Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-14206 | |
Entity Registrant Name | EL PASO ELECTRIC CO /TX/ | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Entity Central Index Key | 0000031978 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-0607870 | |
Entity Address, Address Line One | 100 North Stanton Street | |
Entity Address, City or Town | El Paso, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79901 | |
City Area Code | 915 | |
Local Phone Number | 543-5711 | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | EE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,735,161 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Electric plant in service | $ 4,328,915 | $ 4,181,409 |
Less accumulated depreciation and amortization | (1,452,972) | (1,391,266) |
Net plant in service | 2,875,943 | 2,790,143 |
Construction work in progress | 180,502 | 169,327 |
Nuclear fuel; includes fuel in process of $43,315 and $62,833, respectively | 198,773 | 198,280 |
Net nuclear fuel | 117,753 | 125,577 |
Net utility plant | 3,174,198 | 3,085,047 |
Current assets: | ||
Cash and cash equivalents | 15,597 | 12,900 |
Accounts receivable, principally trade, net of allowance for doubtful accounts of $1,870 and $2,070, respectively | 114,610 | 77,855 |
Inventories, at cost | 59,047 | 55,432 |
Regulatory assets | 7,939 | 6,972 |
Prepayments and other | 27,487 | 20,375 |
Total current assets | 224,680 | 173,534 |
Deferred charges and other assets: | ||
Decommissioning trust funds | 311,742 | 276,905 |
Regulatory assets | 72,346 | 74,848 |
Other | 17,263 | 18,168 |
Total deferred charges and other assets | 401,351 | 369,921 |
Total assets | 3,800,229 | 3,628,502 |
Capitalization: | ||
Common stock, stated value $1 per share, 100,000,000 shares authorized, 64,310,380 and 65,707,156 shares issued, and 118,308 and 121,532 restricted shares, respectively | 64,429 | 65,829 |
Capital in excess of stated value | 322,966 | 328,480 |
Retained earnings | 1,275,159 | 1,227,471 |
Accumulated other comprehensive loss, net of tax | (38,636) | (38,784) |
Total stockholders' equity subtotal before treasury stock | 1,623,918 | 1,582,996 |
Treasury stock, 23,693,527 and 25,147,567 shares, respectively, at cost | (394,669) | (418,893) |
Common stock equity | 1,229,249 | 1,164,103 |
Long-term debt, net of current portion | 1,340,832 | 1,285,980 |
Total capitalization | 2,570,081 | 2,450,083 |
Current liabilities: | ||
Current maturities of long-term debt | 44,959 | 99,239 |
Short-term borrowings under the revolving credit facility | 99,826 | 49,207 |
Accounts payable, principally trade | 61,226 | 58,150 |
Taxes accrued | 43,408 | 37,139 |
Interest accrued | 18,848 | 16,478 |
Regulatory liabilities | 19,141 | 14,686 |
Other | 39,244 | 38,356 |
Total current liabilities | 326,652 | 313,255 |
Deferred credits and other liabilities: | ||
Accumulated deferred income taxes | 349,620 | 325,133 |
Accrued pension liability | 80,616 | 87,259 |
Accrued post-retirement benefit liability | 26,165 | 24,575 |
Asset retirement obligation | 107,844 | 101,108 |
Regulatory liabilities | 298,555 | 298,570 |
Other | 40,696 | 28,519 |
Total deferred credits and other liabilities | 903,496 | 865,164 |
Commitments and contingencies | ||
Total capitalization and liabilities | 3,800,229 | 3,628,502 |
Nuclear Fuel | ||
Utility plant: | ||
Less accumulated depreciation and amortization | $ (81,020) | $ (72,703) |
Balance Sheets Parenthetical
Balance Sheets Parenthetical - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Nuclear fuel; fuel in process | $ 43,315 | $ 62,833 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 1,870 | $ 2,070 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 64,310,380 | 65,707,156 |
Common stock, Restricted shares | 118,308 | 121,532 |
Treasury Stock, Shares | 23,693,527 | 25,147,567 |
Statements Of Operations
Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating revenues | $ 294,453 | $ 300,271 | $ 671,891 | $ 712,780 | $ 862,714 | $ 908,929 |
Operating expenses: | ||||||
Fuel and purchased power | 50,583 | 71,086 | 131,015 | 176,737 | 183,387 | 229,996 |
Operations and maintenance | 82,186 | 83,355 | 243,907 | 252,370 | 326,420 | 336,506 |
Depreciation and amortization | 25,704 | 24,169 | 76,050 | 71,941 | 100,491 | 95,790 |
Taxes other than income taxes | 21,953 | 21,728 | 56,245 | 54,616 | 72,629 | 71,271 |
Utilities operating expense | 180,426 | 200,338 | 507,217 | 555,664 | 682,927 | 733,563 |
Operating income | 114,027 | 99,933 | 164,674 | 157,116 | 179,787 | 175,366 |
Other income (deductions): | ||||||
Allowance for equity funds used during construction | 481 | 824 | 1,996 | 2,462 | 2,987 | 3,278 |
Investment and interest income, net | 11,904 | 16,815 | 48,625 | 33,042 | 33,960 | 41,587 |
Miscellaneous non-operating income | 3,150 | 3,037 | 9,288 | 9,245 | 12,866 | 12,428 |
Strategic transaction costs | (3,798) | 0 | (9,473) | 0 | (9,473) | 0 |
Miscellaneous non-operating deductions | (2,930) | (3,263) | (7,615) | (8,775) | (10,820) | (11,677) |
Nonoperating income | 8,807 | 17,413 | 42,821 | 35,974 | 29,520 | 45,616 |
Interest charges (credits): | ||||||
Interest on long-term debt and revolving credit facility | 18,772 | 19,603 | 56,024 | 55,785 | 75,663 | 73,766 |
Other interest | 5,314 | 4,127 | 16,357 | 13,896 | 20,351 | 18,320 |
Capitalized interest | (1,435) | (1,488) | (4,424) | (4,067) | (5,840) | (5,258) |
Allowance for borrowed funds used during construction | (986) | (881) | (3,020) | (2,551) | (4,081) | (3,353) |
Interest expense | 21,665 | 21,361 | 64,937 | 63,063 | 86,093 | 83,475 |
Income before income taxes | 101,169 | 95,985 | 142,558 | 130,027 | 123,214 | 137,507 |
Income tax expense | 23,289 | 22,714 | 32,463 | 30,427 | 28,404 | 31,407 |
Net income | $ 77,880 | $ 73,271 | $ 110,095 | $ 99,600 | $ 94,810 | $ 106,100 |
Basic earnings per share | $ 1.910 | $ 1.80 | $ 2.70 | $ 2.450 | $ 2.33 | $ 2.61 |
Diluted earnings per share | 1.910 | 1.79 | 2.70 | 2.440 | 2.32 | 2.60 |
Dividends declared per share of common stock | $ 0.385 | $ 0.360 | $ 1.130 | $ 1.055 | $ 1.49 | $ 1.39 |
Weighted average number of shares outstanding | 40,616,532 | 40,535,489 | 40,600,726 | 40,514,961 | 40,585,513 | 40,494,482 |
Weighted average number of shares and dilutive potential shares outstanding | 40,679,868 | 40,697,047 | 40,679,998 | 40,644,493 | 40,669,094 | 40,630,758 |
Statements Of Comprehensive Ope
Statements Of Comprehensive Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 77,880 | $ 73,271 | $ 110,095 | $ 99,600 | $ 94,810 | $ 106,100 |
Unrecognized pension and post-retirement benefit costs: | ||||||
Net gain (loss) arising during period | 0 | 0 | 0 | 0 | (5,898) | 12,634 |
Reclassification adjustments included in net income for amortization of: | ||||||
Prior service benefit | (2,185) | (2,413) | (6,555) | (7,243) | (8,969) | (9,657) |
Net loss | 854 | 1,640 | 2,562 | 4,790 | 4,159 | 6,483 |
Net unrealized gains/losses on marketable securities: | ||||||
Net holding gains (losses) arising during period | 797 | (948) | 6,074 | (4,909) | 6,911 | 2,242 |
Reclassification adjustments for net (gains) losses included in net income | (3,202) | 443 | (2,232) | 1,108 | (1,895) | (396) |
Net losses on cash flow hedges: | ||||||
Reclassification adjustment for interest expense included in net income | 153 | 144 | 451 | 423 | 596 | 559 |
Total other comprehensive income (loss) before income taxes | (3,583) | (1,134) | 300 | (5,831) | (5,096) | 11,865 |
Income tax benefit (expense) related to items of other comprehensive income (loss): | ||||||
Unrecognized pension and post-retirement benefit costs | 301 | 174 | 862 | 520 | 2,377 | (3,811) |
Net unrealized (gains) losses on marketable securities | 372 | 105 | (900) | 761 | (1,138) | (347) |
Losses on cash flow hedges | (33) | (32) | (114) | (113) | (146) | (162) |
Total income tax benefit (expense) | 640 | 247 | (152) | 1,168 | 1,093 | (4,320) |
Other comprehensive income (loss), net of tax | (2,943) | (887) | 148 | (4,663) | (4,003) | 7,545 |
Comprehensive income | $ 74,937 | $ 72,384 | $ 110,243 | $ 94,937 | $ 90,807 | $ 113,645 |
Statements of Change in Common
Statements of Change in Common Stock Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Restricted Stock | Restricted StockAdditional Paid-in Capital | Performance Shares | Performance SharesAdditional Paid-in Capital |
Balances at beginning of period (in shares) at Dec. 31, 2017 | 65,828,688 | 25,244,350 | ||||||||
Balances at beginning of period at Dec. 31, 2017 | $ 1,142,165 | $ 65,829 | $ 326,117 | $ 1,159,667 | $ 11,058 | $ (420,506) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | $ (47) | $ (560) | $ 1,499 | $ 360 | ||||||
Stock based compensation, grants of common stock, treasury stock reissued (in share) | (30,800) | (68,379) | ||||||||
Stock based compensation, grants of common stock, treasury stock reissued, value | $ 513 | $ 1,139 | ||||||||
Stock awards withheld for taxes (in shares) | 20,389 | |||||||||
Stock awards withheld for taxes, value | (1,064) | (725) | $ (339) | |||||||
Forfeited restricted common stock (in shares) | 2,391 | |||||||||
Forfeited restricted common stock, value | (40) | $ (40) | ||||||||
Compensation paid in shares (in shares) | (1,008) | |||||||||
Compensation paid in shares, value | 52 | 35 | $ 17 | |||||||
Net income (loss) | (6,966) | (6,966) | ||||||||
Other Comprehensive Income (Loss) | (2,351) | (2,351) | ||||||||
Common stock, dividends declared, cash | (13,615) | (13,615) | ||||||||
Balances at end of period (in shares) at Mar. 31, 2018 | 65,828,688 | 25,166,943 | ||||||||
Balances at end of period at Mar. 31, 2018 | 1,119,633 | $ 65,829 | 325,227 | 1,180,114 | (32,321) | $ (419,216) | ||||
Balances at beginning of period (in shares) at Dec. 31, 2017 | 65,828,688 | 25,244,350 | ||||||||
Balances at beginning of period at Dec. 31, 2017 | 1,142,165 | $ 65,829 | 326,117 | 1,159,667 | 11,058 | $ (420,506) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 99,600 | |||||||||
Common stock, dividends declared, cash | (42,900) | |||||||||
Balances at end of period (in shares) at Sep. 30, 2018 | 65,828,688 | 25,136,737 | ||||||||
Balances at end of period at Sep. 30, 2018 | 1,197,200 | $ 65,829 | 327,320 | 1,257,397 | (34,633) | $ (418,713) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect adjustment for financial instruments | 0 | 41,028 | (41,028) | |||||||
Balances at beginning of period (in shares) at Mar. 31, 2018 | 65,828,688 | 25,166,943 | ||||||||
Balances at beginning of period at Mar. 31, 2018 | 1,119,633 | $ 65,829 | 325,227 | 1,180,114 | (32,321) | $ (419,216) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | $ 1,294 | 777 | ||||||||
Stock based compensation, grants of common stock, treasury stock reissued (in share) | (31,009) | |||||||||
Stock based compensation, grants of common stock, treasury stock reissued, value | $ 517 | |||||||||
Forfeited restricted common stock (in shares) | 335 | |||||||||
Forfeited restricted common stock, value | (5) | $ (5) | ||||||||
Compensation paid in shares (in shares) | (902) | |||||||||
Compensation paid in shares, value | 52 | 38 | $ 14 | |||||||
Net income (loss) | 33,295 | 33,295 | ||||||||
Other Comprehensive Income (Loss) | (1,425) | (1,425) | ||||||||
Common stock, dividends declared, cash | (14,642) | (14,642) | ||||||||
Balances at end of period (in shares) at Jun. 30, 2018 | 65,828,688 | 25,135,367 | ||||||||
Balances at end of period at Jun. 30, 2018 | 1,138,202 | $ 65,829 | 326,042 | 1,198,767 | (33,746) | $ (418,690) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | 1,253 | 1,253 | ||||||||
Forfeited restricted common stock (in shares) | 2,001 | |||||||||
Forfeited restricted common stock, value | (34) | $ (34) | ||||||||
Compensation paid in shares (in shares) | (631) | |||||||||
Compensation paid in shares, value | 36 | 25 | $ 11 | |||||||
Net income (loss) | 73,271 | 73,271 | ||||||||
Other Comprehensive Income (Loss) | (887) | (887) | ||||||||
Common stock, dividends declared, cash | (14,641) | (14,641) | ||||||||
Balances at end of period (in shares) at Sep. 30, 2018 | 65,828,688 | 25,136,737 | ||||||||
Balances at end of period at Sep. 30, 2018 | 1,197,200 | $ 65,829 | 327,320 | 1,257,397 | (34,633) | $ (418,713) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 94,810 | |||||||||
Common stock, dividends declared, cash | $ (60,600) | |||||||||
Balances at end of period (in shares) at Sep. 30, 2019 | 64,310,380 | 64,428,688 | 23,693,527 | |||||||
Balances at end of period at Sep. 30, 2019 | $ 1,229,249 | $ 64,429 | 322,966 | 1,275,159 | (38,636) | $ (394,669) | ||||
Balances at beginning of period (in shares) at Dec. 31, 2018 | 65,707,156 | 65,828,688 | 25,147,567 | |||||||
Balances at beginning of period at Dec. 31, 2018 | $ 1,164,103 | $ 65,829 | 328,480 | 1,227,471 | (38,784) | $ (418,893) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | $ (804) | (1,328) | $ 2,143 | $ 1,478 | ||||||
Stock based compensation, grants of common stock, treasury stock reissued (in share) | (31,461) | (39,923) | ||||||||
Stock based compensation, grants of common stock, treasury stock reissued, value | $ 524 | $ 665 | ||||||||
Stock awards withheld for taxes (in shares) | 12,425 | |||||||||
Stock awards withheld for taxes, value | (637) | (430) | $ (207) | |||||||
Forfeited restricted common stock (in shares) | 2,566 | |||||||||
Forfeited restricted common stock, value | (43) | $ (43) | ||||||||
Compensation paid in shares (in shares) | (669) | |||||||||
Compensation paid in shares, value | 39 | 28 | $ 11 | |||||||
Net income (loss) | 6,089 | 6,089 | ||||||||
Other Comprehensive Income (Loss) | 1,657 | 1,657 | ||||||||
Common stock, dividends declared, cash | (14,658) | (14,658) | ||||||||
Balances at end of period (in shares) at Mar. 31, 2019 | 65,828,688 | 25,090,505 | ||||||||
Balances at end of period at Mar. 31, 2019 | $ 1,157,889 | $ 65,829 | 328,228 | 1,218,902 | (37,127) | $ (417,943) | ||||
Balances at beginning of period (in shares) at Dec. 31, 2018 | 65,707,156 | 65,828,688 | 25,147,567 | |||||||
Balances at beginning of period at Dec. 31, 2018 | $ 1,164,103 | $ 65,829 | 328,480 | 1,227,471 | (38,784) | $ (418,893) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 110,095 | |||||||||
Common stock, dividends declared, cash | $ (46,000) | |||||||||
Balances at end of period (in shares) at Sep. 30, 2019 | 64,310,380 | 64,428,688 | 23,693,527 | |||||||
Balances at end of period at Sep. 30, 2019 | $ 1,229,249 | $ 64,429 | 322,966 | 1,275,159 | (38,636) | $ (394,669) | ||||
Balances at beginning of period (in shares) at Mar. 31, 2019 | 65,828,688 | 25,090,505 | ||||||||
Balances at beginning of period at Mar. 31, 2019 | 1,157,889 | $ 65,829 | 328,228 | 1,218,902 | (37,127) | $ (417,943) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | $ (797) | (1,205) | ||||||||
Stock based compensation, grants of common stock, treasury stock reissued (in share) | (24,500) | |||||||||
Stock based compensation, grants of common stock, treasury stock reissued, value | $ 408 | |||||||||
Compensation paid in shares (in shares) | (709) | |||||||||
Compensation paid in shares, value | 47 | 35 | $ 12 | |||||||
Net income (loss) | 26,126 | 26,126 | ||||||||
Retirement of treasury shares, (in shares) | (1,400,000) | (1,400,000) | ||||||||
Retirement of treasury shares, value | 0 | $ (1,400) | (5,552) | (16,372) | $ (23,324) | |||||
Other Comprehensive Income (Loss) | 1,434 | 1,434 | ||||||||
Common stock, dividends declared, cash | (15,694) | (15,694) | ||||||||
Balances at end of period (in shares) at Jun. 30, 2019 | 64,428,688 | 23,665,296 | ||||||||
Balances at end of period at Jun. 30, 2019 | 1,169,005 | $ 64,429 | 321,506 | 1,212,962 | (35,693) | $ (394,199) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock based compensation grants of common stock, value | $ 1,902 | $ 1,441 | ||||||||
Stock based compensation, grants of common stock, treasury stock reissued (in share) | (27,624) | |||||||||
Stock based compensation, grants of common stock, treasury stock reissued, value | $ 461 | |||||||||
Forfeited restricted common stock (in shares) | 56,243 | |||||||||
Forfeited restricted common stock, value | (937) | $ (937) | ||||||||
Compensation paid in shares (in shares) | (388) | |||||||||
Compensation paid in shares, value | 25 | 19 | $ 6 | |||||||
Net income (loss) | 77,880 | 77,880 | ||||||||
Other Comprehensive Income (Loss) | (2,943) | (2,943) | ||||||||
Common stock, dividends declared, cash | $ (15,683) | (15,683) | ||||||||
Balances at end of period (in shares) at Sep. 30, 2019 | 64,310,380 | 64,428,688 | 23,693,527 | |||||||
Balances at end of period at Sep. 30, 2019 | $ 1,229,249 | $ 64,429 | $ 322,966 | $ 1,275,159 | $ (38,636) | $ (394,669) |
Statements of Change in Commo_2
Statements of Change in Common Stock Equity Parenthetical - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock, dividends declared, per share | $ 0.385 | $ 0.385 | $ 0.360 | $ 0.360 | $ 0.360 | $ 0.335 | $ 1.130 | $ 1.055 | $ 1.49 | $ 1.39 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 110,095 | $ 99,600 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of electric plant in service | 76,050 | 71,941 |
Amortization of Nuclear Fuel | 30,933 | 29,822 |
Deferred income taxes, net | 25,071 | 24,369 |
Allowance for equity funds used during construction | (1,996) | (2,462) |
Other amortization and accretion | 13,377 | 15,427 |
Net gains on decommissioning trust funds | (25,427) | (9,683) |
Other operating activities | (545) | 31 |
Change in: | ||
Accounts receivable | (34,897) | (33,958) |
Inventories | (3,413) | (1,480) |
Prepayments and other | (11,290) | (5,716) |
Accounts payable | 1,355 | 4,920 |
Taxes accrued | 9,685 | 7,632 |
Interest accrued | 2,370 | 8,491 |
Net over-collection of fuel revenues | 3,327 | 3,680 |
Other current liabilities | (217) | 9,185 |
Deferred charges and credits | (3,474) | (321) |
Net cash provided by operating activities | 191,004 | 221,478 |
Cash flows from investing activities: | ||
Cash additions to utility property, plant and equipment | (159,992) | (171,433) |
Cash additions to nuclear fuel | (19,224) | (28,769) |
Insurance proceeds received for equipment | 0 | 5,351 |
Capitalized interest and AFUDC: | ||
Utility property, plant and equipment | (5,016) | (5,013) |
Nuclear fuel and other | (4,424) | (4,067) |
Allowance for equity funds used during construction | 1,996 | 2,462 |
Decommissioning trust funds: | ||
Purchases, including funding of $1.6 million and $1.6 million, respectively | (361,577) | (74,438) |
Sales and maturities | 356,009 | 70,156 |
Other investing activities | 1,249 | 3,639 |
Net cash used for investing activities | (190,979) | (202,112) |
Cash flows from financing activities: | ||
Dividends paid | (46,035) | (42,898) |
Borrowings under the revolving credit facility: | ||
Proceeds | 430,483 | 504,707 |
Payments | (379,864) | (658,878) |
Pollution control bonds: | ||
Proceeds | 100,600 | 0 |
Payments | (100,600) | 0 |
Other financing activities | (1,912) | (3,322) |
Net cash provided by (used for) financing activities | 2,672 | (10,391) |
Net increase in cash and cash equivalents | 2,697 | 8,975 |
Cash and cash equivalents at beginning of period | 12,900 | 6,990 |
Cash and cash equivalents at end of period | 15,597 | 15,965 |
4.22% Senior Notes, due 2028 | ||
Pollution control bonds: | ||
Proceeds from issuance of senior notes | 0 | 125,000 |
4.07% RGRT Senior Notes, due 2025 | ||
Pollution control bonds: | ||
Proceeds from issuance of senior notes | $ 0 | $ 65,000 |
Statements Of Cash Flows Parent
Statements Of Cash Flows Parenthetical - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Payments to fund Decommissioning Fund | $ 1.6 | $ 1.6 |
Principles Of Preparation
