[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 (Do not check if a smaller reporting company) | Smaller reporting company | Emerging growth company | |||||||||||||||
PNMR | ü | ||||||||||||||||||
PNM | ü | ||||||||||||||||||
TNMP | ü |
Page No. | |
ITEM 5. OTHER INFORMATION | |
Definitions: | ||
2014 IRP | PNM’s 2014 IRP | |
2017 IRP | PNM’s 2017 IRP | |
ABCWUA | Albuquerque Bernalillo County Water Utility Authority | |
Afton | Afton Generating Station | |
AFUDC | Allowance for Funds Used During Construction | |
AMI | Advanced Metering Infrastructure | |
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 | |
Board | Board of Directors of PNMR | |
BTMU | The Bank of Tokyo-Mitsubishi UFJ, Ltd. | |
BTMU Term Loan Agreement | NM Capital’s $125.0 Million Unsecured Term Loan | |
BTU | British Thermal Unit | |
CAA | Clean Air Act | |
CCB | Coal Combustion Byproducts | |
CCN | Certificate of Convenience and Necessity | |
CIAC | Contributions in Aid of Construction | |
CO2 | Carbon Dioxide | |
CSA | Coal Supply Agreement | |
CTC | Competition Transition Charge | |
DC Circuit | United States Court of Appeals for the District of Columbia Circuit | |
DOE | United States Department of Energy | |
DOI | United States Department of Interior | |
EGU | Electric Generating Unit | |
EIS | Environmental Impact Study | |
EPA | United States Environmental Protection Agency | |
ERCOT | Electric Reliability Council of Texas | |
ESA | Endangered Species Act | |
Exchange Act | Securities Exchange Act of 1934 | |
Farmington | The City of Farmington, New Mexico | |
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 | |
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 | |
La Luz | La Luz Generating Station | |
LIBOR | London Interbank Offered Rate | |
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. | |
NEE | New Energy Economy | |
NEPA | National Environmental Policy Act | |
NERC | North American Electric Reliability Corporation | |
New Mexico Wind | New Mexico Wind Energy Center | |
NM 2015 Rate Case | Request for a General Increase in Electric Rates Filed by PNM on August 27, 2015 | |
NM 2016 Rate Case | Request for a General Increase in Electric Rates Filed by PNM on December 7, 2016 | |
NM Capital | NM Capital Utility Corporation, an unregulated wholly-owned subsidiary of PNMR | |
NM Supreme Court | New Mexico Supreme Court | |
NMAG | New Mexico Attorney General | |
NMED | New Mexico Environment Department | |
NMIEC | New Mexico Industrial Energy Consumers Inc. | |
NMMMD | The Mining and Minerals Division of the New Mexico Energy, Minerals and Natural Resources Department | |
NMPRC | New Mexico Public Regulation Commission | |
NOx | Nitrogen Oxides | |
NOPR | Notice of Proposed Rulemaking | |
NPDES | National Pollutant Discharge Elimination System | |
NRC | United States Nuclear Regulatory Commission | |
NSPS | New Source Performance Standards | |
NSR | New Source Review | |
NTEC | Navajo Transitional Energy Company, LLC, an entity owned by the Navajo Nation | |
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, a wholly-owned subsidiary of PNMR | |
PNM 2016 Term Loan Agreement | PNM’s $175.0 Million Unsecured Term Loan | |
PNM 2017 Senior Unsecured Note Agreement | PNM’s Agreement for the sale of Senior Unsecured Notes, aggregating $450.0 million | |
PNM 2017 Term Loan Agreement | PNM’s $200.0 Million Unsecured Term Loan | |
PNM 2018 SUNs | PNM’s Senior Unsecured Notes to be issued under the PNM 2017 Senior Unsecured Note Agreement | |
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 Three-Year Unsecured Term Loan | |
PNMR 2016 One-Year Term Loan | PNMR’s $100.0 Million One-Year Unsecured Term Loan | |
PNMR 2016 Two-Year Term Loan | PNMR’s $100.0 Million Two-Year 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 | |
PPA | Power Purchase Agreement | |
