[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File | Name of Registrants, State of Incorporation, | I.R.S. Employer | ||
Number | Address and Telephone Number | Identification No. | ||
001-32462 | PNM Resources, Inc. | 85-0468296 | ||
(A New Mexico Corporation) | ||||
414 Silver Ave. SW | ||||
Albuquerque, New Mexico 87102-3289 | ||||
(505) 241-2700 | ||||
001-06986 | Public Service Company of New Mexico | 85-0019030 | ||
(A New Mexico Corporation) | ||||
414 Silver Ave. SW | ||||
Albuquerque, New Mexico 87102-3289 | ||||
(505) 241-2700 | ||||
002-97230 | Texas-New Mexico Power Company | 75-0204070 | ||
(A Texas Corporation) | ||||
577 N. Garden Ridge Blvd. | ||||
Lewisville, Texas 75067 | ||||
(972) 420-4189 |
PNM Resources, Inc. (“PNMR”) | YES | ü | NO | ||
Public Service Company of New Mexico (“PNM”) | YES | ü | NO | ||
Texas-New Mexico Power Company (“TNMP”) | YES | NO | ü |
PNMR | YES | ü | NO | ||
PNM | YES | ü | NO | ||
TNMP | YES | ü | NO |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller Reporting Company | |||||||||||||
PNMR | ü | |||||||||||||||
PNM | ü | |||||||||||||||
TNMP | ü |
Page No. | |
ITEM 5. OTHER INFORMATION | |
Definitions: | ||
ABCWUA | Albuquerque-Bernalillo County Water Utility Authority | |
Afton | Afton Generating Station | |
AFUDC | Allowance for Funds Used During Construction | |
ALJ | Administrative Law Judge | |
AMS | Advanced Meter System | |
AOCI | Accumulated Other Comprehensive Income | |
APS | Arizona Public Service Company, the operator and a co-owner of PVNGS and Four Corners | |
ASU | Accounting Standards Update | |
BACT | Best Available Control Technology | |
BART | Best Available Retrofit Technology | |
BDT | Balanced Draft Technology | |
BHP | BHP Billiton, Ltd, the parent of SJCC | |
Board | Board of Directors of PNMR | |
BTU | British Thermal Unit | |
CAA | Clean Air Act | |
CCB | Coal Combustion Byproducts | |
CCN | Certificate of Convenience and Necessity | |
CO2 | Carbon Dioxide | |
COFA | Capacity Option and Funding Agreement | |
CSA | Coal Supply Agreement | |
CTC | Competition Transition Charge | |
D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit | |
Delta | Delta-Person Generating Station, now known as Rio Bravo | |
DOE | United States Department of Energy | |
DOI | United States Department of Interior | |
EGU | Electric Generating Unit | |
EIB | New Mexico Environmental Improvement Board | |
EIP | Eastern Interconnection Project | |
EIS | Environmental Impact Statement | |
EPA | United States Environmental Protection Agency | |
EPE | El Paso Electric | |
ERCOT | Electric Reliability Council of Texas | |
ESA | Endangered Species Act | |
Exchange Act | Securities Exchange Act of 1934 | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
FIP | Federal Implementation Plan | |
Four Corners | Four Corners Power Plant | |
FPPAC | Fuel and Purchased Power Adjustment Clause | |
FTY | Future Test Year | |
GAAP | Generally Accepted Accounting Principles in the United States of America | |
Gallup | City of Gallup, New Mexico | |
GHG | Greenhouse Gas Emissions | |
GWh | Gigawatt hours | |
IBEW | International Brotherhood of Electrical Workers | |
IRP | Integrated Resource Plan | |
IRS | Internal Revenue Service |
ISFSI | Independent Spent Fuel Storage Installation | |
KW | Kilowatt | |
KWh | Kilowatt Hour | |
Lightning Dock Geothermal | Lightning Dock geothermal power facility, also known as the Dale Burgett Geothermal Plant | |
Lordsburg | Lordsburg Generating Station | |
Luna | Luna Energy Facility | |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
MMBTU | Million BTUs | |
Moody’s | Moody’s Investor Services, Inc. | |
MW | Megawatt | |
MWh | Megawatt Hour | |
NAAQS | National Ambient Air Quality Standards | |
Navajo Acts | Navajo Nation Air Pollution Prevention and Control Act, Navajo Nation Safe Drinking Water Act, and Navajo Nation Pesticide Act | |
NDT | Nuclear Decommissioning Trusts for PVNGS | |
NEC | Navopache Electric Cooperative, Inc. | |
NEPA | National Environmental Policy Act | |
NERC | North American Electric Reliability Corporation | |
New Mexico Wind | New Mexico Wind Energy Center | |