Principles Of Preparation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles Of Preparation | Principles of Preparation These condensed financial statements should be read in conjunction with the financial statements and notes thereto in the Annual Report of El Paso Electric Company (the "Company") on Form 10-K for the fiscal year ended December 31, 2018 (" 2018 Form 10-K"). Capitalized terms used in this report and not defined herein have the meaning ascribed to such terms in the 2018 Form 10-K. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary to present fairly the financial position of the Company at September 30, 2019 and December 31, 2018 ; the results of its operations and comprehensive operations for the three, nine and twelve months ended September 30, 2019 and 2018 ; changes in common stock equity for the three and nine months ended September 30, 2019 and 2018 ; and its cash flows for the nine months ended September 30, 2019 and 2018 . The results of operations, comprehensive operations and the changes in common stock equity for the three and nine months ended September 30, 2019 and 2018 , and the cash flows for the nine months ended September 30, 2019 and 2018 , are not necessarily indicative of the results to be expected for the full calendar year. Pursuant to the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"), certain financial information has been condensed and certain footnote disclosures have been omitted. Such information and disclosures are normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Use of Estimates . 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 and 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. The Company evaluates its estimates on an on-going basis, including those related to depreciation, unbilled revenue, income taxes, fuel costs, pension and other post-retirement obligations and asset retirement obligations. Actual results could differ from those estimates. Operating Revenues . The Company accrues revenues for services rendered, including unbilled electric service revenues. The Company recognizes revenue associated with contracts with customers when performance obligations under the terms of the contract with the customer are satisfied. Revenue is measured as the amount of consideration the Company receives in exchange for transferring goods or providing services to the customer. Taxes collected concurrently with revenue producing activities are excluded from revenue. Unbilled revenues are recorded for estimated amounts of energy delivered in the period following the customer's last billing cycle to the end of the reporting period. Unbilled revenues are estimated based on monthly generation volumes and by applying an average revenue/kilowatt-hour ("kWh") to the number of estimated kWhs delivered but not billed. Accounts receivable included accrued unbilled revenues of $33.3 million at September 30, 2019 and $21.6 million at December 31, 2018 . The Company’s Texas retail customers are billed under base rates and a fixed fuel factor approved by the Public Utility Commission of Texas ("PUCT"). The Company’s New Mexico retail customers are billed under base rates and a fuel adjustment clause that is adjusted monthly, as approved by the New Mexico Public Regulation Commission ("NMPRC"). The Company's Federal Energy Regulatory Commission ("FERC") sales for resale customers are billed under formula base rates and fuel factors and a fuel adjustment clause that is adjusted monthly. The Company’s recovery of fuel and purchased power expenses is subject to periodic reconciliations of actual fuel and purchased power expenses incurred to actual fuel revenues collected. The difference between fuel and purchased power expenses incurred and fuel revenues charged to customers is reflected as over/under-collection of fuel revenues, which is included in regulatory liabilities/assets - current in the balance sheets. See Part I, Item 1, Financial Statements, Note D of Notes to Financial Statements for further discussion. Leases. The Company determines if an arrangement contains a lease and the classification of that lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the minimum lease payments over the lease term. In determining lease terms, the Company considers any options to extend or terminate the lease that are reasonably certain of being exercised. As the Company’s leases do not include an implicit rate, the Company uses an estimated incremental borrowing rate, at lease commencement, to determine the present value of the future lease payments. In calculating the incremental borrowing rate, the Company takes into consideration recent debt issuances and other data for instruments with similar characteristics. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. For leases with lease and non-lease components, the Company has elected to account for the consideration as a single lease component. The Company has also elected not to record leases with a term of 12 months or less on the balance sheets. The operating lease ROU assets are included as part of electric plant in service and lease liabilities are included as part of current and non-current liabilities in the Company’s balance sheets. Depreciation. The Company routinely evaluates the depreciable service lives, cost of removal and salvage values of its property, plant and equipment. Depreciation is provided on a straight-line basis over the estimated remaining lives of the assets (ranging in average from 5 to 48 years). When property subject to composite depreciation is retired or otherwise disposed of in the normal course of business, its cost together with the cost of removal, less salvage is charged to accumulated depreciation. For other property dispositions, the applicable cost and accumulated depreciation is removed from the balance sheet accounts and a gain or loss is recognized. New Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring qualitative and quantitative disclosures on leasing agreements. ASU 2016-02 maintains a distinction between finance leases and operating leases similar to the distinction under previous lease guidance for capital leases and operating leases. Effective January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective method, applying the transition provisions to the beginning of the period of adoption rather than to the earliest comparative period presented, which continues to be reported in accordance with previous lease guidance, Accounting Standards Codification Topic 840. The Company adopted the package of practical expedients, which does not require the Company to reassess: (i) whether an arrangement contained a lease, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases. The Company also adopted the practical expedient related to land easements, which allowed carry forward accounting treatment for existing land easements. The most significant impact of adopting ASU 2016-02, as of January 1, 2019, was the recording of approximately $6.3 million of operating lease liabilities and related ROU assets with no cumulative effect adjustment to retained earnings. The Company anticipates the ongoing impact of the new standard to be immaterial to net income and cash flows. See Part I, Item 1, Financial Statements, Note I of Notes to Financial Statements for further discussion. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), as a result of concerns raised due to the federal law commonly referred to as the Tax Cuts and Jobs Act of 2017 ("TCJA"). More specifically, because the remeasurement of deferred taxes due to the change in the federal corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income ("AOCI") (referred to as stranded tax effects) do not reflect the appropriate tax rate. ASU 2018-02 allows companies an election to reclassify stranded taxes from AOCI to retained earnings. The amount of the reclassification would be the difference between the historical federal corporate income tax rate of 35% and the newly enacted 21% federal corporate income tax rate, which approximates $7.2 million . The provisions of ASU 2018-02 are effective for fiscal years and interim periods within that reporting period beginning after December 15, 2018. The Company adopted ASU 2018-02 on January 1, 2019, and has elected to not reclassify stranded taxes from AOCI to retained earnings. New Accounting Standards to be Adopted in the Future In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 changes how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are in the scope of the standard. ASU 2016-13 will be required for reporting periods beginning after December 15, 2019. ASU 2016-13 will be applied in a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is implemented. The Company is currently in the process of evaluating the impact of the new standard, which includes continuing to monitor activities of the FASB, including the impact of ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. Supplemental Cash Flow Disclosures (in thousands) Nine Months Ended September 30, 2019 2018 Cash paid for: Interest on long-term debt and borrowings under the revolving credit facility $ 47,871 $ 47,479 Income tax paid, net 2,567 2,480 Non-cash investing and financing activities: Changes in accrued plant additions 1,721 9,347 Grants of restricted shares of common stock 1,393 1,030 Issuance of performance shares 2,143 1,499 Non-cash operating activities: Operating lease liabilities arising from obtaining ROU assets 5,889 — |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition Disclosure | Revenues The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018, for all of its contracts using the modified retrospective method. There was no cumulative effect adjustment at the initial application of the new standard. In addition, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The following table disaggregates revenue from contracts with customers, for the three, nine and twelve months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2019 2018 2019 2018 2019 2018 Retail $ 268,375 $ 265,971 $ 584,160 $ 633,578 $ 740,258 $ 807,626 Wholesale 18,900 28,253 68,530 63,354 95,849 79,456 Wheeling (transmission) 5,883 5,145 16,739 13,578 22,187 17,981 Total revenues from contracts with customers 293,158 299,369 669,429 710,510 858,294 905,063 Other 1,295 902 2,462 2,270 4,420 3,866 Total operating revenues $ 294,453 $ 300,271 $ 671,891 $ 712,780 $ 862,714 $ 908,929 Accounts receivable. Accounts receivable is principally comprised of revenue from contracts with customers. The Company recognizes expense for accounts that are deemed uncollectible in operating expense. The Company recognized $0.8 million , $1.5 million and $2.3 million of uncollectible expense for the three, nine and twelve months ended September 30, 2019 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Income (Loss) Upon adoption of ASU 2016-01, Financial Instruments - Overall, the Company recorded, on January 1, 2018, a cumulative effect adjustment, net of income taxes, to increase retained earnings by $41.0 million with an offset to AOCI. Changes in Accumulated Other Comprehensive Income (Loss) (net of tax) by component are presented below (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (27,024 ) $ 2,033 $ (10,702 ) $ (35,693 ) $ (19,124 ) $ (3,478 ) $ (11,144 ) $ (33,746 ) Other comprehensive income before reclassifications — 454 — 454 — (764 ) — (764 ) Amounts reclassified from accumulated other comprehensive income (loss) (1,030 ) (2,487 ) 120 (3,397 ) (599 ) 364 112 (123 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Marketable Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (24,923 ) $ (2,942 ) $ (10,919 ) $ (38,784 ) $ (17,790 ) $ 40,190 $ (11,342 ) $ 11,058 Cumulative effect adjustment — — — — — (41,028 ) — (41,028 ) Other comprehensive income before reclassifications — 4,656 — 4,656 — (3,923 ) — (3,923 ) Amounts reclassified from accumulated other comprehensive income (loss) (3,131 ) (1,714 ) 337 (4,508 ) (1,933 ) 883 310 (740 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) Twelve Months Ended September 30, 2019 Twelve Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Marketable Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) $ (25,372 ) $ 35,651 $ (11,429 ) $ (1,150 ) Cumulative effect adjustment — — — — — (41,028 ) — (41,028 ) Other comprehensive income before reclassifications (4,589 ) 5,339 — 750 7,951 1,837 — 9,788 Amounts reclassified from accumulated other comprehensive income (loss) (3,742 ) (1,461 ) 450 (4,753 ) (2,302 ) (338 ) 397 (2,243 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) for the three, nine and twelve months ended September 30, 2019 and 2018 are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, Affected Line Item in the Statements of Operations 2019 2018 2019 2018 2019 2018 Amortization of pension and post-retirement benefit costs: Prior service benefit $ 2,185 $ 2,413 $ 6,555 $ 7,243 $ 8,969 $ 9,657 Miscellaneous non-operating income Net loss (854 ) (1,640 ) (2,562 ) (4,790 ) (4,159 ) (6,483 ) Miscellaneous non-operating deductions 1,331 773 3,993 2,453 4,810 3,174 Income (loss) before income taxes Income tax effect (301 ) (174 ) (862 ) (520 ) (1,068 ) (872 ) Income tax (benefit) expense 1,030 599 3,131 1,933 3,742 2,302 Net income (loss) Marketable securities: Net realized gain (loss) on sale of securities 3,202 (443 ) 2,232 (1,108 ) 1,895 396 Investment and interest income, net 3,202 (443 ) 2,232 (1,108 ) 1,895 396 Income (loss) before income taxes Income tax effect (715 ) 79 (518 ) 225 (434 ) (58 ) Income tax (benefit) expense 2,487 (364 ) 1,714 (883 ) 1,461 338 Net income (loss) Loss on cash flow hedge: Amortization of loss (153 ) (144 ) (451 ) (423 ) (596 ) (559 ) Interest on long-term debt and revolving credit facility (153 ) (144 ) (451 ) (423 ) (596 ) (559 ) Income (loss) before income taxes Income tax effect 33 32 114 113 146 162 Income tax (benefit) expense (120 ) (112 ) (337 ) (310 ) (450 ) (397 ) Net income (loss) Total reclassifications $ 3,397 $ 123 $ 4,508 $ 740 $ 4,753 $ 2,243 |
Regulation
Regulation | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulation | Regulation General The rates and services of the Company are regulated by incorporated municipalities in Texas, the PUCT, the NMPRC and the FERC. Municipal orders, ordinances and other agreements regarding rates and services adopted by Texas municipalities are subject to review and approval by the PUCT. The FERC has jurisdiction over the Company's wholesale (sales for resale - full requirement customer) transactions, transmission service and compliance with federally-mandated reliability standards. The decisions of the PUCT, the NMPRC and the FERC are subject to judicial review. On June 1, 2019, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement"), by and among the Company, Sun Jupiter Holdings LLC, a Delaware limited liability company ("Parent"), and Sun Merger Sub Inc., a Texas corporation and wholly owned subsidiary of Parent ("Merger Sub"). Pursuant to the Merger Agreement, on and subject to the terms and conditions set forth therein, Merger Sub will merge with and into the Company (the "Merger"), with the Company continuing as the surviving corporation in the Merger and becoming a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of Infrastructure Investments Fund, an investment vehicle advised by J.P. Morgan Investment Management Inc. ("IIF"). Among other things, the Company, Parent and Merger Sub are required to obtain certain regulatory approvals of the proposed Merger as discussed further in Part I, Item 1, Financial Statements, Note N of the Notes to the Financial Statements. On August 13, 2019, the Company, Parent and IIF US Holding 2 LP, an affiliate of IIF, as applicable, filed (1) the joint report and application for regulatory approvals with the PUCT requesting approval of the Merger pursuant to the Texas Public Utility Regulatory Act ("PURA"), (2) the joint application for regulatory approvals with the NMPRC requesting approval of the Merger pursuant to the New Mexico Public Utility Act ("NMPUA") and NMPRC Rule 450, (3) the joint application requesting approval of the Merger with the FERC under Section 203 of the Federal Power Act and (4) the joint application for regulatory approval for the indirect transfer of the Company’s Nuclear Regulatory Commission ("NRC") licenses to Parent from the NRC under the Atomic Energy Act of 1954. In addition, on August 13, 2019, the Company and Parent sought the authorization of the Federal Communications Commission ("FCC") to assign or transfer control of the Company’s FCC licenses. On August 16, 2019, the Company and Parent filed the notification and report form with the Antitrust Division of the Department of Justice and the Federal Trade Commission ("FTC") under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act"), as amended, and the rules and regulations promulgated thereunder. On September 3, 2019, the Company and Parent received notice from the FTC granting early termination of the waiting period under the HSR Act. Texas Regulatory Matters 2017 Texas Retail Rate Case Filing. On February 13, 2017, the Company filed with the City of El Paso, other municipalities incorporated in the Company's Texas service territory and the PUCT in the 2017 Texas Retail Rate Case, a request for an increase in non-fuel base revenues. On November 2, 2017, the Company filed the Joint Motion to Implement Uncontested Stipulation and Agreement with the Administrative Law Judges ("ALJ") for the 2017 Texas Retail Rate Case. On December 18, 2017, the PUCT issued the PUCT Final Order in Docket No. 46831 ("2017 PUCT Final Order"), which provides, among other things, for the following: (i) an annual non-fuel base rate increase of $14.5 million ; (ii) a return on equity of 9.65% ; (iii) all new plant in service as filed in the Company's rate filing package was prudent and used and useful and therefore is included in rate base; (iv) recovery of the costs of decommissioning Four Corners Generating Station in the amount of $5.5 million over a seven year period beginning August 1, 2017; (v) the Company to recover reasonable rate case expenses of approximately $3.4 million through a separate surcharge over a three year period; and (vi) a requirement that the Company file a refund tariff if the federal statutory income tax rate, as it relates to the Company, is decreased before the Company files its next rate case. The 2017 PUCT Final Order also established baseline revenue requirements for recovery of future transmission and distribution investment costs (for which the Company could seek recovery after January 1, 2019) and includes a minimum monthly bill of $30.00 for new residential customers with distributed generation, such as private rooftop solar. Additionally, the 2017 PUCT Final Order allowed for the annual recovery of $2.1 million of nuclear decommissioning funding and establishes annual depreciation expense that is approximately $1.9 million lower than the annual amount requested by the Company in its initial filing. Finally, the 2017 PUCT Final Order allowed for the Company to recover revenues associated with the relate back of rates to consumption on and after July 18, 2017, through a separate surcharge. New base rates, including additional surcharges associated with rate case expenses and the relate back of rates to consumption on and after July 18, 2017 , through December 31, 2017 , were implemented in January 2018. The surcharge for the relate back of rates expired on January 9, 2019, with a net over-recovery balance of $0.5 million that was addressed in the fuel reconciliation proceeding filed on September 27, 2019, which was assigned PUCT Docket No. 50058. For financial reporting purposes, the Company deferred any recognition of the Company's request in its 2017 Texas Retail Rate Case until it received the 2017 PUCT Final Order on December 18, 2017. Accordingly, it reported in the fourth quarter of 2017 the cumulative effect of the 2017 PUCT Final Order, which related back to July 18, 2017. The 2017 PUCT Final Order required the Company to file a refund tariff if the federal statutory income tax rate, as it relates to the Company, was decreased before the Company files its next general rate case. Following the enactment of the TCJA on December 22, 2017, and in compliance with the 2017 PUCT Final Order, on March 1, 2018, the Company filed with the PUCT and each of its Texas municipalities a proposed refund tariff designed to reduce base charges for Texas customers equivalent to the expected annual decrease of $22.7 million in federal income tax expense resulting from the TCJA changes and an additional refund of $4.3 million for the amortization of a regulatory liability related to the reduced tax expense for the months of January through March of 2018 . This filing was assigned PUCT Docket No. 48124. On March 27, 2018, the PUCT approved the Company's proposed refund tariff on an interim basis, subject to refund or surcharge, for customer billing effective April 1, 2018. Each of the Company's municipalities also implemented the Company's proposed tax credits on an interim basis effective April 1, 2018. The refund is reflected in rates over a period of one year beginning April 1, 2018, and will be updated annually until new base rates are implemented pursuant to the Company's next Texas rate case filing. The PUCT issued an order on December 10, 2018, approving the proposed refund tariff. On February 22, 2019, the Company filed with the PUCT and each of its Texas municipalities an application to modify the tax refund tariff to remove the portion of the base rate credit associated with the $4.3 million of regulatory liability amortization, which expired March 31, 2019. The filing was assigned PUCT Docket No. 49251 and approved by final order on June 27, 2019. Texas Energy Efficiency Cost Recovery Factor ("EECRF") . On May 1, 2017, the Company filed its annual application with the PUCT, which was assigned PUCT Docket No. 47125, to establish its EECRF for 2018. In addition to projected energy efficiency costs for 2018 and a reconciliation of collections to prior year actual costs, the Company requested approval of an incentive bonus for the 2016 energy efficiency program results in accordance with PUCT rules. Interim rates were approved effective January 1, 2018. The Company, the PUCT Staff and the City of El Paso reached an agreement that includes an incentive bonus of $0.8 million . The agreement was filed on January 25, 2018, and was approved by the PUCT on February 15, 2018. On May 1, 2018, the Company filed its annual application with the PUCT, which was assigned PUCT Docket No. 48332, to establish its EECRF for 2019. In addition to projected energy efficiency costs for 2019 and a reconciliation of collections to actual costs for the prior year, the Company requested approval of a $1.0 million incentive bonus for the 2017 energy efficiency program results in accordance with PUCT rules. Instead of convening a live hearing on the merits of this case, the parties agreed to enter into the record the pre-filed testimony of the parties and certain other exhibits and then file briefs on the contested issues. The ALJ issued a proposal for decision on November 15, 2018, including the Company's fully requested incentive bonus. On January 17, 2019, the PUCT issued a final order approving a modified bonus amount of $0.9 million . On May 1, 2019, the Company filed its annual application with the PUCT, which was assigned PUCT Docket No. 49496, to establish its EECRF for 2020. In addition to projected energy efficiency costs for 2020 and a reconciliation of collections to actual costs for the prior year, the Company requested approval of a $0.8 million incentive bonus for the 2018 energy efficiency program results in accordance with PUCT rules. On July 1, 2019, the Company requested, and received approval for, a suspension of the procedural schedule in order to pursue settlement of the case. On July 12, 2019, the Company informed the ALJ in the case that all parties had agreed in principle on terms for settlement. On August 14, 2019, the Company filed an unopposed settlement agreement and proposed order which resolved all issues in the proceeding. The case was remanded on August 16, 2019, to the PUCT for a final order approving the settlement agreement and the Company's EECRF rates. On October 11, 2019, the PUCT indicated that certain rate case expenses in the amount of approximately $15 thousand should be removed from the revenue requirement and postponed final consideration until its November 14, 2019, Open Meeting to allow for the filing of additional information reflecting the removal of that expense. Fuel and Purchased Power Costs. The Company's actual fuel costs, including purchased power energy costs, net of the cost of off-system sales and related shared margins, are recovered from customers through a fixed fuel factor. The PUCT has adopted a fuel cost recovery rule ("Texas Fuel Rule") that allows the Company to seek periodic adjustments to its fixed fuel factor. The Company can seek to revise its fixed fuel factor based upon the approved formula at least four months after its last revision except in the