x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______ |
Texas | 74-0607870 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Stanton Tower, 100 North Stanton Street, El Paso, Texas | 79901 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | Smaller reporting company | o | |
Emerging growth company | o |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Common Stock, No Par Value | EE | New York Stock Exchange |
Abbreviations, Acronyms or Defined Terms | Terms | |
A&G | Administrative and general | |
ABFUDC | Allowance for Borrowed Funds Used During Construction | |
AEFUDC | Allowance for Equity Funds Used During Construction | |
AFUDC | Allowance for Funds Used During Construction | |
ANPP Participation Agreement | Arizona Nuclear Power Project Participation Agreement dated August 23, 1973, as amended | |
AOCI | Accumulated Other Comprehensive Income | |
APS | Arizona Public Service Company | |
ASU | Accounting Standards Update | |
Company | El Paso Electric Company | |
DOE | U.S. Department of Energy | |
El Paso | City of El Paso, Texas | |
Exchange Act | The Securities Exchange Act of 1934, as amended | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
Four Corners | Four Corners Generating Station | |
FPPCAC | New Mexico Fuel and Purchased Power Cost Adjustment Clause | |
GAAP | U.S. Generally Accepted Accounting Principles | |
GHG | Greenhouse Gas | |
kW | Kilowatt(s) | |
kWh | Kilowatt-hour(s) | |
Las Cruces | City of Las Cruces, New Mexico | |
MPS | The Company's Montana Power Station | |
MW | Megawatt(s) | |
MWh | Megawatt-hour(s) | |
NDT | The Company's Palo Verde nuclear decommissioning trust funds | |
Newman | The Company's Newman Power Station | |
NMPRC | New Mexico Public Regulation Commission | |
O&M | Operations and maintenance | |
Palo Verde | Palo Verde Generating Station | |
PCBs | Pollution Control Refunding Revenue Bonds | |
PUCT | Public Utility Commission of Texas | |
RCF | The Company's Revolving Credit Facility | |
RGRT | Rio Grande Resources Trust II | |
Rio Grande | The Company's Rio Grande Power Station | |
ROU | Right-of-use | |
SEC | U.S. Securities and Exchange Commission | |
TCJA | The federal legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 | |
U.S. | United States | |
2017 PUCT Final Order | PUCT Final Order in Docket No. 46831 | |
2018 Form 10-K | Annual Report of El Paso Electric Company on Form 10-K for the fiscal year ended December 31, 2018 |
(i) |
Page No. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 5. | ||
Item 6. |
(ii) |
Item 1. | Financial Statements |
March 31, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS (In thousands) | |||||||
Utility plant: | |||||||
Electric plant in service | $ | 4,227,687 | $ | 4,181,409 | |||
Less accumulated depreciation and amortization | (1,409,573 | ) | (1,391,266 | ) | |||
Net plant in service | 2,818,114 | 2,790,143 | |||||
Construction work in progress | 176,891 | 169,327 | |||||
Nuclear fuel; includes fuel in process of $73,105 and $62,833, respectively | 208,552 | 198,280 | |||||
Less accumulated amortization | (82,699 | ) | (72,703 | ) | |||
Net nuclear fuel | 125,853 | 125,577 | |||||
Net utility plant | 3,120,858 | 3,085,047 | |||||
Current assets: | |||||||
Cash and cash equivalents | 8,505 | 12,900 | |||||
Restricted cash | 38,445 | — | |||||
Accounts receivable, principally trade, net of allowance for doubtful accounts of $1,514 and $2,070, respectively | 70,259 | 77,855 | |||||
Inventories, at cost | 57,542 | 55,432 | |||||
Regulatory assets | 7,272 | 6,972 | |||||
Prepayments and other | 25,531 | 20,375 | |||||
Total current assets | 207,554 | 173,534 | |||||
Deferred charges and other assets: | |||||||
Decommissioning trust funds | 298,338 | 276,905 | |||||
Regulatory assets | 74,107 | 74,848 | |||||
Other | 17,713 | 18,168 | |||||
Total deferred charges and other assets | 390,158 | 369,921 | |||||
Total assets | $ | 3,718,570 | $ | 3,628,502 |
March 31, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
CAPITALIZATION AND LIABILITIES (In thousands except for share data) | |||||||
Capitalization: | |||||||
Common stock, stated value $1 per share, 100,000,000 shares authorized, 65,678,261 and 65,707,156 shares issued, and 150,427 and 121,532 restricted shares, respectively | $ | 65,829 | $ | 65,829 | |||
Capital in excess of stated value | 328,228 | 328,480 | |||||
Retained earnings | 1,218,902 | 1,227,471 | |||||
Accumulated other comprehensive loss, net of tax | (37,127 | ) | (38,784 | ) | |||
1,575,832 | 1,582,996 | ||||||
Treasury stock, 25,090,505 and 25,147,567 shares, respectively, at cost | (417,943 | ) | (418,893 | ) | |||
Common stock equity | 1,157,889 | 1,164,103 | |||||
Long-term debt, net of current portion | 1,286,111 | 1,285,980 | |||||
Total capitalization | 2,444,000 | 2,450,083 | |||||
Current liabilities: | |||||||
Current maturities of long-term debt | 36,550 | 99,239 | |||||
Short-term borrowings under the revolving credit facility | 202,951 | 49,207 | |||||
Accounts payable, principally trade | 46,911 | 58,150 | |||||
Taxes accrued | 28,147 | 37,139 | |||||
Interest accrued | 19,449 | 16,478 | |||||
Regulatory liabilities | 26,484 | 14,686 | |||||
Other | 41,000 | 38,356 | |||||
Total current liabilities | 401,492 | 313,255 | |||||
Deferred credits and other liabilities: | |||||||
Accumulated deferred income taxes | 326,849 | 325,133 | |||||
Accrued pension liability | 85,012 | 87,259 | |||||
Accrued post-retirement benefit liability | 25,134 | 24,575 | |||||
Asset retirement obligation | 103,349 | 101,108 | |||||
Regulatory liabilities | 298,615 | 298,570 | |||||
Other | 34,119 | 28,519 | |||||
Total deferred credits and other liabilities | 873,078 | 865,164 | |||||
Commitments and contingencies | |||||||
Total capitalization and liabilities | $ | 3,718,570 | $ | 3,628,502 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues | $ | 174,363 | $ | 175,713 | $ | 902,253 | $ | 921,175 | |||||||
Operating expenses: | |||||||||||||||
Fuel and purchased power | 48,326 | 52,188 | 225,247 | 246,660 | |||||||||||
Operations and maintenance | 80,413 | 80,160 | 335,136 | 321,254 | |||||||||||
Depreciation and amortization | 25,126 | 23,814 | 97,694 | 92,723 | |||||||||||
Taxes other than income taxes | 16,189 | 15,507 | 71,682 | 70,640 | |||||||||||
170,054 | 171,669 | 729,759 | 731,277 | ||||||||||||
Operating income | 4,309 | 4,044 | 172,494 | 189,898 | |||||||||||
Other income (deductions): | |||||||||||||||
Allowance for equity funds used during construction | 1,001 | 920 | 3,534 | 3,130 | |||||||||||
Investment and interest income, net | 23,707 | 5,155 | 36,929 | 34,745 | |||||||||||
Miscellaneous non-operating income | 3,048 | 3,136 | 12,735 | 12,292 | |||||||||||
Miscellaneous non-operating deductions | (2,357 | ) | (2,743 | ) | (11,594 | ) | (11,494 | ) | |||||||
25,399 | 6,468 | 41,604 | 38,673 | ||||||||||||
Interest charges (credits): | |||||||||||||||
Interest on long-term debt and revolving credit facility | 18,989 | 17,988 | 76,425 | 72,591 | |||||||||||
Other interest | 5,233 | 4,654 | 18,469 | 18,479 | |||||||||||
Capitalized interest | (1,532 | ) | (1,214 | ) | (5,801 | ) | (4,942 | ) | |||||||
Allowance for borrowed funds used during construction | (972 | ) | (898 | ) | (3,686 | ) | (3,082 | ) | |||||||
21,718 | 20,530 | 85,407 | 83,046 | ||||||||||||
Income (loss) before income taxes | 7,990 | (10,018 | ) | 128,691 | 145,525 | ||||||||||
Income tax expense (benefit) | 1,901 | (3,052 | ) | 31,321 | 50,240 | ||||||||||
Net income (loss) | $ | 6,089 | $ | (6,966 | ) | $ | 97,370 | $ | 95,285 | ||||||
Basic earnings (loss) per share | $ | 0.15 | $ | (0.17 | ) | $ | 2.39 | $ | 2.35 | ||||||
Diluted earnings (loss) per share | $ | 0.15 | $ | (0.17 | ) | $ | 2.39 | $ | 2.34 | ||||||
Dividends declared per share of common stock | $ | 0.360 | $ | 0.335 | $ | 1.440 | $ | 1.340 | |||||||
Weighted average number of shares outstanding | 40,582,936 | 40,491,194 | 40,543,986 | 40,440,189 | |||||||||||
