Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 29, 2018 | |
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 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 79,653,624 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,098,525,974 | ||
Public Service Company of New Mexico | |||
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 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 39,117,799 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Texas-New Mexico Power Company | |||
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 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 6,358 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Electric Operating Revenues | |||
Contracts with customers | $ 1,359,740 | $ 1,321,023 | $ 1,277,594 |
Operating Revenues | 1,436,613 | 1,445,003 | 1,362,951 |
Operating Expenses: | |||
Administrative and general | 188,470 | 177,791 | 184,774 |
Regulatory disallowances and restructuring costs | 65,598 | 27,036 | 15,011 |
Depreciation and amortization | 241,188 | 231,942 | 209,110 |
Transmission and distribution costs | 76,434 | 71,576 | 66,227 |
Taxes other than income taxes | 79,673 | 76,690 | 76,321 |
Total operating expenses | 1,200,566 | 1,129,964 | 1,078,226 |
Operating income | 236,047 | 315,039 | 284,725 |
Other Income and Deductions: | |||
Interest income | 15,540 | 15,916 | 22,293 |
Gains (losses) on investment securities | (17,176) | 27,161 | 19,517 |
Other income | 17,586 | 19,515 | 17,796 |
Other (deductions) | (15,696) | (24,247) | (20,524) |
Net other income and deductions | 254 | 38,345 | 39,082 |
Interest Charges | 127,244 | 127,625 | 128,633 |
Earnings before Income Taxes | 109,057 | 225,759 | 195,174 |
Income Taxes | 7,775 | 130,340 | 63,278 |
Net Earnings | 101,282 | 95,419 | 131,896 |
(Earnings) Attributable to Valencia Non-controlling Interest | (15,112) | (15,017) | (14,519) |
Preferred Stock Dividend Requirements of Subsidiary | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | $ 85,642 | $ 79,874 | $ 116,849 |
Net Earnings Attributable to PNMR per Common Share: | |||
Basic (in dollars per share) | $ 1.07 | $ 1 | $ 1.47 |
Diluted (in dollars per share) | $ 1.07 | $ 1 | $ 1.46 |
Public Service Company of New Mexico | |||
Electric Operating Revenues | |||
Contracts with customers | $ 1,019,291 | $ 992,462 | $ 963,158 |
Operating Revenues | 1,091,965 | 1,104,230 | 1,035,913 |
Operating Expenses: | |||
Administrative and general | 173,178 | 163,892 | 162,469 |
Regulatory disallowances and restructuring costs | 66,339 | 27,036 | 15,011 |
Depreciation and amortization | 151,866 | 147,017 | 133,447 |
Transmission and distribution costs | 46,855 | 42,370 | 39,657 |
Taxes other than income taxes | 45,181 | 43,709 | 44,598 |
Total operating expenses | 946,932 | 883,151 | 841,083 |
Operating income | 145,033 | 221,079 | 194,830 |
Other Income and Deductions: | |||
Interest income | 13,089 | 8,454 | 10,173 |
Gains (losses) on investment securities | (17,176) | 27,161 | 19,517 |
Other income | 10,992 | 13,527 | 12,088 |
Other (deductions) | (11,128) | (18,556) | (16,279) |
Net other income and deductions | (4,223) | 30,586 | 25,499 |
Interest Charges | 76,458 | 82,697 | 87,469 |
Earnings before Income Taxes | 64,352 | 168,968 | 132,860 |
Income Taxes | (5,971) | 81,555 | 40,922 |
Net Earnings | 70,323 | 87,413 | 91,938 |
(Earnings) Attributable to Valencia Non-controlling Interest | (15,112) | (15,017) | (14,519) |
Preferred Stock Dividend Requirements of Subsidiary | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | 54,683 | 71,868 | 76,891 |
Texas-New Mexico Power Company | |||
Electric Operating Revenues | |||
Contracts with customers | 340,449 | 328,561 | 314,436 |
Operating Revenues | 344,648 | 340,773 | 327,038 |
Operating Expenses: | |||
Administrative and general | 38,642 | 39,828 | 39,423 |
Regulatory disallowances and restructuring costs | (741) | 0 | 0 |
Depreciation and amortization | 66,189 | 63,146 | 61,126 |
Transmission and distribution costs | 29,579 | 29,206 | 26,570 |
Taxes other than income taxes | 28,792 | 29,187 | 27,396 |
Total operating expenses | 248,151 | 247,169 | 235,397 |
Operating income | 96,497 | 93,604 | 91,641 |
Other Income and Deductions: | |||
Other income | 5,487 | 4,994 | 4,629 |
Other (deductions) | (1,422) | (1,443) | (1,427) |
Net other income and deductions | 4,065 | 3,551 | 3,202 |
Interest Charges | 32,091 | 30,084 | 29,335 |
Earnings before Income Taxes | 68,471 | 67,071 | 65,508 |
Income Taxes | 16,880 | 31,512 | 23,836 |
Alternative Energy | |||
Electric Operating Revenues | |||
Operating Revenues | 1,756 | 15,779 | 16,035 |
Alternative Energy | Public Service Company of New Mexico | |||
Electric Operating Revenues | |||
Operating Revenues | (2,443) | 3,567 | 3,433 |
Alternative Energy | Texas-New Mexico Power Company | |||
Electric Operating Revenues | |||
Operating Revenues | 4,199 | 12,212 | 12,602 |
Other Electric | |||
Electric Operating Revenues | |||
Operating Revenues | 75,117 | 108,201 | 69,322 |
Other Electric | Public Service Company of New Mexico | |||
Electric Operating Revenues | |||
Operating Revenues | 75,117 | 108,201 | 69,322 |
Other Electric | Texas-New Mexico Power Company | |||
Electric Operating Revenues | |||
Operating Revenues | 0 | ||
Electricity | |||
Electric Operating Revenues | |||
Operating Revenues | 1,436,613 | 1,445,003 | 1,362,951 |
Operating Expenses: | |||
Energy production costs | 399,726 | 407,479 | 380,596 |
Electricity | Public Service Company of New Mexico | |||
Operating Expenses: | |||
Energy production costs | 314,036 | 321,677 | 299,714 |
Electricity | Texas-New Mexico Power Company | |||
Operating Expenses: | |||
Energy production costs | 85,690 | 85,802 | 80,882 |
Electricity, Generation | |||
Operating Expenses: | |||
Energy production costs | 149,477 | 137,450 | 146,187 |
Electricity, Generation | Public Service Company of New Mexico | |||
Operating Expenses: | |||
Energy production costs | $ 149,477 | $ 137,450 | $ 146,187 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Earnings | $ 101,282 | $ 95,419 | $ 131,896 |
Unrealized Gains on Available-for-Sale Securities: | |||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit | 2,827 | 17,233 | 474 |
Reclassification adjustment for (gains) included in net earnings (loss), net of income tax expense | (2,849) | (10,751) | (13,500) |
Pension Liability Adjustment: | |||
Experience gain (loss), net of income tax (expense) benefit | (7,745) | 2,699 | (11,282) |
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax (expense) benefit | 5,646 | 3,948 | 3,356 |
Fair Value Adjustment for Cash Flow Hedges: | |||
Change in fair market value, net of income tax (expense) benefit | 425 | 612 | (533) |
Reclassification adjustment for (gains) losses included in net earnings (loss), net of income tax expense (benefit) | 160 | 356 | 466 |
Total Other Comprehensive Income (Loss) | (1,536) | 14,097 | (21,019) |
Comprehensive Income | 99,746 | 109,516 | 110,877 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (15,112) | (15,017) | (14,519) |
Preferred Stock Dividend Requirements of Subsidiary | (528) | (528) | (528) |
Comprehensive Income Attributable to PNMR | 84,106 | 93,971 | 95,830 |
Public Service Company of New Mexico | |||
Net Earnings | 70,323 | 87,413 | 91,938 |
Unrealized Gains on Available-for-Sale Securities: | |||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit | 2,827 | 17,233 | 474 |
Reclassification adjustment for (gains) included in net earnings (loss), net of income tax expense | (2,849) | (10,751) | (13,500) |
Pension Liability Adjustment: | |||
Experience gain (loss), net of income tax (expense) benefit | (7,745) | 2,699 | (11,282) |
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax (expense) benefit | 5,646 | 3,948 | 3,356 |
Fair Value Adjustment for Cash Flow Hedges: | |||
Total Other Comprehensive Income (Loss) | (2,121) | 13,129 | (20,952) |
Comprehensive Income | 68,202 | 100,542 | 70,986 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (15,112) | (15,017) | (14,519) |
Preferred Stock Dividend Requirements of Subsidiary | (528) | (528) | (528) |
Comprehensive Income Attributable to PNMR | $ 53,090 | $ 85,525 | $ 56,467 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized holding gains (losses) arising during the period, income tax (expense) | $ (963) | $ (10,927) | $ (304) |
Reclassification adjustment for (gains) included in net earnings (loss), income tax expense | 970 | 6,816 | 8,639 |
Experience gain (loss), income tax (expense) benefit | 2,637 | (919) | 7,219 |
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, income tax (expense) benefit | (1,922) | (2,504) | (2,148) |
Change in fair market value, income tax (expense) | (145) | (388) | 341 |
Reclassification adjustment for (gains) losses included in net earnings (loss), income tax expense (benefit) | (56) | (225) | (298) |
Public Service Company of New Mexico | |||
Unrealized holding gains (losses) arising during the period, income tax (expense) | (963) | (10,927) | (304) |
Reclassification adjustment for (gains) included in net earnings (loss), income tax expense | 970 | 6,816 | 8,639 |
Experience gain (loss), income tax (expense) benefit | 2,637 | (919) | 7,219 |
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, income tax (expense) benefit | $ (1,922) | $ (2,504) | $ (2,148) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | |||
Net Earnings | $ 101,282,000 | $ 95,419,000 | $ 131,896,000 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 275,641,000 | 268,194,000 | 242,033,000 |
Deferred income tax expense | 8,019,000 | 130,528,000 | 63,805,000 |
Net unrealized losses on commodity derivatives | 0 | 2,875,000 | 1,577,000 |
(Gains) losses on investment securities | 17,176,000 | (27,161,000) | (19,517,000) |
Stock based compensation expense | 7,120,000 | 6,194,000 | 5,634,000 |
Regulatory disallowances and restructuring costs | 65,598,000 | 27,036,000 | 15,011,000 |
Allowance for equity funds used during construction | (10,404,000) | (9,516,000) | (4,949,000) |
Other, net | 3,529,000 | 2,329,000 | 3,060,000 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (8,702,000) | (1,846,000) | 2,543,000 |
Materials, supplies, and fuel stock | (5,331,000) | 1,473,000 | (4,169,000) |
Other current assets | 2,491,000 | 31,298,000 | (9,640,000) |
Other assets | (840,000) | (5,486,000) | (42,864,000) |
Accounts payable | (20,714,000) | 14,468,000 | 3,159,000 |
Accrued interest and taxes | 1,713,000 | (327,000) | 3,345,000 |
Other current liabilities | 2,614,000 | (6,513,000) | (12,509,000) |
Other liabilities | (10,966,000) | (5,503,000) | 29,868,000 |
Net cash flows from operating activities | 428,226,000 | 523,462,000 | 408,283,000 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (501,213,000) | (500,461,000) | (600,076,000) |
Proceeds from sales of investment securities | 984,533,000 | 637,492,000 | 522,601,000 |
Purchases of investment securities | (1,007,022,000) | (650,284,000) | (538,383,000) |
Return of principal on PVNGS lessor notes | 0 | 0 | 8,547,000 |
Investments in NMRD | (9,000,000) | (4,077,000) | 0 |
Disbursements from NMRD | 0 | 12,415,000 | 0 |
Investment in Westmoreland Loan | 0 | 0 | (122,250,000) |
Principal repayments on Westmoreland Loan | 56,640,000 | 38,360,000 | 30,000,000 |
Other, net | 338,000 | 392,000 | 186,000 |
Net cash flows from investing activities | (475,724,000) | (466,163,000) | (699,375,000) |
Cash Flows From Financing Activities: | |||
Short-term loan | 50,000,000 | 0 | 100,000,000 |
Repayment of short-term loan | 0 | 0 | (150,000,000) |
Revolving credit facilities borrowings (repayments), net | (119,500,000) | 18,300,000 | 86,500,000 |
Long-term borrowings | 984,652,000 | 317,000,000 | 603,500,000 |
Repayment of long-term debt | (750,162,000) | (274,070,000) | (303,793,000) |
Proceeds from stock option exercise | 963,000 | 1,739,000 | 7,028,000 |
Awards of common stock | (12,635,000) | (13,929,000) | (15,451,000) |
Dividends paid | (84,961,000) | (77,792,000) | (70,623,000) |
Valencia’s transactions with its owner | (17,095,000) | (17,742,000) | (17,006,000) |
Amounts received under transmission interconnection arrangements | 4,060,000 | 11,879,000 | 7,171,000 |
Refunds paid under transmission interconnection arrangements | (2,830,000) | (21,290,000) | (2,830,000) |
Other, net | (6,846,000) | (2,942,000) | (2,104,000) |
Net cash flows from financing activities | 45,646,000 | (58,847,000) | 242,392,000 |
Change in Cash and Cash Equivalents | (1,852,000) | (1,548,000) | (48,700,000) |
Cash and Cash Equivalents at Beginning of Period | 3,974,000 | 5,522,000 | 54,222,000 |
Cash and Cash Equivalents at End of Period | 2,122,000 | 3,974,000 | 5,522,000 |
Restricted Cash Included in Other Current Assets on Consolidated Balance Sheets: | |||
At beginning of period | 0 | 1,000,000 | 8,171,000 |
At end of period | 0 | 0 | 1,000,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 119,308,000 | 120,955,000 | 115,043,000 |
Income taxes paid (refunded), net | 842,000 | 625,000 | (307,000) |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | (11,502,000) | (25,261,000) | 18,345,000 |
Contribution of utility plant to NMRD | 578,000 | 24,829,000 | |
Public Service Company of New Mexico | |||
Cash Flows From Operating Activities: | |||
Net Earnings | 70,323,000 | 87,413,000 | 91,938,000 |
Net Earnings | 55,211,000 | 72,396,000 | 77,419,000 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 182,355,000 | 180,500,000 | 166,047,000 |
Deferred income tax expense | 3,334,000 | 82,549,000 | 53,119,000 |
Net unrealized losses on commodity derivatives | 0 | 2,875,000 | 1,577,000 |
(Gains) losses on investment securities | 17,176,000 | (27,161,000) | (19,517,000) |
Regulatory disallowances and restructuring costs | 66,339,000 | 27,036,000 | 15,011,000 |
Allowance for equity funds used during construction | (8,173,000) | (8,664,000) | (4,163,000) |
Other, net | 3,395,000 | 2,615,000 | 3,046,000 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (7,959,000) | (419,000) | 4,769,000 |
Materials, supplies, and fuel stock | (6,238,000) | 3,542,000 | (3,924,000) |
Other current assets | (468,000) | 31,775,000 | (6,044,000) |
Other assets | 6,894,000 | 15,121,000 | (23,880,000) |
Accounts payable | (14,290,000) | 9,736,000 | 5,614,000 |
Accrued interest and taxes | (7,617,000) | 21,523,000 | (9,601,000) |
Other current liabilities | (17,975,000) | (11,099,000) | (12,136,000) |
Other liabilities | (3,761,000) | (9,389,000) | 20,119,000 |
Net cash flows from operating activities | 283,335,000 | 407,953,000 | 281,975,000 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (255,627,000) | (309,142,000) | (445,464,000) |
Proceeds from sales of investment securities | 984,533,000 | 637,492,000 | 522,601,000 |
Purchases of investment securities | (1,007,022,000) | (650,284,000) | (538,383,000) |
Return of principal on PVNGS lessor notes | 0 | 0 | 8,547,000 |
Other, net | 544,000 | 33,000 | 171,000 |
Net cash flows from investing activities | (277,572,000) | (321,901,000) | (452,528,000) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 2,600,000 | (21,200,000) | 61,000,000 |
Short-term borrowings (repayments) - affiliate, net | 19,800,000 | 0 | 0 |
Long-term borrowings | 450,000,000 | 257,000,000 | 321,000,000 |
Repayment of long-term debt | (450,025,000) | (232,000,000) | (271,000,000) |
Equity contribution from parent | 0 | 0 | 28,142,000 |
Dividends paid | (77,904,000) | (61,223,000) | (4,670,000) |
Valencia’s transactions with its owner | (17,095,000) | (17,742,000) | (17,006,000) |
Amounts received under transmission interconnection arrangements | 72,260,000 | 11,879,000 | 7,171,000 |
Refunds paid under transmission interconnection arrangements | (2,830,000) | (21,290,000) | (2,830,000) |
Other, net | (3,592,000) | (1,692,000) | (1,239,000) |
Net cash flows from financing activities | (6,786,000) | (86,268,000) | 120,568,000 |
Change in Cash and Cash Equivalents | (1,023,000) | (216,000) | (49,985,000) |
Cash and Cash Equivalents at Beginning of Period | 1,108,000 | 1,324,000 | 51,309,000 |
Cash and Cash Equivalents at End of Period | 85,000 | 1,108,000 | 1,324,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 73,029,000 | 77,960,000 | 82,514,000 |
Income taxes paid (refunded), net | 134,000 | (23,391,000) | (967,000) |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | (12,310,000) | (11,792,000) | 22,433,000 |
Texas-New Mexico Power Company | |||
Cash Flows From Operating Activities: | |||
Net Earnings | 51,591,000 | 35,559,000 | 41,672,000 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 68,078,000 | 64,939,000 | 62,866,000 |
Deferred income tax expense | 1,780,000 | 27,275,000 | 12,662,000 |
Regulatory disallowances and restructuring costs | (741,000) | 0 | 0 |
Allowance for equity funds used during construction | (2,200,000) | (900,000) | (800,000) |
Allowance for equity funds used during construction and other, net | (2,048,000) | (1,120,000) | (772,000) |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (744,000) | (1,427,000) | (2,226,000) |
Materials, supplies, and fuel stock | 907,000 | (2,069,000) | (245,000) |
Other current assets | 1,929,000 | (1,253,000) | (621,000) |
Other assets | (7,174,000) | (20,967,000) | (19,126,000) |
Accounts payable | (4,199,000) | 2,419,000 | (2,040,000) |
Accrued interest and taxes | 12,263,000 | (15,962,000) | 12,690,000 |
Other current liabilities | 6,719,000 | (2,236,000) | 298,000 |
Other liabilities | (6,610,000) | 1,334,000 | 6,822,000 |
Net cash flows from operating activities | 121,751,000 | 86,492,000 | 111,980,000 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (223,448,000) | (145,495,000) | (122,518,000) |
Net cash flows from investing activities | (223,448,000) | (145,495,000) | (122,518,000) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 17,500,000 | 0 | (59,000,000) |
Short-term borrowings (repayments) - affiliate, net | 100,000 | (4,600,000) | (7,200,000) |
Long-term borrowings | 95,000,000 | 60,000,000 | 60,000,000 |
Equity contribution from parent | 30,000,000 | 50,000,000 | 50,000,000 |
Dividends paid | (41,903,000) | (44,389,000) | (31,817,000) |
Other, net | (700,000) | (979,000) | (775,000) |
Net cash flows from financing activities | 99,997,000 | 60,032,000 | 11,208,000 |
Change in Cash and Cash Equivalents | (1,700,000) | 1,029,000 | 670,000 |
Cash and Cash Equivalents at Beginning of Period | 1,700,000 | 671,000 | 1,000 |
Cash and Cash Equivalents at End of Period | 0 | 1,700,000 | 671,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 28,629,000 | 29,251,000 | 26,766,000 |
Income taxes paid (refunded), net | 4,266,000 | 21,436,000 | 660,000 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | $ 1,810,000 | $ (15,737,000) | $ (1,271,000) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||||
Cash and cash equivalents | $ 2,122,000 | $ 3,974,000 | $ 5,522,000 | $ 54,222,000 |
Accounts receivable, net of allowance for uncollectible accounts of $1,406 and $1,081 | 92,800,000 | 90,473,000 | ||
Unbilled revenues | 57,092,000 | 54,055,000 | ||
Other receivables | 11,369,000 | 17,582,000 | ||
Current portion of Westmoreland Loan | 0 | 3,576,000 | ||
Materials, supplies, and fuel stock | 71,834,000 | 66,502,000 | ||
Regulatory assets | 4,534,000 | 2,933,000 | ||
Commodity derivative instruments | 1,083,000 | 1,088,000 | ||
Income taxes receivable | 7,965,000 | 6,879,000 | ||
Other current assets | 53,725,000 | 47,358,000 | ||
Total current assets | 302,524,000 | 294,420,000 | ||
Other Property and Investments: | ||||
Long-term portion of Westmoreland Loan | 0 | 53,064,000 | ||
Investment securities | 328,242,000 | 323,524,000 | ||
Equity investment in NMRD | 26,564,000 | 16,510,000 | ||
Other investments | 297,000 | 503,000 | ||
Non-utility property | 3,404,000 | 3,404,000 | ||
Total other property and investments | 358,507,000 | 397,005,000 | ||
Utility Plant: | ||||
Plant in service and held for future use | 7,548,581,000 | 7,238,285,000 | ||
Less accumulated depreciation and amortization | 2,604,177,000 | 2,592,692,000 | ||
Net plant in service and plant held for future use | 4,944,404,000 | 4,645,593,000 | ||
Construction work in progress | 194,427,000 | 245,933,000 | ||
Nuclear fuel, net of accumulated amortization of $42,511 and $43,524 | 95,798,000 | 88,701,000 | ||
Net utility plant | 5,234,629,000 | 4,980,227,000 | ||
Deferred Charges and Other Assets: | ||||
Regulatory assets | 598,930,000 | 600,672,000 | ||
Goodwill | 278,297,000 | 278,297,000 | 278,297,000 | |
Commodity derivative instruments | 2,511,000 | 3,556,000 | ||
Other deferred charges | 90,153,000 | 91,926,000 | ||
Total deferred charges and other assets | 969,891,000 | 974,451,000 | ||
Total assets | 6,865,551,000 | 6,646,103,000 | 6,471,080,000 | |
Current Liabilities: | ||||
Short-term debt | 235,900,000 | 305,400,000 | ||
Current installments of long-term debt | 0 | 256,895,000 | ||
Accounts payable | 112,170,000 | 121,383,000 | ||
Customer deposits | 10,695,000 | 11,028,000 | ||
Accrued interest and taxes | 65,156,000 | 62,357,000 | ||
Regulatory liabilities | 9,446,000 | 2,309,000 | ||
Commodity derivative instruments | 1,177,000 | 1,182,000 | ||
Dividends declared | 23,231,000 | 21,240,000 | ||
Other current liabilities | 54,678,000 | 53,850,000 | ||
Total current liabilities | 512,453,000 | 835,644,000 | ||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 2,670,111,000 | 2,180,750,000 | ||
Deferred Credits and Other Liabilities: | ||||
Accumulated deferred income taxes | 600,719,000 | 547,210,000 | ||
Regulatory liabilities | 891,428,000 | 933,578,000 | ||
Asset retirement obligations | 158,674,000 | 146,679,000 | ||
Accrued pension liability and postretirement benefit cost | 100,375,000 | 94,003,000 | ||
Commodity derivative instruments | 2,511,000 | 3,556,000 | ||
Other deferred credits | 165,157,000 | 131,706,000 | ||
Total deferred credits and other liabilities | 1,918,864,000 | 1,856,732,000 | ||
Total liabilities | 5,101,428,000 | 4,873,126,000 | ||
Commitments and Contingencies (See Note 16) | ||||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529,000 | 11,529,000 | ||
Company common stockholders’ equity: | ||||
Common stock outstanding | 1,153,113,000 | 1,157,665,000 | ||
Accumulated other comprehensive income (loss), net of income taxes | (108,684,000) | (95,940,000) | ||
Retained earnings | 643,953,000 | 633,528,000 | ||
Total PNMR common stockholders’ equity | 1,688,382,000 | 1,695,253,000 | ||
Non-controlling interest in Valencia | 64,212,000 | 66,195,000 | ||
Total equity | 1,752,594,000 | 1,761,448,000 | 1,744,872,000 | 1,726,220,000 |
Total liabilities and stockholders' equity | 6,865,551,000 | 6,646,103,000 | ||
Public Service Company of New Mexico | ||||
Current Assets: | ||||
Cash and cash equivalents | 85,000 | 1,108,000 | 1,324,000 | 51,309,000 |
Accounts receivable, net of allowance for uncollectible accounts of $1,406 and $1,081 | 68,603,000 | 67,227,000 | ||
Unbilled revenues | 47,113,000 | 43,869,000 | ||
Other receivables | 10,650,000 | 14,541,000 | ||
Affiliate receivables | 15,871,000 | 9,486,000 | ||
Materials, supplies, and fuel stock | 67,097,000 | 60,859,000 | ||
Regulatory assets | 4,534,000 | 2,139,000 | ||
Commodity derivative instruments | 1,083,000 | 1,088,000 | ||
Income taxes receivable | 12,850,000 | 3,410,000 | ||
Other current assets | 42,433,000 | 39,904,000 | ||
Total current assets | 270,319,000 | 243,631,000 | ||
Other Property and Investments: | ||||
Investment securities | 328,242,000 | 323,524,000 | ||
Other investments | 91,000 | 283,000 | ||
Non-utility property | 96,000 | 96,000 | ||
Total other property and investments | 328,429,000 | 323,903,000 | ||
Utility Plant: | ||||
Plant in service and held for future use | 5,623,520,000 | 5,501,070,000 | ||
Less accumulated depreciation and amortization | 2,006,266,000 | 2,029,534,000 | ||
Net plant in service and plant held for future use | 3,617,254,000 | 3,471,536,000 | ||
Construction work in progress | 134,221,000 | 204,079,000 | ||
Nuclear fuel, net of accumulated amortization of $42,511 and $43,524 | 95,798,000 | 88,701,000 | ||
Net utility plant | 3,847,273,000 | 3,764,316,000 | ||
Deferred Charges and Other Assets: | ||||
Regulatory assets | 460,903,000 | 459,239,000 | ||
Goodwill | 51,632,000 | 51,632,000 | ||
Commodity derivative instruments | 2,511,000 | 3,556,000 | ||
Other deferred charges | 74,816,000 | 75,286,000 | ||
Total deferred charges and other assets | 589,862,000 | 589,713,000 | ||
Total assets | 5,035,883,000 | 4,921,563,000 | ||
Current Liabilities: | ||||
Short-term debt | 42,400,000 | 39,800,000 | ||
Short-term debt - affiliate | 19,800,000 | 0 | ||
Current installments of long-term debt | 0 | 23,000 | ||
Accounts payable | 75,114,000 | 77,094,000 | ||
Affiliate payables | 164,000 | 22,875,000 | ||
Customer deposits | 10,695,000 | 11,028,000 | ||
Accrued interest and taxes | 35,767,000 | 33,945,000 | ||
Regulatory liabilities | 5,975,000 | 784,000 | ||
Commodity derivative instruments | 1,177,000 | 1,182,000 | ||
Dividends declared | 132,000 | 132,000 | ||
Other current liabilities | 31,799,000 | 31,633,000 | ||
Total current liabilities | 223,023,000 | 218,496,000 | ||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,656,490,000 | 1,657,887,000 | ||
Deferred Credits and Other Liabilities: | ||||
Accumulated deferred income taxes | 502,767,000 | 449,012,000 | ||
Regulatory liabilities | 713,971,000 | 754,441,000 | ||
Asset retirement obligations | 157,814,000 | 145,707,000 | ||
Accrued pension liability and postretirement benefit cost | 92,981,000 | 86,124,000 | ||
Commodity derivative instruments | 2,511,000 | 3,556,000 | ||
Other deferred credits | 213,226,000 | 106,442,000 | ||
Total deferred credits and other liabilities | 1,683,270,000 | 1,545,282,000 | ||
Total liabilities | 3,562,783,000 | 3,421,665,000 | ||
Commitments and Contingencies (See Note 16) | ||||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529,000 | 11,529,000 | ||
Company common stockholders’ equity: | ||||
Common stock outstanding | 1,264,918,000 | 1,264,918,000 | ||
Accumulated other comprehensive income (loss), net of income taxes | (110,422,000) | (97,093,000) | ||
Retained earnings | 242,863,000 | 254,349,000 | ||
Total PNMR common stockholders’ equity | 1,397,359,000 | 1,422,174,000 | ||
Non-controlling interest in Valencia | 64,212,000 | 66,195,000 | ||
Total equity | 1,461,571,000 | 1,488,369,000 | 1,466,792,000 | 1,389,340,000 |
Total liabilities and stockholders' equity | 5,035,883,000 | 4,921,563,000 | ||
Texas-New Mexico Power Company | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 1,700,000 | 671,000 | 1,000 |
Accounts receivable, net of allowance for uncollectible accounts of $1,406 and $1,081 | 24,196,000 | 23,246,000 | ||
Unbilled revenues | 9,979,000 | 10,186,000 | ||
Other receivables | 1,721,000 | 2,860,000 | ||
Affiliate receivables | 164,000 | 336,000 | ||
Materials, supplies, and fuel stock | 4,737,000 | 5,643,000 | ||
Regulatory assets | 0 | 794,000 | ||
Other current assets | 1,114,000 | 1,131,000 | ||
Total current assets | 41,911,000 | 45,896,000 | ||
Other Property and Investments: | ||||
Other investments | 206,000 | 220,000 | ||
Non-utility property | 2,240,000 | 2,240,000 | ||
Total other property and investments | 2,446,000 | 2,460,000 | ||
Utility Plant: | ||||
Plant in service and held for future use | 1,686,119,000 | 1,504,778,000 | ||
Less accumulated depreciation and amortization | 487,734,000 | 460,858,000 | ||
Net plant in service and plant held for future use | 1,198,385,000 | 1,043,920,000 | ||
Construction work in progress | 51,459,000 | 34,350,000 | ||
Net utility plant | 1,249,844,000 | 1,078,270,000 | ||
Deferred Charges and Other Assets: | ||||
Regulatory assets | 138,027,000 | 141,433,000 | ||
Goodwill | 226,665,000 | 226,665,000 | ||
Other deferred charges | 6,284,000 | 6,046,000 | ||
Total deferred charges and other assets | 370,976,000 | 374,144,000 | ||
Total assets | 1,665,177,000 | 1,500,770,000 | ||
Current Liabilities: | ||||
Short-term debt | 17,500,000 | 0 | ||
Short-term debt - affiliate | 100,000 | 0 | ||
Accounts payable | 23,804,000 | 29,812,000 | ||
Affiliate payables | 1,210,000 | 667,000 | ||
Accrued interest and taxes | 41,882,000 | 29,619,000 | ||
Regulatory liabilities | 3,471,000 | 1,525,000 | ||
Other current liabilities | 2,861,000 | 2,450,000 | ||
Total current liabilities | 90,828,000 | 64,073,000 | ||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 575,398,000 | 480,620,000 | ||
Deferred Credits and Other Liabilities: | ||||
Accumulated deferred income taxes | 136,238,000 | 126,415,000 | ||
Regulatory liabilities | 177,458,000 | 179,137,000 | ||
Asset retirement obligations | 860,000 | 793,000 | ||
Accrued pension liability and postretirement benefit cost | 7,394,000 | 7,879,000 | ||
Other deferred credits | 2,908,000 | 7,448,000 | ||
Total deferred credits and other liabilities | 324,858,000 | 321,672,000 | ||
Total liabilities | 991,084,000 | 866,365,000 | ||
Commitments and Contingencies (See Note 16) | ||||
Company common stockholders’ equity: | ||||
Common stock outstanding | 64,000 | 64,000 | ||
Paid-in-capital | 534,166,000 | 504,166,000 | ||
Retained earnings | 139,863,000 | 130,175,000 | ||
Total PNMR common stockholders’ equity | 674,093,000 | 634,405,000 | 593,235,000 | $ 533,380,000 |
Total liabilities and stockholders' equity | 1,665,177,000 | 1,500,770,000 | ||
Public Service Company of New Mexico | ||||
Deferred Charges and Other Assets: | ||||
Goodwill | 51,632,000 | 51,632,000 | 51,632,000 | |
Total assets | 5,035,883,000 | 4,921,563,000 | $ 4,867,546,000 | |
Current Liabilities: | ||||
Short-term debt - affiliate | $ 19,800,000 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for uncollectible accounts | $ 1,406 | $ 1,081 |
Accumulated depreciation, nuclear fuel | $ 42,511 | $ 43,524 |
Cumulative preferred stock of subsidiary, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock of subsidiary, shares authorized | 10,000,000 | 10,000,000 |
Cumulative preferred stock of subsidiary, shares issued | 115,293 | 115,293 |
Cumulative preferred stock of subsidiary, shares outstanding | 115,293 | 115,293 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 79,653,624 | 79,653,624 |
Common stock, shares outstanding | 79,653,624 | 79,653,624 |
Public Service Company of New Mexico | ||
Allowance for uncollectible accounts | $ 1,406 | $ 1,081 |
Accumulated depreciation, nuclear fuel | $ 42,511 | $ 43,524 |
Cumulative preferred stock of subsidiary, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock of subsidiary, shares authorized | 10,000,000 | 10,000,000 |
Cumulative preferred stock of subsidiary, shares issued | 115,293 | 115,293 |
Cumulative preferred stock of subsidiary, shares outstanding | 115,293 | 115,293 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 39,117,799 | 39,117,799 |
Common stock, shares outstanding | 39,117,799 | 39,117,799 |
Texas-New Mexico Power Company | ||
Cumulative preferred stock of subsidiary, shares authorized | 1,000,000 | |
Common stock, par value (in dollars per share) | $ 10 | $ 10 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 6,358 | 6,358 |
Common stock, shares outstanding | 6,358 | 6,358 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Total Stockholders' Equity | Common Stock | AOCI | Retained Earnings | Non- controlling Interest in Valencia | Public Service Company of New Mexico | Public Service Company of New MexicoTotal Stockholders' Equity | Public Service Company of New MexicoCommon Stock | Public Service Company of New MexicoAOCI | Public Service Company of New MexicoRetained Earnings | Public Service Company of New MexicoNon- controlling Interest in Valencia | Texas-New Mexico Power Company | Texas-New Mexico Power CompanyCommon Stock | Texas-New Mexico Power CompanyPaid-in Capital | Texas-New Mexico Power CompanyRetained Earnings |
Balance at Dec. 31, 2015 | $ 1,726,220,000 | $ 1,654,813,000 | $ 1,166,465,000 | $ (71,432,000) | $ 559,780,000 | $ 71,407,000 | $ 1,389,340,000 | $ 1,317,933,000 | $ 1,236,776,000 | $ (71,476,000) | $ 152,633,000 | $ 71,407,000 | ||||
Beginning Balance at Dec. 31, 2015 | (71,432,000) | (71,476,000) | $ 533,380,000 | $ 64,000 | $ 404,166,000 | $ 129,150,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | 131,896,000 | 117,377,000 | 117,377,000 | 14,519,000 | 91,938,000 | 77,419,000 | 77,419,000 | 14,519,000 | ||||||||
Net Earnings | 77,419,000 | 41,672,000 | 41,672,000 | |||||||||||||
Total other comprehensive income (loss) | (21,019,000) | (21,019,000) | (21,019,000) | (20,952,000) | (20,952,000) | (20,952,000) | ||||||||||
Equity contribution from parent | 28,142,000 | 50,000,000 | 50,000,000 | |||||||||||||
Subsidiary preferred stock dividends/dividends declared on preferred stock | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | ||||||||||
Dividends declared on common stock | (71,887,000) | (71,887,000) | (71,887,000) | (4,142,000) | (4,142,000) | (4,142,000) | (31,817,000) | (31,817,000) | ||||||||
Proceeds from stock option exercise | 7,028,000 | 7,028,000 | 7,028,000 | |||||||||||||
Awards of common stock | (15,451,000) | (15,451,000) | (15,451,000) | 0 | 0 | 0 | ||||||||||
Excess tax (shortfall) from stock-based payment arrangements | (15,000) | (15,000) | (15,000) | |||||||||||||
Stock based compensation expense | 5,634,000 | 5,634,000 | 5,634,000 | |||||||||||||
Valencia’s transactions with its owner | (17,006,000) | (17,006,000) | (17,006,000) | (17,006,000) | ||||||||||||
Equity contributions from parent | 28,142,000 | 28,142,000 | 28,142,000 | 0 | 0 | |||||||||||
Balance at Dec. 31, 2016 | 1,744,872,000 | 1,675,952,000 | 1,163,661,000 | (92,451,000) | 604,742,000 | 68,920,000 | 1,466,792,000 | 1,397,872,000 | 1,264,918,000 | (92,428,000) | 225,382,000 | 68,920,000 | ||||
Ending Balance at Dec. 31, 2016 | (92,451,000) | (92,428,000) | 593,235,000 | 64,000 | 454,166,000 | 139,005,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Reclassification of stranded income taxes resulting from tax reform (Note 11) | 0 | (17,586,000) | 17,586,000 | 0 | (17,794,000) | 17,794,000 | ||||||||||
Net earnings | 95,419,000 | 80,402,000 | 80,402,000 | 15,017,000 | 87,413,000 | 72,396,000 | 72,396,000 | 15,017,000 | ||||||||
Net Earnings | 72,396,000 | 35,559,000 | 35,559,000 | |||||||||||||
Total other comprehensive income (loss) | 14,097,000 | 14,097,000 | 14,097,000 | 13,129,000 | 13,129,000 | 13,129,000 | ||||||||||
Equity contribution from parent | 0 | 50,000,000 | 50,000,000 | |||||||||||||
Subsidiary preferred stock dividends/dividends declared on preferred stock | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | ||||||||||
Dividends declared on common stock | (79,056,000) | (79,056,000) | (79,056,000) | (60,695,000) | (60,695,000) | (60,695,000) | (44,389,000) | (44,389,000) | ||||||||
Proceeds from stock option exercise | 1,739,000 | 1,739,000 | 1,739,000 | |||||||||||||
Awards of common stock | (13,929,000) | (13,929,000) | (13,929,000) | 0 | 0 | 0 | ||||||||||
Stock based compensation expense | 6,194,000 | 6,194,000 | 6,194,000 | |||||||||||||
Valencia’s transactions with its owner | (17,742,000) | (17,742,000) | (17,742,000) | (17,742,000) | ||||||||||||
Balance at Dec. 31, 2017 | 1,761,448,000 | 1,695,253,000 | 1,157,665,000 | (95,940,000) | 633,528,000 | 66,195,000 | 1,488,369,000 | 1,422,174,000 | 1,264,918,000 | (97,093,000) | 254,349,000 | 66,195,000 | ||||
Ending Balance at Dec. 31, 2017 | 1,695,253,000 | (95,940,000) | 1,422,174,000 | (97,093,000) | 634,405,000 | 64,000 | 504,166,000 | 130,175,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Cumulative effect adjustment (Note 9) | 11,200,000 | |||||||||||||||
Reclassification of stranded income taxes resulting from tax reform (Note 11) | 17,600,000 | |||||||||||||||
Net earnings | 101,282,000 | 86,170,000 | 86,170,000 | 15,112,000 | 70,323,000 | 55,211,000 | 55,211,000 | 15,112,000 | ||||||||
Net Earnings | 55,211,000 | 51,591,000 | 51,591,000 | |||||||||||||
Total other comprehensive income (loss) | (1,536,000) | (1,536,000) | (1,536,000) | 0 | (2,121,000) | (2,121,000) | (2,121,000) | |||||||||
Equity contribution from parent | 0 | 30,000,000 | 30,000,000 | |||||||||||||
Subsidiary preferred stock dividends/dividends declared on preferred stock | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | (528,000) | ||||||||||
Dividends declared on common stock | (86,425,000) | (86,425,000) | (86,425,000) | (77,377,000) | (77,377,000) | (77,377,000) | (41,903,000) | (41,903,000) | ||||||||
Proceeds from stock option exercise | 963,000 | 963,000 | 963,000 | |||||||||||||
Awards of common stock | (12,635,000) | (12,635,000) | (12,635,000) | 0 | 0 | 0 | ||||||||||
Stock based compensation expense | 7,120,000 | 7,120,000 | 7,120,000 | |||||||||||||
Valencia’s transactions with its owner | (17,095,000) | (17,095,000) | (17,095,000) | (17,095,000) | ||||||||||||
Balance at Dec. 31, 2018 | 1,752,594,000 | $ 1,688,382,000 | $ 1,153,113,000 | (108,684,000) | $ 643,953,000 | $ 64,212,000 | 1,461,571,000 | $ 1,397,359,000 | $ 1,264,918,000 | (110,422,000) | $ 242,863,000 | $ 64,212,000 | ||||
Ending Balance at Dec. 31, 2018 | $ 1,688,382,000 | $ (108,684,000) | $ 1,397,359,000 | $ (110,422,000) | $ 674,093,000 | $ 64,000 | $ 534,166,000 | $ 139,863,000 |
Summary of the Business and Sig
Summary of the Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of the Business and Significant Accounting Policies | Summary of the Business and Significant Accounting Policies Nature of Business PNMR is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s primary subsidiaries are PNM and TNMP. PNM is a public utility with regulated operations primarily engaged in the generation, transmission, and distribution of electricity. TNMP is a wholly-owned subsidiary of TNP, which is a holding company that is wholly-owned by PNMR. TNMP provides regulated transmission and distribution services in Texas. PNMR’s common stock trades on the New York Stock Exchange under the symbol PNM. Financial Statement Preparation and Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. The Notes to Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. 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 2017 and 2016 Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2018 financial statement presentation. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events as required by GAAP. Principles of Consolidation The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia (Note 10) 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’ expenses, which represent costs that are primarily driven by corporate level activities, are charged to the business segments. These services are billed at cost and are reflected as general and administrative expenses in the business segments. Other significant intercompany transactions between PNMR, PNM, and TNMP include interest and income tax sharing payments, as well as equity transactions, and interconnection billings. All intercompany transactions and balances have been eliminated. See Note 20. Accounting for the Effects of Certain Types of Regulation The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. GAAP also provides for the recognition of revenue and regulatory assets and liabilities associated with “alternative revenue programs” authorized by regulators. Such programs allow the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not otherwise qualify for recognition of regulatory assets and liabilities. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. Information on regulatory assets and regulatory liabilities is contained in Note 13. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. Cash and Restricted Cash Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash and cash equivalents. In November 2016, the FASB issued Accounting Standards Update 2016-18 - Statement of Cash Flows (Topic 230) , which requires amounts generally described as restricted cash and restricted cash equivalents (collectively, “restricted cash”) to be included with cash and cash equivalents when reconciling the beginning of period and end of period amounts shown on the statements of cash flows and adds disclosures necessary to reconcile such amounts to cash and cash equivalents on the balance sheets. ASU 2016-18 does not require that restricted cash be reflected as cash in the statement of financial position and does not provide a definition of what should be considered restricted cash. As of January 1, 2016, PNM held a deposit of $8.2 million from a third party that was restricted for PNM’s construction of transmission interconnection facilities for that party. During 2016, PNM utilized $7.2 million of such third-party deposits to offset construction costs for the interconnection facilities. The remaining $1.0 million was held as restricted cash until the second quarter of 2017, at which time a refund was made to the third party. The balances of this deposit arrangement were included in other current assets on the balance sheets of PNMR and PNM. Under the terms of the BTMU Term Loan agreement (Note 7), all cash of NM Capital was restricted to be used for payments required under that agreement or for taxes and fees. On May 22, 2018, Westmoreland repaid the Westmoreland Loan in full. NM Capital used a portion of the proceeds to repay all of its obligations under the BTMU Term Loan. These payments effectively terminated the loan agreements (Note 10). Cash held by NM Capital was included in cash and cash equivalents on the balance sheets of PNMR and was less than $0.1 million at December 31, 2017. The Company adopted ASU 2016-18 as of January 1, 2018, its required effective date. Upon adoption, ASU 2016-18 requires the use of a retrospective transition method for the statement of cash flows in each period presented. Accordingly, PNM made retrospective adjustments to its Consolidated Statements of Cash Flows to increase beginning cash, restricted cash, and equivalents by $8.2 million at January 1, 2016 and by $1.0 million January 1, 2017, and to reduce operating cash in-flows - other current assets by $7.2 million for the year ended December 31, 2016 and by $1.0 million for the year ended December 31, 2017. In addition, the beginning and ending balances of cash, restricted cash, and equivalents are presented on the Consolidated Statements of Cash Flows. No other changes were made to the Consolidated Financial Statements in connection with the adoption of ASU 2016-18. Utility Plant Utility plant is stated at original cost, which includes capitalized payroll-related costs such as taxes, pension, other fringe benefits, administrative costs, and AFUDC, where authorized by rate regulation, or capitalized interest. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains, losses, and costs to remove resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to accumulated depreciation. PNM and TNMP may receive reimbursements, referred to as CIAC, from customers to pay for all or part of certain construction projects to extent that project does not benefit regulated customers in general. PNM and TNMP account for these reimbursements as offsets to utility plant additions based on the requirements of the NMPRC, FERC, and PUCT. Due to the PUCT’s regulatory treatment of CIAC reimbursements, TNMP also receives a financing component that is recognized as other income on the Consolidated Statements of Earnings. Under the NMPRC regulatory treatment, PNM typically does not receive a financing component. Depreciation and Amortization PNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC and FERC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation of non-utility property is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between operating expenses and construction projects based on the use of the equipment. Average straight-line rates used were as follows: Year ended December 31 2018 2017 2016 PNM Electric plant 2.40 % 2.52 % 2.33 % Common, intangible, and general plant 8.18 % 8.36 % 5.40 % TNMP 3.49 % 3.57 % 3.66 % Allowance for Funds Used During Construction As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction or “debt AFUDC”) and a return on other funds (allowance for equity funds used during construction or “equity AFUDC”). The debt AFUDC is recorded in interest charges and the equity AFUDC is recorded in other income on the Consolidated Statements of Earnings. For the years ended December 31, 2018 , 2017 , and 2016 , PNM recorded $6.1 million , $6.3 million , and $5.3 million of debt AFUDC and $8.2 million , $8.7 million , and $4.2 million of equity AFUDC. TNMP recorded $2.3 million , $1.2 million , and $0.9 million of debt AFUDC and $2.2 million , $0.9 million , and $0.8 million of equity AFUDC. Capitalized Interest The Company capitalizes interest on its construction projects and major computer software projects not subject to the computation of AFUDC. Capitalized interest is recorded in interest charges. Interest was capitalized at the overall weighted average borrowing rate of 5.6% , 5.9% , and 6.1% for 2018 , 2017 , and 2016 . In 2018 , 2017 , and 2016 , capitalized interest was $0.6 million , $1.3 million , and $1.8 million for PNMR consolidated; $0.2 million , $0.6 million , and $0.8 million for PNM; and less than $0.1 million , less than $0.1 million , and $0.1 million for TNMP. Materials, Supplies, and Fuel Stock Materials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Periodic aerial surveys are performed on the coal piles and adjustments are made. Average cost is equal to net realizable value under the ratemaking process. Inventories consisted of the following at December 31 : PNMR PNM TNMP 2018 2017 2018 2017 2018 2017 (In thousands) Coal $ 22,777 $ 16,714 $ 22,777 $ 16,714 $ — $ — Materials and supplies 49,057 49,788 44,320 44,145 4,737 5,643 $ 71,834 $ 66,502 $ 67,097 $ 60,859 $ 4,737 $ 5,643 Investments In 1985 and 1986, PNM entered into eleven operating leases for interests in certain PVNGS generation facilities (Note 8). The 10.3% and 10.15% lessor notes that were issued by the owners of the assets subject to these leases were subsequently purchased and held by the PVNGS Capital Trust, which was consolidated by PNM. The PVNGS Capital Trust held certain of the lessor notes to their maturities in January 2015 and January 2016. Upon final maturity of the lessor notes, the PVNGS Capital Trust ceased to exist. The PVNGS lessor notes were carried at amortized cost. PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS and trusts for PNM’s share of final reclamation costs related to the coal mines serving SJGS and Four Corners (Note 16). Prior to 2018, PNM classified all debt and equity investments held in the NDT and coal mine reclamation trusts as available-for-sale securities. Effective January 1, 2018, the Company adopted Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10), which eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and requires those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Under ASU 2016-01, the accounting for available-for-sale debt securities remains essentially unchanged. See Note 9. PNM evaluates the securities for impairment on an on-going basis. Since third party investment managers have sole discretion over the purchase and sales of the securities, PNM records a realized loss as an impairment for any available-for-sale security that has a market value that is less than cost at the end of each quarter. For the year ended December 31, 2018 , PNM recorded impairment losses on the available-for-sale debt securities of $13.7 million . For the years ended December 31, 2017 , and 2016 , PNM recorded impairment losses on the available-for-sale securities, which included both debt and equity securities, of $7.1 million and $13.9 million . No gains or losses are deferred as regulatory assets or liabilities. Through December 31, 2017, unrealized gains on available-for-sale securities, net of related tax effects, are included in OCI and AOCI. In accordance with ASU 2016-01, unrealized gains on equity securities, net of related tax effects, were reclassified from AOCI to retained earnings on January 1, 2018. For the year ended December 31, 2018 , unrealized gains recognized in OCI and AOCI, net of related tax effects, are related only to the available-for sale debt securities. These investments are primarily comprised of international, United States, state, and municipal government obligations and corporate debt securities. All investments are held in PNM’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. Investment in NM Renewable Development, LLC On September 22, 2017, PNMR Development and AEP OnSite Partners created NMRD to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. In December 2017, PNMR Development made a contribution to NMRD of its interest in three 10 MW solar facilities it was constructing and assigned its interests in several agreements related to those facilities to NMRD. The facilities had a book value of $24.8 million , which approximated fair value at that time. AEP OnSite Partners made a cash contribution to NMRD equal to 50% of the value of the 30 MW solar capacity, amounting to $12.4 million , which cash was then distributed from NMRD to PNMR Development. During 2018 and 2017, PNMR Development and AEP OnSite Partners each made contributions of $9.6 million and $4.1 million to NMRD for its construction activities. At December 31, 2018, NMRD’s renewable energy capacity in operation is 33.9 MW, which includes 30 MW to supply energy to serve a data center in PNM’s service territory (Note 17) and 3.9 MW to supply energy to electric cooperatives located in New Mexico. PNMR accounts for its investment in NMRD using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR records as income its percentage share of earnings or loss of NMRD and carries its investment at cost, adjusted for its share of undistributed earnings or losses. For the year ended December 31, 2018, NMRD had revenues of $3.1 million and net earnings of $1.0 million . For the year ended December 31, 2017, NMRD revenues, expenses, and net income were each less than $0.1 million . At December 31, 2018 and 2017, NMRD had $2.6 million and $6.0 million of current assets, $50.8 million and $30.9 million of property, plant, and equipment and other assets, $0.2 million and $3.9 million of current liabilities, and $53.2 million and $33.0 million of owners’ equity. Goodwill Under GAAP, the Company does not amortize goodwill. Goodwill is evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill might be impaired. See Note 19. Asset Impairment Tangible long-lived assets are evaluated in relation to the estimated future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. See Note 16. Revenue Recognition See Note 4 for a discussion of electric operating revenues. Accounts Receivable and Allowance for Uncollectible Accounts Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company calculates the allowance for uncollectible accounts based on historical experience and estimated default rates. The accounts receivable balances are reviewed monthly and adjustments to the allowance for uncollectible accounts and bad debt expense are made as necessary. Amounts that are deemed uncollectible are written off. Amortization of Debt Acquisition Costs Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or other deductions, except for amounts recoverable through NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. Unamortized debt premium, discount, and expense related to long-term are reflected as part of the debt liabilities on the Consolidated Balance Sheets. Derivatives The Company records derivative instruments, including energy contracts, on the balance sheet as either an asset or liability measured at their fair value. GAAP requires that changes in the derivatives’ fair value be recognized currently in earnings unless specific hedge accounting criteria are met. For qualifying hedges, an entity must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. GAAP provides that the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument be reported as a component of AOCI and be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. See Note 7 and Note 9. The Company treats all forward commodity purchases and sales contracts subject to unplanned netting or “book-out” by the transmission provider as derivative instruments subject to mark-to-market accounting. GAAP provides guidance on whether realized gains and losses on derivative contracts not held for trading purposes should be reported on a net or gross basis and concludes such classification is a matter of judgment that depends on the relevant facts and circumstances. See Note 4. Decommissioning and Reclamation Costs In accordance with GAAP, PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on periodic site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions, including estimates of future decommissioning costs at current price levels, inflation rates, and discount rates. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the extended PVNGS license periods. PVNGS Units 1 and 2 are included in PNM’s retail rates and PVNGS Unit 3 was excluded through December 31, 2017, but is included in retail rates beginning in 2018. See Note 16 and Note 17. See Note 17 for information concerning the treatment of nuclear decommissioning for the leased portions of PVNGS in the NMPRC’s order in PNM’s NM 2015 Rate Case and PNM’s appeal of that order. In connection with both the SJGS and Four Corners coal supply agreements, the owners are required to reimburse the mining companies for the cost of contemporaneous reclamation, as well as the costs for final reclamation of the coal mines. The reclamation costs are based on periodic site-specific studies that estimate the costs to be incurred in the future and are dependent upon numerous assumptions, including estimates of future reclamation costs at current price levels, inflation rates, and discount rates. PNM considers the contemporaneous reclamation costs part of the cost of its delivered coal costs. See Note 16 for a discussion of reclamation costs. Environmental Costs The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and in some instances may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. The Company records its environmental liabilities when site assessments or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. The Company reviews its sites and measures the liability by assessing a range of reasonably likely costs for each identified site using currently available information and the probable level of involvement and financial condition of other potentially responsible parties. These estimates are based on assumptions regarding the costs for site investigations, remediation, operations and maintenance, monitoring, and site closure. The ultimate cost to clean up the Company’s identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process. Amounts recorded for environmental expense in the years ended December 31, 2018 , 2017 , and 2016 , as well as the amounts of environmental liabilities at December 31, 2018 and 2017 were insignificant. Pension and Other Postretirement Benefits See Note 11 for a discussion of pension and postretirement benefits expense, including a discussion of the actuarial assumptions. Stock-Based Compensation See Note 12 for a discussion of stock-based compensation expense. Income Taxes Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. In accordance with GAAP, all deferred taxes are reflected as non-current on the Consolidated Balance Sheets. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. GAAP requires that rate-regulated enterprises record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded based on the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory liabilities and assets offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits and amortizes them over the estimated useful lives of the assets. See Note 18 for additional information, including a discussion of the impacts of the Tax Act. The Company makes an estimate of its anticipated effective tax rate for the year as of the end of each quarterly period within its fiscal year. In interim periods, income tax expense is calculated by applying the anticipated annual effective tax rate to year-to-date earnings before taxes, which includes the earnings attributable to the Valencia non-controlling interest. GAAP also provides that certain unusual or infrequently occurring items, as well as adjustments due to enactment of new tax laws, be excluded from the estimated annual effective tax rate calculation. New Accounting Pronouncements Information concerning recently issued accounting pronouncements that have not been adopted by the Company is presented below. The Company does not expect difficulty in adopting these standards by their required effective dates. Accounting Standards Update 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02 to provide guidance on the recognition, measurement, presentation, and disclosure of leases. Effective January 1, 2019, ASU 2016-02 requires 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 and other leases will be required to be accounted for as financing arrangements, which are recorded in a manner that is similar to the accounting for capital leases under current GAAP. ASU 2016-02 also revises certain disclosure requirements. ASU 2016-02 allows entities to apply certain practical expedients to arrangements that exist upon adoption of the standard and provides for other practical expedients that can be applied to leases commencing after the date of adoption. As discussed in Note 8, the Company has operating leases of office buildings, vehicles, and equipment. PNM also has operating lease interests in PVNGS Units 1 and 2 that will expire in January 2023 and 2024. In addition, the Company routinely enters into land easements and right-of-way agreements but only one such agreement with the Navajo Nation has been accounted for as a lease under current guidance. The Company will elect to use many of the practical expedients available upon adoption of the standard. As a result, the Company will continue to account for its leases, including its land lease agreement with the Navajo Nation, existing as of January 1, 2019 as operating leases until they expire or a modified. The Company will also elect the use of the practical expedient related to retrospective application of the standard and will adopt the standard prospectively, rather than restating prior periods to conform to the new guidance. As of January 1, 2019, PNMR, PNM, and TNMP will record operating lease obligations and corresponding right-of-use assets aggregating approximately $160 million , $146 million , and $12 million . These amounts reflect anticipated future cash flows associated with each operating lease, including the 2018 consumer price index requirement for the right-of-way lease on the Navajo Nation, discounted at PNMR’s, PNM’s, and TNMP’s fully collateralized borrowing rates, except for fleet operating leases which contain specified interest rates. The Company anticipates the majority of its fleet leases, and certain of its leases for office equipment, commencing after the effective date of the new standard will be recorded as financing leases. After the date of adoption, the Company anticipates it will elect the use of the practical expedient to combine the lease and non-lease components for its fleet and office building leases, and to elect the practical expedient allowing leases with expected terms of less than one -year to not be recorded on its Consolidated Balance Sheets. The standard also expands disclosure requirements related to leases, which will be provided beginning in 2019. 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 2016-13, which 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 the remaining lives of the assets. In November 2018, the FASB clarified that receivables arising from operating leases are not within the scope of Topic 326 for assets measured at amortized costs. Instead, impairments of receivables arising from operating leases should be accounted for in accordance with Topic 842. The Company anticipates adopting ASU 2016-13 effective as of January 1, 2020, its required effective date. 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 its financial statements. Accounting Standards Update 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 to simplify the annual goodwill impairment assessment process. Currently, the first step of a quantitative impairment test requires an entity to compare the fair value of each reporting unit containing goodwill 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 requires 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. ASU 2017-04 eliminates the second step of the impairment analysis. Accordingly, if the first step of a quantitative goodwill impairment analysis performed after adoption of ASU 2017-04 indicates that the fair value of a reporting unit is less than its carrying value, the goodwill of that reporting unit would be impaired to the extent of that difference. The Company anticipates it will adopt ASU 2017-04 for impairment |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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 includes the generation and sale of electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional capacity as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale power and transmission rates. TNMP TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities. Corporate and Other The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development, NM Capital, and the equity method investment in NMRD are also included in Corporate and Other. Eliminations of intercompany income and expense transactions are reflected in the Corporate and Other segment. PNMR SEGMENT INFORMATION 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. 2018 PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Electric operating revenues $ 1,091,965 $ 344,648 $ — $ 1,436,613 Cost of energy 314,036 85,690 — 399,726 Utility margin 777,929 258,958 — 1,036,887 Other operating expenses 481,030 96,272 (17,650 ) 559,652 Depreciation and amortization 151,866 66,189 23,133 241,188 Operating income (loss) 145,033 96,497 (5,483 ) 236,047 Interest income 13,089 — 2,451 15,540 Other income (deductions) (17,312 ) 4,065 (2,039 ) (15,286 ) Interest charges (76,458 ) (32,091 ) (18,695 ) (127,244 ) Segment earnings (loss) before income taxes 64,352 68,471 (23,766 ) 109,057 Income taxes (benefit) (5,971 ) 16,880 (3,134 ) 7,775 Segment earnings (loss) 70,323 51,591 (20,632 ) 101,282 Valencia non-controlling interest (15,112 ) — — (15,112 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 54,683 $ 51,591 $ (20,632 ) $ 85,642 At December 31, 2018: Total Assets $ 5,035,883 $ 1,665,177 $ 164,491 $ 6,865,551 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2017 PNM TNMP Corporate and Other PNMR Consolidated Electric operating revenues $ 1,104,230 $ 340,773 $ — $ 1,445,003 Cost of energy 321,677 85,802 — 407,479 Utility margin 782,553 254,971 — 1,037,524 Other operating expenses 414,457 98,221 (22,135 ) 490,543 Depreciation and amortization 147,017 63,146 21,779 231,942 Operating income 221,079 93,604 356 315,039 Interest income 8,454 — 7,462 15,916 Other income (deductions) 22,132 3,551 (3,254 ) 22,429 Interest charges (82,697 ) (30,084 ) (14,844 ) (127,625 ) Segment earnings (loss) before income taxes 168,968 67,071 (10,280 ) 225,759 Income taxes 81,555 31,512 17,273 130,340 Segment earnings (loss) 87,413 35,559 (27,553 ) 95,419 Valencia non-controlling interest (15,017 ) — — (15,017 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 71,868 $ 35,559 $ (27,553 ) $ 79,874 At December 31, 2017: Total Assets $ 4,921,563 $ 1,500,770 $ 223,770 $ 6,646,103 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2016 PNM TNMP Corporate and Other PNMR Consolidated Electric operating revenues $ 1,035,913 $ 327,038 $ — $ 1,362,951 Cost of energy 299,714 80,882 — 380,596 Utility margin 736,199 246,156 — 982,355 Other operating expenses 407,922 93,389 (12,791 ) 488,520 Depreciation and amortization 133,447 61,126 14,537 209,110 Operating income (loss) 194,830 91,641 (1,746 ) 284,725 Interest income 10,173 — 12,120 22,293 Other income (deductions) 15,326 3,202 (1,739 ) 16,789 Interest charges (87,469 ) (29,335 ) (11,829 ) (128,633 ) Segment earnings (loss) before income taxes 132,860 65,508 (3,194 ) 195,174 Income taxes (benefit) 40,922 23,836 (1,480 ) 63,278 Segment earnings (loss) 91,938 41,672 (1,714 ) 131,896 Valencia non-controlling interest (14,519 ) — — (14,519 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 76,891 $ 41,672 $ (1,714 ) $ 116,849 At December 31, 2016: Total Assets $ 4,867,546 $ 1,383,223 $ 220,311 $ 6,471,080 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to customers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented under GAAP and is considered a non-GAAP measure. Major Customers No individual customer accounted for more than 10% of the electric operating revenues of PNMR or PNM. Three REPs accounted for more than 10% of the electric operating revenues of TNMP, as follows: Year Ended December 31, 2018 2017 2016 REP A 21 % 16 % 16 % REP B 15 % 11 % 11 % REP C 12 % 10 % 11 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI reports a measure for accumulated changes in equity that result from transactions and other economic events other than transactions with shareholders. Information regarding AOCI is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Gains on Available-for-Sale Securities Pension Liability Adjustment Total Fair Value Adjustment for Cash Flow Hedges Total (In thousands) Balance at December 31, 2015 $ 17,346 $ (88,822 ) $ (71,476 ) $ 44 $ (71,432 ) Amounts reclassified from AOCI (pre-tax) (22,139 ) 5,504 (16,635 ) 764 (15,871 ) Income tax impact of amounts reclassified 8,639 (2,148 ) 6,491 (298 ) 6,193 Other OCI changes (pre-tax) 778 (18,501 ) (17,723 ) (874 ) (18,597 ) Income tax impact of other OCI changes (304 ) 7,219 6,915 341 7,256 Net after-tax change (13,026 ) (7,926 ) (20,952 ) (67 ) (21,019 ) Balance at December 31, 2016 4,320 (96,748 ) (92,428 ) (23 ) (92,451 ) Amounts reclassified from AOCI (pre-tax) (17,567 ) 6,452 (11,115 ) 581 (10,534 ) Income tax impact of amounts reclassified 6,816 (2,504 ) 4,312 (225 ) 4,087 Other OCI changes (pre-tax) 28,160 3,618 31,778 1,000 32,778 Income tax impact of other OCI changes (10,927 ) (919 ) (11,846 ) (388 ) (12,234 ) Net after-tax change 6,482 6,647 13,129 968 14,097 Reclassification of stranded income taxes to retained earnings (Note 18) 2,367 (20,161 ) (17,794 ) 208 (17,586 ) Balance at December 31, 2017, as originally reported 13,169 (110,262 ) (97,093 ) 1,153 (95,940 ) Cumulative effect adjustment (Note 9) (11,208 ) — (11,208 ) — (11,208 ) Balance at January 1, 2018, as adjusted 1,961 (110,262 ) (108,301 ) 1,153 (107,148 ) Amounts reclassified from AOCI (pre-tax) (3,819 ) 7,568 3,749 216 3,965 Income tax impact of amounts reclassified 970 (1,922 ) (952 ) (56 ) (1,008 ) Other OCI changes (pre-tax) 3,790 (10,382 ) (6,592 ) 570 (6,022 ) Income tax impact of other OCI changes (963 ) 2,637 1,674 (145 ) 1,529 Net after-tax change (22 ) (2,099 ) (2,121 ) 585 (1,536 ) Balance at December 31, 2018 $ 1,939 $ (112,361 ) $ (110,422 ) $ 1,738 $ (108,684 ) The Consolidated Statements of Earnings include pre-tax amounts reclassified from AOCI related to Unrealized Gains on Available-for-Sale Securities in gains (losses) on investment securities, related to Pension Liability Adjustment in other(deductions), and related to Fair Value Adjustment for Cash Flow Hedges in interest charges. The income tax impacts of all amounts reclassified from AOCI are included in income taxes in the Consolidated Statements of Earnings. |
Electric Operating Revenue
