Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 85,834,874 | ||
Entity Public Float | $ 4,101,190,280 | ||
Documents Incorporated by Reference | Portions of the following document are incorporated by reference into Part III of this report: Proxy Statement to be filed by PNMR with the SEC pursuant to Regulation 14A relating to the annual meeting of shareholders of PNMR to be held on May 9, 2023. This combined Form 10-K is separately filed by PNMR, PNM, and TNMP. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants. When this Form 10-K is incorporated by reference into any filing with the SEC made by PNMR, PNM, or TNMP, as a registrant, the portions of this Form 10-K that relate to each other registrant are not incorporated by reference therein. | ||
Entity Central Index Key | 0001108426 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Public Service Company of New Mexico | |||
Document Information [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
City Area Code | 505 | ||
Local Phone Number | 241-2700 | ||
Entity File Number | 001-06986 | ||
Entity Tax Identification Number | 85-0019030 | ||
Title of 12(b) Security | 1965 Series, 4.58% Cumulative Preferred Stock | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock, Shares Outstanding | 39,117,799 | ||
Entity Central Index Key | 0000081023 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Texas-New Mexico Power Company | |||
Document Information [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock, Shares Outstanding | 6,358 | ||
Entity Central Index Key | 0000022767 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Albuquerque, New Mexico |
Public Service Company of New Mexico | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Albuquerque, New Mexico |
Texas-New Mexico Power Company | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Albuquerque, New Mexico |
Consolidated Statements of Earn
Consolidated Statements of Earnings - PNMR - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Electric Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Operating Expenses: | |||
Administrative and general | 227,149 | 230,292 | 216,334 |
Regulatory disallowances and restructuring costs | 832 | 1,194 | 1,098 |
Depreciation and amortization | 304,853 | 284,107 | 275,612 |
Transmission and distribution costs | 94,684 | 81,335 | 77,943 |
Taxes other than income taxes | 92,989 | 86,008 | 81,526 |
Total operating expenses | 1,855,795 | 1,471,720 | 1,237,731 |
Operating income | 393,760 | 308,153 | 285,281 |
Other Income and Deductions: | |||
Interest income | 16,095 | 14,662 | 14,223 |
(Gains) losses on investment securities | (78,357) | 16,850 | 21,599 |
Other income | 21,601 | 20,200 | 19,973 |
Other (deductions) | (13,881) | (18,559) | (18,732) |
Net other income and (deductions) | (54,542) | 33,153 | 37,063 |
Interest Charges | 127,908 | 96,877 | 114,392 |
Earnings before Income Taxes | 211,310 | 244,429 | 207,952 |
Income Taxes | 26,130 | 32,582 | 20,636 |
Net Earnings | 185,180 | 211,847 | 187,316 |
(Earnings) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Preferred Stock Dividends Requirements | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | $ 169,530 | $ 195,829 | $ 172,775 |
Net Earnings Attributable to PNMR per Common Share: | |||
Basic (in dollars per share) | $ 1.97 | $ 2.28 | $ 2.16 |
Diluted (in dollars per share) | $ 1.97 | $ 2.27 | $ 2.15 |
Electricity | |||
Electric Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Operating Expenses: | |||
Cost of energy and production costs | 987,941 | 644,853 | 447,241 |
Electricity, Generation | |||
Operating Expenses: | |||
Cost of energy and production costs | $ 147,347 | $ 143,931 | $ 137,977 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - PNMR - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings | $ 185,180 | $ 211,847 | $ 187,316 |
Unrealized Gains on Available-for-Sale Securities: | |||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $490, $478, and $(5,736) | (1,438) | (1,403) | 16,850 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $972, $2,480, and $2,412 | (2,855) | (7,285) | (7,085) |
Pension Liability Adjustment: | |||
Experience gains (losses), net of income tax (expense) benefit of $1,159, $(3,076), and $(1,562) | (3,406) | 9,035 | 4,587 |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(1,804), $(2,120), and $(2,108) | 5,300 | 6,228 | 6,192 |
Fair Value Adjustment for Cash Flow Hedges: | |||
Change in fair market value, net of income tax (expense) of $(3,121), $(458), and $(323) | 9,164 | 1,346 | 948 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $299, $229, and $442 | (877) | (674) | (1,298) |
Total Other Comprehensive Income | 5,888 | 7,247 | 20,194 |
Comprehensive Income | 191,068 | 219,094 | 207,510 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Preferred Stock Dividends Requirements | (528) | (528) | (528) |
Comprehensive Income Attributable to PNMR | $ 175,418 | $ 203,076 | $ 192,969 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) - PNMR (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | $ 490 | $ 478 | $ (5,736) |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 972 | 2,480 | 2,412 |
Pension liability adjustment, income tax expense (benefit) | 1,159 | (3,076) | (1,562) |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, income tax expense | (1,804) | (2,120) | (2,108) |
Change in fair market value, income tax (expense) benefit | (3,121) | (458) | (323) |
Reclassification adjustment for losses included in net earnings, income tax expense (benefit) | $ 299 | $ 229 | $ 442 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - PNMR - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | |||
Net Earnings | $ 185,180 | $ 211,847 | $ 187,316 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 341,123 | 320,210 | 314,668 |
Deferred income tax expense | 24,533 | 30,747 | 20,405 |
(Gains) losses on investment securities | 78,357 | (16,850) | (21,599) |
Stock based compensation expense | 7,825 | 9,446 | 8,141 |
Regulatory disallowances and restructuring costs | 832 | 1,194 | 1,098 |
Allowance for equity funds used during construction | (13,799) | (13,217) | (11,254) |
Other, net | 2,377 | 5,457 | 3,497 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (73,099) | (25,924) | (42,035) |
Materials, supplies, and fuel stock | (8,528) | 1,356 | 11,512 |
Other current assets | 17,159 | 1,838 | (8,135) |
Other assets | 5,002 | 31,135 | 29,923 |
Accounts payable | 47,568 | 10,640 | 7,403 |
Accrued interest and taxes | 9,205 | 2,692 | (9,347) |
Other current liabilities | (28,516) | 6,894 | 23,740 |
Other liabilities | (27,935) | (29,592) | (29,633) |
Net cash flows from operating activities | 567,284 | 547,873 | 485,700 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (912,557) | (935,016) | (679,028) |
Proceeds from sales of investment securities | 526,448 | 459,867 | 590,998 |
Purchases of investment securities | (564,912) | (477,672) | (607,591) |
Investments in NMRD | 0 | 0 | (23,250) |
Distributions from NMRD | 0 | 572 | 0 |
Other, net | 674 | (9) | (14,928) |
Net cash flows used in investing activities | (950,347) | (952,258) | (733,799) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 169,300 | 30,700 | (153,100) |
Long-term borrowings | 558,000 | 1,816,345 | 1,267,845 |
Repayment of long-term debt | (179,500) | (1,411,345) | (977,845) |
Issuance of common stock | 0 | 0 | 283,208 |
Proceeds from stock option exercise | 0 | 24 | |
Awards of common stock | (7,980) | (10,130) | (11,984) |
Dividends paid | (119,839) | (112,972) | (98,502) |
Valencia’s transactions with its owner | (17,533) | (19,094) | (18,056) |
Transmission interconnection and security deposit arrangements | 96,550 | 80,558 | 11,452 |
Refunds paid under transmission interconnection arrangements | (107,397) | (10,195) | (5,905) |
Debt issuance costs and other, net | (5,564) | (6,306) | (4,943) |
Net cash flows from financing activities | 386,037 | 357,561 | 292,194 |
Change in Cash and Cash Equivalents | 2,974 | (46,824) | 44,095 |
Cash and Cash Equivalents at Beginning of Year | 1,104 | 47,928 | 3,833 |
Cash and Cash Equivalents at End of Year | 4,078 | 1,104 | 47,928 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 118,485 | 91,276 | 106,575 |
Income taxes paid (refunded), net | (1,011) | 1,042 | 969 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | 4,455 | 7,362 | (58,796) |
Contribution of utility plant to NMRD | $ 0 | $ 0 | $ 801 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - PNMR - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 4,078 | $ 1,104 |
Accounts receivable, net of allowance for credit losses of $4,925 and $7,265 | 183,669 | 123,292 |
Unbilled revenues | 63,473 | 57,736 |
Other receivables | 20,320 | 18,784 |
Materials, supplies, and fuel stock | 66,733 | 65,061 |
Regulatory assets | 20,265 | 14,785 |
Prepaid assets | 18,465 | 37,325 |
Income taxes receivable | 2,351 | 4,878 |
Other current assets | 31,624 | 1,635 |
Total current assets | 410,978 | 324,600 |
Other Property and Investments: | ||
Investment securities | 417,476 | 463,126 |
Equity investment in NMRD | 90,620 | 89,158 |
Other investments | 177 | 265 |
Non-utility property, including financing leases | 26,841 | 25,439 |
Total other property and investments | 535,114 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 9,164,564 | 9,357,849 |
Less accumulated depreciation and amortization | 2,659,952 | 2,952,743 |
Net plant in service and plant held for future use | 6,504,612 | 6,405,106 |
Construction work in progress | 372,988 | 248,856 |
Nuclear fuel, net of accumulated amortization of $43,985 and $41,181 | 95,223 | 98,937 |
Net utility plant | 6,972,823 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 846,686 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease assets, net of amortization | 55,982 | 79,511 |
Other deferred charges | 157,497 | 139,332 |
Total deferred charges and other assets | 1,338,462 | 1,011,398 |
Total assets | 9,257,377 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 232,000 | 62,700 |
Current installments of long-term debt | 184,793 | 179,339 |
Accounts payable | 215,708 | 172,595 |
Customer deposits | 6,117 | 5,095 |
Accrued interest and taxes | 76,783 | 70,105 |
Regulatory liabilities | 17,002 | 8,316 |
Operating lease liabilities | 18,781 | 27,218 |
Dividends declared | 31,676 | 132 |
Transmission interconnection arrangement liabilities | 20,473 | 39,564 |
Other current liabilities | 87,037 | 99,149 |
Total current liabilities | 890,370 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,892,594 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 822,831 | 764,850 |
Regulatory liabilities | 755,202 | 841,393 |
Asset retirement obligations | 223,377 | 234,146 |
Accrued pension liability and postretirement benefit cost | 32,799 | 19,057 |
Operating lease liabilities | 41,336 | 55,993 |
Other deferred credits | 342,413 | 333,195 |
Total deferred credits and other liabilities | 2,217,958 | 2,248,634 |
Total liabilities | 7,000,922 | 6,432,427 |
Commitments and Contingencies (See Note 16) | ||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
Company common stockholders’ equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,429,102 | 1,429,257 |
Accumulated other comprehensive income (loss), net of income taxes | (66,048) | (71,936) |
Retained earnings | 828,878 | 810,203 |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 |
Non-controlling interest in Valencia | 52,994 | 55,405 |
Total equity | 2,244,926 | 2,222,929 |
Total liabilities and stockholders' equity | $ 9,257,377 | $ 8,666,885 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - PNMR (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Allowance for uncollectible accounts | $ 4,925 | $ 7,265 |
Utility Plant: | ||
Accumulated depreciation, nuclear fuel | $ 43,985 | $ 41,181 |
Deferred Credits and Other Liabilities: | ||
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 |
Company common stockholders’ equity: | ||
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 outstanding (in shares) | 85,834,874 | 85,834,874 |
Public Service Company of New Mexico | ||
Current Assets: | ||
Allowance for uncollectible accounts | $ 4,925 | $ 7,265 |
Utility Plant: | ||
Accumulated depreciation, nuclear fuel | $ 43,985 | $ 41,181 |
Company common stockholders’ equity: | ||
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 |
Texas-New Mexico Power Company | ||
Company common stockholders’ equity: | ||
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 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - PNMR - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | AOCI | Retained Earnings | Non- controlling Interest in Valencia |
Beginning Balance at Dec. 31, 2019 | $ 1,741,750 | $ 1,678,698 | $ 1,150,552 | $ (99,377) | $ 627,523 | $ 63,052 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings before subsidiary preferred stock dividends | 187,316 | 173,303 | 173,303 | 14,013 | ||
Total other comprehensive income | 20,194 | 20,194 | 20,194 | |||
Subsidiary preferred stock dividends | (528) | (528) | (528) | |||
Dividends declared on common stock | (101,591) | (101,591) | (101,591) | |||
Proceeds from stock option exercise | 24 | 24 | 24 | |||
Awards of common stock | (11,984) | (11,984) | (11,984) | |||
Issuance of common stock | 283,208 | 283,208 | 283,208 | |||
Stock based compensation expense | 8,141 | 8,141 | 8,141 | |||
Valencia’s transactions with its owner | (18,056) | (18,056) | ||||
Ending 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 | 211,847 | 196,357 | 196,357 | 15,490 | ||
Total other comprehensive income | 7,247 | 7,247 | 7,247 | |||
Subsidiary preferred stock dividends | (528) | (528) | (528) | |||
Dividends declared on common stock | (84,333) | (84,333) | (84,333) | |||
Awards of common stock | (10,130) | (10,130) | (10,130) | |||
Stock based compensation expense | 9,446 | 9,446 | 9,446 | |||
Valencia’s transactions with its owner | (19,094) | (19,094) | ||||
Ending 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 | 185,180 | 170,058 | 170,058 | 15,122 | ||
Total other comprehensive income | 5,888 | 5,888 | 5,888 | |||
Subsidiary preferred stock dividends | (528) | (528) | (528) | |||
Dividends declared on common stock | (150,855) | (150,855) | (150,855) | |||
Awards of common stock | (7,980) | (7,980) | (7,980) | |||
Stock based compensation expense | 7,825 | 7,825 | 7,825 | |||
Valencia’s transactions with its owner | (17,533) | (17,533) | ||||
Ending Balance at Dec. 31, 2022 | $ 2,244,926 | $ 2,191,932 | $ 1,429,102 | $ (66,048) | $ 828,878 | $ 52,994 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings - PNM - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Electric Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Operating Expenses: | |||
Administrative and general | 227,149 | 230,292 | 216,334 |
Regulatory disallowances and restructuring costs | 832 | 1,194 | 1,098 |
Depreciation and amortization | 304,853 | 284,107 | 275,612 |
Transmission and distribution costs | 94,684 | 81,335 | 77,943 |
Taxes other than income taxes | 92,989 | 86,008 | 81,526 |
Total operating expenses | 1,855,795 | 1,471,720 | 1,237,731 |
Operating income | 393,760 | 308,153 | 285,281 |
Other Income and Deductions: | |||
Interest income | 16,095 | 14,662 | 14,223 |
Gains (losses) on investment securities | (78,357) | 16,850 | 21,599 |
Other income | 21,601 | 20,200 | 19,973 |
Other (deductions) | (13,881) | (18,559) | (18,732) |
Net other income and (deductions) | (54,542) | 33,153 | 37,063 |
Interest Charges | 127,908 | 96,877 | 114,392 |
Earnings before Income Taxes | 211,310 | 244,429 | 207,952 |
Income Taxes | 26,130 | 32,582 | 20,636 |
Net Earnings | 185,180 | 211,847 | 187,316 |
(Earnings) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Preferred Stock Dividends Requirements | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | 169,530 | 195,829 | 172,775 |
Public Service Company of New Mexico | |||
Electric Operating Revenues | 1,766,825 | 1,362,020 | 1,139,834 |
Operating Expenses: | |||
Administrative and general | 204,846 | 196,719 | 180,113 |
Regulatory disallowances and restructuring costs | 832 | 1,194 | 1,098 |
Depreciation and amortization | 180,812 | 170,365 | 165,325 |
Transmission and distribution costs | 58,278 | 49,846 | 49,534 |
Taxes other than income taxes | 49,210 | 46,682 | 45,723 |
Total operating expenses | 1,505,338 | 1,140,523 | 924,937 |
Operating income | 261,487 | 221,497 | 214,897 |
Other Income and Deductions: | |||
Interest income | 14,816 | 14,605 | 14,469 |
Gains (losses) on investment securities | (78,357) | 16,850 | 21,599 |
Other income | 10,763 | 11,390 | 9,800 |
Other (deductions) | (9,418) | (14,431) | (14,279) |
Net other income and (deductions) | (62,196) | 28,414 | 31,589 |
Interest Charges | 61,073 | 51,360 | 64,615 |
Earnings before Income Taxes | 138,218 | 198,551 | 181,871 |
Income Taxes | 19,198 | 26,992 | 21,857 |
Net Earnings | 119,020 | 171,559 | 160,014 |
(Earnings) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Net earnings | 103,898 | 156,069 | 146,001 |
Preferred Stock Dividends Requirements | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | 103,370 | 155,541 | 145,473 |
Electricity | |||
Electric Operating Revenues | 2,249,555 | 1,779,873 | 1,523,012 |
Operating Expenses: | |||
Cost of energy and production costs | 987,941 | 644,853 | 447,241 |
Electricity | Public Service Company of New Mexico | |||
Operating Expenses: | |||
Cost of energy and production costs | 864,013 | 531,786 | 345,167 |
Electricity, Generation | |||
Operating Expenses: | |||
Cost of energy and production costs | 147,347 | 143,931 | 137,977 |
Electricity, Generation | Public Service Company of New Mexico | |||
Operating Expenses: | |||
Cost of energy and production costs | $ 147,347 | $ 143,931 | $ 137,977 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income - PNM - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Earnings | $ 185,180 | $ 211,847 | $ 187,316 |
Unrealized Gains on Available-for-Sale Securities: | |||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $490, $478, and $(5,736) | (1,438) | (1,403) | 16,850 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $972, $2,480, and $2,412 | (2,855) | (7,285) | (7,085) |
Pension Liability Adjustment: | |||
Experience gains (losses), net of income tax (expense) benefit of $1,159, $(3,076), and $(1,562) | (3,406) | 9,035 | 4,587 |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(1,804), $(2,120), and $(2,108) | 5,300 | 6,228 | 6,192 |
Total Other Comprehensive Income | 5,888 | 7,247 | 20,194 |
Comprehensive Income | 191,068 | 219,094 | 207,510 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Comprehensive Income Attributable to PNMR | 175,418 | 203,076 | 192,969 |
Public Service Company of New Mexico | |||
Net Earnings | 119,020 | 171,559 | 160,014 |
Unrealized Gains on Available-for-Sale Securities: | |||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $490, $478, and $(5,736) | (1,438) | (1,403) | 16,850 |
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $972, $2,480, and $2,412 | (2,855) | (7,285) | (7,085) |
Pension Liability Adjustment: | |||
Experience gains (losses), net of income tax (expense) benefit of $1,159, $(3,076), and $(1,562) | (3,406) | 9,035 | 4,587 |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $(1,804), $(2,120), and $(2,108) | 5,300 | 6,228 | 6,192 |
Total Other Comprehensive Income | (2,399) | 6,575 | 20,544 |
Comprehensive Income | 116,621 | 178,134 | 180,558 |
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (15,122) | (15,490) | (14,013) |
Comprehensive Income Attributable to PNMR | $ 101,499 | $ 162,644 | $ 166,545 |
Consolidated Statements of Co_4
Consolidated Statements of Comprehensive Income (Loss) - PNM (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | $ 490 | $ 478 | $ (5,736) |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 972 | 2,480 | 2,412 |
Pension liability adjustment, income tax expense (benefit) | 1,159 | (3,076) | (1,562) |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, income tax expense | (1,804) | (2,120) | (2,108) |
Public Service Company of New Mexico | |||
Unrealized holding gains (losses) arising during the period, income tax (expense) benefit | 490 | 478 | (5,736) |
Reclassification adjustment for (gains) losses included in net earnings, income tax expense (benefit) | 972 | 2,480 | 2,412 |
Pension liability adjustment, income tax expense (benefit) | 1,159 | (3,076) | (1,562) |
Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, income tax expense | $ (1,804) | $ (2,120) | $ (2,108) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - PNM - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | |||
Net Earnings | $ 185,180,000 | $ 211,847,000 | $ 187,316,000 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 341,123,000 | 320,210,000 | 314,668,000 |
Deferred income tax expense | 24,533,000 | 30,747,000 | 20,405,000 |
(Gains) losses on investment securities | 78,357,000 | (16,850,000) | (21,599,000) |
Regulatory disallowances and restructuring costs | 832,000 | 1,194,000 | 1,098,000 |
Allowance for equity funds used during construction | (13,799,000) | (13,217,000) | (11,254,000) |
Other, net | 2,377,000 | 5,457,000 | 3,497,000 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (73,099,000) | (25,924,000) | (42,035,000) |
Materials, supplies, and fuel stock | (8,528,000) | 1,356,000 | 11,512,000 |
Other current assets | 17,159,000 | 1,838,000 | (8,135,000) |
Other assets | 5,002,000 | 31,135,000 | 29,923,000 |
Accounts payable | 47,568,000 | 10,640,000 | 7,403,000 |
Accrued interest and taxes | 9,205,000 | 2,692,000 | (9,347,000) |
Other current liabilities | (28,516,000) | 6,894,000 | 23,740,000 |
Other liabilities | (27,935,000) | (29,592,000) | (29,633,000) |
Net cash flows from operating activities | 567,284,000 | 547,873,000 | 485,700,000 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (912,557,000) | (935,016,000) | (679,028,000) |
Proceeds from sales of investment securities | 526,448,000 | 459,867,000 | 590,998,000 |
Purchases of investment securities | (564,912,000) | (477,672,000) | (607,591,000) |
Other, net | 674,000 | (9,000) | (14,928,000) |
Net cash flows used in investing activities | (950,347,000) | (952,258,000) | (733,799,000) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 169,300,000 | 30,700,000 | (153,100,000) |
Long-term borrowings | 558,000,000 | 1,816,345,000 | 1,267,845,000 |
Repayment of long-term debt | (179,500,000) | (1,411,345,000) | (977,845,000) |
Dividends paid | (119,839,000) | (112,972,000) | (98,502,000) |
Valencia’s transactions with its owner | (17,533,000) | (19,094,000) | (18,056,000) |
Transmission interconnection and security deposit arrangements | 96,550,000 | 80,558,000 | 11,452,000 |
Refunds paid under transmission interconnection arrangements | (107,397,000) | (10,195,000) | (5,905,000) |
Debt issuance costs and other, net | (5,564,000) | (6,306,000) | (4,943,000) |
Net cash flows from financing activities | 386,037,000 | 357,561,000 | 292,194,000 |
Change in Cash and Cash Equivalents | 2,974,000 | (46,824,000) | 44,095,000 |
Cash and Cash Equivalents at Beginning of Year | 1,104,000 | 47,928,000 | 3,833,000 |
Cash and Cash Equivalents at End of Year | 4,078,000 | 1,104,000 | 47,928,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 118,485,000 | 91,276,000 | 106,575,000 |
Income taxes paid (refunded), net | (1,011,000) | 1,042,000 | 969,000 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | 4,455,000 | 7,362,000 | (58,796,000) |
Public Service Company of New Mexico | |||
Cash Flows From Operating Activities: | |||
Net Earnings | 119,020,000 | 171,559,000 | 160,014,000 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 213,517,000 | 203,401,000 | 198,418,000 |
Deferred income tax expense | 29,487,000 | 27,120,000 | 22,442,000 |
(Gains) losses on investment securities | 78,357,000 | (16,850,000) | (21,599,000) |
Regulatory disallowances and restructuring costs | 832,000 | 1,194,000 | 1,098,000 |
Allowance for equity funds used during construction | (9,323,000) | (9,905,000) | (6,958,000) |
Other, net | 3,758,000 | 4,482,000 | 4,950,000 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (60,743,000) | (24,757,000) | (41,340,000) |
Materials, supplies, and fuel stock | (4,804,000) | 2,531,000 | 11,753,000 |
Other current assets | 17,956,000 | 2,154,000 | (2,718,000) |
Other assets | 5,487,000 | 30,187,000 | 24,882,000 |
Accounts payable | 48,868,000 | 9,836,000 | 6,267,000 |
Accrued interest and taxes | (19,574,000) | 20,214,000 | (11,572,000) |
Other current liabilities | (41,876,000) | 9,169,000 | 16,682,000 |
Other liabilities | (26,029,000) | (37,884,000) | (36,556,000) |
Net cash flows from operating activities | 354,933,000 | 392,451,000 | 325,763,000 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (433,459,000) | (602,180,000) | (335,055,000) |
Proceeds from sales of investment securities | 526,448,000 | 459,867,000 | 590,998,000 |
Purchases of investment securities | (564,912,000) | (477,672,000) | (607,591,000) |
Other, net | 439,000 | (9,000) | (14,942,000) |
Net cash flows used in investing activities | (471,484,000) | (619,994,000) | (366,590,000) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 178,500,000 | (2,600,000) | (48,000,000) |
Long-term borrowings | 298,000,000 | 631,345,000 | 852,845,000 |
Repayment of long-term debt | (179,500,000) | (446,345,000) | (902,845,000) |
Equity contribution from parent | 0 | 53,000,000 | 230,000,000 |
Dividends paid | (154,028,000) | (60,528,000) | (41,181,000) |
Valencia’s transactions with its owner | (17,533,000) | (19,094,000) | (18,056,000) |
Transmission interconnection and security deposit arrangements | 90,150,000 | 47,858,000 | 4,050,000 |
Refunds paid under transmission interconnection arrangements | (93,247,000) | (2,893,000) | (5,905,000) |
Debt issuance costs and other, net | (2,825,000) | (4,627,000) | 364,000 |
Net cash flows from financing activities | 119,517,000 | 196,116,000 | 71,272,000 |
Change in Cash and Cash Equivalents | 2,966,000 | (31,427,000) | 30,445,000 |
Cash and Cash Equivalents at Beginning of Year | 19,000 | 31,446,000 | 1,001,000 |
Cash and Cash Equivalents at End of Year | 2,985,000 | 19,000 | 31,446,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 54,816,000 | 45,729,000 | 60,663,000 |
Income taxes paid (refunded), net | 11,602,000 | (19,492,000) | 0 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | $ (6,859,000) | $ 23,091,000 | $ (48,037,000) |
Consolidated Balance Sheets -_3
Consolidated Balance Sheets - PNM - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 4,078 | $ 1,104 |
Accounts receivable, net of allowance for credit losses of $4,925 and $7,265 | 183,669 | 123,292 |
Unbilled revenues | 63,473 | 57,736 |
Other receivables | 20,320 | 18,784 |
Materials, supplies, and fuel stock | 66,733 | 65,061 |
Regulatory assets | 20,265 | 14,785 |
Prepaid assets | 18,465 | 37,325 |
Income taxes receivable | 2,351 | 4,878 |
Other current assets | 31,624 | 1,635 |
Total current assets | 410,978 | 324,600 |
Other Property and Investments: | ||
Investment securities | 417,476 | 463,126 |
Other investments | 177 | 265 |
Non-utility property, including financing leases | 26,841 | 25,439 |
Total other property and investments | 535,114 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 9,164,564 | 9,357,849 |
Less accumulated depreciation and amortization | 2,659,952 | 2,952,743 |
Net plant in service and plant held for future use | 6,504,612 | 6,405,106 |
Construction work in progress | 372,988 | 248,856 |
Nuclear fuel, net of accumulated amortization of $43,985 and $41,181 | 95,223 | 98,937 |
Net utility plant | 6,972,823 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 846,686 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease assets, net of amortization | 55,982 | 79,511 |
Other deferred charges | 157,497 | 139,332 |
Total deferred charges and other assets | 1,338,462 | 1,011,398 |
Total assets | 9,257,377 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 232,000 | 62,700 |
Current installments of long-term debt | 184,793 | 179,339 |
Accounts payable | 215,708 | 172,595 |
Customer deposits | 6,117 | 5,095 |
Accrued interest and taxes | 76,783 | 70,105 |
Regulatory liabilities | 17,002 | 8,316 |
Operating lease liabilities | 18,781 | 27,218 |
Dividends declared | 31,676 | 132 |
Transmission interconnection arrangement liabilities | 20,473 | 39,564 |
Other current liabilities | 87,037 | 99,149 |
Total current liabilities | 890,370 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,892,594 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 822,831 | 764,850 |
Regulatory liabilities | 755,202 | 841,393 |
Asset retirement obligations | 223,377 | 234,146 |
Accrued pension liability and postretirement benefit cost | 32,799 | 19,057 |
Operating lease liabilities | 41,336 | 55,993 |
Other deferred credits | 342,413 | 333,195 |
Total deferred credits and other liabilities | 2,217,958 | 2,248,634 |
Total liabilities | 7,000,922 | 6,432,427 |
Commitments and Contingencies (See Note 16) | ||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
Company common stockholders’ equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,429,102 | 1,429,257 |
Accumulated other comprehensive income (loss), net of income taxes | (66,048) | (71,936) |
Retained earnings | 828,878 | 810,203 |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 |
Non-controlling interest in Valencia | 52,994 | 55,405 |
Total equity | 2,244,926 | 2,222,929 |
Total liabilities and stockholders' equity | 9,257,377 | 8,666,885 |
Public Service Company of New Mexico | ||
Current Assets: | ||
Cash and cash equivalents | 2,985 | 19 |
Accounts receivable, net of allowance for credit losses of $4,925 and $7,265 | 151,386 | 98,151 |
Unbilled revenues | 45,282 | 44,759 |
Other receivables | 13,877 | 16,538 |
Affiliate receivables | 8,868 | 8,837 |
Materials, supplies, and fuel stock | 55,890 | 57,942 |
Regulatory assets | 18,333 | 8,721 |
Prepaid assets | 10,085 | 30,266 |
Income taxes receivable | 18,233 | 0 |
Other current assets | 20,706 | 1,456 |
Total current assets | 345,645 | 266,689 |
Other Property and Investments: | ||
Investment securities | 417,476 | 463,126 |
Other investments | 76 | 129 |
Non-utility property, including financing leases | 11,695 | 10,717 |
Total other property and investments | 429,247 | 473,972 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 6,007,464 | 6,602,015 |
Less accumulated depreciation and amortization | 1,908,644 | 2,235,068 |
Net plant in service and plant held for future use | 4,098,820 | 4,366,947 |
Construction work in progress | 300,772 | 182,520 |
Nuclear fuel, net of accumulated amortization of $43,985 and $41,181 | 95,223 | 98,937 |
Net utility plant | 4,494,815 | 4,648,404 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 763,941 | 428,981 |
Goodwill | 51,632 | 51,632 |
Operating lease assets, net of amortization | 52,556 | 73,903 |
Other deferred charges | 134,330 | 116,552 |
Total deferred charges and other assets | 1,002,459 | 671,068 |
Total assets | 6,272,166 | 6,060,133 |
Current Liabilities: | ||
Short-term debt | 185,900 | 7,400 |
Current installments of long-term debt | 184,793 | 179,339 |
Accounts payable | 163,522 | 107,795 |
Affiliate payables | 14,919 | 15,203 |
Customer deposits | 6,117 | 5,095 |
Accrued interest and taxes | 35,797 | 37,137 |
Regulatory liabilities | 7,913 | 8,316 |
Operating lease liabilities | 17,239 | 25,278 |
Dividends declared | 132 | 132 |
Transmission interconnection arrangement liabilities | 20,473 | 39,564 |
Other current liabilities | 55,350 | 70,643 |
Total current liabilities | 692,155 | 495,902 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,816,107 | 1,701,771 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 682,040 | 630,682 |
Regulatory liabilities | 556,989 | 653,830 |
Asset retirement obligations | 222,549 | 233,383 |
Accrued pension liability and postretirement benefit cost | 32,007 | 18,718 |
Operating lease liabilities | 39,633 | 52,552 |
Other deferred credits | 258,833 | 246,502 |
Total deferred credits and other liabilities | 1,792,051 | 1,835,667 |
Total liabilities | 4,300,313 | 4,033,340 |
Commitments and Contingencies (See Note 16) | ||
Cumulative Preferred Stock of Subsidiary without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 |
Company common stockholders’ equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,547,918 | 1,547,918 |
Accumulated other comprehensive income (loss), net of income taxes | (74,335) | (71,936) |
Retained earnings | 433,747 | 483,877 |
Total PNMR common stockholders’ equity | 1,907,330 | 1,959,859 |
Non-controlling interest in Valencia | 52,994 | 55,405 |
Total equity | 1,960,324 | 2,015,264 |
Total liabilities and stockholders' equity | $ 6,272,166 | $ 6,060,133 |
Consolidated Balance Sheets -_4
Consolidated Balance Sheets - PNM (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Allowance for uncollectible accounts | $ 4,925 | $ 7,265 |
Utility Plant: | ||
Accumulated depreciation, nuclear fuel | $ 43,985 | $ 41,181 |
Company common stockholders’ equity: | ||
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 outstanding (in shares) | 85,834,874 | 85,834,874 |
Public Service Company of New Mexico | ||
Current Assets: | ||
Allowance for uncollectible accounts | $ 4,925 | $ 7,265 |
Utility Plant: | ||
Accumulated depreciation, nuclear fuel | $ 43,985 | $ 41,181 |
Deferred Credits and Other Liabilities: | ||
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 |
Company common stockholders’ equity: | ||
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 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity - PNM - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | AOCI | Retained Earnings | Non- controlling Interest in Valencia | Public Service Company of New Mexico | Public Service Company of New Mexico Total Stockholders' Equity | Public Service Company of New Mexico Common Stock | Public Service Company of New Mexico AOCI | Public Service Company of New Mexico Retained Earnings | Public Service Company of New Mexico Non- controlling Interest in Valencia |
Beginning Balance at Dec. 31, 2019 | $ 1,741,750 | $ 1,678,698 | $ 1,150,552 | $ (99,377) | $ 627,523 | $ 63,052 | $ 1,512,431 | $ 1,449,379 | $ 1,264,918 | $ (99,055) | $ 283,516 | $ 63,052 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 187,316 | 173,303 | 173,303 | 14,013 | 160,014 | 146,001 | 146,001 | 14,013 | ||||
Total other comprehensive income | 20,194 | 20,194 | 20,194 | 20,544 | 20,544 | 20,544 | ||||||
Subsidiary preferred stock dividends | (528) | (528) | (528) | (528) | (528) | (528) | ||||||
Equity contribution from parent | 230,000 | 230,000 | 230,000 | |||||||||
Dividends declared on common stock | (101,591) | (101,591) | (101,591) | (40,653) | (40,653) | (40,653) | ||||||
Valencia’s transactions with its owner | (18,056) | (18,056) | (18,056) | (18,056) | ||||||||
Ending 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 | 211,847 | 196,357 | 196,357 | 15,490 | 171,559 | 156,069 | 156,069 | 15,490 | ||||
Total other comprehensive income | 7,247 | 7,247 | 7,247 | 6,575 | 6,575 | 6,575 | ||||||
Subsidiary preferred stock dividends | (528) | (528) | (528) | (528) | (528) | (528) | ||||||
Equity contribution from parent | 53,000 | 53,000 | 53,000 | |||||||||
Dividends declared on common stock | (84,333) | (84,333) | (84,333) | (60,000) | (60,000) | (60,000) | ||||||
Valencia’s transactions with its owner | (19,094) | (19,094) | (19,094) | (19,094) | ||||||||
Ending 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 | 185,180 | 170,058 | 170,058 | 15,122 | 119,020 | 103,898 | 103,898 | 15,122 | ||||
Total other comprehensive income | 5,888 | 5,888 | 5,888 | (2,399) | (2,399) | (2,399) | ||||||
Subsidiary preferred stock dividends | (528) | (528) | (528) | (528) | (528) | (528) | ||||||
Dividends declared on common stock | (150,855) | (150,855) | (150,855) | (153,500) | (153,500) | (153,500) | ||||||
Valencia’s transactions with its owner | (17,533) | (17,533) | (17,533) | (17,533) | ||||||||
Ending Balance at Dec. 31, 2022 | $ 2,244,926 | $ 2,191,932 | $ 1,429,102 | $ (66,048) | $ 828,878 | $ 52,994 | $ 1,960,324 | $ 1,907,330 | $ 1,547,918 | $ (74,335) | $ 433,747 | $ 52,994 |
Consolidated Statements of Ea_3
Consolidated Statements of Earnings - TNMP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Electric Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Operating Expenses: | |||
Administrative and general | 227,149 | 230,292 | 216,334 |
Depreciation and amortization | 304,853 | 284,107 | 275,612 |
Transmission and distribution costs | 94,684 | 81,335 | 77,943 |
Taxes other than income taxes | 92,989 | 86,008 | 81,526 |
Total operating expenses | 1,855,795 | 1,471,720 | 1,237,731 |
Operating income | 393,760 | 308,153 | 285,281 |
Other Income and Deductions: | |||
Other income | 21,601 | 20,200 | 19,973 |
Other (deductions) | (13,881) | (18,559) | (18,732) |
Net other income and (deductions) | (54,542) | 33,153 | 37,063 |
Interest Charges | 127,908 | 96,877 | 114,392 |
Earnings before Income Taxes | 211,310 | 244,429 | 207,952 |
Income Taxes | 26,130 | 32,582 | 20,636 |
Texas-New Mexico Power Company | |||
Electric Operating Revenues | 482,730 | 417,853 | 383,178 |
Operating Expenses: | |||
Cost of energy and production costs | 123,928 | 113,067 | 102,074 |
Administrative and general | 49,592 | 47,820 | 44,811 |
Depreciation and amortization | 98,316 | 90,440 | 87,799 |
Transmission and distribution costs | 36,406 | 31,489 | 28,409 |
Taxes other than income taxes | 38,521 | 34,919 | 31,632 |
Total operating expenses | 346,763 | 317,735 | 294,725 |
Operating income | 135,967 | 100,118 | 88,453 |
Other Income and Deductions: | |||
Other income | 10,641 | 7,176 | 8,546 |
Other (deductions) | (1,988) | (1,768) | (1,718) |
Net other income and (deductions) | 8,653 | 5,408 | 6,828 |
Interest Charges | 37,192 | 33,735 | 30,388 |
Earnings before Income Taxes | 107,428 | 71,791 | 64,893 |
Income Taxes | 15,161 | 7,912 | 6,308 |
Net earnings | $ 92,267 | $ 63,879 | $ 58,585 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - TNMP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | $ 341,123 | $ 320,210 | $ 314,668 |
Deferred income tax expense | 24,533 | 30,747 | 20,405 |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (73,099) | (25,924) | (42,035) |
Materials, supplies, and fuel stock | (8,528) | 1,356 | 11,512 |
Other current assets | 17,159 | 1,838 | (8,135) |
Other assets | 5,002 | 31,135 | 29,923 |
Accounts payable | 47,568 | 10,640 | 7,403 |
Accrued interest and taxes | 9,205 | 2,692 | (9,347) |
Other current liabilities | (28,516) | 6,894 | 23,740 |
Other liabilities | (27,935) | (29,592) | (29,633) |
Net cash flows from operating activities | 567,284 | 547,873 | 485,700 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (912,557) | (935,016) | (679,028) |
Net cash flows used in investing activities | (950,347) | (952,258) | (733,799) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 169,300 | 30,700 | (153,100) |
Long-term borrowings | 558,000 | 1,816,345 | 1,267,845 |
Transmission interconnection and security deposit arrangements | 96,550 | 80,558 | 11,452 |
Refunds paid under transmission interconnection arrangements | (107,397) | (10,195) | (5,905) |
Dividends paid | (119,839) | (112,972) | (98,502) |
Debt issuance costs and other, net | (5,564) | (6,306) | (4,943) |
Net cash flows from financing activities | 386,037 | 357,561 | 292,194 |
Change in Cash and Cash Equivalents | 2,974 | (46,824) | 44,095 |
Cash and Cash Equivalents at Beginning of Year | 1,104 | 47,928 | 3,833 |
Cash and Cash Equivalents at End of Year | 4,078 | 1,104 | 47,928 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 118,485 | 91,276 | 106,575 |
Income taxes paid (refunded), net | (1,011) | 1,042 | 969 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | 4,455 | 7,362 | (58,796) |
Texas-New Mexico Power Company | |||
Cash Flows From Operating Activities: | |||
Net earnings | 92,267 | 63,879 | 58,585 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 99,165 | 91,331 | 89,010 |
Deferred income tax expense | (4,556) | (253) | (7,773) |
Allowance for equity funds used during construction and other, net | (4,477) | (3,291) | (4,305) |
Changes in certain assets and liabilities: | |||
Accounts receivable and unbilled revenues | (12,356) | (1,167) | (695) |
Materials, supplies, and fuel stock | (3,723) | (1,175) | (241) |
Other current assets | (264) | (6,132) | (1,291) |
Other assets | 3,834 | 6,989 | 8,553 |
Accounts payable | 195 | 338 | 1,607 |
Accrued interest and taxes | 14,667 | (1,533) | (530) |
Other current liabilities | 11,952 | 620 | 2,518 |
Other liabilities | (1,757) | 5,545 | 2,135 |
Net cash flows from operating activities | 194,947 | 155,151 | 147,573 |
Cash Flows From Investing Activities: | |||
Additions to utility and non-utility plant | (449,534) | (311,909) | (321,505) |
Net cash flows used in investing activities | (449,534) | (311,909) | (321,505) |
Cash Flows From Financing Activities: | |||
Revolving credit facilities borrowings (repayments), net | 36,300 | 400 | (15,000) |
Long-term borrowings | 160,000 | 65,000 | 185,000 |
Transmission interconnection and security deposit arrangements | 6,400 | 32,700 | 7,402 |
Refunds paid under transmission interconnection arrangements | (14,150) | (7,302) | 0 |
Equity contribution from parent | 68,000 | 52,000 | 71,000 |
Dividends paid | 0 | 0 | (58,534) |
Debt issuance costs and other, net | (1,963) | (840) | (2,136) |
Net cash flows from financing activities | 254,587 | 141,958 | 187,732 |
Change in Cash and Cash Equivalents | 0 | (14,800) | 13,800 |
Cash and Cash Equivalents at Beginning of Year | 0 | 14,800 | 1,000 |
Cash and Cash Equivalents at End of Year | 0 | 0 | 14,800 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 33,974 | 31,599 | 28,114 |
Income taxes paid (refunded), net | 9,245 | 13,735 | 16,790 |
Supplemental schedule of noncash investing and financing activities: | |||
(Increase) decrease in accrued plant additions | $ 9,131 | $ (9,131) | $ (11,415) |
Consolidated Balance Sheets - T
Consolidated Balance Sheets - TNMP - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 4,078 | $ 1,104 |
Accounts receivable | 183,669 | 123,292 |
Unbilled revenues | 63,473 | 57,736 |
Other receivables | 20,320 | 18,784 |
Materials, supplies, and fuel stock | 66,733 | 65,061 |
Regulatory assets | 20,265 | 14,785 |
Other current assets | 31,624 | 1,635 |
Total current assets | 410,978 | 324,600 |
Other Property and Investments: | ||
Other investments | 177 | 265 |
Non-utility property, including financing leases | 26,841 | 25,439 |
Total other property and investments | 535,114 | 577,988 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 9,164,564 | 9,357,849 |
Less accumulated depreciation and amortization | 2,659,952 | 2,952,743 |
Net plant in service and plant held for future use | 6,504,612 | 6,405,106 |
Construction work in progress | 372,988 | 248,856 |
Net utility plant | 6,972,823 | 6,752,899 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 846,686 | 514,258 |
Goodwill | 278,297 | 278,297 |
Operating lease assets, net of amortization | 55,982 | 79,511 |
Other deferred charges | 157,497 | 139,332 |
Total deferred charges and other assets | 1,338,462 | 1,011,398 |
Total assets | 9,257,377 | 8,666,885 |
Current Liabilities: | ||
Short-term debt | 232,000 | 62,700 |
Accounts payable | 215,708 | 172,595 |
Accrued interest and taxes | 76,783 | 70,105 |
Regulatory liabilities | 17,002 | 8,316 |
Operating lease liabilities | 18,781 | 27,218 |
Other current liabilities | 87,037 | 99,149 |
Total current liabilities | 890,370 | 664,213 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,892,594 | 3,519,580 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 822,831 | 764,850 |
Regulatory liabilities | 755,202 | 841,393 |
Asset retirement obligations | 223,377 | 234,146 |
Accrued pension liability and postretirement benefit cost | 32,799 | 19,057 |
Operating lease liabilities | 41,336 | 55,993 |
Other deferred credits | 342,413 | 333,195 |
Total deferred credits and other liabilities | 2,217,958 | 2,248,634 |
Total liabilities | 7,000,922 | 6,432,427 |
Commitments and Contingencies (See Note 16) | ||
Company common stockholders’ equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,429,102 | 1,429,257 |
Retained earnings | 828,878 | 810,203 |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 |
Total liabilities and stockholders' equity | 9,257,377 | 8,666,885 |
Texas-New Mexico Power Company | ||
Current Assets: | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable | 32,283 | 25,141 |
Unbilled revenues | 18,191 | 12,977 |
Other receivables | 8,552 | 4,108 |
Materials, supplies, and fuel stock | 10,843 | 7,119 |
Regulatory assets | 1,932 | 6,064 |
Other current assets | 2,346 | 1,989 |
Total current assets | 74,147 | 57,398 |
Other Property and Investments: | ||
Other investments | 101 | 136 |
Non-utility property, including financing leases | 14,010 | 13,499 |
Total other property and investments | 14,111 | 13,635 |
Utility Plant: | ||
Plant in service, held for future use, and to be abandoned | 2,853,130 | 2,475,859 |
Less accumulated depreciation and amortization | 578,157 | 563,004 |
Net plant in service and plant held for future use | 2,274,973 | 1,912,855 |
Construction work in progress | 63,820 | 53,401 |
Net utility plant | 2,338,793 | 1,966,256 |
Deferred Charges and Other Assets: | ||
Regulatory assets | 82,745 | 85,277 |
Goodwill | 226,665 | 226,665 |
Operating lease assets, net of amortization | 3,426 | 5,264 |
Other deferred charges | 6,714 | 10,277 |
Total deferred charges and other assets | 319,550 | 327,483 |
Total assets | 2,746,601 | 2,364,772 |
Current Liabilities: | ||
Short-term debt | 36,700 | 400 |
Accounts payable | 34,152 | 43,089 |
Affiliate payables | 6,273 | 6,568 |
Accrued interest and taxes | 54,672 | 40,005 |
Regulatory liabilities | 9,089 | 0 |
Operating lease liabilities | 1,543 | 1,882 |
Other current liabilities | 6,336 | 4,968 |
Total current liabilities | 148,765 | 96,912 |
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,076,875 | 918,050 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 164,637 | 157,248 |
Regulatory liabilities | 198,213 | 187,563 |
Asset retirement obligations | 828 | 763 |
Accrued pension liability and postretirement benefit cost | 792 | 339 |
Operating lease liabilities | 1,703 | 3,155 |
Other deferred credits | 52,964 | 59,185 |
Total deferred credits and other liabilities | 419,137 | 408,253 |
Total liabilities | 1,644,777 | 1,423,215 |
Commitments and Contingencies (See Note 16) | ||
Company common stockholders’ equity: | ||
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 64 | 64 |
Paid-in-capital | 805,166 | 737,166 |
Retained earnings | 296,594 | 204,327 |
Total PNMR common stockholders’ equity | 1,101,824 | 941,557 |
Total liabilities and stockholders' equity | $ 2,746,601 | $ 2,364,772 |
Consolidated Balance Sheets -_5
Consolidated Balance Sheets - TNMP (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Company common stockholders’ equity: | ||
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares outstanding (in shares) | 85,834,874 | 85,834,874 |
Texas-New Mexico Power Company | ||
Company common stockholders’ equity: | ||
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 |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Common Stockholder's Equity - TNMP - USD ($) $ in Thousands | Total | Retained Earnings | 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 at Dec. 31, 2019 | $ 754,627 | $ 64 | $ 614,166 | $ 140,397 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 58,585 | 58,585 | ||||
Equity contribution from parent | 71,000 | 71,000 | ||||
Dividends declared on common stock | $ (101,591) | $ (101,591) | (58,534) | (58,534) | ||
Ending Balance at Dec. 31, 2020 | 825,678 | 64 | 685,166 | 140,448 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 63,879 | 63,879 | ||||
Equity contribution from parent | 52,000 | 52,000 | ||||
Dividends declared on common stock | (84,333) | (84,333) | ||||
Ending Balance at Dec. 31, 2021 | 2,167,524 | 941,557 | 64 | 737,166 | 204,327 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 92,267 | 92,267 | ||||
Equity contribution from parent | 68,000 | 68,000 | ||||
Dividends declared on common stock | (150,855) | $ (150,855) | ||||
Ending Balance at Dec. 31, 2022 | $ 2,191,932 | $ 1,101,824 | $ 64 | $ 805,166 | $ 296,594 |
Summary of the Business and Sig