month of December. The Texas Fuel Rule requires the Company to request to refund fuel costs in any month when the over-recovery balance exceeds a threshold material amount and it expects fuel costs to continue to be materially over-recovered. The Texas Fuel Rule also permits the Company to seek to surcharge fuel under-recoveries in any month the balance exceeds a threshold material amount and it expects fuel cost recovery to continue to be materially under-recovered. Fuel over- and under-recoveries are considered material when they exceed 4% of the previous twelve months' fuel costs. All such fuel revenue and expense activities are subject to periodic final review by the PUCT in periodic fuel reconciliation proceedings. On October 13, 2017, the Company filed a request with the PUCT, which was assigned PUCT Docket No. 47692, to decrease the Texas fixed fuel factor by approximately 19% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. The decrease in the Texas fixed fuel factor became effective beginning with the November 2017 billing month. On April 13, 2018, the Company filed a request with the PUCT, which was assigned PUCT Docket No. 48264, to decrease the Texas fixed fuel factor by approximately 29% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. On April 25, 2018, the Company's proposed fuel factors were approved on an interim basis effective for the first billing cycle of the May 2018 billing month. The revised factor was approved by the PUCT and the docket closed on May 22, 2018. On October 15, 2018, the Company filed a request with the PUCT, which was assigned PUCT Docket No. 48781, to decrease the Texas fixed fuel factor by approximately 6.99% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. On October 25, 2018, the Company's fixed fuel factor was approved on an interim basis effective for the first billing cycle of the November 2018 billing month. The revised factor was approved by the PUCT and the docket closed on November 19, 2018. On April 29, 2019, the Company filed a petition with the PUCT, which was assigned PUCT Docket No. 49482, requesting authority to implement, beginning on June 1, 2019, a four -month, interim fuel refund of $19.4 million in fuel cost over-recoveries, including interest, for the period from April 2016 through March 2019 . On May 30, 2019, the Company's fuel refund credit was approved on an interim basis. The Company implemented the fuel refund in customer bills on June 1, 2019. On September 27, 2019, the PUCT issued a final order approving the fuel refund credits. The fuel refund was completed on September 30, 2019, with a total fuel refund of $20.1 million , including interest, returned to Texas customers. On September 13, 2019, the Company filed a request with the PUCT, which was assigned PUCT Docket No. 49960, to decrease the Texas fixed fuel factor by approximately 12.2% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. On September 25, 2019, the Company's fixed fuel factor was approved by the PUCT on an interim basis effective for the first billing cycle of the October 2019 billing month. The Texas fixed fuel factor was determined to be final on October 15, 2019, and will continue until changed by the PUCT. As of September 30, 2019, the Company had a net fuel over-recovery balance of approximately $14.1 million in Texas. Fuel Reconciliation Proceeding . On September 27, 2019, the Company filed an application with the PUCT, which was assigned PUCT Docket No. 50058, to reconcile $363.0 million of Texas fuel and purchased power expenses incurred during the period of April 1, 2016 , through March 31, 2019 . The Company cannot predict the outcome of this filing at this time. The April 1, 2019, through September 30, 2019 , Texas jurisdictional fuel and purchased power costs subject to a future prudence review total approximately $36.7 million . Community Solar. On June 8, 2015, the Company filed a petition with the PUCT to initiate a community solar program that includes the construction and ownership of a three -megawatt ("MW") solar photovoltaic system located at Montana Power Station ("MPS"). Participation is on a voluntary basis, and customers contract for a set capacity (kW) amount and receive all energy produced. This case was assigned PUCT Docket No. 44800. The Company filed a settlement agreement among all parties on July 1, 2016, approving the program, and the PUCT approved the settlement agreement and program on September 1, 2016. On April 19, 2017, the Company announced that the entire three-MW program was fully subscribed by approximately 1,500 Texas customers. The Community Solar facility began commercial operation on May 31, 2017 . On March 20, 2018, the Company filed a petition with the PUCT and each of its Texas municipalities to expand its community solar program in Texas to include two -MW of solar powered generation from the ten -MW solar photovoltaic facility located at Newman Power Station ("Newman") and to reduce rates under the community solar tariff. The case before the PUCT was assigned PUCT Docket No. 48181, and a hearing was held on December 4, 2018. The ALJ issued a proposal for decision on March 19, 2019, that approved the project as proposed by the Company. On May 9, 2019, the PUCT approved the Company's request to expand the program utilizing the two -MW of solar powered generation available from Newman. New subscriptions for the expanded program were accepted beginning in June 2019, and new rates for all existing and new customers were implemented in customer bills beginning July 1, 2019. As of June 30, 2019, the expanded program was fully subscribed. Transmission Cost Recovery Factor. On January 25, 2019, the Company filed an application with the PUCT to establish its Transmission Cost Recovery Factor ("TCRF"), which was assigned PUCT Docket No. 49148 (the "2019 TCRF rate filing"). The 2019 TCRF rate filing is designed to recover a requested $8.2 million of Texas jurisdictional transmission revenue requirement that is not currently being recovered in the Company's Texas base rates for transmission-related investments placed in service from October 1, 2016, through September 30, 2018 , net of retirements. Pursuant to the procedural order issued on February 20, 2019, the Company’s TCRF rate was approved on an interim basis effective July 30, 2019, subject to any refund or surcharge to the extent the PUCT’s final order establishes a TCRF rate that differs from the interim rate. On September 12, 2019, the Company filed an unopposed settlement agreement and proposed order for a TCRF revenue requirement of $7.5 million with a provision for recovery of revenue relating-back to the interim effective date of July 30, 2019. Such relate back revenue through September 30, 2019, is expected to approximate $1.4 million . The ALJ remanded the proceeding to the PUCT for consideration of a final order. The Company cannot predict the outcome of this pending matter at this time. Distribution Cost Recovery Factor . On March 28, 2019, the Company filed an application with the PUCT and each of its Texas municipalities to establish its Distribution Cost Recovery Factor (“DCRF”), which was assigned PUCT Docket No. 49395 (the “2019 DCRF rate filing”). The 2019 DCRF rate filing is designed to recover a requested $7.9 million of Texas jurisdictional distribution revenue requirement that is not currently being recovered in the Company’s Texas base rates for distribution-related investments placed in service from October 1, 2016, through December 31, 2018 , net of retirements. On August 13, 2019, the Company filed an unopposed settlement agreement and proposed order which resolved all issues in the proceeding and approved a DCRF revenue requirement of $7.8 million . On September 27, 2019, the PUCT issued a final order reflecting the settlement agreement, and the Company's DCRF rates became effective in customer bills beginning October 1, 2019. Other Required Approvals . The Company has obtained other required approvals for tariffs and other approvals required by the PURA and the PUCT. New Mexico Regulatory Matters Future New Mexico Rate Case Filing. The Company was required to file its next New Mexico base rate case no later than July 31, 2019. On July 10, 2019, the NMRPC issued an order approving a joint request by the Company, NMPRC Staff, and the New Mexico Attorney General to delay filing of the Company's next base rate case until after the conclusion of a proceeding addressing the Merger. The NMPRC order requires the Company to file its next rate case application within three months of the conclusion of the proceeding addressing the Merger in New Mexico. The Company cannot predict the outcome of this filing at this time. See Part I, Item 1, Financial Statements, Note N of Notes to Financial Statements for further discussion. New Mexico Order Commencing Review of the Effects of the TCJA on Regulated New Mexico Utilities. On January 24, 2018, the NMPRC initiated a proceeding in Case No. 18-00016-UT on the impact of the TCJA on New Mexico regulated utilities. On April 4, 2018, the NMPRC issued an order requiring the Company to file a proposed interim rate rider to adjust the Company's New Mexico base revenues in amounts equivalent to the Company's reduced income tax expense for New Mexico customers resulting from the TCJA, to be implemented on or before May 1, 2018. The NMPRC order further requires that the Company record and track a regulatory liability for the excess accumulated deferred income taxes created by the change in the federal corporate income tax rate, consistent with the effective date of the TCJA, and subject to amortization determined by the NMPRC in the Company's next general rate case. The Company recorded such a regulatory liability during the quarter ended December 31, 2017. On April 16, 2018, after consultation with the New Mexico Attorney General pursuant to the NMPRC order, the Company filed an interim rate rider with the NMPRC with a proposed effective date of May 1, 2018. The annualized credits expected to be refunded to New Mexico customers approximate $4.9 million . The Company implemented the interim rate rider in customer bills beginning May 1, 2018 pursuant to the NMPRC order. On September 5, 2018, the NMPRC issued an order in Case No. 17-00255-UT involving Southwestern Public Service Company’s ("SPS’s") request to change rates in which the NMPRC directed SPS to refund the difference in corporate tax rate from January 1, 2018, through the effective date of new rates. SPS appealed the NMPRC order to the New Mexico Supreme Court in Southwestern Public Service Co. v. NMPRC, No. S-1-SC-37248 ("SPS Appeal No. 1") , challenging the refund as prohibited retroactive ratemaking among other reasons. The New Mexico Supreme Court issued a partial and interim stay of the rates on September 26, 2018. On September 12, 2018, the NMPRC in Case No. 18-00016-UT issued an Order Regarding the Disposition of Tax Savings Under the Federal Tax Cuts and Jobs Act of 2017, which put public utilities on notice that all revenue collected through general rates for the purpose of payment of federal income taxes is and will continue to be subject to possible refund upon a subsequent determination to be made in the appropriate pending or future NMPRC adjudicatory hearing. On October 11, 2018, SPS filed a Notice of Appeal of that NMPRC order to the New Mexico Supreme Court in Southwestern Public Service Co. v. NMPRC, No. S-1-SC-37308 ("SPS Appeal No. 2") . On February 15, 2019, the NMPRC and SPS filed a joint motion for remand and stipulated dismissal of SPS appeals of NMPRC orders with the New Mexico Supreme Court, which among other things, reflected agreements between the NMPRC and SPS, which in part provide that the NMPRC will replace the order in Case No. 17-00255-UT with a new order that eliminates the retroactive TCJA refund and that SPS will request dismissal of SPS Appeals No. 1 and No. 2. On February 28, 2019, the New Mexico Supreme Court remanded SPS Appeal No. 1 back to the NMPRC and dismissed the appeal. On March 6, 2019, the NMPRC issued a revised final order on remand in Case No. 17-00255-UT that, in part, eliminated the retroactive TCJA refund. Fuel and Purchased Power Costs. Pursuant to NMPRC Rule 550, fuel and purchased power costs, net of the cost of off-system sales and related shared margins, are reconciled to actual costs on a monthly basis and recovered or refunded to customers the second succeeding month through the Fuel and Purchased Power Cost Adjustment Clause ("FPPCAC"). The Company must file an application for continued use of its FPPCAC no more than four years from the date its last FPPCAC was continued. As required, the Company filed a request to continue use of its FPPCAC with the NMPRC on January 5, 2018, which was assigned Case No. 18-00006-UT. The NMPRC issued a final order in the case on February 13, 2019, which authorized the Company to continue use of its FPPCAC without change and approved the Company's reconciliation of its fuel and purchased power costs for the period January 1, 2015, through December 31, 2016 . New Mexico jurisdictional costs subject to prudence review are costs from January 1, 2017, through September 30, 2019 , that total approximately $107.3 million . At September 30, 2019, the Company had a net fuel under-recovery balance of approximately $1.4 million related to the FPPCAC in New Mexico. New Mexico Renewable Portfolio Standard. Effective January 1, 2018, pursuant to the final order in NMPRC Case No. 17-00090-UT, the Renewable Portfolio Standard ("RPS") costs for New Mexico are recovered through a separate RPS Cost Rider and not through the FPPCAC. At September 30, 2019, the Company had a net fuel over-recovery balance related to the RPS Cost Rider of approximately $1.6 million . The RPS Cost Rider is updated in an annual NMPRC filing, including a reconciliation of the prior year’s RPS costs and RPS Cost Rider revenue. On October 1, 2019, the Company filed its required application with the NMPRC for its 2019 Annual Renewable Plan in Case No. 19-0099-UT and for adjustment of its RPS Cost Rider for reconciliation of 2018 costs and revenues and to recover RPS costs for 2020. The application requests approvals of the Company's plan to meet requirements of the Renewable Energy Act, as amended in 2019. The Company cannot predict the outcome of this filing at this time. 5-MW Holloman Air Force Base ("HAFB") Facility Certificate of Convenience and Necessity ("CCN") . On October 7, 2015, in Case No. 15-00185-UT, the NMPRC issued a final order approving a CCN for a five -MW solar power generation facility located on HAFB in the Company's service territory in New Mexico. The Company and HAFB negotiated a retail contract, which includes a power sales agreement for the facility, to replace the existing load retention agreement that was approved by NMPRC final order issued October 5, 2016, in Case No. 16-00224-UT. The solar generation facility began commercial operation on October 18, 2018. New Mexico Efficient Use of Energy Recovery Factor. On July 1, 2016 , the Company filed its annual application with the NMPRC requesting approval of its 2017 Energy Efficiency and Load Management Plan and to establish the Efficient Use of Energy Recovery Factor ("EUERF") for 2017. In addition to projected energy efficiency costs for 2017, the Company requested approval of a $0.4 million incentive for 2017 energy efficiency programs in accordance with NMPRC rules. This application was assigned Case No. 16-00185-UT. On February 22, 2017 , the NMPRC issued a final order approving the Company’s 2017 Energy Efficiency and Load Management Plan. The Company’s EUERF was approved and effective in customer bills beginning on March 1, 2017. NMPRC rules authorize continuation of the energy efficiency programs and incentive approved in Case No. 16-00185-UT through 2018. The Company recorded approved incentives in operating revenues of $0.3 million and $0.7 million in 2018 and 2017, respectively, related to its 2015 through 2017 Energy Efficiency and Load Management Plans. During the three months ended September 30, 2019, the Company recorded an incentive in operating revenues of $0.4 million related to its 2018 Energy Efficiency Programs. On July 2, 2018, the Company filed its required application with the NMPRC for approval of its 2019-2021 Energy Efficiency and Load Management Plan and EUERF. The application was assigned Case No. 18-00116-UT. On March 6, 2019, the NMPRC issued a final order approving: (i) the Company's 2019-2021 Energy Efficiency and Load Management Plan, with minor program modifications; (ii) the base incentive of 7.1% of program expenditures, or approximately $0.4 million annually for 2019-2021; and (iii) the continuation of the Company's EUERF. Community Solar . On April 24, 2018, the Company filed an application with the NMPRC to initiate a community solar program in New Mexico to include construction and ownership of a two -MW solar photovoltaic system located in Doña Ana County near the City of Las Cruces. Customer participation would have been on a voluntary basis, and customers would have contracted for a set capacity (kW) amount and would have received all energy produced by their subscribed capacity. The application was assigned Case No. 18-00099-UT and was dismissed without prejudice on October 31, 2018. The NMPRC set aside its October 31, 2018, order dismissing the application without prejudice, and on December 19, 2018, the NMPRC issued an Order Requiring El Paso Electric Company to Conduct Request for Proposals and to Amend Application; Order Extending Statutory Period and Appointing Hearing Examiner that would have required the Company to amend its initially-filed application on or before February 15, 2019. However, on January 10, 2019, the NMPRC with three new Commissioners reconsidered its December 19, 2018 order and dismissed the Community Solar application without prejudice. The case is now closed. Integrated Resource Plan ("IRP") . On September 17, 2018, the Company filed its IRP with the NMPRC for the period 2018-2037 ("2018 IRP") in Case No. 18-00293-UT as required by regulation and the Joint Stipulation in NMPRC Case No. 15-00241-UT, which was the Company's prior integrated resource plan filing. The triennial filing requires a public advisory process as part of the development of the plan to identify a cost-effective portfolio of resources. The filed plan is subject to written public comments filed with the NMPRC to which the Company responded on October 29, 2018. NMPRC Staff filed a written report on November 16, 2018, recommending that the NMPRC return the 2018 IRP to the Company with instructions for re-filing to correct 12 deficiencies identified by the NMPRC Staff report. On December 5, 2018, the NMPRC issued an Order Partially Accepting Integrated Resource Plan; Order Requiring Refiling for Deficiencies. Pursuant to that order, on January 3, 2019, the Company filed an amended 2018 IRP. On January 10, 2019, in light of a pending motion for reconsideration, the NMPRC ordered its Staff to provide additional information and respond to issues raised regarding the filed 2018 IRP. On March 15, 2019, NMPRC Staff filed the additional response and recommended that the Company correct one deficiency identified. On September 18, 2019, the NMPRC issued a variance from the IRP rule on commission review, acceptance and action, and closed the docket. Issuance of Long-Term Debt, Securities Financing, and Guarantee of Debt. On October 7, 2015, the Company received approval in NMPRC Case No. 15-00280-UT to guarantee the issuance of up to $65.0 million of long-term debt by the Rio Grande Resources Trust II ("RGRT") to finance future purchases of nuclear fuel and to refinance existing nuclear fuel debt obligations, which remains effective. Under this authorization, on June 28, 2018, the RGRT issued $65.0 million in aggregate principal amount of 4.07% Senior Guaranteed Notes due August 15, 2025. On October 4, 2017, the Company received additional approval in NMPRC Case No. 17-00217-UT to amend and extend the Company's Revolving Credit Facility ("RCF"), issue up to $350.0 million in long-term debt and to redeem and refinance the $63.5 million 2009 Series A 7.25% Pollution Control Bonds ("PCBs") and the $37.1 million 2009 Series B 7.25% PCBs. The NMPRC approval to issue $350.0 million in long-term debt supersedes its prior approval. Under this authorization, on June 28, 2018, the Company issued $125.0 million in aggregate principal amount of the Company's 4.22% Senior Notes due August 15, 2028. Additionally, on September 13, 2018, the Company and the Bank of New York Mellon Trust Company, N.A., as trustee of the RGRT, entered into a $350.0 million third amended and restated credit agreement. On January 30, 2019, the Company submitted an application with the NMPRC seeking approval to issue shares of common stock, including the reissuance of treasury shares, in an amount up to $200.0 million in one or more transactions. The application was assigned Case No. 19-00033-UT, and the NMPRC issued a final order approving the Company's request on March 27, 2019. On February 1, 2019 and April |
Palo Verde
Palo Verde | 9 Months Ended |
Sep. 30, 2019 | |
Palo Verde Generation Station | |
Property, Plant and Equipment [Line Items] | |