NMAG | New Mexico Attorney General | |
NMED | New Mexico Environment Department | |
NMIEC | New Mexico Industrial Energy Consumers Inc. | |
NMPRC | New Mexico Public Regulation Commission | |
NOx | Nitrogen Oxides | |
NOPR | Notice of Proposed Rulemaking | |
NRC | United States Nuclear Regulatory Commission | |
NSPS | New Source Performance Standards | |
NSR | New Source Review | |
OCI | Other Comprehensive Income | |
OPEB | Other Post Employment Benefits | |
OSM | United States Office of Surface Mining Reclamation and Enforcement | |
PCRBs | Pollution Control Revenue Bonds | |
PNM | Public Service Company of New Mexico and Subsidiaries | |
PNM 2013 Term Loan Agreement | PNM’s $75.0 Million Unsecured Term Loan | |
PNM 2014 Term Loan Agreement | PNM’s $175.0 Million Unsecured Term Loan | |
PNM Multi-draw Term Loan | PNM’s $125.0 Million Unsecured Multi-draw Term Loan Facility | |
PNM New Mexico Credit Facility | PNM’s $50.0 Million Unsecured Revolving Credit Facility | |
PNM Revolving Credit Facility | PNM’s $400.0 Million Unsecured Revolving Credit Facility | |
PNMR | PNM Resources, Inc. and Subsidiaries | |
PNMR 2015 Term Loan Agreement | PNMR’s $150.0 Million Unsecured Term Loan | |
PNMR Development | PNMR Development and Management Company, an unregulated wholly-owned subsidiary of PNMR | |
PNMR Revolving Credit Facility | PNMR’s $300.0 Million Unsecured Revolving Credit Facility | |
PNMR Term Loan Agreement | PNMR’s $100.0 Million Unsecured Term Loan |
PPA | Power Purchase Agreement | |
PSD | Prevention of Significant Deterioration | |
PUCT | Public Utility Commission of Texas | |
PV | Photovoltaic | |
PVNGS | Palo Verde Nuclear Generating Station | |
RA | San Juan Project Restructuring Agreement | |
RCRA | Resource Conservation and Recovery Act | |
RCT | Reasonable Cost Threshold | |
REA | New Mexico’s Renewable Energy Act of 2004 | |
REC | Renewable Energy Certificates | |
Red Mesa Wind | Red Mesa Wind Energy Center | |
REP | Retail Electricity Provider | |
Rio Bravo | Rio Bravo Generating Station, formerly known as Delta | |
RMC | Risk Management Committee | |
ROE | Return on Equity | |
RPS | Renewable Energy Portfolio Standard | |
RSIP | Revised State Implementation Plan | |
S&P | Standard and Poor’s Ratings Services | |
SCE | Southern California Edison Company | |
SCPPA | Southern California Public Power Authority | |
SCR | Selective Catalytic Reduction | |
SEC | United States Securities and Exchange Commission | |
SIP | State Implementation Plan | |
SJCC | San Juan Coal Company | |
SJGS | San Juan Generating Station | |
SJPPA | San Juan Project Participation Agreement | |
SNCR | Selective Non-Catalytic Reduction | |
SO2 | Sulfur Dioxide | |
SPS | Southwestern Public Service Company | |
TECA | Texas Electric Choice Act | |
Tenth Circuit | United States Court of Appeals for the Tenth Circuit | |
TNMP | Texas-New Mexico Power Company and Subsidiaries | |
TNMP 2011 Term Loan Agreement | TNMP’s $50.0 Million Secured Term Loan | |
TNMP Revolving Credit Facility | TNMP’s $75.0 Million Secured Revolving Credit Facility | |
TNP | TNP Enterprises, Inc. and Subsidiaries | |
Tucson | Tucson Electric Power Company | |
UG-CSA | Underground Coal Sales Agreement | |
Valencia | Valencia Energy Facility | |
VaR | Value at Risk | |
WACC | Weighted Average Cost of Capital | |
WEG | WildEarth Guardians |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Electric Operating Revenues | $ | 352,887 | $ | 346,160 | $ | 685,755 | $ | 675,057 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 114,038 | 109,419 | 229,683 | 222,033 | |||||||||||
Administrative and general | 39,928 | 45,235 | 83,787 | 89,093 | |||||||||||
Energy production costs | 44,790 | 45,846 | 87,459 | 93,134 | |||||||||||
Regulatory disallowances | 1,529 | — | 1,744 | — | |||||||||||
Depreciation and amortization | 46,049 | 42,163 | 91,510 | 84,130 | |||||||||||
Transmission and distribution costs | 16,868 | 16,068 | 33,354 | 32,974 | |||||||||||
Taxes other than income taxes | 17,271 | 16,133 | 36,234 | 33,644 | |||||||||||
Total operating expenses | 280,473 | 274,864 | 563,771 | 555,008 | |||||||||||