Summary of the Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of the Business and Significant Accounting Policies | Summary of the Business and Significant Accounting Policies Nature of Business PNMR is an investor-owned holding company with two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s primary subsidiaries are PNM and TNMP. PNM is a public utility with regulated operations primarily engaged in the generation, transmission, and distribution of electricity. TNMP is a wholly-owned subsidiary of TNP, which is a holding company that is wholly-owned by PNMR. TNMP provides regulated transmission and distribution services in Texas. PNMR’s common stock trades on the New York Stock Exchange under the symbol PNM. On October 20, 2020, PNMR, Avangrid, and Merger Sub, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Merger Sub will merge with and into PNMR (the “Merger”), with PNMR surviving the Merger as a wholly-owned subsidiary of Avangrid. See Note 22. Financial Statement Preparation and Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. The Notes to Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. This report uses the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP are so indicated. Certain amounts in the 2021 and 2020 Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2022 financial statement presentation. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events accordingly. Principles of Consolidation The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia (Note 10). PNM owns undivided interests in 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 intercompany loans, interest and income tax sharing payments, as well as equity transactions, and interconnection billings. All intercompany transactions and balances have been eliminated. See Note 20. Accounting for the Effects of Certain Types of Regulation The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. GAAP also provides for the recognition of revenue and regulatory assets and liabilities associated with “alternative revenue programs” authorized by regulators. Such programs allow the utility to adjust future rates in response to past activities or completed events, if certain criteria are met. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. Information on regulatory assets and regulatory liabilities is contained in Note 13. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. Cash and Restricted Cash Cash deposits received and held for a period of time that are restricted to a specific purpose, under the terms of their effective agreements, are considered restricted cash. Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash and cash equivalents. At December 31, 2022 and 2021 there was no restricted cash for PNMR, PNM, and TNMP. Utility Plant Utility plant is stated at original cost and includes capitalized payroll-related costs such as taxes, pension, other fringe benefits, administrative costs, and AFUDC, where authorized by rate regulation, or capitalized interest. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains, losses, and costs to remove resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to accumulated depreciation. PNM and TNMP may receive reimbursements, referred to as CIAC, from customers to pay for all or part of certain construction projects to the extent the project does not benefit regulated customers in general. PNM and TNMP account for these reimbursements as offsets to utility plant additions based on the requirements of the NMPRC, FERC, and PUCT. Due to the PUCT’s regulatory treatment of CIAC reimbursements, TNMP also receives a financing component that is recognized as other income on the Consolidated Statements of Earnings. Under the NMPRC regulatory treatment, PNM typically does not receive a financing component. Depreciation and Amortization PNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC and FERC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation and amortization of non-utility property, including right-of-use assets for finance leases as discussed in Note 8, is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between operating expenses and construction projects based on the use of the equipment. Average straight-line rates used were as follows: Year ended December 31, 2022 2021 2020 PNM Electric plant 2.55 % 2.48 % 2.47 % Common, intangible, and general plant 7.83 % 7.91 % 7.65 % TNMP 3.72 % 3.88 % 3.95 % Allowance for Funds Used During Construction As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction or “debt AFUDC”) and a return on other funds (allowance for equity funds used during construction or “equity AFUDC”). The debt AFUDC is recorded in interest charges and the equity AFUDC is recorded in other income on the Consolidated Statements of Earnings. For the years ended December 31, 2022, 2021, and 2020, PNM recorded $3.7 million, $3.4 million, and $3.0 million of debt AFUDC at annual rates of 1.70%, 1.70%, and 2.40% and $9.3 million, $9.9 million, and $7.0 million of equity AFUDC at annual rates of 4.26%, 4.94%, and 3.42%. For the years ended December 31, 2022, 2021, and 2020, TNMP recorded $3.4 million, $1.6 million, and $2.1 million of debt AFUDC at rates of 2.25%, 1.80%, and 2.20% and $4.5 million, $3.3 million, and $4.3 million of equity AFUDC at rates of 2.99%, 3.67%, and 4.42%. Materials, Supplies, and Fuel Stock Materials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Average cost is equal to net realizable value under the ratemaking process. Inventories consisted of the following at December 31: PNMR PNM TNMP 2022 2021 2022 2021 2022 2021 (In thousands) Coal $ 985 $ 2,973 $ 985 $ 2,973 $ — $ — Materials and supplies 65,748 62,088 54,905 54,969 10,843 7,119 $ 66,733 $ 65,061 $ 55,890 $ 57,942 $ 10,843 $ 7,119 Investments PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS, a trust for PNM’s share of decommissioning costs at SJGS, and trusts for PNM’s share of final reclamation costs related to the coal mines that served SJGS and continue to serve Four Corners (Note 16). Investments (both equity and available-for-sale debt securities) are measured at fair value on a quarterly basis with changes in fair value for equity securities recognized in earnings for that period. Since third party investment managers have sole discretion over the purchase and sale of the securities (under general guidelines and targets provided by management), PNM records an impairment, as a realized loss, for any available-for-sale debt security that has a fair value which is less than cost at the end of each quarter. For the years ended December 31, 2022, 2021 and 2020, PNM recorded impairment losses on the available-for-sale debt securities of $25.8 million, $(0.7) million and $3.2 million. No gains or losses are deferred as regulatory assets or liabilities. See Notes 3 and 9. All investments are held in PNM’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. As discussed above, PNM immediately records an impairment loss for any available-for-sale debt security that has a fair value that is less than its carrying value. As a result, the Company has 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. Equity Method Investment PNMR accounts for its investment in NMRD using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR records as income its percentage share of earnings or loss of NMRD and carries its investment at cost, adjusted for its share of undistributed earnings or losses. See Note 21. Goodwill The Company does not amortize goodwill. Goodwill is evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill might be impaired. See Note 19. Asset Impairment Tangible long-lived assets and right-of-use assets associated with leases are evaluated in relation to the estimated future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. Revenue Recognition See Note 4 for a discussion of electric operating revenues. Accounts Receivable and Allowance for Credit Losses See Note 4 for a discussion of accounts receivable and the allowance for credit losses. Amortization of Debt Acquisition Costs Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or other deductions, except for amounts recoverable through NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. Unamortized premium, discount, and expense related to long-term debt are reflected as part of the related liability on the Consolidated Balance Sheets. Derivatives The Company records derivative instruments, including energy contracts, on the balance sheet as either an asset or liability measured at their fair value. Changes in the derivatives’ fair value are recognized in earnings unless specific hedge accounting criteria are met. PNM also records certain commodity derivative transactions recoverable through NMPRC regulation as regulatory assets or liabilities. See Note 9. The Company treats all forward commodity purchases and sales contracts subject to unplanned netting or “book-out” by the transmission provider as derivative instruments subject to mark-to-market accounting. GAAP provides guidance on whether realized gains and losses on derivative contracts not held for trading purposes should be reported on a net or gross basis and concludes such classification is a matter of judgment that depends on the relevant facts and circumstances. See Note 4. Decommissioning and Reclamation Costs PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on periodic site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions, including estimates of future decommissioning costs at current price levels, inflation rates, and discount rates. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the PVNGS license periods. PNM records its share of the SJGS decommissioning obligation as an ARO on its Consolidated Balance Sheets. Studies on the decommissioning costs of SJGS are performed periodically and revisions to the ARO liability are recorded. See Note 16. In connection with both the SJGS and Four Corners coal supply agreements, the owners are required to reimburse the mining companies for the cost of contemporaneous reclamation, as well as the costs for final reclamation of the coal mines. The reclamation costs are based on periodic site-specific studies that estimate the costs to be incurred in the future and are dependent upon numerous assumptions, including estimates of future reclamation costs at current price levels, inflation rates, and discount rates. PNM considers the contemporaneous reclamation costs part of the cost of its delivered coal costs. See Note 16 for a discussion of reclamation costs. Environmental Costs The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. The Company records its environmental liabilities when site assessments or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. The Company reviews its sites and measures the liability by assessing a range of reasonably likely costs for each identified site using currently available information and the probable level of involvement and financial condition of other potentially responsible parties. These estimates are based on assumptions regarding the costs for site investigations, remediation, operations and maintenance, monitoring, and site closure. The ultimate cost to clean up the Company’s identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process. Amounts recorded for environmental expense in the years ended December 31, 2022, 2021, and 2020, as well as the amounts of environmental liabilities at December 31, 2022 and 2021, were insignificant. Pension and Other Postretirement Benefits See Note 11 for a discussion of pension and postretirement benefits expense, including a discussion of the actuarial assumptions. Stock-Based Compensation See Note 12 for a discussion of stock-based compensation expense. Income Taxes Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. All deferred taxes are reflected as non-current on the Consolidated Balance Sheets. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. Rate-regulated enterprises are required to record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded based on the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory assets and liabilities offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits and amortizes them over the estimated useful lives of the assets. See Note 18 for additional information, including a discussion of the impacts of the Tax Act. The Company makes an estimate of its anticipated effective tax rate for the year as of the end of each quarterly period within its fiscal year. In interim periods, income tax expense is calculated by applying the anticipated annual effective tax rate to year-to-date earnings before taxes. Certain unusual or infrequently occurring items, as well as adjustments due to enactment of new tax laws, have been excluded from the estimated annual effective tax rate calculation. Lease Commitments See Note 8 for a discussion of lease commitments. New Accounting Pronouncements Information concerning a recently issued accounting pronouncement that has not yet been adopted by the Company is presented below. The Company does not expect difficulty in adopting this standard by its required effective date. Accounting Standards Update 2022-03 - Fair Value Measurement (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03 clarifying that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and, therefore, is not considered in measuring fair value. The amendment also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Disclosure requirements from the amendment include disclosure of the fair value of equity securities subject to contractual sale restrictions that are reflected in the balance sheet; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). ASU 2022-03 is effective for the Company beginning January 1, 2024 with early adoption for both interim and annual periods being permitted. ASU 2022-03 is to be applied prospectively with any adjustments recognized in earnings and disclosed on the date of adoption. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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 through 2022. 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. PNMR SEGMENT INFORMATION The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. 2022 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,766,825 $ 482,730 $ — $ 2,249,555 Cost of energy 864,013 123,928 — 987,941 Utility margin 902,812 358,802 — 1,261,614 Other operating expenses 460,513 124,519 (22,031) 563,001 Depreciation and amortization 180,812 98,316 25,725 304,853 Operating income (loss) 261,487 135,967 (3,694) 393,760 Interest income 14,816 — 1,279 16,095 Other income (deductions) (77,012) 8,653 (2,278) (70,637) Interest charges (61,073) (37,192) (29,643) (127,908) Segment earnings (loss) before income taxes 138,218 107,428 (34,336) 211,310 Income taxes (benefit) 19,198 15,161 (8,229) 26,130 Segment earnings (loss) 119,020 92,267 (26,107) 185,180 Valencia non-controlling interest (15,122) — — (15,122) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 103,370 $ 92,267 $ (26,107) $ 169,530 At December 31, 2022: Total Assets $ 6,272,166 $ 2,746,601 $ 238,610 $ 9,257,377 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2021 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,362,020 $ 417,853 $ — $ 1,779,873 Cost of energy 531,786 113,067 — 644,853 Utility margin 830,234 304,786 — 1,135,020 Other operating expenses 438,372 114,228 (9,840) 542,760 Depreciation and amortization 170,365 90,440 23,302 284,107 Operating income (loss) 221,497 100,118 (13,462) 308,153 Interest income 14,605 — 57 14,662 Other income (deductions) 13,809 5,408 (726) 18,491 Interest charges (51,360) (33,735) (11,782) (96,877) Segment earnings (loss) before income taxes 198,551 71,791 (25,913) 244,429 Income taxes (benefit) 26,992 7,912 (2,322) 32,582 Segment earnings (loss) 171,559 63,879 (23,591) 211,847 Valencia non-controlling interest (15,490) — — (15,490) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 155,541 $ 63,879 $ (23,591) $ 195,829 At December 31, 2021: Total Assets $ 6,060,133 $ 2,364,772 $ 241,980 $ 8,666,885 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2020 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,139,834 $ 383,178 $ — $ 1,523,012 Cost of energy 345,167 102,074 — 447,241 Utility margin 794,667 281,104 — 1,075,771 Other operating expenses 414,445 104,852 (4,419) 514,878 Depreciation and amortization 165,325 87,799 22,488 275,612 Operating income (loss) 214,897 88,453 (18,069) 285,281 Interest income (loss) 14,469 — (246) 14,223 Other income (deductions) 17,120 6,828 (1,108) 22,840 Interest charges (64,615) (30,388) (19,389) (114,392) Segment earnings (loss) before income taxes 181,871 64,893 (38,812) 207,952 Income taxes (benefit) 21,857 6,308 (7,529) 20,636 Segment earnings (loss) 160,014 58,585 (31,283) 187,316 Valencia non-controlling interest (14,013) — — (14,013) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 145,473 $ 58,585 $ (31,283) $ 172,775 At December 31, 2020: Total Assets $ 5,581,033 $ 2,132,580 $ 226,241 $ 7,939,854 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) 2022 Gross margin $ 516,375 $ 224,080 $ — $ 740,455 Energy production costs 147,347 — — 147,347 Transmission and distribution costs 58,278 36,406 — 94,684 Depreciation and amortization 180,812 98,316 — 279,128 1 Utility margin $ 902,812 $ 358,802 $ — $ 1,261,614 2021 Gross margin $ 466,092 $ 182,857 $ — $ 648,949 Energy production costs 143,931 — — 143,931 Transmission and distribution costs 49,846 31,489 — 81,335 Depreciation and amortization 170,365 90,440 — 260,805 1 Utility margin $ 830,234 $ 304,786 $ — $ 1,135,020 2020 Gross margin $ 441,831 $ 164,896 $ — $ 606,727 Energy production costs 137,977 — — 137,977 Transmission and distribution costs 49,534 28,409 — 77,943 Depreciation and amortization 165,325 87,799 — 253,124 1 Utility margin $ 794,667 $ 281,104 $ — $ 1,075,771 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. Major Customers PNM’s participation in EIM, operated by CAISO, accounted for approximately 24% and 11% of electric operating revenues during the years ended December 31, 2022 and 2021. These revenues are passed on to customers under PNM’s FPPAC with no impact to net earnings. No individual PNM customer accounted for more than 10% during the year ended December 31, 2020. Two REPs accounted for more than 10% of the electric operating revenues of TNMP during the year ended December 31, 2022 and three REPs during the years ended December 31, 2021 and 2020 as follows: Year Ended December 31, 2022 2021 2020 REP A 27 % 23 % 21 % REP B 20 % 19 % 18 % REP C N/A 10 % 11 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI reports a measure for accumulated changes in equity that result from transactions and other economic events other than transactions with shareholders. Information regarding AOCI is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Gains on Available-for-Sale Securities Pension Total Fair Value Adjustment for Cash Flow Hedges Total (In thousands) Balance at December 31, 2019 $ 10,638 $ (109,693) $ (99,055) $ (322) $ (99,377) Amounts reclassified from AOCI (pre-tax) (9,497) 8,300 (1,197) (1,740) (2,937) Income tax impact of amounts reclassified 2,412 (2,108) 304 442 746 Other OCI changes (pre-tax) 22,586 6,149 28,735 1,271 30,006 Income tax impact of other OCI changes (5,736) (1,562) (7,298) (323) (7,621) Net after-tax change 9,765 10,779 20,544 (350) 20,194 Balance at December 31, 2020 20,403 (98,914) (78,511) (672) (79,183) Amounts reclassified from AOCI (pre-tax) (9,765) 8,348 (1,417) (903) (2,320) Income tax impact of amounts reclassified 2,480 (2,120) 360 229 589 Other OCI changes (pre-tax) (1,881) 12,111 10,230 1,804 12,034 Income tax impact of other OCI changes 478 (3,076) (2,598) (458) (3,056) Net after-tax change (8,688) 15,263 6,575 672 7,247 Balance at December 31, 2021 11,715 (83,651) (71,936) — (71,936) Amounts reclassified from AOCI (pre-tax) (3,827) 7,104 3,277 (1,176) 2,101 Income tax impact of amounts reclassified 972 (1,804) (832) 299 (533) Other OCI changes (pre-tax) (1,928) (4,565) (6,493) 12,285 5,792 Income tax impact of other OCI changes 490 1,159 1,649 (3,121) (1,472) Net after-tax change (4,293) 1,894 (2,399) 8,287 5,888 Balance at December 31, 2022 $ 7,422 $ (81,757) $ (74,335) $ 8,287 $ (66,048) The 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 Consolidated Statements of Earnings. |
Electric Operating Revenues
Electric Operating Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Electric Operating Revenues | Electric Operating Revenues 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. As a result of the economic conditions resulting from the COVID-19 pandemic, PNM updated its allowance for accounts receivable balances and recorded incremental reductions to credit losses of $(2.3) million and $(1.1) million in the years ended December 31, 2022 and 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 17. 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 years ended December 31, 2022 and 2021, PNM recorded zero and $1.0 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. 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 has deferred bad debt expense (credit losses) from defaulting REPs to a regulatory asset totaling $0.8 million at December 31, 2022 and will seek recovery in a general rate case. Revenue Recognition Retail electric operating revenues are recorded in the period of energy delivery, which includes estimated amounts for service rendered but unbilled at the end of each accounting period. The determination of the energy sales billed to individual retail customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading and the corresponding unbilled revenue are estimated. Unbilled electric revenue is estimated based on daily generation volumes, estimated customer usage by class, line losses, historical trends and experience, applicable customer rates or by using AMS data where available. Amounts billed are generally due within the next month. The Company does not incur incremental costs to obtain contracts for its energy services. PNM’s wholesale electricity sales are recorded as electric operating revenues and wholesale electricity purchases are recorded as costs of energy sold. Derivative contracts that are subject to unplanned netting are recorded net in earnings. A “book-out” is the planned or unplanned netting of off-setting purchase and sale transactions. A book-out is a transmission mechanism to reduce congestion on the transmission system or administrative burden. For accounting purposes, a book-out is the recording of net revenues upon the settlement of a derivative contract. Unrealized gains and losses on derivative contracts that are not designated for hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power and fuel supply agreements, used to hedge generation assets and purchased power costs. Changes in the fair value of economic hedges are reflected in results of operations, with changes related to economic hedges on sales included in operating revenues and changes related to economic hedges on purchases included in cost of energy sold. See Note 9. The Company has collaborative arrangements related to its interest in SJGS, Four Corners, PVNGS, and Luna. The Company has determined that during the years ended December 31, 2022, 2021, and 2020 none of the joint owners in its collaborative arrangements were customers under Topic 606. The Company will continue to evaluate transactions between collaborative arrangement participants in future periods under the revenue recognition standard. PNM and TNMP recognize revenue as they satisfy performance obligations, which typically occurs as the customer or end-user consumes the electric service provided. Electric services are typically for a bundle of services that are distinct and transferred to the end-user in one performance obligation measured by KWh or KW. Electric operating revenues are recorded in the period of energy delivery, including estimated unbilled amounts. The Company has elected to exclude all sales and similar taxes from revenue. Revenue from contracts with customers is recorded based upon the total authorized tariff or market price at the time electric service is rendered, including amounts billed under arrangements qualifying as an Alternative Revenue Program (“ARP”). ARP arrangements are agreements between PNM or TNMP and its regulator that allow PNM or TNMP to adjust future rates in response to past activities or completed events, if certain criteria are met. ARP revenues are required to be reported separately from contracts with customers. ARP revenues in a given period include the recognition of “originating” ARP revenues (i.e. when the regulator-specific conditions are met) in the period, offset by the reversal of ARP revenues when billed to customers. Sources of Revenue Additional information about the nature of revenues is provided below. Additional information about matters affecting PNM’s and TNMP’s regulated revenues is provided in Note 17. Revenue from Contracts with Customers PNM NMPRC Regulated Retail Electric Service – PNM provides electric generation, transmission, and distribution service to its rate-regulated customers in New Mexico. PNM’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Customer rates for retail electric service are set by the NMPRC and revenue is recognized as energy is delivered to the customer. PNM invoices customers on a monthly basis for electric service and generally collects billed amounts within one month. Transmission Service to Third Parties – PNM owns transmission lines that are interconnected with other utilities in New Mexico, Texas, Arizona, Colorado, and Utah. Transmission customers receive service for the transmission of energy owned by the customer utilizing PNM’s transmission facilities. Customers generally receive transmission services, which are regulated by FERC, from PNM through PNM’s Open Access Transmission Tariff (“OATT”) or a specific contract. Customers are billed based on capacity and energy components on a monthly basis. In December 2021, PNM completed the purchase of the Western Spirit Line and services under related transmission agreements were initiated using an incremental rate, approved by FERC, that are separate from the formula rate mechanism. Wholesale Energy Sales – PNM engages in activities to optimize its existing jurisdictional assets and long-term power agreements through spot market, hour-ahead, day-ahead, week-ahead, month-ahead, and other sales of excess generation not required to fulfill retail load and contractual commitments. PNM began participating in the EIM in 2021. The EIM is a real-time wholesale energy trading market operated by the CAISO that enables participating electric utilities to buy and sell energy. The NMPRC granted PNM authority to seek recovery of costs associated with joining the EIM, which have been included in the 2024 Rate Change and to pass the benefits of participating in EIM to customers through the FPPAC. PNM’s participation in EIM has significantly increased Electric operating revenues which are passed on to customers under PNM’s FPPAC with no impact to net earnings. Beginning on January 1, 2018, PNM acquired a 65 MW interest in SJGS Unit 4, which was held as merchant plant as ordered by the NMPRC. PNM sold power from 36 MW of this capacity to a third party at a fixed price that was recorded as revenue from contracts with customers. PNM was obligated to deliver power under this arrangement 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. TNMP PUCT Regulated Retail Electric Service – TNMP provides transmission and distribution services in Texas under the provisions of TECA and the Texas Public Utility Regulatory Act. TNMP is subject to traditional cost-of-service regulation with respect to rates and service under the jurisdiction of the PUCT and certain municipalities. TNMP’s transmission and distribution activities are solely within ERCOT and not subject to traditional rate regulation by FERC. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service territory. Revenue is recognized as energy is delivered to the consumer. TNMP invoices REPs on a monthly basis and is generally paid within a month. TCOS – TNMP is a transmission service provider that is allowed to recover its TCOS through a network transmission rate that is approved by the PUCT. TCOS customers are other utilities that receive service for the transmission of energy owned by the customer utilizing TNMP’s transmission facilities. Alternative Revenue Programs The Company defers certain costs and records certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. ARP revenues, which are discussed above, include recovery or refund provisions under PNM’s renewable energy rider and true-ups to PNM’s formula transmission rates; TNMP’s AMS surcharge, transmission cost recovery factor, and the impacts of the PUCT’s January 25, 2018 order regarding the change in the federal corporate income tax rate; and the energy efficiency incentive bonus at both PNM and TNMP. Regulatory assets and liabilities are recognized for the difference between ARP revenues and amounts billed under those programs. Regulatory assets and liabilities are amortized into earnings as amounts are billed. TNMP’s 2018 Rate Case integrated AMS costs into base rates beginning January 1, 2019. These costs are being amortized into earnings as alternative revenues over a period of five years. Other Electric Operating Revenues Other electric operating revenues consist primarily of PNM’s economic hedges that meet the definition of a derivative, and are therefore not considered revenue from contracts with customers. Derivative revenues include gains and losses representing changes in fair value (Note 9) and settlements from sales of electricity under forward sales contracts. Disaggregation of Revenues A disaggregation of revenues from contracts with customers by the type of customer is presented in the table below. The table also reflects ARP revenues and other revenues. PNM TNMP PNMR Consolidated Year Ended December 31, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 484,699 $ 187,951 $ 672,650 Commercial 422,163 154,059 576,222 Industrial 85,102 36,919 122,021 Public authority 21,330 6,379 27,709 Economy energy service 45,009 — 45,009 Transmission 149,421 113,782 263,203 Wholesale energy sales 534,196 — 534,196 Miscellaneous 5,390 3,817 9,207 Total revenues from contracts with customers 1,747,310 502,907 2,250,217 Alternative revenue programs 692 (20,177) (19,485) Other electric operating revenues 18,823 — 18,823 Total Electric Operating Revenues $ 1,766,825 $ 482,730 $ 2,249,555 Year Ended December 31, 2021 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 484,720 $ 158,796 $ 643,516 Commercial 419,251 125,536 544,787 Industrial 88,479 29,089 117,568 Public authority 22,720 6,142 28,862 Economy energy service 35,220 — 35,220 Transmission 87,880 94,152 182,032 Wholesale energy sales 184,132 — 184,132 Miscellaneous 4,770 3,794 8,564 Total revenues from contracts with customers 1,327,172 417,509 1,744,681 Alternative revenue programs (4,108) 344 (3,764) Other electric operating revenues 38,956 — 38,956 Total Electric Operating Revenues $ 1,362,020 $ 417,853 $ 1,779,873 PNM TNMP PNMR Consolidated Year Ended December 31, 2020 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 482,852 $ 158,066 $ 640,918 Commercial 392,257 118,243 510,500 Industrial 90,845 27,367 118,212 Public authority 23,126 5,853 28,979 Economy energy service 15,911 — 15,911 Transmission 59,856 78,374 138,230 Wholesale energy sales 50,277 — 50,277 Miscellaneous 5,456 3,738 9,194 Total revenues from contracts with customers 1,120,580 391,641 1,512,221 Alternative revenue programs (3,531) (8,463) (11,994) Other electric operating revenues 22,785 — 22,785 Total Electric Operating Revenues $ 1,139,834 $ 383,178 $ 1,523,012 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 Consolidated Balance Sheets, net of allowance for credit losses, includes $151.4 million and $94.9 million at December 31, 2022 and 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 was $11.9 million at December 31, 2022 and $0.6 million at December 31, 2021, and is included in Other deferred charges on the Consolidated Balance Sheets. Contract liabilities arise when consideration is received in advance from a customer before satisfying the performance obligations. Therefore, revenue is deferred and not recognized until the obligation is satisfied. Under its OATT, PNM accepts upfront consideration for capacity reservations requested by transmission customers, which requires PNM to defer the customer’s transmission capacity rights for a specific period of time. PNM recognizes the revenue of these capacity reservations over the period it defers the customer’s capacity rights. Other utilities pay PNM and TNMP in advance for the joint-use of their utility poles. These revenues are recognized over the period of time specified in the joint-use contract, typically for one calendar year. Deferred revenues on these arrangements are recorded as contract liabilities. PNMR’s, PNM’s, and TNMP’s contract liabilities and related revenues are not material for any of the periods presented. The Company has no other arrangements with remaining performance obligations to which a portion of the transaction price would be required to be allocated. |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings and Dividends Per Share | Earnings and Dividends Per Share Dual presentation of basic and diluted earnings per share has been presented in the Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share and dividends per share is as follows: Year Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 169,530 $ 195,829 $ 172,775 Average Number of Common Shares: Outstanding during year 85,835 85,835 79,941 Vested awards of restricted stock 287 235 216 Average Shares – Basic 86,122 86,070 80,157 Dilutive Effect of Common Stock Equivalents: PNMR 2020 Forward Equity Sale Agreements — — 106 Stock options and restricted stock 47 41 40 Average Shares – Diluted 86,169 86,111 80,303 Net Earnings Attributable to PNMR Per Share of Common Stock: Basic $ 1.97 $ 2.28 $ 2.16 Diluted $ 1.97 $ 2.27 $ 2.15 Dividends Declared per Common Share $ 1.41 $ 1.33 $ 1.25 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock and Equity Contributions On December 15, 2020 PNMR physically settled all shares under the PNMR 2020 Forward Equity Sale Agreements by issuing 6.2 million shares to the forward purchasers at a price of $45.805 per share, aggregating net proceeds of $283.1 million. In addition, PNMR recorded a net $0.1 million for equity issuance costs reimbursed by the lead underwriter. Following this settlement, no shares of PNMR’s common stock remain subject to future settlement under the PNMR 2020 Forward Equity Sale Agreements. PNMR, PNM, and TNMP did not issue any common stock during the years ended December 31, 2022 and 2021. Neither PNM nor TNMP issued any common stock during the year ended December 31, 2020. PNMR funded zero, $53.0 million, and $230.0 million of cash equity contributions to PNM in 2022, 2021, and 2020, respectively. PNMR also funded $68.0 million, $52.0 million, and $71.0 million of cash equity contributions to TNMP in 2022, 2021, and 2020, respectively. PNMR offered shares of PNMR common stock through the PNMR Direct Plan. As required by the Merger Agreement, effective November 2, 2020, PNMR entered into the Second Amendment to the Third Amended and Restated PNM Resources, Inc. Direct Plan (the “PNMR Direct Plan”), which among other matters, terminated the right to purchase shares of PNMR common stock under the PNMR Direct Plan with respect to any cash dividends and optional cash investments not received by noon Eastern Time on November 17, 2020. No purchases of shares of PNMR common stock under the PNMR Direct Plan may occur after November 18, 2020. The shares of PNMR common stock utilized in the PNMR Direct Plan were offered under a SEC shelf registration statement that expired in March 2021. Dividends on Common Stock The declaration of common dividends by PNMR is dependent upon a number of factors, including the ability of PNMR’s subsidiaries to pay dividends. PNMR’s primary sources of dividends are its operating subsidiaries. PNM declared and paid cash dividends to PNMR of $153.5 million, $60.0 million, and $40.7 million in 2022, 2021, and 2020, respectively. TNMP declared and paid cash dividends to PNMR of zero, zero, and $58.5 million in 2022, 2021, and 2020, respectively. The NMPRC has placed certain restrictions on the ability of PNM to pay dividends to PNMR, including the restriction that PNM cannot pay dividends that cause its debt rating to fall below investment grade. The NMPRC provisions allow PNM to pay dividends, with at least 15 days prior notice, from current earnings, which is determined on a rolling four quarter basis, or from equity contributions previously made by PNMR. The Federal Power Act also imposes certain restrictions on dividends by public utilities. Debt-to-capitalization ratio requirements, as discussed in Note 7, remain at less than or equal to 65% for PNM and TNMP and less than or equal to 70% for PNMR. These debt-to-capitalization ratio requirements could limit the amounts of dividends that could be paid. PNM also has other financial covenants that limit the transfer of assets, through dividends or other means, including a requirement to obtain the approval of certain financial counterparties to transfer more than five percent of PNM’s assets. As of December 31, 2022, none of the numerical tests would restrict the payment of dividends from the retained earnings of PNM or TNMP, and the 70% debt-to-capitalization covenant would restrict the payment of dividends by PNMR to $255.8 million. In addition, the ability of PNMR to declare dividends is dependent upon the extent to which cash flows will support dividends, the availability of retained earnings, financial circumstances and performance, current and future regulatory decisions, Congressional and legislative acts, and economic conditions. Conditions imposed by the NMPRC or PUCT, future growth plans and related capital requirements, and business considerations may also affect PNMR’s ability to pay dividends. Under the terms of the Merger Agreement, PNMR has agreed not to declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its equity securities, or make any other actual, constructive or deemed distribution in respect of any equity securities (except (i) PNMR may continue the declaration and payment of planned regular quarterly cash dividends on PNMR common stock for each quarterly period ended after the date of the Merger Agreement, which for any fiscal quarter in 2023 shall not exceed $0.3675, with usual record and payment dates in accordance with past dividend practice, and (ii) for any cash dividend or cash distribution by a wholly-owned subsidiary of PNMR to PNMR or another wholly-owned subsidiary of PNMR). Preferred Stock PNM’s cumulative preferred shares outstanding bear dividends at 4.58% per annum. PNM preferred stock does not have a mandatory redemption requirement, but may be redeemed, at PNM’s option, at 102% of the stated value plus accrued dividends. The holders of the PNM preferred stock are entitled to payment before the holders of common stock in the event of any liquidation or dissolution or distribution of assets of PNM. In addition, PNM’s preferred stock is not entitled to a sinking fund and cannot be converted into any other class of stock of PNM. PNMR and TNMP have no preferred stock outstanding. The authorized shares of PNMR and TNMP preferred stock are 10 million shares and 1 million shares, respectively. |
Financing
Financing | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing | Financing The Company’s financing strategy includes both short-term and long-term borrowings. The Company utilizes short-term revolving credit facilities, as well as cash flows from operations, to provide funds for both construction and operating expenditures. Depending on market and other conditions, the Company will periodically sell long-term debt or enter into term loan arrangements and use the proceeds to reduce borrowings under the revolving credit facilities or refinance other debt. 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. Financing Activities PNMR At December 31, 2020, PNMR had $300.0 million aggregate principal amount of 3.25% SUNs outstanding (the “PNMR 2018 SUNs”), which were set to mature on March 9, 2021. As discussed below, on March 9, 2021, PNMR utilized $220.0 million of capacity under the PNMR 2020 Delayed-Draw Term Loan as well as $80.0 million in borrowings under the PNMR Revolving Credit Facility to repay the PNMR 2018 SUNs. At December 31, 2020, PNMR had $65.0 million outstanding under the PNMR Development Term Loan that was amended to reduce the balance from $90.0 million to $65.0 million. On May 18, 2021, the $65.0 million PNMR Development Term Loan was repaid using proceeds from the PNMR 2021 Delayed-Draw Term Loan discussed below. At December 31, 2020, PNMR had $150.0 million outstanding under the PNMR 2019 Term Loan. On May 18, 2021, the $150.0 million PNMR 2019 Term Loan was repaid using proceeds from the PNMR 2021 Delayed-Draw Term Loan discussed below. On December 21, 2020, PNMR entered into a $150.0 million term loan agreement (the “PNMR 2020 Term Loan”), between PNMR and U.S. Bank National Association, as sole lender. Proceeds from the PNMR 2020 Term Loan were used to repay the $50.0 million PNMR 2018 Two-Year Term Loan and for other corporate purposes. On May 18, 2021, the PNMR 2020 Term Loan was repaid with proceeds from the PNMR 2021 Delayed-Draw Term Loan discussed below. On December 22, 2020, PNMR entered into a $300.0 million delayed-draw term loan agreement (the “PNMR 2020 Delayed-Draw Term Loan”), among PNMR, the lenders party thereto, and MUFG Bank, Ltd., as administrative agent. Initially PNMR drew $80.0 million to refinance existing indebtedness and for other corporate purposes. PNMR used the remaining $220.0 million of capacity from the PNMR 2020 Delayed-Draw Term Loan to repay an equivalent amount of the PNMR 2018 SUNs. On May 18, 2021, the $300.0 million outstanding under the PNMR 2020 Delayed-Draw Term Loan was repaid with proceeds from the PNMR 2021 Delayed-Draw Term Loan discussed below. On May 18, 2021, PNMR entered into the PNMR 2021 Delayed-Draw Term Loan, among PNMR, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent. Initially PNMR drew $850.0 million to repay and terminate existing indebtedness, including the $150.0 million PNMR 2019 Term Loan, the $300.0 million PNMR 2020 Delayed-Draw Term Loan, the $150.0 million PNMR 2020 Term Loan, the $65.0 million PNMR Development Term Loan, and $40.0 million in borrowings under the PNMR Development Revolving Credit Facility. Additionally, PNMR repaid $92.1 million in borrowings under the PNMR Revolving Credit Facility. On December 2, 2021, PNMR drew an additional $50.0 million under the PNMR 2021 Delayed-Draw Term Loan. On January 24, 2022, PNMR drew the remaining $100.0 million available under the PNMR 2021 Delayed-Draw Term Loan. On May 20, 2022, PNMR amended and restated the PNMR 2021 Delayed-Draw Term Loan, extending its maturity to May 18, 2025. The PNMR 2021 Delayed-Draw Term Loan provides 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 5.37% at December 31, 2022. On November 10, 2022, PNMR entered into a distribution agreement with BofA Securities, Inc., MUFG Securities Americas Inc. and Wells Fargo Securities, LLC, as sales agents and Bank of America, N.A., MUFG Securities EMEA plc and Wells Fargo Bank, N.A., as forward purchasers, pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $200.0 million of its common stock, no par value, through the sales agents (the “PNMR 2022 ATM Program”). Sales of the shares made pursuant to the distribution agreement, if any, may be made in “at the market offerings” as defined in Rule 415 of the Securities Act. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of PNMR’s common stock, capital needs and determinations by the Company of the appropriate sources of funding for the Company. PNMR did not initially receive any proceeds upon the execution of this agreement. The Company also may enter into forward stock purchase transactions, in which forward purchasers may borrow from third parties and, through a sales agent, sell a number of shares equal to the number of shares of the Company’s common stock to hedge the agreement. Except in certain specified circumstances, PNMR has the option to elect physical, cash, or net share settlement of the forward stock purchase transactions. The Company will not receive any proceeds from the sale of borrowed shares of common stock by a forward seller. The Company expects to receive proceeds from the sale of shares directly or upon future physical settlement(s), in which case, the Company will expect to receive, subject to certain adjustments, aggregate net cash proceeds at settlement equal to the number of shares underlying the relevant forward agreement, multiplied by the relevant forward sale price. On March 2, 2022, PNMR filed a shelf registration that provides for the issuance of various types of debt and equity securities. The PNMR shelf registration statement expires in March 2025. PNM At December 31, 2020, PNM had a $40.0 million outstanding term loan agreement (the “PNM 2019 $40.0 million Term Loan”), between PNM and Bank of America, N.A. as sole lender and administrative agent. On June 18, 2021, the $40.0 million PNM 2019 Term Loan was repaid using proceeds from the PNM 2021 Term Loan discussed below. At December 31, 2020, PNM had outstanding PCRBs aggregating $100.3 million, that were issued in the weekly mode (the “PNM Floating Rate PCRBs”). The PNM Floating Rate PCRBs bore interest at rates that were reset weekly, giving investors the option to return the PCRBs for remarketing to new investors upon 7 days' notice. On October 1, 2021, PNM converted the PNM Floating Rate PCRBs to a fixed rate period and successfully remarketed them to new investors (the “PNM 2021 Fixed Rate PCRBs”). The PNM 2021 Fixed Rate PCRBs now bear interest at 0.875% and are subject to mandatory tender on October 1, 2026. At December 31, 2020, PNM had $146.0 million of outstanding PCRBs with a final maturity of April 1, 2033. These PCRBs were subject to mandatory tender on October 1, 2021, and were successfully remarketed to new investors on that date. The $146.0 million PCRBs bear interest at a fixed rate of 2.15% until their final maturity. At December 31, 2021, PNM had $80.0 million aggregate principal amount of its 2.59% senior unsecured notes outstanding, due July 15, 2033, and $80.0 million aggregate principal amount of its 3.14% senior unsecured notes outstanding, due July 15, 2041 (the “PNM 2021 SUNs”). The PNM 2021 SUNs were offered and issued to institutional investors in private placement transactions on July 14, 2021 under the PNM 2021 Note Purchase Agreement. 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 closing 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. At December 31, 2021, PNM had $50.0 million aggregate principal amount of its 2.29% senior unsecured notes outstanding, due December 30, 2031, and another $100.0 million aggregate principal amount of its 2.97% senior unsecured notes outstanding, due December 30, 2041 (the “PNM September 2021 SUNs”). The PNM September 2021 SUNs were offered and issued to institutional investors in private placement transactions on December 2, 2021 under the PNM September 2021 Note Purchase Agreement. Proceeds from the PNM September 2021 SUNs were used for funding of capital expenditures, including the purchase of the Western Spirit Line, repayment of existing indebtedness, and for general corporate purposes. The PNM September 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 September 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 September 2021 Note Purchase Agreement, are not triggered by the closing of the Merger. PNM has the right to redeem any or all of the PNM September 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 outstanding 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. On August 5, 2022, the PNM 2021 Term Loan was prepaid without penalty with proceeds from the PNM 2022 Delayed-Draw Term Loan discussed below. 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 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 5.09% at December 31, 2022 and must be repaid on or before February 5, 2024. PNM has a shelf registration statement, which will expire in May 2023, with capacity for the issuance of up to $650.0 million of senior unsecured notes. TNMP 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 closing 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 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. Merger Related Financing Activities On October 20, 2020, the execution of the Merger Agreement constituted a “Change of Control” under certain PNMR, TNMP and PNMR Development debt agreements. Under each of the specified debt agreements, a “Change of Control” constitutes an “Event of Default,” pursuant to which the lender parties thereto have the right to accelerate the indebtedness under the debt agreements. The definition of Change of Control under the PNM debt agreements and PNM note purchase agreements was not triggered by the execution of the Merger Agreement. On October 26, 2020, PNMR, TNMP and PNMR Development entered into amendment agreements with the lender parties thereto to amend the definition of “Change of Control” such that the entry into the Merger Agreement would not constitute a Change of Control and to waive the Event of Default arising from entry into the Merger Agreement. On September 15, 2021, PNMR and TNMP and the lender parties further amended the definition of “Change of Control” in the PNMR Revolving Credit Facility and the TNMP Revolving Credit Facility such that the closing of the Merger does not constitute a Change of Control under those facilities. The Change of Control provisions in the PNM debt agreements, PNM note purchase agreements, TNMP 2021 Bond Purchase Agreement, and TNMP 2022 Bond Purchase Agreement are not triggered by the closing of the Merger and did not require amendment. The documents governing TNMP's aggregate $750.0 million of outstanding 2014 to 2020 First Mortgage Bonds (“TNMP FMBs”) obligated TNMP to offer, within 30 business days following the signing of the Merger Agreement, to prepay those $750.0 million outstanding TNMP FMBs at 100% of the principal amount, plus accrued and unpaid interest thereon, but without any make-whole amount or other premium. TNMP made such offer to prepay the TNMP FMBs in accordance with the terms of the TNMP FMBs, and none of the holders of the TNMP FMBs accepted TNMP’s offer. The documents governing the 2014 to 2020 TNMP FMBs require TNMP to make another offer, within 30 business days of closing of the Merger, to prepay those $750.0 million outstanding TNMP FMBs at par. TNMP will make such offer to prepay the $750.0 million outstanding 2014 to 2020 TNMP FMBs in accordance with the terms of the TNMP FMBs; however, holders of the TNMP FMBs are not required to tender their TNMP FMBs and may accept or reject such offer to prepay. The TNMP FMBs are not registered under the Securities Act and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements and applicable state laws. The information in this Annual Report on Form 10-K is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Similar to the offer to prepay made after signing the Merger Agreement, the post-Merger closing offer to prepay the TNMP FMBs will be made only pursuant to an offer to prepay, which will set forth the terms and conditions of the offer to prepay. Interest Rate Hedging Activities In 2017, PNMR entered into three separate four-year hedging agreements that effectively established fixed interest rates of 1.926%, 1.823%, and 1.629%, plus customary spreads over LIBOR, subject to change if there is a change in PNMR’s credit rating, for three separate tranches, each of $50.0 million, of its variable rate debt. These fixed interest rate hedging agreements expired according to their terms in 2021. 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%. 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%. On September 30, 2022, PNMR entered into two separate 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%. On October 31, 2022, PNMR 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%. All of the hedging agreements discussed above establish the fixed rate indicated, 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 and had fair values of $11.1 million that were included in Other current assets on the Consolidated Balance Sheet at December 31, 2022. As discussed in Note 3, changes in the fair value of the cash flow hedges were deferred in AOCI and amounts reclassified to the Consolidated Statement of Earnings were recorded in interest charges. 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. Borrowing Arrangements Between PNMR and its Subsidiaries PNMR has intercompany loan agreements with its subsidiaries. Individual subsidiary loan agreements vary in amount up to $150.0 million and have either reciprocal or non-reciprocal terms. Interest charged to the subsidiaries is equivalent to interest paid by PNMR on its short-term borrowings or the money-market interest rate if PNMR does not have any short-term borrowings outstanding. All balances outstanding under intercompany loan agreements are eliminated upon consolidation. See Note 1. PNM and TNMP had no borrowings from PNMR at December 31, 2022 and 2021. PNMR Development had no short-term borrowings outstanding from PNMR at December 31, 2022 and 2021. PNMR had $5.3 million and $6.4 million in short-term borrowings outstanding from PNMR Development at December 31, 2022 and 2021. 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. On January 26, 2023, PNMR and PNM exercised one of the one-year extension options extending their maturities through October 2025; provided that, effective November 1, 2024, the amount of the PNMR Revolving Credit Facility will adjust to $285.0 million and the PNM Revolving Credit Facility will adjust to $380.0 million because one lender in each facility failed to agree to the one-year extension through October 2025. Also on May 20, 2022, the $40.0 million PNM New Mexico Credit Facility was extended to May 20, 2026. At December 31, 2021, 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 23, 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. On January 26, 2023, TNMP exercised one of the one-year extension options on its credit facility, which extended the maturity to September 23, 2025. 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: December 31, Short-term Debt 2022 2021 (In thousands) PNM: PNM Revolving Credit Facility $ 145,900 $ 7,400 PNM New Mexico Credit Facility 40,000 — 185,900 7,400 TNMP Revolving Credit Facility 36,700 400 PNMR: PNMR Revolving Credit Facility 9,400 54,900 $ 232,000 $ 62,700 In addition to the above borrowings, PNMR, PNM, and TNMP had letters of credit outstanding of $3.4 million, zero, and zero at December 31, 2022, that reduce the available capacity under their respective revolving credit facilities. In addition, PNMR had $30.3 million of letters of credit outstanding under the WFB LOC Facility. At December 31, 2022, interest rates on outstanding borrowings were 5.90% for the PNMR Revolving Credit Facility, 5.67% for the PNM Revolving Credit Facility, 5.68% for the PNM New Mexico Credit Facility, and 5.29% for the TNMP Revolving Credit Facility. Long-Term Debt Information concerning long-term debt outstanding and unamortized (premiums), discounts, and debt issuance costs is as follows: December 31, 2022 December 31, 2021 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) PNM Debt Senior Unsecured Notes, Pollution Control Revenue Bonds: 2.15% due April 2033 $ 146,000 $ 915 $ 146,000 $ 1,003 2.125% due June 2040, mandatory tender - June 1, 2022 — — 37,000 45 3.00% due June 2040, mandatory tender - June 1, 2024 37,000 296 — — 2.45% due September 2042, mandatory tender - June 1, 2022 — — 20,000 17 0.875% due October 2026 100,345 550 100,345 697 1.05% due January 2038, mandatory tender - June 1, 2022 — — 36,000 75 3.00% due January 2038, mandatory tender - June 1, 2024 36,000 288 — — 1.20% due June 2040, mandatory tender - June 1, 2022 — — 11,500 24 1.10% due June 2040, mandatory tender June 1, 2023 130,000 178 130,000 535 1.15% due June 2040, mandatory tender - June 1, 2024 125,000 383 125,000 639 Senior Unsecured Notes: 3.15% due May 2023 55,000 29 55,000 106 3.45% due May 2025 104,000 248 104,000 353 3.85% due August 2025 250,000 775 250,000 1,075 3.68% due May 2028 88,000 333 88,000 395 3.78% due August 2028 15,000 59 15,000 69 3.93% due May 2033 38,000 185 38,000 203 4.22% due May 2038 45,000 243 45,000 259 4.50% due May 2048 20,000 119 20,000 124 4.60% due August 2048 85,000 510 85,000 530 3.21% due April 2030 150,000 1,171 150,000 1,331 3.57% due April 2039 50,000 454 50,000 482 2.59% due July 2033 80,000 405 80,000 443 3.14% due July 2041 80,000 427 80,000 450 2.29% due December 2031 50,000 264 50,000 293 2.97% due December 2041 100,000 557 100,000 587 PNM 2021 $75.0 Million Term Loan due December 2022 — — 75,000 — PNM 2022 225.0 Million Term Loan due February 2024 225,000 56 — — 2,009,345 8,445 1,890,845 9,735 Less current maturities 185,000 207 179,500 161 1,824,345 8,238 1,711,345 9,574 December 31, 2022 December 31, 2021 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) TNMP Debt First Mortgage Bonds: 6.95% due April 2043 93,198 (14,488) 93,198 (15,202) 4.03% due July 2024 80,000 158 80,000 264 3.53% due February 2026 60,000 256 60,000 338 3.22% due August 2027 60,000 266 60,000 324 3.85% due June 2028 60,000 344 60,000 406 3.79% due March 2034 75,000 422 75,000 460 3.92% due March 2039 75,000 457 75,000 486 4.06% due March 2044 75,000 479 75,000 501 3.60% due July 2029 80,000 391 80,000 451 2.73% due April 2030 85,000 616 85,000 699 3.36% due April 2050 25,000 226 25,000 235 2.93% due July 2035 25,000 208 25,000 224 3.36% due July 2050 50,000 457 50,000 473 2.44% due August 2035 65,000 454 65,000 489 4.13% due May 12, 2052 65,000 439 — — 3.81% due July 28, 2032 95,000 638 — — 1,068,198 (8,677) 908,198 (9,852) Less current maturities — — — — 1,068,198 (8,677) 908,198 (9,852) PNMR Debt PNMR 2021 Delayed-Draw Term Loan due May 2025 1,000,000 388 900,000 241 1,000,000 388 900,000 241 Less current maturities — — — — 1,000,000 388 900,000 241 Total Consolidated PNMR Debt 4,077,543 156 3,699,043 124 Less current maturities 185,000 207 179,500 161 $ 3,892,543 $ (51) $ 3,519,543 $ (37) Reflecting mandatory tender dates, long-term debt maturities as of December 31, 2022, are follows: PNMR PNM TNMP PNMR Consolidated (In thousands) 2023 $ — $ 185,000 $ — $ 185,000 2024 — 423,000 80,000 503,000 2025 1,000,000 354,000 — 1,354,000 2026 — 100,345 60,000 160,345 2027 — — 60,000 60,000 Thereafter — 947,000 868,198 1,815,198 Total $ 1,000,000 $ 2,009,345 $ 1,068,198 $ 4,077,543 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company enters into various lease agreements to meet its business needs and to satisfy the needs of its customers. The Company accounts for contracts that convey the use and control of identified assets for a period of time as leases. The Company classifies leases as operating or financing by evaluating the terms of the lease agreement. Agreements under which the Company is likely to utilize substantially all of the economic value or life of the asset or that the Company is likely to own at the end of the lease term, either through purchase or transfer of ownership, are classified as financing leases. Leases not meeting these criteria are accounted for as operating leases. Agreements under which the Company is a lessor are insignificant. PNMR, PNM, and TNMP determine present value for their leases using their incremental borrowing rates at the commencement date of the lease or, when readily available, the rate implicit in the agreement. The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS and certain rights-of-way agreements that are classified as leases. All of the Company’s leases with terms in excess of one year are recorded on the Consolidated Balance Sheets 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 Consolidated Statements of Earnings. PVNGS In 1985 and 1986, PNM entered into leases for its interest in PVNGS Unit 1 and 2. The leases initially were scheduled to expire in January 2015 for four Unit 1 leases and January 2016 for 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 expired in January 2023 and the one Unit 2 lease expires in January 2024. The annual lease payments during the renewal periods aggregated $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 in 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 depreciates 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. Upon expiration of the leases PNM will cease depreciation and as authorized by the NMPRC create a regulatory asset for the associated remaining undepreciated investments. 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 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. In January 2023, the Unit 1 leases expired, and PNM closed on the associated sale to SRP, receiving payments of $17.7 million for PNM-owned assets and $17.3 million for nuclear fuel. See Notes 16 and 17 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which includes NMPRC authorization to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the remaining 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 December 31, 2022, amounts due to the lessors under the circumstances described above would be up to $14.1 million, payable on January 13, 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 Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Consolidated Statement of Earnings over their term. As of December 31, 2022 and 2021, the unamortized balance of these rights-of-ways was $54.6 million and $53.4 million. During the years ended December 31, 2022, 2021, and 2020, PNM recognized amortization expense associated with these agreements of $3.8 million, $3.7 million, and $4.4 million. 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 December 31, 2022, residual value guarantees on fleet vehicle and equipment leases are $1.0 million, $1.2 million, and $2.2 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 52,556 $ 3,426 $ 55,982 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 17,239 1,543 18,781 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,633 1,703 41,336 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 Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) (In thousands) Financing leases: Non-utility property $ 19,324 $ 20,084 $ 39,738 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (7,726) (8,202) (16,189) (4,550) (4,923) (9,660) Non-utility property, net $ 11,598 $ 11,882 $ 23,549 $ 10,621 $ 11,258 $ 22,035 Other current liabilities $ 3,441 $ 3,867 $ 7,363 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 8,079 8,028 16,123 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 is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.74 2.16 6.48 5.60 2.90 5.44 Financing leases 3.99 3.39 3.68 4.30 4.14 4.20 Weighted average discount rate: Operating leases 4.01 % 3.94 % 4.00 % 3.99 % 3.98 % 3.99 % Financing leases 3.36 % 3.53 % 3.44 % 2.60 % 2.71 % 2.65 % Information for the components of lease expense is as follows: Year Ended December 31, 2022 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,764 $ 2,020 $ 28,835 Amounts capitalized (690) (1,728) (2,417) Total operating lease expense 26,074 292 26,418 Financing lease cost: Amortization of right-of-use assets 3,175 3,279 6,529 Interest on lease liabilities 327 330 659 Amounts capitalized (2,264) (3,208) (5,471) Total financing lease expense 1,238 401 1,717 Variable lease expense 890 — 890 Short-term lease expense (1) 3,058 5 3,109 Total lease expense for the period $ 31,260 $ 698 $ 32,134 (1) Includes expense of $2.7 million for the twelve months ended December 31, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $2.7 million for the twelve months ended December 31, 2022. Year Ended December 31, 2021 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,690 $ 2,445 $ 29,270 Amounts capitalized (836) (2,115) (2,951) Total operating lease expense 25,854 330 26,319 Financing lease cost: Amortization of right-of-use assets 2,507 2,682 5,277 Interest on lease liabilities 263 307 574 Amounts capitalized (1,726) (2,678) (4,404) Total financing lease expense 1,044 311 1,447 Variable lease expense 380 — 380 Short-term lease expense 2,972 6 3,035 Total lease expense for the period $ 30,250 $ 647 $ 31,181 (1) Includes expense of $2.5 million for the twelve months ended December 31, 2021 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $1.8 million for the twelve months ended December 31, 2021. Supplemental cash flow information related to the Company’s leases is as follows: Year Ended December 31, 2022 Year Ended December 31, 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 $ 25,687 $ 246 $ 25,984 $ 25,655 $ 323 $ 26,129 Operating cash flows from financing leases 96 43 141 90 34 128 Financing cash flows from financing leases 1,123 499 1,711 870 339 1,296 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ 179 $ 3,103 $ — $ 317 $ 317 Financing leases 4,205 4,061 8,266 3,792 3,126 6,958 Capitalized lease costs are reflected as investing activities on the Company’s Consolidated Statements of Cash Flows for the twelve months ended December 31, 2022 and 2021. Future expected lease payments are shown below: As of December 31, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) 2023 $ 3,764 $ 17,566 $ 4,210 $ 1,330 $ 8,029 $ 19,037 2024 3,031 8,294 3,562 1,030 6,606 9,334 2025 2,140 7,070 2,592 525 4,734 7,595 2026 1,570 7,041 1,417 449 2,988 7,490 2027 1,066 7,018 473 — 1,539 7,018 Later years 788 17,366 375 — 1,162 17,366 Total minimum lease payments 12,359 64,355 12,629 3,334 25,058 67,840 Less: Imputed interest 839 7,483 734 88 1,572 7,723 Lease liabilities as of December 31, 2022 $ 11,520 $ 56,872 $ 11,895 $ 3,246 $ 23,486 $ 60,117 |
