Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity Registrant Name | PNM Resources, Inc. | |
Entity Incorporation, State or Country Code | NM | |
Entity Address, Address Line One | 414 Silver Ave. SW | |
Entity Address, City or Town | Albuquerque | |
Entity Address, State or Province | NM | |
Entity Address, Postal Zip Code | 87102-3289 | |
City Area Code | 505 | |
Local Phone Number | 241-2700 | |
Entity File Number | 001-32462 | |
Entity Tax Identification Number | 85-0468296 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | PNM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 85,834,874 | |
Entity Central Index Key | 0001108426 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
PNM | ||
Entity Information [Line Items] | ||
Entity Registrant Name | Public Service Company of New Mexico | |
Entity Address, Address Line One | 414 Silver Ave. SW | |
Entity Address, City or Town | Albuquerque | |
Entity Address, State or Province | NM | |
Entity Address, Postal Zip Code | 87102-3289 | |
City Area Code | 505 | |
Local Phone Number | 241-2700 | |
Entity File Number | 001-06986 | |
Entity Tax Identification Number | 85-0019030 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 39,117,799 | |
Entity Central Index Key | 0000081023 | |
Current Fiscal Year End Date | --12-31 | |
Texas-New Mexico Power Company | ||
Entity Information [Line Items] | ||
Entity Registrant Name | Texas-New Mexico Power Company | |
Entity Address, Address Line One | 577 N. Garden Ridge Blvd. | |
Entity Address, City or Town | Lewisville | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75067 | |
City Area Code | 972 | |
Local Phone Number | 420-4189 | |
Entity File Number | 002-97230 | |
Entity Tax Identification Number | 75-0204070 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,358 | |
Entity Central Index Key | 0000022767 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - PNMR - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Electric Operating Revenues: | ||||
Contracts with customers | $ 531,966 | $ 481,881 | $ 1,320,779 | $ 1,197,359 |
Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) |
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 |
Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
Operating Expenses: | ||||
Administrative and general | 58,125 | 56,520 | 165,328 | 168,458 |
Regulatory disallowances and restructuring costs | (567) | 436 | 832 | 436 |
Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 |
Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 |
Taxes other than income taxes | 22,651 | 22,678 | 71,207 | 65,440 |
Total operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 |
Operating income | 182,763 | 151,729 | 337,223 | 269,098 |
Other Income and Deductions: | ||||
Investment Income, Interest | 3,969 | 3,329 | 11,588 | 10,466 |
Gains (losses) on investment securities | (15,736) | 1,948 | (84,104) | 16,108 |
Other income | 5,364 | 5,686 | 14,845 | 14,592 |
Other (deductions) | (1,647) | (5,098) | (7,529) | (13,836) |
Net other income and deductions | (8,050) | 5,865 | (65,200) | 27,330 |
Interest Charges | 34,526 | 23,244 | 89,963 | 73,247 |
Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 |
Income Taxes (Benefits) | 13,450 | 16,668 | 16,982 | 26,533 |
Net Earnings | 126,737 | 117,682 | 165,078 | 196,648 |
(Earnings) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Preferred Stock Dividend Requirements | (132) | (132) | (396) | (396) |
Net Earnings Available for PNM Common Stock | $ 122,433 | $ 113,321 | $ 153,785 | $ 184,609 |
Net Earnings Attributable to PNMR per Common Share: | ||||
Basic (dollars per share) | $ 1.42 | $ 1.32 | $ 1.79 | $ 2.14 |
Diluted (dollars per share) | 1.42 | 1.32 | 1.78 | 2.14 |
Dividends Declared per Common Share (dollars per share) | $ 0.3475 | $ 0.3275 | $ 1.0425 | $ 0.9825 |
Energy | ||||
Electric Operating Revenues: | ||||
Total electric operating revenues | $ 729,888 | $ 554,551 | $ 1,673,736 | $ 1,345,798 |
Operating Expenses: | ||||
Energy costs | 334,339 | 199,380 | 698,349 | 467,452 |
Energy Production | ||||
Operating Expenses: | ||||
Energy costs | $ 34,469 | $ 32,374 | $ 110,534 | $ 106,709 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - PNMR - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Earnings | $ 126,737 | $ 117,682 | $ 165,078 | $ 196,648 |
Unrealized Gains on Available-for-Sale Debt Securities: | ||||
Net change in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(326), $329, $2,075, and $246 | 956 | (968) | (6,095) | (722) |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $129, $632, $870, and $2,062 | (380) | (1,856) | (2,556) | (6,058) |
Pension Liability Adjustment: | ||||
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(451), $(530), $(1,353), and $(1,590) | 1,325 | 1,557 | 3,975 | 4,671 |
Fair Value Adjustment for Cash Flow Hedges: | ||||
Change in fair market value, net of income tax (expense) of $(1,764), $0, $(2,640), and $(458) | 5,179 | 0 | 7,751 | 1,346 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $148, $0, $449, and $229 | (434) | 0 | (1,318) | (674) |
Total Other Comprehensive Income (Loss) | 6,646 | (1,267) | 1,757 | (1,437) |
Comprehensive Income | 133,383 | 116,415 | 166,835 | 195,211 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) |
Comprehensive Income Attributable to PNM | $ 129,079 | $ 112,054 | $ 155,542 | $ 183,172 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - PNMR (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | $ (326) | $ 329 | $ 2,075 | $ 246 |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 129 | 632 | 870 | 2,062 |
Pension liability adjustment, income tax expense (benefit) | (451) | (530) | (1,353) | (1,590) |
Change in fair market value, income tax (expense) benefit | (1,764) | 0 | (2,640) | (458) |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | $ 148 | $ 0 | $ 449 | $ 229 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - PNMR - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Earnings | $ 165,078 | $ 196,648 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 255,808 | 238,963 |
Deferred income tax expense | 15,036 | 25,293 |
(Gains) losses on investment securities | 84,104 | (16,108) |
Stock based compensation expense | 5,972 | 6,728 |
Regulatory disallowances and restructuring costs | 832 | 436 |
Allowance for equity funds used during construction | (9,232) | (8,867) |
Other, net | 1,323 | 4,594 |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (66,713) | (46,649) |
Materials, supplies, and fuel stock | (6,630) | (333) |
Other current assets | 3,687 | (20,005) |
Other assets | 6,676 | 17,551 |
Accounts payable | 11,845 | 5,934 |
Accrued interest and taxes | 17,875 | 7,713 |
Other current liabilities | (26,082) | 17,679 |
Other liabilities | (32,083) | (21,065) |
Net cash flows from operating activities | 427,496 | 408,512 |
Cash Flows From Investing Activities: | ||
Utility plant additions | (702,878) | (496,185) |
Proceeds from sales of investment securities | 323,251 | 396,870 |
Purchases of investment securities | (332,490) | (405,142) |
Distributions from NMRD | 0 | 572 |
Other, net | 692 | 108 |
Net cash flows used in investing activities | (711,425) | (503,777) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings (repayments), net | (2,500) | (18,100) |
Long-term borrowings | 558,000 | 1,370,000 |
Repayment of long-term debt | (179,500) | (1,165,000) |
Awards of common stock | (7,846) | (10,082) |
Dividends paid | (89,879) | (84,729) |
Valencia’s transactions with its owner | (12,455) | (14,238) |
Transmission interconnection and security deposit arrangements | 76,696 | 31,878 |
Refunds paid under transmission interconnection arrangements | (50,401) | (9,752) |
Debt issuance costs and other, net | (3,668) | (3,159) |
Net cash flows from financing activities | 288,447 | 96,818 |
Change in Cash, Restricted Cash, and Equivalents | 4,518 | 1,553 |
Cash, Restricted Cash, and Equivalents at Beginning of Period | 1,104 | 47,928 |
Cash, Restricted Cash, and Equivalents at End of Period | 5,622 | 49,481 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 79,246 | 69,965 |
Income taxes paid (refunded), net | 904 | 892 |
Supplemental schedule of noncash investing activities: | ||
Decrease in accrued plant additions | $ 56,948 | $ 63,281 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - PNMR - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 5,622 | $ 1,104 |
Accounts receivable, net of allowance for credit losses of $4,919 and $7,265 | 179,604 | 123,292 |
Unbilled revenues | 63,889 | 57,736 |
Other receivables | 22,089 | 18,784 |
Materials, supplies, and fuel stock | 64,835 | 65,061 |
Regulatory assets | 45,040 | 14,785 |
Prepaid assets | 18,407 | 37,325 |
Income taxes receivable | 3,835 | 4,878 |
Other current assets | 6,453 | 1,635 |
Total current assets | 409,774 | 324,600 |
Other Property and Investments: | ||
Investment securities | 376,662 | 463,126 |
Equity investment in NMRD | 90,674 | 89,158 |
Other investments | 160 | 265 |
Non-utility property, net | 25,805 | 25,439 |
Total other property and investments | 493,301 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 8,832,929 | 9,357,849 |
Less accumulated depreciation and amortization | 2,621,112 | 2,952,743 |
Net plant in service and plant held for future use | 6,211,817 | 6,405,106 |
Construction work in progress | 485,023 | 248,856 |
Nuclear fuel, net of accumulated amortization of $47,734 and $41,181 | 97,545 | 98,937 |
Net utility plant | 6,794,385 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 820,832 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease right-of-use assets, net of accumulated amortization | 62,440 | 79,511 |
Other deferred charges | 169,861 | 139,332 |
Total deferred charges and other assets | 1,331,430 | 1,011,398 |
Assets | 9,028,890 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 60,200 | 62,700 |
Current installments of long-term debt | 184,684 | 179,339 |
Accounts payable | 127,493 | 172,595 |
Customer deposits | 5,917 | 5,095 |
Accrued interest and taxes | 86,937 | 70,105 |
Regulatory liabilities | 17,186 | 8,316 |
Operating lease liabilities | 18,534 | 27,218 |
Dividends declared | 29,960 | 132 |
Transmission interconnection arrangement liabilities | 20,208 | 39,564 |
Other current liabilities | 115,350 | 99,149 |
Total current liabilities | 666,469 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,893,500 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 806,630 | 764,850 |
Regulatory liabilities | 772,355 | 841,393 |
Asset retirement obligations | 220,899 | 234,146 |
Accrued pension liability and postretirement benefit cost | 9,416 | 19,057 |
Operating lease liabilities | 41,701 | 55,993 |
Other deferred credits | 350,663 | 333,195 |
Total deferred credits and liabilities | 2,201,664 | 2,248,634 |
Total liabilities | 6,761,633 | 6,432,427 |
Commitments and Contingencies (Note 11) | ||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
PNM common stockholder’s equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,427,383 | 1,429,257 |
Accumulated other comprehensive income (loss), net of income taxes | (70,179) | (71,936) |
Retained earnings | 844,677 | 810,203 |
Total PNM common stockholder’s equity | 2,201,881 | 2,167,524 |
Non-controlling interest in Valencia | 53,847 | 55,405 |
Total equity | 2,255,728 | 2,222,929 |
Total liabilities and stockholders' equity | $ 9,028,890 | $ 8,666,885 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - PNMR (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible accounts | $ 4,919 | $ 7,265 |
Accumulated depreciation, nuclear fuel | $ 47,734 | $ 41,181 |
Cumulative preferred stock of subsidiary, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock of subsidiary, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Cumulative preferred stock of subsidiary, shares issued (in shares) | 115,293 | 115,293 |
Cumulative preferred stock of subsidiary, shares outstanding (in shares) | 115,293 | 115,293 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 85,834,874 | 85,834,874 |
Common stock, shares outstanding (in shares) | 85,834,874 | 85,834,874 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity - PNMR - USD ($) $ in Thousands | Total | Total PNMR Common Stockholders’ Equity | Common Stock | AOCI | Retained Earnings | Non- controlling Interest in Valencia |
Beginning balance at Dec. 31, 2020 | $ 2,108,474 | $ 2,049,465 | $ 1,429,941 | $ (79,183) | $ 698,707 | $ 59,009 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings before subsidiary preferred stock dividends | 196,648 | 185,005 | 185,005 | 11,643 | ||
Total other comprehensive income (loss) | (1,437) | (1,437) | (1,437) | |||
Subsidiary preferred stock dividends | (396) | (396) | (396) | |||
Dividends declared on common stock | (84,333) | (84,333) | (84,333) | |||
Awards of common stock | (10,082) | (10,082) | (10,082) | |||
Stock based compensation expense | 6,728 | 6,728 | 6,728 | |||
Valencia’s transactions with its owner | (14,238) | (14,238) | ||||
Ending balance at Sep. 30, 2021 | 2,201,364 | 2,144,950 | 1,426,587 | (80,620) | 798,983 | 56,414 |
Beginning balance at Jun. 30, 2021 | 2,145,398 | 2,088,231 | 1,425,700 | (79,353) | 741,884 | 57,167 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings before subsidiary preferred stock dividends | 117,682 | 113,453 | 113,453 | 4,229 | ||
Total other comprehensive income (loss) | (1,267) | (1,267) | (1,267) | |||
Subsidiary preferred stock dividends | (132) | (132) | (132) | |||
Dividends declared on common stock | (56,222) | (56,222) | (56,222) | |||
Awards of common stock | (129) | (129) | (129) | |||
Stock based compensation expense | 1,016 | 1,016 | 1,016 | |||
Valencia’s transactions with its owner | (4,982) | (4,982) | ||||
Ending balance at Sep. 30, 2021 | 2,201,364 | 2,144,950 | 1,426,587 | (80,620) | 798,983 | 56,414 |
Beginning balance at Dec. 31, 2021 | 2,222,929 | 2,167,524 | 1,429,257 | (71,936) | 810,203 | 55,405 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings before subsidiary preferred stock dividends | 165,078 | 154,181 | 154,181 | 10,897 | ||
Total other comprehensive income (loss) | 1,757 | 1,757 | 1,757 | |||
Subsidiary preferred stock dividends | (396) | (396) | (396) | |||
Dividends declared on common stock | (119,311) | (119,311) | (119,311) | |||
Awards of common stock | (7,846) | (7,846) | (7,846) | |||
Stock based compensation expense | 5,972 | 5,972 | 5,972 | |||
Valencia’s transactions with its owner | (12,455) | (12,455) | ||||
Ending balance at Sep. 30, 2022 | 2,255,728 | 2,201,881 | 1,427,383 | (70,179) | 844,677 | 53,847 |
Beginning balance at Jun. 30, 2022 | 2,185,687 | 2,131,522 | 1,426,448 | (76,825) | 781,899 | 54,165 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings before subsidiary preferred stock dividends | 126,737 | 122,565 | 122,565 | 4,172 | ||
Total other comprehensive income (loss) | 6,646 | 6,646 | 6,646 | |||
Subsidiary preferred stock dividends | (132) | (132) | (132) | |||
Dividends declared on common stock | (59,655) | (59,655) | (59,655) | |||
Awards of common stock | (221) | (221) | (221) | |||
Stock based compensation expense | 1,156 | 1,156 | 1,156 | |||
Valencia’s transactions with its owner | (4,490) | (4,490) | ||||
Ending balance at Sep. 30, 2022 | $ 2,255,728 | $ 2,201,881 | $ 1,427,383 | $ (70,179) | $ 844,677 | $ 53,847 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Earnings - PNM - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Electric Operating Revenues: | ||||
Contracts with customers | $ 531,966 | $ 481,881 | $ 1,320,779 | $ 1,197,359 |
Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) |
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 |
Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
Operating Expenses: | ||||
Administrative and general | 58,125 | 56,520 | 165,328 | 168,458 |
Regulatory disallowances and restructuring costs | (567) | 436 | 832 | 436 |
Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 |
Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 |
Taxes other than income taxes | 22,651 | 22,678 | 71,207 | 65,440 |
Total operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 |
Operating income | 182,763 | 151,729 | 337,223 | 269,098 |
Other Income and Deductions: | ||||
Investment Income, Interest | 3,969 | 3,329 | 11,588 | 10,466 |
Gains (losses) on investment securities | (15,736) | 1,948 | (84,104) | 16,108 |
Other income | 5,364 | 5,686 | 14,845 | 14,592 |
Other (deductions) | (1,647) | (5,098) | (7,529) | (13,836) |
Net other income and deductions | (8,050) | 5,865 | (65,200) | 27,330 |
Interest Charges | 34,526 | 23,244 | 89,963 | 73,247 |
Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 |
Income Taxes (Benefits) | 13,450 | 16,668 | 16,982 | 26,533 |
Net Earnings | 126,737 | 117,682 | 165,078 | 196,648 |
(Earnings) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Preferred Stock Dividend Requirements | (132) | (132) | (396) | (396) |
Net Earnings Available for PNM Common Stock | 122,433 | 113,321 | 153,785 | 184,609 |
Energy | ||||
Electric Operating Revenues: | ||||
Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
Operating Expenses: | ||||
Energy costs | 334,339 | 199,380 | 698,349 | 467,452 |
Energy Production | ||||
Operating Expenses: | ||||
Energy costs | 34,469 | 32,374 | 110,534 | 106,709 |
PNM | ||||
Electric Operating Revenues: | ||||
Contracts with customers | 388,371 | 361,701 | 944,235 | 884,559 |
Alternative revenue programs | (599) | (8,331) | 1,039 | (5,469) |
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 |
Total electric operating revenues | 597,337 | 435,523 | 1,312,800 | 1,030,685 |
Operating Expenses: | ||||
Administrative and general | 51,900 | 49,906 | 149,361 | 143,176 |
Regulatory disallowances and restructuring costs | (567) | 436 | 832 | 436 |
Depreciation and amortization | 45,361 | 42,673 | 137,132 | 127,111 |
Transmission and distribution costs | 12,549 | 12,844 | 37,678 | 34,906 |
Taxes other than income taxes | 10,359 | 11,825 | 36,768 | 35,411 |
Total operating expenses | 457,422 | 320,960 | 1,078,434 | 831,305 |
Operating income | 139,915 | 114,563 | 234,366 | 199,380 |
Other Income and Deductions: | ||||
Investment Income, Interest | 3,888 | 3,364 | 10,288 | 10,376 |
Gains (losses) on investment securities | (15,736) | 1,948 | (84,104) | 16,108 |
Other income | 2,086 | 2,940 | 7,997 | 8,232 |
Other (deductions) | (793) | (3,530) | (5,368) | (10,635) |
Net other income and deductions | (10,555) | 4,722 | (71,187) | 24,081 |
Interest Charges | 15,467 | 12,509 | 44,562 | 38,441 |
Earnings before Income Taxes | 113,893 | 106,776 | 118,617 | 185,020 |
Income Taxes (Benefits) | 12,121 | 15,500 | 11,762 | 26,178 |
Net Earnings | 101,772 | 91,276 | 106,855 | 158,842 |
(Earnings) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Net Earnings Attributable to PNM | 97,600 | 87,047 | 95,958 | 147,199 |
Preferred Stock Dividend Requirements | (132) | (132) | (396) | (396) |
Net Earnings Available for PNM Common Stock | 97,468 | 86,915 | 95,562 | 146,803 |
PNM | Energy | ||||
Operating Expenses: | ||||
Energy costs | 303,351 | 170,902 | 606,129 | 383,556 |
PNM | Energy Production | ||||
Operating Expenses: | ||||
Energy costs | $ 34,469 | $ 32,374 | $ 110,534 | $ 106,709 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Comprehensive Income - PNM - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Earnings | $ 126,737 | $ 117,682 | $ 165,078 | $ 196,648 |
Unrealized Gains on Available-for-Sale Debt Securities: | ||||
Net change in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(326), $329, $2,075, and $246 | 956 | (968) | (6,095) | (722) |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $129, $632, $870, and $2,062 | (380) | (1,856) | (2,556) | (6,058) |
Pension Liability Adjustment: | ||||
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(451), $(530), $(1,353), and $(1,590) | 1,325 | 1,557 | 3,975 | 4,671 |
Total Other Comprehensive Income (Loss) | 6,646 | (1,267) | 1,757 | (1,437) |
Comprehensive Income | 133,383 | 116,415 | 166,835 | 195,211 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Comprehensive Income Attributable to PNM | 129,079 | 112,054 | 155,542 | 183,172 |
PNM | ||||
Net Earnings | 101,772 | 91,276 | 106,855 | 158,842 |
Unrealized Gains on Available-for-Sale Debt Securities: | ||||
Net change in unrealized holding gains arising during the period, net of income tax (expense) benefit of $(326), $329, $2,075, and $246 | 956 | (968) | (6,095) | (722) |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $129, $632, $870, and $2,062 | (380) | (1,856) | (2,556) | (6,058) |
Pension Liability Adjustment: | ||||
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(451), $(530), $(1,353), and $(1,590) | 1,325 | 1,557 | 3,975 | 4,671 |
Total Other Comprehensive Income (Loss) | 1,901 | (1,267) | (4,676) | (2,109) |
Comprehensive Income | 103,673 | 90,009 | 102,179 | 156,733 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) |
Comprehensive Income Attributable to PNM | $ 99,501 | $ 85,780 | $ 91,282 | $ 145,090 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Comprehensive Income - PNM (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | $ (326) | $ 329 | $ 2,075 | $ 246 |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 129 | 632 | 870 | 2,062 |
Pension liability adjustment, income tax expense (benefit) | (451) | (530) | (1,353) | (1,590) |
PNM | ||||
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | (326) | 329 | 2,075 | 246 |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 129 | 632 | 870 | 2,062 |
Pension liability adjustment, income tax expense (benefit) | $ (451) | $ (530) | $ (1,353) | $ (1,590) |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Cash Flows - PNM - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Earnings | $ 165,078 | $ 196,648 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 255,808 | 238,963 |
Deferred income tax expense | 15,036 | 25,293 |
(Gains) losses on investment securities | 84,104 | (16,108) |
Regulatory disallowances and restructuring costs | 832 | 436 |
Allowance for equity funds used during construction | (9,232) | (8,867) |
Other, net | 1,323 | 4,594 |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (66,713) | (46,649) |
Materials, supplies, and fuel stock | (6,630) | (333) |
Other current assets | 3,687 | (20,005) |
Other assets | 6,676 | 17,551 |
Accounts payable | 11,845 | 5,934 |
Accrued interest and taxes | 17,875 | 7,713 |
Other current liabilities | (26,082) | 17,679 |
Other liabilities | (32,083) | (21,065) |
Net cash flows from operating activities | 427,496 | 408,512 |
Cash Flows From Investing Activities: | ||
Utility plant additions | (702,878) | (496,185) |
Proceeds from sales of investment securities | 323,251 | 396,870 |
Purchases of investment securities | (332,490) | (405,142) |
Other, net | 692 | 108 |
Net cash flows used in investing activities | (711,425) | (503,777) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings (repayments), net | (2,500) | (18,100) |
Long-term borrowings | 558,000 | 1,370,000 |
Repayment of long-term debt | (179,500) | (1,165,000) |
Dividends paid | (89,879) | (84,729) |
Valencia’s transactions with its owner | (12,455) | (14,238) |
Transmission interconnection and security deposit arrangements | 76,696 | 31,878 |
Refunds paid under transmission interconnection arrangements | (50,401) | (9,752) |
Debt issuance costs and other, net | (3,668) | (3,159) |
Net cash flows from financing activities | 288,447 | 96,818 |
Change in Cash, Restricted Cash, and Equivalents | 4,518 | 1,553 |
Cash, Restricted Cash, and Equivalents at Beginning of Period | 1,104 | 47,928 |
Cash, Restricted Cash, and Equivalents at End of Period | 5,622 | 49,481 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 79,246 | 69,965 |
Income taxes paid (refunded), net | 904 | 892 |
Supplemental schedule of noncash investing activities: | ||
Decrease in accrued plant additions | 56,948 | 63,281 |
PNM | ||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Earnings | 106,855 | 158,842 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 161,303 | 151,775 |
Deferred income tax expense | 11,762 | 24,034 |
(Gains) losses on investment securities | 84,104 | (16,108) |
Regulatory disallowances and restructuring costs | 832 | 436 |
Allowance for equity funds used during construction | (6,793) | (6,655) |
Other, net | 2,839 | 3,488 |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (45,252) | (34,110) |
Materials, supplies, and fuel stock | (3,809) | 143 |
Other current assets | 885 | (20,398) |
Other assets | 7,958 | 14,541 |
Accounts payable | 20,308 | 14,411 |
Accrued interest and taxes | 14,799 | 13,370 |
Other current liabilities | (35,503) | 12,442 |
Other liabilities | (24,717) | (34,394) |
Net cash flows from operating activities | 295,571 | 281,817 |
Cash Flows From Investing Activities: | ||
Utility plant additions | (322,412) | (247,064) |
Proceeds from sales of investment securities | 323,251 | 396,870 |
Purchases of investment securities | (332,490) | (405,142) |
Other, net | 492 | 108 |
Net cash flows used in investing activities | (331,159) | (255,228) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings (repayments), net | (7,400) | (10,000) |
Long-term borrowings | 298,000 | 235,000 |
Repayment of long-term debt | (179,500) | (200,000) |
Dividends paid | (85,396) | (60,396) |
Valencia’s transactions with its owner | (12,455) | (14,238) |
Transmission interconnection and security deposit arrangements | 70,296 | 28,278 |
Refunds paid under transmission interconnection arrangements | (41,401) | (2,450) |
Debt issuance costs and other, net | (2,201) | (1,665) |
Net cash flows from financing activities | 39,943 | (25,471) |
Change in Cash, Restricted Cash, and Equivalents | 4,355 | 1,118 |
Cash, Restricted Cash, and Equivalents at Beginning of Period | 19 | 31,446 |
Cash, Restricted Cash, and Equivalents at End of Period | 4,374 | 32,564 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 37,269 | 33,189 |
Income taxes paid (refunded), net | 0 | 0 |
Supplemental schedule of noncash investing activities: | ||
Decrease in accrued plant additions | $ 21,069 | $ 45,441 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets - PNM - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 5,622 | $ 1,104 |
Accounts receivable, net of allowance for credit losses of $4,919 and $7,265 | 179,604 | 123,292 |
Unbilled revenues | 63,889 | 57,736 |
Other receivables | 22,089 | 18,784 |
Materials, supplies, and fuel stock | 64,835 | 65,061 |
Regulatory assets | 45,040 | 14,785 |
Prepaid assets | 18,407 | 37,325 |
Other current assets | 6,453 | 1,635 |
Total current assets | 409,774 | 324,600 |
Other Property and Investments: | ||
Investment securities | 376,662 | 463,126 |
Other investments | 160 | 265 |
Non-utility property, net | 25,805 | 25,439 |
Total other property and investments | 493,301 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 8,832,929 | 9,357,849 |
Less accumulated depreciation and amortization | 2,621,112 | 2,952,743 |
Net plant in service and plant held for future use | 6,211,817 | 6,405,106 |
Construction work in progress | 485,023 | 248,856 |
Nuclear fuel, net of accumulated amortization of $47,734 and $41,181 | 97,545 | 98,937 |
Net utility plant | 6,794,385 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 820,832 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease right-of-use assets, net of accumulated amortization | 62,440 | 79,511 |
Other deferred charges | 169,861 | 139,332 |
Total deferred charges and other assets | 1,331,430 | 1,011,398 |
Assets | 9,028,890 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 60,200 | 62,700 |
Current installments of long-term debt | 184,684 | 179,339 |
Accounts payable | 127,493 | 172,595 |
Customer deposits | 5,917 | 5,095 |
Accrued interest and taxes | 86,937 | 70,105 |
Regulatory liabilities | 17,186 | 8,316 |
Operating lease liabilities | 18,534 | 27,218 |
Dividends declared | 29,960 | 132 |
Transmission interconnection arrangement liabilities | 20,208 | 39,564 |
Other current liabilities | 115,350 | 99,149 |
Total current liabilities | 666,469 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,893,500 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 806,630 | 764,850 |
Regulatory liabilities | 772,355 | 841,393 |
Asset retirement obligations | 220,899 | 234,146 |
Accrued pension liability and postretirement benefit cost | 9,416 | 19,057 |
Operating lease liabilities | 41,701 | 55,993 |
Other deferred credits | 350,663 | 333,195 |
Total deferred credits and liabilities | 2,201,664 | 2,248,634 |
Total liabilities | 6,761,633 | 6,432,427 |
Commitments and Contingencies (Note 11) | ||
Cumulative Preferred Stock without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
PNM common stockholder’s equity: | ||
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares) | 1,427,383 | 1,429,257 |
Accumulated other comprehensive income (loss), net of income taxes | (70,179) | (71,936) |
Retained earnings | 844,677 | 810,203 |
Total PNM common stockholder’s equity | 2,201,881 | 2,167,524 |
Non-controlling interest in Valencia | 53,847 | 55,405 |
Total equity | 2,255,728 | 2,222,929 |
Total liabilities and stockholders' equity | 9,028,890 | 8,666,885 |
PNM | ||
Current Assets: | ||
Cash and cash equivalents | 4,374 | 19 |
Accounts receivable, net of allowance for credit losses of $4,919 and $7,265 | 138,203 | 98,151 |
Unbilled revenues | 45,711 | 44,759 |
Other receivables | 17,411 | 16,538 |
Affiliate receivables | 8,906 | 8,837 |
Materials, supplies, and fuel stock | 54,895 | 57,942 |
Regulatory assets | 44,906 | 8,721 |
Prepaid assets | 10,315 | 30,266 |
Other current assets | 6,500 | 1,456 |
Total current assets | 331,221 | 266,689 |
Other Property and Investments: | ||
Investment securities | 376,662 | 463,126 |
Other investments | 24 | 129 |
Non-utility property, net | 11,405 | 10,717 |
Total other property and investments | 388,091 | 473,972 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 5,908,807 | 6,602,015 |
Less accumulated depreciation and amortization | 1,879,406 | 2,235,068 |
Net plant in service and plant held for future use | 4,029,401 | 4,366,947 |
Construction work in progress | 281,506 | 182,520 |
Nuclear fuel, net of accumulated amortization of $47,734 and $41,181 | 97,545 | 98,937 |
Net utility plant | 4,408,452 | 4,648,404 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 740,175 | 428,981 |
Goodwill | 51,632 | 51,632 |
Operating lease right-of-use assets, net of accumulated amortization | 58,670 | 73,903 |
Other deferred charges | 135,175 | 116,552 |
Total deferred charges and other assets | 985,652 | 671,068 |
Assets | 6,113,416 | 6,060,133 |
Current Liabilities: | ||
Short-term debt | 0 | 7,400 |
Current installments of long-term debt | 184,684 | 179,339 |
Accounts payable | 107,034 | 107,795 |
Affiliate payables | 10,481 | 15,203 |
Customer deposits | 5,917 | 5,095 |
Accrued interest and taxes | 51,936 | 37,137 |
Regulatory liabilities | 12,366 | 8,316 |
Operating lease liabilities | 16,902 | 25,278 |
Dividends declared | 132 | 132 |
Transmission interconnection arrangement liabilities | 20,208 | 39,564 |
Other current liabilities | 87,399 | 70,643 |
Total current liabilities | 497,059 | 495,902 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,815,951 | 1,701,771 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 656,814 | 630,682 |
Regulatory liabilities | 571,483 | 653,830 |
Asset retirement obligations | 220,088 | 233,383 |
Accrued pension liability and postretirement benefit cost | 9,122 | 18,718 |
Operating lease liabilities | 39,754 | 52,552 |
Other deferred credits | 272,024 | 246,502 |
Total deferred credits and liabilities | 1,769,285 | 1,835,667 |
Total liabilities | 4,082,295 | 4,033,340 |
Commitments and Contingencies (Note 11) | ||
Cumulative Preferred Stock without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
PNM common stockholder’s equity: | ||
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares) | 1,547,918 | 1,547,918 |
Accumulated other comprehensive income (loss), net of income taxes | (76,612) | (71,936) |
Retained earnings | 494,439 | 483,877 |
Total PNM common stockholder’s equity | 1,965,745 | 1,959,859 |
Non-controlling interest in Valencia | 53,847 | 55,405 |
Total equity | 2,019,592 | 2,015,264 |
Total liabilities and stockholders' equity | $ 6,113,416 | $ 6,060,133 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets - PNM (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for uncollectible accounts | $ 4,919 | $ 7,265 |
Accumulated depreciation, nuclear fuel | $ 47,734 | $ 41,181 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 85,834,874 | 85,834,874 |
Common stock, shares outstanding (in shares) | 85,834,874 | 85,834,874 |
PNM | ||
Allowance for uncollectible accounts | $ 4,919 | $ 7,265 |
Accumulated depreciation, nuclear fuel | $ 47,734 | $ 41,181 |
Cumulative preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Cumulative preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Cumulative preferred stock, shares issued (in shares) | 115,293 | 115,293 |
Cumulative preferred stock, shares outstanding (in shares) | 115,293 | 115,293 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 39,117,799 | 39,117,799 |
Common stock, shares outstanding (in shares) | 39,117,799 | 39,117,799 |
Condensed Consolidated State_10
Condensed Consolidated Statements of Changes in Equity - PNM - USD ($) $ in Thousands | Total | Total PNMR Common Stockholders’ Equity | Common Stock | AOCI | Retained Earnings | Non- controlling Interest in Valencia | PNM | PNM Total PNMR Common Stockholders’ Equity | PNM Common Stock | PNM AOCI | PNM Retained Earnings | PNM Non- controlling Interest in Valencia |
Beginning balance at Dec. 31, 2020 | $ 2,108,474 | $ 2,049,465 | $ 1,429,941 | $ (79,183) | $ 698,707 | $ 59,009 | $ 1,863,752 | $ 1,804,743 | $ 1,494,918 | $ (78,511) | $ 388,336 | $ 59,009 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Earnings | 196,648 | 185,005 | 185,005 | 11,643 | 158,842 | 147,199 | 147,199 | 11,643 | ||||
Total other comprehensive income | (1,437) | (1,437) | (1,437) | (2,109) | (2,109) | (2,109) | ||||||
Dividends declared on preferred stock | (396) | (396) | (396) | |||||||||
Dividends declared on common stock | (84,333) | (84,333) | (84,333) | (60,000) | (60,000) | (60,000) | ||||||
Valencia’s transactions with its owner | (14,238) | (14,238) | (14,238) | (14,238) | ||||||||
Ending balance at Sep. 30, 2021 | 2,201,364 | 2,144,950 | 1,426,587 | (80,620) | 798,983 | 56,414 | 1,945,851 | 1,889,437 | 1,494,918 | (80,620) | 475,139 | 56,414 |
Beginning balance at Jun. 30, 2021 | 2,145,398 | 2,088,231 | 1,425,700 | (79,353) | 741,884 | 57,167 | 1,920,956 | 1,863,789 | 1,494,918 | (79,353) | 448,224 | 57,167 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Earnings | 117,682 | 113,453 | 113,453 | 4,229 | 91,276 | 87,047 | 87,047 | 4,229 | ||||
Total other comprehensive income | (1,267) | (1,267) | (1,267) | (1,267) | (1,267) | (1,267) | ||||||
Dividends declared on preferred stock | (132) | (132) | (132) | |||||||||
Dividends declared on common stock | (56,222) | (56,222) | (56,222) | (60,000) | (60,000) | (60,000) | ||||||
Valencia’s transactions with its owner | (4,982) | (4,982) | (4,982) | (4,982) | ||||||||
Ending balance at Sep. 30, 2021 | 2,201,364 | 2,144,950 | 1,426,587 | (80,620) | 798,983 | 56,414 | 1,945,851 | 1,889,437 | 1,494,918 | (80,620) | 475,139 | 56,414 |
Beginning balance at Dec. 31, 2021 | 2,222,929 | 2,167,524 | 1,429,257 | (71,936) | 810,203 | 55,405 | 2,015,264 | 1,959,859 | 1,547,918 | (71,936) | 483,877 | 55,405 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Earnings | 165,078 | 154,181 | 154,181 | 10,897 | 106,855 | 95,958 | 95,958 | 10,897 | ||||
Total other comprehensive income | 1,757 | 1,757 | 1,757 | (4,676) | (4,676) | (4,676) | ||||||
Dividends declared on preferred stock | (396) | (396) | (396) | |||||||||
Dividends declared on common stock | (119,311) | (119,311) | (119,311) | (85,000) | (85,000) | (85,000) | ||||||
Valencia’s transactions with its owner | (12,455) | (12,455) | (12,455) | (12,455) | ||||||||
Ending balance at Sep. 30, 2022 | 2,255,728 | 2,201,881 | 1,427,383 | (70,179) | 844,677 | 53,847 | 2,019,592 | 1,965,745 | 1,547,918 | (76,612) | 494,439 | 53,847 |
Beginning balance at Jun. 30, 2022 | 2,185,687 | 2,131,522 | 1,426,448 | (76,825) | 781,899 | 54,165 | 2,005,541 | 1,951,376 | 1,547,918 | (78,513) | 481,971 | 54,165 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Earnings | 126,737 | 122,565 | 122,565 | 4,172 | 101,772 | 97,600 | 97,600 | 4,172 | ||||
Total other comprehensive income | 6,646 | 6,646 | 6,646 | 1,901 | 1,901 | 1,901 | ||||||
Dividends declared on preferred stock | (132) | (132) | (132) | |||||||||
Dividends declared on common stock | (59,655) | (59,655) | (59,655) | (85,000) | (85,000) | (85,000) | ||||||
Valencia’s transactions with its owner | (4,490) | (4,490) | (4,490) | (4,490) | ||||||||
Ending balance at Sep. 30, 2022 | $ 2,255,728 | $ 2,201,881 | $ 1,427,383 | $ (70,179) | $ 844,677 | $ 53,847 | $ 2,019,592 | $ 1,965,745 | $ 1,547,918 | $ (76,612) | $ 494,439 | $ 53,847 |
Condensed Consolidated State_11
Condensed Consolidated Statements of Earnings - TNMP - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Electric Operating Revenues: | ||||
Contracts with customers | $ 531,966 | $ 481,881 | $ 1,320,779 | $ 1,197,359 |
Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) |
Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
Operating Expenses: | ||||
Administrative and general | 58,125 | 56,520 | 165,328 | 168,458 |
Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 |
Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 |
Taxes other than income taxes | 22,651 | 22,678 | 71,207 | 65,440 |
Total operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 |
Operating income | 182,763 | 151,729 | 337,223 | 269,098 |
Other Income and Deductions: | ||||
Investment Income, Interest | 3,969 | 3,329 | 11,588 | 10,466 |
Other income | 5,364 | 5,686 | 14,845 | 14,592 |
Other (deductions) | (1,647) | (5,098) | (7,529) | (13,836) |
Net other income and deductions | (8,050) | 5,865 | (65,200) | 27,330 |
Interest Charges | 34,526 | 23,244 | 89,963 | 73,247 |
Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 |
Income Taxes (Benefits) | 13,450 | 16,668 | 16,982 | 26,533 |
Texas-New Mexico Power Company | ||||
Electric Operating Revenues: | ||||
Contracts with customers | 143,595 | 120,180 | 376,544 | 312,800 |
Alternative revenue programs | (11,044) | (1,152) | (15,608) | 2,313 |
Total electric operating revenues | 132,551 | 119,028 | 360,936 | 315,113 |
Operating Expenses: | ||||
Cost of energy | 30,988 | 28,478 | 92,220 | 83,896 |
Administrative and general | 12,548 | 11,708 | 35,746 | 34,960 |
Depreciation and amortization | 24,960 | 23,031 | 72,914 | 67,696 |
Transmission and distribution costs | 8,989 | 7,152 | 23,482 | 21,260 |
Taxes other than income taxes | 11,229 | 9,817 | 30,495 | 26,730 |
Total operating expenses | 88,714 | 80,186 | 254,857 | 234,542 |
Operating income | 43,837 | 38,842 | 106,079 | 80,571 |
Other Income and Deductions: | ||||
