attributable to previously leased capacity • Disallowance of recovery of the costs of converting SJGS Units 1 and 4 to BDT The court has taken no action with respect to the appeals. Although appeals of regulatory actions of the NMPRC have a priority at the NM Supreme Court under New Mexico law, there is no required time frame for the court to act on the appeals. As of September 30, 2016, PNM evaluated the accounting consequences of the final order in the NM 2015 Rate Case and the likelihood of being successful on the issues it is appealing in the NM Supreme Court as required under GAAP. The evaluation indicates it is reasonably possible that PNM will be successful on the issues it is appealing. If the NM Supreme Court rules in PNM’s favor on some or all of the issues, those issues would be remanded back to the NMPRC for further action. PNM estimates that it will take a minimum of 15 months, from the date PNM filed its appeal, for the NM Supreme Court to render a decision and for the NMPRC to take action on any remanded issues. During such time, the rates specified in the final order will remain in effect. Accordingly, at September 30, 2016, PNM recorded a pre-tax regulatory disallowance of $6.8 million representing 15 months of capital cost recovery of its investments in the PVNGS Unit 2 purchases, PVNGS Unit 2 capitalized improvements, and BDT that the final order disallowed. In addition, PNM recorded a pre-tax regulatory disallowance for $4.5 million of costs recorded as regulatory assets and deferred charges, which the final order disallowed and which PNM did not propose to challenge in its appeal, since PNM can no longer assert that those assets are probable of being recovered through the ratemaking process. The NMPRC’s final order approved PNM’s request to record a regulatory asset to recover a 2014 impairment of PNM’s New Mexico net operating loss carryforward resulting from an extension of the income tax provision for fifty percent bonus depreciation. The impact, net of federal income taxes, amounts to $2.1 million , which is reflected as a reduction of income tax expense on the Condensed Consolidated Statement of Earnings. PNM continues to believe that the disallowed investments, which are the subject of PNM’s appeal, were prudently incurred and that PNM is entitled to full recovery of those investments through the ratemaking process. Although PNM believes it is reasonably possible that its appeals will be successful, it cannot predict what decision the NM Supreme Court will reach or what further actions the NMPRC will take on any issues remanded to it by the court. If PNM’s appeal is unsuccessful, PNM would record further pre-tax losses related to any unsuccessful issues. The amounts of any such losses would depend on the ultimate outcome of the appeal and NMPRC process, as well as the actual amounts reflected on PNM books at the time of the resolution. However, based on the book values recorded by PNM as of September 30, 2016, the losses could include: • The remaining costs to acquire the assets previously leased under three leases aggregating 64.1 MW of PVNGS Unit 2 capacity in excess of the recovery permitted under the NMPRC’s final order; the net book value of such excess amount was $76.9 million , after considering the loss recorded at September 30, 2016 • The undepreciated costs of capitalized improvements made during the period the 64.1 MW of capacity in PVNGS Unit 2 purchased by PNM in January 2016 was being leased by PNM; the net book value of these improvements was $ 41.7 million , after considering the loss recorded at September 30, 2016 • The remaining costs to convert SJGS Units 1 and 4 to BDT; the net book value of these assets was $49.9 million , after considering the loss recorded at September 30, 2016 PNM is unable to predict the outcome of this matter. 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. PNM files annual renewable energy procurement plans for approval by the NMPRC. The NMPRC requires renewable energy portfolios to be “fully diversified.” The current diversity requirements, which are subject to the limitation of the RCT, are minimums of 30% wind, 20% solar, 3% distributed generation, and 5% other. The REA provides for streamlined proceedings for approval of utilities’ renewable energy procurement plans, assures that utilities recover 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. Currently, the RCT is set at 3% of customers’ annual electric charges. PNM makes renewable procurements consistent with the NMPRC approved plans. PNM recovers certain renewable procurement costs from customers through a rate rider. See Renewable Energy Rider below. PNM filed its 2016 renewable energy procurement plan on June 1, 2015. The plan met RPS and diversity requirements within the RCT in 2016 and 2017 using existing resources and does not propose any significant new procurements. The NMPRC approved the plan in November 2015, and, after granting a rehearing motion to consider issues regarding the rate treatment of certain customers eligible for a cap on RPS procurement costs and customers exempt from RPS procurement costs, the NMPRC again approved the plan in an order issued on February 3, 2016. The NMPRC deferred issues related to capped and exempt customers to PNM’s NM 2015 Rate Case and to a new case, which the NMPRC subsequently initiated through issuance of an order to show cause. The NM 2015 Rate Case and show cause proceedings were to examine whether PNM miscalculated the FPPAC factor and base fuel costs in its treatment of renewable energy costs and application of the renewable procurement cost caps and exemptions. On April 28, 2016, PNM filed a motion to stay this proceeding until the issuance of a final order in the NM 2015 Rate Case, based on the fact that the issues addressed in the show cause proceeding were being addressed in the NM 2015 Rate Case. On May 4, 2016, the NMPRC granted PNM’s motion. In the September 28, 2016 final order in the NM 2015 Rate Case, the NMPRC ordered the cost of New Mexico Wind to be recovered through PNM’s renewable rider, rather than the FPPAC, and certain other modifications regarding the accounting for renewable energy in PNM’s FPPAC. These modifications do not affect the amount of fuel and purchased power or renewable costs that PNM will collect. PNM cannot predict the outcome of the show cause proceeding. PNM filed its 2017 renewable energy procurement plan on June 1, 2016. The plan meets RPS and diversity requirements for 2017 and 2018 using existing resources and does not propose any significant new procurements. PNM projects that its plan will slightly exceed the RCT in 2017 and will be within the RCT in 2018. PNM has requested a variance from the RCT in 2017 to the extent the NMPRC determines a variance is necessary. A public hearing was held on September 26, 2016. On October 21, 2016, the Hearing Examiner issued a Recommended Decision recommending that the plan be approved as filed and also found that a variance from the RCT is not required. Pursuant to the REA, the NMPRC must enter an order approving or modifying the plan by November 28, 2016. PNM cannot predict the outcome of this matter. Renewable Energy Rider The NMPRC has authorized PNM to recover certain renewable procurement costs through a rate rider billed on a per KWh basis. In PNM’s NM 2015 Rate Case, the NMPRC authorized continuation of the renewable rider. In its 2016 renewable energy procurement plan case, PNM proposed to collect $42.4 million in 2016. The 2016 rider adjustment was approved as part of the final order issued February 3, 2016 approving the 2016 renewable energy plan. In its 2017 renewable energy procurement plan discussed above, PNM proposes to collect $50.0 million through the rider in 2017. The increase, as compared with the amount the NMPRC approved for recovery through the rider in 2016, is due to including recovery of the costs of procuring energy from New Mexico Wind through the rider, rather than through its FPPAC, which complies with the NMPRC’s final order in PNM’s NM 2015 Rate Case. As a separate component of the rider, if PNM’s earned return on jurisdictional equity in a calendar year, adjusted for weather and other items not representative of normal operations, exceeds the NMPRC-approved rate by 0.5% , PNM would be required to refund the excess to customers during May through December of the following year. The NMPRC-approved rate was 10.0% when the renewable rider was initially approved. On April 1, 2016, PNM made a compliance filing at the NMPRC showing that its jurisdictional equity return did not exceed 10.5% in 2015. Energy Efficiency and Load Management 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 programs. In 2013, this act was amended to set an annual program budget equal to 3% of an electric utility’s annual revenue. PNM’s costs to implement approved programs are recovered through a rate rider. 2016 Energy Efficiency Program Application On April 15, 2016, PNM filed an application for energy efficiency and load management programs to be offered in 2017. The proposed program portfolio consists of ten programs with a total budget of $28.0 million . The application also seeks approval of an incentive of $2.4 million based on target savings of 75 GWh. The actual incentive will be based upon actual savings achieved. An unopposed stipulation settling all issues was filed on September 29, 2016. The stipulation establishes a method to ensure that funding of PNM’s energy efficiency program is equal to 3% of its retail revenues, with an estimated 2017 energy efficiency funding level of $26.0 million , and a sliding scale profit incentive with a base level of 7.1% of program costs if PNM achieves a minimum proscribed level of energy savings and increasing to a maximum of 9.0% depending on actual energy savings achieved above the minimum. A public hearing was held on October 26 and 27, 2016. PNM cannot predict the outcome of this matter. Energy Efficiency Rulemaking On May 17, 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 as the mechanism for removal of disincentives associated with the implementation of energy efficiency programs. 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. 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. PNM filed its 2014 IRP on July 1, 2014. The four-year action plan was consistent with the replacement resources identified in PNM’s application to retire SJGS Units 2 and 3. PNM indicated that it planned to meet its anticipated long-term load growth with a combination of additional renewable energy resources, energy efficiency, and natural gas-fired facilities. Consistent with statute and NMPRC rule, PNM incorporated a public advisory process into the development of its 2014 IRP. On July 31, 2014, several parties requested the NMPRC not to accept the 2014 IRP as compliant with NMPRC rule because to do so could affect the pending proceeding on PNM’s application to abandon SJGS Units 2 and 3 and for CCNs for certain replacement resources (Note 11) and because they asserted that the IRP does not conform to the NMPRC’s IRP rule. Certain parties also asked that further proceedings on the IRP be held in abeyance until the conclusion of the then pending SJGS abandonment/CCN proceeding. The NMPRC issued an order in August 2014 that docketed a case to determine whether the IRP complies with applicable NMPRC rules. The order also held the case in abeyance pending the issuance of final, non-appealable orders in PNM’s 2015 renewable energy procurement plan case and its application to retire SJGS Units 2 and 3. The final order regarding PNM’s application to abandon SJGS Units 2 and 3 described in Note 11 states that the NMPRC will issue a Notice of Proposed Dismissal in the 2014 IRP docket. On May 4, 2016, the NMPRC issued the Notice of Proposed Dismissal, stating that the docket will be closed with prejudice within thirty days unless good cause is shown why the docket should remain open. On May 31, 2016, NEE filed a request to hold the protests filed against PNM’s IRP in abeyance or to dismiss those protests without prejudice. PNM responded on June 13, 2016 and requested that the NMPRC dismiss the case with prejudice. The NMPRC has not yet acted on its Notice of Proposed Dismissal or the request filed on May 31, 2016. San Juan Generating Station Units 2 and 3 Retirement On December 16, 2015, the NMPRC issued an order approving PNM’s retirement of SJGS Units 2 and 3 on December 31, 2017. On January 14, 2016, NEE filed an appeal of the final order with the NM Supreme Court. Additional information concerning the NMPRC filing and related proceedings is set forth in Note 11. Application for Certificate of Convenience and Necessity On June 30, 2015, PNM filed an application for a CCN for a 187 MW gas plant to be located at SJGS. This resource was identified as a replacement resource in PNM’s application to retire SJGS Units 2 and 3. On February 12, 2016, PNM filed a motion to withdraw its application and stated that it would file either a new CCN application for a gas-fueled resource or a report on the status of that application. On May 18, 2016, the NMPRC issued an order granting PNM’s request to withdraw the application and closing the case. On April 26, 2016, PNM filed an application for an 80 MW gas plant to be located at SJGS. The plant would consist of two 40 MW aeroderivative units. PNM had requested a final order from the NMPRC by December 1, 2016 to facilitate a June 2018 in-service date. On October 13, 2016, PNM filed a motion to vacate the procedural schedule to allow PNM to assess the continued need for the plant in light of possible changed circumstances affecting loads and resources. The motion was granted on October 20, 2016. On October 28, 2016, PNM filed a motion to withdraw its application and close the docket. As grounds for the motion, PNM stated that, based on its updated peak demand forecast, the 80 MW plant would not be needed in 2018. PNM will continue to evaluate its resource needs as part of its ongoing resource planning activities and during the 2017 IRP process in which PNM’s entire 20 -year portfolio of supply and demand-side resources will be evaluated in terms of cost and reliability requirements. PNM’s current capital forecast includes an additional 40 MW of peaking capacity that would be operational in 2020 to meet requirements for operating reserves. PNM cannot predict the outcome of this proceeding. Advanced Metering Infrastructure Application On February 26, 2016, PNM filed an application with the NMPRC requesting approval of a project to replace its existing customer metering equipment with Advanced Metering Infrastructure (“AMI”). The application also asks the NMPRC to authorize the recovery of the cost of the project, up to $87.2 million , in future ratemaking proceedings, as well as to approve the recovery of the remaining undepreciated investment in existing metering equipment estimated to be approximately $33 million at the date of implementation and the costs of customer education and severance for any affected employees. PNM does not intend to proceed with the AMI project unless the NMPRC approves the entire application. On August 5, 2016, PNM filed a motion to suspend its AMI application so that it could evaluate the effect of the final order in the NM 2015 Rate Case. This motion was approved and PNM must either propose a new procedural schedule or file a motion to withdraw the AMI application by November 28, 2016. PNM cannot predict the outcome of this matter. Facebook Data Center Project On July 8, 2016, PNM filed an application with the NMPRC for approval of: • Two new electric service rates • A PPA under which PNM would purchase renewable energy from PNMR Development • A special service contract to provide electric service to a prospective new customer, a large Internet company, that was considering locating a data center in PNM’s service area The NMPRC approved PNM’s application on August 17, 2016. At that time, the new customer was also considering the state of Utah for the location of the data center. On September 15, 2016, PNM filed a notice informing the NMPRC that the customer, Facebook Inc., had announced that it was selecting a site in New Mexico for its new data center. The customer’s service requirements include the acquisition by PNM of a sufficient amount of new renewable energy resources and RECs to match the energy and capacity requirements of the data center. PNM’s initial procurement will be through a PPA with PNMR Development for the energy production from 30 MW of new solar capacity that PNMR Development will construct and own. The cost of the PPA will be passed through to the customer under a new rate rider. A new special service rate will be applied to the customer’s energy consumption in those hours of the month when the customer’s consumption exceeds the energy production from the new renewable resources. Construction of the first 10 MW of solar capacity is expected to be completed in early 2018, which will coincide with initial operations of the data center, with the remainder of the capacity completed by mid-2018. The approval order included a provision requiring that in any future rate case filed by PNM requesting an increase in rates of any other customer class, the NMPRC shall determine whether or not any customer class will be subject to increased rates due to the new customer’s fixed “Contribution to Production Charge for System Supplied Energy” and, if so, the NMPRC shall determine whether or not PNM will be allowed to recover such increased costs in the form of increased rates to other customers. Formula Transmission Rate Case On December 31, 2012, PNM filed an application with FERC for authorization to move from charging stated rates for wholesale electric transmission service to a formula rate mechanism pursuant to which rates for wholesale transmission service are calculated annually in accordance with an approved formula. The proposed formula includes updating cost of service components, including investment in plant and operating expenses, based on information contained in PNM’s