Lease Commitments | Lease Commitments The Company enters into various lease agreements to meet its business needs and to satisfy the needs of its customers. The Company accounts for contracts that convey the use and control of identified assets for a period of time as leases. The Company classifies leases as operating or financing by evaluating the terms of the lease agreement. Agreements under which the Company is likely to utilize substantially all of the economic value or life of the asset or that the Company is likely to own at the end of the lease term, either through purchase or transfer of ownership, are classified as financing leases. Leases not meeting these criteria are accounted for as operating leases. Agreements under which the Company is a lessor are insignificant. PNMR, PNM, and TNMP determine present value for their leases using their incremental borrowing rates at the commencement date of the lease or, when readily available, the rate implicit in the agreement. The Company leases office buildings, vehicles, and other equipment. In addition, PNM leases interests in PVNGS and certain rights-of-way agreements that are classified as leases. All of the Company’s leases with terms in excess of one year are recorded on the Consolidated Balance Sheets 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 Consolidated Statements of Earnings. PVNGS In 1985 and 1986, PNM entered into leases for its interest in PVNGS Unit 1 and 2. The leases initially were scheduled to expire in January 2015 for four Unit 1 leases and January 2016 for 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 expired in January 2023 and the one Unit 2 lease expires in January 2024. The annual lease payments during the renewal periods aggregated $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 in 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 depreciates 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. Upon expiration of the leases PNM will cease depreciation and as authorized by the NMPRC create a regulatory asset for the associated remaining undepreciated investments. 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 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. In January 2023, the Unit 1 leases expired, and PNM closed on the associated sale to SRP, receiving payments of $17.7 million for PNM-owned assets and $17.3 million for nuclear fuel. See Notes 16 and 17 for information on other PVNGS matters including the PVNGS Leased Interest Abandonment Application which includes NMPRC authorization to create regulatory assets for the associated remaining undepreciated investments. PNM is exposed to loss under the remaining 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 December 31, 2022, amounts due to the lessors under the circumstances described above would be up to $14.1 million, payable on January 13, 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 Consolidated Balance Sheets and recognizes amortization expense associated with these agreements in the Consolidated Statement of Earnings over their term. As of December 31, 2022 and 2021, the unamortized balance of these rights-of-ways was $54.6 million and $53.4 million. During the years ended December 31, 2022, 2021, and 2020, PNM recognized amortization expense associated with these agreements of $3.8 million, $3.7 million, and $4.4 million. 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 December 31, 2022, residual value guarantees on fleet vehicle and equipment leases are $1.0 million, $1.2 million, and $2.2 million for PNM, TNMP, and PNMR Consolidated. Information related to the Company’s operating leases recorded on the Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 52,556 $ 3,426 $ 55,982 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 17,239 1,543 18,781 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,633 1,703 41,336 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 Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) (In thousands) Financing leases: Non-utility property $ 19,324 $ 20,084 $ 39,738 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (7,726) (8,202) (16,189) (4,550) (4,923) (9,660) Non-utility property, net $ 11,598 $ 11,882 $ 23,549 $ 10,621 $ 11,258 $ 22,035 Other current liabilities $ 3,441 $ 3,867 $ 7,363 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 8,079 8,028 16,123 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 is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.74 2.16 6.48 5.60 2.90 5.44 Financing leases 3.99 3.39 3.68 4.30 4.14 4.20 Weighted average discount rate: Operating leases 4.01 % 3.94 % 4.00 % 3.99 % 3.98 % 3.99 % Financing leases 3.36 % 3.53 % 3.44 % 2.60 % 2.71 % 2.65 % Information for the components of lease expense is as follows: Year Ended December 31, 2022 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,764 $ 2,020 $ 28,835 Amounts capitalized (690) (1,728) (2,417) Total operating lease expense 26,074 292 26,418 Financing lease cost: Amortization of right-of-use assets 3,175 3,279 6,529 Interest on lease liabilities 327 330 659 Amounts capitalized (2,264) (3,208) (5,471) Total financing lease expense 1,238 401 1,717 Variable lease expense 890 — 890 Short-term lease expense (1) 3,058 5 3,109 Total lease expense for the period $ 31,260 $ 698 $ 32,134 (1) Includes expense of $2.7 million for the twelve months ended December 31, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $2.7 million for the twelve months ended December 31, 2022. Year Ended December 31, 2021 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,690 $ 2,445 $ 29,270 Amounts capitalized (836) (2,115) (2,951) Total operating lease expense 25,854 330 26,319 Financing lease cost: Amortization of right-of-use assets 2,507 2,682 5,277 Interest on lease liabilities 263 307 574 Amounts capitalized (1,726) (2,678) (4,404) Total financing lease expense 1,044 311 1,447 Variable lease expense 380 — 380 Short-term lease expense 2,972 6 3,035 Total lease expense for the period $ 30,250 $ 647 $ 31,181 (1) Includes expense of $2.5 million for the twelve months ended December 31, 2021 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $1.8 million for the twelve months ended December 31, 2021. Supplemental cash flow information related to the Company’s leases is as follows: Year Ended December 31, 2022 Year Ended December 31, 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 $ 25,687 $ 246 $ 25,984 $ 25,655 $ 323 $ 26,129 Operating cash flows from financing leases 96 43 141 90 34 128 Financing cash flows from financing leases 1,123 499 1,711 870 339 1,296 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ 179 $ 3,103 $ — $ 317 $ 317 Financing leases 4,205 4,061 8,266 3,792 3,126 6,958 Capitalized lease costs are reflected as investing activities on the Company’s Consolidated Statements of Cash Flows for the twelve months ended December 31, 2022 and 2021. Future expected lease payments are shown below: As of December 31, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) 2023 $ 3,764 $ 17,566 $ 4,210 $ 1,330 $ 8,029 $ 19,037 2024 3,031 8,294 3,562 1,030 6,606 9,334 2025 2,140 7,070 2,592 525 4,734 7,595 2026 1,570 7,041 1,417 449 2,988 7,490 2027 1,066 7,018 473 — 1,539 7,018 Later years 788 17,366 375 — 1,162 17,366 Total minimum lease payments 12,359 64,355 12,629 3,334 25,058 67,840 Less: Imputed interest 839 7,483 734 88 1,572 7,723 Lease liabilities as of December 31, 2022 $ 11,520 $ 56,872 $ 11,895 $ 3,246 $ 23,486 $ 60,117 |
Fair Value of Derivative and Ot
Fair Value of Derivative and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Derivative and Other Financial Instruments | Fair Value of Derivative and Other Financial InstrumentsFair 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. 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 and December 2022, PNM entered into agreements to purchase power from third parties in order to ensure that customer demand during the 2023 summer peak load is met. The agreements for the purchase of 35 MW and 25 MW from June 1, 2023 through September 30, 2023 were not considered a derivative because there was no notional amount due to the unit-contingent nature of one agreement and the other qualified for a normal purchase, normal sale scope exception. In the third and fourth quarters 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 17. 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 from January 1, 2018 until September 30, 2022. 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 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. 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 are made at the same market index price. This agreement 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. 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. Unusually cold weather in February 2021 resulted in higher-than-expected natural gas and purchased power costs. PNM mitigated the impacts from the cold weather by securing gas supplies in advance, engaging in market purchases when lower prices were available, and adjusting plant operation of its gas units to minimize reliance on higher-priced gas supplies. PNM estimates the impact of the cold weather conditions in the first quarter of 2021 resulted in approximately $20 million of additional natural gas costs and approximately $8 million in additional purchased power costs. These fuel increases are passed through to customers under the FPPAC. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, PNM accounts for its various instruments for the purchase and sale of energy, which meet the definition of a derivative, based on PNM’s intent. During the years ended December 31, 2022, 2021, and 2020, PNM was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flow 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 Consolidated Balance Sheets: Economic Hedges December 31, 2022 2021 (In thousands) Other current assets $ 9,780 $ 684 Other deferred charges — — 9,780 684 Other current liabilities (19,209) (2,275) Other deferred credits — — (19,209) (2,275) Net $ (9,429) $ (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 zero at December 31, 2022 and $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 $9.8 million in current assets and $19.2 million of current liabilities related to these arrangements at December 31, 2022 and $0.2 million in current assets and $1.8 million of current liabilities at December 31, 2021 with changes in fair value recorded as regulatory assets and regulatory liabilities. See Note 13. At December 31, 2022 and 2021, PNM had no amounts recognized for the legal right to reclaim cash collateral. However, amounts posted as cash collateral under margin arrangements were $10.5 million at December 31, 2022 and $0.5 million at December 31, 2021. These amounts are included in other current assets on the Consolidated Balance Sheets. Obligations to return cash collateral were $0.2 million at December 31, 2022 and $0.9 million at December 31, 2021. Cash collateral amounts are included on the Consolidated Balance Sheets in other current liabilities. The changes in the fair value of commodity derivative instruments that are considered economic hedges had no impact on PNM’s net earnings during the years ended December 31, 2022 and 2021. Commodity derivatives also had no impact on OCI for the periods presented. PNM’s net buy (sell) volume positions for energy were 432,200 MWh and 122,400 MWh at December 31, 2022 and 2021. PNM had no open gas commodity volume positions at December 31, 2022 and 2021. 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 December 31, 2022, PNM had $15.3 million of contractual liability, zero posted cash collateral, and $13.1 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 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, a trust for PNM’s share of decommissioning costs at SJGS, and trusts for PNM’s share of final reclamation costs related to the coal mines serving SJGS and Four Corners. See Note 16. At December 31, 2022 and 2021, the fair value of investment securities included $325.3 million and $394.5 million for the NDT, $14.7 million and zero for the SJGS decommissioning trust, and $77.5 million and $68.6 million for the coal 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. As a result, the Company has 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 Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table: Year ended December 31, 2022 2021 2020 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ (6,940) $ 8,738 $ 5,861 Net gains (losses) from equity securities still held (38,025) (442) 17,707 Total net gains (losses) on equity securities (44,965) 8,296 23,568 Available-for-sale debt securities: Net gains (losses) on debt securities (33,392) 8,554 (1,969) Net gains (losses) on investment securities $ (78,357) $ 16,850 $ 21,599 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 $(25.8) million, $0.7 million, and $(3.2) million for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (In thousands) Proceeds from sales $ 526,448 $ 459,867 $ 590,998 Gross realized gains $ 22,071 $ 39,408 $ 35,904 Gross realized (losses) $ (36,623) $ (22,815) $ (28,817) At December 31, 2022, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 40,339 After 1 year through 5 years 67,426 After 5 years through 10 years 70,608 After 10 years through 15 years 15,571 After 15 years through 20 years 12,825 After 20 years 32,211 $ 238,980 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 December 31, 2022 and 2021. Management of the Company independently verifies the information provided by pricing services. Items recorded at fair value by PNM on the Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Unrealized Gains (In thousands) December 31, 2022 Cash and cash equivalents $ 66,843 $ 66,843 $ — Equity securities: Corporate stocks, common 40,103 40,103 — Corporate stocks, preferred 5,191 790 4,401 Mutual funds and other 66,359 66,359 — Available-for-sale debt securities: U.S. government 45,905 45,645 260 $ 1,334 International government 9,762 — 9,762 1,117 Municipals 43,136 — 43,136 1,062 Corporate and other 140,177 — 140,177 6,473 $ 417,476 $ 219,740 $ 197,736 $ 9,986 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 Consolidated Balance Sheets are presented below: Carrying Fair Value December 31, 2022 (In thousands) PNMR $ 4,077,387 $ 3,726,195 PNM $ 2,000,900 $ 1,789,186 TNMP $ 1,076,875 $ 937,009 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 Consolidated Balance Sheets are not material and not shown in the above table. Investments Held by Employee Benefit Plans As discussed in Note 11, PNM and TNMP have trusts that hold investment assets for their pension and other postretirement benefit plans. The fair value of the assets held by the trusts impacts the determination of the funded status of each plan but the assets are not reflected on the Company’s Consolidated Balance Sheets. Both the PNM Pension Plan and the TNMP Pension Plan hold units of participation in the PNM Resources, Inc. Master Trust (the “PNMR Master Trust”), which was established for the investment of assets of the pension plans. The PNM Pension Plan’s investment allocation targets in 2022 consist of 35% equities, 15% alternative investments (both of which are considered return generating), and 50% fixed income. The TNMP Pension Plan’s investment allocation targets in 2022 consist of 16% equities, 14% alternative investments (both of which are considered return generating), and 70% fixed income. GAAP provides a practical expedient that allows the net asset value per share to be used as fair value for investments in certain entities that do not have readily determinable fair values and are considered to be investment companies. Fair values for alternative investments held by the PNMR Master Trust are valued using this practical expedient. Investments for which fair value is measured using that practical expedient are not required to be categorized within the fair value hierarchy. Level 2 and Level 3 fair values are provided by fund managers utilizing a pricing service. For level 2 fair values, the pricing provider predominately uses the market approach using bid side market value based upon a hierarchy of information for specific securities or securities with similar characteristics. Fair values of Level 2 investments in mutual funds are equal to net asset value as of year-end. Fair value prices for Level 2 corporate term loans predominately use the market approach which uses bid side market values based upon hierarchy information for specific securities or securities with similar characteristics. Alternative investments include private equity funds, hedge funds, and real estate funds. The private equity funds are not voluntarily redeemable. These investments are realized through periodic distributions occurring over a 10 to 15 years term after the initial investment. The real estate funds and hedge funds may be voluntarily redeemed but are subject to redemption provisions that may result in the funds not being redeemable in the near term. Audited financial statements are received for each fund and are reviewed by the Company annually. The valuation of alternative investments requires significant judgment by the pricing provider due to the absence of quoted market values, changes in market conditions, and the long-term nature of the assets. The significant unobservable inputs include estimates of liquidation value, current operating performance, and future expectations of performance. Neither the employee benefit plans nor the PNMR Master Trust have any Level 3 investments as of December 31, 2022 or 2021. The fair values of investments held by the employee benefit plans are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets Significant December 31, 2022 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 342,183 $ 143,911 $ 198,272 Uncategorized investments 67,787 Total Master Trust Investments $ 409,970 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 38,617 $ 13,556 $ 25,061 Uncategorized investments 5,433 Total Master Trust Investments $ 44,050 PNM OPEB Plan Cash and cash equivalents $ 1,703 $ 1,703 $ — Equity securities: Mutual funds 69,001 42,068 26,933 $ 70,704 $ 43,771 $ 26,933 TNMP OPEB Plan Cash and cash equivalents $ 149 $ 149 $ — Equity securities: Mutual funds 8,573 8,018 555 $ 8,722 $ 8,167 $ 555 GAAP Fair Value Hierarchy Total Quoted Prices in Active Significant December 31, 2021 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 527,873 $ 235,605 $ 292,268 Uncategorized investments 49,432 Total Master Trust Investments $ 577,305 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 58,623 $ 21,390 $ 37,233 Uncategorized investments 3,962 Total Master Trust Investments $ 62,585 PNM OPEB Plan Cash and cash equivalents $ 1,578 $ 1,578 $ — Equity securities: Mutual funds 94,549 58,383 36,166 $ 96,127 $ 59,961 $ 36,166 TNMP OPEB Plan Cash and cash equivalents $ 381 $ 381 $ — Equity securities: Mutual funds 12,249 11,575 674 $ 12,630 $ 11,956 $ 674 The fair values of investments in the PNMR Master Trust are as follows: GAAP Fair Value Hierarchy Total Quoted Prices Significant December 31, 2022 (In thousands) PNMR Master Trust Cash and cash equivalents $ 17,106 $ 17,106 $ — Equity securities: Corporate stocks, common 53,661 53,661 — Corporate stocks, preferred 639 639 — Mutual funds and other 135,200 27,412 107,788 Fixed income securities: U.S. government 62,637 58,649 3,988 International government 3,318 — 3,318 Municipals 4,922 — 4,922 Corporate and other 103,317 — 103,317 Total investments categorized within fair value hierarchy 380,800 $ 157,467 $ 223,333 Uncategorized investments: Private equity funds 6,691 Hedge funds 33,258 Real estate funds 33,271 $ 454,020 GAAP Fair Value Hierarchy Total Quoted Prices Significant December 31, 2021 (In thousands) PNMR Master Trust Cash and cash equivalents $ 18,924 $ 18,924 $ — Equity securities: Corporate stocks, common 92,484 92,484 — Corporate stocks, preferred 806 — 806 Mutual funds and other 222,106 59,203 162,903 Fixed income securities: U.S. government 95,429 86,384 9,045 International government 5,977 — 5,977 Municipals 6,143 — 6,143 Corporate and other 144,627 — 144,627 Total investments categorized within fair value hierarchy 586,496 $ 256,995 $ 329,501 Uncategorized investments: Private equity funds 10,479 Hedge funds 8,913 Real estate funds 34,002 $ 639,890 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 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. 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 years ended December 31, 2022, 2021, and 2020, PNM paid $19.5 million, $19.8 million, and $20.0 million for fixed charges and $1.9 million, $1.9 million, and $1.4 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 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 Consolidated Balance Sheets. The owner’s equity and net income of Valencia are considered attributable to non-controlling interest. Summarized financial information for Valencia is as follows: Results of Operations Year Ended December 31 2022 2021 2020 (In thousands) Operating revenues $ 21,403 $ 21,624 $ 21,297 Operating expenses 6,281 6,134 7,284 Earnings attributable to non-controlling interest $ 15,122 $ 15,490 $ 14,013 Financial Position December 31, 2022 2021 (In thousands) Current assets $ 3,429 $ 3,042 Net property, plant and equipment 50,094 52,908 Total assets 53,523 55,950 Current liabilities 529 545 Owners’ equity – non-controlling interest $ 52,994 $ 55,405 Westmoreland San Juan Mining, LLC As discussed in the subheading Coal Supply in Note 16, 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. See Note 16. 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 are being performed after the SJGS CSA expired on September 30, 2022. As discussed in Note 16, each of the SJGS participants has established and actively fund trusts to meet future reclamation obligations. WSJ LLC is considered a VIE. PNMR’s analysis of its arrangements with WSJ LLC concluded that WSJ LLC had the ability to direct its mining operations and reclamation services, which are the factors that most significantly impact the economic performance of WSJ LLC. Other than PNM being able to ensure that coal was supplied in adequate quantities and of sufficient quality to provide the fuel necessary to operate SJGS in a normal manner and monitoring of reclamation activities, the mining operations and reclamation services were solely under the control of WSJ LLC, including developing mining and reclamation plans, hiring of personnel, and incurring operating and maintenance expenses. Neither PNMR nor PNM had any ability to direct or influence the mining operation or reclamation activities. PNM’s involvement through the SJGS CSA and the reclamation services agreement is a protective right rather than a participating right and WSJ LLC still has the power to direct the activities that most significantly impact the economic performance of WSJ LLC. The SJGS CSA required WSJ LLC to deliver coal to fuel SJGS in exchange for payment of a set price per ton, which escalated over time for inflation. The reclamation services agreement requires WSJ LLC to perform reclamation services at a base price per activity, which escalates over time for inflation. If WSJ LLC had been able to mine or perform reclamation services more efficiently than anticipated, its economic performance would improve. Conversely, if WSJ LLC had not been able to mine or does not perform reclamation services as efficiently as anticipated, its economic performance would be negatively impacted. Accordingly, PNMR believes |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of the periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Participants in the PNM Plans include eligible employees and retirees of PNMR and PNM. Participants in the TNMP Plans include eligible employees and retirees of TNMP. The PNM pension plan was frozen at the end of 1997 with regard to new participants, salary levels, and benefits. Through December 31, 2007, additional credited service could be accrued under the PNM pension plan up to a limit determined by age and service. The TNMP pension plan was frozen at December 31, 2005 with regard to new participants, salary levels, and benefits. A plan sponsor is required to (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. Unrecognized prior service costs and unrecognized gains or losses are required to be recorded in AOCI and subsequently amortized. To the extent the amortization of these items will ultimately be recovered or returned through future rates, PNM and TNMP record the costs as a regulatory asset or regulatory liability. The amortization of these incurred costs is included as pension and postretirement benefit periodic cost or income in subsequent years. The Company maintains trust funds for the pension and OPEB plans from which benefits are paid to eligible employees and retirees. The Company’s funding policy is to make contributions to the trusts, as determined by an independent actuary, that comply with minimum guidelines of the Employee Retirement Income Security Act and the IRC. Information concerning the fair value of investments is contained in Note 9. The Company has in place a policy that defines the investment objectives, establishes performance goals of asset managers, and provides procedures for the manner in which investments are to be reviewed. The plans implement investment strategies to achieve the following objectives: • Implement investment strategies commensurate with the risk that the Corporate Investment Committee deems appropriate to meet the obligations of the pension plans and OPEB plans, minimize the volatility of expense, and account for contingencies • Transition asset mix over the long-term to a higher proportion of high-quality fixed income investments as the plans’ funded statuses improve Management is responsible for the determination of the asset target mix and the expected rate of return. The target asset allocations are determined based on consultations with external investment advisors. The expected long-term rate of return on pension and postretirement plan assets is calculated on the market-related value of assets. Actual gains and losses on pension and OPEB plan assets are recognized in the market-related value of assets equally over a period of not more than five years, which reduces year-to-year volatility. For the PNM Plans and TNMP Plans, the market-related value of assets is equal to the prior year’s market-related value of assets adjusted for contributions, benefit payments and investment gains and losses that are within a corridor of plus or minus 4.0% around the expected return on market value. Gains and losses that are outside the corridor are amortized over five years. Pension Plans For defined benefit pension plans, including the executive retirement plans, the PBO represents the actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered prior to that date using assumptions regarding future compensation levels. The ABO represents the PBO without considering future compensation levels. Since the pension plans are frozen, the PBO and ABO are equal. The following table presents information about the PBO, fair value of plan assets, and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) PBO at beginning of year $ 584,061 $ 630,904 $ 59,609 $ 67,390 Service cost — — — — Interest cost 16,857 16,143 1,720 1,741 Actuarial (gain) (118,552) (19,372) (11,711) (3,306) Benefits paid (48,721) (43,614) (3,403) (3,678) Settlements — — (2,254) (2,538) PBO at end of year 433,645 584,061 43,961 59,609 Fair value of plan assets at beginning of year 576,707 587,530 62,942 66,149 Actual return on plan assets (117,523) 32,791 (13,838) 3,009 Employer contributions — — — — Benefits paid (48,721) (43,614) (3,403) (3,678) Settlements — — (2,254) (2,538) Fair value of plan assets at end of year 410,463 576,707 43,447 62,942 Funded status – asset (liability) for pension benefits $ (23,182) $ (7,354) $ (514) $ 3,333 Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Discount rates $ (111,478) $ (19,989) $ (11,697) $ (2,017) Demographic experience (7,074) 617 (742) (1,403) Mortality rate — — — — Other assumptions and experience — — 728 114 $ (118,552) $ (19,372) $ (11,711) $ (3,306) The following table presents pre-tax information about net actuarial (gain) loss in AOCI as of December 31, 2022. PNM TNMP (In thousands) Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year $ 112,063 $ — Experience loss 27,531 4,602 Regulatory asset (liability) adjustment (22,282) (4,602) Amortization recognized in net periodic benefit (income) (6,967) — Amounts in AOCI not yet recognized in net periodic benefit cost at end of year $ 110,345 $ — The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ — $ — $ — Interest cost 16,857 16,143 19,941 Expected return on plan assets (28,563) (28,531) (29,453) Amortization of net loss 15,794 18,166 17,860 Amortization of prior service cost — — (554) Net periodic benefit cost $ 4,088 $ 5,778 $ 7,794 TNMP Service cost $ — $ — $ — Interest cost 1,720 1,741 2,177 Expected return on plan assets (2,472) (3,181) (3,284) Amortization of net loss 932 1,247 1,258 Amortization of prior service cost — — — Settlement loss 1,033 746 — Net periodic benefit cost $ 1,213 $ 553 $ 151 The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 PBO 5.74 % 3.00 % 2.66 % Discount rate for determining net periodic benefit cost 3.00 % 2.66 % 3.42 % Expected return on plan assets 5.50 % 5.50 % 5.90 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 5.75 % 3.01 % 2.69 % Discount rate for determining net periodic benefit cost 3.01 % 2.69 % 3.46 % Expected return on plan assets 4.40 % 5.50 % 5.90 % Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the PBO was determined based on a review of long-term high-grade bonds and management’s expectations. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the PBO. Factors that are considered include, but are not limited to, historic returns on plan assets, current market information on long-term returns (e.g., long-term bond rates) and current and target asset allocations between asset categories. If all other factors were to remain unchanged, a 1% decrease in the expected long-term rate of return would cause PNM’s and TNMP’s 2023 net periodic benefit cost to increase $4.6 million and $0.5 million (analogous changes would result from a 1% increase). The actual rate of return for the PNM and TNMP pension plans was (21.28)% and (23.03)% for the year ended December 31, 2022. The Company’s long-term pension investment strategy is to invest in assets whose interest rate sensitivity is correlated with the pension liability. The Company uses an investment strategy, known as Liability Driven Investing, that increases the liability matching investments as the funded status of the pension plans improve. The Company’s investment allocation targets consist of 35% equities, 15% alternative investments (both of which are considered return generating), and 50% liability matching securities that are primarily bonds and other fixed income investments. Equity investments are primarily in domestic securities that include large-, mid-, and small-capitalization companies. The pension plans have a 13% targeted allocation to equities of companies domiciled primarily in developed countries outside of the U.S. The equity investments category includes actively managed domestic equity securities that are benchmarked against a variety of style indices. Fixed income investments are primarily corporate bonds of companies from diversified industries and government securities. Alternative investments include investments in hedge funds, real estate funds, and private equity funds. The private equity funds are structured as multi-manager multi-strategy fund of funds to achieve a diversified position in these asset classes. The hedge funds use multi- strategies that pursue various absolute return strategies such as relative value, merger arbitrage, event driven equities, and structured credit. The real estate investments are commingled real estate portfolios that invest in a diversified portfolio of assets including commercial property and multi-family housing. See Note 9 for fair value information concerning assets held by the pension plans. The following pension benefit payments are expected to be paid: PNM TNMP (In thousands) 2023 $ 42,827 $ 4,358 2024 41,621 4,236 2025 40,876 4,207 2026 39,528 4,139 2027 38,600 3,929 2028 - 2032 174,505 17,211 Based on current law, funding requirements, and estimates of portfolio performance, the Company does not expect to make any cash contributions to the pension plans in 2023 through 2026. PNM expects to make a contribution of $0.4 million in 2027. TNMP does not expect to make any cash contributions in 2027. The funding assumptions were developed using discount a rate of 5.75%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rates. PNM and TNMP may make additional contributions at their discretion. Other Postretirement Benefit Plans For postretirement benefit plans, the APBO is the actuarial present value of all future benefits attributed under the terms of the postretirement benefit plan to employee service rendered to date. The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) APBO at beginning of year $ 66,984 $ 75,196 $ 10,570 $ 11,938 Service cost 10 23 38 45 Interest cost 1,914 1,907 307 308 Participant contributions 1,431 1,617 219 135 Actuarial (gain) (14,829) (5,053) (2,788) (1,141) Benefits paid (6,396) (6,706) (641) (715) Curtailment loss 836 — — — APBO at end of year 49,950 66,984 7,705 10,570 Fair value of plan assets at beginning of year 95,805 93,402 12,593 12,885 Actual return on plan assets (23,156) 4,783 (3,453) 288 Employer contributions 2,617 2,709 — — Participant contributions 1,431 1,617 219 135 Benefits paid (6,396) (6,706) (641) (715) Fair value of plan assets at end of year 70,301 95,805 8,718 12,593 Funded status – asset $ 20,351 $ 28,821 $ 1,013 $ 2,023 As of December 31, 2022, the fair value of plan assets exceeds the APBO for both PNM’s and TNMP’s OPEB Plans and the resulting net asset is presented in other deferred charges on the Consolidated Balance Sheets. Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Discount rates $ (11,876) $ (2,042) $ (2,469) $ (423) Claims, contributions, and demographic experience (2,985) (2,893) (319) (718) Assumed participation rate — — — — Mortality rate — — — — Dental trend assumption 32 (118) — — $ (14,829) $ (5,053) $ (2,788) $ (1,141) In the year ended December 31, 2022, actuarial losses of $12.7 million were recorded as adjustments to regulatory assets for the PNM OPEB plan. For the TNMP OPEB plan, actuarial losses of $1.1 million were recorded as adjustments to regulatory liabilities. The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ 10 $ 23 $ 38 Interest cost 1,914 1,907 2,453 Expected return on plan assets (4,351) (4,167) (5,548) Amortization of net loss — — 348 Curtailment loss $ 836 $ — $ — Net periodic benefit (income) $ (1,591) $ (2,237) $ (2,709) TNMP Service cost $ 38 $ 45 $ 46 Interest cost 307 308 373 Expected return on plan assets (418) (407) (538) Amortization of net (gain) (520) (322) (323) Net periodic benefit (income) $ (593) $ (376) $ (442) The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 APBO 5.75 % 2.99 % 2.65 % Discount rate for determining net periodic benefit cost 2.99 % 2.65 % 3.42 % Expected return on plan assets 4.75 % 4.75 % 7.00 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 APBO 5.75 % 2.99 % 2.65 % Discount rate for determining net periodic benefit cost 2.99 % 2.65 % 3.42 % Expected return on plan assets 3.80 % 3.80 % 5.60 % Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the APBO was determined based on a review of long-term high-grade bonds and management’s expectations. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the APBO. Factors that are considered include, but are not limited to, historic returns on plan assets, current market information on long-term returns (e.g., long-term bond rates), and current and target asset allocations between asset categories. If all other factors were to remain unchanged, a 1% decrease in the expected long-term rate of return would cause PNM’s and TNMP’s 2023 net periodic benefit cost to increase $0.8 million and $0.1 million (analogous changes would result from a 1% increase). The actual rate of return for the PNM and TNMP OPEB plans was (24.5)% and (27.9)% for the year ended December 31, 2022. The following table shows the assumed health care cost trend rates for the PNM OPEB plan: PNM December 31, 2022 2021 Health care cost trend rate assumed for next year 6.25 % 6.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.75 % 4.75 % Year that the rate reaches the ultimate trend rate 2029 2027 TNMP’s exposure to cost increases in the OPEB plan is minimized by a provision that limits TNMP’s share of costs under the plan. Costs of the plan in excess of the limit, which was reached at the end of 2001, are wholly borne by the participants. As a result, a one-percentage-point change in assumed health care cost trend rates would have no effect on either the net periodic expense or the year-end APBO. Effective January 1, 2018, the PNM OPEB plan was amended to limit the annual increase in the Company’s costs to 5%. Increases in excess of the limit are born by the PNM OPEB plan participants. The Company’s OPEB plans invest in a portfolio that is diversified by asset class and style strategies. The OPEB plans generally use the same pension fixed income and equity investment managers and utilize the same overall investment strategy as described above for the pension plans, except there is no allocation to alternative investments. The OPEB plans have a target asset allocation of 30% equities and 70% fixed income. See Note 9 for fair value information concerning assets held by the other postretirement benefit plans. The following OPEB payments, which reflect expected future service and are net of participant contributions, are expected to be paid: PNM TNMP (In thousands) 2023 $ 5,880 $ 621 2024 5,533 640 2025 5,157 643 2026 4,873 649 2027 4,593 641 2028 - 2032 19,200 2,980 PNM and TNMP made no cash contributions to the OPEB trusts in 2022 or 2021 and PNM and TNMP do not expect to make cash contributions to the OPEB trusts in 2023-2027. However, a portion of the disbursements attributable to the OPEB trust are paid by PNM and are therefore considered to be contributions to the PNM OPEB plan. Payments by PNM on behalf of the PNM OPEB plan are expected to be $0.2 million in 2023 and $9.0 million in 2024-2027. Executive Retirement Programs For the executive retirement programs, the following table presents information about the PBO and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) PBO at beginning of year $ 12,612 $ 14,222 $ 406 $ 678 Service cost — — — — Interest cost 362 363 11 17 Actuarial (gain) (1,628) (657) (2) (211) Benefits paid (1,304) (1,316) (71) (78) PBO at end of year – funded status 10,042 12,612 344 406 Less current liability 1,217 1,248 66 67 Non-current liability $ 8,825 $ 11,364 $ 278 $ 339 The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2022. December 31, 2022 PNM TNMP (In thousands) Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year $ 1,816 $ — Experience (gain) (1,628) (2) Regulatory asset adjustment 944 2 Amortization recognized in net periodic benefit (income) (137) — Amount in AOCI not yet recognized in net periodic benefit cost at end of year $ 995 $ — The following table presents the components of net periodic benefit cost: Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ — $ — $ — Interest cost 362 363 491 Amortization of net loss 327 395 403 Amortization of prior service cost — — — Net periodic benefit cost $ 689 $ 758 $ 894 TNMP Service cost $ — $ — $ — Interest cost 11 17 22 Amortization of net loss — 33 24 Amortization of prior service cost — — — Net periodic benefit cost $ 11 $ 50 $ 46 The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 PBO 5.73 % 3.02 % 2.68 % Discount rate for determining net periodic benefit cost 3.02 % 2.68 % 3.44 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 5.75 % 3.01 % 2.69 % Discount rate for determining net periodic benefit cost 3.01 % 2.69 % 3.46 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A The assumed discount rate for determining the PBO was determined based on a review of long-term high-grade bonds and management’s expectations. The impacts of changes in assumptions or experience were not significant. Disbursements under the executive retirement program, funded by PNM and TNMP, which are considered to be contributions to the plan were $1.3 million and $0.1 million in the year ended December 31, 2022 and $1.3 million and $0.1 million for the year ended December 31, 2021. The following executive retirement plan payments, which reflect expected future service, are expected: PNM TNMP (In thousands) 2023 $ 1,251 $ 68 2024 1,208 61 2025 1,158 54 2026 1,102 48 2027 1,042 41 2028 - 2032 4,230 121 Other Retirement Plans PNMR sponsors a 401(k) defined contribution plan for eligible employees, including those of its subsidiaries. PNMR’s contributions to the 401(k) plan consist of a discretionary matching contribution equal to 75% of the first 6% of eligible compensation contributed by the employee on a before-tax basis. PNMR also makes a non-matching contribution ranging from 3% to 10% of eligible compensation based on the eligible employee’s age. PNMR also provides executive deferred compensation benefits through an unfunded, non-qualified plan. The purpose of this plan is to permit certain key employees of PNMR who participate in the 401(k) defined contribution plan to defer compensation and receive credits without reference to the certain limitations on contributions. A summary of expenses for these other retirement plans is as follows: Year Ended December 31, 2022 2021 2020 (In thousands) PNMR 401(k) plan $ 15,844 $ 16,648 $ 16,247 Non-qualified plan $ (1,027) $ 3,594 $ 2,090 PNM 401(k) plan $ 11,067 $ 11,826 $ 11,676 Non-qualified plan $ (721) $ 2,622 $ 1,544 TNMP 401(k) plan $ 4,776 $ 4,823 $ 4,572 Non-qualified plan $ (305) $ 972 $ 547 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation PNMR has various stock-based compensation programs, including stock options, restricted stock, and performance shares granted under the Performance Equity Plan (“PEP”). Although certain PNM and TNMP employees participate in the PNMR plans, PNM and TNMP do not have separate employee stock-based compensation plans. The Company has not awarded stock options since 2010 and all employee stock options expired or were exercised in February 2020. 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. Performance Equity Plan The PEP provides for the granting of non-qualified stock options, restricted stock rights, performance shares, performance units, and stock appreciation rights to officers, key employees, and non-employee members of the Board. Restricted stock under the PEP refers to awards of stock subject to vesting, performance, or market conditions rather than to shares with contractual post-vesting restrictions. Generally, the awards vest ratably over three years from the grant date of the award. However, awards with performance or market conditions vest upon satisfaction of those conditions. In addition, plan provisions provide that upon retirement, participants become 100% vested in certain stock awards. The vesting period for awards of restricted stock to non-employee members of the Board is one year. The total number of shares of PNMR common stock subject to all awards under the PEP, as approved by PNMR’s shareholders in May 2014, may not exceed 13.5 million shares, subject to adjustment and certain share counting rules set forth in the PEP. This current share pool is charged five shares for each share subject to restricted stock or other full value award. Source of Shares The source of shares for exercised stock options and vested restricted stock is shares acquired on the open market by an independent agent, rather than newly issued shares. Accounting for Stock Awards The stock-based compensation expense related to restricted stock awards without performance or market conditions to participants that are retirement eligible on the grant date is recognized immediately at the grant date and is not amortized. Compensation expense for other such awards is amortized to compensation expense over the shorter of the requisite vesting period or the period until the participant becomes retirement eligible. Compensation expense for performance-based shares is recognized ratably over the performance period 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. Total compensation expense for stock-based payment arrangements recognized by PNMR for the years ended December 31, 2022, 2021, and 2020 was $7.9 million, $9.4 million, and $8.1 million. Stock compensation expense of $5.3 million, $6.4 million, and $5.5 million was charged to PNM and $2.6 million, $3.0 million, and $2.6 million was charged to TNMP. At December 31, 2022, PNMR had unrecognized compensation expense related to stock awards of $4.6 million, which is expected to be recognized over an average of 1.54 years. PNMR receives a tax deduction for the value of restricted stock at the vesting date. To the extent the tax deduction exceeds the Company’s cumulative expense related to a stock award, an excess tax benefit is recorded. When the cumulative expense exceeds the tax deduction, a tax deficiency is recorded. All excess tax benefits and deficiencies are recorded to tax expense and classified as operating cash flows when used to reduce taxes payable. Year Ended December 31, Excess Tax Benefits (Deficiencies) 2022 2021 2020 (In thousands) PNM $ (65) $ 564 $ 279 TNMP (26) 224 112 PNMR (91) 788 391 TNMP used excess tax benefits to reduce income taxes payable and the benefit was reflected in cash flows from operating activities. The benefit of excess tax benefits at PNM and PNMR will be reflected in operating cash flows when they reduce income taxes payable. The grant date fair value for restricted stock and stock awards with Company internal performance targets is determined based on the market price of PNMR common stock on the date of the agreements reduced by the present value of future dividends 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 is determined using Monte Carlo simulation models, which provide grant date fair values that include an expectation of the number of shares to vest at the end of the measurement period. The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Year Ended December 31, Restricted Shares and Performance-Based Shares 2022 2021 2020 Expected quarterly dividends per share $ 0.3475 $ 0.3275 $ 0.3075 Risk-free interest rate 1.46 % 0.32 % 0.72 % Market-Based Shares (1) Dividend yield N/A 2.76 % 2.51 % Expected volatility N/A 33.69 % 19.41 % Risk-free interest rate N/A 0.29 % 0.72 % (1) Restricted stock expected to be awarded under the PEP for performance periods ending after 2023 no longer have market targets. The following table summarizes activity in restricted stock awards including performance-based and market-based shares: Restricted Stock Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 167,270 $ 43.71 Granted 193,943 41.04 Released (173,474) 42.47 Forfeited (5,293) 42.31 Outstanding at December 31, 2022 182,446 $ 42.09 PNMR’s current stock-based compensation program provides for performance and market targets through 2023 and performance targets through 2024. 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 market targets at below “maximum” levels). Excluded from the above table are 100,991 previously awarded shares that were earned for the 2020 - 2022 performance measurement period and ratified by the Board in February 2023 (based upon achieving market targets at above “target”, below “maximum” levels). Also excluded from the table above are 144,175 and 150,050 shares for the three-year performance periods ending in 2023 and 2024 that will be awarded if all performance and/or 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, and stock options: Year Ended December 31, Restricted Stock 2022 2021 2020 Weighted-average grant date fair value $ 41.04 $ 43.48 $ 36.73 Total fair value of restricted shares that vested (in thousands) $ 7,368 $ 8,617 $ 8,299 Stock Options Total intrinsic value of options exercised (in thousands) $ — $ — $ 84 At December 31, 2019, the aggregate intrinsic value of stock options outstanding, all of which were exercisable, was less than $0.1 million. All the outstanding options were exercised or expired in February 2020. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The operations of PNM and TNMP are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to its regulated operations. Regulatory assets represent probable future recovery of previously incurred costs that will be collected from customers through the ratemaking process. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are to be credited to customers through the ratemaking process. Regulatory assets and liabilities reflected in the Consolidated Balance Sheets are presented below. PNM TNMP December 31, December 31, 2022 2021 2022 2021 Assets: (In thousands) Current: FPPAC $ 8,904 $ 7,130 $ — $ — NMPRC hedging plan 9,429 1,591 — — Transmission cost recovery factor — — — 3,906 Energy efficiency costs — — 1,932 2,158 18,333 8,721 1,932 6,064 PNM TNMP December 31, December 31, 2022 2021 2022 2021 Assets (Continued): (In thousands) Non-Current: SJGS - ETA (1) $ 343,238 $ 51,975 $ — $ — SJGS - non-ETA (2) 26,296 43 — — Shutdown of SJGS Units 2 and 3 94,677 100,954 — — SJGS replacement resources 8,312 8,269 — — EIM 13,102 7,028 — — Loss on reacquired debt 15,323 17,249 26,317 27,615 Pension and OPEB (3) 187,182 165,006 21,558 17,924 Deferred income taxes 67,621 68,687 9,193 9,505 AMS surcharge — — 6,254 12,507 AMS retirement and other costs — — 12,591 12,286 Deferred COVID-19 costs 5,664 6,896 1,053 — Other 2,526 2,874 5,779 5,440 763,941 428,981 82,745 85,277 Total regulatory assets $ 782,274 $ 437,702 $ 84,677 $ 91,341 PNM TNMP December 31, December 31, 2022 2021 2022 2021 Liabilities: Current: Renewable energy rider, including excess return $ (5,076) $ (5,989) $ — $ — Energy efficiency costs (2,837) (2,327) — — Transmission cost recovery factor — — (9,089) — (7,913) (8,316) (9,089) — Non-Current: Cost of removal (238,903) (294,193) (97,030) (73,029) Deferred income taxes (301,493) (321,976) (94,994) (107,250) PVNGS ARO — (1,215) — — Renewable energy tax benefits (15,610) (16,756) — — Accelerated depreciation SNCRs (3) — (16,331) — — Pension and OPEB — (2,376) (4,518) (6,099) COVID-19 cost savings (900) (900) — — Other (83) (83) (1,671) (1,185) (556,989) (653,830) (198,213) (187,563) Total regulatory liabilities $ (564,902) $ (662,146) $ (207,302) $ (187,563) (1) Amounts approved for recovery through the Energy Transition Charge, see Note 17 (2) Authorized to be recorded as regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA, see Note 17 (3) Reclassified to the SJGS - ETA regulatory asset after shutdown of SJGS in 2022 The Company’s regulatory assets and regulatory liabilities are reflected in rates charged to customers or have been addressed in a regulatory proceeding. The Company does not receive or pay a rate of return on the following regulatory assets and regulatory liabilities (and their remaining amortization periods): SJGS non-ETA, SJGS replacement resources, EIM, PVNGS ARO, and deferred COVID-19 costs (to be determined in the 2024 Rate Change); deferred income taxes (over the remaining life of the taxable item, up to the remaining life of utility plant); pension and OPEB costs (through 2039); costs recoverable under the ETA (over the securitization period). |
Construction Program and Jointl
Construction Program and Jointly-Owned Electric Generating Plants | 12 Months Ended |
Dec. 31, 2022 | |
Construction Program and Jointly-Owned Electric Generating Plants [Abstract] | |