Electric Operating Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Electric Operating Revenue | Electric Operating Revenues PNMR is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s electric utilities are PNM and TNMP. Revenue Recognition Electric operating revenues are recorded in the period of energy delivery, which includes estimated amounts for service rendered but unbilled at the end of each accounting period. The determination of the energy sales billed to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading and the corresponding unbilled revenue are estimated. Unbilled electric revenue is estimated based on daily generation volumes, estimated customer usage by class, line losses, historical trends and experience, and applicable customer rates. Amounts billed are generally due within the next month. The Company does not incur incremental costs to obtain contracts for its energy services. PNM’s wholesale electricity sales are recorded as electric operating revenues and wholesale electricity purchases are recorded as costs of energy sold. In accordance with GAAP, derivative contracts that are subject to unplanned netting are recorded net in earnings. A “book-out” is the planned or unplanned netting of off-setting purchase and sale transactions. A book-out is a transmission mechanism to reduce congestion on the transmission system or administrative burden. For accounting purposes, a book-out is the recording of net revenues upon the settlement of a derivative contract. Unrealized gains and losses on derivative contracts that are not designated for hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power and fuel supply agreements, used to hedge generation assets and purchased power costs. Changes in the fair value of economic hedges are reflected in results of operations, with changes related to economic hedges on sales included in operating revenues and changes related to economic hedges on purchases included in cost of energy sold (Note 9). In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) . 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. ASU 2014-09 also revises the disclosure requirements regarding revenue and requires that revenue from contracts with customers be reported separately from other revenues. ASU 2014-09 provides that it could be applied retrospectively to each prior period presented or on a modified retrospective basis with a cumulative effect adjustment to retained earnings on the date of adoption. The Company adopted ASU 2014-09 effective as of January 1, 2018, its required effective date, using the modified retrospective method of adoption. The adoption of ASU 2014-09 did not result in changes to the nature, amount, and timing of the Company’s existing revenue recognition processes or information technology infrastructure. Therefore, the adoption of ASU 2014-09 had no effect on the amount of revenue recorded in 2018 compared to the amount that would have been recorded under prior GAAP, no effect on total electric operating revenues or any other caption within the Company’s financial statements, and no cumulative effect adjustment was recorded. Revenues for 2018 are presented in accordance with the standard on the Consolidated Statements of Earnings and 2017 and 2016 revenues are presented on a comparative basis. Additional disclosures to further disaggregate 2018 revenues are presented below. Under ASU 2014-09, PNM and TNMP recognize revenue as they satisfy performance obligations, which typically occurs as the customer or end-user consumes the electric service provided. Electric services are typically for a bundle of services that are distinct and transferred to the end-user in one performance obligation measured by KWh or KW. Electric operating revenues are recorded in the period of energy delivery, including estimated unbilled amounts. As permitted under GAAP, the Company has elected to exclude all sales and similar taxes from revenue. Revenue from contracts with customers is recorded based upon the total authorized tariff price at the time electric service is rendered, including amounts billed under arrangements qualifying as an Alternative Revenue Program (“ARP”). ARP arrangements are agreements between PNM or TNMP and its regulator that allows PNM or TNMP to adjust future rates in response to past activities or completed events, if certain criteria are met. GAAP requires that ARP revenues be reported separately from contracts with customers. ARP revenues in a given period include the recognition of “originating” ARP revenues (i.e. when the regulator-specific conditions are met) in the period, offset by the reversal of ARP revenues billed to customers in that period. Sources of Revenue Additional information about the nature of revenues is provided below. Additional information about matters affecting PNM’s and TNMP’s regulated revenues is provided in Note 17. Revenue from Contracts with Customers PNM NMPRC Regulated Retail Electric Service – PNM provides electric generation, transmission, and distribution service to its rate-regulated customers in New Mexico. PNM’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Customer rates for retail electric service are set by the NMPRC and revenue is recognized as energy is delivered to the customer. PNM invoices customers on a monthly basis for electric service and generally collects billed amounts within one month. Transmission Service to Third Parties – PNM owns transmission lines that are interconnected with other utilities in New Mexico, Texas, Arizona, Colorado, and Utah. Transmission customers receive service for the transmission of energy owned by the customer utilizing PNM’s transmission facilities. Customers generally receive transmission services, which are regulated by FERC, from PNM through PNM’s Open Access Transmission Tariff (“OATT”) or a specific contract. Customers are billed based on capacity and energy components on a monthly basis. Other – On January 1, 2018, PNM acquired a 65 MW interest in SJGS Unit 4, which is held as merchant plant as ordered by the NMPRC (Note 16). PNM sells power from 36 MW of this capacity to a third party at a fixed price that is recorded as revenue from contracts with customers. PNM is obligated to deliver power under this arrangement only when SJGS Unit 4 is operating. Other market sales from this 65 MW interest are recorded in other electric operating revenues. TNMP PUCT Regulated Retail Electric Service – TNMP provides transmission and distribution services in Texas under the provisions of TECA and the Texas Public Utility Regulatory Act. TNMP is subject to traditional cost-of-service regulation with respect to rates and service under the jurisdiction of the PUCT and certain municipalities. TNMP’s transmission and distribution activities are solely within ERCOT and not subject to traditional rate regulation by FERC. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. Revenue is recognized as energy is delivered to the consumer. TNMP invoices REPs on a monthly basis and is generally paid within a month. Transmission Cost of Service (“TCOS”) – TNMP is a transmission service provider that is allowed to recover its TCOS through a network transmission rate that is approved by the PUCT. TCOS customers are other utilities that receive service for the transmission of energy owned by the customer utilizing TNMP’s transmission facilities. Alternative Revenue Programs ARP revenues, which are discussed above, include recovery or refund provisions under PNM’s renewable energy rider and true-ups to PNM’s formula transmission rates; TNMP’s AMS surcharge, transmission cost recovery factor, and the impacts of the PUCT’s January 25, 2018 order regarding the change in the federal corporate income tax rate; and the energy efficiency incentive bonus at both PNM and TNMP. GAAP provides for the recognition of regulatory assets and liabilities for the difference between ARP revenues and amounts billed under those programs. Regulatory assets and liabilities are amortized into earnings as amounts are billed. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. Other Electric Operating Revenues Other electric operating revenues consist primarily of PNM’s sales for resale meeting the definition of a derivative under GAAP. Derivatives are not considered contracts with customers under ASU 2014-09. PNM engages in activities meeting the definition of derivatives to optimize its existing jurisdictional assets and long-term power agreements through spot market, hour-ahead, day-ahead, week-ahead, month-ahead, and other sales of excess generation not required to fulfill retail load and contractual commitments. Through December 31, 2017, PNM’s 134 MW share of Unit 3 at PVNGS was excluded from retail rates and was being sold in the wholesale market. In December 2015, the NMPRC approved PNM’s request to include PVNGS Unit 3 as a jurisdictional resource to service New Mexico retail customers beginning in 2018. Disaggregation of Revenues A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. The table also reflects ARP revenues and other revenues. PNM TNMP PNMR Consolidated Year Ended December 31, 2018 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 433,009 $ 130,288 $ 563,297 Commercial 408,333 111,261 519,594 Industrial 61,119 17,317 78,436 Public authority 21,688 5,609 27,297 Economy energy service 26,764 — 26,764 Transmission 54,280 66,991 121,271 Miscellaneous 14,098 8,983 23,081 Total revenues from contracts with customers 1,019,291 340,449 1,359,740 Alternative revenue programs (2,443 ) 4,199 1,756 Other electric operating revenues 75,117 — 75,117 Total Electric Operating Revenues $ 1,091,965 $ 344,648 $ 1,436,613 Contract balances Performance obligations related to contracts with customers are typically satisfied when the energy is delivered and the customer or end-user utilizes the energy. Accounts receivable from customers represent amounts billed to the customer or end-user, including amounts under ARP programs. For PNM, accounts receivable reflected on the Consolidated Balance Sheets, net of allowance for uncollectible accounts, includes $61.7 million and $61.8 million at December 31, 2018 and 2017 resulting from contracts with customers. All of TNMP’s accounts receivable results from contracts with customers. Contract assets are an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). The Company has no contract assets as of December 31, 2018. Contract liabilities arise when consideration is received in advance from a customer before satisfying the performance obligations. Therefore, revenue is deferred and not recognized until the obligation is satisfied. Under its OATT, PNM accepts upfront consideration for capacity reservations requested by transmission customers, which requires PNM to defer the customer’s transmission capacity rights for a specific period of time. PNM recognizes the revenue of these capacity reservations over the period it defers the customer’s capacity rights. Other utilities pay PNM and TNMP in advance for the joint-use of their utility poles. These revenues are recognized over the period of time specified in the joint-use contract, typically for one calendar year. Deferred revenues on these arrangements are recorded as contract liabilities. The Company has no other arrangements with remaining performance obligations to which a portion of the transaction price would be required to be allocated. Changes during the period in the balances of contract liabilities, which are included in other current liabilities on the Consolidated Balance Sheets, are as follows: PNM TNMP PNMR Consolidated (In thousands) Balance at December 31, 2017 $ 349 $ — $ 349 Consideration received in advance of service to be provided 4,660 1,512 6,172 Deferred revenue earned (4,660 ) (1,512 ) (6,172 ) Balance at December 31, 2018 $ 349 $ — $ 349 |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings and Dividends Per Share | Earnings and Dividends Per Share In accordance with GAAP, dual presentation of basic and diluted earnings per share has been presented in the Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share and dividends per share is as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 85,642 $ 79,874 $ 116,849 Average Number of Common Shares: Outstanding during year 79,654 79,654 79,654 Vested awards of restricted stock 236 237 104 Average Shares – Basic 79,890 79,891 79,758 Dilutive Effect of Common Stock Equivalents: Stock options and restricted stock 122 250 374 Average Shares – Diluted 80,012 80,141 80,132 Net Earnings Attributable to PNMR Per Share of Common Stock: Basic $ 1.07 $ 1.00 $ 1.47 Diluted $ 1.07 $ 1.00 $ 1.46 Dividends Declared per Common Share $ 1.0850 $ 0.9925 $ 0.9025 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock and Equity Contributions PNMR, PNM, and TNMP did not issue any common stock during the three -year period ended December 31, 2018 . PNMR funded cash equity contributions of zero in 2018 and 2017, and $28.1 million in 2016 to PNM, and $30.0 million in 2018 and $50.0 million in each of 2017 and 2016 to TNMP. PNMR offers shares of PNMR common stock through the PNMR Direct Plan. PNMR utilizes shares of its common stock purchased on the open market, by an independent agent, rather than issuing additional shares to satisfy subscriptions under the PNMR Direct Plan. The shares of PNMR common stock utilized in the PNMR Direct Plan are offered under a SEC shelf registration statement that expires in March 2021. Dividends on Common Stock The declaration of common dividends by PNMR is dependent upon a number of factors, including the ability of PNMR’s subsidiaries to pay dividends. PNMR’s primary sources of dividends are its operating subsidiaries. PNM declared and paid cash dividends to PNMR of $77.4 million , $60.7 million , and $4.1 million in 2018 , 2017 , and 2016 . TNMP declared and paid cash dividends to PNMR of $41.9 million , $44.4 million , and $31.8 million in 2018 , 2017 , and 2016 . The NMPRC has placed certain restrictions on the ability of PNM to pay dividends to PNMR, including the restriction that PNM cannot pay dividends that cause its debt rating to fall below investment grade. The NMPRC provisions allow PNM to pay dividends, without prior NMPRC approval, from current earnings, which is determined on a rolling four quarter basis, or from equity contributions previously made by PNMR. The Federal Power Act also imposes certain restrictions on dividends by public utilities, including that dividends cannot be paid from paid-in capital. Prior to July 2018, the Company’s revolving credit facilities and term loans contained a covenant requiring the maintenance of debt-to-capitalization ratios of not more than 65% . In July 2018, PNMR’s revolving credit facility and term loans were amended such that PNMR is now required to maintain a debt-to-capitalization ratio of not more than 70% . The debt-to-capitalization ratio requirements remain at less than or equal 65% for the PNM and TNMP. These debt-to-capitalization ratio requirements could limit the amounts of dividends that could be paid. PNM also has other financial covenants that limit the transfer of assets, through dividends or other means, including a requirement to obtain the approval of certain financial counterparties to transfer more than five percent of PNM’s assets. As of December 31, 2018 : none of the numerical tests would restrict the payment of dividends from the retained earnings of TNMP; the 65% debt-to-capitalization covenant would allow the payment of dividends by PNM of up to $242.8 million ; and the 70% debt-to-capitalization covenant would allow the payment of dividends by PNMR of up to $306.8 million . In addition, the ability of PNMR to declare dividends is dependent upon the extent to which cash flows will support dividends, the availability of retained earnings, financial circumstances and performance, current and future regulatory decisions, Congressional and legislative acts, and economic conditions. Conditions imposed by the NMPRC or PUCT, future growth plans and related capital requirements, and business considerations may also affect PNMR’s ability to pay dividends. Preferred Stock PNM’s cumulative preferred shares outstanding bear dividends at 4.58% per annum. PNM preferred stock does not have a mandatory redemption requirement, but may be redeemed, at PNM’s option, at 102% of the stated value plus accrued dividends. The holders of the PNM preferred stock are entitled to payment before the holders of common stock in the event of any liquidation or dissolution or distribution of assets of PNM. In addition, PNM’s preferred stock is not entitled to a sinking fund and cannot be converted into any other class of stock of PNM. PNMR and TNMP have no preferred stock outstanding. The authorized shares of PNMR and TNMP preferred stock are 10 million shares and 1 million shares. |
Financing
Financing | 12 Months Ended |
Dec. 31, 2018 | |
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 or refinance other debt. Prior to July 2018, each of the Company’s revolving credit facilities and term loans contained a single financial covenant, which required the maintenance of a debt-to-capitalization ratio of less than or equal to 65% . In July 2018, the PNMR Revolving Credit Facility, the PNMR Development Revolving credit facility, and PNMR’s term loans were each amended such that PNMR is now required to maintain a debt-to-capitalization ratio of less than or equal to 70% . The debt-to-capitalization ratio requirement remains at less than or equal to 65% for the PNM and TNMP agreements. The Company’s revolving credit facilities and term loans generally also contain 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. Financing Activities PNMR At January 1, 2016, PNMR had outstanding the $150.0 million PNMR Term Loan, which matured and was repaid on December 21, 2016. At January 1, 2016, PNMR had outstanding the $150.0 million PNMR 2015 Term Loan, which matured and was repaid on March 9, 2018. As discussed in Note 16, NM Capital, a wholly-owned subsidiary of PNMR, entered into a $125.0 million term loan agreement (the “BTMU Term Loan”) with BTMU, as lender and administrative agent, as of February 1, 2016. The BTMU Term Loan had a maturity date of February 1, 2021 and bore interest at a rate based on LIBOR plus a customary spread. PNMR, as parent company of NM Capital, guaranteed NM Capital’s obligations to BTMU. NM Capital utilized the proceeds of the BTMU Term Loan to provide funding of $125.0 million (the “Westmoreland Loan”) to a ring-fenced, bankruptcy-remote, special-purpose entity subsidiary of Westmoreland to finance Westmoreland’s purchase of SJCC. The BTMU Term Loan agreement required that NM Capital utilize all amounts, less taxes and fees, it received under the Westmoreland Loan to repay the BTMU Term Loan. On May 22, 2018, the full principal balance outstanding under the Westmoreland Loan of $50.1 million was repaid. NM Capital used a portion of the proceeds to repay all remaining principal of $43.0 million owed under the BTMU Term Loan. These payments effectively terminated the loan agreements. In addition, PNMR’s guarantee of NM Capital’s obligations was also effectively terminated. See Note 10. On October 21, 2016, PNMR entered into letter of credit arrangements with JPMorgan Chase Bank, N.A. (the “JPM LOC Facility”) under which letters of credit aggregating $30.3 million were issued to facilitate the posting of reclamation bonds, which SJCC is required to post in connection with permits relating to the operation of the San Juan mine (Note 16). On December 21, 2016, PNMR entered into two term loan agreements: (1) a $100.0 million term loan agreement (the “PNMR 2016 One-Year Term Loan”) among PNMR, the lenders identified therein, and Wells Fargo Bank, National Association, as administrative agent, that was to mature on December 21, 2017; and (2) a $100.0 million term loan agreement (the “PNMR 2016 Two-Year Term Loan”) among PNMR and JPMorgan Chase Bank, N.A., as lender and administrative agent, that matured on December 21, 2018. The proceeds of these term loans were used to repay the $150.0 million PNMR Term Loan and to reduce borrowings under the PNMR Revolving Credit Facility. On December 15, 2017, the PNMR 2016 One-Year Term Loan was extended to December 14, 2018. On March 9, 2018, PNMR issued $300.0 million aggregate principal amount of 3.250% SUNs (the “PNMR 2018 SUNs”), which mature on March 9, 2021. The proceeds from the offering were used to repay the $150.0 million PNMR 2015 Term Loan that was due on March 9, 2018 and to reduce borrowings under the PNMR Revolving Credit Facility. On November 26, 2018, PNMR Development entered into a $90.0 million term loan agreement (the “PNMR Development Term Loan”), among PNMR Development and KeyBank, N.A., as administrative agent and sole lender. Proceeds from the PNMR Development Term Loan were used to repay short-term borrowings under the PNMR Development’s revolving credit facility and to repay borrowings under its intercompany loan from PNMR. The PNMR Development Term Loan bears interest at a variable rate, which was 3.32% on December 31, 2018, and matures on November 26, 2020. PNMR, as parent company of PNMR Development, has guaranteed PNMR Development’s obligations under the loan. The PNMR Development Term Loan requires PNMR to maintain a debt-to-capitalization ratio of less than or equal to 70% , and contains customary events of default, a cross-default provision, and a change-of-control provision. On December 14, 2018, PNMR entered into a $150.0 million term loan agreement (the “PNMR 2018 One -Year Term Loan”) among PNMR, the lenders identified therein, and MUFG Bank, Ltd., as administrative agent. The proceeds from the PNMR 2018 One -Year Term Loan were used to repay the PNMR 2016 One -Year Term Loan (as extended), a portion of the PNMR 2016 Two -Year Term Loan, and for general corporate purposes. The PNMR 2018 One -Year Term Loan bears interest at a variable rate, which was 3.20% at December 31, 2018, and matures on December 13, 2019. On December 21, 2018, PNMR entered into a $50.0 million term loan agreement (the “PNMR 2018 Two -Year Term Loan”), between PNMR and Bank of America, N.A. as sole lender. Proceeds from the PNMR 2018 Two -Year Term Loan were used to repay the remaining amount owed under the PNMR 2016 Two -Year Term Loan and for general corporate purposes. The PNMR 2018 Two -Year Term Loan bears interest at a variable rate, which was 3.28% at December 31, 2018, and matures on December 21, 2020. PNMR has an automatic shelf registration that provides for the issuance of various types of debt and equity securities that expires in March 2021. PNM At January 1, 2016, PNM had a $125.0 million multi-draw term loan facility (the “PNM Multi-draw Term Loan”) that had a maturity date of June 21, 2016. The PNM Multi-draw Term Loan was repaid on May 20, 2016. On May 20, 2016, PNM entered into a $175.0 million term loan agreement (the “PNM 2016 Term Loan”) between PNM and JPMorgan Chase Bank, N.A., as lender and administrative agent. The PNM 2016 Term Loan bore interest at a variable rate and had a maturity date of November 17, 2017. PNM used a portion of the proceeds of the PNM 2016 Term Loan to prepay without penalty the $125.0 million outstanding under the PNM Multi-draw Term Loan. The PNM 2016 Term Loan was repaid on July 20, 2017. 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 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. At January 1, 2016, PNM had $37.0 million of outstanding PCRBs, which have a final maturity of June 1, 2040, and $20.0 million of outstanding PCRBs which have a final maturity of June 1, 2042. These PCRBs were subject to mandatory tender for remarketing on June 1, 2017 and were successfully remarketed on that date. The $37.0 million of PCRBs now bear interest at 2.125% and the $20.0 million of PCRBs now bear interest at 2.45% . Both series are now subject to mandatory tender for remarketing on June 1, 2022. On July 20, 2017, PNM entered into a $200.0 million term loan agreement (the “PNM 2017 Term Loan”) between PNM and JPMorgan Chase Bank, N.A., as lender and administrative agent, and U.S. Bank National Association, as lender. The PNM 2017 Term Loan bore interest at a variable rate, which was 3.26% at December 31, 2018, and was repaid on January 18, 2019. PNM used the proceeds of the PNM 2017 Term Loan to prepay without penalty the $175.0 million PNM 2016 Term Loan and to reduce short-term borrowings. On July 28, 2017, PNM entered into an agreement (the “PNM 2017 Senior Unsecured Note Agreement”) with institutional investors for the sale of $450.0 million aggregate principal amount of eight series of Senior Unsecured Notes (the “PNM 2018 SUNs”) offered in private placement transactions. On May 14, 2018 PNM issued $350.0 million of the PNM 2018 SUNs under that agreement (at fixed annual interest rates ranging from 3.15% to 4.50% for terms between 5 and 30 years) and used the proceeds to repay an equal amount of PNM’s 7.95% SUNs that matured on May 15, 2018. On July 31, 2018, PNM issued the remaining $100.0 million of the PNM 2018 SUNs (at fixed annual interest rates of 3.78% and 4.60% for terms of 10 and 30 years) and used the proceeds to repay an equal amount of PNM’s 7.50% SUNs on August 1, 2018. The PNM 2017 Senior Unsecured Note Agreement includes customary covenants, including a covenant that requires the maintenance of a debt-to-capitalization ratio of less than or equal to 65% , customary events of default, including a cross-default provision, and covenants regarding parity of financial covenants, liens and guarantees with respect to PNM’s material credit facilities. In the event of a change of control, PNM will be required to offer to prepay the PNM 2018 SUNs at par. PNM will have the right to redeem any or all of the PNM 2018 SUNs prior to their respective maturities, subject to payment of a customary make-whole premium. On April 9, 2018, PNMR Development deposited $68.2 million with PNM related to potential transmission network interconnections, which is shown as a cash inflow from financing activities on PNM’s Consolidated Statements of Cash Flows. PNM used the deposit to repay intercompany borrowings. PNM is required to pay interest to PNMR Development to the extent work under the interconnections has not been performed. During the year ended December 31, 2018, PNM recognized $2.4 million of interest expense under the agreement. At December 31, 2018, PNM’s remaining obligation under the interconnection agreement with PNMR Development of $68.2 million , excluding unpaid interest, is reflected in other deferred credits on PNM’s Consolidated Balance Sheets. As required by GAAP, all intercompany transactions related to this deposit have been eliminated on PNMR’s Consolidated Financial Statements. On January 18, 2019, PNM entered into a $250.0 million term loan agreement (the “PNM 2019 Term Loan”) among PNM, the lenders identified therein, and U.S. Bank N.A., as administrative agent. PNM used the proceeds of the PNM 2019 Term Loan to repay the PNM 2017 Term Loan, short-term borrowings under the PNM Revolving Credit Facility, and for general corporate purposes. The PNM 2019 Term Loan bears interest at a variable rate, which was 3.13% at February 22, 2019, and must be repaid on or before July 17, 2020. PNM has a shelf registration statement, which will expire in May 2020, with capacity for the issuance of up to $475.0 million of senior unsecured notes. TNMP On December 17, 2015, TNMP entered into an agreement which provided that TNMP would issue $60.0 million aggregate principal amount of 3.53% first mortgage bonds, due 2026 on or about February 10, 2016, subject to satisfaction of certain conditions. TNMP issued the bonds on February 10, 2016 and used the proceeds to reduce short-term debt and intercompany debt. On June 14, 2017, TNMP entered into an agreement which provided TNMP would issue $60.0 million aggregate principal amount of 3.22% first mortgage bonds, due 2027 on or about August 25, 2017, subject to satisfaction of certain conditions. TNMP issued the bonds on August 24, 2017 and used the proceeds to reduce short-term and intercompany debt and for general corporate purposes. On June 28, 2018, TNMP entered into an agreement under which TNMP issued $60.0 million aggregate principal amount of 3.85% first mortgage bonds, due 2028. On July 25, 2018, TNMP entered into a $20.0 million term loan agreement. On December 17, 2018, the TNMP 2018 Term Loan agreement was amended to provide additional funding of $15.0 million , which results in a total committed amount of $35.0 million under the agreement (the “TNMP 2018 Term Loan”). The TNMP 2018 Term Loan bears interest at a variable rate, which was 3.22% at December 31, 2018, and matures on July 25, 2020. TNMP used the proceeds from these issuances to repay short-term borrowings and for TNMP’s general corporate purposes. On February 26, 2019, TNMP entered into the TNMP 2019 Bond Purchase Agreement with institutional investors for the sale of $305.0 million aggregate principal amount of four series of TNMP first mortgage bonds (the “TNMP 2019 Bonds”) offered in private placement transactions. TNMP is required to issue specified amounts of the TNMP 2019 Bonds on March 29, 2019 and on or before July 1, 2019. The issuances of the TNMP 2019 Bonds are subject to the satisfaction of customary conditions, including continuing compliance with the representations, warranties and covenants of the TNMP 2019 Bond Purchase Agreement. TNMP will use the proceeds from the TNMP 2019 Bonds to repay $172.3 million 9.50% first mortgage bonds at their maturity on April 1, 2019, as well as to repay borrowings under the TNMP Revolving Credit Facility and for other general corporate purposes. The terms of the TNMP 2019 Bond Purchase Agreement include customary covenants, including a covenant that requires TNMP to maintain a debt-to-capitalization ratio of less than or equal to 65% , customary events of default, a cross-default provision, and a change-of-control provision. TNMP will have the right to redeem any or all of the TNMP 2019 Bonds prior to their respective maturities, subject to payment of a customary make-whole premium. Information concerning the funding dates, maturities and interest rates on the TNMP 2019 Bonds to be issued in March 2019 and on or before July 1, 2019 is as follows: Scheduled Funding Date Maturity Date Principal Amount Interest Rate (In millions) March 29, 2019 March 29, 2034 $ 75.0 3.79 % March 29, 2019 March 29, 2039 75.0 3.92 % March 29, 2019 March 29, 2044 75.0 4.06 % 225.0 July 1, 2019 July 1, 2029 80.0 3.60 % $ 305.0 Interest Rate Hedging Activities In September 2015, PNMR entered into a hedging agreement whereby it effectively established a fixed interest rate of 1.927% for borrowings under the PNMR 2015 Term Loan for the period from January 11, 2016 through its maturity on March 9, 2018. In 2017, PNMR entered into three separate four -year hedging agreements whereby it effectively established fixed interest rates of 1.926% , 1.823% , and 1.629% , plus customary spreads over LIBOR, subject to change if there is a change in PNMR’s credit rating, for three separate tranches, each of $50.0 million , of its variable rate debt. These hedge agreements are accounted for as cash flow hedges. These hedge agreements had fair value gains totaling $1.0 million at December 31, 2018 that is included in other deferred charges and $1.4 million at December 31, 2017 that is included in other current assets on the Consolidated Balance Sheets. The fair values were determined using Level 2 inputs under GAAP, including using forward LIBOR curves under the mid-market convention to discount cash flows over the remaining term of the agreement. Borrowing Arrangements Between PNMR and its Subsidiaries PNMR has one-year intercompany loan agreements with its subsidiaries. Individual subsidiary loan agreements vary in amount up to $100.0 million and have either reciprocal or non-reciprocal terms. Interest charged to the subsidiaries is equivalent to interest paid by PNMR on its short-term borrowings or the money-market interest rate if PNMR does not have any short-term borrowings outstanding. TNMP had outstanding borrowings of $0.1 million from PNMR at December 31, 2018 and zero at February 22, 2019 . TNMP had no borrowings at December 31, 2017. PNM had outstanding borrowings of $19.8 million from PNMR at December 31, 2018 and zero at February 22, 2019. PNM had no outstanding borrowings at December 31, 2017. Short-term Debt Currently, 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 facilities currently expire on October 31, 2023 and contain options to be extended through October 2024. However, one lender, whose current commitment is $10.0 million under the PNMR Revolving Credit Facility and $40.0 million under the PNM Revolving Credit Facility, did not agree to extend its commitments beyond October 31, 2020. Unless one or more of the other current lenders or a new lender assumes the commitments of the non-extending lender, the financing capacities will be reduced to $290.0 million for the PNMR Revolving Credit Facility and $360.0 million for the PNM Revolving Credit Facility beginning on November 1, 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. In September 2017, the TNMP Revolving Credit Facility was extended to mature on September 23, 2022. At January 1, 2016, PNM had a $50.0 million unsecured revolving credit facility (the “PNM 2014 New Mexico Credit Facility”) that was scheduled to expire on January 8, 2018. On December 12, 2017, PNM entered into a new $40.0 million unsecured revolving credit facility (the “PNM 2017 New Mexico Credit Facility”) by and among PNM, the lenders identified therein, U.S. Bank National Association, as Administrative Agent, and BOKF, NA dba Bank of Albuquerque, as Syndication Agent to replace the PNM 2014 New Mexico Credit Facility. The eight participating lenders are all banks that have a significant presence or are headquartered in New Mexico. The PNM 2017 New Mexico Credit Facility expires on December 12, 2022 and contains covenants and conditions similar to those in the PNM Revolving Credit Facility. On February 26, 2018, PNMR Development entered into a revolving credit facility with Wells Fargo Bank, National Association, as lender, which allows PNMR Development to borrow up to $24.5 million on a revolving credit basis and also provides for the issuance of letters of credit. The facility was scheduled to expire on February 25, 2019. On February 22, 2019, PNMR Development amended the revolving credit facility to increase the capacity to $25.0 million and to expire on February 24, 2020. The PNMR Development Revolving Credit Facility bears interest at a variable rate and contains terms similar to the PNMR Revolving Credit Facility. PNMR has guaranteed the obligations of PNMR Development under the facility. PNMR Development uses the facility to finance its participation in NMRD and for other activities. Short-term debt outstanding consists of: December 31, Short-term Debt 2018 2017 (In thousands) PNM: PNM Revolving Credit Facility $ 32,400 $ 39,800 PNM 2017 New Mexico Credit Facility 10,000 — 42,400 39,800 TNMP Revolving Credit Facility 17,500 — PNMR: PNMR Revolving Credit Facility 20,000 165,600 PNMR One-Year Term Loans (1) 150,000 100,000 PNMR Development Revolving Credit Facility 6,000 — $ 235,900 $ 305,400 (1) Includes both the PNMR 2018 One -Year Term Loan and the PNMR 2016 One -Year Term Loan (as extended) In addition to the above borrowings, PNMR, PNM, and TNMP had letters of credit outstanding of $4.7 million , $2.5 million , and $0.1 million at December 31, 2018 that reduce the available capacity under their respective revolving credit facilities. In addition, PNMR had $30.3 million of letters of credit outstanding under the JPM LOC Facility. At December 31, 2018 , interest rates on outstanding borrowings were 3.76% for the PNMR Revolving Credit Facility, 3.63% for the PNM Revolving Credit Facility, 3.17% for the TNMP Revolving Credit Facility, 3.56% for the PNM 2017 New Mexico Credit Facility, 3.46% for the PNMR Development Revolving Credit Facility, and 3.20% for the PNMR 2018 One-Year Term Loan. At February 22, 2019 , PNMR, PNM, and TNMP had $250.0 million , $397.5 million , and $37.4 million of availability under their respective revolving credit facilities, including reductions of availability due to outstanding letters of credit, PNM had $30.0 million of availability under the PNM 2017 New Mexico Credit Facility, and PNMR Development had $14.1 million of availability under the PNMR Development Revolving Credit Facility. Total availability at February 22, 2019 , on a consolidated basis, was $729.0 million for PNMR. At February 22, 2019 , PNMR and PNM had invested cash of $0.9 million and $18.1 million . TNMP had no invested cash at February 22, 2019 . Long-Term Debt As discussed above, on January 18, 2019, PNM entered into the $250.0 million PNM 2019 Term Loan and used a portion of the proceeds under that agreement to repay the $200.0 million PNM 2017 Term Loan on that date. On February 26, 2019, TNMP entered into the TNMP 2019 Bond Purchase Agreement under which an aggregate of $305.0 million of TNMP 2019 Bonds are to be issued in March 2019 and on or before July 1, 2019. TNMP will use a portion of the proceeds from the TNMP 2019 Bonds to repay the $172.3 million 9.50% TNMP first mortgage bonds due on April 1, 2019. In accordance with GAAP, borrowings under the $200.0 million PNM 2017 Term Loan and the $172.3 million 9.50% TNMP first mortgage bonds are reflected as being long-term in the Consolidated Balance Sheets at December 31, 2018 since PNM and TNMP have demonstrated their intent and ability to re-finance these agreements on a long-term basis. In addition, aggregate borrowings of $450.0 million of PNM’s SUNs that were due on May 15, 2018 and August 1, 2018, are reflected as being long-term in the Consolidated Balance Sheets since the PNM 2017 Senior Unsecured Note Agreement demonstrated PNM’s ability and intent to re-finance the aggregate $450.0 million Senior Unsecured Notes on a long-term basis at December 31, 2017. Information concerning long-term debt outstanding and unamortized (premiums), discounts, and debt issuance costs is as follows: December 31, 2018 December 31, 2017 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) PNM Debt Senior Unsecured Notes, Pollution Control Revenue Bonds: 1.875% due April 2033, mandatory tender - October 1, 2021 $ 146,000 $ 1,022 $ 146,000 $ 1,383 6.25% due January 2038 36,000 216 36,000 228 2.125% due June 2040, mandatory tender - June 1, 2022 37,000 314 37,000 404 5.20% due June 2040, mandatory tender - June 1, 2020 40,045 62 40,045 105 5.90% due June 2040 255,000 1,950 255,000 2,040 6.25% due June 2040 11,500 88 11,500 92 2.45% due September 2042, mandatory tender - June 1, 2022 20,000 119 20,000 153 2.40% due June 2043, mandatory tender - June 1, 2020 39,300 146 39,300 243 5.20% due June 2043, mandatory tender - June 1, 2020 21,000 31 21,000 53 Senior Unsecured Notes: 7.95% due May 2018 — — 350,000 272 7.50% due August 2018 — — 100,025 73 5.35% due October 2021 160,000 455 160,000 617 3.15% due May 2023 55,000 338 — — 3.45% due May 2025 104,000 666 — — 3.85% due August 2025 250,000 1,974 250,000 2,274 3.68% due May 2028 88,000 581 — — 3.78% due August 2028 15,000 101 — — 3.93% due May 2033 38,000 256 — — 4.22% due May 2038 45,000 307 — — 4.50% due May 2048 20,000 138 — — 4.60% due August 2048 85,000 590 — — PNM 2017 Term Loan due January 2019 200,000 1 200,000 23 1,665,845 9,355 1,665,870 7,960 Less current maturities — — 25 2 1,665,845 9,355 1,665,845 7,958 December 31, 2018 December 31, 2017 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) TNMP Debt First Mortgage Bonds: 9.50% due April 2019 172,302 206 172,302 1,032 6.95% due April 2043 93,198 (17,347 ) 93,198 (18,057 ) 4.03% due July 2024 80,000 580 80,000 686 3.53% due February 2026 60,000 585 60,000 667 3.22% due August 2027 60,000 494 60,000 552 3.85% due June 2028 60,000 584 — — TNMP 2018 Term Loan due July 2020 35,000 — — — 560,500 (14,898 ) 465,500 (15,120 ) Less current maturities — — — — 560,500 (14,898 ) 465,500 (15,120 ) PNMR Debt PNMR 2015 Term Loan due March 2018 — — 150,000 12 BTMU Term Loan — — 50,137 1,001 PNMR 2016 Two-Year Term Loan due December 2018 — — 100,000 9 PNMR 3.25% 2018 SUNs due March 2021 300,000 1,690 — — PNMR Development Term Loan due November 2020 90,000 88 — — PNMR 2018 Two-Year Term Loan due December 2020 50,000 — — — 440,000 1,778 300,137 1,022 Less current maturities — — 257,268 396 440,000 1,778 42,869 626 Total Consolidated PNMR Debt 2,666,345 (3,765 ) 2,431,507 (6,138 ) Less current maturities — — 257,293 398 $ 2,666,345 $ (3,765 ) $ 2,174,214 $ (6,536 ) Reflecting mandatory tender dates, but excluding the impact of the refinancings under the PNM 2019 Term Loan and the TNMP 2019 Bond Purchase Agreement discussed above, long-term debt maturities as of December 31, 2018 are follows: PNMR PNM TNMP PNMR Consolidated (In thousands) 2019 $ — $ 200,000 $ 172,302 $ 372,302 2020 140,000 100,345 35,000 275,345 2021 300,000 306,000 — 606,000 2022 — 57,000 — 57,000 2023 — 55,000 — 55,000 Thereafter — 947,500 353,198 1,300,698 Total $ 440,000 $ 1,665,845 $ 560,500 $ 2,666,345 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases 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. Many of PNM’s electric transmission and distribution facilities are located on lands that require the grant of rights-of-way from governmental entities, Native American tribes, or private parties. PNM has completed several renewals of rights-of-way, the largest of which is a renewal with the Navajo Nation, and has no significant rights-of-way that will expire within the next five years. PNM is obligated to pay the Navajo Nation annual payments of $6.0 million , subject to adjustment each year based on the Consumer Price Index, through 2029. PNM’s April 2018 payment for the amount due under the Navajo Nation right-of-way lease was $6.9 million , which included amounts due under the Consumer Price Index adjustment. All of the Company’s leases, as well as the Navajo Nation rights-of-way agreement, are accounted for as operating leases. See New Accounting Pronouncements in Note 1. The PVNGS leases were entered into in 1985 and 1986 and 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. Each of the leases provided PNM with an option to purchase the leased assets at fair market value at the end of the leases, but PNM did not have a fixed price purchase option. In addition, the leases provided PNM with options to renew the leases at fixed rates set forth in each of the leases for two years beyond the termination of the original lease terms. The option periods on certain leases could be further extended for up to an additional six years (the “Maximum Option Period”) if the appraised remaining useful lives and fair value of the leased assets were greater than parameters set forth in the leases. The rental payments during the fixed renewal option periods are 50% of the amounts during the original terms of the leases. Gross annual lease payments aggregated $33.0 million for the Unit 1 leases and $23.7 million for the Unit 2 leases prior to the expiration of their original terms. Following procedures set forth in the PVNGS leases, PNM notified each of the four lessors under the Unit 1 leases and the lessor under the one Unit 2 lease containing the Maximum Option Period provision that it would elect to renew those leases for the Maximum Option Period on the expiration date of the original leases. PNM and each of those lessors entered into amendments to each of the leases setting forth the terms and conditions that would implement the extension of the term of the leases through the agreed upon Maximum Option Period. The four Unit 1 leases now expire on January 15, 2023 and the one Unit 2 lease now expires on January 15, 2024. The annual payments during the renewal periods aggregate $16.5 million for the PVNGS Unit 1 leases and $1.6 million for the Unit 2 lease, which are included in the table of future lease payments shown below. The terms of each of the extended leases do not provide for additional renewal options beyond their currently scheduled expiration dates. PNM has the option to purchase the assets underlying each of the extended leases at their fair market values or to return the lease interests to the lessors on the expiration dates. Under the terms of the extended leases, PNM has until January 15, 2020 for the Unit 1 leases and January 15, 2021 for the Unit 2 lease to provide notices to the lessors of PNM’s intent to exercise the purchase options or to return the leased assets to the lessors. PNM’s elections are independent for each lease and are irrevocable. In the proceeding addressing PNM’s 2017 IRP (Note 17), PNM agreed to promptly notify the NMPRC of a decision to extend the Unit 1 or 2 leases, or to exercise its option to purchase the leased assets at fair market value upon the expiration of leases. If PNM elects to exercise its purchase option under any of the leases, the leases provide an appraisal process to determine fair market value. If PNM elects to return the assets underlying the extended leases, PNM will retain certain obligations related to PNVGS, including costs to decommissioning the facility. PNM would seek to recover its undepreciated investments at the end of the PVNGS leases as well as any future obligations related to PNM’s leased capacity from NM retail customers. Any transfer of the assets underlying the leases will be required to comply with NRC licensing requirements. For the three PVNGS Unit 2 leases that did not contain the Maximum Option Period provisions, PNM, following procedures set forth in the leases, notified each of the lessors that PNM would elect to purchase the assets underlying those leases on the expiration date of the original leases. PNM and the lessors under these leases entered into agreements that established the purchase price, representing the fair market value, to be paid by PNM for the assets underlying the leases on January 15, 2016. 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 17 for information concerning the NMPRC’s treatment of the purchased assets and extended leases in PNM’s NM 2015 Rate Case. As discussed in Note 16, the NMPRC’s final order in the NM 2015 Rate Case ultimately authorized PNM to recover certain costs associated with the extended PVNGS Unit 1 and 2 leases through January 2023 and 2024 and to recover a portion of the January 2016 purchase price of assets underlying certain other leases in Unit 2 but has prohibited PNM from recovering future contributions to the trusts that will be used to fund decommissioning of these interests. The NMPRC’s decisions in the NM 2015 Rate Case are currently being appealed at the NM Supreme Court. PNM cannot predict the outcome of the appeals these matters in the NM Supreme Court or what decisions the NMPRC might reach regarding PNM’s ultimate decision to further extend, purchase, or return the assets underlying the extended leases. Covenants in PNM’s PVNGS Units 1 and 2 lease agreements limit PNM’s ability, without consent of the owner participants in the lease transactions, (i) to enter into any merger or consolidation, or (ii) except in connection with normal dividend policy, to convey, transfer, lease or dividend more than 5% of its assets in any single transaction or series of related transactions. 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 owner participants and take title to the leased interests. Exercise of renewal options under the leases required that amounts payable to the owner participants under the circumstances described above would increase to the fair market value as of the renewal date. If such an event had occurred as of December 31, 2018 , amounts due to the lessors under the circumstances described above would be up to $163.8 million , payable on January 15, 2019 in addition to the scheduled lease payments due on January 15, 2019. In such event, PNM would record the acquired assets at the lower of their fair value or the amount paid. Operating lease expense, including the PVNGS leases was: PNMR PNM TNMP (In thousands) 2018 $ 37,959 $ 33,085 $ 4,351 2017 $ 35,972 $ 31,817 $ 3,570 2016 $ 37,432 $ 32,843 $ 3,748 Future expected operating lease payments at December 31, 2018 are shown below: PNMR PNM TNMP (In thousands) 2019 $ 31,772 $ 27,691 $ 3,664 2020 30,404 27,000 3,102 2021 29,012 26,462 2,324 2022 28,175 26,217 1,795 2023 18,868 17,447 1,279 Later years 43,489 42,329 1,150 Total minimum lease payments $ 181,720 $ 167,146 $ 13,314 The above table includes $18.5 million at PNMR, $7.5 million at PNM, and $11.0 million at TNMP for expected future payments on fleet leases that could be avoided if the leases were returned and the lessor is able to recover estimated market value for the equipment from third parties. |
Fair Value of Derivative and Ot
Fair Value of Derivative and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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 Fair value is defined under GAAP as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is based on current market quotes as available and is supplemented by modeling techniques and assumptions made by the Company to the extent quoted market prices or volatilities are not available. External pricing input availability varies based on market liquidity, term of the agreement, and, for commodities, location. Valuations of derivative assets and liabilities take into account nonperformance risk, including the effect of counterparties’ and the Company’s credit risk. The Company regularly assesses the validity and availability of pricing data for its derivative transactions. Although the Company uses its best judgment in estimating the fair value of these instruments, there are inherent limitations in any estimation technique. Energy Related Derivative Contracts Overview The primary objective for the use of commodity derivative instruments, including energy contracts, options, swaps, 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 customers. PNM is exposed to market risk for the needs of its customers not covered under a FPPAC. PNM was exposed to market risk for its share of PVNGS Unit 3 through December 31, 2017, at which time PVNGS Unit 3 became a jurisdictional resource to serve New Mexico retail customers. Beginning January 1, 2018, PNM is exposed to market risk for its 65 MW interest in SJGS Unit 4 that is held as merchant plant as ordered by the NMPRC (Note 16). PNM has entered into agreements to sell power from 36 MW of that capacity to a third party at a fixed price for the period January 1, 2018 through June 30, 2022, subject to certain conditions. Under these agreements, PNM is obligated to deliver 36 MW of power only when SJGS Unit 4 is operating. These agreements are not considered derivatives because there is no notional amount due to the unit-contingent nature of the transactions. 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. TNMP does not enter into energy related derivative contracts. Commodity Risk Marketing and procurement of energy often involve market risks associated with managing energy commodities and establishing 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. PNM monitors the market risk of its commodity contracts in accordance with approved risk and credit policies. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, PNM accounts for its various instruments for the purchase and sale of energy, which meet the definition of a derivative, based on PNM’s intent. During the years ended December 31, 2018 , 2017 , and 2016 , PNM was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flows hedges. The derivative 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. PNM has no trading transactions. Commodity Derivatives PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows: Economic Hedges December 31, 2018 2017 (In thousands) Current assets $ 1,083 $ 1,088 Deferred charges 2,511 3,556 3,594 4,644 Current liabilities (1,177 ) (1,182 ) Long-term liabilities (2,511 ) (3,556 ) (3,688 ) (4,738 ) Net $ (94 ) $ (94 ) 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. PNM does not offset fair value and cash collateral for derivative instruments under master netting arrangements and the above table reflects the gross amounts of fair value assets and liabilities for commodity derivatives. Included in the above table are equal amounts of assets and liabilities aggregating $3.6 million at December 31, 2018 and $4.6 million at December 31, 2017, resulting from PNM’s hazard sharing arrangements with Tri-State (Note 17). The hazard sharing arrangements are net-settled upon delivery. Other amounts that could be offset under master netting agreements were immaterial. At December 31, 2018 and 2017 , PNM had no amounts recognized for the legal right to reclaim cash collateral. However, at December 31, 2018 and 2017 , amounts posted as cash collateral under margin arrangements were $1.0 million and $0.8 million . At December 31, 2018 and 2017 , obligations to return cash collateral were $1.0 million and $0.9 million . Cash collateral amounts are included in other current assets and other current liabilities on the Consolidated Balance Sheets. PNM has a NMPRC-approved hedging plan to manage fuel and purchased power costs related to customers covered by its FPPAC. There were no amounts hedged under this plan as of December 31, 2018 or 2017. The following table presents the effect of mark-to-market commodity derivative instruments on PNM’s earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented. Economic Hedges Year Ended 2018 2017 2016 (In thousands) Electric operating revenues $ (50 ) $ 5,151 $ (53 ) Cost of energy (52 ) (5,386 ) (1,208 ) Total gain (loss) $ (102 ) $ (235 ) $ (1,261 ) Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM’s net buy (sell) volume positions: Economic Hedges MMBTU MWh December 31, 2018 100,000 — December 31, 2017 100,000 — PNM has 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. In connection with managing its commodity risks, PNM enters into master agreements with certain counterparties. If PNM is in a net liability position under an agreement, some agreements provide that the counterparties can request collateral if PNM’s credit rating is downgraded; other agreements provide that the counterparty may request collateral to provide it with “adequate assurance” that PNM will perform; and others have no provision for collateral. At December 31, 2018 and 2017, PNM had no such contracts in a net liability position. Non-Derivative Financial Instruments The carrying amounts reflected on the Consolidated Balance Sheets approximate fair value for cash, receivables, and payables due to the short period of maturity. Investment securities are carried at fair value. Investment securities consist of PNM assets held in the NDT for its share of decommissioning costs of PVNGS and trusts for PNM’s share of final reclamation costs related to the coal mines serving SJGS and Four Corners (Note 16). At December 31, 2018 and 2017 , the fair value of investment securities included $287.1 million and $293.7 million for the NDT and $41.1 million and $29.8 million for the mine reclamation trusts. In January 2016, the FASB issued Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10), which makes targeted improvements to GAAP regarding financial instruments. ASU 2016-01 eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and requires those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Under ASU 2016-01, the accounting for available-for-sale debt securities remains essentially unchanged. The accounting required by ASU 2016-01 is to be applied prospectively with a cumulative effect adjustment recorded as of the beginning of the year of adoption. ASU 2016-01 also revises certain presentation and disclosure requirements. Accordingly, the following information for 2018 is presented under ASU 2016-01 and the information for 2017 is presented under prior GAAP. Prior to 2018, PNM classified all debt and equity investments held in the NDT and coal mine reclamation trusts as available-for-sale securities. Unrealized losses on these securities were recorded immediately through earnings and unrealized gains were recorded in AOCI until the securities were sold. On January 1, 2018, PNM recorded an after-tax cumulative effect adjustment of $11.2 million to reclassify unrealized holding gains on equity securities held in the NDT and coal mine reclamation trusts from AOCI to retained earnings on the Consolidated Balance Sheets. After January 1, 2018, all gains and losses resulting from sales and changes in the fair value of equity securities are recognized in earnings. Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table. Year Ended December 31, 2018 (In thousands) Equity securities: Net gains from equity securities sold $ 4,864 Net (losses) from equity securities still held (10,523 ) Total net (losses) on equity securities (5,659 ) Available-for-sale debt securities: Net (losses) on debt securities (11,517 ) Net (losses) on investment securities $ (17,176 ) The proceeds and gross realized gains and losses on the disposition of securities held in the NDT and coal mine reclamation trusts 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 (increase)/decrease in realized impairment losses of $(9.4) million , $3.3 million , and $(1.2) million for the years ended December 31, 2018 , 2017 and 2016 . Year Ended December 31, 2018 2017 2016 (In thousands) Proceeds from sales $ 984,533 $ 637,492 $ 522,601 Gross realized gains $ 19,358 $ 36,896 $ 46,116 Gross realized (losses) $ (16,624 ) $ (12,993 ) $ (25,430 ) Held-to-maturity securities are those investments in debt securities that the Company has the ability and intent to hold until maturity. At December 31, 2017, PNMR’s held-to-maturity securities consisted of the Westmoreland Loan. In May 2018, the full amount owed under the Westmoreland Loan was repaid (Note 16). The Company has no available-for-sale debt 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 December 31, 2018 , the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 12,488 After 1 year through 5 years 63,600 After 5 years through 10 years 60,344 After 10 years through 15 years 9,984 After 15 years through 20 years 10,904 After 20 years 48,418 $ 205,738 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. 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 years ended December 31, 2018 and 2017 . See New Accounting Pronouncements in Note 1. For investment securities, Level 2 and Level 3 fair values are provided by fund managers utilizing a pricing service. For Level 2 fair values, 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. Fair values of Level 2 investments in mutual funds are equal to net asset value as of year-end. Level 3 investments are comprised of corporate term loans and, at December 31, 2017, the Westmoreland Loan. 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. The valuation of Level 3 investments requires significant judgment by the pricing provider due to the absence of quoted market values, changes in market conditions, and the long-term nature of the assets. The significant unobservable inputs include the trading multiples of public companies that are considered comparable to the company being valued, company specific issues, estimates of liquidation value, current operating performance and future expectations of performance, changes in market outlook and the financing environment, capitalization rates, discount rates, and cash flows. For the Westmoreland Loan, fair values were determined using an internal valuation model of discounted cash flows that took into consideration discount rates 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 by PNM on the Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities. Under ASU 2016-01, PNM does not classify its investments in equity instruments as available-for-sale securities beginning January 1, 2018. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Unrealized Gains (In thousands) December 31, 2018 Cash and cash equivalents $ 11,472 $ 11,472 $ — $ — Equity securities: Corporate stocks, common 32,997 32,997 — — Corporate stocks, preferred 7,258 1,654 5,604 — Mutual funds and other 70,777 70,777 — — Available-for-sale debt securities: U.S. Government 29,503 18,662 10,841 — $ 1,098 International Government 8,435 — 8,435 — 90 Municipals 53,642 — 53,642 — 489 Corporate and other 114,158 588 111,414 2,156 923 $ 328,242 $ 136,150 $ 189,936 $ 2,156 $ 2,600 Commodity derivative assets $ 3,594 $ — $ 3,594 $ — Commodity derivative liabilities (3,688 ) — (3,688 ) — Net $ (94 ) $ — $ (94 ) $ — December 31, 2017 Available-for-sale securities Cash and cash equivalents $ 52,636 $ 52,636 $ — $ — Equity securities: Domestic value 40,032 40,032 — — $ 4,011 Domestic growth 35,456 35,456 — — 3,995 International and other 45,867 42,332 3,535 — 6,810 Fixed income securities: U.S. Government 34,317 33,645 672 — 273 Municipals 48,076 — 48,076 — 1,225 Corporate and other 67,140 — 67,140 — 1,714 $ 323,524 $ 204,101 $ 119,423 $ — $ 18,028 Commodity derivative assets $ 4,644 $ — $ 4,644 $ — Commodity derivative liabilities (4,738 ) — (4,738 ) — Net $ (94 ) $ — $ (94 ) $ — The carrying amounts and fair values of investments in the Westmoreland Loan, other investments, and long-term debt, which are not recorded at fair value on the Consolidated Balance Sheets are presented below: GAAP Fair Value Hierarchy Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNMR Long-term debt $ 2,670,111 $ 2,703,810 $ — $ 2,703,810 $ — Other investments $ 297 $ 297 $ 297 $ — $ — PNM Long-term debt $ 1,656,490 $ 1,668,736 $ — $ 1,668,736 $ — Other investments $ 91 $ 91 $ 91 $ — $ — TNMP Long-term debt $ 575,398 $ 597,236 $ — $ 597,236 $ — Other investments $ 206 $ 206 $ 206 $ — $ — December 31, 2017 PNMR Long-term debt $ 2,437,645 $ 2,554,836 $ — $ 2,554,836 $ — Westmoreland Loan $ 56,640 $ 66,588 $ — $ — $ 66,588 Other investments $ 503 $ 503 $ 503 $ — $ — PNM Long-term debt $ 1,657,910 $ 1,727,135 $ — $ 1,727,135 $ — Other investments $ 283 $ 283 $ 283 $ — $ — TNMP Long-term debt $ 480,620 $ 527,563 $ — $ 527,563 $ — Other investments $ 220 $ 220 $ 220 $ — $ — Investments Held by Employee Benefit Plans As discussed in Note 11, PNM and TNMP have trusts that hold investment assets for their pension and other postretirement benefit plans. The fair value of the assets held by the trusts impacts the determination of the funded status of each plan but the assets are not reflected on the Company’s Consolidated Balance Sheets. Both the PNM Pension Plan and the TNMP Pension Plan hold units of participation in the PNM Resources, Inc. Master Trust (the “PNMR Master Trust”), which was established for the investment of assets of the pension plans. The Company changed its investment allocation targets by decreasing the fixed income investments used to match pension liabilities from 65% to 54% in 2018. GAAP provides a practical expedient that allows the net asset value per share to be used as fair value for investments in certain entities that do not have readily determinable fair values and are considered to be investment companies. Fair values for alternative investments held by the PNMR Master Trust are valued using this practical expedient. Under GAAP, investments for which fair value is measured using that practical expedient are not required to be categorized within the fair value hierarchy. Level 2 and Level 3 fair values are provided by fund managers utilizing a pricing service. For level 2 fair values, the pricing provider predominately uses the market approach using bid side market value based upon a hierarchy of information for specific securities or securities with similar characteristics. Fair values of Level 2 investments in mutual funds are equal to net asset value as of year-end. Level 3 investments are comprised of corporate term loans. Alternative investments include private equity funds, hedge funds, and real estate funds. The private equity funds are not voluntarily redeemable. These investments are realized through periodic distributions occurring over a 10 to 15 year term after the initial investment. The real estate funds and hedge funds may be voluntarily redeemed but are subject to redemption provisions that may result in the funds not being able to be redeemed in the near term. Audited financial statements are received for each fund and are reviewed by the Company annually. The valuation of Level 3 investments and alternative investments requires significant judgment by the pricing provider due to the absence of quoted market values, changes in market conditions, and the long-term nature of the assets. The significant unobservable inputs include the trading multiples of public companies that are considered comparable to the company being valued, company specific issues, estimates of liquidation value, current operating performance and future expectations of performance, changes in market outlook and the financing environment, capitalization rates, discount rates, and cash flows. The fair values of investments held by the employee benefit plans are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 412,790 $ 139,673 $ 272,829 $ 288 Uncategorized investments 76,874 Total Master Trust Investments $ 489,664 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 45,283 $ 15,149 $ 30,101 $ 33 Uncategorized investments 9,378 Total Master Trust Investments $ 54,661 PNM OPEB Plan Cash and cash equivalents $ 190 $ 190 $ — $ — Equity securities: Mutual funds 69,513 32,325 37,188 — $ 69,703 $ 32,515 $ 37,188 $ — TNMP OPEB Plan Cash and cash equivalents $ 66 $ 66 $ — $ — Equity securities: Mutual funds 8,725 3,723 5,002 — $ 8,791 $ 3,789 $ 5,002 $ — GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 487,498 $ 140,218 $ 347,089 $ 191 Uncategorized investments 74,768 Total Master Trust Investments $ 562,266 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 53,273 $ 15,244 $ 38,008 $ 21 Uncategorized investments 10,260 Total Master Trust Investments $ 63,533 PNM OPEB Plan Cash and cash equivalents $ 437 $ 437 $ — $ — Equity securities: International funds 10,636 — 10,636 — Domestic value 10,816 10,816 — — Domestic growth 6,710 6,710 — — Other funds 31,660 — 31,660 — Fixed income securities: Mutual funds 20,918 20,918 — — $ 81,177 $ 38,881 $ 42,296 $ — TNMP OPEB Plan Cash and cash equivalents $ 149 $ 149 $ — $ — Equity securities: International funds 1,597 — 1,597 — Domestic value 293 293 — — Domestic growth 1,410 1,410 — — Other funds 4,011 — 4,011 — Fixed income securities: Mutual funds 2,685 2,685 — — $ 10,145 $ 4,537 $ 5,608 $ — The fair values of investments in the PNMR Master Trust are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNMR Master Trust Cash and cash equivalents $ 20,120 $ 20,120 $ — $ — Equity securities: Corporate stocks, common 54,270 54,270 — — Corporate stocks, preferred 874 — 874 — Mutual funds and other 143,517 — 143,517 — — — — — Fixed income securities: U.S. government 84,459 80,482 3,977 — International government 5,721 — 5,721 — Municipals 9,558 — 9,558 — Corporate and other 139,554 (50 ) 139,283 321 Total investments categorized within fair value hierarchy 458,073 $ 154,822 $ 302,930 $ 321 Uncategorized investments: Private equity funds 18,021 Hedge funds 45,589 Real estate funds 22,642 $ 544,325 December 31, 2017 PNMR Master Trust Cash and cash equivalents $ 7,697 $ 7,697 $ — $ — Equity securities: International 42,048 — 42,048 — Domestic value 37,026 37,026 — — Domestic growth 19,136 19,136 — — Other funds 25,099 — 25,099 — Fixed income securities: Corporate 215,535 — 215,323 212 U.S. Government 117,572 91,603 25,969 — Municipals 11,438 — 11,438 — Other funds 65,220 — 65,220 — Total investments categorized within fair value hierarchy 540,771 $ 155,462 $ 385,097 $ 212 Uncategorized investments: Private equity funds 22,281 Hedge funds 45,615 Real estate funds 17,132 $ 625,799 A reconciliation of the changes in Level 3 fair value measurements is as follows: Fixed Income - Corporate PNMR Master Trust PNM Pension TNMP Pension Total Master Trust (In thousands) Balance at December 31, 2016 $ 352 $ 38 $ 390 Actual return on assets sold during the period 1 — 1 Actual return on assets still held at period end (7 ) (1 ) (8 ) Purchases 92 10 102 Sales (247 ) (26 ) (273 ) Balance at December 31, 2017 191 21 212 Actual return on assets sold during the period (7 ) (1 ) (8 ) Actual return on assets still held at period end (1 ) — (1 ) Purchases 192 23 215 Sales (87 ) (10 ) (97 ) Balance at December 31, 2018 $ 288 $ 33 $ 321 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 operation and maintenance and capacity charges in addition to variable operation and maintenance charges under this PPA. For the years ended December 31, 2018 , 2017 , and 2016 , PNM paid $19.6 million , $19.6 million , and $19.3 million for fixed charges and $1.4 million , $1.3 million , and $1.1 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 its obligations and creditors of Valencia do not have any recourse against PNM’s assets. During the term of the PPA, PNM has the option, under certain conditions, 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 50% of book value reduced by related indebtedness or 50% of fair market value. PNM sources fuel for the plant, controls when the facility operates through its dispatch, and receives the entire output of the plant, which factors directly and significantly impact the economic performance of Valencia. Therefore, 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. Accordingly, the assets, liabilities, operating expenses, and cash flows of Valencia are included in the Consolidated Financial Statements of PNM although PNM has no legal ownership interest or voting control of the VIE. The assets and liabilities of Valencia set forth below are immaterial to PNM and, therefore, not shown separately on the 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 Year Ended December 31, 2018 2017 2016 (In thousands) Operating revenues $ 21,025 $ 20,887 $ 20,371 Operating expenses (5,913 ) (5,870 ) (5,852 ) Earnings attributable to non-controlling interest $ 15,112 $ 15,017 $ 14,519 Financial Position December 31, 2018 2017 (In thousands) Current assets $ 2,684 $ 2,688 Net property, plant and equipment 62,066 64,109 Total assets 64,750 66,797 Current liabilities 538 602 Owners’ equity – non-controlling interest $ 64,212 $ 66,195 Westmoreland San Juan LLC (“WSJ”) and SJCC As discussed in the subheading Coal Supply in Note 16, PNM purchases coal for SJGS from SJCC under a coal supply agreement (“SJGS CSA”). That section includes information on the acquisition of SJCC by WSJ, a subsidiary of Westmoreland Coal Company (“Westmoreland”), on January 31, 2016, as well as the $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 $30.3 million in letters of credit under the JPM LOC 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 letters 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 have been subject to possible loss in the event of a default by WSJ under the Westmoreland Loan or could be subject to loss if performance is required under the letter of credit support. Principal payments under the Westmoreland Loan began on August 1, 2016 and were required quarterly thereafter. Interest was also paid quarterly beginning on May 3, 2016. As discussed in Note 16, the full principal outstanding under the Westmoreland Loan of $50.1 million was repaid on May 22, 2018. NM Capital used a portion of the proceeds to repay all remaining amounts owed under the BTMU Term Loan. These payments effectively terminated the loan agreements and PNMR’s guarantee of NM Capital’s obligations under the BTMU Term Loan agreement. The Westmoreland Loan was secured by the assets of and the equity interests in SJCC. PNMR considers the possibility of loss under the letters 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 SJGS CSA. Also, much of the mine reclamation activities will not be performed until after the expiration of the SJGS CSA. In addition, each of the SJGS participants has established and funds a trust to meet its future reclamation obligations. On May 21, 2018, Westmoreland filed a Current Report on Form 8-K with the SEC indicating it had obtained a new credit agreement with certain of its existing creditors that provided Westmoreland with additional financing. In the May 21, 2018 Form 8-K, Westmoreland indicated that “A portion of the proceeds of the Financing have been used to refinance in full the Company’s and its subsidiaries’ existing asset-based revolving credit facilities and Westmoreland San Juan, LLC’s existing term loan facility.” As mentioned above, the Westmoreland Loan was repaid in full in May 2018. On October 9, 2018, Westmoreland filed a Current Report on Form 8-K with the SEC announcing it had filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. In the October 9, 2018 Form 8-K, Westmoreland indicated that it has agreed to terms with its secured creditors that will allow it to fund its normal course operations and that will allow it to continue to serve its customers during the course of the bankruptcy case (Note 16). On February 28, 2019, the bankruptcy court approved Westmoreland’s plan providing for the sale of Westmoreland’s core assets, which includes the San Juan mine, and the assignment and assumption of related agreements. It is anticipated that the sale process will be completed by April 2019. If the sale process is successful and the PNMR and PNM agreements are assumed by and assigned to the purchaser, PNMR may be asked to amend the letters of credit supporting the reclamation bonds to take into account the transfer of the SJCC assets to the purchaser or to cause replacement letters of credit. If the sale process is not successful or the PNMR and PNM agreements are not assumed by and assigned to the purchaser, the coal supply for SJGS and letters of credit supporting the reclamation obligations at the San Juan mine could be negatively impacted. PNM is unable to predict the outcome of this matter. 