Operating income | 72,414 | 71,296 | 121,984 | 120,049 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 1,941 | 2,040 | 3,691 | 4,158 | |||||||||||
Gains on available-for-sale securities | 5,556 | 4,699 | 9,580 | 7,272 | |||||||||||
Other income | 5,717 | 3,180 | 10,679 | 4,754 | |||||||||||
Other (deductions) | (3,707 | ) | (2,169 | ) | (7,370 | ) | (5,102 | ) | |||||||
Net other income and deductions | 9,507 | 7,750 | 16,580 | 11,082 | |||||||||||
Interest Charges | 28,913 | 29,972 | 59,186 | 59,506 | |||||||||||
Earnings before Income Taxes | 53,008 | 49,074 | 79,378 | 71,625 | |||||||||||
Income Taxes | 17,353 | 15,893 | 25,870 | 22,313 | |||||||||||
Net Earnings | 35,655 | 33,181 | 53,508 | 49,312 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,850 | ) | (3,908 | ) | (7,231 | ) | (7,439 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Net Earnings Attributable to PNMR | $ | 31,673 | $ | 29,141 | $ | 46,013 | $ | 41,609 | |||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | $ | 0.40 | $ | 0.37 | $ | 0.58 | $ | 0.52 | |||||||
Diluted | $ | 0.40 | $ | 0.36 | $ | 0.57 | $ | 0.52 | |||||||
Dividends Declared per Common Share | $ | 0.200 | $ | 0.185 | $ | 0.400 | $ | 0.370 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Net Earnings | $ | 35,655 | $ | 33,181 | $ | 53,508 | $ | 49,312 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||
Unrealized Gain on Available-for-Sale Securities: | |||||||||||||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $266, $(2,602), $(2,413) and $(3,809) | (413 | ) | 3,999 | 3,744 | 6,046 | ||||||||||
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $3,278, $2,210, $4,913 and $3,488 | (5,087 | ) | (3,397 | ) | (7,624 | ) | (5,369 | ) | |||||||
Pension Liability Adjustment: | |||||||||||||||
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax expense (benefit) of $(583), $(508), $(1,166) and $(1,016) | 905 | 780 | 1,810 | 1,560 | |||||||||||
Fair Value Adjustment for Cash Flow Hedges: | |||||||||||||||
Change in fair market value, net of income tax (expense) benefit of $0, $0, $0 and $53 | — | — | — | (100 | ) | ||||||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $0, $(42), $0 and $(61) | — | 79 | — | 115 | |||||||||||
Total Other Comprehensive Income (Loss) | (4,595 | ) | 1,461 | (2,070 | ) | 2,252 | |||||||||
Comprehensive Income | 31,060 | 34,642 | 51,438 | 51,564 | |||||||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (3,850 | ) | (3,908 | ) | (7,231 | ) | (7,439 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Comprehensive Income Attributable to PNMR | $ | 27,078 | $ | 30,602 | $ | 43,943 | $ | 43,861 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 53,508 | $ | 49,312 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 108,891 | 103,436 | |||||
Deferred income tax expense | 26,675 | 24,252 | |||||
Net unrealized (gains) losses on commodity derivatives | 6,127 | 3,187 | |||||
Realized (gains) on available-for-sale securities | (9,580 | ) | (7,272 | ) | |||
Stock based compensation expense | 2,761 | 3,399 | |||||
Regulatory disallowances | 1,744 | — | |||||
Other, net | (1,926 | ) | 38 | ||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (20,899 | ) | (17,543 | ) | |||
Materials, supplies, and fuel stock | (8,285 | ) | 6,346 | ||||
Other current assets | 16,342 | (20,688 | ) | ||||
Other assets | 8,062 | 18,237 | |||||
Accounts payable | (20,777 | ) | (29,384 | ) | |||
Accrued interest and taxes | (4,380 | ) | (2,830 | ) | |||
Other current liabilities | (10,195 | ) | (3,341 | ) | |||
Other liabilities | (38,394 | ) | (3,343 | ) | |||
Net cash flows from operating activities | 109,674 | 123,806 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to utility and non-utility plant | (232,964 | ) | (160,893 | ) | |||
Proceeds from sales of available-for-sale securities | 94,522 | 53,119 | |||||
Purchases of available-for-sale securities | (94,905 | ) | (54,338 | ) | |||
Return of principal on PVNGS lessor notes | 14,188 | 10,231 | |||||
Other, net | 2,694 | 750 | |||||
Net cash flows from investing activities | (216,465 | ) | (151,131 | ) |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Cash Flows From Financing Activities: | |||||||