PSA | Power Sales 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 | |
RMC | Risk Management Committee | |
ROE | Return on Equity | |
RPS | Renewable Energy Portfolio Standard | |
S&P | Standard and Poor’s Ratings Services | |
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 |
SNCR | Selective Non-Catalytic Reduction | |
SO2 | Sulfur Dioxide | |
TECA | Texas Electric Choice Act | |
Tenth Circuit | United States Court of Appeals for the Tenth Circuit | |
TNMP | Texas-New Mexico Power Company and Subsidiaries, a wholly-owned subsidiary of TNP | |
TNMP Revolving Credit Facility | TNMP’s $75.0 Million Secured Revolving Credit Facility | |
TNP | TNP Enterprises, Inc. and Subsidiaries, a wholly-owned subsidiary of PNMR | |
Tri-State | Tri-State Generation and Transmission Association, Inc. | |
Tucson | Tucson Electric Power Company | |
UG-CSA | Underground Coal Sales Agreement | |
US Supreme Court | Supreme Court of the United States | |
Valencia | Valencia Energy Facility | |
VaR | Value at Risk | |
VIE | Variable Interest Entity | |
WACC | Weighted Average Cost of Capital | |
WEG | WildEarth Guardians | |
Westmoreland | Westmoreland Coal Company | |
Westmoreland Loan | NM Capital’s $125.0 million loan to WSJ | |
WSJ | Westmoreland San Juan, LLC, an indirect wholly-owned subsidiary of Westmoreland |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Electric Operating Revenues | $ | 362,320 | $ | 315,391 | $ | 692,498 | $ | 626,352 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 104,267 | 81,363 | 207,070 | 173,732 | |||||||||||
Administrative and general | 45,122 | 45,160 | 92,655 | 92,270 | |||||||||||
Energy production costs | 34,393 | 37,881 | 66,180 | 80,567 | |||||||||||
Regulatory disallowances and restructuring costs | — | — | — | 774 | |||||||||||
Depreciation and amortization | 57,625 | 50,955 | 114,008 | 100,784 | |||||||||||
Transmission and distribution costs | 17,031 | 17,315 | 33,508 | 33,909 | |||||||||||
Taxes other than income taxes | 18,777 | 17,895 | 38,012 | 37,987 | |||||||||||
Total operating expenses | 277,215 | 250,569 | 551,433 | 520,023 | |||||||||||
Operating income | 85,105 | 64,822 | 141,065 | 106,329 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 3,885 | 10,194 | 8,766 | 13,815 | |||||||||||
Gains on available-for-sale securities | 5,663 | 4,631 | 12,324 | 10,849 | |||||||||||
Other income | 3,450 | 4,265 | 8,351 | 8,530 | |||||||||||
Other (deductions) | (2,904 | ) | (4,105 | ) | (6,387 | ) | (7,104 | ) | |||||||
Net other income and deductions | 10,094 | 14,985 | 23,054 | 26,090 | |||||||||||
Interest Charges | 32,332 | 33,221 | 64,031 | 64,712 | |||||||||||
Earnings before Income Taxes | 62,867 | 46,586 | 100,088 | 67,707 | |||||||||||
Income Taxes | 21,636 | 15,634 | 32,411 | 22,790 | |||||||||||
Net Earnings | 41,231 | 30,952 | 67,677 | 44,917 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,544 | ) | (3,744 | ) | (6,996 | ) | (7,031 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Net Earnings Attributable to PNMR | $ | 37,555 | $ | 27,076 | $ | 60,417 | $ | 37,622 | |||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | $ | 0.47 | $ | 0.34 | $ | 0.76 | $ | 0.47 | |||||||
Diluted | $ | 0.47 | $ | 0.34 | $ | 0.75 | $ | 0.47 | |||||||
Dividends Declared per Common Share | $ | 0.2425 | $ | 0.2200 | $ | 0.4850 | $ | 0.4400 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Net Earnings | $ | 41,231 | $ | 30,952 | $ | 67,677 | $ | 44,917 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||
Unrealized Gains on Available-for-Sale Securities: | |||||||||||||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $(2,777), $2,791, $(5,783) and $661 | 4,378 | (4,362 | ) | 9,120 | (1,034 | ) | |||||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $1,629, $(2,404), $2,701 and $1,970 | (2,569 | ) | 3,757 | (4,260 | ) | (3,079 | ) | ||||||||
Pension Liability Adjustment: | |||||||||||||||