Investment Income, Interest | 148 | 0 | 1,435 | 0 |
Other income | 2,691 | 2,144 | 5,151 | 4,853 |
Other (deductions) | (448) | (1,000) | (848) | (1,602) |
Net other income and deductions | 2,391 | 1,144 | 5,738 | 3,251 |
Interest Charges | 9,851 | 8,403 | 28,017 | 25,155 |
Earnings before Income Taxes | 36,377 | 31,583 | 83,800 | 58,667 |
Income Taxes (Benefits) | 4,946 | 3,642 | 11,258 | 6,341 |
Net Earnings Attributable to PNM | $ 31,431 | $ 27,941 | $ 72,542 | $ 52,326 |
Condensed Consolidated State_12
Condensed Consolidated Statements of Cash Flows - TNMP - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Earnings | $ 165,078 | $ 196,648 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 255,808 | 238,963 |
Deferred income tax expense | 15,036 | 25,293 |
Allowance for equity funds used during construction | (9,232) | (8,867) |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (66,713) | (46,649) |
Materials, supplies, and fuel stock | (6,630) | (333) |
Other current assets | 3,687 | (20,005) |
Other assets | 6,676 | 17,551 |
Accounts payable | 11,845 | 5,934 |
Accrued interest and taxes | 17,875 | 7,713 |
Other current liabilities | (26,082) | 17,679 |
Other liabilities | (32,083) | (21,065) |
Net cash flows from operating activities | 427,496 | 408,512 |
Cash Flows From Investing Activities: | ||
Utility plant additions | (702,878) | (496,185) |
Net cash flows used in investing activities | (711,425) | (503,777) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings (repayments), net | (2,500) | (18,100) |
Long-term borrowings | 558,000 | 1,370,000 |
Transmission interconnection and security deposit arrangements | 76,696 | 31,878 |
Refunds paid under transmission interconnection arrangements | (50,401) | (9,752) |
Debt issuance costs and other, net | (3,668) | (3,159) |
Net cash flows from financing activities | 288,447 | 96,818 |
Change in Cash, Restricted Cash, and Equivalents | 4,518 | 1,553 |
Cash, Restricted Cash, and Equivalents at Beginning of Period | 1,104 | 47,928 |
Cash, Restricted Cash, and Equivalents at End of Period | 5,622 | 49,481 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 79,246 | 69,965 |
Income taxes paid, net | 904 | 892 |
Supplemental schedule of noncash investing activities: | ||
Decrease in accrued plant additions | 56,948 | 63,281 |
Texas-New Mexico Power Company | ||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Earnings | 72,542 | 52,326 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | ||
Depreciation and amortization | 73,536 | 68,378 |
Deferred income tax expense | (3,587) | (6,377) |
Allowance for equity funds used during construction | (2,441) | (2,152) |
Changes in certain assets and liabilities: | ||
Accounts receivable and unbilled revenues | (21,461) | (12,539) |
Materials, supplies, and fuel stock | (2,821) | (476) |
Other current assets | 2,696 | (4,927) |
Other assets | (387) | 5,168 |
Accounts payable | (3,791) | (4,050) |
Accrued interest and taxes | 14,449 | 10,800 |
Other current liabilities | 7,769 | (754) |
Other liabilities | (4,324) | 11,538 |
Net cash flows from operating activities | 132,180 | 116,935 |
Cash Flows From Investing Activities: | ||
Utility plant additions | (359,441) | (233,381) |
Net cash flows used in investing activities | (359,441) | (233,381) |
Cash Flows From Financing Activities: | ||
Revolving credit facilities borrowings (repayments), net | 2,600 | 0 |
Long-term borrowings | 160,000 | 65,000 |
Equity contribution from parent | 68,000 | 52,000 |
Transmission interconnection and security deposit arrangements | 6,400 | 3,600 |
Refunds paid under transmission interconnection arrangements | (9,000) | (7,302) |
Debt issuance costs and other, net | (739) | (736) |
Net cash flows from financing activities | 227,261 | 112,562 |
Change in Cash, Restricted Cash, and Equivalents | 0 | (3,884) |
Cash, Restricted Cash, and Equivalents at Beginning of Period | 0 | 14,800 |
Cash, Restricted Cash, and Equivalents at End of Period | 0 | 10,916 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of amounts capitalized | 26,810 | 25,085 |
Income taxes paid, net | 904 | 892 |
Supplemental schedule of noncash investing activities: | ||
Decrease in accrued plant additions | $ 24,773 | $ 14,166 |
Condensed Consolidated Balanc_5
Condensed Consolidated Balance Sheets - TNMP - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 5,622 | $ 1,104 |
Accounts receivable | 179,604 | 123,292 |
Unbilled revenues | 63,889 | 57,736 |
Other receivables | 22,089 | 18,784 |
Materials, supplies, and fuel stock | 64,835 | 65,061 |
Regulatory assets | 45,040 | 14,785 |
Other current assets | 6,453 | 1,635 |
Total current assets | 409,774 | 324,600 |
Other Property and Investments: | ||
Other investments | 160 | 265 |
Non-utility property, net | 25,805 | 25,439 |
Total other property and investments | 493,301 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 8,832,929 | 9,357,849 |
Less accumulated depreciation and amortization | 2,621,112 | 2,952,743 |
Net plant in service and plant held for future use | 6,211,817 | 6,405,106 |
Construction work in progress | 485,023 | 248,856 |
Net utility plant | 6,794,385 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 820,832 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease right-of-use assets, net of accumulated amortization | 62,440 | 79,511 |
Other deferred charges | 169,861 | 139,332 |
Total deferred charges and other assets | 1,331,430 | 1,011,398 |
Assets | 9,028,890 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 60,200 | 62,700 |
Accounts payable | 127,493 | 172,595 |
Accrued interest and taxes | 86,937 | 70,105 |
Regulatory liabilities | 17,186 | 8,316 |
Operating lease liabilities | 18,534 | 27,218 |
Other current liabilities | 115,350 | 99,149 |
Total current liabilities | 666,469 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,893,500 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 806,630 | 764,850 |
Regulatory liabilities | 772,355 | 841,393 |
Asset retirement obligations | 220,899 | 234,146 |
Accrued pension liability and postretirement benefit cost | 9,416 | 19,057 |
Operating lease liabilities | 41,701 | 55,993 |
Other deferred credits | 350,663 | 333,195 |
Total deferred credits and liabilities | 2,201,664 | 2,248,634 |
Total liabilities | 6,761,633 | 6,432,427 |
Commitments and Contingencies (Note 11) | ||
PNM common stockholder’s equity: | ||
Common stock ($10 par value; 12,000,000 shares authorized; issued and outstanding 6,358 shares) | 1,427,383 | 1,429,257 |
Retained earnings | 844,677 | 810,203 |
Total PNM common stockholder’s equity | 2,201,881 | 2,167,524 |
Total liabilities and stockholders' equity | 9,028,890 | 8,666,885 |
Texas-New Mexico Power Company | ||
Current Assets: | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable | 41,401 | 25,141 |
Unbilled revenues | 18,178 | 12,977 |
Other receivables | 6,792 | 4,108 |
Materials, supplies, and fuel stock | 9,940 | 7,119 |
Regulatory assets | 134 | 6,064 |
Other current assets | 2,836 | 1,989 |
Total current assets | 79,281 | 57,398 |
Other Property and Investments: | ||
Other investments | 136 | 136 |
Non-utility property, net | 13,243 | 13,499 |
Total other property and investments | 13,379 | 13,635 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 2,641,891 | 2,475,859 |
Less accumulated depreciation and amortization | 573,240 | 563,004 |
Net plant in service and plant held for future use | 2,068,651 | 1,912,855 |
Construction work in progress | 188,697 | 53,401 |
Net utility plant | 2,257,348 | 1,966,256 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 80,657 | 85,277 |
Goodwill | 226,665 | 226,665 |
Operating lease right-of-use assets, net of accumulated amortization | 3,769 | 5,264 |
Other deferred charges | 12,447 | 10,277 |
Total deferred charges and other assets | 323,538 | 327,483 |
Assets | 2,673,546 | 2,364,772 |
Current Liabilities: | ||
Short-term debt | 3,000 | 400 |
Accounts payable | 14,525 | 43,089 |
Affiliate payables | 5,214 | 6,568 |
Accrued interest and taxes | 54,454 | 40,005 |
Regulatory liabilities | 4,820 | 0 |
Operating lease liabilities | 1,631 | 1,882 |
Other current liabilities | 7,868 | 4,968 |
Total current liabilities | 91,512 | 96,912 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,077,977 | 918,050 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 163,846 | 157,248 |
Regulatory liabilities | 200,872 | 187,563 |
Asset retirement obligations | 811 | 763 |
Accrued pension liability and postretirement benefit cost | 294 | 339 |
Operating lease liabilities | 1,947 | 3,155 |
Other deferred credits | 54,188 | 59,185 |
Total deferred credits and liabilities | 421,958 | 408,253 |
Total liabilities | 1,591,447 | 1,423,215 |
Commitments and Contingencies (Note 11) | ||
PNM common stockholder’s equity: | ||
Common stock ($10 par value; 12,000,000 shares authorized; issued and outstanding 6,358 shares) | 64 | 64 |
Paid-in-capital | 805,166 | 737,166 |
Retained earnings | 276,869 | 204,327 |
Total PNM common stockholder’s equity | 1,082,099 | 941,557 |
Total liabilities and stockholders' equity | $ 2,673,546 | $ 2,364,772 |
Condensed Consolidated Balanc_6
Condensed Consolidated Balance Sheets - TNMP (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 85,834,874 | 85,834,874 |
Common stock, shares outstanding (in shares) | 85,834,874 | 85,834,874 |
Texas-New Mexico Power Company | ||
Common stock, par value (in dollars per share) | $ 10 | $ 10 |
Common stock, shares authorized (in shares) | 12,000,000 | 12,000,000 |
Common stock, shares issued (in shares) | 6,358 | 6,358 |
Common stock, shares outstanding (in shares) | 6,358 | 6,358 |
Condensed Consolidated State_13
Condensed Consolidated Statements of Changes in Common Stockholder's Equity - TNMP - USD ($) $ in Thousands | Total | Texas-New Mexico Power Company | Texas-New Mexico Power Company Common Stock | Texas-New Mexico Power Company Paid-in Capital | Texas-New Mexico Power Company Retained Earnings |
Beginning balance TNMP at Dec. 31, 2020 | $ 825,678 | $ 64 | $ 685,166 | $ 140,448 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 52,326 | 52,326 | |||
Equity contribution from parent | 52,000 | 52,000 | |||
Ending balance TNMP at Sep. 30, 2021 | 930,004 | 64 | 737,166 | 192,774 | |
Beginning balance TNMP at Jun. 30, 2021 | 902,063 | 64 | 737,166 | 164,833 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 27,941 | 27,941 | |||
Ending balance TNMP at Sep. 30, 2021 | 930,004 | 64 | 737,166 | 192,774 | |
Beginning balance TNMP at Dec. 31, 2021 | $ 2,167,524 | 941,557 | 64 | 737,166 | 204,327 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 72,542 | 72,542 | |||
Equity contribution from parent | 68,000 | 68,000 | |||
Ending balance TNMP at Sep. 30, 2022 | 2,201,881 | 1,082,099 | 64 | 805,166 | 276,869 |
Beginning balance TNMP at Jun. 30, 2022 | 982,668 | 64 | 737,166 | 245,438 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 31,431 | 31,431 | |||
Equity contribution from parent | 68,000 | 68,000 | |||
Ending balance TNMP at Sep. 30, 2022 | $ 2,201,881 | $ 1,082,099 | $ 64 | $ 805,166 | $ 276,869 |
Significant Accounting Policies
Significant Accounting Policies and Responsibility for Financial Statements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Responsibility for Financial Statements | Significant Accounting Policies and Responsibility for Financial Statements Financial Statement Preparation In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements reflect all normal and recurring accruals and adjustments that are necessary to present fairly the consolidated financial position at September 30, 2022 and December 31, 2021, and the consolidated results of operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. Weather causes the Company’s results of operations to be seasonal in nature and the results of operations presented in the accompanying Condensed Consolidated Financial Statements are not necessarily representative of operations for an entire year. The Notes to Condensed Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. This report uses the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP are so indicated. Certain amounts in the 2021 Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2022 financial statement presentation. These Condensed Consolidated Financial Statements are unaudited. Certain information and note disclosures normally included in the annual audited Consolidated Financial Statements have been condensed or omitted, as permitted under the applicable rules and regulations. Readers of these financial statements should refer to PNMR’s, PNM’s, and TNMP’s audited Consolidated Financial Statements and Notes thereto that are included in their respective 2021 Annual Reports on Form 10-K. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events accordingly. Principles of Consolidation The Condensed Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia. See Note 6. 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 Services Company 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. See Note 15. All intercompany transactions and balances have been eliminated. Dividends on Common Stock Dividends on PNMR’s common stock are declared by the Board. The timing of the declaration of dividends is dependent on the timing of meetings and other actions of the Board. This has historically resulted in dividends attributable to the second quarter of each year being declared through actions of the Board during the third quarter of the year. The Board declared dividends on common stock considered to be for the second quarter of $0.3475 per share in August 2022 and $0.3275 per share in July 2021, which are reflected as being in the second quarter within Dividends Declared per Common Share on the PNMR Condensed Consolidated Statements of Earnings. The Board declared dividends on common stock for the third quarter of $0.3475 per share in September 2022 and $0.3275 per share in September 2021, which are reflected as being in the third quarter within Dividends Declared per Common Share on the PNMR Condensed Consolidated Statement of Earnings. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
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 and the equity method investment in NMRD are also included in Corporate and Other. Eliminations of intercompany transactions are reflected in the Corporate and Other segment. The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. PNMR SEGMENT INFORMATION PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended September 30, 2022 Electric operating revenues $ 597,337 $ 132,551 $ — $ 729,888 Cost of energy 303,351 30,988 — 334,339 Utility margin 293,986 101,563 — 395,549 Other operating expenses 108,710 32,766 (5,260) 136,216 Depreciation and amortization 45,361 24,960 6,249 76,570 Operating income (loss) 139,915 43,837 (989) 182,763 Interest income (expense) 3,888 148 (67) 3,969 Other income (deductions) (14,443) 2,243 181 (12,019) Interest charges (15,467) (9,851) (9,208) (34,526) Segment earnings (loss) before income taxes 113,893 36,377 (10,083) 140,187 Income taxes (benefit) 12,121 4,946 (3,617) 13,450 Segment earnings (loss) 101,772 31,431 (6,466) 126,737 Valencia non-controlling interest (4,172) — — (4,172) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 97,468 $ 31,431 $ (6,466) $ 122,433 Nine Months Ended September 30, 2022 Electric operating revenues $ 1,312,800 $ 360,936 $ — $ 1,673,736 Cost of energy 606,129 92,220 — 698,349 Utility margin 706,671 268,716 — 975,387 Other operating expenses 335,173 89,723 (15,835) 409,061 Depreciation and amortization 137,132 72,914 19,057 229,103 Operating income (loss) 234,366 106,079 (3,222) 337,223 Interest income (expense) 10,288 1,435 (135) 11,588 Other income (deductions) (81,475) 4,303 384 (76,788) Interest charges (44,562) (28,017) (17,384) (89,963) Segment earnings (loss) before income taxes 118,617 83,800 (20,357) 182,060 Income taxes (benefit) 11,762 11,258 (6,038) 16,982 Segment earnings (loss) 106,855 72,542 (14,319) 165,078 Valencia non-controlling interest (10,897) — — (10,897) Subsidiary preferred stock dividends (396) — — (396) Segment earnings (loss) attributable to PNMR $ 95,562 $ 72,542 $ (14,319) $ 153,785 At September 30, 2022: Total Assets $ 6,113,416 $ 2,673,546 $ 241,928 $ 9,028,890 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended September 30, 2021 Electric operating revenues $ 435,523 $ 119,028 $ — $ 554,551 Cost of energy 170,902 28,478 — 199,380 Utility margin 264,621 90,550 — 355,171 Other operating expenses 107,385 28,677 (4,058) 132,004 Depreciation and amortization 42,673 23,031 5,734 71,438 Operating income (loss) 114,563 38,842 (1,676) 151,729 Interest income (expense) 3,364 — (35) 3,329 Other income 1,358 1,144 34 2,536 Interest charges (12,509) (8,403) (2,332) (23,244) Segment earnings (loss) before income taxes 106,776 31,583 (4,009) 134,350 Income taxes (benefit) 15,500 3,642 (2,474) 16,668 Segment earnings (loss) 91,276 27,941 (1,535) 117,682 Valencia non-controlling interest (4,229) — — (4,229) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 86,915 $ 27,941 $ (1,535) $ 113,321 Nine Months Ended September 30, 2021 Electric operating revenues $ 1,030,685 $ 315,113 $ — $ 1,345,798 Cost of energy 383,556 83,896 — 467,452 Utility margin 647,129 231,217 — 878,346 Other operating expenses 320,638 82,950 (6,379) 397,209 Depreciation and amortization 127,111 67,696 17,232 212,039 Operating income (loss) 199,380 80,571 (10,853) 269,098 Interest income 10,376 — 90 10,466 Other income (deductions) 13,705 3,251 (92) 16,864 Interest charges (38,441) (25,155) (9,651) (73,247) Segment earnings (loss) before income taxes 185,020 58,667 (20,506) 223,181 Income taxes (benefit) 26,178 6,341 (5,986) 26,533 Segment earnings (loss) 158,842 52,326 (14,520) 196,648 Valencia non-controlling interest (11,643) — — (11,643) Subsidiary preferred stock dividends (396) — — (396) Segment earnings (loss) attributable to PNMR $ 146,803 $ 52,326 $ (14,520) $ 184,609 At September 30, 2021: Total Assets $ 5,723,176 $ 2,311,559 $ 221,335 $ 8,256,070 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 Non-GAAP Financial Measures 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 consumers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented and is considered a non-GAAP measure. PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP however, the calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below. PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended September 30, 2022 Gross margin $ 201,607 $ 67,614 $ — $ 269,221 Energy production costs 34,469 — — 34,469 Transmission and distribution costs 12,549 8,989 — 21,538 Depreciation and amortization 45,361 24,960 — 70,321 1 Utility margin $ 293,986 $ 101,563 $ — $ 395,549 Nine Months Ended September 30, 2022 Gross margin $ 421,327 $ 172,320 $ — $ 593,647 Energy production costs 110,534 — — 110,534 Transmission and distribution costs 37,678 23,482 — 61,160 Depreciation and amortization 137,132 72,914 — 210,046 1 Utility margin $ 706,671 $ 268,716 $ — $ 975,387 Three Months Ended September 30, 2021 Gross margin $ 176,730 $ 60,367 $ — $ 237,097 Energy production costs 32,374 — — 32,374 Transmission and distribution costs 12,844 7,152 — 19,996 Depreciation and amortization 42,673 23,031 — 65,704 1 Utility margin $ 264,621 $ 90,550 $ — $ 355,171 Nine Months Ended September 30, 2021 Gross margin $ 378,403 $ 142,261 $ — $ 520,664 Energy production costs 106,709 — — 106,709 Transmission and distribution costs 34,906 21,260 — 56,166 Depreciation and amortization 127,111 67,696 — 194,807 1 Utility margin $ 647,129 $ 231,217 $ — $ 878,346 1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Information regarding accumulated other comprehensive income (loss) for the nine months ended September 30, 2022 and 2021 is as follows: Accumulated Other Comprehensive Income (Loss) PNM Corporate and Other PNMR Consolidated Unrealized Pension Fair Value Total Total (In thousands) Balance at December 31, 2021 $ 11,715 $ (83,651) $ (71,936) $ — $ (71,936) Amounts reclassified from AOCI (pre-tax) (3,426) 5,328 1,902 (1,767) 135 Income tax impact of amounts reclassified 870 (1,353) (483) 449 (34) Other OCI changes (pre-tax) (8,170) — (8,170) 10,391 2,221 Income tax impact of other OCI changes 2,075 — 2,075 (2,640) (565) Net after-tax change (8,651) 3,975 (4,676) 6,433 1,757 Balance at September 30, 2022 $ 3,064 $ (79,676) $ (76,612) $ 6,433 $ (70,179) Balance at December 31, 2020 $ 20,403 $ (98,914) $ (78,511) $ (672) $ (79,183) Amounts reclassified from AOCI (pre-tax) (8,120) 6,261 (1,859) (903) (2,762) Income tax impact of amounts reclassified 2,062 (1,590) 472 229 701 Other OCI changes (pre-tax) (968) — (968) 1,804 836 Income tax impact of other OCI changes 246 — 246 (458) (212) Net after-tax change (6,780) 4,671 (2,109) 672 (1,437) Balance at September 30, 2021 $ 13,623 $ (94,243) $ (80,620) $ — $ (80,620) The Condensed Consolidated Statements of Earnings include pre-tax amounts reclassified from AOCI related to Unrealized Gains on Available-for-Sale Debt 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 Condensed Consolidated Statements of Earnings. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Dual presentation of basic and diluted earnings per share is presented in the Condensed Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 122,433 $ 113,321 $ 153,785 $ 184,609 Average Number of Common Shares: Outstanding during period 85,835 85,835 85,835 85,835 Vested awards of restricted stock 266 237 291 230 Average Shares – Basic 86,101 86,072 86,126 86,065 Dilutive Effect of Common Stock Equivalents: Restricted stock 35 41 52 41 Average Shares – Diluted 86,136 86,113 86,178 86,106 Net Earnings Per Share of Common Stock: Basic $ 1.42 $ 1.32 $ 1.79 $ 2.14 Diluted $ 1.42 $ 1.32 $ 1.78 $ 2.14 |
Electric Operating Revenues
Electric Operating Revenues | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Electric Operating Revenues | 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. Additional information concerning electric operating revenue is contained in Note 4 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Accounts Receivable and Allowance for Credit Losses 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 estimates the allowance for credit losses on trade receivables based on historical experience and estimated default rates. Accounts receivable balances are reviewed monthly, adjustments to the allowance for credit losses are made as necessary and amounts that are deemed uncollectible are written off. PNM updated its allowance for accounts receivable balances and recorded incremental reductions to credit losses of $(0.8) million and $(2.4) million in the three and nine months ended September 30, 2022 and increases of $0.5 million and $2.9 million in the three and nine months ended September 30, 2021. The NMPRC issued an order authorizing all public utilities to create a regulatory asset to defer incremental costs related to COVID-19, including increases in uncollectible accounts. See discussion regarding regulatory treatment in Note 12. In addition to the allowance for credit losses on trade receivables, the Company has evaluated other receivables for potential credit related losses. These balances include potential exposures for other non-retail utility services. In the three and nine months ended September 30, 2022, there were no estimated credit losses related to these transactions. In the three and nine months ended September 30, 2021, PNM recorded $0.8 million in estimated credit losses related to these transactions. In February 2021, Texas experienced a severe winter storm delivering the coldest temperatures in 100 years for many parts of the state. As a result, the ERCOT market was not able to deliver sufficient generation load to the grid resulting in significant, statewide outages as ERCOT directed transmission operators to curtail thousands of firm load megawatts. TNMP complied with ERCOT directives to curtail delivery of electricity in its service territory and did not experience significant outages on its system outside of the ERCOT directed curtailments. During the weather event, generators experienced an extreme spike in market driven fuel prices and in turn charged REPs excessive market driven power prices which eventually get passed to end users on their electricity bill. Given the uncertainty of the collectability of end users' bills by REPs, ERCOT also increased the collateral required by REPs in order to do business within ERCOT's Balancing Authority. TNMP deferred bad debt expense (credit losses) from defaulting REPs to a regulatory asset which totaled $0.8 million at both September 30, 2022 and December 31, 2021 and will seek recovery in a general rate case. Disaggregation of Revenues A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. PNM TNMP PNMR Consolidated Three Months Ended September 30, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 150,682 $ 60,878 $ 211,560 Commercial 136,314 41,705 178,019 Industrial 25,609 9,450 35,059 Public authority 6,893 1,720 8,613 Economy energy service 11,784 — 11,784 Transmission 44,513 28,881 73,394 Miscellaneous 12,576 961 13,537 Total revenues from contracts with customers 388,371 143,595 531,966 Alternative revenue programs (599) (11,044) (11,643) Other electric operating revenues (1) 209,565 — 209,565 Total Electric Operating Revenues $ 597,337 $ 132,551 $ 729,888 Nine Months Ended September 30, 2022 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 368,159 $ 146,367 $ 514,526 Commercial 325,492 111,365 436,857 Industrial 68,351 27,388 95,739 Public authority 16,063 4,806 20,869 Economy energy service 31,726 — 31,726 Transmission 114,699 83,731 198,430 Miscellaneous 19,745 2,887 22,632 Total revenues from contracts with customers 944,235 376,544 1,320,779 Alternative revenue programs 1,039 (15,608) (14,569) Other electric operating revenues (1) 367,526 — 367,526 Total Electric Operating Revenues $ 1,312,800 $ 360,936 $ 1,673,736 (1) Increase in 2022 is primarily the result of participation in the EIM beginning in April 2021. PNM TNMP PNMR Consolidated Three Months Ended September 30, 2021 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 155,035 $ 51,839 $ 206,874 Commercial 137,071 34,434 171,505 Industrial 24,856 7,282 32,138 Public authority 7,388 1,614 9,002 Economy energy service 7,389 — 7,389 Transmission 26,459 24,075 50,534 Miscellaneous 3,503 936 4,439 Total revenues from contracts with customers 361,701 120,180 481,881 Alternative revenue programs (8,331) (1,152) (9,483) Other electric operating revenues 82,153 — 82,153 Total Electric Operating Revenues $ 435,523 $ 119,028 $ 554,551 Nine Months Ended September 30, 2021 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 377,794 $ 121,600 $ 499,394 Commercial 327,090 93,332 420,422 Industrial 66,593 21,621 88,214 Public authority 17,312 4,561 21,873 Economy energy service 24,722 — 24,722 Transmission 60,919 68,849 129,768 Miscellaneous 10,129 2,837 12,966 Total revenues from contracts with customers 884,559 312,800 1,197,359 Alternative revenue programs (5,469) 2,313 (3,156) Other electric operating revenues 151,595 — 151,595 Total Electric Operating Revenues $ 1,030,685 $ 315,113 $ 1,345,798 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, including amounts under ARPs. For PNM, accounts receivable reflected on the Condensed Consolidated Balance Sheets, net of allowance for credit losses, includes $115.6 million at September 30, 2022 and $86.8 million at December 31, 2021 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). Upon the completion of the Western Spirit Line, PNM entered into a TSA with Pattern Wind under an incremental tariff rate approved by FERC. The terms of the agreement provide for a financing component that benefits the customer. As such, the revenue that PNM recognizes will be in excess of the consideration received at the beginning of the service term resulting in a contract asset. The balance of the contract asset is $9.1 million at September 30, 2022 and $0.6 million at December 31, 2021. This contract asset is presented in Other deferred charges on the Condensed Consolidated Balance Sheet. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities How an enterprise evaluates and accounts for its involvement with variable interest entities, focuses 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”). This evaluation requires continual reassessment of the primary beneficiary of a VIE. Additional information concerning PNM’s VIEs is contained in Note 10 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Valencia PNM has a PPA to purchase all of the electric capacity and energy from Valencia, a 155 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 three and nine months ended September 30, 2022, PNM paid $5.0 million and $14.6 million for fixed charges and $0.7 million and $1.1 million for variable charges. For the three and nine months ended September 30, 2021, PNM paid $5.0 million and $14.9 million for fixed charges and $0.7 million and $1.6 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 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 Condensed Consolidated Financial Statements of PNM although PNM has no legal ownership interest or voting control of the VIE. The assets and liabilities of Valencia are set forth below and are not shown separately on the Condensed Consolidated Balance Sheets. The owner’s equity and net income of Valencia are considered attributable to non-controlling interest. Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Operating revenues $ 5,640 $ 5,719 $ 15,670 $ 16,425 Operating expenses 1,468 1,490 4,773 4,782 Earnings attributable to non-controlling interest $ 4,172 $ 4,229 $ 10,897 $ 11,643 Financial Position September 30, December 31, 2022 2021 (In thousands) Current assets $ 3,918 $ 3,042 Net property, plant, and equipment 50,780 52,908 Total assets 54,698 55,950 Current liabilities 851 545 Owners’ equity – non-controlling interest $ 53,847 $ 55,405 Westmoreland San Juan Mining, LLC As discussed in the subheading Coal Supply in Note 11, PNM purchased coal for SJGS under the SJGS CSA. PNM and Westmoreland also entered into agreements under which CCR disposal and mine reclamation services for SJGS would be provided. 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. On March 15, 2019, Westmoreland emerged from Chapter 11 bankruptcy as a privately held company owned and operated by a group of its former creditors. Under the reorganization, the assets of SJCC were sold to Westmoreland San Juan Mining, LLC (“WSJ LLC”), a subsidiary of Westmoreland Mining Holdings, LLC. As successor entity to SJCC, WSJ LLC assumed all rights and obligations of SJCC including obligations to PNM under the SJGS CSA and to PNMR under letter of credit support agreements. PNMR issued $30.3 million in letters of credit to facilitate the issuance of reclamation bonds required in order for SJCC to mine coal to be supplied to SJGS. As discussed above, WSJ LLC assumed the rights and obligations of SJCC, including obligations to PNMR for the letters of credit. The letters of credit support results in PNMR having a variable interest in WSJ LLC since PNMR is subject to possible loss in the event performance by PNMR is required under the letters of credit support. 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 WSJ LLC performs the required reclamation of the mine site in accordance with applicable regulations and the reclamation services agreement provides WSJ LLC the ability to recover the cost of reclamation. Additionally, much of the mine reclamation activities will be performed after the SJGS CSA expired on September 30, 2022. As discussed in Note 11, each of the SJGS participants has established and actively fund trusts to meet future reclamation obligations. |
Fair Value of Derivative and Ot
Fair Value of Derivative and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Derivative and Other Financial Instruments [Abstract] | |
Fair Value of Derivative and Other Financial Instruments | Fair Value of Derivative and Other Financial Instruments Additional information concerning energy related derivative contracts and other financial instruments is contained in Note 9 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is based on current market quotes as available and is supplemented by modeling techniques and assumptions made by the Company to the extent quoted market prices or volatilities are not available. External pricing input availability varies based on commodity location, market liquidity, and term of the agreement. Valuations of derivative assets and liabilities take into account nonperformance risk, including the effect of counterparties’ and the Company’s credit risk. The Company regularly assesses the validity and availability of pricing data for its derivative transactions. Although the Company uses its best judgment in estimating the fair value of these instruments, there are inherent limitations in any estimation technique. 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 the FPPAC. Beginning January 1, 2018, PNM was exposed to market risk for its 65 MW interest in SJGS Unit 4, which was held as merchant plant as ordered by the NMPRC. PNM 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 was obligated to deliver 36 MW of power only when SJGS Unit 4 was operating. In May 2022, PNM executed a new agreement to sell 50 MW of that capacity to a third party for the period from July 1, 2022 through September 30, 2022 on a system-contingent basis. These agreements were not considered derivatives because there was no notional amount due to the unit-contingent and system-contingent nature of the transactions. PNM and Tri-State had a hazard sharing agreement that expired in May 2022. Under this agreement, each party sold the other party 100 MW of capacity and energy from a designated generation resource on a unit contingent basis, subject to certain performance guarantees. The agreement was accounted for as a commodity derivative. See below. In May 2022, PNM and Tri-State entered into another hazard sharing agreement that existed on a unit contingent basis through September 30, 2022, however this agreement did not include a performance guarantee. As a result, this agreement was not considered a derivative. Both the purchases and sales were made at the same market index price. These agreements served to reduce the magnitude of each party’s single largest generating hazard and assist in enhancing the reliability and efficiency of their respective operations. PNM passed the sales and purchases through to customers under PNM’s FPPAC. In 2021, PNM entered into three agreements to purchase power from third parties at a fixed price in order to ensure that customer demand during the 2022 summer peak load period was met. Two of the agreements, the purchase of 85 MW from June through September 2022 and the purchase of 40 MW for the full year of 2022, were not considered derivatives because there were no notional amounts due to the unit-contingent nature of the agreements. The third agreement for the purchase of 150 MW firm power in June and September 2022 met the definition of an economic hedge described below and was accounted for accordingly. In June 2022, PNM entered into an agreement to purchase power from a third party in order to ensure that customer demand during the 2023 summer peak load period is met. The agreement for the purchase of 35 MW from June 1, 2023 through September 30, 2023 was not considered a derivative because there was no notional amount due to the unit-contingent nature of the agreement. In the third quarter of 2022, PNM entered into several additional agreements to purchase power from third parties in order to ensure that customer demand during the 2023 summer peak load is met. These agreements are primarily derivative agreements and are accounted for as such. For additional information related to 2023 summer peak resource adequacy, see Note 12. 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 nine months ended September 30, 2022 and the year ended December 31, 2021, 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 also uses such instruments under an NMPRC approved hedging plan to manage fuel and purchased power costs related to customers covered by its FPPAC. Changes in the fair value of instruments covered by its FPPAC are recorded as regulatory assets and liabilities. 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 and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets: Economic Hedges September 30, December 31, (In thousands) Other current assets $ 5,466 $ 684 Other deferred charges 170 — 5,636 684 Other current liabilities (17,346) (2,275) Other deferred credits (2,723) — (20,069) (2,275) Net $ (14,433) $ (1,591) 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 table above are equal amounts of current assets and current liabilities aggregating $0.5 million at December 31, 2021, resulting from PNM’s hazard sharing arrangements with Tri-State that ended May 2022. The hazard sharing arrangements were net-settled upon delivery. As discussed above, PNM's most recent hazard sharing agreement with Tri-State was not considered a derivative. As discussed above, PNM has NMPRC-approved guidelines for hedging arrangements to manage fuel and purchased power costs related to customers covered by its FPPAC. The table above includes $5.5 million of current assets, $0.2 million of deferred charges, $17.3 million of current liabilities, and $2.7 million of deferred credits related to this plan at September 30, 2022. At December 31, 2021, amounts related to this plan included $0.2 million of current assets and $1.8 million of current liabilities. At September 30, 2022 and December 31, 2021, PNM had no amounts recognized for the legal right to reclaim cash collateral. However, at both September 30, 2022 and December 31, 2021, amounts posted as cash collateral under margin arrangements were $0.5 million, which is included in other current assets on the Condensed Consolidated Balance Sheets. At September 30, 2022 and December 31, 2021, obligations to return cash collateral were $0.2 million and $0.9 million, which is included in other current liabilities on the Condensed Consolidated Balance Sheets. The effects of mark-to-market commodity derivative instruments on PNM’s revenues and cost of energy during the three and nine months ended September 30, 2022 and 2021 were less than $0.1 million. Commodity derivatives had no impact on OCI for any of the periods presented. Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM's net buy (sell) volume positions: Economic Hedges MMBTU MWh September 30, 2022 — 302,880 December 31, 2021 — 122,400 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. Contractual liability represents those commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. Cash collateral posted under these contracts does not reflect letters of credit under the Company's revolving credit facilities that may have been issued as collateral. Net exposure is the net contractual liability for all contracts, including those designated as normal purchase and normal sale, offset by existing collateral and by any offsets available under master netting agreements, including both assets and liability positions. At September 30, 2022, PNM had $20.1 million of contractual liability, zero posted cash collateral, and $14.9 million of net exposure related to these contingent requirements for contracts in a net liability position. At December 31, 2021, PNM had no such contracts in a net liability position. Non-Derivative Financial Instruments The carrying amounts reflected on the Condensed Consolidated Balance Sheets approximate fair value for cash, receivables, and payables due to the short period of maturity. 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. See Note 11. At September 30, 2022 and December 31, 2021, the fair value of investment securities included $310.2 million and $394.5 million for the NDT and $66.5 million and $68.6 million for the mine reclamation trusts. PNM records a realized loss as an impairment for any available-for-sale debt security that has a fair value that is less than its carrying value. At September 30, 2022 and December 31, 2021, PNM had no available-for-sale debt securities for which carrying value exceeds fair value and there are no impairments considered to be “other than temporary” that are included in AOCI and not recognized in earnings. All gains and losses resulting from sales and changes in the fair value of equity securities are recognized immediately in earnings. Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ (2,210) $ (309) $ 1,735 $ 5,931 Net gains (losses) from equity securities still held (4,061) (3,153) (52,320) 2,388 Total net gains (losses) on equity securities (6,271) (3,462) (50,585) 8,319 Available-for-sale debt securities: Net gains (losses) on debt securities (9,465) 5,410 (33,519) 7,789 Net gains (losses) on investment securities $ (15,736) $ 1,948 $ (84,104) $ 16,108 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 $(7.1) million and $(28.7) million for the three and nine months ended September 30, 2022 and $0.6 million and $1.2 million for the three and nine months ended September 30, 2021. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Proceeds from sales $ 92,371 $ 128,683 $ 323,251 $ 396,870 Gross realized gains 2,366 10,986 20,089 30,290 Gross realized (losses) (6,908) (6,527) (23,109) (17,776) At September 30, 2022, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 38,433 After 1 year through 5 years 64,326 After 5 years through 10 years 70,355 After 10 years through 15 years 15,098 After 15 years through 20 years 11,897 After 20 years 30,072 $ 230,181 Fair Value Disclosures The Company determines the fair values of its derivative and other financial instruments based on the hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are 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. 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 values 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. 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, when applicable, 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 Company has no Level 3 investments as of September 30, 2022 and December 31, 2021. Management of the Company independently verifies the information provided by pricing services. Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unrealized Gains (In thousands) September 30, 2022 Cash and cash equivalents $ 15,385 $ 15,385 $ — Equity securities: Corporate stocks, common 59,781 59,781 — Corporate stocks, preferred 5,955 1,314 4,641 Mutual funds and other 65,360 65,360 — Available-for-sale debt securities: U.S. government 43,175 43,175 — $ 1,182 International government 9,540 — 9,540 318 Municipals 42,287 — 42,287 9 Corporate and other 135,179 135,179 2,635 $ 376,662 $ 185,015 $ 191,647 $ 4,144 December 31, 2021 Cash and cash equivalents $ 7,895 $ 7,895 $ — Equity securities: Corporate stocks, common 97,626 97,626 — Corporate stocks, preferred 9,114 3,775 5,339 Mutual funds and other 75,285 75,241 44 Available-for-sale debt securities: U.S. government 43,128 13,204 29,924 $ 214 International government 16,001 — 16,001 1,508 Municipals 47,050 — 47,050 1,807 Corporate and other 167,027 — 167,027 12,212 $ 463,126 $ 197,741 $ 265,385 $ 15,741 The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below: Carrying Amount Fair Value September 30, 2022 (In thousands) PNMR $ 4,078,184 $ 3,694,753 PNM 2,000,635 1,763,306 TNMP 1,077,977 931,447 December 31, 2021 PNMR $ 3,698,919 $ 3,915,010 PNM 1,881,110 1,975,987 TNMP 918,050 1,039,023 The carrying amount and fair value of the Company’s other investments presented on the Condensed Consolidated Balance Sheets are not material and not shown in the above table. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation PNMR has various stock-based compensation programs, which provide restricted stock awards 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. Certain restricted stock awards are subject to achieving performance or market targets. Other awards of restricted stock are only subject to time vesting requirements. Restricted stock expected to be awarded under the PEP for performance periods ending after 2023 no longer have market targets. Additional information concerning stock-based compensation under the PEP is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Restricted stock under the PEP refers to awards of stock subject to vesting, performance, or market conditions rather than to shares with contractual post-vesting restrictions. Generally, the awards vest ratably over three years from the grant date of the award. However, awards with performance or market conditions vest upon satisfaction of those conditions. In addition, plan provisions provide that upon retirement, participants become 100% vested in certain stock awards. The vesting period for awards of restricted stock to non-employee members of the Board is one-year. 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 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 as required service is provided and is adjusted periodically to reflect the level of achievement expected to be attained. Compensation expense related to market-based shares is recognized ratably over the measurement period, regardless of the actual level of achievement, provided the employees meet their service requirements. At September 30, 2022, PNMR had unrecognized expense related to stock awards of $5.6 million, which is expected to be recognized over an average of 1.7 years. The grant date fair value for restricted stock and stock awards with internal PNMR 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 that will not be received prior to vesting. The grant date fair value is 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 were determined using Monte Carlo simulation models, which provide grant date fair values that include an expectation of the number of shares to vest at the end of the measurement period. The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Nine Months Ended September 30, Restricted Shares and Performance Based Shares 2022 2021 Expected quarterly dividends per share $ 0.3475 $ 0.3275 Risk-free interest rate 1.46 % 0.32 % Market-Based Shares Dividend yield — % 2.76 % Expected volatility — % 33.69 % Risk-free interest rate — % 0.29 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares for the nine months ended September 30, 2022: Restricted Stock Shares Weighted- Outstanding at December 31, 2021 167,270 $ 43.71 Granted 193,943 41.04 Released (172,409) 42.48 Forfeited (2,709) 42.48 Outstanding at September 30, 2022 186,095 $ 42.09 PNMR’s current stock-based compensation program provides for performance targets through 2024 and market targets through 2023. Included, as granted and released, in the table above are 92,343 previously awarded shares that were earned for the 2019 - 2021 performance measurement period and ratified by the Board in February 2022 (based upon achieving targets at below "maximum" levels). Excluded from the table above are 143,553, 144,175, and 150,050 shares for the three-year performance periods ending in 2022, 2023 and 2024 that will be awarded if all performance and market criteria are achieved at maximum levels and all executives remain eligible. The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares: Nine Months Ended September 30, Restricted Stock 2022 2021 Weighted-average grant date fair value $ 41.04 $ 43.48 Total fair value of restricted shares that vested (in thousands) $ 7,804 $ 10,018 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Financing | FinancingThe 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. Each of the Company’s revolving credit facilities, term loans, and other debt agreements contains a single financial covenant that requires the maintenance of a debt-to-capitalization ratio. For the PNMR agreements this ratio must be maintained at less than or equal to 70%, and for the PNM and TNMP agreements this ratio must be maintained at less than or equal to 65%. The Company’s revolving credit facilities, term loans, and other debt agreements 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 informational financing filing and short-term financing plan with the NMPRC. Additional information concerning financing activities is contained in Note 7 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Financing Activities On August 5, 2022, PNM entered into a $225.0 million delayed-draw term loan agreement (the "PNM 2022 Delayed-Draw Term Loan"), among PNM, the lender parties thereto, and Royal Bank of Canada, as administrative agent. PNM initially drew $180.0 million to repay the $75.0 million PNM 2021 Term Loan ahead of its December 2022 maturity and for other corporate purposes. On September 30, 2022, PNM drew the remaining $45.0 million and used the proceeds for general corporate purposes. Draws on the PNM 2022 Delayed-Draw Term Loan bear interest at a variable rate, which was 3.53% at September 30, 2022 and must be repaid on or before February 5, 2024. At December 31, 2021, PNM had $104.5 million PCRBs outstanding with a mandatory remarketing date of June 1, 2022, consisting of $36.0 million at 1.05% issued by the Maricopa County, Arizona Pollution Control Corporation with a final maturity of January 2038; $37.0 million at 2.125% issued by the City of Farmington, New Mexico with a final maturity of June 2040; $11.5 million at 1.20% issued by the City of Farmington, New Mexico with a final maturity of June 2040; and $20.0 million at 2.45% issued by the City of Farmington, New Mexico with a final maturity of September 2042. On June 1, 2022, PNM remarketed to new investors the $36.0 million and $37.0 million series in the tax-exempt market at 3.00% with a mandatory put date of June 1, 2024. PNM purchased and redeemed the remaining two series of PCRBs, totaling $31.5 million, on June 1, 2022. On May 2, 2022, PNMR entered into two separate 20-month hedging agreements for $150.0 million and $200.0 million, to hedge an equal amount of its variable rate debt, whereby it effectively established a fixed interest rate of 2.65%, plus a customary spread over SOFR, which is subject to change if there is a change in PNMR's credit rating. On May 20, 2022, PNMR entered into a third 19-month hedging agreement for $100.0 million to hedge an equal amount of its variable rate debt, whereby it effectively established a fixed interest rate of 2.52%, plus a customary spread over SOFR, which is subject to change if there is a change in PNMR's credit rating. On September 30, 2022, PNM entered into two additional 15-month hedging agreements for $100.0 million each, totaling $200.0 million, to hedge an equal amount of its variable rate debt, whereby it effectively established fixed interest rates of 4.17% and 4.18%, plus a customary spread over SOFR, which is subject to change if there is a change in PNMR's credit rating. These hedge agreements are accounted for as cash flow hedges. The fair value of these hedges was a gain of $8.6 million at September 30, 2022 which is included in Other deferred charges on the Condensed Consolidated Balance Sheets. The fair values were determined using Level 2 inputs under GAAP, including using forward SOFR curves under the mid-market convention to discount cash flows over the remaining term of the agreements. On October 31, 2022, PNM entered into two additional 14-month hedging agreements for $100.0 million each, totaling $200.0 million, to hedge an equal amount of its variable rate debt, whereby it effectively established fixed interest rates of 4.66% and 4.65%, plus a customary spread over SOFR, which is subject to change if there is a change in PNMR's credit rating. These hedge agreements will also be accounted for as cash flow hedges. On April 27, 2022, TNMP entered into an agreement (the "TNMP 2022 Bond Purchase Agreement") with institutional investors for the sale of $160.0 million aggregate principal amount of two series of TNMP first mortgage bonds (the "TNMP 2022 Bonds") offered in private placement transactions. TNMP issued the first series of $65.0 million of the TNMP 2022 Bonds on May 12, 2022, at a 4.13% interest rate, due May 12, 2052, and the second series of $95.0 million of the TNMP 2022 Bonds on July 28, 2022, at a 3.81% interest rate, due July 28, 2032. The proceeds were used to repay borrowings under the TNMP Revolving Credit Facility and for other corporate purposes. The TNMP 2022 Bonds are subject to continuing compliance with the representations, warranties and covenants set forth in the supplemental indenture governing the TNMP 2022 Bonds. The terms of the supplemental indentures governing the TNMP 2022 Bonds include the customary covenants discussed above. In the event of a change of control, TNMP will be required to offer to prepay the TNMP 2022 Bonds at par. However, the definition of change of control in the supplemental indentures governing the TNMP 2022 Bonds will not be triggered by the close of the Merger. TNMP has the right to redeem any or all of the TNMP 2022 Bonds prior to their maturity, subject to payment of a customary make-whole premium. On May 18, 2021, PNMR entered into a $1.0 billion delayed-draw term loan agreement (the “PNMR 2021 Delayed-Draw Term Loan”), among PNMR, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent. In 2021, PNMR drew $900.0 million to repay and terminate existing indebtedness as discussed in Note 7 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. On January 24, 2022, PNMR drew the remaining $100.0 million available. On May 20, 2022, PNMR amended and restated the PNMR 2021 Delayed-Draw Term Loan, extending its maturity to May 18, 2025 and providing for assignment of the term loan to Avangrid upon completion of the Merger. Draws on the PNMR 2021 Delayed-Draw Term Loan bear interest at a variable rate which was 4.13% at September 30, 2022. On July 14, 2021, TNMP entered into the TNMP 2021 Bond Purchase Agreement with institutional investors for the sale of $65.0 million aggregate principal amount of the TNMP 2021 Bonds offered in private placement transactions. On August 16, 2021, TNMP issued all $65.0 million of the TNMP 2021 Bonds at 2.44% with a maturity of August 15, 2035 and used the proceeds to repay existing debt and for other corporate purposes. The TNMP 2021 Bonds are subject to continuing compliance with the representations, warranties and covenants set forth in the supplemental indenture governing the TNMP 2021 Bonds. The terms of the supplemental indenture governing the TNMP 2021 Bonds include the customary covenants discussed above. In the event of a change of control, TNMP will be required to offer to prepay the TNMP 2021 Bonds at par. However, the definition of change of control in the supplemental indenture governing the TNMP 2021 Bonds will not be triggered by the close of the Merger. TNMP has the right to redeem any or all of the TNMP 2021 Bonds prior to their maturity, subject to payment of a customary make-whole premium. On July 14, 2021, PNM entered into the PNM 2021 Note Purchase Agreement with institutional investors for the sale and issuance of $160.0 million aggregate principal amount of the PNM 2021 SUNs offered in private placement transactions. The PNM 2021 SUNs were issued on July 14, 2021. PNM issued $80.0 million of the PNM 2021 SUNs at 2.59%, due July 15, 2033, and another $80.0 million at 3.14%, due July 15, 2041. Proceeds from the PNM 2021 SUNs were used to repay the total amount of $160.0 million of PNM's 5.35% SUNs, at par, earlier than their scheduled maturity of October 1, 2021. The PNM 2021 Note Purchase Agreement includes the customary covenants discussed above. In the event of a change of control, PNM will be required to offer to prepay the PNM 2021 SUNs at par. Although there are customary change of control provisions in the PNM debt agreements, the change of control provisions in these agreements, including the PNM 2021 Note Purchase Agreement, are not triggered by the close of the Merger. PNM has the right to redeem any or all of the PNM 2021 SUNs prior to their maturities, subject to payment of a customary make-whole premium. On June 18, 2021, PNM entered into a $75.0 million term loan (the "PNM 2021 Term Loan") between PNM and Bank of America, N.A., as lender. The PNM 2021 Term Loan was used to repay the PNM 2019 $40.0 million Term Loan and for other corporate purposes and was set to mature in December 2022. On August 5, 2022, the PNM 2021 Term Loan was prepaid without penalty with proceeds from the PNM 2022 Delayed-Draw Term Loan. On March 9, 2018, PNMR issued $300.0 million aggregate principal amount of 3.25% SUNs (the “PNMR 2018 SUNs”), which matured on March 9, 2021. On December 22, 2020, PNMR entered into the $300.0 million PNMR 2020 Delayed-Draw Term Loan with a January 2022 maturity and drew $80.0 million to refinance existing indebtedness and for other corporate purposes. On March 9, 2021, PNMR utilized the remaining $220.0 million of capacity under the PNMR 2020 Delayed-Draw Term Loan to repay an equivalent amount of the PNMR 2018 SUNs. The remaining $80.0 million repayment of the PNMR 2018 SUNs was funded through borrowings under the PNMR Revolving Credit Facility. The PNMR 2020 Delayed-Draw Term Loan was prepaid without penalty in May 2021 with proceeds from the PNMR 2021 Delayed-Draw Term Loan. At September 30, 2022, variable interest rates were 4.13% on the PNMR 2021 Delayed-Draw Term Loan that matures in May 2025 and 3.53% on the PNM 2022 Delayed-Draw Term Loan that matures in February 2024. As discussed above, at September 30, 2022, PNMR has active hedging arrangements to effectively fix the interest rate on $650.0 million of its consolidated, variable rate debt. Short-term Debt and Liquidity 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. On May 20, 2022, both PNMR and PNM extended the facilities to October 31, 2024 with two one-year extension options that, if exercised, would extend the maturity through October 2026, subject to approval by a majority of the lenders. Also on May 20, 2022, the $40.0 million PNM 2017 New Mexico Credit Facility was extended to May 20, 2026. The TNMP Revolving Credit Facility had a financing capacity of $75.0 million secured by $75.0 million aggregate principal amount of TNMP first mortgage bonds. On March 11, 2022, the TNMP Revolving Credit Facility was amended to extend the maturity to September 23, 2024, with two one-year extension options that, if exercised, would extend the maturity to September 2026, subject to approval by a majority of the lenders. The amended TNMP Revolving Credit Facility also contained an accordion feature that would allow TNMP to increase the size of the revolver from $75.0 million to $100.0 million, subject to certain conditions. On May 13, 2022, TNMP exercised the accordion feature and increased the capacity of the TNMP Revolving Credit Facility to $100.0 million, secured by $100.0 million aggregate principal amount of TNMP first mortgage bonds. PNMR Development had a $40.0 million revolving credit facility that was terminated on May 18, 2021. Variable interest rates under the PNMR, PNM, and TNMP revolving credit facilities are based on SOFR. Short-term debt outstanding consists of: September 30, December 31, Short-term Debt 2022 2021 (In thousands) PNM: PNM Revolving Credit Facility $ — $ 7,400 — 7,400 TNMP Revolving Credit Facility 3,000 400 PNMR Revolving Credit Facility 57,200 54,900 $ 60,200 $ 62,700 At September 30, 2022, the weighted average interest rates were 3.97% for the TNMP Revolving Credit Facility and 4.47% for the PNMR Revolving Credit Facility. In addition to the above borrowings, PNMR, PNM, and TNMP had letters of credit outstanding of $3.4 million, zero, and zero at September 30, 2022 that reduce the available capacity under their respective revolving credit facilities. PNMR also had $30.3 million of letters of credit outstanding under the WFB LOC Facility. The above table excludes intercompany debt. As of September 30, 2022 and December 31, 2021, neither PNM, TNMP, nor PNMR Development had any intercompany borrowings from PNMR. PNMR had $6.4 million in intercompany borrowings from PNMR Development at both September 30, 2022 and December 31, 2021. 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 for three separate tranches, each of $50.0 million, of its variable rate debt. On March 23, 2021, the 1.926% fixed interest rate hedge agreement expired according to its terms and the remaining agreements expired on May 23, 2021. At October 21, 2022, PNMR, PNM, and TNMP had availability of $241.2 million, $400.0 million, and $96.5 million under their respective revolving credit facilities, including reductions of availability due to outstanding letters of credit. PNM also had $40.0 million of availability under the PNM 2017 New Mexico Credit Facility. Total availability at October 21, 2022, on a consolidated basis, was $777.7 million for PNMR. As of October 21, 2022, PNM, TNMP, and PNMR Development had no borrowings from PNMR under their intercompany loan agreements. However, PNMR had $6.4 million in intercompany borrowings from PNMR Development. At October 21, 2022, PNMR, PNM, and TNMP had invested cash of $0.9 million, $14.9 million, and zero. The Company’s debt arrangements have various maturities and expiration dates. PNM has $55.0 million of SUNs that mature in May 2023 and $130.0 million of PCRBs that mature in June 2023. Additional information on debt maturities is contained in Note 7 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. The Company presents the service cost component of its net periodic benefit costs in administrative and general expenses and the non-service costs components in other income (deductions), net of amounts capitalized or deferred to regulatory assets and liabilities, on the Condensed Consolidated Statements of Earnings. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of accumulated periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Additional information concerning pension and OPEB plans is contained in Note 11 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Annual net periodic benefit cost for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year. Differences between TNMP's annual net periodic costs (income) and amounts included in its regulated rates are deferred to regulatory assets or liabilities, for recovery or refund in future rate proceedings. PNM Plans The following table presents the components of the PNM Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 2 $ 5 $ — $ — Interest cost 4,215 4,036 479 476 90 90 Expected return on plan assets (7,140) (7,133) (1,088) (1,042) — — Amortization of net loss 3,948 4,541 — — 81 99 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 1,023 $ 1,444 $ (607) $ (561) $ 171 $ 189 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 6 $ 18 $ — $ — Interest cost 12,643 12,107 1,437 1,430 270 271 Expected return on plan assets (21,422) (21,398) (3,264) (3,125) — — Amortization of net loss 11,846 13,624 — — 245 296 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 3,067 $ 4,333 $ (1,821) $ (1,677) $ 515 $ 567 PNM did not make any contributions to its pension plan trust in the nine months ended September 30, 2022 and 2021 and does not anticipate making any contributions to the pension plan in 2022 through 2026 based on current law, funding requirements, and estimates of portfolio performance. In 2027 PNM does anticipate making a contribution of $0.6 million based on current law, funding requirements, and estimates of portfolio performance. Funding assumptions were developed using a discount rate of 5.0%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM did not make any cash contributions to the OPEB trust in the nine months ended September 30, 2022 and 2021, however, a portion of the disbursements attributable to the OPEB trust is paid by PNM and are therefore considered to be contributions to the OPEB plan. Payments by PNM on behalf of the PNM OPEB plan were $0.9 million and $2.4 million for the three and nine months ended September 30, 2022 and $1.0 million and $2.7 million for the three and nine months ended September 30, 2021. These payments are expected to total $3.4 million in 2022 and $15.1 million for 2023-2027. Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.4 million and $1.0 million in the three and nine months ended September 30, 2022 and $0.3 million and $1.1 million for the three and nine months ended September 30, 2021 and are expected to total $1.3 million during 2022 and $5.8 million for 2023-2027. TNMP Plans The following table presents the components of the TNMP Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 9 $ 12 $ — $ — Interest cost 430 435 77 77 2 4 Expected return on plan assets (618) (795) (104) (101) — — Amortization of net (gain) loss 233 311 (130) (81) — 8 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 45 $ (49) $ (148) $ (93) $ 2 $ 12 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 27 $ 34 $ — $ — Interest cost 1,290 1,306 231 231 8 13 Expected return on plan assets (1,854) (2,386) (312) (304) — — Amortization of net (gain) loss 699 935 (390) (242) — 25 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 135 $ (145) $ (444) $ (281) $ 8 $ 38 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 proceedings in the normal course of its business. See Note 12. 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. 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, or commitments will have a material effect on its financial condition, results of operations, or cash flows. Additional information concerning commitments and contingencies is contained in Note 16 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. Commitments and Contingencies Related to the Environment Nuclear Spent Fuel and Waste Disposal Nuclear power plant operators are required to enter into spent fuel disposal contracts with the DOE that require the DOE to accept and dispose of all spent nuclear fuel and other high-level radioactive wastes generated by domestic power reactors. Although the Nuclear Waste Policy Act required the DOE to develop a permanent repository for the storage and disposal of spent nuclear fuel by 1998, the DOE announced that it would not be able to open the repository by 1998 and sought to excuse its performance of these requirements. In November 1997, the DC Circuit issued a decision preventing the DOE from excusing its own delay but refused to order the DOE to begin accepting spent nuclear fuel. Based on this decision and the DOE’s delay, a number of utilities, including APS (on behalf of itself and the other PVNGS owners, including PNM), filed damages actions against the DOE in the Court of Federal Claims. The lawsuits filed by APS alleged that damages were incurred due to DOE’s continuing failure to remove spent nuclear fuel and high-level waste from PVNGS. In August 2014, APS and the DOE entered into a settlement agreement that established a process for the payment of claims for costs incurred through December 31, 2019. In July 2020, APS accepted the DOE's extension of the settlement agreement for recovery of costs incurred through December 31, 2022. Under the settlement agreement, APS must submit claims annually for payment of allowable costs. PNM records estimated claims on a quarterly basis. 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 $59.6 million (in 2019 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 September 30, 2022 and December 31, 2021, PNM had a liability for interim storage costs of $12.0 million and $13.0 million, which is included in other deferred credits. PVNGS has sufficient capacity at its on-site Independent Spent Fuel Storage Installation (“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 U.S. 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. The Energy Transition Act In 2019, the Governor signed into New Mexico state law Senate Bill 489, known as the Energy Transition Act (“ETA”). The ETA became effective as of June 14, 2019 and sets a statewide standard that requires investor-owned electric utilities to have specified percentages of their electric-generating portfolios be from renewable and zero-carbon generating resources. The ETA amends the REA and requires utilities operating in New Mexico to have renewable portfolios equal to 40% by 2025, 50% by 2030, 80% by 2040, and 100% zero-carbon energy by 2045. The ETA also amends sections of the REA to allow for the recovery of undepreciated investments and decommissioning costs related to qualifying EGUs that the NMPRC has required be removed from retail jurisdictional rates, provided replacement resources to be included in retail rates have lower or zero-carbon emissions. The ETA requires the NMPRC to review and approve utilities’ annual renewable portfolio plans to ensure compliance with the RPS. The ETA also directs the New Mexico Environmental Improvement Board to adopt standards of performance that limit CO 2 emissions to no more than 1,100 lbs. per MWh beginning January 1, 2023 for new or existing coal-fired EGUs with original installed capacities exceeding 300 MW. The ETA provides for a transition from fossil-fuel generation resources to renewable and other carbon-free resources through certain provisions relating to the abandonment of coal-fired generating facilities. These provisions include the use of energy transition bonds, which are designed to be highly rated bonds that can be issued to finance certain costs of abandoning coal-fired facilities that are retired prior to January 1, 2023 for facilities operated by a “qualifying utility,” or prior to January 1, 2032 for facilities that are not operated by a qualifying utility. The amount of energy transition bonds that can be issued to recover abandonment costs is limited to the lesser of $375.0 million or 150% of the undepreciated investment of the facility as of the abandonment date. Proceeds provided by energy transition bonds must be used only for purposes related to providing utility service to customers and to pay energy transition costs (as defined by the ETA). These costs may include plant decommissioning and coal mine reclamation costs provided those costs have not previously been recovered from customers or disallowed by the NMPRC or by a court order. Proceeds from energy transition bonds may also be used to fund severances for employees of the retired facility and related coal mine and to promote economic development, education and job training in areas impacted by the retirement of the coal-fired facilities. Energy transition bonds must be issued under a NMPRC-approved financing order, are secured by “energy transition property,” are non-recourse to the issuing utility, and are repaid by a non-bypassable charge paid by all customers of the issuing utility. These customer charges are subject to an adjustment mechanism designed to provide for timely and complete payment of principal and interest due under the energy transition bonds. The ETA also provides that utilities must obtain NMPRC approval of competitively procured replacement resources that shall be evaluated based on their cost, economic development opportunity, ability to provide jobs with comparable pay and benefits to those lost upon retirement of the facility, and that do not exceed emissions thresholds specified in the ETA. In determining whether to approve replacement resources, the NMPRC must give preference to resources with the least environmental impacts, those with higher ratios of capital costs to fuel costs, and those located in the school district of the abandoned facility. The ETA also provides for the procurement of energy storage facilities and gives utilities discretion to maintain, control, and operate these systems to ensure reliable and efficient service. The ETA will have a significant impact on PNM’s future generation portfolio, including PNM’s retirement of SJGS in 2022 and the planned Four Corners exit in 2024 (subject to regulatory approval). PNM cannot predict the full impact of the ETA or the outcome of its pending and potential future generating resource abandonment and replacement resource filings with the NMPRC. See additional discussion in Note 12 of PNM’s SJGS and Four Corners Abandonment Applications. 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 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, 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. In 2017, EPA published revisions to the regional haze rule in the Federal Register. 