Construction Program and Jointly-Owned Electric Generating Plants | Construction Program and Jointly-Owned Electric Generating Plants PNM is a participant in jointly-owned power plant projects. The participation agreement for SJGS expired on September 30, 2022. The primary operating or participation agreements for the other joint projects expire in July 2041 for Four Corners, December 2046 for Luna, and November 2047 for PVNGS. PNM’s expenditures for additions to utility plant were $433.5 million in 2022, including expenditures on jointly-owned projects. TNMP does not participate in the ownership or operation of any generating plants, but incurred expenditures for additions to utility plant of $449.5 million during 2022. On a consolidated basis, PNMR’s expenditures for additions to utility plant were $912.6 million in 2022. Joint Projects Under the agreements for the jointly-owned projects, PNM has an undivided interest in each asset and liability of the project and records its pro-rata share of each item in the corresponding asset and liability account on PNM’s Consolidated Balance Sheets. Likewise, PNM records its pro-rata share of each item of operating and maintenance expenses for its jointly-owned plants within the corresponding operating expense account in its Consolidated Statements of Earnings. PNM is responsible for financing its share of the capital and operating costs of the joint projects. At December 31, 2022, PNM’s interests and investments in jointly-owned generating facilities are: Station (Type) Plant in Accumulated Depreciation (1) Construction Composite (In thousands) PVNGS (Nuclear) $ 891,708 $ 420,076 $ 35,504 10.20 % Four Corners Units 4 and 5 (Coal) $ 320,376 $ 101,022 $ 9,390 13.00 % Luna (Gas) $ 83,146 $ 33,063 $ 111 33.33 % (1) Includes cost of removal. Palo Verde Nuclear Generating Station PNM is a participant in the three units of PVNGS with APS (the operating agent), SRP, EPE, SCE, SCPPA, and The Department of Water and Power of the City of Los Angeles. PNM had a 10.2% undivided interest in PVNGS, with portions of its interests in Units 1 and 2 held under leases. In January 2023, leased capacity of 104 MW in PVNGS Unit 1 expired and the rights to the capacity were acquired by SRP from the lessors. Subsequently, PNM’s interest in PVNGS represents 7.6%. See Note 8 for additional information concerning the PVNGS leases. Operation of each of the three PVNGS units requires an operating license from the NRC. Currently the operating licenses for the plants for 20 years through June 2045 for Unit 1, April 2046 for Unit 2, and November 2047 for Unit 3. Four Corners Power Plant PNM is a participant in two units of Four Corners with APS (the operating agent), an affiliate of APS, SRP, and Tucson. PNM has a 13.0% undivided interest in Units 4 and 5 of Four Corners. The Four Corners plant site is located on land within the Navajo Nation and is subject to an easement from the federal government. APS, on behalf of the Four Corners participants, negotiated amendments to an existing agreement with the Navajo Nation, which extends the owners’ right to operate the plant on the site to July 2041. See Notes 16 and 17 for additional information about Four Corners. Luna Energy Facility Luna is a combined-cycle power plant near Deming, New Mexico. Luna is owned equally by PNM, Tucson, and Samchully Power & Utilities 1, LLC. The operation and maintenance of the facility has been contracted to North American Energy Services. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations AROs are recorded based on studies to estimate the amount and timing of future ARO expenditures and reflect underlying assumptions, such as discount rates, estimates of the future costs for decommissioning, and the timing of the removal activities to be performed. Approximately 68% of PNM’s total ARO liabilities are related to nuclear decommissioning of PVNGS. PNM is responsible for all decommissioning obligations related to its entire interest in PVNGS, including portions under lease both during and after termination of the leases. Studies of the decommissioning costs of PVNGS, SJGS, Four Corners, and other facilities are performed periodically and revisions to the ARO liabilities are recorded. Changes in the assumptions underlying the calculations may also require revisions to the estimated AROs when identified. A reconciliation of the ARO liabilities is as follows: PNMR PNM TNMP (In thousands) Liability at December 31, 2019 $ 181,962 $ 181,081 $ 881 Liabilities incurred — — — Liabilities settled (1,444) (1,192) (252) Accretion expense 11,310 11,236 74 Revisions to estimated cash flows (1) (8,407) (8,407) — Liability at December 31, 2020 183,421 182,718 703 Liabilities incurred 1,781 1,781 — Liabilities settled (142) (142) — Accretion expense 9,308 9,248 60 Revisions to estimated cash flows (2) 39,778 39,778 — Liability at December 31, 2021 234,146 233,383 763 Liabilities incurred — — — Liabilities settled — — — Accretion expense 10,767 10,702 65 Revisions to estimated cash flows (3) (21,536) (21,536) — Liability at December 31, 2022 $ 223,377 $ 222,549 $ 828 (1) Reflects a decrease of $9.2 million related to an updated PVNGS decommissioning study and an increase of $0.8 million related to an updated Four Corners decommissioning study. (2) Reflects impacts of newly approved remediation ordinance in San Juan county requiring the full demolition of SJGS. See Note 16. (3) Reflects a decrease of $21.5 million related to an updated SJGS decommissioning study. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 17. 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. Commitments and Contingencies Related to the Environment PVNGS Decommissioning Funding The costs of decommissioning a nuclear power plant are substantial. PNM is responsible for all decommissioning obligations related to its entire interest in PVNGS, including portions under leases both during and after termination of the leases. PNM has a program for funding its share of decommissioning costs for PVNGS, including portions held under leases. The nuclear decommissioning funding program is invested in equities and fixed income instruments in qualified and non-qualified trusts. PNM funded $1.3 million for each of the years ended December 31, 2022, 2021 and 2020 into the qualified trust funds. The fair value of the trusts at December 31, 2022 and 2021 was $325.3 million and $394.5 million. See Note 17 for additional discussion of PNM’s PVNGS Lease Abandonment Application. 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. APS has accepted the DOE’s extensions of the settlement agreement for recovery of costs incurred through December 31, 2025. 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 December 31, 2022 and 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 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 allows 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 has and 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 17 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 In 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. In 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. 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. On October 29, 2021, the US Supreme Court granted four petitions for writs of certiorari of the D.C. Circuit’s decision, and on June 30, 2022, the US Supreme Court held 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 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. 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 April 2023 and a final rule in June 2024. 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. NO X Standard – In 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. The State of New Mexico has attained the current NOx NAAQS standards. SO 2 Standard – In 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. 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 – In 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 is targeting the end of 2023 to complete this reconsideration. In 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 Four Corners is 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. On January 6, 2023, EPA announced a proposal to lower the annual fine particulate matter standard to between 9-10 µg/m3 but retain the rest of its PM standards, including the current daily fine particulate matter standard, the daily coarse particulate matter standard, and the secondary PM standards. Although the proposal focuses on the range of 9-10 µg/m3, EPA requests comment on a range between 8-11 µg/m3, but that range does not include the current annual standard of 12 µg/m3, indicating EPA will not consider retaining the current standard. Comments on the proposal will be due 60 days after publication in the Federal Register, and EPA’s current regulatory agenda indicates EPA plans to finalize the proposal in August 2023. PNM 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 Four Corners, seven options for meeting Best Technology Available (“BTA”) standards for reducing impingement. 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. EPA has indicated that it is contemplating a December 31, 2023 compliance deadline. With respect to SJGS, no material changes will result given the shutdown of the plant in September of 2022. In 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. 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. 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. 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 in 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 position, results of operations, or cash flows. Effluent Limitation Guidelines |
Regulatory and Rate Matters
Regulatory and Rate Matters | 12 Months Ended |
Dec. 31, 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 16. 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 22. PNM New Mexico General Rate Case 2024 Rate Change On December 5, 2022, PNM filed an application with the NMPRC for a general increase in retail electric rates. The requested change primarily reflects investments in transmission and distribution infrastructure, largely offset by cost reductions resulting from PNM’s transition to lower-cost, clean generation resources. Key aspects of PNM’s request are: • Recovery on total rate base of $2.7 billion, based on a calendar year 2024 FTY. • An increase of $63.8 million in retail non-fuel revenues • ROE of 10.25% • Drivers of revenue deficiency ◦ Needed investments in transmission, distribution, and generation facilities for six years of operations, covering 2019 through 2024. In particular, PNM is focused on expanding and improving its aging infrastructure to provide the underlying infrastructure crucial to a successful energy transition and to support distribution generation. ◦ Cost reductions from closing SJGS and the expiration of 114 MW leased PVNGS capacity. ◦ Lower-cost replacements for SJGS and PVNGS using renewable energy purchases and battery storage systems. Some of these costs will be reflected in PNM’s requested base rates, while energy purchases will flow through PNM’s FPPAC. ◦ Updated depreciation rates, including new terminal dates, for natural gas plants to align with the Company’s 2040 carbon-free portfolio goal. ◦ Proposed customer-oriented services, such as fee-free payment options, and increased payment location options to address the needs of customers. ◦ Increasing operating costs reflecting six years of inflation, including the impacts of today’s current high inflation and the expenses that come with providing quality electric service to customers. Distribution maintenance increases also are necessary to enhance vegetation management programs to protect lines and support wildfire mitigation efforts. PNM has endeavored to keep operating costs below inflationary levels. ◦ Increased energy sales and customer loads since PNM’s last filing help cover the increased cost of doing business as PNM continues the energy transition. ◦ Overall cost of capital based on PNM’s actual regulatory capital structure of 52% equity / 48% debt, reflecting the increase in the ROE that shareholders require to fund new investments in PNM’s system, which is partially offset by lower cost of debt. • Proposed ratemaking treatment of PVNGS Leased Interest and testimony supporting the prudence of PNM’s decisions to renew the five leases and repurchase 64.1 MW of PVNGS Unit 2 capacity regarding PVNGS; see PVNGS Lease Abandonment Application below. • Proposed return of the unamortized unprotected portion of excess deferred federal income taxes to customers over a five-year period, beginning when rates from the case go into effect. • Time-of-Day pilot proposal with the objective of incentivizing customers, through price signals, to use energy during the day when renewable generation is abundant. On December 14, 2022, the NMPRC suspended PNM’s advice notice in the case for a period of nine months beginning January 4, 2023 and appointed hearing examiners. On January 6, 2023, the hearing examiners issued an order setting out a procedural schedule with a hearing to begin June 20, 2023. On February 3, 2023, the hearing examiners issued a recommended decision recommending extension of the statutory suspension period for an additional three months. PNM is unable to predict the outcome of this matter. On January 3, 2023, a joint motion and brief for accounting order was filed with the NMPRC. NM AREA, Staff, WRA, Bernalillo County, NEE, and CCAE (the “Joint Movants”) jointly filed the motion which asked that the NMPRC issue an accounting order for the purpose of requiring PNM to create a regulatory liability to track the costs associated with the retirement of SJGS which are currently embedded in base rates. The Joint Movants requested that the NMPRC order PNM to track all costs associated with the running and management of SJGS totaling $98.3 million annually and requested that the accounting order require PNM to create a regulatory liability to track the SJGS costs from the time Unit 1 and Unit 4 were abandoned, July 1, 2022, and October 1, 2022, respectively, until the date new rates are put into effect, and for any other relief the NMPRC deems is just and reasonable. On February 3, 2023, the hearing examiners issued an order requiring PNM to create a pure accounting order regulatory liability that tracks cost of SJGS which are currently embedded in base rates. On February 6, 2023, PNM filed a motion to permit interlocutory appeal of the hearing examiners order requiring PNM to create a pure accounting order regulatory liability. On February 10, 2023, the hearing examiners issued an order denying PNM’s interlocutory appeal and clarified that the accounting order only required PNM to track the costs of SJGS. On February 14, 2023, NM AREA, Staff, WRA, ABCWUA, and CCAE filed a joint motion for clarification of the hearing examiners accounting order. For additional discussion on the retirement of SJGS and the associated accounting impacts see SJGS Abandonment Application discussion below. Renewable Energy Portfolio Standard As discussed in Note 16, 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 239.1 MW at December 31, 2022, owned by customers or third parties from whom PNM purchases any net excess output and RECs On June 1, 2021 PNM filed its 2022 renewable energy procurement plan which proposed to collect $66.9 million for the year. PNM did not propose any new procurements in the plan, but proposed to retire a small number of RECs in 2022 from resources that had not been previously approved as part of the RPS plan. The NMPRC assigned this matter to a hearing examiner and a hearing was held on September 30, 2021. On October 15, 2021, NMPRC Staff and PNM jointly filed the post-hearing brief stating that pending issues to the case had been resolved with PNM agreeing to certain compliance provisions. On October 30, 2021, the hearing examiner issued a recommended decision recommending approval of PNM’s filing. On November 17, 2021, the NMPRC issued a final order adopting the recommended decision. The 2022 renewable energy procurement plan became effective on January 1, 2022. On June 1, 2022, PNM filed its renewable energy procurement plan for 2023 which proposed to collect $61.0 million for the year. PNM did not propose 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. On November 9, 2022, the NMPRC issued a final order adopting the recommended decision. The 2023 renewable energy procurement plan became effective on January 1, 2023. The following sets forth PNM’s revenues recorded for the renewable energy rider: Year Ended Annual Revenues (In millions) 2020 $56.4 2021 61.7 2022 60.3 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 slightly exceeded this limitation in 2022 and accordingly, recorded a current regulatory liability on the Consolidated Balance Sheets and a reduction to electric operating revenues in the Consolidated Statement of Earnings as of and for the period ending December 31, 2022. PNM did not exceed the 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. The application also proposed an advanced metering infrastructure (“AMI”) pilot program, which included the installation of 5,000 AMI meters at a cost of $2.9 million. PNM proposed the pilot program to comply with an NMPRC order denying PNM’s February 2016 application to replace its existing customer metering equipment with AMI. PNM did not recommend the AMI pilot program due to the limited cost-effective benefits under a pilot structure. On September 17, 2020, the hearing examiner in the case issued a recommended decision recommending that PNM's proposed energy efficiency and load management program be approved, with the exception of the proposed AMI pilot program. On October 28, 2020, the NMPRC issued an order adopting the recommended decision in its entirety. 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. 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 alleged that PNM’s proposed rate adjustment mechanism is inconsistent with the EUEA. 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. On December 30, 2022, the hearing examiner issued an order requiring briefing on consolidation of this case into the 2024 Rate Change and PNM and other parties filed responses to the order on January 6, 2023. On January 27, 2023, the hearing examiner issued a recommended decision recommending that the FPPAC Continuation Application be consolidated into the 2024 Rate Change. On January 5, 2023, ABCWUA, Bernalillo County, CCAE, NEE, and WRA filed a joint motion to expand the scope of the case to include a prudence review. 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. On December 2, 2022, PNM filed an appeal with the NM Supreme Court of the NMPRC’s final order which adopted revisions to the IRP Rule. On January 3, 2023, PNM and two other investor-owned utilities filed statements of issues with the NM Supreme Court. PNM cannot predict the outcome of this matter. Abandonment Applications made under the ETA As discussed in Note 16, 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. 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. 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. 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 in 2021 was $36.9 million and $36.0 million reflected in other current liabilities and $36.9 million as a corresponding deferred regulatory asset on PNMR's and PNM's Consolidated Balance Sheets at December 31, 2021. In 2022, PNM made payments of $6.6 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 and PNMR's and PNM's Consolidated Balance Sheets at December 31, 2022 reflects other current liabilities of $0.7 million and deferred regulatory assets of $37.2 million. In addition, PNM recorded $1.6 million as Regulatory disallowance and restructuring costs on PNMR's and PNM's Consolidated Statements of Earnings for PNM's non-retail share of estimated severance in the year ended December 31, 2022. On September 29, 2022, SJGS was removed from service and as a result, PNM made the following adjustments reflected on the Consolidated Balance Sheets as of December 31, 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 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. On September 28, 2020, PNM filed an application for approval of the final executed contracts for the replacement resources, which was approved by the NMPRC on December 2, 2020. On October 14, 2022, PNM filed a motion for approval of amendments on a 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"). 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 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 order. On November 1, 2022, the NM Supreme Court issued an order continuing the partial stay of the rate credits during the pendency of the appeal. On November 15, 2022, PNM filed a supplemental compliance filing to its October 14, 2022 compliance filing. On November 21, 2022, NEE filed a motion for rehearing and to lift the stay and WRA, CCAE, Prosperity Works, the NMAG and Bernalillo County filed a joint motion for rehearing with the NM Supreme Court in PNM’s appeal of the NMPRC’s final order in the SJGS financing order to show cause. On December 22, 2022, the NM Supreme Court issued an order denying the motions for rehearing. PNM cannot predict the outcome of this matter. As required under GAAP, PNM evaluated the consequences of the NMPRC's June 29, 2022 order and the related NM Supreme Court appeal and order granting the stay, as well as the subsequent motions and the hearing examiners order filed in the 2024 Rate Change. Specifically |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Federal Income Tax Reform In 2017, comprehensive changes in U.S. 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. As a result of the change in the federal income tax rate, the Company re-measured and adjusted its deferred tax assets and liabilities as of December 31, 2017. The portion of that adjustment not related to PNM’s and TNMP’s regulated activities was recorded as a reduction in net deferred tax assets and an increase in income tax expense. The portion related to PNM’s and TNMP’s regulated activities was recorded as a reduction in net deferred tax liabilities and an increase in regulatory liabilities. Beginning February 2018, PNM’s NM 2016 Rate Case reflected 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. In the 2024 Rate Change, PNM has proposed returning the unamortized unprotected portion of excess deferred federal income taxes to customers over a five-year period, beginning when rates from the case go into effect. 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 amortized federal and state excess deferred income taxes of $23.6 million, $14.4 million, and $9.2 million in 2022. PNMR PNMR’s income taxes consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax $ — $ — $ — Current state income tax 1,597 1,835 231 Deferred federal income tax 18,413 20,679 17,574 Deferred state income tax 7,302 11,315 3,721 Amortization of accumulated investment tax credits (1,182) (1,247) (890) Total income taxes $ 26,130 $ 32,582 $ 20,636 PNMR’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 44,375 $ 51,330 $ 43,670 Amortization of accumulated investment tax credits (1,182) (1,247) (890) Amortization of excess deferred income tax (23,599) (24,484) (30,723) Flow-through of depreciation items 2,795 798 1,368 (Earnings) attributable to non-controlling interest in Valencia (3,176) (3,253) (2,943) State income tax, net of federal (benefit) 6,826 9,660 6,961 Allowance for equity funds used during construction (2,898) (2,776) (2,363) Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization — — 1,367 Allocation of tax (benefit) related to stock compensation awards 91 (788) (392) Non-deductible compensation 1,125 899 2,630 Transaction costs 74 848 — Other 1,699 1,595 1,951 Total income taxes $ 26,130 $ 32,582 $ 20,636 Effective tax rate 12.37 % 13.33 % 9.92 % The components of PNMR’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss $ 85,382 $ 32,441 Regulatory liabilities related to income taxes 98,371 120,651 Federal tax credit carryforwards 122,557 122,436 Regulatory disallowances 28,037 38,835 Other 33,849 34,812 Total deferred tax assets 368,196 349,175 Deferred tax liabilities: Depreciation and plant related (801,022) (787,295) Investment tax credit (96,227) (97,409) Regulatory assets related to income taxes (77,013) (78,211) Pension (40,651) (40,828) Regulatory asset for shutdown of SJGS Units 2 and 3 (24,048) (25,643) Regulatory asset SJGS investment (69,828) — Other (82,238) (84,639) Total deferred tax liabilities (1,191,027) (1,114,025) Net accumulated deferred income tax liabilities $ (822,831) $ (764,850) The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 57,981 Change in tax effects of income tax related regulatory assets and liabilities (7,546) Amortization of excess deferred income tax (23,599) Tax effect of mark-to-market adjustments (1,359) Tax effect of excess pension liability (645) Adjustment for uncertain income tax positions 1,439 Reclassification of unrecognized tax benefits (1,439) Other (299) Deferred income tax $ 24,533 PNM PNM’s income taxes (benefit) consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax (benefit) $ (13,533) $ — $ — Current state income tax (benefit) 3,244 (128) (585) Deferred federal income tax 25,298 18,774 20,125 Deferred state income tax 4,361 8,583 2,560 Amortization of accumulated investment tax credits (172) (237) (243) Total income taxes $ 19,198 $ 26,992 $ 21,857 PNM’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 29,026 $ 41,696 $ 38,193 Amortization of accumulated investment tax credits (172) (237) (243) Amortization of excess deferred income tax (14,421) (15,158) (21,609) Flow-through of depreciation items 2,641 689 1,279 (Earnings) attributable to non-controlling interest in Valencia (3,176) (3,253) (2,943) State income tax, net of federal (benefit) 5,694 7,609 7,111 Allowance for equity funds used during construction (1,958) (2,080) (1,461) Regulatory recovery of prior year impairment of state net operating loss carryforward, net of amortization — — 1,367 Allocation of tax (benefit) related to stock compensation awards 65 (563) (279) Non-deductible compensation 701 547 1,554 Transaction costs 10 22 — Other 788 (2,280) (1,112) Total income taxes $ 19,198 $ 26,992 $ 21,857 Effective tax rate 13.89 % 13.59 % 12.02 % The components of PNM’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss $ 54,681 $ 1,854 Regulatory liabilities related to income taxes 76,744 96,161 Federal tax credit carryforwards 84,902 86,811 Regulatory disallowance 28,037 38,835 Other 33,079 36,599 Total deferred tax assets 277,443 260,260 Deferred tax liabilities: Depreciation and plant related (620,814) (616,567) Investment tax credit (74,015) (74,187) Regulatory assets related to income taxes (67,912) (68,687) Pension (36,048) (36,283) Regulatory asset for shutdown of SJGS Units 2 and 3 (24,048) (25,643) Regulatory asset SJGS investment (69,828) — Other (66,818) (69,575) Total deferred tax liabilities (959,483) (890,942) Net accumulated deferred income tax liabilities $ (682,040) $ (630,682) The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 51,358 Change in tax effects of income tax related regulatory assets and liabilities (4,995) Amortization of excess deferred income tax (14,421) Tax effect of mark-to-market adjustments 1,462 Tax effect of excess pension liability (646) Adjustment for uncertain income tax positions 1,430 Reclassification of unrecognized tax benefits (4,701) Deferred income tax $ 29,487 TNMP TNMP’s income taxes consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax $ 17,055 $ 5,770 $ 12,048 Current state income tax 2,662 2,395 2,033 Deferred federal income tax (benefit) (4,527) (224) (7,744) Deferred state income tax (benefit) (29) (29) (29) Total income taxes $ 15,161 $ 7,912 $ 6,308 TNMP’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the periods shown. The differences are attributable to the following factors: Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 22,560 $ 15,076 $ 13,628 Amortization of excess deferred income tax (9,177) (9,326) (9,113) State income tax, net of federal (benefit) 2,103 1,763 1,625 Allocation of tax (benefit) related to stock compensation awards 26 (224) (112) Non-deductible compensation 422 351 1,071 Transaction costs 1 (4) — Other (774) 276 (791) Total income taxes $ 15,161 $ 7,912 $ 6,308 Effective tax rate 14.11 % 11.02 % 9.71 % The components of TNMP’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Regulatory liabilities related to income taxes $ 21,627 $ 24,490 Other 5,353 3,648 Total deferred tax assets 26,980 28,138 Deferred tax liabilities: Depreciation and plant related (166,230) (157,649) Regulatory assets related to income taxes (9,213) (9,525) Loss on reacquired debt (5,527) (5,799) Pension (4,603) (4,545) AMS (3,989) (5,249) Other (2,055) (2,619) Total deferred tax liabilities (191,617) (185,386) Net accumulated deferred income tax liabilities $ (164,637) $ (157,248) The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax (benefit) included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 7,389 Change in tax effects of income tax related regulatory assets and liabilities (2,552) Amortization of excess deferred income tax (9,177) Other (216) Deferred income tax (benefits) $ (4,556) Other Disclosures The Company is required to recognize only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. A reconciliation of unrecognized tax benefits is as follows: PNMR PNM TNMP (In thousands) Balance at December 31, 2019 $ 10,693 $ 7,776 $ 114 Additions based on tax positions related to 2020 2,286 2,286 — Additions for tax positions of prior years 173 168 5 Settlement payments — — — Balance at December 31, 2020 13,152 10,230 119 Additions based on tax positions related to 2021 305 295 11 Additions for tax positions of prior years 257 246 11 Settlement payments — — — Balance at December 31, 2021 13,714 10,771 141 Additions based on tax positions related to 2022 1,444 1,437 7 Additions (reductions) for tax positions of prior years (4) (7) 3 Settlement payments — — — Balance at December 31, 2022 $ 15,154 $ 12,201 $ 151 Included in the balance of unrecognized tax benefits at December 31, 2022 are $13.6 million, $10.6 million, and $0.2 million that, if recognized, would affect the effective tax rate for PNMR, PNM, and TNMP. The Company does not anticipate that any unrecognized tax expenses or unrecognized tax benefits will be reduced or settled in 2023. PNMR, PNM, and TNMP had no estimated interest income or expense related to income taxes for the years ended December 31, 2022, 2021, and 2020. There was no accumulated accrued interest receivable or payable related to income taxes as of December 31, 2022 and 2021. The Company files a federal consolidated and several consolidated and separate state income tax returns. The tax years prior to 2019 are closed to examination by either federal or state taxing authorities other than Arizona. The tax years prior to 2018 are closed to examination by Arizona taxing authorities. Other tax years are open to examination by federal and state taxing authorities and net operating loss carryforwards are open to examination for the years in which the carryforwards are utilized. At December 31, 2022, the Company has $382.0 million of federal net operating loss carryforwards that expire beginning in 2034 and $123.8 million of federal tax credit carryforwards that expire beginning in 2023. State net operating losses expire beginning in 2035 and vary from federal due to differences between state and federal tax law. The proposed Merger may impact the Company’s ability to utilize its federal net operating loss and tax credit carryforwards. In 2008, fifty percent bonus tax depreciation was enacted as a temporary two-year stimulus measure as part of the Economic Stimulus Act of 2008. Bonus tax depreciation in various forms has been extended since that time, including by the Protecting Americans from Tax Hikes Act of 2015. The 2015 act extended and phased-out bonus tax depreciation through 2019. As discussed above, the Tax Act eliminated bonus depreciation for utilities effective September 28, 2017. However, in 2020 the IRS issued regulations interpreting Tax Act amendments to depreciation provisions of the IRC which allowed the Company to claim a bonus depreciation deduction on certain construction projects placed in service after the third quarter of 2017. As a result of the net operating loss carryforwards for income tax purposes created by bonus depreciation, certain tax carryforwards were not expected to be utilized before their expiration. In addition, as a result of Tax Act changes to the deductibility of officer compensation, certain deferred tax benefits related to compensation are not expected to be realized. The Company has impaired the deferred tax assets for tax carryforwards which are not expected to be utilized and for compensation that is not expected to be deductible. The Company earns investment tax credits for construction or purchase of eligible property. The Company uses the deferral method of accounting for these investment tax credits. Impairments of tax attributes after reflecting the expiration of carryforwards under applicable tax laws, net of federal tax benefit, for 2020 through 2022 are as follows: PNMR PNM TNMP (In thousands) December 31, 2022: Federal tax credit carryforwards $ 187 $ 427 $ — Compensation expense $ 199 $ 140 $ 59 December 31, 2021: Federal tax credit carryforwards $ 1,029 $ — $ — Compensation expense $ 119 $ 84 $ 35 December 31, 2020: State tax credit carryforwards $ (425) $ — $ — Compensation expense $ 96 $ 61 $ 35 The tax effect of compensation that is not expected to be deductible and impairments of unexpired tax credits are reflected as a valuation allowance against deferred tax assets. The reserve balances, after reflecting expiration of carryforwards under applicable tax laws, at December 31, 2022 and 2021 are as follows: PNMR PNM TNMP (In thousands) December 31, 2022: Federal tax credit carryforwards $ 1,216 $ 427 $ — Compensation expense $ 725 $ 483 $ 241 December 31, 2021: Federal tax credit carryforwards $ 1,029 $ — $ — Compensation expense $ 526 $ 343 $ 182 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 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 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 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, 2020, PNMR performed a qualitative analysis for the PNM reporting unit and a quantitative analysis for the TNMP reporting unit. In addition to the typical considerations discussed above, the qualitative analysis considered changes in PNM’s expectations of future financial performance since the April 1, 2018 quantitative analysis as well as the 2019 qualitative analysis. 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, 2020 carrying value of PNM exceeded its fair value. Using the methods and considerations discussed above, the 2020 quantitative analysis 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, 2020 carrying value of TNMP exceeded its fair value. 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, 2020, as well as the quantitative analysis performed for TNMP at April 1, 2020. 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 values of PNM and TNMP exceeded their 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 Notes 16 and 17, including potential outcomes in PNM’s 2024 Rate Change, PNM’s San Juan Abandonment Application, PNM’s Four Corners Abandonment Application, PNM’s PVNGS Leased Interest 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions PNMR, 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 (Note 21), and PNM purchases renewable energy from certain NMRD-owned facilities at a fixed price per MWh of energy produced. PNM also provides interconnection services to PNMR Development and NMRD. PNMR files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PNMR and each of its affiliated companies. These agreements provide that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PNMR. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PNMR to the extent that PNMR is able to utilize those benefits. See Note 7 for information on intercompany borrowing arrangements. The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP: Year Ended December 31, 2022 2021 2020 (In thousands) Services billings: PNMR to PNM $ 115,415 $ 107,747 $ 100,872 PNMR to TNMP 42,293 41,798 39,053 PNM to TNMP 411 404 383 TNMP to PNMR 141 141 141 TNMP to PNM — — — PNMR to NMRD 308 221 260 Renewable energy purchases: PNM from NMRD 11,795 11,879 9,638 Interconnection and facility study billings: PNM to NMRD — 225 350 PNM to PNMR — — — PNMR to PNM — — — NMRD to PNM — 1,276 — Interest billings: PNMR to PNM 13 31 6 PNM to PNMR 249 144 255 PNMR to TNMP 166 — 2 Income tax sharing payments: PNMR to TNMP — — — PNMR to PNM — 19,492 — PNM to PNMR 11,602 — — TNMP to PNMR 8,341 12,842 15,820 |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investment In September 2017, PNMR Development and AEP OnSite Partners created NMRD to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. At December 31, 2022, NMRD’s renewable energy capacity in operation is 135.1 MW, which includes 130 MW of solar-PV facilities to supply energy to the Meta data center located within PNM’s service territory, 1.9 MW to supply energy to Columbus Electric Cooperative located in southwest New Mexico, 2.0 MW to supply energy to the Central New Mexico Electric Cooperative, and 1.2 MW of solar-PV facilities to supply energy to the City of Rio Rancho, New Mexico. PNMR accounts for its investment in NMRD using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR records as income its percentage share of earnings or loss of NMRD and carries its investment at cost, adjusted for its share of undistributed earnings or losses. During 2022, 2021, and 2020 PNMR Development and AEP OnSite Partners each made cash contributions of zero, zero, and $23.3 million to NMRD for its construction activities. In February 2021, NMRD paid both PNMR Development and AEP OnSite Partners a dividend of $3.0 million. PNMR Development’s cumulative equity in earnings of NMRD as of March 31, 2021 was $2.4 million and is presented as cash flows from operating activities on the Consolidated Statement of Cash Flows for the twelve months ending December 31, 2021. The portion of the dividend in excess of PNMR Development’s cumulative equity earnings of NMRD amounting to $0.6 million is presented as cash flows from investing activities. PNMR presents its share of net earnings from NMRD in other income on the Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows: December 31, 2022 2021 2020 (In thousands) Operating revenues $ 12,505 $ 12,738 $ 10,366 Operating expenses 9,591 9,733 7,476 Net earnings $ 2,914 $ 3,005 $ 2,890 Financial Position December 31, 2022 2021 (In thousands) Current assets $ 8,357 $ 10,729 Net property, plant, and equipment 169,440 166,495 Non-current assets 9,631 2,289 Total assets 187,428 179,513 Current liabilities 5,822 824 Non-current liabilities 366 373 Owners’ equity $ 181,240 $ 178,316 |
Merger
Merger | 12 Months Ended |
Dec. 31, 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. PNM has received approval from the NRC through May 25, 2023, and the FCC through September 5, 2023. On February 8, 2023, PNM submitted an extension with the FTC under the HSR Act and on February 10, 2023, a request for extension was submitted to the NRC. 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). |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent Company | SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF EARNINGS Year ended December 31, 2022 2021 2020 (In thousands) Operating Revenues $ — $ — $ — Operating Expenses 6,199 15,044 28,299 Operating (loss) (6,199) (15,044) (28,299) Other Income and Deductions: Equity in earnings of subsidiaries 197,860 221,004 211,291 Other income (loss) 663 362 (269) Net other income and (deductions) 198,523 221,366 211,022 Interest Charges 30,430 11,986 19,078 Earnings Before Income Taxes 161,894 194,336 163,645 Income Tax (Benefit) (7,636) (1,493) (9,130) Net Earnings $ 169,530 $ 195,829 $ 172,775 SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS Year Ended December 31, 2022 2021 2020 (In thousands) Cash Flows From Operating Activities: Net Cash Flows From Operating Activities $ (10,261) $ (28,514) $ (17,646) Cash Flows From Investing Activities: Utility plant additions 1,136 543 1,122 Investments in subsidiaries (70,200) (178,071) (301,000) Cash dividends from subsidiaries 153,500 60,000 99,187 Net cash flows from investing activities 84,436 (117,528) (200,691) Cash Flows From Financing Activities: Short-term borrowings (repayments) -affiliate, net (700) 6,400 — Revolving credit facility borrowings (repayments), net (45,500) 42,900 (131,900) Long-term borrowings 100,000 1,120,000 230,000 Repayment of long-term debt — (900,000) (50,000) Issuance of common stock — — 283,208 Proceeds from stock option exercise — — 24 Awards of common stock (7,980) (10,130) (11,984) Dividends paid (119,311) (112,444) (97,974) Other, net (686) (673) (3,064) Net cash flows from financing activities (74,177) 146,053 218,310 Change in Cash and Cash Equivalents (2) 11 (27) Cash and Cash Equivalents at Beginning of Period 63 52 79 Cash and Cash Equivalents at End of Period $ 61 $ 63 $ 52 Supplemental Cash Flow Disclosures: Interest paid, net of amounts capitalized $ 29,904 $ 13,425 $ 16,869 Income taxes paid (refunded), net $ (2,500) $ — $ — SCHEDULE I PNM RESOURCES, INC. CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS December 31, 2022 2021 (In thousands) Assets Cash and cash equivalents $ 61 $ 63 Intercompany receivables 55,304 45,954 Derivative instruments 11,108 — Income taxes receivable 1,298 18,674 Other current assets 83 247 Total current assets 67,854 64,938 Property, plant and equipment, net of accumulated depreciation of $17,721 and $16,585 21,513 22,649 Investment in subsidiaries 3,118,442 3,006,281 Other long-term assets 45,501 49,220 Total long-term assets 3,185,456 3,078,150 $ 3,253,310 $ 3,143,088 Liabilities and Stockholders’ Equity Short-term debt 9,400 54,900 Short-term debt-affiliate 14,519 15,219 Accrued interest and taxes 3,302 2,564 Dividends declared 31,544 — Other current liabilities 197 318 Total current liabilities 58,962 73,001 Long-term debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs 999,612 899,759 Other long-term liabilities 2,804 2,804 Total liabilities 1,061,378 975,564 Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) 1,429,102 1,429,257 Accumulated other comprehensive income (loss), net of income taxes (66,048) (71,936) Retained earnings 828,878 810,203 Total common stockholders’ equity 2,191,932 2,167,524 $ 3,253,310 $ 3,143,088 See Notes 7, 8, 11, and 16 for information regarding commitments, contingencies, and maturities of long-term debt. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II PNM RESOURCES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at Charged to Charged to Write-offs and other Balance at (In thousands) Allowance for credit losses, year ended December 31: 2020 $ 1,163 $ 3,527 $ 6,070 $ 2,427 $ 8,333 2021 $ 8,333 $ 4,663 $ 826 $ 6,557 $ 7,265 2022 $ 7,265 $ 3,758 $ — $ 6,098 $ 4,925 SCHEDULE II PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES A WHOLLY-OWNED SUBSIDIARY OF PNM RESOURCES, INC. VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at Charged to Charged to Write-offs and other Balance at (In thousands) Allowance for credit losses, year ended December 31: 2020 $ 1,163 $ 3,482 $ 6,070 $ 2,382 $ 8,333 2021 $ 8,333 $ 4,597 $ 826 $ 6,491 $ 7,265 2022 $ 7,265 $ 3,758 $ — $ 6,098 $ 4,925 SCHEDULE II TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES A WHOLLY-OWNED SUBSIDIARY OF PNM RESOURCES, INC. VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description Balance at Charged to Charged to Write-offs and other Balance at (In thousands) Allowance for credit losses, year ended December 31: 2020 $ — $ 45 $ — $ 45 $ — 2021 $ — $ 66 $ — $ 66 $ — 2022 $ — $ — $ — $ — $ — |
Summary of the Business and S_2
Summary of the Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Financial Statement Preparation and Presentation | Financial Statement Preparation and Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could ultimately differ from those estimated. The Notes to Consolidated Financial Statements include disclosures for PNMR, PNM, and TNMP. This report uses the term “Company” when discussing matters of common applicability to PNMR, PNM, and TNMP. Discussions regarding only PNMR, PNM, or TNMP are so indicated. Certain amounts in the 2021 and 2020 Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2022 financial statement presentation. GAAP defines subsequent events as events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Based on their nature, magnitude, and timing, certain subsequent events may be required to be reflected at the balance sheet date and/or required to be disclosed in the financial statements. The Company has evaluated subsequent events accordingly. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements of each of PNMR, PNM, and TNMP include their accounts and those of subsidiaries in which that entity owns a majority voting interest. PNM also consolidates Valencia (Note 10). PNM owns undivided interests in 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. |
Accounting for the Effects of Certain Types of Regulation | Accounting for the Effects of Certain Types of Regulation The Company maintains its accounting records in accordance with the uniform system of accounts prescribed by FERC and adopted by the NMPRC and PUCT. Certain of the Company’s operations are regulated by the NMPRC, PUCT, and FERC and the provisions of GAAP for rate-regulated enterprises are applied to the regulated operations. Regulators may assign costs to accounting periods that differ from accounting methods applied by non-regulated utilities. When it is probable that regulators will permit recovery of costs through future rates, costs are deferred as regulatory assets that otherwise would be expensed. Likewise, regulatory liabilities are recognized when it is probable that regulators will require refunds through future rates or when revenue is collected for expenditures that have not yet been incurred. GAAP also provides for the recognition of revenue and regulatory assets and liabilities associated with “alternative revenue programs” authorized by regulators. Such programs allow the utility to adjust future rates in response to past activities or completed events, if certain criteria are met. Regulatory assets and liabilities are amortized into earnings over the authorized recovery period. Accordingly, the Company has deferred certain costs and recorded certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. Information on regulatory assets and regulatory liabilities is contained in Note 13. In some circumstances, regulators allow a requested increase in rates to be implemented, subject to refund, before the regulatory process has been completed and a decision rendered by the regulator. When this occurs, the Company assesses the possible outcomes of the rate proceeding. The Company records a provision for refund to the extent the amounts being collected, subject to refund, exceed the amount the Company determines is probable of ultimately being allowed by the regulator. |
Cash and Restricted Cash | Cash and Restricted Cash Cash deposits received and held for a period of time that are restricted to a specific purpose, under the terms of their effective agreements, are considered restricted cash. Investments in highly liquid investments with original maturities of three months or less at the date of purchase are considered cash and cash equivalents. At December 31, 2022 and 2021 there was no restricted cash for PNMR, PNM, and TNMP. |
Utility Plant | Utility Plant Utility plant is stated at original cost and includes capitalized payroll-related costs such as taxes, pension, other fringe benefits, administrative costs, and AFUDC, where authorized by rate regulation, or capitalized interest. Repairs, including major maintenance activities, and minor replacements of property are expensed when incurred, except as required by regulators for ratemaking purposes. Major replacements are charged to utility plant. Gains, losses, and costs to remove resulting from retirements or other dispositions of regulated property in the normal course of business are credited or charged to accumulated depreciation. PNM and TNMP may receive reimbursements, referred to as CIAC, from customers to pay for all or part of certain construction projects to the extent the project does not benefit regulated customers in general. PNM and TNMP account for these reimbursements as offsets to utility plant additions based on the requirements of the NMPRC, FERC, and PUCT. Due to the PUCT’s regulatory treatment of CIAC reimbursements, TNMP also receives a financing component that is recognized as other income on the Consolidated Statements of Earnings. Under the NMPRC regulatory treatment, PNM typically does not receive a financing component. |
Depreciation and Amortization | Depreciation and AmortizationPNM’s provision for depreciation and amortization of utility plant, other than nuclear fuel, is based upon straight-line rates approved by the NMPRC and FERC. Amortization of nuclear fuel is based on units-of-production. TNMP’s provision for depreciation and amortization of utility plant is based upon straight-line rates approved by the PUCT. Depreciation and amortization of non-utility property, including right-of-use assets for finance leases as discussed in Note 8, is computed based on the straight-line method. The provision for depreciation of certain equipment is allocated between operating expenses and construction projects based on the use of the equipment. |
Allowance for Funds Used During Construction | Allowance for Funds Used During Construction As provided by the FERC uniform systems of accounts, AFUDC is charged to regulated utility plant for construction projects. This allowance is designed to enable a utility to capitalize financing costs during periods of construction of property subject to rate regulation. It represents the cost of borrowed funds (allowance for borrowed funds used during construction or |
Materials, Supplies, and Fuel Stock | Materials, Supplies, and Fuel StockMaterials and supplies relate to transmission, distribution, and generating assets. Materials and supplies are charged to inventory when purchased and are expensed or capitalized as appropriate when issued. Materials and supplies are valued using an average costing method. Coal is valued using a rolling weighted average costing method that is updated based on the current period cost per ton. Average cost is equal to net realizable value under the ratemaking process. |
Investments | Investments PNM holds investment securities in the NDT for the purpose of funding its share of the decommissioning costs of PVNGS, a trust for PNM’s share of decommissioning costs at SJGS, and trusts for PNM’s share of final reclamation costs related to the coal mines that served SJGS and continue to serve Four Corners (Note 16). Investments (both equity and available-for-sale debt securities) are measured at fair value on a quarterly basis with changes in fair value for equity securities recognized in earnings for that period. Since third party investment managers have sole discretion over the purchase and sale of the securities (under general guidelines and targets provided by management), PNM records an impairment, as a realized loss, for any available-for-sale debt security that has a fair value which is less than cost at the end of each quarter. For the years ended December 31, 2022, 2021 and 2020, PNM recorded impairment losses on the available-for-sale debt securities of $25.8 million, $(0.7) million and $3.2 million. No gains or losses are deferred as regulatory assets or liabilities. See Notes 3 and 9. All investments are held in PNM’s name and are in the custody of major financial institutions. The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in other income and deductions. |
Equity Method Investment | Equity Method InvestmentPNMR accounts for its investment in NMRD using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR records as income its percentage share of earnings or loss of NMRD and carries its investment at cost, adjusted for its share of undistributed earnings or losses. |
Goodwill | Goodwill The Company does not amortize goodwill. Goodwill is evaluated for impairment annually, or more frequently if events and circumstances indicate that the goodwill might be impaired. |
Asset Impairment | Asset Impairment Tangible long-lived assets and right-of-use assets associated with leases are evaluated in relation to the estimated future undiscounted cash flows to assess recoverability when events and circumstances indicate that the assets might be impaired. |
Amortization of Debt Acquisition Costs | Amortization of Debt Acquisition Costs Discount, premium, and expense related to the issuance of long-term debt are amortized over the lives of the respective issues. Gains and losses incurred upon the early retirement of long-term debt are recognized in other income or other deductions, except for amounts recoverable through NMPRC, FERC, or PUCT regulation, which are recorded as regulatory assets or liabilities and amortized over the lives of the respective issues. Unamortized premium, discount, and expense related to long-term debt are reflected as part of the related liability on the Consolidated Balance Sheets. |
Derivatives | Derivatives The Company records derivative instruments, including energy contracts, on the balance sheet as either an asset or liability measured at their fair value. Changes in the derivatives’ fair value are recognized in earnings unless specific hedge accounting criteria are met. PNM also records certain commodity derivative transactions recoverable through NMPRC regulation as regulatory assets or liabilities. See Note 9. Accounting for Derivatives Under derivative accounting and related rules for energy contracts, PNM accounts for its various instruments for the purchase and sale of energy, which meet the definition of a derivative, based on PNM’s intent. During the years ended December 31, 2022, 2021, and 2020, PNM was not hedging its exposure to the variability in future cash flows from commodity derivatives through designated cash flow 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. |
Decommissioning and Reclamation Costs | Decommissioning and Reclamation Costs PNM is only required to recognize and measure decommissioning liabilities for tangible long-lived assets for which a legal obligation exists. Nuclear decommissioning costs and related accruals are based on periodic site-specific estimates of the costs for removing all radioactive and other structures at PVNGS and are dependent upon numerous assumptions, including estimates of future decommissioning costs at current price levels, inflation rates, and discount rates. PNM’s accruals for PVNGS Units 1, 2, and 3, including portions held under leases, have been made based on such estimates, the guidelines of the NRC, and the PVNGS license periods. PNM records its share of the SJGS decommissioning obligation as an ARO on its Consolidated Balance Sheets. Studies on the decommissioning costs of SJGS are performed periodically and revisions to the ARO liability are recorded. See Note 16. |
Environmental Costs | Environmental Costs The normal operations of the Company involve activities and substances that expose the Company to potential liabilities under laws and regulations protecting the environment. Liabilities under these laws and regulations can be material and may be imposed without regard to fault, or may be imposed for past acts, even though the past acts may have been lawful at the time they occurred. |
Income Taxes | Income Taxes Income taxes are recognized using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis. All deferred taxes are reflected as non-current on the Consolidated Balance Sheets. Current NMPRC, FERC, and PUCT approved rates include the tax effects of the majority of these differences. Rate-regulated enterprises are required to record deferred income taxes for temporary differences accorded flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded based on the expected cash flow to be reflected in future rates. Because the NMPRC, FERC, and the PUCT have consistently permitted the recovery of tax effects previously flowed-through earnings, the Company has established regulatory assets and liabilities offsetting such deferred tax assets and liabilities. The Company recognizes only the impact of tax positions that, based on their merits, are more likely than not to be sustained upon an IRS audit. The Company defers investment tax credits and amortizes them over the estimated useful lives of the assets. See Note 18 for additional information, including a discussion of the impacts of the Tax Act. The Company makes an estimate of its anticipated effective tax rate for the year as of the end of each quarterly period within its fiscal year. In interim periods, income tax expense is calculated by applying the anticipated annual effective tax rate to year-to-date earnings before taxes. Certain unusual or infrequently occurring items, as well as adjustments due to enactment of new tax laws, have been excluded from the estimated annual effective tax rate calculation. |