Reclassification adjustment for amortization of experience (gains) losses recognized as net periodic benefit cost, net of income tax expense (benefit) of $(626), $(537), $(1,252) and $(1,074) | 987 | 839 | 1,974 | 1,678 | |||||||||||
Fair Value Adjustment for Cash Flow Hedges: | |||||||||||||||
Change in fair market value, net of income tax (expense) benefit of $40, $178, $112 and $681 | (63 | ) | (279 | ) | (176 | ) | (1,065 | ) | |||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $(82), $(88), $(125) and $(145) | 130 | 137 | 198 | 226 | |||||||||||
Total Other Comprehensive Income (Loss) | 2,863 | 92 | 6,856 | (3,274 | ) | ||||||||||
Comprehensive Income | 44,094 | 31,044 | 74,533 | 41,643 | |||||||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (3,544 | ) | (3,744 | ) | (6,996 | ) | (7,031 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Comprehensive Income Attributable to PNMR | $ | 40,418 | $ | 27,168 | $ | 67,273 | $ | 34,348 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 67,677 | $ | 44,917 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 131,861 | 116,785 | |||||
Deferred income tax expense | 32,443 | 22,869 | |||||
Net unrealized (gains) losses on commodity derivatives | 939 | 5,219 | |||||
Realized (gains) on available-for-sale securities | (12,324 | ) | (10,849 | ) | |||
Stock based compensation expense | 4,561 | 3,543 | |||||
Regulatory disallowances and restructuring costs | — | 774 | |||||
Allowance for equity funds used during construction and other, net | (2,409 | ) | (207 | ) | |||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (12,204 | ) | 3,770 | ||||
Materials, supplies, and fuel stock | 969 | (1,382 | ) | ||||
Other current assets | 2,613 | (27,342 | ) | ||||
Other assets | 3,186 | 885 | |||||
Accounts payable | (2,052 | ) | (3,984 | ) | |||
Accrued interest and taxes | (6,802 | ) | (4,283 | ) | |||
Other current liabilities | (2,498 | ) | (23,255 | ) | |||
Other liabilities | (4,341 | ) | (5,419 | ) | |||
Net cash flows from operating activities | 201,619 | 122,041 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to utility and non-utility plant | (230,882 | ) | (378,574 | ) | |||
Proceeds from sales of available-for-sale securities | 358,045 | 194,014 | |||||
Purchases of available-for-sale securities | (359,853 | ) | (195,619 | ) | |||
Return of principal on PVNGS lessor notes | — | 8,547 | |||||
Investment in Westmoreland Loan | — | (122,250 | ) | ||||
Principal repayments on Westmoreland Loan | 19,180 | — | |||||
Other, net | 143 | 167 | |||||
Net cash flows from investing activities | (213,367 | ) | (493,715 | ) |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash Flows From Financing Activities: | |||||||
Revolving credit facilities borrowings, net | 86,400 | 150,800 | |||||
Long-term borrowings | 57,000 | 357,500 | |||||
Repayment of long-term debt | (77,447 | ) | (126,156 | ) | |||
Proceeds from stock option exercise | 1,574 | 6,569 | |||||
Awards of common stock | (13,166 | ) | (14,367 | ) | |||
Dividends paid | (38,896 | ) | (35,312 | ) | |||
Valencia’s transactions with its owner | (7,731 | ) | (7,394 | ) | |||
Other, net | 1,685 | (1,077 | ) | ||||
Net cash flows from financing activities | 9,419 | 330,563 | |||||
Change in Cash and Cash Equivalents | (2,329 | ) | (41,111 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 4,522 | 46,051 | |||||
Cash and Cash Equivalents at End of Period | $ | 2,193 | $ | 4,940 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 59,982 | $ | 57,492 | |||
Income taxes paid (refunded), net | $ | 625 | $ | 850 | |||
Supplemental schedule of noncash investing activities: | |||||||
(Increase) decrease in accrued plant additions | $ | 1,279 | $ | 25,488 |
June 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 2,193 | $ | 4,522 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,086 and $1,209 | 86,598 | 87,012 | |||||