Weighted average number of shares and dilutive potential shares outstanding | 40,663,753 | 40,491,194 | 40,661,228 | 40,563,625 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 6,089 | $ | (6,966 | ) | $ | 97,370 | $ | 95,285 | ||||||
Other comprehensive income (loss): | |||||||||||||||
Unrecognized pension and post-retirement benefit costs: | |||||||||||||||
Net gain (loss) arising during period | — | — | (5,898 | ) | 12,634 | ||||||||||
Reclassification adjustments included in net income for amortization of: | |||||||||||||||
Prior service benefit | (2,186 | ) | (2,416 | ) | (9,427 | ) | (9,657 | ) | |||||||
Net loss | 843 | 1,575 | 5,655 | 6,657 | |||||||||||
Net unrealized gains/losses on marketable securities: | |||||||||||||||
Net holding gains (losses) arising during period | 2,471 | (2,708 | ) | 1,107 | 14,846 | ||||||||||
Reclassification adjustments for net (gains) losses included in net income | 829 | 518 | 1,756 | (7,917 | ) | ||||||||||
Net losses on cash flow hedges: | |||||||||||||||
Reclassification adjustment for interest expense included in net income | 148 | 139 | 577 | 541 | |||||||||||
Total other comprehensive income (loss) before income taxes | 2,105 | (2,892 | ) | (6,230 | ) | 17,104 | |||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss): | |||||||||||||||
Unrecognized pension and post-retirement benefit costs | 265 | 156 | 2,144 | (3,652 | ) | ||||||||||
Net unrealized (gains) losses on marketable securities | (665 | ) | 435 | (577 | ) | (1,366 | ) | ||||||||
Losses on cash flow hedges | (48 | ) | (50 | ) | (143 | ) | (195 | ) | |||||||
Total income tax benefit (expense) | (448 | ) | 541 | 1,424 | (5,213 | ) | |||||||||
Other comprehensive income (loss), net of tax | 1,657 | (2,351 | ) | (4,806 | ) | 11,891 | |||||||||
Comprehensive income (loss) | $ | 7,746 | $ | (9,317 | ) | $ | 92,564 | $ | 107,176 |
Common Stock | Capital in Excess of Stated Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Common Stock Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balances at December 31, 2018 | 65,828,688 | $ | 65,829 | $ | 328,480 | $ | 1,227,471 | $ | (38,784 | ) | 25,147,567 | $ | (418,893 | ) | $ | 1,164,103 | |||||||||||||
Restricted common stock grants and deferred compensation | (1,328 | ) | (31,461 | ) | 524 | (804 | ) | ||||||||||||||||||||||
Performance share awards vested | 1,478 | (39,923 | ) | 665 | 2,143 | ||||||||||||||||||||||||
Stock awards withheld for taxes | (430 | ) | 12,425 | (207 | ) | (637 | ) | ||||||||||||||||||||||
Forfeited restricted common stock | 2,566 | (43 | ) | (43 | ) | ||||||||||||||||||||||||
Compensation paid in shares | 28 | (669 | ) | 11 | 39 | ||||||||||||||||||||||||
Net income | 6,089 | 6,089 | |||||||||||||||||||||||||||
Other comprehensive income | 1,657 | 1,657 | |||||||||||||||||||||||||||
Common stock, dividends declared, $0.36 per share | (14,658 | ) | (14,658 | ) | |||||||||||||||||||||||||
Balances at March 31, 2019 | 65,828,688 | $ | 65,829 | $ | 328,228 | $ | 1,218,902 | $ | (37,127 | ) | 25,090,505 | $ | (417,943 | ) | $ | 1,157,889 |
Common Stock | Capital in Excess of Stated Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Common Stock Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balances at December 31, 2017 | 65,828,688 | $ | 65,829 | $ | 326,117 | $ | 1,159,667 | $ | 11,058 | 25,244,350 | $ | (420,506 | ) | $ | 1,142,165 | ||||||||||||||
Restricted common stock grants and deferred compensation | (560 | ) | (30,800 | ) | 513 | (47 | ) | ||||||||||||||||||||||
Performance share awards vested | 360 | (68,379 | ) | 1,139 | 1,499 | ||||||||||||||||||||||||
Stock awards withheld for taxes | (725 | ) | 20,389 | (339 | ) | (1,064 | ) | ||||||||||||||||||||||
Forfeited restricted common stock | 2,391 | (40 | ) | (40 | ) | ||||||||||||||||||||||||
Compensation paid in shares | 35 | (1,008 | ) | 17 | 52 | ||||||||||||||||||||||||
Cumulative effect adjustment for financial instruments | 41,028 | (41,028 | ) | — | |||||||||||||||||||||||||
Net loss | (6,966 | ) | (6,966 | ) | |||||||||||||||||||||||||
Other comprehensive loss | (2,351 | ) | (2,351 | ) | |||||||||||||||||||||||||
Common stock, dividends declared, $0.335 per share | (13,615 | ) | (13,615 | ) | |||||||||||||||||||||||||
Balances at March 31, 2018 | 65,828,688 | $ | 65,829 | $ | 325,227 | $ | 1,180,114 | $ | (32,321 | ) | 25,166,943 | $ | (419,216 | ) | $ | 1,119,633 |
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 6,089 | $ | (6,966 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization of electric plant in service | 25,126 | 23,814 | |||||
Amortization of nuclear fuel | 10,706 | 10,404 | |||||
Deferred income taxes, net | 1,236 | (3,964 | ) | ||||
Allowance for equity funds used during construction | (1,001 | ) | (920 | ) | |||
Other amortization and accretion | 5,173 | 5,240 | |||||
Net losses (gains) on decommissioning trust funds | (15,989 | ) | 2,509 | ||||
Other operating activities | 349 | 81 | |||||
Change in: | |||||||
Accounts receivable | 8,352 | 8,063 | |||||
Inventories | (2,110 | ) | 1,418 | ||||
Prepayments and other | (5,519 | ) | (2,603 | ) | |||
Accounts payable | (11,021 | ) | (23,324 | ) | |||
Taxes accrued | (8,827 | ) | (7,552 | ) | |||
Interest accrued | 2,971 | 6,590 | |||||
Net over-collection of fuel revenues | 12,799 | 7,965 | |||||
Other current liabilities | 1,599 | 6,697 | |||||
Deferred charges and credits | (3,513 | ) | (1,216 | ) | |||
Net cash provided by operating activities | 26,420 | 26,236 | |||||
Cash flows from investing activities: | |||||||
Cash additions to utility property, plant and equipment | (52,428 | ) | (66,924 | ) | |||
Cash additions to nuclear fuel | (9,502 | ) | (9,257 | ) | |||
Insurance proceeds received for equipment | — | 4,175 | |||||
Capitalized interest and AFUDC: | |||||||
Utility property, plant and equipment | (1,973 | ) | (1,818 | ) | |||
Nuclear fuel and other | (1,532 | ) | (1,214 | ) | |||
Allowance for equity funds used during construction | 1,001 | 920 | |||||
Decommissioning trust funds: | |||||||
Purchases, including funding of $0.5 million and $0.5 million, respectively | (37,613 | ) | (33,578 | ) | |||
Sales and maturities | 35,468 | 31,663 | |||||
Other investing activities | (724 | ) | 526 | ||||
Net cash used for investing activities | (67,303 | ) | (75,507 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (14,658 | ) | (13,615 | ) | |||
Borrowings under the revolving credit facility: | |||||||
Proceeds | 215,196 | 192,670 | |||||
Payments | (61,452 | ) | (133,136 | ) | |||
Payment on purchase in lieu of redemption of pollution control bonds | (63,500 | ) | — | ||||
Other financing activities | (653 | ) | (1,064 | ) | |||
Net cash provided by financing activities | 74,933 | 44,855 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 34,050 | (4,416 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 12,900 | 6,990 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 46,950 | $ | 2,574 |
Supplemental Cash Flow Disclosures (in thousands) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Cash paid (received) for: | ||||||||
Interest on long-term debt and borrowings under the revolving credit facility | $ | 11,592 | $ | 11,967 | ||||
Income tax refunded, net | (300 | ) | (1,060 | ) | ||||
Non-cash investing and financing activities: | ||||||||
Changes in accrued plant additions | (218 | ) | (108 | ) | ||||
Grants of restricted shares of common stock | 524 | 513 | ||||||
Issuance of performance shares | 2,143 | 1,499 | ||||||
Non-cash operating activities: | ||||||||
Operating lease liabilities arising from obtaining ROU assets | 6,217 | — |
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Retail | $ | 132,126 | $ | 146,628 | $ | 775,174 | $ | 826,148 | |||||||
Wholesale | 35,691 | 24,143 | 102,221 | 72,641 | |||||||||||
Wheeling (transmission) | 6,005 | 4,286 | 20,745 | 18,133 | |||||||||||
Total revenues from contracts with customers | 173,822 | 175,057 | 898,140 | 916,922 | |||||||||||