annual financial report filed with FERC, as well as including projected large transmission capital projects to be placed into service in the following year. The projections included are subject to true-up in the following year formula rate. Certain items, including changes to return on equity and depreciation rates, require a separate filing to be made with FERC before being included in the formula rate. As filed, PNM’s request would have resulted in a $3.2 million wholesale electric transmission rate increase, based on PNM’s 2011 data and a 10.81% return on equity (“ROE”), and authority to adjust transmission rates annually based on an approved formula. On March 1, 2013, FERC issued an order (1) accepting PNM’s revisions to its rates for filing and suspending the proposed revisions to become effective August 2, 2013, subject to refund; (2) directing PNM to submit a compliance filing to establish its ROE using the median, rather than the mid-point, of the ROEs from a proxy group of companies; (3) directing PNM to submit a compliance filing to remove from its rate proposal the acquisition adjustment related to PNM’s 60% ownership of the EIP transmission line, which was acquired in 2003; and (4) setting the proceeding for hearing and settlement judge procedures. On April 1, 2013, PNM made the required compliance filing. PNM would be allowed to make a separate filing related to recovery of the EIP acquisition adjustment. On August 2, 2013, new rates went into effect, subject to refund. In June 2013, May 2014, and March 2015, PNM made additional filings incorporating final 2012, 2013, and 2014 data into the formula rate request. On March 20, 2015, PNM along with five other parties entered into a settlement agreement, which was filed at FERC. The settlement reflects a ROE of 10% and results in an annualized increase of $1.3 million above the rates approved in the previous rate case. Additionally, the parties filed a motion to implement the settled rates effective April 1, 2015. On March 25, 2015, the ALJ issued an order authorizing the interim implementation of settled rates beginning on April 1, 2015, subject to refund. In May 2015, the settlement judge recommended that FERC approve the settlement. On March 17, 2016, FERC approved the settlement. PNM made the refunds required under the settlement in May 2016. Firm-Requirements Wholesale Customers – Navopache Electric Cooperative, Inc. As discussed in Note 17 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K, NEC filed a petition on April 8, 2015 for a declaratory order requesting that FERC find that NEC can purchase an unlimited amount of power and energy from third party supplier(s) under its PSA with PNM. Following proceedings before a settlement judge, PNM and NEC entered into, and filed with FERC, a settlement agreement on October 29, 2015 that includes certain amendments to the PSA and related contracts on file with FERC. FERC approved the settlement on January 21, 2016. Under the settlement agreement, PNM will serve all of NEC’s load in 2016 at reduced demand and energy rates from those under the PSA. Beginning January 1, 2016, NEC is also paying certain third-party transmission costs that it did not pay in 2014 and partially paid in 2015. The PSA and related transmission agreements will terminate on December 31, 2016. In 2017, PNM will serve 10 MW of NEC’s load under a short term coordination tariff at a rate lower than provided under the PSA. Revenues from NEC under the PSA were $4.8 million and $6.3 million in the three months ended September 30, 2016 and 2015 and $14.8 million and $19.7 million in the nine months ended September 30, 2016 and 2015. TNMP Advanced Meter System Deployment In July 2011, the PUCT approved a settlement and authorized an AMS deployment plan that permits TNMP to collect $113.4 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. TNMP has completed its mass deployment by installing 242,246 advanced meters over a 5 -year period. The PUCT adopted a rule on August 15, 2013 creating a non-standard metering service for retail customers choosi |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2013, New Mexico House Bill 641 reduced the New Mexico corporate income tax rate from 7.6% to 5.9% . The rate reduction is being phased-in from 2014 to 2018. In accordance with GAAP, PNMR and PNM adjusted accumulated deferred income taxes to reflect the tax rate at which the balances are expected to reverse during the period that includes the date of enactment, which was in the year ended December 31, 2013. At that time, the portion of the adjustment related to PNM’s regulated activities was recorded as a reduction in deferred tax liabilities, which was offset by an increase in a regulatory liability, on the assumption that PNM will be required to return the benefit to customers over time. In addition, the portion of the adjustment that is not related to PNM’s regulated activities was recorded in PNMR’s Corporate and Other segment as a reduction in deferred tax assets and an increase in income tax expense. Changes in the estimated timing of reversals of deferred tax assets and liabilities will result in refinements of the impacts of this change in tax rates being recorded periodically until 2018, when the rate reduction is fully phased in. In the three months ended March 31, 2016 and 2015, PNM’s regulatory liability was reduced by $7.1 million and $2.0 million , which increased deferred tax liabilities. Deferred tax assets not related to PNM’s regulatory activities were: reduced by $0.7 million in the three months ended March 31, 2016, increasing income tax expense by $0.8 million for PNM and reducing income tax expense by $0.1 million for the Corporate and Other segment; and increased by $0.7 million in the three months ended March 31, 2015, reducing income tax expense by $0.5 million for PNM and $0.2 million for the Corporate and Other segment. In 2008, fifty percent bonus tax depreciation was enacted as a temporary two-year stimulus measure as part of the Economic Stimulus Act of 2008. Bonus tax depreciation in various forms has been continuously extended since that time, most recently by the Protecting Americans from Tax Hikes Act of 2015. The 2015 act extends and phases-out bonus tax depreciation through 2019. As a result of the net operating loss carryforwards for income tax purposes created by bonus depreciation, and reduced future income taxes payable resulting from New Mexico House Bill 641, certain tax carryforwards are not expected to be utilized before their expiration. In accordance with GAAP, PNMR and PNM have impaired the tax carryforwards which were not expected to be utilized prior to their expiration. During the three months ended March 31, 2015, the impairment of the New Mexico net operating loss carryforward recorded in 2014 was refined, resulting in an additional impairment of $1.0 million , after federal income tax benefit, $0.7 million of which was recorded by PNM and $0.3 million was recorded in the Corporate and Other segment. TNMP had no such impairment in 2015. The Company has not recorded any impairments in 2016. The NMPRC’s final order in PNM’s NM 2015 Rate Case (Note 12 ) approved PNM’s request to record a regulatory asset to recover a 2014 impairment of PNM’s New Mexico net operating loss carryforward resulting from the extension of bonus depreciation. The impact, net of federal income taxes, amounts to $2.1 million , which is reflected as a reduction of income tax expense on the Condensed Consolidated Statement of Earnings. The Company undertook an analysis of interest income and interest expense applicable to federal income tax matters. The analysis encompassed the impacts of IRS examinations, amended income tax returns, and filings for carrybacks of tax matters to previous taxable years applicable to all years not closed under the IRS rules. As a result of this effort, PNMR received net refunds from the IRS of $6.5 million in the three months ended June 30, 2016. Of the refunds, $2.1 million was recorded as a reduction of interest receivable and $5.1 million was recorded as interest income, which was partially offset by $0.7 million of interest expense. In addition, PNMR incurred $0.9 million in professional fees related to the analysis. Of the net pre-tax impacts aggregating $3.5 million , $2.6 million is reflected in the PNM segment, $0.3 million in the TNMP segment, and $0.6 million in the Corporate and Other segment. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions PNMR, PNM, and TNMP are considered related parties as defined under GAAP. PNMR Services Company provides corporate services to PNMR and its subsidiaries in accordance with shared services agreements. The table below summarizes the nature and amount of related party transactions of PNMR, PNM, and TNMP: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Services billings: PNMR to PNM $ 22,189 $ 21,894 $ 67,192 $ 65,961 PNMR to TNMP 6,593 6,707 20,881 20,366 PNM to TNMP 105 136 347 424 TNMP to PNMR 10 — 30 — Interest billings: PNMR to TNMP 13 34 112 167 PNMR to PNM 3 10 8 38 PNM to PNMR 38 24 110 79 Income tax sharing payments: PNMR to PNM — — — 1,450 PNMR to TNMP — — — — |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The excess purchase price over the fair value of the assets acquired and the liabilities assumed by PNMR for its 2005 acquisition of TNP was recorded as goodwill and was pushed down to the businesses acquired. In 2007, the TNMP assets that were included in its New Mexico operations, including goodwill, were transferred to PNM. GAAP requires the Company to evaluate its goodwill for impairment annually at the reporting unit level or more frequently if circumstances indicate that the goodwill may be impaired. PNMR’s reporting units that have goodwill are PNM and TNMP. Application of the impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, and determination of the fair value of each reporting unit. GAAP provides that in certain circumstances an entity may perform a qualitative analysis to conclude that the goodwill of a reporting unit is not impaired. Under a qualitative assessment an entity would consider macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events affecting a reporting unit, as well as whether a sustained decrease (both absolute and relative to its peers) in share price had occurred. An entity would consider the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit’s fair value with its carrying amount. An entity should place more weight on the events and circumstances that most affect a reporting unit’s fair value or the carrying amount of its net assets. An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity would evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative analysis is not required. In other circumstances, an entity may perform a quantitative analysis to reach the conclusion regarding impairment with respect to a reporting unit. The first step of the quantitative impairment test requires an entity to compare the fair value of the reporting unit with its carrying value, including goodwill. If as a result of this analysis, the entity concludes there is an indication of impairment in a reporting unit having goodwill, the entity is required to perform the second step of the impairment analysis, determining the amount of goodwill impairment to be recorded. The amount is calculated by comparing the implied fair value of the goodwill to its carrying amount. This exercise would require the entity to allocate the fair value determined in step one to the individual assets and liabilities of the reporting unit. Any remaining fair value would be the implied fair value of goodwill on the testing date. To the extent the recorded amount of goodwill of a reporting unit exceeds the implied fair value determined in step two, an impairment loss would be reflected in results of operations. An entity may choose to perform a quantitative analysis without performing a qualitative analysis and may perform a qualitative analysis for certain reporting units but a quantitative analysis for others. For its annual evaluations performed as of April 1, 2016, PNMR performed quantitative analyses for both the PNM and TNMP reporting units. PNMR utilized a quantitative analysis for the PNM reporting unit and a qualitative analysis for the TNMP reporting unit as of April 1, 2015. For the quantitative analyses, a discounted cash flow methodology was primarily used to estimate the fair value of the reporting unit. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of long-term growth rates for the business, and determination of appropriate weighted average cost of capital for each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment. The annual evaluations performed as of April 1, 2016 and 2015 did not indicate impairments of the goodwill of any of PNMR’s reporting units. The April 1, 2016 and 2015 quantitative evaluations indicated the fair value of the PNM reporting unit, which has goodwill of $51.6 million , exceeded its carrying value by approximately 25% and 25% . The April 1, 2016 quantitative evaluation indicated the fair value of the TNMP reporting unit, which has goodwill of $226.7 million , exceeded its carrying value by approximately 32% . Since the April 1, 2016 annual evaluation, there have been no indications that the fair values of the reporting units with recorded goodwill have decreased below the carrying values. Additional information concerning the Company’s goodwill is contained in Note 19 of Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. |
Significant Accounting Polici24
Significant Accounting Policies and Responsibility for Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Condensed 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 Valencia (Note 5) and, through January 15, 2016, the PVNGS Capital Trust. 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. The agreements for the jointly-owned plants provide that if an owner were to default on its payment obligations, the non-defaulting owners would be responsible for their proportionate share of the obligations of the defaulting owner. In exchange, the non-defaulting owners would be entitled to their proportionate share of the generating capacity of the defaulting owner. There have been no such payment defaults under any of the agreements for the jointly-owned 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. Other significant intercompany transactions between PNMR, PNM, and TNMP include interest and income tax sharing payments, as well as equity transactions. All intercompany transactions and balances have been eliminated. |
Dividends on Common Stock | Dividends on Common Stock Dividends on PNMR’s common stock are declared by its Board. The timing of the declaration of dividends is dependent on the timing of meetings and other actions of the Board. This has historically resulted in dividends considered to be attributable to the second quarter of each year being declared through actions of the Board during the third quarter of the year. |
New Accounting Pronouncements | New Accounting Pronouncements Information concerning recently issued accounting pronouncements that have not been adopted by the Company is presented below. Accounting Standards Update 2014-09 – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU No. 2014-09. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. When it becomes effective, the new standard will replace most existing revenue recognition guidance in GAAP. In August 2015, the FASB issued a one-year deferral in the effective date. Since the issuance of ASU No. 2014-09, the FASB also has issued additional ASUs that clarify implementation guidance regarding principal versus agent considerations, licensing, and identifying performance obligations, as well as adding certain additional practical expedients. The Company must adopt ASU 2014-09 beginning on January 1, 2018. Early adoption would be permitted beginning January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method although it is unlikely the Company would elect to early adopt the new standard. The Company is analyzing the impacts this new standard will have on its consolidated financial statements and related disclosures, but has not determined the effect of the standard on its financial reporting. Accounting Standards Update 2014-15 – Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU No. 2014-15, which requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern in connection with the preparation of financial statements for each annual and interim reporting period. Disclosure requirements associated with management’s evaluation are also outlined in the new guidance. The new standard is effective for the Company for reporting periods ending after December 15, 2016, with early adoption permitted. The Company anticipates adopting this standard as of December 31, 2016. The Company is analyzing the impacts of this new standard, but does not anticipate it will have a significant impact on the Company’s financial statements. Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, which makes targeted improvements to GAAP regarding financial instruments. The new standard eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and will require those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Also, the new standard will revise certain presentation and disclosure requirements. Under the new standard, accounting for investments in debt securities remains essentially unchanged. The new standard will be effective for the Company beginning on January 1, 2018. Early adoption of the standard is permitted. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU No. 2016-02, which will change how lessees account for leases. The ASU will require that a liability be recorded on the balance sheet for all leases based on the present value of future lease obligations. A corresponding right-of-use asset will also be recorded. Amortization of the lease obligation and the right-of-use asset for certain leases, primarily those classified as operating leases, will be on a straight-line basis, which is not expected to have a significant impact on the statements of earnings or cash flows, whereas other leases will be required to be accounted for as financing arrangements similar to the accounting treatment for capital leases under current GAAP. Also, the new standard will revise certain disclosure requirements. The new standard will be effective for the Company beginning on January 1, 2019. Early adoption of the standard is permitted. At adoption of the ASU, leases will be recognized and measured as of the earliest period presented using a modified retrospective approach. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-09 – Compensation – Stock Compensation (Topic 718) In March 2016, the FASB issued ASU No. 2016-09. The ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Currently, tax benefits resulting from deductions in excess of compensation cost on vested restricted stock and performance awards and on exercised stock options (“excess tax benefits”) are recorded to equity provided these benefits reduce taxes payable. Tax deficiencies resulting from deductions related to awards, which are below realized compensation cost upon vesting and on canceled stock options are recorded to equity. The Company has not recorded excess tax benefits to equity since 2009 because it is in a net operating loss position for income tax purposes. Upon implementation of the new standard, the Company will record a cumulative effect adjustment to recognize excess tax benefits that have not been recorded due to the Company’s net operating loss. Subsequent to implementation, all excess tax benefits and deficiencies will be recorded to tax expense on the Condensed Consolidated Income Statements and classified as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. The Company continues its process of analyzing the impacts of this new standard, but does not believe there will be any retrospective impacts to its financial statements. The Company anticipates adopting the new standard upon its required effective date of January 1, 2017. Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13. The ASU changes the way entities recognize impairment of many financial assets, including accounts receivable and investments in debt securities, by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. The new standard is effective for the Company beginning on January 1, 2020. Early adoption is permitted beginning on January 1, 2019. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2016-15 – Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15. The ASU eliminates diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for the Company beginning on January 1, 2018. Early adoption is permitted including adoption in an interim period. The Company is in the process of analyzing the impacts of this new standard, but does not anticipate it will have a significant impact on the Company’s financial statements. |
Variable Interest Entity | 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 (“VIE”). GAAP also requires continual reassessment of the primary beneficiary of a VIE. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Information regarding the computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 54,418 $ 61,045 $ 92,040 $ 107,058 Average Number of Common Shares: Outstanding during period 79,654 79,654 79,654 79,654 Vested awards of restricted stock 96 100 99 103 Average Shares – Basic 79,750 79,754 79,753 79,757 Dilutive Effect of Common Stock Equivalents: Stock options and restricted stock 367 362 377 377 Average Shares – Diluted 80,117 80,116 80,130 80,134 Net Earnings Per Share of Common Stock: Basic $ 0.68 $ 0.77 $ 1.15 $ 1.34 Diluted $ 0.68 $ 0.76 $ 1.15 $ 1.34 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. PNMR SEGMENT INFORMATION PNM TNMP Corporate and Other Consolidated (In thousands) Three Months Ended September 30, 2016 Electric operating revenues $ 311,276 $ 89,098 $ — $ 400,374 Cost of energy 88,565 20,201 — 108,766 Utility margin 222,711 68,897 — 291,608 Other operating expenses 109,342 24,184 (3,006 ) 130,520 Depreciation and amortization 33,312 16,354 3,351 53,017 Operating income (loss) 80,057 28,359 (345 ) 108,071 Interest income 1,509 — 3,095 4,604 Other income (deductions) 4,980 855 (184 ) 5,651 Interest charges (22,213 ) (7,308 ) (2,946 ) (32,467 ) Segment earnings (loss) before income taxes 64,333 21,906 (380 ) 85,859 Income taxes (benefit) 19,343 8,053 (93 ) 27,303 Segment earnings (loss) 44,990 13,853 (287 ) 58,556 Valencia non-controlling interest (4,006 ) — — (4,006 ) Subsidiary preferred stock dividends (132 ) — — (132 ) Segment earnings (loss) attributable to PNMR $ 40,852 $ 13,853 $ (287 ) $ 54,418 Nine Months Ended September 30, 2016 Electric operating revenues $ 780,228 $ 246,498 $ — $ 1,026,726 Cost of energy 222,376 60,122 — 282,498 Utility margin 557,852 186,376 — 744,228 Other operating expenses 314,961 70,328 (9,261 ) 376,028 Depreciation and amortization 97,778 45,760 10,263 153,801 Operating income (loss) 145,113 70,288 (1,002 ) 214,399 Interest income 8,549 — 9,871 18,420 Other income (deductions) 17,305 2,139 (1,517 ) 17,927 Interest charges (66,494 ) (22,150 ) (8,535 ) (97,179 ) Segment earnings (loss) before income taxes 104,473 50,277 (1,183 ) 153,567 Income taxes (benefit) 32,131 18,460 (497 ) 50,094 Segment earnings (loss) 72,342 31,817 (686 ) 103,473 Valencia non-controlling interest (11,037 ) — — (11,037 ) Subsidiary preferred stock dividends (396 ) — — (396 ) Segment earnings (loss) attributable to PNMR $ 60,909 $ 31,817 $ (686 ) $ 92,040 At September 30, 2016: Total Assets $ 4,799,012 $ 1,366,840 $ 237,818 $ 6,403,670 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate and Other Consolidated (In thousands) Three Months Ended September 30, 2015 Electric operating revenues $ 333,437 $ 83,996 $ — $ 417,433 Cost of energy 105,708 18,547 — 124,255 Utility margin 227,729 65,449 — 293,178 Other operating expenses 104,977 22,766 (3,573 ) 124,170 Depreciation and amortization 29,042 15,016 3,445 47,503 Operating income 93,710 27,667 128 121,505 Interest income 1,152 — (1 ) 1,151 Other income (deductions) 5,289 672 (482 ) 5,479 Interest charges (19,837 ) (6,855 ) (836 ) (27,528 ) Segment earnings (loss) before income taxes 80,314 21,484 (1,191 ) 100,607 Income taxes (benefit) 27,258 7,795 699 35,752 Segment earnings (loss) 53,056 13,689 (1,890 ) 64,855 Valencia non-controlling interest (3,678 ) — — (3,678 ) Subsidiary preferred stock dividends (132 ) — — (132 ) Segment earnings (loss) attributable to PNMR $ 49,246 $ 13,689 $ (1,890 ) $ 61,045 Nine Months Ended September 30, 2015 Electric operating revenues $ 870,826 $ 232,361 $ — $ 1,103,187 Cost of energy 299,302 54,637 — 353,939 Utility margin 571,524 177,724 — 749,248 Other operating expenses 312,534 65,332 (11,118 ) 366,748 Depreciation and amortization 86,446 42,065 10,502 139,013 Operating income 172,544 70,327 616 243,487 Interest income 4,869 — (27 ) 4,842 Other income (deductions) 18,547 2,757 (2,935 ) 18,369 Interest charges (59,477 ) (20,636 ) (6,601 ) (86,714 ) Segment earnings (loss) before income taxes 136,483 52,448 (8,947 ) 179,984 Income taxes (benefit) 44,560 19,200 (2,139 ) 61,621 Segment earnings (loss) 91,923 33,248 (6,808 ) 118,363 Valencia non-controlling interest (10,909 ) — — (10,909 ) Subsidiary preferred stock dividends (396 ) — — (396 ) Segment earnings (loss) attributable to PNMR $ 80,618 $ 33,248 $ (6,808 ) $ 107,058 At September 30, 2015: Total Assets $ 4,615,442 $ 1,282,766 $ 114,374 $ 6,012,582 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information regarding accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Fair Value Gains on Adjustment Available-for- Pension for Cash Sale Liability Flow Securities Adjustment Total Hedges Total (In thousands) Balance at December 31, 2015 $ 17,346 $ (88,822 ) $ (71,476 ) $ 44 $ (71,432 ) Amounts reclassified from AOCI (pre-tax) (10,135 ) 4,128 (6,007 ) 573 (5,434 ) Income tax impact of amounts reclassified 3,955 (1,611 ) 2,344 (224 ) 2,120 Other OCI changes (pre-tax) 3,115 — 3,115 (1,305 ) 1,810 Income tax impact of other OCI changes (1,216 ) — (1,216 ) 509 (707 ) Net change after income taxes (4,281 ) 2,517 (1,764 ) (447 ) (2,211 ) Balance at September 30, 2016 $ 13,065 $ (86,305 ) $ (73,240 ) $ (403 ) $ (73,643 ) Balance at December 31, 2014 $ 28,008 $ (89,763 ) $ (61,755 ) $ — $ (61,755 ) Amounts reclassified from AOCI (pre-tax) (22,552 ) 4,464 (18,088 ) — (18,088 ) Income tax impact of amounts reclassified 8,838 (1,749 ) 7,089 — 7,089 Other OCI changes (pre-tax) 3,095 — 3,095 (704 ) 2,391 Income tax impact of other OCI changes (1,213 ) — (1,213 ) 276 (937 ) Net change after income taxes (11,832 ) 2,715 (9,117 ) (428 ) (9,545 ) Balance at September 30, 2015 $ 16,176 $ (87,048 ) $ (70,872 ) $ (428 ) $ (71,300 ) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Summarized Financial Information | Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Operating revenues $ 5,356 $ 5,182 $ 15,541 $ 15,337 Operating expenses (1,350 ) (1,504 ) (4,504 ) (4,428 ) Earnings attributable to non-controlling interest $ 4,006 $ 3,678 $ 11,037 $ 10,909 Financial Position September 30, December 31, 2016 2015 (In thousands) Current assets $ 3,506 $ 2,588 Net property, plant, and equipment 67,656 69,784 Total assets 71,162 72,372 Current liabilities 1,045 965 Owners’ equity – non-controlling interest $ 70,117 $ 71,407 |
Fair Value of Derivative and 29
Fair Value of Derivative and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Derivative and Other Financial Instruments [Abstract] | |
Summary of Derivatives | Commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows: Economic Hedges September 30, December 31, PNMR and PNM (In thousands) Current assets $ 3,949 $ 3,813 Deferred charges 747 2,622 4,696 6,435 Current liabilities (2,423 ) (1,859 ) Long-term liabilities (58 ) — (2,481 ) (1,859 ) Net $ 2,215 $ 4,576 |
Effect of Mark-to-Market on Earnings, Excluding Tax Effects | The following table presents the effect of mark-to-market commodity derivative instruments on earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented. Economic Hedges Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 PNMR and PNM (In thousands) Electric operating revenues $ 1,652 $ 6,823 $ 214 $ 7,354 Cost of energy (1 ) (78 ) (1,113 ) (227 ) Total gain (loss) $ 1,651 $ 6,745 $ (899 ) $ 7,127 |
Schedule of Net Buy (Sell) Volume Positions | The table below presents PNMR’s and PNM’s net buy (sell) volume positions: Economic Hedges MMBTU MWh PNMR and PNM September 30, 2016 200,000 (2,924,985 ) December 31, 2015 577,481 (3,405,843 ) |
Schedule of Collateral Related to Derivative | The table below presents information about the Company’s contingent requirements to provide collateral under commodity contracts having an objectively determinable collateral provision that are in net liability positions and are not fully collateralized with cash. Contractual Liability represents commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. The table only reflects cash collateral that has been posted under the existing contracts and does not reflect letters of credit under the PNM Revolving Credit Facility that have been issued as collateral. Net Exposure is the net contractual liability for all contracts, including those designated as normal purchases and normal sales, offset by existing cash collateral and by any offsets available under master netting agreements, including both asset and liability positions. Contingent Feature – Credit Rating Downgrade Contractual Liability Existing Cash Collateral Net Exposure (In thousands) PNMR and PNM September 30, 2016 $ — $ — $ — December 31, 2015 $ 839 $ — $ 839 |
Schedule of Fair Value and Gross Unrealized Gains in Available-for-sale Securities | The fair value and gross unrealized gains of investments in available-for-sale securities are presented in the following table. September 30, 2016 December 31, 2015 Unrealized Gains Fair Value Unrealized Gains Fair Value PNMR and PNM (In thousands) Cash and cash equivalents $ — $ 4,831 $ — $ 10,700 Equity securities: Domestic value 8,345 63,666 11,610 44,505 Domestic growth 5,619 47,996 11,163 61,078 International and other 2,868 28,304 1,569 27,961 Fixed income securities: U.S. Government 696 37,152 178 27,880 Municipals 2,490 52,459 3,672 58,576 Corporate and other 1,698 36,627 628 28,342 $ 21,716 $ 271,035 $ 28,820 $ 259,042 |
Schedule of Gross Realized Gains and Losses | The proceeds and gross realized gains and losses on the disposition of available-for-sale securities for PNMR and PNM are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold. Gross realized losses shown below exclude the change in realized impairment losses of $0.1 million and $1.0 million for the three and nine months ended September 30, 2016 and $(2.4) million and $(3.2) million for the three and nine months ended September 30, 2015. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Proceeds from sales $ 86,975 $ 71,576 $ 280,989 $ 166,097 Gross realized gains $ 7,026 $ 8,998 $ 27,273 $ 22,463 Gross realized (losses) $ (2,565 ) $ (4,014 ) $ (12,913 ) $ (7,133 ) |
Investments Classified by Contractual Maturity Date | At September 30, 2016 , the available-for-sale and held-to-maturity debt securities had the following final maturities: Fair Value Available-for-Sale Held-to-Maturity PNMR and PNM PNMR (In thousands) Within 1 year $ 4,349 $ — After 1 year through 5 years 36,265 119,987 After 5 years through 10 years 24,512 — After 10 years through 15 years 10,286 — After 15 years through 20 years 9,446 — After 20 years 41,380 — $ 126,238 $ 119,987 |
Schedule of Investments | Items recorded at fair value on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy. There were no Level 3 fair value measurements at September 30, 2016 and December 31, 2015 for items recorded at fair value. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) September 30, 2016 (In thousands) PNMR and PNM Available-for-sale securities Cash and cash equivalents $ 4,831 $ 4,831 $ — Equity securities: Domestic value 63,666 63,666 — Domestic growth 47,996 47,996 — International and other 28,304 28,304 — Fixed income securities: U.S. Government 37,152 35,879 1,273 Municipals 52,459 — 52,459 Corporate and other 36,627 6,849 29,778 $ 271,035 $ 187,525 $ 83,510 Commodity derivative assets $ 4,696 $ — $ 4,696 Commodity derivative liabilities (2,481 ) — (2,481 ) Net $ 2,215 $ — $ 2,215 December 31, 2015 PNMR and PNM Available-for-sale securities Cash and cash equivalents $ 10,700 $ 10,700 $ — Equity securities: Domestic value 44,505 44,505 — Domestic growth 61,078 61,078 — International and other 27,961 27,961 — Fixed income securities: U.S. Government 27,880 26,608 1,272 Municipals 58,576 — 58,576 Corporate and other 28,342 6,500 21,842 $ 259,042 $ 177,352 $ 81,690 Commodity derivative assets $ 6,435 $ — $ 6,435 Commodity derivative liabilities (1,859 ) — (1,859 ) Net $ 4,576 $ — $ 4,576 |
Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value | The carrying amounts and fair values of investments in the Westmoreland Loan, PVNGS lessor notes, other investments, and long-term debt, which are not recorded at fair value on the Condensed Consolidated Balance Sheets are presented below: GAAP Fair Value Hierarchy Carrying Amount Fair Value Level 1 Level 2 Level 3 September 30, 2016 (In thousands) PNMR Long-term debt $ 2,308,340 $ 2,508,344 $ — $ 2,508,344 $ — Westmoreland Loan $ 109,783 $ 119,987 $ — $ — $ 119,987 Other investments $ 428 $ 1,030 $ 428 $ — $ 602 PNM Long-term debt $ 1,631,587 $ 1,768,115 $ — $ 1,768,115 $ — Other investments $ 197 $ 197 $ 197 $ — $ — TNMP Long-term debt $ 420,802 $ 482,385 $ — $ 482,385 $ — Other investments $ 231 $ 231 $ 231 $ — $ — December 31, 2015 PNMR Long-term debt $ 2,091,948 $ 2,264,869 $ — $ 2,264,869 $ — Investment in PVNGS lessor notes $ 8,587 $ 8,947 $ — $ — $ 8,947 Other investments $ 604 $ 1,269 $ 604 $ — $ 665 PNM Long-term debt $ 1,580,677 $ 1,703,209 $ — $ 1,703,209 $ — Investment in PVNGS lessor notes $ 8,587 $ 8,947 $ — $ — $ 8,947 Other investments $ 366 $ 366 $ 366 $ — $ — TNMP Long-term debt $ 361,411 $ 411,661 $ — $ 411,661 $ — Other investments $ 238 $ 238 $ 238 $ — $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity | The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Nine Months Ended September 30, Restricted Shares and Performance Based Shares 2016 2015 Expected quarterly dividends per share $ 0.22 $ 0.20 Risk-free interest rate 0.94 % 0.92 % Market-Based Shares Dividend yield 2.74 % 2.87 % Expected volatility 20.44 % 18.73 % Risk-free interest rate 0.97 % 1.00 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares, and stock options, for the nine months ended September 30, 2016 : Restricted Stock Stock Options Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Exercise Price Outstanding at December 31, 2015 245,094 $ 24.81 569,342 $ 19.35 Granted 190,276 $ 26.49 — $ — Exercised (213,812 ) $ 23.44 (241,468 ) $ 27.61 Forfeited (714 ) $ 29.54 (2,000 ) $ 12.22 Expired — $ — (8,200 ) $ 24.85 Outstanding at September 30, 2016 220,844 $ 27.58 317,674 $ 12.97 The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares, and stock options: Nine Months Ended September 30, Restricted Stock 2016 2015 Weighted-average grant date fair value $ 26.49 $ 20.34 Total fair value of restricted shares that vested (in thousands) $ 5,011 $ 6,503 Stock Options Weighted-average grant date fair value of options granted $ — $ — Total fair value of options that vested (in thousands) $ — $ — Total intrinsic value of options exercised (in thousands) $ 1,208 $ 1,814 |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-term debt outstanding consisted of: September 30, December 31, Short-term Debt 2016 2015 (In thousands) PNM: PNM Revolving Credit Facility $ 22,400 $ — PNM New Mexico Credit Facility 20,000 — TNMP Revolving Credit Facility — 59,000 PNMR: PNMR Revolving Credit Facility 163,500 41,600 PNMR Term Loan Agreement 150,000 150,000 $ 355,900 $ 250,600 |
Pension and Other Postretirem32