Unbilled revenues | 69,849 | 58,284 | |||||
Other receivables | 25,282 | 28,245 | |||||
Current portion of Westmoreland Loan | 20,968 | 38,360 | |||||
Materials, supplies, and fuel stock | 67,007 | 73,027 | |||||
Regulatory assets | 5,720 | 3,855 | |||||
Commodity derivative instruments | 3,847 | 5,224 | |||||
Income taxes receivable | 6,723 | 6,066 | |||||
Other current assets | 65,400 | 73,444 | |||||
Total current assets | 353,587 | 378,039 | |||||
Other Property and Investments: | |||||||
Long-term portion of Westmoreland Loan | 54,852 | 56,640 | |||||
Available-for-sale securities | 295,026 | 272,977 | |||||
Other investments | 404 | 547 | |||||
Non-utility property | 3,713 | 3,404 | |||||
Total other property and investments | 353,995 | 333,568 | |||||
Utility Plant: | |||||||
Plant in service, held for future use, and to be abandoned | 7,081,606 | 6,944,534 | |||||
Less accumulated depreciation and amortization | 2,395,590 | 2,334,938 | |||||
4,686,016 | 4,609,596 | ||||||
Construction work in progress | 252,759 | 208,206 | |||||
Nuclear fuel, net of accumulated amortization of $43,196 and $43,905 | 88,586 | 86,913 | |||||
Net utility plant | 5,027,361 | 4,904,715 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 490,454 | 501,223 | |||||
Goodwill | 278,297 | 278,297 | |||||
Commodity derivative instruments | 4,106 | — | |||||
Other deferred charges | 76,645 | 75,238 | |||||
Total deferred charges and other assets | 849,502 | 854,758 | |||||
$ | 6,584,445 | $ | 6,471,080 |
June 30, 2017 | December 31, 2016 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 373,500 | $ | 287,100 | |||
Current installments of long-term debt | 174,257 | 273,348 | |||||
Accounts payable | 78,324 | 86,705 | |||||
Customer deposits | 11,023 | 11,374 | |||||
Accrued interest and taxes | 55,726 | 61,871 | |||||
Regulatory liabilities | 5,265 | 3,609 | |||||
Commodity derivative instruments | 1,990 | 2,339 | |||||
Dividends declared | 132 | 19,448 | |||||
Other current liabilities | 66,353 | 59,314 | |||||
Total current liabilities | 766,570 | 805,108 | |||||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 2,199,105 | 2,119,364 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 971,440 | 940,650 | |||||
Regulatory liabilities | 454,952 | 455,649 | |||||
Asset retirement obligations | 132,261 | 127,519 | |||||
Accrued pension liability and postretirement benefit cost | 119,243 | 125,844 | |||||
Commodity derivative instruments | 4,106 | — | |||||
Other deferred credits | 129,794 | 140,545 | |||||
Total deferred credits and other liabilities | 1,811,796 | 1,790,207 | |||||
Total liabilities | 4,777,471 | 4,714,679 | |||||
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 (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares) | 1,156,630 | 1,163,661 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (85,595 | ) | (92,451 | ) | |||
Retained earnings | 656,225 | 604,742 | |||||
Total PNMR common stockholders’ equity | 1,727,260 | 1,675,952 | |||||
Non-controlling interest in Valencia | 68,185 | 68,920 | |||||
Total equity | 1,795,445 | 1,744,872 | |||||
$ | 6,584,445 | $ | 6,471,080 | ||||
Attributable to PNMR | Non- controlling Interest in Valencia | ||||||||||||||||||||||
Common Stock | AOCI | Retained Earnings | Total PNMR Common Stockholders’ Equity | Total Equity | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at December 31, 2016, as originally reported | $ | 1,163,661 | $ | (92,451 | ) | $ | 604,742 | $ | 1,675,952 | $ | 68,920 | $ | 1,744,872 | ||||||||||
Cumulative effect adjustment (Note 8) | — | — | 10,382 | 10,382 | — | 10,382 | |||||||||||||||||
Balance at January 1, 2017, as adjusted | 1,163,661 | (92,451 | ) | 615,124 | 1,686,334 | 68,920 | 1,755,254 | ||||||||||||||||