New Accounting Pronouncements | New Accounting Pronouncements Information concerning a recently issued accounting pronouncement that has not yet been adopted by the Company is presented below. The Company does not expect difficulty in adopting this standard by its required effective date. Accounting Standards Update 2022-03 - Fair Value Measurement (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03 clarifying that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and, therefore, is not considered in measuring fair value. The amendment also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Disclosure requirements from the amendment include disclosure of the fair value of equity securities subject to contractual sale restrictions that are reflected in the balance sheet; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). ASU 2022-03 is effective for the Company beginning January 1, 2024 with early adoption for both interim and annual periods being permitted. ASU 2022-03 is to be applied prospectively with any adjustments recognized in earnings and disclosed on the date of adoption. |
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 through 2022. 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. |
Revenue Recognition | Retail electric operating revenues are recorded in the period of energy delivery, which includes estimated amounts for service rendered but unbilled at the end of each accounting period. The determination of the energy sales billed to individual retail customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading and the corresponding unbilled revenue are estimated. Unbilled electric revenue is estimated based on daily generation volumes, estimated customer usage by class, line losses, historical trends and experience, applicable customer rates or by using AMS data where available. Amounts billed are generally due within the next month. The Company does not incur incremental costs to obtain contracts for its energy services. PNM’s wholesale electricity sales are recorded as electric operating revenues and wholesale electricity purchases are recorded as costs of energy sold. Derivative contracts that are subject to unplanned netting are recorded net in earnings. A “book-out” is the planned or unplanned netting of off-setting purchase and sale transactions. A book-out is a transmission mechanism to reduce congestion on the transmission system or administrative burden. For accounting purposes, a book-out is the recording of net revenues upon the settlement of a derivative contract. Unrealized gains and losses on derivative contracts that are not designated for hedge accounting are classified as economic hedges. Economic hedges are defined as derivative instruments, including long-term power and fuel supply agreements, used to hedge generation assets and purchased power costs. Changes in the fair value of economic hedges are reflected in results of operations, with changes related to economic hedges on sales included in operating revenues and changes related to economic hedges on purchases included in cost of energy sold. See Note 9. The Company has collaborative arrangements related to its interest in SJGS, Four Corners, PVNGS, and Luna. The Company has determined that during the years ended December 31, 2022, 2021, and 2020 none of the joint owners in its collaborative arrangements were customers under Topic 606. The Company will continue to evaluate transactions between collaborative arrangement participants in future periods under the revenue recognition standard. PNM and TNMP recognize revenue as they satisfy performance obligations, which typically occurs as the customer or end-user consumes the electric service provided. Electric services are typically for a bundle of services that are distinct and transferred to the end-user in one performance obligation measured by KWh or KW. Electric operating revenues are recorded in the period of energy delivery, including estimated unbilled amounts. The Company has elected to exclude all sales and similar taxes from revenue. Revenue from contracts with customers is recorded based upon the total authorized tariff or market price at the time electric service is rendered, including amounts billed under arrangements qualifying as an Alternative Revenue Program (“ARP”). ARP arrangements are agreements between PNM or TNMP and its regulator that allow PNM or TNMP to adjust future rates in response to past activities or completed events, if certain criteria are met. ARP revenues are required to be reported separately from contracts with customers. ARP revenues in a given period include the recognition of “originating” ARP revenues (i.e. when the regulator-specific conditions are met) in the period, offset by the reversal of ARP revenues when billed to customers. Sources of Revenue Additional information about the nature of revenues is provided below. Additional information about matters affecting PNM’s and TNMP’s regulated revenues is provided in Note 17. Revenue from Contracts with Customers PNM NMPRC Regulated Retail Electric Service – PNM provides electric generation, transmission, and distribution service to its rate-regulated customers in New Mexico. PNM’s retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. Customer rates for retail electric service are set by the NMPRC and revenue is recognized as energy is delivered to the customer. PNM invoices customers on a monthly basis for electric service and generally collects billed amounts within one month. Transmission Service to Third Parties – PNM owns transmission lines that are interconnected with other utilities in New Mexico, Texas, Arizona, Colorado, and Utah. Transmission customers receive service for the transmission of energy owned by the customer utilizing PNM’s transmission facilities. Customers generally receive transmission services, which are regulated by FERC, from PNM through PNM’s Open Access Transmission Tariff (“OATT”) or a specific contract. Customers are billed based on capacity and energy components on a monthly basis. In December 2021, PNM completed the purchase of the Western Spirit Line and services under related transmission agreements were initiated using an incremental rate, approved by FERC, that are separate from the formula rate mechanism. Wholesale Energy Sales – PNM engages in activities to optimize its existing jurisdictional assets and long-term power agreements through spot market, hour-ahead, day-ahead, week-ahead, month-ahead, and other sales of excess generation not required to fulfill retail load and contractual commitments. PNM began participating in the EIM in 2021. The EIM is a real-time wholesale energy trading market operated by the CAISO that enables participating electric utilities to buy and sell energy. The NMPRC granted PNM authority to seek recovery of costs associated with joining the EIM, which have been included in the 2024 Rate Change and to pass the benefits of participating in EIM to customers through the FPPAC. PNM’s participation in EIM has significantly increased Electric operating revenues which are passed on to customers under PNM’s FPPAC with no impact to net earnings. Beginning on January 1, 2018, PNM acquired a 65 MW interest in SJGS Unit 4, which was held as merchant plant as ordered by the NMPRC. PNM sold power from 36 MW of this capacity to a third party at a fixed price that was recorded as revenue from contracts with customers. PNM was obligated to deliver power under this arrangement 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. TNMP PUCT Regulated Retail Electric Service – TNMP provides transmission and distribution services in Texas under the provisions of TECA and the Texas Public Utility Regulatory Act. TNMP is subject to traditional cost-of-service regulation with respect to rates and service under the jurisdiction of the PUCT and certain municipalities. TNMP’s transmission and distribution activities are solely within ERCOT and not subject to traditional rate regulation by FERC. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service territory. Revenue is recognized as energy is delivered to the consumer. TNMP invoices REPs on a monthly basis and is generally paid within a month. TCOS – TNMP is a transmission service provider that is allowed to recover its TCOS through a network transmission rate that is approved by the PUCT. TCOS customers are other utilities that receive service for the transmission of energy owned by the customer utilizing TNMP’s transmission facilities. Alternative Revenue Programs The Company defers certain costs and records certain liabilities pursuant to the rate actions of the NMPRC, PUCT, and FERC. ARP revenues, which are discussed above, include recovery or refund provisions under PNM’s renewable energy rider and true-ups to PNM’s formula transmission rates; TNMP’s AMS surcharge, transmission cost recovery factor, and the impacts of the PUCT’s January 25, 2018 order regarding the change in the federal corporate income tax rate; and the energy efficiency incentive bonus at both PNM and TNMP. Regulatory assets and liabilities are recognized for the difference between ARP revenues and amounts billed under those programs. Regulatory assets and liabilities are amortized into earnings as amounts are billed. TNMP’s 2018 Rate Case integrated AMS costs into base rates beginning January 1, 2019. These costs are being amortized into earnings as alternative revenues over a period of five years. Other Electric Operating Revenues Other electric operating revenues consist primarily of PNM’s economic hedges that meet the definition of a derivative, and are therefore not considered revenue from contracts with customers. Derivative revenues include gains and losses representing changes in fair value (Note 9) and settlements from sales of electricity under forward sales contracts. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit LossesAccounts 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. |
Fair Value of Derivatives | 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 December 31, 2022 and 2021. Management of the Company independently verifies the information provided by pricing services. |
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. |
Pension and Other Postretirement Benefits | PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of the periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Participants in the PNM Plans include eligible employees and retirees of PNMR and PNM. Participants in the TNMP Plans include eligible employees and retirees of TNMP. The PNM pension plan was frozen at the end of 1997 with regard to new participants, salary levels, and benefits. Through December 31, 2007, additional credited service could be accrued under the PNM pension plan up to a limit determined by age and service. The TNMP pension plan was frozen at December 31, 2005 with regard to new participants, salary levels, and benefits. A plan sponsor is required to (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. Unrecognized prior service costs and unrecognized gains or losses are required to be recorded in AOCI and subsequently amortized. To the extent the amortization of these items will ultimately be recovered or returned through future rates, PNM and TNMP record the costs as a regulatory asset or regulatory liability. The amortization of these incurred costs is included as pension and postretirement benefit periodic cost or income in subsequent years. The Company maintains trust funds for the pension and OPEB plans from which benefits are paid to eligible employees and retirees. The Company’s funding policy is to make contributions to the trusts, as determined by an independent actuary, that comply with minimum guidelines of the Employee Retirement Income Security Act and the IRC. Information concerning the fair value of investments is contained in Note 9. The Company has in place a policy that defines the investment objectives, establishes performance goals of asset managers, and provides procedures for the manner in which investments are to be reviewed. The plans implement investment strategies to achieve the following objectives: • Implement investment strategies commensurate with the risk that the Corporate Investment Committee deems appropriate to meet the obligations of the pension plans and OPEB plans, minimize the volatility of expense, and account for contingencies • Transition asset mix over the long-term to a higher proportion of high-quality fixed income investments as the plans’ funded statuses improve |
Commitments and Contingencies | There are various claims and lawsuits pending against the Company. In addition, the Company is subject to federal, state, and local environmental laws and regulations and periodically participates in the investigation and remediation of various sites. In addition, the Company periodically enters into financial commitments in connection with its business operations. Also, the Company is involved in various legal and regulatory proceedings in the normal course of its business. See Note 17. 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 |
Summary of the Business and S_3
Summary of the Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Average Rates Used Allocated Between Depreciation Expense and Construction Expense Projects Based on Use of Equipment | Average straight-line rates used were as follows: Year ended December 31, 2022 2021 2020 PNM Electric plant 2.55 % 2.48 % 2.47 % Common, intangible, and general plant 7.83 % 7.91 % 7.65 % TNMP 3.72 % 3.88 % 3.95 % |
Schedule of Inventory | Inventories consisted of the following at December 31: PNMR PNM TNMP 2022 2021 2022 2021 2022 2021 (In thousands) Coal $ 985 $ 2,973 $ 985 $ 2,973 $ — $ — Materials and supplies 65,748 62,088 54,905 54,969 10,843 7,119 $ 66,733 $ 65,061 $ 55,890 $ 57,942 $ 10,843 $ 7,119 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segments | The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP. 2022 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,766,825 $ 482,730 $ — $ 2,249,555 Cost of energy 864,013 123,928 — 987,941 Utility margin 902,812 358,802 — 1,261,614 Other operating expenses 460,513 124,519 (22,031) 563,001 Depreciation and amortization 180,812 98,316 25,725 304,853 Operating income (loss) 261,487 135,967 (3,694) 393,760 Interest income 14,816 — 1,279 16,095 Other income (deductions) (77,012) 8,653 (2,278) (70,637) Interest charges (61,073) (37,192) (29,643) (127,908) Segment earnings (loss) before income taxes 138,218 107,428 (34,336) 211,310 Income taxes (benefit) 19,198 15,161 (8,229) 26,130 Segment earnings (loss) 119,020 92,267 (26,107) 185,180 Valencia non-controlling interest (15,122) — — (15,122) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 103,370 $ 92,267 $ (26,107) $ 169,530 At December 31, 2022: Total Assets $ 6,272,166 $ 2,746,601 $ 238,610 $ 9,257,377 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2021 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,362,020 $ 417,853 $ — $ 1,779,873 Cost of energy 531,786 113,067 — 644,853 Utility margin 830,234 304,786 — 1,135,020 Other operating expenses 438,372 114,228 (9,840) 542,760 Depreciation and amortization 170,365 90,440 23,302 284,107 Operating income (loss) 221,497 100,118 (13,462) 308,153 Interest income 14,605 — 57 14,662 Other income (deductions) 13,809 5,408 (726) 18,491 Interest charges (51,360) (33,735) (11,782) (96,877) Segment earnings (loss) before income taxes 198,551 71,791 (25,913) 244,429 Income taxes (benefit) 26,992 7,912 (2,322) 32,582 Segment earnings (loss) 171,559 63,879 (23,591) 211,847 Valencia non-controlling interest (15,490) — — (15,490) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 155,541 $ 63,879 $ (23,591) $ 195,829 At December 31, 2021: Total Assets $ 6,060,133 $ 2,364,772 $ 241,980 $ 8,666,885 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 2020 PNM TNMP Corporate PNMR Consolidated (In thousands) Electric operating revenues $ 1,139,834 $ 383,178 $ — $ 1,523,012 Cost of energy 345,167 102,074 — 447,241 Utility margin 794,667 281,104 — 1,075,771 Other operating expenses 414,445 104,852 (4,419) 514,878 Depreciation and amortization 165,325 87,799 22,488 275,612 Operating income (loss) 214,897 88,453 (18,069) 285,281 Interest income (loss) 14,469 — (246) 14,223 Other income (deductions) 17,120 6,828 (1,108) 22,840 Interest charges (64,615) (30,388) (19,389) (114,392) Segment earnings (loss) before income taxes 181,871 64,893 (38,812) 207,952 Income taxes (benefit) 21,857 6,308 (7,529) 20,636 Segment earnings (loss) 160,014 58,585 (31,283) 187,316 Valencia non-controlling interest (14,013) — — (14,013) Subsidiary preferred stock dividends (528) — — (528) Segment earnings (loss) attributable to PNMR $ 145,473 $ 58,585 $ (31,283) $ 172,775 At December 31, 2020: Total Assets $ 5,581,033 $ 2,132,580 $ 226,241 $ 7,939,854 Goodwill $ 51,632 $ 226,665 $ — $ 278,297 |
Public Utilities General Disclosures | Reconciliations between utility margin and gross margin are presented below. PNM TNMP Corporate and Other PNMR Consolidated (In thousands) 2022 Gross margin $ 516,375 $ 224,080 $ — $ 740,455 Energy production costs 147,347 — — 147,347 Transmission and distribution costs 58,278 36,406 — 94,684 Depreciation and amortization 180,812 98,316 — 279,128 1 Utility margin $ 902,812 $ 358,802 $ — $ 1,261,614 2021 Gross margin $ 466,092 $ 182,857 $ — $ 648,949 Energy production costs 143,931 — — 143,931 Transmission and distribution costs 49,846 31,489 — 81,335 Depreciation and amortization 170,365 90,440 — 260,805 1 Utility margin $ 830,234 $ 304,786 $ — $ 1,135,020 2020 Gross margin $ 441,831 $ 164,896 $ — $ 606,727 Energy production costs 137,977 — — 137,977 Transmission and distribution costs 49,534 28,409 — 77,943 Depreciation and amortization 165,325 87,799 — 253,124 1 Utility margin $ 794,667 $ 281,104 $ — $ 1,075,771 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. |
Schedule of Major Customers | Two REPs accounted for more than 10% of the electric operating revenues of TNMP during the year ended December 31, 2022 and three REPs during the years ended December 31, 2021 and 2020 as follows: Year Ended December 31, 2022 2021 2020 REP A 27 % 23 % 21 % REP B 20 % 19 % 18 % REP C N/A 10 % 11 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Information regarding AOCI is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Gains on Available-for-Sale Securities Pension Total Fair Value Adjustment for Cash Flow Hedges Total (In thousands) Balance at December 31, 2019 $ 10,638 $ (109,693) $ (99,055) $ (322) $ (99,377) Amounts reclassified from AOCI (pre-tax) (9,497) 8,300 (1,197) (1,740) (2,937) Income tax impact of amounts reclassified 2,412 (2,108) 304 442 746 Other OCI changes (pre-tax) 22,586 6,149 28,735 1,271 30,006 Income tax impact of other OCI changes (5,736) (1,562) (7,298) (323) (7,621) Net after-tax change 9,765 10,779 20,544 (350) 20,194 Balance at December 31, 2020 20,403 (98,914) (78,511) (672) (79,183) Amounts reclassified from AOCI (pre-tax) (9,765) 8,348 (1,417) (903) (2,320) Income tax impact of amounts reclassified 2,480 (2,120) 360 229 589 Other OCI changes (pre-tax) (1,881) 12,111 10,230 1,804 12,034 Income tax impact of other OCI changes 478 (3,076) (2,598) (458) (3,056) Net after-tax change (8,688) 15,263 6,575 672 7,247 Balance at December 31, 2021 11,715 (83,651) (71,936) — (71,936) Amounts reclassified from AOCI (pre-tax) (3,827) 7,104 3,277 (1,176) 2,101 Income tax impact of amounts reclassified 972 (1,804) (832) 299 (533) Other OCI changes (pre-tax) (1,928) (4,565) (6,493) 12,285 5,792 Income tax impact of other OCI changes 490 1,159 1,649 (3,121) (1,472) Net after-tax change (4,293) 1,894 (2,399) 8,287 5,888 Balance at December 31, 2022 $ 7,422 $ (81,757) $ (74,335) $ 8,287 $ (66,048) The following table presents pre-tax information about net actuarial (gain) loss in AOCI as of December 31, 2022. PNM TNMP (In thousands) Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year $ 112,063 $ — Experience loss 27,531 4,602 Regulatory asset (liability) adjustment (22,282) (4,602) Amortization recognized in net periodic benefit (income) (6,967) — Amounts in AOCI not yet recognized in net periodic benefit cost at end of year $ 110,345 $ — The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2022. December 31, 2022 PNM TNMP (In thousands) Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year $ 1,816 $ — Experience (gain) (1,628) (2) Regulatory asset adjustment 944 2 Amortization recognized in net periodic benefit (income) (137) — Amount in AOCI not yet recognized in net periodic benefit cost at end of year $ 995 $ — |
Electric Operating Revenues (Ta
Electric Operating Revenues (Tables) | 12 Months Ended |
Dec. 31, 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. The table also reflects ARP revenues and other revenues. PNM TNMP PNMR Consolidated Year Ended December 31, 2022 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 484,699 $ 187,951 $ 672,650 Commercial 422,163 154,059 576,222 Industrial 85,102 36,919 122,021 Public authority 21,330 6,379 27,709 Economy energy service 45,009 — 45,009 Transmission 149,421 113,782 263,203 Wholesale energy sales 534,196 — 534,196 Miscellaneous 5,390 3,817 9,207 Total revenues from contracts with customers 1,747,310 502,907 2,250,217 Alternative revenue programs 692 (20,177) (19,485) Other electric operating revenues 18,823 — 18,823 Total Electric Operating Revenues $ 1,766,825 $ 482,730 $ 2,249,555 Year Ended December 31, 2021 Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 484,720 $ 158,796 $ 643,516 Commercial 419,251 125,536 544,787 Industrial 88,479 29,089 117,568 Public authority 22,720 6,142 28,862 Economy energy service 35,220 — 35,220 Transmission 87,880 94,152 182,032 Wholesale energy sales 184,132 — 184,132 Miscellaneous 4,770 3,794 8,564 Total revenues from contracts with customers 1,327,172 417,509 1,744,681 Alternative revenue programs (4,108) 344 (3,764) Other electric operating revenues 38,956 — 38,956 Total Electric Operating Revenues $ 1,362,020 $ 417,853 $ 1,779,873 PNM TNMP PNMR Consolidated Year Ended December 31, 2020 (In thousands) Electric Operating Revenues: Contracts with customers: Retail electric revenue Residential $ 482,852 $ 158,066 $ 640,918 Commercial 392,257 118,243 510,500 Industrial 90,845 27,367 118,212 Public authority 23,126 5,853 28,979 Economy energy service 15,911 — 15,911 Transmission 59,856 78,374 138,230 Wholesale energy sales 50,277 — 50,277 Miscellaneous 5,456 3,738 9,194 Total revenues from contracts with customers 1,120,580 391,641 1,512,221 Alternative revenue programs (3,531) (8,463) (11,994) Other electric operating revenues 22,785 — 22,785 Total Electric Operating Revenues $ 1,139,834 $ 383,178 $ 1,523,012 |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share and Dividends per Share | Information regarding the computation of earnings per share and dividends per share is as follows: Year Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Net Earnings Attributable to PNMR $ 169,530 $ 195,829 $ 172,775 Average Number of Common Shares: Outstanding during year 85,835 85,835 79,941 Vested awards of restricted stock 287 235 216 Average Shares – Basic 86,122 86,070 80,157 Dilutive Effect of Common Stock Equivalents: PNMR 2020 Forward Equity Sale Agreements — — 106 Stock options and restricted stock 47 41 40 Average Shares – Diluted 86,169 86,111 80,303 Net Earnings Attributable to PNMR Per Share of Common Stock: Basic $ 1.97 $ 2.28 $ 2.16 Diluted $ 1.97 $ 2.27 $ 2.15 Dividends Declared per Common Share $ 1.41 $ 1.33 $ 1.25 |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short-term debt outstanding consists of: December 31, Short-term Debt 2022 2021 (In thousands) PNM: PNM Revolving Credit Facility $ 145,900 $ 7,400 PNM New Mexico Credit Facility 40,000 — 185,900 7,400 TNMP Revolving Credit Facility 36,700 400 PNMR: PNMR Revolving Credit Facility 9,400 54,900 $ 232,000 $ 62,700 |
Schedule of Long-term Debt Instruments | Information concerning long-term debt outstanding and unamortized (premiums), discounts, and debt issuance costs is as follows: December 31, 2022 December 31, 2021 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) PNM Debt Senior Unsecured Notes, Pollution Control Revenue Bonds: 2.15% due April 2033 $ 146,000 $ 915 $ 146,000 $ 1,003 2.125% due June 2040, mandatory tender - June 1, 2022 — — 37,000 45 3.00% due June 2040, mandatory tender - June 1, 2024 37,000 296 — — 2.45% due September 2042, mandatory tender - June 1, 2022 — — 20,000 17 0.875% due October 2026 100,345 550 100,345 697 1.05% due January 2038, mandatory tender - June 1, 2022 — — 36,000 75 3.00% due January 2038, mandatory tender - June 1, 2024 36,000 288 — — 1.20% due June 2040, mandatory tender - June 1, 2022 — — 11,500 24 1.10% due June 2040, mandatory tender June 1, 2023 130,000 178 130,000 535 1.15% due June 2040, mandatory tender - June 1, 2024 125,000 383 125,000 639 Senior Unsecured Notes: 3.15% due May 2023 55,000 29 55,000 106 3.45% due May 2025 104,000 248 104,000 353 3.85% due August 2025 250,000 775 250,000 1,075 3.68% due May 2028 88,000 333 88,000 395 3.78% due August 2028 15,000 59 15,000 69 3.93% due May 2033 38,000 185 38,000 203 4.22% due May 2038 45,000 243 45,000 259 4.50% due May 2048 20,000 119 20,000 124 4.60% due August 2048 85,000 510 85,000 530 3.21% due April 2030 150,000 1,171 150,000 1,331 3.57% due April 2039 50,000 454 50,000 482 2.59% due July 2033 80,000 405 80,000 443 3.14% due July 2041 80,000 427 80,000 450 2.29% due December 2031 50,000 264 50,000 293 2.97% due December 2041 100,000 557 100,000 587 PNM 2021 $75.0 Million Term Loan due December 2022 — — 75,000 — PNM 2022 225.0 Million Term Loan due February 2024 225,000 56 — — 2,009,345 8,445 1,890,845 9,735 Less current maturities 185,000 207 179,500 161 1,824,345 8,238 1,711,345 9,574 December 31, 2022 December 31, 2021 Principal Unamortized Discounts, (Premiums), and Issuance Costs, net Principal Unamortized Discounts, (Premiums), and Issuance Costs, net (In thousands) TNMP Debt First Mortgage Bonds: 6.95% due April 2043 93,198 (14,488) 93,198 (15,202) 4.03% due July 2024 80,000 158 80,000 264 3.53% due February 2026 60,000 256 60,000 338 3.22% due August 2027 60,000 266 60,000 324 3.85% due June 2028 60,000 344 60,000 406 3.79% due March 2034 75,000 422 75,000 460 3.92% due March 2039 75,000 457 75,000 486 4.06% due March 2044 75,000 479 75,000 501 3.60% due July 2029 80,000 391 80,000 451 2.73% due April 2030 85,000 616 85,000 699 3.36% due April 2050 25,000 226 25,000 235 2.93% due July 2035 25,000 208 25,000 224 3.36% due July 2050 50,000 457 50,000 473 2.44% due August 2035 65,000 454 65,000 489 4.13% due May 12, 2052 65,000 439 — — 3.81% due July 28, 2032 95,000 638 — — 1,068,198 (8,677) 908,198 (9,852) Less current maturities — — — — 1,068,198 (8,677) 908,198 (9,852) PNMR Debt PNMR 2021 Delayed-Draw Term Loan due May 2025 1,000,000 388 900,000 241 1,000,000 388 900,000 241 Less current maturities — — — — 1,000,000 388 900,000 241 Total Consolidated PNMR Debt 4,077,543 156 3,699,043 124 Less current maturities 185,000 207 179,500 161 $ 3,892,543 $ (51) $ 3,519,543 $ (37) |
Schedule of Maturities of Long-term Debt | Reflecting mandatory tender dates, long-term debt maturities as of December 31, 2022, are follows: PNMR PNM TNMP PNMR Consolidated (In thousands) 2023 $ — $ 185,000 $ — $ 185,000 2024 — 423,000 80,000 503,000 2025 1,000,000 354,000 — 1,354,000 2026 — 100,345 60,000 160,345 2027 — — 60,000 60,000 Thereafter — 947,000 868,198 1,815,198 Total $ 1,000,000 $ 2,009,345 $ 1,068,198 $ 4,077,543 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Information related to the Company’s operating leases recorded on the Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) Operating leases: Operating lease assets, net of amortization $ 52,556 $ 3,426 $ 55,982 $ 73,903 $ 5,264 $ 79,511 Current portion of operating lease liabilities 17,239 1,543 18,781 25,278 1,882 27,218 Long-term portion of operating lease liabilities 39,633 1,703 41,336 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 Consolidated Balance Sheets is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated (In thousands) (In thousands) Financing leases: Non-utility property $ 19,324 $ 20,084 $ 39,738 $ 15,171 $ 16,181 $ 31,695 Accumulated depreciation (7,726) (8,202) (16,189) (4,550) (4,923) (9,660) Non-utility property, net $ 11,598 $ 11,882 $ 23,549 $ 10,621 $ 11,258 $ 22,035 Other current liabilities $ 3,441 $ 3,867 $ 7,363 $ 2,731 $ 2,994 $ 5,813 Other deferred credits 8,079 8,028 16,123 7,732 8,273 16,075 |
Lease, Cost | Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities is presented below: December 31, 2022 December 31, 2021 PNM TNMP PNMR Consolidated PNM TNMP PNMR Consolidated Weighted average remaining lease term (years): Operating leases 6.74 2.16 6.48 5.60 2.90 5.44 Financing leases 3.99 3.39 3.68 4.30 4.14 4.20 Weighted average discount rate: Operating leases 4.01 % 3.94 % 4.00 % 3.99 % 3.98 % 3.99 % Financing leases 3.36 % 3.53 % 3.44 % 2.60 % 2.71 % 2.65 % Information for the components of lease expense is as follows: Year Ended December 31, 2022 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,764 $ 2,020 $ 28,835 Amounts capitalized (690) (1,728) (2,417) Total operating lease expense 26,074 292 26,418 Financing lease cost: Amortization of right-of-use assets 3,175 3,279 6,529 Interest on lease liabilities 327 330 659 Amounts capitalized (2,264) (3,208) (5,471) Total financing lease expense 1,238 401 1,717 Variable lease expense 890 — 890 Short-term lease expense (1) 3,058 5 3,109 Total lease expense for the period $ 31,260 $ 698 $ 32,134 (1) Includes expense of $2.7 million for the twelve months ended December 31, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $2.7 million for the twelve months ended December 31, 2022. Year Ended December 31, 2021 PNM TNMP PNMR Consolidated (In thousands) Operating lease cost $ 26,690 $ 2,445 $ 29,270 Amounts capitalized (836) (2,115) (2,951) Total operating lease expense 25,854 330 26,319 Financing lease cost: Amortization of right-of-use assets 2,507 2,682 5,277 Interest on lease liabilities 263 307 574 Amounts capitalized (1,726) (2,678) (4,404) Total financing lease expense 1,044 311 1,447 Variable lease expense 380 — 380 Short-term lease expense 2,972 6 3,035 Total lease expense for the period $ 30,250 $ 647 $ 31,181 (1) Includes expense of $2.5 million for the twelve months ended December 31, 2021 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $1.8 million for the twelve months ended December 31, 2021. Supplemental cash flow information related to the Company’s leases is as follows: Year Ended December 31, 2022 Year Ended December 31, 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 $ 25,687 $ 246 $ 25,984 $ 25,655 $ 323 $ 26,129 Operating cash flows from financing leases 96 43 141 90 34 128 Financing cash flows from financing leases 1,123 499 1,711 870 339 1,296 Non-cash information related to right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,924 $ 179 $ 3,103 $ — $ 317 $ 317 Financing leases 4,205 4,061 8,266 3,792 3,126 6,958 |
Finance Lease, Liability, Maturity | Future expected lease payments are shown below: As of December 31, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) 2023 $ 3,764 $ 17,566 $ 4,210 $ 1,330 $ 8,029 $ 19,037 2024 3,031 8,294 3,562 1,030 6,606 9,334 2025 2,140 7,070 2,592 525 4,734 7,595 2026 1,570 7,041 1,417 449 2,988 7,490 2027 1,066 7,018 473 — 1,539 7,018 Later years 788 17,366 375 — 1,162 17,366 Total minimum lease payments 12,359 64,355 12,629 3,334 25,058 67,840 Less: Imputed interest 839 7,483 734 88 1,572 7,723 Lease liabilities as of December 31, 2022 $ 11,520 $ 56,872 $ 11,895 $ 3,246 $ 23,486 $ 60,117 |
Lessee, Operating Lease, Liability, Maturity | Future expected lease payments are shown below: As of December 31, 2022 PNM TNMP PNMR Consolidated Financing Operating Financing Operating Financing Operating (In thousands) 2023 $ 3,764 $ 17,566 $ 4,210 $ 1,330 $ 8,029 $ 19,037 2024 3,031 8,294 3,562 1,030 6,606 9,334 2025 2,140 7,070 2,592 525 4,734 7,595 2026 1,570 7,041 1,417 449 2,988 7,490 2027 1,066 7,018 473 — 1,539 7,018 Later years 788 17,366 375 — 1,162 17,366 Total minimum lease payments 12,359 64,355 12,629 3,334 25,058 67,840 Less: Imputed interest 839 7,483 734 88 1,572 7,723 Lease liabilities as of December 31, 2022 $ 11,520 $ 56,872 $ 11,895 $ 3,246 $ 23,486 $ 60,117 |
Fair Value of Derivative and _2
Fair Value of Derivative and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Commodity Derivatives | PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Consolidated Balance Sheets: Economic Hedges December 31, 2022 2021 (In thousands) Other current assets $ 9,780 $ 684 Other deferred charges — — 9,780 684 Other current liabilities (19,209) (2,275) Other deferred credits — — (19,209) (2,275) Net $ (9,429) $ (1,591) |
Schedule of Realized Gain (Loss) | Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table: Year ended December 31, 2022 2021 2020 (In thousands) Equity securities: Net gains (losses) from equity securities sold $ (6,940) $ 8,738 $ 5,861 Net gains (losses) from equity securities still held (38,025) (442) 17,707 Total net gains (losses) on equity securities (44,965) 8,296 23,568 Available-for-sale debt securities: Net gains (losses) on debt securities (33,392) 8,554 (1,969) Net gains (losses) on investment securities $ (78,357) $ 16,850 $ 21,599 Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $(25.8) million, $0.7 million, and $(3.2) million for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (In thousands) Proceeds from sales $ 526,448 $ 459,867 $ 590,998 Gross realized gains $ 22,071 $ 39,408 $ 35,904 Gross realized (losses) $ (36,623) $ (22,815) $ (28,817) |
Investments Classified by Contractual Maturity Date | At December 31, 2022, the available-for-sale debt securities held by PNM, had the following final maturities: Fair Value (In thousands) Within 1 year $ 40,339 After 1 year through 5 years 67,426 After 5 years through 10 years 70,608 After 10 years through 15 years 15,571 After 15 years through 20 years 12,825 After 20 years 32,211 $ 238,980 |
Schedule of Instruments Presented by Level of Hierarchy | Items recorded at fair value by PNM on the Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities. GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Unrealized Gains (In thousands) December 31, 2022 Cash and cash equivalents $ 66,843 $ 66,843 $ — Equity securities: Corporate stocks, common 40,103 40,103 — Corporate stocks, preferred 5,191 790 4,401 Mutual funds and other 66,359 66,359 — Available-for-sale debt securities: U.S. government 45,905 45,645 260 $ 1,334 International government 9,762 — 9,762 1,117 Municipals 43,136 — 43,136 1,062 Corporate and other 140,177 — 140,177 6,473 $ 417,476 $ 219,740 $ 197,736 $ 9,986 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 |
Summary of Carrying Amounts and Fair Value of Instruments | 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 Consolidated Balance Sheets are presented below: Carrying Fair Value December 31, 2022 (In thousands) PNMR $ 4,077,387 $ 3,726,195 PNM $ 2,000,900 $ 1,789,186 TNMP $ 1,076,875 $ 937,009 December 31, 2021 PNMR $ 3,698,919 $ 3,915,010 PNM $ 1,881,110 $ 1,975,987 TNMP $ 918,050 $ 1,039,023 |
Schedule of Investments Held by the Employee Benefit Plans | The fair values of investments held by the employee benefit plans are as follows: GAAP Fair Value Hierarchy Total Quoted Prices in Active Markets for Identical Assets Significant December 31, 2022 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 342,183 $ 143,911 $ 198,272 Uncategorized investments 67,787 Total Master Trust Investments $ 409,970 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 38,617 $ 13,556 $ 25,061 Uncategorized investments 5,433 Total Master Trust Investments $ 44,050 PNM OPEB Plan Cash and cash equivalents $ 1,703 $ 1,703 $ — Equity securities: Mutual funds 69,001 42,068 26,933 $ 70,704 $ 43,771 $ 26,933 TNMP OPEB Plan Cash and cash equivalents $ 149 $ 149 $ — Equity securities: Mutual funds 8,573 8,018 555 $ 8,722 $ 8,167 $ 555 GAAP Fair Value Hierarchy Total Quoted Prices in Active Significant December 31, 2021 (In thousands) PNM Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 527,873 $ 235,605 $ 292,268 Uncategorized investments 49,432 Total Master Trust Investments $ 577,305 TNMP Pension Plan Participation in PNMR Master Trust Investments: Investments categorized within fair value hierarchy $ 58,623 $ 21,390 $ 37,233 Uncategorized investments 3,962 Total Master Trust Investments $ 62,585 PNM OPEB Plan Cash and cash equivalents $ 1,578 $ 1,578 $ — Equity securities: Mutual funds 94,549 58,383 36,166 $ 96,127 $ 59,961 $ 36,166 TNMP OPEB Plan Cash and cash equivalents $ 381 $ 381 $ — Equity securities: Mutual funds 12,249 11,575 674 $ 12,630 $ 11,956 $ 674 The fair values of investments in the PNMR Master Trust are as follows: GAAP Fair Value Hierarchy Total Quoted Prices Significant December 31, 2022 (In thousands) PNMR Master Trust Cash and cash equivalents $ 17,106 $ 17,106 $ — Equity securities: Corporate stocks, common 53,661 53,661 — Corporate stocks, preferred 639 639 — Mutual funds and other 135,200 27,412 107,788 Fixed income securities: U.S. government 62,637 58,649 3,988 International government 3,318 — 3,318 Municipals 4,922 — 4,922 Corporate and other 103,317 — 103,317 Total investments categorized within fair value hierarchy 380,800 $ 157,467 $ 223,333 Uncategorized investments: Private equity funds 6,691 Hedge funds 33,258 Real estate funds 33,271 $ 454,020 GAAP Fair Value Hierarchy Total Quoted Prices Significant December 31, 2021 (In thousands) PNMR Master Trust Cash and cash equivalents $ 18,924 $ 18,924 $ — Equity securities: Corporate stocks, common 92,484 92,484 — Corporate stocks, preferred 806 — 806 Mutual funds and other 222,106 59,203 162,903 Fixed income securities: U.S. government 95,429 86,384 9,045 International government 5,977 — 5,977 Municipals 6,143 — 6,143 Corporate and other 144,627 — 144,627 Total investments categorized within fair value hierarchy 586,496 $ 256,995 $ 329,501 Uncategorized investments: Private equity funds 10,479 Hedge funds 8,913 Real estate funds 34,002 $ 639,890 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Summarized Financial Information for Noncontrolling Interest | Summarized financial information for Valencia is as follows: Results of Operations Year Ended December 31 2022 2021 2020 (In thousands) Operating revenues $ 21,403 $ 21,624 $ 21,297 Operating expenses 6,281 6,134 7,284 Earnings attributable to non-controlling interest $ 15,122 $ 15,490 $ 14,013 Financial Position December 31, 2022 2021 (In thousands) Current assets $ 3,429 $ 3,042 Net property, plant and equipment 50,094 52,908 Total assets 53,523 55,950 Current liabilities 529 545 Owners’ equity – non-controlling interest $ 52,994 $ 55,405 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table presents information about the PBO, fair value of plan assets, and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) PBO at beginning of year $ 584,061 $ 630,904 $ 59,609 $ 67,390 Service cost — — — — Interest cost 16,857 16,143 1,720 1,741 Actuarial (gain) (118,552) (19,372) (11,711) (3,306) Benefits paid (48,721) (43,614) (3,403) (3,678) Settlements — — (2,254) (2,538) PBO at end of year 433,645 584,061 43,961 59,609 Fair value of plan assets at beginning of year 576,707 587,530 62,942 66,149 Actual return on plan assets (117,523) 32,791 (13,838) 3,009 Employer contributions — — — — Benefits paid (48,721) (43,614) (3,403) (3,678) Settlements — — (2,254) (2,538) Fair value of plan assets at end of year 410,463 576,707 43,447 62,942 Funded status – asset (liability) for pension benefits $ (23,182) $ (7,354) $ (514) $ 3,333 The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) APBO at beginning of year $ 66,984 $ 75,196 $ 10,570 $ 11,938 Service cost 10 23 38 45 Interest cost 1,914 1,907 307 308 Participant contributions 1,431 1,617 219 135 Actuarial (gain) (14,829) (5,053) (2,788) (1,141) Benefits paid (6,396) (6,706) (641) (715) Curtailment loss 836 — — — APBO at end of year 49,950 66,984 7,705 10,570 Fair value of plan assets at beginning of year 95,805 93,402 12,593 12,885 Actual return on plan assets (23,156) 4,783 (3,453) 288 Employer contributions 2,617 2,709 — — Participant contributions 1,431 1,617 219 135 Benefits paid (6,396) (6,706) (641) (715) Fair value of plan assets at end of year 70,301 95,805 8,718 12,593 Funded status – asset $ 20,351 $ 28,821 $ 1,013 $ 2,023 |
Schedule of Assumptions Used | Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Discount rates $ (111,478) $ (19,989) $ (11,697) $ (2,017) Demographic experience (7,074) 617 (742) (1,403) Mortality rate — — — — Other assumptions and experience — — 728 114 $ (118,552) $ (19,372) $ (11,711) $ (3,306) The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 PBO 5.74 % 3.00 % 2.66 % Discount rate for determining net periodic benefit cost 3.00 % 2.66 % 3.42 % Expected return on plan assets 5.50 % 5.50 % 5.90 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 5.75 % 3.01 % 2.69 % Discount rate for determining net periodic benefit cost 3.01 % 2.69 % 3.46 % Expected return on plan assets 4.40 % 5.50 % 5.90 % Rate of compensation increase N/A N/A N/A Actuarial (gain) loss results from changes in: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Discount rates $ (11,876) $ (2,042) $ (2,469) $ (423) Claims, contributions, and demographic experience (2,985) (2,893) (319) (718) Assumed participation rate — — — — Mortality rate — — — — Dental trend assumption 32 (118) — — $ (14,829) $ (5,053) $ (2,788) $ (1,141) The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 APBO 5.75 % 2.99 % 2.65 % Discount rate for determining net periodic benefit cost 2.99 % 2.65 % 3.42 % Expected return on plan assets 4.75 % 4.75 % 7.00 % Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 APBO 5.75 % 2.99 % 2.65 % Discount rate for determining net periodic benefit cost 2.99 % 2.65 % 3.42 % Expected return on plan assets 3.80 % 3.80 % 5.60 % Rate of compensation increase N/A N/A N/A The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected. Year Ended December 31, PNM 2022 2021 2020 Discount rate for determining December 31 PBO 5.73 % 3.02 % 2.68 % Discount rate for determining net periodic benefit cost 3.02 % 2.68 % 3.44 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A TNMP Discount rate for determining December 31 PBO 5.75 % 3.01 % 2.69 % Discount rate for determining net periodic benefit cost 3.01 % 2.69 % 3.46 % Long-term rate of return on plan assets N/A N/A N/A Rate of compensation increase N/A N/A N/A |
Reclassification out of Accumulated Other Comprehensive Income | Information regarding AOCI is as follows: Accumulated Other Comprehensive Income (Loss) PNM PNMR Unrealized Gains on Available-for-Sale Securities Pension Total Fair Value Adjustment for Cash Flow Hedges Total (In thousands) Balance at December 31, 2019 $ 10,638 $ (109,693) $ (99,055) $ (322) $ (99,377) Amounts reclassified from AOCI (pre-tax) (9,497) 8,300 (1,197) (1,740) (2,937) Income tax impact of amounts reclassified 2,412 (2,108) 304 442 746 Other OCI changes (pre-tax) 22,586 6,149 28,735 1,271 30,006 Income tax impact of other OCI changes (5,736) (1,562) (7,298) (323) (7,621) Net after-tax change 9,765 10,779 20,544 (350) 20,194 Balance at December 31, 2020 20,403 (98,914) (78,511) (672) (79,183) Amounts reclassified from AOCI (pre-tax) (9,765) 8,348 (1,417) (903) (2,320) Income tax impact of amounts reclassified 2,480 (2,120) 360 229 589 Other OCI changes (pre-tax) (1,881) 12,111 10,230 1,804 12,034 Income tax impact of other OCI changes 478 (3,076) (2,598) (458) (3,056) Net after-tax change (8,688) 15,263 6,575 672 7,247 Balance at December 31, 2021 11,715 (83,651) (71,936) — (71,936) Amounts reclassified from AOCI (pre-tax) (3,827) 7,104 3,277 (1,176) 2,101 Income tax impact of amounts reclassified 972 (1,804) (832) 299 (533) Other OCI changes (pre-tax) (1,928) (4,565) (6,493) 12,285 5,792 Income tax impact of other OCI changes 490 1,159 1,649 (3,121) (1,472) Net after-tax change (4,293) 1,894 (2,399) 8,287 5,888 Balance at December 31, 2022 $ 7,422 $ (81,757) $ (74,335) $ 8,287 $ (66,048) The following table presents pre-tax information about net actuarial (gain) loss in AOCI as of December 31, 2022. PNM TNMP (In thousands) Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year $ 112,063 $ — Experience loss 27,531 4,602 Regulatory asset (liability) adjustment (22,282) (4,602) Amortization recognized in net periodic benefit (income) (6,967) — Amounts in AOCI not yet recognized in net periodic benefit cost at end of year $ 110,345 $ — The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2022. December 31, 2022 PNM TNMP (In thousands) Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year $ 1,816 $ — Experience (gain) (1,628) (2) Regulatory asset adjustment 944 2 Amortization recognized in net periodic benefit (income) (137) — Amount in AOCI not yet recognized in net periodic benefit cost at end of year $ 995 $ — |
Schedule of Net Benefit Costs | The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ — $ — $ — Interest cost 16,857 16,143 19,941 Expected return on plan assets (28,563) (28,531) (29,453) Amortization of net loss 15,794 18,166 17,860 Amortization of prior service cost — — (554) Net periodic benefit cost $ 4,088 $ 5,778 $ 7,794 TNMP Service cost $ — $ — $ — Interest cost 1,720 1,741 2,177 Expected return on plan assets (2,472) (3,181) (3,284) Amortization of net loss 932 1,247 1,258 Amortization of prior service cost — — — Settlement loss 1,033 746 — Net periodic benefit cost $ 1,213 $ 553 $ 151 The following table presents the components of net periodic benefit cost (income): Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ 10 $ 23 $ 38 Interest cost 1,914 1,907 2,453 Expected return on plan assets (4,351) (4,167) (5,548) Amortization of net loss — — 348 Curtailment loss $ 836 $ — $ — Net periodic benefit (income) $ (1,591) $ (2,237) $ (2,709) TNMP Service cost $ 38 $ 45 $ 46 Interest cost 307 308 373 Expected return on plan assets (418) (407) (538) Amortization of net (gain) (520) (322) (323) Net periodic benefit (income) $ (593) $ (376) $ (442) The following table presents the components of net periodic benefit cost: Year Ended December 31, 2022 2021 2020 (In thousands) PNM Service cost $ — $ — $ — Interest cost 362 363 491 Amortization of net loss 327 395 403 Amortization of prior service cost — — — Net periodic benefit cost $ 689 $ 758 $ 894 TNMP Service cost $ — $ — $ — Interest cost 11 17 22 Amortization of net loss — 33 24 Amortization of prior service cost — — — Net periodic benefit cost $ 11 $ 50 $ 46 |
Schedule of Expected Benefit Payments | The following pension benefit payments are expected to be paid: PNM TNMP (In thousands) 2023 $ 42,827 $ 4,358 2024 41,621 4,236 2025 40,876 4,207 2026 39,528 4,139 2027 38,600 3,929 2028 - 2032 174,505 17,211 PNM TNMP (In thousands) 2023 $ 5,880 $ 621 2024 5,533 640 2025 5,157 643 2026 4,873 649 2027 4,593 641 2028 - 2032 19,200 2,980 The following executive retirement plan payments, which reflect expected future service, are expected: PNM TNMP (In thousands) 2023 $ 1,251 $ 68 2024 1,208 61 2025 1,158 54 2026 1,102 48 2027 1,042 41 2028 - 2032 4,230 121 |
Schedule of Health Care Cost Trend Rates | The following table shows the assumed health care cost trend rates for the PNM OPEB plan: PNM December 31, 2022 2021 Health care cost trend rate assumed for next year 6.25 % 6.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.75 % 4.75 % Year that the rate reaches the ultimate trend rate 2029 2027 |
Schedule of Net Funded Status | For the executive retirement programs, the following table presents information about the PBO and funded status of the plans: PNM TNMP Year Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands) PBO at beginning of year $ 12,612 $ 14,222 $ 406 $ 678 Service cost — — — — Interest cost 362 363 11 17 Actuarial (gain) (1,628) (657) (2) (211) Benefits paid (1,304) (1,316) (71) (78) PBO at end of year – funded status 10,042 12,612 344 406 Less current liability 1,217 1,248 66 67 Non-current liability $ 8,825 $ 11,364 $ 278 $ 339 |
Summary of Expenses for Other Retirement Plans | A summary of expenses for these other retirement plans is as follows: Year Ended December 31, 2022 2021 2020 (In thousands) PNMR 401(k) plan $ 15,844 $ 16,648 $ 16,247 Non-qualified plan $ (1,027) $ 3,594 $ 2,090 PNM 401(k) plan $ 11,067 $ 11,826 $ 11,676 Non-qualified plan $ (721) $ 2,622 $ 1,544 TNMP 401(k) plan $ 4,776 $ 4,823 $ 4,572 Non-qualified plan $ (305) $ 972 $ 547 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards | All excess tax benefits and deficiencies are recorded to tax expense and classified as operating cash flows when used to reduce taxes payable. Year Ended December 31, Excess Tax Benefits (Deficiencies) 2022 2021 2020 (In thousands) PNM $ (65) $ 564 $ 279 TNMP (26) 224 112 PNMR (91) 788 391 |
Summary of Awards | The following table summarizes the weighted-average assumptions used to determine the awards grant date fair value: Year Ended December 31, Restricted Shares and Performance-Based Shares 2022 2021 2020 Expected quarterly dividends per share $ 0.3475 $ 0.3275 $ 0.3075 Risk-free interest rate 1.46 % 0.32 % 0.72 % Market-Based Shares (1) Dividend yield N/A 2.76 % 2.51 % Expected volatility N/A 33.69 % 19.41 % Risk-free interest rate N/A 0.29 % 0.72 % (1) Restricted stock expected to be awarded under the PEP for performance periods ending after 2023 no longer have market targets. The following table summarizes activity in restricted stock awards including performance-based and market-based shares: Restricted Stock Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 167,270 $ 43.71 Granted 193,943 41.04 Released (173,474) 42.47 Forfeited (5,293) 42.31 Outstanding at December 31, 2022 182,446 $ 42.09 The following table provides additional information concerning restricted stock activity, including performance-based and market-based shares, and stock options: Year Ended December 31, Restricted Stock 2022 2021 2020 Weighted-average grant date fair value $ 41.04 $ 43.48 $ 36.73 Total fair value of restricted shares that vested (in thousands) $ 7,368 $ 8,617 $ 8,299 Stock Options Total intrinsic value of options exercised (in thousands) $ — $ — $ 84 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | Regulatory assets and liabilities reflected in the Consolidated Balance Sheets are presented below. PNM TNMP December 31, December 31, 2022 2021 2022 2021 Assets: (In thousands) Current: FPPAC $ 8,904 $ 7,130 $ — $ — NMPRC hedging plan 9,429 1,591 — — Transmission cost recovery factor — — — 3,906 Energy efficiency costs — — 1,932 2,158 18,333 8,721 1,932 6,064 PNM TNMP December 31, December 31, 2022 2021 2022 2021 Assets (Continued): (In thousands) Non-Current: SJGS - ETA (1) $ 343,238 $ 51,975 $ — $ — SJGS - non-ETA (2) 26,296 43 — — Shutdown of SJGS Units 2 and 3 94,677 100,954 — — SJGS replacement resources 8,312 8,269 — — EIM 13,102 7,028 — — Loss on reacquired debt 15,323 17,249 26,317 27,615 Pension and OPEB (3) 187,182 165,006 21,558 17,924 Deferred income taxes 67,621 68,687 9,193 9,505 AMS surcharge — — 6,254 12,507 AMS retirement and other costs — — 12,591 12,286 Deferred COVID-19 costs 5,664 6,896 1,053 — Other 2,526 2,874 5,779 5,440 763,941 428,981 82,745 85,277 Total regulatory assets $ 782,274 $ 437,702 $ 84,677 $ 91,341 PNM TNMP December 31, December 31, 2022 2021 2022 2021 Liabilities: Current: Renewable energy rider, including excess return $ (5,076) $ (5,989) $ — $ — Energy efficiency costs (2,837) (2,327) — — Transmission cost recovery factor — — (9,089) — (7,913) (8,316) (9,089) — Non-Current: Cost of removal (238,903) (294,193) (97,030) (73,029) Deferred income taxes (301,493) (321,976) (94,994) (107,250) PVNGS ARO — (1,215) — — Renewable energy tax benefits (15,610) (16,756) — — Accelerated depreciation SNCRs (3) — (16,331) — — Pension and OPEB — (2,376) (4,518) (6,099) COVID-19 cost savings (900) (900) — — Other (83) (83) (1,671) (1,185) (556,989) (653,830) (198,213) (187,563) Total regulatory liabilities $ (564,902) $ (662,146) $ (207,302) $ (187,563) (1) Amounts approved for recovery through the Energy Transition Charge, see Note 17 (2) Authorized to be recorded as regulatory assets for certain other abandonment costs that are not specifically addressed under the provisions of the ETA, see Note 17 (3) |
Construction Program and Join_2
Construction Program and Jointly-Owned Electric Generating Plants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Construction Program and Jointly-Owned Electric Generating Plants [Abstract] | |
Summary of Interests and Investments in Jointly-Owned Generating Facilities | At December 31, 2022, PNM’s interests and investments in jointly-owned generating facilities are: Station (Type) Plant in Accumulated Depreciation (1) Construction Composite (In thousands) PVNGS (Nuclear) $ 891,708 $ 420,076 $ 35,504 10.20 % Four Corners Units 4 and 5 (Coal) $ 320,376 $ 101,022 $ 9,390 13.00 % Luna (Gas) $ 83,146 $ 33,063 $ 111 33.33 % (1) Includes cost of removal. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of Asset Retirement Obligations | A reconciliation of the ARO liabilities is as follows: PNMR PNM TNMP (In thousands) Liability at December 31, 2019 $ 181,962 $ 181,081 $ 881 Liabilities incurred — — — Liabilities settled (1,444) (1,192) (252) Accretion expense 11,310 11,236 74 Revisions to estimated cash flows (1) (8,407) (8,407) — Liability at December 31, 2020 183,421 182,718 703 Liabilities incurred 1,781 1,781 — Liabilities settled (142) (142) — Accretion expense 9,308 9,248 60 Revisions to estimated cash flows (2) 39,778 39,778 — Liability at December 31, 2021 234,146 233,383 763 Liabilities incurred — — — Liabilities settled — — — Accretion expense 10,767 10,702 65 Revisions to estimated cash flows (3) (21,536) (21,536) — Liability at December 31, 2022 $ 223,377 $ 222,549 $ 828 (1) Reflects a decrease of $9.2 million related to an updated PVNGS decommissioning study and an increase of $0.8 million related to an updated Four Corners decommissioning study. (2) Reflects impacts of newly approved remediation ordinance in San Juan county requiring the full demolition of SJGS. See Note 16. (3) Reflects a decrease of $21.5 million related to an updated SJGS decommissioning study. |
Regulatory and Rate Matters Reg
Regulatory and Rate Matters Regulatory and Rate Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule Of Renewable Energy Rider | The following sets forth PNM’s revenues recorded for the renewable energy rider: Year Ended Annual Revenues (In millions) 2020 $56.4 2021 61.7 2022 60.3 |
Schedule of Rate Increases for Transmission Costs | The following sets forth TNMP’s EECRF increases: Effective Date Aggregate Collection Amount Performance Bonus (In millions) March 1, 2020 $ 5.9 $ 0.8 March 1, 2021 5.9 1.0 March 1, 2022 7.2 2.3 Effective Date Approved Increase in Rate Base Annual Increase in Revenue (In millions) March 27, 2020 $ 59.2 $ 7.8 October 7, 2020 10.8 2.0 March 12, 2021 112.6 14.1 September 20, 2021 41.2 6.3 March 25, 2022 95.6 14.2 September 22, 2022 36.0 5.3 |
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 reflected on the Consolidated Balance Sheets as of December 31, 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | PNMR’s income taxes consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax $ — $ — $ — Current state income tax 1,597 1,835 231 Deferred federal income tax 18,413 20,679 17,574 Deferred state income tax 7,302 11,315 3,721 Amortization of accumulated investment tax credits (1,182) (1,247) (890) Total income taxes $ 26,130 $ 32,582 $ 20,636 PNM’s income taxes (benefit) consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax (benefit) $ (13,533) $ — $ — Current state income tax (benefit) 3,244 (128) (585) Deferred federal income tax 25,298 18,774 20,125 Deferred state income tax 4,361 8,583 2,560 Amortization of accumulated investment tax credits (172) (237) (243) Total income taxes $ 19,198 $ 26,992 $ 21,857 TNMP’s income taxes consist of the following components: Year Ended December 31, 2022 2021 2020 (In thousands) Current federal income tax $ 17,055 $ 5,770 $ 12,048 Current state income tax 2,662 2,395 2,033 Deferred federal income tax (benefit) (4,527) (224) (7,744) Deferred state income tax (benefit) (29) (29) (29) Total income taxes $ 15,161 $ 7,912 $ 6,308 |