Palo Verde | Palo Verde Spent Fuel and Waste Disposal. Pursuant to the Nuclear Waste Policy Act of 1982, as amended in 1987, the U.S. Department of Energy ("DOE") is legally obligated to accept and dispose of all spent nuclear fuel and other high-level radioactive waste generated by all domestic power reactors by 1998. The DOE's obligations are reflected in a contract for Disposal of Spent Nuclear Fuel and/or High Level Radioactive Waste with each nuclear power plant. The DOE failed to begin accepting spent nuclear fuel by 1998. Pursuant to the terms of the August 18, 2014 settlement agreement, and as amended with the DOE, Arizona Public Service Company ("APS") files annual claims for the period July 1 of the then-previous year to June 30 of the then-current year on behalf of itself and those utilities that share in power and energy entitlements, and bear certain allocated costs, with respect to Palo Verde Generating Station ("Palo Verde") pursuant to the Arizona Nuclear Power Project Participation Agreement dated August 23, 1973, as amended ("ANPP Participation Agreement"). The settlement agreement, as amended, provides APS with a method for submitting claims and receiving recovery for costs incurred through December 31, 2016, which has been extended to December 31, 2019. On October 31, 2019, APS filed a $16.0 million claim for the period July 1, 2018 through June 30, 2019. The Company's share of this claim is approximately $2.5 million . This claim is pending DOE review. The majority of the reimbursement received by the Company is expected to be credited to customers through the applicable fuel adjustment clauses. Palo Verde Operations and Maintenance Expense . Included in "Operations and maintenance" in the Company's Statements of Operations are expenses associated with Palo Verde as follows (in thousands): 2019 2018 Three months ended September 30, $ 20,713 $ 20,277 Nine months ended September 30, 66,294 67,429 Twelve months ended September 30, 95,319 98,813 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2019 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock and Earnings Per Share Information | Common Stock Dividends. The Company paid $15.7 million and $14.6 million in quarterly cash dividends during the three months ended September 30, 2019 and 2018 , respectively. The Company paid a total of $46.0 million and $60.6 million in quarterly cash dividends during the nine and twelve months ended September 30, 2019, respectively. The Company paid a total of $42.9 million and $56.5 million in quarterly cash dividends during the nine and twelve months ended September 30, 2018, respectively. On October 17, 2019 the Board of Directors declared a quarterly cash dividend of $0.385 per share payable on December 27, 2019 to shareholders of record as of the close of business on December 13, 2019. Under the Merger Agreement, the Company may not declare or pay dividends or distributions on shares of common stock in an amount in excess of $0.385 per share for quarterly dividends declared before June 1, 2020 and $0.41 per share for quarterly dividends declared on or after June 1, 2020. See Part I, Item 1, Financial Statements, Note N of Notes to Financial Statements for further discussion. Basic and Diluted Earnings Per Share . The basic and diluted earnings per share are presented below (in thousands except for share data): Three Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,616,532 40,535,489 Dilutive effect of unvested performance awards 63,336 161,558 Diluted number of common shares outstanding 40,679,868 40,697,047 Basic net income per common share: Net income $ 77,880 $ 73,271 Income allocated to participating restricted stock (262 ) (272 ) Net income available to common shareholders $ 77,618 $ 72,999 Diluted net income per common share: Net income $ 77,880 $ 73,271 Income reallocated to participating restricted stock (261 ) (272 ) Net income available to common shareholders $ 77,619 $ 72,999 Basic net income per common share: Distributed earnings $ 0.385 $ 0.36 Undistributed earnings 1.525 1.44 Basic net income per common share $ 1.910 $ 1.80 Diluted net income per common share: Distributed earnings $ 0.385 $ 0.36 Undistributed earnings 1.525 1.43 Diluted net income per common share $ 1.910 $ 1.79 Nine Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,600,726 40,514,961 Dilutive effect of unvested performance awards 79,272 129,532 Diluted number of common shares outstanding 40,679,998 40,644,493 Basic net income per common share: Net income $ 110,095 $ 99,600 Income allocated to participating restricted stock (378 ) (366 ) Net income available to common shareholders $ 109,717 $ 99,234 Diluted net income per common share: Net income $ 110,095 $ 99,600 Income reallocated to participating restricted stock (378 ) (366 ) Net income available to common shareholders $ 109,717 $ 99,234 Basic net income per common share: Distributed earnings $ 1.13 $ 1.055 Undistributed earnings 1.57 1.395 Basic net income per common share $ 2.70 $ 2.450 Diluted net income per common share: Distributed earnings $ 1.13 $ 1.055 Undistributed earnings 1.57 1.385 Diluted net income per common share $ 2.70 $ 2.440 Twelve Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,585,513 40,494,482 Dilutive effect of unvested performance awards 83,581 136,276 Diluted number of common shares outstanding 40,669,094 40,630,758 Basic net income per common share: Net income $ 94,810 $ 106,100 Income allocated to participating restricted stock (321 ) (383 ) Net income available to common shareholders $ 94,489 $ 105,717 Diluted net income per common share: Net income $ 94,810 $ 106,100 Income reallocated to participating restricted stock (320 ) (383 ) Net income available to common shareholders $ 94,490 $ 105,717 Basic net income per common share: Distributed earnings $ 1.49 $ 1.39 Undistributed earnings 0.84 1.22 Basic net income per common share $ 2.33 $ 2.61 Diluted net income per common share: Distributed earnings $ 1.49 $ 1.39 Undistributed earnings 0.83 1.21 Diluted net income per common share $ 2.32 $ 2.60 The number of restricted stock awards and performance shares at 100% performance level excluded from the calculation of the diluted number of common shares outstanding because their effect was antidilutive is presented below: Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Restricted stock awards 54,568 74,278 54,483 67,288 53,232 66,238 Performance shares (a) — — 14,551 15,326 22,234 11,494 ________________________ (a) Certain performance shares were excluded from the computation of diluted earnings per share as no payouts would have been required based upon performance at the end of each corresponding period. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and in the states of Texas, New Mexico and Arizona. The Company is no longer subject to tax examination by the taxing authorities in the federal, Texas, Arizona and New Mexico jurisdictions for years prior to 2014 . For the three months ended September 30, 2019 and 2018, the Company’s effective tax rate was 23.0% and 23.7% , respectively. For the nine months ended September 30, 2019 and 2018, the Company's effective tax rate was 22.8% and 23.4% , respectively. For the twelve months ended September 30, 2019 and 2018, the Company's effective tax rate was 23.1% and 22.8% , respectively. The federal statutory tax rate is 21% in 2019 and 2018, and 35% in 2017. The Company's effective tax rate for all periods in 2019 and 2018 differ from the federal statutory tax rate due to state income taxes, capital gains in the decommissioning trusts which are taxed at the federal rate of 20% |
Commitments, Contingencies And
Commitments, Contingencies And Uncertainties | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies And Uncertainties | Commitments, Contingencies and Uncertainties For a full discussion of commitments and contingencies, see Part II, Item 8, Financial Statements and Supplementary Data, Note L of the Notes to Financial Statements in the 2018 Form 10-K. In addition, see Part I, Item 1, Financial Statements, Notes D and E of Notes to Financial Statements above and Part II, Item 8, Financial Statements and Supplementary Data, Notes D and F of the Notes to Financial Statements in the 2018 Form 10-K regarding matters related to wholesale power sales contracts and transmission contracts subject to regulation and Palo Verde, including decommissioning, spent nuclear fuel and waste disposal, and liability and insurance matters. Power Purchase and Sale Contracts To supplement its own generation and operating reserve requirements and to meet its RPS requirements, the Company engages in power purchase arrangements that may vary in duration and amount based on an evaluation of the Company's resource needs, the economics of the transactions and specific RPS requirements. In the fourth quarter of 2019, the Company anticipates filing for regulatory approval with the NMPRC for two power purchase agreements relating to both solar and battery storage resources as a result of the Company's 2017 All Source Request for Proposal for Electric Power Supply and Load Management Resources. For a discussion of power purchase and sale contracts that the Company has entered into with various counterparties, see Part II, Item 8, Financial Statements and Supplementary Data, Note L of the Notes to Financial Statements in the 2018 Form 10-K. Environmental Matters The Company is subject to extensive laws, regulations and permit requirements with respect to air and greenhouse gas emissions, water discharges, soil and water quality, waste management and disposal, natural resources and other environmental matters by federal, state, regional, tribal and local authorities. Failure to comply with such laws, regulations and requirements can result in actions by authorities or other third parties that might seek to impose on the Company administrative, civil and/or criminal penalties or other sanctions. In addition, releases of pollutants or contaminants into the environment can result in costly cleanup liabilities. These laws, regulations and requirements are subject to change through modification or reinterpretation, or the introduction of new laws and regulations and, as a result, the Company may face additional capital and operating costs to comply. Union Matters The Company employs approximately 1,100 individuals, 37% of which are covered by a collective bargaining agreement. The International Brotherhood of Electrical Workers Local 960 ("Local 960") represents the Company’s employees working primarily in power generation, transmission and distribution, communications, material services, fleet services, facilities services, customer services and meter reading, and field services. On October 15, 2019, the Company reached agreement on the terms of a new collective bargaining agreement with Local 960, to be effective September 3, 2019, for a four-year term ending September 3, 2023. The agreement provides for pay increases for bargaining unit employees of 3.25% on September 3, 2019, 3.00% on September 3, 2020, 3.00% on September 3, 2021, and 3.20% on September 3, 2022. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases The Company’s lease population is composed of operating leases. The Company leases land in El Paso, Texas, adjacent to Newman under a lease that expires in June 2033 with a renewal option of 25 years . The Company also has several other leases for offices, parking facilities and equipment that expire within the next 5 years . The Company has transmission and distribution lines that are operated under various land rights agreements, including easements, leases, permits and franchises. The components of lease expense are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease cost (in thousands): Operating lease cost $ 253 $ 759 Short-term lease cost 153 616 Variable lease cost 9 57 Total lease cost $ 415 $ 1,432 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): September 30, 2019 Operating leases: Operating lease ROU assets (included in electric plant in service) $ 5,889 Operating lease liabilities (current included in other current liabilities) 527 Operating lease liabilities (net of current included in deferred credits and other liabilities) 5,275 Total lease liabilities $ 5,802 Weighted average remaining lease terms (in years) 12.03 Weighted average discount rate 4.65 % Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 103 $ 786 ROU assets obtained in exchange for lease obligations (in thousands): Nine Months Ended September 30, 2019 Operating leases $ 5,889 Maturities of operating lease liabilities at September 30, 2019 were as follows (in thousands): Year ending December 31, 2019 $ 86 2020 770 2021 696 2022 639 2023 590 Thereafter 4,829 Total lease payments 7,610 Less imputed interest (1,808 ) Total $ 5,802 Disclosures related to periods prior to adoption of the new lease standard The Company’s total rental expense related to operating leases was $1.7 million and $2.4 million for the twelve months ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company’s minimum future rental payments for the next five years were as follows (in thousands): Year ending December 31, 2019 $ 923 2020 820 2021 700 2022 544 2023 526 |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Litigation Matters Disclosure | Litigation The Company is involved in various legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. In many of these matters, the Company has excess casualty liability insurance that covers the various claims, actions and complaints. The Company regularly analyzes current information and, as necessary, makes provisions in its financial statements for probable liabilities for the eventual disposition of these matters. While the outcome of these matters cannot be predicted with certainty, based upon a review of the matters and applicable insurance coverage, the Company believes that none of these matters will have a material adverse effect on the financial position, results of operations or cash flows of the Company. The Company expenses legal costs, including expenses related to loss contingencies, as they are incurred. See Part I, Item 1, Financial Statements, Notes D and H of Notes to Financial Statements above and Part II, Item 8, Financial Statements and Supplementary Data, Notes D and L of the Notes to Financial Statements in the 2018 Form 10-K for discussion of the effects of government legislation and regulation on the Company. Litigation Related to the Merger . As of November 7, 2019, three purported Company shareholders have filed lawsuits under the federal securities laws, two in the U.S. District Court for the Southern District of New York and one in the U.S. District Court for the District of Delaware, challenging the adequacy of the disclosures made in the Company’s preliminary proxy statement in connection with the Merger. These cases are captioned Stein v. El Paso Electric Company., et al., Case No. 1:19-cv-06703 (the “ Stein Action”), Rosenblatt v. El Paso Electric Company., et al., Case No. 1:19-cv-01367-UNA (the “ Rosenblatt Action”), and Gorski v. El Paso Electric Company., et . al., Case No. 1:19-cv-07211 (the “ Gorski Action”), respectively. The Stein Action, filed on July 18, 2019, the Rosenblatt Action, filed on July 23, 2019, and the Gorski Action, filed on August 1, 2019, are asserted on behalf of putative classes of Company shareholders. All three actions allege violations of Sections 14(a) and 20(a) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") and Rule 14a-9 promulgated thereunder based on various alleged omissions of material information from the preliminary proxy statement. The Stein Action names as defendants the Company and each of our directors, individually, and seeks to enjoin the Merger (or, in the alternative, rescission or an award of rescissory damages in the event the Merger is completed), damages, and an award of costs and attorneys’ and expert fees. The Rosenblatt Action names as defendants the Company and each of our directors, individually, and seeks to enjoin the Merger (or, in the alternative, rescission or an award of rescissory damages in the event the Merger is completed), to compel our directors to issue a revised proxy statement, a declaration that the defendants violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, and an award of costs and attorneys’ and expert fees. The Gorski Action also names as defendants the Company and each of our directors, individually, and seeks to enjoin the Merger (or, in the alternative, rescission or an award of rescissory damages in the event the Merger is completed), to compel our directors to issue a revised proxy statement, a declaration that the defendants violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, and an award of costs and attorneys’ and expert fees. The Company believes that these complaints are without merit, and while the Company believes that the disclosures set forth in the proxy statement complied fully with applicable law, to moot plaintiffs’ disclosure claims, to avoid nuisance, potential expense and delay, and to provide additional information to the Company’s shareholders, the Company voluntarily supplemented the proxy statement with additional disclosure in a Current Report on Form 8-K filed by the Company with the SEC on September 9, 2019. While the outcome of these matters cannot be predicted with certainty, based upon a review of the matters and applicable insurance coverage, the Company believes that none of these matters will have a material adverse effect on the financial position, results of operations or cash flows of the Company. The Company expenses legal costs, including expenses related to loss contingencies, as they are incurred. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefits | Employee Benefits The expected return on plan assets is included in "Investment and interest income, net" in the Company's Statements of Operations. The amortization of prior service benefit and amortization of gains are included in "Miscellaneous non-operating income". The amortization of prior service cost and amortization of losses are included in "Miscellaneous non-operating deductions". The interest cost component of net periodic benefit cost is included in "Other interest". Retirement Plans The net periodic benefit cost recognized for the three, nine and twelve months ended September 30, 2019 and 2018 , is made up of the components listed below as determined using the projected unit credit actuarial cost method (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 2,476 $ 2,801 $ 7,429 $ 8,316 $ 10,201 $ 10,446 Interest cost 3,614 3,214 10,841 9,659 14,060 12,924 Expected return on plan assets (5,373 ) (5,176 ) (16,119 ) (15,806 ) (21,389 ) (20,603 ) Amortization of: Net loss 1,449 2,214 4,345 6,414 6,484 8,527 Prior service benefit (877 ) (875 ) (2,630 ) (2,630 ) (3,506 ) (3,506 ) Net periodic benefit cost $ 1,289 $ 2,178 $ 3,866 $ 5,953 $ 5,850 $ 7,788 During the nine months ended September 30, 2019 , the Company contributed $8.8 million of its projected $9.5 million 2019 annual contribution to its retirement plans. Other Postretirement Benefits The net periodic benefit recognized for the three, nine and twelve months ended September 30, 2019 and 2018 , is made up of the components listed below (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Components of net periodic benefit: Service cost $ 606 $ 696 $ 1,817 $ 2,096 $ 2,516 $ 2,655 Interest cost 614 559 1,842 1,689 2,405 2,370 Expected return on plan assets (530 ) (602 ) (1,590 ) (1,827 ) (2,198 ) (2,304 ) Amortization of: Prior service benefit (1,308 ) (1,538 ) (3,925 ) (4,613 ) (5,463 ) (6,151 ) Net gain (595 ) (574 ) (1,783 ) (1,624 ) (2,325 ) (2,044 ) Net periodic benefit $ (1,213 ) $ (1,459 ) $ (3,639 ) $ (4,279 ) $ (5,065 ) $ (5,474 ) During the nine months ended September 30, 2019 , the Company contributed $0.5 million of its projected $0.6 million 2019 annual contribution to its other postretirement benefits plan. |
Financial Instruments And Inves
Financial Instruments And Investments (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Investments | Financial Instruments and Investments The FASB guidance requires the Company to disclose estimated fair values for its financial instruments. The Company has determined that cash and temporary investments, investment in debt securities, accounts receivable, decommissioning trust funds, long-term debt, short-term borrowings under the RCF, accounts payable and customer deposits meet the definition of financial instruments. The carrying amounts of cash and temporary investments, accounts receivable, accounts payable and customer deposits approximate fair value because of the short maturity of these items. Investments in debt securities and decommissioning trust funds are carried at estimated fair value. Long-Term Debt and Short-Term Borrowings Under the RCF. The fair values of the Company's long-term debt and short-term borrowings under the RCF are based on estimated market prices for similar issues and are presented below (in thousands): September 30, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Pollution Control Bonds (1) $ 157,947 $ 167,977 $ 157,769 $ 161,917 Senior Notes 1,118,255 1,393,650 1,117,943 1,244,310 RGRT Senior Notes (2) 109,589 114,925 109,507 111,440 RCF (2) 99,826 99,826 49,207 49,207 Total $ 1,485,617 $ 1,776,378 $ 1,434,426 $ 1,566,874 _______________ (1) On February 1, 2019 and April 1, 2019, the Company purchased in lieu of redemption the 2009 Series A 7.25% PCBs with an aggregate principal amount of $63.5 million and the 2009 Series B 7.25% PCBs with an aggregate principal amount of $37.1 million , respectively, utilizing funds borrowed under the RCF. On May 22, 2019, the Company reoffered and sold $63.5 million aggregate principal amount of 2009 Series A 7.25% PCBs and $37.1 million aggregate principal amount of 2009 Series B 7.25% PCBs with a fixed interest rate of 3.60% per annum until the bonds mature on February 1, 2040 and April 1, 2040, respectively. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. (2) Nuclear fuel financing, as of September 30, 2019 and December 31, 2018, is funded through $110 million RGRT Senior Notes and $22.8 million and $26.2 million , respectively, under the RCF. As of September 30, 2019, $77.0 million was outstanding under the RCF for working capital and general corporate purposes. As of December 31, 2018, $23.0 million , was outstanding under the RCF for working capital or general corporate purposes. The interest rate on the Company's borrowings under the RCF is reset throughout the quarter reflecting c urrent market rates. Consequently, the carrying value approximates fair value . See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. Marketable Securities. The Company's marketable securities, included in decommissioning trust funds in the balance sheets, are reported at fair value which was $311.7 million and $276.9 million at September 30, 2019 and December 31, 2018, respectively. The investments in the Company's Palo Verde nuclear decommissioning trust funds ("NDT") are classified as equity securities and temporary cash and cash equivalents restricted solely for investment in the NDT. These investments are recorded at their estimated fair value in accordance with FASB guidance for certain investments in equity securities. On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall, which eliminates the requirements to classify investments in equity securities with readily determinable fair values as trading or available for sale and requires entities to recognize changes in fair value for these securities in net income as reported in the Statements of Operations. ASU 2016-01 requires a modified-retrospective approach and therefore, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. During September 2019, the Company sold all of the fixed income securities classified as available for sale held in the NDT which approximated 450 individual securities. The proceeds were reinvested in three exchange traded funds that hold similar securities. The exchange traded funds meet the definition of equity securities with readily determinable fair values and therefore are not classified as available for sale as of September 30, 2019. Furthermore, changes in the fair value of these exchange traded funds will be recorded in net income as reported in the Statement of Operations, as required by ASU 2016-01. Prior to September 30, 2019, the reported fair values included gross unrealized losses on securities classified as available for sale whose impairment the Company had deemed to be temporary. The table below presents the gross unrealized losses and the fair value of these securities as of December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Description of Securities (1) : Federal Agency Mortgage Backed Securities $ 6,187 $ (36 ) $ 14,567 $ (510 ) $ 20,754 $ (546 ) U.S. Government Bonds 4,005 (9 ) 36,615 (1,663 ) 40,620 (1,672 ) Municipal Debt Obligations 3,100 (74 ) 9,037 (723 ) 12,137 (797 ) Corporate Debt Obligations 22,259 (763 ) 11,231 (731 ) 33,490 (1,494 ) Total $ 35,551 $ (882 ) $ 71,450 $ (3,627 ) $ 107,001 $ (4,509 ) _________________ (1) Includes 156 securities. Prior to the sale of all the Company's fixed income securities classified as available for sale, the Company monitored the length of time such securities traded below their cost basis along with the amount and percentage of the unrealized loss in determining if a decline in fair value below recorded cost was considered to be other than temporary. In accordance with the FASB guidance, such impairment losses were recognized in net income, and a lower cost basis was established for these securities. For the three, nine and twelve months ended September 30, 2019 and 2018, the Company did not recognize any other than temporary impairment losses on its available for sale securities. Investments categorized as available for sale securities also included gross unrealized gains which had not been recognized in the Company's net income prior to September 30, 2019. The table below presents the unrecognized gross unrealized gains and the fair value of these securities, aggregated by investment category as of December 31, 2018 (in thousands): December 31, 2018 Fair Value Unrealized Gains Description of Securities: Federal Agency Mortgage Backed Securities $ 9,959 $ 176 U.S. Government Bonds 6,987 149 Municipal Debt Obligations 1,952 120 Corporate Debt Obligations 8,283 222 Total Debt Securities $ 27,181 $ 667 The Company's available for sale securities in the NDT were sold from time to time and the Company used the specific identification basis to determine the amount to reclassify from AOCI into net income. The proceeds from the sale of these securities during the three, nine and twelve months ended September 30, 2019 and 2018, and the related effects on pre-tax income are as follows (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Proceeds from sales or maturities of available for sale securities $ 145,290 $ 7,451 $ 168,177 $ 21,816 $ 172,316 $ 42,355 Gross realized gains included in pre-tax income $ 4,702 $ — $ 4,815 $ 9 $ 4,823 $ 2,076 Gross realized losses included in pre-tax income (1,500 ) (443 ) (2,583 ) (1,117 ) (2,928 ) (1,680 ) Net gains (losses) included in pre-tax income $ 3,202 $ (443 ) $ 2,232 $ (1,108 ) $ 1,895 $ 396 Upon the adoption of ASU 2016-01, Financial Instruments - Overall, on January 1, 2018, the Company records, on a modified-retrospective basis, changes in fair market value for equity securities held in the NDT in the Statements of Operations. The unrealized gains and losses recognized during the three and nine months ended September 30, 2019 and 2018 , and related effects on pre-tax income are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net gains recognized on equity securities $ 1,010 $ 9,533 $ 23,195 $ 10,791 Less: Net gains recognized on equity securities sold 136 3,005 422 7,061 Unrealized gains recognized on equity securities still held at reporting date $ 874 $ 6,528 $ 22,773 $ 3,730 Fair Value Measurements. The FASB guidance requires the Company to provide expanded quantitative disclosures for financial assets and liabilities recorded on the balance sheet at fair value. Financial assets carried at fair value include the Company's decommissioning trust investments and investments in debt securities which are included in deferred charges and other assets on the Balance Sheets. The Company has no liabilities that are measured at fair value on a recurring basis. The FASB guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: • Level 1 – Observable inputs that reflect quoted market prices for identical assets and liabilities in active markets. Financial assets utilizing Level 1 inputs include the NDT investments in active exchange-traded equity securities, mutual funds and U.S. Treasury securities that are in a highly liquid and active market. The Institutional Funds - International Equity investments are valued using the Net Asset Value ("NAV") provided by the administrator of the fund. The NAV price is quoted on a restrictive market although the underlying investments are traded on active markets. The NAV used for determining the fair value of the Institutional Funds-International Equity investments have readily determinable fair values. Accordingly, such fund values are categorized as Level 1. • Level 2 – Inputs other than quoted market prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Financial assets utilizing Level 2 inputs included the NDT investments in fixed income securities that were sold by the Company on September 30, 2019, and reinvested in similar fixed income securities held in three exchange traded funds. The fair value of these financial instruments is based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences. • Level 3 – Unobservable inputs using data that is not corroborated by market data and primarily based on internal Company analysis using models and various other analysis. Financial assets utilizing Level 3 inputs are the Company's investment in debt securities. The securities in the NDT are valued using prices and other relevant information generated by market transactions involving identical or comparable securities. The FASB guidance identifies this valuation technique as the "market approach" with observable inputs. Prior to the sale of all the Company's fixed income securities classified as available for sale in September 2019, the Company analyzed available for sale securities to determine if losses were other than temporary. The fair value of the NDT and investments in debt securities at September 30, 2019 and December 31, 2018, and the level within the three levels of the fair value hierarchy defined by the FASB guidance are presented in the table below (in thousands): Description of Securities Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Securities: Investments in Debt Securities $ 1,595 $ — $ — $ 1,595 Equity Securities: Domestic (1) $ 274,517 $ 274,517 $ — $ — International 27,104 27,104 — — Total Equity Securities 301,621 301,621 — — Cash and Cash Equivalents 10,121 10,121 — — Total $ 311,742 $ 311,742 $ — $ — _________________ (1) Includes $140.9 million held in three exchange traded funds with underlying investments in debt securities. The exchange traded funds were purchased in September 2019, and meet the definition of equity securities with readily determinable fair values. Description of Securities Fair Value as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Securities: Investments in Debt Securities $ 1,656 $ — $ — $ 1,656 Equity Securities: Domestic $ 111,325 $ 111,325 $ — $ — International 24,540 24,540 — — Total Equity Securities 135,865 135,865 — — Available for Sale Debt Securities: Federal Agency Mortgage Backed Securities 30,713 — 30,713 — U.S. Government Bonds 47,607 47,607 — — Municipal Debt Obligations 14,089 — 14,089 — Corporate Debt Obligations 41,773 — 41,773 — Total Available for Sale Debt Securities 134,182 47,607 86,575 — Cash and Cash Equivalents 6,858 6,858 — — Total $ 276,905 $ 190,330 $ 86,575 $ — There were no transfers in or out of Level 1 and Level 2 fair value measurements categories due to changes in observable inputs during the three, nine and twelve months ended September 30, 2019 and 2018. There were no purchases, sales, issuances and settlements related to the assets in the Level 3 fair value measurement category during the three, nine and twelve months ended September 30, 2019 and 2018. |
Long-Term Debt and Financing Ob
Long-Term Debt and Financing Obligations (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt and Financing Obligations Pollution Control Bonds. The Company had three series of tax-exempt unsecured PCBs in aggregate principal amount of $159.8 million as of December 31, 2018. The 2009 Series A 7.25% PCBs and the 2009 Series B 7.25% PCBs with an aggregate principal amount, together, of $100.6 million had optional redemptions beginning in February 2019 and April 2019, respectively. The Company purchased in lieu of redemption all of the 2009 Series A 7.25% PCBs with an aggregate principal amount of $63.5 million , and all of the 2009 Series B 7.25% PCBs with an aggregate principal amount of $37.1 million , on February 1, 2019 and April 1, 2019, respectively, utilizing funds borrowed under the RCF. On May 22, 2019, the Company reoffered and sold $63.5 million aggregate principal amount of 2009 Series A 7.25% PCBs and $37.1 million aggregate principal amount of 2009 Series B 7.25% PCBs with a fixed interest rate of 3.60% per annum until the bonds mature on February 1, 2040 and April 1, 2040, respectively. The bonds are subject to optional redemption at a redemption price of par on or after June 1, 2029. Proceeds from the remarketing were primarily used to repay outstanding short-term borrowings under the RCF. Revolving Credit Facility. The Company has a $350 million RCF for working capital and general corporate purposes and financing nuclear fuel through the RGRT with a term ending on September 13, 2023. The Merger would constitute a "Change in Control" under the RCF and the consummation of the Merger would result in an event of default under the RCF. On and subject to the terms and conditions of the Merger Agreement, the Company requested that the lenders under the RCF consent to the Merger and waive any default or event of default that would occur as a result of the Merger. On August 9, 2019, the lenders agreed to such consent and waiver. Under the Merger Agreement, subject to certain exceptions, the Company cannot incur additional indebtedness over $200 million |
Agreement and Plan of Merger
Agreement and Plan of Merger | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Agreement and Plan of Merger | Agreement and Plan of Merger On June 1, 2019, the Company entered into the Merger Agreement, by and among the Company, Parent, and Merger Sub. Pursuant to the Merger Agreement, on and subject to the terms and conditions set forth therein, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation in the Merger and becoming a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of IIF. On and subject to the terms and conditions set forth in the Merger Agreement, upon the closing of the Merger, each share of common stock of the Company shall be cancelled and converted into the right to receive $68.25 in cash, without interest (the "Merger Consideration"). The Company, Parent and Merger Sub each have made various representations, warranties and covenants in the Merger Agreement. Among other things, the Company has agreed, subject to certain exceptions, to conduct its business in the ordinary course, consistent with past practice, from the date of the Merger Agreement until the closing of the Merger, and not to take certain actions prior to the closing of the Merger without the prior written consent of Parent (which consent shall not be unreasonably withheld, conditioned or delayed). The Company has made certain additional customary covenants, including, subject to certain exceptions: (1) to cause a meeting of the Company’s shareholders to be held to consider approval of the Merger Agreement, (2) not to solicit proposals relating to alternative business combination transactions and not to participate in discussions concerning, or furnish information in connection with, alternative business combination transactions and (3) not to withdraw its recommendation to the Company’s shareholders regarding the Merger. In addition, subject to the terms of the Merger Agreement, the Company, Parent and Merger Sub are required to use reasonable best efforts to obtain all required regulatory approvals, which will include clearance under federal antitrust laws and certain approvals by federal and state regulatory bodies, subject to certain exceptions, including that such efforts not result in a Burdensome Condition (as defined in the Merger Agreement). Parent has obtained equity and debt financing commitments for the transactions contemplated by the Merger Agreement, the aggregate proceeds of which will be sufficient to consummate the Merger and the other transactions contemplated by the Merger Agreement, including payment of the aggregate Merger Consideration. Consummation of the Merger is subject to various conditions, including: (1) approval of the shareholders of the Company, (2) expiration or termination of the applicable HSR Act waiting period, (3) receipt of all required regulatory and statutory approvals without the imposition of a Burdensome Condition, (4) absence of any law or order prohibiting the consummation of the Merger and (5) other customary closing conditions, including (a) subject to materiality qualifiers, the accuracy of each party's representations and warranties, (b) each party's compliance in all material respects with its obligations and covenants under the Merger Agreement and (c) the absence of a material adverse effect with respect to the Company. The Merger Agreement contains certain termination rights for both the Company and Parent, including if the Merger is not consummated by June 1, 2020 (subject to extension for an additional three months if all of the conditions to closing, other than the conditions related to obtaining regulatory approvals, have been satisfied). The Merger Agreement also provides for certain termination rights for each of the Company and Parent, and provides that, upon termination of the Merger Agreement under certain specified circumstances, Parent would be required to pay a termination fee of $170 million to the Company, and under other specified circumstances, the Company would be required to pay Parent a termination fee of $85 million . On August 2, 2019, the Company filed a definitive proxy statement with the SEC in connection with the Merger. As of November 7, 2019, three purported Company shareholders have filed lawsuits alleging violations under the federal securities laws, two in the U.S. District Court for the Southern District of New York and one in the U.S. District Court for the District of Delaware, challenging the adequacy of the disclosures made in the Company's proxy statement in connection with the Merger as discussed in Part I, Item 1, Financial Statements, Note J of Notes to Financial Statements. On August 13, 2019, the Company, Parent and IIF US Holdings 2 LP, an affiliate of IIF, as applicable, filed (1) the joint report and application for regulatory approvals with the PUCT requesting approval of the Merger pursuant to the PURA, (2) the joint application for regulatory approvals with the NMPRC requesting approval of the Merger pursuant to the NMPUA and NMPRC Rule 450, (3) the joint application requesting approval of the Merger with the FERC under Section 203 of the Federal Power Act and (4) the joint application for regulatory approval for the indirect transfer of the Company’s NRC licenses to Parent from the NRC under the Atomic Energy Act of 1954. In addition, on August 13, 2019, the Company and Parent sought the authorization of the FCC to assign or transfer control of the Company’s FCC licenses. On August 16, 2019, the Company and Parent filed the notification and report form with the Antitrust Division of the Department of Justice and the FTC under the HSR Act. On September 3, 2019, the Company and Parent received notice from the FTC granting early termination of the waiting period under the HSR Act. Under the Merger Agreement, the consent to the Merger by the City of El Paso under its franchise agreement with the Company is a condition to the closing of the Merger. Under the franchise agreement, if the City of El Paso does not grant its consent to the Merger, the franchise agreement would terminate upon the closing of the Merger. On September 20, 2019, the Company submitted the franchise agreement assignment application to the City of El Paso. At a special meeting of the Company's shareholders held on September 19, 2019, the Company’s shareholders approved the Merger Agreement and the transactions contemplated thereby, including the Merger, and the compensation that will or may become payable by the Company to its named executive officers in connection with the Merger. Subject to receipt of remaining approvals and satisfaction of the other closing conditions, the Company anticipates that the closing of the Merger will occur in the first half of 2020. For more information regarding the terms of the Merger, including a copy of the Merger Agreement, see the Company's Current Report on Form 8-K filed with the SEC on June 3, 2019, and its definitive proxy statement relating to the special meeting of shareholders filed with the SEC on August 2, 2019. |
Principles Of Preparation (Poli
Principles Of Preparation (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy | Use of Estimates . 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 and 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. The Company evaluates its estimates on an on-going basis, including those related to depreciation, unbilled revenue, income taxes, fuel costs, pension and other post-retirement obligations and asset retirement obligations. Actual results could differ from those estimates. |
Revenue Recognition, Policy | Operating Revenues . The Company accrues revenues for services rendered, including unbilled electric service revenues. The Company recognizes revenue associated with contracts with customers when performance obligations under the terms of the contract with the customer are satisfied. Revenue is measured as the amount of consideration the Company receives in exchange for transferring goods or providing services to the customer. Taxes collected concurrently with revenue producing activities are excluded from revenue. Unbilled revenues are recorded for estimated amounts of energy delivered in the period following the customer's last billing cycle to the end of the reporting period. Unbilled revenues are estimated based on monthly generation volumes and by applying an average revenue/kilowatt-hour ("kWh") to the number of estimated kWhs delivered but not billed. Accounts receivable included accrued unbilled revenues of $33.3 million at September 30, 2019 and $21.6 million at December 31, 2018 . The Company’s Texas retail customers are billed under base rates and a fixed fuel factor approved by the Public Utility Commission of Texas ("PUCT"). The Company’s New Mexico retail customers are billed under base rates and a fuel adjustment clause that is adjusted monthly, as approved by the New Mexico Public Regulation Commission ("NMPRC"). The Company's Federal Energy Regulatory Commission ("FERC") sales for resale customers are billed under formula base rates and fuel factors and a fuel adjustment clause that is adjusted monthly. The Company’s recovery of fuel and purchased power expenses is subject to periodic reconciliations of actual fuel and purchased power expenses incurred to actual fuel revenues collected. The difference between fuel and purchased power expenses incurred and fuel revenues charged to customers is reflected as over/under-collection of fuel revenues, which is included in regulatory liabilities/assets - current in the balance sheets. See Part I, Item 1, Financial Statements, Note D of Notes to Financial Statements for further discussion. |
Leases, Policy | Leases. The Company determines if an arrangement contains a lease and the classification of that lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the minimum lease payments over the lease term. In determining lease terms, the Company considers any options to extend or terminate the lease that are reasonably certain of being exercised. As the Company’s leases do not include an implicit rate, the Company uses an estimated incremental borrowing rate, at lease commencement, to determine the present value of the future lease payments. In calculating the incremental borrowing rate, the Company takes into consideration recent debt issuances and other data for instruments with similar characteristics. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. For leases with lease and non-lease components, the Company has elected to account for the consideration as a single lease component. The Company has also elected not to record leases with a term of 12 months or less on the balance sheets. The operating lease ROU assets are included as part of electric plant in service and lease liabilities are included as part of current and non-current liabilities in the Company’s balance sheets. |
Depreciation, Depletion, and Amortization, Policy | Depreciation. The Company routinely evaluates the depreciable service lives, cost of removal and salvage values of its property, plant and equipment. Depreciation is provided on a straight-line basis over the estimated remaining lives of the assets (ranging in average from 5 to 48 |