Other | 541 | 656 | 4,113 | 4,253 | |||||||||||
Total operating revenues | $ | 174,363 | $ | 175,713 | $ | 902,253 | $ | 921,175 |
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 March 31, 2019 | Three Months Ended March 31, 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 | $ | (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 | — | 1,973 | — | 1,973 | — | (2,159 | ) | — | (2,159 | ) | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,078 | ) | 662 | 100 | (316 | ) | (685 | ) | 404 | 89 | (192 | ) | |||||||||||||||||||||
Balance at end of period | $ | (26,001 | ) | $ | (307 | ) | $ | (10,819 | ) | $ | (37,127 | ) | $ | (18,475 | ) | $ | (2,593 | ) | $ | (11,253 | ) | $ | (32,321 | ) | |||||||||
Twelve Months Ended March 31, 2019 | Twelve Months Ended March 31, 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 | $ | (18,475 | ) | $ | (2,593 | ) | $ | (11,253 | ) | $ | (32,321 | ) | $ | (24,457 | ) | $ | 32,872 | $ | (11,599 | ) | $ | (3,184 | ) | ||||||||||
Cumulative effect adjustment | — | — | — | — | — | (41,028 | ) | — | (41,028 | ) | |||||||||||||||||||||||
Other comprehensive income before reclassifications | (4,589 | ) | 892 | — | (3,697 | ) | 7,951 | 11,927 | — | 19,878 | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,937 | ) | 1,394 | 434 | (1,109 | ) | (1,969 | ) | (6,364 | ) | 346 | (7,987 | ) | ||||||||||||||||||||
Balance at end of period | $ | (26,001 | ) | $ | (307 | ) | $ | (10,819 | ) | $ | (37,127 | ) | $ | (18,475 | ) | $ | (2,593 | ) | $ | (11,253 | ) | $ | (32,321 | ) | |||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Three Months Ended March 31, | Twelve Months Ended March 31, | Affected Line Item in the Statements of Operations | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Amortization of pension and post-retirement benefit costs: | ||||||||||||||||||||
Prior service benefit | $ | 2,186 | $ | 2,416 | $ | 9,427 | $ | 9,657 | Miscellaneous non-operating income | |||||||||||
Net loss | (843 | ) | (1,575 | ) | (5,655 | ) | (6,657 | ) | Miscellaneous non-operating deductions | |||||||||||
1,343 | 841 | 3,772 | 3,000 | Income (loss) before income taxes | ||||||||||||||||
Income tax effect | (265 | ) | (156 | ) | (835 | ) | (1,031 | ) | Income tax (benefit) expense | |||||||||||
1,078 | 685 | 2,937 | 1,969 | Net income (loss) | ||||||||||||||||
Marketable securities: | ||||||||||||||||||||
Net realized gain (loss) on sale of securities | (829 | ) | (518 | ) | (1,756 | ) | 7,917 | Investment and interest income, net | ||||||||||||
(829 | ) | (518 | ) | (1,756 | ) | 7,917 | Income (loss) before income taxes | |||||||||||||
Income tax effect | 167 | 114 | 362 | (1,553 | ) | Income tax (benefit) expense | ||||||||||||||
(662 | ) | (404 | ) | (1,394 | ) | 6,364 | Net income (loss) | |||||||||||||
Loss on cash flow hedge: | ||||||||||||||||||||
Amortization of loss | (148 | ) | (139 | ) | (577 | ) | (541 | ) | Interest on long-term debt and revolving credit facility | |||||||||||
(148 | ) | (139 | ) | (577 | ) | (541 | ) | Income (loss) before income taxes | ||||||||||||
Income tax effect | 48 | 50 | 143 | 195 | Income tax (benefit) expense | |||||||||||||||
(100 | ) | (89 | ) | (434 | ) | (346 | ) | Net income (loss) | ||||||||||||
Total reclassifications | $ | 316 | $ | 192 | $ | 1,109 | $ | 7,987 | ||||||||||||
2019 | 2018 | |||||||
Three months ended March 31, | $ | 21,344 | $ | 22,175 | ||||
Twelve months ended March 31, | 95,623 | 99,931 |
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 March 31, | Twelve Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic number of common shares outstanding | 40,582,936 | 40,491,194 | 40,543,986 | 40,440,189 | |||||||||||
Dilutive effect of unvested performance awards | 80,817 | — | 117,242 | 123,436 | |||||||||||
Diluted number of common shares outstanding | 40,663,753 | 40,491,194 | 40,661,228 | 40,563,625 | |||||||||||
Basic net income (loss) per common share: | |||||||||||||||
Net income (loss) | $ | 6,089 | $ | (6,966 | ) | $ | 97,370 | $ | 95,285 | ||||||
Income allocated to participating restricted stock | (47 | ) | (48 | ) | (340 | ) | (353 | ) | |||||||
Net income (loss) available to common shareholders | $ | 6,042 | $ | (7,014 | ) | $ | 97,030 | $ | 94,932 | ||||||
Diluted net income (loss) per common share: | |||||||||||||||
Net income (loss) | $ | 6,089 | $ | (6,966 | ) | $ | 97,370 | $ | 95,285 | ||||||
Income reallocated to participating restricted stock | (47 | ) | (48 | ) | (339 | ) | (353 | ) | |||||||
Net income (loss) available to common shareholders | $ | 6,042 | $ | (7,014 | ) | $ | 97,031 | $ | 94,932 | ||||||
Basic net income (loss) per common share: | |||||||||||||||
Distributed earnings | $ | 0.36 | $ | 0.335 | $ | 1.44 | $ | 1.34 | |||||||
Undistributed earnings (losses) | (0.21 | ) | (0.505 | ) | 0.95 | 1.01 | |||||||||
Basic net income (loss) per common share | $ | 0.15 | $ | (0.170 | ) | $ | 2.39 | $ | 2.35 | ||||||
Diluted net income (loss) per common share: | |||||||||||||||
Distributed earnings | $ | 0.36 | $ | 0.335 | $ | 1.44 | $ | 1.34 | |||||||
Undistributed earnings (losses) | (0.21 | ) | (0.505 | ) | 0.95 | 1.00 | |||||||||
Diluted net income (loss) per common share | $ | 0.15 | $ | (0.170 | ) | $ | 2.39 | $ | 2.34 |
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 | Twelve Months Ended | ||||||||||
March 31, | March 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Restricted stock awards | 62,605 | 72,218 | 60,432 | 66,288 | |||||||
Performance shares (a) | 43,652 | 45,977 | 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. |
Three Months Ended March 31, 2019 | |||
Lease cost (in thousands): | |||
Operating lease cost | $ | 253 | |
Short-term lease cost | 274 | ||
Variable lease cost | 34 | ||
Total lease cost | $ | 561 |
March 31, 2019 | |||
Operating leases: | |||
Operating lease ROU assets (included in electric plant in service) | $ | 6,217 | |
Operating lease liabilities (current included in other current liabilities) | 552 | ||
Operating lease liabilities (net of current included in deferred credits and other liabilities) | 5,336 | ||
Total lease liabilities | $ | 5,888 | |
Weighted average remaining lease terms (in years) | 12.22 | ||
Weighted average discount rate | 4.63 | % |
Three Months Ended March 31, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows used for operating leases | $ | 557 |
Three Months Ended March 31, 2019 | |||
Operating leases | $ | 6,217 |
Year ending December 31, | |||
2019 | $ | 306 | |
2020 | 770 | ||
2021 | 696 | ||
2022 | 639 | ||
2023 | 590 | ||
Thereafter | 4,829 | ||
Total lease payments | 7,830 | ||
Less imputed interest | (1,942 | ) | |
Total | $ | 5,888 |
Year ending December 31, | |||
2019 | $ | 923 | |
2020 | 820 | ||
2021 | 700 | ||
2022 | 544 | ||
2023 | 526 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 2,488 | $ | 2,758 | $ | 10,818 | $ | 9,006 | |||||||
Interest cost | 3,608 | 3,223 | 13,263 | 13,034 | |||||||||||
Expected return on plan assets | (5,383 | ) | (5,315 | ) | (21,144 | ) | (19,696 | ) | |||||||
Amortization of: | |||||||||||||||
Net loss | 1,418 | 2,100 | 7,871 | 8,465 | |||||||||||
Prior service benefit | (878 | ) | (878 | ) | (3,506 | ) | (3,506 | ) | |||||||
Net periodic benefit cost | $ | 1,253 | $ | 1,888 | $ | 7,302 | $ | 7,303 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Components of net periodic benefit: | |||||||||||||||
Service cost | $ | 625 | $ | 700 | $ | 2,720 | $ | 2,348 | |||||||
Interest cost | 618 | 565 | 2,305 | 2,610 | |||||||||||
Expected return on plan assets | (530 | ) | (613 | ) | (2,352 | ) | (2,050 | ) | |||||||
Amortization of: | |||||||||||||||
Prior service benefit | (1,308 | ) | (1,538 | ) | (5,921 | ) | (6,151 | ) | |||||||
Net gain | (575 | ) | (525 | ) | (2,216 | ) | (1,808 | ) | |||||||
Net periodic benefit | $ | (1,170 | ) | $ | (1,411 | ) | $ | (5,464 | ) | $ | (5,051 | ) |
March 31, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Pollution Control Bonds (1) | $ | 95,088 | $ | 98,217 | $ | 157,769 | $ | 161,917 | |||||||