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 were the typical protective rights of a lender, but did not give NM Capital any oversight over mining operations. 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. PNM’s involvement through the SJGS 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 SJCC. The SJGS 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 letter of credit support constitute PNMR’s maximum exposure to loss from the VIEs at December 31, 2018. PVNGS Leases PNM leased portions of its interests in Units 1 and 2 of PVNGS under leases, 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. See Note 8 for additional information regarding the leases and actions PNM has taken with respect to its renewal and purchase options. Each of the lease agreements was with a different trust whose beneficial owners were five different institutional investors. 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 interests in the trusts. 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 purchased the assets underlying the other three Unit 2 leases. See Note 17 for information concerning the NMPRC’s treatment of the purchased assets and extended leases in PNM’s NM 2015 Rate Case. See Note 8 for a discussion of PNM’s option to purchase or return the extended leases at the end of their current terms. PNM is only obligated to make payments to the trusts for the scheduled semi-annual lease payments and 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 Consolidated Balance Sheets related to the trusts other than accrued lease payments of $8.3 million at December 31, 2018 and 2017 , which are included in other current liabilities on the Consolidated Balance Sheets. See discussion of leases under New Accounting Pronouncements in Note 1. Prior to their exercise or expiration, the fixed rate renewal options were considered to be variable interests in the trusts and resulted in the trusts being considered variable interest entities under GAAP. Upon execution of documents establishing terms of the asset purchases or lease extensions, the fixed rate renewal options ceased to exist as did PNM’s variable interest in the trusts. 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. The significant factors considered in reaching this conclusion were: the periods covered by fixed price renewal options were significantly shorter than the anticipated remaining useful lives of the assets since the operating licenses for the plants were extended for 20 years through 2045 for Unit 1 and 2046 for Unit 2 ; PNM’s only financial obligation to the trusts is to make the fixed lease payments and the payments do not vary based on the output of the plants or their performance; during the lease terms, the economic performance of the trusts is substantially fixed due to the fixed lease payments; PNM is only one of several participants in PVNGS and is not the operating agent for the plants, so does not significantly influence the day-to-day operations of the plants; the operations of the plants, including plans for their decommissioning, are highly regulated by the NRC, leaving little room for the participants to operate the plants in a manner that impacts the economic performance of the trusts; the economic performance of the trusts at the end of the lease terms is dependent upon the fair value and remaining lives of the plants at that time, which are determined by factors such as power prices, outlook for nuclear power, and the impacts of potential carbon legislation or regulation, all which are outside of PNM’s control; and, while PNM had some benefit from its renewal options, the vast majority of the value at the end of the leases would accrue to the beneficial owners of the trusts. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits 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. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of the periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Participants in the PNM Plans include eligible employees and retirees of PNMR and PNM. Participants in the TNMP Plans include eligible employees and retirees of TNMP. The PNM pension plan was frozen at the end of 1997 with regard to new participants, salary levels, and benefits. Through December 31, 2007, additional credited service could be accrued under the PNM pension plan up to a limit determined by age and service. The TNMP pension plan was frozen at December 31, 2005 with regard to new participants, salary levels, and benefits. GAAP requires a plan sponsor to (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. GAAP requires unrecognized prior service costs and unrecognized gains or losses to be recorded in AOCI and subsequently amortized. The amortization of these incurred costs is included as pension and postretirement benefit periodic cost or income in subsequent years. To the extent the amortization of these items will ultimately be recovered or returned through future rates, PNM and TNMP record the costs as a regulatory asset or regulatory liability. The Company maintains trust funds for the pension and OPEB plans from which benefits are paid to eligible employees and retirees. The Company’s funding policy is to make contributions to the trusts, as determined by an independent actuary, that comply with minimum guidelines of the Employee Retirement Income Security Act and the Internal Revenue Code. Information concerning the investments is contained in Note 9. The Company has in place a policy that defines the investment objectives, establishes performance goals of asset managers, and provides procedures for the manner in which investments are to be reviewed. The plans implement investment strategies to achieve the following objectives: • Implement investment strategies commensurate with the risk that the Corporate Investment Committee deems appropriate to meet the obligations of the pension plans and OPEB plans, minimize the volatility of expense, and account for contingencies • Transition asset mix over the long-term to a higher proportion of high quality fixed income investments as the plans’ funded statuses improve Management is responsible for the determination of the asset target mix and the expected rate of return. The target asset allocations are determined based on consultations with external investment advisors. The expected long-term rate of return on pension and postretirement plan assets is calculated on the market-related value of assets. GAAP requires that actual gains and losses on pension and OPEB plan assets be recognized in the market-related value of assets equally over a period of not more than five years, which reduces year-to-year volatility. For the PNM Plans and TNMP Plans, the market-related value of assets is equal to the prior year’s market-related value of assets adjusted for contributions, benefit payments and investment gains and losses that are within a corridor of plus or minus 4.0% around the expected return on market value. Gains and losses that are outside the corridor are amortized over five years. In March 2017, the FASB issued Accounting Standards Update 2017-07 - Compensation - Retirement Benefits (Topic 715) to improve the presentation of net periodic pension and other postretirement benefit costs. Prior to ASU 2017-07, the Company presented all of its net periodic benefit costs, net of amounts capitalized to construction and other accounts, as administrative and general expenses on its statements of earnings. ASU 2017-07 requires the service cost component of net benefit costs be presented in the same line item or items as employees’ compensation. The other components of net periodic benefit cost (the “non-service cost components”) are required to be presented separately from the service cost component and outside of operating income. ASU 2017-07 also limits capitalization of net periodic benefit costs to only the service cost component. ASU 2017-07 requires retrospective presentation of the service and non-service cost components of net periodic benefit costs in the income statement and prospective application regarding the capitalization of only the service cost component of net periodic benefit costs. The Company adopted ASU 2017-07 as of January 1, 2018, its required effective date. In accordance with the standard, the PNM and PNMR Consolidated Statements of Earnings reflect a reclassification from administrative and general expenses to other (deductions) for the non-service cost components of net periodic benefit costs in the amount of $8.6 million and $6.7 million , net of amounts capitalized prior to the adoption of the standard, in the years ended December 31, 2017 and 2016. The non-service components of TNMP’s net periodic benefit costs in 2017 and 2016 were insignificant. The Company believes PNM and TNMP can continue to capitalize the non-service cost components of net periodic benefit costs as regulatory assets and liabilities to the extent attributable to regulated operations. During the year ended December 31, 2018, PNM recorded $4.3 million of non-service cost as other (deductions), which is net of $0.4 million recorded as regulatory assets, and TNMP recorded $0.3 million of non-service cost to other income, which is net of less than $0.1 million recorded as regulatory liabilities. See New Accounting Pronouncements in Note 1 regarding updates to disclosure requirements that will be effective in future periods. Pension Plans For defined benefit pension plans, including the executive retirement plans, the PBO represents the actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered prior to that date using assumptions regarding future compensation levels. The ABO represents the PBO without considering future compensation levels. Since the pension plans are frozen, the PBO and ABO are equal. The following table presents information about the PBO, fair value of plan assets, and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) PBO at beginning of year $ 623,983 $ 621,751 $ 68,423 $ 67,061 Service cost — — — — Interest cost 24,270 26,908 2,625 2,887 Actuarial (gain) loss (41,025 ) 26,298 (5,216 ) 3,050 Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) PBO at end of year 564,258 623,983 60,587 68,423 Fair value of plan assets at beginning of year 562,016 543,601 63,499 60,624 Actual return on plan assets (29,068 ) 69,389 (3,180 ) 7,450 Employer contributions — — — — Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) Fair value of plan assets at end of year 489,978 562,016 55,074 63,499 Funded status – asset (liability) for pension benefits $ (74,280 ) $ (61,967 ) $ (5,513 ) $ (4,924 ) Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (in thousands) Discount rates $ (34,769 ) $ 27,547 $ (4,278 ) $ 3,528 Demographic experience 431 (1,249 ) (301 ) (517 ) Mortality rate (6,966 ) — (705 ) — Other assumptions and experience 279 — 68 39 $ (41,025 ) $ 26,298 $ (5,216 ) $ 3,050 The following table presents pre-tax information about prior service cost and net actuarial (gain) loss in AOCI as of December 31, 2018 . PNM TNMP December 31, 2018 December 31, 2018 Prior service cost Net actuarial (gain) loss Net actuarial (gain) loss (In thousands) Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year $ (1,045 ) $ 148,526 $ — Experience (gain) loss — 22,728 1,926 Regulatory asset (liability) adjustment 1,045 (13,571 ) (1,926 ) Amortization recognized in net periodic benefit cost (income) — (7,409 ) — Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year $ — $ 150,274 $ — Amortization expected to be recognized in 2019 $ — $ 7,270 $ — The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ — $ — $ — Interest cost 24,270 26,908 30,307 Expected return on plan assets (34,686 ) (33,803 ) (35,416 ) Amortization of net (gain) loss 16,348 16,006 13,820 Amortization of prior service cost (965 ) (965 ) (965 ) Net periodic benefit cost $ 4,967 $ 8,146 $ 7,746 TNMP Service cost $ — $ — $ — Interest cost 2,625 2,887 3,304 Expected return on plan assets (3,963 ) (3,779 ) (3,943 ) Amortization of net (gain) loss 1,088 923 700 Amortization of prior service cost — — — Net periodic benefit cost (income) $ (250 ) $ 31 $ 61 The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 PBO 4.65 % 4.05 % 4.51 % Discount rate for determining net periodic benefit cost (income) 4.05 % 4.51 % 5.29 % Expected return on plan assets 6.54 % 6.40 % 6.50 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 4.63 % 4.01 % 4.49 % Discount rate for determining net periodic benefit cost (income) 4.01 % 4.49 % 5.39 % Expected return on plan assets 6.57 % 6.40 % 6.50 % Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the PBO was determined based on a review of long-term high-grade bonds and management’s expectations. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the PBO. Factors that are considered include, but are not limited to, historic returns on plan assets, current market information on long-term returns (e.g., long-term bond rates) and current and target asset allocations between asset categories. If all other factors were to remain unchanged, a 1% decrease in the expected long-term rate of return would cause PNM’s and TNMP’s 2019 net periodic benefit cost to increase $5.0 million and $0.6 million (analogous changes would result from a 1% increase). The actual rate of return for the PNM and TNMP pension plans was (5.4)% and (5.2)% for the year ended December 31, 2018 . The Company’s long-term pension investment strategy is to invest in assets whose interest rate sensitivity is correlated with the pension liability. The Company has chosen to implement this strategy, known as Liability Driven Investing (“LDI”), by increasing the liability matching investments as the funded status of the pension plans improve. These liability matching investments are currently fixed income securities. Beginning in 2018, the pension plans targeted asset allocation was 26% equities, 54% fixed income, and 20% alternative investments. The Company modified the LDI strategy by decreasing the liability matching fixed income investments portfolio from 65% to 54% in 2018. Equity investments are primarily in domestic securities that include large, mid, and small capitalization companies. The pension plans have a 7% targeted allocation to equities of companies domiciled primarily in developed countries outside of the United States. The equity investments category includes actively managed international and domestic equity securities that are benchmarked against a variety of style indices. Fixed income investments are primarily corporate bonds of companies from diversified industries and government securities. Alternative investments include investments in hedge funds, real estate funds, and private equity funds. The hedge funds and private equity funds are structured as multi-manager multi-strategy fund of funds to achieve a diversified position in these asset classes. The hedge funds pursue various absolute return strategies such as relative value, long-short equity, and event driven. Private equity fund strategies include mezzanine financing, buy-outs, and venture capital. The real estate investments are commingled real estate portfolios that invest in a diversified portfolio of assets including commercial property and multi-family housing. See Note 9 for fair value information concerning assets held by the pension plans. The following pension benefit payments are expected to be paid: PNM TNMP (In thousands) 2019 $ 46,125 $ 5,137 2020 45,595 5,065 2021 44,804 5,005 2022 44,000 4,886 2023 43,066 4,667 2024 - 2028 199,157 21,075 Based on current law, the Company does not expect to make any cash contributions to the pension plans in 2019-2021 but expects to contribute $1.3 million and zero to the PNM and TNMP pension plans in 2022. These expectations were developed using current funding assumptions with discount rates of 4.2% to 4.6% . Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rates. PNM and TNMP may make additional contributions at their discretion. Other Postretirement Benefit Plans For postretirement benefit plans, the APBO is the actuarial present value of all future benefits attributed under the terms of the postretirement benefit plan to employee service rendered to date. The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) APBO at beginning of year $ 89,897 $ 94,269 $ 12,279 $ 12,830 Service cost 83 96 134 143 Interest cost 3,439 4,025 477 556 Participant contributions 2,390 3,069 174 379 Actuarial (gain) loss (12,206 ) (1,601 ) (2,213 ) (381 ) Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) APBO at end of year 75,305 89,897 10,064 12,279 Fair value of plan assets at beginning of year 80,356 72,694 10,002 8,544 Actual return on plan assets (7,669 ) 14,222 (988 ) 1,642 Employer contributions 2,924 332 343 685 Participant contributions 2,390 3,069 174 379 Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) Fair value of plan assets at end of year 69,703 80,356 8,744 10,002 Funded status – asset (liability) $ (5,602 ) $ (9,541 ) $ (1,320 ) $ (2,277 ) Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (in thousands) Discount rates $ (4,076 ) $ 3,536 $ (710 ) $ 613 Claims, contributions, and demographic experience (3,174 ) (5,845 ) 72 (994 ) Assumed participation rate (4,040 ) — (1,461 ) — Mortality rate (916 ) — (114 ) — Medical benefits — 1,425 — — Dental trend assumption — (717 ) — — $ (12,206 ) $ (1,601 ) $ (2,213 ) $ (381 ) In the year ended December 31, 2018 , actuarial losses of $0.9 million were recorded as adjustments to regulatory assets for the PNM OPEB plan. For the TNMP OPEB plan, actuarial gains of $1.6 million were recorded as adjustments to regulatory liabilities. The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ 83 $ 96 $ 140 Interest cost 3,439 4,025 4,346 Expected return on plan assets (5,414 ) (5,230 ) (5,483 ) Amortization of net (gain) loss 2,354 3,682 1,145 Amortization of prior service credit (1,664 ) (1,663 ) (30 ) Net periodic benefit cost (income) $ (1,202 ) $ 910 $ 118 TNMP Service cost $ 134 $ 143 $ 186 Interest cost 477 556 677 Expected return on plan assets (542 ) (456 ) (490 ) Amortization of net (gain) loss (227 ) (79 ) (40 ) Amortization of prior service cost — — — Net periodic benefit cost (income) $ (158 ) $ 164 $ 333 The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 APBO 4.63 % 4.00 % 4.47 % Discount rate for determining net periodic benefit cost 4.00 % 4.47 % 5.34 % Expected return on plan assets 7.42 % 7.50 % 7.70 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 APBO 4.63 % 4.00 % 4.47 % Discount rate for determining net periodic benefit cost 4.00 % 4.47 % 5.34 % Expected return on plan assets 5.86 % 5.40 % 5.70 % Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the APBO was determined based on a review of long-term high-grade bonds and management’s expectations. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the APBO. Factors that are considered include, but are not limited to, historic returns on plan assets, current market information on long-term returns (e.g., long-term bond rates), and current and target asset allocations between asset categories. If all other factors were to remain unchanged, a 1% decrease in the expected long-term rate of return would cause PNM’s and TNMP’s 2019 net periodic benefit cost to increase $0.7 million and $0.1 million (analogous changes would result from a 1% increase). The actual rate of return for the PNM and TNMP OPEB plans was (9.7)% and (10.0)% for the year ended December 31, 2018 . The following table shows the assumed health care cost trend rates for the PNM OPEB plan: PNM December 31, 2018 2017 Health care cost trend rate assumed for next year 6.5 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2026 2024 The following table shows the impact of a one-percentage-point change in assumed health care cost trend rates: PNM 1-Percentage- Point Increase 1-Percentage- Point Decrease (In thousands) Effect on total of service and interest cost $ 60 $ 100 Effect on APBO $ 1,158 $ (1,529 ) TNMP’s exposure to cost increases in the OPEB plan is minimized by a provision that limits TNMP’s share of costs under the plan. Costs of the plan in excess of the limit, which was reached at the end of 2001, are wholly borne by the participants. As a result, a one-percentage-point change in assumed health care cost trend rates would have no effect on either the net periodic expense or the year-end APBO. Effective January 1, 2018, the PNM OPEB plan was amended to limit the annual increase in the Company’s costs to 5% thereby reducing the impact of an increase in the assumed rates. Increases in excess of the limit are born by the PNM OPEB plan participants. The Company’s OPEB plans invest in a portfolio that is diversified by asset class and style strategies. The OPEB plans generally use the same pension fixed income and equity investment managers and utilize the same overall investment strategy as described above for the pension plans, except there is no allocation to alternative investments. The OPEB plans have a target asset allocation of 70% equities and 30% fixed income. See Note 9 for fair value information concerning assets held by the other postretirement benefit plans. The following OPEB payments, which reflect expected future service and are net of participant contributions, are expected to be paid: PNM TNMP (In thousands) 2019 $ 7,365 $ 629 2020 7,309 653 2021 7,029 674 2022 6,653 699 2023 6,351 714 2024 - 2028 26,678 3,558 PNM and TNMP do not expect to make contributions to the OPEB plans for 2019-2023. Executive Retirement Programs For the executive retirement programs, the following table presents information about the PBO and funded status of the plans: PNM TNMP Year Ended Year Ended 2018 2017 2018 2017 (In thousands) PBO at beginning of year $ 16,117 $ 16,212 $ 771 $ 787 Service cost — — — — Interest cost 622 697 29 33 Actuarial (gain) loss (508 ) 674 (4 ) 44 Benefits paid (1,505 ) (1,466 ) (94 ) (93 ) PBO at end of year – funded status 14,726 16,117 702 771 Less current liability 1,627 1,501 141 93 Non-current liability $ 13,099 $ 14,616 $ 561 $ 678 The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2018 . December 31, 2018 PNM TNMP (In thousands) Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year $ 2,450 $ — Experience (gain) loss (508 ) 4 Regulatory asset (liability) adjustment 295 (4 ) Amortization recognized in net periodic benefit cost (income) (151 ) — Amount in AOCI not yet recognized in net periodic benefit cost at end of year $ 2,086 $ — Amortization expected to be recognized in 2019 $ 133 $ — The following table presents the components of net periodic benefit cost: Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ — $ — $ — Interest cost 622 697 812 Amortization of net (gain) loss 359 313 256 Amortization of prior service cost — — — Net periodic benefit cost $ 981 $ 1,010 $ 1,068 TNMP Service cost $ — $ — $ — Interest cost 29 33 40 Amortization of net (gain) loss 15 9 2 Amortization of prior service cost — — — Net periodic benefit cost $ 44 $ 42 $ 42 The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 PBO 4.66 % 4.05 % 4.51 % Discount rate for determining net periodic benefit cost 4.05 % 4.51 % 5.29 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 4.63 % 4.01 % 4.49 % Discount rate for determining net periodic benefit cost 4.01 % 4.49 % 5.39 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the PBO was determined based on a review of long-term high-grade bonds and management’s expectations. The impacts of changes in assumptions or experience were not significant. The following executive retirement plan payments, which reflect expected future service, are expected: PNM TNMP (In thousands) 2019 $ 1,627 $ 141 2020 1,463 91 2021 1,427 88 2022 1,385 84 2023 1,337 79 2024 - 2028 5,792 301 Other Retirement Plans PNMR sponsors a 401(k) defined contribution plan for eligible employees, including those of its subsidiaries. PNMR’s contributions to the 401(k) plan consist of a discretionary matching contribution equal to 75% of the first 6% of eligible compensation contributed by the employee on a before-tax basis. PNMR also makes a non-matching contribution ranging from 3% to 10% of eligible compensation based on the eligible employee’s age. PNMR also provides executive deferred compensation benefits through an unfunded, non-qualified plan. The purpose of this plan is to permit certain key employees of PNMR who participate in the 401(k) defined contribution plan to defer compensation and receive credits without reference to the certain limitations on contributions. A summary of expenses for these other retirement plans is as follows: Year Ended December 31, 2018 2017 2016 (In thousands) PNMR 401(k) plan $ 16,677 $ 16,452 $ 17,762 Non-qualified plan $ 865 $ 3,702 $ 2,017 PNM 401(k) plan $ 12,052 $ 12,120 $ 13,397 Non-qualified plan $ 621 $ 2,834 $ 1,535 TNMP 401(k) plan $ 4,625 $ 4,332 $ 4,365 Non-qualified plan $ 244 $ 868 $ 482 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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. The Company has not awarded stock options since 2010. Certain restricted stock awards are subject to achieving performance or market targets. Other awards of restricted stock are only subject to time vesting requirements. Performance Equity Plan The PEP provides for the granting of non-qualified stock options, restricted stock rights, performance shares, performance units, and stock appreciation rights to officers, key employees, and non-employee members of the Board. 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. Beginning with 2017 awards, the vesting period for awards of restricted stock to non-employee members of the Board is one year. The total number of shares of PNMR common stock subject to all awards under the PEP, as approved by PNMR’s shareholders in May 2014, may not exceed 13.5 million shares, subject to adjustment and certain share counting rules set forth in the PEP. This current share pool is charged five shares for each share subject to restricted stock or other full value award. Re-pricing of stock options is prohibited unless specific shareholder approval is obtained. Source of Shares The source of shares for exercised stock options and vested restricted stock is shares acquired on the open market by an independent agent, rather than newly issued shares. Accounting for Stock Awards The stock-based compensation expense related to restricted stock awards without performance or market conditions 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 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. Total compensation expense for stock-based payment arrangements recognized by PNMR for the years ended December 31, 2018 , 2017 , and 2016 was $7.1 million , $6.2 million , and $5.6 million . Stock compensation expense of $4.9 million , $4.4 million , and $4.2 million was charged to PNM and $2.2 million , $1.8 million , and $1.5 million was charged to TNMP. At December 31, 2018 , PNMR had unrecognized compensation expense related to stock awards of $4.0 million , which is expected to be recognized over an average of 1.45 years. PNMR receives a tax deduction for certain stock option exercises during the period the options are exercised, generally for the excess of the price at which the options are sold over the exercise prices of the options, and a tax deduction for the value of restricted stock at the vesting date. The FASB issued Accounting Standards Update 2016-09 – Compensation –- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to simplify several aspects of the accounting for share-based payment transactions and eliminate diversity in practice. Prior to ASU 2016-09, benefits resulting from income tax deductions in excess of compensation cost recognized under GAAP for vested restricted stock and on exercised stock options (collectively, “excess tax benefits”) were recorded to equity provided the excess tax benefits reduced income taxes payable. Deficiencies resulting from tax deductions related to stock awards that were below recognized compensation cost upon vesting and on canceled stock options were recorded to equity. PNMR had not recorded excess tax benefits to equity since 2009 because it is in a net operating loss position for income tax purposes. ASU 2016-09 requires that all excess tax benefits and deficiencies be recorded to tax expense and classified as cash flows from operating activities effective January 1, 2017. As required by ASU 2016-09, PNMR recorded the excess tax benefits that were not recognized in prior years, due to its net operating loss position, as a cumulative effect adjustment of $10.4 million on January 1, 2017, increasing retained earnings and decreasing accumulated deferred income taxes on the Consolidated Balance Sheets. For the year ended December 31, 2018, PNMR recorded excess tax benefits of $1.4 million of which $1.0 million was allocated to PNM and $0.4 million was allocated to TNMP. For the year ended December 31, 2017, PNMR recorded excess tax benefits of $2.3 million of which $1.7 million was allocated to PNM and $0.6 million was allocated to TNMP. TNMP used excess tax benefits to reduce income taxes payable and the benefit was reflected in cash flows from operating activities. The benefit of excess tax benefits at PNM and PNMR will be reflected in operating cash flows when they reduce income taxes payable. 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: Year Ended December 31, Restricted Shares and Performance-Based Shares 2018 2017 2016 Expected quarterly dividends per share $ 0.2650 $ 0.2425 $ 0.2200 Risk-free interest rate 2.38 % 1.50 % 0.94 % Market-Based Shares Dividend yield 2.96 % 2.67 % 2.74 % Expected volatility 19.12 % 20.80 % 20.44 % Risk-free interest rate 2.36 % 1.54 % 0.97 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares, and stock options: Restricted Stock Stock Options Shares Weighted-Average Grant Date Fair Value Shares Weighted Average Exercise Price Outstanding at December 31, 2017 189,045 $ 31.11 193,441 $ 9.98 Granted 221,062 $ 29.65 — $ — Exercised (237,402 ) $ 28.46 (112,441 ) $ 8.56 Forfeited (6,054 ) $ 31.37 — $ — Expired — $ — — $ — Outstanding at December 31, 2018 166,651 $ 32.93 81,000 $ 11.94 PNMR’s current stock-based compensation program provides for performance and market targets through 2021. Included as granted and as exercised in the above table are 97,697 previously awarded shares that were earned for the 2015 through 2017 performance measurement period and ratified by the Board in February 2018 (based upon achieving market targets at “target” levels weighted at 40% , and performance targets at below “target” levels weighted at 60% ). In February 2019, the Board approved amendments to exclude certain impacts of the Tax Act on performance metrics for the performance periods ending in 2018 and 2019. These amendments did not impact the Company’s calculation of grant date fair values under the plans but did increase actual achievement levels for the performance period ending in 2018 from below “threshold” levels to below “target” levels and anticipated achievement levels for the performance period ending in 2019 from below “target” levels to the “maximum” level. As a result of these amendments, the Company recorded additional pre-tax expense of $1.0 million , of which $0.7 million was allocated to PNM and $0.3 million was allocated to TNMP. Excluded from the above table are 47,279 previously awarded shares that were earned for the 2016 through 2018 performance measurement period and ratified by the Board in February 2019 (based upon achieving market targets at below “threshold” levels, weighted at 40% , and performance targets at above “target” levels, together weighted at 60% ), as well as maximums of 130,302 and 146,941 shares for the three -year performance periods ending in 2019 and 2020 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 was to receive 135,000 shares of PNMR’s common stock if PNMR met specific market targets at the end of 2016 and she remained an employee of the Company. The retention award was made under the PEP and was approved by the Board on February 28, 2012. Under the agreement, she received 35,000 of the total shares in 2015 since PNMR achieved the specified market targets at the end of 2014. The specified market target was achieved at the end of 2016 and the Board ratified her receiving the remaining 100,000 shares, in February 2017. 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 met specified performance targets at the end of 2016 and 2017 and he remained an employee of the Company. The retention award was made under the PEP and was approved by the Board on December 9, 2014. The specified performance target was achieved at the end of 2016 and the Board ratified him receiving $100,000 of PNMR common stock in February 2017 based on a market per share value of $36.30 on the grant date of March 3, 2017, or 2,754 shares. Similarly, if PNMR achieved the specified performance target for the period from January 1, 2015 through December 31, 2017, he was to receive $275,000 of PNMR common stock based on the market value per share on the grant date in early 2018. The specified performance target was achieved at the end of 2017 and the Board ratified him receiving $275,000 of PNMR common stock in February 2018 based on a market value per share of $35.85 on the grant date of March 2, 2018, or 7,670 shares, which are included in the above table. In 2015, the Company entered into an additional retention award agreement with its Chairman, President, and Chief Executive Officer under which she would receive a total 53,859 shares of PNMR’s common stock if PNMR meets certain performance targets at the end of 2017 and 2019 and she remains an employee of the Company. The retention award was made under the PEP and was approved by the Board on February 26, 2015. The specified performance target was achieved at the end of 2017 and the Board ratified her receiving 17,953 shares in February 2018, which are included in the above table. The above table does not include any restricted stock shares that remain unvested under this retention award agreement. At December 31, 2018 , the aggregate intrinsic value of stock options outstanding, all of which are exercisable, was $2.4 million with a weighted-average remaining contract life of 1.04 years. At December 31, 2018 , 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: Year Ended December 31, Restricted Stock 2018 2017 2016 Weighted-average grant date fair value $ 29.65 $ 23.06 $ 26.49 Total fair value of restricted shares that vested (in thousands) $ 8,558 $ 5,747 $ 5,079 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) $ 3,117 $ 2,234 $ 1,242 |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The operations of PNM and TNMP are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to its regulated operations. Regulatory assets represent probable future recovery of previously incurred costs that will be collected from customers through the ratemaking process. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are to be credited to customers through the ratemaking process. Regulatory assets and liabilities reflected in the Consolidated Balance Sheets are presented below. PNM TNMP December 31, December 31, 2018 2017 2018 2017 Assets: (In thousands) Current: FPPAC $ 4,104 $ 363 $ — $ — Energy efficiency costs 430 1,776 — 794 4,534 2,139 — 794 Non-Current: CTC, including carrying charges — — 17,744 26,998 Coal mine reclamation costs 19,915 16,462 — — Deferred income taxes 63,369 59,220 9,309 9,621 Loss on reacquired debt 21,085 22,744 31,510 32,808 Pension and OPEB (1) 227,400 222,774 26,972 26,153 Shutdown of SJGS Units 2 and 3 119,785 125,539 — — Hurricane recovery costs (2) — — 1,551 6,640 AMS surcharge — — 31,435 27,903 AMS retirement and other costs — — 16,489 8,948 Other 9,349 12,500 3,017 2,362 460,903 459,239 138,027 141,433 Total regulatory assets $ 465,437 $ 461,378 $ 138,027 $ 142,227 PNM TNMP December 31, December 31, 2018 2017 2018 2017 Liabilities: (In thousands) Current: Renewable energy rider $ (4,475 ) $ (779 ) $ — $ — Other (1,500 ) (5 ) (3,471 ) (1,525 ) (5,975 ) (784 ) (3,471 ) (1,525 ) Non-Current: Cost of removal (263,597 ) (256,493 ) (29,637 ) (26,541 ) Deferred income taxes (407,978 ) (445,390 ) (143,745 ) (148,455 ) PVNGS ARO (18,397 ) (24,889 ) — — Renewable energy tax benefits (20,226 ) (21,383 ) — — Nuclear spent fuel reimbursements — (5,518 ) — — Accelerated depreciation SNCRs (3,690 ) — — — Pension and OPEB (3) — — (3,940 ) (3,442 ) Other (83 ) (768 ) (136 ) (699 ) (713,971 ) (754,441 ) (177,458 ) (179,137 ) Total regulatory liabilities $ (719,946 ) $ (755,225 ) $ (180,929 ) $ (180,662 ) (1) Includes $0.4 million for certain pension costs as described in Note 11 (2) Amount shown is net of amounts owed under the PUCT’s January 25, 2018 order as described in Note 17 (3) Includes less than $0.1 million of amounts owed to customers for certain pension costs as described in Note 11 The Company’s regulatory assets and regulatory liabilities are reflected in rates charged to customers or have been addressed in a regulatory proceeding. The Company does not receive or pay a rate of return on the following regulatory assets and regulatory liabilities (and their remaining amortization periods): coal mine reclamation costs (through 2020); deferred income taxes (over the remaining life of the taxable item, up to the remaining life of utility plant); pension and OPEB costs (through 2033); and PVNGS ARO (to be determined in a future regulatory proceeding). The Company is permitted, under rate regulation, to accrue and record a regulatory liability for the estimated cost of removal and salvage associated with certain of its assets through depreciation expense. Under GAAP, actuarial losses and prior service costs for pension plans are required to be recorded in AOCI; however, to the extent authorized for recovery through the regulatory process these amounts are recorded as regulatory assets or liabilities. Based on prior regulatory approvals, the amortization of these amounts will be included in the Company’s rates. Based on a current evaluation of the various factors and conditions that are expected to impact future cost recovery, the Company believes that future recovery of its regulatory assets is probable. |
Construction Program and Jointl
Construction Program and Jointly-Owned Electric Generating Plants | 12 Months Ended |
Dec. 31, 2018 | |
Construction Program and Jointly-Owned Electric Generating Plants [Abstract] | |
Construction Program and Jointly-Owned Electric Generating Plants | Construction Program and Jointly-Owned Electric Generating Plants PNM is a participant in several jointly-owned power plant projects. The primary operating or participation agreements for the joint projects expire in July 2022 for SJGS, July 2041 for Four Corners, December 2046 for Luna, and November 2047 for PVNGS. PNM’s expenditures for additions to utility plant were $255.6 million in 2018 , including expenditures on jointly-owned projects. TNMP does not participate in the ownership or operation of any generating plants, but incurred expenditures for additions to utility plant of $223.4 million during 2018 . On a consolidated basis, PNMR’s expenditures for additions to utility plant were $501.2 million in 2018 . Joint Projects Under the agreements for the jointly-owned projects, PNM has an undivided interest in each asset and liability of the project and records its pro-rata share of each item in the corresponding asset and liability account on PNM’s Consolidated Balance Sheets. Likewise, PNM records its pro-rata share of each item of operating and maintenance expenses for its jointly-owned plants within the corresponding operating expense account in its Consolidated Statements of Earnings. PNM is responsible for financing its share of the capital and operating costs of the joint projects. At December 31, 2018 , PNM’s interests and investments in jointly-owned generating facilities are: Station (Fuel Type) Plant in Service Accumulated Depreciation (1) Construction Work in Progress Composite Interest (In thousands) SJGS (Coal) (2) $ 814,738 $ (443,517 ) $ 820 66.34 % PVNGS (Nuclear) (3) $ 831,663 $ (365,708 ) $ 39,393 10.20 % Four Corners Units 4 and 5 (Coal) $ 276,960 $ (98,085 ) $ 7,455 13.00 % Luna (Gas) $ 74,813 $ (28,609 ) $ 131 33.33 % (1) Includes cost of removal. (2) In December 2018, PNM submitted an NMPRC required filing indicating that, consistent with the conclusions reached in PNM’s 2017 IRP, PNM’s customers would benefit from the retirement of PNM’s share of SJGS in mid-2022. As of December 31, 2018, PNM impaired $121.8 million of plant in service and $86.8 million of accumulated depreciation on its 132 MW and 65 MW interests in SJGS Unit 4. These amounts are reflected in the table above and as $35.0 million of pre-tax regulatory disallowances and restructuring costs in the Consolidated Statements of Earnings. See Note 16 for additional discussion of the NMPRC’s December 16, 2015 order regarding SJGS’s compliance with the regional haze rules under the CAA and PNM’s December 2018 Compliance Filing. (3) Includes interest in PVNGS Unit 3 , interest in common facilities for all PVNGS units, and owned interests in PVNGS Units 1 and 2 , including improvements. San Juan Generating Station PNM operates and jointly owns SJGS. Effective January 1, 2018, SJGS Unit 1 is owned 50% by PNM and 50% by Tucson and SJGS Unit 4 is owned 77.297% by PNM, including a 12.8% interest held as merchant plant, 8.475% by Farmington, 7.2% by Los Alamos, and 7.028% by UAMPS. See Note 16 for additional information about SJGS, including the shutdown of SJGS Units 2 and 3 in December 2017 and the restructuring of SJGS ownership as well as information on PNM’s December 2018 Compliance Filing. Palo Verde Nuclear Generating Station PNM is a participant in the three units of PVNGS with APS (the operating agent), SRP, EPE, SCE, SCPPA, and The Department of Water and Power of the City of Los Angeles. PNM has a 10.2% undivided interest in PVNGS, with portions of its interests in Units 1 and 2 held under leases. See Note 8 for additional information concerning the PVNGS leases, including PNM’s purchase of the assets underlying certain of the leases in January 2016, PNM’s option to purchase or return certain lease interests that have been extended through 2023 and 2024, and Note 17 for the NMPRC’s treatment of those purchases and lease extensions in the ratemaking process. Operation of each of the three PVNGS units requires an operating license from the NRC. The NRC issued full power operating licenses for Unit 1 in June 1985, Unit 2 in April 1986, and Unit 3 in November 1987. The full power operating licenses were originally for a period of 40 years and authorize APS, as operating agent for PVNGS, to operate the three PVNGS units. In April 2011, the NRC approved extensions in the operating licenses for the plants for 20 years through June 2045 for Unit 1, April 2046 for Unit 2, and November 2047 for Unit 3. In April 2010, APS entered into a Municipal Effluent Purchase and Sale Agreement that provides effluent water rights necessary for cooling purposes at PVNGS through 2050. Four Corners Power Plant PNM is a participant in two units of Four Corners with APS (the operating agent), an affiliate of APS, SRP, and Tucson. PNM has a 13.0% undivided interest in Units 4 and 5 of Four Corners. The Four Corners plant site is located on land within the Navajo Nation and is subject to an easement from the federal government. APS, on behalf of the Four Corners participants, negotiated amendments to an existing agreement with the Navajo Nation, which extends the owners’ right to operate the plant on the site to July 2041. See Note 16 for additional information about Four Corners. Luna Energy Facility Luna is a combined-cycle power plant near Deming, New Mexico. Luna is owned equally by PNM, Tucson, and Samchully Power & Utilities 1, LLC. The operation and maintenance of the facility has been contracted to North American Energy Services. Construction Program The Company anticipates making substantial capital expenditures for the construction and acquisition of utility plant and other property and equipment. An unaudited summary of the budgeted construction expenditures, including expenditures for jointly-owned projects, and nuclear fuel, is as follows: 2019 2020 2021 2022 2023 Total (In millions) PNM $ 333.4 $ 355.6 $ 253.5 $ 222.7 $ 231.8 $ 1,397.0 TNMP 245.4 245.0 245.3 244.9 218.9 1,199.5 Corporate and Other 26.5 25.3 20.3 19.9 20.2 112.2 Total PNMR $ 605.3 $ 625.9 $ 519.1 $ 487.5 $ 470.9 $ 2,708.7 The construction expenditure estimates are under continuing review and subject to ongoing adjustment, as well as to Board review and approval. The above construction expenditures include $61.2 million for 50 MW of new solar facilities included in PNM’s 2018 renewable energy procurement plan and approximately $130 million for an anticipated expansion of PNM’s transmission system. See Note 17. Expenditures for the expansion of PNM’s transmission system are subject to obtaining necessary approvals of the NMPRC. PNM will be required to file CCN applications with the NMPRC to obtain those approvals. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations AROs are recorded based on studies to estimate the amount and timing of future ARO expenditures and reflect underlying assumptions, such as discount rates, estimates of the future costs for decommissioning, and the timing of the removal activities to be performed. Approximately 81% of PNM’s total ARO liabilities are related to nuclear decommissioning of PVNGS. PNM is responsible for all decommissioning obligations related to its entire interest in PVNGS, including portions under lease both during and after termination of the leases. Studies of the decommissioning costs of PVNGS, SJGS, Four Corners, and other facilities are performed periodically and revisions to the ARO liabilities are recorded. Changes in the assumptions underlying the calculations may also require revisions to the estimated AROs when identified. A reconciliation of the ARO liabilities is as follows: PNMR PNM TNMP (In thousands) Liability at December 31, 2015 $ 111,895 $ 111,049 $ 695 Liabilities incurred — — — Liabilities settled (14 ) (14 ) — Accretion expense 9,170 9,098 59 Revisions to estimated cash flows 6,468 6,468 — Liability at December 31, 2016 127,519 126,601 754 Liabilities incurred (1) 1,854 1,853 — Liabilities settled (968 ) (944 ) (24 ) Accretion expense 10,680 10,603 63 Revisions to estimated cash flows 7,594 7,594 — Liability at December 31, 2017 146,679 145,707 793 Liabilities incurred — — — Liabilities settled (192 ) — — Accretion expense 11,482 11,402 67 Revisions to estimated cash flows 705 705 — Liability at December 31, 2018 $ 158,674 $ 157,814 $ 860 (1) Represents the obligation related to the additional ownership interest in SJGS Unit 4 that PNM acquired on December 31, 2017 due to the restructuring of the ownership of SJGS. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Overview There are various claims and lawsuits pending against the Company. In addition, the Company 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 17) proceedings in the normal course of its business. It is not possible at this time for the Company to determine fully the effect of all litigation and other legal and regulatory proceedings on its financial position, results of operations, or cash flows. With respect to some of the items listed below, the Company has determined that a loss is not probable or that, to the extent probable, cannot be reasonably estimated. In some cases, the Company is not able to predict with any degree of certainty the range of possible loss that could be incurred. 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. Commitments and Contingencies Related to the Environment PVNGS Decommissioning Funding The costs of decommissioning a nuclear power plant are substantial. PNM is responsible for all decommissioning obligations related to its entire interest in PVNGS, including portions under lease both during and after termination of the leases. PNM has a program for funding its share of decommissioning costs for PVNGS, including portions held under leases. The nuclear decommissioning funding program is invested in equities and fixed income instruments in qualified and non-qualified trusts. PNM funded $1.3 million , $2.0 million , and $4.2 million for the years ended December 31, 2018, 2017, and 2016 into the qualified and non-qualified trust funds. The market value of the trusts at December 31, 2018 and 2017 was $287.1 million and $293.7 million . 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 the DOE entered into a settlement agreement that establishes a process for the payment of claims for costs incurred through December 31, 2019. Under the settlement agreement, APS must submit claims annually for payment of allowable costs. The benefit from the claims is passed through to customers under the FPPAC to the extent applicable to NMPRC regulated operations. PNM estimates that it will incur approximately $57.7 million (in 2016 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 nuclear fuel is consumed. At December 31, 2018 and 2017 , PNM’s liability for interim storage costs of $12.4 million and $12.3 million , which is 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 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, which was issued in September 2013. 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 August 2014 final rule has been subject to continuing legal challenges before the NRC and the United States Court of Appeals. On May 19, 2016, the NRC denied petitions filed by multiple petitioners to revise the August 2014 rule. The DC Circuit issued an order upholding the August 2014 rule on June 3, 2016 and denied a subsequent petition for rehearing on August 8, 2016. 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 by adopting a new SIP every ten years. In the first SIP planning period, states were required 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 was demonstrated that the emissions from these sources caused or contributed to visibility impairment in any Class I area, then BART must have been installed by the beginning of 2018. For all future SIP planning periods, states must evaluate whether additional emissions reduction measures may be needed to continue making reasonable progress toward natural visibility conditions. On January 10, 2017, EPA published in the Federal Register revisions to the regional haze rule. EPA also provided a companion draft guidance document for public comment. The new rule delayed the due date for the next cycle of SIPs from 2019 to 2021, altered the planning process that states must employ in determining whether to impose “reasonable progress” emission reduction measures, and gave new authority to federal land managers to seek additional emission reduction measures outside of the states’ planning process. Finally, the rule made several procedural changes to the regional haze program, including changes to the schedule and process for states to file 5 -year progress reports. EPA’s new rule was challenged by numerous parties. On January 19, 2018, EPA filed a motion to hold the case in abeyance in light of several letters issued by EPA on January 17, 2018 to grant various petitions for reconsideration of the 2017 rule revisions. On January 30, 2018, the court placed the case in abeyance and directed EPA to file status reports on 90 -day intervals beginning April 30, 2018. On September 11, 2018, EPA released a memo titled “Regional Haze Reform Roadmap.” The memo includes forthcoming tools and guidance to support states in their SIP development processes for the second planning period, which covers 2018 to 2028. The memo also includes a notice-and-comment rulemaking to review other aspects of the January 2017 rule. SIPs for the second compliance period are due in July 2021. On December 20, 2018, EPA released its final guidance document on tracking visibility progress for the second planning period. EPA is allowing states discretion to develop SIPs that may differ from EPA’s guidance as long as they are consistent with the Clean Air Act and other applicable regulations. EPA’s decision to revisit the 2017 rule is not a determination on the merits of the issues raised in the petitions. PNM is evaluating the potential impacts of these matters. SJGS BART Compliance – SJGS is a source that is subject to the statutory obligations of the CAA to reduce visibility impacts. The State of New Mexico submitted its SIP on the regional haze and interstate transport elements of the visibility rules for review by EPA in June 2011. The SIP required SJGS to reduce NOx emissions by installing selective non-catalytic reduction technology (“SNCR”) as BART. Nevertheless, in August 2011, EPA published a FIP, which included a regional haze BART determination for SJGS that required installation of selective catalytic reduction technology (“SCR”) as BART on all four units by September 21, 2016. PNM, as the operating agent for SJGS, engaged in discussions with NMED and EPA regarding an alternative to the FIP and SIP, which resulted in a non-binding agreement that included the retirement of SJGS Units 2 and 3 by the end of 2017 and the installation of SNCRs on Units 1 and 4 (the “RSIP”). EPA issued final rules, which became effective on November 10, 2014, approving the RSIP and withdrawing the FIP. In addition to the SNCR equipment required by the RSIP, 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”). The requirement to install BDT was made binding and enforceable in the NSR permit issued by NMED that accompanied the RSIP submitted to the EPA. EPA’s rule approving the RSIP specifically references the NSR permit by including a condition that requires “modification of the fan systems on Units 1 and 4 to achieve ‘balanced’ draft configuration…” Installation of SNCRs on Unit 1 and BDT equipment on both Units 1 and 4 was completed in 2015 and installation of SNCRs on Unit 4 was completed in January 2016, which dates were within the timeframe contained in the RSIP. PNM’s share of the total costs for SNCRs and BDT equipment was $77.7 million . See Note 17 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 have increased with the installation of SNCR and BDT equipment. On December 20, 2013, PNM made a filing with the NMPRC requesting certain approvals necessary to effectuate the RSIP. In this filing, PNM requested: • Permission to retire SJGS Units 2 and 3 at December 31, 2017 and to recover over 20 years their net book value at that date along with a regulated return on those costs • A CCN to include PNM’s ownership of PVNGS Unit 3, amounting to 134 MW, as a resource to serve New Mexico retail customers at a proposed value of $2,500 per KW, effective January 1, 2018 • An order allowing cost recovery for PNM’s share of the installation of SNCR and BDT equipment to comply with NAAQS requirements on SJGS Units 1 and 4, not to exceed a total cost of $82 million PNM’s filing also addressed replacement of the capacity from the shutdown of SJGS Units 2 and 3 (which would reduce PNM’s ownership in SJGS by 418 MW), a possible increase in PNM’s ownership in SJGS Unit 4, the identification of a new natural gas-fired generation source, and 40 MW of new utility-scale solar-PV facilities. PNM received approval to construct the 40 MW of solar PV facilities in its 2015 Renewable Energy Plan but ultimately withdrew a request for permission to construct a new natural gas-fired generating station. PNM’s requests in the December 20, 2013 NMPRC filing were based on the status of the negotiations among the SJGS owners at that time regarding ownership restructuring and other matters (see SJGS Ownership Restructuring Matters below). After extensive negotiations, on August 13, 2015 PNM, NMPRC Staff, the NMAG, Western Resource Advocates, and the Coalition for Clean Affordable Energy filed a settlement agreement with the NMPRC. NMIEC, Interwest Energy Alliance, and New Mexico Independent Power Producers subsequently joined in this agreement and NEE filed in opposition to the agreement (collectively, the “Stipulated Settlement”). On December 16, 2015, following oral argument, the NMPRC issued an order adopting the Stipulated Settlement. As provided in that order: • PNM would retire SJGS Units 2 and 3 (PNM’s ownership interest was 418 MW) by 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 at PNM’s WACC • PNM was 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 (an aggregate of $20.7 million ), as a jurisdictional resource to serve PNM’s New Mexico retail customers effective January 1, 2018; PNM is prohibited from seeking recovery of any undepreciated investment in the 132 MW interest in the event SJGS Unit 4 is abandoned • PNM was 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 (an aggregate of $154.9 million ) as a jurisdictional resource to serve PNM’s New Mexico retail customers beginning January 1, 2018 • PNM was authorized to acquire 65 MW of SJGS Unit 4 as merchant 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 and 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 would 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 17) • PNM would not recover approximately $20 million of other costs incurred in connection with CAA compliance • The NMPRC would issue a Notice of Proposed Dismissal in PNM’s 2014 IRP • PNM was required to make a filing with the NMPRC no later than December 31, 2018 to determine the extent to which SJGS should continue serving PNM’s retail customers’ needs after June 30, 2022. PNM’s filing was required to be made before PNM entered into a binding commitment to extend the SJGS CSA beyond its scheduled June 30, 2022 expiration date but after PNM had received firm pricing and other terms for the extended supply of coal to SJGS, unless PNM does not propose to pursue an extended SJGS CSA. See December 2018 Compliance Filing below and in Note 17 At December 31, 2015, PNM recorded pre-tax losses aggregating $165.7 million , reflecting a $127.6 million write-off for 50% of the then estimated December 31, 2017 net book value that would not be recovered, $21.6 million for other unrecoverable costs, and $16.5 million for an increase in PNM’s share of estimated coal mine reclamation costs. During 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 a net expense of $3.7 million , consisting of a $0.9 million expense due to a revision of the estimated net book value of SJGS Units 2 and 3, a $4.5 million expense related to a refinement of the estimated liability for coal mine reclamation resulting from the new coal mine reclamation arrangement, and a $1.7 million reduction of the other unrecoverable costs that are reflected in regulatory disallowances and restructuring costs on the Consolidated Statements of Earnings. In addition, PNMR Development recorded an expense of $0.6 million in 2016 for costs it was obligated to reimburse the other SJGS participants under the restructuring arrangement, which is included in other deductions on the Consolidated Statement of Earnings. SJGS Unit 3 was shut down on December 19, 2017 and SJGS Unit 2 was shut down on December 20, 2017. At shutdown, the carrying value for PNM’s ownership share of SJGS Units 2 and 3 was comprised of plant in service of $439.4 million and accumulated depreciation and amortization (including cost of removal) of $188.3 million for a net book value of $251.1 million . As of December 31, 2017, these amounts were written off and offset by previously recorded losses of $128.6 million . PNM also recorded a regulatory asset of $125.5 million for the 50% of the undepreciated book value that is to be recovered from ratepayers pursuant to the December 15, 2015 NMPRC order described above. This resulted in the reversal of previously recorded losses of $3.0 million being recorded at December 31, 2017. In addition, PNM recognized a reversal of $1.0 million of previously recorded losses for other unrecoverable costs. These reversals, which total $4.0 million , are included in regulatory disallowances and restructuring costs on the Consolidated Statements of Earnings. In January 2016, NEE filed a notice of appeal with the NM Supreme Court of the NMPRC’s December 16, 2015 order. In July 2016, NEE filed a brief alleging that the NMPRC’s decision violated New Mexico 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. Several parties filed Answer Briefs refuting NEE’s claims in November 2016. Reply briefs were filed by NEE in January 2017 and the parties presented oral argument to the court on January 25, 2017. On March 5, 2018, the NM Supreme Court issued its opinion affirming the NMPRC’s December 2015 order, thereby denying NEE’s appeal. A request for rehearing of the NM Supreme Court’s decision was not filed by the statutory deadline. This matter is now concluded. NEE Complaint – On March 31, 2016, NEE filed a complaint with the NMPRC against PNM regarding the financing provided by NM Capital to facilitate the sale of SJCC. See Coal Supply below. The complaint alleges that PNM failed to comply with its discovery obligation in the SJGS abandonment case and requests the NMPRC 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. On January 31, 2018, NEE filed a motion asking the NMPRC to investigate whether PNM’s relationship with WSJ, in light of Westmoreland’s financial condition, could be harmful to PNM’s customers. PNM responded requesting the NMPRC deny the motion and that NEE’s prior complaint be dismissed. On May 23, 2018, PNM filed its response to the NMPRC staff’s comments requesting additional information about the financing and noting that the Westmoreland Loan was paid in full on May 22, 2018. NEE and NMPRC staff responded on July 16, 2018. NEE continues its request that the NMPRC investigate whether Westmoreland’s financial condition could adversely affect PNM’s customers. The NMPRC staff response requested that PNM provide certain additional information about the financing transactions and stated an order to show cause requested by NEE is not warranted. On October 11, 2018, PNM filed a supplemental response notifying the NMPRC that Westmoreland had filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. PNM’s supplemental response indicated Westmoreland had agreed to terms with its secured creditors that will allow it to continue to fund normal-course operations and to continue to serve its customers during the course of the bankruptcy case. See Note 10. PNM’s supplemental response also included a letter from the United States Southern District of Texas Bankruptcy Court indicating that, subject to specified conditions, Westmoreland is authorized to “perform under its coal contracts and to conduct its business under the ordinary course of business” without seeking court approval. The NMPRC has taken no further action on NEE’s complaints. PNM cannot predict the outcome of these matters. SJGS Ownership Restructuring Matters – Prior to December 31, 2017, SJGS was jointly owned by PNM and eight other entities, including three participants that operate in the State of California. Furthermore, each participant did not have the same ownership interest in each unit. The SJPPA that governs the operation of SJGS expires on July 1, 2022. In connection with requirements to install SNCR and BDT equipment at SJGS, the California participants indicated that, under California law, they might be prohibited from making significant capital improvements to SJGS and expressed the intent to exit their ownership in SJGS by December 31, 2017. One other participant also expressed a similar intent to exit 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. Prior to the restructuring, the exiting participants owned 50.0% of SJGS Unit 3 and 38.8% of SJGS Unit 4, but none of SJGS Units 1 and 2, and PNM owned 50.0% of SJGS Units 1, 2, and 3 and 38.5% of SJGS Unit 4. Following mediated negotiations, the SJGS participants executed the San Juan Project Restructuring Agreement (“SJGS RA”). The SJGS 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 SJGS RA and agreed to acquire an ownership interest in SJGS Unit 4 on the December 31, 2017 exit date, but had obligations related to Unit 4 before that time. Under the SJGS RA, PNM would acquire 132 MW and PNMR Development would acquire 65 MW of the capacity in SJGS Unit 4 from the exiting owners on the exit date for no initial cost other than funding capital improvements, including the costs of installing SNCR and BDT equipment. PNMR Development’s share of the costs of installing SNCR and BDT equipment amounted to $7.6 million . Consistent with the NMPRC order, PNM acquired the rights and obligations related to the 65 MW from PNMR Development effective on December 31, 2017 in order to facilitate dispatch of power from that capacity. The SJGS RA became effective contemporaneously with the effectiveness of the new SJGS CSA. The effectiveness of the new SJGS 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 on January 31, 2016. The SJGS RA sets forth the terms under which PNM acquired the coal inventory of the exiting SJGS participants as of January 1, 2016 and supplied coal to the exiting participants for the period from January 1, 2016 through December 31, 2017, which arrangement provided economic benefits that were passed on to PNM’s customers through the FPPAC. SJGS Units 2 and 3 were shut down in December 2017 and the restructuring of SJGS ownership under the SJGS RA occurred on December 31, 2017, including PNM’s acquisition of the additional 132 MW and 65 MW ownership interests in SJGS Unit 4 as set forth above. In accordance with the FERC chart of accounts, plant in service for utility assets acquired is to be recorded at the original cost of the assets less accumulated depreciation. Since PNM did not pay for any costs incurred prior to the effective date of the SJGS RA, PNM increased both plant in service and accumulated depreciation for the original cost of the acquired interests at that date, estimated to be $261.8 million , on December 31, 2017. As ordered by the NMPRC, PNM treats the 65 MW interest as merchant utility plant that is excluded from retail rates. In anticipation of the transfer of ownership, PNM entered into agreements to sell the power from 36 MW of that capacity to a third party at a fixed price for the period January 1, 2018 through June 30, 2022 (Note 9). Beginning in 2018, SJGS is jointly owned by five entities. Including the 65 MW considered to be merchant plant, PNM’s ownership share is 77.3% in SJGS Unit 4 and an aggregate of 66.3% in SJGS Units 1 and 4. December 2018 Compliance Filing – The NMPRC’s December 16, 2015 order required that, no later than December 31, 2018, PNM make a filing with the NMRPC to determine the extent to which SJGS should continue serving PNM’s customers’ needs after June 30, 2022, including PNM’s recommendation and supporting testimony and exhibits (the “December 2018 Compliance Filing”). The December 2018 Compliance Filing was required to be made before PNM entered into a binding commitment for post-2022 coal supply but after PNM received firm pricing and other terms for the supply of coal at SJGS, unless PNM did not intend to pursue an agreement for post-2022 coal supply at SJGS. The NMPRC’s December 16, 2015 order also indicated that, if SJGS Unit 4 is abandoned with undepreciated investment on PNM’s books, PNM is prohibited from recovering the undepreciated investment of its 132 MW interest and required that PNM’s 65 MW interest in SJGS Unit 4 be treated as excluded merchant plant. PNM is currently depreciating all its investments in SJGS through 2053, which reflects the period of time over which the NMPRC has authorized PNM to recover its investment in SJGS from New Mexico retail customers. PNM submitted the December 2018 Compliance Filing to the NMPRC on December 31, 2018 indicating that, consistent with the conclusions reached in PNM’s 2017 IRP (Note 17), PNM’s customers would benefit from the retirement of PNM’s share of SJGS after the current SJGS CSA expires in mid-2022. The December 2018 Compliance Filing also indicates that, pursuant to the terms of the agreements governing SJGS, all of the SJGS owners except for Farmington have provided written notice that they do not intend to extend the SJGS operating agreements beyond their June 30, 2022 expiration dates and that PNM has provided written notice to SJCC that PNM does not intend to extend the SJGS CSA beyond June 30, 2022 or to negotiate a new coal supply agreement on behalf of the other SJGS participants. The December 2018 Compliance Filing also requested the NMPRC accept the filing as compliant with the December 16, 2015 order and indicated that PNM anticipates it will have sufficient information by the end of the second quarter of 2019 to support a consolidated application seeking NMPRC approval to retire PNM’s share of SJGS in 2022 and for approval of CCNs, PPAs, or other applicable approvals, for replacement capacity resources. On January 10, 2019, the NMPRC opened a docket to determine whether the NMPRC should grant PNM’s request to accept the December 2018 Compliance Filing and take no further action pending PNM submitting a formal consolidated abandonment and replacement resources application, or whether the NMPRC should immediately establish a formal procedural schedule regarding the abandonment of SJGS. The NMPRC received responses from parties regarding the initial order and, on January 30, 2019, approved an order initiating a proceeding and requiring PNM to submit an application for the abandonment of PNM’s share of SJGS by March 1, 2019. On February 7, 2019, PNM filed a motion requesting the NMPRC vacate the January 30, 2019 order and to extend the deadline for PNM’s abandonment filing until the end of the second quarter of 2019, which was deemed denied. On February 27, 2019, PNM filed a petition with the NM Supreme Court stating that the requirements of the January 30, 2019 order exceed the NMPRC’s authority by, among other things, mandating PNM to make a filing that is legally voluntary, and that the order is contrary to NMPRC precedent which requires abandonment applications to also include identified replacement resources and other information that will not be available to PNM by March 1, 2019. PNM’s petition also requested the NM Supreme Court stay the January 30, 2019 order until after June 14, 2019. On March 1, 2019, the NM Supreme Court granted a temporary stay of the NMPRC’s order and will consider the merits of PNM’s petition after receiving responses, which are due by March 19, 2019. PNM cannot predict the outcome of this matter. GAAP requires that long-lived assets be tested for impairment when events or changes in circumstances indicate that their carrying value may not be recoverable. The test must consider only those cash flows that are directly associated with the long-lived asset, or group of assets, and requires the evaluation be performed at the lowest level for which identifiable cash flows are largely independent of other cash flows within the asset group. PNM evaluated the recent events surrounding its future participation in SJGS and determined that it is more likely than not that PNM’s share of SJGS will be retired in 2022. As a result, PNM performed an impairment analysis that assumed SJGS would not continue to operate through 2053, as previously approved by the NMPRC. PNM’s impairment analysis indicated that, pursuant to the NMPRC’s December 16, 2015 order, PNM’s undepreciated 132 MW interest in SJGS Unit 4 at June 30, 2022 will not be recovered from customers; that the estim |