Short-term borrowings (repayments), net | 82,000 | (44,200 | ) | ||||
Long-term borrowings | 214,300 | 255,000 | |||||
Repayment of long-term debt | (158,066 | ) | (125,000 | ) | |||
Proceeds from stock option exercise | 7,347 | 4,446 | |||||
Awards of common stock | (18,814 | ) | (13,939 | ) | |||
Dividends paid | (32,125 | ) | (29,732 | ) | |||
Valencia’s transactions with its owner | (7,614 | ) | (8,189 | ) | |||
Other, net | (2,107 | ) | (1,482 | ) | |||
Net cash flows from financing activities | 84,921 | 36,904 | |||||
Change in Cash and Cash Equivalents | (21,870 | ) | 9,579 | ||||
Cash and Cash Equivalents at Beginning of Period | 28,274 | 2,533 | |||||
Cash and Cash Equivalents at End of Period | $ | 6,404 | $ | 12,112 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 56,309 | $ | 54,712 | |||
Income taxes paid (refunded), net | $ | (1,231 | ) | $ | (2,534 | ) | |
Supplemental schedule of noncash investing and financing activities: | |||||||
Changes in accrued plant additions | $ | (743 | ) | $ | (7,909 | ) |
June 30, 2015 | December 31, 2014 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 6,404 | $ | 28,274 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,363 and $1,466 | 94,703 | 87,038 | |||||
Unbilled revenues | 75,527 | 63,719 | |||||
Other receivables | 30,027 | 39,857 | |||||
Materials, supplies, and fuel stock | 71,913 | 63,628 | |||||
Regulatory assets | 23,142 | 47,855 | |||||
Commodity derivative instruments | 4,550 | 11,232 | |||||
Income taxes receivable | 5,934 | 6,360 | |||||
Current portion of accumulated deferred income taxes | 26,383 | 26,383 | |||||
Other current assets | 71,482 | 58,471 | |||||
Total current assets | 410,065 | 432,817 | |||||
Other Property and Investments: | |||||||
Investment in PVNGS lessor notes | — | 9,538 | |||||
Available-for-sale securities | 253,550 | 250,145 | |||||
Other investments | 507 | 1,762 | |||||
Non-utility property | 3,404 | 3,406 | |||||
Total other property and investments | 257,461 | 264,851 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 6,085,078 | 5,941,581 | |||||
Less accumulated depreciation and amortization | 2,017,711 | 1,939,760 | |||||
4,067,367 | 4,001,821 | ||||||
Construction work in progress | 261,049 | 190,389 | |||||
Nuclear fuel, net of accumulated amortization of $45,138 and $44,507 | 81,275 | 77,796 | |||||
Net utility plant | 4,409,691 | 4,270,006 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 474,426 | 491,007 | |||||
Goodwill | 278,297 | 278,297 | |||||
Other deferred charges | 97,078 | 92,347 | |||||
Total deferred charges and other assets | 849,801 | 861,651 | |||||
$ | 5,927,018 | $ | 5,829,325 |
June 30, 2015 | December 31, 2014 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 187,600 | $ | 105,600 | |||
Current installments of long-term debt | 300,000 | 333,066 | |||||
Accounts payable | 88,509 | 110,029 | |||||
Customer deposits | 12,711 | 12,555 | |||||
Accrued interest and taxes | 49,452 | 53,863 | |||||
Regulatory liabilities | 2,202 | 1,703 | |||||
Commodity derivative instruments | 1,153 | 1,209 | |||||
Dividends declared | 132 | 16,063 | |||||
Other current liabilities | 59,345 | 70,194 | |||||
Total current liabilities | 701,104 | 704,282 | |||||
Long-term Debt | 1,731,158 | 1,642,024 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 918,519 | 891,111 | |||||
Regulatory liabilities | 470,558 | 466,143 | |||||
Asset retirement obligations | 108,406 | 104,170 | |||||
Accrued pension liability and postretirement benefit cost | 70,583 | 110,738 | |||||
Commodity derivative instruments | — | 477 | |||||
Other deferred credits | 101,282 | 103,759 | |||||
Total deferred credits and other liabilities | 1,669,348 | 1,676,398 | |||||
Total liabilities | 4,101,610 | 4,022,704 | |||||
Commitments and Contingencies (See Note 11) | |||||||
Cumulative Preferred Stock of Subsidiary | |||||||
without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNMR common stockholders’ equity: | |||||||
Common stock outstanding (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,165,003 | 1,173,845 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (63,825 | ) | (61,755 | ) | |||