New Accounting Standards, Policy | New Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring qualitative and quantitative disclosures on leasing agreements. ASU 2016-02 maintains a distinction between finance leases and operating leases similar to the distinction under previous lease guidance for capital leases and operating leases. Effective January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective method, applying the transition provisions to the beginning of the period of adoption rather than to the earliest comparative period presented, which continues to be reported in accordance with previous lease guidance, Accounting Standards Codification Topic 840. The Company adopted the package of practical expedients, which does not require the Company to reassess: (i) whether an arrangement contained a lease, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases. The Company also adopted the practical expedient related to land easements, which allowed carry forward accounting treatment for existing land easements. The most significant impact of adopting ASU 2016-02, as of January 1, 2019, was the recording of approximately $6.3 million of operating lease liabilities and related ROU assets with no cumulative effect adjustment to retained earnings. The Company anticipates the ongoing impact of the new standard to be immaterial to net income and cash flows. See Part I, Item 1, Financial Statements, Note I of Notes to Financial Statements for further discussion. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), as a result of concerns raised due to the federal law commonly referred to as the Tax Cuts and Jobs Act of 2017 ("TCJA"). More specifically, because the remeasurement of deferred taxes due to the change in the federal corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income ("AOCI") (referred to as stranded tax effects) do not reflect the appropriate tax rate. ASU 2018-02 allows companies an election to reclassify stranded taxes from AOCI to retained earnings. The amount of the reclassification would be the difference between the historical federal corporate income tax rate of 35% and the newly enacted 21% federal corporate income tax rate, which approximates $7.2 million . The provisions of ASU 2018-02 are effective for fiscal years and interim periods within that reporting period beginning after December 15, 2018. The Company adopted ASU 2018-02 on January 1, 2019, and has elected to not reclassify stranded taxes from AOCI to retained earnings. New Accounting Standards to be Adopted in the Future In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 changes how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are in the scope of the standard. ASU 2016-13 will be required for reporting periods beginning after December 15, 2019. ASU 2016-13 will be applied in a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is implemented. The Company is currently in the process of evaluating the impact of the new standard, which includes continuing to monitor activities of the FASB, including the impact of ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. |
Principles Of Preparation (Tabl
Principles Of Preparation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Disclosures (in thousands) Nine Months Ended September 30, 2019 2018 Cash paid for: Interest on long-term debt and borrowings under the revolving credit facility $ 47,871 $ 47,479 Income tax paid, net 2,567 2,480 Non-cash investing and financing activities: Changes in accrued plant additions 1,721 9,347 Grants of restricted shares of common stock 1,393 1,030 Issuance of performance shares 2,143 1,499 Non-cash operating activities: Operating lease liabilities arising from obtaining ROU assets 5,889 — |
Revenues (Table)
Revenues (Table) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following table disaggregates revenue from contracts with customers, for the three, nine and twelve months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2019 2018 2019 2018 2019 2018 Retail $ 268,375 $ 265,971 $ 584,160 $ 633,578 $ 740,258 $ 807,626 Wholesale 18,900 28,253 68,530 63,354 95,849 79,456 Wheeling (transmission) 5,883 5,145 16,739 13,578 22,187 17,981 Total revenues from contracts with customers 293,158 299,369 669,429 710,510 858,294 905,063 Other 1,295 902 2,462 2,270 4,420 3,866 Total operating revenues $ 294,453 $ 300,271 $ 671,891 $ 712,780 $ 862,714 $ 908,929 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Upon adoption of ASU 2016-01, Financial Instruments - Overall, the Company recorded, on January 1, 2018, a cumulative effect adjustment, net of income taxes, to increase retained earnings by $41.0 million with an offset to AOCI. Changes in Accumulated Other Comprehensive Income (Loss) (net of tax) by component are presented below (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (27,024 ) $ 2,033 $ (10,702 ) $ (35,693 ) $ (19,124 ) $ (3,478 ) $ (11,144 ) $ (33,746 ) Other comprehensive income before reclassifications — 454 — 454 — (764 ) — (764 ) Amounts reclassified from accumulated other comprehensive income (loss) (1,030 ) (2,487 ) 120 (3,397 ) (599 ) 364 112 (123 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Marketable Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (24,923 ) $ (2,942 ) $ (10,919 ) $ (38,784 ) $ (17,790 ) $ 40,190 $ (11,342 ) $ 11,058 Cumulative effect adjustment — — — — — (41,028 ) — (41,028 ) Other comprehensive income before reclassifications — 4,656 — 4,656 — (3,923 ) — (3,923 ) Amounts reclassified from accumulated other comprehensive income (loss) (3,131 ) (1,714 ) 337 (4,508 ) (1,933 ) 883 310 (740 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) Twelve Months Ended September 30, 2019 Twelve Months Ended September 30, 2018 Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Debt Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Unrecognized Pension and Post-retirement Benefit Costs Net Unrealized Gains (Losses) on Marketable Securities Net Losses on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at beginning of period as previously reported $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) $ (25,372 ) $ 35,651 $ (11,429 ) $ (1,150 ) Cumulative effect adjustment — — — — — (41,028 ) — (41,028 ) Other comprehensive income before reclassifications (4,589 ) 5,339 — 750 7,951 1,837 — 9,788 Amounts reclassified from accumulated other comprehensive income (loss) (3,742 ) (1,461 ) 450 (4,753 ) (2,302 ) (338 ) 397 (2,243 ) Balance at end of period $ (28,054 ) $ — $ (10,582 ) $ (38,636 ) $ (19,723 ) $ (3,878 ) $ (11,032 ) $ (34,633 ) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from Accumulated Other Comprehensive Income (Loss) for the three, nine and twelve months ended September 30, 2019 and 2018 are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, Affected Line Item in the Statements of Operations 2019 2018 2019 2018 2019 2018 Amortization of pension and post-retirement benefit costs: Prior service benefit $ 2,185 $ 2,413 $ 6,555 $ 7,243 $ 8,969 $ 9,657 Miscellaneous non-operating income Net loss (854 ) (1,640 ) (2,562 ) (4,790 ) (4,159 ) (6,483 ) Miscellaneous non-operating deductions 1,331 773 3,993 2,453 4,810 3,174 Income (loss) before income taxes Income tax effect (301 ) (174 ) (862 ) (520 ) (1,068 ) (872 ) Income tax (benefit) expense 1,030 599 3,131 1,933 3,742 2,302 Net income (loss) Marketable securities: Net realized gain (loss) on sale of securities 3,202 (443 ) 2,232 (1,108 ) 1,895 396 Investment and interest income, net 3,202 (443 ) 2,232 (1,108 ) 1,895 396 Income (loss) before income taxes Income tax effect (715 ) 79 (518 ) 225 (434 ) (58 ) Income tax (benefit) expense 2,487 (364 ) 1,714 (883 ) 1,461 338 Net income (loss) Loss on cash flow hedge: Amortization of loss (153 ) (144 ) (451 ) (423 ) (596 ) (559 ) Interest on long-term debt and revolving credit facility (153 ) (144 ) (451 ) (423 ) (596 ) (559 ) Income (loss) before income taxes Income tax effect 33 32 114 113 146 162 Income tax (benefit) expense (120 ) (112 ) (337 ) (310 ) (450 ) (397 ) Net income (loss) Total reclassifications $ 3,397 $ 123 $ 4,508 $ 740 $ 4,753 $ 2,243 |
Palo Verde (Tables)
Palo Verde (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Palo Verde Generation Station | |
Jointly Owned Utility Plant Interests [Line Items] | |
Palo Verde Operations and Maintenance Expense | Palo Verde Operations and Maintenance Expense . Included in "Operations and maintenance" in the Company's Statements of Operations are expenses associated with Palo Verde as follows (in thousands): 2019 2018 Three months ended September 30, $ 20,713 $ 20,277 Nine months ended September 30, 66,294 67,429 Twelve months ended September 30, 95,319 98,813 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and Diluted Earnings Per Share . The basic and diluted earnings per share are presented below (in thousands except for share data): Three Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,616,532 40,535,489 Dilutive effect of unvested performance awards 63,336 161,558 Diluted number of common shares outstanding 40,679,868 40,697,047 Basic net income per common share: Net income $ 77,880 $ 73,271 Income allocated to participating restricted stock (262 ) (272 ) Net income available to common shareholders $ 77,618 $ 72,999 Diluted net income per common share: Net income $ 77,880 $ 73,271 Income reallocated to participating restricted stock (261 ) (272 ) Net income available to common shareholders $ 77,619 $ 72,999 Basic net income per common share: Distributed earnings $ 0.385 $ 0.36 Undistributed earnings 1.525 1.44 Basic net income per common share $ 1.910 $ 1.80 Diluted net income per common share: Distributed earnings $ 0.385 $ 0.36 Undistributed earnings 1.525 1.43 Diluted net income per common share $ 1.910 $ 1.79 Nine Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,600,726 40,514,961 Dilutive effect of unvested performance awards 79,272 129,532 Diluted number of common shares outstanding 40,679,998 40,644,493 Basic net income per common share: Net income $ 110,095 $ 99,600 Income allocated to participating restricted stock (378 ) (366 ) Net income available to common shareholders $ 109,717 $ 99,234 Diluted net income per common share: Net income $ 110,095 $ 99,600 Income reallocated to participating restricted stock (378 ) (366 ) Net income available to common shareholders $ 109,717 $ 99,234 Basic net income per common share: Distributed earnings $ 1.13 $ 1.055 Undistributed earnings 1.57 1.395 Basic net income per common share $ 2.70 $ 2.450 Diluted net income per common share: Distributed earnings $ 1.13 $ 1.055 Undistributed earnings 1.57 1.385 Diluted net income per common share $ 2.70 $ 2.440 Twelve Months Ended September 30, 2019 2018 Weighted average number of common shares outstanding: Basic number of common shares outstanding 40,585,513 40,494,482 Dilutive effect of unvested performance awards 83,581 136,276 Diluted number of common shares outstanding 40,669,094 40,630,758 Basic net income per common share: Net income $ 94,810 $ 106,100 Income allocated to participating restricted stock (321 ) (383 ) Net income available to common shareholders $ 94,489 $ 105,717 Diluted net income per common share: Net income $ 94,810 $ 106,100 Income reallocated to participating restricted stock (320 ) (383 ) Net income available to common shareholders $ 94,490 $ 105,717 Basic net income per common share: Distributed earnings $ 1.49 $ 1.39 Undistributed earnings 0.84 1.22 Basic net income per common share $ 2.33 $ 2.61 Diluted net income per common share: Distributed earnings $ 1.49 $ 1.39 Undistributed earnings 0.83 1.21 Diluted net income per common share $ 2.32 $ 2.60 |
Schedule of Antidilutive Securities Excluded From Computation Of Earnings Per Share | The number of restricted stock awards and performance shares at 100% performance level excluded from the calculation of the diluted number of common shares outstanding because their effect was antidilutive is presented below: Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Restricted stock awards 54,568 74,278 54,483 67,288 53,232 66,238 Performance shares (a) — — 14,551 15,326 22,234 11,494 ________________________ (a) Certain performance shares were excluded from the computation of diluted earnings per share as no payouts would have been required based upon performance at the end of each corresponding period. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Cost and Supplemental Information | The components of lease expense are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease cost (in thousands): Operating lease cost $ 253 $ 759 Short-term lease cost 153 616 Variable lease cost 9 57 Total lease cost $ 415 $ 1,432 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): September 30, 2019 Operating leases: Operating lease ROU assets (included in electric plant in service) $ 5,889 Operating lease liabilities (current included in other current liabilities) 527 Operating lease liabilities (net of current included in deferred credits and other liabilities) 5,275 Total lease liabilities $ 5,802 Weighted average remaining lease terms (in years) 12.03 Weighted average discount rate 4.65 % Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 103 $ 786 ROU assets obtained in exchange for lease obligations (in thousands): Nine Months Ended September 30, 2019 Operating leases $ 5,889 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities at September 30, 2019 were as follows (in thousands): Year ending December 31, 2019 $ 86 2020 770 2021 696 2022 639 2023 590 Thereafter 4,829 Total lease payments 7,610 Less imputed interest (1,808 ) Total $ 5,802 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, the Company’s minimum future rental payments for the next five years were as follows (in thousands): Year ending December 31, 2019 $ 923 2020 820 2021 700 2022 544 2023 526 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The net periodic benefit cost recognized for the three, nine and twelve months ended September 30, 2019 and 2018 , is made up of the components listed below as determined using the projected unit credit actuarial cost method (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost $ 2,476 $ 2,801 $ 7,429 $ 8,316 $ 10,201 $ 10,446 Interest cost 3,614 3,214 10,841 9,659 14,060 12,924 Expected return on plan assets (5,373 ) (5,176 ) (16,119 ) (15,806 ) (21,389 ) (20,603 ) Amortization of: Net loss 1,449 2,214 4,345 6,414 6,484 8,527 Prior service benefit (877 ) (875 ) (2,630 ) (2,630 ) (3,506 ) (3,506 ) Net periodic benefit cost $ 1,289 $ 2,178 $ 3,866 $ 5,953 $ 5,850 $ 7,788 |
Other Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The net periodic benefit recognized for the three, nine and twelve months ended September 30, 2019 and 2018 , is made up of the components listed below (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Components of net periodic benefit: Service cost $ 606 $ 696 $ 1,817 $ 2,096 $ 2,516 $ 2,655 Interest cost 614 559 1,842 1,689 2,405 2,370 Expected return on plan assets (530 ) (602 ) (1,590 ) (1,827 ) (2,198 ) (2,304 ) Amortization of: Prior service benefit (1,308 ) (1,538 ) (3,925 ) (4,613 ) (5,463 ) (6,151 ) Net gain (595 ) (574 ) (1,783 ) (1,624 ) (2,325 ) (2,044 ) Net periodic benefit $ (1,213 ) $ (1,459 ) $ (3,639 ) $ (4,279 ) $ (5,065 ) $ (5,474 ) |
Financial Instruments And Inv_2
Financial Instruments And Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Unrealized Gains and losses recognized [Line Items] | |
Fair Values Of Long-Term Debt And Short-Term Borrowings Under the RCF | The fair values of the Company's long-term debt and short-term borrowings under the RCF are based on estimated market prices for similar issues and are presented below (in thousands): September 30, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Pollution Control Bonds (1) $ 157,947 $ 167,977 $ 157,769 $ 161,917 Senior Notes 1,118,255 1,393,650 1,117,943 1,244,310 RGRT Senior Notes (2) 109,589 114,925 109,507 111,440 RCF (2) 99,826 99,826 49,207 49,207 Total $ 1,485,617 $ 1,776,378 $ 1,434,426 $ 1,566,874 _______________ (1) On February 1, 2019 and April 1, 2019, the Company purchased in lieu of redemption the 2009 Series A 7.25% PCBs with an aggregate principal amount of $63.5 million and the 2009 Series B 7.25% PCBs with an aggregate principal amount of $37.1 million , respectively, utilizing funds borrowed under the RCF. On May 22, 2019, the Company reoffered and sold $63.5 million aggregate principal amount of 2009 Series A 7.25% PCBs and $37.1 million aggregate principal amount of 2009 Series B 7.25% PCBs with a fixed interest rate of 3.60% per annum until the bonds mature on February 1, 2040 and April 1, 2040, respectively. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. (2) Nuclear fuel financing, as of September 30, 2019 and December 31, 2018, is funded through $110 million RGRT Senior Notes and $22.8 million and $26.2 million , respectively, under the RCF. As of September 30, 2019, $77.0 million was outstanding under the RCF for working capital and general corporate purposes. As of December 31, 2018, $23.0 million , was outstanding under the RCF for working capital or general corporate purposes. The interest rate on the Company's borrowings under the RCF is reset throughout the quarter reflecting c urrent market rates. Consequently, the carrying value approximates fair value . See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. |
Unrecognized Gross Unrealized Gains (Losses) And the Fair Value | The table below presents the gross unrealized losses and the fair value of these securities as of December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Description of Securities (1) : Federal Agency Mortgage Backed Securities $ 6,187 $ (36 ) $ 14,567 $ (510 ) $ 20,754 $ (546 ) U.S. Government Bonds 4,005 (9 ) 36,615 (1,663 ) 40,620 (1,672 ) Municipal Debt Obligations 3,100 (74 ) 9,037 (723 ) 12,137 (797 ) Corporate Debt Obligations 22,259 (763 ) 11,231 (731 ) 33,490 (1,494 ) Total $ 35,551 $ (882 ) $ 71,450 $ (3,627 ) $ 107,001 $ (4,509 ) _________________ (1) Includes 156 securities. |
Marketable Securities Fair Value and Unrecognized Gross Unrealized Gain | The table below presents the unrecognized gross unrealized gains and the fair value of these securities, aggregated by investment category as of December 31, 2018 (in thousands): December 31, 2018 Fair Value Unrealized Gains Description of Securities: Federal Agency Mortgage Backed Securities $ 9,959 $ 176 U.S. Government Bonds 6,987 149 Municipal Debt Obligations 1,952 120 Corporate Debt Obligations 8,283 222 Total Debt Securities $ 27,181 $ 667 |
Sale of Securities And The Related Effects On Pre-Tax Income | The proceeds from the sale of these securities during the three, nine and twelve months ended September 30, 2019 and 2018, and the related effects on pre-tax income are as follows (in thousands): Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Proceeds from sales or maturities of available for sale securities $ 145,290 $ 7,451 $ 168,177 $ 21,816 $ 172,316 $ 42,355 Gross realized gains included in pre-tax income $ 4,702 $ — $ 4,815 $ 9 $ 4,823 $ 2,076 Gross realized losses included in pre-tax income (1,500 ) (443 ) (2,583 ) (1,117 ) (2,928 ) (1,680 ) Net gains (losses) included in pre-tax income $ 3,202 $ (443 ) $ 2,232 $ (1,108 ) $ 1,895 $ 396 |
Fair Value, Measurement Inputs, Disclosure | The fair value of the NDT and investments in debt securities at September 30, 2019 and December 31, 2018, and the level within the three levels of the fair value hierarchy defined by the FASB guidance are presented in the table below (in thousands): Description of Securities Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Securities: Investments in Debt Securities $ 1,595 $ — $ — $ 1,595 Equity Securities: Domestic (1) $ 274,517 $ 274,517 $ — $ — International 27,104 27,104 — — Total Equity Securities 301,621 301,621 — — Cash and Cash Equivalents 10,121 10,121 — — Total $ 311,742 $ 311,742 $ — $ — _________________ (1) Includes $140.9 million held in three exchange traded funds with underlying investments in debt securities. The exchange traded funds were purchased in September 2019, and meet the definition of equity securities with readily determinable fair values. Description of Securities Fair Value as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Securities: Investments in Debt Securities $ 1,656 $ — $ — $ 1,656 Equity Securities: Domestic $ 111,325 $ 111,325 $ — $ — International 24,540 24,540 — — Total Equity Securities 135,865 135,865 — — Available for Sale Debt Securities: Federal Agency Mortgage Backed Securities 30,713 — 30,713 — U.S. Government Bonds 47,607 47,607 — — Municipal Debt Obligations 14,089 — 14,089 — Corporate Debt Obligations 41,773 — 41,773 — Total Available for Sale Debt Securities 134,182 47,607 86,575 — Cash and Cash Equivalents 6,858 6,858 — — Total $ 276,905 $ 190,330 $ 86,575 $ — |
Equity Securities | |
Unrealized Gains and losses recognized [Line Items] | |
Unrealized Gain (Loss) on Investments | The unrealized gains and losses recognized during the three and nine months ended September 30, 2019 and 2018 , and related effects on pre-tax income are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net gains recognized on equity securities $ 1,010 $ 9,533 $ 23,195 $ 10,791 Less: Net gains recognized on equity securities sold 136 3,005 422 7,061 Unrealized gains recognized on equity securities still held at reporting date $ 874 $ 6,528 $ 22,773 $ 3,730 |
Principles Of Preparation (Accr
Principles Of Preparation (Accrued Unbilled Revenues) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accrued unbilled revenues | $ 33.3 | $ 21.6 |
Principles Of Preparation (Depr
Principles Of Preparation (Depreciation) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 48 years |
Principles Of Preparation Narra
Principles Of Preparation Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating Lease, Liability | $ 5,802 | $ 5,802 | |||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | |
Stranded taxes in accumulated other comprehensive income | $ (38,636) | $ (38,636) | $ (38,784) | ||||
Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating Lease, Liability | $ 6,300 | ||||||
Accounting Standards Update 2018-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stranded taxes in accumulated other comprehensive income | $ 7,200 | $ 7,200 | |||||
Minimum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Lessee, Operating Lease, Term of Contract | 12 months | 12 months |
Principles Of Preparation (Supp
Principles Of Preparation (Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest on long-term debt and borrowings under the revolving credit facility | $ 47,871 | $ 47,479 |