Senior Notes | 1,118,036 | 1,283,200 | 1,117,943 | 1,244,310 | |||||||||||
RGRT Senior Notes (2) | 109,537 | 112,850 | 109,507 | 111,440 | |||||||||||
RCF (2) | 202,951 | 202,951 | 49,207 | 49,207 | |||||||||||
Total | $ | 1,525,612 | $ | 1,697,218 | $ | 1,434,426 | $ | 1,566,874 |
(1) | On February 1, 2019, the Company purchased in lieu of redemption all of the 2009 Series A 7.25% PCBs with a principal amount of $63.5 million, utilizing funds borrowed under the RCF. The Company is currently holding the 2009 Series A 7.25% PCBs and may remarket them or replace them with debt instruments of equivalent value at a future date depending on the Company's financing needs and market conditions, and in accordance with the Company's regulators' approvals. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. |
(2) | Nuclear fuel financing, as of March 31, 2019 and December 31, 2018, is funded through $110 million RGRT Senior Notes and $30.0 million and $26.2 million, respectively, under the RCF. As of March 31, 2019, $173.0 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 current market rates. Consequently, the carrying value approximates fair value. |
March 31, 2019 | |||||||||||||||||||||||
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 | $ | 694 | $ | (20 | ) | $ | 13,210 | $ | (271 | ) | $ | 13,904 | $ | (291 | ) | ||||||||
U.S. Government Bonds | 4,722 | (6 | ) | 26,267 | (1,194 | ) | 30,989 | (1,200 | ) | ||||||||||||||
Municipal Debt Obligations | 4,480 | (332 | ) | 1,614 | (127 | ) | 6,094 | (459 | ) | ||||||||||||||
Corporate Debt Obligations | 6,851 | (114 | ) | 11,170 | (299 | ) | 18,021 | (413 | ) | ||||||||||||||
Total | $ | 16,747 | $ | (472 | ) | $ | 52,261 | $ | (1,891 | ) | $ | 69,008 | $ | (2,363 | ) |
(1) | Includes 96 securities. |
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 (2): | |||||||||||||||||||||||
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 | ) |
(2) | Includes 156 securities. |
March 31, 2019 | December 31, 2018 | ||||||||||||||
Fair Value | Unrealized Gains | Fair Value | Unrealized Gains | ||||||||||||
Description of Securities: | |||||||||||||||
Federal Agency Mortgage Backed Securities | $ | 16,459 | $ | 327 | $ | 9,959 | $ | 176 | |||||||
U.S. Government Bonds | 18,413 | 419 | 6,987 | 149 | |||||||||||
Municipal Debt Obligations | 3,454 | 189 | 1,952 | 120 | |||||||||||
Corporate Debt Obligations | 29,648 | 888 | 8,283 | 222 | |||||||||||
Total Debt Securities | $ | 67,974 | $ | 1,823 | $ | 27,181 | $ | 667 |
Total | 2019 | 2020 through 2023 | 2024 through 2028 | 2029 and Beyond | |||||||||||||||
Federal Agency Mortgage Backed Securities | $ | 30,363 | $ | — | $ | 19 | $ | 514 | $ | 29,830 | |||||||||
U.S. Government Bonds | 49,402 | 2,356 | 20,491 | 21,282 | 5,273 | ||||||||||||||
Municipal Debt Obligations | 9,548 | 649 | 3,446 | 3,566 | 1,887 | ||||||||||||||
Corporate Debt Obligations | 47,669 | 940 | 21,968 | 11,488 | 13,273 | ||||||||||||||
Total Available for Sale Debt Securities | $ | 136,982 | $ | 3,945 | $ | 45,924 | $ | 36,850 | $ | 50,263 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds from sales or maturities of available-for-sale securities | $ | 15,771 | $ | 11,757 | $ | 29,969 | $ | 82,739 | |||||||
Gross realized gains included in pre-tax income | $ | 58 | $ | 9 | $ | 66 | $ | 9,195 | |||||||
Gross realized losses included in pre-tax income | (887 | ) | (527 | ) | (1,822 | ) | (1,278 | ) | |||||||
Net gains (losses) included in pre-tax income | $ | (829 | ) | $ | (518 | ) | $ | (1,756 | ) | $ | 7,917 |
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
Net gains and (losses) recognized on equity securities | $ | 16,818 | $ | (1,991 | ) | ||
Less: Net gains recognized on equity securities sold | 128 | 1,790 | |||||
Unrealized gains and (losses) recognized on equity securities still held at reporting date | $ | 16,690 | $ | (3,781 | ) |
• | 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 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 include the NDT investments in fixed income securities. 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. |
Description of Securities | Fair Value as of March 31, 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 | $ | 1,632 | $ | — | $ | — | $ | 1,632 | |||||||
Equity Securities: | |||||||||||||||
Domestic | $ | 127,450 | $ | 127,450 | $ | — | $ | — | |||||||
International | 26,751 | 26,751 | — | — | |||||||||||
Total Equity Securities | 154,201 | 154,201 | — | — | |||||||||||
Available for Sale Debt Securities: | |||||||||||||||
Federal Agency Mortgage Backed Securities | 30,363 | — | 30,363 | — | |||||||||||
U.S. Government Bonds | 49,402 | 49,402 | — | — | |||||||||||
Municipal Debt Obligations | 9,548 | — | 9,548 | — | |||||||||||
Corporate Debt Obligations | 47,669 | — | 47,669 | — | |||||||||||
Total Available for Sale Debt Securities | 136,982 | 49,402 | 87,580 | — | |||||||||||
Cash and Cash Equivalents | 7,155 | 7,155 | — | — | |||||||||||
Total | $ | 298,338 | $ | 210,758 | $ | 87,580 | $ | — |
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 | $ | — |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | capital expenditures, |
• | earnings, |
• | liquidity and capital resources, |
• | ratemaking/regulatory matters/compliance matters, |
• | litigation, |
• | accounting matters, including accounting for taxes and leases, |
• | possible corporate restructurings, acquisitions and dispositions, |
• | compliance with debt and other restrictive covenants, |
• | interest rates and dividends, |
• | environmental matters, |
• | nuclear operations, |
• | operation of the Company's generating units and its transmission and distribution systems, |
• | the availability and costs of new and/or emerging technologies, and |
• | the overall economy of the Company's service area. |
• | decisions and actions of the Company's regulators and the resulting impact on the Company's operations, cost of capital, sales, and profitability, |
• | the Company's ability to fully and timely recover its costs and earn a reasonable rate of return on its invested capital through the rates that it is permitted to charge, |
• | rates, cost recovery mechanisms and other regulatory matters including the ability to recover fuel costs on a timely basis, |
• | the ability of the Company's operating partners to maintain plant operations and manage operations and maintenance ("O&M") costs at Palo Verde and its related transmission, including costs to comply with any new or expanded regulatory or environmental requirements, |
• | reductions in output at generation plants operated by the Company, |
• | the size of the Company's construction program and its ability to complete construction on budget and on time, |
• | the receipt of required approvals by regulators and other permits related to the Company’s construction programs, |
• | the Company's reliance on significant customers, |
• | the credit worthiness of the Company's customers, |
• | unscheduled outages of generating units including outages at Palo Verde, |
• | changes in customers' demand for electricity as a result of energy efficiency initiatives and emerging competing services and technologies, including distributed generation and battery storage, |
• | individual customer groups, including distributed generation customers, may not pay their full cost of service, and other customers may or may not be required to pay the difference, |
• | changes in, and the assumptions used for, pension and other post-retirement and post-employment benefit liability calculations, as well as actual and assumed investment returns on pension plan and other post-retirement plan assets, |
• | the impact of changing cost escalation and other assumptions on the Company's nuclear decommissioning liability for Palo Verde, as well as actual and assumed investment returns on assets in the NDT, |
• | disruptions in the Company's transmission and distribution systems, and in particular the lines that deliver power from its remote generating facilities, |