Net earnings before subsidiary preferred stock dividends | — | — | 60,681 | 60,681 | 6,996 | 67,677 | |||||||||||||||||
Total other comprehensive income | — | 6,856 | — | 6,856 | — | 6,856 | |||||||||||||||||
Subsidiary preferred stock dividends | — | — | (264 | ) | (264 | ) | — | (264 | ) | ||||||||||||||
Dividends declared on common stock | — | — | (19,316 | ) | (19,316 | ) | — | (19,316 | ) | ||||||||||||||
Proceeds from stock option exercise | 1,574 | — | — | 1,574 | — | 1,574 | |||||||||||||||||
Awards of common stock | (13,166 | ) | — | — | (13,166 | ) | — | (13,166 | ) | ||||||||||||||
Stock based compensation expense | 4,561 | — | — | 4,561 | — | 4,561 | |||||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | (7,731 | ) | (7,731 | ) | |||||||||||||||
Balance at June 30, 2017 | $ | 1,156,630 | $ | (85,595 | ) | $ | 656,225 | $ | 1,727,260 | $ | 68,185 | $ | 1,795,445 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Electric Operating Revenues | $ | 276,097 | $ | 233,346 | $ | 527,655 | $ | 468,952 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 82,952 | 61,367 | 164,268 | 133,811 | |||||||||||
Administrative and general | 41,936 | 39,152 | 84,984 | 81,181 | |||||||||||
Energy production costs | 34,393 | 37,881 | 66,180 | 80,567 | |||||||||||
Regulatory disallowances and restructuring costs | — | — | — | 774 | |||||||||||
Depreciation and amortization | 36,448 | 32,602 | 72,464 | 64,466 | |||||||||||
Transmission and distribution costs | 10,175 | 10,241 | 20,094 | 20,557 | |||||||||||
Taxes other than income taxes | 11,029 | 10,343 | 22,169 | 22,540 | |||||||||||
Total operating expenses | 216,933 | 191,586 | 430,159 | 403,896 | |||||||||||
Operating income | 59,164 | 41,760 | 97,496 | 65,056 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 1,858 | 5,518 | 4,675 | 7,040 | |||||||||||
Gains on available-for-sale securities | 5,663 | 4,631 | 12,324 | 10,849 | |||||||||||
Other income | 2,665 | 2,953 | 6,508 | 6,339 | |||||||||||
Other (deductions) | (2,428 | ) | (3,202 | ) | (5,250 | ) | (4,863 | ) | |||||||
Net other income and deductions | 7,758 | 9,900 | 18,257 | 19,365 | |||||||||||
Interest Charges | 20,931 | 22,690 | 41,943 | 44,281 | |||||||||||
Earnings before Income Taxes | 45,991 | 28,970 | 73,810 | 40,140 | |||||||||||
Income Taxes | 15,515 | 9,177 | 23,223 | 12,788 | |||||||||||
Net Earnings | 30,476 | 19,793 | 50,587 | 27,352 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,544 | ) | (3,744 | ) | (6,996 | ) | (7,031 | ) | |||||||
Net Earnings Attributable to PNM | 26,932 | 16,049 | 43,591 | 20,321 | |||||||||||
Preferred Stock Dividends Requirements | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Net Earnings Available for PNM Common Stock | $ | 26,800 | $ | 15,917 | $ | 43,327 | $ | 20,057 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Net Earnings | $ | 30,476 | $ | 19,793 | $ | 50,587 | $ | 27,352 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||
Unrealized Gains on Available-for-Sale Securities: | |||||||||||||||
Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $(2,777), $2,791, $(5,783), and $661 | 4,378 | (4,362 | ) | 9,120 | (1,034 | ) | |||||||||
Reclassification adjustment for (gains) losses included in net earnings, net of income tax expense (benefit) of $1,629, $(2,404), $2,701, and $1,970 | (2,569 | ) | 3,757 | (4,260 | ) | (3,079 | ) | ||||||||
Pension Liability Adjustment: | |||||||||||||||
Reclassification adjustment for amortization of experience (gains) losses recognized as net periodic benefit cost, net of income tax expense (benefit) of $(626), $(537), $(1,252), and $(1,074) | 987 | 839 | 1,974 | 1,678 | |||||||||||
Total Other Comprehensive Income (Loss) | 2,796 | 234 | 6,834 | (2,435 | ) | ||||||||||
Comprehensive Income | 33,272 | 20,027 | 57,421 | 24,917 | |||||||||||
Comprehensive (Income) Attributable to Valencia Non-controlling Interest | (3,544 | ) | (3,744 | ) | (6,996 | ) | (7,031 | ) | |||||||