Income taxes paid, net | 2,567 | 2,480 |
Changes in accrued plant additions | 1,721 | 9,347 |
Right-of-use assets obtained in exchange for lease obligations | 5,889 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issued | 1,393 | 1,030 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issued | $ 2,143 | $ 1,499 |
Disaggregation of Revenues (Det
Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | $ 293,158 | $ 299,369 | $ 669,429 | $ 710,510 | $ 858,294 | $ 905,063 |
Other | 1,295 | 902 | 2,462 | 2,270 | 4,420 | 3,866 |
Total operating revenues | 294,453 | 300,271 | 671,891 | 712,780 | 862,714 | 908,929 |
Retail | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 268,375 | 265,971 | 584,160 | 633,578 | 740,258 | 807,626 |
Wholesale | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 18,900 | 28,253 | 68,530 | 63,354 | 95,849 | 79,456 |
Wheeling (transmission) | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | $ 5,883 | $ 5,145 | $ 16,739 | $ 13,578 | $ 22,187 | $ 17,981 |
Revenues Accounts Receivable (D
Revenues Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |||
Provision for Doubtful Accounts | $ 0.8 | $ 1.5 | $ 2.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income (Loss), beginning balance | $ (38,784) | |||||||
Accumulated Other Comprehensive Income (Loss), ending balance | $ (38,636) | (38,636) | $ (38,636) | |||||
Accumulated Defined Benefit Plans Adjustment | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | $ 0 | ||||||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | (41,028) | ||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | 0 | ||||||
AOCI Attributable to Parent | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | $ (41,028) | ||||||
Accumulated Defined Benefit Plans Adjustment | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income (Loss), beginning balance | (27,024) | $ (19,124) | (24,923) | $ (17,790) | (19,723) | $ (25,372) | ||
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 | 0 | 0 | (4,589) | 7,951 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (1,030) | (599) | (3,131) | (1,933) | (3,742) | (2,302) | ||
Accumulated Other Comprehensive Income (Loss), ending balance | (28,054) | (19,723) | (28,054) | (19,723) | (28,054) | (19,723) | ||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income (Loss), beginning balance | 2,033 | (3,478) | (2,942) | 40,190 | (3,878) | 35,651 | ||
Other Comprehensive Income (Loss) before Reclassifications | 454 | (764) | 4,656 | (3,923) | 5,339 | 1,837 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2,487) | 364 | (1,714) | 883 | (1,461) | (338) | ||
Accumulated Other Comprehensive Income (Loss), ending balance | 0 | (3,878) | 0 | (3,878) | 0 | (3,878) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income (Loss), beginning balance | (10,702) | (11,144) | (10,919) | (11,342) | (11,032) | (11,429) | ||
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 120 | 112 | 337 | 310 | 450 | 397 | ||
Accumulated Other Comprehensive Income (Loss), ending balance | (10,582) | (11,032) | (10,582) | (11,032) | (10,582) | (11,032) | ||
AOCI Attributable to Parent | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income (Loss), beginning balance | (35,693) | (33,746) | (38,784) | 11,058 | (34,633) | (1,150) | ||
Other Comprehensive Income (Loss) before Reclassifications | 454 | (764) | 4,656 | (3,923) | 750 | 9,788 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (3,397) | (123) | (4,508) | (740) | (4,753) | (2,243) | ||
Accumulated Other Comprehensive Income (Loss), ending balance | $ (38,636) | $ (34,633) | $ (38,636) | $ (34,633) | $ (38,636) | $ (34,633) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Amounts Reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Income (loss) before income taxes | $ 101,169 | $ 95,985 | $ 142,558 | $ 130,027 | $ 123,214 | $ 137,507 | ||||
Income tax expense (benefit) | (23,289) | (22,714) | (32,463) | (30,427) | (28,404) | (31,407) | ||||
Net income | 77,880 | $ 26,126 | $ 6,089 | 73,271 | $ 33,295 | $ (6,966) | 110,095 | 99,600 | 94,810 | 106,100 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,185 | 2,413 | 6,555 | 7,243 | 8,969 | 9,657 | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (854) | (1,640) | (2,562) | (4,790) | (4,159) | (6,483) | ||||
Accumulated Defined Benefit Plans Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,331 | 773 | 3,993 | 2,453 | 4,810 | 3,174 | ||||
Reclassification from AOCI, Current Period, Tax | (301) | (174) | (862) | (520) | (1,068) | (872) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,030 | 599 | 3,131 | 1,933 | 3,742 | 2,302 | ||||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,487 | (364) | 1,714 | (883) | 1,461 | 338 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (120) | (112) | (337) | (310) | (450) | (397) | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3,397 | 123 | 4,508 | 740 | 4,753 | 2,243 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Net realized gain (loss) on sale of securities | 3,202 | (443) | 2,232 | (1,108) | 1,895 | 396 | ||||
Income (loss) before income taxes | 3,202 | (443) | 2,232 | (1,108) | 1,895 | 396 | ||||
Income tax expense (benefit) | (715) | 79 | (518) | 225 | (434) | (58) | ||||
Net income | 2,487 | (364) | 1,714 | (883) | 1,461 | 338 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Income (loss) before income taxes | (153) | (144) | (451) | (423) | (596) | (559) | ||||
Income tax expense (benefit) | 33 | 32 | 114 | 113 | 146 | 162 | ||||
Net income | (120) | (112) | (337) | (310) | (450) | (397) | ||||
Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Interest on long-term debt and revolving credit facility | $ (153) | $ (144) | $ (451) | $ (423) | $ (596) | $ (559) |
Regulation Narrative - Texas (D
Regulation Narrative - Texas (Details) | Oct. 15, 2019 | Oct. 11, 2019USD ($) | Sep. 27, 2019USD ($) | Sep. 12, 2019USD ($) | Jun. 27, 2019USD ($) | Jun. 01, 2019USD ($) | May 01, 2019USD ($) | Mar. 28, 2019USD ($) | Jan. 25, 2019USD ($) | Jan. 17, 2019USD ($) | Nov. 01, 2018 | May 01, 2018USD ($) | Apr. 01, 2018 | Mar. 01, 2018USD ($) | Feb. 15, 2018USD ($) | Jan. 01, 2018 | Dec. 18, 2017USD ($) | Nov. 01, 2017 | Aug. 01, 2017 | Sep. 30, 2019USD ($)MW | Sep. 30, 2019USD ($)MW | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)MW | Sep. 30, 2019USD ($)MW | Sep. 30, 2018USD ($) | May 09, 2019MW | Mar. 20, 2018MW | Jun. 08, 2015MW |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Payments to Acquire Investments to be Held in Decommissioning Trust Fund | $ 361,577,000 | $ 74,438,000 | ||||||||||||||||||||||||||
PUCT | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Period to file application with regulatory agency | 4 months | |||||||||||||||||||||||||||
Fuel Over And Under Materiality Threshold Percentage | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||||||||||||||
Fuel Reconciliation Period | 6 months | 36 months | ||||||||||||||||||||||||||
Deferred Fuel Costs Over Collected | $ 14,100,000 | $ 14,100,000 | $ 14,100,000 | $ 14,100,000 | ||||||||||||||||||||||||
Reconcilable Fuel Expense | $ 36,700,000 | $ 36,700,000 | $ 36,700,000 | $ 36,700,000 | ||||||||||||||||||||||||
Community Solar at Newman | PUCT | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Electric Capacity | MW | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||
PUCT Docket No. 46831 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Return on Equity, Percentage | 9.65% | |||||||||||||||||||||||||||
Regulatory Assets | $ 3,400,000 | |||||||||||||||||||||||||||
Surcharge Or Refund Period | 3 years | |||||||||||||||||||||||||||
Minimum Distributive Generation Charge | $ 30 | |||||||||||||||||||||||||||
Payments to Acquire Investments to be Held in Decommissioning Trust Fund | 2,100,000 | |||||||||||||||||||||||||||
Public Utilities, Increase (Decrease) In Requested Depreciation Expense | (1,900,000) | |||||||||||||||||||||||||||
PUCT Docket No. 46831 | Four Corners decommissioning | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Decommissioning Costs Increase (Decrease) | 5,500,000 | |||||||||||||||||||||||||||
Remaining Recovery Period of Regulatory Assets for which No Return on Investment During Recovery Period is Provided | 7 years | |||||||||||||||||||||||||||
PUCT Docket No. 46831 | Non-Fuel Base Rate | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 14,500,000 | |||||||||||||||||||||||||||
PUCT Docket No. 50058 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Relate Back Surcharge Over Collected | $ 500,000 | |||||||||||||||||||||||||||
Reconcilable Fuel Expense | $ 363,000,000 | |||||||||||||||||||||||||||
Public Utilities, Regulatory Rate Making Impact | PUCT | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Period To Relate Back New Rates | 167 days | |||||||||||||||||||||||||||
PUCT Docket No. 48124 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Surcharge Or Refund Period | 1 year | |||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (22,700,000) | $ (4,300,000) | ||||||||||||||||||||||||||
Tax benefit refund period | 3 months | |||||||||||||||||||||||||||
PUCT Docket No. 49251 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (4,300,000) | |||||||||||||||||||||||||||
PUCT Docket No. 47125 | 2016 Energy Efficiency Programs | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities Approved Performance Incentive Bonus Related To Energy Efficiency Program | $ 800,000 | |||||||||||||||||||||||||||
PUCT Docket No. 48332 | 2017 Energy Efficiency Programs | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities Approved Performance Incentive Bonus Related To Energy Efficiency Program | $ 900,000 | |||||||||||||||||||||||||||
Public Utilities Requested Performance Incentive Bonus Related To Energy Efficiency Program | $ 1,000,000 | |||||||||||||||||||||||||||
PUCT Docket No. 49496 | 2018 Energy Efficiency Programs | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities Requested Performance Incentive Bonus Related To Energy Efficiency Program | $ 800,000 | |||||||||||||||||||||||||||
PUCT Docket No. 47692 | Fixed Fuel Factor | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (19.00%) | |||||||||||||||||||||||||||
PUCT Docket No. 48264 | Fixed Fuel Factor | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (29.00%) | |||||||||||||||||||||||||||
PUCT Docket No. 48781 | Fixed Fuel Factor | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (6.99%) | |||||||||||||||||||||||||||
PUCT Docket No. 49482 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Surcharge Or Refund Period | 4 months | |||||||||||||||||||||||||||
Fuel Reconciliation Period | 36 months | |||||||||||||||||||||||||||
Deferred fuel costs over-collected, including interest, amount | $ 19,400,000 | |||||||||||||||||||||||||||
Deferred Revenue, Refund Payments | $ 20,100,000 | |||||||||||||||||||||||||||
PUCT Docket No. 44800 | Community Solar At Montana Power Station | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Electric Capacity | MW | 3 | |||||||||||||||||||||||||||
Number Of Customers | 1,500 | 1,500 | 1,500 | 1,500 | ||||||||||||||||||||||||
PUCT Docket No. 48181 | Community Solar at Newman | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Electric Capacity | MW | 2 | |||||||||||||||||||||||||||
Electric capacity, requested | MW | 2 | |||||||||||||||||||||||||||
PUCT Docket No. 49148 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Recovery period for property, plant or equipment placed into service | 24 months | |||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 8,200,000 | |||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ 7,500,000 | $ 1,400,000 | ||||||||||||||||||||||||||
PUCT Docket No. 49395 | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 7,800,000 | |||||||||||||||||||||||||||
Recovery period for property, plant or equipment placed into service | 27 months | |||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 7,900,000 | |||||||||||||||||||||||||||
Subsequent Event | PUCT Docket No. 49496 | 2018 Energy Efficiency Programs | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Rate Case Expenses Removed From Revenue Requirement | $ 15,000 | |||||||||||||||||||||||||||
Subsequent Event | PUCT Docket No. 49960 | Fixed Fuel Factor | ||||||||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | (12.20%) |
Regulation Narrative - New Mexi
Regulation Narrative - New Mexico (Details) $ in Millions | Mar. 06, 2019USD ($) | Feb. 13, 2019 | Jan. 30, 2019USD ($) | Nov. 16, 2018 | May 01, 2018USD ($) | Jul. 01, 2016USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 22, 2019USD ($) | Apr. 01, 2019USD ($) | Feb. 01, 2019USD ($) | Sep. 13, 2018USD ($) | Jun. 28, 2018USD ($) | Apr. 24, 2018MW | Oct. 04, 2017USD ($) | Oct. 07, 2015USD ($)MW |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 350 | $ 350 | ||||||||||||||||
7.25% 2009 Series A Refunding Bonds, due 2040 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | |||||||||||||||||
7.25% 2009 Series B Refunding Bonds, due 2040 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | |||||||||||||||||
NMPRC | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Period to file fuel factor continuation | 3 months | |||||||||||||||||
Fuel Reconciliation Period | 33 months | |||||||||||||||||
Reconcilable Fuel Expense | 107.3 | $ 107.3 | ||||||||||||||||
Deferred Fuel Cost | 1.4 | $ 1.4 | ||||||||||||||||
Public Utilities Approved Performance Incentive Bonus Related To Energy Efficiency Program | 0.4 | $ 0.3 | $ 0.7 | |||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 350 | |||||||||||||||||
Renewable portfolio standard requirement, percentage of retail sales | 80.00% | |||||||||||||||||
Reasonable cost threshold, percentage | 3.00% | |||||||||||||||||
NMPRC | Maximum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Period to file fuel factor continuation | 4 years | |||||||||||||||||
NMPRC | 2020 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Renewable portfolio standard requirement, percentage of retail sales | 20.00% | |||||||||||||||||
NMPRC | 2025 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Renewable portfolio standard requirement, percentage of retail sales | 40.00% | |||||||||||||||||
NMPRC | 2030 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Renewable portfolio standard requirement, percentage of retail sales | 50.00% | |||||||||||||||||
NMPRC | 2040 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Renewable portfolio standard requirement, percentage of retail sales | 80.00% | |||||||||||||||||
NMPRC Case No. 18-00006-UT | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Fuel Reconciliation Period | 24 months | |||||||||||||||||
NMPRC Case No. 18-00016-UT | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (4.9) | |||||||||||||||||
NMPRC Case No. 19-00033-UT | Maximum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Proceeds from issuance of common stock, requested | $ 200 | |||||||||||||||||
NMPRC Case No. 17-00090-UT | NMPRC | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Deferred Fuel Costs Over Collected | $ (1.6) | $ (1.6) | ||||||||||||||||
NMPRC Case No. 15-00185-UT | Holloman | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Electric Capacity | MW | 5 | |||||||||||||||||
NMPRC Case No. 16-00185-UT | 2017 Energy Efficiency Programs | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Public Utilities Requested Performance Incentive Bonus Related To Energy Efficiency Program | $ 0.4 | |||||||||||||||||
NMPRC Case No. 18-00116-UT | 2019-2021 Energy Efficiency Programs | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Public Utilities Approved Performance Incentive Bonus Related To Energy Efficiency Program | $ 0.4 | |||||||||||||||||
Public Utilities Approved Performance Incentive Bonus Related To Energy Efficiency Program, Percentage of Expenditures | 7.10% | |||||||||||||||||
NMPRC Case No. 18-00099-UT | Community Solar at Doña Ana County | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Electric capacity, requested | MW | 2 | |||||||||||||||||
NMPRC Case No. 18-00293-UT | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Number of Regulatory Filing Deficiencies | 12 | |||||||||||||||||
NMPRC Case No. 15-00280-UT | Maximum | RGRT | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 65 | |||||||||||||||||
NMPRC Case No. 15-00280-UT | Senior Notes | 4.07% RGRT Senior Notes, due 2025 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 65 | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | |||||||||||||||||
NMPRC Case No. 17-00217-UT | 7.25% 2009 Series A Refunding Bonds, due 2040 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 63.5 | $ 63.5 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 63.5 | |||||||||||||||||
NMPRC Case No. 17-00217-UT | 7.25% 2009 Series B Refunding Bonds, due 2040 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 37.1 | $ 37.1 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 37.1 | |||||||||||||||||
NMPRC Case No. 17-00217-UT | Maximum | Long-term Debt | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 350 | |||||||||||||||||
NMPRC Case No. 17-00217-UT | Senior Notes | 4.22% Senior Notes, due 2028 | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 125 | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.22% |
Regulation Narrative - FERC Jur
Regulation Narrative - FERC Jurisdiction (Details) $ in Millions | Jan. 30, 2019USD ($) | Mar. 15, 2018 | Nov. 15, 2017 | Sep. 30, 2019USD ($) | Sep. 30, 2018 | Sep. 30, 2019USD ($) | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | May 22, 2019USD ($) | Apr. 01, 2019USD ($) | Feb. 01, 2019USD ($) | Sep. 13, 2018USD ($) | Jun. 28, 2018USD ($) | Oct. 31, 2017USD ($) |
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 350 | $ 350 | |||||||||||||
Debt Issuance Authorization Period | 2 years | ||||||||||||||
7.25% 2009 Series A Refunding Bonds, due 2040 | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||||||||||||
7.25% 2009 Series B Refunding Bonds, due 2040 | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||||||||||||
FERC | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Show Cause Orders issued, Number | 2 | ||||||||||||||
Number of public utilities affected | 48 | ||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 350 | ||||||||||||||
FERC | Maximum | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Period to comply with order from regulatory agency | 60 days | ||||||||||||||
Proceeds from issuance of common stock, requested | $ 200 | ||||||||||||||
FERC | Long-term Debt | Maximum | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | 225 | $ 350 | |||||||||||||
FERC | RGRT | Maximum | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | 65 | ||||||||||||||
FERC | 7.25% 2009 Series A Refunding Bonds, due 2040 | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 63.5 | $ 63.5 | $ 63.5 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 3.60% | 7.25% | 7.25% | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 63.5 | ||||||||||||||
FERC | 7.25% 2009 Series B Refunding Bonds, due 2040 | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 37.1 | $ 37.1 | $ 37.1 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 3.60% | 7.25% | 7.25% | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 37.1 | ||||||||||||||
FERC | Senior Notes | Maximum | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 100.6 | ||||||||||||||
FERC | 4.22% Senior Notes, due 2028 | Senior Notes | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 125 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.22% | ||||||||||||||
FERC | 4.07% RGRT Senior Notes, due 2025 | Senior Notes | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 65 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | ||||||||||||||
FERC | Revolving Credit Facility | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 |
Palo Verde (Narrative) (Detail
Palo Verde (Narrative) (Details) - Subsequent Event - Suit Against Department of Energy for Spent Fuel $ in Millions | Oct. 31, 2019USD ($) |
Palo Verde Generation Station | |
Jointly Owned Utility Plant Interests [Line Items] | |
Litigation, Claim Amount | $ 2.5 |
Palo Verde Participants | |
Jointly Owned Utility Plant Interests [Line Items] | |
Litigation, Claim Amount | $ 16 |
Palo Verde Operations and Maint
Palo Verde Operations and Maintenance Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Utilities Operating Expense, Maintenance and Operations | $ 82,186 | $ 83,355 | $ 243,907 | $ 252,370 | $ 326,420 | $ 336,506 |
Palo Verde Generation Station | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Utilities Operating Expense, Maintenance and Operations | $ 20,713 | $ 20,277 | $ 66,294 | $ 67,429 | $ 95,319 | $ 98,813 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 17, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||||||||||
Common stock, dividends declared, per share | $ 0.385 | $ 0.385 | $ 0.360 | $ 0.360 | $ 0.360 | $ 0.335 | $ 1.130 | $ 1.055 | $ 1.49 | $ 1.39 | |
Under the Merger Agreement Max dividends declared per share before June 1, 2020 | 0.385 | ||||||||||
Under the Merger Agreement Max dividends declared per share on or after June 1, 2020. | $ 0.41 | ||||||||||
Dividends, Common Stock, Cash | $ 15,683 | $ 15,694 | $ 14,658 | $ 14,641 | $ 14,642 | $ 13,615 | $ 46,000 | $ 42,900 | $ 60,600 | $ 56,500 | |
Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, dividends declared, per share | $ 0.385 |
Common Stock (Basic And Diluted
Common Stock (Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||||
Basic number of common shares outstanding | 40,616,532 | 40,535,489 | 40,600,726 | 40,514,961 | 40,585,513 | 40,494,482 | ||||
Dilutive effect of unvested performance awards | 63,336 | 161,558 | 79,272 | 129,532 | 83,581 | 136,276 | ||||
Diluted number of common shares outstanding | 40,679,868 | 40,697,047 | 40,679,998 | 40,644,493 | 40,669,094 | 40,630,758 | ||||
Net income | $ 77,880 | $ 26,126 | $ 6,089 | $ 73,271 | $ 33,295 | $ (6,966) | $ 110,095 | $ 99,600 | $ 94,810 | $ 106,100 |
Income allocated to participating restricted stock | (262) | (272) | (378) | (366) | (321) | (383) | ||||
Net income available to common shareholders, basic | 77,618 | 72,999 | 109,717 | 99,234 | 94,489 | 105,717 | ||||
Income reallocated to participating restricted stock | (261) | (272) | (378) | (366) | (320) | (383) | ||||
Net income available to common shareholders, diluted | $ 77,619 | $ 72,999 | $ 109,717 | $ 99,234 | $ 94,490 | $ 105,717 | ||||