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Public Service Company of New Mexico [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The following tables present the components of the PNM Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 35 $ 51 $ — $ — Interest cost 7,577 7,064 1,087 1,022 203 190 Expected return on plan assets (8,854 ) (9,831 ) (1,371 ) (1,403 ) — — Amortization of net (gain) loss 3,455 3,705 286 491 64 81 Amortization of prior service cost (241 ) (241 ) (7 ) (160 ) — — Net periodic benefit cost $ 1,937 $ 697 $ 30 $ 1 $ 267 $ 271 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 105 $ 153 $ — $ — Interest cost 22,731 21,191 3,260 3,067 609 570 Expected return on plan assets (26,562 ) (29,492 ) (4,113 ) (4,208 ) — — Amortization of net (gain) loss 10,365 11,115 858 1,474 192 243 Amortization of prior service cost (724 ) (724 ) (22 ) (481 ) — — Net periodic benefit cost $ 5,810 $ 2,090 $ 88 $ 5 $ 801 $ 813 |
Texas-New Mexico Power Company [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The following tables present the components of the TNMP Plans’ net periodic benefit cost (income): Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost (Income) Service cost $ — $ — $ 46 $ 62 $ — $ — Interest cost 826 761 169 152 10 9 Expected return on plan assets (986 ) (1,105 ) (122 ) (130 ) — — Amortization of net (gain) loss 175 195 (10 ) — 1 1 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 15 $ (149 ) $ 83 $ 84 $ 11 $ 10 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2016 2015 2016 2015 2016 2015 (In thousands) Components of Net Periodic Benefit Cost (Income) Service cost $ — $ — $ 139 $ 185 $ — $ — Interest cost 2,478 2,282 508 456 30 27 Expected return on plan assets (2,957 ) (3,315 ) (367 ) (390 ) — — Amortization of net (gain) loss 525 586 (30 ) — 1 3 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 46 $ (447 ) $ 250 $ 251 $ 31 $ 30 |
Regulatory and Rate Matters (Ta
Regulatory and Rate Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulated Operations [Abstract] | |
Schedule of Rate Increases for Transmission Costs | The following sets forth TNMP’s recent interim transmission cost rate increases: Effective Date Approved Increase in Rate Base Annual Increase in Revenue (in millions) September 8, 2014 $ 25.2 $ 4.2 March 16, 2015 27.1 4.4 September 10, 2015 7.0 1.4 March 23, 2016 25.8 4.3 September 8, 2016 9.5 1.8 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below summarizes the nature and amount of related party transactions of PNMR, PNM, and TNMP: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Services billings: PNMR to PNM $ 22,189 $ 21,894 $ 67,192 $ 65,961 PNMR to TNMP 6,593 6,707 20,881 20,366 PNM to TNMP 105 136 347 424 TNMP to PNMR 10 — 30 — Interest billings: PNMR to TNMP 13 34 112 167 PNMR to PNM 3 10 8 38 PNM to PNMR 38 24 110 79 Income tax sharing payments: PNMR to PNM — — — 1,450 PNMR to TNMP — — — — |
Significant Accounting Polici35
Significant Accounting Policies and Responsibility for Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jul. 31, 2016 | Sep. 30, 2015 | Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Dividends Payable [Line Items] | ||||||||
Dividends declared on common stock (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.200 | $ 0.20 | $ 0.22 | $ 0.200 | $ 0.66 | $ 0.600 |
Dividends declared on common stock | $ 52,571 | |||||||
Public Service Company of New Mexico [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 28,142 | |||||||
Dividends declared on common stock | 4,142 | $ 46,200 | ||||||
Texas-New Mexico Power Company [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 50,000 | |||||||
Dividends declared on common stock | 17,965 | $ 19,600 | ||||||
Common Stock [Member] | Public Service Company of New Mexico [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 28,142 | |||||||
Common Stock [Member] | Texas-New Mexico Power Company [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 0 | |||||||
Paid-in Capital [Member] | Texas-New Mexico Power Company [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | $ 50,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net Earnings Attributable to PNMR | $ 54,418 | $ 61,045 | $ 92,040 | $ 107,058 |
Average Number of Common Shares: | ||||
Outstanding during period (in shares) | 79,654 | 79,654 | 79,654 | 79,654 |
Vested awards of restricted stock (in shares) | 96 | 100 | 99 | 103 |
Average Shares – Basic (in shares) | 79,750 | 79,754 | 79,753 | 79,757 |
Dilutive Effect of Common Stock Equivalents: | ||||
Stock options and restricted stock (in shares) | 367 | 362 | 377 | 377 |
Average Shares – Diluted (in shares) | 80,117 | 80,116 | 80,130 | 80,134 |
Net Earnings Per Share of Common Stock: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.77 | $ 1.15 | $ 1.34 |
Diluted (in dollars per share) | $ 0.68 | $ 0.76 | $ 1.15 | $ 1.34 |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Electric operating revenues | $ 400,374 | $ 417,433 | $ 1,026,726 | $ 1,103,187 | |
Cost of energy | 108,766 | 124,255 | 282,498 | 353,939 | |
Utility margin | 291,608 | 293,178 | 744,228 | 749,248 | |
Other operating expenses | 130,520 | 124,170 | 376,028 | 366,748 | |
Depreciation and amortization | 53,017 | 47,503 | 153,801 | 139,013 | |
Operating income | 108,071 | 121,505 | 214,399 | 243,487 | |
Interest income | 4,604 | 1,151 | 18,420 | 4,842 | |
Other income (deductions) | 5,651 | 5,479 | 17,927 | 18,369 | |
Interest charges | (32,467) | (27,528) | (97,179) | (86,714) | |
Earnings before Income Taxes | 85,859 | 100,607 | 153,567 | 179,984 | |
Income taxes (benefit) | 27,303 | 35,752 | 50,094 | 61,621 | |
Net Earnings | 58,556 | 64,855 | 103,473 | 118,363 | |
Valencia non-controlling interest | (4,006) | (3,678) | (11,037) | (10,909) | |
Subsidiary preferred stock dividends | (132) | (132) | (396) | (396) | |
Net Earnings Available for PNM Common Stock | 54,418 | 61,045 | 92,040 | 107,058 | |
Total Assets | 6,403,670 | 6,012,582 | 6,403,670 | 6,012,582 | $ 6,009,328 |
Goodwill | 278,297 | 278,297 | 278,297 | 278,297 | $ 278,297 |
Public Service Company of New Mexico [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Electric operating revenues | 311,276 | 333,437 | 780,228 | 870,826 | |
Cost of energy | 88,565 | 105,708 | 222,376 | 299,302 | |
Utility margin | 222,711 | 227,729 | 557,852 | 571,524 | |
Other operating expenses | 109,342 | 104,977 | 314,961 | 312,534 | |
Depreciation and amortization | 33,312 | 29,042 | 97,778 | 86,446 | |
Operating income | 80,057 | 93,710 | 145,113 | 172,544 | |
Interest income | 1,509 | 1,152 | 8,549 | 4,869 | |
Other income (deductions) | 4,980 | 5,289 | 17,305 | 18,547 | |
Interest charges | (22,213) | (19,837) | (66,494) | (59,477) | |
Earnings before Income Taxes | 64,333 | 80,314 | 104,473 | 136,483 | |
Income taxes (benefit) | 19,343 | 27,258 | 32,131 | 44,560 | |
Net Earnings | 44,990 | 53,056 | 72,342 | 91,923 | |
Valencia non-controlling interest | (4,006) | (3,678) | (11,037) | (10,909) | |
Subsidiary preferred stock dividends | (132) | (132) | (396) | (396) | |
Net Earnings Available for PNM Common Stock | 40,852 | 49,246 | 60,909 | 80,618 | |
Total Assets | 4,799,012 | 4,615,442 | 4,799,012 | 4,615,442 | |
Goodwill | 51,632 | 51,632 | 51,632 | 51,632 | |
Texas-New Mexico Power Company [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Electric operating revenues | 89,098 | 83,996 | 246,498 | 232,361 | |
Cost of energy | 20,201 | 18,547 | 60,122 | 54,637 | |
Utility margin | 68,897 | 65,449 | 186,376 | 177,724 | |
Other operating expenses | 24,184 | 22,766 | 70,328 | 65,332 | |
Depreciation and amortization | 16,354 | 15,016 | 45,760 | 42,065 | |
Operating income | 28,359 | 27,667 | 70,288 | 70,327 | |
Interest income | 0 | 0 | 0 | 0 | |
Other income (deductions) | 855 | 672 | 2,139 | 2,757 | |
Interest charges | (7,308) | (6,855) | (22,150) | (20,636) | |
Earnings before Income Taxes | 21,906 | 21,484 | 50,277 | 52,448 | |
Income taxes (benefit) | 8,053 | 7,795 | 18,460 | 19,200 | |
Net Earnings | 13,853 | 13,689 | 31,817 | 33,248 | |
Valencia non-controlling interest | 0 | 0 | 0 | 0 | |
Subsidiary preferred stock dividends | 0 | 0 | 0 | 0 | |
Net Earnings Available for PNM Common Stock | 13,853 | 13,689 | 31,817 | 33,248 | |
Total Assets | 1,366,840 | 1,282,766 | 1,366,840 | 1,282,766 | |
Goodwill | 226,665 | 226,665 | 226,665 | 226,665 | |
Corporate and Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Electric operating revenues | 0 | 0 | 0 | 0 | |
Cost of energy | 0 | 0 | 0 | 0 | |
Utility margin | 0 | 0 | 0 | 0 | |
Other operating expenses | (3,006) | (3,573) | (9,261) | (11,118) | |
Depreciation and amortization | 3,351 | 3,445 | 10,263 | 10,502 | |
Operating income | (345) | 128 | (1,002) | 616 | |
Interest income | 3,095 | (1) | 9,871 | (27) | |
Other income (deductions) | (184) | (482) | (1,517) | (2,935) | |
Interest charges | (2,946) | (836) | (8,535) | (6,601) | |
Earnings before Income Taxes | (380) | (1,191) | (1,183) | (8,947) | |
Income taxes (benefit) | (93) | 699 | (497) | (2,139) | |
Net Earnings | (287) | (1,890) | (686) | (6,808) | |
Valencia non-controlling interest | 0 | 0 | 0 | 0 | |
Subsidiary preferred stock dividends | 0 | 0 | 0 | 0 | |
Net Earnings Available for PNM Common Stock | (287) | (1,890) | (686) | (6,808) | |
Total Assets | 237,818 | 114,374 | 237,818 | 114,374 | |
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) - Adjustments for New Accounting Pronouncement [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Previously reported amounts reclassified | $ 40.3 |
Public Service Company of New Mexico [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Previously reported amounts reclassified | 22.1 |
Texas-New Mexico Power Company [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Previously reported amounts reclassified | $ 10.4 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity [Abstract] | ||||
Percentage of pension liability adjustment capitalized into construction work In process | 24.30% | 22.40% | ||
Percentage of pension liability adjustment capitalized into other accounts | 2.50% | 2.50% | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (71,432) | |||
Total Other Comprehensive Income (Loss) | $ 1,063 | $ (7,475) | (2,211) | $ (9,545) |
Ending Balance | (73,643) | (73,643) | ||
Public Service Company of New Mexico [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (71,476) | (61,755) | ||
Amounts reclassified from AOCI (pre-tax) | (6,007) | (18,088) | ||
Income tax impact of amounts reclassified | 2,344 | 7,089 | ||
Other OCI changes (pre-tax) | 3,115 | 3,095 | ||
Income tax impact of other OCI changes | (1,216) | (1,213) | ||
Total Other Comprehensive Income (Loss) | 671 | (7,047) | (1,764) | (9,117) |
Ending Balance | (73,240) | (70,872) | (73,240) | (70,872) |
Public Service Company of New Mexico [Member] | Unrealized Gains on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 17,346 | 28,008 | ||
Amounts reclassified from AOCI (pre-tax) | (10,135) | (22,552) | ||
Income tax impact of amounts reclassified | 3,955 | 8,838 | ||
Other OCI changes (pre-tax) | 3,115 | 3,095 | ||
Income tax impact of other OCI changes | (1,216) | (1,213) | ||
Total Other Comprehensive Income (Loss) | (4,281) | (11,832) | ||
Ending Balance | 13,065 | 16,176 | 13,065 | 16,176 |
Public Service Company of New Mexico [Member] | Pension Liability Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (88,822) | (89,763) | ||
Amounts reclassified from AOCI (pre-tax) | 4,128 | 4,464 | ||
Income tax impact of amounts reclassified | (1,611) | (1,749) | ||
Total Other Comprehensive Income (Loss) | 2,517 | 2,715 | ||
Ending Balance | (86,305) | (87,048) | (86,305) | (87,048) |
PNMR [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (71,432) | (61,755) | ||
Amounts reclassified from AOCI (pre-tax) | (5,434) | (18,088) | ||
Income tax impact of amounts reclassified | 2,120 | 7,089 | ||
Other OCI changes (pre-tax) | 1,810 | 2,391 | ||
Income tax impact of other OCI changes | (707) | (937) | ||
Total Other Comprehensive Income (Loss) | (2,211) | (9,545) | ||
Ending Balance | (73,643) | (71,300) | (73,643) | (71,300) |
PNMR [Member] | Fair Value Adjustment for Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 44 | |||
Amounts reclassified from AOCI (pre-tax) | 573 | |||
Income tax impact of amounts reclassified | (224) | |||
Other OCI changes (pre-tax) | (1,305) | (704) | ||
Income tax impact of other OCI changes | 509 | 276 | ||
Total Other Comprehensive Income (Loss) | (447) | (428) | ||
Ending Balance | $ (403) | $ (428) | $ (403) | $ (428) |
Variable Interest Entities (Det
Variable Interest Entities (Details) | Jan. 31, 2016USD ($)MW | May 30, 2014 | Oct. 08, 2013USD ($) | Sep. 30, 2016USD ($)MW | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)MW | Sep. 30, 2015USD ($) | Nov. 01, 2016USD ($) | Oct. 21, 2016USD ($) | Aug. 31, 2016USD ($) | Aug. 30, 2016USD ($) | Aug. 01, 2016USD ($) | Jul. 19, 2016USD ($) | Jan. 15, 2016leaseMW | Dec. 31, 2015USD ($) | Jan. 15, 2015lease |
Results of Operations | ||||||||||||||||
Earnings attributable to non-controlling interest | $ 4,006,000 | $ 3,678,000 | $ 11,037,000 | $ 10,909,000 | ||||||||||||
Financial Position | ||||||||||||||||
Current assets | 398,886,000 | 398,886,000 | $ 385,570,000 | |||||||||||||
Total assets | 6,403,670,000 | 6,012,582,000 | 6,403,670,000 | 6,012,582,000 | 6,009,328,000 | |||||||||||
Current liabilities | 701,826,000 | 701,826,000 | 641,120,000 | |||||||||||||
Owners’ equity – non-controlling interest | 70,117,000 | 70,117,000 | 71,407,000 | |||||||||||||
Public Service Company of New Mexico [Member] | ||||||||||||||||
Results of Operations | ||||||||||||||||
Earnings attributable to non-controlling interest | 4,006,000 | 3,678,000 | 11,037,000 | 10,909,000 | ||||||||||||
Financial Position | ||||||||||||||||
Current assets | 310,645,000 | 310,645,000 | 357,757,000 | |||||||||||||
Total assets | 4,799,012,000 | 4,799,012,000 | 4,599,344,000 | |||||||||||||
Current liabilities | 275,983,000 | 275,983,000 | 316,921,000 | |||||||||||||
Owners’ equity – non-controlling interest | 70,117,000 | 70,117,000 | 71,407,000 | |||||||||||||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Other financial obligations due to beneficial owner | 0 | 0 | ||||||||||||||
Recourse available for creditors of trusts other than contractual lease payments | 0 | 0 | ||||||||||||||
Additional rights to assets beyond use of leased assets | 0 | 0 | ||||||||||||||
Assets related to the trusts other than accrued lease payments | 0 | 0 | 0 | |||||||||||||
Liabilities related to the trusts other than accrued lease payments | 0 | 0 | 0 | |||||||||||||
Accrued lease payments | 3,800,000 | 3,800,000 | 18,400,000 | |||||||||||||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Number of leases, expiring | lease | 4 | |||||||||||||||
Number of leases under which lease term was extended | lease | 4 | |||||||||||||||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 2 Leases [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Number of megawatts purchased (in megawatts) | MW | 64.1 | 64.1 | ||||||||||||||
Number of leases, expiring | lease | 4 | |||||||||||||||
Number of leases under which lease term was extended | lease | 1 | |||||||||||||||
Number of leases under which assets were purchased | lease | 3 | |||||||||||||||
Public Service Company of New Mexico [Member] | Valencia [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Payment for fixed costs | 4,900,000 | 4,900,000 | 14,500,000 | 14,500,000 | ||||||||||||
Payment for variable costs | 500,000 | 300,000 | $ 1,100,000 | 900,000 | ||||||||||||
Long-term contract option to purchase, ownership percentage | 50.00% | 50.00% | 50.00% | |||||||||||||
Long-term contract option to purchase, purchase price - percentage of adjusted NBV | 50.00% | |||||||||||||||
Long-term contract option to purchase, purchase price - percentage of FMV | 50.00% | |||||||||||||||
Long-term contract option to purchase, number of days to set FMV | 60 days | |||||||||||||||
Long-term contract option to purchase, estimated purchase price | $ 85,000,000 | |||||||||||||||
Long-term contract option to purchase, approximate approval period | 15 months | |||||||||||||||
Results of Operations | ||||||||||||||||
Operating revenues | 5,356,000 | 5,182,000 | $ 15,541,000 | 15,337,000 | ||||||||||||
Operating expenses | (1,350,000) | (1,504,000) | (4,504,000) | (4,428,000) | ||||||||||||
Earnings attributable to non-controlling interest | 4,006,000 | $ 3,678,000 | 11,037,000 | $ 10,909,000 | ||||||||||||
Financial Position | ||||||||||||||||
Current assets | 3,506,000 | 3,506,000 | 2,588,000 | |||||||||||||
Net property, plant, and equipment | 67,656,000 | 67,656,000 | 69,784,000 | |||||||||||||
Total assets | 71,162,000 | 71,162,000 | 72,372,000 | |||||||||||||
Current liabilities | 1,045,000 | 1,045,000 | 965,000 | |||||||||||||
Owners’ equity – non-controlling interest | $ 70,117,000 | $ 70,117,000 | 71,407,000 | |||||||||||||
Public Service Company of New Mexico [Member] | Valencia [Member] | Purchased Through May 30, 2028 [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Number of megawatts purchased (in megawatts) | MW | 158 | 158 | ||||||||||||||
NM Capital [Member] | San Juan Generating Station [Member] | Coal Supply [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Loan agreement among several entities | $ 125,000,000 | |||||||||||||||
Cash used to support bank letter or credit arrangement | $ 30,300,000 | $ 40,000,000 | ||||||||||||||
NM Capital [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Cash used to support bank letter or credit arrangement | $ 30,300,000 | $ 40,000,000 | ||||||||||||||
Loan receivable | $ 125,000,000 | $ 110,000,000 | $ 110,000,000 | |||||||||||||
Scheduled principal payment proceeds | $ 15,000,000 | |||||||||||||||
Interest receivable | $ 1,500,000 | $ 1,500,000 | ||||||||||||||
NM Capital [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | Subsequent event [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Scheduled principal payment proceeds | $ 15,000,000 | |||||||||||||||
Scheduled interest payment proceeds | $ 2,300,000 | |||||||||||||||