Comprehensive Income Attributable to PNM | $ | 29,728 | $ | 16,283 | $ | 50,425 | $ | 17,886 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 50,587 | $ | 27,352 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 88,864 | 80,688 | |||||
Deferred income tax expense | 23,685 | 13,180 | |||||
Net unrealized (gains) losses on commodity derivatives | 939 | 5,219 | |||||
Realized (gains) on available-for-sale securities | (12,324 | ) | (10,849 | ) | |||
Regulatory disallowances and restructuring costs | — | 774 | |||||
Allowance for equity funds used during construction and other, net | (2,278 | ) | (221 | ) | |||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (8,846 | ) | 8,572 | ||||
Materials, supplies, and fuel stock | 1,591 | (4,924 | ) | ||||
Other current assets | 5,623 | (18,964 | ) | ||||
Other assets | 8,539 | 6,582 | |||||
Accounts payable | (754 | ) | 822 | ||||
Accrued interest and taxes | (1,520 | ) | 736 | ||||
Other current liabilities | 9,220 | (15,511 | ) | ||||
Other liabilities | (6,949 | ) | (6,871 | ) | |||
Net cash flows from operating activities | 156,377 | 86,585 | |||||
Cash Flows From Investing Activities: | |||||||
Utility plant additions | (125,698 | ) | (302,721 | ) | |||
Proceeds from sales of available-for-sale securities | 358,045 | 194,014 | |||||
Purchases of available-for-sale securities | (359,853 | ) | (195,619 | ) | |||
Return of principal on PVNGS lessor notes | — | 8,547 | |||||
Other, net | 143 | 167 | |||||
Net cash flows from investing activities | (127,363 | ) | (295,612 | ) |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash Flows From Financing Activities: | |||||||
Revolving credit facilities borrowings, net | (23,000 | ) | 126,000 | ||||
Long-term borrowings | 57,000 | 175,000 | |||||
Repayment of long-term debt | (57,000 | ) | (125,000 | ) | |||
Equity contribution from parent | — | 4,142 | |||||
Dividends paid | (264 | ) | (4,406 | ) | |||
Valencia’s transactions with its owner | (7,731 | ) | (7,394 | ) | |||
Other, net | 1,683 | (369 | ) | ||||
Net cash flows from financing activities | (29,312 | ) | 167,973 | ||||
Change in Cash and Cash Equivalents | (298 | ) | (41,054 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 324 | 43,138 | |||||
Cash and Cash Equivalents at End of Period | $ | 26 | $ | 2,084 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 39,584 | $ | 40,838 | |||
Income taxes paid (refunded), net | $ | — | $ | — | |||
Supplemental schedule of noncash investing activities: | |||||||
(Increase) decrease in accrued plant additions | $ | (5,392 | ) | $ | 21,157 |
June 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 26 | $ | 324 | |||
Accounts receivable, net of allowance for uncollectible accounts of $1,086 and $1,209 | 62,368 | 65,003 | |||||
Unbilled revenues | 58,717 | 48,289 | |||||
Other receivables | 22,925 | 25,514 | |||||
Affiliate receivables | 10,643 | 8,886 | |||||
Materials, supplies, and fuel stock | 62,810 | 64,401 | |||||
Regulatory assets | 1,880 | 3,442 | |||||
Commodity derivative instruments | 3,847 | 5,224 | |||||
Income taxes receivable | 26,269 | 25,807 | |||||
Other current assets | 59,357 | 67,355 | |||||
Total current assets | 308,842 | 314,245 | |||||
Other Property and Investments: | |||||||
Available-for-sale securities | 295,026 | 272,977 | |||||
Other investments | 173 | 316 | |||||
Non-utility property | 96 | 96 | |||||
Total other property and investments | 295,295 | 273,389 | |||||
Utility Plant: | |||||||
Plant in service, held for future use, and to be abandoned | 5,420,475 | 5,359,211 | |||||
Less accumulated depreciation and amortization | 1,854,466 | 1,809,528 | |||||
3,566,009 | 3,549,683 | ||||||
Construction work in progress | 201,443 | 158,122 | |||||
Nuclear fuel, net of accumulated amortization of $43,196 and $43,905 | 88,586 | 86,913 | |||||