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. EPA’s decision to revisit the 2017 rule is not a determination on the merits of the issues raised in the petitions. On December 20, 2018, EPA released a new 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 CAA and other applicable regulations. On August 20, 2019, EPA finalized the draft guidance that was previously released as a companion to the regional haze rule revisions, and EPA clarified that guidance in a memorandum issued on July 8, 2021. SIPs for the second planning period were due in July 2021, which deadline NMED was unable to meet. NMED is currently preparing its SIP for the second compliance period and has notified PNM that it will not be required to submit a regional haze four-factor analysis for SJGS since PNM retired its share of SJGS in 2022. On April 7, 2022, EPA announced its intent to make findings by August 31, 2022 of the states that have failed to submit regional haze implementation plans for the second planning period and directed states to file their plans by August 15, 2022 to avoid inclusion in that finding. Despite that announcement, on April 13, 2022, four environmental groups sued EPA in the U.S. District Court for the Northern District of California seeking to compel EPA to issue a finding that 34 states failed to submit regional haze SIPs for the second planning period. On August 30, 2022, EPA published in the Federal Register an official "Finding of Failure to Submit" for states, including New Mexico, that have not yet submitted a round 2 regional haze SIP. This action by EPA starts a 2-year clock for it to issue a Federal Implementation Plan (FIP). NMED’s current timeline indicates the proposed SIP will be submitted to EPA by October 2023. Carbon Dioxide Emissions On August 3, 2015, EPA established standards to limit CO 2 emissions from power plants, including (1) Carbon Pollution Standards for new, modified, and reconstructed power plants; and (2) the Clean Power Plan for existing power plants. Multiple states, utilities, and trade groups filed petitions for review in the DC Circuit to challenge both the Carbon Pollution Standards for new sources and the Clean Power Plan for existing sources in separate cases. Challengers successfully petitioned the US Supreme Court for a stay of the Clean Power Plan. However, before the DC Circuit could issue an opinion regarding either the Carbon Pollution Standards or the Clean Power Plan, the Trump Administration asked that the case be held in abeyance while the rules were reevaluated, which was granted. On June 19, 2019, EPA repealed the Clean Power Plan, promulgated the ACE Rule, and revised the implementing regulations for all emission guidelines. EPA set the BSER for existing coal-fired power plants as heat rate efficiency improvements based on a range of "candidate technologies" that can be applied inside the fence line of an individual facility. On September 17, 2019, the DC Circuit issued an order that granted motions by various petitioners, including industry groups and EPA, to dismiss the cases challenging the Clean Power Plan as moot due to EPA’s issuance of the ACE Rule. The ACE Rule was also challenged, and on January 19, 2021, the DC Circuit issued an opinion in American Lung Association and American Public Health Association v. EPA, et al., finding that EPA misinterpreted the CAA when it determined that the language of Section 111 unambiguously barred consideration of emissions reduction options that were not applied at the source. As a result, the court vacated the ACE Rule and remanded the record back to the EPA for further consideration consistent with the court's opinion. While the DC Circuit rejected the ACE Rule, it did not reinstate the Clean Power Plan. EPA filed a motion seeking a partial stay of the mandate as to the repeal of the Clean Power Plan, to ensure the court’s order will not render effective the now out-of-date Clean Power Plan. On February 22, 2021, the U.S. Court of Appeals for the DC Circuit granted EPA’s motion, indicating that it would withhold issuance of the mandate with respect to the repeal of the Clean Power Plan until EPA responds to the court’s remand in a new rulemaking action. EPA has commenced the rulemaking process under section 111 to establish new emission guidelines for CO 2 emissions from existing power plants. The agency indicates that it plans to publish a draft rule in March 2023 with no timetable yet for a final rule. Four petitions for writ of certiorari were filed in the US Supreme Court seeking review of the DC Circuit’s January opinion vacating the ACE Rule and the repeal of the Clean Power Plan. The petitioners include (1) West Virginia and 18 other states that had intervened to defend the ACE Rule, (2) North American Coal Corporation, (3) North Dakota (separately from the other states), and (4) Westmoreland Mining Holdings LLC. On October 29, 2021, the US Supreme Court granted the four petitions for writs of certiorari. Oral arguments in the US Supreme Court were held on February 28, 2022 and on June 30, 2022, the US Supreme Court ruled in the case. The US Supreme Court held 6 to 3 that the "generation shifting" approach in the Clean Power Plan exceeded the powers granted to EPA by Congress, though the Court did not address the related issue of whether Section 111 of the CAA only authorizes EPA to require measures that can be implemented entirely within the fenceline at an individual source. Of broader significance in administrative law, the Court also expressly invoked the major question doctrine as a basis for rejecting EPA's statutory interpretation. The basic principle of the major question doctrine is that, if an agency seeks to decide an issue of "vast economic or political significance," its action must be supported by clear statutory authorization. In cases where there is no authority, courts need not defer to the agency's statutory interpretation. The decision sets legal precedent for future rulemakings by EPA and other federal regulatory agencies whereby the agencies' authority may be limited based upon similar reasoning. The litigation over the Carbon Pollution Standards remains held in abeyance but could be reactivated by the parties upon a determination by the court that the Biden Administration is unlikely to finalize the revisions proposed in 2018 and that reconsideration of the rule has concluded. On January 27, 2021, President Biden signed an extensive Executive Order aimed at addressing climate change concerns domestically and internationally. The order is intended to build on the initial climate-related actions the Biden Administration took on January 20, 2021. It addresses a wide range of issues, including establishing climate change concerns as an essential element of U.S. foreign and security policy, identifying a process to determine the U.S. INDC under the Paris Agreement, and establishing a Special Presidential Envoy for Climate that will sit on the National Security Council. On April 22, 2021, at the Earth Day Summit, as part of the U.S.’s re-entry into the Paris Agreement, President Biden unveiled the goal to cut U.S. emissions by 50% - 52% from 2005 levels by 2030, nearly double the GHG emissions reduction target set by the Obama Administration. The 2030 goal joins President Biden’s other climate goals which include a carbon pollution-free power sector by 2035 and a net-zero emissions economy by no later than 2050. PNM’s review of the GHG emission reductions standards that may occur as a result of legislation or regulation under the Biden Administration and in response to the court's ruling on the ACE Rule is ongoing. PNM cannot predict the impact these standards may have on its operations or a range of the potential costs of compliance, if any. National Ambient Air Quality Standards (“NAAQS”) The CAA requires EPA to set NAAQS for pollutants reasonably anticipated to endanger public health or welfare. EPA has set NAAQS for certain pollutants, including NOx, SO 2 , ozone, and particulate matter. NOx Standard – On April 18, 2018, EPA published the final rule to retain the current primary health-based NOx standards of which NO 2 is the constituent of greatest concern and is the indicator for the primary NAAQS. EPA concluded that the current 1-hour and annual primary NO 2 standards are requisite to protect public health with an adequate margin of safety. The rule became effective on May 18, 2018. PNM maintains compliance with the current NOx NAAQS standards. SO 2 Standard – On February 25, 2019, EPA announced its final decision to retain, without changes, the primary health-based NAAQS for SO 2 . Specifically, EPA will retain the current 1-hour standard for SO 2 , which is 75 parts per billion, based on the 3-year average of the 99th percentile of daily maximum 1-hour SO 2 concentrations. PNM maintains compliance with the current SO 2 NAAQS standards. On March 26, 2021, EPA published in the Federal Register the initial air quality designations for all remaining areas not yet designated under the 2010 SO 2 Primary NAAQS. This is EPA’s fourth and final set of actions to designate areas of the U.S. for the 2010 SO 2 NAAQS. All areas of New Mexico have been designated attainment/unclassifiable through four rounds of designations by EPA. Ozone Standard – On October 1, 2015, EPA finalized the new ozone NAAQS and lowered both the primary and secondary 8-hour standard from 75 to 70 parts per billion. With ozone standards becoming more stringent, fossil-fueled generation units will come under increasing pressure to reduce emissions of NOx and volatile organic compounds since these are the pollutants that form ground-level ozone. On July 13, 2020, EPA proposed to retain the existing ozone NAAQS based on a review of the full body of currently available scientific evidence and exposure/risk information. EPA finalized its decision to retain the ozone NAAQS in a notice published on December 31, 2020 making it immediately effective. The Center for Biological Diversity filed a lawsuit on February 25, 2021, challenging the decision to retain the existing ozone standard. In response to lawsuits brought by states and environmental groups, on October 29, 2021, EPA filed a motion in the DC Circuit indicating it will reconsider the 2020 ozone NAAQS. In April 2022, EPA released an External Review Draft Policy Assessment for the reconsideration of the ozone NAAQS, in which EPA Staff recommended that EPA retain the existing primary and secondary ozone NAAQS. EPA expects to issue a proposed rule in April 2023 with no timetable yet for a final rule. On November 10, 2015, EPA proposed a rule revising its Exceptional Events Rule, which outlines the requirements for excluding air quality data (including ozone data) from regulatory decisions if the data is affected by events outside an area’s control. The proposed rule is important in light of the more stringent ozone NAAQS final rule since western states like New Mexico and Arizona are subject to elevated background ozone transport from natural local sources, such as wildfires and stratospheric inversions, and transported via winds from distant sources in other regions or countries. EPA finalized the rule on October 3, 2016 and released related guidance in 2018 and 2019 to help implement its new exceptional events policy. During 2017 and 2018, EPA released rules establishing area designations for ozone. In those rules, San Juan County, New Mexico, where SJGS and Four Corners are located, is designated as attainment/unclassifiable and only a small area in Doña Ana County, New Mexico is designated as marginal non-attainment. Although Afton Generating Station is located in Doña Ana County, it is not located within the small area designated as non-attainment for the 2015 ozone standard. The rule became effective May 8, 2018. On November 22, 2019, EPA issued findings that several states, including New Mexico, had failed to submit interstate transport SIPs for the 2015 8-hour ozone NAAQS. In response, in December 2019, NMED published the Public Review Draft of the New Mexico 2013 NAAQS Good Neighbor SIP that demonstrates that there are no significant contributions from New Mexico to downwind problems in meeting the federal ozone standard. NMED has responsibility for bringing the small area in Doña Ana County designated as marginal/non-attainment for ozone into compliance and will look at all sources of NOx and volatile organic compounds. NMED has submitted the required elements for the Sunland Park Ozone Non-attainment Area SIP. This includes a transportation conformity demonstration, a 2017 baseline emissions inventory and emissions statement, and an amendment to the state's Non-attainment Permitting rules at 20.2.79 New Mexico Administrative Code to conform to EPA's SIP Requirements Rule for 2015 Q3 NAAQS (i.e., "implementation rule"). The SIP elements had staggered deadlines and were done in three submissions: (1) the transportation conformity demonstration was completed by the El Paso Metropolitan Planning Organization on behalf of New Mexico in 2019, which is responsible for transportation planning in that area, and the submission received concurrence from EPA and the Federal Highway Administration; (2) the emissions inventory and statement SIP was submitted to EPA in September 2020; and (3) the Non-attainment New Source Review SIP was submitted to EPA on August 10, 2021. On October 15, 2021, EPA proposed to approve New Mexico's SIP to meet the emissions inventory and statement requirements of the CAA for the Sunland Park Ozone Non-Attainment Area. PNM does not believe there will be material impacts to its facilities because of NMED’s non-attainment designation of the small area within Doña Ana County. Until EPA approves attainment designations for the Navajo Nation and releases a proposal to implement the revised ozone NAAQS, PNM is unable to predict what impact the adoption of these standards may have on Four Corners. With respect to EPA's reconsideration of the 2020 decision to retain the 2015 ozone standards, it is expected to be completed by the end of 2023. PNM cannot predict the outcome of this matter. PM Standard – On January 30, 2020, EPA published in the Federal Register a notice announcing the availability of a final Policy Assessment for the Review of the NAAQS for Particulate Matter (the "PA"). The 2020 final PA was prepared as part of the review of the primary and secondary PM NAAQS. In the 2020 final PA, EPA recommended lowering the primary annual PM 2.5 standard to between 8 µg/m3 and 10 µg/m3. However, on April 30, 2020, EPA published a proposed rule to retain the current standards for PM due to uncertainties in the data relied upon in the 2020 final PA and EPA published a notice of that final action on December 18, 2020, making it immediately effective. On January 14, 2021, several states and New York City filed a petition for review in the DC Circuit, challenging EPA’s final rule retaining the current primary and secondary PM NAAQS and a similar lawsuit was filed by the Center for Biological Diversity in the DC Circuit. On June 10, 2021, EPA announced that it will reconsider the previous administration’s December 2020 decision to retain the current primary and secondary PM NAAQS and on October 8, 2021, EPA announced the release of a new draft PA stating that available scientific evidence and technical information indicate that the current standards may not be adequate to protect public health and welfare, as required by the CAA. On June 1, 2022, EPA issued a new final PA that likewise indicates current standards may not be adequate and that available scientific evidence could support lowering the standards. EPA expects to issue a final rule in Spring 2023. PNM maintains compliance with the current PM NAAQS standards and cannot predict the impacts of the outcome of future rulemaking. Cooling Water Intake Structures In 2014, EPA issued a rule establishing national standards for certain cooling water intake structures at existing power plants and other facilities under the Clean Water Act to protect fish and other aquatic organisms by minimizing impingement mortality (the capture of aquatic wildlife on intake structures or against screens) and entrainment mortality (the capture of fish or shellfish in water flow entering and passing through intake structures). To minimize impingement mortality, the rule provides operators of facilities, such as SJGS and Four Corners, seven options for meeting Best Technology Available (“BTA”) standards for reducing impingement. SJGS has a closed-cycle recirculating cooling system, which is a listed BTA and may also qualify for the “ de minimis rate of impingement” based on the design of the intake structure. The permitting authority must establish the BTA for entrainment on a site-specific basis, taking into consideration an array of factors, including endangered species and social costs and benefits. Affected sources must submit source water baseline characterization data to the permitting authority to assist in the determination. Compliance deadlines under the rule are tied to permit renewal and will be subject to a schedule of compliance established by the permitting authority. The rule is not clear as to how it applies and what the compliance timelines are for facilities like SJGS that have a cooling water intake structure and only a multi-sector general stormwater permit. However, EPA has indicated that it is contemplating a December 31, 2023 compliance deadline. PNM is working with EPA regarding this issue and does not expect material changes as a result of any requirements that may be imposed upon SJGS, particularly given the retirement of SJGS in 2022. On May 23, 2018, several environmental groups sued EPA Region IX in the U.S. Court of Appeals for the Ninth Circuit Court over EPA’s failure to timely reissue the Four Corners NPDES permit. The petitioners asked the court to issue a writ of mandamus compelling EPA Region IX to take final action on the pending NPDES permit by a reasonable date. EPA subsequently reissued the NPDES permit on June 12, 2018. The permit did not contain conditions related to the cooling water intake structure rule, as EPA determined that the facility has achieved BTA for both impingement and entrainment by operating a closed-cycle recirculation system. On July 16, 2018, several environmental groups filed a petition for review with EPA’s Environmental Appeals Board ("EAB") concerning the reissued permit. The environmental groups alleged that the permit was reissued in contravention of several requirements under the Clean Water Act and did not contain required provisions concerning certain revised ELG, existing-source regulations governing cooling-water intake structures, and effluent limits for surface seepage and subsurface discharges from coal-ash disposal facilities. On December 19, 2018, EPA withdrew the Four Corners NPDES permit in order to examine issues raised by the environmental groups. Withdrawal of the permit moots the appeal pending before the EAB. EAB thereafter dismissed the environmental groups’ appeal. EPA issued an updated NPDES permit on September 30, 2019. The permit was once again appealed to the EAB and was stayed before the effective date. Oral argument was heard on September 3, 2020. The EAB issued an order denying the petition for review on September 30, 2020. The denial was based on the EAB's determination that the petitioners had failed to demonstrate that review of the permit was warranted on any of the grounds presented in the petition. Thereafter, the Regional Administrator of the EPA signed a notice of final permit decision, and the NPDES permit was issued on November 9, 2020. The permit became effective December 1, 2020 and will expire on November 30, 2025. On January 22, 2021, the environmental groups filed a petition for review of the EAB's decision with the U.S. Court of Appeals for the Ninth Circuit. The September 2019 permit remains in effect pending this appeal. On March 21, 2022, EPA provided notice in the Federal Register of a proposed settlement agreement with the environmental groups. The parties subsequently executed the settlement agreement as of May 2, 2022. Under the settlement, the associated case was administratively closed through September 6, 2023, during which time a third-party consultant will spend 12 months sampling discharges from Four Corners and EPA will spend three months completing an analysis. PNM cannot predict whether the analysis to be conducted under the settlement agreement will result in changes to the NPDES permit, but does not anticipate that it will have a material impact on PNM’s financial positio |
Regulatory and Rate Matters
Regulatory and Rate Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory and Rate Matters | Regulatory and Rate Matters The Company is involved in various regulatory matters, some of which contain contingencies that are subject to the same uncertainties as those described in Note 11. Additional information concerning regulatory and rate matters is contained in Note 17 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. PNMR Merger Regulatory Proceedings On October 20, 2020, PNMR, Avangrid, and Merger Sub entered into the Merger Agreement pursuant to which Merger Sub will merge with and into PNMR, with PNMR surviving the Merger as a wholly-owned subsidiary of Avangrid. Among other conditions, consummation of the Merger is subject to receipt of all required regulatory approvals. In 2021, five federal agencies and the PUCT completed their reviews and approved the Merger, with the NMPRC as the only regulatory agency yet to approve the Merger. The original application before the NMPRC was filed in November 2020. For additional information on the Merger regulatory proceedings, including supplemental regulatory filings that were required due to the Merger Agreement being amended in January 2022, see Note 18. PNM Renewable Energy Portfolio Standard As discussed in Note 11, the ETA amends the REA including removal of diversity requirements and certain customer caps and exemptions relating to the application of the RPS under the REA. 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. The ETA sets a RCT of $60 per MWh using an average annual levelized resource cost basis. PNM makes renewable procurements consistent with the NMPRC approved plans and recovers certain renewable procurement costs from customers through the renewable energy rider billed on a KWh basis. Included in PNM’s approved procurement plans are the following renewable energy resources: • 158 MW of PNM-owned solar-PV facilities • A PPA through 2044 for the output of New Mexico Wind, having a current aggregate capacity of 200 MW, and a PPA through 2035 for the output of Red Mesa Wind, having an aggregate capacity of 102 MW • A PPA through 2040 for 140 MW of output from La Joya Wind II • A PPA through 2042 for the output of the Lightning Dock Geothermal facility with a current capacity of 11 MW • Solar distributed generation, aggregating 228.5 MW at September 30, 2022, owned by customers or third parties from whom PNM purchases any net excess output and RECs The NMPRC has authorized PNM to recover certain renewable procurement costs through a rate rider billed on a per KWh basis. In its 2022 renewable energy procurement plan, which became effective on January 1, 2022, PNM proposed to collect $66.9 million for the year. PNM recorded revenues from the rider of $12.7 million and $44.5 million in the three and nine months ended September 30, 2022, and $13.0 million and $44.4 million in the three and nine months ended September 30, 2021. On June 1, 2022, PNM filed its renewable energy procurement plan for 2023 which proposes to collect $61.0 million for the year. PNM is not proposing any new resource procurements, and the plan states that existing projects will meet the applicable RPS standards of 2023. A hearing was held September 8, 2022, briefs were filed September 23, 2022, and response briefs were filed September 28, 2022. On October 18, 2022, the hearing examiners issued a recommended decision recommending approval of all PNM's requests. Under the renewable rider, if PNM’s earned rate of return on jurisdictional equity in a calendar year, adjusted for items not representative of normal operations, exceeds the NMPRC-approved rate by 0.5%, PNM is required to refund the excess to customers during May through December of the following year. PNM did not exceed such limitation in 2021. The NMPRC currently has an open inquiry docket into the continued use of renewable riders by New Mexico utilities. PNM is unable to predict the outcome of the NMPRC's inquiry. Energy Efficiency and Load Management Program Costs and Incentives/Disincentives The New Mexico Efficient Use of Energy Act (“EUEA”) requires public utilities to achieve specified levels of energy savings and to obtain NMPRC approval to implement energy efficiency and load management programs. The EUEA requires the NMPRC to remove utility disincentives to implementing energy efficiency and load management programs and to provide incentives for such programs. The NMPRC has adopted a rule to implement this Act. PNM’s costs to implement approved programs and incentives are recovered through a rate rider. During the 2019 New Mexico legislative session, the EUEA was amended to, among other things, include a decoupling mechanism for disincentives, preclude a reduction to a utility’s ROE based on approval of disincentive or incentive mechanisms, establish energy savings targets for the period 2021 through 2025, and require that annual program funding be 3% to 5% of an electric utility's annual customer bills excluding gross receipt taxes, franchise and right-of-way access fees, provided that a customer's annual cost not exceed seventy-five thousand dollars. On April 15, 2020, PNM filed an application for energy efficiency and load management programs to be offered in 2021, 2022, and 2023. The proposed program portfolio consists of twelve programs with a total annual budget of $31.4 million in 2021, $31.0 million in 2022, and $29.6 million in 2023. The application also sought approval of an annual base incentive of 7.1% of the portfolio budget if PNM were to achieve energy savings of at least 80 GWh in a year. The proposed incentive would increase if PNM is able to achieve savings greater than 94 GWh in a year. On October 28, 2020, the NMPRC issued an order approving PNM's proposed efficiency and load management program. On April 15, 2021, PNM filed its 2020 Energy Efficiency Annual Report which reconciles the actual 2020 profit incentive collections with the profit incentive authorized by the NMPRC resulting in an additional $0.8 million incentive collected during the remainder of 2021. The additional incentive was authorized for 2020 because annual energy savings for the year exceeded 87 GWh, and was the maximum level of profit incentive allowed under the approved mechanism. PNM began collecting the additional incentive effective May 27, 2021. On April 15, 2022, PNM filed an advice notice which reconciles the actual 2021 energy efficiency profit incentive collections with the profit incentive authorized by the NMPRC resulting in an additional $0.3 million incentive to be collected through the energy efficiency rider during the remainder of 2022. The additional incentive was authorized for 2021 because annual energy savings for the year exceeded 94 GWh. PNM began collecting the incentive effective May 31, 2022. 2020 Decoupling Petition As discussed above, the legislature amended the EUEA to, among other things, include a decoupling mechanism for disincentives. On May 28, 2020, PNM filed a petition for approval of a rate adjustment mechanism that would decouple the rates of its residential and small power rate classes. Decoupling is a rate design principle that severs the link between the recovery of fixed costs of the utility through volumetric charges. PNM proposed to record the difference between the annual revenue per customer derived from the cost of service approved in the NM 2015 Rate Case and the annual revenue per customer actually recovered from the rate classes beginning on January 1, 2021. If approved, PNM would collect the difference from customers if the revenue per customer from the NM 2015 Rate Case exceeds the actual revenue recovered, or return the difference to customers if the actual revenue per customer recovered exceeds the revenue per customer from the NM 2015 Rate Case. On July 13, 2020, NEE, ABCWUA, the City of Albuquerque, and Bernalillo County filed motions to dismiss the petition on the grounds that approving PNM’s proposed rate adjustment mechanism outside of a general rate case would result in retroactive ratemaking and piecemeal ratemaking. The motions to dismiss also allege that PNM’s proposed rate adjustment mechanism is inconsistent with the EUEA. Responses to the motions to dismiss were filed on August 7, 2020. On September 16, 2020, ABCWUA, Bernalillo County, CCAE, the City of Albuquerque, NEE, NMAG, NMPRC Staff ("Staff"), and WRA filed testimony. CCAE and WRA supported PNM's petition but recommended that the rate adjustment mechanism not take effect until new rates are approved in PNM's next general rate case. The other parties filing testimony opposed PNM's petition. On October 2, 2020, PNM requested an order to vacate the public hearing, scheduled to begin October 13, 2020, and staying the proceeding until the NMPRC decides whether to entertain a petition to issue a declaratory order resolving the issues raised in the motions to dismiss. On October 7, 2020, the hearing examiner approved PNM's request to stay the proceeding and vacate the public hearing and required PNM to file a petition for declaratory order by October 30, 2020. On October 30, 2020, PNM filed a petition for declaratory order asking the NMPRC to issue an order finding that full revenue decoupling is authorized by the EUEA. On November 4, 2020, ABCWUA and Bernalillo County jointly filed a competing petition asking the NMPRC to issue a declaratory order on the EUEA’s requirements related to disincentives. On November 24, 2020, the NMAG requested that the NMPRC deny both petitions for declaratory orders and instead address disincentives under the EUEA in a rulemaking. On March 17, 2021, the NMPRC issued an order granting the petitions for declaratory order, commencing a declaratory order proceeding to address the petitions, denying the NMAG’s request to initiate a rulemaking, and appointing a hearing examiner to preside over the declaratory order proceeding. On January 14, 2022, the hearing examiner issued a recommended decision recommending the NMPRC find that the EUEA does not mandate the NMPRC to authorize or approve a full decoupling mechanism, defining full decoupling as limited to energy efficiency and load management measures and programs. The recommended decision also states that a utility may request approval of a rate adjustment mechanism to remove regulatory disincentives to energy efficiency and load management measures and programs through a stand-alone petition, as part of the utility’s triennial energy efficiency application or a general rate case and that PNM is not otherwise precluded from petitioning for a rate adjustment mechanism prior to its next general rate case. Finally, the recommended decision stated that the EUEA does not permit the NMPRC to reduce a utility’s ROE based on approval of a disincentive removal mechanism founded on removing regulatory disincentives to energy efficiency and load management measures and programs. The recommended decision does not specifically prohibit a downward adjustment to a utility’s capital structure, based on approval of a disincentive removal mechanism. On April 27, 2022, the NMPRC issued an order adopting the recommended decision in its entirety. On May 24, 2022, PNM filed a notice of appeal with the NM Supreme Court. On June 23, 2022, PNM and other parties filed Statement of Issues with the NM Supreme Court. On September 6, 2022, PNM and other parties filed Briefs in Chief with the NM Supreme Court. On October 21, 2022, NEE filed Answer Briefs with the NM Supreme Court. PNM cannot predict the outcome of this matter. FPPAC Continuation Application NMPRC rules require public utilities to file an application to continue using their FPPAC every four years. On June 17, 2022, PNM filed the required continuation application and requested that its FPPAC be continued without modification. On July 21, 2022, the NMPRC issued an order requiring Staff to file a response to PNM's application and set certain procedural dates. On August 4, 2022, Staff filed a response to PNM's application stating that while PNM’s filing demonstrates that PNM’s FPPAC meets the requirements of NMPRC rules, it would support a hearing if the NMPRC desires one. On October 26, 2022, the NMPRC appointed a hearing examiner and a hearing is scheduled to begin April 24, 2023. PNM cannot predict the outcome of this matter. Integrated Resource Plans NMPRC rules require that investor-owned utilities file an IRP every three years. The IRP is required to cover a 20-year planning period and contain an action plan covering the first four years of that period. On September 14, 2022, the NMPRC adopted revisions to the IRP Rule. The final order revamps and modernizes the planning process to accommodate increased stakeholder involvement. The IRP Rule establishes a collaborative facilitated process for a utility and stakeholders to agree on a statement of need for potential new or additional resources, as well as an action plan to guide procurement or development of resources to meet the stated need. A most-cost-effective portfolio of resources shall be derived from the statement of need analysis. The statement of need and action plan must be accepted before the utility begins the resource solicitation process pursuant to the IRP Rule. Following acceptance of the statement of need and action plan, a utility will provide the NMPRC and intervenors drafts of the request for proposals (“RFP”) and a timeline for issuing, receiving, evaluating, and ranking bids. The NMPRC will then appoint an Independent Monitor (“IM”) to oversee the RFP process, which allows for parties and the IM to comment on the RFP consistency with the IRP, after which the utility issues the RFP. Within 75 days of receiving bids the utility shall provide the IM with results including pricing and non-price evaluation criteria, ranking of bids, chosen portfolio and alternatives that also meet the needs; the IM then rules on the fairness of the RFP execution. Acceptance of the statement of need and action plan will not constitute a finding of prudency or pre-approval of costs associated with the additional resources. Following the RFP and IM processes, the utility may apply approvals, and any costs incurred to implement the action plan will be considered in a general rate case and/or resource acquisition proceeding. On October 14, 2022, PNM and other investor-owned utilities filed motions for rehearing with the NMPRC. On October 26, 2022, the NMPRC issued an order partially granting and partially denying certain aspects of PNM's and the other investor-owned utilities' motions for rehearing. On November 2, 2022, the NMPRC adopted an amended IRP Rule. PNM cannot predict the outcome of this matter. 2020 IRP NMPRC rules required PNM to file its 2020 IRP in July 2020. On March 16, 2020, PNM filed a motion to extend the deadline to file its 2020 IRP to six months after the NMPRC issues a final order approving a replacement resource portfolio and closes the docket in the bifurcated SJGS Abandonment Application and replacement resource proceedings. On April 8, 2020, the NMPRC approved PNM's motion to extend the deadline to file its 2020 IRP as requested. On January 29, 2021, PNM filed its 2020 IRP addressing the 20-year planning period, from 2020 through 2040. The plan focuses on a carbon-free electricity portfolio by 2040 that would eliminate coal at the end of 2024. This includes replacing the power from San Juan with a mix of approved carbon-free resources and the plan to exit Four Corners at the end of 2024 (subject to regulatory approval). The plan highlights the need for additional investments in a diverse set of resources, including renewables to supply carbon-free power, energy storage to balance supply and demand, and efficiency and other demand-side resources to mitigate load growth. On May 24, 2021, the hearing examiner issued a procedural schedule and required PNM, upon request, to provide modeling data and assumptions to parties within two weeks. Additionally, PNM was required upon request, to run modeling or provide reasonable access to PNM virtual machines at PNM's expense. The alternative modeling deadline concluded on August 30, 2021, and Staff's recommendation was filed on November 12, 2021. The recommendation found that PNM has met the requirements of the IRP rule, but not the requirements of the NM 2016 Rate Case. On April 6, 2022, the NMPRC issued an order requiring PNM to update its 2020 IRP and to identify material events, including the SJGS extension and replacement resource delays, and the related impact to its plan. On April 27, 2022, PNM responded to the NMPRC order, as required. On June 8, 2022, the NMPRC issued an order finding that PNM's April 27, 2022 update offered additional information. Parties filed written responses on June 15, 2022, and PNM issued a reply to those responses on June 23, 2022. On June 29, 2022, Staff updated their recommendation, recommending the NMPRC consider accepting the 2020 IRP as filed and updated, and then possibly requiring another update be filed in the first quarter of 2023 to address further replacement resource delays that may occur and changing circumstance in advance of the summer of 2023. On July 13, 2022, the NMPRC issued a final order approving Staff's recommendations but added language recommending PNM include a meaningful analysis of transmission and distribution plans in its 2023 IRP. This matter is now concluded. Abandonment Applications made under the ETA As discussed in Note 11, the ETA sets a statewide standard that requires investor-owned electric utilities to have specified percentages of their electric-generating portfolios be from renewable and zero-carbon generating resources. The ETA also provides for a transition from fossil-fuel generation resources to renewable and other carbon-free resources through certain provisions relating to the abandonment of coal-fired generating facilities. These provisions include the use of energy transition bonds, which are designed to be highly rated bonds that can be issued to finance certain costs of abandoning coal-fired facilities that are retired prior to January 1, 2023, for facilities operated by a “qualifying utility,” or prior to January 1, 2032, for facilities that are not operated by the qualifying utility. SJGS Abandonment Application On July 1, 2019, PNM filed a Consolidated Application for the Abandonment and Replacement of SJGS and Related Securitized Financing Pursuant to the ETA (the “SJGS Abandonment Application”). The SJGS Abandonment Application sought NMPRC approval to retire PNM’s share of SJGS after the existing coal supply and participation agreements end in June 2022, for approval of replacement resources, and for the issuance of energy transition bonds. PNM's application proposed several replacement resource scenarios. The SJGS Abandonment Application also included a request to issue approximately $361 million of energy transition bonds (the “Securitized Bonds”). PNM’s request for the issuance of Securitized Bonds included approximately $283 million of forecasted undepreciated investments in SJGS at June 30, 2022, an estimated $28.6 million for plant decommissioning and coal mine reclamation costs, approximately $9.6 million in upfront financing costs, and approximately $20.0 million for job training and severance costs for affected employees. Proceeds from the Securitized Bonds would also be used to fund approximately $19.8 million for economic development in the Four Corners area. On July 10, 2019, the NMPRC issued an order requiring the SJGS Abandonment Application be considered in two proceedings: one addressing SJGS abandonment and related financing, and the other addressing replacement resources. The NMPRC indicated that PNM's July 1, 2019 filing is responsive to the January 30, 2019 order. Hearings on the abandonment and securitized financing proceedings were held in December 2019 and hearings on replacement resources were held in January 2020. On February 21, 2020, the hearing examiners issued two recommended decisions recommending approval of PNM’s proposed abandonment of SJGS, subject to approval of replacement resources, and approval of PNM’s proposed financing order to issue Securitized Bonds. The hearing examiners recommended that PNM be authorized to abandon SJGS by June 30, 2022, and to record regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA to preserve its ability to recover the costs in a future general rate case. The hearing examiners recommended that this authority only extend to the deferral of the costs and it not be an approval of any ratemaking treatment. The hearing examiners also recommended PNM be authorized to issue Securitized Bonds of up to $361 million and establish a rate rider to collect non-bypassable customer charges for repayment of the bonds and be subject to bi-annual adjustments (the "Energy Transition Charge"). The hearing examiners recommended an interim rate rider adjustment upon the start date of the Energy Transition Charge to provide immediate credits to customers for the full value of PNM’s revenue requirement related to SJGS until those reductions are reflected in base rates. In addition, the hearing examiners recommended PNM be granted authority to establish regulatory assets to recover costs that PNM will pay prior to the issuance of the Securitized Bonds, including costs associated with the bond issuances as well as for severances, job training, economic development, and workforce training. On April 1, 2020, the NMPRC unanimously approved the hearing examiners' recommended decisions regarding the abandonment of SJGS and the related securitized financing under the ETA. On April 10, 2020, CFRE and NEE filed a notice of appeal with the NM Supreme Court of the NMPRC's approval of PNM's request to issue securitized financing under the ETA. The NM Supreme Court granted motions to intervene filed by PNM, WRA, CCAE, and the Sierra Club. On May 8, 2020, CFRE and NEE filed a joint statement of issues with the NM Supreme Court which asserted that the NMPRC improperly applied the ETA and that the ETA violates the New Mexico Constitution. On August 17, 2020, the appellants filed a Brief in Chief and on October 5, 2020, PNM, WRA, CCAE, and Sierra Club filed answer briefs. On January 10, 2022, the NM Supreme Court issued its decision rejecting CFRE’s and NEE’s constitutional challenges to the ETA and affirmed the NMPRC final order. In March 2020, PNMR and PNM recorded obligations of $9.4 million and $8.1 million for estimated severances, $8.9 million for obligations to fund severances and other costs of WSJ LLC employees and to fund $19.8 million to state agencies for economic development and workforce training. The total amount recorded for these estimates of $36.9 million and $36.0 million is reflected in other current liabilities and $36.9 million as a corresponding deferred regulatory asset on PNMR's and PNM's Condensed Consolidated Balance Sheets at December 31, 2021. In the nine months ended September 30, 2022, PNM paid $2.2 million for severances, $8.9 million for obligations to fund severances and other costs of WSJ LLC employees and funded the $19.8 million to state agencies. PNMR and PNM revised their estimates in 2022 to reflect other current liabilities of $7.6 million and $7.2 million and deferred regulatory assets of $37.3 million on PNMR's and PNM's Condensed Consolidated Balance Sheets at September 30, 2022. In addition, PNM recorded $1.6 million as Regulatory disallowance and restructuring costs on PNMR's and PNM's Condensed Consolidated Statements of Earnings for PNM's non-retail share of estimated severance in the nine months ended September 30, 2022. These estimates may continue to be adjusted in future periods as the Company refines its expectations. On September 29, 2022, SJGS was removed from service and as a result, PNM made the following adjustments on the Condensed Consolidated Balance Sheets as of September 30, 2022: Net Increase (decrease) (In thousands) Current Assets: Inventory $ (6,430) Utility Plant: Net utility plant $ (382,798) Deferred Charges and Other Assets: Regulatory assets - ETA (1) $ 289,381 Regulatory assets - Non-ETA (2) $ 22,593 Deferred Credits and Other Liabilities: Regulatory liabilities (3) $ (77,254) $ — (1) To be recovered through the Energy Transition Charge, which includes undepreciated investments of $274.9 million and plant decommissioning of $14.5 million, previously reflected in Net utility plant. (2) Authorized to be recorded as regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA to preserve its ability to recover the costs in a future general rate case, which includes obsolete inventory of $6.4 million and plant decommissioning of $16.2 million, previously reflected in Net utility plant. (3) Includes cost of removal and accelerated depreciation of SNCRs. On June 24, 2020, the hearing examiners issued a recommended decision on PNM's request for approval of replacement resources that addressed the entire portfolio of replacement resources, which superseded a previous partial recommended decision issued on March 27, 2020. The hearing examiners concluded that the ultimate selection of a portfolio of replacement resources involves policy considerations that are the province of the NMPRC and stated that they did not intend to make that decision for the NMPRC. On July 29, 2020, the NMPRC issued an order approving resource selection criteria identified in the ETA that would include PPAs for 650 MW of solar and 300 MW of battery storage. The order also granted in part PNM’s request for an extension of time for PNM to file the application to implement the replacement resource portfolio. PNM had 60 days from the date of the order to file an application in a separate docket seeking approval of the proposed final executed contracts, for any replacement resources not in evidence that had been approved by the NMPRC. On September 28, 2020, PNM filed its application for approval of the final executed contracts for the replacement resources. In addition, PNM provided updated cost estimates of $8.1 million for the SJGS replacement resources, based on the NMPRC authorization to create regulatory assets granted in the abandonment order, which it plans to seek recovery of in a future general rate case. On November 13, 2020, the hearing examiner issued a recommended decision recommending approval of a 200 MW solar PPA combined with a 100 MW battery storage agreement and the 100 MW solar PPA combined with a 30 MW battery storage agreement. On December 2, 2020, the NMPRC issued an order adopting the recommended decision in its entirety. On October 14, 2022, PNM filed a motion for approval of amendments on the 200 MW solar PPA combined with the 100 MW battery storage agreement, as well as a letter agreement with the project developer providing payments to PNM for delay damages. The amendments included price increases on both the solar PPA and battery storage agreement and the commercial operation date extension to May 2024. No party filed objections and the amendments were deemed approved. On February 28, 2022, WRA and CCAE filed a joint motion for order to show cause and enforce financing order and supporting brief, which requests that the NMPRC order PNM to show cause why its rates should not be reduced at the time SJGS is abandoned and to otherwise enforce the NMPRC’s April 1, 2020 final order. On March 14, 2022, PNM filed its response to the joint motion to show cause refuting the movants' claims that the ETA and April 1, 2020 financing order require Securitized Bonds be issued at the time of abandonment and that rates be reduced upon abandonment as not being legally supportable. The movants filed joint replies on March 24, 2022. In response, on March 30, 2022, the NMPRC issued an order appointing hearing examiners to conduct a hearing, if necessary, and to issue a recommended decision to address the issues raised by the motion. PNM filed testimony on April 20, 2022, and a hearing was held on May 23, 2022. On June 17, 2022, the hearing examiners issued a recommended decision requesting the NMPRC issue an order that would require PNM to: • Revise its rates to remove all of the costs of SJGS Unit 1 by issuing rate credits of $21.1 million on an annual basis, to customers by July 1, 2022 • Revise its rates again, to remove all costs of SJGS Unit 1, Unit 4, and common facilities by increasing the rate credits to $98.3 million on an annual basis, by October 1, 2022 • Transfer payments due and owing to the Indian Affairs Fund, Economic Development Assistance Fund, and the Displaced Workers Assistance Fund within 30 days of the abandonment of SJGS Unit 1 • Include (in its next rate case application) an explanation and defense of the prudence in the timing of the issuance of Securitized Bonds beyond the abandonment dates and what actions were taken to protect customers from interest rate increases occurring as well as the continued marketability of the Securitized Bonds issued Following the filing of exceptions and responses, on June 29, 2022, the NMPRC issued its final order adopting and approving the recommended decision in its entirety with certain additions. The additions to the final order include requirements for PNM file a report, no later than October 15, 2022, that contains a record of all of its costs incurred in the show cause proceeding so that the prudence of those costs will be known and be subject to review in PNM's future rate case and that the prudency review shall include a compliance filing to enable a review of the prudence of PNM's decision to delay bond issuance beyond the dates of the SJGS abandonment. On June 29, 2022, PNM filed an Emergency Motion and Supporting Brief for Stay with the NMPRC ("PNM's NMPRC Emergency Motion"). On June 30, 2022, PNM filed a Notice of Appeal and an Emergency Motion for Partial Interim Stay of the NMPRC's Final Order with the NM Supreme Court ("PNM's NM Supreme Court Emergency Motion"). In the filing, PNM stated that if the stay is granted, and is unsuccessful in its appeal, customers can be held harmless with respect to any rate credits they would have received during the pendency of the appeal and in the event PNM's appeal is not successful, PNM would establish a regulatory liability for the benefit of the rate credits subject to the period during the stay, with a carrying charge calculated on the amount of the rate credits subject to the stay. On July 1, 2022, the NMPRC filed a motion at the NM Supreme Court claiming that the ordering paragraph in the June 29, 2022 final order only required PNM to file an advice notice by July 1, 2022, but not to implement a credit until 30 days afterward. In its motion, the NMPRC requested that the court not immediately order the interim stay of the final order, as requested in PNM's NM Supreme Court Emergency Motion, and instead issue an order setting out a briefing schedule for the NMPRC to respond and potential parties to file responses. On July 6, 2022, PNM filed a response to the NMPRC's July 1, 2022 motion at the NM Supreme Court stating that the urgency of a stay through the NM Supreme Court is still viable based on whether the NMPRC takes longer than 30 days to consider PNM’s NMPRC Emergency Motion. On July 12, 2022, several parties filed responses to PNM's NMPRC Emergency Motion. On July 21, 2022, the NMPRC adopted an order denying PNM's NMPRC Emergency Motion. Subsequently, on July 25, 2022, PNM filed another emergency motion seeking an immediate and ongoing stay from the NM Supreme Court for the pendency of the appeal. In the interim, PNM began issuing rate credits effective July 31, 2022. On July 28, 2022, PNM made payments totaling $19.8 million to the Indian Affairs Fund, Economic Development Assistance Fund, and the Displaced Workers Assistance Fund. On August 1, 2022, PNM filed its statement of issues with the NM Supreme Court. On September 2, 2022, the NM Supreme Court issued an order granting PNM's July 25, 2022 motion for partial stay and as a result PNM suspended issuing rate credits. On October 11, 2022, WRA filed a motion for emergency oral argument in PNM's NM Supreme Court Emergency Motion. On October 14, 2022, PNM made its required compliance filing under the NMPRC's June 29, 2022, final o |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS Units 1 and 2 and certain rights-of-way agreements are classified as leases. All of the Company's leases with terms in excess of one year are recorded on the balance sheet by recording a present value lease liability and a corresponding right-of-use asset. Operating lease expense is recognized within operating expenses according to the use of the asset on a straight-line basis. Financing lease costs, which are comprised primarily of fleet and office equipment leases commencing after January 1, 2019, are recognized by amortizing the right-of-use asset on a straight-line basis and by recording interest expense on the lease liability. Financing lease right-of-use assets amortization is reflected in depreciation and amortization and interest on financing lease liabilities is reflected as interest charges on the Company’s Condensed Consolidated Statements of Earnings. See additional discussion of the Company's leasing activities in Note 8 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. PVNGS PNM leases interests in Units 1 and 2 of PVNGS. 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. Following procedures set forth in the PVNGS leases, PNM notified four of the lessors under the Unit 1 leases and one lessor under the Unit 2 lease that it would elect to renew those leases on the expiration date of the original leases. 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 lease payments during the renewal periods aggregate $16.5 million for PVNGS Unit 1 and $1.6 million for Unit 2. The terms of each of the extended leases do not provide for additional renewal options beyond their currently scheduled expiration dates. PNM had the option to purchase the assets underlying each of the extended leases at their fair market value or to return the lease interests to the lessors on the expiration dates. On June 11, 2020, PNM provided notice to the lessors and the NMPRC of its intent to return the assets underlying both the PVNGS Unit 1 and Unit 2 leases upon their expiration in January 2023 and 2024. Although PNM elected to return the assets underlying the extended leases, PNM retains certain obligations related to PVNGS, including costs to decommission the facility. PNM is depreciating its capital improvements related to the extended leases using NMPRC approved rates through the end of the NRC license period for each unit, which expire in June 2045 for Unit 1 and in June 2046 for Unit 2. On April 5, 2021, PNM and SRP entered into an Asset Purchase and Sale Agreement, pursuant to which PNM agreed to sell to SRP certain PNM-owned assets and nuclear fuel necessary to the ongoing operation and maintenance of leased capacity in PVNGS Unit 1 and Unit 2, which SRP has agreed to acquire from the lessors upon termination of the existing leases. The proposed transaction between PNM and SRP received all necessary approvals, including NRC approval for the transfer of the associated possessory licenses to SRP at the end of the term of each of the respective leases. See Note 12 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which included PNM's request to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the PVNGS lease arrangements upon the occurrence of certain events that PNM does not consider reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to PVNGS or the occurrence of specified nuclear events), PNM would be required to make specified payments to the lessors and take title to the leased interests. If such an event had occurred as of September 30, 2022, amounts due to the lessors under the circumstances described above would be up to $142.2 million, payable on January 15, 2023 in addition to the scheduled lease payments due on that date. Land Easements and Rights-of-Ways 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. 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 2022 payment for the amount due under the Navajo Nation right-of-way lease was $7.9 million, which included amounts due under the Consumer Price Index adjustment. Changes in the Consumer Price Index subsequent to January 1, 2019 are considered variable lease payments. PNM has other prepaid rights-of-way agreements that are not accounted for as leases or recognized as a component of plant in service. PNM reflects the unamortized balance of these prepayments in other deferred charges on the Condensed Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Condensed Consolidated Statement of Earnings over their term. As of September 30, 2022 and December 31, 2021, the unamortized balance of these rights-of-ways was $51.1 million and $53.4 million. PNM recognized amortization expense associated with these agreements of $0.9 million and $2.9 million in the three and nine months ended September 30, 2022 and $0.9 million and $2.8 million in the three and nine months ended September 30, 2021. Fleet Vehicles and Equipment Fleet vehicle and equipment leases commencing on or after January 1, 2019 are classified as financing leases. Fleet vehicle and equipment leases existing as of December 31, 2018 are classified as operating leases. The Company’s fleet vehicle and equipment lease agreements include non-lease components for insignificant administrative and other costs that are billed over the life of the agreement. At September 30, 2022, residual value guarantees on fleet vehicle and equipment leases are $0.9 million, $1.3 million, and $2.2 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 58,670 $ 3,769 $ 62,440 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 16,902 1,631 18,534 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,754 1,947 41,701 52,552 3,155 55,993 As discussed above, the Company classifies its fleet vehicle and equipment leases and its office equipment leases commencing on or after January 1, 2019 as financing leases. Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below: September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 18,151 $ 18,372 $ 36,853 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (6,843) (7,256) (14,340) (4,550) (4,923) (9,660) Non-utility property, net 11,308 11,116 22,513 10,621 11,258 22,035 Other current liabilities $ 3,248 $ 3,508 $ 6,827 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 7,962 7,620 15,602 7,732 8,273 16,075 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of September 30, 2022 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.98 2.35 6.69 Financing leases 4.01 3.48 3.74 Weighted average discount rate: Operating leases 4.01 % 4.00 % 4.01 % Financing leases 3.07 % 3.09 % 3.08 % Information for the components of lease expense is as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,736 $ 466 $ 7,205 $ 20,085 $ 1,489 $ 21,623 Amounts capitalized (166) (410) (577) (524) (1,336) (1,860) Total operating lease expense 6,570 56 6,628 19,561 153 19,763 Financing lease cost: Amortization of right-of-use assets 792 779 1,585 2,293 2,334 4,680 Interest on lease liabilities 84 85 170 231 238 471 Amounts capitalized (588) (829) (1,417) (1,648) (2,309) (3,957) Total financing lease expense 288 35 338 876 263 1,194 Variable lease expense 262 — 262 629 — 629 Short-term lease expense (1) 568 1 567 2,837 4 2,884 Total lease expense for the period $ 7,688 $ 92 $ 7,795 $ 23,903 $ 420 $ 24,470 (1) Includes expense of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022. For additional information on the SJGS Unit 1 outage see Note 12. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,569 $ 594 $ 7,192 $ 20,020 $ 1,880 $ 22,006 Amounts capitalized (199) (517) (716) (645) (1,618) (2,264) Total operating lease expense 6,370 77 6,476 19,375 262 19,742 Financing lease cost: Amortization of right-of-use assets 657 693 1,372 1,793 1,944 3,802 Interest on lease liabilities 66 78 145 193 230 426 Amounts capitalized (452) (709) (1,161) (1,235) (1,967) (3,202) Total financing lease expense 271 62 356 751 207 1,026 Variable lease expense 106 — 106 274 — 274 Short-term lease expense 1,572 2 1,578 1,821 6 1,857 Total lease expense for the period $ 8,319 $ 141 $ 8,516 $ 22,221 $ 475 $ 22,899 Supplemental cash flow information related to the Company’s leases is as follows: Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25,503 $ 118 $ 25,670 $ 25,511 $ 262 $ 25,897 Operating cash flows from financing leases 67 32 101 65 24 92 Finance cash flows from financing leases 810 371 1,249 621 234 920 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ — $ 2,924 $ — $ 317 $ 317 Financing leases 3,032 2,349 5,381 2,898 2,642 5,567 Capitalized lease costs are reflected as investing activities on the Company’s Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021. Future expected lease payments are shown below: As of September 30, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2022 $ 898 $ 10,234 $ 976 $ 455 $ 1,896 $ 10,725 2023 3,497 8,779 3,698 1,546 7,251 10,465 2024 2,777 7,217 3,125 943 5,916 8,171 2025 1,940 7,076 2,192 770 4,134 7,847 2026 1,513 7,014 1,113 76 2,626 7,090 Later years 1,324 24,384 632 — 1,956 24,384 Total minimum lease payments 11,949 64,704 11,736 3,790 23,779 68,682 Less: Imputed interest 739 8,048 608 212 1,350 8,447 Lease liabilities as of September 30, 2022 $ 11,210 $ 56,656 $ 11,128 $ 3,578 $ 22,429 $ 60,235 The above table includes $11.5 million, $12.9 million, and $24.4 million for PNM, TNMP, and PNMR at September 30, 2022 for expected future payments on fleet vehicle and equipment leases that could be avoided if the leased assets were returned and the lessor is able to recover estimated market value for the equipment from third parties. |
Lease Commitments | Lease Commitments The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS Units 1 and 2 and certain rights-of-way agreements are classified as leases. All of the Company's leases with terms in excess of one year are recorded on the balance sheet by recording a present value lease liability and a corresponding right-of-use asset. Operating lease expense is recognized within operating expenses according to the use of the asset on a straight-line basis. Financing lease costs, which are comprised primarily of fleet and office equipment leases commencing after January 1, 2019, are recognized by amortizing the right-of-use asset on a straight-line basis and by recording interest expense on the lease liability. Financing lease right-of-use assets amortization is reflected in depreciation and amortization and interest on financing lease liabilities is reflected as interest charges on the Company’s Condensed Consolidated Statements of Earnings. See additional discussion of the Company's leasing activities in Note 8 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. PVNGS PNM leases interests in Units 1 and 2 of PVNGS. 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. Following procedures set forth in the PVNGS leases, PNM notified four of the lessors under the Unit 1 leases and one lessor under the Unit 2 lease that it would elect to renew those leases on the expiration date of the original leases. 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 lease payments during the renewal periods aggregate $16.5 million for PVNGS Unit 1 and $1.6 million for Unit 2. The terms of each of the extended leases do not provide for additional renewal options beyond their currently scheduled expiration dates. PNM had the option to purchase the assets underlying each of the extended leases at their fair market value or to return the lease interests to the lessors on the expiration dates. On June 11, 2020, PNM provided notice to the lessors and the NMPRC of its intent to return the assets underlying both the PVNGS Unit 1 and Unit 2 leases upon their expiration in January 2023 and 2024. Although PNM elected to return the assets underlying the extended leases, PNM retains certain obligations related to PVNGS, including costs to decommission the facility. PNM is depreciating its capital improvements related to the extended leases using NMPRC approved rates through the end of the NRC license period for each unit, which expire in June 2045 for Unit 1 and in June 2046 for Unit 2. On April 5, 2021, PNM and SRP entered into an Asset Purchase and Sale Agreement, pursuant to which PNM agreed to sell to SRP certain PNM-owned assets and nuclear fuel necessary to the ongoing operation and maintenance of leased capacity in PVNGS Unit 1 and Unit 2, which SRP has agreed to acquire from the lessors upon termination of the existing leases. The proposed transaction between PNM and SRP received all necessary approvals, including NRC approval for the transfer of the associated possessory licenses to SRP at the end of the term of each of the respective leases. See Note 12 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which included PNM's request to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the PVNGS lease arrangements upon the occurrence of certain events that PNM does not consider reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to PVNGS or the occurrence of specified nuclear events), PNM would be required to make specified payments to the lessors and take title to the leased interests. If such an event had occurred as of September 30, 2022, amounts due to the lessors under the circumstances described above would be up to $142.2 million, payable on January 15, 2023 in addition to the scheduled lease payments due on that date. Land Easements and Rights-of-Ways 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. 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 2022 payment for the amount due under the Navajo Nation right-of-way lease was $7.9 million, which included amounts due under the Consumer Price Index adjustment. Changes in the Consumer Price Index subsequent to January 1, 2019 are considered variable lease payments. PNM has other prepaid rights-of-way agreements that are not accounted for as leases or recognized as a component of plant in service. PNM reflects the unamortized balance of these prepayments in other deferred charges on the Condensed Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Condensed Consolidated Statement of Earnings over their term. As of September 30, 2022 and December 31, 2021, the unamortized balance of these rights-of-ways was $51.1 million and $53.4 million. PNM recognized amortization expense associated with these agreements of $0.9 million and $2.9 million in the three and nine months ended September 30, 2022 and $0.9 million and $2.8 million in the three and nine months ended September 30, 2021. Fleet Vehicles and Equipment Fleet vehicle and equipment leases commencing on or after January 1, 2019 are classified as financing leases. Fleet vehicle and equipment leases existing as of December 31, 2018 are classified as operating leases. The Company’s fleet vehicle and equipment lease agreements include non-lease components for insignificant administrative and other costs that are billed over the life of the agreement. At September 30, 2022, residual value guarantees on fleet vehicle and equipment leases are $0.9 million, $1.3 million, and $2.2 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 58,670 $ 3,769 $ 62,440 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 16,902 1,631 18,534 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,754 1,947 41,701 52,552 3,155 55,993 As discussed above, the Company classifies its fleet vehicle and equipment leases and its office equipment leases commencing on or after January 1, 2019 as financing leases. Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below: September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 18,151 $ 18,372 $ 36,853 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (6,843) (7,256) (14,340) (4,550) (4,923) (9,660) Non-utility property, net 11,308 11,116 22,513 10,621 11,258 22,035 Other current liabilities $ 3,248 $ 3,508 $ 6,827 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 7,962 7,620 15,602 7,732 8,273 16,075 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of September 30, 2022 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.98 2.35 6.69 Financing leases 4.01 3.48 3.74 Weighted average discount rate: Operating leases 4.01 % 4.00 % 4.01 % Financing leases 3.07 % 3.09 % 3.08 % Information for the components of lease expense is as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,736 $ 466 $ 7,205 $ 20,085 $ 1,489 $ 21,623 Amounts capitalized (166) (410) (577) (524) (1,336) (1,860) Total operating lease expense 6,570 56 6,628 19,561 153 19,763 Financing lease cost: Amortization of right-of-use assets 792 779 1,585 2,293 2,334 4,680 Interest on lease liabilities 84 85 170 231 238 471 Amounts capitalized (588) (829) (1,417) (1,648) (2,309) (3,957) Total financing lease expense 288 35 338 876 263 1,194 Variable lease expense 262 — 262 629 — 629 Short-term lease expense (1) 568 1 567 2,837 4 2,884 Total lease expense for the period $ 7,688 $ 92 $ 7,795 $ 23,903 $ 420 $ 24,470 (1) Includes expense of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022. For additional information on the SJGS Unit 1 outage see Note 12. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,569 $ 594 $ 7,192 $ 20,020 $ 1,880 $ 22,006 Amounts capitalized (199) (517) (716) (645) (1,618) (2,264) Total operating lease expense 6,370 77 6,476 19,375 262 19,742 Financing lease cost: Amortization of right-of-use assets 657 693 1,372 1,793 1,944 3,802 Interest on lease liabilities 66 78 145 193 230 426 Amounts capitalized (452) (709) (1,161) (1,235) (1,967) (3,202) Total financing lease expense 271 62 356 751 207 1,026 Variable lease expense 106 — 106 274 — 274 Short-term lease expense 1,572 2 1,578 1,821 6 1,857 Total lease expense for the period $ 8,319 $ 141 $ 8,516 $ 22,221 $ 475 $ 22,899 Supplemental cash flow information related to the Company’s leases is as follows: Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25,503 $ 118 $ 25,670 $ 25,511 $ 262 $ 25,897 Operating cash flows from financing leases 67 32 101 65 24 92 Finance cash flows from financing leases 810 371 1,249 621 234 920 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ — $ 2,924 $ — $ 317 $ 317 Financing leases 3,032 2,349 5,381 2,898 2,642 5,567 Capitalized lease costs are reflected as investing activities on the Company’s Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021. Future expected lease payments are shown below: As of September 30, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2022 $ 898 $ 10,234 $ 976 $ 455 $ 1,896 $ 10,725 2023 3,497 8,779 3,698 1,546 7,251 10,465 2024 2,777 7,217 3,125 943 5,916 8,171 2025 1,940 7,076 2,192 770 4,134 7,847 2026 1,513 7,014 1,113 76 2,626 7,090 Later years 1,324 24,384 632 — 1,956 24,384 Total minimum lease payments 11,949 64,704 11,736 3,790 23,779 68,682 Less: Imputed interest 739 8,048 608 212 1,350 8,447 Lease liabilities as of September 30, 2022 $ 11,210 $ 56,656 $ 11,128 $ 3,578 $ 22,429 $ 60,235 The above table includes $11.5 million, $12.9 million, and $24.4 million for PNM, TNMP, and PNMR at September 30, 2022 for expected future payments on fleet vehicle and equipment leases that could be avoided if the leased assets were returned and the lessor is able to recover estimated market value for the equipment from third parties. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIn December 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 officer compensation. During 2020, the IRS issued final regulations related to certain officer compensation and, in January 2021, issued final 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, in 2020, the IRS finalized regulations interpreting Tax Act amendments to depreciation provisions of the Internal Revenue Code ("IRC") that allowed the Company to claim a bonus depreciation deduction on certain construction projects placed in service subsequent to the third quarter of 2017. See additional discussion of the impacts of the Tax Act in Note 18 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted. Among other things, the CARES Act includes tax provisions that generally loosen restrictions on Net Operating Loss ("NOL") utilization and business interest deductions, and accelerate refunds of previously generated alternative minimum tax ("AMT") credits. In addition, the CARES Act includes a temporary provision allowing businesses to defer payments to the government for some payroll taxes. In 2020, the Company applied for $5.2 million of accelerated refunds of previously generated AMT credits and deferred $7.0 million of payments for certain payroll taxes. The Company received the $5.2 million refund of prior AMT credits in June 2021 and paid $3.5 million of payroll taxes in December 2021. The CARES Act provisions related to NOL utilization and business interest deductions are not applicable for the Company. Beginning February 2018, PNM’s NM 2016 Rate Case reflects the reduction in the federal corporate income tax rate, including amortization of excess deferred federal and state income taxes. In accordance with the order in that case, PNM is returning the protected portion of excess deferred federal income taxes to customers over the average remaining life of plant in service as of December 31, 2017, and the unprotected portion of excess deferred federal income taxes to customers over a period of approximately twenty-three years. Excess deferred state income taxes were returned to customers over a three-year period, which concluded in the first quarter of 2021. The approved settlement in the TNMP 2018 Rate Case includes a reduction in customer rates to reflect the impacts of the Tax Act beginning on January 1, 2019. PNMR, PNM, and TNMP will amortize federal excess deferred income taxes of $23.6 million, $14.4 million, and $9.2 million in 2022. See additional discussion of PNM’s NM 2016 Rate Case and TNMP’s 2018 Rate Case in Note 17 of the Notes to Consolidated Financial Statements in the 2021 Annual Reports on Form 10-K. 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 income taxes. Certain unusual or infrequently occurring items, including excess tax benefits or tax deficiencies related to stock awards and taxes on Merger-related costs are excluded from the estimated annual effective tax rate calculation. At September 30, 2022, PNMR, PNM, and TNMP estimated their effective income tax rates for the year ended December 31, 2022 would be 10.06%, 10.97%, and 13.40%. The primary difference between the statutory income tax rates and the effective tax rates is the effect of the reduction in income tax expense resulting from the amortization of excess deferred federal income taxes. On October 13, 2022, the New Mexico Taxation and Revenue Department issued PNMR a Notice of Assessment of Taxes for the 2020 tax year. The assessment reflects $3.6 million for New Mexico corporate income tax, plus penalties and interest, and relates to PNMR’s consolidated net operating loss carryforwards from prior years. PNMR believes its tax positions are correct and will be protesting the assessment. PNMR does not believe an unfavorable resolution is probable. PNMR is unable to predict the outcome of this matter. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsPNMR, PNM, TNMP, and NMRD are considered related parties, 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. 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 and NMRD. See Note 16 for additional discussion of NMRD. The table below summarizes the nature and amount of related party transactions of PNMR, PNM, TNMP, and NMRD: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Services billings: PNMR to PNM $ 26,281 $ 23,617 $ 82,352 $ 75,992 PNMR to TNMP 9,554 9,187 30,110 29,687 PNM to TNMP 107 107 322 319 TNMP to PNMR 35 — 106 24 PNMR to NMRD 81 55 226 165 Renewable energy purchases: PNM from NMRD 3,221 3,384 9,642 9,473 Interconnection and facility study billings: PNM to NMRD — 225 — 225 PNM to PNMR — — — — NMRD to PNM — — — 1,276 Interest billings: PNMR to PNM 4 — 13 — PNM to PNMR 73 36 143 108 PNMR to TNMP 50 — 166 — Income tax sharing payments: PNMR to PNM — — — — TNMP to PNMR — — — — |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment As discussed in Note 21 of the Company's 2021 Annual Reports on Form 10-K, PNMR Development and AEP OnSite Partners created NMRD in September 2017 to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. As of September 30, 2022, NMRD’s renewable energy capacity in operation was 135.1 MW. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. The investment in NMRD is accounted for using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. In the nine months ended September 30, 2022 and 2021, neither PNMR Development nor AEP OnSite Partners made any cash contributions to NMRD for its construction activities. In February 2021, NMRD paid both PNMR Development and AEP OnSite Partners a dividend of $3.0 million. As PNMR Development's cumulative equity in earnings of NMRD as of March 31, 2021 was $2.4 million, an equivalent amount was presented as cash flows from operating activities on the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2021 and the remaining portion of the dividend, in excess of PNMR Development's cumulative equity in earnings of NMRD, of $0.6 million was presented as cash flows from investing activities. PNMR presents its share of net earnings from NMRD in other income on the Condensed Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Operating revenues $ 3,407 $ 3,543 $ 10,224 $ 10,179 Operating expenses 2,381 2,422 7,172 7,360 Net earnings $ 1,026 $ 1,121 $ 3,052 $ 2,819 Financial Position September 30, December 31, 2022 2021 (In thousands) Current assets $ 6,750 $ 10,729 Net property, plant, and equipment 166,229 166,495 Non-current assets 9,749 2,289 Total assets 182,728 179,513 Current liabilities 1,017 824 Non-current liabilities 363 373 Owners’ equity $ 181,348 $ 178,316 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
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 Enterprises, Inc. and Subsidiaries ("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. The Company evaluates 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. 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 events and 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, the entity is required to perform the second step of the impairment analysis, determining the amount of goodwill impairment to be recorded. The amount is calculated by comparing the implied fair value of the goodwill to its carrying amount. This exercise would require the entity to allocate the fair value determined in step one to the individual assets and liabilities of the reporting unit. Any remaining fair value would be the implied fair value of goodwill on the testing date. To the extent the recorded amount of goodwill of a reporting unit exceeds the implied fair value determined in step two, an impairment loss would be reflected in results of operations. 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. When PNMR performs a quantitative analysis for PNM or TNMP, a discounted cash flow methodology is primarily used to estimate the fair value of the reporting unit. This analysis requires significant judgments, including estimations of future cash flows, which is dependent on internal forecasts, estimations 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. When PNMR performs a qualitative or quantitative analysis for PNM or TNMP, PNMR considers market and macroeconomic factors including changes in growth rates, changes in the Weighted Average Cost of Capital ("WACC"), and changes in discount rates. PNMR also evaluates its stock price relative to historical performance, industry peers, and to major market indices, including an evaluation of PNMR’s market capitalization relative to the carrying value of its reporting units. For its annual evaluations performed as of April 1, 2021, PNMR performed a qualitative analysis for both the PNM and TNMP reporting units. In addition to the typical considerations discussed above, the qualitative analysis considered changes in the Company's expectations of future financial performance since the April 1, 2018 quantitative analysis performed for PNM and qualitative analyses through April 1, 2019, as well as the quantitative analysis performed for TNMP at April 1, 2020 and qualitative analysis through April 1, 2020. 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%. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2021 carrying value of PNM exceeded its fair value. The April 1, 2020 quantitative evaluations indicated the fair value of the TNMP reporting unit, which has goodwill of $226.7 million, exceeded its carrying value by approximately 38%. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2021 carrying value of TNMP exceeded its fair value. For its annual evaluations performed as of April 1, 2022, PNMR performed a qualitative analysis for both the PNM and TNMP reporting units. In addition to the typical considerations discussed above, the qualitative analysis considered changes in the Company's expectations of future financial performance since the April 1, 2018 quantitative analysis and the previous qualitative analyses through April 1, 2021 performed for PNM, as well as the April 1, 2020 quantitative analysis and the previous qualitative analyses performed for TNMP. This analysis considered Company specific events such as the Merger, potential impacts of legal and regulatory matters discussed in Note 11 and Note 12, including potential outcomes in PNM’s San Juan Abandonment Application, PNM's Four Corners Abandonment Application, and other potential impacts of changes in PNM’s resource needs based on PNM’s 2020 IRP. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2022 carrying values of PNM and TNMP exceeded their fair value. Since the April 1, 2022 annual evaluation, there have been no events or indications that the fair values of the reporting units with recorded goodwill have decreased below their carrying values. |
Merger