• | the sufficiency of the Company's insurance coverage, including availability, cost, coverage and terms, |
• | electric utility deregulation or re-regulation, |
• | regulated and competitive markets, |
• | ongoing municipal, state and federal activities, |
• | cuts in military spending or prolonged shutdowns of the federal government that reduce demand for the Company's services from military and governmental customers, |
• | political, legislative, judicial and regulatory developments, |
• | homeland security considerations, including those associated with the U.S./Mexico border region and the energy industry, |
• | changes in environmental laws and regulations and the enforcement or interpretation thereof, including those related to air, water or greenhouse gas emissions or other environmental matters, |
• | economic, commercial bank, financial and capital market conditions, |
• | increases in cost of capital, |
• | the impact of changes in interest rates or rates of inflation, |
• | actions by credit rating agencies, |
• | changes in accounting requirements and other accounting matters, |
• | changing weather trends and the impact of severe weather conditions, |
• | possible physical or cyber attacks, intrusions or other catastrophic events, |
• | the impact of lawsuits filed against the Company, |
• | Texas, New Mexico and electric industry utility service reliability standards and service requirements, |
• | uranium, natural gas, oil and wholesale electricity prices and availability, |
• | possible income tax and interest payments as a result of audit adjustments proposed by the U.S. Internal Revenue Service or state taxing authorities, |
• | the impact of recent changes to U.S. tax laws, |
• | the impact of international trade and tariff negotiations, |
• | the impact of U.S. health care reform legislation, |
• | the effectiveness of the Company's risk management activities, |
• | the Company's ability to successfully renegotiate its collective bargaining agreement, |
• | loss of key personnel, the Company's ability to recruit and retain qualified employees and the Company's ability to successfully implement succession planning, and |
• | other circumstances affecting anticipated operations, sales and costs. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) (in thousands) | $ | 6,089 | $ | (6,966 | ) | $ | 97,370 | $ | 95,285 | ||||||
Basic earnings (loss) per share | 0.15 | (0.17 | ) | 2.39 | 2.35 |
Three Months Ended | Twelve Months Ended | |||||||
March 31, 2018 net income (loss) | $ | (6,966 | ) | $ | 95,285 | |||
Change in (net of tax at 21%): | ||||||||
Increased investment and interest income, NDT (a) | 14,839 | 63 | ||||||
Increased wheeling revenues (b) | 1,358 | 2,065 | ||||||
Increased retail non-fuel base revenues (c) | 882 | 104 | ||||||
Decreased Palo Verde operations and maintenance expenses (d) | 657 | 3,404 | ||||||
(Increased) decreased income tax expense-other (e) | (1,327 | ) | 15,344 | |||||
Increased depreciation and amortization (f) | (1,036 | ) | (3,927 | ) | ||||
Increased interest charges (credits) (g) | (939 | ) | (1,866 | ) | ||||
Increased transmission and distribution operation and maintenance expenses (h) | (781 | ) | (2,374 | ) | ||||
Decreased deregulated Palo Verde Unit 3 revenues (i) | (456 | ) | (1,512 | ) | ||||
Increased operations and maintenance expenses at fossil-fuel generating plants (j) | (416 | ) | (5,559 | ) | ||||
Palo Verde performance rewards, net (k) | — | (3,954 | ) | |||||
Other | 274 | 297 | ||||||
March 31, 2019 net income | $ | 6,089 | $ | 97,370 |
(a) | Investment and interest income increased for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, primarily due to net realized and unrealized gains on securities held in the NDT. Beginning on January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments, and began recording unrealized gains and losses on equity securities held in the NDT directly in earnings. Refer to "Use of Non-GAAP Financial Measures" below for further details. |
(b) | Wheeling revenues increased for the three and twelve months ended March 31, 2019, compared to the three and twelve months ended March 31, 2018, primarily due to an increase in short-term hourly transmission sales due to favorable market conditions. |
(c) | Retail non-fuel base revenues, excluding the impact of rate changes, increased for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, primarily due to increased revenues from residential customers of $1.2 million caused by increased kWh sales that resulted from an increase in the average number of residential customers served and favorable weather compared to the three months ended March 31, 2018. |
(d) | Decreased Palo Verde O&M expenses for the twelve months ended March 31, 2019, compared to the twelve months ended March 31, 2018, primarily due to (i) lower incentives, (ii) administrative and general ("A&G") benefits, and (iii) a decrease in property insurance costs. |
(e) | Increased income tax expense-other for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, primarily due to differences in the annual effective tax rate and lower values of vested stock incentives. |
(f) | Depreciation and amortization increased for the three and twelve months ended March 31, 2019, compared to the three and twelve months ended March 31, 2018, primarily due to increased plant balances. |
(g) | Interest charges (credits) increased for the three months ended March 31, 2019, compared to the three months ended March 31, 2018, primarily due to interest expense on the $125.0 million aggregate principal amount of 4.22% Senior Notes due 2028 issued in June 2018, and an increase in the interest cost component of net periodic benefit cost of the Company’s employee benefit plans. These increases were partially offset by the purchase in lieu of redemption of $63.5 million principal amount of 2009 Series A 7.25% PCBs on February 1, 2019. |
(h) | Transmission and distribution O&M expenses increased for the twelve months ended March 31, 2019, compared to the twelve months ended March 31, 2018, primarily due to increases in payroll costs and Palo Verde transmission expenses due to storm repairs. |
(i) | Deregulated Palo Verde Unit 3 revenues decreased for the twelve months ended March 31, 2019, compared to the twelve months ended March 31, 2018, primarily due to (i) a 12.4% decrease in proxy market prices, reflecting a decline in the price of natural gas, and (ii) a decrease in generation of 7.6%, caused by a spring refueling outage at Unit 3 completed in May 2018, with no comparable outage in the twelve months ended March 31, 2018. |
(j) | O&M expenses at our fossil-fuel generating plants increased for the twelve months ended March 31, 2019, compared to the twelve months ended March 31, 2018, primarily due to outage costs related to Newman Units 2 & 4 and increased maintenance costs at Newman, Montana, and Rio Grande Power Station ("Rio Grande") in the twelve months ended March 31, 2019. These increases were partially offset by outage costs at Rio Grande Unit 8 during the twelve months ended March 31, 2018. |
(k) | Palo Verde performance rewards of $5.0 million, associated with the 2013 to 2015 performance periods, net of disallowed fuel and purchased power costs related to the resolution of the Texas fuel reconciliation proceeding designated as PUCT Docket No. 46308 for the period from April 2013 through March 2016, were recorded in June 2017, with no comparable amount in the twelve months ended March 31, 2019. |
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
(In thousands except for per share data) | |||||||
Net income (loss) (GAAP) | $ | 6,089 | $ | (6,966 | ) | ||
Adjusting items before income tax effects | |||||||
Unrealized (gains) losses, net | (16,690 | ) | 3,781 | ||||
Realized (gains) losses, net | 701 | (1,272 | ) | ||||
Total adjustments before income tax effects | (15,989 | ) | 2,509 | ||||