Earnings Per Share, Basic, Distributed | $ 0.385 | $ 0.36 | $ 1.13 | $ 1.055 | $ 1.49 | $ 1.39 | ||||
Earnings Per Share, Basic, Undistributed | 1.525 | 1.44 | 1.57 | 1.395 | 0.84 | 1.22 | ||||
Basic net income per common share | 1.910 | 1.80 | 2.70 | 2.450 | 2.33 | 2.61 | ||||
Earnings Per Share, Diluted, Distributed | 0.385 | 0.36 | 1.13 | 1.055 | 1.49 | 1.39 | ||||
Earnings Per Share, Diluted, Undistributed | 1.525 | 1.43 | 1.57 | 1.385 | 0.83 | 1.21 | ||||
Diluted net income per common share | $ 1.910 | $ 1.79 | $ 2.70 | $ 2.440 | $ 2.32 | $ 2.60 |
Common Stock (Antidilutive Secu
Common Stock (Antidilutive Securities Excluded From Computation Of Earnings Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Performance shares payout based upon performance | 0 | 0 | 0 | 0 | 0 | 0 | |
Performance shares payout level | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Restricted Stock | |||||||
Antidilutive Securities Excluded from the Computation of Diluted Earnings Per Share, Amount | 54,568 | 74,278 | 54,483 | 67,288 | 53,232 | 66,238 | |
Performance Shares | |||||||
Antidilutive Securities Excluded from the Computation of Diluted Earnings Per Share, Amount | [1] | 0 | 0 | 14,551 | 15,326 | 22,234 | 11,494 |
[1] | Certain performance shares were excluded from the computation of diluted earnings per share as no payouts would have been required based upon performance at the end of each corresponding period. |
Income Taxes (Income Tax Rates)
Income Taxes (Income Tax Rates) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||||||||
Effective tax rate | 23.00% | 23.70% | 22.80% | 23.40% | 23.10% | 22.80% | ||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | ||
Income Tax Rate Capital Gains | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% |
Income Taxes (Details)
Income Taxes (Details) - Latest Tax Year | 9 Months Ended |
Sep. 30, 2019 | |
Internal Revenue Service (IRS) | |
Income Tax [Line Items] | |
Tax Year Closed | 2013 |
TEXAS | |
Income Tax [Line Items] | |
Tax Year Closed | 2013 |
NEW MEXICO | |
Income Tax [Line Items] | |
Tax Year Closed | 2013 |
ARIZONA | |
Income Tax [Line Items] | |
Tax Year Closed | 2013 |
Commitments, Contingencies An_2
Commitments, Contingencies And Uncertainties Power Purchase and Sale Contracts (Details) | 3 Months Ended |
Dec. 31, 2019 | |
Forecast | |
Long-term Purchase Commitment [Line Items] | |
Number of agreement | 2 |
Commitments, Contingencies An_3
Commitments, Contingencies And Uncertainties Union Matters (Details) | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 03, 2022 | Sep. 03, 2021 | Sep. 03, 2020 | Sep. 03, 2019 | |
Collective Bargaining Agreement [Line Items] | |||||
Entity Number of Employees | 1,100 | ||||
Number of Employees Cover by Collective Bargaining Agreements, Percentage | 37.00% | ||||
Term of Collective Bargaining Agreement, Year | 4 years | ||||
Pay increase, percentage | 3.25% | ||||
Forecast | |||||
Collective Bargaining Agreement [Line Items] | |||||
Pay increase, percentage | 3.20% | 3.00% | 3.00% |
Leases Narrative (Details)
Leases Narrative (Details) | Sep. 30, 2019 |
Newman Land Lease | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Renewal Term | 25 years |
Maximum | Other Property | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Lease Cost (Details)
Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 253 | $ 759 | |
Short-term lease cost | 153 | 616 | |
Variable lease cost | 9 | 57 | |
Total lease cost | $ 415 | 1,432 | |
Right-of-use assets obtained in exchange for lease obligations | $ 5,889 | $ 0 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU assets | $ 5,889 |
Operating lease ROU assets, Statement of Financial Position [Extensible List] | us-gaap:PublicUtilitiesPropertyPlantAndEquipmentPlantInService |
Operating lease liabilities, current | $ 527 |
Operating lease liabilities, current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities, noncurrent | $ 5,275 |
Operating lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Total lease liabilities | $ 5,802 |
Weighted average remaining lease terms | 12 years 10 days |
Weighted average discount rate | 4.65% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Operating cash flows used for operating leases | $ 103 | $ 786 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 | $ 86 |
2020 | 770 |
2021 | 696 |
2022 | 639 |
2023 | 590 |
Thereafter | 4,829 |
Total lease payments | 7,610 |
Less imputed interest | (1,808) |
Total | $ 5,802 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Operating Leases, Rent Expense | $ 1,700 | $ 2,400 |
2019 | 923 | |
2020 | 820 | |
2021 | 700 | |
2022 | 544 | |
2023 | $ 526 |
Litigation (Details)
Litigation (Details) | Nov. 07, 2019 |
Subsequent Event | |
Business Combination | |
Loss Contingency, Number of Plaintiffs | 3 |
Employee Benefits (Retirement P
Employee Benefits (Retirement Plans And Other Postretirement Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retirement Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 2,476 | $ 2,801 | $ 7,429 | $ 8,316 | $ 10,201 | $ 10,446 |
Interest cost | 3,614 | 3,214 | 10,841 | 9,659 | 14,060 | 12,924 |
Expected return on plan assets | (5,373) | (5,176) | (16,119) | (15,806) | (21,389) | (20,603) |
Amortization of net (gain) loss | 1,449 | 2,214 | 4,345 | 6,414 | 6,484 | 8,527 |
Amortization of prior service benefit | (877) | (875) | (2,630) | (2,630) | (3,506) | (3,506) |
Net periodic benefit cost (benefit) | 1,289 | 2,178 | 3,866 | 5,953 | 5,850 | 7,788 |
Other Postretirement Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 606 | 696 | 1,817 | 2,096 | 2,516 | 2,655 |
Interest cost | 614 | 559 | 1,842 | 1,689 | 2,405 | 2,370 |
Expected return on plan assets | (530) | (602) | (1,590) | (1,827) | (2,198) | (2,304) |
Amortization of net (gain) loss | (595) | (574) | (1,783) | (1,624) | (2,325) | (2,044) |
Amortization of prior service benefit | (1,308) | (1,538) | (3,925) | (4,613) | (5,463) | (6,151) |
Net periodic benefit cost (benefit) | $ (1,213) | $ (1,459) | $ (3,639) | $ (4,279) | $ (5,065) | $ (5,474) |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Employer Contribution | $ 8.8 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 9.5 |
Other Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Employer Contribution | 0.5 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 0.6 |
Financial Instruments And Inv_3
Financial Instruments And Investments (Carrying Amount and Fair Value Amounts) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 1,485,617 | $ 1,434,426 | |
Carrying (Reported) Amount, Fair Value Disclosure | Pollution Control Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [1] | 157,947 | 157,769 |
Carrying (Reported) Amount, Fair Value Disclosure | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 1,118,255 | 1,117,943 | |
Carrying (Reported) Amount, Fair Value Disclosure | RGRT Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [2] | 109,589 | 109,507 |
Carrying (Reported) Amount, Fair Value Disclosure | Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [2] | 99,826 | 49,207 |
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 1,776,378 | 1,566,874 | |
Estimate of Fair Value Measurement | Pollution Control Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [1] | 167,977 | 161,917 |
Estimate of Fair Value Measurement | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 1,393,650 | 1,244,310 | |
Estimate of Fair Value Measurement | RGRT Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [2] | 114,925 | 111,440 |
Estimate of Fair Value Measurement | Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [2] | $ 99,826 | $ 49,207 |
[1] | On February 1, 2019 and April 1, 2019, the Company purchased in lieu of redemption the 2009 Series A 7.25% PCBs with an aggregate principal amount of $63.5 million and the 2009 Series B 7.25% PCBs with an aggregate principal amount of $37.1 million , respectively, utilizing funds borrowed under the RCF. On May 22, 2019, the Company reoffered and sold $63.5 million aggregate principal amount of 2009 Series A 7.25% PCBs and $37.1 million aggregate principal amount of 2009 Series B 7.25% PCBs with a fixed interest rate of 3.60% per annum until the bonds mature on February 1, 2040 and April 1, 2040, respectively. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. | ||
[2] | Nuclear fuel financing, as of September 30, 2019 and December 31, 2018, is funded through $110 million RGRT Senior Notes and $22.8 million and $26.2 million , respectively, under the RCF. As of September 30, 2019, $77.0 million was outstanding under the RCF for working capital and general corporate purposes. As of December 31, 2018, $23.0 million , was outstanding under the RCF for working capital or general corporate purposes. The interest rate on the Company's borrowings under the RCF is reset throughout the quarter reflecting c urrent market rates. Consequently, the carrying value approximates fair value . See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. |
Financial Instruments And Inv_4
Financial Instruments And Investments (Long-Term Debt and Short-Term Borrowings - Narratives) (Details) $ in Thousands | Sep. 30, 2019USD ($)security | May 22, 2019USD ($) | Apr. 01, 2019USD ($) | Feb. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Financial Instruments and Investments [Line Items] | |||||
Decommissioning Fund Investments | $ 311,742 | $ 276,905 | |||
Number of debt securities | security | 450 | ||||
Nuclear Fuel Financing | |||||
Financial Instruments and Investments [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | $ 22,800 | 26,200 | |||
Working Capital and General Purpose | |||||
Financial Instruments and Investments [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 77,000 | 23,000 | |||
Pollution Control Bonds | |||||
Financial Instruments and Investments [Line Items] | |||||
Debt Instrument, Face Amount | 159,800 | ||||
RGRT Senior Notes | |||||
Financial Instruments and Investments [Line Items] | |||||
Long-term Debt, Gross | $ 110,000 | $ 110,000 | |||
7.25% 2009 Series A Refunding Bonds, due 2040 | |||||
Financial Instruments and Investments [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||
7.25% 2009 Series A Refunding Bonds, due 2040 | Pollution Control Bonds | |||||
Financial Instruments and Investments [Line Items] | |||||
Debt Instrument, Repurchased Face Amount | $ 63,500 | ||||
Debt Instrument, Face Amount | $ 63,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | 7.25% | |||
7.25% 2009 Series B Refunding Bonds, due 2040 | |||||
Financial Instruments and Investments [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||
7.25% 2009 Series B Refunding Bonds, due 2040 | Pollution Control Bonds | |||||
Financial Instruments and Investments [Line Items] | |||||
Debt Instrument, Repurchased Face Amount | $ 37,100 | ||||
Debt Instrument, Face Amount | $ 37,100 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | 7.25% |
Financial Instruments And Inv_5
Financial Instruments And Investments (Marketable Securities Fair Value And Unrealized Losses) (Details) $ in Thousands | Dec. 31, 2018USD ($)security | |
Financial Instruments and Investments [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 156 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 35,551 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (882) | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 71,450 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,627) | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 107,001 | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | (4,509) | [1] |
Federal Agency Mortgage Backed Securities | ||
Financial Instruments and Investments [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 6,187 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (36) | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 14,567 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (510) | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 20,754 | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | (546) | [1] |
U.S. Government Bonds | ||
Financial Instruments and Investments [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 4,005 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9) | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 36,615 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,663) | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 40,620 | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | (1,672) | [1] |
Municipal Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 3,100 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (74) | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 9,037 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (723) | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 12,137 | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | (797) | [1] |
Corporate Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 22,259 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (763) | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 11,231 | [1] |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (731) | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 33,490 | [1] |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | $ (1,494) | [1] |
[1] | Includes 156 securities. |
Financial Instruments And Inv_6
Financial Instruments And Investments (Unrealized Holding Losses Included In Pre-Tax Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Instruments And Investments [Abstract] | ||||||
Unrealized losses included in pre-tax income | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments And Inv_7
Financial Instruments And Investments (Marketable Securities Fair Value and Unrecognized Gross Unrealized Gains) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Financial Instruments and Investments [Line Items] | |
Available-for-sale Securities, Unrealized Gain Position, Fair Value | $ 27,181 |
Available-for-sale Securities, Gross Unrealized Gain | 667 |
Federal Agency Mortgage Backed Securities | |
Financial Instruments and Investments [Line Items] | |
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 9,959 |
Available-for-sale Securities, Gross Unrealized Gain | 176 |
U.S. Government Bonds | |
Financial Instruments and Investments [Line Items] | |
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 6,987 |
Available-for-sale Securities, Gross Unrealized Gain | 149 |
Municipal Obligations | |
Financial Instruments and Investments [Line Items] | |
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 1,952 |
Available-for-sale Securities, Gross Unrealized Gain | 120 |
Corporate Obligations | |
Financial Instruments and Investments [Line Items] | |
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 8,283 |
Available-for-sale Securities, Gross Unrealized Gain | $ 222 |
Financial Instruments And Inv_8
Financial Instruments And Investments (Sale Of Securities And The Related Effects On Pre-Tax Income ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investment [Line Items] | ||||||
Proceeds from sales or maturities of available-for-sale securities | $ 145,290 | $ 7,451 | $ 168,177 | $ 21,816 | $ 172,316 | $ 42,355 |
Gross realized gains included in pre-tax income | 4,702 | 0 | 4,815 | 9 | 4,823 | 2,076 |
Gross realized losses included in pre-tax income | (1,500) | (443) | (2,583) | (1,117) | (2,928) | (1,680) |
Net gains (losses) included in pre-tax income | $ 3,202 | $ (443) | $ 2,232 | $ (1,108) | $ 1,895 | $ 396 |
Financial Instruments And Inv_9
Financial Instruments And Investments Unrealized gains and losses on equity securities (Details) - Equity Securities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized Gains and losses recognized [Line Items] | ||||
Equity Securities, FV-NI, Gain (Loss) | $ 1,010 | $ 9,533 | $ 23,195 | $ 10,791 |
Equity Securities, FV-NI, Realized Gain (Loss) | 136 | 3,005 | 422 | 7,061 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 874 | $ 6,528 | $ 22,773 | $ 3,730 |
Financial Instruments And In_10
Financial Instruments And Investments (Company's Decommissioning Trust Funds And Investments In Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | $ 311,742 | $ 276,905 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 311,742 | 190,330 |
Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 86,575 |
Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Cash | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 10,121 | 6,858 |
Cash | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 10,121 | 6,858 |
Cash | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Cash | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Debt Securities | ||
Financial Instruments and Investments [Line Items] | ||
Trading Securities | 1,595 | 1,656 |
Debt Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Trading Securities | 0 | 0 |
Debt Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Trading Securities | 0 | 0 |
Debt Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Trading Securities | 1,595 | 1,656 |
Equity Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 301,621 | 135,865 |
Equity Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 301,621 | 135,865 |
Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Equity Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Equity Securities | Domestic Equity Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 274,517 | 111,325 |
Equity Securities | Domestic Equity Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 274,517 | 111,325 |
Equity Securities | Domestic Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Equity Securities | Domestic Equity Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Equity Securities | International Equity Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 27,104 | 24,540 |
Equity Securities | International Equity Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 27,104 | 24,540 |
Equity Securities | International Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Equity Securities | International Equity Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | $ 0 | 0 |
Available-for-sale Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 134,182 | |
Available-for-sale Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 47,607 | |
Available-for-sale Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 86,575 | |
Available-for-sale Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Federal Agency Mortgage Backed Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 30,713 | |
Available-for-sale Securities | Federal Agency Mortgage Backed Securities | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Federal Agency Mortgage Backed Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 30,713 | |
Available-for-sale Securities | Federal Agency Mortgage Backed Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | U.S. Government Bonds | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 47,607 | |
Available-for-sale Securities | U.S. Government Bonds | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 47,607 | |
Available-for-sale Securities | U.S. Government Bonds | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | U.S. Government Bonds | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Municipal Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 14,089 | |
Available-for-sale Securities | Municipal Obligations | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Municipal Obligations | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 14,089 | |
Available-for-sale Securities | Municipal Obligations | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Corporate Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 41,773 | |
Available-for-sale Securities | Corporate Obligations | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | |
Available-for-sale Securities | Corporate Obligations | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 41,773 | |
Available-for-sale Securities | Corporate Obligations | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | $ 0 |
Financial Instruments And In_11
Financial Instruments And Investments Transfers Between Levels (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Description | no | no | no | no | no | no |
Fair Value, Assets, Level 2 to Level 1 Transfers, Description | no | no | no | no | no | no |
Fair Value, Asset, Level 3 Purchases, (Sales), Issuances, (Settlements) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Long-Term Debt and Financing _2
Long-Term Debt and Financing Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | May 22, 2019 | Apr. 01, 2019 | Feb. 01, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 350,000 | ||||
Potential borrowing capacity of indenture | $ 200,000 | ||||
7.25% 2009 Series A Refunding Bonds, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||
7.25% 2009 Series B Refunding Bonds, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||||
Pollution Control Bonds | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 159,800 | ||||
Long-term Debt, Subject for Redemption | $ 100,600 | ||||
Pollution Control Bonds | 7.25% 2009 Series A Refunding Bonds, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 63,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | 7.25% | |||
Debt Instrument, Repurchased Face Amount | $ 63,500 | ||||
Pollution Control Bonds | 7.25% 2009 Series B Refunding Bonds, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 37,100 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | 7.25% | |||
Debt Instrument, Repurchased Face Amount | $ 37,100 |
Agreement and Plan of Merger Ag
Agreement and Plan of Merger Agreement and Plan of Merger (Details) $ / shares in Units, $ in Millions | Nov. 07, 2019 | Sep. 30, 2019USD ($)$ / shares |
Business Combination | ||
Business Acquisition, Share Price | $ / shares | $ 68.25 | |
Contract Extension Period | 3 months | |
El Paso Electric Company | ||
Business Combination | ||
Business Combination, Merger Agreement, Potential Termination Fee | $ 85 | |
Sun Jupiter Holdings LLC | ||
Business Combination | ||
Business Combination, Merger Agreement, Potential Termination Fee | $ 170 | |
Subsequent Event | ||
Business Combination | ||
Loss Contingency, Number of Plaintiffs | 3 | |
U.S. District Court for the Southern District of New York | Subsequent Event | ||
Business Combination | ||
Loss Contingency, Number of Plaintiffs | 2 | |
U.S. District Court for the District of Delaware | Subsequent Event | ||
Business Combination | ||
Loss Contingency, Number of Plaintiffs | 1 |