Schedule of Effective Income Tax Rate Reconciliation | PNMR’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors: Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 44,375 $ 51,330 $ 43,670 Amortization of accumulated investment tax credits (1,182) (1,247) (890) Amortization of excess deferred income tax (23,599) (24,484) (30,723) Flow-through of depreciation items 2,795 798 1,368 (Earnings) attributable to non-controlling interest in Valencia (3,176) (3,253) (2,943) State income tax, net of federal (benefit) 6,826 9,660 6,961 Allowance for equity funds used during construction (2,898) (2,776) (2,363) Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization — — 1,367 Allocation of tax (benefit) related to stock compensation awards 91 (788) (392) Non-deductible compensation 1,125 899 2,630 Transaction costs 74 848 — Other 1,699 1,595 1,951 Total income taxes $ 26,130 $ 32,582 $ 20,636 Effective tax rate 12.37 % 13.33 % 9.92 % Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 29,026 $ 41,696 $ 38,193 Amortization of accumulated investment tax credits (172) (237) (243) Amortization of excess deferred income tax (14,421) (15,158) (21,609) Flow-through of depreciation items 2,641 689 1,279 (Earnings) attributable to non-controlling interest in Valencia (3,176) (3,253) (2,943) State income tax, net of federal (benefit) 5,694 7,609 7,111 Allowance for equity funds used during construction (1,958) (2,080) (1,461) Regulatory recovery of prior year impairment of state net operating loss carryforward, net of amortization — — 1,367 Allocation of tax (benefit) related to stock compensation awards 65 (563) (279) Non-deductible compensation 701 547 1,554 Transaction costs 10 22 — Other 788 (2,280) (1,112) Total income taxes $ 19,198 $ 26,992 $ 21,857 Effective tax rate 13.89 % 13.59 % 12.02 % Year Ended December 31, 2022 2021 2020 (In thousands) Federal income tax at statutory rates $ 22,560 $ 15,076 $ 13,628 Amortization of excess deferred income tax (9,177) (9,326) (9,113) State income tax, net of federal (benefit) 2,103 1,763 1,625 Allocation of tax (benefit) related to stock compensation awards 26 (224) (112) Non-deductible compensation 422 351 1,071 Transaction costs 1 (4) — Other (774) 276 (791) Total income taxes $ 15,161 $ 7,912 $ 6,308 Effective tax rate 14.11 % 11.02 % 9.71 % |
Components of Deferred Tax Assets and Liabilities | The components of PNMR’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss $ 85,382 $ 32,441 Regulatory liabilities related to income taxes 98,371 120,651 Federal tax credit carryforwards 122,557 122,436 Regulatory disallowances 28,037 38,835 Other 33,849 34,812 Total deferred tax assets 368,196 349,175 Deferred tax liabilities: Depreciation and plant related (801,022) (787,295) Investment tax credit (96,227) (97,409) Regulatory assets related to income taxes (77,013) (78,211) Pension (40,651) (40,828) Regulatory asset for shutdown of SJGS Units 2 and 3 (24,048) (25,643) Regulatory asset SJGS investment (69,828) — Other (82,238) (84,639) Total deferred tax liabilities (1,191,027) (1,114,025) Net accumulated deferred income tax liabilities $ (822,831) $ (764,850) The components of PNM’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Net operating loss $ 54,681 $ 1,854 Regulatory liabilities related to income taxes 76,744 96,161 Federal tax credit carryforwards 84,902 86,811 Regulatory disallowance 28,037 38,835 Other 33,079 36,599 Total deferred tax assets 277,443 260,260 Deferred tax liabilities: Depreciation and plant related (620,814) (616,567) Investment tax credit (74,015) (74,187) Regulatory assets related to income taxes (67,912) (68,687) Pension (36,048) (36,283) Regulatory asset for shutdown of SJGS Units 2 and 3 (24,048) (25,643) Regulatory asset SJGS investment (69,828) — Other (66,818) (69,575) Total deferred tax liabilities (959,483) (890,942) Net accumulated deferred income tax liabilities $ (682,040) $ (630,682) The components of TNMP’s net accumulated deferred income tax liability were: December 31, 2022 2021 (In thousands) Deferred tax assets: Regulatory liabilities related to income taxes $ 21,627 $ 24,490 Other 5,353 3,648 Total deferred tax assets 26,980 28,138 Deferred tax liabilities: Depreciation and plant related (166,230) (157,649) Regulatory assets related to income taxes (9,213) (9,525) Loss on reacquired debt (5,527) (5,799) Pension (4,603) (4,545) AMS (3,989) (5,249) Other (2,055) (2,619) Total deferred tax liabilities (191,617) (185,386) Net accumulated deferred income tax liabilities $ (164,637) $ (157,248) |
Reconciliation of Accumulated Deferred Income Tax Liability to Deferred Income Tax Benefit | The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 57,981 Change in tax effects of income tax related regulatory assets and liabilities (7,546) Amortization of excess deferred income tax (23,599) Tax effect of mark-to-market adjustments (1,359) Tax effect of excess pension liability (645) Adjustment for uncertain income tax positions 1,439 Reclassification of unrecognized tax benefits (1,439) Other (299) Deferred income tax $ 24,533 The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 51,358 Change in tax effects of income tax related regulatory assets and liabilities (4,995) Amortization of excess deferred income tax (14,421) Tax effect of mark-to-market adjustments 1,462 Tax effect of excess pension liability (646) Adjustment for uncertain income tax positions 1,430 Reclassification of unrecognized tax benefits (4,701) Deferred income tax $ 29,487 The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax (benefit) included in the Consolidated Statement of Earnings: Year Ended December 31, 2022 (In thousands) Net change in deferred income tax liability per above table $ 7,389 Change in tax effects of income tax related regulatory assets and liabilities (2,552) Amortization of excess deferred income tax (9,177) Other (216) Deferred income tax (benefits) $ (4,556) |
Reconciliation of Unrecognized Tax Benefits (Expenses) | A reconciliation of unrecognized tax benefits is as follows: PNMR PNM TNMP (In thousands) Balance at December 31, 2019 $ 10,693 $ 7,776 $ 114 Additions based on tax positions related to 2020 2,286 2,286 — Additions for tax positions of prior years 173 168 5 Settlement payments — — — Balance at December 31, 2020 13,152 10,230 119 Additions based on tax positions related to 2021 305 295 11 Additions for tax positions of prior years 257 246 11 Settlement payments — — — Balance at December 31, 2021 13,714 10,771 141 Additions based on tax positions related to 2022 1,444 1,437 7 Additions (reductions) for tax positions of prior years (4) (7) 3 Settlement payments — — — Balance at December 31, 2022 $ 15,154 $ 12,201 $ 151 |
Tax Carryforward, Impairments, net of Federal Tax Benefit | Impairments of tax attributes after reflecting the expiration of carryforwards under applicable tax laws, net of federal tax benefit, for 2020 through 2022 are as follows: PNMR PNM TNMP (In thousands) December 31, 2022: Federal tax credit carryforwards $ 187 $ 427 $ — Compensation expense $ 199 $ 140 $ 59 December 31, 2021: Federal tax credit carryforwards $ 1,029 $ — $ — Compensation expense $ 119 $ 84 $ 35 December 31, 2020: State tax credit carryforwards $ (425) $ — $ — Compensation expense $ 96 $ 61 $ 35 |
Summary of Tax Credit Carryforwards | The reserve balances, after reflecting expiration of carryforwards under applicable tax laws, at December 31, 2022 and 2021 are as follows: PNMR PNM TNMP (In thousands) December 31, 2022: Federal tax credit carryforwards $ 1,216 $ 427 $ — Compensation expense $ 725 $ 483 $ 241 December 31, 2021: Federal tax credit carryforwards $ 1,029 $ — $ — Compensation expense $ 526 $ 343 $ 182 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 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 and TNMP: Year Ended December 31, 2022 2021 2020 (In thousands) Services billings: PNMR to PNM $ 115,415 $ 107,747 $ 100,872 PNMR to TNMP 42,293 41,798 39,053 PNM to TNMP 411 404 383 TNMP to PNMR 141 141 141 TNMP to PNM — — — PNMR to NMRD 308 221 260 Renewable energy purchases: PNM from NMRD 11,795 11,879 9,638 Interconnection and facility study billings: PNM to NMRD — 225 350 PNM to PNMR — — — PNMR to PNM — — — NMRD to PNM — 1,276 — Interest billings: PNMR to PNM 13 31 6 PNM to PNMR 249 144 255 PNMR to TNMP 166 — 2 Income tax sharing payments: PNMR to TNMP — — — PNMR to PNM — 19,492 — PNM to PNMR 11,602 — — TNMP to PNMR 8,341 12,842 15,820 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Marketable Securities | PNMR presents its share of net earnings from NMRD in other income on the Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows: December 31, 2022 2021 2020 (In thousands) Operating revenues $ 12,505 $ 12,738 $ 10,366 Operating expenses 9,591 9,733 7,476 Net earnings $ 2,914 $ 3,005 $ 2,890 Financial Position December 31, 2022 2021 (In thousands) Current assets $ 8,357 $ 10,729 Net property, plant, and equipment 169,440 166,495 Non-current assets 9,631 2,289 Total assets 187,428 179,513 Current liabilities 5,822 824 Non-current liabilities 366 373 Owners’ equity $ 181,240 $ 178,316 |
Summary of the Business and S_4
Summary of the Business and Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) utility | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies Disclosures [Line Items] | |||
Payment defaults | $ 0 | ||
Allowance for equity funds used during construction | $ 13,799,000 | $ 13,217,000 | $ 11,254,000 |
PNMR | |||
Accounting Policies Disclosures [Line Items] | |||
Number of regulated utilities | utility | 2 | ||
Restricted cash | $ 0 | 0 | |
Public Service Company of New Mexico | |||
Accounting Policies Disclosures [Line Items] | |||
Restricted cash | 0 | 0 | |
Allowance for funds used during construction, capitalized interest | $ 3,700,000 | $ 3,400,000 | $ 3,000,000 |
Allowance for funds used during construction, capitalized interest rate | 1.70% | 1.70% | 2.40% |
Allowance for equity funds used during construction | $ 9,323,000 | $ 9,905,000 | $ 6,958,000 |
Allowance for funds used during construction, capitalized cost of equity rate | 4.26% | 4.94% | 3.42% |
Impairment losses on securities held in the NDT | $ 25,800,000 | $ (700,000) | $ 3,200,000 |
Texas-New Mexico Power Company | |||
Accounting Policies Disclosures [Line Items] | |||
Restricted cash | 0 | 0 | |
Allowance for funds used during construction, capitalized interest | $ 3,400,000 | $ 1,600,000 | $ 2,100,000 |
Allowance for funds used during construction, capitalized interest rate | 2.25% | 1.80% | 2.20% |
Allowance for equity funds used during construction | $ 4,500,000 | $ 3,300,000 | $ 4,300,000 |
Allowance for funds used during construction, capitalized cost of equity rate | 2.99% | 3.67% | 4.42% |
Summary of the Business and S_5
Summary of the Business and Significant Accounting Policies - Inventories/Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 66,733 | $ 65,061 | |
Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 985 | 2,973 | |
Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 65,748 | 62,088 | |
Public Service Company of New Mexico | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 55,890 | 57,942 | |
Public Service Company of New Mexico | Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 985 | 2,973 | |
Public Service Company of New Mexico | Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 54,905 | $ 54,969 | |
Public Service Company of New Mexico | Electric plant | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 2.55% | 2.48% | 2.47% |
Public Service Company of New Mexico | Common, intangible, and general plant | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 7.83% | 7.91% | 7.65% |
Texas-New Mexico Power Company | |||
Public Utilities, Inventory [Line Items] | |||
Depreciation average rates used | 3.72% | 3.88% | 3.95% |
Inventory | $ 10,843 | $ 7,119 | |
Texas-New Mexico Power Company | Coal | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | 0 | 0 | |
Texas-New Mexico Power Company | Materials and supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 10,843 | $ 7,119 |
Segment Information - Schedule
Segment Information - Schedule of Summarized Financial Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Electric Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Gross margin | 740,455 | 648,949 | 606,727 |
Other operating expenses | 563,001 | 542,760 | 514,878 |
Depreciation and amortization | 304,853 | 284,107 | 275,612 |
Operating income | 393,760 | 308,153 | 285,281 |
Interest income | 16,095 | 14,662 | 14,223 |
Other income (deductions) | (70,637) | 18,491 | 22,840 |
Interest charges | (127,908) | (96,877) | (114,392) |
Earnings before Income Taxes | 211,310 | 244,429 | 207,952 |
Income taxes (benefit) | 26,130 | 32,582 | 20,636 |
Net Earnings | 185,180 | 211,847 | 187,316 |
Valencia non-controlling interest | (15,122) | (15,490) | (14,013) |
Subsidiary preferred stock dividends | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | 169,530 | 195,829 | 172,775 |
Total Assets | 9,257,377 | 8,666,885 | 7,939,854 |
Goodwill | 278,297 | 278,297 | 278,297 |
Utility margin | $ 1,261,614 | 1,135,020 | 1,075,771 |
PNM | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 1 | ||
Gross margin | $ 516,375 | 466,092 | 441,831 |
Other operating expenses | 460,513 | 438,372 | 414,445 |
Depreciation and amortization | 180,812 | 170,365 | 165,325 |
Operating income | 261,487 | 221,497 | 214,897 |
Interest income | 14,816 | 14,605 | 14,469 |
Other income (deductions) | (77,012) | 13,809 | 17,120 |
Interest charges | (61,073) | (51,360) | (64,615) |
Earnings before Income Taxes | 138,218 | 198,551 | 181,871 |
Income taxes (benefit) | 19,198 | 26,992 | 21,857 |
Net Earnings | 119,020 | 171,559 | 160,014 |
Valencia non-controlling interest | (15,122) | (15,490) | (14,013) |
Subsidiary preferred stock dividends | (528) | (528) | (528) |
Net Earnings Attributable to PNMR | 103,370 | 155,541 | 145,473 |
Total Assets | 6,272,166 | 6,060,133 | 5,581,033 |
Goodwill | 51,632 | 51,632 | 51,632 |
Utility margin | $ 902,812 | 830,234 | 794,667 |
TNMP | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 1 | ||
Gross margin | $ 224,080 | 182,857 | 164,896 |
Other operating expenses | 124,519 | 114,228 | 104,852 |
Depreciation and amortization | 98,316 | 90,440 | 87,799 |
Operating income | 135,967 | 100,118 | 88,453 |
Interest income | 0 | 0 | 0 |
Other income (deductions) | 8,653 | 5,408 | 6,828 |
Interest charges | (37,192) | (33,735) | (30,388) |
Earnings before Income Taxes | 107,428 | 71,791 | 64,893 |
Income taxes (benefit) | 15,161 | 7,912 | 6,308 |
Net Earnings | 92,267 | 63,879 | 58,585 |
Valencia non-controlling interest | 0 | 0 | 0 |
Subsidiary preferred stock dividends | 0 | 0 | 0 |
Net Earnings Attributable to PNMR | 92,267 | 63,879 | 58,585 |
Total Assets | 2,746,601 | 2,364,772 | 2,132,580 |
Goodwill | 226,665 | 226,665 | 226,665 |
Utility margin | 358,802 | 304,786 | 281,104 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Gross margin | 0 | 0 | 0 |
Other operating expenses | (22,031) | (9,840) | (4,419) |
Depreciation and amortization | 25,725 | 23,302 | 22,488 |
Operating income | (3,694) | (13,462) | (18,069) |
Interest income | 1,279 | 57 | (246) |
Other income (deductions) | (2,278) | (726) | (1,108) |
Interest charges | (29,643) | (11,782) | (19,389) |
Earnings before Income Taxes | (34,336) | (25,913) | (38,812) |
Income taxes (benefit) | (8,229) | (2,322) | (7,529) |
Net Earnings | (26,107) | (23,591) | (31,283) |
Valencia non-controlling interest | 0 | 0 | 0 |
Subsidiary preferred stock dividends | 0 | 0 | 0 |
Net Earnings Attributable to PNMR | (26,107) | (23,591) | (31,283) |
Total Assets | 238,610 | 241,980 | 226,241 |
Goodwill | 0 | 0 | 0 |
Utility margin | 0 | 0 | 0 |
Electricity | |||
Segment Reporting Information [Line Items] | |||
Electric Operating Revenues | 2,249,555 | 1,779,873 | 1,523,012 |
Cost of energy | 987,941 | 644,853 | 447,241 |
Utility margin | 1,261,614 | 1,135,020 | 1,075,771 |
Electricity | PNM | |||
Segment Reporting Information [Line Items] | |||
Electric Operating Revenues | 1,766,825 | 1,362,020 | 1,139,834 |
Cost of energy | 864,013 | 531,786 | 345,167 |
Utility margin | 902,812 | 830,234 | 794,667 |
Electricity | TNMP | |||
Segment Reporting Information [Line Items] | |||
Electric Operating Revenues | 482,730 | 417,853 | 383,178 |
Cost of energy | 123,928 | 113,067 | 102,074 |
Utility margin | 358,802 | 304,786 | 281,104 |
Electricity | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Electric Operating Revenues | 0 | 0 | 0 |
Cost of energy | 0 | 0 | 0 |
Utility margin | $ 0 | $ 0 | $ 0 |
Segment Information - Schedul_2
Segment Information - Schedule of Gross Margin (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Gross margin | $ 740,455 | $ 648,949 | $ 606,727 |
Transmission and distribution costs | 94,684 | 81,335 | 77,943 |
Depreciation and amortization | 279,128 | 260,805 | 253,124 |
Utility margin | 1,261,614 | 1,135,020 | 1,075,771 |
Electricity, Generation | |||
Segment Reporting Information [Line Items] | |||
Energy production costs | 147,347 | 143,931 | 137,977 |
Public Service Company of New Mexico | |||
Segment Reporting Information [Line Items] | |||
Gross margin | 516,375 | 466,092 | 441,831 |
Transmission and distribution costs | 58,278 | 49,846 | 49,534 |
Depreciation and amortization | 180,812 | 170,365 | 165,325 |
Utility margin | 902,812 | 830,234 | 794,667 |
Public Service Company of New Mexico | Electricity, Generation | |||
Segment Reporting Information [Line Items] | |||
Energy production costs | 147,347 | 143,931 | 137,977 |
Texas-New Mexico Power Company | |||
Segment Reporting Information [Line Items] | |||
Gross margin | 224,080 | 182,857 | 164,896 |
Transmission and distribution costs | 36,406 | 31,489 | 28,409 |
Depreciation and amortization | 98,316 | 90,440 | 87,799 |
Utility margin | 358,802 | 304,786 | 281,104 |
Texas-New Mexico Power Company | Electricity, Generation | |||
Segment Reporting Information [Line Items] | |||
Energy production costs | 0 | 0 | 0 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Gross margin | 0 | 0 | 0 |
Transmission and distribution costs | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Utility margin | 0 | 0 | 0 |
Corporate and Other | Electricity, Generation | |||
Segment Reporting Information [Line Items] | |||
Energy production costs | $ 0 | $ 0 | $ 0 |
Segment Information - Major Cus
Segment Information - Major Customers (Details) - Customer Concentration Risk - Electric operating revenues | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk | 24% | 11% | |
Texas-New Mexico Power Company | REP A | |||
Concentration Risk [Line Items] | |||
Concentration risk | 27% | 23% | 21% |
Texas-New Mexico Power Company | REP B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 20% | 19% | 18% |
Texas-New Mexico Power Company | REP C | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10% | 11% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 2,222,929 | $ 2,108,474 | $ 1,741,750 |
Total Other Comprehensive Income | 5,888 | 7,247 | 20,194 |
Ending Balance | 2,244,926 | 2,222,929 | 2,108,474 |
Public Service Company of New Mexico | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 2,015,264 | 1,863,752 | 1,512,431 |
Total Other Comprehensive Income | (2,399) | 6,575 | 20,544 |
Ending Balance | 1,960,324 | 2,015,264 | 1,863,752 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (71,936) | (79,183) | (99,377) |
Amounts reclassified from AOCI (pre-tax) | 2,101 | (2,320) | (2,937) |
Income tax impact of amounts reclassified | (533) | 589 | 746 |
Other OCI changes (pre-tax) | 5,792 | 12,034 | 30,006 |
Income tax impact of other OCI changes | (1,472) | (3,056) | (7,621) |
Total Other Comprehensive Income | 5,888 | 7,247 | 20,194 |
Ending Balance | (66,048) | (71,936) | (79,183) |
Total | Public Service Company of New Mexico | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (71,936) | (78,511) | (99,055) |
Amounts reclassified from AOCI (pre-tax) | 3,277 | (1,417) | (1,197) |
Income tax impact of amounts reclassified | (832) | 360 | 304 |
Other OCI changes (pre-tax) | (6,493) | 10,230 | 28,735 |
Income tax impact of other OCI changes | 1,649 | (2,598) | (7,298) |
Total Other Comprehensive Income | (2,399) | 6,575 | 20,544 |
Ending Balance | (74,335) | (71,936) | (78,511) |
Unrealized Gains on Available-for-Sale Securities | Public Service Company of New Mexico | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 11,715 | 20,403 | 10,638 |
Amounts reclassified from AOCI (pre-tax) | (3,827) | (9,765) | (9,497) |
Income tax impact of amounts reclassified | 972 | 2,480 | 2,412 |
Other OCI changes (pre-tax) | (1,928) | (1,881) | 22,586 |
Income tax impact of other OCI changes | 490 | 478 | (5,736) |
Total Other Comprehensive Income | (4,293) | (8,688) | 9,765 |
Ending Balance | 7,422 | 11,715 | 20,403 |
Pension Liability Adjustment | Public Service Company of New Mexico | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (83,651) | (98,914) | (109,693) |
Amounts reclassified from AOCI (pre-tax) | 7,104 | 8,348 | 8,300 |
Income tax impact of amounts reclassified | (1,804) | (2,120) | (2,108) |
Other OCI changes (pre-tax) | (4,565) | 12,111 | 6,149 |
Income tax impact of other OCI changes | 1,159 | (3,076) | (1,562) |
Total Other Comprehensive Income | 1,894 | 15,263 | 10,779 |
Ending Balance | (81,757) | (83,651) | (98,914) |
Fair Value Adjustment for Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | (672) | (322) |
Amounts reclassified from AOCI (pre-tax) | (1,176) | (903) | (1,740) |
Income tax impact of amounts reclassified | 299 | 229 | 442 |
Other OCI changes (pre-tax) | 12,285 | 1,804 | 1,271 |
Income tax impact of other OCI changes | (3,121) | (458) | (323) |
Total Other Comprehensive Income | 8,287 | 672 | (350) |
Ending Balance | $ 8,287 | $ 0 | $ (672) |
Electric Operating Revenues - N
Electric Operating Revenues - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | May 31, 2022 MW | Jan. 01, 2019 | Jan. 01, 2018 MW | |
Contract with Customers, Asset and Liability [Roll Forward] | |||||
Allowance for credit loss | $ (2.3) | $ (1.1) | |||
Other receivables, allowance for credit loss | 0 | 1 | |||
Capitalized contract cost, amortization period | 5 years | ||||
Contract assets | 11.9 | 0.6 | |||
Texas-New Mexico Power Company | |||||
Contract with Customers, Asset and Liability [Roll Forward] | |||||
Regulatory assets from defaulting REP's | $ 0.8 | ||||
Public Service Company of New Mexico | |||||
Contract with Customers, Asset and Liability [Roll Forward] | |||||
Expected exposure to market risk (in megawatts) | MW | 65 | 65 | |||
Power to be sold to third party (in megawatts) | MW | 36 | 50 | 36 | ||
Contract with customers, net | $ 151.4 | $ 94.9 |
Electric Operating Revenues - D
Electric Operating Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | $ 2,250,217 | $ 1,744,681 | $ 1,512,221 |
Alternative revenue programs | (19,485) | (3,764) | (11,994) |
Other electric operating revenue | 18,823 | 38,956 | 22,785 |
Electric Operating Revenues | 2,249,555 | 1,779,873 | 1,523,012 |
Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Electric Operating Revenues | 2,249,555 | 1,779,873 | 1,523,012 |
Transmission | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 263,203 | 182,032 | 138,230 |
Miscellaneous | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 9,207 | 8,564 | 9,194 |
Wholesale energy sales | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 534,196 | 184,132 | 50,277 |
Public Service Company of New Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 1,747,310 | 1,327,172 | 1,120,580 |
Alternative revenue programs | 692 | (4,108) | (3,531) |
Other electric operating revenue | 18,823 | 38,956 | 22,785 |
Electric Operating Revenues | 1,766,825 | 1,362,020 | 1,139,834 |
Public Service Company of New Mexico | Transmission | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 149,421 | 87,880 | 59,856 |
Public Service Company of New Mexico | Miscellaneous | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 5,390 | 4,770 | 5,456 |
Public Service Company of New Mexico | Wholesale energy sales | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 534,196 | 184,132 | 50,277 |
Texas-New Mexico Power Company | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 502,907 | 417,509 | 391,641 |
Alternative revenue programs | (20,177) | 344 | (8,463) |
Other electric operating revenue | 0 | 0 | 0 |
Electric Operating Revenues | 482,730 | 417,853 | 383,178 |
Texas-New Mexico Power Company | Transmission | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 113,782 | 94,152 | 78,374 |
Texas-New Mexico Power Company | Miscellaneous | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 3,817 | 3,794 | 3,738 |
Texas-New Mexico Power Company | Wholesale energy sales | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 0 | 0 | 0 |
Residential | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 672,650 | 643,516 | 640,918 |
Residential | Public Service Company of New Mexico | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 484,699 | 484,720 | 482,852 |
Residential | Texas-New Mexico Power Company | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 187,951 | 158,796 | 158,066 |
Commercial | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 576,222 | 544,787 | 510,500 |
Commercial | Public Service Company of New Mexico | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 422,163 | 419,251 | 392,257 |
Commercial | Texas-New Mexico Power Company | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 154,059 | 125,536 | 118,243 |
Industrial | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 122,021 | 117,568 | 118,212 |
Industrial | Public Service Company of New Mexico | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 85,102 | 88,479 | 90,845 |
Industrial | Texas-New Mexico Power Company | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 36,919 | 29,089 | 27,367 |
Public authority | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 27,709 | 28,862 | 28,979 |
Public authority | Public Service Company of New Mexico | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 21,330 | 22,720 | 23,126 |
Public authority | Texas-New Mexico Power Company | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 6,379 | 6,142 | 5,853 |
Economy energy service | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 45,009 | 35,220 | 15,911 |
Economy energy service | Public Service Company of New Mexico | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | 45,009 | 35,220 | 15,911 |
Economy energy service | Texas-New Mexico Power Company | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Contracts with customers | $ 0 | $ 0 | $ 0 |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net Earnings Attributable to PNMR | $ 169,530 | $ 195,829 | $ 172,775 |
Average Number of Common Shares: | |||
Outstanding during year (in shares) | 85,835 | 85,835 | 79,941 |
Vested awards of restricted stock (in shares) | 287 | 235 | 216 |
Average Shares – Basic (in shares) | 86,122 | 86,070 | 80,157 |
Dilutive Effect of Common Stock Equivalents: | |||
PNMR 2020 Forward Equity Sale Agreements (in shares) | 0 | 0 | 106 |
Stock options and restricted stock (in shares) | 47 | 41 | 40 |
Average Shares – Diluted (in shares) | 86,169 | 86,111 | 80,303 |
Net Earnings Attributable to PNMR Per Share of Common Stock: | |||
Basic (in dollars per share) | $ 1.97 | $ 2.28 | $ 2.16 |
Diluted (in dollars per share) | 1.97 | 2.27 | 2.15 |
Dividends Declared per Common Share (in dollars per share) | $ 1.41 | $ 1.33 | $ 1.25 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | ||||
Dec. 15, 2020 | Oct. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||
Payment of dividends | $ 255,800,000 | ||||
Dividends payable, maximum distribution (in dollars per share) | $ 0.3675 | ||||
PNMR 2020 Forward Equity Sales Agreement | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction (in shares) | 6,200,000 | ||||
Sale of stock, price per share (in dollars per share) | $ 45.805 | ||||
Sale of stock, consideration received on transaction | $ 283,100,000 | ||||
Payments of stock issuance costs | $ 100,000 | ||||
Line of Credit | |||||
Class of Stock [Line Items] | |||||
Debt-to-capital ratio (not more than) | 70% | ||||
Public Service Company of New Mexico | |||||
Class of Stock [Line Items] | |||||
Equity contribution from parent | $ 0 | $ 53,000,000 | $ 230,000,000 | ||
Requirement to obtain approval to transfer more than a percentage of PNM's assets | 5% | ||||
Preferred stock, dividend rate | 4.58% | ||||
Preferred stock, redemption percent | 102% | ||||
Preferred stock outstanding (in shares) | 115,293 | 115,293 | |||
Preferred stock, cumulative shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Public Service Company of New Mexico | Line of Credit | |||||
Class of Stock [Line Items] | |||||
Debt-to-capital ratio (not more than) | 65% | ||||
Public Service Company of New Mexico | Affiliated Entity | |||||
Class of Stock [Line Items] | |||||
Cash dividends paid to parent company by consolidated subsidiaries | $ 153,500,000 | $ 60,000,000 | 40,700,000 | ||
Texas-New Mexico Power Company | |||||
Class of Stock [Line Items] | |||||
Equity contribution from parent | $ 68,000,000 | 52,000,000 | 71,000,000 | ||
Preferred stock, cumulative shares authorized (in shares) | 1,000,000 | ||||
Texas-New Mexico Power Company | Line of Credit | |||||
Class of Stock [Line Items] | |||||
Debt-to-capital ratio (not more than) | 65% | ||||
Texas-New Mexico Power Company | Affiliated Entity | |||||
Class of Stock [Line Items] | |||||
Cash dividends paid to parent company by consolidated subsidiaries | $ 0 | $ 0 | $ 58,500,000 | ||
PNMR and TNMP | |||||
Class of Stock [Line Items] | |||||
Preferred stock outstanding (in shares) | 0 |
Financing - Financing Activitie
Financing - Financing Activities (Details) | 12 Months Ended | ||||||||||||||||||||||
Nov. 10, 2022 USD ($) $ / shares | Oct. 31, 2022 USD ($) derivative | Sep. 30, 2022 USD ($) derivative | Aug. 05, 2022 USD ($) | May 20, 2022 USD ($) | May 02, 2022 USD ($) derivative | Jan. 24, 2022 USD ($) | Dec. 02, 2021 USD ($) | Jul. 14, 2021 USD ($) | Jun. 18, 2021 USD ($) | May 18, 2021 USD ($) | Mar. 09, 2021 USD ($) | Dec. 22, 2020 USD ($) | Dec. 21, 2020 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2017 USD ($) derivative | Jun. 01, 2022 USD ($) derivative | Apr. 27, 2022 USD ($) bond | Dec. 31, 2021 USD ($) $ / shares | Oct. 01, 2021 USD ($) | Aug. 16, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 30, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Common stock, no par value (in dollars per share) | $ / shares | $ 0 | $ 0 | |||||||||||||||||||||
Cash flow hedge derivative instrument assets at fair value | $ 11,100,000 | ||||||||||||||||||||||
Interest rate contract | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Number of derivatives | derivative | 3 | ||||||||||||||||||||||
Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Derivative asset, number of instruments held | derivative | 2 | ||||||||||||||||||||||
PNMR 2022 ATM Program | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Distribution agreement, sale of stock | $ 200,000,000 | ||||||||||||||||||||||
Common stock, no par value (in dollars per share) | $ / shares | $ 0 | ||||||||||||||||||||||
PNMR 2020 Delayed-Draw Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Available borrowing capacity | $ 220,000,000 | ||||||||||||||||||||||
Term loans | $ 300,000,000 | ||||||||||||||||||||||
Proceeds from long-term lines of credit | 80,000,000 | ||||||||||||||||||||||
PNMR 2020 Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term loans | $ 150,000,000 | ||||||||||||||||||||||
PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, term | 2 years | ||||||||||||||||||||||
Variable Rate Short-Term Debt | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||||||||||||
Term of derivatives | 4 years | ||||||||||||||||||||||
Variable Rate Short-Term Debt | Interest rate 1 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed interest rate | 1.926% | ||||||||||||||||||||||
Variable Rate Short-Term Debt | Interest rate 2 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed interest rate | 1.823% | ||||||||||||||||||||||
Variable Rate Short-Term Debt | Interest rate 3 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed interest rate | 1.629% | ||||||||||||||||||||||
Variable Rate Debt | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, term | 15 months | 19 months | 20 months | ||||||||||||||||||||
Derivative asset, number of instruments held | derivative | 2 | 2 | |||||||||||||||||||||
Fixed interest rate | 2.52% | 2.65% | |||||||||||||||||||||
Derivative asset, notional amount | $ 200,000,000 | ||||||||||||||||||||||
Derivative, notional amount | $ 100,000,000 | ||||||||||||||||||||||
Variable Rate Debt, Tranche 1 | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable interest rate | 4.17% | ||||||||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | $ 150,000,000 | |||||||||||||||||||||
Variable Rate Debt, Tranche 2 | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable interest rate | 4.18% | ||||||||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | $ 200,000,000 | |||||||||||||||||||||
Fixed Rate Debt | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, term | 14 months | ||||||||||||||||||||||
Derivative asset, number of instruments held | derivative | 2 | ||||||||||||||||||||||
Fixed Rate Debt, Tranche 1 | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed interest rate | 4.66% | ||||||||||||||||||||||
Derivative asset, notional amount | $ 100,000,000 | ||||||||||||||||||||||
Fixed Rate, Tranche 2 | Interest rate contract | Cash Flow Hedge | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed interest rate | 4.65% | ||||||||||||||||||||||
Derivative asset, notional amount | $ 200,000,000 | ||||||||||||||||||||||
Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Short-term debt - affiliate | 150,000,000 | ||||||||||||||||||||||
PNM and TNMP | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Short-term debt - affiliate | $ 0 | $ 0 | |||||||||||||||||||||
PNM | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Maturity term over which financings require regulator approval (more than) | 18 months | ||||||||||||||||||||||
Common stock, no par value (in dollars per share) | $ / shares | $ 0 | $ 0 | |||||||||||||||||||||
PNM | PNM 2019 $— Million Term Loan due June 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 40,000,000 | ||||||||||||||||||||||
Repayments of debt | $ 40,000,000 | ||||||||||||||||||||||
PNMR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Short-term debt - affiliate | $ 5,300,000 | $ 6,400,000 | |||||||||||||||||||||
PNMR | PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | $ 220,000,000 | ||||||||||||||||||||||
PNMR | PNMR 2021 Delayed-Draw Term Loan due May 2025 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term loans | 1,000,000,000 | 900,000,000 | |||||||||||||||||||||
PNMR Development | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Financing capacity | $ 40,000,000 | ||||||||||||||||||||||
Short-term debt - affiliate | $ 0 | 0 | |||||||||||||||||||||
Line of Credit | PNMR 2021 Delayed-Draw Term Loan due May 2025 | Revolving Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Proceeds from long-term lines of credit | $ 100,000,000 | $ 50,000,000 | 850,000,000 | ||||||||||||||||||||
Interest rates on outstanding borrowings | 5.37% | ||||||||||||||||||||||
Line of Credit | PNMR Development Revolving Credit Facility | Revolving Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 40,000,000 | ||||||||||||||||||||||
Line of Credit | PNMR Revolving Credit Facility | Revolving Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 92,100,000 | ||||||||||||||||||||||
Line of Credit | PNM 2022 Delayed-Draw Term Loan | Revolving Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Proceeds from long-term lines of credit | $ 45,000,000 | $ 180,000,000 | |||||||||||||||||||||
Financing capacity | $ 225,000,000 | ||||||||||||||||||||||
Line of Credit | PNMR and PNMR Development | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Ratio of debt to capital (less than or equal to) | 70% | ||||||||||||||||||||||
Line of Credit | PNM and TNMP | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Ratio of debt to capital (less than or equal to) | 65% | ||||||||||||||||||||||
Senior Unsecured Notes | PNMR 3.25% 2018 SUNs due March 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||||||||||||||||
Stated percentage | 3.25% | ||||||||||||||||||||||
Repayments of debt | $ 80,000,000 | ||||||||||||||||||||||
Senior Unsecured Notes | PNM | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Shelf registration statement, capacity of issuance (up to) | $ 650,000,000 | ||||||||||||||||||||||
Senior Unsecured Notes | PNM | PNM 2021 $75.0 Million Term Loan due December 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term loans | $ 0 | 75,000,000 | |||||||||||||||||||||
Medium-term Notes | PNMR Development Term Loan due January 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | 65,000,000 | $ 65,000,000 | $ 90,000,000 | ||||||||||||||||||||
Repayments of debt | 65,000,000 | ||||||||||||||||||||||
Medium-term Notes | PNMR 2019 Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | 150,000,000 | ||||||||||||||||||||||
Medium-term Notes | PNMR 2021 Delayed-Draw Term Loan due May 2025 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 65,000,000 | ||||||||||||||||||||||
Bonds | PNMR 2020 Delayed-Draw Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 300,000,000 | ||||||||||||||||||||||
Bonds | PNMR 2019 Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 150,000,000 | ||||||||||||||||||||||
Bonds | PNMR 2020 Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | 150,000,000 | ||||||||||||||||||||||
Bonds | PNMR 2018 Two-Year Term Loan due December 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | $ 50,000,000 | ||||||||||||||||||||||
Bonds | PNMR 2021 Delayed-Draw Term Loan due May 2025 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | $ 150,000,000 | ||||||||||||||||||||||
Bonds | Pollution Control Revenue Bonds Due June 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term loans | 100,300,000 | ||||||||||||||||||||||
Bonds | PNM 2021 Fixed Rate PCRBs | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated percentage | 0.875% | ||||||||||||||||||||||
Bonds | Pollution Control Revenue Bonds, Due 2033 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated percentage | 2.15% | ||||||||||||||||||||||
Term loans | $ 146,000,000 | $ 146,000,000 | |||||||||||||||||||||
Bonds | PNM | PNM 2021 $75.0 Million Term Loan due December 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Variable interest rate | 5.09% | ||||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Term loans | $ 31,500,000 | 104,500,000 | |||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June 2038 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | 36,000,000 | $ 36,000,000 | |||||||||||||||||||||
Stated percentage | 1.05% | ||||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June 2040, 1 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 37,000,000 | $ 37,000,000 | |||||||||||||||||||||
Stated percentage | 2.125% | ||||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June 2040, 2 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 11,500,000 | ||||||||||||||||||||||
Stated percentage | 1.20% | ||||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June 2042 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 20,000,000 | ||||||||||||||||||||||
Stated percentage | 2.45% | ||||||||||||||||||||||
Bonds | PNM | Pollution Control Revenue Bonds Due June 2024 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated percentage | 3% | ||||||||||||||||||||||
Bonds | Texas-New Mexico Power Company | TNMP 2022 Bond Purchase Agreement | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 160,000,000 | ||||||||||||||||||||||
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 percentage | 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 percentage | 3.81% | ||||||||||||||||||||||
Notes Payable to Banks | PNM | PNM 2021 $75.0 Million Term Loan due December 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 75,000,000 | ||||||||||||||||||||||
Senior Notes | PNM 2020 SUNs | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated percentage | 5.35% | ||||||||||||||||||||||
Repayments of debt | $ 160,000,000 | ||||||||||||||||||||||
Senior Notes | PNM 2021 SUNs At 2.59 Percent Due July 15, 2033 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 80,000,000 | ||||||||||||||||||||||
Stated percentage | 2.59% | ||||||||||||||||||||||
Senior Notes | PNM 2021 SUNs At 3.14 Percent Due July 15, 2041 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 80,000,000 | ||||||||||||||||||||||
Stated percentage | 3.14% | ||||||||||||||||||||||
Senior Notes | 2.29% Senior Unsecured Notes Due December 30, 2031 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||||||||||||
Stated percentage | 2.29% | ||||||||||||||||||||||
Senior Notes | 2.97% Senior Unsecured Notes Due December 30, 2041 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 100,000,000 | ||||||||||||||||||||||
Stated percentage | 2.97% | ||||||||||||||||||||||
Secured Debt | Texas-New Mexico Power Company | TNMP 2021 Bond Purchase Agreement | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 65,000,000 | $ 65,000,000 | |||||||||||||||||||||
Stated percentage | 2.44% | ||||||||||||||||||||||
Secured Debt | Texas-New Mexico Power Company | TNMP First Mortgage Bonds | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||||||||||||||
Debt instrument, prepayment period | 30 days | ||||||||||||||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100% |
Financing - Short-term Debt and
Financing - Short-term Debt and Liquidity (Details) | Jan. 26, 2023 USD ($) extension_option | May 20, 2022 USD ($) extension_option | Mar. 11, 2022 USD ($) extension_option | Dec. 31, 2022 USD ($) | May 13, 2022 USD ($) | Mar. 10, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 18, 2021 USD ($) |
Short-term Debt [Line Items] | ||||||||
Letters of credit outstanding | $ 3,400,000 | |||||||
JPMorgan Chase Bank, N.A. | ||||||||
Short-term Debt [Line Items] | ||||||||
Letters of credit outstanding | 30,300,000 | |||||||
PNMR Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | $ 300,000,000 | |||||||
PNMR Revolving Credit Facility | PNM Resources | ||||||||
Short-term Debt [Line Items] | ||||||||
Interest rates on outstanding borrowings | 5.90% | |||||||
PNM Revolving Credit Facility | PNM Resources | ||||||||
Short-term Debt [Line Items] | ||||||||
Interest rates on outstanding borrowings | 5.67% | |||||||
TNMP Revolving Credit Facility | PNM Resources | ||||||||
Short-term Debt [Line Items] | ||||||||
Interest rates on outstanding borrowings | 5.29% | |||||||
PNM New Mexico Credit Facility | PNM Resources | ||||||||
Short-term Debt [Line Items] | ||||||||
Interest rates on outstanding borrowings | 5.68% | |||||||
PNM | ||||||||
Short-term Debt [Line Items] | ||||||||
Letters of credit outstanding | $ 0 | |||||||
PNM | Lines of credit | ||||||||
Short-term Debt [Line Items] | ||||||||
NMPRC approved credit facility | $ 40,000,000 | |||||||
PNM | PNM Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | 400,000,000 | |||||||
TNMP | ||||||||
Short-term Debt [Line Items] | ||||||||
Letters of credit outstanding | $ 0 | |||||||
TNMP | TNMP Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | $ 75,000,000 | |||||||
TNMP | TNMP Revolving Credit Facility | First Mortgage Bonds at 9.50% due 2019 | ||||||||
Short-term Debt [Line Items] | ||||||||
Aggregate principal amount of bonds | $ 75,000,000 | |||||||
PNMR Development | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | $ 40,000,000 | |||||||
Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Number of extensions | extension_option | 2 | |||||||
Extension period | 1 year | |||||||
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 at 9.50% due 2019 | ||||||||
Short-term Debt [Line Items] | ||||||||
Collateral amount | $ 100,000,000 | |||||||
Subsequent Event | PNMR Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | $ 285,000,000 | |||||||
Subsequent Event | PNM | PNM Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Financing capacity | $ 380,000,000 | |||||||
Subsequent Event | Revolving Credit Facility | ||||||||
Short-term Debt [Line Items] | ||||||||
Extension period | 1 year | |||||||
Extension exercised | extension_option | 1 | |||||||
Subsequent Event | Revolving Credit Facility | TNMP | ||||||||
Short-term Debt [Line Items] | ||||||||
Extension period | 1 year | |||||||
Extension exercised | extension_option | 1 |
Financing - Schedule of Short-T
Financing - Schedule of Short-Term Debt (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 232,000,000 | $ 62,700,000 |
PNM | ||
Short-term Debt [Line Items] | ||
Short-term debt | 185,900,000 | 7,400,000 |
Texas-New Mexico Power Company | ||
Short-term Debt [Line Items] | ||
Short-term debt | 36,700,000 | 400,000 |
PNM Revolving Credit Facility | PNM | ||
Short-term Debt [Line Items] | ||
Short-term debt | 145,900,000 | 7,400,000 |
Financing capacity | 400,000,000 | |
PNM New Mexico Credit Facility | PNM | ||
Short-term Debt [Line Items] | ||
Short-term debt | 40,000,000 | 0 |
TNMP Revolving Credit Facility | Texas-New Mexico Power Company | ||
Short-term Debt [Line Items] | ||
Short-term debt | 36,700,000 | 400,000 |
Financing capacity | 75,000,000 | |
PNMR Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Short-term debt | 9,400,000 | $ 54,900,000 |
Financing capacity | $ 300,000,000 |
Financing - Long-term Debt (Det
Financing - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 156 | $ 124 |
Total | 4,077,543 | 3,699,043 |
Principal, less current maturities | 185,000 | 179,500 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 207 | 161 |
Long-term debt, excluding current maturities, gross | 3,892,543 | 3,519,543 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | (51) | (37) |
Public Service Company of New Mexico | ||
Debt Instrument [Line Items] | ||
Unamortized Discounts, (Premiums), and Issuance Costs, net | 8,445 | 9,735 |
Total | 2,009,345 | 1,890,845 |
Principal, less current maturities | 185,000 | 179,500 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 207 | 161 |
Long-term debt, excluding current maturities, gross | 1,824,345 | 1,711,345 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | 8,238 | 9,574 |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.15% due April 2033 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | 146,000 | 146,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 915 | 1,003 |
Stated percentage | 2.15% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.125% due June 2040, mandatory tender - June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 0 | 37,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 0 | 45 |
Stated percentage | 2.125% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.00% due June 2040, mandatory tender - June 1, 2024 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 37,000 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 296 | 0 |
Stated percentage | 3% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.45% due September 2042, mandatory tender - June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 0 | 20,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 0 | 17 |
Stated percentage | 2.45% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 0.875% due October 2026 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 100,345 | 100,345 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 550 | 697 |
Stated percentage | 0.875% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 1.05% due January 2038, mandatory tender - June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 0 | 36,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 0 | 75 |
Stated percentage | 1.05% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.00% due January 2038, mandatory tender - June 1, 2024 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 36,000 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 288 | 0 |
Stated percentage | 3% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 1.20% due June 2040, mandatory tender - June 1, 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 0 | 11,500 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 0 | 24 |
Stated percentage | 1.20% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 1.10% due June 2040, mandatory tender June 1, 2023 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 130,000 | 130,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 178 | 535 |
Stated percentage | 1.10% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 1.15% due June 2040, mandatory tender - June 1, 2024 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 125,000 | 125,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 383 | 639 |
Stated percentage | 1.15% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.59% due July 2033 | ||
Debt Instrument [Line Items] | ||
Stated percentage | 2.59% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 3.14% due July 2041 | ||
Debt Instrument [Line Items] | ||
Stated percentage | 3.14% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.29% due December 2031 | ||
Debt Instrument [Line Items] | ||
Stated percentage | 2.29% | |
Public Service Company of New Mexico | Senior Unsecured Notes, Pollution Control Revenue Bonds: | 2.97% due December 2041 | ||
Debt Instrument [Line Items] | ||
Stated percentage | 2.97% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.15% due May 2023 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 55,000 | 55,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 29 | 106 |
Stated percentage | 3.15% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.45% due May 2025 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 104,000 | 104,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 248 | 353 |
Stated percentage | 3.45% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.85% due August 2025 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 250,000 | 250,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 775 | 1,075 |
Stated percentage | 3.85% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.68% due May 2028 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 88,000 | 88,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 333 | 395 |
Stated percentage | 3.68% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.78% due August 2028 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 15,000 | 15,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 59 | 69 |
Stated percentage | 3.78% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.93% due May 2033 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 38,000 | 38,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 185 | 203 |
Stated percentage | 3.93% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.22% due May 2038 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 45,000 | 45,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 243 | 259 |
Stated percentage | 4.22% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.50% due May 2048 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 20,000 | 20,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 119 | 124 |
Stated percentage | 4.50% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 4.60% due August 2048 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 85,000 | 85,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 510 | 530 |
Stated percentage | 4.60% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.21% due April 2030 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 150,000 | 150,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 1,171 | 1,331 |
Stated percentage | 3.21% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.57% due April 2039 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 50,000 | 50,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 454 | 482 |
Stated percentage | 3.57% | |
Public Service Company of New Mexico | Senior Unsecured Notes: | 2.59% due July 2033 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 80,000 | 80,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 405 | 443 |
Public Service Company of New Mexico | Senior Unsecured Notes: | 3.14% due July 2041 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | 80,000 | 80,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 427 | 450 |
Public Service Company of New Mexico | Senior Unsecured Notes: | 2.29% due December 2031 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | 50,000 | 50,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 264 | 293 |
Public Service Company of New Mexico | Senior Unsecured Notes: | 2.97% due December 2041 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | 100,000 | 100,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 557 | 587 |
Public Service Company of New Mexico | Senior Unsecured Notes: | PNM 2021 $75.0 Million Term Loan due December 2022 | ||
Debt Instrument [Line Items] | ||
Term loans | 0 | 75,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 0 | 0 |
Public Service Company of New Mexico | Senior Unsecured Notes: | PNM 2022 225.0 Million Term Loan due February 2024 | ||
Debt Instrument [Line Items] | ||
Term loans | 225,000 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | 56 | 0 |
Texas-New Mexico Power Company | ||
Debt Instrument [Line Items] | ||
Unamortized Discounts, (Premiums), and Issuance Costs, net | (8,677) | (9,852) |
Total | 1,068,198 | 908,198 |
Principal, less current maturities | 0 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 0 |
Long-term debt, excluding current maturities, gross | 1,068,198 | 908,198 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | (8,677) | (9,852) |
Texas-New Mexico Power Company | First Mortgage Bonds: | 6.95% due April 2043 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | 93,198 | 93,198 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ (14,488) | (15,202) |
Stated percentage | 6.95% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 4.03% due July 2024 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 80,000 | 80,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 158 | 264 |
Stated percentage | 4.03% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.53% due February 2026 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 60,000 | 60,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 256 | 338 |
Stated percentage | 3.53% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.22% due August 2027 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 60,000 | 60,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 266 | 324 |
Stated percentage | 3.22% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.85% due June 2028 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 60,000 | 60,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 344 | 406 |
Stated percentage | 3.85% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.79% due March 2034 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 75,000 | 75,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 422 | 460 |
Stated percentage | 3.79% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.92% due March 2039 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 75,000 | 75,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 457 | 486 |
Stated percentage | 3.92% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 4.06% due March 2044 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 75,000 | 75,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 479 | 501 |