Income taxes on above adjustments | 3,198 | (502 | ) | ||||
Adjusting items, net of income taxes | (12,791 | ) | 2,007 | ||||
Adjusted net loss (non-GAAP) | $ | (6,702 | ) | $ | (4,959 | ) | |
Basic earnings (loss) per share (GAAP) | $ | 0.15 | $ | (0.17 | ) | ||
Adjusted basic loss per share (non-GAAP) | $ | (0.17 | ) | $ | (0.12 | ) |
Twelve Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
(In thousands except for per share data) | |||||||
Net income (GAAP) | $ | 97,370 | $ | 95,285 | |||
Adjusting items before income tax effects | |||||||
Unrealized (gains) losses, net | (1,870 | ) | 3,781 | ||||
Realized gains, net | (3,661 | ) | (9,707 | ) | |||
Total adjustments before income tax effects | (5,531 | ) | (5,926 | ) | |||
Income taxes on above adjustments | 1,107 | 1,185 | |||||
Adjusting items, net of income taxes | (4,424 | ) | (4,741 | ) | |||
Adjusted net income (non-GAAP) | $ | 92,946 | $ | 90,544 | |||
Basic earnings per share (GAAP) | $ | 2.39 | $ | 2.35 | |||
Adjusted basic earnings per share (non-GAAP) | $ | 2.28 | $ | 2.23 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
10-Year | 10-Year | ||||||||||||||||
2019 | 2018 | Average | 2019 | 2018 | Average* | ||||||||||||
Heating degree days | 1,134 | 965 | 1,123 | 2,106 | 1,677 | 2,056 | |||||||||||
Cooling degree days | 36 | 37 | 35 | 3,173 | 2,882 | 2,863 |
Comparisons of kWh sales and operating revenues are shown below (in thousands): | ||||||||||||||
Increase (Decrease) | ||||||||||||||
Three Months Ended March 31: | 2019 | 2018 | Amount | Percent | ||||||||||
kWh sales: | ||||||||||||||
Retail: | ||||||||||||||
Residential | 574,089 | 559,563 | 14,526 | 2.6 | % | |||||||||
Commercial and industrial, small | 496,367 | 498,675 | (2,308 | ) | (0.5 | ) | ||||||||
Commercial and industrial, large | 252,056 | 248,285 | 3,771 | 1.5 | ||||||||||
Sales to public authorities | 331,947 | 328,329 | 3,618 | 1.1 | ||||||||||
Total retail sales | 1,654,459 | 1,634,852 | 19,607 | 1.2 | ||||||||||
Wholesale: | ||||||||||||||
Sales for resale - full requirement customer | 11,770 | 11,730 | 40 | 0.3 | ||||||||||
Off-system sales | 837,162 | 864,216 | (27,054 | ) | (3.1 | ) | ||||||||
Total wholesale sales | 848,932 | 875,946 | (27,014 | ) | (3.1 | ) | ||||||||
Total kWh sales | 2,503,391 | 2,510,798 | (7,407 | ) | (0.3 | ) | ||||||||
Operating revenues: | ||||||||||||||
Non-fuel base revenues: | ||||||||||||||
Retail: | ||||||||||||||
Residential | $ | 54,452 | $ | 53,292 | $ | 1,160 | 2.2 | % | ||||||
Commercial and industrial, small | 33,004 | 33,297 | (293 | ) | (0.9 | ) | ||||||||
Commercial and industrial, large | 7,246 | 7,126 | 120 | 1.7 | ||||||||||
Sales to public authorities | 17,285 | 17,156 | 129 | 0.8 | ||||||||||
Total retail non-fuel base revenues (1) | 111,987 | 110,871 | 1,116 | 1.0 | ||||||||||
Wholesale: | ||||||||||||||
Sales for resale - full requirement customer | 546 | 476 | 70 | 14.7 | ||||||||||
Total non-fuel base revenues | 112,533 | 111,347 | 1,186 | 1.1 | ||||||||||
Fuel revenues: | ||||||||||||||
Recovered from customers during the period | 28,545 | 39,944 | (11,399 | ) | (28.5 | ) | ||||||||
Over collection of fuel (2) | (12,758 | ) | (7,950 | ) | (4,808 | ) | (60.5 | ) | ||||||
Total fuel revenues (3)(4) | 15,787 | 31,994 | (16,207 | ) | (50.7 | ) | ||||||||
Off-system sales (4)(5) | 34,979 | 23,055 | 11,924 | 51.7 | ||||||||||
Wheeling revenues (6) | 6,005 | 4,286 | 1,719 | 40.1 | ||||||||||
Energy efficiency cost recovery | 2,508 | 1,916 | 592 | 30.9 | ||||||||||
Miscellaneous (6) | 2,010 | 2,459 | (449 | ) | (18.3 | ) | ||||||||
Total revenues from customers | 173,822 | 175,057 | (1,235 | ) | (0.7 | ) | ||||||||
Other (6) | 541 | 656 | (115 | ) | (17.5 | ) | ||||||||
Total operating revenues | $ | 174,363 | $ | 175,713 | $ | (1,350 | ) | (0.8 | ) | |||||
Average number of retail customers (7): | ||||||||||||||
Residential | 377,396 | 371,351 | 6,045 | 1.6 | % | |||||||||
Commercial and industrial, small | 42,222 | 42,205 | 17 | — | ||||||||||
Commercial and industrial, large | 48 | 48 | — | — | ||||||||||
Sales to public authorities | 6,204 | 5,592 | 612 | 10.9 | ||||||||||
Total | 425,870 | 419,196 | 6,674 | 1.6 |
(1) | 2019 and 2018 include $5.1 million and $4.1 million, respectively, base rate decreases related to the reduction in federal statutory income tax rate enacted under the TCJA. |
(2) | 2018 includes the portion of the DOE refunds related to spent fuel storage of $1.1 million that was credited to customers through the applicable fuel adjustment clauses. |
(3) | Includes deregulated Palo Verde Unit 3 revenues for the New Mexico jurisdiction of $1.9 million and $2.4 million in 2019 and 2018, respectively. |
(4) | Off-system sales increased due to favorable market conditions and lower gas prices, which resulted in increased margins credited to customers through the fuel adjustment clause. |
(5) | Includes retained margins of $0.9 million and $0.6 million in 2019 and 2018, respectively. |
(6) | Represents revenue with no related kWh sales. |
(7) | The number of retail customers presented is based on the number of service locations. |
Comparisons of kWh sales and operating revenues are shown below (in thousands): | ||||||||||||||
Increase (Decrease) | ||||||||||||||
Twelve Months Ended March 31: | 2019 | 2018 | Amount | Percent | ||||||||||
kWh sales: | ||||||||||||||
Retail: | ||||||||||||||
Residential | 3,003,221 | 2,837,694 | 165,527 | 5.8 | % | |||||||||
Commercial and industrial, small | 2,429,612 | 2,408,795 | 20,817 | 0.9 | ||||||||||
Commercial and industrial, large | 1,054,605 | 1,040,606 | 13,999 | 1.3 | ||||||||||
Sales to public authorities | 1,566,845 | 1,557,436 | 9,409 | 0.6 | ||||||||||
Total retail sales | 8,054,283 | 7,844,531 | 209,752 | 2.7 | ||||||||||
Wholesale: | ||||||||||||||
Sales for resale - full requirement customer | 59,031 | 63,696 | (4,665 | ) | (7.3 | ) | ||||||||
Off-system sales | 2,660,907 | 2,310,338 | 350,569 | 15.2 | ||||||||||
Total wholesale sales | 2,719,938 | 2,374,034 | 345,904 | 14.6 | ||||||||||
Total kWh sales | 10,774,221 | 10,218,565 | 555,656 | 5.4 | ||||||||||
Operating revenues: | ||||||||||||||
Non-fuel base revenues: | ||||||||||||||
Retail: | ||||||||||||||
Residential | $ | 298,757 | $ | 289,866 | $ | 8,891 | 3.1 | % | ||||||
Commercial and industrial, small | 194,048 | 198,311 | (4,263 | ) | (2.1 | ) | ||||||||
Commercial and industrial, large | 35,040 | 37,629 | (2,589 | ) | (6.9 | ) | ||||||||
Sales to public authorities | 95,589 | 97,496 | (1,907 | ) | (2.0 | ) | ||||||||
Total retail non-fuel base revenues (1)(2) | 623,434 | 623,302 | 132 | — | ||||||||||
Wholesale: | ||||||||||||||
Sales for resale - full requirement customer | 2,850 | 2,743 | 107 | 3.9 | ||||||||||
Total non-fuel base revenues | 626,284 | 626,045 | 239 | — | ||||||||||
Fuel revenues: | ||||||||||||||
Recovered from customers during the period | 145,094 | 210,704 | (65,610 | ) | (31.1 | ) | ||||||||
Over collection of fuel (3) | (9,544 | ) | (16,553 | ) | 7,009 | 42.3 | ||||||||
Total fuel revenues (4)(5) | 135,550 | 194,151 | (58,601 | ) | (30.2 | ) | ||||||||
Off-system sales (6) | 98,342 | 67,841 | 30,501 | 45.0 | ||||||||||
Wheeling revenues (7) | 20,745 | 18,133 | 2,612 | 14.4 | ||||||||||
Energy efficiency cost recovery (8) | 9,480 | 1,916 | 7,564 | — | ||||||||||
Miscellaneous (7) | 7,739 | 8,836 | (1,097 | ) | (12.4 | ) | ||||||||
Total revenues from customers | 898,140 | 916,922 | (18,782 | ) | (2.0 | ) | ||||||||
Other (7)(9) | 4,113 | 4,253 | (140 | ) | (3.3 | ) | ||||||||
Total operating revenues | $ | 902,253 | $ | 921,175 | $ | (18,922 | ) | (2.1 | ) | |||||
Average number of retail customers (10): | ||||||||||||||
Residential | 375,649 | 369,554 | 6,095 | 1.6 | % | |||||||||
Commercial and industrial, small | 42,354 | 42,010 | 344 | 0.8 | ||||||||||
Commercial and industrial, large | 48 | 48 | — | — | ||||||||||
Sales to public authorities | 5,898 | 5,571 | 327 | 5.9 | ||||||||||