Unaffiliated third party [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | Subsequent event [Member] | ||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||
Amount held in a restricted bank account | $ 17,300,000 |
Lease Commitments (Details)
Lease Commitments (Details) - Public Service Company of New Mexico [Member] $ in Millions | Jan. 15, 2016USD ($)leaseMW | Mar. 31, 2015 | Sep. 30, 2016USD ($) | Apr. 01, 2015USD ($) | Jan. 15, 2015lease |
Operating Leased Assets [Line Items] | |||||
Ownership of the EIP | 60.00% | ||||
Percent leased, now expired | 40.00% | ||||
Leased capacity at fair market value, elected to purchase | $ | $ 7.7 | ||||
Palo Verde Nuclear Generating Station, Unit 1 Leases [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Number of leases, expiring | 4 | ||||
Number of leases under which lease term was extended | 4 | ||||
Palo Verde Nuclear Generating Station, Unit 2 Leases [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Number of leases, expiring | 4 | ||||
Number of leases under which lease term was extended | 1 | ||||
Number of leases under which assets were purchased | 3 | ||||
Leased capacity to be purchased (in megawatts) | MW | 32.76 | ||||
Palo Verde Nuclear Generating Station, Unit 2 Leases, 31.25 MW [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Number of leases under which assets were purchased | 1 | ||||
Payment to lessors | $ | $ 78.1 | ||||
Palo Verde Nuclear Generating Station, Unit 2 Leases, January 15, 2016 [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Leased capacity to be purchased (in megawatts) | MW | 31.2494 | ||||
Palo Verde Nuclear Generating Station, Unit 2 Leases 32.76 MW [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Number of leases under which assets were purchased | 2 | ||||
Payment to lessors | $ | $ 85.2 | ||||
Palo Verde Nuclear Generating Station [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Loss contingency, lease arrangements | $ | $ 176.1 |
Fair Value of Derivative and 42
Fair Value of Derivative and Other Financial Instruments - Commodity Derivatives (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Current assets | $ 3,949,000 | $ 3,813,000 |
Deferred charges | 747,000 | 2,622,000 |
Current liabilities | (2,423,000) | (1,859,000) |
Long-term liabilities | (58,000) | 0 |
PNMR and PNM [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amounts recognized for the right to reclaim cash collateral | 0 | 0 |
Amounts posted as cash collateral under margin arrangements | 3,000,000 | 2,700,000 |
Obligations to return cash collateral | 100,000 | 100,000 |
PNMR and PNM [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current assets | 3,949,000 | 3,813,000 |
Deferred charges | 747,000 | 2,622,000 |
Commodity derivative instruments, Assets | 4,696,000 | 6,435,000 |
Current liabilities | (2,423,000) | (1,859,000) |
Long-term liabilities | (58,000) | 0 |
Commodity derivative instruments, Liabilities | (2,481,000) | (1,859,000) |
Net | 2,215,000 | 4,576,000 |
PNMR and PNM [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Palo Verde Nuclear Generating Station [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current assets | 2,700,000 | 3,000,000 |
Deferred charges | 600,000 | 2,600,000 |
Public Service Company of New Mexico [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current assets | 3,949,000 | 3,813,000 |
Deferred charges | 747,000 | 2,622,000 |
Current liabilities | (2,423,000) | (1,859,000) |
Long-term liabilities | (58,000) | 0 |
Public Service Company of New Mexico [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Fuel and Purchased Power Adjustment Clause [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current assets | 100,000 | 400,000 |
Deferred charges | 100,000 | |
Current liabilities | $ (100,000) | $ (200,000) |
Fair Value of Derivative and 43
Fair Value of Derivative and Other Financial Instruments - Statement of Earnings Information (Details) - Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) | $ 1,651 | $ 6,745 | $ (899) | $ 7,127 |
Electric operating revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) | 1,652 | 6,823 | 214 | 7,354 |
Cost of energy [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) | $ (1) | $ (78) | $ (1,113) | $ (227) |
Fair Value of Derivative and 44
Fair Value of Derivative and Other Financial Instruments - Margin, Notional Amounts and Credit Rating (Details) - PNMR and PNM [Member] $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)MMBTUMWh | Dec. 31, 2015USD ($)MMBTUMWh | |
Derivative [Line Items] | ||
Contractual Liability | $ 0 | $ 839 |
Existing Cash Collateral | 0 | 0 |
Net Exposure | $ 0 | $ 839 |
Commodity Contract [Member] | Fair Value Hedging [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Economic Hedges (in mmbtu and mwh) | MMBTU | 200,000 | 577,481 |
Commodity Contract [Member] | Fair Value Hedging [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Economic Hedges (in mmbtu and mwh) | MWh | 2,924,985 | 3,405,843 |
Fair Value of Derivative and 45
Fair Value of Derivative and Other Financial Instruments - Sale of Power (Details) | Dec. 31, 2017$ / MWh | Sep. 30, 2016$ / MWhMW |
Palo Verde Nuclear Generating Station Unit 3 [Member] | PNMR and PNM [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Number of megawatts nuclear generation (in megawatts) | MW | 134 | |
Palo Verde Nuclear Generating Station Unit 3 [Member] | PNMR and PNM [Member] | Commodity Contract [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative, average forward price (in dollars per MWh) | 26 | |
Palo Verde Nuclear Generating Station Unit 3 [Member] | PNMR and PNM [Member] | Commodity Contract [Member] | Subsequent event [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative, average forward price (in dollars per MWh) | 29 | |
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member] | Firm Contract [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of electric power plant output sold | 100.00% |
Fair Value of Derivative and 46
Fair Value of Derivative and Other Financial Instruments - Available for Sale Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
(Increase)/decrease in other than temporary losses of available-for-sale securities, net portion recognized in earnings | $ 100,000 | $ (2,400,000) | $ 1,000,000 | $ (3,200,000) | |
Available-for-sale securities for which carrying value exceeds fair value | 0 | 0 | |||
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | ||||
PNMR and PNM [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 271,035,000 | 271,035,000 | $ 259,042,000 | ||
Unrealized Gains | 21,716,000 | 21,716,000 | 28,820,000 | ||
Proceeds from sales | 86,975,000 | 71,576,000 | 280,989,000 | 166,097,000 | |
Gross realized gains | 7,026,000 | 8,998,000 | 27,273,000 | 22,463,000 | |
Gross realized (losses) | (2,565,000) | $ (4,014,000) | (12,913,000) | $ (7,133,000) | |
PNMR and PNM [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 271,035,000 | 271,035,000 | 259,042,000 | ||
PNMR and PNM [Member] | Nuclear Decommissioning Trust [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 258,600,000 | 258,600,000 | 249,100,000 | ||
PNMR and PNM [Member] | Mine Reclamation Trust [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 12,400,000 | 12,400,000 | 9,900,000 | ||
PNMR and PNM [Member] | Cash and equivalents [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 4,831,000 | 4,831,000 | 10,700,000 | ||
Unrealized Gains | 0 | 0 | 0 | ||
PNMR and PNM [Member] | Cash and equivalents [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 4,831,000 | 4,831,000 | 10,700,000 | ||
PNMR and PNM [Member] | Domestic value [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 63,666,000 | 63,666,000 | 44,505,000 | ||
Unrealized Gains | 8,345,000 | 8,345,000 | 11,610,000 | ||
PNMR and PNM [Member] | Domestic value [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 63,666,000 | 63,666,000 | 44,505,000 | ||
PNMR and PNM [Member] | Domestic growth [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 47,996,000 | 47,996,000 | 61,078,000 | ||
Unrealized Gains | 5,619,000 | 5,619,000 | 11,163,000 | ||
PNMR and PNM [Member] | Domestic growth [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 47,996,000 | 47,996,000 | 61,078,000 | ||
PNMR and PNM [Member] | International and other [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 28,304,000 | 28,304,000 | 27,961,000 | ||
Unrealized Gains | 2,868,000 | 2,868,000 | 1,569,000 | ||
PNMR and PNM [Member] | International and other [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 28,304,000 | 28,304,000 | 27,961,000 | ||
PNMR and PNM [Member] | U.S. Government [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 37,152,000 | 37,152,000 | 27,880,000 | ||
Unrealized Gains | 696,000 | 696,000 | 178,000 | ||
PNMR and PNM [Member] | U.S. Government [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 37,152,000 | 37,152,000 | 27,880,000 | ||
PNMR and PNM [Member] | Municipals [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 52,459,000 | 52,459,000 | 58,576,000 | ||
Unrealized Gains | 2,490,000 | 2,490,000 | 3,672,000 | ||
PNMR and PNM [Member] | Municipals [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 52,459,000 | 52,459,000 | 58,576,000 | ||
PNMR and PNM [Member] | Corporate and other [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | 36,627,000 | 36,627,000 | 28,342,000 | ||
Unrealized Gains | 1,698,000 | 1,698,000 | 628,000 | ||
PNMR and PNM [Member] | Corporate and other [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair Value | $ 36,627,000 | $ 36,627,000 | $ 28,342,000 |
Fair Value of Derivative and 47
Fair Value of Derivative and Other Financial Instruments - Debt Maturities (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Debt Maturities [Line Items] | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 0 |
Held-to-Maturity | |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 |
PNMR and PNM [Member] | |
Available-for-Sale | |
Within 1 year | 4,349,000 |
After 1 year through 5 years | 36,265,000 |
After 5 years through 10 years | 24,512,000 |
After 10 years through 15 years | 10,286,000 |
After 15 years through 20 years | 9,446,000 |
After 20 years | 41,380,000 |
Available-for-sale debt securities | 126,238,000 |
PNM Resources [Member] | |
Held-to-Maturity | |
Within 1 year | 0 |
After 1 year through 5 years | 119,987,000 |
After 5 years through 10 years | 0 |
Held-to-maturity debt securities | $ 119,987,000 |
Fair Value of Derivative and 48
Fair Value of Derivative and Other Financial Instruments - Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
PNMR and PNM [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 271,035 | $ 259,042 |
PNMR and PNM [Member] | Cash and equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,831 | 10,700 |
PNMR and PNM [Member] | Domestic value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63,666 | 44,505 |
PNMR and PNM [Member] | Domestic growth [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,996 | 61,078 |
PNMR and PNM [Member] | International and other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 28,304 | 27,961 |
PNMR and PNM [Member] | U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 37,152 | 27,880 |
PNMR and PNM [Member] | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 52,459 | 58,576 |
PNMR and PNM [Member] | Corporate and other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 36,627 | 28,342 |
PNM Resources [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,508,344 | 2,264,869 |
Westmoreland Loan | 119,987 | |
Investment in PVNGS lessor notes | 8,947 | |
Other investments | 1,030 | 1,269 |
PNM Resources [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Westmoreland Loan | 0 | |
Investment in PVNGS lessor notes | 0 | |
Other investments | 428 | 604 |
PNM Resources [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,508,344 | 2,264,869 |
Westmoreland Loan | 0 | |
Investment in PVNGS lessor notes | 0 | |
Other investments | 0 | 0 |
PNM Resources [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Westmoreland Loan | 119,987 | |
Investment in PVNGS lessor notes | 8,947 | |
Other investments | 602 | 665 |
PNM Resources [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,308,340 | 2,091,948 |
Westmoreland Loan | 109,783 | |
Investment in PVNGS lessor notes | 8,587 | |
Other investments | 428 | 604 |
Public Service Company of New Mexico [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,768,115 | 1,703,209 |
Investment in PVNGS lessor notes | 8,947 | |
Other investments | 197 | 366 |
Public Service Company of New Mexico [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Investment in PVNGS lessor notes | 0 | |
Other investments | 197 | 366 |
Public Service Company of New Mexico [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,768,115 | 1,703,209 |
Investment in PVNGS lessor notes | 0 | |
Other investments | 0 | 0 |
Public Service Company of New Mexico [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Investment in PVNGS lessor notes | 8,947 | |
Other investments | 0 | 0 |
Public Service Company of New Mexico [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,631,587 | 1,580,677 |
Investment in PVNGS lessor notes | 8,587 | |
Other investments | 197 | 366 |
Texas-New Mexico Power Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 482,385 | 411,661 |
Other investments | 231 | 238 |
Texas-New Mexico Power Company [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | 231 | 238 |
Texas-New Mexico Power Company [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 482,385 | 411,661 |
Other investments | 0 | 0 |
Texas-New Mexico Power Company [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | 0 | 0 |
Texas-New Mexico Power Company [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 420,802 | 361,411 |
Other investments | 231 | 238 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 271,035 | 259,042 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 187,525 | 177,352 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 83,510 | 81,690 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 4,696 | 6,435 |
Commodity derivative liabilities | (2,481) | (1,859) |
Net | 2,215 | 4,576 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 0 | 0 |
Commodity derivative liabilities | 0 | 0 |
Net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 4,696 | 6,435 |
Commodity derivative liabilities | (2,481) | (1,859) |
Net | 2,215 | 4,576 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Cash and equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,831 | 10,700 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Cash and equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,831 | 10,700 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Cash and equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63,666 | 44,505 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63,666 | 44,505 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic growth [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,996 | 61,078 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic growth [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,996 | 61,078 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Domestic growth [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | International and other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 28,304 | 27,961 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | International and other [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 28,304 | 27,961 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | International and other [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 37,152 | 27,880 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | U.S. Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 35,879 | 26,608 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | U.S. Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,273 | 1,272 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 52,459 | 58,576 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Municipals [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Municipals [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 52,459 | 58,576 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Corporate and other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 36,627 | 28,342 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Corporate and other [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 6,849 | 6,500 |
Fair Value, Measurements, Recurring [Member] | PNMR and PNM [Member] | Corporate and other [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 29,778 | $ 21,842 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 01, 2015 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted (in shares) | 0 | ||||||
Unrecognized expense related to stock awards | $ 5,900,000 | $ 5,700,000 | |||||
Restricted Stock, Shares | |||||||
Expired (in shares) | (8,200) | ||||||
Restricted Stock, Weighted- Average Grant Date Fair Value | |||||||
Expired (in dollars per share) | $ 24.85 | ||||||
Stock Options, Shares | |||||||
Outstanding at beginning of period (in shares) | 569,342 | ||||||
Granted (in shares) | 0 | ||||||
Exercised (in shares) | (241,468) | ||||||
Forfeited (in shares) | (2,000) | ||||||
Expired (in shares) | (8,200) | ||||||
Outstanding at end of period (in shares) | 317,674 | 569,342 | |||||
Stock Options, Weighted- Average Exercise Price | |||||||
Outstanding at beginning of period (in dollars per share) | $ 19.35 | ||||||
Granted (in dollars per share) | 0 | ||||||
Exercised (in dollars per share) | 27.61 | ||||||
Forfeited (in dollars per share) | 12.22 | ||||||
Expired (in dollars per share) | 24.85 | ||||||
Outstanding at end of period (in dollars per share) | 12.97 | $ 19.35 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted-average grant date fair value of options granted (in dollars per share) | $ 0 | $ 0 | |||||
Total fair value of options that vested | $ 0 | $ 0 | |||||
Total intrinsic value of options exercised | $ 1,208,000 | $ 1,814,000 | |||||