Regulatory and Rate Matters
Regulatory and Rate Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory and Rate Matters | Regulatory and Rate Matters The Company is involved in various regulatory matters, some of which contain contingencies that are subject to the same uncertainties as those described in Note 16. PNM New Mexico General Rate Cases New Mexico 2015 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 . PNM’s application was based on a future test year (“FTY”) period beginning October 1, 2015, which met the NMPRC’s interpretation of the FTY statute, and proposed a ROE of 10.5% . 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. 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 8). A subsequent public hearing was held in June 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 CSA (Note 16). PNM’s filing indicated that recovery for fuel related costs would be reduced by approximately $42.9 million reflecting the current SJGS CSA, 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 (the “August 2016 RD”). The August 2016 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 proposed in the August 2016 RD, included: • A ROE of 9.575% compared to the 10.5% requested by PNM • 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 8); the August 2016 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 were $0.8 million per year when the August 2016 RD was issued), 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 • Disallowing recovery from retail customers of the rent expense, which aggregates $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 8) and related property taxes, which were $1.5 million per year when the August 2016 RD was issued; the August 2016 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 • Disallowing recovery of the costs of converting SJGS Units 1 and 4 to BDT, which is required by the NSR permit for SJGS, (Note 16); 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 rate request • Disallowing recovery of $4.5 million of amounts recorded as regulatory assets and deferred charges The August 2016 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 August 2016 RD also proposed that all fuel costs be removed from base rates and be recovered through the FPPAC. In addition, the August 2016 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 August 2016 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 August 2016 RD proposed approving PNM’s proposals for revised depreciation rates (except the August 2016 RD would require depreciation on Four Corners be calculated based on a 2041 life rather than the 2031 life proposed by PNM), the inclusion of construction work in progress in rate base, and ratemaking treatment of the “prepaid pension asset.” The August 2016 RD proposed retail customers receive 100% of the New Mexico jurisdictional portion of revenues from “refined coal” (a third-party pre-treatment process) at SJGS. The August 2016 RD also 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, amounting to $2.1 million was reflected as a reduction of income tax expense on the Consolidated Statement of Earnings. The August 2016 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 August 2016 RD and filed exceptions to defend its prudent utility investments. Other parties also filed exceptions to the August 2016 RD. On September 28, 2016, the NMPRC issued an order that authorized PNM to implement an increase in non-fuel rates of $61.2 million , effective for bills sent to customers after September 30, 2016. The order generally approved the August 2016 RD, but with certain significant modifications. The modifications to the August 2016 RD included: • 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 order was issued • Allowing 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 contributions 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 order in the NM 2015 Rate Case. Subsequently, NEE, NMIEC, and ABCWUA filed notices of cross-appeal to PNM’s appeal. On October 26, 2016, PNM filed a statement of issues related to its appeal with the NM Supreme Court, which stated 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 BDT equipment on SJGS Units 1 and 4. In addition, PNM’s statement indicated it is appealing the following specific elements of the NMPRC’s 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 the 64.1 MW of purchased capacity and the 114.6 MW of capacity under the extended leases • Disallowance of recovery of the costs of converting SJGS Units 1 and 4 to BDT The issues that are being appealed by the various cross-appellants include: • The NMPRC allowing PNM to recover the costs of the lease extensions for the 114.6 MW of PVNGS Units 1 and 2 and any of the purchase price for the 64.1 MW in PVNGS Unit 2 • The NMPRC allowing PNM to recover the costs incurred under the new Four Corners CSA • The revised method to collect PNM’s fuel and purchased power costs under the FPPAC • The final rate design • The NMPRC allowing PNM to include the “prepaid pension asset” in rate base NEE subsequently filed a motion for a partial stay of the order at the NM Supreme Court. This motion was denied. The NM Supreme Court orally stated that the court’s intent was to request that PNM reimburse ratepayers for any amount overcharged should the cross-appellants prevail on the merits. On February 17, 2017, PNM filed its Brief in Chief, and pursuant to the court’s rules, the briefing schedule was completed on July 21, 2017. Oral argument at the NM Supreme Court was held on October 30, 2017. 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. GAAP requires a loss be recognized when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. When there is a range of the amount of the probable loss, the minimum amount of the range is to be accrued unless an amount within the range is a better estimate than any other amount. As of September 30, 2016, PNM evaluated the accounting consequences of the 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 indicated 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. As of September 30, 2016, PNM estimated it would 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. PNM concluded that a range of probable loss resulted from the NMPRC order in the NM 2015 Rate Case; that the minimum amount of loss was 15 months of capital cost recovery that the order disallowed for PNM’s investments in the PVNGS Unit 2 purchases, PVNGS Unit 2 capitalized improvements, and BDT; and that no amount within the range of possible loss was a better estimate than any other amount. Accordingly, PNM recorded a pre-tax regulatory disallowance of $6.8 million at September 30, 2016 for the capital costs that would not be recovered during that 15 -month appeal period. In addition, PNM recorded a pre-tax regulatory disallowance for $4.5 million of costs recorded as regulatory assets and deferred charges (which the order disallowed and which PNM did not challenge in its appeal) since PNM could no longer assert that those assets were probable of being recovered through the ratemaking process. PNM also evaluated the accounting consequences of the issues that are being appealed by the cross-appellants. PNM does not believe the issues raised in the cross-appeals have substantial merit. Accordingly, PNM does not believe that the likelihood of the cross-appeals being successful is probable and, therefore, no loss has been recorded related to the issues subject to the cross-appeals. Since the NM Supreme Court did not issue a decision on the appeals related to the NM 2015 Rate Case by December 31, 2017, which was 15 months from the date of the NMPRC’s order in that case, PNM reevaluated the accounting consequences of the order in the NM 2015 Rate Case. As of December 31, 2017, PNM estimated the most likely period for the NM Supreme Court to issue a decision in the case and for the NMPRC to take action on any remanded issues was seven months. As a result, PNM recorded an additional pre-tax loss of $3.1 million as of December 31, 2017, representing seven months of capital cost recovery that the order disallowed and would not be recovered through July 31, 2018. During 2018, PNM updated its evaluation of the estimated time frame it would take for resolution of the matter resulting in additional pre-tax losses of $4.0 million , which are reflected as regulatory disallowances and restructuring costs on the Consolidated Statements of Earnings, based on an estimate of an additional nine months of capital cost recovery that the order disallowed and would not be collected from customers through April 30, 2019. Further losses will be recorded if the currently estimated time frame for the NM Supreme Court to render a decision and for the NMPRC to take action on any remanded issues is extended. PNM continues to believe that the disallowed investments, which are the subject of PNM’s appeal, were prudent 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 the capitalized costs for any unsuccessful issues. The impacts of not recovering future contributions for decommissioning would be recognized in future periods reflecting that rates charged to customers would not recover those costs as they are incurred. The amounts of any such losses to be recorded 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 December 31, 2018, such 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 order; the net book value of such excess amount was $73.3 million , after considering the losses recorded to date • 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 $38.0 million , after considering the losses recorded to date • The remaining costs to convert SJGS Units 1 and 4 to BDT; the net book value of these assets was $50.0 million , after considering the losses recorded to date Although PNM does not believe that the likelihood of the cross-appeals being successful is probable, it is unable to predict what decision the NM Supreme Court will reach. If the NM Supreme Court were to overturn all of the issues subject to the cross-appeals and, upon remand, the NMPRC did not provide any cost recovery of those items, PNM would write-off all of the costs to acquire the assets previously leased under three leases, aggregating 64.1 MW of PVNGS Unit 2 capacity, totaling $146.1 million (which amount includes $73.3 million that is the subject of PNM’s appeal discussed above) at December 31, 2018, after considering the losses recorded to date. The impacts of not recovering costs for the lease extensions, new coal supply contract for Four Corners, and “prepaid pension asset” in rate base would be recognized in future periods reflecting that rates charged to customers would not recover those costs as they are incurred. The outcomes of the cross-appeals regarding the FPPAC and rate design should not have a financial impact to PNM. PNM is unable to predict the outcome of this matter. New Mexico 2016 General Rate Case (“NM 2016 Rate Case”) On December 7, 2016, PNM filed an application with the NMPRC for a general increase in retail electric rates. PNM did not include any of the costs disallowed in the NM 2015 Rate Case that are at issue in its pending appeal to the NM Supreme Court. Key aspects of PNM’s request were: • An increase in base non-fuel revenues of $99.2 million • Based on a FTY beginning January 1, 2018 (the NMPRC’s rules specify that a FTY is a 12 month period beginning up to 13 months after the filing of a rate case application) • ROE of 10.125% • Drivers of revenue deficiency ◦ Implementation of the modifications in PNM’s resource portfolio, which were previously approved by the NMPRC as part of the SJGS regional haze compliance plan (Note 16) ◦ Infrastructure investments, including environmental upgrades at Four Corners ◦ Declines in forecasted energy sales due to successful energy efficiency programs and other economic factors ◦ Updates in the FERC/retail jurisdictional allocations • Proposed changes to rate design to establish fair and equitable pricing across rate classes and to better align cost recovery with cost causation ◦ Increased customer and demand charges ◦ A “lost contribution to fixed cost” mechanism applicable to residential and small commercial customers to address the regulatory disincentive associated with PNM’s energy efficiency programs The NMPRC scheduled a public hearing to begin on June 5, 2017, ordered that a settlement conference be held, and that any resulting stipulation should be filed by March 27, 2017. Settlement discussions were held, but no agreements were reached by March 27, 2017, after which the date for filing a stipulation was extended. In early May 2017, PNM and thirteen intervenors (the “Signatories”) entered into a comprehensive stipulation. On May 12, 2017, the Hearing Examiners issued an order rejecting the stipulation in its then current form but allowed the Signatories to revise the stipulation. On May 23, 2017, the Signatories filed a revised stipulation that addressed the issues raised by the Hearing Examiners. NEE was the sole party opposing the revised stipulation. The terms of the revised stipulation, which required NMPRC approval in order to take effect, included: • A revenue increase totaling $62.3 million , with an initial increase of $32.3 million beginning January 1, 2018 and the remaining increase beginning January 1, 2019 • A ROE of 9.575% • Full recovery of PNM’s investment in SCRs at Four Corners with a debt-only return • An agreement to not implement non-fuel base rate changes, other than changes related to PNM’s rate riders, with an effective date prior to January 1, 2020 • An agreement to adjust the January 2019 increase for certain changes in federal corporate tax laws enacted prior to November 1, 2018 and effective and applicable to PNM by January 1, 2019 and to true-up PNM’s cost of debt for refinancing transactions through 2018 • Returning to customers over a three -year period the benefit of the reduction in the New Mexico corporate income tax rate (Note 18) to the extent attributable to PNM’s retail operations • PNM would withdraw its proposal for a “lost contribution to fixed cost” mechanism with the issue to be addressed in a future docket • PNM would perform a cost benefit analysis in its 2020 IRP of the impact of a possible early exit from Four Corners in 2024 and 2028 A hearing on the revised stipulation was held in August 2017. On October 31, 2017, the Hearing Examiners issued a Certification of Stipulation recommending a Modified Revised Stipulation. The significant changes to the revised stipulation in the Hearing Examiners’ Modified Revised Stipulation included: • Identifying PNM’s decision to continue its participation in Four Corners as imprudent • Disallowing PNM’s ability to collect a debt or equity return on its $90.1 million investment in SCRs at Four Corners and on $58.0 million of projected capital improvements during the period July 1, 2016 through December 31, 2018 • Recommending a temporary disallowance of $36.8 million of PNM’s projected capital improvements at SJGS through December 31, 2018 On December 20, 2017, the NMPRC issued an Order Partially Adopting Certification of Stipulation, which approved the Hearing Examiners’ Certification of Stipulation with certain changes. Substantive changes from the Certification of Stipulation included requiring the impacts of changes related to the reduction in the federal corporate income tax rate be implemented effective January 1, 2018 rather than January 1, 2019 and deferring further consideration regarding the prudency of PNM’s decision to continue its participation in Four Corners to a future proceeding. On December 28, 2017, PNM filed a Motion for Rehearing and Request for Oral Argument asking the NMPRC to vacate their December 20, 2017 order and allow the parties to present oral argument. Additionally, several Signatories to the revised stipulation filed a Joint Motion for Partial Rehearing asking that the NMPRC approve the revised stipulation without modification. On January 2, 2018, NEE filed a response urging the NMPRC to reject PNM’s Motion. On January 3, 2018, the NMPRC vacated its December 20, 2017 order and granted the motions for rehearing. The rehearing was held on January 10, 2018. The NMPRC issued a Revised Order Partially Adopting Certification of Stipulation dated January 10, 2018 (the “Revised Order”). The Revised Order approved the Hearing Examiners’ Certification of Stipulation with certain changes including: • Requiring the impacts of changes related to the reduction in the federal corporate income tax rate and PNM’s cost of debt (aggregating an estimated $47.6 million annually) be implemented in 2018 rather than January 1, 2019 • Deferring further consideration regarding the prudency of PNM’s decision to continue its participation in Four Corners to PNM’s next rate case • Disallowing PNM’s ability to collect an equity return on its $90.1 million investment in SCRs at Four Corners and on $58.0 million of projected capital improvements during the period July 1, 2016 through December 31, 2018, but allowed recovery of the total $148.1 million of investments with a debt-only return • Requiring PNM to reduce the requested $62.3 million increase in non-fuel revenue by $9.1 million • Implementation of the first phase of the rate increase for services rendered, rather than bills sent, beginning February 1, 2018 and of the second phase for services rendered beginning January 1, 2019 On January 16, 2018, PNM requested clarifying changes to the Revised Order to adjust the $9.1 million reduction to $4.4 million , asserting that $4.7 million of the reduction was duplicative. On January 17, 2018, the NMPRC issued an order approving the adjustment requested by PNM. On January 19, 2018, PNM and the Signatories filed a joint notice of acceptance of the Revised Order, as amended. On January 31, 2018, the NMPRC issued an order closing the docket in the NM 2016 Rate Case. After implementation of changes to the federal corporate income tax rate and cost of debt, the final order results in a net increase to PNM’s non-fuel revenue requirement of $10.3 million . PNM implemented 50% of the approved increase for service rendered beginning February 1, 2018 and implemented the rest of the increase for service rendered beginning January 1, 2019. GAAP required PNM to recognize a loss to reflect that PNM will not earn an equity return on $148.1 million of investments at Four Corners. As of December 31, 2017, PNM recorded a pre-tax regulatory disallowance of $27.9 million . The amount of the loss was calculated by determining the present value of disallowed cash flows, which equals the difference between the cash flows resulting from recovery of those investments at PNM’s embedded cost of debt and the cash flows with a full return on investment (including an equity component), and discounting the differences at PNM’s WACC. On February 7, 2018, NEE filed a notice of appeal with the NM Supreme Court asking the court to review the NMPRC’s decisions in the NM 2016 Rate Case. On March 7, 2018, NEE filed its statement of issues with the NM Supreme Court requesting, among other things, that the NMPRC be required to identify PNM’s decision to continue its participation in Four Corners as imprudent and to deny any recovery related to PNM’s $148.1 million investments in that facility. NEE’s Brief in Chief was filed on July 16, 2018 and PNM’s Answer Brief was filed on October 12, 2018. Several parties to the case intervened in the appeal as intervenor-appellees in support of the NMPRC’s final decisions in the Revised Order. On November 15, 2018, NEE filed an unopposed motion to withdraw its appeal, which was granted by the NM Supreme Court. On December 3, 2018, the NM Supreme Court issued its order of dismissal and remanded the matter to the NMPRC. Investigation/Rulemaking Concerning NMPRC Ratemaking Policies On March 22, 2017, the NMPRC issued an order opening an investigation and rulemaking to simplify and increase “the transparency of NMPRC rate cases by reducing the number of issues litigated in rate cases,” and provide a “more level playing field among intervenors and NMPRC staff on the one hand, and the utilities on the other.” The order posed the following questions: whether a standardized method should be established for determining ROE; should the ROE be subject to reward or penalty based on utilities meeting or failing to meet certain metrics, which could include customer complaints, outages, peak demand reductions, and RPS and energy efficiency compliance; whether recovery of utility rate case expenses should be limited to 50% unless the case is settled; whether intervenors should be allowed to recover their expenses if the NMPRC accepts their position; whether parties should have access to software used by utilities to support their positions; and how regulatory assets should be authorized and recovered. Initial comments were filed in July 2017 and several public workshops have been held. PNM cannot predict the outcome of this proceeding. 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. Included in PNM’s approved procurement plans are the following renewable energy resources: • 157 MW of PNM-owned solar-PV facilities, including 50 MW of PNM-owned solar-PV facilities approved by the NMPRC in PNM’s 2018 renewable energy procurement plan which are currently under construction • A PPA through 2044 for the output of New Mexico Wind, having a current aggregate capacity of 204 MW, and a PPA through 2035 for the output of Red Mesa Wind, having an aggregate capacity of 102 MW • A PPA through 2042 for the output of the Lightning Dock Geothermal facility; the geothermal facility began providing power to PNM in January 2014; the current capacity of the facility is 15 MW • Solar distributed generation, aggregating 100.6 MW at December 31, 2018, owned by customers or third parties from whom PNM purchases any net excess output and RECs • Solar and wind RECs as needed to meet the RPS requirements 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 did 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, or an exemption from, RPS procurement, 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 proceeding 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. The show cause proceeding was stayed pending the outcome of the NM 2015 Rate Case. The September 28, 2016 order in the NM 2015 Rate Case directed that the cost of New Mexico Wind be recovered through PNM’s renewable rider, rather than the FPPAC, and ordered 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 collects. No action has been taken in the show cause proceeding and PNM cannot predict its outcome. PNM filed its 2017 renewable energy procurement plan on June 1, 2016. The plan met RPS and diversity requirements for 2017 and 2018 using existing resources and PNM did not propose any significant new procurements. PNM projected that its plan would slightly exceed the RCT in 2017 and would be within the RCT in 2018. PNM requested a variance from the RCT in 2017 to the extent the NMPRC determined a variance was 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 was not required. The NMPRC approved the recommended decision on November 23, 2016. On June 1, 2017, PNM filed its 2018 renewable energy procurement plan. PNM requested approval to procure an additional 80 GWh in 2019 and 105 GWh in 2020 from a re-powering of New Mexico Wind; approval to procure an additional 55 GWh in 2019 and 77 GWh in 2020 from a re-powering of Lightning Dock Geothermal; approval to procure 50 MW of new solar facilities to be constructed beginning in 2018, and continuation of customer REC purchase programs and other purchases of RECs to ensure annual compliance with the RPS. PNM’s proposed procurement costs for 2018 and 2019 will be within the RCT. The plan also sought a variance from the “other” diversity category in 2018 due to a revised production forecast of the Lightning Dock Geothermal facility in 2018. A public hearing on the application was held in September 2017. On October 17, 2017, the Hearing Examiner issued a recommended decision that PNM’s 2018 renewable energy procurement plan be approved by the NMPRC, except for the re-powering of Lightning Dock Geothermal and PNM’s request to procure 50 MW of new solar facilities. The Hearing Examiner recommended that the PPA for the output of energy from Lightning Dock Geothermal be terminated effective January 1, 2018. The Hearing Examiner also recommended that PNM be required to issue another all-renewables RFP allowing developers to utilize PNM-owned sites to construct facilities, the output from which facilities would be sold to PNM through PPAs. PNM filed exceptions contesting the Hearing Examiner’s proposals. On November 15, 2017, the NMPRC issued an order approving PNM’s plan and rejecting the Hearing Examiner’s recommendations. On November 29, 2017, NMIEC filed an appeal with the NM Supreme Court objecting to the fuel allocation methodology. On December 14, 2017, NEE filed a motion to intervene and cros |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Federal Income Tax Reform On December 22, 2017, comprehensive changes in United States federal income taxes were enacted through legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made many significant modifications to the tax laws, including reducing the federal corporate income tax rate from 35% to 21% effective January 1, 2018. The Tax Act also eliminated federal bonus depreciation for utilities, limited interest deductibility for non-utility businesses and limited the deductibility of certain officer compensation. During 2018, the IRS issued additional guidance related to certain officer compensation and proposed regulations on interest deductibility that provide a 10% “de minimis” exception that allows entities with predominantly regulated activities to fully deduct interest expenses. In addition, the IRS issued proposed regulations interpreting Tax Act amendments to depreciation provisions of the Internal Revenue Code that allow the Company to claim a bonus depreciation deduction on certain construction projects placed in service subsequent to the third quarter of 2017. Although most of the provisions of the Tax Act were not effective until 2018, GAAP required that some effects be recognized in 2017. Under the asset and liability method of accounting for income taxes used by the Company, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. At the date of enactment of the Tax Act, the Company had net deferred tax liabilities for its regulated activities and net deferred tax assets for non-regulated activities. As a result of the change in the federal income tax rate, the Company re-measured and adjusted its deferred tax assets and liabilities as of December 31, 2017. The portion of that adjustment not related to PNM’s and TNMP’s regulated activities was recorded as a reduction in net deferred tax assets and an increase in income tax expense. The portion related to PNM’s and TNMP’s regulated activities was recorded as a reduction in net deferred tax liabilities and an increase in regulatory liabilities, based on the assumption that PNM and TNMP will be required to return the benefit to ratepayers over time. PNM’s NM 2016 Rate Case reflected that assumption by including an amortization of the estimated benefit of the reduction in existing deferred federal income taxes as a reduction to customer rates over approximately twenty-one years beginning in 2018. In addition, the approved settlement in the TNMP 2018 Rate Case reflects a similar amortization of excess deferred income taxes through reduced customer rates beginning in 2019. See additional discussion of PNM’s NM 2016 Rate Case and TNMP’s 2018 Rate Case in Note 17. The adjustments to deferred income taxes recorded as increases in regulatory liabilities and income tax expense as a result of the enactment of the Tax Act at December 31, 2017 are presented below: PNM TNMP Corporate and Other Consolidated (In thousands) Net increase in regulatory liabilities $ 402,501 $ 146,451 $ — $ 548,952 Net decrease in deferred income tax liabilities (deferred income tax assets) 372,895 138,586 (19,990 ) 491,491 Net deferred income tax expense $ 29,606 $ 7,865 $ 19,990 $ 57,461 GAAP requires that the impacts of adjusting existing deferred tax assets and liabilities for a change in an income tax rate be recognized in income tax expense during the period of enactment, including impacts that are reflected in AOCI. This resulted in the tax effects of items within AOCI not reflecting the appropriate tax rate and being stranded in AOCI. In February 2018, the FASB issued Accounting Standards Update 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to address this issue by allowing entities to reclassify the income tax effects of the Tax Act on items within AOCI to retained earnings. The Company records in AOCI, net of income taxes, unamortized gains and losses related to PNM’s defined benefit pension plans to the extent not attributed to regulated operations, unrealized gains on PNM’s available-for-sale securities, and unrealized gains and losses on cash flow hedges related to PNMR’s interest rate swaps. When amounts are reclassified from AOCI to the Consolidated Statement of Earnings, the Company recognizes the related income tax expense (benefit) at the tax rate in effect at that time. As permitted by ASU 2018-02, as of December 31, 2017, the Company reclassified the stranded federal income tax effects of the Tax Act on items recorded in AOCI, resulting in a net increase in retained earnings of $17.6 million . See Note 3. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provided guidance to address the application of GAAP to reflect the Tax Act in circumstances where all information and analysis was not yet available or complete. This bulletin provided for up to a one -year period in which to complete the required analyses and accounting for the impacts of the Tax Act. In accordance with SAB 118, the Company completed its analysis of the impacts of the Tax Act in 2018. The adjustments to deferred income taxes resulting from completion of the Company’s analysis, which resulted primarily from differences between the estimated amounts recorded as of December 31, 2017 and the actual amounts reflected in the Company’s 2017 tax return filing, including adjustments resulting from additional guidance and interpretations to the Tax Act issued in 2018 related to bonus depreciation, certain incentive compensation, and other items are presented below: PNM TNMP Corporate and Other Consolidated (In thousands) Net increase (decrease) in regulatory liabilities $ 11,244 $ (4,069 ) $ — $ 7,175 Net decrease in deferred income tax liabilities (deferred income tax assets) (2,175 ) (9,784 ) 13,869 $ 1,910 Net increase in affiliate receivables (affiliate payables) 12,300 4,042 (16,342 ) — Net deferred income tax expense $ 1,119 $ 1,673 $ 2,473 $ 5,265 PNMR PNMR’s income taxes consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ — $ — $ — Current state income tax (244 ) (188 ) (527 ) Deferred federal income tax 7,716 119,182 60,892 Deferred state income tax 648 11,632 3,886 Amortization of accumulated investment tax credits (345 ) (286 ) (973 ) Total income taxes $ 7,775 $ 130,340 $ 63,278 PNMR’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 22,902 $ 79,016 $ 68,311 Amortization of accumulated investment tax credits (345 ) (286 ) (973 ) Amortization of excess deferred income tax (19,779 ) — — Flow-through of depreciation items 712 1,147 1,227 Earnings attributable to non-controlling interest in Valencia (3,173 ) (5,256 ) (5,082 ) State income tax, net of federal benefit 1,358 5,398 4,537 Impairment of state net operating loss carryforwards — 819 (311 ) Allowance for equity funds used during construction (2,185 ) (3,331 ) (1,732 ) Impairment of charitable contribution carryforward — 909 — Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization 1,367 (2,225 ) (1,877 ) Federal income tax rate change 2,914 57,461 — Tax expense (benefit) related to stock compensation awards 4,647 (2,324 ) — Other (643 ) (988 ) (822 ) Total income taxes $ 7,775 $ 130,340 $ 63,278 Effective tax rate 7.13 % 57.73 % 32.42 % The components of PNMR’s net accumulated deferred income tax liability were: December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss $ 82,386 $ 98,301 Regulatory liabilities related to income taxes 158,416 189,501 Federal tax credit carryforwards 76,481 71,849 Shutdown of SJGS Units 2 and 3 1,638 2,204 Other 97,515 45,656 Total deferred tax assets 416,436 407,511 Deferred tax liabilities: Depreciation and plant related (767,482 ) (690,909 ) Investment tax credit (57,853 ) (55,731 ) Regulatory assets related to income taxes (62,889 ) (61,956 ) CTC (3,613 ) (5,670 ) Pension (35,407 ) (56,070 ) Regulatory asset for shutdown of SJGS Units 2 and 3 (30,425 ) (31,887 ) Other (59,486 ) (52,498 ) Total deferred tax liabilities (1,017,155 ) (954,721 ) Net accumulated deferred income tax liabilities $ (600,719 ) $ (547,210 ) The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 53,509 Change in tax effects of income tax related regulatory assets and liabilities (27,833 ) Amortization of excess deferred income tax (19,779 ) Tax effect of mark-to-market adjustments 380 Tax effect of excess pension liability 308 Adjustment for uncertain income tax positions 765 Reclassification of unrecognized tax benefits (765 ) Amortization of state net operating loss recovered in prior years 1,367 Federal income tax rate change, including impact on regulatory liabilities 2,330 Refundable alternative minimum tax credit carryforward reclassified to receivable (1,585 ) Other (678 ) Deferred income taxes $ 8,019 PNM PNM’s income taxes (benefit) consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ (6,644 ) $ 118 $ (10,290 ) Current state income tax (2,661 ) (1,112 ) (1,907 ) Deferred federal income tax 5,661 73,308 49,123 Deferred state income tax (2,080 ) 9,527 4,969 Amortization of accumulated investment tax credits (247 ) (286 ) (973 ) Total income taxes (benefit) $ (5,971 ) $ 81,555 $ 40,922 PNM’s provision for income taxes (benefit) differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 13,514 $ 59,139 $ 46,501 Amortization of accumulated investment tax credits (247 ) (286 ) (973 ) Amortization of excess deferred income tax (19,779 ) — — Flow-through of depreciation items 674 1,103 1,185 Earnings attributable to non-controlling interest in Valencia (3,173 ) (5,256 ) (5,082 ) State income tax, net of federal benefit 1,323 4,926 3,921 Impairment of state net operating loss carryforwards — 627 (213 ) Allowance for equity funds used during construction (1,716 ) (3,032 ) (1,457 ) Regulatory recovery of prior year impairment of state net operating loss carryforward, net of amortization 1,367 (2,225 ) (1,877 ) Federal income tax rate change (683 ) 29,606 — Allocation of tax expense (benefit) related to stock compensation awards 3,967 (1,708 ) — Other (1,218 ) (1,339 ) (1,083 ) Total income taxes (benefit) $ (5,971 ) $ 81,555 $ 40,922 Effective tax rate (9.28 )% 48.27 % 30.80 % The components of PNM’s net accumulated deferred income tax liability were: December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss $ 50,762 $ 67,719 Regulatory liabilities related to income taxes 125,395 152,059 Federal tax credit carryforwards 62,230 60,085 Shutdown of SJGS Units 2 and 3 1,638 2,204 Other 36,916 23,801 Total deferred tax assets 276,941 305,868 Deferred tax liabilities: Depreciation and plant related (606,673 ) (544,270 ) Investment tax credit (55,484 ) (55,731 ) Regulatory assets related to income taxes (53,561 ) (52,392 ) Pension (31,046 ) (51,774 ) Regulatory asset for shutdown of SJGS Units 2 and 3 (30,425 ) (31,887 ) Other (2,519 ) (18,826 ) Total deferred tax liabilities (779,708 ) (754,880 ) Net accumulated deferred income tax liabilities $ (502,767 ) $ (449,012 ) The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 53,755 Change in tax effects of income tax related regulatory assets and liabilities (27,833 ) Amortization of excess deferred income tax (19,779 ) Tax effect of mark-to-market adjustments 579 Tax effect of excess pension liability 308 Adjustment for uncertain income tax positions 725 Reclassification of unrecognized tax benefits (725 ) Amortization of state net operating loss recovered in prior years 1,367 Federal income tax rate change, including impact on regulatory liabilities (6,250 ) Other 1,187 Deferred income taxes $ 3,334 TNMP TNMP’s income taxes consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ 13,347 $ 2,472 $ 9,445 Current state income tax 1,753 1,765 1,729 Deferred federal income tax (540 ) 27,304 12,690 Deferred state income tax 2,320 (29 ) (28 ) Total income taxes $ 16,880 $ 31,512 $ 23,836 TNMP’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the periods shown. The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 14,379 $ 23,475 $ 22,928 State income tax, net of federal benefit 1,454 1,198 1,132 Federal income tax rate change — 7,865 — Allocation of tax expense (benefit) related to stock compensation awards 735 (616 ) — Other 312 (410 ) (224 ) Total income taxes $ 16,880 $ 31,512 $ 23,836 Effective tax rate 24.65 % 46.98 % 36.39 % The components of TNMP’s net accumulated deferred income tax liability at December 31, were: December 31, 2018 2017 (In thousands) Deferred tax assets: Regulatory liabilities related to income taxes $ 33,021 $ 43,103 Other 4,517 3,762 Total deferred tax assets 37,538 46,865 Deferred tax liabilities: Depreciation and plant related (136,117 ) (135,647 ) CTC (3,613 ) (5,670 ) Regulatory assets related to income taxes (9,328 ) (9,564 ) Loss on reacquired debt (6,617 ) (6,890 ) Pension (4,361 ) (4,296 ) AMS (10,030 ) (7,707 ) Other (3,710 ) (3,506 ) Total deferred tax liabilities (173,776 ) (173,280 ) Net accumulated deferred income tax liabilities $ (136,238 ) $ (126,415 ) The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 9,823 Change in tax effects of income tax related regulatory assets and liabilities (350 ) Federal income tax rate change, including impact on regulatory liabilities (7,761 ) Other 68 Deferred income taxes $ 1,780 Other Disclosures GAAP requires that the Company recognize only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. A reconciliation of unrecognized tax benefits is as follows: PNMR PNM TNMP (In thousands) Balance at December 31, 2015 $ 6,455 $ 3,652 Additions based on tax positions related to 2016 242 242 — Additions (reductions) for tax positions of prior years 55 55 — Settlement payments — — — Balance at December 31, 2016 6,752 3,949 — Additions based on tax positions related to 2017 262 262 — Additions (reductions) for tax positions of prior years 2,415 2,352 63 Settlement payments — — — Balance at December 31, 2017 9,429 6,563 63 Additions based on tax positions related to 2018 543 543 — Additions (reductions) for tax positions of prior years 222 182 40 Settlement payments — — — Balance at December 31, 2018 $ 10,194 $ 7,288 $ 103 Included in the balance of unrecognized tax benefits at December 31, 2018 are $9.6 million , $6.7 million , and $0.1 million that, if recognized, would affect the effective tax rate for PNMR, PNM, and TNMP. The Company does not anticipate that any unrecognized tax expenses or unrecognized tax benefits will be reduced or settled in 2019 . In 2016, 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 . Of the refunds, $2.1 million was recorded as a reduction of the net 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. Estimated interest income related to refunds the Company expects to receive is included in Other income and estimated interest expense and penalties related to potential cash settlements are included in Interest Charges in the Consolidated Statements of Earnings. Interest income (expense) related to income taxes was as follows: PNMR PNM TNMP (In thousands) 2018 $ — $ — $ — 2017 $ — $ — $ — 2016 $ 4,398 $ 3,625 $ 345 There was no accumulated accrued interest receivable or payable related to income taxes as of December 31, 2018 and 2017. The Company files a federal consolidated and several consolidated and separate state income tax returns. The tax years prior to 2015 are closed to examination by either federal or state taxing authorities other than Arizona. The tax years prior to 2012 are closed to examination by Arizona taxing authorities. Other tax years are open to examination by federal and state taxing authorities. At December 31, 2018 , the Company has $474.6 million of federal net operating loss carryforwards that expire beginning in 2030 and $76.5 million of federal tax credit carryforwards that expire beginning in 2023. State net operating losses expire beginning in 2017 and vary from federal due to differences between state and federal tax law. In 2013, New Mexico House Bill 641 reduced the New Mexico corporate income tax rate from 7.6% to 5.9% . The rate reduction was 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 and an increase in a regulatory liability, based on the assumption that PNM would be required to return the benefit to customers over time. PNM’s NM 2016 Rate Case (Note 17) reflects the benefit of the lower New Mexico corporate income tax rate being returned to customers over a three-year period beginning February 1, 2018. In addition, the portion of the adjustment that was not related to PNM’s regulated activities was recorded 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 resulted in refinements of the impacts of this change in tax rates being recorded through December 31, 2017, at which time the impacts of the rate reduction were fully phased-in. Adjustments to deferred income taxes recorded as increases (decreases) in the regulatory liability and income tax expense are as follows: PNMR PNM TNMP (In thousands) December 31, 2017: Regulatory liability $ (10,109 ) $ (10,109 ) $ — Income tax expense $ (1,259 ) $ (1,179 ) $ — December 31, 2016: Regulatory liability $ (7,132 ) $ (7,132 ) $ — Income tax expense $ 712 $ 804 $ — 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 was continuously extended since that time, including by the Protecting Americans from Tax Hikes Act of 2015. The 2015 act extended and phased-out bonus tax depreciation through 2019. As discussed above the Tax Act eliminated bonus depreciation for utilities effective September 28, 2017. However, in 2018 the IRS issued proposed regulations interpreting Tax Act amendments to depreciation provisions of the Internal Revenue Code which allowed the Company to claim a bonus depreciation deduction on certain construction projects placed in service after the third quarter of 2017. As a result of the net operating loss carryforwards for income tax purposes created by bonus depreciation, certain tax carryforwards were not expected to be utilized before their expiration. In addition, as a result of Tax Act changes to the deductibility of officer compensation, certain deferred tax benefits related to compensation are not expected to be realized. In accordance with GAAP, the Company has impaired the deferred tax assets for tax carryforwards which are not expected to be utilized and for compensation that is not expected to be deductible. The impairments after reflecting the expiration of carryforwards under applicable tax laws, net of federal tax benefit, for 2016 through 2018 are as follows: PNMR PNM TNMP (In thousands) December 31, 2018: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ — $ — $ — Charitable contribution carryforwards $ — $ — $ — Compensation expense $ 410 $ 298 $ 111 December 31, 2017: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ 819 $ 627 $ — Charitable contribution carryforwards $ 909 $ — $ — December 31, 2016: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ (311 ) $ (213 ) $ — Charitable contribution carryforwards $ — $ — $ — The impairments of unexpired state tax credits, state net operating loss, and charitable contribution carryforwards are reflected as a valuation allowance against deferred tax assets. The reserve balances, after reflecting expiration of carryforwards under applicable tax laws, at December 31, 2018 and 2017 are as follows: PNMR PNM TNMP (In thousands) December 31, 2018: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ — $ — $ — Charitable contribution carryforwards $ — $ — $ — Compensation expense $ 410 $ 298 $ 111 December 31, 2017: State tax credit carryforwards $ 2,487 $ — $ — State net operating loss carryforwards $ 1,131 $ 839 $ — Charitable contribution carryforwards $ 952 $ — $ — As a result of carryforward expirations, there were no remaining impairments of state tax credits, state NOL, and charitable contribution carryforwards at December 31, 2018. The NMPRC’s order in the NM 2015 Rate Case (Note 17) approved PNM’s request to record a regulatory asset, which net of federal income taxes, amounted to $2.1 million , 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 regulatory asset was being recovered through rates over two years. The settlement of the NM 2016 Rate Case (Note 17) included $3.3 million , net of federal tax, resulting from impairment of a 2015 New Mexico net operating loss as an addition to the remaining unamortized balance of the regulatory asset from the NM 2015 Rate Case. The total balance is being recovered over three years beginning in 2018. These impacts, including amortization, are reflected in income tax expense on the Consolidated Statement of Earnings. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
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. PNMR’s reporting units that currently have goodwill are PNM and TNMP. 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. 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 considers 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 has occurred. An entity considers 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 places 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 considers 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 evaluates, 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. A quantitative analysis is not required 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. In other circumstances, an entity may perform a quantitative analysis to reach the conclusion regarding impairment with respect to a reporting unit. 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. 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, GAAP currently requires the entity 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. As further discussed under New Accounting Pronouncements in Note 1, a new accounting pronouncement changes how goodwill impairment is determined by eliminating the second step of the quantitative impairment analysis. PNMR periodically updates its quantitative analysis for both PNM and TNMP. The use of a quantitative approach in a given period is not necessarily an indication that a potential impairment has been identified under a qualitative approach. For the annual evaluations performed as of April 1, 2018, PNMR utilized a quantitative analysis for the PNM reporting unit and a qualitative analysis for the TNMP reporting unit. PNMR utilized qualitative analysis for the annual evaluations performed as of April 1, 2017 and quantitative analysis for the evaluations performed as of April 1, 2016 for both the PNM and TNMP reporting units. For the quantitative analysis, a discounted cash flow methodology was primarily used to estimate the fair value of the PNM 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 the reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment. The April 1, 2018 quantitative evaluations indicated the fair value of the PNM reporting unit, which has goodwill of $51.6 million , exceeded its carrying value by approximately 19% . The 2018 qualitative analysis for the TNMP reporting unit was performed by considering changes in expectations of future financial performance since the April 1, 2016 quantitative analysis that indicated the fair value of the TNMP reporting unit, which has goodwill of $226.7 million , exceeded its carrying value by approximately 32% . The 2018 analysis considered events specific to TNMP such as the potential impacts of legal and regulatory matters discussed in Note 17, including potential adverse outcomes in the TNMP 2018 Rate Case. Both the PNM quantitative analysis and the TNMP qualitative analysis considered market and macroeconomic factors including changes in growth rates, changes in the WACC, and changes in discount rates. The Company also evaluated its stock price relative to historical performance, industry peers, and to major market indices, including an evaluation of the Company’s market capitalization relative to the carrying value of its reporting units. Based on an evaluation of these and other factors, the Company determined it is not more likely than not that the April 1, 2018 carrying values of PNM or TNMP exceed their fair values. For the April 1, 2017 evaluation for both the PNM and TNMP reporting units, the qualitative analyses were performed by considering changes in the Company’s expectations of future financial performance since the April 1, 2016 quantitative analyses. These analyses considered Company specific events such as the potential impacts of legal and regulatory matters discussed in Note 16 and Note 17, including the estimated impacts of the proposed revised stipulation in the PNM NM 2016 Rate Case, the impacts of potential outcomes of the matters appealed to the NM Supreme Court under the NM 2015 Rate Case, and the impacts of changes in PNM’s resource needs based on PNM’s 2017 IRP. These evaluations also considered changes in TNMP’s regulatory environment such as the PUCT’s proposed amendments to the interim transmission cost of service filing rule, as well as potential outcomes associated with TNMP’s general rate case filing, which the Company anticipates filing in May 2018. The qualitative analyses also considered market and macroeconomic factors including changes in anticipated growth rates, anticipated changes in the WACC, and changes in discount rates. The Company also evaluated its stock price relative to historical performance, industry peers, and to major market indices, including an evaluation of the Company’s market capitalization relative to the carrying value of its reporting units. Based on an evaluation of these and other factors, the Company determined it is not more likely than not that the April 1, 2017 carrying values of PNM or TNMP exceed their fair values. For its annual evaluations performed as of April 1, 2016, PNMR performed quantitative analyses for both the PNM and TNMP reporting units. 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 WACC for each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment. The April 1, 2016 and 2015 quantitative evaluations for PNM both indicated the fair value of the PNM reporting unit, which has goodwill of $51.6 million , exceeded its carrying value by approximately 25% . An increase of 0.5% in the expected return on equity capital utilized in discounting the forecasted cash flows, would have reduced the excess of PNM’s fair value over carrying value to approximately 18% . 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 32% . An increase of 0.5% in the expected return on equity capital utilized in calculating the WACC used to discount the forecasted cash flows, would have reduced the excess of TNMP’s fair value over carrying value to approximately 21% at April 1, 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions PNMR, PNM, TNMP, and NMRD are considered related parties as defined under GAAP, as is PNMR Services Company, a wholly-owned subsidiary of PNMR that provides corporate services to PNMR and its subsidiaries in accordance with shared services agreements. These services are billed at cost on a monthly basis to the business units. In addition, PNMR provides construction and operations and maintenance services to NMRD, a 50% owned subsidiary of PNMR Development (Note 1), and PNM purchases renewable energy from certain NMRD-owned facilities at a fixed price per MWh of energy produced. PNM also provides interconnection services to PNMR Development (Note 7) and NMRD. PNMR files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PNMR and each of its affiliated companies. These agreements provide that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PNMR. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PNMR to the extent that PNMR is able to utilize those benefits. See Note 7 for information on intercompany borrowing arrangements. The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP: Year Ended December 31, 2018 2017 2016 (In thousands) Services billings: PNMR to PNM $ 95,637 $ 97,914 $ 94,606 PNMR to TNMP 33,493 31,095 28,907 PNM to TNMP 367 382 427 TNMP to PNMR 140 141 66 TNMP to PNM — 154 172 PNMR to NMRD 183 — — Renewable energy purchases: PNM from NMRD 2,924 — — Interconnection and facility study billings: PNM to NMRD 2,108 — — PNM to PNMR 68,820 — — Interest billings: PNMR to PNM 2,585 21 11 PNM to PNMR 289 220 150 PNMR to TNMP 136 133 132 Income tax sharing payments: PNMR to TNMP — — — PNMR to PNM — 23,391 — PNM to PNMR 134 — — TNMP to PNMR 3,424 20,686 — |
Quarterly Operating Results (Un
Quarterly Operating Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Operating Results (Unaudited) | Quarterly Operating Results (Unaudited) Unaudited operating results by quarters for 2018 and 2017 are presented below. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results of operations for such periods have been included. Quarter Ended March 31 June 30 September 30 December 31 (1) (In thousands, except per share amounts) PNMR 2018 Operating revenues $ 317,878 $ 352,313 $ 422,666 $ 343,756 Operating income (loss) 46,132 79,329 127,990 (17,404 ) Net earnings (loss) 18,799 42,449 91,573 (51,539 ) Net earnings (loss) attributable to PNMR 14,990 38,208 87,521 (55,077 ) Net earnings (loss) attributable to PNMR per common share: Basic 0.19 0.48 1.10 (0.70 ) Diluted 0.19 0.48 1.09 (0.69 ) 2017 Operating revenues $ 330,178 $ 362,320 $ 419,900 $ 332,605 Operating income 55,960 85,105 142,484 22,936 Net earnings (loss) 26,446 41,231 78,327 (50,585 ) Net earnings (loss) attributable to PNMR 22,862 37,555 73,739 (54,282 ) Net earnings attributable to PNMR per common share: Basic 0.29 0.47 0.92 (0.68 ) Diluted 0.29 0.47 0.92 (0.68 ) PNM 2018 Operating revenues $ 236,232 $ 264,511 $ 331,374 $ 259,848 Operating income (loss) 28,292 52,879 102,516 (38,654 ) Net earnings (loss) 11,514 30,781 81,428 (53,400 ) Net earnings (loss) attributable to PNM 7,837 26,672 77,508 (56,806 ) 2017 Operating revenues $ 251,558 $ 276,097 $ 327,254 $ 249,321 Operating income 38,331 59,164 113,252 1,778 Net earnings (loss) 20,110 30,476 65,283 (28,456 ) Net earnings (loss) attributable to PNM 16,658 26,932 60,827 (32,021 ) TNMP 2018 Operating revenues $ 81,646 $ 87,802 $ 91,292 $ 83,908 Operating income 18,532 26,829 27,824 23,312 Net earnings 9,413 15,367 16,100 10,711 2017 Operating revenues $ 78,620 $ 86,223 $ 92,646 $ 83,284 Operating income 17,965 26,286 29,474 19,879 Net earnings 7,604 12,204 14,727 1,024 (1) 2018 reflects pre-tax regulatory disallowances and restructuring costs of $63.3 million primarily resulting from the impairment of PNM’s 132 MW and 65 MW interests in SJGS Unit 4 and for an adjustment to PNM’s coal mine reclamation obligation for the mine that serves SJGS. See additional discussion under December 2018 Compliance Filing and under Coal Mine Reclamation in Note 16. 2017 reflects the impacts of changes in federal income tax rate of $57.5 million , $29.6 million , and $7.9 million for PNMR, PNM, and TNMP (Note 18). 2017 also reflects a pre-tax regulatory disallowance resulting from PNM’s NM 2016 Rate Case of $27.9 million (Note 17). |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent Company | SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF EARNINGS Year ended December 31, 2018 2017 2016 (In thousands) Operating Revenues $ — $ — $ — Operating Expenses 7,475 2,902 2,871 Operating income (loss) (7,475 ) (2,902 ) (2,871 ) Other Income and Deductions: Equity in earnings of subsidiaries 109,995 111,877 122,252 Other income 2,048 1,181 1,711 Net other income and deductions 112,043 113,058 123,963 Interest Charges 19,453 12,490 8,102 Earnings Before Income Taxes 85,115 97,666 112,990 Income Tax Expense (Benefit) (527 ) 17,792 (3,859 ) Net Earnings $ 85,642 $ 79,874 $ 116,849 SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 2017 2016 (In thousands) Cash Flows From Operating Activities: Net Cash Flows From Operating Activities $ (2,566 ) $ (7,814 ) $ 5,702 Cash Flows From Investing Activities: Utility plant additions 826 (180 ) 341 Investments in subsidiaries (30,000 ) (50,000 ) (98,343 ) Cash dividends from subsidiaries 129,379 105,084 35,959 Net cash flows from investing activities 100,205 54,904 (62,043 ) Cash Flows From Financing Activities: Short-term loan 50,000 — 100,000 Repayment of short-term loan — — (150,000 ) Revolving credit facility borrowings (repayments), net (148,700 ) 42,600 84,500 Long-term borrowings 349,652 — 100,000 Repayment of long-term debt (250,000 ) — — Proceeds from stock option exercise 963 1,739 7,028 Purchases to satisfy awards of common stock (12,635 ) (13,929 ) (15,451 ) Dividends paid (84,433 ) (77,264 ) (70,095 ) Other, net (2,414 ) (269 ) (28 ) Net cash flows from financing activities (97,567 ) (47,123 ) 55,954 Change in Cash and Cash Equivalents 72 (33 ) (387 ) Cash and Cash Equivalents at Beginning of Period 21 54 441 Cash and Cash Equivalents at End of Period $ 93 $ 21 $ 54 Supplemental Cash Flow Disclosures: Interest paid, net of amounts capitalized $ 15,450 $ 10,899 $ 5,906 Income taxes paid (refunded), net $ — $ — $ — SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS December 31, 2018 2017 (In thousands) Assets Cash and cash equivalents $ 93 $ 21 Intercompany receivables 82,539 96,227 Income taxes receivable 7,856 1,818 Other, net 5,635 1,937 Total current assets 96,123 100,003 Property, plant and equipment, net of accumulated depreciation of $13,518 and $13,229 25,413 26,546 Investment in subsidiaries 2,064,693 2,056,198 Other long-term assets 60,265 66,090 Total long-term assets 2,150,371 2,148,834 $ 2,246,494 $ 2,248,837 Liabilities and Stockholders’ Equity Short-term debt $ 170,000 $ 265,600 Short-term debt-affiliate 8,819 11,919 Current maturities of long-term debt — 249,979 Accrued interest and taxes 4,885 1,661 Other current liabilities 23,297 21,274 Total current liabilities 207,001 550,433 Long-term debt 348,310 — Other long-term liabilities 2,803 3,151 Total liabilities 558,114 553,584 Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) 1,153,112 1,157,665 Accumulated other comprehensive income (loss), net of tax (108,685 ) (95,940 ) Retained earnings 643,953 633,528 Total common stockholders’ equity 1,688,380 1,695,253 $ 2,246,494 $ 2,248,837 See Notes 7, 8, 14, and 16 for information regarding commitments, contingencies, and maturities of long-term debt. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II PNM RESOURCES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs and other Balance at end of year (In thousands) Allowance for doubtful accounts, year ended December 31: 2016 $ 1,397 $ 2,885 $ — $ 3,073 $ 1,209 2017 $ 1,209 $ 2,619 $ — $ 2,747 $ 1,081 2018 $ 1,081 $ 3,360 $ — $ 3,035 $ 1,406 SCHEDULE II PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARY A WHOLLY-OWNED SUBSIDIARY OF PNM RESOURCES, INC. VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs Balance at end of year (In thousands) Allowance for doubtful accounts, year ended December 31: 2016 $ 1,397 $ 2,871 $ — $ 3,059 $ 1,209 2017 $ 1,209 $ 2,615 $ — $ 2,743 $ 1,081 2018 $ 1,081 $ 3,338 $ — $ 3,013 $ 1,406 SCHEDULE II TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY-OWNED SUBSIDIARY OF PNM RESOURCES, INC. VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs Balance at end of year (In thousands) Allowance for doubtful accounts, year ended December 31: 2016 $ — $ 14 $ — $ 14 $ — 2017 $ — $ 4 $ — $ 4 $ — 2018 $ — $ 22 $ — $ 22 $ — |
Summary of the Business and S_2
Summary of the Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of accounting | Financial Statement Preparation and Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia (Note 10) 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’ expenses, which represent costs that are primarily driven by corporate level activities, are charged to the business segments. These services are billed at cost and are reflected as general and administrative expenses in the business segments. Other significant intercompany transactions between PNMR, PNM, and TNMP include interest and income tax sharing payments, as well as equity transactions, and interconnection billings. All intercompany transactions and balances have been eliminated. |
Accounting for the Effects of Certain Types of Regulation | Accounting for the Effects of Certain Types of Regulation The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. GAAP also provides for the recognition of revenue and regulatory assets and liabilities associated with “alternative revenue programs” authorized by regulators. Such programs allow the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not otherwise qualify for recognition of regulatory assets and liabilities. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. Information on regulatory assets and regulatory liabilities is contained in Note 13. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. |
Cash and Cash Equivalents | Cash and Restricted Cash Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash and cash equivalents. In November 2016, the FASB issued Accounting Standards Update 2016-18 - Statement of Cash Flows (Topic 230) , which requires amounts generally described as restricted cash and restricted cash equivalents (collectively, “restricted cash”) to be included with cash and cash equivalents when reconciling the beginning of period and end of period amounts shown on the statements of cash flows and adds disclosures necessary to reconcile such amounts to cash and cash equivalents on the balance sheets. ASU 2016-18 does not require that restricted cash be reflected as cash in the statement of financial position and does not provide a definition of what should be considered restricted cash. As of January 1, 2016, PNM held a deposit of $8.2 million from a third party that was restricted for PNM’s construction of transmission interconnection facilities for that party. During 2016, PNM utilized $7.2 million of such third-party deposits to offset construction costs for the interconnection facilities. The remaining $1.0 million was held as restricted cash until the second quarter of 2017, at which time a refund was made to the third party. The balances of this deposit arrangement were included in other current assets on the balance sheets of PNMR and PNM. Under the terms of the BTMU Term Loan agreement (Note 7), all cash of NM Capital was restricted to be used for payments required under that agreement or for taxes and fees. On May 22, 2018, Westmoreland repaid the Westmoreland Loan in full. NM Capital used a portion of the proceeds to repay all of its obligations under the BTMU Term Loan. These payments effectively terminated the loan agreements (Note 10). Cash held by NM Capital was included in cash and cash equivalents on the balance sheets of PNMR and was less than $0.1 million at December 31, 2017. The Company adopted ASU 2016-18 as of January 1, 2018, its required effective date. Upon adoption, ASU 2016-18 requires the use of a retrospective transition method for the statement of cash flows in each period presented. Accordingly, PNM made retrospective adjustments to its Consolidated Statements of Cash Flows to increase beginning cash, restricted cash, and equivalents by $8.2 million at January 1, 2016 and by $1.0 million January 1, 2017, and to reduce operating cash in-flows - other current assets by $7.2 million for the year ended December 31, 2016 and by $1.0 million for the year ended December 31, 2017. In addition, the beginning and ending balances of cash, restricted cash, and equivalents are presented on the Consolidated Statements of Cash Flows. No other changes were made to the Consolidated Financial Statements in connection with the adoption of ASU 2016-18. |
Utility Plant | Utility Plant Utility plant is stated at original cost, which includes capitalized payroll-related costs such as taxes, pension, other fringe benefits, administrative costs, and AFUDC, where authorized by rate regulation, or capitalized interest. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains, losses, and costs to remove resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to accumulated depreciation. PNM and TNMP may receive reimbursements, referred to as CIAC, from customers to pay for all or part of certain construction projects to extent that project does not benefit regulated customers in general. PNM and TNMP account for these reimbursements as offsets to utility plant additions based on the requirements of the NMPRC, FERC, and PUCT. Due to the PUCT’s regulatory treatment of CIAC reimbursements, TNMP also receives a financing component that is recognized as other income on the Consolidated Statements of Earnings. Under the NMPRC regulatory treatment, PNM typically does not receive a financing component. |
Depreciation and Amortization | Depreciation and Amortization PNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC and FERC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation of non-utility property is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between operating expenses and construction projects based on the use of the equipment. |
Allowance for Funds Used During Construction | Allowance for Funds Used During Construction As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction or “debt AFUDC”) and a return on other funds (allowance for equity funds used during construction or “equity AFUDC”). The debt AFUDC is recorded in interest charges and the equity AFUDC is recorded in other income on the Consolidated Statements of Earnings. |
Capitalized Interest | Capitalized Interest The Company capitalizes interest on its construction projects and major computer software projects not subject to the computation of AFUDC. Capitalized interest is recorded in interest charges. |
Materials, Supplies, and Fuel Stock | Materials, Supplies, and Fuel Stock Materials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Periodic aerial surveys are performed on the coal piles and adjustments are made. Average cost is equal to net realizable value under the ratemaking process. |
Investments | PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS and trusts for PNM’s share of final reclamation costs related to the coal mines serving SJGS and Four Corners (Note 16). Prior to 2018, PNM classified all debt and equity investments held in the NDT and coal mine reclamation trusts as available-for-sale securities. Effective January 1, 2018, the Company adopted Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10), which eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and requires those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Under ASU 2016-01, the accounting for available-for-sale debt securities remains essentially unchanged. See Note 9. PNM evaluates the securities for impairment on an on-going basis. Since third party investment managers have sole discretion over the purchase and sales of the securities, PNM records a realized loss as an impairment for any available-for-sale security that has a market value that is less than cost at the end of each quarter. For the year ended December 31, 2018 , PNM recorded impairment losses on the available-for-sale debt securities of $13.7 million . For the years ended December 31, 2017 , and 2016 , PNM recorded impairment losses on the available-for-sale securities, which included both debt and equity securities, of $7.1 million and $13.9 million . No gains or losses are deferred as regulatory assets or liabilities. Through December 31, 2017, unrealized gains on available-for-sale securities, net of related tax effects, are included in OCI and AOCI. In accordance with ASU 2016-01, unrealized gains on equity securities, net of related tax effects, were reclassified from AOCI to retained earnings on January 1, 2018. For the year ended December 31, 2018 , unrealized gains recognized in OCI and AOCI, net of related tax effects, are related only to the available-for sale debt securities. These investments are primarily comprised of international, United States, state, and municipal government obligations and corporate debt securities. All investments are held in PNM’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. |
Goodwill | Goodwill Under GAAP, the Company does not amortize goodwill. Goodwill is evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill might be impaired. |
Asset Impairment | Asset Impairment Tangible long-lived assets are evaluated in relation to the estimated future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. |
Revenue Recognition | Revenue Recognition See Note 4 for a discussion of electric operating revenues. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts Accounts receivable consists primarily of trade receivables from customers. In the normal course of business, credit is extended to customers on a short-term basis. The Company calculates the allowance for uncollectible accounts based on historical experience and estimated default rates. The accounts receivable balances are reviewed monthly and adjustments to the allowance for uncollectible accounts and bad debt expense are made as necessary. Amounts that are deemed uncollectible are written off. |
Amortization of Debt Acquisition Costs | Amortization of Debt Acquisition Costs Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or other deductions, except for amounts recoverable through NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. Unamortized debt premium, discount, and expense related to long-term are reflected as part of the debt liabilities on the Consolidated Balance Sheets. |