Merger | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Merger | Merger On October 20, 2020, PNMR, Avangrid and Merger Sub entered into the Merger Agreement pursuant to which Merger Sub will merge with and into PNMR, with PNMR surviving the Merger as a wholly-owned subsidiary of Avangrid. Pursuant to the Merger Agreement, each issued and outstanding share of PNMR common stock at the Effective Time will be converted into the right to receive $50.30 in cash. The proposed Merger has been unanimously approved by the Boards of Directors of PNMR, Avangrid and Merger Sub and approved by PNMR shareholders at the Special Meeting of Shareholders held on February 12, 2021. The Merger Agreement provided that it may be terminated by each of PNMR and Avangrid under certain circumstances, including if the Effective Time shall not have occurred by the January 20, 2022 End Date; however, either PNMR or Avangrid could extend the End Date to April 20, 2022 if all conditions to closing have been satisfied other than the obtaining of all required regulatory approvals. As discussed below, on December 8, 2021, the NMPRC issued an order rejecting the stipulation agreement relating to the Merger. In light of the NMPRC ruling, on January 3, 2022, PNMR, Avangrid and Merger Sub entered into an Amendment to the Merger Agreement pursuant to which PNMR and Avangrid agreed to extend the End Date to April 20, 2023. The Merger is subject to certain regulatory approvals, including from the NMPRC. The Joint Applicants to the NMPRC application and a number of intervening parties had entered into an amended stipulation and agreement in the Joint Application for approval of Merger pending before the NMPRC. An evidentiary hearing was held in August 2021. On November 1, 2021, a Certification of Stipulation was issued by the hearing examiner, which recommended against approval of the amended stipulation. On December 8, 2021, the NMPRC issued an order adopting the Certification of Stipulation, rejecting the amended stipulation reached by the parties. On January 3, 2022, PNMR and Avangrid filed a notice of appeal with the NM Supreme Court. On February 2, 2022, PNMR and Avangrid filed a statement of issues outlining the argument for appeal. On April 7, 2022, PNMR and Avangrid filed their Brief in Chief with the NM Supreme Court. Answer briefs from the NMPRC were filed on June 14, 2022, and response briefs were filed on August 5, 2022. With respect to other regulatory proceedings related to the Merger, in 2021 PNMR received clearances for the Merger from the FTC under the HSR Act, CFIUS, the FCC, FERC, the PUCT, and the NRC. As a result of the delay in closing of the Merger due to the need to obtain NMPRC approval, PNMR and Avangrid were required to make a new filing under the HSR Act and request extensions of approvals previously received from the FCC and NRC. On February 9, 2022, the request for extension was filed with the NRC and an order granting a one-year extension was received on May 10, 2022. PNM has received approval from the FCC that runs through March 9, 2023. PNMR and Avangrid expect to make a new filing under the HSR Act later in 2022. No additional approvals are required from CFIUS, FERC or the PUCT. Consummation of the Merger remains subject to the satisfaction or waiver of certain customary closing conditions, including, without limitation, the absence of any material adverse effect on PNMR, the receipt of required regulatory approval from the NMPRC, and the agreements relating to the divestiture of Four Corners being in full force and effect and all applicable regulatory filings associated therewith being made. The agreement relating to the divestiture of Four Corners has been entered into and is in full effect and related filings have been made with the NMPRC. The Merger Agreement provides for certain customary termination rights. The Merger Agreement further provides that, upon termination of the Merger Agreement under certain specified circumstances (including if Avangrid terminates the Merger Agreement due to a change in recommendation of the Board or if PNMR terminates the Merger Agreement to accept a superior proposal (as defined in the Merger Agreement) and in either case prior to PNMR's shareholder having approved the Merger), PNMR will be required to pay Avangrid a termination fee of $130.0 million. In addition, the Merger Agreement provides that (i) if the Merger Agreement is terminated by either party due to a failure of a regulatory closing condition and such failure is the result of Avangrid’s breach of its regulatory covenants or (ii) Avangrid fails to effect the closing when all closing conditions have been satisfied and it is otherwise obligated to do so under the Merger Agreement, then, in either such case, upon termination of the Merger Agreement, Avangrid will be required to pay PNMR a termination fee of $184.0 million as the sole and exclusive remedy. Upon the termination of the Merger Agreement under certain specified circumstances involving a breach of the Merger Agreement, either PNMR or Avangrid will be required to reimburse the other party’s reasonable and documented out-of-pocket fees and expenses up to $10.0 million (which amount will be credited toward, and offset against, the payment of any applicable termination fee). |
Significant Accounting Polici_2
Significant Accounting Policies and Responsibility for Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia. See Note 6. 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. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. PNMR SEGMENT INFORMATION PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended September 30, 2022 Electric operating revenues $ 597,337 $ 132,551 $ — $ 729,888 Cost of energy 303,351 30,988 — 334,339 Utility margin 293,986 101,563 — 395,549 Other operating expenses 108,710 32,766 (5,260) 136,216 Depreciation and amortization 45,361 24,960 6,249 76,570 Operating income (loss) 139,915 43,837 (989) 182,763 Interest income (expense) 3,888 148 (67) 3,969 Other income (deductions) (14,443) 2,243 181 (12,019) Interest charges (15,467) (9,851) (9,208) (34,526) Segment earnings (loss) before income taxes 113,893 36,377 (10,083) 140,187 Income taxes (benefit) 12,121 4,946 (3,617) 13,450 Segment earnings (loss) 101,772 31,431 (6,466) 126,737 Valencia non-controlling interest (4,172) — — (4,172) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 97,468 $ 31,431 $ (6,466) $ 122,433 Nine Months Ended September 30, 2022 Electric operating revenues $ 1,312,800 $ 360,936 $ — $ 1,673,736 Cost of energy 606,129 92,220 — 698,349 Utility margin 706,671 268,716 — 975,387 Other operating expenses 335,173 89,723 (15,835) 409,061 Depreciation and amortization 137,132 72,914 19,057 229,103 Operating income (loss) 234,366 106,079 (3,222) 337,223 Interest income (expense) 10,288 1,435 (135) 11,588 Other income (deductions) (81,475) 4,303 384 (76,788) Interest charges (44,562) (28,017) (17,384) (89,963) Segment earnings (loss) before income taxes 118,617 83,800 (20,357) 182,060 Income taxes (benefit) 11,762 11,258 (6,038) 16,982 Segment earnings (loss) 106,855 72,542 (14,319) 165,078 Valencia non-controlling interest (10,897) — — (10,897) Subsidiary preferred stock dividends (396) — — (396) Segment earnings (loss) attributable to PNMR $ 95,562 $ 72,542 $ (14,319) $ 153,785 At September 30, 2022: Total Assets $ 6,113,416 $ 2,673,546 $ 241,928 $ 9,028,890 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 PNM TNMP Corporate PNMR Consolidated (In thousands) Three Months Ended September 30, 2021 Electric operating revenues $ 435,523 $ 119,028 $ — $ 554,551 Cost of energy 170,902 28,478 — 199,380 Utility margin 264,621 90,550 — 355,171 Other operating expenses 107,385 28,677 (4,058) 132,004 Depreciation and amortization 42,673 23,031 5,734 71,438 Operating income (loss) 114,563 38,842 (1,676) 151,729 Interest income (expense) 3,364 — (35) 3,329 Other income 1,358 1,144 34 2,536 Interest charges (12,509) (8,403) (2,332) (23,244) Segment earnings (loss) before income taxes 106,776 31,583 (4,009) 134,350 Income taxes (benefit) 15,500 3,642 (2,474) 16,668 Segment earnings (loss) 91,276 27,941 (1,535) 117,682 Valencia non-controlling interest (4,229) — — (4,229) Subsidiary preferred stock dividends (132) — — (132) Segment earnings (loss) attributable to PNMR $ 86,915 $ 27,941 $ (1,535) $ 113,321 Nine Months Ended September 30, 2021 Electric operating revenues $ 1,030,685 $ 315,113 $ — $ 1,345,798 Cost of energy 383,556 83,896 — 467,452 Utility margin 647,129 231,217 — 878,346 Other operating expenses 320,638 82,950 (6,379) 397,209 Depreciation and amortization 127,111 67,696 17,232 212,039 Operating income (loss) 199,380 80,571 (10,853) 269,098 Interest income 10,376 — 90 10,466 Other income (deductions) 13,705 3,251 (92) 16,864 Interest charges (38,441) (25,155) (9,651) (73,247) Segment earnings (loss) before income taxes 185,020 58,667 (20,506) 223,181 Income taxes (benefit) 26,178 6,341 (5,986) 26,533 Segment earnings (loss) 158,842 52,326 (14,520) 196,648 Valencia non-controlling interest (11,643) — — (11,643) Subsidiary preferred stock dividends (396) — — (396) Segment earnings (loss) attributable to PNMR $ 146,803 $ 52,326 $ (14,520) $ 184,609 At September 30, 2021: Total Assets $ 5,723,176 $ 2,311,559 $ 221,335 $ 8,256,070 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 |
Public Utilities General Disclosures | PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP however, the calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below. PNM TNMP Corporate and Other PNMR Consolidated (In thousands) Three Months Ended September 30, 2022 Gross margin $ 201,607 $ 67,614 $ — $ 269,221 Energy production costs 34,469 — — 34,469 Transmission and distribution costs 12,549 8,989 — 21,538 Depreciation and amortization 45,361 24,960 — 70,321 1 Utility margin $ 293,986 $ 101,563 $ — $ 395,549 Nine Months Ended September 30, 2022 Gross margin $ 421,327 $ 172,320 $ — $ 593,647 Energy production costs 110,534 — — 110,534 Transmission and distribution costs 37,678 23,482 — 61,160 Depreciation and amortization 137,132 72,914 — 210,046 1 Utility margin $ 706,671 $ 268,716 $ — $ 975,387 Three Months Ended September 30, 2021 Gross margin $ 176,730 $ 60,367 $ — $ 237,097 Energy production costs 32,374 — — 32,374 Transmission and distribution costs 12,844 7,152 — 19,996 Depreciation and amortization 42,673 23,031 — 65,704 1 Utility margin $ 264,621 $ 90,550 $ — $ 355,171 Nine Months Ended September 30, 2021 Gross margin $ 378,403 $ 142,261 $ — $ 520,664 Energy production costs 106,709 — — 106,709 Transmission and distribution costs 34,906 21,260 — 56,166 Depreciation and amortization 127,111 67,696 — 194,807 1 Utility margin $ 647,129 $ 231,217 $ — $ 878,346 1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information regarding accumulated other comprehensive income (loss) for the nine months ended September 30, 2022 and 2021 is as follows: Accumulated Other Comprehensive Income (Loss) PNM Corporate and Other PNMR Consolidated Unrealized Pension Fair Value Total Total (In thousands) Balance at December 31, 2021 $ 11,715 $ (83,651) $ (71,936) $ — $ (71,936) Amounts reclassified from AOCI (pre-tax) (3,426) 5,328 1,902 (1,767) 135 Income tax impact of amounts reclassified 870 (1,353) (483) 449 (34) Other OCI changes (pre-tax) (8,170) — (8,170) 10,391 2,221 Income tax impact of other OCI changes 2,075 — 2,075 (2,640) (565) Net after-tax change (8,651) 3,975 (4,676) 6,433 1,757 Balance at September 30, 2022 $ 3,064 $ (79,676) $ (76,612) $ 6,433 $ (70,179) Balance at December 31, 2020 $ 20,403 $ (98,914) $ (78,511) $ (672) $ (79,183) Amounts reclassified from AOCI (pre-tax) (8,120) 6,261 (1,859) (903) (2,762) Income tax impact of amounts reclassified 2,062 (1,590) 472 229 701 Other OCI changes (pre-tax) (968) — (968) 1,804 836 Income tax impact of other OCI changes 246 — 246 (458) (212) Net after-tax change (6,780) 4,671 (2,109) 672 (1,437) Balance at September 30, 2021 $ 13,623 $ (94,243) $ (80,620) $ — $ (80,620) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Information regarding the computation of earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 122,433 $ 113,321 $ 153,785 $ 184,609 Average Number of Common Shares: Outstanding during period 85,835 85,835 85,835 85,835 Vested awards of restricted stock 266 237 291 230 Average Shares – Basic 86,101 86,072 86,126 86,065 Dilutive Effect of Common Stock Equivalents: Restricted stock 35 41 52 41 Average Shares – Diluted 86,136 86,113 86,178 86,106 Net Earnings Per Share of Common Stock: Basic $ 1.42 $ 1.32 $ 1.79 $ 2.14 Diluted $ 1.42 $ 1.32 $ 1.78 $ 2.14 |
Electric Operating Revenues (Ta
Electric Operating Revenues (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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. PNM TNMP PNMR Consolidated Three Months Ended September 30, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 150,682 $ 60,878 $ 211,560 Commercial 136,314 41,705 178,019 Industrial 25,609 9,450 35,059 Public authority 6,893 1,720 8,613 Economy energy service 11,784 — 11,784 Transmission 44,513 28,881 73,394 Miscellaneous 12,576 961 13,537 Total revenues from contracts with customers 388,371 143,595 531,966 Alternative revenue programs (599) (11,044) (11,643) Other electric operating revenues (1) 209,565 — 209,565 Total Electric Operating Revenues $ 597,337 $ 132,551 $ 729,888 Nine Months Ended September 30, 2022 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 368,159 $ 146,367 $ 514,526 Commercial 325,492 111,365 436,857 Industrial 68,351 27,388 95,739 Public authority 16,063 4,806 20,869 Economy energy service 31,726 — 31,726 Transmission 114,699 83,731 198,430 Miscellaneous 19,745 2,887 22,632 Total revenues from contracts with customers 944,235 376,544 1,320,779 Alternative revenue programs 1,039 (15,608) (14,569) Other electric operating revenues (1) 367,526 — 367,526 Total Electric Operating Revenues $ 1,312,800 $ 360,936 $ 1,673,736 (1) Increase in 2022 is primarily the result of participation in the EIM beginning in April 2021. PNM TNMP PNMR Consolidated Three Months Ended September 30, 2021 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 155,035 $ 51,839 $ 206,874 Commercial 137,071 34,434 171,505 Industrial 24,856 7,282 32,138 Public authority 7,388 1,614 9,002 Economy energy service 7,389 — 7,389 Transmission 26,459 24,075 50,534 Miscellaneous 3,503 936 4,439 Total revenues from contracts with customers 361,701 120,180 481,881 Alternative revenue programs (8,331) (1,152) (9,483) Other electric operating revenues 82,153 — 82,153 Total Electric Operating Revenues $ 435,523 $ 119,028 $ 554,551 Nine Months Ended September 30, 2021 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 377,794 $ 121,600 $ 499,394 Commercial 327,090 93,332 420,422 Industrial 66,593 21,621 88,214 Public authority 17,312 4,561 21,873 Economy energy service 24,722 — 24,722 Transmission 60,919 68,849 129,768 Miscellaneous 10,129 2,837 12,966 Total revenues from contracts with customers 884,559 312,800 1,197,359 Alternative revenue programs (5,469) 2,313 (3,156) Other electric operating revenues 151,595 — 151,595 Total Electric Operating Revenues $ 1,030,685 $ 315,113 $ 1,345,798 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Summarized Financial Information | Summarized financial information for Valencia is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Operating revenues $ 5,640 $ 5,719 $ 15,670 $ 16,425 Operating expenses 1,468 1,490 4,773 4,782 Earnings attributable to non-controlling interest $ 4,172 $ 4,229 $ 10,897 $ 11,643 Financial Position September 30, December 31, 2022 2021 (In thousands) Current assets $ 3,918 $ 3,042 Net property, plant, and equipment 50,780 52,908 Total assets 54,698 55,950 Current liabilities 851 545 Owners’ equity – non-controlling interest $ 53,847 $ 55,405 |
Fair Value of Derivative and _2
Fair Value of Derivative and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Derivative and Other Financial Instruments [Abstract] | |
Summary of Derivatives | PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets: Economic Hedges September 30, December 31, (In thousands) Other current assets $ 5,466 $ 684 Other deferred charges 170 — 5,636 684 Other current liabilities (17,346) (2,275) Other deferred credits (2,723) — (20,069) (2,275) Net $ (14,433) $ (1,591) |
Schedule of Commodity Contract Volume Positions | Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM's net buy (sell) volume positions: Economic Hedges MMBTU MWh September 30, 2022 — 302,880 December 31, 2021 — 122,400 |
Schedule of Gross Realized Gains and Losses | Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ (2,210) $ (309) $ 1,735 $ 5,931 Net gains (losses) from equity securities still held (4,061) (3,153) (52,320) 2,388 Total net gains (losses) on equity securities (6,271) (3,462) (50,585) 8,319 Available-for-sale debt securities: Net gains (losses) on debt securities (9,465) 5,410 (33,519) 7,789 Net gains (losses) on investment securities $ (15,736) $ 1,948 $ (84,104) $ 16,108 Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Proceeds from sales $ 92,371 $ 128,683 $ 323,251 $ 396,870 Gross realized gains 2,366 10,986 20,089 30,290 Gross realized (losses) (6,908) (6,527) (23,109) (17,776) |
Investments Classified by Contractual Maturity Date | At September 30, 2022, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 38,433 After 1 year through 5 years 64,326 After 5 years through 10 years 70,355 After 10 years through 15 years 15,098 After 15 years through 20 years 11,897 After 20 years 30,072 $ 230,181 |
Schedule of Investments | Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unrealized Gains (In thousands) September 30, 2022 Cash and cash equivalents $ 15,385 $ 15,385 $ — Equity securities: Corporate stocks, common 59,781 59,781 — Corporate stocks, preferred 5,955 1,314 4,641 Mutual funds and other 65,360 65,360 — Available-for-sale debt securities: U.S. government 43,175 43,175 — $ 1,182 International government 9,540 — 9,540 318 Municipals 42,287 — 42,287 9 Corporate and other 135,179 135,179 2,635 $ 376,662 $ 185,015 $ 191,647 $ 4,144 December 31, 2021 Cash and cash equivalents $ 7,895 $ 7,895 $ — Equity securities: Corporate stocks, common 97,626 97,626 — Corporate stocks, preferred 9,114 3,775 5,339 Mutual funds and other 75,285 75,241 44 Available-for-sale debt securities: U.S. government 43,128 13,204 29,924 $ 214 International government 16,001 — 16,001 1,508 Municipals 47,050 — 47,050 1,807 Corporate and other 167,027 — 167,027 12,212 $ 463,126 $ 197,741 $ 265,385 $ 15,741 |
Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value | The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below: Carrying Amount Fair Value September 30, 2022 (In thousands) PNMR $ 4,078,184 $ 3,694,753 PNM 2,000,635 1,763,306 TNMP 1,077,977 931,447 December 31, 2021 PNMR $ 3,698,919 $ 3,915,010 PNM 1,881,110 1,975,987 TNMP 918,050 1,039,023 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity | The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Nine Months Ended September 30, Restricted Shares and Performance Based Shares 2022 2021 Expected quarterly dividends per share $ 0.3475 $ 0.3275 Risk-free interest rate 1.46 % 0.32 % Market-Based Shares Dividend yield — % 2.76 % Expected volatility — % 33.69 % Risk-free interest rate — % 0.29 % The following table summarizes activity in restricted stock awards, including performance-based and market-based shares for the nine months ended September 30, 2022: Restricted Stock Shares Weighted- Outstanding at December 31, 2021 167,270 $ 43.71 Granted 193,943 41.04 Released (172,409) 42.48 Forfeited (2,709) 42.48 Outstanding at September 30, 2022 186,095 $ 42.09 The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares: Nine Months Ended September 30, Restricted Stock 2022 2021 Weighted-average grant date fair value $ 41.04 $ 43.48 Total fair value of restricted shares that vested (in thousands) $ 7,804 $ 10,018 |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-term debt outstanding consists of: September 30, December 31, Short-term Debt 2022 2021 (In thousands) PNM: PNM Revolving Credit Facility $ — $ 7,400 — 7,400 TNMP Revolving Credit Facility 3,000 400 PNMR Revolving Credit Facility 57,200 54,900 $ 60,200 $ 62,700 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table presents the components of the PNM Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 2 $ 5 $ — $ — Interest cost 4,215 4,036 479 476 90 90 Expected return on plan assets (7,140) (7,133) (1,088) (1,042) — — Amortization of net loss 3,948 4,541 — — 81 99 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 1,023 $ 1,444 $ (607) $ (561) $ 171 $ 189 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 6 $ 18 $ — $ — Interest cost 12,643 12,107 1,437 1,430 270 271 Expected return on plan assets (21,422) (21,398) (3,264) (3,125) — — Amortization of net loss 11,846 13,624 — — 245 296 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 3,067 $ 4,333 $ (1,821) $ (1,677) $ 515 $ 567 The following table presents the components of the TNMP Plans’ net periodic benefit cost: Three Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 9 $ 12 $ — $ — Interest cost 430 435 77 77 2 4 Expected return on plan assets (618) (795) (104) (101) — — Amortization of net (gain) loss 233 311 (130) (81) — 8 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 45 $ (49) $ (148) $ (93) $ 2 $ 12 Nine Months Ended September 30, Pension Plan OPEB Plan Executive Retirement Program 2022 2021 2022 2021 2022 2021 (In thousands) Components of Net Periodic Benefit Cost Service cost $ — $ — $ 27 $ 34 $ — $ — Interest cost 1,290 1,306 231 231 8 13 Expected return on plan assets (1,854) (2,386) (312) (304) — — Amortization of net (gain) loss 699 935 (390) (242) — 25 Amortization of prior service cost — — — — — — Net Periodic Benefit Cost (Income) $ 135 $ (145) $ (444) $ (281) $ 8 $ 38 |
Regulatory and Rate Matters (Ta
Regulatory and Rate Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Public Utilities, Property, Plant And Equipment, Plant Abandonment, Amortization of Present Value of Regulated Asset For Plant Abandonment | On September 29, 2022, SJGS was removed from service and as a result, PNM made the following adjustments on the Condensed Consolidated Balance Sheets as of September 30, 2022: Net Increase (decrease) (In thousands) Current Assets: Inventory $ (6,430) Utility Plant: Net utility plant $ (382,798) Deferred Charges and Other Assets: Regulatory assets - ETA (1) $ 289,381 Regulatory assets - Non-ETA (2) $ 22,593 Deferred Credits and Other Liabilities: Regulatory liabilities (3) $ (77,254) $ — (1) To be recovered through the Energy Transition Charge, which includes undepreciated investments of $274.9 million and plant decommissioning of $14.5 million, previously reflected in Net utility plant. (2) Authorized to be recorded as regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA to preserve its ability to recover the costs in a future general rate case, which includes obsolete inventory of $6.4 million and plant decommissioning of $16.2 million, previously reflected in Net utility plant. (3) Includes cost of removal and accelerated depreciation of SNCRs. |
Schedule of Rate Increases for Transmission Costs | The following sets forth TNMP’s recent interim transmission cost rate increases: Effective Date Approved Increase in Rate Base Annual Increase in Revenue (In millions) September 20, 2021 41.2 6.3 March 25, 2022 95.6 14.2 September 22, 2022 36.0 5.3 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below: September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 58,670 $ 3,769 $ 62,440 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 16,902 1,631 18,534 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,754 1,947 41,701 52,552 3,155 55,993 September 30, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Financing leases: Non-utility property $ 18,151 $ 18,372 $ 36,853 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (6,843) (7,256) (14,340) (4,550) (4,923) (9,660) Non-utility property, net 11,308 11,116 22,513 10,621 11,258 22,035 Other current liabilities $ 3,248 $ 3,508 $ 6,827 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 7,962 7,620 15,602 7,732 8,273 16,075 Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of September 30, 2022 is presented below: PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.98 2.35 6.69 Financing leases 4.01 3.48 3.74 Weighted average discount rate: Operating leases 4.01 % 4.00 % 4.01 % Financing leases 3.07 % 3.09 % 3.08 % |
Lease, Cost | Information for the components of lease expense is as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,736 $ 466 $ 7,205 $ 20,085 $ 1,489 $ 21,623 Amounts capitalized (166) (410) (577) (524) (1,336) (1,860) Total operating lease expense 6,570 56 6,628 19,561 153 19,763 Financing lease cost: Amortization of right-of-use assets 792 779 1,585 2,293 2,334 4,680 Interest on lease liabilities 84 85 170 231 238 471 Amounts capitalized (588) (829) (1,417) (1,648) (2,309) (3,957) Total financing lease expense 288 35 338 876 263 1,194 Variable lease expense 262 — 262 629 — 629 Short-term lease expense (1) 568 1 567 2,837 4 2,884 Total lease expense for the period $ 7,688 $ 92 $ 7,795 $ 23,903 $ 420 $ 24,470 (1) Includes expense of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022. For additional information on the SJGS Unit 1 outage see Note 12. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating lease cost: $ 6,569 $ 594 $ 7,192 $ 20,020 $ 1,880 $ 22,006 Amounts capitalized (199) (517) (716) (645) (1,618) (2,264) Total operating lease expense 6,370 77 6,476 19,375 262 19,742 Financing lease cost: Amortization of right-of-use assets 657 693 1,372 1,793 1,944 3,802 Interest on lease liabilities 66 78 145 193 230 426 Amounts capitalized (452) (709) (1,161) (1,235) (1,967) (3,202) Total financing lease expense 271 62 356 751 207 1,026 Variable lease expense 106 — 106 274 — 274 Short-term lease expense 1,572 2 1,578 1,821 6 1,857 Total lease expense for the period $ 8,319 $ 141 $ 8,516 $ 22,221 $ 475 $ 22,899 |
Schedule of Leases, Supplemental Cash Flows | Supplemental cash flow information related to the Company’s leases is as follows: Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25,503 $ 118 $ 25,670 $ 25,511 $ 262 $ 25,897 Operating cash flows from financing leases 67 32 101 65 24 92 Finance cash flows from financing leases 810 371 1,249 621 234 920 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ — $ 2,924 $ — $ 317 $ 317 Financing leases 3,032 2,349 5,381 2,898 2,642 5,567 |
Lessee, Operating Lease, Liability, Maturity | Future expected lease payments are shown below: As of September 30, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2022 $ 898 $ 10,234 $ 976 $ 455 $ 1,896 $ 10,725 2023 3,497 8,779 3,698 1,546 7,251 10,465 2024 2,777 7,217 3,125 943 5,916 8,171 2025 1,940 7,076 2,192 770 4,134 7,847 2026 1,513 7,014 1,113 76 2,626 7,090 Later years 1,324 24,384 632 — 1,956 24,384 Total minimum lease payments 11,949 64,704 11,736 3,790 23,779 68,682 Less: Imputed interest 739 8,048 608 212 1,350 8,447 Lease liabilities as of September 30, 2022 $ 11,210 $ 56,656 $ 11,128 $ 3,578 $ 22,429 $ 60,235 |
Finance Lease, Liability, Maturity | Future expected lease payments are shown below: As of September 30, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) Remainder of 2022 $ 898 $ 10,234 $ 976 $ 455 $ 1,896 $ 10,725 2023 3,497 8,779 3,698 1,546 7,251 10,465 2024 2,777 7,217 3,125 943 5,916 8,171 2025 1,940 7,076 2,192 770 4,134 7,847 2026 1,513 7,014 1,113 76 2,626 7,090 Later years 1,324 24,384 632 — 1,956 24,384 Total minimum lease payments 11,949 64,704 11,736 3,790 23,779 68,682 Less: Imputed interest 739 8,048 608 212 1,350 8,447 Lease liabilities as of September 30, 2022 $ 11,210 $ 56,656 $ 11,128 $ 3,578 $ 22,429 $ 60,235 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below summarizes the nature and amount of related party transactions of PNMR, PNM, TNMP, and NMRD: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Services billings: PNMR to PNM $ 26,281 $ 23,617 $ 82,352 $ 75,992 PNMR to TNMP 9,554 9,187 30,110 29,687 PNM to TNMP 107 107 322 319 TNMP to PNMR 35 — 106 24 PNMR to NMRD 81 55 226 165 Renewable energy purchases: PNM from NMRD 3,221 3,384 9,642 9,473 Interconnection and facility study billings: PNM to NMRD — 225 — 225 PNM to PNMR — — — — NMRD to PNM — — — 1,276 Interest billings: PNMR to PNM 4 — 13 — PNM to PNMR 73 36 143 108 PNMR to TNMP 50 — 166 — Income tax sharing payments: PNMR to PNM — — — — TNMP to PNMR — — — — |
Equity Method Investment (Table
Equity Method Investment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Marketable Securities | Summarized financial information for NMRD is as follows: Results of Operations Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Operating revenues $ 3,407 $ 3,543 $ 10,224 $ 10,179 Operating expenses 2,381 2,422 7,172 7,360 Net earnings $ 1,026 $ 1,121 $ 3,052 $ 2,819 Financial Position September 30, December 31, 2022 2021 (In thousands) Current assets $ 6,750 $ 10,729 Net property, plant, and equipment 166,229 166,495 Non-current assets 9,749 2,289 Total assets 182,728 179,513 Current liabilities 1,017 824 Non-current liabilities 363 373 Owners’ equity $ 181,348 $ 178,316 |
Significant Accounting Polici_3
Significant Accounting Policies and Responsibility for Financial Statements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Aug. 31, 2022 | Sep. 30, 2021 | Jul. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Dividends Payable [Line Items] | ||||||||
Payment defaults under agreements | $ 0 | $ 0 | $ 0 | |||||
Dividends declared per common share (dollars per share) | $ 0.3475 | $ 0.3475 | $ 0.3275 | $ 0.3275 | $ 0.3475 | $ 0.3275 | $ 1.0425 | $ 0.9825 |
Dividends declared on common stock | $ 59,655,000 | $ 56,222,000 | $ 119,311,000 | $ 84,333,000 | ||||
PNMR | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 68,000,000 | 0 | 68,000,000 | 52,000,000 | ||||
PNM | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends declared on common stock | 85,000,000 | 60,000,000 | 85,000,000 | 60,000,000 | ||||
Texas-New Mexico Power Company | ||||||||
Dividends Payable [Line Items] | ||||||||
Equity contribution from parent | 68,000,000 | 52,000,000 | ||||||
Dividends declared on common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Apr. 01, 2018 USD ($) | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | $ 729,888 | $ 554,551 | $ 1,673,736 | $ 1,345,798 | ||
Utility margin | 269,221 | 237,097 | 593,647 | 520,664 | ||
Other operating expenses | 136,216 | 132,004 | 409,061 | 397,209 | ||
Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 | ||
Operating income | 182,763 | 151,729 | 337,223 | 269,098 | ||
Interest income (expense) | 3,969 | 3,329 | 11,588 | 10,466 | ||
Other income (deductions) | (12,019) | 2,536 | (76,788) | 16,864 | ||
Interest Charges | (34,526) | (23,244) | (89,963) | (73,247) | ||
Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 | ||
Income taxes (benefit) | 13,450 | 16,668 | 16,982 | 26,533 | ||
Net Earnings | 126,737 | 117,682 | 165,078 | 196,648 | ||
Valencia non-controlling interest | (4,172) | (4,229) | (10,897) | (11,643) | ||
Subsidiary preferred stock dividends | (132) | (132) | (396) | (396) | ||
Net Earnings Available for PNM Common Stock | 122,433 | 113,321 | 153,785 | 184,609 | ||
Total Assets | 9,028,890 | 8,256,070 | 9,028,890 | 8,256,070 | $ 8,666,885 | |
Goodwill | 278,297 | 278,297 | $ 278,297 | 278,297 | 278,297 | |
PNM | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 597,337 | 435,523 | $ 1,312,800 | 1,030,685 | ||
Depreciation and amortization | 45,361 | 42,673 | 137,132 | 127,111 | ||
Operating income | 139,915 | 114,563 | 234,366 | 199,380 | ||
Interest Charges | (15,467) | (12,509) | (44,562) | (38,441) | ||
Earnings before Income Taxes | 113,893 | 106,776 | 118,617 | 185,020 | ||
Income taxes (benefit) | 12,121 | 15,500 | 11,762 | 26,178 | ||
Net Earnings | 101,772 | 91,276 | 106,855 | 158,842 | ||
Valencia non-controlling interest | (4,172) | (4,229) | (10,897) | (11,643) | ||
Subsidiary preferred stock dividends | (132) | (132) | (396) | (396) | ||
Net Earnings Available for PNM Common Stock | 97,468 | 86,915 | 95,562 | 146,803 | ||
Total Assets | 6,113,416 | 6,113,416 | 6,060,133 | |||
Goodwill | 51,632 | $ 51,632 | 51,632 | $ 51,600 | ||
TNMP | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 132,551 | 119,028 | $ 360,936 | 315,113 | ||
Cost of energy | 30,988 | 28,478 | 92,220 | 83,896 | ||
Depreciation and amortization | 24,960 | 23,031 | 72,914 | 67,696 | ||
Operating income | 43,837 | 38,842 | 106,079 | 80,571 | ||
Interest Charges | (9,851) | (8,403) | (28,017) | (25,155) | ||
Earnings before Income Taxes | 36,377 | 31,583 | 83,800 | 58,667 | ||
Income taxes (benefit) | 4,946 | 3,642 | 11,258 | 6,341 | ||
Net Earnings | 72,542 | 52,326 | ||||
Total Assets | 2,673,546 | 2,673,546 | 2,364,772 | |||
Goodwill | 226,665 | 226,665 | $ 226,665 | $ 226,700 | ||
PNM | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Utility margin | 201,607 | 176,730 | 421,327 | 378,403 | ||
Other operating expenses | 108,710 | 107,385 | 335,173 | 320,638 | ||
Depreciation and amortization | 45,361 | 42,673 | 137,132 | 127,111 | ||
Operating income | 139,915 | 114,563 | 234,366 | 199,380 | ||
Interest income (expense) | 3,888 | 3,364 | 10,288 | 10,376 | ||
Other income (deductions) | (14,443) | 1,358 | (81,475) | 13,705 | ||
Interest Charges | (15,467) | (12,509) | (44,562) | (38,441) | ||
Earnings before Income Taxes | 113,893 | 106,776 | 118,617 | 185,020 | ||
Income taxes (benefit) | 12,121 | 15,500 | 11,762 | 26,178 | ||
Net Earnings | 101,772 | 91,276 | 106,855 | 158,842 | ||
Valencia non-controlling interest | (4,172) | (4,229) | (10,897) | (11,643) | ||
Subsidiary preferred stock dividends | (132) | (132) | (396) | (396) | ||
Net Earnings Available for PNM Common Stock | 97,468 | 86,915 | 95,562 | 146,803 | ||
Total Assets | 6,113,416 | 5,723,176 | 6,113,416 | 5,723,176 | ||
Goodwill | 51,632 | 51,632 | 51,632 | 51,632 | ||
TNMP | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Utility margin | 67,614 | 60,367 | 172,320 | 142,261 | ||
Other operating expenses | 32,766 | 28,677 | 89,723 | 82,950 | ||
Depreciation and amortization | 24,960 | 23,031 | 72,914 | 67,696 | ||
Operating income | 43,837 | 38,842 | 106,079 | 80,571 | ||
Interest income (expense) | 148 | 0 | 1,435 | 0 | ||
Other income (deductions) | 2,243 | 1,144 | 4,303 | 3,251 | ||
Interest Charges | (9,851) | (8,403) | (28,017) | (25,155) | ||
Earnings before Income Taxes | 36,377 | 31,583 | 83,800 | 58,667 | ||
Income taxes (benefit) | 4,946 | 3,642 | 11,258 | 6,341 | ||
Net Earnings | 31,431 | 27,941 | 72,542 | 52,326 | ||
Valencia non-controlling interest | 0 | 0 | 0 | 0 | ||
Subsidiary preferred stock dividends | 0 | 0 | 0 | 0 | ||
Net Earnings Available for PNM Common Stock | 31,431 | 27,941 | 72,542 | 52,326 | ||
Total Assets | 2,673,546 | 2,311,559 | 2,673,546 | 2,311,559 | ||
Goodwill | 226,665 | 226,665 | 226,665 | 226,665 | ||
Corporate and Other | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Utility margin | 0 | 0 | 0 | 0 | ||
Other operating expenses | (5,260) | (4,058) | (15,835) | (6,379) | ||
Depreciation and amortization | 6,249 | 5,734 | 19,057 | 17,232 | ||
Operating income | (989) | (1,676) | (3,222) | (10,853) | ||
Interest income (expense) | (67) | (35) | (135) | 90 | ||
Other income (deductions) | 181 | 34 | 384 | (92) | ||
Interest Charges | (9,208) | (2,332) | (17,384) | (9,651) | ||
Earnings before Income Taxes | (10,083) | (4,009) | (20,357) | (20,506) | ||
Income taxes (benefit) | (3,617) | (2,474) | (6,038) | (5,986) | ||
Net Earnings | (6,466) | (1,535) | (14,319) | (14,520) | ||
Valencia non-controlling interest | 0 | 0 | 0 | 0 | ||
Subsidiary preferred stock dividends | 0 | 0 | 0 | 0 | ||
Net Earnings Available for PNM Common Stock | (6,466) | (1,535) | (14,319) | (14,520) | ||
Total Assets | 241,928 | 221,335 | 241,928 | 221,335 | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Energy | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 | ||
Cost of energy | 334,339 | 199,380 | 698,349 | 467,452 | ||
Utility margin | 395,549 | 355,171 | 975,387 | 878,346 | ||
Energy | PNM | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Cost of energy | 303,351 | 170,902 | 606,129 | 383,556 | ||
Energy | PNM | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 597,337 | 435,523 | 1,312,800 | 1,030,685 | ||
Cost of energy | 303,351 | 170,902 | 606,129 | 383,556 | ||
Utility margin | 293,986 | 264,621 | 706,671 | 647,129 | ||
Energy | TNMP | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 132,551 | 119,028 | 360,936 | 315,113 | ||
Cost of energy | 30,988 | 28,478 | 92,220 | 83,896 | ||
Utility margin | 101,563 | 90,550 | 268,716 | 231,217 | ||
Energy | Corporate and Other | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Electric operating revenues | 0 | 0 | 0 | 0 | ||
Cost of energy | 0 | 0 | 0 | 0 | ||
Utility margin | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Schedule
Segment Information - Schedule of Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Gross margin | $ 269,221 | $ 237,097 | $ 593,647 | $ 520,664 |
Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 |
Depreciation and amortization | 70,321 | 65,704 | 210,046 | 194,807 |
Utility margin | 395,549 | 355,171 | 975,387 | 878,346 |
Energy Production | ||||
Segment Reporting Information [Line Items] | ||||
Energy production costs | 34,469 | 32,374 | 110,534 | 106,709 |
Public Service Company of New Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Gross margin | 201,607 | 176,730 | 421,327 | 378,403 |
Transmission and distribution costs | 12,549 | 12,844 | 37,678 | 34,906 |
Depreciation and amortization | 45,361 | 42,673 | 137,132 | 127,111 |
Utility margin | 293,986 | 264,621 | 706,671 | 647,129 |
Public Service Company of New Mexico | Energy Production | ||||
Segment Reporting Information [Line Items] | ||||
Energy production costs | 34,469 | 32,374 | 110,534 | 106,709 |
Texas-New Mexico Power Company | ||||
Segment Reporting Information [Line Items] | ||||
Gross margin | 67,614 | 60,367 | 172,320 | 142,261 |
Transmission and distribution costs | 8,989 | 7,152 | 23,482 | 21,260 |
Depreciation and amortization | 24,960 | 23,031 | 72,914 | 67,696 |
Utility margin | 101,563 | 90,550 | 268,716 | 231,217 |
Texas-New Mexico Power Company | Energy Production | ||||
Segment Reporting Information [Line Items] | ||||
Energy production costs | 0 | 0 | 0 | 0 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Gross margin | 0 | 0 | 0 | 0 |
Transmission and distribution costs | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Utility margin | 0 | 0 | 0 | 0 |
Corporate and Other | Energy Production | ||||
Segment Reporting Information [Line Items] | ||||
Energy production costs | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 2,185,687 | $ 2,145,398 | $ 2,222,929 | $ 2,108,474 |
Total Other Comprehensive Income (Loss) | 6,646 | (1,267) | 1,757 | (1,437) |
Ending balance | 2,255,728 | 2,201,364 | 2,255,728 | 2,201,364 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (76,825) | (79,353) | (71,936) | (79,183) |
Amounts reclassified from AOCI (pre-tax) | 135 | (2,762) | ||
Income tax impact of amounts reclassified | (34) | 701 | ||
Other OCI changes (pre-tax) | 2,221 | 836 | ||
Income tax impact of other OCI changes | (565) | (212) | ||
Total Other Comprehensive Income (Loss) | 6,646 | (1,267) | 1,757 | (1,437) |
Ending balance | (70,179) | (80,620) | (70,179) | (80,620) |
Fair Value Adjustment for Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 0 | (672) | ||
Amounts reclassified from AOCI (pre-tax) | (1,767) | (903) | ||
Income tax impact of amounts reclassified | 449 | 229 | ||
Other OCI changes (pre-tax) | 10,391 | 1,804 | ||
Income tax impact of other OCI changes | (2,640) | (458) | ||
Total Other Comprehensive Income (Loss) | 6,433 | 672 | ||
Ending balance | 6,433 | 0 | 6,433 | 0 |
PNM | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 2,005,541 | 1,920,956 | 2,015,264 | 1,863,752 |
Total Other Comprehensive Income (Loss) | 1,901 | (1,267) | (4,676) | (2,109) |
Ending balance | 2,019,592 | 1,945,851 | 2,019,592 | 1,945,851 |
PNM | Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (78,513) | (79,353) | (71,936) | (78,511) |