Chairman, President, and Chief Executive Officer [Member] | Common Stock [Member] | Achieves a specified improvement in total shareholder return at the end of 2016 compared to 2011 and she remains an employee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares received if achieves specified improvement in total shareholders return (in shares) | 135,000 | ||||||
Chairman, President, and Chief Executive Officer [Member] | Common Stock [Member] | Achieves a specified improvement in total shareholder return at the end of 2014 compared to 2011 and she remains an employee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares received if achieves specified improvement in total shareholders return (in shares) | 35,000 | ||||||
Board approval for shares after specified target was reached (in shares) | 35,000 | ||||||
Chairman, President, and Chief Executive Officer [Member] | Common Stock [Member] | Achieves a specific performance target by the end of 2019 and she remains an employee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares received if achieves specified improvement in total shareholders return (in shares) | 53,859 | ||||||
Chairman, President, and Chief Executive Officer [Member] | Common Stock [Member] | Achieves a specific performance target by the end of 2017 and she remains an employee [Member] [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares received if achieves specified improvement in total shareholders return (in shares) | 17,953 | ||||||
Executive Vice President and Chief Financial Officer [Member] | Common Stock [Member] | Achieved performance target for 2015 and 2016 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock | $ 100,000 | ||||||
Executive Vice President and Chief Financial Officer [Member] | Common Stock [Member] | Achieved performance target for 2015, 2016 and 2017 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock | $ 275,000 | ||||||
Restricted Stock and Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Period of time stock expense is expected to be recognized | 1 year 11 months | 1 year 4 months 24 days | |||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||
Expected quarterly dividends per share (in dollars per share) | $ 0.22 | $ 0.20 | |||||
Risk-free interest rate | 0.94% | 0.92% | |||||
Restricted Stock, Shares | |||||||
Outstanding at beginning of period (in shares) | 245,094 | ||||||
Granted (in shares) | 190,276 | ||||||
Exercised (in shares) | (213,812) | ||||||
Forfeited (in shares) | (714) | ||||||
Expired (in shares) | 0 | ||||||
Outstanding at end of period (in shares) | 220,844 | 245,094 | |||||
Restricted Stock, Weighted- Average Grant Date Fair Value | |||||||
Outstanding at beginning of period (in dollars per share) | $ 24.81 | ||||||
Granted (in dollars per share) | 26.49 | $ 20.34 | |||||
Exercised (in dollars per share) | 23.44 | ||||||
Forfeited (in dollars per share) | 29.54 | ||||||
Expired (in dollars per share) | 0 | ||||||
Outstanding at end of period (in dollars per share) | $ 27.58 | $ 24.81 | |||||
Stock Options, Shares | |||||||
Expired (in shares) | 0 | ||||||
Stock Options, Weighted- Average Exercise Price | |||||||
Expired (in dollars per share) | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted-average grant date fair value (in dollars per share) | $ 26.49 | $ 20.34 | |||||
Total fair value of restricted shares that vested | $ 5,011,000 | $ 6,503,000 | |||||
Performance Shares [Member] | Executive [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 79,619 | ||||||
Shares exercised (in shares) | 79,619 | ||||||
Share-based compensation, weighted percentage assigned to achieving market targets | 60.00% | ||||||
Share-based compensation, weighted percentage assigned to achieving performance targets | 40.00% | ||||||
Share-based compensation, maximum number of shares awarded in year 1 (in shares) | 165,628 | ||||||
Share-based compensation, maximum number of shares awarded in year 2 (in shares) | 166,797 | ||||||
Share-based compensation, maximum number of shares awarded in year 3 (in shares) | 147,031 | ||||||
Performance period | 3 years | ||||||
Market-Based Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||
Risk-free interest rate | 0.97% | 1.00% | |||||
Dividend yield | 2.74% | 2.87% | |||||
Expected volatility | 20.44% | 18.73% | |||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of stock options outstanding | $ 6,300,000 | ||||||
Weighted-average remaining contract life | 2 years 2 months 19 days | ||||||
Number of outstanding stock options with an exercise price greater than the closing price (in shares) | 0 | ||||||
Performance Equity Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Vesting rate | 100.00% |
Financing - Financing Activitie
Financing - Financing Activities (Details) | Nov. 01, 2016USD ($) | Feb. 01, 2016USD ($) | Jun. 21, 2016USD ($) | Sep. 30, 2016USD ($)covenant | Dec. 31, 2015USD ($) | Oct. 21, 2016USD ($) | Sep. 27, 2016USD ($) | May 20, 2016USD ($) | Dec. 17, 2015USD ($) | Sep. 30, 2015 | Mar. 09, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||
Number of applicable financial covenants | covenant | 1 | ||||||||||
Fixed interest rate | 1.927% | ||||||||||
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value gain (loss) | $ (700,000) | $ 100,000 | |||||||||
Public Service Company of New Mexico [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity term over which financings require regulator approval | 18 months | ||||||||||
NM Capital [Member] | Coal Supply [Member] | San Juan Generating Station [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payments to fund long-term loans to unaffiliated third party | $ 125,000,000 | ||||||||||
Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of debt to capital (less than or equal to) | 65.00% | ||||||||||
PNMR 2015 Term Loan Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loans | $ 150,000,000 | ||||||||||
Interest rate | 1.42% | ||||||||||
BTMU Term Loan Agreement [Member] | NM Capital [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loans | $ 125,000,000 | $ 107,800,000 | |||||||||
Stated interest rate | 3.51% | ||||||||||
Estimated principal payments | $ 45,100,000 | ||||||||||
BTMU Term Loan Agreement [Member] | NM Capital [Member] | Minimum [Member] | Subsequent event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, required quarterly payment | $ 5,000,000 | ||||||||||
First Mortgage Bonds [Member] | Texas-New Mexico Power Company [Member] | First Mortgage Bonds, 3.53%, due 2026, Series 2016A [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 3.53% | ||||||||||
Aggregate principal amount | $ 60,000,000 | ||||||||||
PNM 2016 Term Loan Agreement [Member] | Public Service Company of New Mexico [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 1.15% | ||||||||||
Aggregate principal amount | $ 175,000,000 | ||||||||||
PNM 2014 Multi-Draw Term Loan Agreement [Member] | Public Service Company of New Mexico [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of debt | $ 125,000,000 | ||||||||||
Pollution Control Bonds [Member] [Member] | Public Service Company of New Mexico [Member] | Pollution Control Revenue Bonds 1 Point 875 Percent, due 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 1.875% | ||||||||||
Aggregate principal amount | $ 146,000,000 | ||||||||||
Pollution Control Bonds [Member] [Member] | Public Service Company of New Mexico [Member] | Pollution Control Revenue Bonds 1 Point 875 Percent, due 2021, 2016 Series A [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | 46,000,000 | ||||||||||
Pollution Control Bonds [Member] [Member] | Public Service Company of New Mexico [Member] | Pollution Control Revenue Bonds 1 Point 875 Percent, due 2021, 2016 Series B [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 100,000,000 | ||||||||||
Letter of Credit [Member] | PNMR [Member] | Subsequent event [Member] | Letter or credit, 30 mil JP Morgan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 30,300,000 |
Financing - Short-term Debt (De
Financing - Short-term Debt (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 21, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | |||
Short-term debt | $ 355,900,000 | $ 250,600,000 | |
Letters of credit outstanding | $ 36,500,000 | ||
Subsequent event [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | $ 592,800,000 | ||
PNMR Term Loan Agreement [Member] | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate for short-term debt | 1.38% | ||
Short-term debt | $ 150,000,000 | 150,000,000 | |
Notes Payable to Banks [Member] | PNMR Term Loan Agreement [Member] | |||
Short-term Debt [Line Items] | |||
Term of loan | 12 months | ||
Borrowings under 12-month term loan | $ 150,000,000 | ||
PNM Resources [Member] | Subsequent event [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | 100,400,000 | ||
Consolidated invested cash | 1,800,000 | ||
PNM Resources [Member] | PNMR Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate for short-term debt | 1.78% | ||
PNM Resources [Member] | Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Financing capacity | $ 300,000,000 | ||
Short-term debt | 163,500,000 | 41,600,000 | |
Public Service Company of New Mexico [Member] | |||
Short-term Debt [Line Items] | |||
Short-term debt | 42,400,000 | 0 | |
Letters of credit outstanding | 2,500,000 | ||
Public Service Company of New Mexico [Member] | Subsequent event [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | 373,500,000 | ||
Consolidated invested cash | 0 | ||
Public Service Company of New Mexico [Member] | Local Lines of Credit [Member] | |||
Short-term Debt [Line Items] | |||
NMPRC approved credit facility | $ 50,000,000 | ||
Weighted-average interest rate for short-term debt | 1.68% | ||
Short-term debt | $ 20,000,000 | 0 | |
Public Service Company of New Mexico [Member] | Local Lines of Credit [Member] | Subsequent event [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | 44,000,000 | ||
Public Service Company of New Mexico [Member] | PNMR Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate for short-term debt | 1.66% | ||
Public Service Company of New Mexico [Member] | Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Financing capacity | $ 400,000,000 | ||
Short-term debt | 22,400,000 | 0 | |
Texas-New Mexico Power Company [Member] | |||
Short-term Debt [Line Items] | |||
Short-term debt | 0 | 59,000,000 | |
Letters of credit outstanding | 100,000 | ||
Short-term debt – affiliate | 0 | 11,800,000 | |
Texas-New Mexico Power Company [Member] | Subsequent event [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | 74,900,000 | ||
Consolidated invested cash | 300,000 | ||
Texas-New Mexico Power Company [Member] | Subsequent event [Member] | Affiliated Entity [Member] | |||
Short-term Debt [Line Items] | |||
Short-term debt – affiliate | $ 0 | ||
Texas-New Mexico Power Company [Member] | Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Financing capacity | 75,000,000 | ||
Short-term debt | 0 | $ 59,000,000 | |
Texas-New Mexico Power Company [Member] | Revolving Credit Facility [Member] | First Mortgage Bonds, Due 2014, Series 2009A, at 9.50% [Member] | |||
Short-term Debt [Line Items] | |||
Collateral amount | $ 75,000,000 |
Pension and Other Postretirem52
Pension and Other Postretirement Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Public Service Company of New Mexico [Member] | Pension Plan [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest cost | 7,577,000 | 7,064,000 | 22,731,000 | 21,191,000 | |
Expected return on plan assets | (8,854,000) | (9,831,000) | (26,562,000) | (29,492,000) | |
Amortization of net (gain) loss | 3,455,000 | 3,705,000 | 10,365,000 | 11,115,000 | |
Amortization of prior service cost | (241,000) | (241,000) | (724,000) | (724,000) | |
Net Periodic Benefit Cost (Income) | 1,937,000 | 697,000 | 5,810,000 | 2,090,000 | |
Contributions by employer | 0 | 30,000,000 | |||
Total expected employer contributions for fiscal year | 0 | 0 | |||
Total expected employer contributions for future fiscal years | 0 | $ 0 | |||
Public Service Company of New Mexico [Member] | Pension Plan [Member] | Minimum [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Assumptions used calculating net periodic benefit cost, discount rate | 4.80% | ||||
Public Service Company of New Mexico [Member] | Pension Plan [Member] | Maximum [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Assumptions used calculating net periodic benefit cost, discount rate | 5.70% | ||||
Public Service Company of New Mexico [Member] | OPEB [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | 35,000 | 51,000 | $ 105,000 | 153,000 | |
Interest cost | 1,087,000 | 1,022,000 | 3,260,000 | 3,067,000 | |
Expected return on plan assets | (1,371,000) | (1,403,000) | (4,113,000) | (4,208,000) | |
Amortization of net (gain) loss | 286,000 | 491,000 | 858,000 | 1,474,000 | |
Amortization of prior service cost | (7,000) | (160,000) | (22,000) | (481,000) | |
Net Periodic Benefit Cost (Income) | 30,000 | 1,000 | 88,000 | 5,000 | |
Contributions by employer | 800,000 | 800,000 | 2,400,000 | 2,400,000 | |
Public Service Company of New Mexico [Member] | Executive Retirement Program [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 203,000 | 190,000 | 609,000 | 570,000 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net (gain) loss | 64,000 | 81,000 | 192,000 | 243,000 | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Net Periodic Benefit Cost (Income) | 267,000 | 271,000 | 801,000 | 813,000 | |
Contributions by employer | 400,000 | 400,000 | 1,200,000 | 1,200,000 | |
Total expected employer contributions for fiscal year | 1,500,000 | 1,500,000 | |||
Total expected employer contributions for future fiscal years | 5,900,000 | 5,900,000 | |||
Texas-New Mexico Power Company [Member] | Pension Plan [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 826,000 | 761,000 | 2,478,000 | 2,282,000 | |
Expected return on plan assets | (986,000) | (1,105,000) | (2,957,000) | (3,315,000) | |
Amortization of net (gain) loss | 175,000 | 195,000 | 525,000 | 586,000 | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Net Periodic Benefit Cost (Income) | 15,000 | (149,000) | 46,000 | (447,000) | |
Contributions by employer | $ 0 | ||||
Total expected employer contributions for fiscal year | 0 | 0 | |||
Total expected employer contributions for future fiscal years | 0 | $ 0 | |||
Texas-New Mexico Power Company [Member] | Pension Plan [Member] | Minimum [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Assumptions used calculating net periodic benefit cost, discount rate | 4.80% | ||||
Texas-New Mexico Power Company [Member] | Pension Plan [Member] | Maximum [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Assumptions used calculating net periodic benefit cost, discount rate | 5.70% | ||||
Texas-New Mexico Power Company [Member] | OPEB [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | 46,000 | 62,000 | $ 139,000 | 185,000 | |
Interest cost | 169,000 | 152,000 | 508,000 | 456,000 | |
Expected return on plan assets | (122,000) | (130,000) | (367,000) | (390,000) | |
Amortization of net (gain) loss | (10,000) | 0 | (30,000) | 0 | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Net Periodic Benefit Cost (Income) | 83,000 | 84,000 | 250,000 | 251,000 | |
Contributions by employer | 0 | 0 | 0 | 0 | |
Total expected employer contributions for fiscal year | 300,000 | 300,000 | |||
Total expected employer contributions for future fiscal years | 1,400,000 | 1,400,000 | |||
Texas-New Mexico Power Company [Member] | Executive Retirement Program [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 10,000 | 9,000 | 30,000 | 27,000 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net (gain) loss | 1,000 | 1,000 | 1,000 | 3,000 | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Net Periodic Benefit Cost (Income) | 11,000 | 10,000 | 31,000 | 30,000 | |
Total expected employer contributions for fiscal year | 100,000 | 100,000 | |||
Total expected employer contributions for future fiscal years | 400,000 | 400,000 | |||
Texas-New Mexico Power Company [Member] | Executive Retirement Program [Member] | Maximum [Member] | |||||
Components of Net Periodic Benefit Cost | |||||
Contributions by employer | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Nuclear Spent Fuel and Waste Disposal (Details) - Palo Verde Nuclear Generating Station [Member] - Public Service Company of New Mexico [Member] - USD ($) | May 16, 2014 | Mar. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 |
Department of energy, spent nuclear fuel removal July 2011 - June 2014 [Member] | ||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||
PNM's share of third party settlement claim | $ 4,300,000 | |||
Litigation settlement, portion credited to customers | $ 3,100,000 | |||
Nuclear spent fuel and waste disposal [Member] | ||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||
Estimate of possible loss | $ 58,000,000 | |||
Revised annual fee, nuclear waste disposal | $ 0 | |||
Nuclear spent fuel and waste disposal [Member] | Other Deferred Credits [Member] | ||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||
Loss contingency accrual | $ 12,000,000 | $ 12,200,000 |
Commitments and Contingencies54
Commitments and Contingencies - The Clean Air Act (Details) | Feb. 25, 2016 | Dec. 16, 2015USD ($)MWhMW | Mar. 02, 2015lb / MMBTUT | Sep. 30, 2016USD ($)joint_ownerrequirementwellMW | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($)parts_per_billion | Sep. 30, 2016USD ($)joint_ownerrequirementwellMW | Sep. 30, 2015USD ($)parts_per_billion | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($)joint_ownerrequirementwellMW | Feb. 09, 2016 | Jan. 26, 2016state | Oct. 01, 2015parts_per_billion | Jul. 31, 2015MW | Dec. 30, 2013lbsofnox / mmbtu | Feb. 28, 2013lawsuitstatemine | Aug. 06, 2012compliance_alternative | Jan. 31, 2010parts_per_billion | Jul. 31, 2005T | Dec. 31, 1999state |
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Regulatory disallowances and restructuring costs | $ 16,451,000 | $ 0 | $ 17,225,000 | $ 1,744,000 | ||||||||||||||||
Plant in service, held for future use, and to be abandoned | 6,842,017,000 | 6,842,017,000 | $ 6,307,261,000 | $ 6,842,017,000 | ||||||||||||||||