Stated percentage | 4.06% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.60% due July 2029 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 80,000 | 80,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 391 | 451 |
Stated percentage | 3.60% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 2.73% due April 2030 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 85,000 | 85,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 616 | 699 |
Stated percentage | 2.73% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.36% due April 2050 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 25,000 | 25,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 226 | 235 |
Stated percentage | 3.36% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 2.93% due July 2035 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 25,000 | 25,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 208 | 224 |
Stated percentage | 2.93% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.36% due July 2050 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 50,000 | 50,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 457 | 473 |
Stated percentage | 3.36% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 2.44% due August 2035 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 65,000 | 65,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 454 | 489 |
Stated percentage | 2.44% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 4.13% due May 12, 2052 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 65,000 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 439 | 0 |
Stated percentage | 4.13% | |
Texas-New Mexico Power Company | First Mortgage Bonds: | 3.81% due July 28, 2032 | ||
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 95,000 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 638 | 0 |
Stated percentage | 3.81% | |
PNMR | ||
Debt Instrument [Line Items] | ||
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 388 | 241 |
Total | 1,000,000 | 900,000 |
Principal, less current maturities | 0 | 0 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, Less current maturities | 0 | 0 |
Long-term debt, excluding current maturities, gross | 1,000,000 | 900,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net, excluding current maturities | 388 | 241 |
PNMR | PNMR 2021 Delayed-Draw Term Loan due May 2025 | ||
Debt Instrument [Line Items] | ||
Term loans | 1,000,000 | 900,000 |
Unamortized Discounts, (Premiums), and Issuance Costs, net | $ 388 | $ 241 |
Financing - Long-term Debt Matu
Financing - Long-term Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Debt, by Maturity [Abstract] | ||
2023 | $ 185,000 | |
2024 | 503,000 | |
2025 | 1,354,000 | |
2026 | 160,345 | |
2027 | 60,000 | |
Thereafter | 1,815,198 | |
Total | 4,077,543 | $ 3,699,043 |
PNMR | ||
Long-term Debt, by Maturity [Abstract] | ||
2023 | 0 | |
2024 | 0 | |
2025 | 1,000,000 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total | 1,000,000 | 900,000 |
Public Service Company of New Mexico | ||
Long-term Debt, by Maturity [Abstract] | ||
2023 | 185,000 | |
2024 | 423,000 | |
2025 | 354,000 | |
2026 | 100,345 | |
2027 | 0 | |
Thereafter | 947,000 | |
Total | 2,009,345 | 1,890,845 |
Texas-New Mexico Power Company | ||
Long-term Debt, by Maturity [Abstract] | ||
2023 | 0 | |
2024 | 80,000 | |
2025 | 0 | |
2026 | 60,000 | |
2027 | 60,000 | |
Thereafter | 868,198 | |
Total | $ 1,068,198 | $ 908,198 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 02, 2021 lease | Jan. 15, 2016 lease | Jan. 15, 2015 lease | |
Lessee, Lease, Description [Line Items] | |||||||
Unamortized cost of prepaid right-of-way agreements | $ 54.6 | $ 53.4 | |||||
Amortization of prepaid right-of-way agreements | 3.8 | $ 3.7 | $ 4.4 | ||||
Lessee, operating lease, unguaranteed residual value | 24.2 | ||||||
Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of leases under which lease term was extended | lease | 5 | ||||||
Lessee, operating lease, unguaranteed residual value | 11.3 | ||||||
Texas-New Mexico Power Company | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, operating lease, unguaranteed residual value | 12.9 | ||||||
Palo Verde Nuclear Generating Station, Units 1 And 4 | Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [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 | ||||||
Palo Verde Nuclear Generating Station, Unit 2 | Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [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 | ||||||
Palo Verde Nuclear Generating Station | Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Loss contingency, range of possible loss, portion not accrued | 14.1 | ||||||
Navajo Nation | Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Right-of-way lease, annual payments | 6 | ||||||
Right-of-way lease, payments | 7.9 | ||||||
PNM Owned Assets | Subsequent Event | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Proceeds from sale of assets | $ 17.7 | ||||||
Nuclear Fuel | Subsequent Event | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Proceeds from sale of assets | $ 17.3 | ||||||
Equipment | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, residual value of leased asset | 2.2 | ||||||
Equipment | Public Service Company of New Mexico | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, residual value of leased asset | 1 | ||||||
Equipment | Texas-New Mexico Power Company | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, residual value of leased asset | $ 1.2 |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease assets, net of amortization | $ 55,982 | $ 79,511 |
Current portion of operating lease liabilities | 18,781 | 27,218 |
Long-term portion of operating lease liabilities | 41,336 | 55,993 |
Public Service Company of New Mexico | ||
Operating leases: | ||
Operating lease assets, net of amortization | 52,556 | 73,903 |
Current portion of operating lease liabilities | 17,239 | 25,278 |
Long-term portion of operating lease liabilities | 39,633 | 52,552 |
Texas-New Mexico Power Company | ||
Operating leases: | ||
Operating lease assets, net of amortization | 3,426 | 5,264 |
Current portion of operating lease liabilities | 1,543 | 1,882 |
Long-term portion of operating lease liabilities | $ 1,703 | $ 3,155 |
Lease Commitments - Finance Lea
Lease Commitments - Finance Lease Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing leases: | ||
Non-utility property | $ 39,738 | $ 31,695 |
Accumulated depreciation | (16,189) | (9,660) |
Non-utility property, net | 23,549 | 22,035 |
Other current liabilities | $ 7,363 | $ 5,813 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other deferred credits | $ 16,123 | $ 16,075 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other deferred credits | Other deferred credits |
Public Service Company of New Mexico | ||
Financing leases: | ||
Non-utility property | $ 19,324 | $ 15,171 |
Accumulated depreciation | (7,726) | (4,550) |
Non-utility property, net | 11,598 | 10,621 |
Other current liabilities | $ 3,441 | $ 2,731 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other deferred credits | $ 8,079 | $ 7,732 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other deferred credits | Other deferred credits |
Texas-New Mexico Power Company | ||
Financing leases: | ||
Non-utility property | $ 20,084 | $ 16,181 |
Accumulated depreciation | (8,202) | (4,923) |
Non-utility property, net | 11,882 | 11,258 |
Other current liabilities | $ 3,867 | $ 2,994 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other deferred credits | $ 8,028 | $ 8,273 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other deferred credits | Other deferred credits |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term (years): | ||
Operating leases | 6 years 5 months 23 days | 5 years 5 months 8 days |
Financing leases | 3 years 8 months 4 days | 4 years 2 months 12 days |
Weighted average discount rate: | ||
Operating leases | 4% | 3.99% |
Financing leases | 3.44% | 2.65% |
Public Service Company of New Mexico | ||
Weighted average remaining lease term (years): | ||
Operating leases | 6 years 8 months 26 days | 5 years 7 months 6 days |
Financing leases | 3 years 11 months 26 days | 4 years 3 months 18 days |
Weighted average discount rate: | ||
Operating leases | 4.01% | 3.99% |
Financing leases | 3.36% | 2.60% |
Texas-New Mexico Power Company | ||
Weighted average remaining lease term (years): | ||
Operating leases | 2 years 1 month 28 days | 2 years 10 months 24 days |
Financing leases | 3 years 4 months 20 days | 4 years 1 month 20 days |
Weighted average discount rate: | ||
Operating leases | 3.94% | 3.98% |
Financing leases | 3.53% | 2.71% |
Lease Commitments - Components
Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 28,835 | $ 29,270 |
Amounts capitalized | (2,417) | (2,951) |
Total operating lease expense | 26,418 | 26,319 |
Financing lease cost: | ||
Amortization of right-of-use assets | 6,529 | 5,277 |
Interest on lease liabilities | 659 | 574 |
Amounts capitalized | (5,471) | (4,404) |
Total financing lease expense | 1,717 | 1,447 |
Variable lease expense | 890 | 380 |
Short-term lease expense | 3,109 | 3,035 |
Total lease expense for the period | 32,134 | 31,181 |
Cooling Towers | ||
Financing lease cost: | ||
Short-term lease expense | 2,700 | 2,500 |
Insurance settlements receivable | 2,700 | 1,800 |
Public Service Company of New Mexico | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 26,764 | 26,690 |
Amounts capitalized | (690) | (836) |
Total operating lease expense | 26,074 | 25,854 |
Financing lease cost: | ||
Amortization of right-of-use assets | 3,175 | 2,507 |
Interest on lease liabilities | 327 | 263 |
Amounts capitalized | (2,264) | (1,726) |
Total financing lease expense | 1,238 | 1,044 |
Variable lease expense | 890 | 380 |
Short-term lease expense | 3,058 | 2,972 |
Total lease expense for the period | 31,260 | 30,250 |
Texas-New Mexico Power Company | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 2,020 | 2,445 |
Amounts capitalized | (1,728) | (2,115) |
Total operating lease expense | 292 | 330 |
Financing lease cost: | ||
Amortization of right-of-use assets | 3,279 | 2,682 |
Interest on lease liabilities | 330 | 307 |
Amounts capitalized | (3,208) | (2,678) |
Total financing lease expense | 401 | 311 |
Variable lease expense | 0 | 0 |
Short-term lease expense | 5 | 6 |
Total lease expense for the period | $ 698 | $ 647 |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Supplemental Cash Flows Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 25,984 | $ 26,129 |
Operating cash flows from financing leases | 141 | 128 |
Financing cash flows from financing leases | 1,711 | 1,296 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 3,103 | 317 |
Financing leases | 8,266 | 6,958 |
Public Service Company of New Mexico | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 25,687 | 25,655 |
Operating cash flows from financing leases | 96 | 90 |
Financing cash flows from financing leases | 1,123 | 870 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 2,924 | 0 |
Financing leases | 4,205 | 3,792 |
Texas-New Mexico Power Company | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 246 | 323 |
Operating cash flows from financing leases | 43 | 34 |
Financing cash flows from financing leases | 499 | 339 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 179 | 317 |
Financing leases | $ 4,061 | $ 3,126 |
Lease Commitments - Schedule _3
Lease Commitments - Schedule of Future Expected Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing | |
2023 | $ 8,029 |
2024 | 6,606 |
2025 | 4,734 |
2026 | 2,988 |
2027 | 1,539 |
Later years | 1,162 |
Total minimum lease payments | 25,058 |
Less: Imputed interest | 1,572 |
Lease liabilities as of December 31, 2022 | 23,486 |
Operating | |
2023 | 19,037 |
2024 | 9,334 |
2025 | 7,595 |
2026 | 7,490 |
2027 | 7,018 |
Later years | 17,366 |
Total minimum lease payments | 67,840 |
Less: Imputed interest | 7,723 |
Lease liabilities as of December 31, 2022 | 60,117 |
Public Service Company of New Mexico | |
Financing | |
2023 | 3,764 |
2024 | 3,031 |
2025 | 2,140 |
2026 | 1,570 |
2027 | 1,066 |
Later years | 788 |
Total minimum lease payments | 12,359 |
Less: Imputed interest | 839 |
Lease liabilities as of December 31, 2022 | 11,520 |
Operating | |
2023 | 17,566 |
2024 | 8,294 |
2025 | 7,070 |
2026 | 7,041 |
2027 | 7,018 |
Later years | 17,366 |
Total minimum lease payments | 64,355 |
Less: Imputed interest | 7,483 |
Lease liabilities as of December 31, 2022 | 56,872 |
Texas-New Mexico Power Company | |
Financing | |
2023 | 4,210 |
2024 | 3,562 |
2025 | 2,592 |
2026 | 1,417 |
2027 | 473 |
Later years | 375 |
Total minimum lease payments | 12,629 |
Less: Imputed interest | 734 |
Lease liabilities as of December 31, 2022 | 11,895 |
Operating | |
2023 | 1,330 |
2024 | 1,030 |
2025 | 525 |
2026 | 449 |
2027 | 0 |
Later years | 0 |
Total minimum lease payments | 3,334 |
Less: Imputed interest | 88 |
Lease liabilities as of December 31, 2022 | $ 3,246 |
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 | 12 Months Ended | ||||||||
Mar. 18, 2022 MW | Feb. 17, 2022 MW | Nov. 15, 2015 power_purchase_agreement | Jun. 30, 2022 MW | Dec. 31, 2022 USD ($) MW | Mar. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) power_purchase_agreement | Dec. 31, 2022 USD ($) MWh MW | Dec. 31, 2021 USD ($) MWh MW power_purchase_agreement | Dec. 31, 2020 USD ($) | May 31, 2022 MW | Jan. 01, 2018 MW | |
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of purchase power agreements | power_purchase_agreement | 3 | |||||||||||
Contract in a net liability position | $ 15,300,000 | $ 15,300,000 | ||||||||||
Cash collateral | 0 | 0 | ||||||||||
Net exposure | $ 13,100,000 | 13,100,000 | ||||||||||
Available for sale securities realized impairment losses | $ (25,800,000) | $ 700,000 | $ (3,200,000) | |||||||||
Minimum | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets distribution period | 10 years | |||||||||||
Maximum | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets distribution period | 15 years | |||||||||||
Equity Securities | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 35% | 35% | ||||||||||
Alternative Investments | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 15% | 15% | ||||||||||
Fixed income | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 50% | 50% | ||||||||||
PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of purchase power agreements | power_purchase_agreement | 2 | 3 | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 65 | 327 | ||||||||||
Expected exposure to market risk (in megawatts) | MW | 65 | 65 | 65 | |||||||||
Power to be sold to third party (in megawatts) | MW | 36 | 36 | 50 | 36 | ||||||||
Amounts recognized for the legal right to reclaim cash collateral | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Amounts posted as cash collateral under margin arrangements | 10,500,000 | 500,000 | 10,500,000 | 500,000 | ||||||||
Obligations to return cash collateral | 200,000 | 900,000 | $ 200,000 | $ 900,000 | ||||||||
Number Of Purchase Power Agreement Not Considered Derivatives | power_purchase_agreement | 2 | |||||||||||
PNM | Natural Gas Cost | Unusual Weather | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Cost of energy and production costs | $ 20,000,000 | |||||||||||
PNM | Electricity, Purchased | Unusual Weather | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Cost of energy and production costs | $ 8,000,000 | |||||||||||
PNM | Commodity Contract | Fair Value Hedging | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Power-related contracts (MWh) | MWh | 432,200 | 122,400 | ||||||||||
PNM | Commodity Contract | Designated as hedging instrument | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Derivative asset, fair value, gross liability | 0 | 500,000 | $ 0 | $ 500,000 | ||||||||
Derivative asset, fair value, gross asset | 0 | 500,000 | 0 | 500,000 | ||||||||
Other current assets | 9,780,000 | 684,000 | 9,780,000 | 684,000 | ||||||||
Current derivative liability | 19,209,000 | 2,275,000 | 19,209,000 | 2,275,000 | ||||||||
PNM | Fuel and purchased power costs | Commodity Contract | Designated as hedging instrument | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Other current assets | 9,800,000 | 200,000 | 9,800,000 | 200,000 | ||||||||
Current derivative liability | $ 19,200,000 | 1,800,000 | $ 19,200,000 | $ 1,800,000 | ||||||||
PNM | Portfolio One | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 35 | 270 | 85 | 85 | ||||||||
PNM | Portfolio Two | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 25 | 150 | 40 | |||||||||
PNM | Portfolio Three | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | MW | 40 | 40 | 150 | |||||||||
PNM | Tri-State | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Power to be sold to third party (in megawatts) | MW | 100 | 100 | ||||||||||
Texas-New Mexico Power Company | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Cost of energy and production costs | $ 123,928,000 | $ 113,067,000 | $ 102,074,000 | |||||||||
Texas-New Mexico Power Company | Equity Securities | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 16% | 16% | ||||||||||
Texas-New Mexico Power Company | Alternative Investments | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 14% | 14% | ||||||||||
Texas-New Mexico Power Company | Fixed income | Pension Plan | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Investment allocation targets | 70% | 70% | ||||||||||
Measured on a recurring basis | PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Debt securities, available-for-sale | $ 417,476,000 | 463,126,000 | $ 417,476,000 | 463,126,000 | ||||||||
Nuclear Decommissioning Trust | Measured on a recurring basis | PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Debt securities, available-for-sale | 325,300,000 | 394,500,000 | 325,300,000 | 394,500,000 | ||||||||
Mine Reclamation Trust | Measured on a recurring basis | PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Debt securities, available-for-sale | 77,500,000 | 68,600,000 | 77,500,000 | 68,600,000 | ||||||||
SJGS Decommissioning Trust | Measured on a recurring basis | PNM | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Debt securities, available-for-sale | $ 14,700,000 | $ 0 | $ 14,700,000 | $ 0 |
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 Contract - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Other current assets | $ 9,780 | $ 684 |
Other deferred charges | 0 | 0 |
Derivative asset | 9,780 | 684 |
Other current liabilities | (19,209) | (2,275) |
Other deferred credits | 0 | 0 |
Derivative liability | (19,209) | (2,275) |
Net | $ (9,429) | $ (1,591) |
Fair Value of Derivative and _5
Fair Value of Derivative and Other Financial Instruments - Investment in NDT and Gross Realized Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity securities: | |||
Net gains (losses) from equity securities sold | $ (6,940) | $ 8,738 | $ 5,861 |
Net gains (losses) from equity securities still held | (38,025) | (442) | 17,707 |
Total net gains (losses) on equity securities | (44,965) | 8,296 | 23,568 |
Available-for-sale debt securities: | |||
Net gains (losses) on debt securities | (33,392) | 8,554 | (1,969) |
Net gains (losses) on investment securities | (78,357) | 16,850 | 21,599 |
Public Service Company of New Mexico | |||
Available-for-sale debt securities: | |||
Proceeds from sales | 526,448 | 459,867 | 590,998 |
Gross realized gains | 22,071 | 39,408 | 35,904 |
Gross realized (losses) | $ (36,623) | $ (22,815) | $ (28,817) |
Fair Value of Derivative and _6
Fair Value of Derivative and Other Financial Instruments - Maturities of Securities (Details) - PNMR and PNM $ in Thousands | Dec. 31, 2022 USD ($) |
Available-for-Sale | |
Within 1 year | $ 40,339 |
After 1 year through 5 years | 67,426 |
After 5 years through 10 years | 70,608 |
After 10 years through 15 years | 15,571 |
After 15 years through 20 years | 12,825 |
After 20 years | 32,211 |
Debt securities, available-for-sale | $ 238,980 |
Fair Value of Derivative and _7
Fair Value of Derivative and Other Financial Instruments - Items Recorded at Fair Value (Details) - Public Service Company of New Mexico - Measured on a recurring basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 417,476 | $ 463,126 |
Unrealized Gains | 9,986 | 15,741 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,843 | 7,895 |
Corporate stocks, common | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 40,103 | 97,626 |
Unrealized Gains | ||
Corporate stocks, preferred | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 5,191 | 9,114 |
Unrealized Gains | ||
Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 66,359 | 75,285 |
Unrealized Gains | ||
U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 45,905 | 43,128 |
Unrealized Gains | 1,334 | 214 |
International government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 9,762 | 16,001 |
Unrealized Gains | 1,117 | 1,508 |
Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 43,136 | 47,050 |
Unrealized Gains | 1,062 | 1,807 |
Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 140,177 | 167,027 |
Unrealized Gains | 6,473 | 12,212 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 219,740 | 197,741 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,843 | 7,895 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate stocks, common | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 40,103 | 97,626 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate stocks, preferred | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 790 | 3,775 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 66,359 | 75,241 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 45,645 | 13,204 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 197,736 | 265,385 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate stocks, common | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate stocks, preferred | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 4,401 | 5,339 |
Significant Other Observable Inputs (Level 2) | Mutual funds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 44 |
Significant Other Observable Inputs (Level 2) | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 260 | 29,924 |
Significant Other Observable Inputs (Level 2) | International government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 9,762 | 16,001 |
Significant Other Observable Inputs (Level 2) | Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 43,136 | 47,050 |
Significant Other Observable Inputs (Level 2) | Corporate and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 140,177 | $ 167,027 |
Fair Value of Derivative and _8
Fair Value of Derivative and Other Financial Instruments - Items not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
PNMR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 3,726,195 | $ 3,915,010 |
PNMR | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 4,077,387 | 3,698,919 |
Public Service Company of New Mexico | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,789,186 | 1,975,987 |
Public Service Company of New Mexico | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 2,000,900 | 1,881,110 |
Texas-New Mexico Power Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 937,009 | 1,039,023 |
Texas-New Mexico Power Company | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,076,875 | $ 918,050 |
Fair Value of Derivative and _9
Fair Value of Derivative and Other Financial Instruments - Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 410,463 | $ 576,707 | $ 587,530 |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 70,301 | 95,805 | 93,402 |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | Fair Value Measurement [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 342,183 | 527,873 | |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 409,970 | 577,305 | |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | Estimate of Fair Value Measurement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 67,787 | 49,432 | |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 70,704 | 96,127 | |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,703 | 1,578 | |
Public Service Company of New Mexico | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 69,001 | 94,549 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 143,911 | 235,605 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 43,771 | 59,961 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,703 | 1,578 | |
Public Service Company of New Mexico | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 42,068 | 58,383 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 198,272 | 292,268 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 26,933 | 36,166 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Public Service Company of New Mexico | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 26,933 | 36,166 | |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 43,447 | 62,942 | 66,149 |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 8,718 | 12,593 | $ 12,885 |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | Fair Value Measurement [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 38,617 | 58,623 | |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 44,050 | 62,585 | |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Pension Plan | Participation in PNMR Master Trust Investments: | Estimate of Fair Value Measurement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 5,433 | 3,962 | |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 8,722 | 12,630 | |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 149 | 381 | |
Texas-New Mexico Power Company | Fair Value, Inputs, Level 1, 2 and 3 | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 8,573 | 12,249 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 13,556 | 21,390 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 8,167 | 11,956 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 149 | 381 | |
Texas-New Mexico Power Company | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 8,018 | 11,575 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Pension Plan | Participation in PNMR Master Trust Investments: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 25,061 | 37,233 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 555 | 674 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Texas-New Mexico Power Company | Significant Other Observable Inputs (Level 2) | Other Postretirement Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 555 | 674 | |
PNMR | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 454,020 | $ 639,890 | |
PNMR | Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | Fair Value Measured at Net Asset Value Per Share | Fair Value Measured at Net Asset Value Per Share | |
PNMR | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | Fair Value Measured at Net Asset Value Per Share | Fair Value Measured at Net Asset Value Per Share | |
PNMR | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | Fair Value Measured at Net Asset Value Per Share | Fair Value Measured at Net Asset Value Per Share | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 380,800 | $ 586,496 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 17,106 | 18,924 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Corporate stocks, common | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 53,661 | 92,484 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Corporate stocks, preferred | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 639 | 806 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 135,200 | 222,106 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 62,637 | 95,429 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | International government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 3,318 | 5,977 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Municipals | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 4,922 | 6,143 | |
PNMR | Fair Value, Inputs, Level 1, 2 and 3 | Corporate and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 103,317 | 144,627 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 157,467 | 256,995 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 17,106 | 18,924 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate stocks, common | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 53,661 | 92,484 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate stocks, preferred | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 639 | 0 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 27,412 | 59,203 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 58,649 | 86,384 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | International government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
PNMR | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
PNMR | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 223,333 | 329,501 | |
PNMR | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
PNMR | Significant Other Observable Inputs (Level 2) | Corporate stocks, common | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
PNMR | Significant Other Observable Inputs (Level 2) | Corporate stocks, preferred | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 806 | |
PNMR | Significant Other Observable Inputs (Level 2) | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 107,788 | 162,903 | |
PNMR | Significant Other Observable Inputs (Level 2) | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 3,988 | 9,045 | |
PNMR | Significant Other Observable Inputs (Level 2) | International government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 3,318 | 5,977 | |
PNMR | Significant Other Observable Inputs (Level 2) | Municipals | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 4,922 | 6,143 | |
PNMR | Significant Other Observable Inputs (Level 2) | Corporate and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 103,317 | 144,627 | |
PNMR | Fair Value Measured at Net Asset Value Per Share | Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 6,691 | 10,479 | |
PNMR | Fair Value Measured at Net Asset Value Per Share | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 33,258 | 8,913 | |
PNMR | Fair Value Measured at Net Asset Value Per Share | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 33,271 | $ 34,002 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 31, 2016 USD ($) | |
Results of Operations | ||||
Earnings attributable to non-controlling interest | $ 15,122 | $ 15,490 | $ 14,013 | |
Financial Position | ||||
Current assets | 410,978 | 324,600 | ||
Total assets | 9,257,377 | 8,666,885 | 7,939,854 | |
Current liabilities | 890,370 | 664,213 | ||
Owners’ equity – non-controlling interest | $ 52,994 | 55,405 | ||
Public Service Company of New Mexico | ||||
Variable Interest Entity [Line Items] | ||||
Number of megawatts purchased (in megawatts) | MW | 64.1 | |||
Results of Operations | ||||
Earnings attributable to non-controlling interest | $ 15,122 | 15,490 | 14,013 | |
Financial Position | ||||
Current assets | 345,645 | 266,689 | ||
Total assets | 6,272,166 | 6,060,133 | ||
Current liabilities | 692,155 | 495,902 | ||
Owners’ equity – non-controlling interest | $ 52,994 | 55,405 | ||
Public Service Company of New Mexico | Valencia | ||||
Variable Interest Entity [Line Items] | ||||
Number of megawatts purchased (in megawatts) | MW | 155 | |||
Payment for fixed charges | $ 19,500 | 19,800 | 20,000 | |
Payment for variable charges | $ 1,900 | 1,900 | 1,400 | |
Purchase price, percentage of the book value reduced by related indebtedness | 50% | |||
Purchase price, percentage of fair market value | 50% | |||
Results of Operations | ||||
Operating revenues | $ 21,403 | 21,624 | 21,297 | |
Operating expenses | 6,281 | 6,134 | 7,284 | |
Earnings attributable to non-controlling interest | 15,122 | 15,490 | $ 14,013 | |
Financial Position | ||||
Current assets | 3,429 | 3,042 | ||
Net property, plant and equipment | 50,094 | 52,908 | ||
Total assets | 53,523 | 55,950 | ||
Current liabilities | 529 | 545 | ||
Owners’ equity – non-controlling interest | $ 52,994 | $ 55,405 | ||
Public Service Company of New Mexico | Maximum | Valencia | ||||
Variable Interest Entity [Line Items] | ||||
Option to purchase a percentage of the plant or VIE (up to ) | 50% | |||
NM Capital | Coal Supply | San Juan Generating Station | ||||
Financial Position | ||||
Issuance in letters of credit | $ 30,300 | $ 30,300 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jan. 01, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 4% | |||
Amortization of gains and losses that are outside the corridor | 5 years | |||
Maximum annual contributions per employee | 75% | |||
Employer matching contribution, percent of employees' gross pay | 6% | |||
Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Non-matching contribution of eligible compensation based on eligible employee's age | 3% | |||
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Non-matching contribution of eligible compensation based on eligible employee's age | 10% | |||
Public Service Company of New Mexico | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Rate of return | (21.28%) | |||
Texas-New Mexico Power Company | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Rate of return | (23.03%) | |||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term return resulting from effect of 1% change | 1% | |||
Expected long-term return resulting from effect of one-percentage point increase | 1% | |||
Expected future employer contributions, year two through four | $ 0 | |||
Expected future employer contributions, after year four | $ 400,000 | |||
Weighted average discount rate related to anticipated contributions | 5.75% | |||
Pension Plan | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 35% | |||
Pension Plan | Fixed income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 50% | |||
Pension Plan | Alternative Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 15% | |||
Pension Plan | Public Service Company of New Mexico | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 5.50% | 5.50% | 5.90% | |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 4,600,000 | |||
Actuarial gains (losses) recorded as regulatory assets and liabilities | (27,531,000) | |||
Employer contributions | $ 0 | $ 0 | ||
Pension Plan | Texas-New Mexico Power Company | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 4.40% | 5.50% | 5.90% | |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 500,000 | |||
Actuarial gains (losses) recorded as regulatory assets and liabilities | (4,602,000) | |||
Employer contributions | $ 0 | $ 0 | ||
Pension Plan | Texas-New Mexico Power Company | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 16% | |||
Pension Plan | Texas-New Mexico Power Company | Fixed income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 70% | |||
Pension Plan | Texas-New Mexico Power Company | Alternative Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 14% | |||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term return resulting from effect of 1% change | 1% | |||
Other Postretirement Benefits | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 30% | |||
Other Postretirement Benefits | Fixed income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 70% | |||
Other Postretirement Benefits | Public Service Company of New Mexico | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 4.75% | 4.75% | 7% | |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 800,000 | |||
Rate of return | (24.50%) | |||
Actuarial gains (losses) recorded as regulatory assets and liabilities | $ 12,700,000 | |||
Employer matching contribution, maximum | 5% | |||
Employer contributions | $ 2,617,000 | $ 2,709,000 | ||
Other Postretirement Benefits | Texas-New Mexico Power Company | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 3.80% | 3.80% | 5.60% | |
Expected long-term return on assets decrease resulting in increase net periodic costs In next fiscal year | $ 100,000 | |||
Rate of return | (27.90%) | |||
Actuarial gains (losses) recorded as regulatory assets and liabilities | $ 1,100,000 | |||
Effect of 1%-point change in assumed health care cost trend rates on net periodic expense and APBO | 0 | |||
Employer contributions | 0 | $ 0 | ||
Other Postretirement Benefits | PNM and TNMP | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer contributions | 0 | 0 | ||
Expected employer contributions in fiscal year through year 5 | 0 | 0 | ||
Expected employer disbursements for next fiscal year | 200,000 | |||
Expected employer disbursements by employer in year 2 through year 5 | 9,000,000 | |||
Executive Retirement Program | Public Service Company of New Mexico | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actuarial gains (losses) recorded as regulatory assets and liabilities | 1,628,000 | |||
Expected disbursements by employer | 1,300,000 | 1,300,000 | ||
Executive Retirement Program | Texas-New Mexico Power Company | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actuarial gains (losses) recorded as regulatory assets and liabilities | 2,000 | |||
Expected disbursements by employer | $ 100,000 | $ 100,000 | ||
Non-US | Pension Plan | Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investment allocation targets | 13% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - APBO, PBO, Fair Value of Plan Assets, and Funded Status of the Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accrued pension liability and postretirement benefit cost | $ 32,799 | $ 19,057 | |
Public Service Company of New Mexico | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accrued pension liability and postretirement benefit cost | 32,007 | 18,718 | |
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 584,061 | 630,904 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 16,857 | 16,143 | 19,941 |
Actuarial (gain) | (118,552) | (19,372) | |
Benefits paid | (48,721) | (43,614) | |
Settlements | 0 | 0 | |
Balance at end of year | 433,645 | 584,061 | 630,904 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 576,707 | 587,530 | |
Actual return on plan assets | (117,523) | 32,791 | |
Employer contributions | 0 | 0 | |
Fair value of plan assets at end of year | 410,463 | 576,707 | 587,530 |
Funded status – asset (liability) for pension benefits | (23,182) | (7,354) | |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 66,984 | 75,196 | |
Service cost | 10 | 23 | 38 |
Interest cost | 1,914 | 1,907 | 2,453 |
Participant contributions | 1,431 | 1,617 | |
Actuarial (gain) | (14,829) | (5,053) | |
Benefits paid | (6,396) | (6,706) | |
Curtailment loss | 836 | 0 | 0 |
Balance at end of year | 49,950 | 66,984 | 75,196 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 95,805 | 93,402 | |
Actual return on plan assets | (23,156) | 4,783 | |
Employer contributions | 2,617 | 2,709 | |
Participant contributions | 1,431 | 1,617 | |
Benefits paid | (6,396) | (6,706) | |
Fair value of plan assets at end of year | 70,301 | 95,805 | 93,402 |
Funded status – asset (liability) for pension benefits | 20,351 | 28,821 | |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 12,612 | 14,222 | |
Service cost | 0 | 0 | 0 |
Interest cost | 362 | 363 | 491 |
Actuarial (gain) | (1,628) | (657) | |
Benefits paid | (1,304) | (1,316) | |
Balance at end of year | 10,042 | 12,612 | 14,222 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Less current liability | 1,217 | 1,248 | |
Accrued pension liability and postretirement benefit cost | 8,825 | 11,364 | |
Texas-New Mexico Power Company | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accrued pension liability and postretirement benefit cost | 792 | 339 | |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 59,609 | 67,390 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1,720 | 1,741 | 2,177 |
Actuarial (gain) | (11,711) | (3,306) | |
Benefits paid | (3,403) | (3,678) | |
Settlements | (2,254) | (2,538) | |
Balance at end of year | 43,961 | 59,609 | 67,390 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 62,942 | 66,149 | |
Actual return on plan assets | (13,838) | 3,009 | |
Employer contributions | 0 | 0 | |
Fair value of plan assets at end of year | 43,447 | 62,942 | 66,149 |
Funded status – asset (liability) for pension benefits | (514) | 3,333 | |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 10,570 | 11,938 | |
Service cost | 38 | 45 | 46 |
Interest cost | 307 | 308 | 373 |
Participant contributions | 219 | 135 | |
Actuarial (gain) | (2,788) | (1,141) | |
Benefits paid | (641) | (715) | |
Curtailment loss | 0 | 0 | |
Balance at end of year | 7,705 | 10,570 | 11,938 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 12,593 | 12,885 | |
Actual return on plan assets | (3,453) | 288 | |
Employer contributions | 0 | 0 | |
Participant contributions | 219 | 135 | |
Benefits paid | (641) | (715) | |
Fair value of plan assets at end of year | 8,718 | 12,593 | 12,885 |
Funded status – asset (liability) for pension benefits | 1,013 | 2,023 | |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | 406 | 678 | |
Service cost | 0 | 0 | 0 |
Interest cost | 11 | 17 | 22 |
Actuarial (gain) | (2) | (211) | |
Benefits paid | (71) | (78) | |
Balance at end of year | 344 | 406 | $ 678 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Less current liability | 66 | 67 | |
Accrued pension liability and postretirement benefit cost | $ 278 | $ 339 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Actuarial (Gain) Loss Results (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Public Service Company of New Mexico | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | $ (111,478) | $ (19,989) |
Demographic experience | (7,074) | 617 |
Mortality rate | 0 | 0 |
Other assumptions and experience | 0 | 0 |
Actuarial (gain) loss | (118,552) | (19,372) |
Public Service Company of New Mexico | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (11,876) | (2,042) |
Demographic experience | (2,985) | (2,893) |
Assumed participation rate | 0 | 0 |
Mortality rate | 0 | 0 |
Dental trend assumption | 32 | (118) |
Actuarial (gain) loss | (14,829) | (5,053) |
Texas-New Mexico Power Company | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (11,697) | (2,017) |
Demographic experience | (742) | (1,403) |
Mortality rate | 0 | 0 |
Other assumptions and experience | 728 | 114 |
Actuarial (gain) loss | (11,711) | (3,306) |
Texas-New Mexico Power Company | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | (2,469) | (423) |
Demographic experience | (319) | (718) |
Assumed participation rate | 0 | 0 |
Mortality rate | 0 | 0 |
Dental trend assumption | 0 | 0 |
Actuarial (gain) loss | $ (2,788) | $ (1,141) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Pre-Tax Information about Prior Service Cost and Net Actuarial (Gain) loss in AOCI (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Public Service Company of New Mexico | Pension Plan | |
Net actuarial (gain) loss | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | $ 112,063 |
Experience loss | 27,531 |
Regulatory asset (liability) adjustment | (22,282) |
Amortization recognized in net periodic benefit (income) | (6,967) |
Amounts in AOCI not yet recognized in net periodic benefit cost at end of year | 110,345 |
Public Service Company of New Mexico | Executive Retirement Program | |
Net actuarial (gain) loss | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 1,816 |
Experience loss | (1,628) |
Regulatory asset (liability) adjustment | 944 |
Amortization recognized in net periodic benefit (income) | (137) |
Amounts in AOCI not yet recognized in net periodic benefit cost at end of year | 995 |
Texas-New Mexico Power Company | Pension Plan | |
Net actuarial (gain) loss | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Experience loss | 4,602 |
Regulatory asset (liability) adjustment | (4,602) |
Amortization recognized in net periodic benefit (income) | 0 |
Amounts in AOCI not yet recognized in net periodic benefit cost at end of year | 0 |
Texas-New Mexico Power Company | Executive Retirement Program | |
Net actuarial (gain) loss | |
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year | 0 |
Experience loss | (2) |
Regulatory asset (liability) adjustment | 2 |
Amortization recognized in net periodic benefit (income) | 0 |
Amounts in AOCI not yet recognized in net periodic benefit cost at end of year | $ 0 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 16,857 | 16,143 | 19,941 |
Expected return on plan assets | (28,563) | (28,531) | (29,453) |
Amortization of net loss | 15,794 | 18,166 | 17,860 |
Amortization of prior service cost | 0 | 0 | (554) |
Net periodic benefit cost | 4,088 | 5,778 | 7,794 |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 10 | 23 | 38 |
Interest cost | 1,914 | 1,907 | 2,453 |
Expected return on plan assets | (4,351) | (4,167) | (5,548) |
Amortization of net loss | 0 | 0 | 348 |
Curtailment loss | 836 | 0 | 0 |
Net periodic benefit cost | (1,591) | (2,237) | (2,709) |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 362 | 363 | 491 |
Amortization of net loss | 327 | 395 | 403 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | 689 | 758 | 894 |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 1,720 | 1,741 | 2,177 |
Expected return on plan assets | (2,472) | (3,181) | (3,284) |
Amortization of net loss | 932 | 1,247 | 1,258 |
Amortization of prior service cost | 0 | 0 | 0 |
Settlement loss | 1,033 | 746 | 0 |
Net periodic benefit cost | 1,213 | 553 | 151 |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 38 | 45 | 46 |
Interest cost | 307 | 308 | 373 |
Expected return on plan assets | (418) | (407) | (538) |
Amortization of net loss | (520) | (322) | (323) |
Curtailment loss | 0 | 0 | |
Net periodic benefit cost | (593) | (376) | (442) |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 11 | 17 | 22 |
Amortization of net loss | 0 | 33 | 24 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic benefit cost | $ 11 | $ 50 | $ 46 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 4% | ||
Public Service Company of New Mexico | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.74% | 3% | 2.66% |
Discount rate for determining net periodic benefit cost | 3% | 2.66% | 3.42% |
Expected return on plan assets | 5.50% | 5.50% | 5.90% |
Public Service Company of New Mexico | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.75% | 2.99% | 2.65% |
Discount rate for determining net periodic benefit cost | 2.99% | 2.65% | 3.42% |
Expected return on plan assets | 4.75% | 4.75% | 7% |
Public Service Company of New Mexico | Executive Retirement Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.73% | 3.02% | 2.68% |
Discount rate for determining net periodic benefit cost | 3.02% | 2.68% | 3.44% |
Texas-New Mexico Power Company | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.75% | 3.01% | 2.69% |
Discount rate for determining net periodic benefit cost | 3.01% | 2.69% | 3.46% |
Expected return on plan assets | 4.40% | 5.50% | 5.90% |
Texas-New Mexico Power Company | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.75% | 2.99% | 2.65% |
Discount rate for determining net periodic benefit cost | 2.99% | 2.65% | 3.42% |
Expected return on plan assets | 3.80% | 3.80% | 5.60% |
Texas-New Mexico Power Company | Executive Retirement Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for determining PBO and APBO | 5.75% | 3.01% | 2.69% |
Discount rate for determining net periodic benefit cost | 3.01% | 2.69% | 3.46% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Pension Benefit Payments are Expected to be Paid (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Public Service Company of New Mexico | Pension Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | $ 42,827 |
2024 | 41,621 |
2025 | 40,876 |
2026 | 39,528 |
2027 | 38,600 |
2028 - 2032 | 174,505 |
Public Service Company of New Mexico | Other Postretirement Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | 5,880 |
2024 | 5,533 |
2025 | 5,157 |
2026 | 4,873 |
2027 | 4,593 |
2028 - 2032 | 19,200 |
Public Service Company of New Mexico | Executive Retirement Program | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | 1,251 |
2024 | 1,208 |
2025 | 1,158 |
2026 | 1,102 |
2027 | 1,042 |
2028 - 2032 | 4,230 |
Texas-New Mexico Power Company | Pension Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | 4,358 |
2024 | 4,236 |
2025 | 4,207 |
2026 | 4,139 |
2027 | 3,929 |
2028 - 2032 | 17,211 |
Texas-New Mexico Power Company | Other Postretirement Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | 621 |
2024 | 640 |
2025 | 643 |
2026 | 649 |
2027 | 641 |
2028 - 2032 | 2,980 |
Texas-New Mexico Power Company | Executive Retirement Program | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2023 | 68 |
2024 | 61 |
2025 | 54 |
2026 | 48 |
2027 | 41 |
2028 - 2032 | $ 121 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Assumed Health Care Cost Trend Rates and Impact of a One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Public Service Company of New Mexico - Other Postretirement Benefits | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Health care cost trend rate assumed for next year | 6.25% | 6% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.75% | 4.75% |
Year that the rate reaches the ultimate trend rate | 2029 | 2027 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
401(k) plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
401(k) plan | $ 15,844 | $ 16,648 | $ 16,247 |
401(k) plan | Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
401(k) plan | 11,067 | 11,826 | 11,676 |
401(k) plan | Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
401(k) plan | 4,776 | 4,823 | 4,572 |
Non-qualified plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Non-qualified plan | (1,027) | 3,594 | 2,090 |
Non-qualified plan | Public Service Company of New Mexico | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Non-qualified plan | (721) | 2,622 | 1,544 |
Non-qualified plan | Texas-New Mexico Power Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Non-qualified plan | $ (305) | $ 972 | $ 547 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Equity Plan and Accounting for Stock Awards (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense for stock-based arrangements | $ 7.9 | $ 9.4 | $ 8.1 | |
Restricted Shares and Performance-Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 4.6 | |||
Period to recognize compensation expense | 1 year 6 months 14 days | |||
Public Service Company of New Mexico | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense for stock-based arrangements | $ 5.3 | 6.4 | 5.5 | |
Texas-New Mexico Power Company | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense for stock-based arrangements | $ 2.6 | $ 3 | $ 2.6 | |
Performance Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for awards | 3 years | |||
Vesting rate | 100% | |||
Number of shares authorized (in shares) | 13,500,000 | |||
Charge to share pool for each share awarded | 5 | |||
Performance Equity Plan | Nonemployee Members of the Board of Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for awards | 1 year |
Stock-Based Compensation - Exce
Stock-Based Compensation - Excess Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Service Company of New Mexico | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefits | $ (65) | $ 564 | $ 279 |
Texas-New Mexico Power Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefits | (26) | 224 | 112 |
PNMR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefits | $ (91) | $ 788 | $ 391 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Shares and Performance-Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected quarterly dividends per share (in dollars per share) | $ 0.3475 | $ 0.3275 | $ 0.3075 |
Risk-free interest rate | 1.46% | 0.32% | 0.72% |
Market-Based Shares (1) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.29% | 0.72% | |
Dividend yield | 2.76% | 2.51% | |
Expected volatility | 33.69% | 19.41% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock | ||||
Restricted Stock, Shares | ||||
Beginning balance (in shares) | 167,270 | |||
Granted (in shares) | 193,943 | |||
Exercised (in shares) | (173,474) | |||
Forfeited (in shares) | (5,293) | |||
Ending balance (in shares) | 182,446 | 167,270 | ||
Restricted Stock, Weighted-Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 43.71 | |||
Granted (in dollars per share) | 41.04 | $ 43.48 | $ 36.73 | |
Exercised (in dollars per share) | 42.47 | |||
Forfeited (in dollars per share) | 42.31 | |||
Ending balance (in dollars per share) | 42.09 | 43.71 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Weighted-average grant date fair value (in dollars per share) | $ 41.04 | $ 43.48 | $ 36.73 | |
Total fair value of restricted shares that vested | $ 7,368 | $ 8,617 | $ 8,299 | |
Performance Shares | Executive | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Shares excluded in year two (in shares) | 144,175 | |||
Shares excluded in year three (in shares) | 150,050 | |||
Performance period | 3 years | |||
Performance Shares | Executive | Achieved Performance Target For 2018 Through 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Shares excluded (in shares) | 92,343 | |||
Performance Shares | Executive | Achieved Performance Target for 2019 - 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Shares excluded (in shares) | 100,991 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Aggregate intrinsic value of stock options outstanding | $ 100 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 84 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Regulatory Assets | ||
Current | $ 20,265 | $ 14,785 |
Non-Current | 846,686 | 514,258 |
Regulatory Liabilities | ||
Current | (17,002) | (8,316) |
Non-Current | (755,202) | (841,393) |
Public Service Company of New Mexico | ||
Regulatory Assets | ||
Current | 18,333 | 8,721 |
Non-Current | 763,941 | 428,981 |
Total regulatory assets | 782,274 | 437,702 |
Regulatory Liabilities | ||
Current | (7,913) | (8,316) |
Non-Current | (556,989) | (653,830) |
Total regulatory liabilities | (564,902) | (662,146) |
Public Service Company of New Mexico | Renewable energy rider, including excess return | ||
Regulatory Liabilities | ||
Current | (5,076) | (5,989) |
Public Service Company of New Mexico | Energy efficiency costs | ||
Regulatory Liabilities | ||
Current | (2,837) | (2,327) |
Public Service Company of New Mexico | Transmission cost recovery factor | ||
Regulatory Liabilities | ||
Current | 0 | 0 |
Public Service Company of New Mexico | Cost of removal | ||
Regulatory Liabilities | ||
Non-Current | (238,903) | (294,193) |
Public Service Company of New Mexico | Deferred income taxes | ||
Regulatory Liabilities | ||
Non-Current | (301,493) | (321,976) |
Public Service Company of New Mexico | PVNGS ARO | ||
Regulatory Liabilities | ||
Non-Current | 0 | (1,215) |
Public Service Company of New Mexico | Renewable energy tax benefits | ||
Regulatory Liabilities | ||
Non-Current | (15,610) | (16,756) |
Public Service Company of New Mexico | Accelerated depreciation SNCRs | ||
Regulatory Liabilities | ||
Non-Current | 0 | (16,331) |
Public Service Company of New Mexico | Pension and OPEB | ||
Regulatory Liabilities | ||
Non-Current | 0 | (2,376) |
Public Service Company of New Mexico | COVID-19 cost savings | ||
Regulatory Liabilities | ||
Non-Current | (900) | (900) |
Public Service Company of New Mexico | Other | ||
Regulatory Liabilities | ||
Non-Current | (83) | (83) |
Public Service Company of New Mexico | FPPAC | ||
Regulatory Assets | ||
Current | 8,904 | 7,130 |
Public Service Company of New Mexico | NMPRC hedging plan | ||
Regulatory Assets | ||
Current | 9,429 | 1,591 |
Public Service Company of New Mexico | Transmission cost recovery factor | ||
Regulatory Assets | ||
Current | 0 | 0 |
Public Service Company of New Mexico | Energy efficiency costs | ||
Regulatory Assets | ||
Current | 0 | 0 |
Public Service Company of New Mexico | SJGS - ETA | ||
Regulatory Assets | ||
Non-Current | 343,238 | 51,975 |