Amounts reclassified from AOCI (pre-tax) | 1,902 | (1,859) | ||
Income tax impact of amounts reclassified | (483) | 472 | ||
Other OCI changes (pre-tax) | (8,170) | (968) | ||
Income tax impact of other OCI changes | 2,075 | 246 | ||
Total Other Comprehensive Income (Loss) | 1,901 | (1,267) | (4,676) | (2,109) |
Ending balance | (76,612) | (80,620) | (76,612) | (80,620) |
PNM | Unrealized Gains on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 11,715 | 20,403 | ||
Amounts reclassified from AOCI (pre-tax) | (3,426) | (8,120) | ||
Income tax impact of amounts reclassified | 870 | 2,062 | ||
Other OCI changes (pre-tax) | (8,170) | (968) | ||
Income tax impact of other OCI changes | 2,075 | 246 | ||
Total Other Comprehensive Income (Loss) | (8,651) | (6,780) | ||
Ending balance | 3,064 | 13,623 | 3,064 | 13,623 |
PNM | Pension Liability Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (83,651) | (98,914) | ||
Amounts reclassified from AOCI (pre-tax) | 5,328 | 6,261 | ||
Income tax impact of amounts reclassified | (1,353) | (1,590) | ||
Other OCI changes (pre-tax) | 0 | 0 | ||
Income tax impact of other OCI changes | 0 | 0 | ||
Total Other Comprehensive Income (Loss) | 3,975 | 4,671 | ||
Ending balance | $ (79,676) | $ (94,243) | $ (79,676) | $ (94,243) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net Earnings Attributable to PNMR | $ 122,433 | $ 113,321 | $ 153,785 | $ 184,609 |
Average Number of Common Shares: | ||||
Outstanding during period (in shares) | 85,835 | 85,835 | 85,835 | 85,835 |
Vested awards of restricted stock (in shares) | 266 | 237 | 291 | 230 |
Average Shares – Basic (in shares) | 86,101 | 86,072 | 86,126 | 86,065 |
Dilutive Effect of Common Stock Equivalents: | ||||
Restricted stock (in shares) | 35 | 41 | 52 | 41 |
Average Shares – Diluted (in shares) | 86,136 | 86,113 | 86,178 | 86,106 |
Net Earnings Per Share of Common Stock: | ||||
Basic (in dollars per share) | $ 1.42 | $ 1.32 | $ 1.79 | $ 2.14 |
Diluted (in dollars per share) | $ 1.42 | $ 1.32 | $ 1.78 | $ 2.14 |
Electric Operating Revenues - N
Electric Operating Revenues - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) utility | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) utility | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Number of regulated utilities | utility | 2 | 2 | |||
Accounts receivable, allowance for credit loss, period increase | $ (800,000) | $ 500,000 | $ (2,400,000) | $ 2,900,000 | |
Other receivables, allowance for credit loss, period increase | 0 | $ 800,000 | 0 | $ 800,000 | |
Contract assets | 9,100,000 | 9,100,000 | $ 600,000 | ||
Texas-New Mexico Power Company | |||||
Disaggregation of Revenue [Line Items] | |||||
Regulatory assets | 800,000 | 800,000 | 800,000 | ||
PNM | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable | $ 115,600,000 | $ 115,600,000 | $ 86,800,000 |
Electric Operating Revenues - D
Electric Operating Revenues - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 531,966 | $ 481,881 | $ 1,320,779 | $ 1,197,359 |
Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) |
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 |
Revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
PNM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 388,371 | 361,701 | 944,235 | 884,559 |
Alternative revenue programs | (599) | (8,331) | 1,039 | (5,469) |
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 |
Revenues | 597,337 | 435,523 | 1,312,800 | 1,030,685 |
TNMP | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 143,595 | 120,180 | 376,544 | 312,800 |
Alternative revenue programs | (11,044) | (1,152) | (15,608) | 2,313 |
Other electric operating revenue | 0 | 0 | 0 | 0 |
Revenues | 132,551 | 119,028 | 360,936 | 315,113 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 |
Energy | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 211,560 | 206,874 | 514,526 | 499,394 |
Energy | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 178,019 | 171,505 | 436,857 | 420,422 |
Energy | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 35,059 | 32,138 | 95,739 | 88,214 |
Energy | Public authority | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 8,613 | 9,002 | 20,869 | 21,873 |
Energy | Economy energy service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 11,784 | 7,389 | 31,726 | 24,722 |
Energy | PNM | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 150,682 | 155,035 | 368,159 | 377,794 |
Energy | PNM | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 136,314 | 137,071 | 325,492 | 327,090 |
Energy | PNM | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 25,609 | 24,856 | 68,351 | 66,593 |
Energy | PNM | Public authority | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 6,893 | 7,388 | 16,063 | 17,312 |
Energy | PNM | Economy energy service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 11,784 | 7,389 | 31,726 | 24,722 |
Energy | TNMP | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 60,878 | 51,839 | 146,367 | 121,600 |
Energy | TNMP | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 41,705 | 34,434 | 111,365 | 93,332 |
Energy | TNMP | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 9,450 | 7,282 | 27,388 | 21,621 |
Energy | TNMP | Public authority | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,720 | 1,614 | 4,806 | 4,561 |
Energy | TNMP | Economy energy service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 73,394 | 50,534 | 198,430 | 129,768 |
Transmission | PNM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 44,513 | 26,459 | 114,699 | 60,919 |
Transmission | TNMP | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 28,881 | 24,075 | 83,731 | 68,849 |
Miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 13,537 | 4,439 | 22,632 | 12,966 |
Miscellaneous | PNM | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 12,576 | 3,503 | 19,745 | 10,129 |
Miscellaneous | TNMP | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 961 | $ 936 | $ 2,887 | $ 2,837 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2016 USD ($) | |
Results of Operations | ||||||
Operating revenues | $ 729,888 | $ 554,551 | $ 1,673,736 | $ 1,345,798 | ||
Operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 | ||
Earnings attributable to non-controlling interest | 4,172 | 4,229 | 10,897 | 11,643 | ||
Financial Position | ||||||
Current assets | 409,774 | 409,774 | $ 324,600 | |||
Assets | 9,028,890 | 8,256,070 | 9,028,890 | 8,256,070 | 8,666,885 | |
Current liabilities | 666,469 | 666,469 | 664,213 | |||
Owners’ equity – non-controlling interest | 53,847 | 53,847 | 55,405 | |||
San Juan Generating Station | Coal supply | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash used to support bank letter or credit arrangement | $ 30,300 | |||||
PNM | ||||||
Results of Operations | ||||||
Operating revenues | 597,337 | 435,523 | 1,312,800 | 1,030,685 | ||
Operating expenses | 457,422 | 320,960 | 1,078,434 | 831,305 | ||
Earnings attributable to non-controlling interest | 4,172 | 4,229 | 10,897 | 11,643 | ||
Financial Position | ||||||
Current assets | 331,221 | 331,221 | 266,689 | |||
Assets | 6,113,416 | 6,113,416 | 6,060,133 | |||
Current liabilities | 497,059 | 497,059 | 495,902 | |||
Owners’ equity – non-controlling interest | 53,847 | 53,847 | 55,405 | |||
PNM | Valencia | ||||||
Variable Interest Entity [Line Items] | ||||||
Payment for fixed costs | 5,000 | 5,000 | 14,600 | 14,900 | ||
Payment for variable costs | 700 | 700 | $ 1,100 | 1,600 | ||
Long-term contract option to purchase, ownership percentage (up to) | 50% | |||||
Long-term contract option to purchase, purchase price - percentage of adjusted NBV | 50% | |||||
Long-term contract option to purchase, purchase price - percentage of FMV | 50% | |||||
Results of Operations | ||||||
Operating revenues | 5,640 | 5,719 | $ 15,670 | 16,425 | ||
Operating expenses | 1,468 | 1,490 | 4,773 | 4,782 | ||
Earnings attributable to non-controlling interest | 4,172 | $ 4,229 | 10,897 | $ 11,643 | ||
Financial Position | ||||||
Current assets | 3,918 | 3,918 | 3,042 | |||
Net property, plant, and equipment | 50,780 | 50,780 | 52,908 | |||
Assets | 54,698 | 54,698 | 55,950 | |||
Current liabilities | 851 | 851 | 545 | |||
Owners’ equity – non-controlling interest | $ 53,847 | $ 53,847 | $ 55,405 | |||
PNM | Purchased through May 2028 | Valencia | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of megawatts purchased (in megawatts) | MW | 155 | 155 |
Fair Value of Derivative and _3
Fair Value of Derivative and Other Financial Instruments - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 18, 2022 MW | Feb. 17, 2022 MW | Nov. 15, 2015 power_purchase_agreement | Jun. 30, 2022 MW | Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) power_purchase_agreement MW | Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) MW power_purchase_agreement | May 31, 2022 MW | Jan. 01, 2018 MW | |
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of purchase power agreements | power_purchase_agreement | 3 | |||||||||||
Number of purchase power agreements, non derivatives | power_purchase_agreement | 2 | |||||||||||
Obligations to return cash | $ 200,000 | $ 900,000 | $ 200,000 | $ 900,000 | ||||||||
Contractual liability | 20,100,000 | 0 | 20,100,000 | $ 0 | ||||||||
Cash collateral | 0 | 0 | ||||||||||
Net exposure | $ 14,900,000 | $ 14,900,000 | ||||||||||
PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Expected exposure to market risk (in megawatts) | MW | 36 | 36 | 50 | 65 | ||||||||
Number of purchase power agreements | power_purchase_agreement | 2 | 3 | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 65 | 327 | 35 | |||||||||
Amounts recognized for right to reclaim cash | $ 0 | 0 | $ 0 | $ 0 | ||||||||
Cash collateral under margin arrangements | 500,000 | 500,000 | 500,000 | 500,000 | ||||||||
(Increase)/decrease in other than temporary losses of available-for-sale securities, net portion recognized in earnings | (7,100,000) | $ 600,000 | (28,700,000) | $ 1,200,000 | ||||||||
PNM | Commodity derivatives | Designated as Hedging Instrument | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Derivative asset, gross asset | 500,000 | 500,000 | ||||||||||
Other current assets | 5,466,000 | 684,000 | 5,466,000 | 684,000 | ||||||||
Other deferred charges | 170,000 | 0 | 170,000 | 0 | ||||||||
Other deferred credits | 2,723,000 | 0 | 2,723,000 | 0 | ||||||||
Current derivative liability | 17,346,000 | $ 2,275,000 | 17,346,000 | $ 2,275,000 | ||||||||
Total gain | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||
PNM | Portfolio One | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 125 | 85 | 85 | |||||||||
PNM | Portfolio Three | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 40 | 40 | 40 | |||||||||
PNM | Portfolio Two | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 35 | 150 | 150 | |||||||||
PNM | Fuel and purchased power costs | Commodity derivatives | Designated as Hedging Instrument | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Other current assets | $ 200,000 | $ 200,000 | ||||||||||
Current derivative liability | 1,800,000 | 1,800,000 | ||||||||||
PNM | Tri-State | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Power to be sold to third party (in megawatts) | MW | 100 | 100 | ||||||||||
PNM | Recurring | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Available-for-sale debt securities | $ 376,662,000 | 463,126,000 | $ 376,662,000 | 463,126,000 | ||||||||
Nuclear Decommissioning Trust | PNM | Recurring | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Available-for-sale debt securities | 310,200,000 | 394,500,000 | 310,200,000 | 394,500,000 | ||||||||
Mine Reclamation Trust | PNM | Recurring | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Available-for-sale debt securities | $ 66,500,000 | $ 68,600,000 | $ 66,500,000 | $ 68,600,000 |
Fair Value of Derivative and _4
Fair Value of Derivative and Other Financial Instruments - Overview and Commodity Derivatives (Details) - PNM - Designated as Hedging Instrument - Commodity derivatives - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Other current assets | $ 5,466 | $ 684 |
Other deferred charges | 170 | 0 |
Derivative asset | 5,636 | 684 |
Other current liabilities | (17,346) | (2,275) |
Other deferred credits | (2,723) | 0 |
Derivative liability | (20,069) | (2,275) |
Net | $ (14,433) | $ (1,591) |
Fair Value of Derivative and _5
Fair Value of Derivative and Other Financial Instruments - Schedule of Commodity Contract Volume Positions (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 MMBTU | Mar. 31, 2022 MWh | Sep. 30, 2022 MMBTU | Sep. 30, 2022 MWh | |
Commodity derivatives | Designated as Hedging Instrument | Public Service Company of New Mexico | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Economic Hedges (in mmbtu and mwh) | 0 | 122,400 | 0 | 302,880 |
Fair Value of Derivative and _6
Fair Value of Derivative and Other Financial Instruments - Investments in NDT and Gross Realized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity securities: | ||||
Net gains (losses) from equity securities sold | $ (2,210) | $ (309) | $ 1,735 | $ 5,931 |
Net gains (losses) from equity securities still held | (4,061) | (3,153) | (52,320) | 2,388 |
Total net gains (losses) on equity securities | (6,271) | (3,462) | (50,585) | 8,319 |
Available-for-sale debt securities: | ||||
Net gains (losses) on debt securities | (9,465) | 5,410 | (33,519) | 7,789 |
Net gains (losses) on investment securities | $ (15,736) | $ 1,948 | $ (84,104) | $ 16,108 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures - Gross Realized (Losses) (Details) - PNM - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 92,371 | $ 128,683 | $ 323,251 | $ 396,870 |
Gross realized gains | 2,366 | 10,986 | 20,089 | 30,290 |
Gross realized (losses) | $ (6,908) | $ (6,527) | $ (23,109) | $ (17,776) |
Fair Value of Derivative and _7
Fair Value of Derivative and Other Financial Instruments - Maturities of Debt Securities (Details) - PNMR and PNM $ in Thousands | Sep. 30, 2022 USD ($) |
Available-for-Sale | |
Within 1 year | $ 38,433 |
After 1 year through 5 years | 64,326 |
After 5 years through 10 years | 70,355 |
After 10 years through 15 years | 15,098 |
After 15 years through 20 years | 11,897 |
After 20 years | 30,072 |
Available-for-sale debt securities | $ 230,181 |
Fair Value of Derivative and _8
Fair Value of Derivative and Other Financial Instruments - Items Recorded and Presented by Level of Hierarchy (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | $ 3,694,753 | $ 3,915,010 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | 4,078,184 | 3,698,919 |
PNM | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | 1,763,306 | 1,975,987 |
PNM | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | 2,000,635 | 1,881,110 |
TNMP | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | 931,447 | 1,039,023 |
TNMP | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | 1,077,977 | 918,050 |
Recurring | PNM | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 376,662 | 463,126 |
Investments, unrealized gain | 4,144 | 15,741 |
Recurring | PNM | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 185,015 | 197,741 |
Recurring | PNM | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 191,647 | 265,385 |
Recurring | PNM | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 15,385 | 7,895 |
Recurring | PNM | Cash and cash equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 15,385 | 7,895 |
Recurring | PNM | Cash and cash equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | PNM | Corporate stocks, common | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 59,781 | 97,626 |
Recurring | PNM | Corporate stocks, common | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 59,781 | 97,626 |
Recurring | PNM | Corporate stocks, common | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Recurring | PNM | Corporate stocks, preferred | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 5,955 | 9,114 |
Recurring | PNM | Corporate stocks, preferred | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,314 | 3,775 |
Recurring | PNM | Corporate stocks, preferred | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 4,641 | 5,339 |
Recurring | PNM | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 65,360 | 75,285 |
Recurring | PNM | Mutual funds and other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 65,360 | 75,241 |
Recurring | PNM | Mutual funds and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 44 |
Recurring | PNM | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 43,175 | 43,128 |
Investments, unrealized gain | 1,182 | 214 |
Recurring | PNM | U.S. government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 43,175 | 13,204 |
Recurring | PNM | U.S. government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 29,924 |
Recurring | PNM | International government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 9,540 | 16,001 |
Investments, unrealized gain | 318 | 1,508 |
Recurring | PNM | International government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | PNM | International government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 9,540 | 16,001 |
Recurring | PNM | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 42,287 | 47,050 |
Investments, unrealized gain | 9 | 1,807 |
Recurring | PNM | Municipals | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | PNM | Municipals | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 42,287 | 47,050 |
Recurring | PNM | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 135,179 | 167,027 |
Investments, unrealized gain | 2,635 | 12,212 |
Recurring | PNM | Corporate and other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | |
Recurring | PNM | Corporate and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 135,179 | $ 167,027 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) shares | |
Restricted Shares and Performance Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense related to stock awards | $ | $ 5.6 |
Period of time stock expense is expected to be recognized | 1 year 8 months 12 days |
Executive | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares awarded in year two (in shares) | 143,553 |
Maximum number of shares awarded in year three (in shares) | 144,175 |
Maximum number of shares awarded in year four (in shares) | 150,050 |
Performance period | 3 years |
Executive | Performance Shares | Achieved Performance Target For 2019 Through 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares awarded in year one (in shares) | 92,343 |
Performance Equity Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Vesting rate | 100% |
Performance Equity Plan | Non-employee Members of the Board of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Shares and Performance Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected quarterly dividends per share (in dollars per share) | $ 0.3475 | $ 0.3275 |
Risk-free interest rate | 1.46% | 0.32% |
Restricted Stock | ||
Restricted Stock, Shares | ||
Outstanding at beginning of period (in shares) | 167,270 | |
Granted (in shares) | 193,943 | |
Exercised (in shares) | (172,409) | |
Forfeited (in shares) | (2,709) | |
Outstanding at end of period (in shares) | 186,095 | |
Restricted Stock, Weighted- Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 43.71 | |
Granted (in dollars per share) | 41.04 | $ 43.48 |
Exercised (in dollars per share) | 42.48 | |
Forfeited (in dollars per share) | 42.48 | |
Outstanding at end of period (in dollars per share) | 42.09 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-average grant date fair value (in dollars per share) | $ 41.04 | $ 43.48 |
Total fair value of restricted shares that vested | $ 7,804 | $ 10,018 |
Market-Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate | 0% | 0.29% |
Dividend yield | 0% | 2.76% |
Expected volatility | 0% | 33.69% |
Financing - Financing Activitie
Financing - Financing Activities (Details) | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 31, 2022 USD ($) derivative | Sep. 30, 2022 USD ($) derivative | Aug. 05, 2022 USD ($) | May 20, 2022 USD ($) | May 02, 2022 USD ($) derivative | Jan. 24, 2022 USD ($) | Jun. 18, 2021 USD ($) | Mar. 09, 2021 USD ($) | Dec. 22, 2020 USD ($) | Sep. 30, 2022 USD ($) derivative | Dec. 31, 2021 USD ($) | Oct. 21, 2022 USD ($) | Jun. 01, 2022 USD ($) derivative | Apr. 27, 2022 USD ($) bond | Aug. 16, 2021 USD ($) | Jul. 14, 2021 USD ($) | May 18, 2021 USD ($) | Mar. 09, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||
Financing capacity | $ 40,000,000 | |||||||||||||||||
Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Remaining borrowing capacity | $ 777,700,000 | |||||||||||||||||
Interest rate contract | Cash Flow Hedge | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of instruments held | derivative | 2 | |||||||||||||||||
Variable Rate Debt | Interest rate contract | Cash Flow Hedge | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of instruments held | derivative | 2 | 2 | 2 | |||||||||||||||
Term of loan | 15 months | 19 months | 20 months | |||||||||||||||
Derivative asset, notional amount | $ 200,000,000 | $ 200,000,000 | ||||||||||||||||
Derivative, notional amount | $ 100,000,000 | |||||||||||||||||
Fixed interest rate | 2.52% | 2.65% | ||||||||||||||||
Derivative instruments in hedges, fair value | $ 8,600,000 | $ 8,600,000 | ||||||||||||||||
Variable Rate Debt, Tranche 1 | Interest rate contract | Cash Flow Hedge | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Variable interest rate | 4.17% | 4.17% | ||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | $ 150,000,000 | $ 100,000,000 | |||||||||||||||
Variable Rate Debt, Tranche 2 | Interest rate contract | Cash Flow Hedge | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Variable interest rate | 4.18% | 4.18% | ||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | $ 200,000,000 | $ 100,000,000 | |||||||||||||||
PNMR 2020 Delayed-Draw Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||||||||||
Proceeds from issuance of debt | $ 80,000,000 | |||||||||||||||||
Remaining borrowing capacity | $ 220,000,000 | |||||||||||||||||
Fixed Rate Debt | Interest rate contract | Cash Flow Hedge | Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of instruments held | derivative | 2 | |||||||||||||||||
Term of loan | 14 months | |||||||||||||||||
Fixed Rate Debt, Tranche 1 | Interest rate contract | Cash Flow Hedge | Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | |||||||||||||||||
Fixed interest rate | 4.66% | |||||||||||||||||
Fixed Rate, Tranche 2 | Interest rate contract | Cash Flow Hedge | Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative asset, notional amount | $ 200,000,000 | |||||||||||||||||
Fixed interest rate | 4.65% | |||||||||||||||||
PNM | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maturity term over which financings require regulator approval (more than) | 18 months | |||||||||||||||||
PNM | Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Remaining borrowing capacity | 400,000,000 | |||||||||||||||||
Texas-New Mexico Power Company | Subsequent event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Remaining borrowing capacity | $ 96,500,000 | |||||||||||||||||
Line of credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Ratio of debt to capital (less than or equal to) | 70% | |||||||||||||||||
Line of credit | PNM 2022 Delayed-Draw Term Loan | Revolving credit facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Financing capacity | $ 225,000,000 | |||||||||||||||||
Proceeds from long-term lines of credit | 45,000,000 | $ 180,000,000 | ||||||||||||||||
Line of credit | Variable Rate Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Hedging arrangement | $ 650,000,000 | $ 650,000,000 | ||||||||||||||||
Line of credit | PNMR 2021 Delayed-Draw Term Loan | Revolving credit facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Financing capacity | $ 1,000,000,000 | |||||||||||||||||
Proceeds from long-term lines of credit | $ 100,000,000 | $ 900,000,000 | ||||||||||||||||
Line of credit | PNM and TNMP | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Ratio of debt to capital (less than or equal to) | 65% | |||||||||||||||||
Bonds | PNMR 2021 Delayed-Draw Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Variable interest rate | 4.13% | 4.13% | ||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | 104,500,000 | $ 31,500,000 | ||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June Twenty Thirty Eight | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 36,000,000 | 36,000,000 | ||||||||||||||||
Stated interest rate | 1.05% | |||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June Twenty Forty | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 37,000,000 | $ 37,000,000 | ||||||||||||||||
Stated interest rate | 2.125% | |||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June Twenty Forty, City Of Farmington, NM | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 11,500,000 | |||||||||||||||||
Stated interest rate | 1.20% | |||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June Twenty Forty Two | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 20,000,000 | |||||||||||||||||
Stated interest rate | 2.45% | |||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June Twenty Twenty Four | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 3% | |||||||||||||||||
Bonds | PNM | PNM 2021 75 Million Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Variable interest rate | 3.53% | 3.53% | ||||||||||||||||
Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 160,000,000 | |||||||||||||||||
Debt instrument, series of bond issuance | bond | 2 | |||||||||||||||||
Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement at 4.13% Due May 12, 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 65,000,000 | |||||||||||||||||
Stated interest rate | 4.13% | |||||||||||||||||
Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement at 3.81% Due July 28, 2032 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 95,000,000 | |||||||||||||||||
Stated interest rate | 3.81% | |||||||||||||||||
Mortgage Bonds | Texas-New Mexico Power Company | TNMP 2021 Bond Purchase Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 65,000,000 | $ 65,000,000 | ||||||||||||||||
Stated interest rate | 2.44% | |||||||||||||||||
Senior Notes | PNM | PNM 2021 Note Purchase Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | 160,000,000 | |||||||||||||||||
Senior Notes | PNM | PNM 2021 SUNs At 2.59 Percent Due July 15, 2033 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 80,000,000 | |||||||||||||||||
Stated interest rate | 2.59% | |||||||||||||||||
Senior Notes | PNM | PNM 2021 SUNs At 3.14 Percent Due July 15, 2041 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 80,000,000 | |||||||||||||||||
Stated interest rate | 3.14% | |||||||||||||||||
Senior Notes | PNM | PNM 2021 SUNs At 5.35 Percent Due October 1, 2021 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 160,000,000 | |||||||||||||||||
Stated interest rate | 5.35% | |||||||||||||||||
Senior Notes | PNM | PNM 2019 40 Million Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Repayments of debt | $ 40,000,000 | |||||||||||||||||
Term loan agreement with banks | PNM | PNM 2021 75 Million Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 75,000,000 | |||||||||||||||||
Unsecured Debt | PNMR 2018 SUNS 3.25% due March 2021 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||||||||||
Stated interest rate | 3.25% | |||||||||||||||||
Repayments of debt | $ 80,000,000 |
Financing - Short-term Debt and
Financing - Short-term Debt and Liquidity (Details) | 12 Months Ended | |||||||||
May 20, 2022 extension_option | Mar. 11, 2022 USD ($) extension_option | Dec. 31, 2017 USD ($) utility | Oct. 21, 2022 USD ($) | Sep. 30, 2022 USD ($) | May 13, 2022 USD ($) | Mar. 10, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 18, 2021 USD ($) | Mar. 23, 2021 | |
Short-term Debt [Line Items] | ||||||||||
Financing capacity | $ 40,000,000 | |||||||||
Letters of credit outstanding | $ 3,400,000 | |||||||||
Notes payable, related parties | 6,400,000 | $ 6,400,000 | ||||||||
Variable Rate Short-Term Debt | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Term of derivatives | 4 years | |||||||||
Aggregate principal amount | $ 50,000,000 | |||||||||
PNMR Revolving Credit Facility | WEB LOC Facility | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Letters of credit outstanding | 30,300,000 | |||||||||
PNM | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Letters of credit outstanding | 0 | |||||||||
Notes payable, related parties | 0 | 0 | ||||||||
PNM | Lines of credit | ||||||||||
Short-term Debt [Line Items] | ||||||||||
NMPRC approved credit facility | 40,000,000 | |||||||||
TNMP | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Letters of credit outstanding | $ 0 | |||||||||
TNMP | TNMP Revolving Credit Facility | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 3.97% | |||||||||
PNMR Development | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Notes payable, related parties | $ 0 | $ 0 | ||||||||
PNMR Development | PNMR Revolving Credit Facility | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 4.47% | |||||||||
Revolving credit facility | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Financing capacity | $ 300,000,000 | |||||||||
Number of extensions | extension_option | 2 | |||||||||
Extension period | 1 year | |||||||||
Revolving credit facility | PNM | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Financing capacity | 400,000,000 | |||||||||
Revolving credit facility | TNMP | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Financing capacity | $ 100,000,000 | $ 100,000,000 | $ 75,000,000 | |||||||
Number of extensions | extension_option | 2 | |||||||||
Extension period | 1 year | |||||||||
Revolving credit facility | TNMP | First mortgage bonds | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Collateral amount | $ 75,000,000 | $ 100,000,000 | ||||||||
Senior Notes | PNM | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Financing capacity | 55,000,000 | |||||||||
Senior Unsecured Noted, Pollution Control Revenue Bonds | PNM | Pollution Control Revenue Bonds, Due June Twenty Twenty Three | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Unsecured long-term debt, noncurrent | $ 130,000,000 | |||||||||
Interest rate contract | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Number of derivatives | utility | 3 | |||||||||
Interest rate 1 | Variable Rate Short-Term Debt | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Fixed interest rate | 1.926% | 1.926% | ||||||||
Interest rate 2 | Variable Rate Short-Term Debt | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Fixed interest rate | 1.823% | |||||||||
Interest rate 3 | Variable Rate Short-Term Debt | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Fixed interest rate | 1.629% | |||||||||
Subsequent event | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Notes payable, related parties | $ 6,400,000 | |||||||||
Remaining borrowing capacity | 777,700,000 | |||||||||
Subsequent event | PNMR | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Remaining borrowing capacity | 241,200,000 | |||||||||
Consolidated invested cash | 900,000 | |||||||||
Subsequent event | PNM | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Notes payable, related parties | 0 | |||||||||
Remaining borrowing capacity | 400,000,000 | |||||||||
Consolidated invested cash | 14,900,000 | |||||||||
Subsequent event | PNM | PNM 2017 New Mexico Credit Facility | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Remaining borrowing capacity | 40,000,000 | |||||||||
Subsequent event | TNMP | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Notes payable, related parties | 0 | |||||||||
Remaining borrowing capacity | 96,500,000 | |||||||||
Consolidated invested cash | $ 0 |
Financing - Schedule of Short-T
Financing - Schedule of Short-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 60,200 | $ 62,700 |
PNM | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 7,400 |
Texas-New Mexico Power Company | ||
Short-term Debt [Line Items] | ||
Short-term debt | 3,000 | 400 |
PNM Revolving Credit Facility | PNM | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 7,400 |
TNMP Revolving Credit Facility | Texas-New Mexico Power Company | ||
Short-term Debt [Line Items] | ||
Short-term debt | 3,000 | 400 |
PNMR Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 57,200 | $ 54,900 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
PNM | Pension Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 4,215 | 4,036 | 12,643 | 12,107 |
Expected return on plan assets | (7,140) | (7,133) | (21,422) | (21,398) |
Amortization of net loss | 3,948 | 4,541 | 11,846 | 13,624 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | 1,023 | 1,444 | 3,067 | 4,333 |
PNM | OPEB Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 2 | 5 | 6 | 18 |
Interest cost | 479 | 476 | 1,437 | 1,430 |
Expected return on plan assets | (1,088) | (1,042) | (3,264) | (3,125) |
Amortization of net loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | (607) | (561) | (1,821) | (1,677) |
PNM | Executive Retirement Program | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 90 | 90 | 270 | 271 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss | 81 | 99 | 245 | 296 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | 171 | 189 | 515 | 567 |
Texas-New Mexico Power Company | Pension Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 430 | 435 | 1,290 | 1,306 |
Expected return on plan assets | (618) | (795) | (1,854) | (2,386) |
Amortization of net loss | 233 | 311 | 699 | 935 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | 45 | (49) | 135 | (145) |
Texas-New Mexico Power Company | OPEB Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 9 | 12 | 27 | 34 |
Interest cost | 77 | 77 | 231 | 231 |
Expected return on plan assets | (104) | (101) | (312) | (304) |
Amortization of net loss | (130) | (81) | (390) | (242) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | (148) | (93) | (444) | (281) |
Texas-New Mexico Power Company | Executive Retirement Program | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 2 | 4 | 8 | 13 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 8 | 0 | 25 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost (Income) | $ 2 | $ 12 | $ 8 | $ 38 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan | PNM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 0 | $ 0 | ||
Estimated employer contributions for remainder of fiscal year through year four | $ 0 | 0 | ||
Estimated future contributions, year five | 600,000 | $ 600,000 | ||
Pension Plan | PNM | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumptions used calculating net periodic benefit cost, discount rate | 5% | |||
Pension Plan | Texas-New Mexico Power Company | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 0 | 0 | ||
Estimated employer contributions for remainder of fiscal year through year four | 0 | $ 0 | ||
Pension Plan | Texas-New Mexico Power Company | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumptions used calculating net periodic benefit cost, discount rate | 5% | |||
OPEB Plan | PNM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 0 | 0 | ||
Disbursements by employer | 900,000 | $ 1,000,000 | 2,400,000 | 2,700,000 |
Disbursements by employer, year one through four | 15,100,000 | 15,100,000 | ||
Estimated disbursement by employer, current year | 3,400,000 | |||
OPEB Plan | Texas-New Mexico Power Company | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | 0 | 0 | 0 | 0 |
Disbursements by employer, year one through four | 0 | 0 | ||
Executive Retirement Program | PNM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | 400,000 | $ 300,000 | 1,000,000 | 1,100,000 |
Disbursements by employer, year one through four | 5,800,000 | 5,800,000 | ||
Estimated disbursement by employer, current year | 1,300,000 | |||
Executive Retirement Program | Texas-New Mexico Power Company | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Disbursements by employer, year one through four | $ 200,000 | 200,000 | ||
Estimated disbursement by employer, current year | 100,000 | |||
Executive Retirement Program | Texas-New Mexico Power Company | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 100,000 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Nuclear Spent Fuel and Waste Disposal (Details) - PNM - Nuclear spent fuel and waste disposal - Palo Verde Nuclear Generating Station - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Public Utilities, Commitments And Contingencies [Line Items] | ||
Estimate of possible loss | $ 59.6 | |
Other deferred credits | ||
Public Utilities, Commitments And Contingencies [Line Items] | ||
Loss contingency accrual | $ 12 | $ 13 |
Commitments and Contingencies_2
Commitments and Contingencies - The Energy Transition Act (Details) - Electric-Generation Portfolio Standard - Energy Transition Act | Jun. 14, 2019 |
Required Percentage by 2025 | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Renewable energy, percentage | 0.40 |
Required Percentage by 2030 | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Renewable energy, percentage | 0.50 |
Required Percentage by 2040 | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Renewable energy, percentage | 0.80 |
Required Percentage by 2045 | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Renewable energy, percentage | 1 |
Commitments and Contingencies_3
Commitments and Contingencies - The Clean Air Act (Details) | 1 Months Ended | 24 Months Ended | ||||||
Jul. 20, 2020 numberOfAMIMeter | Oct. 31, 2019 numberOfAMIMeter | Dec. 31, 2014 monitoringWell | Sep. 30, 2022 T | Feb. 25, 2019 parts_per_billion | Oct. 01, 2015 parts_per_billion | Sep. 30, 2015 parts_per_billion | Dec. 31, 1999 state | |
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||
Number of field work reports | numberOfAMIMeter | 2 | 2 | ||||||
Number of monitoring wells containing free-phase hydrocarbon products | monitoringWell | 1 | |||||||
Clean Air Act related to regional haze | ||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||
Number of states to address regional haze (in states) | state | 50 | |||||||
Potential to emit tons per year of visibility impairing pollution (in tons, more than) | T | 250 | |||||||
Maximum | PNM | San Juan Generating Station and Four Corners | ||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||
Government standard emission limit (in ozone parts per million) | parts_per_billion | 75 | 70 | 75 |
Commitments and Contingencies_4
Commitments and Contingencies - Cooling Water Intake Structures (Details) | 9 Months Ended |
Sep. 30, 2022 option | |
Text Block [Abstract] | |
Number of options for meeting BTA standards | 7 |
Commitments and Contingencies_5
Commitments and Contingencies - Coal Supply (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 17, 2022 $ / T | Dec. 31, 2020 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | Jan. 31, 2016 USD ($) | |
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Other current assets | $ 6,453 | $ 1,635 | |||||
PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Other current assets | 6,500 | 1,456 | |||||
PNM | Loss on long-term purchase commitment | Surface | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Loss contingency accrual | 64,300 | 67,400 | |||||
PNM | Loss on long-term purchase commitment | Underground | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Loss contingency accrual | 29,300 | 27,900 | |||||
PNM | Loss on long-term purchase commitment | San Juan Generating Station | Surface | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Estimate of possible loss | 69,700 | ||||||
PNM | Loss on long-term purchase commitment | San Juan Generating Station | Underground | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Estimate of possible loss | 34,900 | ||||||
Coal supply | San Juan Generating Station | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Cash used to support bank letter or credit arrangement | $ 30,300 | ||||||
Coal supply | Four Corners | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Payments for relief from obligations | 75,000 | ||||||
Coal supply | PNM | San Juan Generating Station | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Other current assets | 0 | 20,400 | |||||
Increase in price of coal per ton | $ / T | 5 | ||||||
Coal supply | NM Capital | San Juan Generating Station | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Requirement to post reclamation bonds | 118,700 | ||||||
Cash used to support bank letter or credit arrangement | 30,300 | ||||||
Increase in coal mine decommissioning liability | PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Regulatory disallowance, additional amount recorded | $ 800 | ||||||
Increase in coal mine decommissioning liability | PNM | Surface | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Regulatory disallowance, additional amount recorded | $ 3,600 | ||||||
Decrease in coal mine decommissioning liability | PNM | Underground | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Regulatory disallowance, additional amount recorded | $ 100 | ||||||
Decrease in coal mine decommissioning liability | PNM | Four Corners | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Regulatory disallowance, additional amount recorded | $ 2,500 | ||||||
Mine Reclamation Trust | PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Required contribution to reclamation trust, current fiscal year | 9,900 | ||||||
Reclamation trust funding, year 2 | 0 | ||||||
Reclamation trust funding, year 3 | 0 | ||||||
Four Corners CSA | PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Other commitment, due in first year | 2,400 | 2,200 | |||||
Other commitment, due in second year | 2,100 | ||||||
Other commitment, due in third year | 2,100 | ||||||
Other commitment, due in fourth year | 2,100 | ||||||
San Juan Generating Station | Loss on long-term purchase commitment | PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Annual funding post-term reclamation trust | $ 5,200 | ||||||
San Juan Generating Station and Four Corners | Mine Reclamation Trust | PNM | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Customer reclamation funding cost | $ 100,000 |
Commitments and Contingencies_6
Commitments and Contingencies - San Juan County Decommissioning Ordinance (Details) - San Juan Generating Station - Coal-Fired Electricity Generating Facility Demolition And Remediation Ordinance - Public Service Company of New Mexico - USD ($) $ in Millions | Nov. 09, 2021 | Sep. 30, 2022 |
Public Utilities, Commitments And Contingencies [Line Items] | ||
Initial funding requirement | $ 14.7 | |
Surety bond | $ 46 | |
Decrease in decommissioning obligation | $ 21.1 |
Commitments and Contingencies_7
Commitments and Contingencies - PVNGS Liability and Insurance Matters, Navajo Nation Allottee Matters and Texas Winter Storm (Details) | 1 Months Ended | 9 Months Ended | |||||
Sep. 30, 2012 landOwner | Sep. 30, 2022 USD ($) generatingUnit | Dec. 31, 2021 USD ($) | Dec. 01, 2015 allotment_parcel | Jul. 13, 2015 a | Jan. 22, 2015 allotment_parcel | Apr. 30, 2014 allotment_parcel | |
PNM | Navajo Nation Allottee Matters | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Number of landowners involved in the appeal | landOwner | 43 | ||||||
Number of allotments where landowners are revoking rights of way renewal consents (in allotment parcels) | allotment_parcel | 2 | 10 | 6 | ||||
Area of land (in acres) | a | 15.49 | ||||||
Number of allotment parcels at issue that are not to be condemned | allotment_parcel | 2 | ||||||
Number of allotment parcels at issue | allotment_parcel | 5 | ||||||
PNM | Palo Verde Nuclear Generating Station | Nuclear plant | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Ownership percentage in nuclear reactor | 10.20% | ||||||
Number of units | generatingUnit | 3 | ||||||
Maximum potential assessment per incident | $ 42,100,000 | ||||||
Annual payment limitation related to incident | 6,200,000 | ||||||
Aggregate amount of all risk insurance | 2,800,000,000 | ||||||
Maximum amount under Nuclear Electric Insurance Limited | 5,400,000 | ||||||
PNM | Maximum | Palo Verde Nuclear Generating Station | Nuclear plant | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Liability insurance coverage | 13,700,000,000 | ||||||
Liability insurance coverage sublimit | 2,250,000,000 | ||||||
Texas-New Mexico Power Company | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Regulatory assets | 800,000 | $ 800,000 | |||||
Commercial providers | PNM | Palo Verde Nuclear Generating Station | Nuclear plant | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Liability insurance coverage | 450,000,000 | ||||||
Industry Wide Retrospective Assessment Program | PNM | Palo Verde Nuclear Generating Station | Nuclear plant | |||||||
Public Utilities, Commitments And Contingencies [Line Items] | |||||||
Liability insurance coverage | $ 13,200,000,000 |
Regulatory and Rate Matters - P
Regulatory and Rate Matters - PNM (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Jun. 01, 2022 USD ($) | Apr. 15, 2022 USD ($) | Jan. 01, 2022 USD ($) | Apr. 15, 2021 USD ($) GWh | Jan. 29, 2021 | Apr. 15, 2020 USD ($) MMBTU | Sep. 30, 2022 USD ($) $ / MWh MW | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / MWh MW | Sep. 30, 2021 USD ($) | Dec. 31, 2021 GWh | Jul. 29, 2020 MW | |
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Excess return on jurisdictional equity that would require refund | 0.50% | 0.50% | ||||||||||
PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Solar generation capacity (in megawatts) | 650 | |||||||||||
Renewable Portfolio Standard | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Number of megawatts of Solar PV facilities | 158 | 158 | ||||||||||
Current output in the geothermal facility (in megawatts) | 11 | 11 | ||||||||||
Solar generation capacity (in megawatts) | 228.5 | 228.5 | ||||||||||
Energy Efficiency and Load Management Program | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Program costs related to energy efficiency, in year two | $ | $ 31.4 | |||||||||||
Program costs related to energy efficiency, in year three | $ | 31 | |||||||||||
Program costs related to energy efficiency, in year four | $ | $ 29.6 | |||||||||||
Energy efficiency and load management programs targeted energy savings (in Gigawatts) | MMBTU | 94 | |||||||||||
Integrated Resource Plan, 2011 | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Frequency of IRP filings | 3 years | |||||||||||
Planning period covered of IRP | 20 years | |||||||||||
Integrated Resource Plan, 2020 | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Planning period covered of IRP | 20 years | |||||||||||
NMPRC | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Action plan, covered period | 4 years | |||||||||||
NMPRC | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Proposed revision to rider that will allow for recovery | $ | $ 61 | $ 66.9 | ||||||||||
NMPRC | Renewable Energy Rider | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Recorded revenues from renewable rider | $ | $ 12.7 | $ 13 | $ 44.5 | $ 44.4 | ||||||||
Maximum | Renewable Portfolio Standard | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Reasonable cost threshold in megawatts per hour | $ / MWh | 60 | 60 | ||||||||||
Minimum | Renewable Portfolio Standard | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Profit incentive sliding scale multiplier | 0.071 | |||||||||||
Energy efficiency and load management programs targeted energy savings (in Gigawatts) | MMBTU | 80 | |||||||||||
New Mexico Wind | Renewable Portfolio Standard 2014 | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Number of megawatts for wind energy | 200 | |||||||||||
Red Mesa Wind | Renewable Portfolio Standard 2014 | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Number of megawatts for wind energy | 102 | |||||||||||
La Joya Wind | Renewable Portfolio Standard | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Number of megawatts for wind energy | 140 | |||||||||||
Disincentives and Incentives Added | 2020 Energy Efficiency Annual Report | PNM | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Energy efficiency and load management programs | $ | $ 0.3 | $ 0.8 | ||||||||||
Energy efficiency and load management programs additional incentive targeted energy savings (in Gigawatts) | GWh | 87 | 94 |
Regulatory and Rate Matters - S
Regulatory and Rate Matters - SJGS Abandonment Application, Fours Corners, PVNGS Leased Interest Abandonment Application, Summer Peak Resource Adequacy, COVID and Transportation Electrification Program (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Oct. 03, 2022 USD ($) | Sep. 08, 2022 | Aug. 23, 2022 | Jul. 29, 2022 USD ($) | Jul. 19, 2022 MW | Jun. 17, 2022 USD ($) | Mar. 18, 2022 MW | Feb. 17, 2022 MW | Apr. 02, 2021 lease MW | Feb. 03, 2021 | Jan. 08, 2021 USD ($) | Nov. 01, 2020 USD ($) | Jun. 29, 2020 | Feb. 21, 2020 USD ($) numberOfAMIMeter | Jul. 10, 2019 proceeding | Jul. 01, 2019 USD ($) | Nov. 15, 2015 power_purchase_agreement numberOfAMIMeter batteryStorageAgreement | Jun. 30, 2022 MW | Nov. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) MW | Dec. 31, 2021 USD ($) MW power_purchase_agreement | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) MW power_purchase_agreement replacementResource | Sep. 02, 2022 MW | Feb. 14, 2022 MW | Dec. 18, 2020 USD ($) | Nov. 13, 2020 MW | Sep. 28, 2020 USD ($) | Jul. 29, 2020 MW | Mar. 31, 2020 USD ($) | |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Regulatory time frame for proposed PPAs and battery storage agreements | 6 months | |||||||||||||||||||||||||||||
Number of purchase power agreements | power_purchase_agreement | 3 | |||||||||||||||||||||||||||||
Number of replacement resources | replacementResource | 4 | |||||||||||||||||||||||||||||
Regulatory assets | $ 820,832 | $ 514,258 | $ 820,832 | $ 514,258 | ||||||||||||||||||||||||||
Regulatory liabilities | 772,355 | 841,393 | 772,355 | $ 841,393 | ||||||||||||||||||||||||||
COVID-19 | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Temporary mandatory moratorium on disconnection period | 100 days | |||||||||||||||||||||||||||||
Disconnection transition period | 90 days | |||||||||||||||||||||||||||||
PNM | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Regulatory disallowance and restructuring costs | 1,600 | |||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 650 | |||||||||||||||||||||||||||||
Number of megawatts in battery storage facilities (in megawatts) | MW | 300 | |||||||||||||||||||||||||||||
Total number of agreements | numberOfAMIMeter | 5 | |||||||||||||||||||||||||||||
Filing period, extension | 2 days | 45 days | ||||||||||||||||||||||||||||
Filing period, with extension | 12 days | |||||||||||||||||||||||||||||
Number of days to file application | 60 days | |||||||||||||||||||||||||||||
Payments for legal settlements | $ 19,800 | |||||||||||||||||||||||||||||
Number of leases under which lease term was extended | lease | 5 | |||||||||||||||||||||||||||||
Number of purchase power agreements | power_purchase_agreement | 2 | 3 | ||||||||||||||||||||||||||||
Number of battery storage agreements | batteryStorageAgreement | 3 | |||||||||||||||||||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 65 | 327 | 35 | |||||||||||||||||||||||||||
Number of megawatts, peak during period (in megawatts) | MW | 2,071 | |||||||||||||||||||||||||||||
Regulatory assets | 740,175 | 428,981 | 740,175 | $ 428,981 | ||||||||||||||||||||||||||
Regulatory liabilities | $ 571,483 | 653,830 | $ 571,483 | 653,830 | ||||||||||||||||||||||||||
PNM | Subsequent event | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Grid modernization investment | $ 344,000 | |||||||||||||||||||||||||||||
Grid modernization, initial term | 6 years | |||||||||||||||||||||||||||||
Grid modernization term | 11 years | |||||||||||||||||||||||||||||
PNM | Minimum | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Reserve margin | 20.70% | 17.40% | 9.50% | 0.90% | ||||||||||||||||||||||||||
PNM | Maximum | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Reserve margin | 12.50% | 9.80% | 4.90% | 3.40% | ||||||||||||||||||||||||||
PNM | Four Corners | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Request issuance of energy transition bonds | $ 300,000 | |||||||||||||||||||||||||||||
Forecasted undepreciated investment | 272,000 | |||||||||||||||||||||||||||||
Plant decommissioning and coal mine reclamation costs | 4,600 | |||||||||||||||||||||||||||||
Upfront financing costs | 7,300 | |||||||||||||||||||||||||||||
Proceeds from securitization bonds | $ 16,500 | |||||||||||||||||||||||||||||
Payments for relief from obligations | $ 75,000 | $ 15,000 | ||||||||||||||||||||||||||||
Final payment for relief from obligations | 60,000 | |||||||||||||||||||||||||||||
Initial payment for relief from obligations | $ 15,000 | |||||||||||||||||||||||||||||
PNM | Four Corners | PNM | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 13% | |||||||||||||||||||||||||||||
PNM | COVID-19 | COVID-19 Costs Savings | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Regulatory liabilities | $ 900 | 900 | $ 900 | 900 | ||||||||||||||||||||||||||
PNM | Deferred COVID-19 Costs | COVID-19 | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Regulatory assets | $ 5,700 | $ 6,900 | 5,700 | $ 6,900 | ||||||||||||||||||||||||||
PNM | Leased Interest Termination on January 15, 2023 | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Number of leases under which lease term was extended | lease | 4 | |||||||||||||||||||||||||||||
PNM | Leased Interest Termination on January 15, 2023 | NMPRC | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 104 | |||||||||||||||||||||||||||||
PNM | Leased Interest Termination on January 15, 2024 | NMPRC | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 10 | |||||||||||||||||||||||||||||
PNM | Replacement Resource Portfolio One | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 150 | 150 | 200 | |||||||||||||||||||||||||||
Number of megawatts in battery storage facilities (in megawatts) | MW | 40 | 40 | 100 | |||||||||||||||||||||||||||
PNM | Replacement Resource Portfolio Two | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 100 | |||||||||||||||||||||||||||||
Number of megawatts in battery storage facilities (in megawatts) | MW | 100 | 100 | 30 | |||||||||||||||||||||||||||
PNM | Replacement Resource Portfolio Three | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Solar generation capacity (in megawatts) | MW | 300 | 300 | ||||||||||||||||||||||||||||
Number of megawatts in battery storage facilities (in megawatts) | MW | 150 | 300 | 150 | |||||||||||||||||||||||||||
PNM | Portfolio One | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 125 | 85 | 85 | |||||||||||||||||||||||||||
PNM | Portfolio Two | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 35 | 150 | 150 | |||||||||||||||||||||||||||
PNM | Portfolio Three | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 40 | 40 | 40 | |||||||||||||||||||||||||||
PNM | Transportation Electrification Program | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Expected budgeted expenditures | $ 8,400 | |||||||||||||||||||||||||||||
Budget flexibility | 25% | |||||||||||||||||||||||||||||
Budget portion dedicated to low and moderate income customers | 25% | |||||||||||||||||||||||||||||
San Juan Generating Station | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Severance costs | 2,200 | |||||||||||||||||||||||||||||
Obligations to fund severance | $ 8,900 | 8,900 | ||||||||||||||||||||||||||||
Estimated costs of replacement resources | $ 8,100 | |||||||||||||||||||||||||||||
San Juan Generating Station | Other deferred credits | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | 37,300 | $ 36,900 | 37,300 | $ 36,900 | ||||||||||||||||||||||||||
San Juan Generating Station | Employee Severance | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | 7,600 | 7,600 | $ 9,400 | |||||||||||||||||||||||||||
San Juan Generating Station | PNM | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Request issuance of energy transition bonds | $ 361,000 | |||||||||||||||||||||||||||||
Forecasted undepreciated investment | $ 361,000 | 283,000 | ||||||||||||||||||||||||||||
Plant decommissioning and coal mine reclamation costs | 28,600 | |||||||||||||||||||||||||||||
Upfront financing costs | 9,600 | |||||||||||||||||||||||||||||
Severance costs | 20,000 | |||||||||||||||||||||||||||||
Proceeds from securitization bonds | $ 19,800 | |||||||||||||||||||||||||||||
Number of proceedings | proceeding | 2 | |||||||||||||||||||||||||||||
Number of recommendations | numberOfAMIMeter | 2 | |||||||||||||||||||||||||||||
San Juan Generating Station | PNM | Other deferred credits | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | 36,000 | 36,000 | ||||||||||||||||||||||||||||
San Juan Generating Station | PNM | Deferred Regulatory Asset | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | $ 36,900 | $ 36,900 | ||||||||||||||||||||||||||||
San Juan Generating Station | PNM | Employee Severance | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | $ 7,200 | $ 7,200 | 8,100 | |||||||||||||||||||||||||||
San Juan Generating Station | PNM | Other Restructuring | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | 8,900 | |||||||||||||||||||||||||||||
San Juan Generating Station | PNM | Economic Development and Workforce Training Costs | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Restructuring reserve | $ 19,800 | |||||||||||||||||||||||||||||
San Juan Generation Station, Unit 1 | PNM | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Annual rate credits | $ 21,100 | |||||||||||||||||||||||||||||
San Juan Generating Station, Unit 4 | PNM | ||||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||||
Annual rate credits | $ 98,300 | |||||||||||||||||||||||||||||
Number of days to transfer payment | 30 days |
Regulatory and Rate Matters -_2
Regulatory and Rate Matters - Schedule of Change in Balance Sheet Related to Discontinued Services (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 29, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current Assets: | |||
Inventory | $ (6,430) | $ 6,630 | $ 333 |
Utility Plant: | |||
Net utility plant | (382,798) | ||
Deferred Charges and Other Assets: | |||
Regulatory assets - ETA | 289,381 | ||
Regulatory Assets - Non-ETA | 22,593 | ||
Deferred Credits and Other Liabilities: | |||
Regulatory liabilities (3) | (77,254) | ||
Net increase (decrease) | $ 0 | ||
Undepreciated investments | 274,900 | ||
Investments, plant decommissioning | 14,500 | ||
Obsolete inventory | 6,400 | ||
Inventory, plant decommissioning | $ 16,200 |
Regulatory and Rate Matters - C
Regulatory and Rate Matters - Community Solar (Details) | Sep. 30, 2022 MW |
Community Solar Act | |
Public Utilities, General Disclosures [Line Items] | |
Solar generation capacity (in megawatts) | 200 |
Regulatory and Rate Matters -_3
Regulatory and Rate Matters - San Juan Generating Station Unit 1 Outage (Details) - San Juan Generating Station $ in Millions | Sep. 30, 2022 USD ($) |
San Juan Generating Station Owners | Insurance Deductible | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Estimate of possible loss | $ 2 |
PNM | Insurance Deductible | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Estimate of possible loss | $ 1 |
PNM | San Juan Generating Station Unit 1 | |
Public Utilities, Commitments And Contingencies [Line Items] | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 50% |
Regulatory and Rate Matters - F
Regulatory and Rate Matters - Formula Transmission Rates (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Return on equity | 10% |
Regulatory and Rate Matters - U
Regulatory and Rate Matters - Unexecuted Transmission Service Agreements (TSAs) with Leeward Renewable Energy (Details) - Public Service Company of New Mexico | Mar. 12, 2021 transmissionServiceAgreement MW |
Public Utilities, General Disclosures [Line Items] | |
Number of unexecuted TSAs | transmissionServiceAgreement | 4 |
Solar generation capacity related to unexecuted transmission service agreement (in megawatts) | MW | 145 |
Regulatory and Rate Matters -_4
Regulatory and Rate Matters - FERC Compliance (Details) $ in Millions | Jul. 29, 2022 filedPetition | Jul. 18, 2022 denialNotice | Jun. 16, 2022 USD ($) numberOfAMIMeter proceeding | May 17, 2022 delegatedLetterOrder |
Public Utilities, General Disclosures [Line Items] | ||||
Number of delegated letter orders | delegatedLetterOrder | 2 | |||
Number of requests for rehearing | numberOfAMIMeter | 2 | |||
Number of FERC proceedings | proceeding | 2 | |||
Number of rehearing denial notices | denialNotice | 2 | |||
Number of petitions filed for review | filedPetition | 2 | |||
Public Service Company of New Mexico | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Compliance extension period | 75 days | |||
Compliance extension period, repost period | 30 days | |||
Public Service Company of New Mexico | FERC Proceedings One | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Time-value customer refund | $ 7 | |||
Public Service Company of New Mexico | FERC Proceedings Two | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Time-value customer refund | $ 28 |
Regulatory and Rate Matters -_5
Regulatory and Rate Matters - Schedule of Transmission Cost of Service Rates (Details) - PUCT - TNMP - USD ($) $ in Millions | Sep. 22, 2022 | Mar. 25, 2022 | Sep. 20, 2021 |
Public Utilities, General Disclosures [Line Items] | |||
Approved Increase in Rate Base | $ 36 | $ 95.6 | $ 41.2 |
Annual Increase in Revenue | $ 5.3 | $ 14.2 | $ 6.3 |
Regulatory and Rate Matters - T
Regulatory and Rate Matters - TNMP Narrative (Details) - TNMP | 9 Months Ended | |||||||||||
Jul. 18, 2022 USD ($) | Apr. 05, 2022 USD ($) | Jul. 01, 2021 USD ($) | Apr. 05, 2021 USD ($) | Dec. 31, 2018 USD ($) | Sep. 30, 2022 USD ($) | Sep. 24, 2022 USD ($) | May 27, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 27, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 30, 2020 MWh | |
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Requested increase in annual distribution revenue | $ 6,800,000 | $ 9,700,000 | $ 14,000,000 | |||||||||
Increase in revenue base rate | $ 100,700,000 | $ 104,500,000 | ||||||||||
Collection of increase in annual distribution revenues | $ 13,500,000 | |||||||||||
Energy efficiency cost recovery, requested change amount | $ 1,900,000 | $ 7,200,000 | ||||||||||
Energy efficiency cost recovery, requested bonus | 7,400,000 | $ 2,300,000 | ||||||||||
Energy efficiency cost recovery factor, approved settlement amount | $ 7,300,000 | |||||||||||
Energy efficiency cost recovery factor, approved performance bonus | $ 1,900,000 | |||||||||||
Rider charge from electricity relief program (per MWh) | MWh | 0.33 | |||||||||||
PUCT | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Public utilities, costs of deployment | $ 9,000,000 | |||||||||||
COVID-19 | ||||||||||||
Public Utilities, Commitments And Contingencies [Line Items] | ||||||||||||
Regulatory liability | $ 700,000 | $ 0 | $ 100,000 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Apr. 02, 2021 lease | Jan. 15, 2016 lease | Jan. 15, 2015 lease | |
Operating Leased Assets [Line Items] | |||||||||
Operating lease, payments to lessor upon occurrence of certain events | $ 142.2 | $ 142.2 | |||||||
Unamortized cost, right-of-way lease payments | 51.1 | 51.1 | $ 53.4 | ||||||
Operating lease, right-of-use asset, amortization expense | 0.9 | $ 0.9 | 2.9 | $ 2.8 | |||||
Lessee, operating lease, unguaranteed residual value | 24.4 | 24.4 | |||||||
PNM | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Number of leases under which lease term was extended | lease | 5 | ||||||||
Lessee, operating lease, unguaranteed residual value | 11.5 | 11.5 | |||||||
PNM | Palo Verde Nuclear Generating Station, Unit 1 and 4 Leases | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Number of leases, expiring | lease | 4 | ||||||||
Number of leases under which lease term was extended | lease | 4 | ||||||||
Annual lease payments during renewal period | 16.5 | ||||||||
PNM | Palo Verde Nuclear Generating Station, Unit 2 Leases | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Number of leases, expiring | lease | 4 | ||||||||
Number of leases under which lease term was extended | lease | 1 | ||||||||
Annual lease payments during renewal period | 1.6 | ||||||||
PNM | Navajo Nation | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Annual lease payments | 6 | ||||||||
Right-of-way lease payments | $ 7.9 | ||||||||
TNMP | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Lessee, operating lease, unguaranteed residual value | 12.9 | 12.9 | |||||||
Equipment | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Operating lease, residual value of leased asset | 2.2 | 2.2 | |||||||
Equipment | PNM | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Operating lease, residual value of leased asset | 0.9 | 0.9 | |||||||
Equipment | TNMP | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Operating lease, residual value of leased asset | $ 1.3 | $ 1.3 |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease assets, net of amortization | $ 62,440 | $ 79,511 |
Current portion of operating lease liabilities | 18,534 | 27,218 |
Long-term portion of operating lease liabilities | 41,701 | 55,993 |
PNM | ||
Operating leases: | ||
Operating lease assets, net of amortization | 58,670 | 73,903 |
Current portion of operating lease liabilities | 16,902 | 25,278 |
Long-term portion of operating lease liabilities | 39,754 | 52,552 |
TNMP | ||
Operating leases: | ||
Operating lease assets, net of amortization | 3,769 | 5,264 |
Current portion of operating lease liabilities | 1,631 | 1,882 |
Long-term portion of operating lease liabilities | $ 1,947 | $ 3,155 |
Lease Commitments - Finance Lea
Lease Commitments - Finance Lease Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing leases: | ||
Non-utility property | $ 36,853 | $ 31,695 |
Accumulated depreciation | (14,340) | (9,660) |
Non-utility property, net | 22,513 | 22,035 |
Other current liabilities | 6,827 | 5,813 |
Other deferred credits | 15,602 | 16,075 |
PNM | ||
Financing leases: | ||
Non-utility property | 18,151 | 15,171 |
Accumulated depreciation | (6,843) | (4,550) |
Non-utility property, net | 11,308 | 10,621 |
Other current liabilities | 3,248 | 2,731 |
Other deferred credits | 7,962 | 7,732 |
TNMP | ||
Financing leases: | ||
Non-utility property | 18,372 | 16,181 |
Accumulated depreciation | (7,256) | (4,923) |
Non-utility property, net | 11,116 | 11,258 |
Other current liabilities | 3,508 | 2,994 |
Other deferred credits | $ 7,620 | $ 8,273 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Sep. 30, 2022 |
Weighted average remaining lease term (years): | |
Operating leases | 6 years 8 months 8 days |
Financing leases | 3 years 8 months 26 days |
Weighted average discount rate: | |
Operating leases | 4.01% |
Financing leases | 3.08% |
PNM | |
Weighted average remaining lease term (years): | |
Operating leases | 6 years 11 months 23 days |
Financing leases | 4 years 3 days |
Weighted average discount rate: | |
Operating leases | 4.01% |
Financing leases | 3.07% |
TNMP | |
Weighted average remaining lease term (years): | |
Operating leases | 2 years 4 months 6 days |
Financing leases | 3 years 5 months 23 days |
Weighted average discount rate: | |
Operating leases | 4% |
Financing leases | 3.09% |
Lease Commitments - Components
Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease, Cost [Line Items] | ||||
Operating lease cost: | $ 7,205 | $ 7,192 | $ 21,623 | $ 22,006 |
Amounts capitalized | (577) | (716) | (1,860) | (2,264) |
Total operating lease expense | 6,628 | 6,476 | 19,763 | 19,742 |
Financing lease cost: | ||||
Amortization of right-of-use assets | 1,585 | 1,372 | 4,680 | 3,802 |
Interest on lease liabilities | 170 | 145 | 471 | 426 |
Amounts capitalized | (1,417) | (1,161) | (3,957) | (3,202) |
Total financing lease expense | 338 | 356 | 1,194 | 1,026 |
Variable lease expense | 262 | 106 | 629 | 274 |
Short-term lease expense | 567 | 1,578 | 2,884 | 1,857 |
Total lease expense for the period | 7,795 | 8,516 | 24,470 | 22,899 |
Cooling Towers | ||||
Financing lease cost: | ||||
Short-term lease expense | 400 | 2,700 | ||
Increase reimbursements | 400 | 2,700 | ||
PNM | ||||
Lease, Cost [Line Items] | ||||
Operating lease cost: | 6,736 | 6,569 | 20,085 | 20,020 |
Amounts capitalized | (166) | (199) | (524) | (645) |
Total operating lease expense | 6,570 | 6,370 | 19,561 | 19,375 |
Financing lease cost: | ||||
Amortization of right-of-use assets | 792 | 657 | 2,293 | 1,793 |
Interest on lease liabilities | 84 | 66 | 231 | 193 |
Amounts capitalized | (588) | (452) | (1,648) | (1,235) |
Total financing lease expense | 288 | 271 | 876 | 751 |
Variable lease expense | 262 | 106 | 629 | 274 |
Short-term lease expense | 568 | 1,572 | 2,837 | 1,821 |
Total lease expense for the period | 7,688 | 8,319 | 23,903 | 22,221 |
TNMP | ||||
Lease, Cost [Line Items] | ||||
Operating lease cost: | 466 | 594 | 1,489 | 1,880 |
Amounts capitalized | (410) | (517) | (1,336) | (1,618) |
Total operating lease expense | 56 | 77 | 153 | 262 |
Financing lease cost: | ||||
Amortization of right-of-use assets | 779 | 693 | 2,334 | 1,944 |
Interest on lease liabilities | 85 | 78 | 238 | 230 |
Amounts capitalized | (829) | (709) | (2,309) | (1,967) |
Total financing lease expense | 35 | 62 | 263 | 207 |
Variable lease expense | 0 | 0 | 0 | 0 |
Short-term lease expense | 1 | 2 | 4 | 6 |
Total lease expense for the period | $ 92 | $ 141 | $ 420 | $ 475 |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Supplemental Cash Flows Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 25,670 | $ 25,897 |
Operating cash flows from financing leases | 101 | 92 |
Finance cash flows from financing leases | 1,249 | 920 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 2,924 | 317 |
Financing leases | 5,381 | 5,567 |
PNM | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 25,503 | 25,511 |
Operating cash flows from financing leases | 67 | 65 |
Finance cash flows from financing leases | 810 | 621 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 2,924 | 0 |
Financing leases | 3,032 | 2,898 |
TNMP | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 118 | 262 |
Operating cash flows from financing leases | 32 | 24 |
Finance cash flows from financing leases | 371 | 234 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 0 | 317 |
Financing leases | $ 2,349 | $ 2,642 |
Lease Commitments - Schedule _3
Lease Commitments - Schedule of Future Expected Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Financing | |
Remainder of 2022 | $ 1,896 |
2023 | 7,251 |
2024 | 5,916 |
2025 | 4,134 |
2026 | 2,626 |
Later years | 1,956 |
Total minimum lease payments | 23,779 |
Less: Imputed interest | 1,350 |
Lease liabilities as of September 30, 2022 | 22,429 |
Operating | |
Remainder of 2022 | 10,725 |
2023 | 10,465 |
2024 | 8,171 |
2025 | 7,847 |
2026 | 7,090 |
Later years | 24,384 |
Total minimum lease payments | 68,682 |
Less: Imputed interest | 8,447 |
Lease liabilities as of September 30, 2022 | 60,235 |
PNM | |
Financing | |
Remainder of 2022 | 898 |
2023 | 3,497 |
2024 | 2,777 |
2025 | 1,940 |
2026 | 1,513 |
Later years | 1,324 |
Total minimum lease payments | 11,949 |
Less: Imputed interest | 739 |
Lease liabilities as of September 30, 2022 | 11,210 |
Operating | |
Remainder of 2022 | 10,234 |
2023 | 8,779 |
2024 | 7,217 |
2025 | 7,076 |
2026 | 7,014 |
Later years | 24,384 |
Total minimum lease payments | 64,704 |
Less: Imputed interest | 8,048 |
Lease liabilities as of September 30, 2022 | 56,656 |
TNMP | |
Financing | |
Remainder of 2022 | 976 |
2023 | 3,698 |
2024 | 3,125 |
2025 | 2,192 |
2026 | 1,113 |
Later years | 632 |
Total minimum lease payments | 11,736 |
Less: Imputed interest | 608 |
Lease liabilities as of September 30, 2022 | 11,128 |
Operating | |
Remainder of 2022 | 455 |
2023 | 1,546 |
2024 | 943 |
2025 | 770 |
2026 | 76 |
Later years | 0 |
Total minimum lease payments | 3,790 |
Less: Imputed interest | 212 |
Lease liabilities as of September 30, 2022 | $ 3,578 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 13, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2018 | Sep. 30, 2022 | Dec. 31, 2017 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||||
Accelerated refund application amount of AMT tax, CARES act | $ 5.2 | ||||||
Deferred tax assets, tax deferred expense, payroll taxes, CARES Act | $ 7 | ||||||
Refund amount of AMT tax, CARES act | $ 5.2 | ||||||
Payment of payroll taxes, CARES Act | $ 3.5 | ||||||
Deferred federal, state and local, income taxes | $ 23.6 | ||||||
Effective tax rate | 10.06% | ||||||
Subsequent event | |||||||
Income Tax Contingency [Line Items] | |||||||
Income tax assessment | $ 3.6 | ||||||
PNM | |||||||
Income Tax Contingency [Line Items] | |||||||
Deferred federal, state and local, income taxes | $ 14.4 | ||||||
Effective tax rate | 10.97% | ||||||
TNMP | |||||||
Income Tax Contingency [Line Items] | |||||||
Deferred federal, state and local, income taxes | $ 9.2 | ||||||
Effective tax rate | 13.40% | ||||||
NMPRC | |||||||
Income Tax Contingency [Line Items] | |||||||
Period of time for proposed return to customers the benefit of the reduction in federal corporate income tax rate | 23 years | ||||||
Period of time for proposed return to customers the benefit of the reduction in New Mexico's corporate income tax rate | 3 years |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
PNMR Development | ||||
Related Party Transaction [Line Items] | ||||
Ownership | 50% | 50% | ||
Services billings: | PNMR to PNM | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | $ 26,281 | $ 23,617 | $ 82,352 | $ 75,992 |
Services billings: | PNMR to TNMP | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 9,554 | 9,187 | 30,110 | 29,687 |
Services billings: | PNM to TNMP | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 107 | 107 | 322 | 319 |
Services billings: | TNMP to PNMR | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 35 | 0 | 106 | 24 |
Services billings: | PNMR to NMRD | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 81 | 55 | 226 | 165 |
Renewable energy purchases: | PNM from NMRD | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 3,221 | 3,384 | 9,642 | 9,473 |
Interconnection and facility study billings: | PNM from NMRD | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 0 | 225 | 0 | 225 |
Interconnection and facility study billings: | PNM to PNMR | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 0 | 0 | 0 | 0 |
Interconnection and facility study billings: | NMRD to PNM | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 0 | 0 | 0 | 1,276 |
Interest billings: | PNMR to PNM | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 4 | 0 | 13 | 0 |
Interest billings: | PNMR to TNMP | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 50 | 0 | 166 | 0 |
Interest billings: | PNM to PNMR | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 73 | 36 | 143 | 108 |
Income tax sharing payments: | PNMR to PNM | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 0 | 0 | 0 | 0 |
Income tax sharing payments: | TNMP to PNMR | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Method Investment (Detai
Equity Method Investment (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2021 USD ($) | Sep. 30, 2022 USD ($) MW | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||
Distributions from NMRD | $ 0 | $ 572 | |
NMRD | |||
Business Acquisition [Line Items] | |||
Renewable energy capacity in operating (in mw) | MW | 135.1 | ||
PNMR Development | NMRD | |||
Business Acquisition [Line Items] | |||
Ownership | 50% | ||
Distributions from NMRD | $ 3,000 | ||
Earnings from equity method investments, net of dividends or distributions | $ 2,400 | ||
Proceeds from equity method investment, distribution, return of capital | $ 600 | ||
AEP OnSite Partners | NMRD | |||
Business Acquisition [Line Items] | |||
Ownership | 50% |
Equity Method Investment - Summ
Equity Method Investment - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Results of Operations | |||||
Operating revenues | $ 729,888 | $ 554,551 | $ 1,673,736 | $ 1,345,798 | |
Financial Position | |||||
Net property, plant, and equipment | 485,023 | 485,023 | $ 248,856 | ||
Assets | 9,028,890 | 8,256,070 | 9,028,890 | 8,256,070 | 8,666,885 |
Total PNM common stockholder’s equity | 2,201,881 | 2,201,881 | 2,167,524 | ||
NMRD | |||||
Results of Operations | |||||
Operating revenues | 3,407 | 3,543 | 10,224 | 10,179 | |
Operating expenses | 2,381 | 2,422 | 7,172 | 7,360 | |
Net Earnings Attributable to PNM | 1,026 | $ 1,121 | 3,052 | $ 2,819 | |
Financial Position | |||||
Current assets | 6,750 | 6,750 | 10,729 | ||
Net property, plant, and equipment | 166,229 | 166,229 | 166,495 | ||
Non-current assets | 9,749 | 9,749 | 2,289 | ||
Assets | 182,728 | 182,728 | 179,513 | ||
Current liabilities | 1,017 | 1,017 | 824 | ||
Non-current liabilities | 363 | 363 | 373 | ||
Total PNM common stockholder’s equity | $ 181,348 | $ 181,348 | $ 178,316 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Apr. 01, 2018 |
Goodwill [Line Items] | ||||
Goodwill | $ 278,297 | $ 278,297 | $ 278,297 | |
PNM | ||||
Goodwill [Line Items] | ||||
Goodwill | 51,632 | 51,632 | $ 51,600 | |
Goodwill fair value exceeded by its carrying value | 19% | |||
TNMP | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 226,665 | $ 226,665 | $ 226,700 | |
Goodwill fair value exceeded by its carrying value | 38% |
Merger (Details)
Merger (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2023 | May 10, 2022 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Proceeding extension period granted | 1 year | ||
Merger Agreement | Forecast | |||
Business Acquisition [Line Items] | |||
Business combination, cash right per common share (in dollars per share) | $ 50.30 | ||
Termination fees | $ 130 | ||
Out-of-pocket fees and expenses reimbursement | 10 | ||
Merger Agreement | Avangrid | Forecast | |||
Business Acquisition [Line Items] | |||
Termination fees | $ 184 |