Derivatives and Accounting for Derivatives | Derivatives The Company records derivative instruments, including energy contracts, on the balance sheet as either an asset or liability measured at their fair value. GAAP requires that changes in the derivatives’ fair value be recognized currently in earnings unless specific hedge accounting criteria are met. For qualifying hedges, an entity must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. GAAP provides that the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument be reported as a component of AOCI and be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. See Note 7 and Note 9. The Company treats all forward commodity purchases and sales contracts subject to unplanned netting or “book-out” by the transmission provider as derivative instruments subject to mark-to-market accounting. GAAP provides guidance on whether realized gains and losses on derivative contracts not held for trading purposes should be reported on a net or gross basis and concludes such classification is a matter of judgment that depends on the relevant facts and circumstances. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, PNM accounts for its various instruments for the purchase and sale of energy, which meet the definition of a derivative, based on PNM’s intent. During the years ended December 31, 2018 , 2017 , and 2016 , PNM was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flows hedges. The derivative 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. PNM has no trading transactions. |
Decommissioning and Reclamation Costs | Decommissioning and Reclamation Costs In accordance with GAAP, PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on periodic site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions, including estimates of future decommissioning costs at current price levels, inflation rates, and discount rates. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the extended PVNGS license periods. PVNGS Units 1 and 2 are included in PNM’s retail rates and PVNGS Unit 3 was excluded through December 31, 2017, but is included in retail rates beginning in 2018. See Note 16 and Note 17. See Note 17 for information concerning the treatment of nuclear decommissioning for the leased portions of PVNGS in the NMPRC’s order in PNM’s NM 2015 Rate Case and PNM’s appeal of that order. In connection with both the SJGS and Four Corners coal supply agreements, the owners are required to reimburse the mining companies for the cost of contemporaneous reclamation, as well as the costs for final reclamation of the coal mines. The reclamation costs are based on periodic site-specific studies that estimate the costs to be incurred in the future and are dependent upon numerous assumptions, including estimates of future reclamation costs at current price levels, inflation rates, and discount rates. PNM considers the contemporaneous reclamation costs part of the cost of its delivered coal costs. See Note 16 for a discussion of reclamation costs. |
Environmental Costs | Environmental Costs The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and in some instances may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. The Company records its environmental liabilities when site assessments or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. The Company reviews its sites and measures the liability by assessing a range of reasonably likely costs for each identified site using currently available information and the probable level of involvement and financial condition of other potentially responsible parties. These estimates are based on assumptions regarding the costs for site investigations, remediation, operations and maintenance, monitoring, and site closure. The ultimate cost to clean up the Company’s identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process. |
Income Taxes | Income Taxes Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. In accordance with GAAP, all deferred taxes are reflected as non-current on the Consolidated Balance Sheets. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. GAAP requires that rate-regulated enterprises record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded based on the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory liabilities and assets offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits and amortizes them over the estimated useful lives of the assets. See Note 18 for additional information, including a discussion of the impacts of the Tax Act. The Company makes an estimate of its anticipated effective tax rate for the year as of the end of each quarterly period within its fiscal year. In interim periods, income tax expense is calculated by applying the anticipated annual effective tax rate to year-to-date earnings before taxes, which includes the earnings attributable to the Valencia non-controlling interest. GAAP also provides that certain unusual or infrequently occurring items, as well as adjustments due to enactment of new tax laws, be excluded from the estimated annual effective tax rate calculation. |
New Accounting Pronouncements | New Accounting Pronouncements Information concerning recently issued accounting pronouncements that have not been adopted by the Company is presented below. The Company does not expect difficulty in adopting these standards by their required effective dates. Accounting Standards Update 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02 to provide guidance on the recognition, measurement, presentation, and disclosure of leases. Effective January 1, 2019, ASU 2016-02 requires 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 and other leases will be required to be accounted for as financing arrangements, which are recorded in a manner that is similar to the accounting for capital leases under current GAAP. ASU 2016-02 also revises certain disclosure requirements. ASU 2016-02 allows entities to apply certain practical expedients to arrangements that exist upon adoption of the standard and provides for other practical expedients that can be applied to leases commencing after the date of adoption. As discussed in Note 8, the Company has operating leases of office buildings, vehicles, and equipment. PNM also has operating lease interests in PVNGS Units 1 and 2 that will expire in January 2023 and 2024. In addition, the Company routinely enters into land easements and right-of-way agreements but only one such agreement with the Navajo Nation has been accounted for as a lease under current guidance. The Company will elect to use many of the practical expedients available upon adoption of the standard. As a result, the Company will continue to account for its leases, including its land lease agreement with the Navajo Nation, existing as of January 1, 2019 as operating leases until they expire or a modified. The Company will also elect the use of the practical expedient related to retrospective application of the standard and will adopt the standard prospectively, rather than restating prior periods to conform to the new guidance. As of January 1, 2019, PNMR, PNM, and TNMP will record operating lease obligations and corresponding right-of-use assets aggregating approximately $160 million , $146 million , and $12 million . These amounts reflect anticipated future cash flows associated with each operating lease, including the 2018 consumer price index requirement for the right-of-way lease on the Navajo Nation, discounted at PNMR’s, PNM’s, and TNMP’s fully collateralized borrowing rates, except for fleet operating leases which contain specified interest rates. The Company anticipates the majority of its fleet leases, and certain of its leases for office equipment, commencing after the effective date of the new standard will be recorded as financing leases. After the date of adoption, the Company anticipates it will elect the use of the practical expedient to combine the lease and non-lease components for its fleet and office building leases, and to elect the practical expedient allowing leases with expected terms of less than one -year to not be recorded on its Consolidated Balance Sheets. The standard also expands disclosure requirements related to leases, which will be provided beginning in 2019. 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 2016-13, which 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 the remaining lives of the assets. In November 2018, the FASB clarified that receivables arising from operating leases are not within the scope of Topic 326 for assets measured at amortized costs. Instead, impairments of receivables arising from operating leases should be accounted for in accordance with Topic 842. The Company anticipates adopting ASU 2016-13 effective as of January 1, 2020, its required effective date. 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 its financial statements. Accounting Standards Update 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 to simplify the annual goodwill impairment assessment process. Currently, the first step of a quantitative impairment test requires an entity to compare the fair value of each reporting unit containing goodwill 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 requires 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. ASU 2017-04 eliminates the second step of the impairment analysis. Accordingly, if the first step of a quantitative goodwill impairment analysis performed after adoption of ASU 2017-04 indicates that the fair value of a reporting unit is less than its carrying value, the goodwill of that reporting unit would be impaired to the extent of that difference. The Company anticipates it will adopt ASU 2017-04 for impairment testing after January 1, 2020, its required effective date, although early adoption is permitted. However, if there is an indication of potential impairment of goodwill as a result of an impairment assessment prior to 2020, the Company will evaluate the impact of ASU 2017-04 and could elect to early adopt this standard. Accounting Standards Update 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12 to better align hedge accounting with an organization’s risk management activities and to simplify the application of hedge accounting guidance. ASU 2017-12 is effective for the Company on January 1, 2019 although early adoption is permitted. At adoption, ASU 2017-12 is to be applied prospectively and allows entities to record a cumulative-effect adjustment at the transition date as well as allowing entities to elect certain practical expedients upon adoption. As discussed in Note 7, the Company periodically enters into, and designates as cash flow hedges, interest rate swaps to hedge its exposure to changes in interest rates. In addition, as discussed in Note 9, the Company enters into various derivative instruments to economically hedge the risk of changes in commodity prices, which are not currently designated as cash flow hedges. Beginning on January 1, 2018, PNM’s capacity in PVNGS Unit 3 is being used as a resource to serve NM retail customers (Note 16). As a result, the Company’s exposure to fluctuations in commodity prices, as well as its use of economic hedging transactions, has been significantly reduced. The Company will adopt ASU 2017-12 on its January 1, 2019 effective date and does not anticipate the changes will have a significant impact on the Company’s financial statements. Accounting Standards Update 2018-13 – Fair Value Measurements (Topic 820) Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-13 to improve fair value disclosures. ASU 2018-13 eliminates certain disclosure requirements related to transfers between Levels 1 and 2 of the fair value hierarchy and the requirement to disclose the valuation process for Level 3 fair value measurements. ASU 2018-13 also amends certain disclosure requirements for investments measured at net asset value and requires new disclosures for Level 3 investments, including a new requirement to disclose changes in unrealized gains or losses recorded in OCI related to Level 3 fair value measurements. ASU 2018-13 is effective for the Company beginning on January 1, 2020 and permits entities to adopt all or certain elements of the new guidance prior to its effective date. ASU 2018-13 requires retrospective application, except for the new disclosures related to Level 3 investments which are to be applied prospectively. As discussed in Note 9, PNM and TNMP have investment securities in trusts for decommissioning, reclamation, pension benefits, and other postretirement benefits, which are measured at fair value. Certain investments in these trusts are measured at net asset value per share. These trusts also hold Level 3 investments. The Company is evaluating the requirements of ASU 2018-13, but does not anticipate it will have a significant impact on the Company’s fair value disclosures. Accounting Standards Update 2018-14 – Compensation - Retirement Benefits - Defined Benefit Plans (Topic 715) Disclosure Framework: Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14 to improve benefit plan sponsors’ disclosures for defined benefit pension and other post-employment benefit plans. ASU 2018-14 removes the requirement to disclose the amounts in other comprehensive income expected to be recognized as benefit cost over the next fiscal year and the requirement to disclose the impact of a one-percentage-point change in the assumed health care cost trend rate; clarifies the disclosure requirements for plans with assets that are less than their projected benefit, or accumulated benefit obligation; and requires significant gains and losses affecting benefit obligations during the period be disclosed. ASU 2018-14 is effective for the Company on January 1, 2021, although early adoption is permitted, and requires retrospective application. As discussed in Note 11, PNM and TNMP maintain qualified defined benefit, other postretirement benefit plans providing medical and dental benefits, and executive retirement programs. The Company is in the process of evaluating the requirements of ASU 2018-14 but does not anticipate these changes will have a significant impact on the Company’s defined benefit and other postretirement benefit plan disclosures. Accounting Standards Update 2018-15 – Intangibles - Goodwill and Other - Internal Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for implementation costs incurred to develop or obtain internal-use software. Under ASU 2018-15, entities are required to capitalize implementation costs for hosting arrangements if those costs meet the capitalization requirements for internal-use software arrangements. ASU 2018-15 requires entities to present cash flows, capitalized costs, and amortization expense in the same financial statement line items as other costs incurred for such hosting arrangements. ASU 2018-15 is effective for the Company on January 1, 2020, although early adoption is permitted, and allows entities to apply the new requirements retrospectively or prospectively. The Company is in the process of analyzing the impacts of this new standard. Accounting Standards Update 2018-18 - Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 In November 2018, the FASB issued ASU 2018-18 to clarify transactions between collaborative arrangement participants that should be recognized as revenue under Topic 606. ASU 2018-18 is effective for the Company on January 1, 2020, although early adoption is permitted, and requires retrospective application. The Company has collaborative arrangements related to its interests in SJGS, Four Corners, PVNGS, and Luna. The Company believes its current accounting practices comply with the requirements of ASU 2018-18 but is in the process of analyzing the impacts of the new standard. |
Segment Information | The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided. |
Fair Value of Derivatives | 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. 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 years ended December 31, 2018 and 2017 . See New Accounting Pronouncements in Note 1. For investment securities, Level 2 and Level 3 fair values are provided by fund managers utilizing a pricing service. For Level 2 fair values, 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. Fair values of Level 2 investments in mutual funds are equal to net asset value as of year-end. Level 3 investments are comprised of corporate term loans and, at December 31, 2017, the Westmoreland Loan. 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. The valuation of Level 3 investments requires significant judgment by the pricing provider due to the absence of quoted market values, changes in market conditions, and the long-term nature of the assets. The significant unobservable inputs include the trading multiples of public companies that are considered comparable to the company being valued, company specific issues, estimates of liquidation value, current operating performance and future expectations of performance, changes in market outlook and the financing environment, capitalization rates, discount rates, and cash flows. For the Westmoreland Loan, fair values were determined using an internal valuation model of discounted cash flows that took into consideration discount rates observable for similar types of assets and liabilities. Management of the Company independently verifies the information provided by pricing services. |
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. |
Pension and Other Postretirement Benefits | The expected long-term rate of return on pension and postretirement plan assets is calculated on the market-related value of assets. GAAP requires that actual gains and losses on pension and OPEB plan assets be recognized in the market-related value of assets equally over a period of not more than five years, which reduces year-to-year volatility. GAAP requires a plan sponsor to (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. GAAP requires unrecognized prior service costs and unrecognized gains or losses to be recorded in AOCI and subsequently amortized. The amortization of these incurred costs is included as pension and postretirement benefit periodic cost or income in subsequent years. To the extent the amortization of these items will ultimately be recovered or returned through future rates, PNM and TNMP record the costs as a regulatory asset or regulatory liability. |
Commitments and Contingencies | There are various claims and lawsuits pending against the Company. In addition, the Company 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 17) proceedings in the normal course of its business. It is not possible at this time for the Company to determine fully the effect of all litigation and other legal and regulatory proceedings on its financial position, results of operations, or cash flows. With respect to some of the items listed below, the Company has determined that a loss is not probable or that, to the extent probable, cannot be reasonably estimated. In some cases, the Company is not able to predict with any degree of certainty the range of possible loss that could be incurred. 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. |
Summary of the Business and S_3
Summary of the Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Average Rates Used Allocated Between Depreciation Expense and Construction Expense Projects Based on Use of Equipment | Average straight-line rates used were as follows: Year ended December 31 2018 2017 2016 PNM Electric plant 2.40 % 2.52 % 2.33 % Common, intangible, and general plant 8.18 % 8.36 % 5.40 % TNMP 3.49 % 3.57 % 3.66 % |
Schedule of Inventory | Inventories consisted of the following at December 31 : PNMR PNM TNMP 2018 2017 2018 2017 2018 2017 (In thousands) Coal $ 22,777 $ 16,714 $ 22,777 $ 16,714 $ — $ — Materials and supplies 49,057 49,788 44,320 44,145 4,737 5,643 $ 71,834 $ 66,502 $ 67,097 $ 60,859 $ 4,737 $ 5,643 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segments | 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. 2018 PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Electric operating revenues $ 1,091,965 $ 344,648 $ — $ 1,436,613 Cost of energy 314,036 85,690 — 399,726 Utility margin 777,929 258,958 — 1,036,887 Other operating expenses 481,030 96,272 (17,650 ) 559,652 Depreciation and amortization 151,866 66,189 23,133 241,188 Operating income (loss) 145,033 96,497 (5,483 ) 236,047 Interest income 13,089 — 2,451 15,540 Other income (deductions) (17,312 ) 4,065 (2,039 ) (15,286 ) Interest charges (76,458 ) (32,091 ) (18,695 ) (127,244 ) Segment earnings (loss) before income taxes 64,352 68,471 (23,766 ) 109,057 Income taxes (benefit) (5,971 ) 16,880 (3,134 ) 7,775 Segment earnings (loss) 70,323 51,591 (20,632 ) 101,282 Valencia non-controlling interest (15,112 ) — — (15,112 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 54,683 $ 51,591 $ (20,632 ) $ 85,642 At December 31, 2018: Total Assets $ 5,035,883 $ 1,665,177 $ 164,491 $ 6,865,551 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2017 PNM TNMP Corporate and Other PNMR Consolidated Electric operating revenues $ 1,104,230 $ 340,773 $ — $ 1,445,003 Cost of energy 321,677 85,802 — 407,479 Utility margin 782,553 254,971 — 1,037,524 Other operating expenses 414,457 98,221 (22,135 ) 490,543 Depreciation and amortization 147,017 63,146 21,779 231,942 Operating income 221,079 93,604 356 315,039 Interest income 8,454 — 7,462 15,916 Other income (deductions) 22,132 3,551 (3,254 ) 22,429 Interest charges (82,697 ) (30,084 ) (14,844 ) (127,625 ) Segment earnings (loss) before income taxes 168,968 67,071 (10,280 ) 225,759 Income taxes 81,555 31,512 17,273 130,340 Segment earnings (loss) 87,413 35,559 (27,553 ) 95,419 Valencia non-controlling interest (15,017 ) — — (15,017 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 71,868 $ 35,559 $ (27,553 ) $ 79,874 At December 31, 2017: Total Assets $ 4,921,563 $ 1,500,770 $ 223,770 $ 6,646,103 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2016 PNM TNMP Corporate and Other PNMR Consolidated Electric operating revenues $ 1,035,913 $ 327,038 $ — $ 1,362,951 Cost of energy 299,714 80,882 — 380,596 Utility margin 736,199 246,156 — 982,355 Other operating expenses 407,922 93,389 (12,791 ) 488,520 Depreciation and amortization 133,447 61,126 14,537 209,110 Operating income (loss) 194,830 91,641 (1,746 ) 284,725 Interest income 10,173 — 12,120 22,293 Other income (deductions) 15,326 3,202 (1,739 ) 16,789 Interest charges (87,469 ) (29,335 ) (11,829 ) (128,633 ) Segment earnings (loss) before income taxes 132,860 65,508 (3,194 ) 195,174 Income taxes (benefit) 40,922 23,836 (1,480 ) 63,278 Segment earnings (loss) 91,938 41,672 (1,714 ) 131,896 Valencia non-controlling interest (14,519 ) — — (14,519 ) Subsidiary preferred stock dividends (528 ) — — (528 ) Segment earnings (loss) attributable to PNMR $ 76,891 $ 41,672 $ (1,714 ) $ 116,849 At December 31, 2016: Total Assets $ 4,867,546 $ 1,383,223 $ 220,311 $ 6,471,080 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 |
Schedule of Major Customers | Three REPs accounted for more than 10% of the electric operating revenues of TNMP, as follows: Year Ended December 31, 2018 2017 2016 REP A 21 % 16 % 16 % REP B 15 % 11 % 11 % REP C 12 % 10 % 11 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information regarding AOCI is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Gains on Available-for-Sale Securities Pension Liability Adjustment Total Fair Value Adjustment for Cash Flow Hedges Total (In thousands) Balance at December 31, 2015 $ 17,346 $ (88,822 ) $ (71,476 ) $ 44 $ (71,432 ) Amounts reclassified from AOCI (pre-tax) (22,139 ) 5,504 (16,635 ) 764 (15,871 ) Income tax impact of amounts reclassified 8,639 (2,148 ) 6,491 (298 ) 6,193 Other OCI changes (pre-tax) 778 (18,501 ) (17,723 ) (874 ) (18,597 ) Income tax impact of other OCI changes (304 ) 7,219 6,915 341 7,256 Net after-tax change (13,026 ) (7,926 ) (20,952 ) (67 ) (21,019 ) Balance at December 31, 2016 4,320 (96,748 ) (92,428 ) (23 ) (92,451 ) Amounts reclassified from AOCI (pre-tax) (17,567 ) 6,452 (11,115 ) 581 (10,534 ) Income tax impact of amounts reclassified 6,816 (2,504 ) 4,312 (225 ) 4,087 Other OCI changes (pre-tax) 28,160 3,618 31,778 1,000 32,778 Income tax impact of other OCI changes (10,927 ) (919 ) (11,846 ) (388 ) (12,234 ) Net after-tax change 6,482 6,647 13,129 968 14,097 Reclassification of stranded income taxes to retained earnings (Note 18) 2,367 (20,161 ) (17,794 ) 208 (17,586 ) Balance at December 31, 2017, as originally reported 13,169 (110,262 ) (97,093 ) 1,153 (95,940 ) Cumulative effect adjustment (Note 9) (11,208 ) — (11,208 ) — (11,208 ) Balance at January 1, 2018, as adjusted 1,961 (110,262 ) (108,301 ) 1,153 (107,148 ) Amounts reclassified from AOCI (pre-tax) (3,819 ) 7,568 3,749 216 3,965 Income tax impact of amounts reclassified 970 (1,922 ) (952 ) (56 ) (1,008 ) Other OCI changes (pre-tax) 3,790 (10,382 ) (6,592 ) 570 (6,022 ) Income tax impact of other OCI changes (963 ) 2,637 1,674 (145 ) 1,529 Net after-tax change (22 ) (2,099 ) (2,121 ) 585 (1,536 ) Balance at December 31, 2018 $ 1,939 $ (112,361 ) $ (110,422 ) $ 1,738 $ (108,684 ) |
Electric Operating Revenue (Tab
Electric Operating Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. The table also reflects ARP revenues and other revenues. PNM TNMP PNMR Consolidated Year Ended December 31, 2018 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 433,009 $ 130,288 $ 563,297 Commercial 408,333 111,261 519,594 Industrial 61,119 17,317 78,436 Public authority 21,688 5,609 27,297 Economy energy service 26,764 — 26,764 Transmission 54,280 66,991 121,271 Miscellaneous 14,098 8,983 23,081 Total revenues from contracts with customers 1,019,291 340,449 1,359,740 Alternative revenue programs (2,443 ) 4,199 1,756 Other electric operating revenues 75,117 — 75,117 Total Electric Operating Revenues $ 1,091,965 $ 344,648 $ 1,436,613 |
Contract with Customer, Asset and Liability | Changes during the period in the balances of contract liabilities, which are included in other current liabilities on the Consolidated Balance Sheets, are as follows: PNM TNMP PNMR Consolidated (In thousands) Balance at December 31, 2017 $ 349 $ — $ 349 Consideration received in advance of service to be provided 4,660 1,512 6,172 Deferred revenue earned (4,660 ) (1,512 ) (6,172 ) Balance at December 31, 2018 $ 349 $ — $ 349 |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share and Dividends per Share | Earnings and Dividends Per Share In accordance with GAAP, dual presentation of basic and diluted earnings per share has been presented in the Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share and dividends per share is as follows: Year Ended December 31, 2018 2017 2016 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 85,642 $ 79,874 $ 116,849 Average Number of Common Shares: Outstanding during year 79,654 79,654 79,654 Vested awards of restricted stock 236 237 104 Average Shares – Basic 79,890 79,891 79,758 Dilutive Effect of Common Stock Equivalents: Stock options and restricted stock 122 250 374 Average Shares – Diluted 80,012 80,141 80,132 Net Earnings Attributable to PNMR Per Share of Common Stock: Basic $ 1.07 $ 1.00 $ 1.47 Diluted $ 1.07 $ 1.00 $ 1.46 Dividends Declared per Common Share $ 1.0850 $ 0.9925 $ 0.9025 |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Information concerning the funding dates, maturities and interest rates on the TNMP 2019 Bonds to be issued in March 2019 and on or before July 1, 2019 is as follows: Scheduled Funding Date Maturity Date Principal Amount Interest Rate (In millions) March 29, 2019 March 29, 2034 $ 75.0 3.79 % March 29, 2019 March 29, 2039 75.0 3.92 % March 29, 2019 March 29, 2044 75.0 4.06 % 225.0 July 1, 2019 July 1, 2029 80.0 3.60 % $ 305.0 Reflecting mandatory tender dates, but excluding the impact of the refinancings under the PNM 2019 Term Loan and the TNMP 2019 Bond Purchase Agreement discussed above, long-term debt maturities as of December 31, 2018 are follows: PNMR PNM TNMP PNMR Consolidated (In thousands) 2019 $ — $ 200,000 $ 172,302 $ 372,302 2020 140,000 100,345 35,000 275,345 2021 300,000 306,000 — 606,000 2022 — 57,000 — 57,000 2023 — 55,000 — 55,000 Thereafter — 947,500 353,198 1,300,698 Total $ 440,000 $ 1,665,845 $ 560,500 $ 2,666,345 |
Schedule of Short-term Debt | Short-term debt outstanding consists of: December 31, Short-term Debt 2018 2017 (In thousands) PNM: PNM Revolving Credit Facility $ 32,400 $ 39,800 PNM 2017 New Mexico Credit Facility 10,000 — 42,400 39,800 TNMP Revolving Credit Facility 17,500 — PNMR: PNMR Revolving Credit Facility 20,000 165,600 PNMR One-Year Term Loans (1) 150,000 100,000 PNMR Development Revolving Credit Facility 6,000 — $ 235,900 $ 305,400 |
Schedule of Long-term Debt Instruments | Information concerning long-term debt outstanding and unamortized (premiums), discounts, and debt issuance costs is as follows: December 31, 2018 December 31, 2017 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) PNM Debt Senior Unsecured Notes, Pollution Control Revenue Bonds: 1.875% due April 2033, mandatory tender - October 1, 2021 $ 146,000 $ 1,022 $ 146,000 $ 1,383 6.25% due January 2038 36,000 216 36,000 228 2.125% due June 2040, mandatory tender - June 1, 2022 37,000 314 37,000 404 5.20% due June 2040, mandatory tender - June 1, 2020 40,045 62 40,045 105 5.90% due June 2040 255,000 1,950 255,000 2,040 6.25% due June 2040 11,500 88 11,500 92 2.45% due September 2042, mandatory tender - June 1, 2022 20,000 119 20,000 153 2.40% due June 2043, mandatory tender - June 1, 2020 39,300 146 39,300 243 5.20% due June 2043, mandatory tender - June 1, 2020 21,000 31 21,000 53 Senior Unsecured Notes: 7.95% due May 2018 — — 350,000 272 7.50% due August 2018 — — 100,025 73 5.35% due October 2021 160,000 455 160,000 617 3.15% due May 2023 55,000 338 — — 3.45% due May 2025 104,000 666 — — 3.85% due August 2025 250,000 1,974 250,000 2,274 3.68% due May 2028 88,000 581 — — 3.78% due August 2028 15,000 101 — — 3.93% due May 2033 38,000 256 — — 4.22% due May 2038 45,000 307 — — 4.50% due May 2048 20,000 138 — — 4.60% due August 2048 85,000 590 — — PNM 2017 Term Loan due January 2019 200,000 1 200,000 23 1,665,845 9,355 1,665,870 7,960 Less current maturities — — 25 2 1,665,845 9,355 1,665,845 7,958 December 31, 2018 December 31, 2017 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) TNMP Debt First Mortgage Bonds: 9.50% due April 2019 172,302 206 172,302 1,032 6.95% due April 2043 93,198 (17,347 ) 93,198 (18,057 ) 4.03% due July 2024 80,000 580 80,000 686 3.53% due February 2026 60,000 585 60,000 667 3.22% due August 2027 60,000 494 60,000 552 3.85% due June 2028 60,000 584 — — TNMP 2018 Term Loan due July 2020 35,000 — — — 560,500 (14,898 ) 465,500 (15,120 ) Less current maturities — — — — 560,500 (14,898 ) 465,500 (15,120 ) PNMR Debt PNMR 2015 Term Loan due March 2018 — — 150,000 12 BTMU Term Loan — — 50,137 1,001 PNMR 2016 Two-Year Term Loan due December 2018 — — 100,000 9 PNMR 3.25% 2018 SUNs due March 2021 300,000 1,690 — — PNMR Development Term Loan due November 2020 90,000 88 — — PNMR 2018 Two-Year Term Loan due December 2020 50,000 — — — 440,000 1,778 300,137 1,022 Less current maturities — — 257,268 396 440,000 1,778 42,869 626 Total Consolidated PNMR Debt 2,666,345 (3,765 ) 2,431,507 (6,138 ) Less current maturities — — 257,293 398 $ 2,666,345 $ (3,765 ) $ 2,174,214 $ (6,536 ) |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Rent Expense | Operating lease expense, including the PVNGS leases was: PNMR PNM TNMP (In thousands) 2018 $ 37,959 $ 33,085 $ 4,351 2017 $ 35,972 $ 31,817 $ 3,570 2016 $ 37,432 $ 32,843 $ 3,748 |
Schedule of Future Minimum Operating Lease Payments | Future expected operating lease payments at December 31, 2018 are shown below: PNMR PNM TNMP (In thousands) 2019 $ 31,772 $ 27,691 $ 3,664 2020 30,404 27,000 3,102 2021 29,012 26,462 2,324 2022 28,175 26,217 1,795 2023 18,868 17,447 1,279 Later years 43,489 42,329 1,150 Total minimum lease payments $ 181,720 $ 167,146 $ 13,314 |
Fair Value of Derivative and _2
Fair Value of Derivative and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Derivative and Other Financial Instruments [Abstract] | |
Schedule of Commodity Derivatives | PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows: Economic Hedges December 31, 2018 2017 (In thousands) Current assets $ 1,083 $ 1,088 Deferred charges 2,511 3,556 3,594 4,644 Current liabilities (1,177 ) (1,182 ) Long-term liabilities (2,511 ) (3,556 ) (3,688 ) (4,738 ) Net $ (94 ) $ (94 ) |
Summary of the Effect of Mark-to-Market Commodity Derivative Instruments on Earnings | The following table presents the effect of mark-to-market commodity derivative instruments on PNM’s earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented. Economic Hedges Year Ended 2018 2017 2016 (In thousands) Electric operating revenues $ (50 ) $ 5,151 $ (53 ) Cost of energy (52 ) (5,386 ) (1,208 ) Total gain (loss) $ (102 ) $ (235 ) $ (1,261 ) |
Schedule of Net Buy (Sell) Volume Positions | The table below presents PNM’s net buy (sell) volume positions: Economic Hedges MMBTU MWh December 31, 2018 100,000 — December 31, 2017 100,000 — |
Schedule of Fair Value and Unrealized Gains of Available-for-sale Securities | In January 2016, the FASB issued Accounting Standards Update 2016-01 – Financial Instruments (Subtopic 825-10), which makes targeted improvements to GAAP regarding financial instruments. ASU 2016-01 eliminates the requirement to classify investments in equity securities with readily determinable fair values into trading or available-for-sale categories and requires those equity securities to be measured at fair value with changes in fair value recognized in net income rather than in OCI. Under ASU 2016-01, the accounting for available-for-sale debt securities remains essentially unchanged. The accounting required by ASU 2016-01 is to be applied prospectively with a cumulative effect adjustment recorded as of the beginning of the year of adoption. ASU 2016-01 also revises certain presentation and disclosure requirements. Accordingly, the following information for 2018 is presented under ASU 2016-01 and the information for 2017 is presented under prior GAAP. Prior to 2018, PNM classified all debt and equity investments held in the NDT and coal mine reclamation trusts as available-for-sale securities. Unrealized losses on these securities were recorded immediately through earnings and unrealized gains were recorded in AOCI until the securities were sold. On January 1, 2018, PNM recorded an after-tax cumulative effect adjustment of $11.2 million to reclassify unrealized holding gains on equity securities held in the NDT and coal mine reclamation trusts from AOCI to retained earnings on the Consolidated Balance Sheets. After January 1, 2018, all gains and losses resulting from sales and changes in the fair value of equity securities are recognized in earnings. Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table. Year Ended December 31, 2018 (In thousands) Equity securities: Net gains from equity securities sold $ 4,864 Net (losses) from equity securities still held (10,523 ) Total net (losses) on equity securities (5,659 ) Available-for-sale debt securities: Net (losses) on debt securities (11,517 ) Net (losses) on investment securities $ (17,176 ) |
Schedule of Realized Gain (Loss) | Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table. Year Ended December 31, 2018 (In thousands) Equity securities: Net gains from equity securities sold $ 4,864 Net (losses) from equity securities still held (10,523 ) Total net (losses) on equity securities (5,659 ) Available-for-sale debt securities: Net (losses) on debt securities (11,517 ) Net (losses) on investment securities $ (17,176 ) Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $(9.4) million , $3.3 million , and $(1.2) million for the years ended December 31, 2018 , 2017 and 2016 . Year Ended December 31, 2018 2017 2016 (In thousands) Proceeds from sales $ 984,533 $ 637,492 $ 522,601 Gross realized gains $ 19,358 $ 36,896 $ 46,116 Gross realized (losses) $ (16,624 ) $ (12,993 ) $ (25,430 ) |
Investments Classified by Contractual Maturity Date | At December 31, 2018 , the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 12,488 After 1 year through 5 years 63,600 After 5 years through 10 years 60,344 After 10 years through 15 years 9,984 After 15 years through 20 years 10,904 After 20 years 48,418 $ 205,738 |
Schedule of Instruments Presented by Level of Hierarchy | Items recorded at fair value by PNM on the Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities. Under ASU 2016-01, PNM does not classify its investments in equity instruments as available-for-sale securities beginning January 1, 2018. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Unrealized Gains (In thousands) December 31, 2018 Cash and cash equivalents $ 11,472 $ 11,472 $ — $ — Equity securities: Corporate stocks, common 32,997 32,997 — — Corporate stocks, preferred 7,258 1,654 5,604 — Mutual funds and other 70,777 70,777 — — Available-for-sale debt securities: U.S. Government 29,503 18,662 10,841 — $ 1,098 International Government 8,435 — 8,435 — 90 Municipals 53,642 — 53,642 — 489 Corporate and other 114,158 588 111,414 2,156 923 $ 328,242 $ 136,150 $ 189,936 $ 2,156 $ 2,600 Commodity derivative assets $ 3,594 $ — $ 3,594 $ — Commodity derivative liabilities (3,688 ) — (3,688 ) — Net $ (94 ) $ — $ (94 ) $ — December 31, 2017 Available-for-sale securities Cash and cash equivalents $ 52,636 $ 52,636 $ — $ — Equity securities: Domestic value 40,032 40,032 — — $ 4,011 Domestic growth 35,456 35,456 — — 3,995 International and other 45,867 42,332 3,535 — 6,810 Fixed income securities: U.S. Government 34,317 33,645 672 — 273 Municipals 48,076 — 48,076 — 1,225 Corporate and other 67,140 — 67,140 — 1,714 $ 323,524 $ 204,101 $ 119,423 $ — $ 18,028 Commodity derivative assets $ 4,644 $ — $ 4,644 $ — Commodity derivative liabilities (4,738 ) — (4,738 ) — Net $ (94 ) $ — $ (94 ) $ — |
Summary of Carrying Amounts and Fair Value of Instruments | The carrying amounts and fair values of investments in the Westmoreland Loan, other investments, and long-term debt, which are not recorded at fair value on the Consolidated Balance Sheets are presented below: GAAP Fair Value Hierarchy Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNMR Long-term debt $ 2,670,111 $ 2,703,810 $ — $ 2,703,810 $ — Other investments $ 297 $ 297 $ 297 $ — $ — PNM Long-term debt $ 1,656,490 $ 1,668,736 $ — $ 1,668,736 $ — Other investments $ 91 $ 91 $ 91 $ — $ — TNMP Long-term debt $ 575,398 $ 597,236 $ — $ 597,236 $ — Other investments $ 206 $ 206 $ 206 $ — $ — December 31, 2017 PNMR Long-term debt $ 2,437,645 $ 2,554,836 $ — $ 2,554,836 $ — Westmoreland Loan $ 56,640 $ 66,588 $ — $ — $ 66,588 Other investments $ 503 $ 503 $ 503 $ — $ — PNM Long-term debt $ 1,657,910 $ 1,727,135 $ — $ 1,727,135 $ — Other investments $ 283 $ 283 $ 283 $ — $ — TNMP Long-term debt $ 480,620 $ 527,563 $ — $ 527,563 $ — Other investments $ 220 $ 220 $ 220 $ — $ — |
Schedule of Investments Held by the Employee Benefit Plans | The fair values of investments held by the employee benefit plans are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 412,790 $ 139,673 $ 272,829 $ 288 Uncategorized investments 76,874 Total Master Trust Investments $ 489,664 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 45,283 $ 15,149 $ 30,101 $ 33 Uncategorized investments 9,378 Total Master Trust Investments $ 54,661 PNM OPEB Plan Cash and cash equivalents $ 190 $ 190 $ — $ — Equity securities: Mutual funds 69,513 32,325 37,188 — $ 69,703 $ 32,515 $ 37,188 $ — TNMP OPEB Plan Cash and cash equivalents $ 66 $ 66 $ — $ — Equity securities: Mutual funds 8,725 3,723 5,002 — $ 8,791 $ 3,789 $ 5,002 $ — GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 487,498 $ 140,218 $ 347,089 $ 191 Uncategorized investments 74,768 Total Master Trust Investments $ 562,266 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 53,273 $ 15,244 $ 38,008 $ 21 Uncategorized investments 10,260 Total Master Trust Investments $ 63,533 PNM OPEB Plan Cash and cash equivalents $ 437 $ 437 $ — $ — Equity securities: International funds 10,636 — 10,636 — Domestic value 10,816 10,816 — — Domestic growth 6,710 6,710 — — Other funds 31,660 — 31,660 — Fixed income securities: Mutual funds 20,918 20,918 — — $ 81,177 $ 38,881 $ 42,296 $ — TNMP OPEB Plan Cash and cash equivalents $ 149 $ 149 $ — $ — Equity securities: International funds 1,597 — 1,597 — Domestic value 293 293 — — Domestic growth 1,410 1,410 — — Other funds 4,011 — 4,011 — Fixed income securities: Mutual funds 2,685 2,685 — — $ 10,145 $ 4,537 $ 5,608 $ — The fair values of investments in the PNMR Master Trust are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 (In thousands) PNMR Master Trust Cash and cash equivalents $ 20,120 $ 20,120 $ — $ — Equity securities: Corporate stocks, common 54,270 54,270 — — Corporate stocks, preferred 874 — 874 — Mutual funds and other 143,517 — 143,517 — — — — — Fixed income securities: U.S. government 84,459 80,482 3,977 — International government 5,721 — 5,721 — Municipals 9,558 — 9,558 — Corporate and other 139,554 (50 ) 139,283 321 Total investments categorized within fair value hierarchy 458,073 $ 154,822 $ 302,930 $ 321 Uncategorized investments: Private equity funds 18,021 Hedge funds 45,589 Real estate funds 22,642 $ 544,325 December 31, 2017 PNMR Master Trust Cash and cash equivalents $ 7,697 $ 7,697 $ — $ — Equity securities: International 42,048 — 42,048 — Domestic value 37,026 37,026 — — Domestic growth 19,136 19,136 — — Other funds 25,099 — 25,099 — Fixed income securities: Corporate 215,535 — 215,323 212 U.S. Government 117,572 91,603 25,969 — Municipals 11,438 — 11,438 — Other funds 65,220 — 65,220 — Total investments categorized within fair value hierarchy 540,771 $ 155,462 $ 385,097 $ 212 Uncategorized investments: Private equity funds 22,281 Hedge funds 45,615 Real estate funds 17,132 $ 625,799 |
Summary of Level 3 Measurements | A reconciliation of the changes in Level 3 fair value measurements is as follows: Fixed Income - Corporate PNMR Master Trust PNM Pension TNMP Pension Total Master Trust (In thousands) Balance at December 31, 2016 $ 352 $ 38 $ 390 Actual return on assets sold during the period 1 — 1 Actual return on assets still held at period end (7 ) (1 ) (8 ) Purchases 92 10 102 Sales (247 ) (26 ) (273 ) Balance at December 31, 2017 191 21 212 Actual return on assets sold during the period (7 ) (1 ) (8 ) Actual return on assets still held at period end (1 ) — (1 ) Purchases 192 23 215 Sales (87 ) (10 ) (97 ) Balance at December 31, 2018 $ 288 $ 33 $ 321 The following table presents information about the PBO, fair value of plan assets, and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) PBO at beginning of year $ 623,983 $ 621,751 $ 68,423 $ 67,061 Service cost — — — — Interest cost 24,270 26,908 2,625 2,887 Actuarial (gain) loss (41,025 ) 26,298 (5,216 ) 3,050 Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) PBO at end of year 564,258 623,983 60,587 68,423 Fair value of plan assets at beginning of year 562,016 543,601 63,499 60,624 Actual return on plan assets (29,068 ) 69,389 (3,180 ) 7,450 Employer contributions — — — — Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) Fair value of plan assets at end of year 489,978 562,016 55,074 63,499 Funded status – asset (liability) for pension benefits $ (74,280 ) $ (61,967 ) $ (5,513 ) $ (4,924 ) The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) APBO at beginning of year $ 89,897 $ 94,269 $ 12,279 $ 12,830 Service cost 83 96 134 143 Interest cost 3,439 4,025 477 556 Participant contributions 2,390 3,069 174 379 Actuarial (gain) loss (12,206 ) (1,601 ) (2,213 ) (381 ) Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) APBO at end of year 75,305 89,897 10,064 12,279 Fair value of plan assets at beginning of year 80,356 72,694 10,002 8,544 Actual return on plan assets (7,669 ) 14,222 (988 ) 1,642 Employer contributions 2,924 332 343 685 Participant contributions 2,390 3,069 174 379 Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) Fair value of plan assets at end of year 69,703 80,356 8,744 10,002 Funded status – asset (liability) $ (5,602 ) $ (9,541 ) $ (1,320 ) $ (2,277 ) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Summarized Financial Information for Noncontrolling Interest | Summarized financial information for Valencia is as follows: Results of Operations Year Ended December 31, 2018 2017 2016 (In thousands) Operating revenues $ 21,025 $ 20,887 $ 20,371 Operating expenses (5,913 ) (5,870 ) (5,852 ) Earnings attributable to non-controlling interest $ 15,112 $ 15,017 $ 14,519 Financial Position December 31, 2018 2017 (In thousands) Current assets $ 2,684 $ 2,688 Net property, plant and equipment 62,066 64,109 Total assets 64,750 66,797 Current liabilities 538 602 Owners’ equity – non-controlling interest $ 64,212 $ 66,195 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | A reconciliation of the changes in Level 3 fair value measurements is as follows: Fixed Income - Corporate PNMR Master Trust PNM Pension TNMP Pension Total Master Trust (In thousands) Balance at December 31, 2016 $ 352 $ 38 $ 390 Actual return on assets sold during the period 1 — 1 Actual return on assets still held at period end (7 ) (1 ) (8 ) Purchases 92 10 102 Sales (247 ) (26 ) (273 ) Balance at December 31, 2017 191 21 212 Actual return on assets sold during the period (7 ) (1 ) (8 ) Actual return on assets still held at period end (1 ) — (1 ) Purchases 192 23 215 Sales (87 ) (10 ) (97 ) Balance at December 31, 2018 $ 288 $ 33 $ 321 The following table presents information about the PBO, fair value of plan assets, and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) PBO at beginning of year $ 623,983 $ 621,751 $ 68,423 $ 67,061 Service cost — — — — Interest cost 24,270 26,908 2,625 2,887 Actuarial (gain) loss (41,025 ) 26,298 (5,216 ) 3,050 Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) PBO at end of year 564,258 623,983 60,587 68,423 Fair value of plan assets at beginning of year 562,016 543,601 63,499 60,624 Actual return on plan assets (29,068 ) 69,389 (3,180 ) 7,450 Employer contributions — — — — Benefits paid (42,970 ) (50,974 ) (5,245 ) (4,575 ) Fair value of plan assets at end of year 489,978 562,016 55,074 63,499 Funded status – asset (liability) for pension benefits $ (74,280 ) $ (61,967 ) $ (5,513 ) $ (4,924 ) The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (In thousands) APBO at beginning of year $ 89,897 $ 94,269 $ 12,279 $ 12,830 Service cost 83 96 134 143 Interest cost 3,439 4,025 477 556 Participant contributions 2,390 3,069 174 379 Actuarial (gain) loss (12,206 ) (1,601 ) (2,213 ) (381 ) Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) APBO at end of year 75,305 89,897 10,064 12,279 Fair value of plan assets at beginning of year 80,356 72,694 10,002 8,544 Actual return on plan assets (7,669 ) 14,222 (988 ) 1,642 Employer contributions 2,924 332 343 685 Participant contributions 2,390 3,069 174 379 Benefits paid (8,298 ) (9,961 ) (787 ) (1,248 ) Fair value of plan assets at end of year 69,703 80,356 8,744 10,002 Funded status – asset (liability) $ (5,602 ) $ (9,541 ) $ (1,320 ) $ (2,277 ) |
Schedule of Assumptions Used | The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 PBO 4.66 % 4.05 % 4.51 % Discount rate for determining net periodic benefit cost 4.05 % 4.51 % 5.29 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 4.63 % 4.01 % 4.49 % Discount rate for determining net periodic benefit cost 4.01 % 4.49 % 5.39 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 APBO 4.63 % 4.00 % 4.47 % Discount rate for determining net periodic benefit cost 4.00 % 4.47 % 5.34 % Expected return on plan assets 7.42 % 7.50 % 7.70 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 APBO 4.63 % 4.00 % 4.47 % Discount rate for determining net periodic benefit cost 4.00 % 4.47 % 5.34 % Expected return on plan assets 5.86 % 5.40 % 5.70 % Rate of compensation increase N/A N/A N/A Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (in thousands) Discount rates $ (34,769 ) $ 27,547 $ (4,278 ) $ 3,528 Demographic experience 431 (1,249 ) (301 ) (517 ) Mortality rate (6,966 ) — (705 ) — Other assumptions and experience 279 — 68 39 $ (41,025 ) $ 26,298 $ (5,216 ) $ 3,050 Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (in thousands) Discount rates $ (4,076 ) $ 3,536 $ (710 ) $ 613 Claims, contributions, and demographic experience (3,174 ) (5,845 ) 72 (994 ) Assumed participation rate (4,040 ) — (1,461 ) — Mortality rate (916 ) — (114 ) — Medical benefits — 1,425 — — Dental trend assumption — (717 ) — — $ (12,206 ) $ (1,601 ) $ (2,213 ) $ (381 ) The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected. Year Ended December 31, PNM 2018 2017 2016 Discount rate for determining December 31 PBO 4.65 % 4.05 % 4.51 % Discount rate for determining net periodic benefit cost (income) 4.05 % 4.51 % 5.29 % Expected return on plan assets 6.54 % 6.40 % 6.50 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 4.63 % 4.01 % 4.49 % Discount rate for determining net periodic benefit cost (income) 4.01 % 4.49 % 5.39 % Expected return on plan assets 6.57 % 6.40 % 6.50 % Rate of compensation increase N/A N/A N/A |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table presents pre-tax information about prior service cost and net actuarial (gain) loss in AOCI as of December 31, 2018 . PNM TNMP December 31, 2018 December 31, 2018 Prior service cost Net actuarial (gain) loss Net actuarial (gain) loss (In thousands) Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year $ (1,045 ) $ 148,526 $ — Experience (gain) loss — 22,728 1,926 Regulatory asset (liability) adjustment 1,045 (13,571 ) (1,926 ) Amortization recognized in net periodic benefit cost (income) — (7,409 ) — Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year $ — $ 150,274 $ — Amortization expected to be recognized in 2019 $ — $ 7,270 $ — The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2018 . December 31, 2018 PNM TNMP (In thousands) Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year $ 2,450 $ — Experience (gain) loss (508 ) 4 Regulatory asset (liability) adjustment 295 (4 ) Amortization recognized in net periodic benefit cost (income) (151 ) — Amount in AOCI not yet recognized in net periodic benefit cost at end of year $ 2,086 $ — Amortization expected to be recognized in 2019 $ 133 $ — |
Schedule of Net Benefit Costs | The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ 83 $ 96 $ 140 Interest cost 3,439 4,025 4,346 Expected return on plan assets (5,414 ) (5,230 ) (5,483 ) Amortization of net (gain) loss 2,354 3,682 1,145 Amortization of prior service credit (1,664 ) (1,663 ) (30 ) Net periodic benefit cost (income) $ (1,202 ) $ 910 $ 118 TNMP Service cost $ 134 $ 143 $ 186 Interest cost 477 556 677 Expected return on plan assets (542 ) (456 ) (490 ) Amortization of net (gain) loss (227 ) (79 ) (40 ) Amortization of prior service cost — — — Net periodic benefit cost (income) $ (158 ) $ 164 $ 333 The following table presents the components of net periodic benefit cost: Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ — $ — $ — Interest cost 622 697 812 Amortization of net (gain) loss 359 313 256 Amortization of prior service cost — — — Net periodic benefit cost $ 981 $ 1,010 $ 1,068 TNMP Service cost $ — $ — $ — Interest cost 29 33 40 Amortization of net (gain) loss 15 9 2 Amortization of prior service cost — — — Net periodic benefit cost $ 44 $ 42 $ 42 The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2018 2017 2016 (In thousands) PNM Service cost $ — $ — $ — Interest cost 24,270 26,908 30,307 Expected return on plan assets (34,686 ) (33,803 ) (35,416 ) Amortization of net (gain) loss 16,348 16,006 13,820 Amortization of prior service cost (965 ) (965 ) (965 ) Net periodic benefit cost $ 4,967 $ 8,146 $ 7,746 TNMP Service cost $ — $ — $ — Interest cost 2,625 2,887 3,304 Expected return on plan assets (3,963 ) (3,779 ) (3,943 ) Amortization of net (gain) loss 1,088 923 700 Amortization of prior service cost — — — Net periodic benefit cost (income) $ (250 ) $ 31 $ 61 |
Schedule of Expected Benefit Payments | The following OPEB payments, which reflect expected future service and are net of participant contributions, are expected to be paid: PNM TNMP (In thousands) 2019 $ 7,365 $ 629 2020 7,309 653 2021 7,029 674 2022 6,653 699 2023 6,351 714 2024 - 2028 26,678 3,558 The following pension benefit payments are expected to be paid: PNM TNMP (In thousands) 2019 $ 46,125 $ 5,137 2020 45,595 5,065 2021 44,804 5,005 2022 44,000 4,886 2023 43,066 4,667 2024 - 2028 199,157 21,075 The following executive retirement plan payments, which reflect expected future service, are expected: PNM TNMP (In thousands) 2019 $ 1,627 $ 141 2020 1,463 91 2021 1,427 88 2022 1,385 84 2023 1,337 79 2024 - 2028 5,792 301 |
Schedule of Health Care Cost Trend Rates | The following table shows the assumed health care cost trend rates for the PNM OPEB plan: PNM December 31, 2018 2017 Health care cost trend rate assumed for next year 6.5 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2026 2024 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The following table shows the impact of a one-percentage-point change in assumed health care cost trend rates: PNM 1-Percentage- Point Increase 1-Percentage- Point Decrease (In thousands) Effect on total of service and interest cost $ 60 $ 100 Effect on APBO $ 1,158 $ (1,529 ) |
Schedule of Net Funded Status | For the executive retirement programs, the following table presents information about the PBO and funded status of the plans: PNM TNMP Year Ended Year Ended 2018 2017 2018 2017 (In thousands) PBO at beginning of year $ 16,117 $ 16,212 $ 771 $ 787 Service cost — — — — Interest cost 622 697 29 33 Actuarial (gain) loss (508 ) 674 (4 ) 44 Benefits paid (1,505 ) (1,466 ) (94 ) (93 ) PBO at end of year – funded status 14,726 16,117 702 771 Less current liability 1,627 1,501 141 93 Non-current liability $ 13,099 $ 14,616 $ 561 $ 678 |
Summary of Expenses for Other Retirement Plans | A summary of expenses for these other retirement plans is as follows: Year Ended December 31, 2018 2017 2016 (In thousands) PNMR 401(k) plan $ 16,677 $ 16,452 $ 17,762 Non-qualified plan $ 865 $ 3,702 $ 2,017 PNM 401(k) plan $ 12,052 $ 12,120 $ 13,397 Non-qualified plan $ 621 $ 2,834 $ 1,535 TNMP 401(k) plan $ 4,625 $ 4,332 $ 4,365 Non-qualified plan $ 244 $ 868 $ 482 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Awards | The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Year Ended December 31, Restricted Shares and Performance-Based Shares 2018 2017 2016 Expected quarterly dividends per share $ 0.2650 $ 0.2425 $ 0.2200 Risk-free interest rate 2.38 % 1.50 % 0.94 % Market-Based Shares Dividend yield 2.96 % 2.67 % 2.74 % Expected volatility 19.12 % 20.80 % 20.44 % Risk-free interest rate 2.36 % 1.54 % 0.97 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares, and stock options: Restricted Stock Stock Options Shares Weighted-Average Grant Date Fair Value Shares Weighted Average Exercise Price Outstanding at December 31, 2017 189,045 $ 31.11 193,441 $ 9.98 Granted 221,062 $ 29.65 — $ — Exercised (237,402 ) $ 28.46 (112,441 ) $ 8.56 Forfeited (6,054 ) $ 31.37 — $ — Expired — $ — — $ — Outstanding at December 31, 2018 166,651 $ 32.93 81,000 $ 11.94 The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares, and stock options: Year Ended December 31, Restricted Stock 2018 2017 2016 Weighted-average grant date fair value $ 29.65 $ 23.06 $ 26.49 Total fair value of restricted shares that vested (in thousands) $ 8,558 $ 5,747 $ 5,079 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) $ 3,117 $ 2,234 $ 1,242 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | Regulatory assets and liabilities reflected in the Consolidated Balance Sheets are presented below. PNM TNMP December 31, December 31, 2018 2017 2018 2017 Assets: (In thousands) Current: FPPAC $ 4,104 $ 363 $ — $ — Energy efficiency costs 430 1,776 — 794 4,534 2,139 — 794 Non-Current: CTC, including carrying charges — — 17,744 26,998 Coal mine reclamation costs 19,915 16,462 — — Deferred income taxes 63,369 59,220 9,309 9,621 Loss on reacquired debt 21,085 22,744 31,510 32,808 Pension and OPEB (1) 227,400 222,774 26,972 26,153 Shutdown of SJGS Units 2 and 3 119,785 125,539 — — Hurricane recovery costs (2) — — 1,551 6,640 AMS surcharge — — 31,435 27,903 AMS retirement and other costs — — 16,489 8,948 Other 9,349 12,500 3,017 2,362 460,903 459,239 138,027 141,433 Total regulatory assets $ 465,437 $ 461,378 $ 138,027 $ 142,227 PNM TNMP December 31, December 31, 2018 2017 2018 2017 Liabilities: (In thousands) Current: Renewable energy rider $ (4,475 ) $ (779 ) $ — $ — Other (1,500 ) (5 ) (3,471 ) (1,525 ) (5,975 ) (784 ) (3,471 ) (1,525 ) Non-Current: Cost of removal (263,597 ) (256,493 ) (29,637 ) (26,541 ) Deferred income taxes (407,978 ) (445,390 ) (143,745 ) (148,455 ) PVNGS ARO (18,397 ) (24,889 ) — — Renewable energy tax benefits (20,226 ) (21,383 ) — — Nuclear spent fuel reimbursements — (5,518 ) — — Accelerated depreciation SNCRs (3,690 ) — — — Pension and OPEB (3) — — (3,940 ) (3,442 ) Other (83 ) (768 ) (136 ) (699 ) (713,971 ) (754,441 ) (177,458 ) (179,137 ) Total regulatory liabilities $ (719,946 ) $ (755,225 ) $ (180,929 ) $ (180,662 ) |
Construction Program and Join_2
Construction Program and Jointly-Owned Electric Generating Plants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Construction Program and Jointly-Owned Electric Generating Plants [Abstract] | |
Summary of Interests and Investments in Jointly-Owned Generating Facilities | At December 31, 2018 , PNM’s interests and investments in jointly-owned generating facilities are: Station (Fuel Type) Plant in Service Accumulated Depreciation (1) Construction Work in Progress Composite Interest (In thousands) SJGS (Coal) (2) $ 814,738 $ (443,517 ) $ 820 66.34 % PVNGS (Nuclear) (3) $ 831,663 $ (365,708 ) $ 39,393 10.20 % Four Corners Units 4 and 5 (Coal) $ 276,960 $ (98,085 ) $ 7,455 13.00 % Luna (Gas) $ 74,813 $ (28,609 ) $ 131 33.33 % (1) Includes cost of removal. (2) In December 2018, PNM submitted an NMPRC required filing indicating that, consistent with the conclusions reached in PNM’s 2017 IRP, PNM’s customers would benefit from the retirement of PNM’s share of SJGS in mid-2022. As of December 31, 2018, PNM impaired $121.8 million of plant in service and $86.8 million of accumulated depreciation on its 132 MW and 65 MW interests in SJGS Unit 4. These amounts are reflected in the table above and as $35.0 million of pre-tax regulatory disallowances and restructuring costs in the Consolidated Statements of Earnings. See Note 16 for additional discussion of the NMPRC’s December 16, 2015 order regarding SJGS’s compliance with the regional haze rules under the CAA and PNM’s December 2018 Compliance Filing. (3) Includes interest in PVNGS Unit 3 , interest in common facilities for all PVNGS units, and owned interests in PVNGS Units 1 and 2 , including improvements. |
Summary of Budgeted Construction Expenditures | An unaudited summary of the budgeted construction expenditures, including expenditures for jointly-owned projects, and nuclear fuel, is as follows: 2019 2020 2021 2022 2023 Total (In millions) PNM $ 333.4 $ 355.6 $ 253.5 $ 222.7 $ 231.8 $ 1,397.0 TNMP 245.4 245.0 245.3 244.9 218.9 1,199.5 Corporate and Other 26.5 25.3 20.3 19.9 20.2 112.2 Total PNMR $ 605.3 $ 625.9 $ 519.1 $ 487.5 $ 470.9 $ 2,708.7 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of Asset Retirement Obligations | A reconciliation of the ARO liabilities is as follows: PNMR PNM TNMP (In thousands) Liability at December 31, 2015 $ 111,895 $ 111,049 $ 695 Liabilities incurred — — — Liabilities settled (14 ) (14 ) — Accretion expense 9,170 9,098 59 Revisions to estimated cash flows 6,468 6,468 — Liability at December 31, 2016 127,519 126,601 754 Liabilities incurred (1) 1,854 1,853 — Liabilities settled (968 ) (944 ) (24 ) Accretion expense 10,680 10,603 63 Revisions to estimated cash flows 7,594 7,594 — Liability at December 31, 2017 146,679 145,707 793 Liabilities incurred — — — Liabilities settled (192 ) — — Accretion expense 11,482 11,402 67 Revisions to estimated cash flows 705 705 — Liability at December 31, 2018 $ 158,674 $ 157,814 $ 860 (1) Represents the obligation related to the additional ownership interest in SJGS Unit 4 that PNM acquired on December 31, 2017 due to the restructuring of the ownership of SJGS. |
Regulatory and Rate Matters Reg
Regulatory and Rate Matters Regulatory and Rate Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of Energy/Capacity Transactions | Information about PNM’s purchases and sales is as follows: Sales Purchases GWh Amount GWh Amount (In millions) (In millions) Year ended December 31, 2018 725.7 $ 25.8 822.7 $ 28.7 Year ended December 31, 2017 827.1 23.6 849.0 24.2 Year ended December 31, 2016 482.3 12.8 484.6 12.9 |
Schedule of Rate Increases for Transmission Costs | TNMP recovers the costs of its energy efficiency programs through an energy efficiency cost recovery factor (“EECRF”), which includes projected program costs, under or over collected costs from prior years, rate case expenses, and performance bonuses (if the programs exceed mandated savings goals). The following sets forth TNMP’s approved EECRF increases: Effective Date Aggregate Collection Amount Performance Bonus (In millions) March 1, 2016 $ 6.0 $ 0.7 March 1, 2017 6.0 0.8 March 1, 2018 6.0 1.1 March 1, 2019 5.6 0.8 TNMP can update its transmission cost of service (“TCOS”) rates twice per year to reflect changes in its invested capital although updates are not allowed while a general rate case is in process. Updated rates reflect the addition and retirement of transmission facilities, including appropriate depreciation, federal income tax and other associated taxes, and the approved rate of return on such facilities. 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) March 23, 2016 $ 25.8 $ 4.3 September 8, 2016 9.5 1.8 March 14, 2017 30.2 4.8 September 13, 2017 27.5 4.7 March 27, 2018 32.0 0.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Reform Adjustments | In accordance with SAB 118, the Company completed its analysis of the impacts of the Tax Act in 2018. The adjustments to deferred income taxes resulting from completion of the Company’s analysis, which resulted primarily from differences between the estimated amounts recorded as of December 31, 2017 and the actual amounts reflected in the Company’s 2017 tax return filing, including adjustments resulting from additional guidance and interpretations to the Tax Act issued in 2018 related to bonus depreciation, certain incentive compensation, and other items are presented below: PNM TNMP Corporate and Other Consolidated (In thousands) Net increase (decrease) in regulatory liabilities $ 11,244 $ (4,069 ) $ — $ 7,175 Net decrease in deferred income tax liabilities (deferred income tax assets) (2,175 ) (9,784 ) 13,869 $ 1,910 Net increase in affiliate receivables (affiliate payables) 12,300 4,042 (16,342 ) — Net deferred income tax expense $ 1,119 $ 1,673 $ 2,473 $ 5,265 The adjustments to deferred income taxes recorded as increases in regulatory liabilities and income tax expense as a result of the enactment of the Tax Act at December 31, 2017 are presented below: PNM TNMP Corporate and Other Consolidated (In thousands) Net increase in regulatory liabilities $ 402,501 $ 146,451 $ — $ 548,952 Net decrease in deferred income tax liabilities (deferred income tax assets) 372,895 138,586 (19,990 ) 491,491 Net deferred income tax expense $ 29,606 $ 7,865 $ 19,990 $ 57,461 |
Schedule of Components of Income Tax Expense (Benefit) | PNM’s income taxes (benefit) consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ (6,644 ) $ 118 $ (10,290 ) Current state income tax (2,661 ) (1,112 ) (1,907 ) Deferred federal income tax 5,661 73,308 49,123 Deferred state income tax (2,080 ) 9,527 4,969 Amortization of accumulated investment tax credits (247 ) (286 ) (973 ) Total income taxes (benefit) $ (5,971 ) $ 81,555 $ 40,922 PNMR’s income taxes consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ — $ — $ — Current state income tax (244 ) (188 ) (527 ) Deferred federal income tax 7,716 119,182 60,892 Deferred state income tax 648 11,632 3,886 Amortization of accumulated investment tax credits (345 ) (286 ) (973 ) Total income taxes $ 7,775 $ 130,340 $ 63,278 TNMP’s income taxes consist of the following components: Year Ended December 31, 2018 2017 2016 (In thousands) Current federal income tax $ 13,347 $ 2,472 $ 9,445 Current state income tax 1,753 1,765 1,729 Deferred federal income tax (540 ) 27,304 12,690 Deferred state income tax 2,320 (29 ) (28 ) Total income taxes $ 16,880 $ 31,512 $ 23,836 |
Schedule of Effective Income Tax Rate Reconciliation | PNMR’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 22,902 $ 79,016 $ 68,311 Amortization of accumulated investment tax credits (345 ) (286 ) (973 ) Amortization of excess deferred income tax (19,779 ) — — Flow-through of depreciation items 712 1,147 1,227 Earnings attributable to non-controlling interest in Valencia (3,173 ) (5,256 ) (5,082 ) State income tax, net of federal benefit 1,358 5,398 4,537 Impairment of state net operating loss carryforwards — 819 (311 ) Allowance for equity funds used during construction (2,185 ) (3,331 ) (1,732 ) Impairment of charitable contribution carryforward — 909 — Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization 1,367 (2,225 ) (1,877 ) Federal income tax rate change 2,914 57,461 — Tax expense (benefit) related to stock compensation awards 4,647 (2,324 ) — Other (643 ) (988 ) (822 ) Total income taxes $ 7,775 $ 130,340 $ 63,278 Effective tax rate 7.13 % 57.73 % 32.42 % The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 14,379 $ 23,475 $ 22,928 State income tax, net of federal benefit 1,454 1,198 1,132 Federal income tax rate change — 7,865 — Allocation of tax expense (benefit) related to stock compensation awards 735 (616 ) — Other 312 (410 ) (224 ) Total income taxes $ 16,880 $ 31,512 $ 23,836 Effective tax rate 24.65 % 46.98 % 36.39 % The differences are attributable to the following factors: Year Ended December 31, 2018 2017 2016 (In thousands) Federal income tax at statutory rates $ 13,514 $ 59,139 $ 46,501 Amortization of accumulated investment tax credits (247 ) (286 ) (973 ) Amortization of excess deferred income tax (19,779 ) — — Flow-through of depreciation items 674 1,103 1,185 Earnings attributable to non-controlling interest in Valencia (3,173 ) (5,256 ) (5,082 ) State income tax, net of federal benefit 1,323 4,926 3,921 Impairment of state net operating loss carryforwards — 627 (213 ) Allowance for equity funds used during construction (1,716 ) (3,032 ) (1,457 ) Regulatory recovery of prior year impairment of state net operating loss carryforward, net of amortization 1,367 (2,225 ) (1,877 ) Federal income tax rate change (683 ) 29,606 — Allocation of tax expense (benefit) related to stock compensation awards 3,967 (1,708 ) — Other (1,218 ) (1,339 ) (1,083 ) Total income taxes (benefit) $ (5,971 ) $ 81,555 $ 40,922 Effective tax rate (9.28 )% 48.27 % 30.80 % |
Components of Deferred Tax Assets and Liabilities | The components of PNM’s net accumulated deferred income tax liability were: December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss $ 50,762 $ 67,719 Regulatory liabilities related to income taxes 125,395 152,059 Federal tax credit carryforwards 62,230 60,085 Shutdown of SJGS Units 2 and 3 1,638 2,204 Other 36,916 23,801 Total deferred tax assets 276,941 305,868 Deferred tax liabilities: Depreciation and plant related (606,673 ) (544,270 ) Investment tax credit (55,484 ) (55,731 ) Regulatory assets related to income taxes (53,561 ) (52,392 ) Pension (31,046 ) (51,774 ) Regulatory asset for shutdown of SJGS Units 2 and 3 (30,425 ) (31,887 ) Other (2,519 ) (18,826 ) Total deferred tax liabilities (779,708 ) (754,880 ) Net accumulated deferred income tax liabilities $ (502,767 ) $ (449,012 ) The components of PNMR’s net accumulated deferred income tax liability were: December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating loss $ 82,386 $ 98,301 Regulatory liabilities related to income taxes 158,416 189,501 Federal tax credit carryforwards 76,481 71,849 Shutdown of SJGS Units 2 and 3 1,638 2,204 Other 97,515 45,656 Total deferred tax assets 416,436 407,511 Deferred tax liabilities: Depreciation and plant related (767,482 ) (690,909 ) Investment tax credit (57,853 ) (55,731 ) Regulatory assets related to income taxes (62,889 ) (61,956 ) CTC (3,613 ) (5,670 ) Pension (35,407 ) (56,070 ) Regulatory asset for shutdown of SJGS Units 2 and 3 (30,425 ) (31,887 ) Other (59,486 ) (52,498 ) Total deferred tax liabilities (1,017,155 ) (954,721 ) Net accumulated deferred income tax liabilities $ (600,719 ) $ (547,210 ) The components of TNMP’s net accumulated deferred income tax liability at December 31, were: December 31, 2018 2017 (In thousands) Deferred tax assets: Regulatory liabilities related to income taxes $ 33,021 $ 43,103 Other 4,517 3,762 Total deferred tax assets 37,538 46,865 Deferred tax liabilities: Depreciation and plant related (136,117 ) (135,647 ) CTC (3,613 ) (5,670 ) Regulatory assets related to income taxes (9,328 ) (9,564 ) Loss on reacquired debt (6,617 ) (6,890 ) Pension (4,361 ) (4,296 ) AMS (10,030 ) (7,707 ) Other (3,710 ) (3,506 ) Total deferred tax liabilities (173,776 ) (173,280 ) Net accumulated deferred income tax liabilities $ (136,238 ) $ (126,415 ) |
Reconciliation of Accumulated Deferred Income Tax Liability to Deferred Income Tax Benefit | The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 53,755 Change in tax effects of income tax related regulatory assets and liabilities (27,833 ) Amortization of excess deferred income tax (19,779 ) Tax effect of mark-to-market adjustments 579 Tax effect of excess pension liability 308 Adjustment for uncertain income tax positions 725 Reclassification of unrecognized tax benefits (725 ) Amortization of state net operating loss recovered in prior years 1,367 Federal income tax rate change, including impact on regulatory liabilities (6,250 ) Other 1,187 Deferred income taxes $ 3,334 The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 53,509 Change in tax effects of income tax related regulatory assets and liabilities (27,833 ) Amortization of excess deferred income tax (19,779 ) Tax effect of mark-to-market adjustments 380 Tax effect of excess pension liability 308 Adjustment for uncertain income tax positions 765 Reclassification of unrecognized tax benefits (765 ) Amortization of state net operating loss recovered in prior years 1,367 Federal income tax rate change, including impact on regulatory liabilities 2,330 Refundable alternative minimum tax credit carryforward reclassified to receivable (1,585 ) Other (678 ) Deferred income taxes $ 8,019 The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings: Year Ended December 31, 2018 (In thousands) Net change in deferred income tax liability per above table $ 9,823 Change in tax effects of income tax related regulatory assets and liabilities (350 ) Federal income tax rate change, including impact on regulatory liabilities (7,761 ) Other 68 Deferred income taxes $ 1,780 |