Accumulated depreciation and amortization | 2,312,560,000 | 2,312,560,000 | 2,058,772,000 | 2,312,560,000 | ||||||||||||||||
Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Regulatory disallowances and restructuring costs | 16,451,000 | $ 0 | 17,225,000 | $ 1,744,000 | ||||||||||||||||
Plant in service, held for future use, and to be abandoned | 5,303,910,000 | 5,303,910,000 | 4,833,303,000 | 5,303,910,000 | ||||||||||||||||
Accumulated depreciation and amortization | $ 1,785,507,000 | $ 1,785,507,000 | 1,569,549,000 | $ 1,785,507,000 | ||||||||||||||||
Public Service Company of New Mexico [Member] | Reeves station [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Requirements to be implemented | requirement | 0 | 0 | 0 | |||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 2 and 3 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Plant in service, held for future use, and to be abandoned | $ 471,600,000 | $ 471,600,000 | $ 471,600,000 | |||||||||||||||||
Accumulated depreciation and amortization | 201,400,000 | 201,400,000 | 201,400,000 | |||||||||||||||||
Net book value | 270,200,000 | 270,200,000 | 270,200,000 | |||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station [Member] | Loss on long-term purchase commitment [Member] | Surface [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Regulatory disallowances and restructuring costs | $ 16,500,000 | |||||||||||||||||||
Estimate of possible loss | $ 103,000,000 | $ 103,000,000 | $ 103,000,000 | |||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station And Four Corners [Member] | Maximum [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Proposed government standard emission limit (in ozone parts per million) | parts_per_billion | 70 | |||||||||||||||||||
Government standard emission limit (in ozone parts per million) | parts_per_billion | 75 | 75 | 70 | |||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station And Four Corners [Member] | Minimum [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Proposed government standard emission limit (in ozone parts per million) | parts_per_billion | 60 | |||||||||||||||||||
PNMR and PNM [Member] | Palo Verde Nuclear Generating Station Unit 3 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of megawatts | MW | 134 | 134 | 134 | |||||||||||||||||
Clean Air Act related to Regional Haze [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of states to address regional haze (in states) | state | 50 | |||||||||||||||||||
Potential to emit tons per year of visibility impairing pollution (in tons, more than) | T | 250 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | San Juan Generating Station Unit 4 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of other joint owners | joint_owner | 8 | 8 | 8 | |||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Estimated costs to remain unrecovered | $ 20,000,000 | |||||||||||||||||||
Expense reflected in regulatory disallowances and restructuring costs | $ 5,200,000 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Units 1 and 4 [Member] | Installation Costs Including Construction Management, Gross Receipts Taxes, AFUDC, and Other PNM Costs [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Total costs for equipment | $ 76,800,000 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Units 2 and 3 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Current ownership interest (in megawatts) | MW | 418 | |||||||||||||||||||
Time period to recover retired units' remaining net book value | 20 years | 20 years | ||||||||||||||||||
Recovery percentage of estimated undepreciated value at 12/31/17 | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||||
Estimated undepreciated value at 12/31/17 | $ 255,300,000 | |||||||||||||||||||
Regulatory disallowances and restructuring costs | 127,600,000 | |||||||||||||||||||
Expense reflected in regulatory disallowances and restructuring costs | $ 400,000 | $ 800,000 | ||||||||||||||||||
Accumulated plant write-off, disallowance | 128,600,000 | $ 128,600,000 | $ 128,600,000 | |||||||||||||||||
Net carrying value of utility plant | $ 141,600,000 | 141,600,000 | 141,600,000 | |||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Units 2 and 3 [Member] | Increase in coal mine decommissioning liability [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Regulatory disallowances and restructuring costs | $ 165,700,000 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Unit 4 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 65 | 132 | ||||||||||||||||||
Estimated rate base value | $ 0 | |||||||||||||||||||
Coal-fired generation (in megawatts) | MW | 197 | |||||||||||||||||||
Number of megawatt hours of Renewable Energy Certificates to be acquired and retired (in megawatt hours) | MWh | 1 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Unit 4 [Member] | Maximum [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Annual cost of Renewable Energy Credits | $ 7,000,000 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station Unit 3 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Estimated undepreciated value at 12/31/17 | $ 152,000,000 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | PNMR and PNM [Member] | Palo Verde Nuclear Generating Station Unit 3 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of megawatts | MW | 134 | |||||||||||||||||||
Clean Air Act, SNCR [Member] | PNMR Development [Member] | San Juan Generating Station Unit 4 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Expense for cost, obligation to reimburse | $ 600,000 | |||||||||||||||||||
Potential acquisition of ownership (in megawatts) | MW | 65 | |||||||||||||||||||
Clean Air Act, SNCR Hearing Examiner Recommended Denial [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Unit 4 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 132 | |||||||||||||||||||
Clean Air Act, Post-2022 Coal Supply future rate case [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station Unit 4 [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Period of time agreed to by all parties to settle rate case | 6 months | |||||||||||||||||||
Increase in coal mine decommissioning liability [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Expense reflected in regulatory disallowances and restructuring costs | $ 4,800,000 | |||||||||||||||||||
Clean Air Act Related to Post Combustion Controls [Member] | Public Service Company of New Mexico [Member] | Four Corners [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of compliance alternatives | compliance_alternative | 2 | |||||||||||||||||||
Plant requirement to meet NOx emissions limit (in pounds of NOx per MMBTU) | lbsofnox / mmbtu | 0.015 | |||||||||||||||||||
Plant requirement to meet opacity limit | 20.00% | |||||||||||||||||||
Rule imposes opacity limitation on certain fugitive dust emissions from coal and material handling operations | 20.00% | |||||||||||||||||||
Estimate of possible loss | $ 90,100,000 | $ 90,100,000 | $ 90,100,000 | |||||||||||||||||
Clean Air Act Related to Post Combustion Controls [Member] | Public Service Company of New Mexico [Member] | Four Corners Units 4 and 5 (Coal) [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Ownership percentage | 13.00% | |||||||||||||||||||
Clean Air Act Related to Post Combustion Controls [Member] | Public Service Company of New Mexico [Member] | Four Corners Units 1, 2 and 3 (Coal) [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Ownership percentage | 0.00% | |||||||||||||||||||
Clean Power Plan [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Period of potential extension to meet environmental targets | 2 years | |||||||||||||||||||
Number of states that filed a petition against the Clean Power Plan | state | 29 | |||||||||||||||||||
Proposed percentage reduction in CO2 emissions, stayed by the USSC | 32.00% | |||||||||||||||||||
Period of time currently remaining to submit initial plans to meet environmental targets | 6 months | |||||||||||||||||||
Period of time currently remaining to submit initial plans to meet environmental targets, including potential extension | 2 years 6 months | |||||||||||||||||||
National Ambient Air Quality Standards, 2015 EPA Legal Settlement [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Period of time to act on settlement | 16 months | |||||||||||||||||||
Emissions tons of SO2 per year (more than) | T | 16,000 | |||||||||||||||||||
National Ambient Air Quality Standards, 2015 EPA Legal Settlement [Member] | Public Service Company of New Mexico [Member] | Minimum [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Emissions tons of SO2 per year (more than) | T | 2,600 | |||||||||||||||||||
One-hour SO2 emissions rate (in pounds per MMBTU) | lb / MMBTU | 0.45 | |||||||||||||||||||
National Ambient Air Quality Standards, 2015 EPA Legal Settlement [Member] [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Period of time from state designation, to provide implementation plans | 36 months | |||||||||||||||||||
WEG v OSM Lawsuit [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of mines impacted | mine | 7 | |||||||||||||||||||
Number of states impacted | state | 4 | |||||||||||||||||||
Number of claims for relief, filed (in lawsuits) | lawsuit | 15 | |||||||||||||||||||
WEG v OSM Lawsuit [Member] | Public Service Company of New Mexico [Member] | San Juan Generating Station [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of claims for relief, filed (in lawsuits) | lawsuit | 2 | |||||||||||||||||||
Santa Fe generating station [Member] | Public Service Company of New Mexico [Member] | ||||||||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Number of wells with elevated levels of nitrates | well | 3 | 3 | 3 |
Commitments and Contingencies55
Commitments and Contingencies - Coal Supply (Details) | Feb. 01, 2016USD ($) | Jan. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 01, 2016USD ($) | Oct. 21, 2016USD ($) | Aug. 31, 2016USD ($) | Aug. 30, 2016USD ($) | Aug. 01, 2016USD ($)payment | Jul. 19, 2016USD ($) | Apr. 30, 2016USD ($) |
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Other current assets | $ 89,746,000 | $ 89,746,000 | $ 82,104,000 | |||||||||||
Regulatory disallowances and restructuring costs | 16,451,000 | $ 0 | 17,225,000 | $ 1,744,000 | ||||||||||
Mine reclamation trust requirement funded | 1,900,000 | |||||||||||||
San Juan Generating Station [Member] | Coal Supply [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Replacement Coal Mine Reclamation Bonds posted by alternate surety companies | $ 118,700,000 | |||||||||||||
Public Service Company of New Mexico [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Other current assets | 81,419,000 | 81,419,000 | 74,990,000 | |||||||||||
Regulatory disallowances and restructuring costs | 16,451,000 | $ 0 | 17,225,000 | $ 1,744,000 | ||||||||||
Public Service Company of New Mexico [Member] | Increase in coal mine decommissioning liability [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Expense reflected in regulatory disallowances and restructuring costs | 4,800,000 | |||||||||||||
Public Service Company of New Mexico [Member] | Mine Reclamation Trust [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Required contribution to Reclamation Trust, current fiscal year | 3,500,000 | 3,500,000 | ||||||||||||
Anticipated funding to Reclamation Trust, next fiscal year | 4,700,000 | 4,700,000 | ||||||||||||
Anticipated funding to Reclamation Trust, third fiscal year | 5,100,000 | 5,100,000 | ||||||||||||
Public Service Company of New Mexico [Member] | Mine Reclamation Trust [Member] | Four Corners [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Anticipated funding to Reclamation Trust, next fiscal year | 2,000,000 | 2,000,000 | ||||||||||||
Anticipated funding to Reclamation Trust, third fiscal year | 2,000,000 | 2,000,000 | ||||||||||||
Number of annual installment payments | payment | 13 | |||||||||||||
Public Service Company of New Mexico [Member] | Surface [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Regulatory assets | 100,000,000 | 100,000,000 | ||||||||||||
Public Service Company of New Mexico [Member] | Loss on long-term purchase commitment [Member] | Surface [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Loss contingency accrual | 41,400,000 | 41,400,000 | 38,800,000 | |||||||||||
Final reclamation, capped amount to be collected | 100,000,000 | |||||||||||||
Public Service Company of New Mexico [Member] | Loss on long-term purchase commitment [Member] | Underground [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Loss contingency accrual | 13,900,000 | 13,900,000 | 11,400,000 | |||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station [Member] | Loss on long-term purchase commitment [Member] | Surface [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Regulatory disallowances and restructuring costs | 16,500,000 | |||||||||||||
Estimate of possible loss | 103,000,000 | 103,000,000 | ||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station [Member] | Loss on long-term purchase commitment [Member] | Underground [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Estimate of possible loss | 129,400,000 | 129,400,000 | ||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station [Member] | Coal Supply [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Other current assets | $ 54,100,000 | $ 54,100,000 | 49,000,000 | |||||||||||
Estimated increase in coal cost | 40.00% | 40.00% | ||||||||||||
NM Capital [Member] | BTMU Term Loan Agreement [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Term loans | $ 125,000,000 | $ 107,800,000 | $ 107,800,000 | |||||||||||
NM Capital [Member] | BTMU Term Loan Agreement [Member] | Maximum [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Debt-to-capital ratio covenant | 65.00% | |||||||||||||
NM Capital [Member] | San Juan Generating Station [Member] | Coal Supply [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Payments to fund long-term loans to unaffiliated third party | $ 125,000,000 | |||||||||||||
Loan agreement among several entities | $ 125,000,000 | |||||||||||||
Initial interest rate | 7.25% | |||||||||||||
Requirement to post reclamation bonds | 161,600,000 | $ 118,700,000 | ||||||||||||
Cash used to support bank letter or credit arrangement | $ 40,000,000 | $ 30,300,000 | ||||||||||||
NM Capital [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Payments to fund long-term loans to unaffiliated third party | $ 125,000,000 | |||||||||||||
Loan receivable | $ 125,000,000 | 110,000,000 | 110,000,000 | |||||||||||
Scheduled principal payment proceeds | $ 15,000,000 | |||||||||||||
Prepayment penalty | $ 0 | $ 0 | ||||||||||||
Cash used to support bank letter or credit arrangement | $ 30,300,000 | $ 40,000,000 | ||||||||||||
NM Capital [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | Subsequent event [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Scheduled principal payment proceeds | $ 15,000,000 | |||||||||||||
Scheduled interest payment proceeds | $ 2,300,000 | |||||||||||||
Unaffiliated third party [Member] | San Juan Coal Company, Westmoreland [Member] | Coal Supply [Member] | Subsequent event [Member] | ||||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||||
Amount held in a restricted bank account | $ 17,300,000 |
Commitments and Contingencies56
Commitments and Contingencies - Royalty Rates, Tax Assessment, Insurance and Other Matters (Details) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 01, 2015Allotment_Parcel | Jul. 13, 2015a | Jan. 22, 2015Allotment_Parcel | Apr. 02, 2014landownerAllotment_Parcel | Jan. 06, 2014Allotment_Parcel | Aug. 31, 2013 | May 23, 2013USD ($) | Sep. 30, 2012landowner |
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member] | Nuclear Plant [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Ownership percentage in nuclear reactor | 10.20% | |||||||||
Maximum potential assessment per incident | $ 38,900,000 | |||||||||
Annual payment limitation related to incident | 5,800,000 | |||||||||
Aggregate amount of all risk insurance | 2,750,000,000 | |||||||||
Maximum amount under Nuclear Electric Insurance Limited | 5,400,000 | |||||||||
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member] | Nuclear Plant [Member] | Commercial Providers [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Liability insurance coverage | 375,000,000 | |||||||||
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member] | Nuclear Plant [Member] | Industry Wide Retrospective Assessment Program [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Liability insurance coverage | 13,100,000,000 | |||||||||
Palo Verde Nuclear Generating Station [Member] | Public Service Company of New Mexico [Member] | Nuclear Plant [Member] | Maximum [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Liability insurance coverage | 13,500,000,000 | |||||||||
Liability insurance coverage sublimit | $ 2,250,000,000 | |||||||||
Continuous Highwall Mining [Member] | San Juan Generating Station [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Proposed retroactive surface mining royalty rate | 12.50% | |||||||||
Surface mining royalty rate applied | 8.00% | |||||||||
Estimated underpaid surface mining royalties under proposed rate change | $ 5,000,000 | |||||||||
PNM's share estimated underpaid surface mining royalties under proposed rate change | 46.30% | |||||||||
NMTRD Coal Severance Tax [Member] | Four Corners [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Assessed coal severance surtax, penalty and interest | $ 30,000,000 | |||||||||
Share of settlement in addition to amounts previously paid | $ 100,000 | |||||||||
Navajo Nation Allottee Matters [Member] | Public Service Company of New Mexico [Member] | ||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||
Number of landowners claiming to be Navajo allottees (in landowners) | landowner | 43 | 43 | ||||||||
Number of allotment parcels' appraisal requested for review (in allotment parcels) | Allotment_Parcel | 58 | |||||||||
Number of allotments where landowners are revoking rights of way renewal consents (in allotment parcels) | Allotment_Parcel | 10 | 6 | ||||||||