Total | 423,949 | 417,183 | 6,766 | 1.6 |
(1) | 2019 and 2018 include base rate increase related to the 2017 PUCT Final Order effective July 18, 2017. |
(2) | 2019 and 2018 include $29.2 million and $4.9 million (for the period January 1, 2018 through March 31, 2018), respectively, base rate decreases related to the reduction in federal statutory income tax rate enacted under the TCJA. |
(3) | 2018 includes the portion of the DOE refunds related to spent fuel storage of $1.1 million that was credited to customers through the applicable fuel adjustment clauses. |
(4) | 2018 includes $5.0 million related to the Palo Verde performance rewards, net. |
(5) | Includes deregulated Palo Verde Unit 3 revenues for the New Mexico jurisdiction of $7.6 million and $9.4 million in 2019 and 2018, respectively. |
(6) | Includes retained margins of $2.4 million and $1.8 million in 2019 and 2018, respectively. |
(7) | Represents revenue with no related kWh sales. |
(8) | The Company implemented ASU 2014-09, Revenue from Contracts with Customers, January 1, 2018, and following the adoption of the standard, revenues related to reimbursed costs of energy efficiency programs approved by the Company's regulators are reported in operating revenues from customers. Related expenses are reported in O&M expenses. |
(9) | Includes energy efficiency bonuses of $1.3 million and $1.2 million in 2019 and 2018, respectively. |
(10) | The number of retail customers presented is based on the number of service locations. |
Three Months Ended March 31, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Fuel Type | Cost | MWh | Cost per MWh | Cost | MWh | Cost per MWh | |||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Natural gas | $ | 22,279 | 915,521 | $ | 24.33 | $ | 31,145 | 985,107 | $ | 31.62 | |||||||||||
Coal (a) | 165 | — | — | 165 | — | — | |||||||||||||||
Nuclear | 10,919 | 1,364,307 | 8.00 | 9,744 | (b) | 1,346,507 | 8.12 | ||||||||||||||
Total | 33,363 | 2,279,828 | 14.63 | 41,054 | 2,331,614 | 18.12 | |||||||||||||||
Purchased power: | |||||||||||||||||||||
Photovoltaic | 4,793 | 58,768 | 81.56 | 5,024 | 61,570 | 81.60 | |||||||||||||||
Other | 10,170 | 265,303 | 38.33 | 6,110 | 228,244 | 26.77 | |||||||||||||||
Total purchased power | 14,963 | 324,071 | 46.17 | 11,134 | 289,814 | 38.42 | |||||||||||||||
Total fuel and purchased power | $ | 48,326 | 2,603,899 | 18.56 | $ | 52,188 | 2,621,428 | 20.36 |
Twelve Months Ended March 31, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Fuel Type | Cost | MWh | Cost per MWh | Cost | MWh | Cost per MWh | |||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Natural gas | $ | 120,717 | 4,960,277 | $ | 24.34 | $ | 147,266 | 4,255,832 | $ | 34.60 | |||||||||||
Coal (a) | 661 | — | — | 532 | — | — | |||||||||||||||
Nuclear | 40,293 | 4,931,658 | 8.17 | 41,719 | (b) | 5,092,305 | 8.43 | ||||||||||||||
Total | 161,671 | 9,891,935 | 16.34 | 189,517 | 9,348,137 | 20.40 | |||||||||||||||
Purchased power: | |||||||||||||||||||||
Photovoltaic | 21,997 | 272,767 | 80.64 | 23,510 | 288,992 | 81.35 | |||||||||||||||
Other | 41,579 | 1,116,799 | 37.23 | 33,633 | 1,113,553 | 30.20 | |||||||||||||||
Total purchased power | 63,576 | 1,389,566 | 45.75 | 57,143 | 1,402,545 | 40.74 | |||||||||||||||
Total fuel and purchased power | $ | 225,247 | 11,281,501 | 19.97 | $ | 246,660 | 10,750,682 | 23.05 |
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Allowance for equity funds used during construction | $ | 1,001 | $ | 920 | $ | 3,534 | $ | 3,130 | |||||||
Investment and interest income, net: | |||||||||||||||
NDT unrealized gains (losses), net | 16,690 | (3,781 | ) | 1,870 | (3,781 | ) | |||||||||
NDT realized gains (losses), net | (701 | ) | 1,272 | 3,661 | 9,707 | ||||||||||
NDT dividends and interest income | 1,788 | 1,678 | 7,337 | 6,806 | |||||||||||
Expected returns on benefit plans (ASU 2017-07) | 5,913 | 5,928 | 23,496 | 21,746 | |||||||||||
Other | 17 | 58 | 565 | 267 | |||||||||||
23,707 | 5,155 | 36,929 | 34,745 | ||||||||||||
Miscellaneous non-operating income | 3,048 | 3,136 | 12,735 | 12,292 | |||||||||||
Miscellaneous non-operating deductions | (2,357 | ) | (2,743 | ) | (11,594 | ) | (11,494 | ) | |||||||
Total other income (deductions) | $ | 25,399 | $ | 6,468 | $ | 41,604 | $ | 38,673 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) | Issuer Purchases of Equity Securities. |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (Including Commissions) | Total Number of Shares Purchased as Part of a Publicly Announced Program | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
January 1 to January 31, 2019 | 12,425 | $ | 51.24 | — | 393,816 | ||||||||
February 1 to February 28, 2019 | — | — | — | 393,816 | |||||||||
March 1 to March 31, 2019 | — | — | — | 393,816 |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Exhibit | ||
15 | |||
31.01 | |||
32.01 | |||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Linkbase Document | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||
EL PASO ELECTRIC COMPANY | |
By: | /s/ NATHAN T. HIRSCHI |
Nathan T. Hirschi | |
Senior Vice President - Chief Financial Officer | |
(Duly Authorized Officer and Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of El Paso Electric Company (the "Company"): |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
5. | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
EL PASO ELECTRIC COMPANY | ||
By: | /s/ Mary E. Kipp | |
Mary E. Kipp | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of El Paso Electric Company (the "Company"): |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and |
5. | The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. |
EL PASO ELECTRIC COMPANY | ||
By: | /s/ Nathan T. Hirschi | |
Nathan T. Hirschi | ||
Senior Vice President - | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
May 8, 2019 |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mary E. Kipp |
Mary E. Kipp |
President and Chief Executive Officer |
/s/ Nathan T. Hirschi |
Nathan T. Hirschi |
Senior Vice President - |
Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 30, 2019 |
|
Document and Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ee | |
Entity Registrant Name | EL PASO ELECTRIC CO /TX/ | |
Entity Central Index Key | 0000031978 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 40,738,183 |
Balance Sheets Parenthetical - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Nuclear fuel; fuel in process | $ 73,105 | $ 62,833 |
Allowance for Doubtful Accounts Receivable, Current | $ 1,514 | $ 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 | 65,678,261 | 65,707,156 |
Common stock, Restricted shares | 150,427 | 121,532 |
Treasury Stock, Shares | 25,090,505 | 25,147,567 |
Statements Of Operations - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Operating revenues | $ 174,363 | $ 175,713 | $ 902,253 | $ 921,175 |
Operating expenses: | ||||
Fuel and purchased power | 48,326 | 52,188 | 225,247 | 246,660 |
Operations and maintenance | 80,413 | 80,160 | 335,136 | 321,254 |
Depreciation and amortization | 25,126 | 23,814 | 97,694 | 92,723 |
Taxes other than income taxes | 16,189 | 15,507 | 71,682 | 70,640 |
Utilities operating expense | 170,054 | 171,669 | 729,759 | 731,277 |
Operating income | 4,309 | 4,044 | 172,494 | 189,898 |
Other income (deductions): | ||||
Allowance for equity funds used during construction | 1,001 | 920 | 3,534 | 3,130 |
Investment and interest income, net | 23,707 | 5,155 | 36,929 | 34,745 |
Miscellaneous non-operating income | 3,048 | 3,136 | 12,735 | 12,292 |
Miscellaneous non-operating deductions | (2,357) | (2,743) | (11,594) | (11,494) |
Nonoperating income | 25,399 | 6,468 | 41,604 | 38,673 |
Interest charges (credits): | ||||
Interest on long-term debt and revolving credit facility | 18,989 | 17,988 | 76,425 | 72,591 |
Other interest | 5,233 | 4,654 | 18,469 | 18,479 |
Capitalized interest | (1,532) | (1,214) | (5,801) | (4,942) |
Allowance for borrowed funds used during construction | (972) | (898) | (3,686) | (3,082) |