Reconciliation of Unrecognized Tax Benefits (Expenses) | A reconciliation of unrecognized tax benefits is as follows: PNMR PNM TNMP (In thousands) Balance at December 31, 2015 $ 6,455 $ 3,652 Additions based on tax positions related to 2016 242 242 — Additions (reductions) for tax positions of prior years 55 55 — Settlement payments — — — Balance at December 31, 2016 6,752 3,949 — Additions based on tax positions related to 2017 262 262 — Additions (reductions) for tax positions of prior years 2,415 2,352 63 Settlement payments — — — Balance at December 31, 2017 9,429 6,563 63 Additions based on tax positions related to 2018 543 543 — Additions (reductions) for tax positions of prior years 222 182 40 Settlement payments — — — Balance at December 31, 2018 $ 10,194 $ 7,288 $ 103 |
Interest Income (Expense) Related to Income Taxes | Interest income (expense) related to income taxes was as follows: PNMR PNM TNMP (In thousands) 2018 $ — $ — $ — 2017 $ — $ — $ — 2016 $ 4,398 $ 3,625 $ 345 |
Deferred Income Taxes, Increase (Decrease) In Regulatory Liability and Income Tax Expense | Adjustments to deferred income taxes recorded as increases (decreases) in the regulatory liability and income tax expense are as follows: PNMR PNM TNMP (In thousands) December 31, 2017: Regulatory liability $ (10,109 ) $ (10,109 ) $ — Income tax expense $ (1,259 ) $ (1,179 ) $ — December 31, 2016: Regulatory liability $ (7,132 ) $ (7,132 ) $ — Income tax expense $ 712 $ 804 $ — |
Tax Carryforward, Impairments, net of Federal Tax Benefit | The impairments after reflecting the expiration of carryforwards under applicable tax laws, net of federal tax benefit, for 2016 through 2018 are as follows: PNMR PNM TNMP (In thousands) December 31, 2018: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ — $ — $ — Charitable contribution carryforwards $ — $ — $ — Compensation expense $ 410 $ 298 $ 111 December 31, 2017: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ 819 $ 627 $ — Charitable contribution carryforwards $ 909 $ — $ — December 31, 2016: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ (311 ) $ (213 ) $ — Charitable contribution carryforwards $ — $ — $ — |
Summary of Tax Credit Carryforwards | The reserve balances, after reflecting expiration of carryforwards under applicable tax laws, at December 31, 2018 and 2017 are as follows: PNMR PNM TNMP (In thousands) December 31, 2018: State tax credit carryforwards $ — $ — $ — State net operating loss carryforwards $ — $ — $ — Charitable contribution carryforwards $ — $ — $ — Compensation expense $ 410 $ 298 $ 111 December 31, 2017: State tax credit carryforwards $ 2,487 $ — $ — State net operating loss carryforwards $ 1,131 $ 839 $ — Charitable contribution carryforwards $ 952 $ — $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: Year Ended December 31, 2018 2017 2016 (In thousands) Services billings: PNMR to PNM $ 95,637 $ 97,914 $ 94,606 PNMR to TNMP 33,493 31,095 28,907 PNM to TNMP 367 382 427 TNMP to PNMR 140 141 66 TNMP to PNM — 154 172 PNMR to NMRD 183 — — Renewable energy purchases: PNM from NMRD 2,924 — — Interconnection and facility study billings: PNM to NMRD 2,108 — — PNM to PNMR 68,820 — — Interest billings: PNMR to PNM 2,585 21 11 PNM to PNMR 289 220 150 PNMR to TNMP 136 133 132 Income tax sharing payments: PNMR to TNMP — — — PNMR to PNM — 23,391 — PNM to PNMR 134 — — TNMP to PNMR 3,424 20,686 — |
Quarterly Operating Results (_2
Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Unaudited operating results by quarters for 2018 and 2017 are presented below. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results of operations for such periods have been included. Quarter Ended March 31 June 30 September 30 December 31 (1) (In thousands, except per share amounts) PNMR 2018 Operating revenues $ 317,878 $ 352,313 $ 422,666 $ 343,756 Operating income (loss) 46,132 79,329 127,990 (17,404 ) Net earnings (loss) 18,799 42,449 91,573 (51,539 ) Net earnings (loss) attributable to PNMR 14,990 38,208 87,521 (55,077 ) Net earnings (loss) attributable to PNMR per common share: Basic 0.19 0.48 1.10 (0.70 ) Diluted 0.19 0.48 1.09 (0.69 ) 2017 Operating revenues $ 330,178 $ 362,320 $ 419,900 $ 332,605 Operating income 55,960 85,105 142,484 22,936 Net earnings (loss) 26,446 41,231 78,327 (50,585 ) Net earnings (loss) attributable to PNMR 22,862 37,555 73,739 (54,282 ) Net earnings attributable to PNMR per common share: Basic 0.29 0.47 0.92 (0.68 ) Diluted 0.29 0.47 0.92 (0.68 ) PNM 2018 Operating revenues $ 236,232 $ 264,511 $ 331,374 $ 259,848 Operating income (loss) 28,292 52,879 102,516 (38,654 ) Net earnings (loss) 11,514 30,781 81,428 (53,400 ) Net earnings (loss) attributable to PNM 7,837 26,672 77,508 (56,806 ) 2017 Operating revenues $ 251,558 $ 276,097 $ 327,254 $ 249,321 Operating income 38,331 59,164 113,252 1,778 Net earnings (loss) 20,110 30,476 65,283 (28,456 ) Net earnings (loss) attributable to PNM 16,658 26,932 60,827 (32,021 ) TNMP 2018 Operating revenues $ 81,646 $ 87,802 $ 91,292 $ 83,908 Operating income 18,532 26,829 27,824 23,312 Net earnings 9,413 15,367 16,100 10,711 2017 Operating revenues $ 78,620 $ 86,223 $ 92,646 $ 83,284 Operating income 17,965 26,286 29,474 19,879 Net earnings 7,604 12,204 14,727 1,024 (1) 2018 reflects pre-tax regulatory disallowances and restructuring costs of $63.3 million primarily resulting from the impairment of PNM’s 132 MW and 65 MW interests in SJGS Unit 4 and for an adjustment to PNM’s coal mine reclamation obligation for the mine that serves SJGS. See additional discussion under December 2018 Compliance Filing and under Coal Mine Reclamation in Note 16. 2017 reflects the impacts of changes in federal income tax rate of $57.5 million , $29.6 million , and $7.9 million for PNMR, PNM, and TNMP (Note 18). 2017 also reflects a pre-tax regulatory disallowance resulting from PNM’s NM 2016 Rate Case of $27.9 million (Note 17). |
Summary of the Business and S_4
Summary of the Business and Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2018USD ($)utilityFacilityMW | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)utilityFacilityMW | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Sep. 29, 2017 | Sep. 22, 2017 | Sep. 05, 2017MW | Jul. 08, 2016MW | Dec. 31, 2015USD ($) | Dec. 31, 1986lease | |
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Number of regulated utilities | utility | 2 | 2 | ||||||||||||||||
Payment defaults | $ 0 | $ 0 | ||||||||||||||||
Allowance for equity funds used during construction | $ 10,404,000 | $ 9,516,000 | $ 4,949,000 | |||||||||||||||
Weighted average borrowing rate | 5.60% | 5.90% | 5.60% | 5.90% | 6.10% | |||||||||||||
Interest costs incurred, capitalized | $ 600,000 | $ 1,300,000 | $ 1,800,000 | |||||||||||||||
Plant in Service | $ 7,548,581,000 | $ 7,238,285,000 | 7,548,581,000 | 7,238,285,000 | ||||||||||||||
Revenues (less than $0.1 million) | 1,436,613,000 | 1,445,003,000 | 1,362,951,000 | |||||||||||||||
Operating expenses (less than $0.1 million) | 1,200,566,000 | 1,129,964,000 | 1,078,226,000 | |||||||||||||||
Net income (less than $0.1 million) | (55,077,000) | $ 87,521,000 | $ 38,208,000 | $ 14,990,000 | (54,282,000) | $ 73,739,000 | $ 37,555,000 | $ 22,862,000 | ||||||||||
Construction work in progress | 194,427,000 | 245,933,000 | 194,427,000 | 245,933,000 | ||||||||||||||
Owner's equity | 1,688,382,000 | 1,695,253,000 | 1,688,382,000 | 1,695,253,000 | ||||||||||||||
Other current assets | $ 53,725,000 | 47,358,000 | $ 53,725,000 | 47,358,000 | ||||||||||||||
PNMR | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Number of regulated utilities | utility | 2 | 2 | ||||||||||||||||
Public Service Company of New Mexico | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Restricted cash deposits | 1,000,000 | 7,200,000 | $ 8,200,000 | |||||||||||||||
Allowance for funds used during construction, capitalized interest | $ 6,100,000 | 6,300,000 | 5,300,000 | |||||||||||||||
Allowance for equity funds used during construction | 8,173,000 | 8,664,000 | 4,163,000 | |||||||||||||||
Interest costs incurred, capitalized | 200,000 | 600,000 | 800,000 | |||||||||||||||
Impairment losses on securities held in the NDT | 13,700,000 | 7,100,000 | 13,900,000 | |||||||||||||||
Plant in Service | $ 5,623,520,000 | 5,501,070,000 | 5,623,520,000 | 5,501,070,000 | ||||||||||||||
Revenues (less than $0.1 million) | 1,091,965,000 | 1,104,230,000 | 1,035,913,000 | |||||||||||||||
Operating expenses (less than $0.1 million) | 946,932,000 | 883,151,000 | 841,083,000 | |||||||||||||||
Net income (less than $0.1 million) | (56,806,000) | 77,508,000 | 26,672,000 | 7,837,000 | (32,021,000) | 60,827,000 | 26,932,000 | 16,658,000 | 55,211,000 | 72,396,000 | 77,419,000 | |||||||
Construction work in progress | 134,221,000 | 204,079,000 | 134,221,000 | 204,079,000 | ||||||||||||||
Owner's equity | 1,397,359,000 | 1,422,174,000 | 1,397,359,000 | 1,422,174,000 | ||||||||||||||
Other current assets | $ 42,433,000 | 39,904,000 | $ 42,433,000 | 39,904,000 | ||||||||||||||
Public Service Company of New Mexico | 10.3% Lessor Notes | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Notes receivable, stated percentage rate | 10.30% | 10.30% | ||||||||||||||||
Public Service Company of New Mexico | 10.15% Lessor Notes | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Notes receivable, stated percentage rate | 10.15% | 10.15% | ||||||||||||||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Number of operating leases | lease | 11 | |||||||||||||||||
Texas-New Mexico Power Company | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Allowance for funds used during construction, capitalized interest | $ 2,300,000 | 1,200,000 | 900,000 | |||||||||||||||
Allowance for equity funds used during construction | 2,200,000 | 900,000 | 800,000 | |||||||||||||||
Interest costs incurred, capitalized | 100,000 | 100,000 | 100,000 | |||||||||||||||
Plant in Service | $ 1,686,119,000 | 1,504,778,000 | 1,686,119,000 | 1,504,778,000 | ||||||||||||||
Revenues (less than $0.1 million) | 344,648,000 | 340,773,000 | 327,038,000 | |||||||||||||||
Operating expenses (less than $0.1 million) | 248,151,000 | 247,169,000 | 235,397,000 | |||||||||||||||
Net income (less than $0.1 million) | 10,711,000 | $ 16,100,000 | $ 15,367,000 | $ 9,413,000 | 1,024,000 | $ 14,727,000 | $ 12,204,000 | $ 7,604,000 | 51,591,000 | 35,559,000 | 41,672,000 | |||||||
Construction work in progress | 51,459,000 | 34,350,000 | 51,459,000 | 34,350,000 | ||||||||||||||
Owner's equity | 674,093,000 | 634,405,000 | 674,093,000 | 634,405,000 | 593,235,000 | 533,380,000 | ||||||||||||
Other current assets | 1,114,000 | 1,131,000 | 1,114,000 | 1,131,000 | ||||||||||||||
PNMR Development | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Solar distributed generation (in mw) | MW | 50 | 30 | ||||||||||||||||
NMRD | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Revenues (less than $0.1 million) | 3,100,000 | 100,000 | ||||||||||||||||
Operating expenses (less than $0.1 million) | 100,000 | |||||||||||||||||
Net income (less than $0.1 million) | 1,000,000 | 100,000 | ||||||||||||||||
Cash | 2,600,000 | 6,000,000 | 2,600,000 | 6,000,000 | ||||||||||||||
Construction work in progress | 50,800,000 | 30,900,000 | 50,800,000 | 30,900,000 | ||||||||||||||
Accounts payable | 200,000 | 3,900,000 | 200,000 | 3,900,000 | ||||||||||||||
Owner's equity | $ 53,200,000 | 33,000,000 | $ 53,200,000 | 33,000,000 | ||||||||||||||
NMRD | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Solar distributed generation (in mw) | MW | 30 | 30 | ||||||||||||||||
Plant in Service | $ 12,400,000 | $ 12,400,000 | ||||||||||||||||
Renewable energy capacity under contract | MW | 33.9 | 33.9 | ||||||||||||||||
Megawatts supplying energy to data center (in mw) | MW | 30 | 30 | ||||||||||||||||
Megawatts supplying energy to Columbus Electric Cooperative (in mw) | MW | 3.9 | 3.9 | ||||||||||||||||
NMRD | PNMR Development | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Ownership percentage | 50.00% | |||||||||||||||||
Number of solar facilities | Facility | 3 | 3 | ||||||||||||||||
Solar distributed generation (in mw) | MW | 10 | 10 | ||||||||||||||||
Plant in Service | $ 24,800,000 | $ 24,800,000 | ||||||||||||||||
Cash contribution percentage | 50.00% | 50.00% | ||||||||||||||||
NMRD | AEP OnSite Partners | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Ownership percentage | 50.00% | |||||||||||||||||
NMRD | PNMR Development and AEP OnSite | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Contribution to construction activities | $ 9,600,000 | 4,100,000 | ||||||||||||||||
Accounting Standards Update 2016-18 | Public Service Company of New Mexico | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 1,000,000 | $ 8,200,000 | ||||||||||||||||
Other current assets | 1,000,000 | 1,000,000 | $ 7,200,000 | |||||||||||||||
Accounting Standards Update 2016-18 | NMCUC | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 100,000 | $ 100,000 | ||||||||||||||||
Accounting Standards Update 2016-02 | Scenario, forecast | PNMR | Subsequent Event | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Operating lease, right-of-use asset | $ 160,000,000 | |||||||||||||||||
Operating lease, liability | 160,000,000 | |||||||||||||||||
Accounting Standards Update 2016-02 | Scenario, forecast | Public Service Company of New Mexico | Subsequent Event | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Operating lease, right-of-use asset | 146,000,000 | |||||||||||||||||
Operating lease, liability | 146,000,000 | |||||||||||||||||
Accounting Standards Update 2016-02 | Scenario, forecast | Texas-New Mexico Power Company | Subsequent Event | ||||||||||||||||||
Accounting Policies Disclosures [Line Items] | ||||||||||||||||||
Operating lease, right-of-use asset | 12,000,000 | |||||||||||||||||
Operating lease, liability | $ 12,000,000 |
Summary of the Business and S_5
Summary of the Business and Significant Accounting Policies - Inventories/Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 71,834 | $ 66,502 | |
Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 22,777 | 16,714 | |
Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 49,057 | 49,788 | |
Public Service Company of New Mexico | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 67,097 | 60,859 | |
Public Service Company of New Mexico | Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 22,777 | 16,714 | |
Public Service Company of New Mexico | Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 44,320 | $ 44,145 | |
Public Service Company of New Mexico | Electric plant | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 2.40% | 2.52% | 2.33% |
Public Service Company of New Mexico | Common, intangible, and general plant | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 8.18% | 8.36% | 5.40% |
Texas-New Mexico Power Company | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 3.49% | 3.57% | 3.66% |
Inventory | $ 4,737 | $ 5,643 | |
Texas-New Mexico Power Company | Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 0 | 0 | |
Texas-New Mexico Power Company | Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 4,737 | $ 5,643 |
Segment Information - Schedule
Segment Information - Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 1,436,613 | $ 1,445,003 | $ 1,362,951 | ||||||||
Utility margin | 1,036,887 | 1,037,524 | 982,355 | ||||||||
Other operating expenses | 559,652 | 490,543 | 488,520 | ||||||||
Depreciation and amortization | 241,188 | 231,942 | 209,110 | ||||||||
Operating income | $ (17,404) | $ 127,990 | $ 79,329 | $ 46,132 | $ 22,936 | $ 142,484 | $ 85,105 | $ 55,960 | 236,047 | 315,039 | 284,725 |
Interest income | 15,540 | 15,916 | 22,293 | ||||||||
Other income (deductions) | (15,286) | 22,429 | 16,789 | ||||||||
Interest charges | (127,244) | (127,625) | (128,633) | ||||||||
Earnings before Income Taxes | 109,057 | 225,759 | 195,174 | ||||||||
Income taxes (benefit) | 7,775 | 130,340 | 63,278 | ||||||||
Net Earnings | (51,539) | 91,573 | 42,449 | 18,799 | (50,585) | 78,327 | 41,231 | 26,446 | 101,282 | 95,419 | 131,896 |
Valencia non-controlling interest | (15,112) | (15,017) | (14,519) | ||||||||
Subsidiary preferred stock dividends | (528) | (528) | (528) | ||||||||
Net Earnings Attributable to PNMR | 85,642 | 79,874 | 116,849 | ||||||||
Total Assets | 6,865,551 | 6,646,103 | 6,865,551 | 6,646,103 | 6,471,080 | ||||||
Goodwill | 278,297 | 278,297 | 278,297 | 278,297 | 278,297 | ||||||
PNM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Utility margin | 777,929 | 782,553 | 736,199 | ||||||||
Other operating expenses | 481,030 | 414,457 | 407,922 | ||||||||
Depreciation and amortization | 151,866 | 147,017 | 133,447 | ||||||||
Operating income | 145,033 | 221,079 | 194,830 | ||||||||
Interest income | 13,089 | 8,454 | 10,173 | ||||||||
Other income (deductions) | (17,312) | 22,132 | 15,326 | ||||||||
Interest charges | (76,458) | (82,697) | (87,469) | ||||||||
Earnings before Income Taxes | 64,352 | 168,968 | 132,860 | ||||||||
Income taxes (benefit) | (5,971) | 81,555 | 40,922 | ||||||||
Net Earnings | 70,323 | 87,413 | 91,938 | ||||||||
Valencia non-controlling interest | (15,112) | (15,017) | (14,519) | ||||||||
Subsidiary preferred stock dividends | (528) | (528) | (528) | ||||||||
Net Earnings Attributable to PNMR | 54,683 | 71,868 | 76,891 | ||||||||
Total Assets | 5,035,883 | 4,921,563 | 5,035,883 | 4,921,563 | 4,867,546 | ||||||
Goodwill | 51,632 | 51,632 | 51,632 | 51,632 | 51,632 | ||||||
TNMP | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Utility margin | 258,958 | 254,971 | 246,156 | ||||||||
Other operating expenses | 96,272 | 98,221 | 93,389 | ||||||||
Depreciation and amortization | 66,189 | 63,146 | 61,126 | ||||||||
Operating income | 96,497 | 93,604 | 91,641 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Other income (deductions) | 4,065 | 3,551 | 3,202 | ||||||||
Interest charges | (32,091) | (30,084) | (29,335) | ||||||||
Earnings before Income Taxes | 68,471 | 67,071 | 65,508 | ||||||||
Income taxes (benefit) | 16,880 | 31,512 | 23,836 | ||||||||
Net Earnings | 51,591 | 35,559 | 41,672 | ||||||||
Valencia non-controlling interest | 0 | 0 | 0 | ||||||||
Subsidiary preferred stock dividends | 0 | 0 | 0 | ||||||||
Net Earnings Attributable to PNMR | 51,591 | 35,559 | 41,672 | ||||||||
Total Assets | 1,665,177 | 1,500,770 | 1,665,177 | 1,500,770 | 1,383,223 | ||||||
Goodwill | 226,665 | 226,665 | 226,665 | 226,665 | 226,665 | ||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Utility margin | 0 | 0 | 0 | ||||||||
Other operating expenses | (17,650) | (22,135) | (12,791) | ||||||||
Depreciation and amortization | 23,133 | 21,779 | 14,537 | ||||||||
Operating income | (5,483) | 356 | (1,746) | ||||||||
Interest income | 2,451 | 7,462 | 12,120 | ||||||||
Other income (deductions) | (2,039) | (3,254) | (1,739) | ||||||||
Interest charges | (18,695) | (14,844) | (11,829) | ||||||||
Earnings before Income Taxes | (23,766) | (10,280) | (3,194) | ||||||||
Income taxes (benefit) | (3,134) | 17,273 | (1,480) | ||||||||
Net Earnings | (20,632) | (27,553) | (1,714) | ||||||||
Valencia non-controlling interest | 0 | 0 | 0 | ||||||||
Subsidiary preferred stock dividends | 0 | 0 | 0 | ||||||||
Net Earnings Attributable to PNMR | (20,632) | (27,553) | (1,714) | ||||||||
Total Assets | 164,491 | 223,770 | 164,491 | 223,770 | 220,311 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Electricity | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 343,756 | $ 422,666 | $ 352,313 | $ 317,878 | $ 332,605 | $ 419,900 | $ 362,320 | $ 330,178 | 1,436,613 | 1,445,003 | 1,362,951 |
Cost of energy | 399,726 | 407,479 | 380,596 | ||||||||
Electricity | PNM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,091,965 | 1,104,230 | 1,035,913 | ||||||||
Cost of energy | 314,036 | 321,677 | 299,714 | ||||||||
Electricity | TNMP | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 344,648 | 340,773 | 327,038 | ||||||||
Cost of energy | 85,690 | 85,802 | 80,882 | ||||||||
Electricity | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | ||||||||
Cost of energy | $ 0 | $ 0 | $ 0 |
Segment Information - Major Cus
Segment Information - Major Customers (Details) - Electric operating revenues - customer | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PNMR and PNM | |||
Concentration Risk [Line Items] | |||
Number of customers that make up more than 10% of total revenue | 0 | ||
PNMR and PNM | Maximum | |||
Concentration Risk [Line Items] | |||
Operating revenues from continuing operations | 10.00% | ||
Texas-New Mexico Power Company | |||
Concentration Risk [Line Items] | |||
Number of customers that make up more than 10% of total revenue | 3 | ||
Texas-New Mexico Power Company | REP A | |||
Concentration Risk [Line Items] | |||
Operating revenues from continuing operations | 21.00% | 16.00% | 16.00% |
Texas-New Mexico Power Company | REP B | |||
Concentration Risk [Line Items] | |||
Operating revenues from continuing operations | 15.00% | 11.00% | 11.00% |
Texas-New Mexico Power Company | REP C | |||
Concentration Risk [Line Items] | |||
Operating revenues from continuing operations | 12.00% | 10.00% | 11.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 1,695,253 | ||||
Cumulative effect adjustment (Note 9) | $ 0 | $ 10,382 | |||
Balance at January 1, 2018, as adjusted | 1,761,448 | 1,755,254 | |||
Amounts reclassified from AOCI (pre-tax) | 3,965 | $ (10,534) | $ (15,871) | ||
Income tax impact of amounts reclassified | (1,008) | 4,087 | 6,193 | ||
Other OCI changes (pre-tax) | (6,022) | 32,778 | (18,597) | ||
Income tax impact of other OCI changes | 1,529 | (12,234) | 7,256 | ||
Total Other Comprehensive Income (Loss) | (1,536) | 14,097 | (21,019) | ||
Reclassification of stranded income taxes to retained earnings | 0 | ||||
Ending Balance | 1,688,382 | 1,695,253 | |||
Public Service Company of New Mexico | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 1,422,174 | ||||
Balance at January 1, 2018, as adjusted | 1,488,369 | ||||
Amounts reclassified from AOCI (pre-tax) | 3,749 | (11,115) | (16,635) | ||
Income tax impact of amounts reclassified | (952) | 4,312 | 6,491 | ||
Other OCI changes (pre-tax) | (6,592) | 31,778 | (17,723) | ||
Income tax impact of other OCI changes | 1,674 | (11,846) | 6,915 | ||
Total Other Comprehensive Income (Loss) | (2,121) | 13,129 | (20,952) | ||
Reclassification of stranded income taxes to retained earnings | 0 | ||||
Ending Balance | 1,397,359 | 1,422,174 | |||
AOCI | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (95,940) | (92,451) | (71,432) | ||
Cumulative effect adjustment (Note 9) | (11,208) | ||||
Balance at January 1, 2018, as adjusted | (107,148) | $ (92,451) | |||
Total Other Comprehensive Income (Loss) | (1,536) | 14,097 | (21,019) | ||
Reclassification of stranded income taxes to retained earnings | (17,586) | ||||
Ending Balance | (108,684) | (95,940) | (92,451) | ||
AOCI | Public Service Company of New Mexico | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (97,093) | (92,428) | (71,476) | ||
Cumulative effect adjustment (Note 9) | (11,208) | ||||
Balance at January 1, 2018, as adjusted | (108,301) | ||||
Total Other Comprehensive Income (Loss) | (2,121) | 13,129 | (20,952) | ||
Reclassification of stranded income taxes to retained earnings | (17,794) | ||||
Ending Balance | (110,422) | (97,093) | (92,428) | ||
Unrealized Gains on Available-for-Sale Securities | Public Service Company of New Mexico | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 13,169 | 4,320 | 17,346 | ||
Cumulative effect adjustment (Note 9) | (11,208) | ||||
Balance at January 1, 2018, as adjusted | 1,961 | ||||
Amounts reclassified from AOCI (pre-tax) | (3,819) | (17,567) | (22,139) | ||
Income tax impact of amounts reclassified | 970 | 6,816 | 8,639 | ||
Other OCI changes (pre-tax) | 3,790 | 28,160 | 778 | ||
Income tax impact of other OCI changes | (963) | (10,927) | (304) | ||
Total Other Comprehensive Income (Loss) | (22) | 6,482 | (13,026) | ||
Reclassification of stranded income taxes to retained earnings | 2,367 | ||||
Ending Balance | 1,939 | 13,169 | 4,320 | ||
Pension Liability Adjustment | Public Service Company of New Mexico | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (110,262) | (96,748) | (88,822) | ||
Cumulative effect adjustment (Note 9) | 0 | ||||
Balance at January 1, 2018, as adjusted | (110,262) | ||||
Amounts reclassified from AOCI (pre-tax) | 7,568 | 6,452 | 5,504 | ||
Income tax impact of amounts reclassified | (1,922) | (2,504) | (2,148) | ||
Other OCI changes (pre-tax) | (10,382) | 3,618 | (18,501) | ||
Income tax impact of other OCI changes | 2,637 | (919) | 7,219 | ||
Total Other Comprehensive Income (Loss) | (2,099) | 6,647 | (7,926) | ||
Reclassification of stranded income taxes to retained earnings | (20,161) | ||||
Ending Balance | (112,361) | (110,262) | (96,748) | ||
Fair Value Adjustment for Cash Flow Hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 1,153 | (23) | 44 | ||
Cumulative effect adjustment (Note 9) | 0 | ||||
Balance at January 1, 2018, as adjusted | $ 1,153 | ||||
Amounts reclassified from AOCI (pre-tax) | 216 | 581 | 764 | ||
Income tax impact of amounts reclassified | (56) | (225) | (298) | ||
Other OCI changes (pre-tax) | 570 | 1,000 | (874) | ||
Income tax impact of other OCI changes | (145) | (388) | 341 | ||
Total Other Comprehensive Income (Loss) | 585 | 968 | (67) | ||
Reclassification of stranded income taxes to retained earnings | 208 | ||||
Ending Balance | $ 1,738 | $ 1,153 | $ (23) |
Electric Operating Revenue Disa
Electric Operating Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | $ 1,359,740 | $ 1,321,023 | $ 1,277,594 |
Operating Revenues | 1,436,613 | 1,445,003 | 1,362,951 |
Residential Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 563,297 | ||
Commercial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 519,594 | ||
Industrial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 78,436 | ||
Public Authority Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 27,297 | ||
Economy Energy Service Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 26,764 | ||
Electric Transmission Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 121,271 | ||
Miscellaneous Revenue From Contracts With Customers | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 23,081 | ||
Alternative Energy | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | 1,756 | 15,779 | 16,035 |
Other Electric | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | 75,117 | 108,201 | 69,322 |
Public Service Company of New Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 1,019,291 | 992,462 | 963,158 |
Operating Revenues | 1,091,965 | 1,104,230 | 1,035,913 |
Public Service Company of New Mexico | Residential Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 433,009 | ||
Public Service Company of New Mexico | Commercial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 408,333 | ||
Public Service Company of New Mexico | Industrial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 61,119 | ||
Public Service Company of New Mexico | Public Authority Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 21,688 | ||
Public Service Company of New Mexico | Economy Energy Service Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 26,764 | ||
Public Service Company of New Mexico | Electric Transmission Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 54,280 | ||
Public Service Company of New Mexico | Miscellaneous Revenue From Contracts With Customers | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 14,098 | ||
Public Service Company of New Mexico | Alternative Energy | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | (2,443) | 3,567 | 3,433 |
Public Service Company of New Mexico | Other Electric | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | 75,117 | 108,201 | 69,322 |
Texas-New Mexico Power Company | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 340,449 | 328,561 | 314,436 |
Operating Revenues | 344,648 | 340,773 | 327,038 |
Texas-New Mexico Power Company | Residential Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 130,288 | ||
Texas-New Mexico Power Company | Commercial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 111,261 | ||
Texas-New Mexico Power Company | Industrial Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 17,317 | ||
Texas-New Mexico Power Company | Public Authority Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 5,609 | ||
Texas-New Mexico Power Company | Economy Energy Service Electric | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 0 | ||
Texas-New Mexico Power Company | Electric Transmission Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 66,991 | ||
Texas-New Mexico Power Company | Miscellaneous Revenue From Contracts With Customers | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 8,983 | ||
Texas-New Mexico Power Company | Alternative Energy | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | 4,199 | $ 12,212 | $ 12,602 |
Texas-New Mexico Power Company | Other Electric | |||
Disaggregation of Revenue [Line Items] | |||
Operating Revenues | $ 0 |
Electric Operating Revenue Chan
Electric Operating Revenue Change in Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Beginning balance | $ 349 |
Consideration received in advance of service to be provided | 6,172 |
Deferred revenue earned | (6,172) |
Ending balance | 349 |
Public Service Company of New Mexico | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Beginning balance | 349 |
Consideration received in advance of service to be provided | 4,660 |
Deferred revenue earned | (4,660) |
Ending balance | 349 |
Texas-New Mexico Power Company | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Beginning balance | 0 |
Consideration received in advance of service to be provided | 1,512 |
Deferred revenue earned | (1,512) |
Ending balance | $ 0 |
Electric Operating Revenue Narr
Electric Operating Revenue Narrative (Details) | Dec. 31, 2018USD ($)utilityMW | Dec. 31, 2017USD ($)MW |
Contract with Customers, Asset and Liability [Roll Forward] | ||
Number of regulated utilities | utility | 2 | |
Contract assets | $ | $ 0 | |
Public Service Company of New Mexico | ||
Contract with Customers, Asset and Liability [Roll Forward] | ||
Expected exposure to market risk (in megawatts) | 65 | 65 |
Power to be sold to third party (in megawatts) | 36 | 36 |
Public Service Company of New Mexico | Contracts with Customers | ||
Contract with Customers, Asset and Liability [Roll Forward] | ||
Contract with customers, net | $ | $ 61,700,000 | $ 61,800,000 |
Palo Verde Nuclear Generating Station Unit 3 | Clean Air Act, SNCR | Public Service Company of New Mexico | ||
Contract with Customers, Asset and Liability [Roll Forward] | ||
Number of megawatts | 134 |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net Earnings Attributable to PNMR | $ 85,642 | $ 79,874 | $ 116,849 | ||||||||
Average Number of Common Shares: | |||||||||||
Outstanding during year (in shares) | 79,654 | 79,654 | 79,654 | ||||||||
Vested awards of restricted stock (in shares) | 236 | 237 | 104 | ||||||||
Average Shares – Basic (in shares) | 79,890 | 79,891 | 79,758 | ||||||||
Dilutive Effect of Common Stock Equivalents: | |||||||||||
Stock options and restricted stock (in shares) | 122 | 250 | 374 | ||||||||
Average Shares – Diluted (in shares) | 80,012 | 80,141 | 80,132 | ||||||||
Net Earnings Attributable to PNMR Per Share of Common Stock: | |||||||||||
Basic (in dollars per share) | $ (0.70) | $ 1.10 | $ 0.48 | $ 0.19 | $ (0.68) | $ 0.92 | $ 0.47 | $ 0.29 | $ 1.07 | $ 1 | $ 1.47 |
Diluted (in dollars per share) | $ (0.69) | $ 1.09 | $ 0.48 | $ 0.19 | $ (0.68) | $ 0.92 | $ 0.47 | $ 0.29 | 1.07 | 1 | 1.46 |
Dividends Declared per Common Share (in dollars per share) | $ 1.0850 | $ 0.9925 | $ 0.9025 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Nov. 26, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Payment of dividends | $ 306,800,000 | ||||||
Line of Credit | |||||||
Class of Stock [Line Items] | |||||||
Debt-to-capital ratio (not more than) | 3.32% | 70.00% | 65.00% | 65.00% | 70.00% | ||
Public Service Company of New Mexico | |||||||
Class of Stock [Line Items] | |||||||
Equity contribution from parent | $ 0 | $ 0 | $ 28,142,000 | ||||
Payment of dividends | $ 242,800,000 | ||||||
Preferred stock, dividend rate | 4.58% | ||||||
Preferred stock, redemption percent | 102.00% | ||||||
Preferred stock outstanding (in shares) | 115,293 | 115,293 | |||||
Preferred stock, cumulative shares authorized (in shares) | 10,000,000 | 10,000,000 | |||||
Public Service Company of New Mexico | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Requirement to obtain approval to transfer more than a percentage of PNM's assets | 5.00% | ||||||
Public Service Company of New Mexico | Line of Credit | |||||||
Class of Stock [Line Items] | |||||||
Debt-to-capital ratio (not more than) | 65.00% | ||||||
Public Service Company of New Mexico | Affiliated Entity | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends paid to parent company by consolidated subsidiaries | $ 77,400,000 | $ 60,700,000 | 4,100,000 | ||||
Texas-New Mexico Power Company | |||||||
Class of Stock [Line Items] | |||||||
Equity contribution from parent | $ 30,000,000 | 50,000,000 | 50,000,000 | ||||
Preferred stock, cumulative shares authorized (in shares) | 1,000,000 | ||||||
Texas-New Mexico Power Company | Line of Credit | |||||||
Class of Stock [Line Items] | |||||||
Debt-to-capital ratio (not more than) | 65.00% | ||||||
Texas-New Mexico Power Company | Affiliated Entity | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends paid to parent company by consolidated subsidiaries | $ 41,900,000 | $ 44,400,000 | $ 31,800,000 | ||||
PNMR and TNMP | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock outstanding (in shares) | 0 | ||||||
PNMR and TNMP | Line of Credit | |||||||
Class of Stock [Line Items] | |||||||
Debt-to-capital ratio (not more than) | 70.00% |
Financing - Activities, PNM and
Financing - Activities, PNM and TNMP (Details) | Jan. 18, 2019USD ($) | Dec. 21, 2018USD ($) | Dec. 14, 2018USD ($) | Nov. 26, 2018USD ($) | Jul. 31, 2018USD ($) | May 14, 2018USD ($) | Apr. 09, 2018USD ($) | Jul. 28, 2017USD ($) | Feb. 01, 2016USD ($) | Dec. 21, 2015USD ($) | Jul. 31, 2018USD ($) | Jun. 21, 2016USD ($) | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018USD ($)derivative | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 29, 2019USD ($) | Feb. 26, 2019USD ($) | Feb. 22, 2019 | Dec. 17, 2018USD ($) | Jul. 25, 2018USD ($) | Jun. 28, 2018USD ($) | May 22, 2018USD ($) | Mar. 09, 2018USD ($) | Jul. 20, 2017USD ($) | Jun. 14, 2017USD ($) | Dec. 21, 2016USD ($)loan | Oct. 21, 2016USD ($) | Sep. 27, 2016USD ($) | May 20, 2016USD ($) | Jan. 01, 2016USD ($) | Dec. 17, 2015USD ($) | Sep. 30, 2015 | Mar. 09, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Amount outstanding | $ 50,000,000 | $ 0 | $ 100,000,000 | ||||||||||||||||||||||||||||||||
Outstanding amount | 235,900,000 | 305,400,000 | |||||||||||||||||||||||||||||||||
Interest charges | 127,244,000 | 127,625,000 | 128,633,000 | ||||||||||||||||||||||||||||||||
Other deferred credits | 165,157,000 | 131,706,000 | |||||||||||||||||||||||||||||||||
Fixed interest rate | 1.927% | ||||||||||||||||||||||||||||||||||
PNMR 2016 One-Year Term Loan and PNMR 2016 Two-Year Term Loan | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Number of loan agreements (in loans) | loan | 2 | ||||||||||||||||||||||||||||||||||
PNMR 2016 One Year Term Loan | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Outstanding amount | $ 150,000,000 | 100,000,000 | $ 100,000,000 | ||||||||||||||||||||||||||||||||
Debt instrument, term | 1 year | ||||||||||||||||||||||||||||||||||
PNMR 2016 Two-Year Term Loan due December 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | 100,000,000 | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 2 years | ||||||||||||||||||||||||||||||||||
PNMR Development Term Loan due November 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Outstanding amount | $ 90,000,000 | ||||||||||||||||||||||||||||||||||
PNMR 2018 One Year Term Loan | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 150,000,000 | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 1 year | ||||||||||||||||||||||||||||||||||
Variable interest rate | 3.20% | ||||||||||||||||||||||||||||||||||
PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 2 years | ||||||||||||||||||||||||||||||||||
Variable interest rate | 3.28% | ||||||||||||||||||||||||||||||||||
TNMP 2018 Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Term loan restatement to provide additional funding | $ 15,000,000 | ||||||||||||||||||||||||||||||||||
TNMP 2018 Term Loan due July 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Variable interest rate | 3.22% | ||||||||||||||||||||||||||||||||||
Term loan restatement committed amount | $ 35,000,000 | ||||||||||||||||||||||||||||||||||
Variable Rate Short-Term Debt | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||||||||||||||||||||||||
Time hedged in interest rate cash flow hedge | 4 years | ||||||||||||||||||||||||||||||||||
Level 2 | Cash Flow Hedging | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Fair value gain (loss, less than) | $ 1,000,000 | 1,400,000 | |||||||||||||||||||||||||||||||||
NM Capital | San Juan Generating Station | Coal Supply | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Payments to fund long-term loans to unaffiliated third party | $ 125,000,000 | ||||||||||||||||||||||||||||||||||
NM Capital | San Juan Coal Company, Westmoreland | Coal Supply | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Repurchased face amount | $ 50,100,000 | ||||||||||||||||||||||||||||||||||
PNMR | PNMR 2016 Two-Year Term Loan due December 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | 0 | 100,000,000 | |||||||||||||||||||||||||||||||||
PNMR | PNMR Development Term Loan due November 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | 90,000,000 | 0 | |||||||||||||||||||||||||||||||||
PNMR | PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | 50,000,000 | 0 | |||||||||||||||||||||||||||||||||
Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Outstanding amount | 42,400,000 | 39,800,000 | |||||||||||||||||||||||||||||||||
Interest charges | 76,458,000 | 82,697,000 | 87,469,000 | ||||||||||||||||||||||||||||||||
Other deferred credits | $ 213,226,000 | 106,442,000 | |||||||||||||||||||||||||||||||||
Public Service Company of New Mexico | NMPRC | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Requirement to obtain approval for any financing transaction, period of time (more than) | 18 months | ||||||||||||||||||||||||||||||||||
PNM | PNM 2019 Term Loan | Subsequent Event | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||||||||||||||||||||||||||||
Texas-New Mexico Power Company | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Outstanding amount | $ 17,500,000 | 0 | |||||||||||||||||||||||||||||||||
Interest charges | 32,091,000 | 30,084,000 | $ 29,335,000 | ||||||||||||||||||||||||||||||||
Other deferred credits | $ 2,908,000 | 7,448,000 | |||||||||||||||||||||||||||||||||
Line of Credit | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Debt-to-capital ratios (less than or equal to) | 3.32% | 70.00% | 65.00% | 65.00% | 70.00% | ||||||||||||||||||||||||||||||
Line of Credit | Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Debt-to-capital ratios (less than or equal to) | 65.00% | ||||||||||||||||||||||||||||||||||
Line of Credit | Texas-New Mexico Power Company | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Debt-to-capital ratios (less than or equal to) | 65.00% | ||||||||||||||||||||||||||||||||||
PNMR 2015 Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | $ 150,000,000 | $ 150,000,000 | |||||||||||||||||||||||||||||||||
BTMU Term Loan Agreement | NM Capital | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | $ 125,000,000 | ||||||||||||||||||||||||||||||||||
Repurchased face amount | $ 43,000,000 | ||||||||||||||||||||||||||||||||||
Estimated principal payments | $ 43,000,000 | ||||||||||||||||||||||||||||||||||
Letter of Credit | PNMR | Letter or credit, 30 mil JP Morgan | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 30,300,000 | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 3.25% | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | Public Service Company of New Mexico | Senior Unsecured Note Agreement (SUNs) | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 450,000,000 | ||||||||||||||||||||||||||||||||||
Debt to capital ratio | 65.00% | ||||||||||||||||||||||||||||||||||
PNM 2014 Multi-Draw Term Loan Agreement | Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | $ 125,000,000 | ||||||||||||||||||||||||||||||||||
Repayments of debt | $ 125,000,000 | ||||||||||||||||||||||||||||||||||
PNM 2016 Term Loan Agreement due 2017 | Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 175,000,000 | ||||||||||||||||||||||||||||||||||
Pollution Control Bonds | Public Service Company of New Mexico | Pollution Control Revenue Bonds 1 Point 875 Percent, due 2021 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 146,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 1.875% | ||||||||||||||||||||||||||||||||||
Pollution Control Bonds | Public Service Company of New Mexico | Pollution Control Revenue Bonds 2.125 Percent, due 2040 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 37,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 2.125% | ||||||||||||||||||||||||||||||||||
Pollution Control Bonds | Public Service Company of New Mexico | Pollution Control Revenue Bonds 2.45 Percent, due 2042 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 20,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 2.45% | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Shelf registration statement, capacity of issuance (up to) | 475,000,000 | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | PNM 2017 Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | $ 200,000,000 | $ 200,000,000 | |||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | SUNs, Issuance in May 2018 | Minimum | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 3.15% | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | SUNs, Issuance in May 2018 | Maximum | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 4.50% | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 30 years | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | SUN's, Issuance in July 2018 | Minimum | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 3.78% | 3.78% | |||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | SUN's, Issuance in July 2018 | Maximum | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 4.60% | 4.60% | |||||||||||||||||||||||||||||||||
Debt instrument, term | 30 years | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | 7.95% due May 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 7.95% | ||||||||||||||||||||||||||||||||||
Unsecured Debt | Public Service Company of New Mexico | 7.50% due August 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 7.50% | 7.50% | |||||||||||||||||||||||||||||||||
Unsecured Debt | Texas-New Mexico Power Company | 9.50% due April 2019 | Subsequent Event | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 9.50% | ||||||||||||||||||||||||||||||||||
Extinguishment of debt | $ 172,300,000 | ||||||||||||||||||||||||||||||||||
First Mortgage Bonds | Texas-New Mexico Power Company | 3.53% due February 2026 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 60,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 3.53% | 3.53% | 3.53% | ||||||||||||||||||||||||||||||||
First Mortgage Bonds | Texas-New Mexico Power Company | TNMP 2018 Term Loan due July 2020 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Loan entered into | $ 35,000,000 | $ 0 | |||||||||||||||||||||||||||||||||
First Mortgage Bonds | Texas-New Mexico Power Company | 9.50% due April 2019 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 9.50% | 9.50% | |||||||||||||||||||||||||||||||||
Mortgages | Texas-New Mexico Power Company | First Mortgage Bonds | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 60,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 3.85% | ||||||||||||||||||||||||||||||||||
Mortgages | Texas-New Mexico Power Company | TNMP 2019 Bond Purchase Agreement | Subsequent Event | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 225,000,000 | $ 305,000,000 | |||||||||||||||||||||||||||||||||
Stated percentage | 400.00% | ||||||||||||||||||||||||||||||||||
Debt to capital ratio | 65.00% | ||||||||||||||||||||||||||||||||||
Secured Debt | Texas-New Mexico Power Company | TNMP Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 20,000,000 | ||||||||||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. and U.S. Bank National Association | PNM 2016 Term Loan Agreement due 2017 | Public Service Company of New Mexico | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 175,000,000 | ||||||||||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. and U.S. Bank National Association | Notes Payable to Banks | Public Service Company of New Mexico | PNM 2017 Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 200,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 3.26% | ||||||||||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. and U.S. Bank National Association | Notes Payable to Banks | Public Service Company of New Mexico | PNM 2019 Term Loan | Subsequent Event | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Stated percentage | 3.13% | ||||||||||||||||||||||||||||||||||
Scenario, plan | Senior Unsecured Notes | Public Service Company of New Mexico | SUNs, Issuance in May 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 350,000,000 | ||||||||||||||||||||||||||||||||||
Scenario, plan | Senior Unsecured Notes | Public Service Company of New Mexico | SUN's, Issuance in July 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||||||||||||||||||
Scenario, plan | First Mortgage Bonds | Texas-New Mexico Power Company | Interest Rate of 3.22%, Due 2027 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 60,000,000 | ||||||||||||||||||||||||||||||||||
Stated percentage | 3.22% | ||||||||||||||||||||||||||||||||||
Interest rate contract | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Number of derivative instruments held | derivative | 3 | ||||||||||||||||||||||||||||||||||
Interest rate contract one | Variable Rate Short-Term Debt | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 1.926% | ||||||||||||||||||||||||||||||||||
Interest rate contract two | Variable Rate Short-Term Debt | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 1.823% | ||||||||||||||||||||||||||||||||||
Interest rate contract three | Variable Rate Short-Term Debt | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 1.629% | ||||||||||||||||||||||||||||||||||
Deposit Related To Potential Transmission Interconnections | PNMR Development | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Amount of related party transaction | $ 68,200,000 | ||||||||||||||||||||||||||||||||||
Interest charges | $ 2,400,000 | ||||||||||||||||||||||||||||||||||
Other deferred credits | $ 68,200,000 | ||||||||||||||||||||||||||||||||||
Notes Payable to Banks | PNMR Term Loan Agreement | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||
Amount outstanding | $ 150,000,000 |
Financing - Schedule of Maturit
Financing - Schedule of Maturities and Interest Rates (Details) - Texas-New Mexico Power Company - Mortgages - Subsequent Event - USD ($) | Jul. 01, 2019 | Mar. 29, 2019 | Feb. 26, 2019 |
First Mortgage Bonds 3.79 Percent Due 2034 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 75,000,000 | ||
Stated percentage | 3.79% | ||
First Mortgage Bonds 3.92 Percent Due 2039 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 75,000,000 | ||
Stated percentage | 3.92% | ||
First Mortgage Bonds 4.06 Percent Due 2044 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 75,000,000 | ||
Stated percentage | 4.06% | ||
TNMP 2019 Bond Purchase Agreement | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 225,000,000 | $ 305,000,000 | |
Stated percentage | 400.00% | ||
First Mortgage Bonds 3.60 Percent Due 2029 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 80,000,000 | ||
Stated percentage | 3.60% |
Financing - Borrowing Arrangeme
Financing - Borrowing Arrangements Between PNMR and Its Subsidiaries and Short-term Debt (Details) | Nov. 01, 2020USD ($) | Feb. 22, 2019USD ($) | Feb. 20, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 26, 2018USD ($) | Feb. 20, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 12, 2017USD ($) | Dec. 21, 2016USD ($) | Nov. 30, 2016USD ($) | Jan. 08, 2014USD ($)bank |
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 24,500,000 | ||||||||||
Short-term debt | $ 235,900,000 | $ 305,400,000 | |||||||||
Letters of credit outstanding | 4,700,000 | ||||||||||
JPMorgan Chase Bank, N.A. | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Letters of credit outstanding | 30,300,000 | ||||||||||
PNMR 2016 One Year Term Loan | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Short-term debt | $ 150,000,000 | 100,000,000 | $ 100,000,000 | ||||||||
PNMR 2018 One Year Term Loan | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Variable interest rate | 3.20% | ||||||||||
PNMR Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 300,000,000 | $ 10,000,000 | |||||||||
Short-term debt | 20,000,000 | 165,600,000 | |||||||||
PNMR Revolving Credit Facility | Scenario, forecast | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 290,000,000 | ||||||||||
PNMR Development Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Short-term debt | $ 6,000,000 | 0 | |||||||||
Interest rates on outstanding borrowings | 3.46% | ||||||||||
Subsequent Event | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 25,000,000 | ||||||||||
Invested cash | 900,000 | ||||||||||
Subsequent Event | PNMR Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | 250,000,000 | ||||||||||
Subsequent Event | Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | 729,000,000 | ||||||||||
Subsequent Event | PNMR Development Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | 14,100,000 | ||||||||||
PNM Resources | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Short-term debt | $ 170,000,000 | 265,600,000 | |||||||||
PNM Resources | PNMR Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Interest rates on outstanding borrowings | 3.76% | ||||||||||
Texas-New Mexico Power Company | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Subsidiary loan agreements | $ 100,000 | 0 | |||||||||
Short-term debt | 17,500,000 | 0 | |||||||||
Letters of credit outstanding | $ 100,000 | ||||||||||
Texas-New Mexico Power Company | PNM Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Interest rates on outstanding borrowings | 3.17% | ||||||||||
Texas-New Mexico Power Company | TNMP Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 75,000,000 | ||||||||||
Short-term debt | 17,500,000 | 0 | |||||||||
Texas-New Mexico Power Company | TNMP Revolving Credit Facility | 9.50% due April 2019 | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Aggregate principal amount of bonds | 75,000,000 | ||||||||||
Texas-New Mexico Power Company | Subsequent Event | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Subsidiary loan agreements | 0 | $ 0 | |||||||||
Invested cash | 0 | $ 0 | |||||||||
Texas-New Mexico Power Company | Subsequent Event | TNMP Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | 37,400,000 | ||||||||||
Public Service Company of New Mexico | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Subsidiary loan agreements | 19,800,000 | $ 0 | 0 | ||||||||
Short-term debt | 42,400,000 | 39,800,000 | |||||||||
Letters of credit outstanding | 2,500,000 | ||||||||||
Public Service Company of New Mexico | PNM 2017 New Mexico Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 40,000,000 | ||||||||||
Public Service Company of New Mexico | PNM 2014 New Mexico Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 50,000,000 | ||||||||||
Number of participating lenders (in banks) | bank | 8 | ||||||||||
Public Service Company of New Mexico | PNM Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | 400,000,000 | $ 40,000,000 | |||||||||
Short-term debt | $ 32,400,000 | 39,800,000 | |||||||||
Interest rates on outstanding borrowings | 3.63% | ||||||||||
Public Service Company of New Mexico | PNM Revolving Credit Facility | Scenario, forecast | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Financing capacity | $ 360,000,000 | ||||||||||
Public Service Company of New Mexico | PNM 2014 New Mexico Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Interest rates on outstanding borrowings | 3.56% | ||||||||||
Public Service Company of New Mexico | PNM 2017 New Mexico Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Short-term debt | $ 10,000,000 | $ 0 | |||||||||
Public Service Company of New Mexico | Subsequent Event | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Subsidiary loan agreements | 0 | ||||||||||
Invested cash | 18,100,000 | ||||||||||
Public Service Company of New Mexico | Subsequent Event | PNM Revolving Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | 397,500,000 | ||||||||||
Public Service Company of New Mexico | Subsequent Event | PNM 2014 New Mexico Credit Facility | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Available borrowing capacity | $ 30,000,000 | ||||||||||
Maximum | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Subsidiary loan agreements | $ 100,000,000 |
Financing - Long-term Debt (Det
Financing - Long-term Debt (Details) - USD ($) | Jan. 18, 2019 | Mar. 29, 2019 | Feb. 26, 2019 | Feb. 22, 2019 | Dec. 31, 2018 | Dec. 21, 2018 | Jul. 31, 2018 | May 14, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 20, 2017 | Dec. 21, 2016 | Dec. 17, 2015 |
Debt Instrument [Line Items] | |||||||||||||
Total | $ 2,666,345,000 | $ 2,431,507,000 | |||||||||||
Principal, less current maturities | 0 | 257,293,000 | |||||||||||
Long-term debt, excluding current maturities, gross | 2,666,345,000 | 2,174,214,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | (3,765,000) | (6,138,000) | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 398,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | (3,765,000) | (6,536,000) | |||||||||||
PNMR 2016 Two-Year Term Loan due December 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 100,000,000 | ||||||||||||
PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||
Public Service Company of New Mexico | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total | 1,665,845,000 | 1,665,870,000 | |||||||||||
Principal, less current maturities | 0 | 25,000 | |||||||||||
Long-term debt, excluding current maturities, gross | 1,665,845,000 | 1,665,845,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 9,355,000 | 7,960,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 2,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | $ 9,355,000 | $ 7,958,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 1.875% due April 2033, mandatory tender - October 1, 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 1.875% | 1.875% | |||||||||||
Unsecured long-term debt, noncurrent | $ 146,000,000 | $ 146,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 1,022,000 | $ 1,383,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 6.25% due January 2038 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 6.25% | 6.25% | |||||||||||
Unsecured long-term debt, noncurrent | $ 36,000,000 | $ 36,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 216,000 | 228,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.125% due June 2040, mandatory tender - June 1, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.125% | ||||||||||||
Unsecured long-term debt, noncurrent | $ 37,000,000 | 37,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 314,000 | $ 404,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 5.20% due June 2040, mandatory tender - June 1, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 5.20% | 5.20% | |||||||||||
Unsecured long-term debt, noncurrent | $ 40,045,000 | $ 40,045,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 62,000 | $ 105,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 5.90% due June 2040 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 5.90% | 5.90% | |||||||||||
Unsecured long-term debt, noncurrent | $ 255,000,000 | $ 255,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 1,950,000 | $ 2,040,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 6.25% due June 2040 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 6.25% | 6.25% | |||||||||||
Unsecured long-term debt, noncurrent | $ 11,500,000 | $ 11,500,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 88,000 | 92,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.45% due September 2042, mandatory tender - June 1, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.45% | ||||||||||||
Unsecured long-term debt, noncurrent | $ 20,000,000 | 20,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 119,000 | $ 153,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.40% due June 2043, mandatory tender - June 1, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.40% | 2.40% | |||||||||||
Unsecured long-term debt, noncurrent | $ 39,300,000 | $ 39,300,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 146,000 | $ 243,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 5.20% due June 2043, mandatory tender - June 1, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 5.20% | 5.20% | |||||||||||
Unsecured long-term debt, noncurrent | $ 21,000,000 | $ 21,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 31,000 | $ 53,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 7.95% due May 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 7.95% | 7.95% | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 7.50% due August 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 7.50% | 7.50% | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 5.35% due October 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 5.35% | 5.35% | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.15% due May 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.15% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.45% due May 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.45% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.85% due August 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.85% | 3.85% | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.68% due May 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.68% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.78% due August 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.78% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.93% due May 2033 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.93% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 4.22% due May 2038 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 4.22% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 4.50% due May 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 4.50% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 4.60% due August 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 4.60% | ||||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 7.95% due May 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 7.95% | ||||||||||||
Unsecured long-term debt, noncurrent | $ 0 | $ 350,000,000 | $ 450,000,000 | ||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 272,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 7.50% due August 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 7.50% | ||||||||||||
Unsecured long-term debt, noncurrent | 0 | 100,025,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 73,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 5.35% due October 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 160,000,000 | 160,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 455,000 | 617,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.15% due May 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 55,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 338,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.45% due May 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 104,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 666,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.85% due August 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 250,000,000 | 250,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 1,974,000 | 2,274,000 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.68% due May 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 88,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 581,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.78% due August 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 15,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 101,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.93% due May 2033 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 38,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 256,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.22% due May 2038 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 45,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 307,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.50% due May 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 20,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 138,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.60% due August 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured long-term debt, noncurrent | 85,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 590,000 | 0 | |||||||||||
Public Service Company of New Mexico | Senior Unsecured Notes: | PNM 2017 Term Loan due January 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 200,000,000 | 200,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 1,000 | 23,000 | |||||||||||
Texas-New Mexico Power Company | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total | 560,500,000 | 465,500,000 | |||||||||||
Principal, less current maturities | 0 | 0 | |||||||||||
Long-term debt, excluding current maturities, gross | 560,500,000 | 465,500,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | (14,898,000) | (15,120,000) | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | $ (14,898,000) | $ (15,120,000) | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 9.50% due April 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 9.50% | 9.50% | |||||||||||
Unsecured long-term debt, noncurrent | $ 172,302,000 | $ 172,302,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 206,000 | $ 1,032,000 | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 6.95% due April 2043 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 6.95% | 6.95% | |||||||||||
Unsecured long-term debt, noncurrent | $ 93,198,000 | $ 93,198,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ (17,347,000) | $ (18,057,000) | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 4.03% due July 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 4.03% | 4.03% | |||||||||||
Unsecured long-term debt, noncurrent | $ 80,000,000 | $ 80,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 580,000 | $ 686,000 | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.53% due February 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 60,000,000 | ||||||||||||
Stated percentage | 3.53% | 3.53% | 3.53% | ||||||||||
Unsecured long-term debt, noncurrent | $ 60,000,000 | $ 60,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 585,000 | 667,000 | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.22% due August 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.22% | ||||||||||||
Unsecured long-term debt, noncurrent | $ 60,000,000 | 60,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 494,000 | 552,000 | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.85% due June 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.85% | ||||||||||||
Unsecured long-term debt, noncurrent | $ 60,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 584,000 | 0 | |||||||||||
Texas-New Mexico Power Company | First Mortgage Bonds: | TNMP 2018 Term Loan due July 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 35,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 0 | |||||||||||
PNMR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total | 440,000,000 | 300,137,000 | |||||||||||
Principal, less current maturities | 0 | 257,268,000 | |||||||||||
Long-term debt, excluding current maturities, gross | 440,000,000 | 42,869,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 1,778,000 | 1,022,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 396,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | 1,778,000 | 626,000 | |||||||||||
PNMR | PNMR 2015 Term Loan due March 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 0 | 150,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 12,000 | |||||||||||
PNMR | BTMU Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 0 | 50,137,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 1,001,000 | |||||||||||
PNMR | PNMR 2016 Two-Year Term Loan due December 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 0 | 100,000,000 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 9,000 | |||||||||||
PNMR | PNMR 3.25% 2018 SUNs due March 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 300,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 1,690,000 | 0 | |||||||||||
PNMR | PNMR Development Term Loan due November 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 90,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 88,000 | 0 | |||||||||||
PNMR | PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 50,000,000 | 0 | |||||||||||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 0 | $ 0 | |||||||||||
Subsequent Event | PNM | PNM 2019 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||||||
Subsequent Event | Texas-New Mexico Power Company | Mortgages | TNMP 2019 Bond Purchase Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 225,000,000 | $ 305,000,000 | |||||||||||
Stated percentage | 400.00% | ||||||||||||
Subsequent Event | Texas-New Mexico Power Company | Senior Unsecured Notes: | 9.50% due April 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extinguishment of debt | $ 172,300,000 | ||||||||||||
Stated percentage | 9.50% | ||||||||||||
JPMorgan Chase Bank, N.A. and U.S. Bank National Association | Public Service Company of New Mexico | Notes Payable to Banks | PNM 2017 Term Loan due January 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 200,000,000 | ||||||||||||
Stated percentage | 3.26% | ||||||||||||
JPMorgan Chase Bank, N.A. and U.S. Bank National Association | Subsequent Event | Public Service Company of New Mexico | Notes Payable to Banks | PNM 2019 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.13% |
Financing - Long-term Debt Matu
Financing - Long-term Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt, by Maturity [Abstract] | ||
2,019 | $ 372,302 | |
2,020 | 275,345 | |
2,021 | 606,000 | |
2,022 | 57,000 | |
2,023 | 55,000 | |
Thereafter | 1,300,698 | |
Total | 2,666,345 | $ 2,431,507 |
PNMR | ||
Long-term Debt, by Maturity [Abstract] | ||
2,019 | 0 | |
2,020 | 140,000 | |
2,021 | 300,000 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 0 | |
Total | 440,000 | 300,137 |
Public Service Company of New Mexico | ||
Long-term Debt, by Maturity [Abstract] | ||
2,019 | 200,000 | |
2,020 | 100,345 | |
2,021 | 306,000 | |
2,022 | 57,000 | |
2,023 | 55,000 | |
Thereafter | 947,500 | |
Total | 1,665,845 | 1,665,870 |
Texas-New Mexico Power Company | ||
Long-term Debt, by Maturity [Abstract] | ||
2,019 | 172,302 | |
2,020 | 35,000 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 353,198 | |
Total | $ 560,500 | $ 465,500 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) $ in Millions | Jan. 15, 2016USD ($)leaseMW | Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($)leaselessor | Jan. 15, 2015lease | Dec. 31, 1986lease | Dec. 31, 1985lease |
Lease commitments | ||||||
Operating lease, option term extensions | 2 years | |||||
Operating leases, renewal options after original lease term | 6 years | |||||
PNMR | ||||||
Lease commitments | ||||||
Non contractual operating lease, future minimum payments due | $ 18.5 | |||||
Public Service Company of New Mexico | ||||||
Lease commitments | ||||||
Non contractual operating lease, future minimum payments due | $ 7.5 | |||||
Public Service Company of New Mexico | Navajo Nation | ||||||
Lease commitments | ||||||
Number of operating leases set to expire | lease | 0 | |||||
Operating leases, period to expiration of the lease | 5 years | |||||
Annual lease payments | $ 6 | |||||
Right-of-way lease payments | $ 6.9 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station | ||||||
Lease commitments | ||||||
Number of leases | lease | 4 | 4 | ||||
Rental payments, fixed renewal option period during original terms of leases | 50.00% | |||||
Lease covenants, restrictions on conveying, transferring, leasing, and dividends (more than) | 5.00% | |||||
Loss contingency, range of possible loss, portion not accrued (up to) | $ 163.8 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 1 Leases | ||||||
Lease commitments | ||||||
Annual lease payments | 33 | |||||
Number of leases | lease | 4 | 4 | ||||
Annual lease payments during renewal period | 16.5 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 2 Leases | ||||||
Lease commitments | ||||||
Annual lease payments | $ 23.7 | |||||
Number of leases | lease | 1 | 3 | 4 | |||
Annual lease payments during renewal period | $ 1.6 | |||||
Estimated purchase price of leased asset | $ 78.1 | |||||
Leased capacity to be purchased (in megawatts) | MW | 31.25 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 1, Lease with Maximum Option Period Provision | ||||||
Lease commitments | ||||||
Number of lessors | lessor | 4 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 2, Lease with Maximum Option Period Provision | ||||||
Lease commitments | ||||||
Number of leases | lease | 1 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 1, Lease Expires in 2023 | ||||||
Lease commitments | ||||||
Number of leases | lease | 4 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 2, Lease Expires in 2024 | ||||||
Lease commitments | ||||||
Number of leases | lease | 1 | |||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 2 Leases 32.76 MW | ||||||
Lease commitments | ||||||
Number of leases | lease | 2 | |||||
Estimated purchase price of leased asset | $ 85.2 | |||||
Additional capacity to be leased (in megawatts) | MW | 32.76 | |||||
Texas-New Mexico Power Company | ||||||
Lease commitments | ||||||
Non contractual operating lease, future minimum payments due | $ 11 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PNMR | |||