Net utility plant | 3,856,038 | 3,794,718 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 354,886 | 365,413 | |||||
Goodwill | 51,632 | 51,632 | |||||
Commodity derivative instruments | 4,106 | — | |||||
Other deferred charges | 68,608 | 68,149 | |||||
Total deferred charges and other assets | 479,232 | 485,194 | |||||
$ | 4,939,407 | $ | 4,867,546 | ||||
June 30, 2017 | December 31, 2016 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 38,000 | $ | 61,000 | |||
Current installments of long-term debt | — | 231,880 | |||||
Accounts payable | 60,205 | 55,566 | |||||
Affiliate payables | 38,178 | 23,183 | |||||
Customer deposits | 11,023 | 11,374 | |||||
Accrued interest and taxes | 33,761 | 34,819 | |||||
Regulatory liabilities | 5,265 | 3,517 | |||||
Commodity derivative instruments | 1,990 | 2,339 | |||||
Dividends declared | 132 | 132 | |||||
Other current liabilities | 46,784 | 33,551 | |||||
Total current liabilities | 235,338 | 457,361 | |||||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 1,631,912 | 1,399,489 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 773,188 | 748,666 | |||||
Regulatory liabilities | 421,947 | 423,701 | |||||
Asset retirement obligations | 131,305 | 126,601 | |||||
Accrued pension liability and postretirement benefit cost | 109,023 | 114,427 | |||||
Commodity derivative instruments | 4,106 | — | |||||
Other deferred credits | 104,841 | 118,980 | |||||
Total deferred credits and liabilities | 1,544,410 | 1,532,375 | |||||
Total liabilities | 3,411,660 | 3,389,225 | |||||
Commitments and Contingencies (See Note 11) | |||||||
Cumulative Preferred Stock | |||||||
without mandatory redemption requirements ($100 stated value; 10,000,000 shares authorized; issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNM common stockholder’s equity: | |||||||
Common stock (no par value; 40,000,000 shares authorized; issued and outstanding 39,117,799 shares) | 1,264,918 | 1,264,918 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (85,594 | ) | (92,428 | ) | |||
Retained earnings | 268,709 | 225,382 | |||||
Total PNM common stockholder’s equity | 1,448,033 | 1,397,872 | |||||
Non-controlling interest in Valencia | 68,185 | 68,920 | |||||
Total equity | 1,516,218 | 1,466,792 | |||||
$ | 4,939,407 | $ | 4,867,546 |
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, 2016 | $ | 1,264,918 | $ | (92,428 | ) | $ | 225,382 | $ | 1,397,872 | $ | 68,920 | $ | 1,466,792 | ||||||||||
Net earnings | — | — | 43,591 | 43,591 | 6,996 | 50,587 | |||||||||||||||||
Total other comprehensive income | — | 6,834 | — | 6,834 | — | 6,834 | |||||||||||||||||
Dividends declared on preferred stock | — | — | (264 | ) | (264 | ) | — | (264 | ) | ||||||||||||||
Valencia’s transactions with its owner | — | — | — | — | (7,731 | ) | (7,731 | ) | |||||||||||||||
Balance at June 30, 2017 | $ | 1,264,918 | $ | (85,594 | ) | $ | 268,709 | $ | 1,448,033 | $ | 68,185 | $ | 1,516,218 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Electric Operating Revenues | $ | 86,223 | $ | 82,045 | $ | 164,843 | $ | 157,400 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 21,315 | 19,996 | 42,802 | 39,921 | |||||||||||
Administrative and general | 9,235 | 10,204 | 19,638 | 19,794 | |||||||||||
Depreciation and amortization | 15,597 | 14,897 | 30,968 | 29,406 | |||||||||||
Transmission and distribution costs | 6,856 | 7,074 | 13,414 | 13,352 | |||||||||||
Taxes other than income taxes | 6,934 | 6,499 | 13,770 | 12,998 | |||||||||||
Total operating expenses | 59,937 | 58,670 | 120,592 | 115,471 | |||||||||||
Operating income | 26,286 | 23,375 | 44,251 | 41,929 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Other income | 541 | 1,031 | 1,363 | 1,624 | |||||||||||
Other (deductions) | (109 | ) | (354 | ) | (198 | ) | (339 | ) | |||||||