Area of land (in acres) | a | 15.49 | |||||||||
Number of allotment parcels at issue that are not to be condemned | Allotment_Parcel | 2 | |||||||||
Number of allotment parcels at issue | Allotment_Parcel | 5 |
Regulatory and Rate Matters - P
Regulatory and Rate Matters - PNM (Details) | Sep. 30, 2016USD ($)MW | Sep. 29, 2016USD ($) | Sep. 28, 2016USD ($)MW | Aug. 04, 2016USD ($)MW | Apr. 15, 2016USD ($)GWh | Feb. 03, 2016 | Jan. 21, 2016MW | Jan. 15, 2016leaseMW | Aug. 27, 2015USD ($) | Mar. 20, 2015USD ($)party | Jan. 15, 2015 | Sep. 30, 2016USD ($)MW | Sep. 30, 2015USD ($)MW | Sep. 30, 2016USD ($)MW | Sep. 30, 2015USD ($)MW | Dec. 31, 2015 | Sep. 30, 2016USD ($)MW | Jul. 08, 2016MW | Apr. 26, 2016turbineMW | Feb. 26, 2016USD ($) | Jan. 31, 2016MW | Dec. 31, 2013 | Mar. 01, 2013 | Dec. 31, 2012USD ($) |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Excess return on jurisdictional equity that would require refund | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Duration of resource portfolio | 20 years | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 1 and 4 [Member] | Clean Air Act, Balanced Draft Technology [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Net book value | $ 49,900,000 | $ 49,900,000 | $ 49,900,000 | $ 49,900,000 | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 1 and 4 [Member] | Installation Costs Including Construction Management, Gross Receipts Taxes, AFUDC, and Other PNM Costs [Member] | Clean Air Act, Balanced Draft Technology [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Installation costs | 52,300,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 1 and 4 [Member] | Installation Costs Including Construction Management, Gross Receipts Taxes, AFUDC, and Other PNM Costs [Member] | Clean Air Act, SNCR [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Installation costs | 76,800,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 2 and 3 [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Net book value | 270,200,000 | 270,200,000 | 270,200,000 | 270,200,000 | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | San Juan Generating Station Units 2 and 3 [Member] | Clean Air Act, SNCR [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Newly identified replacement gas-fired generation (in megawatts) | MW | 187 | 187 | 80 | |||||||||||||||||||||
Number of aeroderivative units (in turbines) | turbine | 2 | |||||||||||||||||||||||
Replacement gas-fired aeroderivative generation (in megawatts) | MW | 40 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 2 Leases [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Number of megawatts purchased (in megawatts) | MW | 64.1 | 64.1 | ||||||||||||||||||||||
Number of leases under which assets were purchased | lease | 3 | |||||||||||||||||||||||
Estimated annual property tax expense | $ 800,000 | $ 800,000 | $ 800,000 | $ 800,000 | ||||||||||||||||||||
Number of leases under which lease term was extended | lease | 1 | |||||||||||||||||||||||
Lease term extension period | 8 years | |||||||||||||||||||||||
Number of megawatts nuclear generation (in megawatts) | MW | 114.6 | 114.6 | 114.6 | 114.6 | 114.6 | 114.6 | ||||||||||||||||||
Net book value | $ 76,900,000 | $ 76,900,000 | $ 76,900,000 | $ 76,900,000 | ||||||||||||||||||||
Net book value of capitalized improvements | 41,700,000 | 41,700,000 | 41,700,000 | 41,700,000 | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases, extended [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Estimated annual property tax expense | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||||||||
Estimated annual rent expense | $ 18,100,000 | 18,100,000 | 18,100,000 | $ 18,100,000 | ||||||||||||||||||||
Number of leases under which lease term was extended | lease | 4 | |||||||||||||||||||||||
Lease term extension period | 8 years | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Requested rate increase (decrease) | $ 123,500,000 | |||||||||||||||||||||||
Requested rate increase (decrease) of non-fuel revenue | $ 121,700,000 | 121,500,000 | ||||||||||||||||||||||
Requested return on equity | 10.50% | |||||||||||||||||||||||
Requested rate increase (decrease) for fuel related costs | (42,900,000) | |||||||||||||||||||||||
Requested rate increase (decrease) for non-fuel related revenues | $ (200,000) | |||||||||||||||||||||||
Hearing examiner's recommended rate increase (decrease) of non-fuel revenue | $ 41,300,000 | |||||||||||||||||||||||
Hearing examiner's recommended return on equity | 9.575% | |||||||||||||||||||||||
Approved rate increase (decrease) | $ 61,200,000 | |||||||||||||||||||||||
Estimated period of time for supreme court appeal decision | 15 months | |||||||||||||||||||||||
Approved recovery of net operating loss carryforward | 2,100,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | San Juan Generating Station Units 1 and 4 [Member] | Clean Air Act, Balanced Draft Technology [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Requested base rate increase (decrease) | $ 40,000,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | San Juan Generating Station [Member] | Refined Coal [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Hearing examiner's recommended percentage of revenue to be credited to customers | 100.00% | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | Palo Verde Nuclear Generating Station, Unit 2 Leases [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Hearing examiner's proposed disallowance of recovery | $ 163,300,000 | |||||||||||||||||||||||
Initial rate base value | 83,700,000 | |||||||||||||||||||||||
Disallowance of the recovery underpreciated costs of capitalized leasehold improvements | 43,800,000 | |||||||||||||||||||||||
Pre-tax regulatory disallowance | $ 6,800,000 | |||||||||||||||||||||||
Period of time for which capital improvements were disallowed | 15 months | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | Palo Verde Nuclear Generating Station, Unit 1 Leases, extended [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Hearing examiner's recommended rent expense recovery amount | 0 | |||||||||||||||||||||||
Hearing examiner's recommended recovery amount on conversions | 0 | |||||||||||||||||||||||
Recovery of assumed operating and maintenance expense savings annually | $ 300,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | Palo Verde Nuclear Generating Station, Units 1 and 2 Leases [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Hearing examiner's recommended property tax recovery amount | 0 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | Alvarado square [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Hearing examiner's recommended amount to not be recovered from retail customers | 4,500,000 | |||||||||||||||||||||||
Pre-tax regulatory disallowance of costs recorded as regulatory assets and deferred charges | $ 4,500,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Minimum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Profit incentive sliding scale multiplier | 7.10% | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Maximum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Reasonable cost threshold | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | |||||||||||||||||||
Profit incentive sliding scale multiplier | 9.00% | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Wind Energy [Member] | Minimum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of diversification | 30.00% | 30.00% | 30.00% | 30.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Solar Energy [Member] | Minimum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of diversification | 20.00% | 20.00% | 20.00% | 20.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Distributed Generation [Member] | Minimum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of diversification | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Renewable Technologies [Member] | Minimum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of diversification | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Required Percentage by 2011 [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of renewable energy in portfolio to electric sales | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Required Percentage by 2015 [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of renewable energy in portfolio to electric sales | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Portfolio Standard [Member] | Required Percentage by 2020 [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Required percentage of renewable energy in portfolio to electric sales | 20.00% | 20.00% | 20.00% | 20.00% | ||||||||||||||||||||
Public Service Company of New Mexico [Member] | Renewable Energy Rider [Member] | Maximum [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Proposal to collect funds under renewable energy procurement plan | $ 42,400,000 | $ 42,400,000 | $ 42,400,000 | $ 42,400,000 | ||||||||||||||||||||
Annual revenue to be collected under rider rate | $ 50,000,000 | 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||||||
Approved return on equity | 10.00% | 10.50% | ||||||||||||||||||||||
Public Service Company of New Mexico [Member] | 2017 Energy Efficiency and Load Management Program [Member] | Disincentives / Incentives Adder [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Program portfolio's total budget | $ 26,000,000 | $ 28,000,000 | ||||||||||||||||||||||
Incentive based on target savings | $ 2,400,000 | |||||||||||||||||||||||
Targeted savings (in gigawatt hours) | GWh | 75 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Integrated Resource Plan, 2011 [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Frequency of IRP filings | 3 years | |||||||||||||||||||||||
Planning period covered of IRP | 20 years | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Advanced Metering Infrastructure Costs [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Estimated costs to be recovered | $ 87,200,000 | |||||||||||||||||||||||
Estimated future investment | $ 33,000,000 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Formula Transmission Rate Case [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Approved rate increase (decrease) | $ 1,300,000 | |||||||||||||||||||||||
Amount of regulatory costs not yet approved | $ 3,200,000 | |||||||||||||||||||||||
Return on equity | 10.00% | 10.81% | ||||||||||||||||||||||
Percentage ownership of EIP transmission line | 60.00% | |||||||||||||||||||||||
Number of other parties entered into settlement agreement | party | 5 | |||||||||||||||||||||||
Public Service Company of New Mexico [Member] | Firm Requirements Wholesale Power Rate Case, Navopache [Member] [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Number of megawatts served under a short-term coordination tariff | MW | 10 | |||||||||||||||||||||||
Revenue for power sold under PSA | $ 4,800,000 | $ 6,300,000 | $ 14,800,000 | $ 19,700,000 | ||||||||||||||||||||
PNMR Development [Member] | ||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 30 | |||||||||||||||||||||||
Construction of solar generation capacity (in megawatts) | MW | 10 | 10 | 10 | 10 |
Regulatory and Rate Matters - T
Regulatory and Rate Matters - TNMP Narrative (Details) - Texas-New Mexico Power Company [Member] | Jul. 27, 2016USD ($) | May 27, 2016USD ($) | Jul. 30, 2011USD ($) | Sep. 30, 2016USD ($)advanced_meter | Oct. 21, 2016customer | Oct. 02, 2015USD ($) | Aug. 15, 2013USD ($)customer |
Advanced Meter System Deployment and Surcharge Request [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Approved deployment costs | $ 113,400,000 | ||||||
Collection of deployment costs through surcharge period | 12 years | ||||||
Number of advanced meters installed | advanced_meter | 242,246 | ||||||
Completion period of advanced meter deployment | 5 years | ||||||
Recovery in cost through initial fees | $ 200,000 | ||||||
Ongoing annual expenses | 500,000 | ||||||
Approved non-standard metering ongoing expenses monthly charge | $ 36.78 | ||||||
Presumed number of customers that will elect non-standard meter service (in customers) | customer | 1,081 | ||||||
Cost and savings reconciliation filed with regulators, capital cost savings | $ 71,000,000 | ||||||
Cost and savings reconciliation filed with regulators, operations and maintenance savings | $ 18,000,000 | ||||||
Program costs incurred to date | $ 1,500,000 | ||||||
Advanced Meter System Deployment and Surcharge Request [Member] | Subsequent event [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Current number of customers that have elected non-standard meter service (in customers) | customer | 100 | ||||||
Advanced Meter System Deployment and Surcharge Request [Member] | Minimum [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Approved non-standard metering service cost, initial fee range | $ 63.97 | ||||||
Advanced Meter System Deployment and Surcharge Request [Member] | Maximum [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Approved non-standard metering service cost, initial fee range | $ 168.61 | ||||||
Energy Efficiency [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Requested adjustment to EECRF | $ 6,100,000 | ||||||
Requested adjustment to EECRF, performance bonus | $ 800,000 | ||||||
Approved program cost recovery | $ 6,000,000 | ||||||
Approved performance bonus | $ 800,000 |
Regulatory and Rate Matters -59
Regulatory and Rate Matters - Transmission Cost of Service Rates (Details) - Texas-New Mexico Power Company [Member] - Transmission Cost of Service Rates [Member] - USD ($) $ in Millions | 6 Months Ended | ||||
Mar. 15, 2017 | Sep. 09, 2016 | Mar. 22, 2016 | Sep. 09, 2015 | Mar. 15, 2015 | |
Public Utilities, General Disclosures [Line Items] | |||||
Approved Increase in Rate Base | $ 25.8 | $ 7 | $ 27.1 | $ 25.2 | |
Annual Increase in Revenue | $ 4.3 | $ 1.4 | $ 4.4 | $ 4.2 | |
Subsequent event [Member] | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Approved Increase in Rate Base | $ 9.5 | ||||
Annual Increase in Revenue | $ 1.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||||||
New Mexico Corporate tax rate before change in 2013 | 7.60% | ||||||
New Mexico Corporate tax rate, effective by 2018 | 5.90% | ||||||
Increase (decrease) in regulatory liability | $ (7,100,000) | $ (2,000,000) | |||||
Impairment of state net operating loss carryforward | 1,000,000 | $ 0 | |||||
Interest income and interest expense applicable to federal income tax matters [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net refunds from the IRS | $ 6,500,000 | ||||||
Increase (decrease) of interest receivable | (2,100,000) | ||||||
Interest income | 5,100,000 | ||||||
Interest expense | 700,000 | ||||||
Consulting expense fees | 900,000 | ||||||
Net settlement with taxing authority, pre-tax | 3,500,000 | ||||||
Corporate and Other [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Increase (decrease) in tax expense due to tax rate change | (100,000) | (200,000) | |||||
Impairment of state net operating loss carryforward | 300,000 | ||||||
Corporate and Other [Member] | Interest income and interest expense applicable to federal income tax matters [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net settlement with taxing authority, pre-tax, segment allocation | 600,000 | ||||||
Public Service Company of New Mexico [Member] | Interest income and interest expense applicable to federal income tax matters [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net settlement with taxing authority, pre-tax, segment allocation | 2,600,000 | ||||||
Texas-New Mexico Power Company [Member] | Interest income and interest expense applicable to federal income tax matters [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net settlement with taxing authority, pre-tax, segment allocation | 300,000 | ||||||
Public Service Company of New Mexico [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Increase (decrease) in deferred tax assets as a result of tax rate changes | (700,000) | 700,000 | |||||
Increase (decrease) in tax expense due to tax rate change | $ 800,000 | (500,000) | |||||
Impairment of state net operating loss carryforward | $ 700,000 | ||||||
Public Service Company of New Mexico [Member] | 2015 Electric Rate Case [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Approved recovery of net operating loss carryforward | $ 2,100,000 | ||||||
Texas-New Mexico Power Company [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Impairment of state net operating loss carryforward | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Service billings [Member] | PNMR to PNM [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | $ 22,189 | $ 21,894 | $ 67,192 | $ 65,961 |
Service billings [Member] | PNMR to TNMP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 6,593 | 6,707 | 20,881 | 20,366 |
Service billings [Member] | PNM to TNMP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 105 | 136 | 347 | 424 |
Service billings [Member] | TNMP to PNMR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 10 | 0 | 30 | 0 |
Interest billings [Member] | PNMR to PNM [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 3 | 10 | 8 | 38 |
Interest billings [Member] | PNMR to TNMP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 13 | 34 | 112 | 167 |
Interest billings [Member] | PNM to PNMR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 38 | 24 | 110 | 79 |
Income tax sharing payments [Member] | PNMR to PNM [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 0 | 0 | 0 | 1,450 |
Income tax sharing payments [Member] | PNMR to TNMP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Apr. 01, 2015 |
Goodwill [Line Items] | |||||
Goodwill | $ 278,297 | $ 278,297 | $ 278,297 | ||
Public Service Company of New Mexico [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | 51,632 | $ 51,600 | 51,632 | $ 51,600 | |
Carrying value exceeded | 25.00% | 25.00% | |||
Texas-New Mexico Power Company [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 226,665 | $ 226,700 | $ 226,665 | ||
Carrying value exceeded | 32.00% |