Operating lease expense [Line Items] | |||
Operating lease expense | $ 37,959 | $ 35,972 | $ 37,432 |
Public Service Company of New Mexico | |||
Operating lease expense [Line Items] | |||
Operating lease expense | 33,085 | 31,817 | 32,843 |
Texas-New Mexico Power Company | |||
Operating lease expense [Line Items] | |||
Operating lease expense | $ 4,351 | $ 3,570 | $ 3,748 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Lease commitments | |
2,019 | $ 31,772 |
2,020 | 30,404 |
2,021 | 29,012 |
2,022 | 28,175 |
2,023 | 18,868 |
Later years | 43,489 |
Total minimum lease payments | 181,720 |
Public Service Company of New Mexico | |
Lease commitments | |
2,019 | 27,691 |
2,020 | 27,000 |
2,021 | 26,462 |
2,022 | 26,217 |
2,023 | 17,447 |
Later years | 42,329 |
Total minimum lease payments | 167,146 |
Texas-New Mexico Power Company | |
Lease commitments | |
2,019 | 3,664 |
2,020 | 3,102 |
2,021 | 2,324 |
2,022 | 1,795 |
2,023 | 1,279 |
Later years | 1,150 |
Total minimum lease payments | $ 13,314 |
Fair Value of Derivative and _3
Fair Value of Derivative and Other Financial Instruments - Overview and Commodity Derivatives (Details) | Dec. 31, 2018USD ($)MW | Dec. 31, 2017USD ($)MW | Dec. 31, 2016USD ($) |
Derivatives, Fair Value [Line Items] | |||
Current assets | $ 1,083,000 | $ 1,088,000 | |
Deferred charges | 2,511,000 | 3,556,000 | |
Current liabilities | (1,177,000) | (1,182,000) | |
Long-term liabilities | (2,511,000) | (3,556,000) | |
PNMR and PNM | |||
Derivatives, Fair Value [Line Items] | |||
Amounts recognized for the legal right to reclaim cash collateral | 0 | 0 | |
Amounts posted as cash collateral under margin arrangements | 1,000,000 | 800,000 | |
Obligations to return cash collateral | 1,000,000 | 900,000 | |
PNMR and PNM | Designated as hedging instrument | Commodity Contract | |||
Derivatives, Fair Value [Line Items] | |||
Current assets | 1,083,000 | 1,088,000 | |
Deferred charges | 2,511,000 | 3,556,000 | |
Total assets | 3,594,000 | 4,644,000 | |
Current liabilities | (1,177,000) | (1,182,000) | |
Long-term liabilities | (2,511,000) | (3,556,000) | |
Total Liabilities | (3,688,000) | (4,738,000) | |
Net | $ (94,000) | $ (94,000) | |
Public Service Company of New Mexico | |||
Derivatives, Fair Value [Line Items] | |||
Expected exposure to market risk (in megawatts) | MW | 65 | 65 | |
Power to be sold to third party (in megawatts) | MW | 36 | 36 | |
Current assets | $ 1,083,000 | $ 1,088,000 | |
Deferred charges | 2,511,000 | 3,556,000 | |
Current liabilities | (1,177,000) | (1,182,000) | |
Long-term liabilities | $ (2,511,000) | (3,556,000) | |
Other credit derivatives | Public Service Company of New Mexico | Designated as hedging instrument | Commodity Contract | |||
Derivatives, Fair Value [Line Items] | |||
Total assets | $ 3,600,000 | $ 4,600,000 |
Fair Value of Derivative and _4
Fair Value of Derivative and Other Financial Instruments - Effect of Mark-to-Market Instruments on Earnings (Details) - PNMR and PNM - Designated as hedging instrument - Commodity Contract - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) | $ (102) | $ (235) | $ (1,261) |
Electric operating revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) | (50) | 5,151 | (53) |
Cost of energy | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) | $ (52) | $ (5,386) | $ (1,208) |
Fair Value of Derivative and _5
Fair Value of Derivative and Other Financial Instruments - Volume Positions and Requirements to Provide Collateral (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)MMBTUMWh | Dec. 31, 2017USD ($)MMBTUMWh | |
Derivative [Line Items] | ||
Contract in a net liability position | $ | $ 0 | $ 0 |
Long | Commodity Contract | Economic Hedges | PNMR and PNM | ||
Derivative [Line Items] | ||
Power-related contracts | MMBTU | 100,000 | 100,000 |
Short | Commodity Contract | Economic Hedges | PNMR and PNM | ||
Derivative [Line Items] | ||
Power-related contracts | MWh | 0 | 0 |
Fair Value of Derivative and _6
Fair Value of Derivative and Other Financial Instruments - Investment in NDTs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Equity securities: | |
Net gains from equity securities sold | $ 4,864 |
Net (losses) from equity securities still held | (10,523) |
Total net (losses) on equity securities | (5,659) |
Available-for-sale debt securities: | |
Net (losses) on debt securities | (11,517) |
Net (losses) on investment securities | $ (17,176) |
Fair Value of Derivative and _7
Fair Value of Derivative and Other Financial Instruments - Non-Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect adjustment | $ 0 | $ 10,382,000 | |||
Transfers between levels | $ 0 | $ 0 | |||
Available for sale securities realized impairment losses | (9,400,000) | 3,300,000 | $ (1,200,000) | ||
Debt securities, unrealized loss position | 0 | ||||
PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 205,738,000 | ||||
Proceeds from sale of debt securities AFS | 984,533,000 | 637,492,000 | 522,601,000 | ||
Available for sale securities realized gain | 19,358,000 | 36,896,000 | 46,116,000 | ||
Available for sale securities realized loss | (16,624,000) | (12,993,000) | $ (25,430,000) | ||
Impairment losses other than temporary included in AOCI | 0 | ||||
Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 328,242,000 | 323,524,000 | |||
Nuclear Decommissioning Trust | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 287,100,000 | 293,700,000 | |||
Mine Reclamation Trust | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 41,100,000 | 29,800,000 | |||
Cash and cash equivalents | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 11,472,000 | 52,636,000 | |||
Domestic value | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 32,997,000 | 40,032,000 | |||
Domestic growth | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 7,258,000 | 35,456,000 | |||
International and other | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 70,777,000 | 45,867,000 | |||
U.S. Government | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 29,503,000 | 34,317,000 | |||
Municipals | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | 53,642,000 | 48,076,000 | |||
Corporate and other | Measured on a recurring basis | PNMR and PNM | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value | $ 114,158,000 | 67,140,000 | |||
Fixed income investments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment allocation targets | 65.00% | ||||
Scenario, adjustment | Fixed income investments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment allocation targets | 54.00% | ||||
Retained Earnings | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect adjustment | $ 11,200,000 | $ 11,208,000 | $ 10,382,000 |
Fair Value of Derivative and _8
Fair Value of Derivative and Other Financial Instruments - Maturities of Securities (Details) - PNMR and PNM $ in Thousands | Dec. 31, 2018USD ($) |
Available-for-Sale | |
Within 1 year | $ 12,488 |
After 1 year through 5 years | 63,600 |
After 5 years through 10 years | 60,344 |
After 10 years through 15 years | 9,984 |
After 15 years through 20 years | 10,904 |
After 20 years | 48,418 |
Available-for-sale debt securities | $ 205,738 |
Fair Value of Derivative and _9
Fair Value of Derivative and Other Financial Instruments - Items Recorded at Fair Value (Details) - PNMR and PNM - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 205,738 | |
Measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 328,242 | $ 323,524 |
Unrealized Gains | 2,600 | |
Measured on a recurring basis | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 3,594 | 4,644 |
Commodity derivative liabilities | (3,688) | (4,738) |
Net | (94) | (94) |
Measured on a recurring basis | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 11,472 | 52,636 |
Measured on a recurring basis | Domestic value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 32,997 | 40,032 |
Measured on a recurring basis | Domestic growth | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 7,258 | 35,456 |
Measured on a recurring basis | International and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 70,777 | 45,867 |
Measured on a recurring basis | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 29,503 | 34,317 |
Unrealized Gains | 1,098 | |
Measured on a recurring basis | International Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 8,435 | |
Unrealized Gains | 90 | |
Measured on a recurring basis | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 53,642 | 48,076 |
Unrealized Gains | 489 | |
Measured on a recurring basis | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 114,158 | 67,140 |
Unrealized Gains | 923 | |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 136,150 | 204,101 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity Contract | ||
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 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 11,472 | 52,636 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 32,997 | 40,032 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic growth | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,654 | 35,456 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | International and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 70,777 | 42,332 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 18,662 | 33,645 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | International Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 588 | 0 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 189,936 | 119,423 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 3,594 | 4,644 |
Commodity derivative liabilities | (3,688) | (4,738) |
Net | (94) | (94) |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Domestic value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Domestic growth | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,604 | 0 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | International and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 3,535 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,841 | 672 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | International Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 8,435 | |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 53,642 | 48,076 |
Measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 111,414 | 67,140 |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,156 | 0 |
Unrealized Gains | 18,028 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | 0 | |
Commodity derivative liabilities | 0 | |
Net | 0 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Domestic value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Unrealized Gains | 4,011 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Domestic growth | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Unrealized Gains | 3,995 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | International and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Unrealized Gains | 6,810 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Unrealized Gains | 273 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | International Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Unrealized Gains | 1,225 | |
Measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 2,156 | 0 |
Unrealized Gains | $ 1,714 |
Fair Value of Derivative and_10
Fair Value of Derivative and Other Financial Instruments - Items not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
PNMR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,703,810 | $ 2,554,836 |
Westmoreland Loan | 66,588 | |
Other investments | 297 | 503 |
PNMR | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 2,670,111 | 2,437,645 |
Westmoreland Loan | 56,640 | |
Other investments | 297 | 503 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Westmoreland Loan | 0 | |
Other investments | 297 | 503 |
PNMR | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 2,703,810 | 2,554,836 |
Westmoreland Loan | 0 | |
Other investments | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Westmoreland Loan | 66,588 | |
Other investments | 0 | 0 |
Public Service Company of New Mexico | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,668,736 | 1,727,135 |
Other investments | 91 | 283 |
Public Service Company of New Mexico | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,656,490 | 1,657,910 |
Other investments | 91 | 283 |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | 91 | 283 |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,668,736 | 1,727,135 |
Other investments | 0 | 0 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | 0 | 0 |
Texas-New Mexico Power Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 597,236 | 527,563 |
Other investments | 206 | 220 |
Texas-New Mexico Power Company | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 575,398 | 480,620 |
Other investments | 206 | 220 |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | 206 | 220 |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 597,236 | 527,563 |
Other investments | 0 | 0 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Other investments | $ 0 | $ 0 |
Fair Value of Derivative and_11
Fair Value of Derivative and Other Financial Instruments - Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Public Service Company of New Mexico | Pension Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 562,016 | $ 543,601 |
Fair value of plan assets at end of year | 489,978 | 562,016 |
Public Service Company of New Mexico | Pension Plan | Participation in PNMR Master Trust Investments: | Fair Value Measurement [Domain] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 487,498 | |
Fair value of plan assets at end of year | 412,790 | 487,498 |
Public Service Company of New Mexico | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 562,266 | |
Fair value of plan assets at end of year | 489,664 | 562,266 |
Public Service Company of New Mexico | Pension Plan | Participation in PNMR Master Trust Investments: | Estimate of Fair Value Measurement | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 74,768 | |
Fair value of plan assets at end of year | 76,874 | 74,768 |
Public Service Company of New Mexico | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 69,703 | 81,177 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 80,356 | 72,694 |
Fair value of plan assets at end of year | 69,703 | 80,356 |
Public Service Company of New Mexico | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 437 | |
Fair value of plan assets at end of year | 190 | 437 |
Public Service Company of New Mexico | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,636 | |
Fair value of plan assets at end of year | 10,636 | |
Public Service Company of New Mexico | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,816 | |
Fair value of plan assets at end of year | 10,816 | |
Public Service Company of New Mexico | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 6,710 | |
Fair value of plan assets at end of year | 6,710 | |
Public Service Company of New Mexico | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 31,660 | |
Fair value of plan assets at end of year | 31,660 | |
Public Service Company of New Mexico | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 20,918 | |
Fair value of plan assets at end of year | 69,513 | 20,918 |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 140,218 | |
Fair value of plan assets at end of year | 139,673 | 140,218 |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 32,515 | 38,881 |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 437 | |
Fair value of plan assets at end of year | 190 | 437 |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,816 | |
Fair value of plan assets at end of year | 10,816 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 6,710 | |
Fair value of plan assets at end of year | 6,710 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 20,918 | |
Fair value of plan assets at end of year | 32,325 | 20,918 |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 347,089 | |
Fair value of plan assets at end of year | 272,829 | 347,089 |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 37,188 | 42,296 |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,636 | |
Fair value of plan assets at end of year | 10,636 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 31,660 | |
Fair value of plan assets at end of year | 31,660 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 37,188 | 0 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 191 | 352 |
Fair value of plan assets at end of year | 288 | 191 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Actual return on assets sold during the period | (7) | 1 |
Actual return on assets still held at period end | (1) | (7) |
Purchases | 192 | 92 |
Sales | (87) | (247) |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 191 | |
Fair value of plan assets at end of year | 288 | 191 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 0 | 0 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Public Service Company of New Mexico | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
Texas-New Mexico Power Company | Pension Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 63,499 | 60,624 |
Fair value of plan assets at end of year | 55,074 | 63,499 |
Texas-New Mexico Power Company | Pension Plan | Participation in PNMR Master Trust Investments: | Fair Value Measurement [Domain] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 53,273 | |
Fair value of plan assets at end of year | 45,283 | 53,273 |
Texas-New Mexico Power Company | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 63,533 | |
Fair value of plan assets at end of year | 54,661 | 63,533 |
Texas-New Mexico Power Company | Pension Plan | Participation in PNMR Master Trust Investments: | Estimate of Fair Value Measurement | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,260 | |
Fair value of plan assets at end of year | 9,378 | 10,260 |
Texas-New Mexico Power Company | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 8,791 | 10,145 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 10,002 | 8,544 |
Fair value of plan assets at end of year | 8,744 | 10,002 |
Texas-New Mexico Power Company | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 149 | |
Fair value of plan assets at end of year | 66 | 149 |
Texas-New Mexico Power Company | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,597 | |
Fair value of plan assets at end of year | 1,597 | |
Texas-New Mexico Power Company | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 293 | |
Fair value of plan assets at end of year | 293 | |
Texas-New Mexico Power Company | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,410 | |
Fair value of plan assets at end of year | 1,410 | |
Texas-New Mexico Power Company | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 4,011 | |
Fair value of plan assets at end of year | 4,011 | |
Texas-New Mexico Power Company | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 2,685 | |
Fair value of plan assets at end of year | 8,725 | 2,685 |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 15,244 | |
Fair value of plan assets at end of year | 15,149 | 15,244 |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 3,789 | 4,537 |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 149 | |
Fair value of plan assets at end of year | 66 | 149 |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 293 | |
Fair value of plan assets at end of year | 293 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,410 | |
Fair value of plan assets at end of year | 1,410 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 2,685 | |
Fair value of plan assets at end of year | 3,723 | 2,685 |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 38,008 | |
Fair value of plan assets at end of year | 30,101 | 38,008 |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 5,002 | 5,608 |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,597 | |
Fair value of plan assets at end of year | 1,597 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 4,011 | |
Fair value of plan assets at end of year | 4,011 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 5,002 | 0 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 21 | 38 |
Fair value of plan assets at end of year | 33 | 21 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Actual return on assets sold during the period | (1) | 0 |
Actual return on assets still held at period end | 0 | (1) |
Purchases | 23 | 10 |
Sales | (10) | (26) |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Pension Plan | Participation in PNMR Master Trust Investments: | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 21 | |
Fair value of plan assets at end of year | 33 | 21 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets owned | 0 | 0 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | |
Texas-New Mexico Power Company | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | Mutual funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Fair Value Measurement [Domain] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 540,771 | |
Fair value of plan assets at end of year | 458,073 | 540,771 |
PNMR | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 625,799 | |
Fair value of plan assets at end of year | 544,325 | 625,799 |
PNMR | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 7,697 | |
Fair value of plan assets at end of year | 20,120 | 7,697 |
PNMR | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 42,048 | |
Fair value of plan assets at end of year | 54,270 | 42,048 |
PNMR | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 37,026 | |
Fair value of plan assets at end of year | 874 | 37,026 |
PNMR | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 19,136 | |
Fair value of plan assets at end of year | 143,517 | 19,136 |
PNMR | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 25,099 | |
Fair value of plan assets at end of year | 0 | 25,099 |
PNMR | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 215,535 | |
Fair value of plan assets at end of year | 84,459 | 215,535 |
PNMR | International government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 117,572 | |
Fair value of plan assets at end of year | 5,721 | 117,572 |
PNMR | Municipals | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 11,438 | |
Fair value of plan assets at end of year | 9,558 | 11,438 |
PNMR | Corporate and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 65,220 | |
Fair value of plan assets at end of year | 139,554 | 65,220 |
PNMR | Private equity funds | Estimate of Fair Value Measurement | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 22,281 | |
Fair value of plan assets at end of year | 18,021 | 22,281 |
PNMR | Hedge funds | Estimate of Fair Value Measurement | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 45,615 | |
Fair value of plan assets at end of year | 45,589 | 45,615 |
PNMR | Real estate funds | Estimate of Fair Value Measurement | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 17,132 | |
Fair value of plan assets at end of year | 22,642 | 17,132 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 155,462 | |
Fair value of plan assets at end of year | 154,822 | 155,462 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 7,697 | |
Fair value of plan assets at end of year | 20,120 | 7,697 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 54,270 | 0 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 37,026 | |
Fair value of plan assets at end of year | 0 | 37,026 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 19,136 | |
Fair value of plan assets at end of year | 0 | 19,136 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 80,482 | 0 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | International government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 91,603 | |
Fair value of plan assets at end of year | 0 | 91,603 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | (50) | 0 |
PNMR | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 385,097 | |
Fair value of plan assets at end of year | 302,930 | 385,097 |
PNMR | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Other Observable Inputs (Level 2) | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 42,048 | |
Fair value of plan assets at end of year | 0 | 42,048 |
PNMR | Significant Other Observable Inputs (Level 2) | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 874 | 0 |
PNMR | Significant Other Observable Inputs (Level 2) | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 143,517 | 0 |
PNMR | Significant Other Observable Inputs (Level 2) | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 25,099 | |
Fair value of plan assets at end of year | 0 | 25,099 |
PNMR | Significant Other Observable Inputs (Level 2) | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 215,323 | |
Fair value of plan assets at end of year | 3,977 | 215,323 |
PNMR | Significant Other Observable Inputs (Level 2) | International government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 25,969 | |
Fair value of plan assets at end of year | 5,721 | 25,969 |
PNMR | Significant Other Observable Inputs (Level 2) | Municipals | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 11,438 | |
Fair value of plan assets at end of year | 9,558 | 11,438 |
PNMR | Significant Other Observable Inputs (Level 2) | Corporate and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 65,220 | |
Fair value of plan assets at end of year | 139,283 | 65,220 |
PNMR | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 212 | 390 |
Fair value of plan assets at end of year | 321 | 212 |
PNMR | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | International funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | Domestic value | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | Domestic growth | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | Other funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | U.S. government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 212 | |
Actual return on assets sold during the period | (8) | 1 |
Actual return on assets still held at period end | (1) | (8) |
Purchases | 215 | 102 |
Sales | (97) | (273) |
Fair value of plan assets at end of year | 0 | 212 |
PNMR | Significant Unobservable Inputs (Level 3) | International government | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | Municipals | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
PNMR | Significant Unobservable Inputs (Level 3) | Corporate and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | $ 321 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) | Feb. 01, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2018USD ($)leaseinvestorMW | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 20, 2018USD ($) | Jul. 19, 2016USD ($) | May 31, 2016MW | Jan. 15, 2016leaseMW | Jan. 15, 2015lease | Dec. 31, 1986lease | Dec. 31, 1985lease |
Variable Interest Entity, Statement Of Operation [Abstract] | ||||||||||||
Earnings attributable to non-controlling interest | $ 15,112,000 | $ 15,017,000 | $ 14,519,000 | |||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Current assets | 302,524,000 | 294,420,000 | ||||||||||
Total assets | 6,865,551,000 | 6,646,103,000 | 6,471,080,000 | |||||||||
Current liabilities | 512,453,000 | 835,644,000 | ||||||||||
Owners’ equity – non-controlling interest | 64,212,000 | 66,195,000 | ||||||||||
Accrued lease payments | 31,772,000 | |||||||||||
Public Service Company of New Mexico | ||||||||||||
Variable Interest Entity, Statement Of Operation [Abstract] | ||||||||||||
Earnings attributable to non-controlling interest | 15,112,000 | 15,017,000 | 14,519,000 | |||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Current assets | 270,319,000 | 243,631,000 | ||||||||||
Total assets | 5,035,883,000 | 4,921,563,000 | ||||||||||
Current liabilities | 223,023,000 | 218,496,000 | ||||||||||
Owners’ equity – non-controlling interest | $ 64,212,000 | 66,195,000 | ||||||||||
Number of different institutional investors of trust lessors | investor | 5 | |||||||||||
Accrued lease payments | $ 27,691,000 | |||||||||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station | ||||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Variable Interest Entities, Other financial obligations due to beneficial owner | 0 | |||||||||||
Variable interest entities, Exposure beyond contractual lease payments | 0 | |||||||||||
Variable interest entities, Additional rights to assets beyond use of leased assets | 0 | |||||||||||
Variable interest entity, nonconsolidated, carrying amount, assets | $ 0 | |||||||||||
Public Service Company of New Mexico | Valencia | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||
Number of megawatts purchased (in megawatts) | MW | 158 | |||||||||||
Payment for fixed charges | $ 19,600,000 | 19,600,000 | 19,300,000 | |||||||||
Payment for variable charges | $ 1,400,000 | 1,300,000 | 1,100,000 | |||||||||
Purchase price, percentage of the book value reduced by related indebtedness | 50.00% | |||||||||||
Purchase price, percentage of fair market value | 50.00% | |||||||||||
Variable Interest Entity, Statement Of Operation [Abstract] | ||||||||||||
Operating revenues | $ 21,025,000 | 20,887,000 | 20,371,000 | |||||||||
Operating expenses | (5,913,000) | (5,870,000) | (5,852,000) | |||||||||
Earnings attributable to non-controlling interest | 15,112,000 | 15,017,000 | $ 14,519,000 | |||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Current assets | 2,684,000 | 2,688,000 | ||||||||||
Net property, plant and equipment | 62,066,000 | 64,109,000 | ||||||||||
Total assets | 64,750,000 | 66,797,000 | ||||||||||
Current liabilities | 538,000 | 602,000 | ||||||||||
Owners’ equity – non-controlling interest | $ 64,212,000 | 66,195,000 | ||||||||||
Number of years the operating licenses for plants were extended | 20 years | |||||||||||
Public Service Company of New Mexico | Valencia | Maximum | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||
Option to purchase a percentage of the plant or VIE (up to ) | 50.00% | |||||||||||
Public Service Company of New Mexico | PVNGS | Palo Verde Nuclear Generating Station | ||||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Accrued lease payments | $ 8,300,000 | |||||||||||
NM Capital | Coal Supply | San Juan Generating Station | ||||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Loan agreement | $ 125,000,000 | $ 125,000,000 | ||||||||||
Issuance in letters of credit | $ 30,300,000 | $ 30,300,000 | ||||||||||
NM Capital | Coal Supply | San Juan Coal Company, Westmoreland | ||||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Amount outstanding | $ 50,100,000 | |||||||||||
Palo Verde Nuclear Generating Station, Unit 1 Leases | Public Service Company of New Mexico | ||||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Number of leases | lease | 4 | 4 | ||||||||||
Palo Verde Nuclear Generating Station, Unit 2 Leases | Public Service Company of New Mexico | ||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||
Number of megawatts purchased (in megawatts) | MW | 64.1 | 64.1 | ||||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||||||
Number of leases | lease | 3 | 1 | 4 | |||||||||
Number of leases under which assets were purchased | lease | 3 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | 4.00% | ||
Amortization of gains and losses that are outside the corridor | 5 years | ||
Other expenses | $ 15,696,000 | $ 24,247,000 | $ 20,524,000 |
Maximum annual contributions per employee | 75.00% | ||
Employer matching contribution, percent of employees' gross pay | 6.00% | ||
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-matching contribution of eligible compensation based on eligible employee's age | 3.00% | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-matching contribution of eligible compensation based on eligible employee's age | 10.00% | ||
Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expenses | $ 11,128,000 | 18,556,000 | 16,279,000 |
Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expenses | $ 1,422,000 | $ 1,443,000 | $ 1,427,000 |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected long-term return resulting from effect of 1% change | 1.00% | ||
Expected long-term return resulting from effect of one-percentage point increase (as a percent) | 1.00% | ||
Expected employer contributions to pension plans | $ 0 | ||
Pension Plan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate related to anticipated contributions | 4.20% | ||
Pension Plan | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate related to anticipated contributions | 4.60% | ||
Pension Plan | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 26.00% | ||
Pension Plan | Equity Securities | Developed Countries Outside of United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 7.00% | ||
Pension Plan | Fixed income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 54.00% | ||
Pension Plan | Fixed income | Scenario, plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 54.00% | ||
Pension Plan | Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 20.00% | ||
Pension Plan | Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | 6.54% | 6.40% | 6.50% |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 5,000,000 | ||
Actual rate of return for pension plans | (5.40%) | ||
Expected employer contributions in year 5 | $ 1,300,000 | ||
Actuarial gains (losses) recorded as regulatory assets | $ (22,728,000) | ||
Pension Plan | Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | 6.57% | 6.40% | 6.50% |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 600,000 | ||
Actual rate of return for pension plans | (5.20%) | ||
Expected employer contributions in year 5 | $ 0 | ||
Actuarial gains (losses) recorded as regulatory assets | $ (1,926,000) | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected long-term return resulting from effect of 1% change | 1.00% | ||
Other Postretirement Benefits | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 70.00% | ||
Other Postretirement Benefits | Fixed income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment allocation targets | 30.00% | ||
Other Postretirement Benefits | Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | 7.42% | 7.50% | 7.70% |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 700,000 | ||
Actual rate of return for pension plans | (9.70%) | ||
Actuarial gains (losses) recorded as regulatory assets | $ 900,000 | ||
Other Postretirement Benefits | Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets | 5.86% | 5.40% | 5.70% |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 100,000 | ||
Actual rate of return for pension plans | (10.00%) | ||
Actuarial gains (losses) recorded as regulatory assets | $ 1,600,000 | ||
Effect of 1%-point change in assumed health care cost trend rates on net periodic expense and APBO | 0 | ||
Accounting Standards Update 2017-07 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expenses | $ 8,600,000 | $ 6,700,000 | |
Accounting Standards Update 2017-07 | Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expenses | 4,300,000 | ||
Non-service cost deferred as regulatory assets | 400,000 | ||
Accounting Standards Update 2017-07 | Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expenses | 300,000 | ||
Non-service cost deferred as regulatory liability | $ 100,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - APBO, PBO, Fair Value of Plan Assets, and Funded Status of the Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Non-current liability | $ 100,375 | $ 94,003 | |
Public Service Company of New Mexico | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Non-current liability | 92,981 | 86,124 | |
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 623,983 | 621,751 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 24,270 | 26,908 | 30,307 |
Actuarial (gain) loss | (41,025) | 26,298 | |
Benefits paid | (42,970) | (50,974) | |
Balance at end of year | 564,258 | 623,983 | 621,751 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 562,016 | 543,601 | |
Actual return on plan assets | (29,068) | 69,389 | |
Employer contributions | 0 | 0 | |
Fair value of plan assets at end of year | 489,978 | 562,016 | 543,601 |
Funded status – asset (liability) for pension benefits | (74,280) | (61,967) | |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 89,897 | 94,269 | |
Service cost | 83 | 96 | 140 |
Interest cost | 3,439 | 4,025 | 4,346 |
Participant contributions | 2,390 | 3,069 | |
Actuarial (gain) loss | (12,206) | (1,601) | |
Benefits paid | (8,298) | (9,961) | |
Balance at end of year | 75,305 | 89,897 | 94,269 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 80,356 | 72,694 | |
Actual return on plan assets | (7,669) | 14,222 | |
Employer contributions | 2,924 | 332 | |
Fair value of plan assets at end of year | 69,703 | 80,356 | 72,694 |
Funded status – asset (liability) for pension benefits | (5,602) | (9,541) | |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 16,117 | 16,212 | |
Service cost | 0 | 0 | 0 |
Interest cost | 622 | 697 | 812 |
Actuarial (gain) loss | (508) | 674 | |
Benefits paid | (1,505) | (1,466) | |
Balance at end of year | 14,726 | 16,117 | 16,212 |
Less current liability | 1,627 | 1,501 | |
Non-current liability | 13,099 | 14,616 | |
Texas-New Mexico Power Company | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Non-current liability | 7,394 | 7,879 | |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 68,423 | 67,061 | |
Service cost | 0 | 0 | 0 |
Interest cost | 2,625 | 2,887 | 3,304 |
Actuarial (gain) loss | (5,216) | 3,050 | |
Benefits paid | (5,245) | (4,575) | |
Balance at end of year | 60,587 | 68,423 | 67,061 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 63,499 | 60,624 | |
Actual return on plan assets | (3,180) | 7,450 | |
Employer contributions | 0 | 0 | |
Fair value of plan assets at end of year | 55,074 | 63,499 | 60,624 |
Funded status – asset (liability) for pension benefits | (5,513) | (4,924) | |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 12,279 | 12,830 | |
Service cost | 134 | 143 | 186 |
Interest cost | 477 | 556 | 677 |
Participant contributions | 174 | 379 | |
Actuarial (gain) loss | (2,213) | (381) | |
Benefits paid | (787) | (1,248) | |
Balance at end of year | 10,064 | 12,279 | 12,830 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 10,002 | 8,544 | |
Actual return on plan assets | (988) | 1,642 | |
Employer contributions | 343 | 685 | |
Fair value of plan assets at end of year | 8,744 | 10,002 | 8,544 |
Funded status – asset (liability) for pension benefits | (1,320) | (2,277) | |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 771 | 787 | |
Service cost | 0 | 0 | 0 |
Interest cost | 29 | 33 | 40 |
Actuarial (gain) loss | (4) | 44 | |
Benefits paid | (94) | (93) | |
Balance at end of year | 702 | 771 | $ 787 |
Less current liability | 141 | 93 | |
Non-current liability | $ 561 | $ 678 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Actuarial (Gain) Loss Results (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Public Service Company of New Mexico | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | $ (34,769) | $ 27,547 |
Claims, contributions, and demographic experience | 431 | (1,249) |
Other assumptions and experience | 279 | 0 |
Mortality rate | (6,966) | 0 |
Actuarial (gain) loss | (41,025) | 26,298 |
Public Service Company of New Mexico | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (4,076) | 3,536 |
Claims, contributions, and demographic experience | (3,174) | (5,845) |
Assumed participation rate | (4,040) | 0 |
Mortality rate | (916) | 0 |
Medical benefits | 0 | 1,425 |
Dental trend assumption | 0 | (717) |
Actuarial (gain) loss | (12,206) | (1,601) |
Texas-New Mexico Power Company | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (4,278) | 3,528 |
Claims, contributions, and demographic experience | (301) | (517) |
Other assumptions and experience | 68 | 39 |
Mortality rate | (705) | 0 |
Actuarial (gain) loss | (5,216) | 3,050 |
Texas-New Mexico Power Company | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (710) | 613 |
Claims, contributions, and demographic experience | 72 | (994) |
Assumed participation rate | (1,461) | 0 |
Mortality rate | (114) | 0 |
Medical benefits | 0 | 0 |
Dental trend assumption | 0 | 0 |
Actuarial (gain) loss | $ (2,213) | $ (381) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Pre-Tax Information about Prior Service Cost and Net Actuarial (Gain) loss in AOCI (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Public Service Company of New Mexico | Pension Plan | |
Prior service cost | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | $ (1,045) |
Experience (gain) loss | 0 |
Regulatory asset (liability) adjustment | 1,045 |
Amortization recognized in net periodic benefit cost (income) | 0 |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Amortization expected to be recognized in 2019 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax [Abstract] | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 148,526 |
Experience (gain) loss | 22,728 |
Regulatory asset (liability) adjustment | (13,571) |
Amortization recognized in net periodic benefit cost (income) | (7,409) |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 150,274 |
Amortization expected to be recognized in 2019 | 7,270 |
Public Service Company of New Mexico | Executive Retirement Program | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax [Abstract] | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 2,450 |
Experience (gain) loss | (508) |
Regulatory asset (liability) adjustment | 295 |
Amortization recognized in net periodic benefit cost (income) | (151) |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 2,086 |
Amortization expected to be recognized in 2019 | 133 |
Texas-New Mexico Power Company | Pension Plan | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax [Abstract] | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Experience (gain) loss | 1,926 |
Regulatory asset (liability) adjustment | (1,926) |
Amortization recognized in net periodic benefit cost (income) | 0 |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Amortization expected to be recognized in 2019 | 0 |
Texas-New Mexico Power Company | Executive Retirement Program | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax [Abstract] | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Experience (gain) loss | 4 |
Regulatory asset (liability) adjustment | (4) |
Amortization recognized in net periodic benefit cost (income) | 0 |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at end of year | 0 |
Amortization expected to be recognized in 2019 | $ 0 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 24,270 | 26,908 | 30,307 |
Expected return on plan assets | (34,686) | (33,803) | (35,416) |
Amortization of net (gain) loss | 16,348 | 16,006 | 13,820 |
Amortization of prior service cost | (965) | (965) | (965) |
Net periodic benefit cost | 4,967 | 8,146 | 7,746 |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 83 | 96 | 140 |
Interest cost | 3,439 | 4,025 | 4,346 |
Expected return on plan assets | (5,414) | (5,230) | (5,483) |
Amortization of net (gain) loss | 2,354 | 3,682 | 1,145 |
Amortization of prior service cost | (1,664) | (1,663) | (30) |
Net periodic benefit cost | (1,202) | 910 | 118 |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 622 | 697 | 812 |
Amortization of net (gain) loss | 359 | 313 | 256 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | 981 | 1,010 | 1,068 |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 2,625 | 2,887 | 3,304 |
Expected return on plan assets | (3,963) | (3,779) | (3,943) |
Amortization of net (gain) loss | 1,088 | 923 | 700 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | (250) | 31 | 61 |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 134 | 143 | 186 |
Interest cost | 477 | 556 | 677 |
Expected return on plan assets | (542) | (456) | (490) |
Amortization of net (gain) loss | (227) | (79) | (40) |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | (158) | 164 | 333 |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 29 | 33 | 40 |
Amortization of net (gain) loss | 15 | 9 | 2 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | $ 44 | $ 42 | $ 42 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 4.00% | ||
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.65% | 4.05% | 4.51% |
Discount rate for determining net periodic benefit cost (income) | 4.05% | 4.51% | 5.29% |
Expected return on plan assets | 6.54% | 6.40% | 6.50% |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.63% | 4.00% | 4.47% |
Discount rate for determining net periodic benefit cost (income) | 4.00% | 4.47% | 5.34% |
Expected return on plan assets | 7.42% | 7.50% | 7.70% |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.66% | 4.05% | 4.51% |
Discount rate for determining net periodic benefit cost (income) | 4.05% | 4.51% | 5.29% |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.63% | 4.01% | 4.49% |
Discount rate for determining net periodic benefit cost (income) | 4.01% | 4.49% | 5.39% |
Expected return on plan assets | 6.57% | 6.40% | 6.50% |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.63% | 4.00% | 4.47% |
Discount rate for determining net periodic benefit cost (income) | 4.00% | 4.47% | 5.34% |
Expected return on plan assets | 5.86% | 5.40% | 5.70% |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 4.63% | 4.01% | 4.49% |
Discount rate for determining net periodic benefit cost (income) | 4.01% | 4.49% | 5.39% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Pension Benefit Payments are Expected to be Paid (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Public Service Company of New Mexico | Pension Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | $ 46,125 |
2,020 | 45,595 |
2,021 | 44,804 |
2,022 | 44,000 |
2,023 | 43,066 |
2024 - 2028 | 199,157 |
Public Service Company of New Mexico | Other Postretirement Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 7,365 |
2,020 | 7,309 |
2,021 | 7,029 |
2,022 | 6,653 |
2,023 | 6,351 |
2024 - 2028 | 26,678 |
Public Service Company of New Mexico | Executive Retirement Program | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 1,627 |
2,020 | 1,463 |
2,021 | 1,427 |
2,022 | 1,385 |
2,023 | 1,337 |
2024 - 2028 | 5,792 |
Texas-New Mexico Power Company | Pension Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 5,137 |
2,020 | 5,065 |
2,021 | 5,005 |
2,022 | 4,886 |
2,023 | 4,667 |
2024 - 2028 | 21,075 |
Texas-New Mexico Power Company | Other Postretirement Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 629 |
2,020 | 653 |
2,021 | 674 |
2,022 | 699 |
2,023 | 714 |
2024 - 2028 | 3,558 |
Texas-New Mexico Power Company | Executive Retirement Program | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 141 |
2,020 | 91 |
2,021 | 88 |
2,022 | 84 |
2,023 | 79 |
2024 - 2028 | $ 301 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Assumed Health Care Cost Trend Rates and Impact of a One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Public Service Company of New Mexico - Other Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Health care cost trend rate assumed for next year | 6.50% | 6.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,026 | 2,024 |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | ||
1-Percentage-Point Increase, Effect on total of service and interest cost | $ 60 | |
1-Percentage-Point Increase, Effect on APBO | 1,158 | |
1-Percentage-Point Decrease, Effect on total of service and interest cost | 100 | |
1-Percentage-Point Decrease, Effect on APBO | $ (1,529) |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
401(k) plan | |||
Defined Contribution Plan [Abstract] | |||
401(k) plan | $ 16,677 | $ 16,452 | $ 17,762 |
401(k) plan | Public Service Company of New Mexico | |||
Defined Contribution Plan [Abstract] | |||
401(k) plan | 12,052 | 12,120 | 13,397 |
401(k) plan | Texas-New Mexico Power Company | |||
Defined Contribution Plan [Abstract] | |||
401(k) plan | 4,625 | 4,332 | 4,365 |
Non-qualified plan | |||
Defined Contribution Plan [Abstract] | |||
Non-qualified plan | 865 | 3,702 | 2,017 |
Non-qualified plan | Public Service Company of New Mexico | |||
Defined Contribution Plan [Abstract] | |||
Non-qualified plan | 621 | 2,834 | 1,535 |
Non-qualified plan | Texas-New Mexico Power Company | |||
Defined Contribution Plan [Abstract] | |||
Non-qualified plan | $ 244 | $ 868 | $ 482 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Equity Plan and Accounting for Stock Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | May 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock-based arrangements | $ 7,100 | $ 6,200 | $ 5,600 | |||
Tax expense (benefit) related to stock compensation awards | 4,647 | (2,324) | 0 | |||
Cumulative effect adjustment (Note 9) | $ 0 | $ 10,382 | ||||
Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Tax expense (benefit) related to stock compensation awards | 1,400 | 2,300 | ||||
Retained Earnings | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative effect adjustment (Note 9) | 11,200 | 11,208 | $ 10,382 | |||
Retained Earnings | Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative effect adjustment (Note 9) | 10,400 | |||||
Restricted Shares and Performance-Based Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 4,000 | |||||
Period to recognize compensation expense | 1 year 5 months 12 days | |||||
Public Service Company of New Mexico | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock-based arrangements | $ 4,900 | 4,400 | 4,200 | |||
Tax expense (benefit) related to stock compensation awards | 3,967 | (1,708) | 0 | |||
Public Service Company of New Mexico | Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Tax expense (benefit) related to stock compensation awards | 1,000 | 1,700 | ||||
Public Service Company of New Mexico | Retained Earnings | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative effect adjustment (Note 9) | $ 11,208 | |||||
Texas-New Mexico Power Company | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock-based arrangements | 2,200 | 1,800 | 1,500 | |||
Tax expense (benefit) related to stock compensation awards | 735 | (616) | $ 0 | |||
Texas-New Mexico Power Company | Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Tax expense (benefit) related to stock compensation awards | $ 400 | $ 600 | ||||
Performance Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for awards | 3 years | |||||
Vesting rate | 100.00% | |||||
Number of shares authorized (in shares) | 13,500,000 | |||||
Charge to share pool for each share awarded | 5 | |||||
Performance Equity Plan | Nonemployee Members of the Board of Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for awards | 1 year |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Shares and Performance-Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected quarterly dividends per share (in dollars per share) | $ 0.2650 | $ 0.2425 | $ 0.2200 | |
Risk-free interest rate | 2.38% | 1.50% | 0.94% | |
Market-Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 2.96% | 2.67% | 2.74% | |
Expected volatility | 19.12% | 20.80% | 20.44% | |
Risk-free interest rate | 2.36% | 1.54% | 0.97% | |
Achieves a specific performance target by the end of 2017 and she remains an employee | Common Stock | Chairman, President, and Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 17,953 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - USD ($) | Mar. 02, 2018 | Mar. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2017 | Dec. 31, 2015 | Jan. 01, 2015 | Mar. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | $ 7,100,000 | $ 6,200,000 | $ 5,600,000 | ||||||
Chairman, President, and Chief Executive Officer | Common Stock | Achieves a specified improvement in total shareholder return at the end of 2016 compared to 2011 and she remains an employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Number of shares authorized (in shares) | 135,000 | ||||||||
Chairman, President, and Chief Executive Officer | Common Stock | Achieves Specified Improvement In Total Shareholder Return At End Of 2014 Compared To 2011 And She Remains Employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Number of shares authorized (in shares) | 35,000 | ||||||||
Number of shares approved upon meeting target (in shares) | 100,000 | ||||||||
Chairman, President, and Chief Executive Officer | Common Stock | Achieves a specific performance target by the end of 2019 and she remains an employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Number of shares authorized (in shares) | 53,859 | ||||||||
Chairman, President, and Chief Executive Officer | Common Stock | Achieves a specific performance target by the end of 2017 and she remains an employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Number of shares authorized (in shares) | 17,953 | ||||||||
Executive Vice President and Chief Financial Officer | Common Stock | Achieved performance target for 2015 and 2016 | |||||||||
Restricted Stock | |||||||||
Granted (in shares) | 7,670 | 2,754 | |||||||
Weighted-Average Grant Date Fair Value | |||||||||
Granted (in dollars per share) | $ 35.85 | $ 36.30 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Number of shares approved upon meeting target (in shares) | 100,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||||
Weighted-average grant date fair value (in dollars per share) | $ 35.85 | $ 36.30 | |||||||
Executive Vice President and Chief Financial Officer | Common Stock | Achieved performance target for 2015, 2016 and 2017 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Value of stock to be granted if performance targets are achieved | $ 275,000 | ||||||||
Restricted Stock | |||||||||
Restricted Stock | |||||||||
Beginning balance (in shares) | 189,045 | ||||||||
Granted (in shares) | 221,062 | ||||||||
Exercised (in shares) | (237,402) | ||||||||
Forfeited (in shares) | (6,054) | ||||||||
Ending balance (in shares) | 166,651 | 189,045 | |||||||
Weighted-Average Grant Date Fair Value | |||||||||
Beginning balance (in dollars per share) | $ 31.11 | ||||||||
Granted (in dollars per share) | 29.65 | $ 23.06 | $ 26.49 | ||||||
Exercised (in dollars per share) | 28.46 | ||||||||
Forfeited (in dollars per share) | 31.37 | ||||||||
Ending balance (in dollars per share) | 32.93 | 31.11 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||||
Weighted-average grant date fair value (in dollars per share) | $ 29.65 | $ 23.06 | $ 26.49 | ||||||
Total fair value of restricted shares that vested | $ 8,558,000 | $ 5,747,000 | $ 5,079,000 | ||||||
Stock Options | |||||||||
Stock Options | |||||||||
Beginning balance (in shares) | 193,441 | ||||||||
Granted (in shares) | 0 | ||||||||
Exercised (in shares) | (112,441) | ||||||||
Forfeited (in shares) | 0 | ||||||||
Expired (in shares) | 0 | ||||||||
Ending balance (in shares) | 81,000 | 193,441 | |||||||
Weighted Average Exercise Price | |||||||||
Beginning balance (in dollars per share) | $ 9.98 | ||||||||
Granted (in dollars per share) | 0 | ||||||||
Exercised (in dollars per share) | 8.56 | ||||||||
Forfeited (in dollars per share) | 0 | ||||||||
Expired (in dollars per share) | 0 | ||||||||
Ending balance (in dollars per share) | $ 11.94 | $ 9.98 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Aggregate intrinsic value of stock options outstanding | $ 2,400,000 | ||||||||
Weighted average remaining contract life | 1 year 15 days | ||||||||
Exercise price of stock options that are greater than the closing price (in shares) | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||||
Weighted-average grant date fair value options granted (in dollars per share) | $ 0 | $ 0 | $ 0 | ||||||
Total fair value of options that vested | $ 0 | $ 0 | $ 0 | ||||||
Total intrinsic value of options exercised | 3,117,000 | 2,234,000 | 1,242,000 | ||||||
Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | $ 1,000,000 | ||||||||
Performance Shares | Executive | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Shares granted (in shares) | 97,697 | ||||||||
Weighted percentage assigned to achieving market targets | 40.00% | ||||||||
Weighted percentage assigned to achieving performance targets | 60.00% | ||||||||
Shares excluded (in shares) | 47,279 | ||||||||
Shares approved, maximum number of shares available in year two (in shares) | 130,302 | ||||||||
Shares approved, maximum number of shares available in year three (in shares) | 146,941 | ||||||||
Performance period | 3 years | ||||||||
Public Service Company of New Mexico | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | $ 4,900,000 | 4,400,000 | 4,200,000 | ||||||
Public Service Company of New Mexico | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | 700,000 | ||||||||
Texas-New Mexico Power Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | 2,200,000 | $ 1,800,000 | $ 1,500,000 | ||||||
Texas-New Mexico Power Company | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Additional pre tax expense | $ 300,000 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Assets | ||
Current | $ 4,534 | $ 2,933 |
Non-Current | 598,930 | 600,672 |
Regulatory Liabilities | ||
Current | (9,446) | (2,309) |
Non-Current | (891,428) | (933,578) |
Public Service Company of New Mexico | ||
Regulatory Assets | ||
Current | 4,534 | 2,139 |
Non-Current | 460,903 | 459,239 |
Total regulatory assets | 465,437 | 461,378 |
Regulatory Liabilities | ||
Current | (5,975) | (784) |
Non-Current | (713,971) | (754,441) |
Total regulatory liabilities | (719,946) | (755,225) |
Public Service Company of New Mexico | Renewable energy rider | ||
Regulatory Liabilities | ||
Current | (4,475) | (779) |
Public Service Company of New Mexico | Other | ||
Regulatory Liabilities | ||
Current | (1,500) | (5) |
Public Service Company of New Mexico | Cost of removal | ||
Regulatory Liabilities | ||
Non-Current | (263,597) | (256,493) |
Public Service Company of New Mexico | Deferred income taxes | ||
Regulatory Liabilities | ||
Non-Current | (407,978) | (445,390) |
Public Service Company of New Mexico | PVNGS ARO | ||
Regulatory Liabilities | ||
Non-Current | (18,397) | (24,889) |
Public Service Company of New Mexico | Renewable energy tax benefits | ||
Regulatory Liabilities | ||
Non-Current | (20,226) | (21,383) |
Public Service Company of New Mexico | Nuclear spent fuel reimbursements | ||
Regulatory Liabilities | ||
Non-Current | 0 | (5,518) |
Public Service Company of New Mexico | Accelerated depreciation SNCRs | ||
Regulatory Liabilities | ||
Non-Current | (3,690) | 0 |
Public Service Company of New Mexico | Pension and OPEB(1) | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | Other | ||
Regulatory Liabilities | ||
Non-Current | (83) | (768) |
Public Service Company of New Mexico | FPPAC | ||
Regulatory Assets | ||
Current | 4,104 | 363 |
Public Service Company of New Mexico | Energy efficiency costs | ||
Regulatory Assets | ||
Current | 430 | 1,776 |
Public Service Company of New Mexico | CTC, including carrying charges | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | Coal mine reclamation costs | ||
Regulatory Assets | ||
Non-Current | 19,915 | 16,462 |
Public Service Company of New Mexico | Deferred income taxes | ||
Regulatory Assets | ||
Non-Current | 63,369 | 59,220 |
Public Service Company of New Mexico | Loss on reacquired debt | ||
Regulatory Assets | ||
Non-Current | 21,085 | 22,744 |
Public Service Company of New Mexico | Pension and OPEB(1) | ||
Regulatory Assets | ||
Non-Current | 227,400 | 222,774 |
Public Service Company of New Mexico | Shutdown of SJGS Units 2 and 3 | ||
Regulatory Assets | ||
Non-Current | 119,785 | 125,539 |
Public Service Company of New Mexico | Hurricane recovery costs(2) | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | AMS surcharge | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | AMS retirement and other costs | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | Other | ||
Regulatory Assets | ||
Non-Current | 9,349 | 12,500 |
Texas-New Mexico Power Company | ||
Regulatory Assets | ||
Current | 0 | 794 |
Non-Current | 138,027 | 141,433 |
Total regulatory assets | 138,027 | 142,227 |
Regulatory Liabilities | ||
Current | (3,471) | (1,525) |
Non-Current | (177,458) | (179,137) |
Total regulatory liabilities | (180,929) | (180,662) |
Texas-New Mexico Power Company | Renewable energy rider | ||
Regulatory Liabilities | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | Other | ||
Regulatory Liabilities | ||
Current | (3,471) | (1,525) |
Texas-New Mexico Power Company | Cost of removal | ||
Regulatory Liabilities | ||
Non-Current | (29,637) | (26,541) |
Texas-New Mexico Power Company | Deferred income taxes | ||
Regulatory Liabilities | ||
Non-Current | (143,745) | (148,455) |
Texas-New Mexico Power Company | PVNGS ARO | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Renewable energy tax benefits | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Nuclear spent fuel reimbursements | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Accelerated depreciation SNCRs | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Pension and OPEB(1) | ||
Regulatory Liabilities | ||
Non-Current | (3,940) | (3,442) |
Texas-New Mexico Power Company | Other | ||
Regulatory Liabilities | ||
Non-Current | (136) | (699) |
Texas-New Mexico Power Company | FPPAC | ||
Regulatory Assets | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | Energy efficiency costs | ||
Regulatory Assets | ||
Current | 0 | 794 |
Texas-New Mexico Power Company | CTC, including carrying charges | ||
Regulatory Assets | ||
Non-Current | 17,744 | 26,998 |
Texas-New Mexico Power Company | Coal mine reclamation costs | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Deferred income taxes | ||
Regulatory Assets | ||
Non-Current | 9,309 | 9,621 |
Texas-New Mexico Power Company | Loss on reacquired debt | ||
Regulatory Assets | ||
Non-Current | 31,510 | 32,808 |
Texas-New Mexico Power Company | Pension and OPEB(1) | ||
Regulatory Assets | ||
Non-Current | 26,972 | 26,153 |
Texas-New Mexico Power Company | Shutdown of SJGS Units 2 and 3 | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Hurricane recovery costs(2) | ||
Regulatory Assets | ||
Non-Current | 1,551 | 6,640 |
Texas-New Mexico Power Company | AMS surcharge | ||
Regulatory Assets | ||
Non-Current | 31,435 | 27,903 |
Texas-New Mexico Power Company | AMS retirement and other costs | ||
Regulatory Assets | ||
Non-Current | 16,489 | 8,948 |
Texas-New Mexico Power Company | Other | ||
Regulatory Assets | ||
Non-Current | 3,017 | $ 2,362 |
Accounting Standards Update 2017-07 | Public Service Company of New Mexico | ||
Regulatory Assets and Liabilities [Line Items] | ||
Non-service cost deferred as regulatory assets | 400 | |
Accounting Standards Update 2017-07 | Texas-New Mexico Power Company | ||
Regulatory Liabilities | ||
Non-service cost deferred as regulatory liability | $ 100 |
Construction Program and Join_3
Construction Program and Jointly-Owned Electric Generating Plants - Construction Program and Jointly-Owned Electric Generating Plants (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)generating_unitMW | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 16, 2015MW | Jul. 31, 2015MW | |
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | $ 501,213 | $ 500,461 | $ 600,076 | ||
Plant in Service | 7,548,581 | 7,238,285 | |||
Accumulated depreciation | $ (2,604,177) | (2,592,692) | |||
Operating lease, option term extensions | 2 years | ||||
Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | $ 255,627 | 309,142 | 445,464 | ||
Plant in Service | 5,623,520 | 5,501,070 | |||
Accumulated depreciation | (2,006,266) | (2,029,534) | |||
Texas-New Mexico Power Company | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | 223,448 | 145,495 | $ 122,518 | ||
Plant in Service | 1,686,119 | 1,504,778 | |||
Accumulated depreciation | (487,734) | $ (460,858) | |||
Joint Projects | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | 255,600 | ||||
Joint Projects | Texas-New Mexico Power Company | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | 223,400 | ||||
Joint Projects | PNMR | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Construction expenditures | 501,200 | ||||
San Juan Generating Station Unit 4 | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Pre-tax impairment of investments | 121,800 | ||||
San Juan Generating Station Unit 4 | Texas-New Mexico Power Company | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Pre-tax impairment of investments | $ 86,800 | ||||
SJGS (Coal) | Unit 4 | Other Unrelated Entities 2 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership percentage | 12.80% | ||||
SJGS (Coal) | Unit 4 | Other Unrelated Entities 3 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership percentage | 8.475% | ||||
SJGS (Coal) | Unit 4 | Other Unrelated Entities 4 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership percentage | 7.20% | ||||
SJGS (Coal) | Unit 4 | Other Unrelated Entities 5 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership percentage | 7.028% | ||||
SJGS (Coal) | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Plant in Service | $ 814,738 | ||||
Accumulated depreciation | (443,517) | ||||
Construction Work in Progress | $ 820 | ||||
Composite Interest | 66.34% | ||||
SJGS (Coal) | Public Service Company of New Mexico | Unit 4 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Composite Interest | 77.297% | ||||
Palo Verde Nuclear Generating Station | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Plant in Service | $ 831,663 | ||||
Accumulated depreciation | (365,708) | ||||
Construction Work in Progress | $ 39,393 | ||||
Composite Interest | 10.20% | ||||
Number of units (in generating units) | generating_unit | 3 | ||||
Period of time for the original full power operating licenses | 40 years | ||||
Operating lease, option term extensions | 20 years | ||||
Four Corners | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Number of units (in generating units) | generating_unit | 2 | ||||
Four Corners Units 4 and 5 (Coal) | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Plant in Service | $ 276,960 | ||||
Accumulated depreciation | (98,085) | ||||
Construction Work in Progress | $ 7,455 | ||||
Composite Interest | 13.00% | ||||
Luna (Gas) | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Plant in Service | $ 74,813 | ||||
Accumulated depreciation | (28,609) | ||||
Construction Work in Progress | $ 131 | ||||
Composite Interest | 33.33% | ||||
SJGS Units 1 and 2 | Other Unrelated Entities 1 | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Composite Interest | 50.00% | ||||
SJGS Units 1 and 2 | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Composite Interest | 50.00% | ||||
Clean Air Act, SNCR Hearing Examiner Recommended Denial | San Juan Generating Station Unit 4 | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Additional ownership to be obtained (in megawatts) | MW | 132 | 132 | |||
Clean Air Act, SNCR | San Juan Generating Station Unit 4 | Public Service Company of New Mexico | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Additional ownership to be obtained (in megawatts) | MW | 65 | 65 | 132 | ||
Pre-tax impairment of investments | $ 35,000 |
Construction Program and Join_4
Construction Program and Jointly-Owned Electric Generating Plants - Summary of Budgeted Construction Expenditures (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)MW | |
Summary of Budgeted Construction Expenditures [Line Items] | |
2,019 | $ 605.3 |
2,020 | 625.9 |
2,021 | 519.1 |
2,022 | 487.5 |
2,023 | 470.9 |
Total | $ 2,708.7 |
Solar | |
Summary of Budgeted Construction Expenditures [Line Items] | |
Public utilities, number of megawatts | MW | 50 |
Public Service Company of New Mexico | |
Summary of Budgeted Construction Expenditures [Line Items] | |
2,019 | $ 333.4 |
2,020 | 355.6 |
2,021 | 253.5 |
2,022 | 222.7 |
2,023 | 231.8 |
Total | 1,397 |
Anticipated expansion of transmission system | 130 |
Public Service Company of New Mexico | Solar | |
Summary of Budgeted Construction Expenditures [Line Items] | |
2,019 | 61.2 |
Texas-New Mexico Power Company | |
Summary of Budgeted Construction Expenditures [Line Items] | |
2,019 | 245.4 |
2,020 | 245 |
2,021 | 245.3 |
2,022 | 244.9 |
2,023 | 218.9 |
Total | 1,199.5 |
Corporate and Other | |
Summary of Budgeted Construction Expenditures [Line Items] | |
2,019 | 26.5 |
2,020 | 25.3 |
2,021 | 20.3 |
2,022 | 19.9 |
2,023 | 20.2 |
Total | $ 112.2 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligations [Line Items] | |||
ARO liabilities related to nuclear decommissioning | 81.00% | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $ 146,679 | $ 127,519 | $ 111,895 |
Liabilities incurred(1) | 0 | 1,854 | 0 |
Liabilities settled | (192) | (968) | (14) |
Accretion expense | 11,482 | 10,680 | 9,170 |
Revisions to estimated cash flows | 705 | 7,594 | 6,468 |
Ending balance | 158,674 | 146,679 | 127,519 |
Public Service Company of New Mexico | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 145,707 | 126,601 | 111,049 |
Liabilities incurred(1) | 0 | 1,853 | 0 |
Liabilities settled | 0 | (944) | (14) |
Accretion expense | 11,402 | 10,603 | 9,098 |
Revisions to estimated cash flows | 705 | 7,594 | 6,468 |
Ending balance | 157,814 | 145,707 | 126,601 |
Texas-New Mexico Power Company | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 793 | 754 | 695 |
Liabilities incurred(1) | 0 | 0 | 0 |
Liabilities settled | 0 | (24) | 0 |
Accretion expense | 67 | 63 | 59 |
Revisions to estimated cash flows | 0 | 0 | 0 |
Ending balance | $ 860 | $ 793 | $ 754 |
Commitments and Contingencies -
Commitments and Contingencies - PVNGS Decommissioning Funding (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | |||
Funding for decommissioning costs in qualified and non-qualified trust funds | $ 1.3 | $ 2 | $ 4.2 |
Estimated market value of trusts for decommissioning costs | $ 287.1 | $ 293.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Nuclear Spent Fuel and Waste Disposal (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station - Nuclear spent fuel and waste disposal - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 57.7 | |
Other deferred credits | ||
Loss Contingencies [Line Items] | ||
Liability for interim storage costs | $ 12.4 | $ 12.3 |
Commitments and Contingencies_3
Commitments and Contingencies - The Clean Air Act (Details) | Dec. 16, 2015USD ($)MWhMW | Jul. 17, 2015 | Dec. 20, 2013USD ($)$ / kwMW | Aug. 31, 2011generating_unit | Dec. 31, 2018USD ($)lb / MMBTUgenerating_unitjoint_ownerMW | Dec. 31, 2017USD ($)MW | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2016USD ($) | Jan. 26, 2016state | Jul. 31, 2015MW | Aug. 06, 2012compliance_alternative | Jul. 31, 2005T | Dec. 31, 1999state |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Plant in service and held for future use | $ 7,548,581,000 | $ 7,238,285,000 | ||||||||||||
Accumulated depreciation and amortization | 2,604,177,000 | 2,592,692,000 | ||||||||||||