Public Service Company of New Mexico | SJGS - Non-ETA | ||
Regulatory Assets | ||
Non-Current | 26,296 | 43 |
Public Service Company of New Mexico | Shutdown of SJGS Units 2 and 3 | ||
Regulatory Assets | ||
Non-Current | 94,677 | 100,954 |
Public Service Company of New Mexico | SJGS replacement resources | ||
Regulatory Assets | ||
Non-Current | 8,312 | 8,269 |
Public Service Company of New Mexico | EIM | ||
Regulatory Assets | ||
Non-Current | 13,102 | 7,028 |
Public Service Company of New Mexico | Loss on reacquired debt | ||
Regulatory Assets | ||
Non-Current | 15,323 | 17,249 |
Public Service Company of New Mexico | Pension and OPEB | ||
Regulatory Assets | ||
Non-Current | 187,182 | 165,006 |
Public Service Company of New Mexico | Deferred income taxes | ||
Regulatory Assets | ||
Non-Current | 67,621 | 68,687 |
Public Service Company of New Mexico | AMS surcharge | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | AMS retirement and other costs | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Public Service Company of New Mexico | Deferred COVID-19 costs | ||
Regulatory Assets | ||
Non-Current | 5,664 | 6,896 |
Public Service Company of New Mexico | Other | ||
Regulatory Assets | ||
Non-Current | 2,526 | 2,874 |
Texas-New Mexico Power Company | ||
Regulatory Assets | ||
Current | 1,932 | 6,064 |
Non-Current | 82,745 | 85,277 |
Total regulatory assets | 84,677 | 91,341 |
Regulatory Liabilities | ||
Current | (9,089) | 0 |
Non-Current | (198,213) | (187,563) |
Total regulatory liabilities | (207,302) | (187,563) |
Texas-New Mexico Power Company | Renewable energy rider, including excess return | ||
Regulatory Liabilities | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | Energy efficiency costs | ||
Regulatory Liabilities | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | Transmission cost recovery factor | ||
Regulatory Liabilities | ||
Current | (9,089) | 0 |
Texas-New Mexico Power Company | Cost of removal | ||
Regulatory Liabilities | ||
Non-Current | (97,030) | (73,029) |
Texas-New Mexico Power Company | Deferred income taxes | ||
Regulatory Liabilities | ||
Non-Current | (94,994) | (107,250) |
Texas-New Mexico Power Company | PVNGS ARO | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Renewable energy tax benefits | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Accelerated depreciation SNCRs | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Pension and OPEB | ||
Regulatory Liabilities | ||
Non-Current | (4,518) | (6,099) |
Texas-New Mexico Power Company | COVID-19 cost savings | ||
Regulatory Liabilities | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Other | ||
Regulatory Liabilities | ||
Non-Current | (1,671) | (1,185) |
Texas-New Mexico Power Company | FPPAC | ||
Regulatory Assets | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | NMPRC hedging plan | ||
Regulatory Assets | ||
Current | 0 | 0 |
Texas-New Mexico Power Company | Transmission cost recovery factor | ||
Regulatory Assets | ||
Current | 0 | 3,906 |
Texas-New Mexico Power Company | Energy efficiency costs | ||
Regulatory Assets | ||
Current | 1,932 | 2,158 |
Texas-New Mexico Power Company | SJGS - ETA | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | SJGS - Non-ETA | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Shutdown of SJGS Units 2 and 3 | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | SJGS replacement resources | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | EIM | ||
Regulatory Assets | ||
Non-Current | 0 | 0 |
Texas-New Mexico Power Company | Loss on reacquired debt | ||
Regulatory Assets | ||
Non-Current | 26,317 | 27,615 |
Texas-New Mexico Power Company | Pension and OPEB | ||
Regulatory Assets | ||
Non-Current | 21,558 | 17,924 |
Texas-New Mexico Power Company | Deferred income taxes | ||
Regulatory Assets | ||
Non-Current | 9,193 | 9,505 |
Texas-New Mexico Power Company | AMS surcharge | ||
Regulatory Assets | ||
Non-Current | 6,254 | 12,507 |
Texas-New Mexico Power Company | AMS retirement and other costs | ||
Regulatory Assets | ||
Non-Current | 12,591 | 12,286 |
Texas-New Mexico Power Company | Deferred COVID-19 costs | ||
Regulatory Assets | ||
Non-Current | 1,053 | 0 |
Texas-New Mexico Power Company | Other | ||
Regulatory Assets | ||
Non-Current | $ 5,779 | $ 5,440 |
Construction Program and Join_3
Construction Program and Jointly-Owned Electric Generating Plants (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 MW | Dec. 31, 2022 USD ($) generatingUnit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | $ 912,557 | $ 935,016 | $ 679,028 | |
Plant in Service | 9,164,564 | 9,357,849 | ||
Accumulated Depreciation | 2,659,952 | 2,952,743 | ||
Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | 433,459 | 602,180 | 335,055 | |
Plant in Service | 6,007,464 | 6,602,015 | ||
Accumulated Depreciation | 1,908,644 | 2,235,068 | ||
Texas-New Mexico Power Company | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | 449,534 | 311,909 | $ 321,505 | |
Plant in Service | 2,853,130 | 2,475,859 | ||
Accumulated Depreciation | 578,157 | $ 563,004 | ||
Joint Projects | Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | 433,500 | |||
Joint Projects | Texas-New Mexico Power Company | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | 449,500 | |||
Joint Projects | PNMR | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Construction expenditures | 912,600 | |||
Palo Verde Nuclear Generating Station | Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Plant in Service | 891,708 | |||
Accumulated Depreciation | 420,076 | |||
Construction Work in Progress | $ 35,504 | |||
Composite Interest | 10.20% | |||
Number of units (in generating units) | generatingUnit | 3 | |||
Operating lease, option term extensions | 20 years | |||
Palo Verde Nuclear Generating Station | Public Service Company of New Mexico | Subsequent Event | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Composite Interest | 7.60% | |||
Leased capacity | MW | 104 | |||
Four Corners Units 4 and 5 (Coal) | Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Plant in Service | $ 320,376 | |||
Accumulated Depreciation | 101,022 | |||
Construction Work in Progress | $ 9,390 | |||
Composite Interest | 13% | |||
Luna (Gas) | Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Plant in Service | $ 83,146 | |||
Accumulated Depreciation | 33,063 | |||
Construction Work in Progress | $ 111 | |||
Composite Interest | 33.33% | |||
Four Corners | Public Service Company of New Mexico | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Number of units (in generating units) | generatingUnit | 2 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligations [Line Items] | |||
ARO liabilities related to nuclear decommissioning | 68% | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $ 234,146 | $ 183,421 | $ 181,962 |
Liabilities incurred | 0 | 1,781 | 0 |
Liabilities settled | 0 | (142) | (1,444) |
Accretion expense | 10,767 | 9,308 | 11,310 |
Revisions to estimated cash flows | (21,536) | 39,778 | (8,407) |
Ending balance | 223,377 | 234,146 | 183,421 |
Four Corners | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revisions to estimated cash flows | 800 | ||
Palo Verde Nuclear Generating Station | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revisions to estimated cash flows | 9,200 | ||
San Juan Generating Station | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revisions to estimated cash flows | (21,500) | ||
Public Service Company of New Mexico | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 233,383 | 182,718 | 181,081 |
Liabilities incurred | 0 | 1,781 | 0 |
Liabilities settled | 0 | (142) | (1,192) |
Accretion expense | 10,702 | 9,248 | 11,236 |
Revisions to estimated cash flows | (21,536) | 39,778 | (8,407) |
Ending balance | 222,549 | 233,383 | 182,718 |
Texas-New Mexico Power Company | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 763 | 703 | 881 |
Liabilities incurred | 0 | 0 | 0 |
Liabilities settled | 0 | 0 | (252) |
Accretion expense | 65 | 60 | 74 |
Revisions to estimated cash flows | 0 | 0 | 0 |
Ending balance | $ 828 | $ 763 | $ 703 |
Commitments and Contingencies -
Commitments and Contingencies - PVNGS Decommissioning Funding (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Utilities, General Disclosures [Line Items] | |||
Funding for decommissioning costs in qualified and non-qualified trust funds | $ 1.3 | $ 1.3 | $ 1.3 |
Estimated market value of trusts for decommissioning costs | $ 325.3 | $ 394.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Nuclear Spent Fuel and Waste Disposal (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station - Nuclear spent fuel and waste disposal - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 59.6 | ||
Other deferred credits | |||
Loss Contingencies [Line Items] | |||
Liability for interim storage costs | $ 12 | $ 13 |
Commitments and Contingencies_3
Commitments and Contingencies - Santa Fe Generating Station (Details) | 1 Months Ended | 24 Months Ended | |
Jul. 20, 2020 numberOfAMIMeter | Oct. 31, 2019 numberOfAMIMeter | Dec. 31, 2014 monitoringWell | |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of monitoring wells containing free-phase hydrocarbon products | monitoringWell | 1 | ||
Number of field work reports | numberOfAMIMeter | 2 | 2 |
Commitments and Contingencies_4
Commitments and Contingencies - Coal Supply (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 17, 2022 $ / T | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 31, 2016 USD ($) | |
Other Commitments [Line Items] | ||||||
Other current assets | $ 31,624 | $ 1,635 | ||||
Four Corners | Coal Supply | ||||||
Other Commitments [Line Items] | ||||||
Payments for relief from obligations | 75,000 | |||||
Public Service Company of New Mexico | ||||||
Other Commitments [Line Items] | ||||||
Other current assets | 20,706 | 1,456 | ||||
Public Service Company of New Mexico | Loss on long-term purchase commitment | San Juan Generating Station | ||||||
Other Commitments [Line Items] | ||||||
Annual funding post-term reclamation trust | 10,000 | 5,200 | $ 3,200 | |||
Public Service Company of New Mexico | Mine Reclamation Trust | Four Corners | ||||||
Other Commitments [Line Items] | ||||||
Funds contributed to mine reclamation trust | 2,400 | 2,200 | 2,000 | |||
Funds contributed next fiscal year through year five | 2,100 | |||||
Public Service Company of New Mexico | Mine Reclamation Trust | San Juan Generating Station And Four Corners | ||||||
Other Commitments [Line Items] | ||||||
Customer reclamation funding cost, maximum | 100,000 | |||||
Public Service Company of New Mexico | Surface | Loss on long-term purchase commitment | ||||||
Other Commitments [Line Items] | ||||||
Liability for interim storage costs | 62,600 | 67,400 | ||||
Public Service Company of New Mexico | Surface | Increase in coal mine decommissioning liability | ||||||
Other Commitments [Line Items] | ||||||
Net expense | $ 3,600 | |||||
Public Service Company of New Mexico | Underground | Loss on long-term purchase commitment | ||||||
Other Commitments [Line Items] | ||||||
Liability for interim storage costs | 28,200 | 27,900 | ||||
Public Service Company of New Mexico | Underground | Increase in coal mine decommissioning liability | ||||||
Other Commitments [Line Items] | ||||||
Net expense | $ 100 | |||||
Public Service Company of New Mexico | San Juan Generating Station | Surface | Loss on long-term purchase commitment | ||||||
Other Commitments [Line Items] | ||||||
Estimate of possible loss | 67,700 | |||||
Public Service Company of New Mexico | San Juan Generating Station | Underground | Loss on long-term purchase commitment | ||||||
Other Commitments [Line Items] | ||||||
Estimate of possible loss | 33,300 | |||||
Public Service Company of New Mexico | San Juan Generating Station | Coal Supply | ||||||
Other Commitments [Line Items] | ||||||
Other current assets | $ 20,400 | |||||
Increase in price of coal (per ton) | $ / T | 5 | |||||
Public Service Company of New Mexico | Four Corners | Increase in coal mine decommissioning liability | ||||||
Other Commitments [Line Items] | ||||||
Net expense | $ 2,500 | |||||
NM Capital | San Juan Generating Station | Coal Supply | ||||||
Other Commitments [Line Items] | ||||||
Coal mine reclamation bonds to be posted with NMMMD | 118,700 | |||||
Issuance in letters of credit | $ 30,300 | $ 30,300 |
Commitments and Contingencies_5
Commitments and Contingencies - San Juan County Decommissioning Ordinance (Details) - Coal-Fired Electricity Generating Facility Demolition And Remediation Ordinance - San Juan Generating Station - Public Service Company of New Mexico - USD ($) $ in Millions | Nov. 09, 2021 | Dec. 31, 2022 | Sep. 30, 2022 |
Public Utilities, General Disclosures [Line Items] | |||
Initial funding requirement | $ 14.7 | ||
Surety bond | $ 46 | ||
Decrease in decommissioning obligation | $ 21.1 |
Commitments and Contingencies_6
Commitments and Contingencies - PVNG Liability and Insurance Matters (Details) - Public Service Company of New Mexico - Palo Verde Nuclear Generating Station | 12 Months Ended | |
Dec. 31, 2022 USD ($) generatingUnit | Jan. 31, 2023 USD ($) | |
Public Utilities, General Disclosures [Line Items] | ||
Number of units (in generating units) | generatingUnit | 3 | |
Nuclear Plant | ||
Public Utilities, General Disclosures [Line Items] | ||
Ownership percentage in nuclear reactor | 10.20% | |
Number of units (in generating 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 | |
Sublimit amount for non-nuclear property damage losses | 2,250,000,000 | |
Retrospective premium assessment | 5,400,000 | |
Nuclear Plant | Subsequent Event | ||
Public Utilities, General Disclosures [Line Items] | ||
Maximum potential assessment per incident | $ 31,200,000 | |
Annual payment limitation related to incident | 4,700,000 | |
Retrospective premium assessment | $ 5,100,000 | |
Nuclear Plant | Commercial Providers | ||
Public Utilities, General Disclosures [Line Items] | ||
Liability insurance coverage | 450,000,000 | |
Nuclear Plant | Industry Wide Retrospective Assessment Program | ||
Public Utilities, General Disclosures [Line Items] | ||
Liability insurance coverage | 13,200,000,000 | |
Nuclear Plant | Maximum | ||
Public Utilities, General Disclosures [Line Items] | ||
Liability insurance coverage | $ 13,700,000,000 |
Commitments and Contingencies_7
Commitments and Contingencies - Navajo National Allottee Matters (Details) - Public Service Company of New Mexico $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Jul. 29, 2022 USD ($) | Sep. 30, 2012 land_owner | Dec. 31, 2022 USD ($) allotment_parcel | Dec. 01, 2015 allotment_parcel | Jul. 13, 2015 a | Jan. 22, 2015 allotment_parcel | |
Loss Contingencies [Line Items] | ||||||
Payments for legal settlements | $ | $ 19.8 | |||||
Navajo Nation Allottee Matters | ||||||
Loss Contingencies [Line Items] | ||||||
Number of landowners involved in the appeal | land_owner | 43 | |||||
Number of allotments where landowners are revoking rights of way renewal consents (in allotment parcels) | 6 | |||||
Allotments with right-of-way renewals not previously contested (in allotment parcels) | 10 | |||||
Acres of land at issue (in acres) | a | 15.49 | |||||
Number of allotment parcels that cannot be condemned | 2 | |||||
Number of allotment parcels at issue | 5 | |||||
Payments for legal settlements | $ | $ 1.5 |
Commitments and Contingencies_8
Commitments and Contingencies - Texas Winter Storm (Details) - Texas-New Mexico Power Company $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) lawsuit | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||
Regulatory asset, allowance for credit loss | $ | $ 0.8 | $ 0.8 |
Number of law suits | lawsuit | 2 |
Regulatory and Rate Matters - N
Regulatory and Rate Matters - New Mexico General Rate Cases (Details) $ in Millions | 12 Months Ended | ||
Jan. 03, 2023 USD ($) | Dec. 05, 2022 USD ($) MW | Dec. 31, 2022 lease MW | |
NMPRC | |||
Public Utilities, General Disclosures [Line Items] | |||
Requested return on equity | 10.25% | ||
Public Service Company of New Mexico | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Approved Equity Capital Structure, Percentage | 52% | ||
Public Utilities, Approved Debt Capital Structure, Percentage | 48% | ||
Leases renewed | lease | 5 | ||
Number of megawatts purchased (in megawatts) | MW | 64.1 | ||
Public Service Company of New Mexico | Subsequent Event | |||
Public Utilities, General Disclosures [Line Items] | |||
Non-recurring costs | $ 98.3 | ||
Public Service Company of New Mexico | NM 2022 Rate Case | |||
Public Utilities, General Disclosures [Line Items] | |||
Recovery of base rate | $ 2,700 | ||
Revenue deficiency driver, years of operation | 6 years | ||
Leased PVNGS capacity, expiration (in megawatts) | MW | 114 | ||
Hearing, request suspension period | 9 months | ||
Public Service Company of New Mexico | NM 2022 Rate Case | Non-Fuel Energy | |||
Public Utilities, General Disclosures [Line Items] | |||
Requested rate increase | $ 63.8 |
Regulatory and Rate Matters - R
Regulatory and Rate Matters - Renewable Portfolio Standard (Details) - Public Service Company of New Mexico $ in Millions | 12 Months Ended | ||||
Jun. 01, 2022 USD ($) | Jun. 01, 2021 USD ($) | Dec. 31, 2022 MW | Oct. 14, 2022 MW | Jul. 29, 2020 MW | |
Public Utilities, General Disclosures [Line Items] | |||||
Solar distributed generation (in mw) | 200 | 650 | |||
Renewable Portfolio Standard | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Solar photovoltaic capacity (in mw) | 158 | ||||
Solar distributed generation (in mw) | 239.1 | ||||
Renewable energy rider, including excess return | |||||
Public Utilities, General Disclosures [Line Items] | |||||
NMPRC-approved return on equity | 0.50% | ||||
NMPRC | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Proposed revision to rider that will allow for recovery | $ | $ 61 | $ 66.9 | |||
New Mexico Wind | Renewable Portfolio Standard 2014 | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Wind energy capacity (in mw) | 200 | ||||
Red Mesa Wind | Renewable Portfolio Standard 2014 | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Wind energy capacity (in mw) | 102 | ||||
La Joya Wind | Renewable Portfolio Standard | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Wind energy capacity (in mw) | 140 | ||||
Lightning Dock Geothermal | Renewable Portfolio Standard | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Geothermal energy capacity (in mw) | 11 |
Regulatory and Rate Matters -_2
Regulatory and Rate Matters - Renewable Energy Rider (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Service Company of New Mexico | Renewable energy rider, including excess return | NMPRC | |||
Public Utilities, General Disclosures [Line Items] | |||
Revenue from renewable energy rider | $ 60.3 | $ 61.7 | $ 56.4 |
Regulatory and Rate Matters - E
Regulatory and Rate Matters - Energy Efficiency and Load Management (Details) - Public Service Company of New Mexico $ in Millions | Apr. 15, 2022 USD ($) GWh | Apr. 15, 2020 USD ($) MMBTU meter |
Energy Efficiency and Load Management Program | ||
Public Utilities, General Disclosures [Line Items] | ||
Program costs related to energy efficiency, next fiscal year | $ 31.4 | |
Program costs related to energy efficiency, in year two | 31 | |
Program costs related to energy efficiency, in year three | $ 29.6 | |
Number of AMI meters to be installed | meter | 5,000 | |
Program costs related to meter installation | $ 2.9 | |
2021 Energy Efficiency Annual Report | Disincentives and Incentives Added | ||
Public Utilities, General Disclosures [Line Items] | ||
Energy efficiency and load management programs targeted energy savings (in Gigawatts) | GWh | 94 | |
Energy efficiency and load management programs profit incentive | $ 0.3 | |
Minimum | Renewable Portfolio Standard | ||
Public Utilities, General Disclosures [Line Items] | ||
Profit incentive sliding scale multiplier | 0.071 | |
Energy efficiency and load management programs targeted energy savings (in Gigawatts) | MMBTU | 80 |
Regulatory and Rate Matters - S
Regulatory and Rate Matters - SJGS Abandonment Application (Details) $ in Millions | 12 Months Ended | ||||||||||
Jul. 29, 2022 USD ($) | Jun. 17, 2022 USD ($) | Jul. 10, 2019 proceeding | Jul. 01, 2019 USD ($) | Dec. 31, 2022 USD ($) | Oct. 14, 2022 MW | Dec. 31, 2021 USD ($) | Jul. 29, 2020 MW | Mar. 31, 2020 USD ($) | Mar. 30, 2020 USD ($) | Feb. 21, 2020 USD ($) | |
Public Service Company of New Mexico | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory disallowance and festructuring costs | $ 1.6 | ||||||||||
Solar distributed generation (in mw) | MW | 200 | 650 | |||||||||
Number of megawatts in battery storage facilities (in megawatts) | MW | 100 | 300 | |||||||||
Payments for legal settlements | $ 19.8 | ||||||||||
Public Utilities, Loss Contingency | 28.7 | ||||||||||
San Juan Generating Station | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Severance costs | 6.6 | ||||||||||
Severance | 8.9 | ||||||||||
San Juan Generating Station | Other deferred credits | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | 37.2 | $ 36.9 | |||||||||
San Juan Generating Station | Employee Severance | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | 0.7 | $ 9.4 | |||||||||
San Juan Generating Station | Public Service Company of New Mexico | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Request issuance of energy transition bonds | $ 361 | ||||||||||
Forecasted undepreciated investment | 283 | $ 361 | |||||||||
Plant decommissioning and coal mine reclamation costs | 28.6 | ||||||||||
Upfront financing costs | 9.6 | ||||||||||
Severance costs | 20 | ||||||||||
Proceeds from securitization bonds | $ 19.8 | ||||||||||
Number of proceedings | proceeding | 2 | ||||||||||
San Juan Generating Station | Public Service Company of New Mexico | Other deferred credits | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | 36 | ||||||||||
San Juan Generating Station | Public Service Company of New Mexico | Deferred Regulatory Asset | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | $ 36.9 | ||||||||||
San Juan Generating Station | Public Service Company of New Mexico | Employee Severance | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | $ 8.1 | ||||||||||
San Juan Generating Station | Public Service Company of New Mexico | Other Restructuring | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | $ 8.9 | ||||||||||
San Juan Generating Station | Public Service Company of New Mexico | Economic Development and Workforce Training Costs | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Restructuring reserve | $ 19.8 | $ 19.8 | |||||||||
San Juan Generation Station, Unit 1 | Public Service Company of New Mexico | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Annual rate credits | $ 21.1 | ||||||||||
San Juan Generating Station, Unit 4 | Public Service Company of New Mexico | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Annual rate credits | $ 98.3 | ||||||||||
Number of days to transfer payment | 30 days |
Regulatory and Rate Matters -_3
Regulatory and Rate Matters - Schedule of Change in Balance Sheet Related to Discontinued Services (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current Assets: | ||||
Inventory | $ (6,430) | $ 8,528 | $ (1,356) | $ (11,512) |
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 | (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 - F
Regulatory and Rate Matters - Four Corners Abandonment Application (Details) - Four Corners - Public Service Company of New Mexico - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 08, 2021 | Nov. 01, 2020 | Nov. 30, 2020 | |
Public Utilities, General Disclosures [Line Items] | |||
Payments for relief from obligations | $ 75 | $ 15 | |
Final payment for relief from obligations | 60 | ||
Initial payment for relief from obligations | $ 15 | ||
Request issuance of energy transition bonds | $ 300 | ||
Forecasted undepreciated investment | 272 | ||
Plant decommissioning and coal mine reclamation costs | 4.6 | ||
Upfront financing costs | 7.3 | ||
Proceeds from securitization bonds | $ 16.5 | ||
Public Service Company of New Mexico | |||
Public Utilities, General Disclosures [Line Items] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 13% |
Regulatory and Rate Matters - P
Regulatory and Rate Matters - PVNGS Leased Interest Abandonment Application (Details) | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 05, 2022 MW | Sep. 08, 2022 | Aug. 23, 2022 | Apr. 02, 2021 lease MW | Nov. 15, 2015 power_purchase_agreement numberOfAMIMeter batteryStorageAgreement | Dec. 31, 2021 power_purchase_agreement | Dec. 31, 2021 power_purchase_agreement | Oct. 14, 2022 MW | Sep. 02, 2022 MW | Feb. 14, 2022 MW | Jul. 29, 2020 MW | |
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 | ||||||||||
Public Service Company of New Mexico | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Number of leases under which lease term was extended | lease | 5 | ||||||||||
Solar distributed generation (in mw) | 200 | 650 | |||||||||
Number of purchase power agreements | power_purchase_agreement | 2 | 3 | |||||||||
Number of battery storage agreements | batteryStorageAgreement | 3 | ||||||||||
Number of megawatts in battery storage facilities (in megawatts) | 100 | 300 | |||||||||
Total number of agreements | numberOfAMIMeter | 5 | ||||||||||
Filing period, extension | 2 days | 45 days | |||||||||
Filing period, with extension | 12 days | ||||||||||
Public Service Company of New Mexico | NM 2022 Rate Case | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Megawatt repurchase (in megawatts) | 64.1 | ||||||||||
Public Service Company of New Mexico | Leased Interest Termination On January 15, 2023 | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Number of leases under which lease term was extended | lease | 4 | ||||||||||
Public Service Company of New Mexico | Replacement Resource Portfolio One | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Solar distributed generation (in mw) | 150 | 150 | |||||||||
Number of megawatts in battery storage facilities (in megawatts) | 40 | 40 | |||||||||
Public Service Company of New Mexico | Replacement Resource Portfolio Two | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Number of megawatts in battery storage facilities (in megawatts) | 100 | 100 | |||||||||
Public Service Company of New Mexico | Replacement Resource Portfolio Three | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Solar distributed generation (in mw) | 300 | 300 | |||||||||
Number of megawatts in battery storage facilities (in megawatts) | 150 | 300 | 150 | ||||||||
NMPRC | Public Service Company of New Mexico | Leased Interest Termination On January 15, 2023 | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Solar distributed generation (in mw) | 104 | ||||||||||
NMPRC | Public Service Company of New Mexico | Leased Interest Termination On January 15, 2024 | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Solar distributed generation (in mw) | 10 |
Regulatory and Rate Matters -_4
Regulatory and Rate Matters - Summer Peak Resource Adequacy (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jan. 30, 2023 MW | Jul. 19, 2022 MW | Mar. 18, 2022 MW | Feb. 17, 2022 MW | Nov. 15, 2015 power_purchase_agreement | Jun. 30, 2022 MW | Dec. 31, 2022 MW | Dec. 31, 2021 power_purchase_agreement | Dec. 31, 2022 MW | Dec. 31, 2021 MW replacementResource power_purchase_agreement | |
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of replacement resources | replacementResource | 4 | |||||||||
Number of purchase power agreements | power_purchase_agreement | 3 | |||||||||
Public Service Company of New Mexico | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of purchase power agreements | power_purchase_agreement | 2 | 3 | ||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 65 | 327 | ||||||||
Number of megawatts, peak during period | 2,139 | |||||||||
Public Service Company of New Mexico | Portfolio One | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 35 | 270 | 85 | 85 | ||||||
Public Service Company of New Mexico | Portfolio Two | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 25 | 150 | 40 | |||||||
Public Service Company of New Mexico | Portfolio Three | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 40 | 40 | 150 | |||||||
Public Service Company of New Mexico | Solar Agreement | Subsequent Event | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 100 | |||||||||
Public Service Company of New Mexico | Battery Storage Agreement | Subsequent Event | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Number of megawatts available in purchase power agreement (in megawatts) | 30 | |||||||||
Public Service Company of New Mexico | Minimum | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Projected reserve margin | 10.30% | |||||||||
Public Service Company of New Mexico | Maximum | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Projected reserve margin | 6% |
Regulatory and Rate Matters - G
Regulatory and Rate Matters - Grid Modernization Application (Details) - Public Service Company of New Mexico $ in Millions | Oct. 03, 2022 USD ($) |
Public Utilities, General Disclosures [Line Items] | |
Grid modernization investment | $ 344 |
Grid modernization, initial term | 6 years |
Grid modernization term | 11 years |
Regulatory and Rate Matters - C
Regulatory and Rate Matters - COVID-19 Regulatory Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | $ 846,686 | $ 514,258 |
Regulatory liabilities | 755,202 | 841,393 |
Public Service Company of New Mexico | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | 763,941 | 428,981 |
Regulatory liabilities | 556,989 | 653,830 |
Public Service Company of New Mexico | COVID-19 cost savings | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory liabilities | 900 | 900 |
COVID-19 | Public Service Company of New Mexico | COVID-19 cost savings | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory liabilities | 900 | 900 |
Deferred COVID-19 costs | Public Service Company of New Mexico | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | 5,664 | 6,896 |
Deferred COVID-19 costs | COVID-19 | Public Service Company of New Mexico | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | 5,700 | $ 6,900 |
Decrease in other regulatory assets | $ 2,700 |
Regulatory and Rate Matters -_5
Regulatory and Rate Matters - FERC Compliance (Details) $ in Millions | 3 Months Ended | |||||
Nov. 21, 2022 USD ($) | Jul. 29, 2022 filedPetition | Jul. 18, 2022 denialNotice | Jun. 16, 2022 USD ($) numberOfAMIMeter proceeding | May 17, 2022 delegatedLetterOrder | Dec. 31, 2022 USD ($) | |
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 | |||||
Time-value refunds | $ 8.1 | |||||
Payment of time-value refunds | $ 8.1 | |||||
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 -_6
Regulatory and Rate Matters - Schedule of Transmission Cost of Service Rates (Details) - TNMP - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | |||||||
Sep. 22, 2022 | Mar. 25, 2022 | Sep. 20, 2021 | Mar. 12, 2021 | Oct. 07, 2020 | Mar. 27, 2020 | Dec. 31, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | |
Energy efficiency costs | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Aggregate Collection Amount | $ 7.2 | $ 5.9 | $ 5.9 | ||||||
Performance Bonus | $ 2.3 | $ 1 | $ 0.8 | ||||||
Transmission Cost of Service Rates | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Approved Increase in Rate Base | $ 36 | $ 95.6 | $ 41.2 | $ 112.6 | $ 10.8 | $ 59.2 | |||
Annual Increase in Revenue | $ 5.3 | $ 14.2 | $ 6.3 | $ 14.1 | $ 2 | $ 7.8 |
Regulatory and Rate Matters - T
Regulatory and Rate Matters - TNMP Narrative (Details) - Texas-New Mexico Power Company - USD ($) $ in Millions | Jan. 23, 2023 | Jul. 18, 2022 | Apr. 05, 2022 | Jul. 01, 2021 | Apr. 05, 2021 | Sep. 24, 2022 | May 27, 2022 |
Public Utilities, General Disclosures [Line Items] | |||||||
Energy efficiency cost recovery factor, requested change amount | $ 7.4 | ||||||
Energy efficiency cost recovery factor, requested performance bonus | $ 1.9 | $ 1.9 | |||||
Energy efficiency cost recovery factor, settlement amount | $ 7.3 | ||||||
Requested increase annual distribution revenue requirement | $ 6.8 | $ 9.7 | $ 13.5 | $ 14 | |||
Incremental distribution investments | $ 104.5 | ||||||
Increase in rate base | $ 100.7 | ||||||
Subsequent Event | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Requested increase annual distribution revenue requirement | $ 19.4 | ||||||
Incremental distribution investments | $ 150.5 |
Regulatory and Rate Matters - A
Regulatory and Rate Matters - AMS Reconciliation (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2018 USD ($) | |
Texas-New Mexico Power Company | |
Public Utilities, General Disclosures [Line Items] | |
Costs of deployment | $ 9 |
Income Taxes - Federal Income T
Income Taxes - Federal Income Tax Reform (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Federal and state excess deferred income taxes | $ 23.6 | ||
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Federal and state excess deferred income taxes | 14.4 | ||
TNMP | |||
Income Taxes [Line Items] | |||
Federal and state excess deferred income taxes | $ 9.2 | ||
NMPRC | |||
Income Taxes [Line Items] | |||
Proposed term for providing benefits to customers related to reduction in state corporate tax | 3 years | 23 years |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Current federal income tax | $ 0 | $ 0 | $ 0 |
Current state income tax | 1,597 | 1,835 | 231 |
Deferred federal income tax | 18,413 | 20,679 | 17,574 |
Deferred state income tax | 7,302 | 11,315 | 3,721 |
Amortization of accumulated investment tax credits | (1,182) | (1,247) | (890) |
Total income taxes | 26,130 | 32,582 | 20,636 |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Current federal income tax | (13,533) | 0 | 0 |
Current state income tax | 3,244 | (128) | (585) |
Deferred federal income tax | 25,298 | 18,774 | 20,125 |
Deferred state income tax | 4,361 | 8,583 | 2,560 |
Amortization of accumulated investment tax credits | (172) | (237) | (243) |
Total income taxes | 19,198 | 26,992 | 21,857 |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Current federal income tax | 17,055 | 5,770 | 12,048 |
Current state income tax | 2,662 | 2,395 | 2,033 |
Deferred federal income tax | (4,527) | (224) | (7,744) |
Deferred state income tax | (29) | (29) | (29) |
Total income taxes | $ 15,161 | $ 7,912 | $ 6,308 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 44,375 | $ 51,330 | $ 43,670 |
Amortization of accumulated investment tax credits | (1,182) | (1,247) | (890) |
Amortization of excess deferred income tax | (23,599) | (24,484) | (30,723) |
Flow-through of depreciation items | 2,795 | 798 | 1,368 |
(Earnings) attributable to non-controlling interest in Valencia | (3,176) | (3,253) | (2,943) |
State income tax, net of federal (benefit) | 6,826 | 9,660 | 6,961 |
Allowance for equity funds used during construction | (2,898) | (2,776) | (2,363) |
Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization | 0 | 0 | 1,367 |
Allocation of tax (benefit) related to stock compensation awards | 91 | (788) | (392) |
Non-deductible compensation | 1,125 | 899 | 2,630 |
Transaction costs | 74 | 848 | 0 |
Other | 1,699 | 1,595 | 1,951 |
Total income taxes | $ 26,130 | $ 32,582 | $ 20,636 |
Effective tax rate | 12.37% | 13.33% | 9.92% |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 29,026 | $ 41,696 | $ 38,193 |
Amortization of accumulated investment tax credits | (172) | (237) | (243) |
Amortization of excess deferred income tax | (14,421) | (15,158) | (21,609) |
Flow-through of depreciation items | 2,641 | 689 | 1,279 |
(Earnings) attributable to non-controlling interest in Valencia | (3,176) | (3,253) | (2,943) |
State income tax, net of federal (benefit) | 5,694 | 7,609 | 7,111 |
Allowance for equity funds used during construction | (1,958) | (2,080) | (1,461) |
Regulatory recovery of prior year impairments of state net operating loss carryforward, including amortization | 0 | 0 | 1,367 |
Allocation of tax (benefit) related to stock compensation awards | 65 | (563) | (279) |
Non-deductible compensation | 701 | 547 | 1,554 |
Transaction costs | 10 | 22 | 0 |
Other | 788 | (2,280) | (1,112) |
Total income taxes | $ 19,198 | $ 26,992 | $ 21,857 |
Effective tax rate | 13.89% | 13.59% | 12.02% |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Federal income tax at statutory rates | $ 22,560 | $ 15,076 | $ 13,628 |
Amortization of excess deferred income tax | (9,177) | (9,326) | (9,113) |
State income tax, net of federal (benefit) | 2,103 | 1,763 | 1,625 |
Allocation of tax (benefit) related to stock compensation awards | 26 | (224) | (112) |
Non-deductible compensation | 422 | 351 | 1,071 |
Transaction costs | 1 | (4) | 0 |
Other | (774) | 276 | (791) |
Total income taxes | $ 15,161 | $ 7,912 | $ 6,308 |
Effective tax rate | 14.11% | 11.02% | 9.71% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss | $ 85,382 | $ 32,441 |
Regulatory liabilities related to income taxes | 98,371 | 120,651 |
Federal tax credit carryforwards | 122,557 | 122,436 |
Regulatory disallowances | 28,037 | 38,835 |
Other | 33,849 | 34,812 |
Total deferred tax assets | 368,196 | 349,175 |
Deferred tax liabilities: | ||
Depreciation and plant related | (801,022) | (787,295) |
Investment tax credit | 96,227 | 97,409 |
Regulatory assets related to income taxes | (77,013) | (78,211) |
Pension | (40,651) | (40,828) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (24,048) | (25,643) |
Regulatory asset SJGS investment | (69,828) | 0 |
Other | (82,238) | (84,639) |
Total deferred tax liabilities | (1,191,027) | (1,114,025) |
Net accumulated deferred income tax liabilities | (822,831) | (764,850) |
Public Service Company of New Mexico | ||
Deferred tax assets: | ||
Net operating loss | 54,681 | 1,854 |
Regulatory liabilities related to income taxes | 76,744 | 96,161 |
Federal tax credit carryforwards | 84,902 | 86,811 |
Regulatory disallowances | 28,037 | 38,835 |
Other | 33,079 | 36,599 |
Total deferred tax assets | 277,443 | 260,260 |
Deferred tax liabilities: | ||
Depreciation and plant related | (620,814) | (616,567) |
Investment tax credit | 74,015 | 74,187 |
Regulatory assets related to income taxes | (67,912) | (68,687) |
Pension | (36,048) | (36,283) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (24,048) | (25,643) |
Regulatory asset SJGS investment | (69,828) | 0 |
Other | (66,818) | (69,575) |
Total deferred tax liabilities | (959,483) | (890,942) |
Net accumulated deferred income tax liabilities | (682,040) | (630,682) |
Texas-New Mexico Power Company | ||
Deferred tax assets: | ||
Regulatory liabilities related to income taxes | 21,627 | 24,490 |
Other | 5,353 | 3,648 |
Total deferred tax assets | 26,980 | 28,138 |
Deferred tax liabilities: | ||
Depreciation and plant related | (166,230) | (157,649) |
Regulatory assets related to income taxes | (9,213) | (9,525) |
Loss on reacquired debt | 5,527 | 5,799 |
Pension | (4,603) | (4,545) |
AMS | 3,989 | 5,249 |
Other | (2,055) | (2,619) |
Total deferred tax liabilities | (191,617) | (185,386) |
Net accumulated deferred income tax liabilities | $ (164,637) | $ (157,248) |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Income Tax Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | $ 57,981 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (7,546) | ||
Amortization of excess deferred income tax | (23,599) | ||
Tax effect of mark-to-market adjustments | (1,359) | ||
Tax effect of excess pension liability | (645) | ||
Adjustment for uncertain income tax positions | 1,439 | ||
Reclassification of unrecognized tax benefits | (1,439) | ||
Other | (299) | ||
Deferred income tax | 24,533 | $ 30,747 | $ 20,405 |
Public Service Company of New Mexico | |||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 51,358 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (4,995) | ||
Amortization of excess deferred income tax | (14,421) | ||
Tax effect of mark-to-market adjustments | 1,462 | ||
Tax effect of excess pension liability | (646) | ||
Adjustment for uncertain income tax positions | 1,430 | ||
Reclassification of unrecognized tax benefits | (4,701) | ||
Deferred income tax | 29,487 | 27,120 | 22,442 |
Texas-New Mexico Power Company | |||
Income Taxes [Line Items] | |||
Net change in deferred income tax liability per above table | 7,389 | ||
Change in tax effects of income tax related regulatory assets and liabilities | (2,552) | ||
Amortization of excess deferred income tax | (9,177) | ||
Other | (216) | ||
Deferred income tax | $ (4,556) | $ (253) | $ (7,773) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, interest on income taxes expense | $ 0 | $ 0 | $ 0 |
PNMR | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 13,714,000 | 13,152,000 | 10,693,000 |
Additions based on tax positions | 1,444,000 | 305,000 | 2,286,000 |
Reductions for tax positions of prior years | (4,000) | ||
Additions for tax positions of prior years | 257,000 | 173,000 | |
Settlement payments | 0 | 0 | 0 |
Ending balance | 15,154,000 | 13,714,000 | 13,152,000 |
Unrecognized tax benefits that would impact effective tax rate | 13,600,000 | ||
Public Service Company of New Mexico | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 10,771,000 | 10,230,000 | 7,776,000 |
Additions based on tax positions | 1,437,000 | 295,000 | 2,286,000 |
Reductions for tax positions of prior years | (7,000) | ||
Additions for tax positions of prior years | 246,000 | 168,000 | |
Settlement payments | 0 | 0 | 0 |
Ending balance | 12,201,000 | 10,771,000 | 10,230,000 |
Unrecognized tax benefits that would impact effective tax rate | 10,600,000 | ||
Unrecognized tax benefits, interest on income taxes expense | 0 | 0 | 0 |
Texas-New Mexico Power Company | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 141,000 | 119,000 | 114,000 |
Additions based on tax positions | 7,000 | 11,000 | 0 |
Additions for tax positions of prior years | 3,000 | 11,000 | 5,000 |
Settlement payments | 0 | 0 | 0 |
Ending balance | 151,000 | 141,000 | 119,000 |
Unrecognized tax benefits that would impact effective tax rate | 200,000 | ||
Unrecognized tax benefits, interest on income taxes expense | $ 0 | $ 0 | $ 0 |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes, Impairment of Carryforwards | |||
Federal tax credit carryforwards | $ 187 | $ 1,029 | $ (425) |
Compensation expense | 199 | 119 | 96 |
Income Taxes, Reserve Balances | |||
Federal tax credit carryforwards | 1,216 | 1,029 | |
Compensation expense | 725 | 526 | |
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Federal net operating loss carryforwards | 382,000 | ||
Federal tax credit carryforwards that expire beginning in 2023 | 123,800 | ||
Public Service Company of New Mexico | |||
Income Taxes, Impairment of Carryforwards | |||
Federal tax credit carryforwards | 427 | 0 | 0 |
Compensation expense | 140 | 84 | 61 |
Income Taxes, Reserve Balances | |||
Federal tax credit carryforwards | 427 | 0 | |
Compensation expense | 483 | 343 | |
Texas-New Mexico Power Company | |||
Income Taxes, Impairment of Carryforwards | |||
Federal tax credit carryforwards | 0 | 0 | 0 |
Compensation expense | 59 | 35 | $ 35 |
Income Taxes, Reserve Balances | |||
Federal tax credit carryforwards | 0 | 0 | |
Compensation expense | $ 241 | $ 182 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 01, 2020 | Apr. 01, 2018 |
Schedule of Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill | $ 278,297 | $ 278,297 | $ 278,297 | ||
Texas-New Mexico Power Company | |||||
Schedule of Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill | 226,665 | 226,665 | $ 226,700 | ||
Percentage of fair value in excess of carrying amount | 38% | ||||
Public Service Company of New Mexico | |||||
Schedule of Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill | $ 51,632 | $ 51,632 | $ 51,600 | ||
Percentage of fair value in excess of carrying amount | 19% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NMRD | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% | ||
Services billings: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | $ 115,415 | $ 107,747 | $ 100,872 |
Services billings: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 42,293 | 41,798 | 39,053 |
Services billings: | PNM to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 411 | 404 | 383 |
Services billings: | TNMP to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 141 | 141 | 141 |
Services billings: | TNMP to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 0 | 0 |
Services billings: | PNMR to NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 308 | 221 | 260 |
Renewable energy purchases: | PNM from NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 11,795 | 11,879 | 9,638 |
Interconnection and facility study billings: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 0 | 0 |
Interconnection and facility study billings: | PNM to NMRD | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 225 | 350 |
Interconnection and facility study billings: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 0 | 0 |
Interconnection and facility study billings: | NMRD to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 1,276 | 0 |
Interest billings: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 13 | 31 | 6 |
Interest billings: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 166 | 0 | 2 |
Interest billings: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 249 | 144 | 255 |
Income tax sharing payments: | PNMR to PNM | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 19,492 | 0 |
Income tax sharing payments: | PNMR to TNMP | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 0 | 0 | 0 |
Income tax sharing payments: | TNMP to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 8,341 | 12,842 | 15,820 |
Income tax sharing payments: | PNM to PNMR | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | $ 11,602 | $ 0 | $ 0 |
Equity Method Investment - Narr
Equity Method Investment - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Distributions from NMRD | $ | $ 0 | $ 572 | $ 0 | ||
PNMR Development | NMRD | |||||
Business Acquisition [Line Items] | |||||
Distributions from NMRD | $ | $ 3,000 | ||||
Equity in earnings | $ | $ 2,400 | ||||
Dividend in excess of equity earnings | $ | $ 600 | ||||
NMRD | |||||
Business Acquisition [Line Items] | |||||
Renewable energy capacity in operating (in mw) | MW | 135.1 | ||||
Megawatts supplying energy to data center (in mw) | MW | 130 | ||||
Megawatts supplying energy to cooperative (in mw) | MW | 1.9 | ||||
Megawatts supplying energy to power city (in mw) | MW | 1.2 | ||||
NMRD | PNMR Development | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 50% | ||||
Contribution to construction activities | $ | $ 0 | $ 0 | $ 23,300 | ||
NMRD | Central New Mexico Electric Cooperative | |||||
Business Acquisition [Line Items] | |||||
Megawatts supplying energy to cooperative (in mw) | MW | 2 |
Equity Method Investment - Summ
Equity Method Investment - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Balance Sheet Related Disclosures [Abstract] | |||
Net property, plant, and equipment | 372,988 | 248,856 | |
Total assets | 9,257,377 | 8,666,885 | 7,939,854 |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 | |
NMRD | |||
Income Statement [Abstract] | |||
Operating Revenues | 12,505 | 12,738 | 10,366 |
Operating expenses | 9,591 | 9,733 | 7,476 |
Net earnings | 2,914 | 3,005 | $ 2,890 |
Balance Sheet Related Disclosures [Abstract] | |||
Current assets | 8,357 | 10,729 | |
Net property, plant, and equipment | 169,440 | 166,495 | |
Non-current assets | 9,631 | 2,289 | |
Total assets | 187,428 | 179,513 | |
Current liabilities | 5,822 | 824 | |
Non-current liabilities | 366 | 373 | |
Total PNMR common stockholders’ equity | $ 181,240 | $ 178,316 |
Merger (Details)
Merger (Details) - Forecast - Merger Agreement - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Business combination, cash right per common share (in dollars per share) | $ 50.30 | |
Out-of-pocket fees and expenses reimbursement | $ 10 | |
PNMR | ||
Business Acquisition [Line Items] | ||
Termination fees | 130 | |
Avangrid | ||
Business Acquisition [Line Items] | ||
Termination fees | $ 184 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent Company - Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Operating Revenues | $ 2,249,555 | $ 1,779,873 | $ 1,523,012 |
Operating Expenses | 1,855,795 | 1,471,720 | 1,237,731 |
Operating income | 393,760 | 308,153 | 285,281 |
Other Income and Deductions: | |||
Other income | 21,601 | 20,200 | 19,973 |
Net other income and (deductions) | (54,542) | 33,153 | 37,063 |
Interest Charges | 127,908 | 96,877 | 114,392 |
Earnings before Income Taxes | 211,310 | 244,429 | 207,952 |
Income taxes (benefit) | 26,130 | 32,582 | 20,636 |
PNM Resources | |||
Condensed Financial Statements, Captions [Line Items] | |||
Operating Revenues | 0 | 0 | 0 |
Operating Expenses | 6,199 | 15,044 | 28,299 |
Operating income | (6,199) | (15,044) | (28,299) |
Other Income and Deductions: | |||
Equity in earnings of subsidiaries | 197,860 | 221,004 | 211,291 |
Other income | 663 | 362 | (269) |
Net other income and (deductions) | 198,523 | 221,366 | 211,022 |
Interest Charges | 30,430 | 11,986 | 19,078 |
Earnings before Income Taxes | 161,894 | 194,336 | 163,645 |
Income taxes (benefit) | (7,636) | (1,493) | (9,130) |
Net earnings | $ 169,530 | $ 195,829 | $ 172,775 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Parent Company - Statement of Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | |||
Net Cash Flows From Operating Activities | $ 567,284 | $ 547,873 | $ 485,700 |
Cash Flows From Investing Activities: | |||
Net cash flows used in investing activities | (950,347) | (952,258) | (733,799) |
Cash Flows From Financing Activities: | |||
Revolving credit facility borrowings (repayments), net | 169,300 | 30,700 | (153,100) |
Long-term borrowings | 558,000 | 1,816,345 | 1,267,845 |
Repayment of long-term debt | (179,500) | (1,411,345) | (977,845) |
Issuance of common stock | 0 | 0 | 283,208 |
Proceeds from stock option exercise | 0 | 24 | |
Dividends paid | (119,839) | (112,972) | (98,502) |
Debt issuance costs and other, net | (5,564) | (6,306) | (4,943) |
Net cash flows from financing activities | 386,037 | 357,561 | 292,194 |
Change in Cash and Cash Equivalents | 2,974 | (46,824) | 44,095 |
Cash and Cash Equivalents at Beginning of Year | 1,104 | 47,928 | 3,833 |
Cash and Cash Equivalents at End of Year | 4,078 | 1,104 | 47,928 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 118,485 | 91,276 | 106,575 |
Income taxes paid (refunded), net | (1,011) | 1,042 | 969 |
PNM Resources | |||
Cash Flows From Operating Activities: | |||
Net Cash Flows From Operating Activities | (10,261) | (28,514) | (17,646) |
Cash Flows From Investing Activities: | |||
Utility plant additions | 1,136 | 543 | 1,122 |
Investments in subsidiaries | (70,200) | (178,071) | (301,000) |
Cash dividends from subsidiaries | 153,500 | 60,000 | 99,187 |
Net cash flows used in investing activities | 84,436 | (117,528) | (200,691) |
Cash Flows From Financing Activities: | |||
Short-term borrowings (repayments) -affiliate, net | (700) | 6,400 | 0 |
Revolving credit facility borrowings (repayments), net | (45,500) | 42,900 | (131,900) |
Long-term borrowings | 100,000 | 1,120,000 | 230,000 |
Repayment of long-term debt | 0 | (900,000) | (50,000) |
Issuance of common stock | 0 | 0 | 283,208 |
Proceeds from stock option exercise | 0 | 0 | 24 |
Awards of common stock | (7,980) | (10,130) | (11,984) |
Dividends paid | (119,311) | (112,444) | (97,974) |
Debt issuance costs and other, net | (686) | (673) | (3,064) |
Net cash flows from financing activities | (74,177) | 146,053 | 218,310 |
Change in Cash and Cash Equivalents | (2) | 11 | (27) |
Cash and Cash Equivalents at Beginning of Year | 63 | 52 | 79 |
Cash and Cash Equivalents at End of Year | 61 | 63 | 52 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of amounts capitalized | 29,904 | 13,425 | 16,869 |
Income taxes paid (refunded), net | $ (2,500) | $ 0 | $ 0 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Cash and cash equivalents | $ 4,078 | $ 1,104 | |
Income taxes receivable | 2,351 | 4,878 | |
Other current assets | 31,624 | 1,635 | |
Total current assets | 410,978 | 324,600 | |
Property, plant and equipment, net of accumulated depreciation of $17,721 and $16,585 | 6,972,823 | 6,752,899 | |
Other long-term assets | 177 | 265 | |
Total assets | 9,257,377 | 8,666,885 | $ 7,939,854 |
Liabilities and Stockholders’ Equity | |||
Short-term debt | 232,000 | 62,700 | |
Accrued interest and taxes | 76,783 | 70,105 | |
Dividends Payable, Current | 31,676 | 132 | |
Other current liabilities | 87,037 | 99,149 | |
Total current liabilities | 890,370 | 664,213 | |
Long-term debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 3,892,594 | 3,519,580 | |
Total liabilities | 7,000,922 | 6,432,427 | |
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,429,102 | 1,429,257 | |
Accumulated other comprehensive income (loss), net of income taxes | (66,048) | (71,936) | |
Retained earnings | 828,878 | 810,203 | |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 | |
Total liabilities and stockholders' equity | 9,257,377 | 8,666,885 | |
PNM Resources | |||
Assets | |||
Cash and cash equivalents | 61 | 63 | |
Intercompany receivables | 55,304 | 45,954 | |
Derivative instruments | 11,108 | 0 | |
Income taxes receivable | 1,298 | 18,674 | |
Other current assets | 83 | 247 | |
Total current assets | 67,854 | 64,938 | |
Property, plant and equipment, net of accumulated depreciation of $17,721 and $16,585 | 21,513 | 22,649 | |
Investment in subsidiaries | 3,118,442 | 3,006,281 | |
Other long-term assets | 45,501 | 49,220 | |
Total long-term assets | 3,185,456 | 3,078,150 | |
Total assets | 3,253,310 | 3,143,088 | |
Liabilities and Stockholders’ Equity | |||
Short-term debt | 9,400 | 54,900 | |
Short-term debt-affiliate | 14,519 | 15,219 | |
Accrued interest and taxes | 3,302 | 2,564 | |
Dividends Payable, Current | 31,544 | 0 | |
Other current liabilities | 197 | 318 | |
Total current liabilities | 58,962 | 73,001 | |
Long-term debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 999,612 | 899,759 | |
Other long-term liabilities | 2,804 | 2,804 | |
Total liabilities | 1,061,378 | 975,564 | |
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 85,834,874 shares) | 1,429,102 | 1,429,257 | |
Accumulated other comprehensive income (loss), net of income taxes | (66,048) | (71,936) | |
Retained earnings | 828,878 | 810,203 | |
Total PNMR common stockholders’ equity | 2,191,932 | 2,167,524 | |
Total liabilities and stockholders' equity | $ 3,253,310 | $ 3,143,088 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Parent Company - Balance Sheets Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Financial Statements, Captions [Line Items] | ||
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 outstanding (in shares) | 85,834,874 | 85,834,874 |
PNM Resources | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accumulated depreciation | $ 17,721 | $ 16,585 |
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 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Reserve, Allowance For Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 7,265 | $ 8,333 | $ 1,163 |
Charged to costs and expenses | 3,758 | 4,663 | 3,527 |
Charged to other accounts | 0 | 826 | 6,070 |
Write-offs and other | 6,098 | 6,557 | 2,427 |
Balance at end of year | 4,925 | 7,265 | 8,333 |
Public Service Company of New Mexico | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 7,265 | 8,333 | 1,163 |
Charged to costs and expenses | 3,758 | 4,597 | 3,482 |
Charged to other accounts | 0 | 826 | 6,070 |
Write-offs and other | 6,098 | 6,491 | 2,382 |
Balance at end of year | 4,925 | 7,265 | 8,333 |
Texas-New Mexico Power Company | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 0 | 0 | 0 |
Charged to costs and expenses | 0 | 66 | 45 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs and other | 0 | 66 | 45 |
Balance at end of year | $ 0 | $ 0 | $ 0 |