Retained earnings | 639,538 | 609,456 | |||||
Total PNMR common stockholders’ equity | 1,740,716 | 1,721,546 | |||||
Non-controlling interest in Valencia | 73,163 | 73,546 | |||||
Total equity | 1,813,879 | 1,795,092 | |||||
$ | 5,927,018 | $ | 5,829,325 | ||||
Attributable to PNMR | Non- controlling Interest in Valencia | ||||||||||||||||||||||
Common Stock | AOCI | Retained Earnings | Total PNMR Common Stockholder’s Equity | Total Equity | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,173,845 | $ | (61,755 | ) | $ | 609,456 | $ | 1,721,546 | $ | 73,546 | $ | 1,795,092 | ||||||||||
Proceeds from stock option exercise | 7,347 | — | — | 7,347 | — | 7,347 | |||||||||||||||||
Awards of common stock | (18,814 | ) | — | — | (18,814 | ) | — | (18,814 | ) | ||||||||||||||
Excess tax (shortfall) from stock-based payment arrangements | (136 | ) | — | — | (136 | ) | — | (136 | ) | ||||||||||||||
Stock based compensation expense | 2,761 | — | — | 2,761 | — | 2,761 | |||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | (7,614 | ) | (7,614 | ) | |||||||||||||||
Net earnings before subsidiary preferred stock dividends | — | — | 46,277 | 46,277 | 7,231 | 53,508 | |||||||||||||||||
Subsidiary preferred stock dividends | — | — | (264 | ) | (264 | ) | — | (264 | ) | ||||||||||||||
Total other comprehensive income | — | (2,070 | ) | — | (2,070 | ) | — | (2,070 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (15,931 | ) | (15,931 | ) | — | (15,931 | ) | ||||||||||||||
Balance at June 30, 2015 | $ | 1,165,003 | $ | (63,825 | ) | $ | 639,538 | $ | 1,740,716 | $ | 73,163 | $ | 1,813,879 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Electric Operating Revenues | $ | 275,450 | $ | 275,704 | $ | 537,390 | $ | 538,441 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 95,728 | 92,642 | 193,594 | 189,268 | |||||||||||
Administrative and general | 36,956 | 40,603 | 76,524 | 79,213 | |||||||||||
Energy production costs | 44,790 | 45,846 | 87,459 | 93,134 | |||||||||||
Regulatory disallowances | 1,529 | — | 1,744 | — | |||||||||||
Depreciation and amortization | 29,002 | 27,023 | 57,405 | 54,105 | |||||||||||
Transmission and distribution costs | 10,272 | 10,183 | 21,040 | 21,510 | |||||||||||
Taxes other than income taxes | 9,994 | 9,601 | 20,790 | 20,100 | |||||||||||
Total operating expenses | 228,271 | 225,898 | 458,556 | 457,330 | |||||||||||
Operating income | 47,179 | 49,806 | 78,834 | 81,111 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 1,946 | 2,065 | 3,717 | 4,193 | |||||||||||
Gains on available-for-sale securities | 5,556 | 4,699 | 9,580 | 7,272 | |||||||||||
Other income | 4,901 | 2,443 | 8,292 | 3,555 | |||||||||||
Other (deductions) | (3,011 | ) | (1,630 | ) | (4,615 | ) | (3,647 | ) | |||||||
Net other income and deductions | 9,392 | 7,577 | 16,974 | 11,373 | |||||||||||
Interest Charges | 19,681 | 20,023 | 39,640 | 39,835 | |||||||||||
Earnings before Income Taxes | 36,890 | 37,360 | 56,168 | 52,649 | |||||||||||
Income Taxes | 11,527 | 13,106 | 17,302 | 17,189 | |||||||||||
Net Earnings | 25,363 | 24,254 | 38,866 | 35,460 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,850 | ) | (3,908 | ) | (7,231 | ) | (7,439 | ) | |||||||
Net Earnings Attributable to PNM | 21,513 | 20,346 | 31,635 | 28,021 | |||||||||||
Preferred Stock Dividends Requirements | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Net Earnings Available for PNM Common Stock | $ | 21,381 | $ | 20,214 | $ | 31,371 | $ | 27,757 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Net Earnings | $ | 25,363 | $ | 24,254 | $ | 38,866 | $ | 35,460 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||
Unrealized Gain on Available-for-Sale Securities: | |||||||||||||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $266, $(2,602), $(2,413) and $(3,809) | (413 | ) | 3,999 | 3,744 | 6,046 | ||||||||||
Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $3,278, $2,210, $4,913 and $3,488 | (5,087 | ) | (3,397 | ) | (7,624 | ) | (5,369 | ) | |||||||
Pension Liability Adjustment: | |||||||||||||||