Regulatory disallowances and restructuring costs | 65,598,000 | 27,036,000 | $ 15,011,000 | |||||||||||
Regulatory assets | $ 598,930,000 | 600,672,000 | ||||||||||||
San Juan Generating Station | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of other entities (in joint owner) | joint_owner | 5 | |||||||||||||
Four Corners | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Approved lease extension term | 25 years | |||||||||||||
Public Service Company of New Mexico | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Plant in service and held for future use | $ 5,623,520,000 | 5,501,070,000 | ||||||||||||
Accumulated depreciation and amortization | 2,006,266,000 | 2,029,534,000 | ||||||||||||
Regulatory disallowances and restructuring costs | 66,339,000 | 27,036,000 | $ 15,011,000 | |||||||||||
Regulatory assets | $ 460,903,000 | $ 459,239,000 | ||||||||||||
Power to be sold to third party (in megawatts) | MW | 36 | 36 | ||||||||||||
Public Service Company of New Mexico | San Juan Generating Station | Surface | Loss on long-term purchase commitment | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Regulatory disallowances and restructuring costs | $ 16,500,000 | |||||||||||||
Estimate of possible loss | $ 103,200,000 | |||||||||||||
Public Service Company of New Mexico | San Juan Generating Station Units 2 and 3 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Recovery percentage of estimated undepreciated value | 50.00% | |||||||||||||
Plant in service and held for future use | $ 439,400,000 | |||||||||||||
Accumulated depreciation and amortization | 188,300,000 | |||||||||||||
Net book value | 251,100,000 | |||||||||||||
Regulatory assets | 125,500,000 | |||||||||||||
Reversal of plant write-off | 3,000,000 | |||||||||||||
Reversal of recorded loss for other unrecoverable costs | 1,000,000 | |||||||||||||
Total reversed losses | 4,000,000 | |||||||||||||
Public Service Company of New Mexico | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Pre-tax impairment of investments | $ 121,800,000 | |||||||||||||
Public Service Company of New Mexico | Four Corners | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of units (in generating units) | generating_unit | 2 | |||||||||||||
Public Service Company of New Mexico | Four Corners Units 4 and 5 (Coal) | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Plant in service and held for future use | $ 276,960,000 | |||||||||||||
Accumulated depreciation and amortization | 98,085,000 | |||||||||||||
PNMR Development | Energy Equipment | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Cost of installing equipment | $ 7,600,000 | |||||||||||||
Environmental Protection Agency | Public Service Company of New Mexico | San Juan Generating Station | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of units (in generating units) | generating_unit | 4 | |||||||||||||
Clean Air Act related to Regional Haze | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of states to address regional haze | state | 50 | |||||||||||||
Potential to emit tons per year of visibility impairing pollution, maximum (in tons) | T | 250 | |||||||||||||
Clean Air Act, SNCR | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of other entities (in joint owner) | joint_owner | 8 | |||||||||||||
Clean Air Act, SNCR | San Juan Generating Station Unit 4 | CALIFORNIA | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of other entities (in joint owner) | joint_owner | 3 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Estimated costs to remain unrecovered | $ 20,000,000 | |||||||||||||
Regulatory disallowances and restructuring costs | $ 21,600,000 | |||||||||||||
Net expense | $ 3,700,000 | |||||||||||||
Revision of net book value | 900,000 | |||||||||||||
Reclamation expense | 4,500,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Restructuring costs | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Net expense | $ 1,700,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | San Juan Generating Station | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Overall reduction of ownership (in megawatts) | MW | 418 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | San Juan Generating Station Units 2 and 3 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Requested time period to recover retired units NBV | 20 years | 20 years | ||||||||||||
Newly identified replacement solar generation (in megawatts) | MW | 40 | |||||||||||||
Current ownership (in megawatts) | MW | 418 | |||||||||||||
Recovery percentage of estimated undepreciated value | 50.00% | 50.00% | ||||||||||||
Pre tax losses aggregated | $ 165,700,000 | |||||||||||||
Regulatory disallowances and restructuring costs | $ 127,600,000 | |||||||||||||
Accumulated plant write-off, disallowance | $ 128,600,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Palo Verde Nuclear Generating Station Unit 3 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of megawatts | MW | 134 | |||||||||||||
Estimated undepreciated value | $ 154,900,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 65 | 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 | |||||||||||||
Percentage of ownership held by exiting owners | 38.80% | |||||||||||||
Ownership percentage | 38.50% | |||||||||||||
Potential acquisition of ownership (in megawatts) | MW | 65 | |||||||||||||
Estimated increase in cost of acquired interest due to plant in service and accumulated depreciation | $ 261,800,000 | |||||||||||||
Pre-tax impairment of investments | 35,000,000 | |||||||||||||
Undepreciated investment in ownership to be obtained | 11,900,000 | |||||||||||||
Forecasted undepreciated investment | 23,100,000 | |||||||||||||
Remaining undepreciated investment | $ 373,600,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | San Juan Generating Station Unit 3 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Percentage of ownership held by exiting owners | 50.00% | |||||||||||||
Ownership percentage | 50.00% | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Maximum | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Annual cost of renewable energy credits, maximum | $ 7,000,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Installation costs including construction management, gross receipts taxes, AFUDC, and other PNM costs | San Juan Generating Station Units 1 and 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Portion of costs for SNCRs and BDT equipment | $ 77,700,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Installation costs including construction management, gross receipts taxes, AFUDC, and other PNM costs | Maximum | San Juan Generating Station Units 1 and 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Estimated installation capital costs | $ 82,000,000 | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Scenario, plan | San Juan Generating Station Units 1 and 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Ownership percentage | 66.30% | |||||||||||||
Clean Air Act, SNCR | Public Service Company of New Mexico | Scenario, plan | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Ownership percentage | 77.30% | |||||||||||||
Clean Air Act, SNCR | PNMR and PNM | Palo Verde Nuclear Generating Station Unit 3 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of megawatts | MW | 134 | 134 | ||||||||||||
Proposed value per kilowatt | $ / kw | 2,500 | |||||||||||||
Clean Air Act, SNCR | PNMR Development | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Reimbursement amount | $ 600,000 | |||||||||||||
Potential acquisition of ownership (in megawatts) | MW | 65 | |||||||||||||
Clean Air Act, SNCR Hearing Examiner Recommended Denial | Public Service Company of New Mexico | San Juan Generating Station Unit 4 | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 132 | 132 | ||||||||||||
Estimated undepreciated value | $ 20,700,000 | |||||||||||||
Clean Air Act Related to Post Combustion Controls | Public Service Company of New Mexico | Four Corners | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of compliance alternatives | compliance_alternative | 2 | |||||||||||||
Government standard emissions limit (in pounds per MMBTU) | lb / 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 | $ 88,700,000 | |||||||||||||
Clean Air Act Related to Post Combustion Controls | Public Service Company of New Mexico | Four Corners Units 4 and 5 (Coal) | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Ownership percentage | 13.00% | |||||||||||||
Clean Power Plan | ||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||
Number of states that filed a petition against the Clean Power Plan | state | 29 |
Commitments and Contingencies_4
Commitments and Contingencies - National Ambient Air Quality Standards (Details) - Public Service Company of New Mexico | Feb. 25, 2016 | Mar. 02, 2015lb / MMBTUT | May 29, 2018parts_per_billion | Oct. 01, 2015parts_per_billion | Sep. 30, 2015parts_per_billion | May 14, 2015lb / MMBTU |
Maximum | San Juan Generating Station And Four Corners | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Government standard emissions limit (in parts per billion) | parts_per_billion | 75 | 70 | 75 | |||
National Ambient Air Quality Standards, 2015 EPA Legal Settlement | ||||||
Public Utilities, General Disclosures [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 | Minimum | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Emissions tons of SO2 per year (more than) | T | 2,600 | |||||
SO2 emissions rate (in pounds per MMBTU) | lb / MMBTU | 0.45 | |||||
National Ambient Air Quality Standards | San Juan Generating Station | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Revised SO2 emissions agreed upon (in pounds per MMBTU) | lb / MMBTU | 0.10 | |||||
National Ambient Air Quality Standards, Proposed 2016 SO2 Rule | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Period of time from state designation to provide implementation plans | 36 months |
Commitments and Contingencies_5
Commitments and Contingencies - WEG v. OSM NEPA Lawsuit (Details) - Public Service Company of New Mexico - WEG v OSM Lawsuit | Feb. 28, 2013stateminelawsuit |
Loss Contingencies [Line Items] | |
Number of mines affected | mine | 7 |
Number of states | state | 4 |
Number of claims filed for relief (in lawsuits) | 15 |
San Juan Generating Station | |
Loss Contingencies [Line Items] | |
Number of claims filed for relief (in lawsuits) | 2 |
Commitments and Contingencies_6
Commitments and Contingencies - Coal Supply (Details) | Oct. 05, 2018T | Jun. 29, 2018USD ($) | Feb. 01, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2018USD ($) | May 22, 2018USD ($) | Feb. 01, 2018 | Jun. 30, 2017 | Feb. 01, 2017 | Jul. 19, 2016USD ($) | Jul. 07, 2016payment | Mar. 31, 2016USD ($) |
Other Commitments [Line Items] | ||||||||||||||||
Expected number of additional monitoring wells | 38 | |||||||||||||||
Other current assets | $ 53,725,000 | $ 47,358,000 | ||||||||||||||
Regulatory disallowances and restructuring costs | 65,598,000 | 27,036,000 | $ 15,011,000 | |||||||||||||
Funds contributed to mine reclamation trust | 2,300,000 | |||||||||||||||
Public Service Company of New Mexico | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Other current assets | 42,433,000 | 39,904,000 | ||||||||||||||
Regulatory disallowances and restructuring costs | 66,339,000 | 27,036,000 | 15,011,000 | |||||||||||||
Public Service Company of New Mexico | Increase in coal mine decommissioning liability | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Net expense | 4,500,000 | |||||||||||||||
Public Service Company of New Mexico | Increase in coal mine decommissioning liability | Loss on long-term purchase commitment | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Estimated underpaid surface mining royalties under proposed rate change | $ 2,500,000 | |||||||||||||||
Public Service Company of New Mexico | Loss on long-term purchase commitment | San Juan Generating Station | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Annual funding post-term reclamation trust | 10,000,000 | 5,800,000 | $ 7,000,000 | |||||||||||||
Public Service Company of New Mexico | Mine Reclamation Trust | San Juan Generating Station | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Reclamation trust funding, next fiscal year | 8,900,000 | |||||||||||||||
Reclamation trust funding, year 2 | 10,200,000 | |||||||||||||||
Reclamation trust funding, year 3 | 10,900,000 | |||||||||||||||
Public Service Company of New Mexico | Mine Reclamation Trust | Four Corners | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Reclamation trust funding, next fiscal year | 2,300,000 | |||||||||||||||
Number of annual installments (in payments) | payment | 13 | |||||||||||||||
Public Service Company of New Mexico | Surface | Loss on long-term purchase commitment | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Capped amount that can be collected from retail customers for final reclamation | 100,000,000 | |||||||||||||||
Liability for interim storage costs | 70,100,000 | 41,400,000 | ||||||||||||||
Public Service Company of New Mexico | Surface | Increase in coal mine decommissioning liability | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Net expense | 29,800,000 | |||||||||||||||
Public Service Company of New Mexico | Underground and Surface | Increase in coal mine decommissioning liability | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Net expense | 39,200,000 | |||||||||||||||
Public Service Company of New Mexico | Underground | Loss on long-term purchase commitment | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Liability for interim storage costs | 23,200,000 | 14,700,000 | ||||||||||||||
Public Service Company of New Mexico | Underground | Increase in coal mine decommissioning liability | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Net expense | 9,400,000 | |||||||||||||||
Public Service Company of New Mexico | San Juan Generating Station | Surface | Loss on long-term purchase commitment | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Regulatory disallowances and restructuring costs | $ 16,500,000 | |||||||||||||||
Estimate of possible loss | 103,200,000 | |||||||||||||||
Public Service Company of New Mexico | San Juan Generating Station | Underground | Loss on long-term purchase commitment | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Estimate of possible loss | 39,700,000 | |||||||||||||||
Public Service Company of New Mexico | San Juan Generating Station | Coal Supply | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Other current assets | 26,300,000 | $ 26,300,000 | ||||||||||||||
Reduction in coal obligation | T | 111,668 | |||||||||||||||
Estimated increase in coal cost | 6.90% | 51.00% | ||||||||||||||
NM Capital | BTMU Term Loan Agreement | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Long-term debt | $ 125,000,000 | |||||||||||||||
Repurchased face amount | $ 43,000,000 | |||||||||||||||
NM Capital | San Juan Generating Station | Coal Supply | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Funding provided | $ 125,000,000 | $ 125,000,000 | ||||||||||||||
Variable interest rate | 12.25% | 9.25% | ||||||||||||||
Coal mine reclamation bonds to be posted with NMMMD | $ 118,700,000 | |||||||||||||||
Cash used to support bank letter or credit arrangement | $ 30,300,000 | $ 30,300,000 | ||||||||||||||
NM Capital | San Juan Coal Company, Westmoreland | Coal Supply | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Prepayment penalty | $ 0 | |||||||||||||||
Repurchased face amount | $ 50,100,000 | |||||||||||||||
Four Corners Coal Supply Arbitration | Public Service Company of New Mexico | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Payments for legal settlements | $ 4,900,000 | |||||||||||||||
Four Corners Coal Supply Arbitration, Period March 1, 2018 through June 30, 2018 | Public Service Company of New Mexico | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Payments for legal settlements | $ 1,400,000 |
Commitments and Contingencies_7
Commitments and Contingencies - Mining Royalty Rate (Details) - Continuous Highwall Mining - San Juan Generating Station - USD ($) $ in Millions | Aug. 31, 2013 | Aug. 31, 2006 | Dec. 31, 2003 |
Public Utilities, General Disclosures [Line Items] | |||
Proposed retroactive surface mining royalty rate | 12.50% | ||
Surface mining royalty rate applied between 2000 and 2003 | 8.00% | ||
Estimated underpaid surface mining royalties under proposed rate change | $ 5 | ||
PNM's share of estimated underpaid surface mining royalties under proposed rate change | 46.30% |
Commitments and Contingencies_8
Commitments and Contingencies - Liability and Insurance Matters (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station | 12 Months Ended |
Dec. 31, 2018USD ($)generating_unit | |
Public Utilities, General Disclosures [Line Items] | |
Number of units (in generating units) | generating_unit | 3 |
Nuclear Plant | |
Public Utilities, General Disclosures [Line Items] | |
Ownership percentage in nuclear reactor | 10.20% |
Number of units (in generating units) | generating_unit | 3 |
Maximum potential assessment per incident | $ 41,600,000 |
Annual payment limitation related to incident | 6,200,000 |
Aggregate amount of all risk insurance | 2,750,000,000 |
Sublimit amount for non-nuclear property damage losses | 2,250,000,000 |
Retrospective premium assessment | 5,400,000 |
Nuclear Plant | Commercial Providers | |
Public Utilities, General Disclosures [Line Items] | |
Liability insurance coverage | 450,000,000 |
Nuclear Plant | Industry Wide Retrospective Assessment Program | |
Public Utilities, General Disclosures [Line Items] | |
Liability insurance coverage | 13,600,000,000 |
Nuclear Plant | Maximum | |
Public Utilities, General Disclosures [Line Items] | |
Liability insurance coverage | $ 14,100,000,000 |
Commitments and Contingencies_9
Commitments and Contingencies - Water Supply (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station | 1 Months Ended |
Apr. 30, 2010city | |
Public Utilities, General Disclosures [Line Items] | |
Providing water to a number of cities | 5 |
Providing water, term | 40 years |
Commitments and Contingencie_10
Commitments and Contingencies - Right-of-Way, Complaints, and Navajo National Allottee Matters (Details) $ in Millions | Jan. 04, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($) | Nov. 20, 2017Allotment_Parcel | Dec. 01, 2015Allotment_Parcel | Jul. 13, 2015a | Jan. 22, 2015Allotment_Parcel | Apr. 02, 2014landownerAllotment_Parcel | Feb. 27, 2014lawsuit | Sep. 30, 2012landowner |
First Choice | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Additional tax due plus penalties and interest | $ | $ 5 | ||||||||||
Navajo Nation Allottee Matters | Public Service Company of New Mexico | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of landowners claiming to be Navajo allottees (in landowners) | landowner | 43 | 43 | |||||||||
Number of allotments where landowners are revoking rights of way renewal consents (in allotment parcels) | 6 | ||||||||||
Allotments with right-of-way renewals not previously contested (in allotment parcels) | 10 | ||||||||||
Acres of land at issue (in acres) | a | 15.49 | ||||||||||
Number of allotment parcels that cannot be condemned | 2 | 2 | |||||||||
Number of allotment parcels at issue | 5 | ||||||||||
Pending Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of claims (in lawsuits) | lawsuit | 2 | ||||||||||
Written notification requirement to terminate agreement, minimum period | 30 days | ||||||||||
Settled Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of claims (in lawsuits) | lawsuit | 1 | ||||||||||
State and Local Jurisdiction | First Choice | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Sales and use tax audit | $ | $ 1.4 | $ 0.9 |
Regulatory and Rate Matters - N
Regulatory and Rate Matters - New Mexico General Rate Cases (Details) $ in Thousands | Jan. 31, 2018USD ($) | Jan. 16, 2018USD ($) | Jan. 10, 2018USD ($) | Dec. 31, 2017USD ($) | May 23, 2017USD ($) | Dec. 07, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 28, 2016USD ($)MW | Aug. 04, 2016USD ($)MW | Jan. 15, 2016USD ($)leaseMW | Aug. 27, 2015USD ($) | Jan. 15, 2015 | Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2017USD ($) | May 12, 2017signatory | Jul. 01, 2016USD ($) | May 31, 2016MW |
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Deferred federal income tax | $ 7,716 | $ 119,182 | $ 60,892 | ||||||||||||||||||
Pre-tax regulatory disallowance for capital costs | 36,800 | $ 58,000 | |||||||||||||||||||
Regulatory disallowances and restructuring costs | 65,598 | 27,036 | 15,011 | ||||||||||||||||||
Increase (decrease) in non-fuel revenue requirement | $ 10,300 | ||||||||||||||||||||
Percent of non-fuel revenue requirement change implemented | 50.00% | ||||||||||||||||||||
NMPRC | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Requested rate increase (decrease) | $ 99,200 | ||||||||||||||||||||
Requested return on equity | 10.125% | ||||||||||||||||||||
Number of additional signatories | signatory | 13 | ||||||||||||||||||||
Proposed term for providing benefits to customers related to reduction in state corporate tax | 21 years | ||||||||||||||||||||
Pre-tax regulatory disallowance | $ 27,900 | 27,900 | |||||||||||||||||||
Public Service Company of New Mexico | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Deferred federal income tax | 5,661 | 73,308 | 49,123 | ||||||||||||||||||
Regulatory disallowances and restructuring costs | 66,339 | $ 27,036 | $ 15,011 | ||||||||||||||||||
Public Service Company of New Mexico | NMPRC | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Requested rate increase (decrease) | $ (4,400) | $ (9,100) | $ 62,300 | ||||||||||||||||||
Requested return on equity | 9.575% | ||||||||||||||||||||
Initial rate increase (decrease) amount | $ 32,300 | ||||||||||||||||||||
Proposed term for providing benefits to customers related to reduction in state corporate tax | 3 years | ||||||||||||||||||||
Requested rate increase (decrease), duplicative amount | $ 4,700 | ||||||||||||||||||||
Public Service Company of New Mexico | Clean Air Act, Balanced Draft Technology | San Juan Generating Station Units 1 and 4 | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Net book value | 50,000 | 50,000 | |||||||||||||||||||
Public Service Company of New Mexico | Clean Air Act, Balanced Draft Technology | San Juan Generating Station Units 1 and 4 | Installation costs including construction management, gross receipts taxes, AFUDC, and other PNM costs | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Portion of costs for SNCRs and BDT equipment | $ 52,300 | ||||||||||||||||||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 2 Leases | |||||||||||||||||||||
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 | ||||||||||||||||||||
Number of leases under which lease term was extended | lease | 1 | ||||||||||||||||||||
Lease term extension period | 8 years | ||||||||||||||||||||
Number of megawatts | MW | 114.6 | 114.6 | |||||||||||||||||||
Net book value | 73,300 | 73,300 | |||||||||||||||||||
Net book value of capital improvements | 38,000 | 38,000 | |||||||||||||||||||
Public Service Company of New Mexico | Palo Verde Nuclear Generating Station, Unit 1 Leases, extended | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Estimated annual property tax expense | $ 1,500 | ||||||||||||||||||||
Estimated annual rent expense | $ 18,100 | ||||||||||||||||||||
Number of leases under which lease term was extended | lease | 4 | ||||||||||||||||||||
Lease term extension period | 8 years | ||||||||||||||||||||
Public Service Company of New Mexico | 2014 Electric Rate Case | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Future test year period | 12 months | ||||||||||||||||||||
Redefined future test year as period that begins a period of time following the filing of a rate case application (up to) | 13 months | ||||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Requested rate increase (decrease) | $ 123,500 | ||||||||||||||||||||
Requested return on equity | 10.50% | ||||||||||||||||||||
Requested rate increase (decrease) in fuel-related costs | $ 42,900 | ||||||||||||||||||||
Change in requested rate increase (decrease) in non-fuel related revenues | 200 | ||||||||||||||||||||
Requested rate increase (decrease) in non-fuel related revenue | 121,500 | 121,500 | |||||||||||||||||||
Proposed increase (decrease) in non-fuel revenue | $ 41,300 | ||||||||||||||||||||
Proposed return on equity | 9.575% | ||||||||||||||||||||
Approved rate increase (decrease) | $ 61,200 | ||||||||||||||||||||
Estimated period of time for New Mexico Supreme Court Appeal decision | 15 months | 7 months | |||||||||||||||||||
Minimum amount of loss of capital cost recovery | 15 months | ||||||||||||||||||||
Estimate of possible loss | 146,100 | $ 146,100 | |||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | San Juan Generating Station | Refined Coal | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Proposed credit to retail customers | 100.00% | ||||||||||||||||||||
Deferred federal income tax | $ 2,100 | ||||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | Clean Air Act, Balanced Draft Technology | San Juan Generating Station Units 1 and 4 | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Amount of equipment costs included in rate base | 40,000 | ||||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | Palo Verde Nuclear Generating Station, Unit 2 Leases | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Proposed disallowance of recovery of purchase price of assets | 163,300 | ||||||||||||||||||||
Approved lease acquisition costs | 83,700 | ||||||||||||||||||||
Disallowed leasehold improvements | 43,800 | ||||||||||||||||||||
Pre-tax regulatory disallowance for capital costs | $ 3,100 | $ 6,800 | 4,000 | ||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | Palo Verde Nuclear Generating Station, Unit 1 Leases, extended | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Approved recovery of assumed operating and maintenance expense savings annually related to BDT | $ 300 | ||||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | Alvarado square | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Proposed disallowance of recovery of assets and deferred charges from retail customers | $ 4,500 | ||||||||||||||||||||
Pre-tax regulatory disallowance of costs recorded as regulatory assets and deferred charges | $ 4,500 | ||||||||||||||||||||
Public Service Company of New Mexico | 2015 Electric Rate Case | Non-Fuel Energy | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Requested rate increase (decrease) | $ 121,700 | ||||||||||||||||||||
Four Corners | |||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||
Pre-tax regulatory disallowance | $ 90,100 | $ 148,100 | |||||||||||||||||||
Regulatory disallowances and restructuring costs | $ 47,600 |
Regulatory and Rate Matters - P
Regulatory and Rate Matters - Proceeding Regarding Definition of Future Test Year (Details) | Dec. 07, 2016 |
2014 Electric Rate Case | Public Service Company of New Mexico | |
Public Utilities, General Disclosures [Line Items] | |
Redefined future test year as period that begins a period of time following the filing of a rate case application (up to) | 13 months |
Regulatory and Rate Matters - R
Regulatory and Rate Matters - Renewable Portfolio Standard (Details) - Public Service Company of New Mexico | 12 Months Ended | |||
Dec. 31, 2018MW | Dec. 31, 2017MW | Jun. 01, 2017GWhMW | Dec. 31, 2016MW | |
Renewable Portfolio Standard | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Solar photovoltaic capacity (in mw) | 157 | 50 | ||
Current output of solar photovoltaic capacity (in mw) | 15 | |||
Solar distributed generation (in mw) | 100.6 | |||
Renewable Portfolio Standard | Minimum | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Reasonable cost threshold | 3.00% | |||
Renewable Portfolio Standard | Minimum | Wind | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of diversification | 30.00% | |||
Renewable Portfolio Standard | Minimum | Solar | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of diversification | 20.00% | |||
Renewable Portfolio Standard | Minimum | Distributed Generation | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of diversification | 3.00% | |||
Renewable Portfolio Standard | Minimum | Other | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of diversification | 5.00% | |||
Renewable Portfolio Standard | Required Percentage by 2011 | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of renewable energy in portfolio to electric sales | 10.00% | |||
Renewable Portfolio Standard | Required Percentage by 2015 | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of renewable energy in portfolio to electric sales | 15.00% | |||
Renewable Portfolio Standard | Required Percentage by 2020 | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Required percentage of renewable energy in portfolio to electric sales | 20.00% | |||
Renewable Portfolio Standard 2014 | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Wind energy capacity (in mw) | 204 | 102 | ||
NMPRC | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Additional megawatt hours in first year (in mw) | GWh | 80 | |||
Requested solar production (in mw) | 50 | |||
New Mexico Wind | NMPRC | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Additional megawatt hours in second year (in mw) | GWh | 105 | |||
Lightning Dock Geothermal | NMPRC | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Additional megawatt hours in first year (in mw) | GWh | 55 | |||
Additional megawatt hours in second year (in mw) | GWh | 77 |
Regulatory and Rate Matters -_2
Regulatory and Rate Matters - Renewable Energy Rider (Details) - Public Service Company of New Mexico - Renewable energy rider - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | |||
Revenue from renewable energy rider | $ 41.4 | $ 45.2 | $ 42 |
Maximum | |||
Public Utilities, General Disclosures [Line Items] | |||
Annual revenue to be collected | $ 49.6 | ||
NMPRC-approved return on equity | 0.50% | 10.50% |
Regulatory and Rate Matters - E
Regulatory and Rate Matters - Energy Efficiency and Load Management (Details) $ in Millions | Apr. 13, 2018USD ($) | Nov. 08, 2017USD ($) | Jul. 26, 2017USD ($)GWh | Jun. 21, 2017 | Apr. 14, 2017USD ($)GWh | Jan. 11, 2017USD ($) | Apr. 15, 2016USD ($)GWhprogram | Dec. 31, 2018USD ($) | Nov. 07, 2017 | Dec. 31, 2013 |
Public Service Company of New Mexico | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Frequency of energy efficiency plan filings | 3 years | |||||||||
Percentage of modification to funding levels | 0.1 | |||||||||
Public Service Company of New Mexico | 2017 Energy Efficiency and Load Management Program | Disincentives/Incentives Added | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Program costs related to energy efficiency | $ 26 | $ 28 | ||||||||
Number of energy efficiency and load management programs (in programs) | program | 10 | |||||||||
Application of incentive based on target savings | $ 2.4 | |||||||||
Energy efficiency targeted savings (in gwh) | GWh | 75 | |||||||||
Minimum profit incentive | $ 1.8 | |||||||||
Public Service Company of New Mexico | Energy Efficiency and Load Management Program, Proposed 2018 Portfolio | Disincentives/Incentives Added | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Program costs related to energy efficiency | $ 23.6 | $ 25.1 | ||||||||
Application of incentive based on target savings | $ 1.9 | |||||||||
Energy efficiency targeted savings (in gwh) | GWh | 53 | |||||||||
Projected earned incentive | $ 2.3 | $ 1.9 | $ 2.1 | $ 2.7 | ||||||
Targeted energy savings | GWh | 69 | 70 | ||||||||
Public Service Company of New Mexico | Energy Efficiency and Load Management Program, Proposed 2019 Portfolio | Disincentives/Incentives Added | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Program costs related to energy efficiency | $ 24.9 | $ 28.2 | ||||||||
Application of incentive based on target savings | $ 1.7 | $ 2.1 | $ 1.8 | |||||||
Public Service Company of New Mexico | Maximum | Renewable Portfolio Standard | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Reasonable cost threshold | 3.00% | 3.00% | ||||||||
Sliding scale profit incentive | 9.00% | |||||||||
Public Service Company of New Mexico | Minimum | Renewable Portfolio Standard | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Reasonable cost threshold | 3.00% | |||||||||
Sliding scale profit incentive | 7.10% | |||||||||
Measurement Input, Discount Rate | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Tax-adjusted WACC | 0.0959 | 0.0771 |
Regulatory and Rate Matters - F
Regulatory and Rate Matters - FFPAC Continuation Application (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Public Service Company of New Mexico | |
Public Utilities, General Disclosures [Line Items] | |
Frequency of FPPAC filings | 4 years |
Regulatory and Rate Matters - I
Regulatory and Rate Matters - Integrated Resource Plan (Details) | May 04, 2016 | Jul. 01, 2014 | Dec. 31, 2018 |
NMPRC | |||
Public Utilities, General Disclosures [Line Items] | |||
Period of action plan | 4 years | ||
Public Service Company of New Mexico | |||
Public Utilities, General Disclosures [Line Items] | |||
Required filing of Integrated Resource Plan | 3 years | ||
Planning period covered, IRP | 20 years | ||
Period of action plan | 4 years | ||
Public Service Company of New Mexico | NMPRC | |||
Public Utilities, General Disclosures [Line Items] | |||
Period of action plan | 4 years | ||
Period of time to show good cause why a docket should remain open | 30 days |
Regulatory and Rate Matters - C
Regulatory and Rate Matters - Cost Recovery Related to Joining the EIM (Details) - Energy Imbalance Market - Public Service Company of New Mexico $ in Millions | Aug. 22, 2018USD ($) |
Public Utilities, General Disclosures [Line Items] | |
Initial capital investments to be recovered | $ 20.9 |
Other expenses to be recovered | $ 7.4 |
Regulatory and Rate Matters - S
Regulatory and Rate Matters - San Juan Generating Station Unit 1 Outage (Details) - Public Service Company of New Mexico $ in Millions | Mar. 17, 2018USD ($) |
Public Utilities, General Disclosures [Line Items] | |
Estimated insurance deductible | $ 2 |
Cost of property repairs and maintenance | $ 1 |
Ownership interest | 50.00% |
Regulatory and Rate Matters - A
Regulatory and Rate Matters - Advanced Metering Infrastructure Application and Facebook Data Center Project (Details) $ in Millions | Aug. 24, 2018Facilitypower_purchase_agreementMW | Dec. 31, 2017 | Dec. 31, 2018MW | Sep. 05, 2017MW | Aug. 17, 2016service_rate | Jul. 08, 2016MW | Feb. 26, 2016USD ($) |
Public Utilities, General Disclosures [Line Items] | |||||||
Number of requested service rates | service_rate | 2 | ||||||
Facebook Data Center | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
PPA term | 25 years | 25 years | |||||
Number of additional PPAs | power_purchase_agreement | 2 | ||||||
Public Service Company of New Mexico | Advanced metering infrastructure | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Application to seek recovery of costs of project | $ | $ 87.2 | ||||||
Adjustment to estimated costs to be recovered | $ | 95.1 | ||||||
Application to seek recovery of undepreciated investment | $ | $ 33 | ||||||
PNMR Development | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Solar distributed generation (in mw) | 50 | 30 | |||||
Solar capacity (in mw) | 10 | ||||||
Casa Mesa Wind, LLC | Facebook Data Center | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Solar distributed generation (in mw) | 50 | ||||||
Avangrid Renewables, LLC | Facebook Data Center | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Solar distributed generation (in mw) | 166 | ||||||
Route 66 Solar Energy Center, LLC | Facebook Data Center | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Solar distributed generation (in mw) | 100 | 50 | |||||
Number of solar facilities | Facility | 2 |
Regulatory and Rate Matters - H
Regulatory and Rate Matters - Hazard Sharing Agreement (Details) - Public Service Company of New Mexico - Tri-State GWh in Millions, $ in Millions | Jun. 01, 2017 | Jun. 01, 2016MW | Dec. 31, 2018USD ($)GWh | Dec. 31, 2017USD ($)GWh | Dec. 31, 2016USD ($)GWh |
Public Utilities, General Disclosures [Line Items] | |||||
Hazard sharing agreement | 5 years | 1 year | |||
Agreement to sell the other party capacity and energy (in mw) | MW | 100 | ||||
Number of hours sold (in GWh) | GWh | 725.7 | 827.1 | 482.3 | ||
Hours sold (in dollars) | $ | $ 25.8 | $ 23.6 | $ 12.8 | ||
Number of hours purchased (in GWh) | GWh | 822.7 | 849 | 484.6 | ||
Hours purchased (in dollars) | $ | $ 28.7 | $ 24.2 | $ 12.9 |
Regulatory and Rate Matters -_3
Regulatory and Rate Matters - Formula Transmission Rate Case (Details) | Dec. 31, 2018 |
Public Service Company of New Mexico | Formula Transmission Rate Case | |
Public Utilities, General Disclosures [Line Items] | |
Return on equity | 10.00% |
Regulatory and Rate Matters -_4
Regulatory and Rate Matters - Firm-Requirements Wholesale Customers (Details) - Public Service Company of New Mexico - Firm Requirements Wholesale Power Rate Case, Navopache $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)MW | Dec. 31, 2016USD ($) | |
Public Utilities, General Disclosures [Line Items] | ||
Serving megawatts of load under a lower tariff (in mw) | MW | 10 | |
Revenue for power sold under specific contract | $ | $ 4.5 | $ 20 |
Regulatory and Rate Matters - T
Regulatory and Rate Matters - TNMP Narrative (Details) $ in Thousands | Jan. 25, 2019USD ($) | Nov. 02, 2018USD ($) | May 30, 2018USD ($) | Mar. 13, 2017USD ($) | Jul. 31, 2011USD ($) | Dec. 31, 2018USD ($)advanced_meter | Dec. 31, 2017USD ($) |
Public Utilities, General Disclosures [Line Items] | |||||||
Unrecovered investment revenue | $ 21,800 | ||||||
Net increase in regulatory liabilities | $ 7,175 | $ 548,952 | |||||
Texas-New Mexico Power Company | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Regulatory liabilities | 180,929 | 180,662 | |||||
Net increase in regulatory liabilities | (4,069) | 146,451 | |||||
Refund of regulatory liability to customers | 37,800 | ||||||
Net regulatory assets | $ 1,600 | ||||||
CTC Funding amount interest minimum | 15.00% | ||||||
Adjustment for collection of amortization | $ 1,100 | ||||||
Reduction to revenue | $ 5,400 | ||||||
Texas-New Mexico Power Company | 2018 TNMP Rate Case | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Requested rate increase (decrease) | $ 10,000 | $ 25,900 | |||||
Requested return on equity | 9.65% | 10.50% | |||||
Requested cost of debt, percentage | 6.44% | 7.20% | |||||
Requested debt capital structure, percentage | 55.00% | 50.00% | |||||
Requested equity capital structure, percentage | 45.00% | 50.00% | |||||
New rate rider recovery, amount | $ 7,700 | ||||||
Regulatory liabilities | 146,500 | ||||||
Net increase in regulatory liabilities | $ 14,400 | ||||||
Refund of federal income tax rates period | 5 years | ||||||
Investments excluded from rate, amount | $ 10,600 | ||||||
Texas-New Mexico Power Company | Advanced Meter System Deployment and Surcharge Request | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Revenue from AMS rider | $ 21,800 | ||||||
Approved deployment costs | $ 113,400 | ||||||
Period of time to collect deployment costs through surcharge period | 12 years | ||||||
Number of advanced meters installed | advanced_meter | 242,000 | ||||||
Texas-New Mexico Power Company | Transmission Cost of Service Rates | Subsequent Event | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Requested rate increase (decrease) | $ 111,800 | ||||||
Requested increase in annual transmission service revenue | $ 14,300 |
Regulatory and Rate Matters -_5
Regulatory and Rate Matters - TNMP Schedules (Details) - Texas-New Mexico Power Company - USD ($) $ in Millions | Mar. 27, 2018 | Sep. 13, 2017 | Mar. 14, 2017 | Sep. 08, 2016 | Mar. 23, 2016 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Energy efficiency costs | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Aggregate Collection Amount | $ 6 | $ 6 | |||||||
Performance Bonus | $ 0.8 | $ 0.7 | |||||||
Energy efficiency costs | Scenario, forecast | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Aggregate Collection Amount | $ 5.6 | $ 6 | |||||||
Performance Bonus | $ 0.8 | $ 1.1 | |||||||
Transmission Cost of Service Rates | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Approved Increase in Rate Base | $ 32 | $ 27.5 | $ 30.2 | $ 9.5 | $ 25.8 | ||||
Annual Increase in Revenue | $ 0.6 | $ 4.7 | $ 4.8 | $ 1.8 | $ 4.3 |
Income Taxes - Federal Income T
Income Taxes - Federal Income Tax Reform (Details) - USD ($) $ in Thousands | May 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Line Items] | |||
Net increase in regulatory liabilities | $ 7,175 | $ 548,952 | |
Net decrease in deferred income tax liabilities (deferred income tax assets) | 1,910 | 491,491 | |
Net increase in affiliate receivables (affiliate payables) | 0 | ||
Net deferred income tax expense | 5,265 | 57,461 | |
Reclassification of stranded income taxes to retained earnings | 0 | ||
Retained Earnings | |||
Income Taxes [Line Items] | |||
Reclassification of stranded income taxes to retained earnings | 17,600 | 17,586 | |
PNM | |||
Income Taxes [Line Items] | |||
Net increase in regulatory liabilities | 11,244 | 402,501 | |
Net decrease in deferred income tax liabilities (deferred income tax assets) | (2,175) | 372,895 | |
Net increase in affiliate receivables (affiliate payables) | 12,300 | ||
Net deferred income tax expense | 1,119 | 29,606 | |
Reclassification of stranded income taxes to retained earnings | 0 | ||
PNM | Retained Earnings | |||
Income Taxes [Line Items] | |||
Reclassification of stranded income taxes to retained earnings | 17,794 | ||
TNMP | |||
Income Taxes [Line Items] | |||
Net increase in regulatory liabilities | (4,069) | 146,451 | |
Net decrease in deferred income tax liabilities (deferred income tax assets) | (9,784) | 138,586 | |
Net increase in affiliate receivables (affiliate payables) | 4,042 | ||
Net deferred income tax expense | 1,673 | 7,865 | |
Corporate and Other | |||
Income Taxes [Line Items] | |||
Net increase in regulatory liabilities | 0 | 0 | |
Net decrease in deferred income tax liabilities (deferred income tax assets) | 13,869 | (19,990) | |
Net increase in affiliate receivables (affiliate payables) | (16,342) | ||
Net deferred income tax expense | $ 2,473 | $ 19,990 | |
NMPRC | |||
Income Taxes [Line Items] | |||
Proposed term for providing benefits to customers related to reduction in state corporate tax | 21 years | ||
NMPRC | PNM | |||
Income Taxes [Line Items] | |||
Proposed term for providing benefits to customers related to reduction in state corporate tax | 3 years |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Current federal income tax | $ 0 | $ 0 | $ 0 |
Current state income tax | (244) | (188) | (527) |
Deferred federal income tax | 7,716 | 119,182 | 60,892 |
Deferred state income tax | 648 | 11,632 | 3,886 |
Amortization of accumulated investment tax credits | (345) | (286) | (973) |
Total income taxes (benefit) | 7,775 | 130,340 | 63,278 |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Current federal income tax | (6,644) | 118 | (10,290) |
Current state income tax | (2,661) | (1,112) | (1,907) |
Deferred federal income tax | 5,661 | 73,308 | 49,123 |
Deferred state income tax | (2,080) | 9,527 | 4,969 |
Amortization of accumulated investment tax credits | (247) | (286) | (973) |
Total income taxes (benefit) | (5,971) | 81,555 | 40,922 |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Current federal income tax | 13,347 | 2,472 | 9,445 |
Current state income tax | 1,753 | 1,765 | 1,729 |
Deferred federal income tax | (540) | 27,304 | 12,690 |
Deferred state income tax | 2,320 | (29) | (28) |
Total income taxes (benefit) | $ 16,880 | $ 31,512 | $ 23,836 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 22,902 | $ 79,016 | $ 68,311 |
Amortization of accumulated investment tax credits | (345) | (286) | (973) |
Amortization of excess deferred income tax | (19,779) | 0 | 0 |
Flow-through of depreciation items | 712 | 1,147 | 1,227 |
Earnings attributable to non-controlling interest in Valencia | (3,173) | (5,256) | (5,082) |
State income tax, net of federal benefit | 1,358 | 5,398 | 4,537 |
Impairment of state net operating loss carryforwards | 0 | 819 | (311) |
Allowance for equity funds used during construction | (2,185) | (3,331) | (1,732) |
Impairment of charitable contribution carryforward | 0 | 909 | 0 |
Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization | 1,367 | (2,225) | (1,877) |
Federal income tax rate change | 2,914 | 57,461 | 0 |
Tax expense (benefit) related to stock compensation awards | 4,647 | (2,324) | 0 |
Other | (643) | (988) | (822) |
Total income taxes (benefit) | $ 7,775 | $ 130,340 | $ 63,278 |
Effective tax rate | 7.13% | 57.73% | 32.42% |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 13,514 | $ 59,139 | $ 46,501 |
Amortization of accumulated investment tax credits | (247) | (286) | (973) |
Amortization of excess deferred income tax | (19,779) | 0 | 0 |
Flow-through of depreciation items | 674 | 1,103 | 1,185 |
Earnings attributable to non-controlling interest in Valencia | (3,173) | (5,256) | (5,082) |
State income tax, net of federal benefit | 1,323 | 4,926 | 3,921 |
Impairment of state net operating loss carryforwards | 0 | 627 | (213) |
Allowance for equity funds used during construction | (1,716) | (3,032) | (1,457) |
Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization | 1,367 | (2,225) | (1,877) |
Federal income tax rate change | (683) | 29,606 | 0 |
Tax expense (benefit) related to stock compensation awards | 3,967 | (1,708) | 0 |
Other | (1,218) | (1,339) | (1,083) |
Total income taxes (benefit) | $ (5,971) | $ 81,555 | $ 40,922 |
Effective tax rate | (9.28%) | 48.27% | 30.80% |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 14,379 | $ 23,475 | $ 22,928 |
State income tax, net of federal benefit | 1,454 | 1,198 | 1,132 |
Federal income tax rate change | 0 | 7,865 | 0 |
Tax expense (benefit) related to stock compensation awards | 735 | (616) | 0 |
Other | 312 | (410) | (224) |
Total income taxes (benefit) | $ 16,880 | $ 31,512 | $ 23,836 |
Effective tax rate | 24.65% | 46.98% | 36.40% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss | $ 82,386 | $ 98,301 |
Regulatory liabilities related to income taxes | 158,416 | 189,501 |
Federal tax credit carryforwards | 76,481 | 71,849 |
Shutdown of SJGS Units 2 and 3 | 1,638 | 2,204 |
Other | 97,515 | 45,656 |
Total deferred tax assets | 416,436 | 407,511 |
Deferred tax liabilities: | ||
Depreciation and plant related | (767,482) | (690,909) |
Investment tax credit | (57,853) | (55,731) |
Regulatory assets related to income taxes | (62,889) | (61,956) |
CTC | (3,613) | (5,670) |
Pension | (35,407) | (56,070) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (30,425) | (31,887) |
Other | (59,486) | (52,498) |
Total deferred tax liabilities | (1,017,155) | (954,721) |
Net accumulated deferred income tax liabilities | (600,719) | (547,210) |
Public Service Company of New Mexico | ||
Deferred tax assets: | ||
Net operating loss | 50,762 | 67,719 |
Regulatory liabilities related to income taxes | 125,395 | 152,059 |
Federal tax credit carryforwards | 62,230 | 60,085 |
Shutdown of SJGS Units 2 and 3 | 1,638 | 2,204 |
Other | 36,916 | 23,801 |
Total deferred tax assets | 276,941 | 305,868 |
Deferred tax liabilities: | ||
Depreciation and plant related | (606,673) | (544,270) |
Investment tax credit | (55,484) | (55,731) |
Regulatory assets related to income taxes | (53,561) | (52,392) |
Pension | (31,046) | (51,774) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (30,425) | (31,887) |
Other | (2,519) | (18,826) |
Total deferred tax liabilities | (779,708) | (754,880) |
Net accumulated deferred income tax liabilities | (502,767) | (449,012) |
Texas-New Mexico Power Company | ||
Deferred tax assets: | ||
Regulatory liabilities related to income taxes | 33,021 | 43,103 |
Other | 4,517 | 3,762 |
Total deferred tax assets | 37,538 | 46,865 |
Deferred tax liabilities: | ||
Depreciation and plant related | (136,117) | (135,647) |
Regulatory assets related to income taxes | (9,328) | (9,564) |
Loss on reacquired debt | (6,617) | (6,890) |
CTC | (3,613) | (5,670) |
Pension | (4,361) | (4,296) |
AMS | (10,030) | (7,707) |
Other | (3,710) | (3,506) |
Total deferred tax liabilities | (173,776) | (173,280) |
Net accumulated deferred income tax liabilities | $ (136,238) | $ (126,415) |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Income Tax Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | $ 53,509 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (27,833) | ||
Amortization of excess deferred income tax | (19,779) | ||
Tax effect of mark-to-market adjustments | 380 | ||
Tax effect of excess pension liability | 308 | ||
Adjustment for uncertain income tax positions | 765 | ||
Reclassification of unrecognized tax benefits | (765) | ||
Amortization of state net operating loss recovered in prior years | 1,367 | ||
Federal income tax rate change, including impact on regulatory liabilities | 2,330 | ||
Refundable alternative minimum tax credit carryforward reclassified to receivable | (1,585) | ||
Other | (678) | ||
Deferred income taxes | 8,019 | $ 130,528 | $ 63,805 |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 53,755 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (27,833) | ||
Amortization of excess deferred income tax | (19,779) | ||
Tax effect of mark-to-market adjustments | 579 | ||
Tax effect of excess pension liability | 308 | ||
Adjustment for uncertain income tax positions | 725 | ||
Reclassification of unrecognized tax benefits | (725) | ||
Amortization of state net operating loss recovered in prior years | 1,367 | ||
Federal income tax rate change, including impact on regulatory liabilities | (6,250) | ||
Other | 1,187 | ||
Deferred income taxes | 3,334 | 82,549 | 53,119 |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 9,823 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (350) | ||
Federal income tax rate change, including impact on regulatory liabilities | (7,761) | ||
Other | 68 | ||
Deferred income taxes | $ 1,780 | $ 27,275 | $ 12,662 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PNMR | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 9,429 | $ 6,752 | $ 6,455 |
Additions based on tax positions | 543 | 262 | 242 |
Additions (reductions) for tax positions of prior years | 222 | 2,415 | 55 |
Settlement payments | 0 | 0 | 0 |
Ending balance | 10,194 | 9,429 | 6,752 |
Unrecognized tax benefits that would impact effective tax rate | 9,600 | ||
Public Service Company of New Mexico | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 6,563 | 3,949 | 3,652 |
Additions based on tax positions | 543 | 262 | 242 |
Additions (reductions) for tax positions of prior years | 182 | 2,352 | 55 |
Settlement payments | 0 | 0 | 0 |
Ending balance | 7,288 | 6,563 | 3,949 |
Unrecognized tax benefits that would impact effective tax rate | 6,700 | ||
Texas-New Mexico Power Company | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 63 | 0 | |
Additions based on tax positions | 0 | 0 | 0 |
Additions (reductions) for tax positions of prior years | 40 | 63 | 0 |
Settlement payments | 0 | 0 | 0 |
Ending balance | 103 | $ 63 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | $ 100 |
Income Taxes - Interest Income
Income Taxes - Interest Income (Expense) Related to Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Interest income related to income taxes | $ 0 | $ 0 | $ 4,398 |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Interest income related to income taxes | 0 | 0 | 3,625 |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Interest income related to income taxes | 0 | $ 0 | 345 |
Interest income and interest expense applicable to federal income tax matters | |||
Income Taxes [Line Items] | |||
Net refunds received | 6,500 | ||
Increase (decrease) of net interest receivable | 2,100 | ||
Interest income | 5,100 | ||
Interest expense | 700 | ||
Professional fees | 900 | ||
Net pre-tax impacts | 3,500 | ||
Interest income and interest expense applicable to federal income tax matters | Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Net pre-tax impacts | 2,600 | ||
Interest income and interest expense applicable to federal income tax matters | Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Net pre-tax impacts | 300 | ||
Interest income and interest expense applicable to federal income tax matters | Corporate and Other | |||
Income Taxes [Line Items] | |||
Net pre-tax impacts | $ 600 | ||
2015 Electric Rate Case | Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Approval to recover impairment of net operating loss carryforward | $ (2,100) |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||||
New Mexico corporate tax rate being phased in | 7.60% | ||||
New Mexico Corporate tax rate, effective by 2018 | 5.90% | ||||
Regulatory liability | $ (10,109) | $ (7,132) | |||
Income tax expense | (1,259) | 712 | |||
Income Taxes, Impairment of Carryforwards | |||||
State tax credit carryforwards | $ 0 | 0 | 0 | ||
State net operating loss carryforwards | 0 | 819 | (311) | ||
Charitable contribution carryforwards | 0 | 909 | 0 | ||
Compensation expense | 410 | ||||
Income Taxes, Reserve Balances | |||||
State tax credit carryforwards | 0 | 2,487 | |||
State net operating loss carryforwards | 0 | 1,131 | |||
Charitable contribution carryforwards | 0 | 952 | |||
Compensation expense | 410 | ||||
Internal Revenue Service (IRS) | |||||
Operating Loss Carryforwards [Line Items] | |||||
Federal net operating loss carryforwards | 474,600 | ||||
Federal tax credit carryforwards that expire beginning in 2023 | 76,500 | ||||
Public Service Company of New Mexico | |||||
Operating Loss Carryforwards [Line Items] | |||||
Regulatory liability | (10,109) | (7,132) | |||
Income tax expense | (1,179) | 804 | |||
Income Taxes, Impairment of Carryforwards | |||||
State tax credit carryforwards | 0 | 0 | 0 | ||
State net operating loss carryforwards | 0 | 627 | (213) | ||
Charitable contribution carryforwards | 0 | 0 | 0 | ||
Compensation expense | 298 | ||||
Income Taxes, Reserve Balances | |||||
State tax credit carryforwards | 0 | 0 | |||
State net operating loss carryforwards | 0 | 839 | |||
Charitable contribution carryforwards | 0 | 0 | |||
Compensation expense | 298 | ||||
Texas-New Mexico Power Company | |||||
Operating Loss Carryforwards [Line Items] | |||||
Regulatory liability | 0 | 0 | |||
Income tax expense | 0 | 0 | |||
Income Taxes, Impairment of Carryforwards | |||||
State tax credit carryforwards | 0 | 0 | 0 | ||
State net operating loss carryforwards | 0 | 0 | 0 | ||
Charitable contribution carryforwards | 0 | 0 | $ 0 | ||
Compensation expense | 111 | ||||
Income Taxes, Reserve Balances | |||||
State tax credit carryforwards | 0 | 0 | |||
State net operating loss carryforwards | 0 | 0 | |||
Charitable contribution carryforwards | 0 | $ 0 | |||
Compensation expense | 111 | ||||
2015 Electric Rate Case | Public Service Company of New Mexico | |||||
Income Taxes, Reserve Balances | |||||
Approval to recover impairment of net operating loss carryforward | 2,100 | ||||
Recovery period of regulatory asset | 2 years | ||||
2016 Electric Rate Case | Public Service Company of New Mexico | |||||
Income Taxes, Reserve Balances | |||||
Approval to recover impairment of net operating loss carryforward | $ 3,300 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2016 | Apr. 01, 2015 |
Schedule of Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 278,297 | $ 278,297 | $ 278,297 | |||
Public Service Company of New Mexico | ||||||
Schedule of Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 51,632 | $ 51,600 | 51,632 | $ 51,600 | $ 51,600 | |
Percentage of fair value in excess of carrying amount | 19.00% | 25.00% | ||||
Percentage increase in expected return on equity | 0.50% | 0.50% | ||||
Reduced percentage of fair value in excess of carrying value | 18.00% | |||||
Texas-New Mexico Power Company | ||||||
Schedule of Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 226,665 | $ 226,700 | $ 226,665 | $ 226,700 | ||
Percentage of fair value in excess of carrying amount | 32.00% | 32.00% | ||||
Percentage increase in expected return on equity | 0.50% | |||||
Reduced percentage of fair value in excess of carrying value | 21.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Ownership percentage | 50.00% | ||
Services billings: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | $ 95,637 | $ 97,914 | $ 94,606 |
Services billings: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 33,493 | 31,095 | 28,907 |
Services billings: | PNM to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 367 | 382 | 427 |
Services billings: | TNMP to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 140 | 141 | 66 |
Services billings: | TNMP to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 154 | 172 |
Services billings: | PNMR to NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 183 | 0 | 0 |
Renewable energy purchases: | PNM from NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 2,924 | 0 | 0 |
Interconnection and facility study billings: | PNM to NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 2,108 | 0 | 0 |
Interconnection and facility study billings: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 68,820 | 0 | 0 |
Interest billings: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 2,585 | 21 | 11 |
Interest billings: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 136 | 133 | 132 |
Interest billings: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 289 | 220 | 150 |
Income tax sharing payments: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 23,391 | 0 |
Income tax sharing payments: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 0 | 0 |
Income tax sharing payments: | TNMP to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 3,424 | 20,686 | 0 |
Income tax sharing payments: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | $ 134 | $ 0 | $ 0 |
Quarterly Operating Results (_3
Quarterly Operating Results (Unaudited) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018USD ($)$ / sharesMW | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)$ / sharesMW | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 16, 2015MW | Jul. 31, 2015MW | |
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | $ 1,436,613 | $ 1,445,003 | $ 1,362,951 | ||||||||||
Operating income | $ (17,404) | $ 127,990 | $ 79,329 | $ 46,132 | $ 22,936 | $ 142,484 | $ 85,105 | $ 55,960 | 236,047 | 315,039 | 284,725 | ||
Net earnings (loss) | (51,539) | 91,573 | 42,449 | 18,799 | (50,585) | 78,327 | 41,231 | 26,446 | $ 101,282 | $ 95,419 | $ 131,896 | ||
Net Earnings Attributable to PNMR | $ (55,077) | $ 87,521 | $ 38,208 | $ 14,990 | $ (54,282) | $ 73,739 | $ 37,555 | $ 22,862 | |||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Basic (in dollars per share) | $ / shares | $ (0.70) | $ 1.10 | $ 0.48 | $ 0.19 | $ (0.68) | $ 0.92 | $ 0.47 | $ 0.29 | $ 1.07 | $ 1 | $ 1.47 | ||
Diluted (in dollars per share) | $ / shares | $ (0.69) | $ 1.09 | $ 0.48 | $ 0.19 | $ (0.68) | $ 0.92 | $ 0.47 | $ 0.29 | $ 1.07 | $ 1 | $ 1.46 | ||
Federal income tax rate change | $ 2,914 | $ 57,461 | $ 0 | ||||||||||
Public Service Company of New Mexico | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | 1,091,965 | 1,104,230 | 1,035,913 | ||||||||||
Operating income | $ (38,654) | $ 102,516 | $ 52,879 | $ 28,292 | $ 1,778 | $ 113,252 | $ 59,164 | $ 38,331 | 145,033 | 221,079 | 194,830 | ||
Net earnings (loss) | (53,400) | 81,428 | 30,781 | 11,514 | (28,456) | 65,283 | 30,476 | 20,110 | 70,323 | 87,413 | 91,938 | ||
Net Earnings Attributable to PNMR | (56,806) | 77,508 | 26,672 | 7,837 | (32,021) | 60,827 | 26,932 | 16,658 | 55,211 | 72,396 | 77,419 | ||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Federal income tax rate change | (683) | 29,606 | 0 | ||||||||||
Texas-New Mexico Power Company | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | 344,648 | 340,773 | 327,038 | ||||||||||
Operating income | 23,312 | 27,824 | 26,829 | 18,532 | 19,879 | 29,474 | 26,286 | 17,965 | 96,497 | 93,604 | 91,641 | ||
Net Earnings Attributable to PNMR | 10,711 | 16,100 | 15,367 | 9,413 | 1,024 | 14,727 | 12,204 | 7,604 | 51,591 | 35,559 | 41,672 | ||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Federal income tax rate change | 0 | 7,865 | 0 | ||||||||||
NMPRC | |||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Pre-tax regulatory disallowance | 27,900 | 27,900 | |||||||||||
Electricity | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | 343,756 | 422,666 | 352,313 | 317,878 | 332,605 | 419,900 | 362,320 | 330,178 | 1,436,613 | $ 1,445,003 | $ 1,362,951 | ||
Electricity | Public Service Company of New Mexico | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | 259,848 | 331,374 | 264,511 | 236,232 | 249,321 | 327,254 | 276,097 | 251,558 | |||||
Electricity | Texas-New Mexico Power Company | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating Revenues | $ 83,908 | $ 91,292 | $ 87,802 | $ 81,646 | $ 83,284 | $ 92,646 | $ 86,223 | $ 78,620 | |||||
Clean Air Act, SNCR | San Juan Generating Station Unit 4 | Public Service Company of New Mexico | |||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Regulatory disallowance and restructuring costs | $ 63,300 | ||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 65 | 65 | 65 | 132 | |||||||||
Potential acquisition of ownership (in megawatts) | MW | 65 | 65 | |||||||||||
Clean Air Act, SNCR Hearing Examiner Recommended Denial | San Juan Generating Station Unit 4 | Public Service Company of New Mexico | |||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||
Additional ownership to be obtained (in megawatts) | MW | 132 | 132 | 132 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent Company - Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Operating Revenues | $ 1,436,613 | $ 1,445,003 | $ 1,362,951 | ||||||||
Operating Expenses | 1,200,566 | 1,129,964 | 1,078,226 | ||||||||
Operating income | $ (17,404) | $ 127,990 | $ 79,329 | $ 46,132 | $ 22,936 | $ 142,484 | $ 85,105 | $ 55,960 | 236,047 | 315,039 | 284,725 |
Other Income and Deductions: | |||||||||||
Other income | 17,586 | 19,515 | 17,796 | ||||||||
Net other income and deductions | 254 | 38,345 | 39,082 | ||||||||
Interest charges | 127,244 | 127,625 | 128,633 | ||||||||
Earnings before Income Taxes | 109,057 | 225,759 | 195,174 | ||||||||
Income Taxes | 7,775 | 130,340 | 63,278 | ||||||||
Net Earnings Attributable to Company | $ (55,077) | $ 87,521 | $ 38,208 | $ 14,990 | $ (54,282) | $ 73,739 | $ 37,555 | $ 22,862 | |||
PNM Resources | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | ||||||||
Operating Expenses | 7,475 | 2,902 | 2,871 | ||||||||
Operating income | (7,475) | (2,902) | (2,871) | ||||||||
Other Income and Deductions: | |||||||||||
Equity in earnings of subsidiaries | 109,995 | 111,877 | 122,252 | ||||||||
Other income | 2,048 | 1,181 | 1,711 | ||||||||
Net other income and deductions | 112,043 | 113,058 | 123,963 | ||||||||
Interest charges | 19,453 | 12,490 | 8,102 | ||||||||
Earnings before Income Taxes | 85,115 | 97,666 | 112,990 | ||||||||
Income Taxes | (527) | 17,792 | (3,859) | ||||||||
Net Earnings Attributable to Company | $ 85,642 | $ 79,874 | $ 116,849 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Parent Company - Statement of Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | |||
Net Cash Flows From Operating Activities | $ 428,226 | $ 523,462 | $ 408,283 |
Cash Flows From Investing Activities: | |||
Net cash flows from investing activities | (475,724) | (466,163) | (699,375) |
Cash Flows From Financing Activities: | |||
Short-term loan | 50,000 | 0 | 100,000 |
Repayment of short-term loan | 0 | 0 | (150,000) |
Revolving credit facility borrowings (repayments), net | (119,500) | 18,300 | 86,500 |
Long-term borrowings | 984,652 | 317,000 | 603,500 |
Repayment of long-term debt | (750,162) | (274,070) | (303,793) |
Proceeds from stock option exercise | 963 | 1,739 | 7,028 |
Dividends paid | (84,961) | (77,792) | (70,623) |
Other, net | (6,846) | (2,942) | (2,104) |
Net cash flows from financing activities | 45,646 | (58,847) | 242,392 |
Change in Cash and Cash Equivalents | (1,852) | (1,548) | (48,700) |
Cash and Cash Equivalents at Beginning of Period | 3,974 | 5,522 | 54,222 |
Cash and Cash Equivalents at End of Period | 2,122 | 3,974 | 5,522 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 119,308 | 120,955 | 115,043 |
Income taxes paid (refunded), net | 842 | 625 | (307) |
PNM Resources | |||
Cash Flows From Operating Activities: | |||
Net Cash Flows From Operating Activities | (2,566) | (7,814) | 5,702 |
Cash Flows From Investing Activities: | |||
Utility plant additions | 826 | (180) | 341 |
Investments in subsidiaries | (30,000) | (50,000) | (98,343) |
Cash dividends from subsidiaries | 129,379 | 105,084 | 35,959 |
Net cash flows from investing activities | 100,205 | 54,904 | (62,043) |
Cash Flows From Financing Activities: | |||
Short-term loan | 50,000 | 0 | 100,000 |
Repayment of short-term loan | 0 | 0 | (150,000) |
Revolving credit facility borrowings (repayments), net | (148,700) | 42,600 | 84,500 |
Long-term borrowings | 349,652 | 100,000 | |
Repayment of long-term debt | (250,000) | 0 | 0 |
Proceeds from stock option exercise | 963 | 1,739 | 7,028 |
Purchases to satisfy awards of common stock | (12,635) | (13,929) | (15,451) |
Dividends paid | (84,433) | (77,264) | (70,095) |
Other, net | (2,414) | (269) | (28) |
Net cash flows from financing activities | (97,567) | (47,123) | 55,954 |
Change in Cash and Cash Equivalents | 72 | (33) | (387) |
Cash and Cash Equivalents at Beginning of Period | 21 | 54 | |
Cash and Cash Equivalents at End of Period | 93 | 21 | 54 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 15,450 | 10,899 | 5,906 |
Income taxes paid (refunded), net | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | |||||
Cash and cash equivalents | $ 2,122 | $ 3,974 | $ 5,522 | $ 54,222 | |
Income taxes receivable | 7,965 | 6,879 | |||
Other, net | 53,725 | 47,358 | |||
Total current assets | 302,524 | 294,420 | |||
Property, plant and equipment, net of accumulated depreciation of $13,518 and $13,229 | 5,234,629 | 4,980,227 | |||
Other long-term assets | 297 | 503 | |||
Total assets | 6,865,551 | 6,646,103 | 6,471,080 | ||
Liabilities and Stockholders’ Equity | |||||
Short-term debt | 235,900 | 305,400 | |||
Current maturities of long-term debt | 0 | 256,895 | |||
Accrued interest and taxes | 65,156 | 62,357 | |||
Other current liabilities | 54,678 | 53,850 | |||
Total current liabilities | 512,453 | 835,644 | |||
Long-term debt | 2,670,111 | 2,180,750 | |||
Total liabilities | 5,101,428 | 4,873,126 | |||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,153,113 | 1,157,665 | |||
Accumulated other comprehensive income (loss), net of tax | (108,684) | (95,940) | |||
Retained earnings | 643,953 | 633,528 | |||
Total PNMR common stockholders’ equity | 1,688,382 | 1,695,253 | |||
Total liabilities and stockholders' equity | 6,865,551 | 6,646,103 | |||
PNM Resources | |||||
Assets | |||||
Cash and cash equivalents | 93 | 21 | $ 54 | $ 441 | |
Intercompany receivables | 82,539 | 96,227 | |||
Income taxes receivable | 7,856 | 1,818 | |||
Other, net | 5,635 | 1,937 | |||
Total current assets | 96,123 | 100,003 | |||
Property, plant and equipment, net of accumulated depreciation of $13,518 and $13,229 | 25,413 | 26,546 | |||
Investment in subsidiaries | 2,064,693 | 2,056,198 | |||
Other long-term assets | 60,265 | 66,090 | |||
Total long-term assets | 2,150,371 | 2,148,834 | |||
Total assets | 2,246,494 | 2,248,837 | |||
Liabilities and Stockholders’ Equity | |||||
Short-term debt | 170,000 | 265,600 | |||
Short-term debt-affiliate | 8,819 | 11,919 | |||
Current maturities of long-term debt | 0 | 249,979 | |||
Accrued interest and taxes | 4,885 | 1,661 | |||
Other current liabilities | 23,297 | 21,274 | |||
Total current liabilities | 207,001 | 550,433 | |||
Long-term debt | 348,310 | 0 | |||
Other long-term liabilities | 2,803 | 3,151 | |||
Total liabilities | 558,114 | 553,584 | |||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,153,112 | 1,157,665 | |||
Accumulated other comprehensive income (loss), net of tax | (108,685) | (95,940) | |||
Retained earnings | 643,953 | 633,528 | |||
Total PNMR common stockholders’ equity | 1,688,380 | 1,695,253 | |||
Total liabilities and stockholders' equity | $ 2,246,494 | $ 2,248,837 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 79,653,624 | 79,653,624 |
Common stock, shares outstanding | 79,653,624 | 79,653,624 |
PNM Resources | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accumulated depreciation | $ 13,518 | $ 13,229 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 79,653,624 | 79,653,624 |
Common stock, shares outstanding | 79,653,624 | 79,653,624 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 1,081 | $ 1,209 | $ 1,397 |
Charged to costs and expenses | 3,360 | 2,619 | 2,885 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs | 3,035 | 2,747 | 3,073 |
Balance at end of year | 1,406 | 1,081 | 1,209 |
Public Service Company of New Mexico | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1,081 | 1,209 | 1,397 |
Charged to costs and expenses | 3,338 | 2,615 | 2,871 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs | 3,013 | 2,743 | 3,059 |
Balance at end of year | 1,406 | 1,081 | 1,209 |
Texas-New Mexico Power Company | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 0 | 0 | 0 |
Charged to costs and expenses | 22 | 4 | 14 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs | 22 | 4 | 14 |
Balance at end of year | $ 0 | $ 0 | $ 0 |
Uncategorized Items - pnm-20181
Label | Element | Value |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 615,124,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 644,736,000 |
Retained Earnings [Member] | Public Service Company of New Mexico [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 265,557,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,163,661,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,157,665,000 |
Common Stock [Member] | Public Service Company of New Mexico [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,264,918,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,382,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,686,334,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,695,253,000 |
Parent [Member] | Public Service Company of New Mexico [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,422,174,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 68,920,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 66,195,000 |
Noncontrolling Interest [Member] | Public Service Company of New Mexico [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 66,195,000 |