Net other income and deductions | 432 | 677 | 1,165 | 1,285 | |||||||||||
Interest Charges | 7,510 | 7,473 | 14,915 | 14,841 | |||||||||||
Earnings before Income Taxes | 19,208 | 16,579 | 30,501 | 28,373 | |||||||||||
Income Taxes | 7,004 | 6,071 | 10,693 | 10,408 | |||||||||||
Net Earnings | $ | 12,204 | $ | 10,508 | $ | 19,808 | $ | 17,965 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 19,808 | $ | 17,965 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 31,877 | 30,270 | |||||
Deferred income tax expense | 4,894 | (22 | ) | ||||
Allowance for equity funds used during construction and other, net | (130 | ) | 14 | ||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (3,358 | ) | (4,802 | ) | |||
Materials and supplies | (622 | ) | 3,542 | ||||
Other current assets | (3,897 | ) | (6,941 | ) | |||
Other assets | (5,747 | ) | (6,297 | ) | |||
Accounts payable | 138 | (2,986 | ) | ||||
Accrued interest and taxes | (308 | ) | 5,275 | ||||
Other current liabilities | 1,957 | 1,279 | |||||
Other liabilities | 717 | (6 | ) | ||||
Net cash flows from operating activities | 45,329 | 37,291 | |||||
Cash Flows From Investing Activities: | |||||||
Utility plant additions | (78,940 | ) | (59,795 | ) | |||
Net cash flows from investing activities | (78,940 | ) | (59,795 | ) | |||
Cash Flow From Financing Activities: | |||||||
Revolving credit facilities borrowings (repayments), net | 47,000 | (29,000 | ) | ||||
Short-term borrowings (repayments) – affiliate, net | 3,400 | (300 | ) | ||||
Long-term borrowings | — | 60,000 | |||||
Dividends paid | (17,459 | ) | (7,456 | ) | |||
Other, net | — | (740 | ) | ||||
Net cash flows from financing activities | 32,941 | 22,504 | |||||
Change in Cash and Cash Equivalents | (670 | ) | — | ||||
Cash and Cash Equivalents at Beginning of Period | 671 | 1 | |||||
Cash and Cash Equivalents at End of Period | $ | 1 | $ | 1 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of amounts capitalized | $ | 13,999 | $ | 13,118 | |||
Income taxes paid (refunded), net | $ | 750 | $ | 850 | |||
Supplemental schedule of noncash investing activities: | |||||||
(Increase) decrease in accrued plant additions | $ | 1,700 | $ | 2,681 |
June 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1 | $ | 671 | |||
Accounts receivable | 24,230 | 22,009 | |||||
Unbilled revenues | 11,132 | 9,995 | |||||
Other receivables | 1,747 | 2,090 | |||||
Materials and supplies | 4,197 | 8,626 | |||||
Regulatory assets | 3,840 | 413 | |||||
Other current assets | 1,841 | 1,031 | |||||
Total current assets | 46,988 | 44,835 | |||||
Other Property and Investments: | |||||||
Other investments | 231 | 231 | |||||
Non-utility property | 2,549 | 2,240 | |||||
Total other property and investments | 2,780 | 2,471 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 1,425,439 | 1,380,584 | |||||
Less accumulated depreciation and amortization | 445,900 | 429,397 | |||||
979,539 | 951,187 | ||||||
Construction work in progress | 40,196 | 16,978 | |||||
Net utility plant | 1,019,735 | 968,165 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 135,568 | 135,810 | |||||
Goodwill | 226,665 | 226,665 | |||||
Other deferred charges | 5,811 | 5,277 | |||||
Total deferred charges and other assets | 368,044 | 367,752 | |||||
$ | 1,437,547 | $ | 1,383,223 |
June 30, 2017 | December 31, 2016 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 47,000 | $ | — | |||
Short-term debt – affiliate | 8,000 | 4,600 | |||||
Accounts payable | 10,096 | 16,709 | |||||
Affiliate payables | 4,347 | 3,793 | |||||
Accrued interest and taxes | 45,274 | 45,581 | |||||
Regulatory liabilities | — | 92 | |||||
Other current liabilities | 3,628 | 2,134 | |||||
Total current liabilities | 118,345 | 72,909 | |||||
Long-term Debt, net of Unamortized Premiums, Discounts, and Debt Issuance Costs | 421,024 | 420,875 | |||||
Deferred Credits and Other Liabilities: | |||||||