Reclassification adjustment for amortization of experience (gain) loss recognized as net periodic benefit cost, net of income tax expense (benefit) of $(583), $(508), $(1,166) and $(1,016) | 905 | 780 | 1,810 | 1,560 | |||||||||||
Total Other Comprehensive Income (Loss) | (4,595 | ) | 1,382 | (2,070 | ) | 2,237 | |||||||||
Comprehensive Income | 20,768 | 25,636 | 36,796 | 37,697 | |||||||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (3,850 | ) | (3,908 | ) | (7,231 | ) | (7,439 | ) | |||||||
Comprehensive Income Attributable to PNM | $ | 16,918 | $ | 21,728 | $ | 29,565 | $ | 30,258 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 38,866 | $ | 35,460 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 73,701 | 71,327 | |||||
Deferred income tax expense | 18,464 | 19,716 | |||||
Net unrealized (gains) losses on commodity derivatives | 6,127 | 3,187 | |||||
Realized (gains) on available-for-sale securities | (9,580 | ) | (7,272 | ) | |||
Regulatory disallowances | 1,744 | — | |||||
Other, net | (2,958 | ) | 193 | ||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (15,283 | ) | (13,885 | ) | |||
Materials, supplies, and fuel stock | (7,860 | ) | 6,447 | ||||
Other current assets | 15,882 | (22,588 | ) | ||||
Other assets | 7,568 | 18,790 | |||||
Accounts payable | (21,315 | ) | (26,737 | ) | |||
Accrued interest and taxes | 412 | (1,575 | ) | ||||
Other current liabilities | (3,259 | ) | 3,943 | ||||
Other liabilities | (34,729 | ) | (3,193 | ) | |||
Net cash flows from operating activities | 67,780 | 83,813 | |||||
Cash Flows From Investing Activities: | |||||||
Utility plant additions | (172,937 | ) | (92,567 | ) | |||
Proceeds from sales of available-for-sale securities | 94,522 | 53,119 | |||||
Purchases of available-for-sale securities | (94,905 | ) | (54,338 | ) | |||
Return of principal on PVNGS lessor notes | 14,188 | 10,231 | |||||
Other, net | 2,859 | (70 | ) | ||||
Net cash flows from investing activities | (156,273 | ) | (83,625 | ) |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Cash Flows From Financing Activities: | |||||||
Short-term borrowings (repayments), net | 51,100 | (49,200 | ) | ||||
Short-term borrowings (repayments), affiliate, net | — | (32,500 | ) | ||||
Long-term borrowings | 64,300 | 175,000 | |||||
Repayment of long-term debt | (39,300 | ) | (75,000 | ) | |||
Valencia’s transactions with its owner | (7,614 | ) | (8,189 | ) | |||
Dividends paid | (264 | ) | (264 | ) | |||
Other, net | (1,659 | ) | (700 | ) | |||
Net cash flows from financing activities | 66,563 | 9,147 | |||||
Change in Cash and Cash Equivalents | (21,930 | ) | 9,335 | ||||
Cash and Cash Equivalents at Beginning of Period | 25,480 | 21 | |||||
Cash and Cash Equivalents at End of Period | $ | 3,550 | $ | 9,356 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 36,977 | $ | 36,601 | |||
Income taxes paid (refunded), net | $ | (1,450 | ) | $ | (215 | ) | |
Supplemental schedule of noncash investing activities: | |||||||
Changes in accrued plant additions | $ | 2,813 | $ | (5,595 | ) |
June 30, 2015 | December 31, 2014 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 3,550 | $ | 25,480 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,363 and $1,466 | 70,342 | 67,622 | |||||
Unbilled revenues | 65,277 | 54,140 | |||||
Other receivables | 29,751 | 37,622 | |||||
Affiliate receivables | 10,746 | 8,853 | |||||
Materials, supplies, and fuel stock | 68,719 | 60,859 | |||||
Regulatory assets | 17,699 | 43,980 | |||||
Commodity derivative instruments | 4,550 | 11,232 | |||||
Income taxes receivable | 5,816 | 6,105 | |||||
Current portion of accumulated deferred income taxes | 12,418 | 12,418 | |||||
Other current assets | 64,082 | 53,095 | |||||
Total current assets | 352,950 | 381,406 | |||||
Other Property and Investments: | |||||||
Investment in PVNGS lessor notes | — | 9,538 | |||||
Available-for-sale securities | 253,550 | 250,145 | |||||
Other investments | 265 | 397 | |||||
Non-utility property | 96 | 96 | |||||
Total other property and investments | 253,911 | 260,176 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 4,698,267 | 4,581,066 | |||||
Less accumulated depreciation and amortization | 1,542,034 | 1,486,406 | |||||
3,156,233 | 3,094,660 | ||||||
Construction work in progress | 217,860 | 169,673 | |||||
Nuclear fuel, net of accumulated amortization of $45,138 and $44,507 | 81,275 | 77,796 | |||||
Net utility plant | 3,455,368 | 3,342,129 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 344,472 | 357,045 | |||||
Goodwill | 51,632 | 51,632 | |||||
Other deferred charges | 85,946 | 81,264 | |||||
Total deferred charges and other assets | 482,050 | 489,941 | |||||
$ | 4,544,279 | $ | 4,473,652 | ||||
June 30, 2015 | December 31, 2014 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 51,100 | $ | — | |||
Current installments of long-term debt | 300,000 | 214,300 | |||||
Accounts payable | 67,553 | 86,055 | |||||
Affiliate payables | 20,991 | 18,232 | |||||
Customer deposits | 12,711 | 12,555 | |||||
Accrued interest and taxes | 29,817 | 29,298 | |||||
Regulatory liabilities | 2,202 | 1,703 | |||||
Commodity derivative instruments | 1,153 | 1,209 | |||||
Dividends declared | 20,132 | 132 | |||||
Other current liabilities | 45,276 | 52,053 | |||||
Total current liabilities | 550,935 | 415,537 | |||||
Long-term Debt | 1,215,676 | 1,276,357 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 734,871 | 715,814 | |||||
Regulatory liabilities | 431,552 | 425,481 | |||||
Asset retirement obligations | 107,377 | 103,182 | |||||
Accrued pension liability and postretirement benefit cost | 63,340 | 102,850 | |||||
Commodity derivative instruments | — | 477 | |||||
Other deferred credits | 83,679 | 86,023 | |||||
Total deferred credits and liabilities | 1,420,819 | 1,433,827 | |||||
Total liabilities | 3,187,430 | 3,125,721 | |||||
Commitments and Contingencies (See Note 11) | |||||||
Cumulative Preferred Stock | |||||||
without mandatory redemption requirements ($100 stated value; 10,000,000 authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNM common stockholder’s equity: | |||||||
Common stock outstanding (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares) | 1,061,776 | 1,061,776 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (63,825 | ) | (61,755 | ) | |||
Retained earnings | 274,206 | 262,835 | |||||
Total PNM common stockholder’s equity | 1,272,157 | 1,262,856 | |||||
Non-controlling interest in Valencia | 73,163 | 73,546 | |||||
Total equity | 1,345,320 | 1,336,402 | |||||
$ | 4,544,279 | $ | 4,473,652 |
Attributable to PNM | |||||||||||||||||||||||
Total PNM Common Stockholder’s Equity | Non- controlling Interest in Valencia | ||||||||||||||||||||||
Common Stock | AOCI | Retained Earnings | Total Equity | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,061,776 | $ | (61,755 | ) | $ | 262,835 | $ | 1,262,856 | $ | 73,546 | $ | 1,336,402 | ||||||||||
Valencia’s transactions with its owner | — | — | — | — | (7,614 | ) | (7,614 | ) | |||||||||||||||
Net earnings | — | — | 31,635 | 31,635 | 7,231 | 38,866 | |||||||||||||||||
Total other comprehensive income | — | (2,070 | ) | — | (2,070 | ) | — | (2,070 | ) | ||||||||||||||
Dividends declared on preferred stock | — | — | (264 | ) | (264 | ) | — | (264 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (20,000 | ) | (20,000 | ) | — | (20,000 | ) | ||||||||||||||
Balance at June 30, 2015 | $ | 1,061,776 | $ | (63,825 | ) | $ | 274,206 | $ | 1,272,157 | $ | 73,163 | $ | 1,345,320 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Electric Operating Revenues | $ | 77,437 | $ | 70,456 | $ | 148,365 | $ | 136,616 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 18,310 | 16,777 | 36,089 | 32,765 | |||||||||||
Administrative and general | 8,042 | 8,768 | 17,875 | 18,609 | |||||||||||
Depreciation and amortization | 13,591 | 12,003 | 27,049 | 23,844 | |||||||||||
Transmission and distribution costs | 6,596 | 5,885 | 12,314 | 11,464 | |||||||||||
Taxes other than income taxes | 6,169 | 5,758 | 12,378 | 11,408 | |||||||||||
Total operating expenses | 52,708 | 49,191 | 105,705 | 98,090 | |||||||||||
Operating income | 24,729 | 21,265 | 42,660 | 38,526 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Other income | 792 | 586 | 2,332 | 1,006 | |||||||||||
Other (deductions) | 1 | (72 | ) | (248 | ) | (304 | ) | ||||||||
Net other income and deductions | 793 | 514 | 2,084 | 702 | |||||||||||
Interest Charges | 6,856 | 6,655 | 13,781 | 13,252 | |||||||||||
Earnings before Income Taxes | 18,666 | 15,124 | 30,963 | 25,976 | |||||||||||
Income Taxes | 6,801 | 5,590 | 11,404 | 9,640 | |||||||||||
Net Earnings | $ | 11,865 | $ | 9,534 | $ | 19,559 | $ | 16,336 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Net Earnings | $ | 11,865 | $ | 9,534 | $ | 19,559 | $ | 16,336 | |||||||
Other Comprehensive Income: | |||||||||||||||
Fair Value Adjustment for Cash Flow Hedges: | |||||||||||||||
Change in fair market value, net of income tax (expense) benefit of $0, $0, $0 and $53 | — | — | — | (100 | ) | ||||||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $0, $(42), $0 and $(61) | — | 79 | — | 115 | |||||||||||
Total Other Comprehensive Income | — | 79 | — | 15 | |||||||||||
Comprehensive Income | $ | 11,865 | $ | 9,613 | $ | 19,559 | $ | 16,351 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 19,559 | $ | 16,336 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 27,839 | 25,728 | |||||
Deferred income tax expense | 6,175 | 6,162 | |||||
Other, net | (90 | ) | (38 | ) | |||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (5,616 | ) | (3,658 | ) | |||
Materials and supplies | (425 | ) | (101 | ) | |||
Other current assets | (1,264 | ) | (803 | ) | |||
Other assets | 68 | (273 | ) | ||||
Accounts payable | 385 | 1,381 | |||||
Accrued interest and taxes | (173 | ) | (726 | ) | |||
Other current liabilities | 2,530 | 2,167 | |||||
Other liabilities | (4,132 | ) | 365 | ||||
Net cash flows from operating activities | 44,856 | 46,540 | |||||
Cash Flows From Investing Activities: | |||||||
Utility plant additions | (50,256 | ) | (64,502 | ) | |||
Net cash flows from investing activities | (50,256 | ) | (64,502 | ) | |||
Cash Flow From Financing Activities: | |||||||
Short-term borrowings (repayments), net | 24,000 | — | |||||
Short-term borrowings (repayments) – affiliate, net | (18,600 | ) | (4,200 | ) | |||
Long-term borrowings | — | 80,000 | |||||
Repayment of long-term debt | — | (50,000 | ) | ||||
Dividends paid | — | (6,803 | ) | ||||
Other, net | — | (783 | ) | ||||
Net cash flows from financing activities | 5,400 | 18,214 | |||||
Change in Cash and Cash Equivalents | — | 252 | |||||
Cash and Cash Equivalents at Beginning of Period | 1 | 1 | |||||
Cash and Cash Equivalents at End of Period | $ | 1 | $ | 253 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 12,990 | $ | 11,847 | |||
Income taxes paid (refunded), net | $ | 950 | $ | (304 | ) | ||
Supplemental schedule of noncash investing and financing activities: | |||||||
Changes in accrued plant additions | $ | (2,311 | ) | $ | 1,038 |
June 30, 2015 | December 31, 2014 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1 | $ | 1 | |||
Accounts receivable | 24,361 | 19,416 | |||||
Unbilled revenues | 10,250 | 9,579 | |||||
Other receivables | 712 | 2,063 | |||||
Materials and supplies | 3,194 | 2,769 | |||||
Regulatory assets | 5,443 | 3,875 | |||||
Current portion of accumulated deferred income taxes | 6,398 | 6,398 | |||||
Other current assets | 2,117 | 938 | |||||
Total current assets | 52,476 | 45,039 | |||||
Other Property and Investments: | |||||||
Other investments | 242 | 242 | |||||
Non-utility property | 2,240 | 2,240 | |||||
Total other property and investments | 2,482 | 2,482 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 1,207,232 | 1,182,112 | |||||
Less accumulated depreciation and amortization | 391,169 | 375,407 | |||||
816,063 | 806,705 | ||||||
Construction work in progress | 32,149 | 16,538 | |||||
Net utility plant | 848,212 | 823,243 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 129,954 | 133,962 | |||||
Goodwill | 226,665 | 226,665 | |||||
Other deferred charges | 9,073 | 8,850 | |||||
Total deferred charges and other assets | 365,692 | 369,477 | |||||
$ | 1,268,862 | $ | 1,240,241 |
June 30, 2015 | December 31, 2014 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 29,000 | $ | 5,000 | |||
Short-term debt – affiliate | 4,100 | 22,700 | |||||
Accounts payable | 12,277 | 14,203 | |||||
Affiliate payables | 4,123 | 2,469 | |||||
Accrued interest and taxes | 28,401 |