Interest expense | 21,718 | 20,530 | 85,407 | 83,046 |
Income (loss) before income taxes | 7,990 | (10,018) | 128,691 | 145,525 |
Income tax expense (benefit) | 1,901 | (3,052) | 31,321 | 50,240 |
Net income (loss) | $ 6,089 | $ (6,966) | $ 97,370 | $ 95,285 |
Basic earnings (loss) per share | $ 0.15 | $ (0.170) | $ 2.39 | $ 2.35 |
Diluted earnings (loss) per share | 0.15 | (0.170) | 2.39 | 2.34 |
Dividends declared per share of common stock | $ 0.360 | $ 0.335 | $ 1.440 | $ 1.340 |
Weighted average number of shares outstanding | 40,582,936 | 40,491,194 | 40,543,986 | 40,440,189 |
Weighted average number of shares and dilutive potential shares outstanding | 40,663,753 | 40,491,194 | 40,661,228 | 40,563,625 |
Statements of Change in Common Stock Equity Parenthetical - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Common stock, dividends declared, per share | $ 0.360 | $ 0.335 | $ 1.440 | $ 1.340 |
Statements Of Cash Flows Parenthetical - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Payments to fund Decommissioning Fund | $ 0.5 | $ 0.5 |
Principles Of Preparation |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 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 March 31, 2019 and December 31, 2018; the results of its operations and comprehensive operations for the three and twelve months ended March 31, 2019 and 2018; changes in common stock equity and its cash flows for the three months ended March 31, 2019 and 2018. The results of operations and comprehensive operations for the three months ended March 31, 2019 and 2018, and the cash flows for the three months ended March 31, 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 ("ARO"). 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 $19.3 million at March 31, 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. The ASU also makes targeted amendments to the current impairment model for available-for-sale debt securities. 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 assessing the future impact of ASU 2016-13.
|
Revenues |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 and twelve months ended March 31, 2019 and 2018 (in thousands):
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 $0.2 million and $2.5 million of uncollectible expense for the three and twelve months ended March 31, 2019, respectively. |
Accumulated Other Comprehensive Income (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Income (Loss)
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) for the three and twelve months ended March 31, 2019 and 2018 are as follows (in thousands):
|
Regulation |
3 Months Ended |
---|---|
Mar. 31, 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. 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 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 ("Four Corners") 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, which expired on January 9, 2019, with a reconciliation of any over-or under-charge to be addressed in a separate proceeding. 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. 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. Texas Energy Efficiency Cost Recovery Factor. On May 1, 2017, the Company filed its annual application with the PUCT, which was assigned PUCT Docket No. 47125, to establish its energy efficiency cost recovery factor 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 energy efficiency cost recovery factor 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 Administrative Law Judge 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 energy efficiency cost recovery factor 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 anticipates requesting an approval for an amount to be determined for the 2018 energy efficiency program results in accordance with PUCT rules. The Company cannot predict the outcome of this filing at this time. 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. The Texas fixed fuel factor will continue thereafter until changed by the PUCT. As of March 31, 2019, the Company had a net fuel over-recovery balance of approximately $19.3 million in Texas. 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. The Company cannot predict the outcome of this filing at this time. Fuel Reconciliation Proceeding. On September 27, 2016, the Company filed an application with the PUCT, designated as PUCT Docket No. 46308, to reconcile $436.6 million of Texas fuel and purchased power expenses incurred during the period of April 1, 2013, through March 31, 2016. On June 29, 2017, the PUCT approved a settlement in this proceeding. The settlement provided for the reconciliation of fuel and purchased power costs incurred from April 1, 2013, through March 31, 2016. The financial results for the twelve months ended March 31, 2018, included a $5.0 million, pre-tax increase to income reflecting the settlement of the Texas fuel reconciliation proceeding. This amount represents Palo Verde Generating Station ("Palo Verde") performance rewards associated with the 2013 to 2015 performance periods net of disallowed fuel and purchased power costs as approved in the settlement. Additionally, the settlement modified and tightened the Palo Verde performance rewards measurement bands beginning with the 2018 performance period. The April 1, 2016, through March 31, 2019, Texas jurisdictional fuel and purchased power costs subject to prudence review by the PUCT later this year total approximately $361.5 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 Administrative Law Judge issued a proposal for decision on March 19, 2019, that approved the project as proposed by the Company. The Company awaits a final order from the PUCT and cannot predict the outcome of the case at this time. 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. On April 30, 2019, the Company revised the request to $8.1 million to reflect a reclassified item that would likely be included in a future Distribution Cost Recovery Factor ("DCRF") filing. The Company cannot predict the outcome of this filing at this time. Distribution Cost Recovery Factor. The Company filed an application with the PUCT and each of its Texas municipalities to establish its DCRF on March 28, 2019 (the "2019 DCRF rate filing"). The case was assigned PUCT Docket No. 49395. The 2019 DCRF rate filing is designed to recover a $7.9 million Texas jurisdictional 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. The Company cannot predict the outcome of this filing at this time. Other Required Approvals. The Company has obtained other required approvals for tariffs and other approvals required by the Texas Public Utility Regulatory Act and the PUCT. New Mexico Regulatory Matters Future New Mexico Rate Case Filing. On April 12, 2017, the NMPRC issued an order in Case No. 15-00109-UT requiring the Company to make a rate filing in New Mexico no later than July 31, 2019, using an appropriate historical test year period. The Company expects to file its New Mexico rate case using a December 31, 2018, historical test year period on July 31, 2019. 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 February 23, 2018, the Company responded to a NMPRC Staff inquiry regarding the proceeding. 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"). Additionally, the Renewable Portfolio Standard ("RPS") costs for New Mexico are recovered through a separate RPS Cost Rider that is updated annually. 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 Fuel and Purchased Power Cost Adjustment Clause ("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 March 31, 2019, that total approximately $96.4 million. At March 31, 2019, the Company had a net fuel over-recovery balance of approximately $2.5 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 RPS costs for New Mexico are recovered through a separate RPS Cost Rider and not through the FPPCAC. At March 31, 2019, the Company had a net fuel over-recovery balance related to the RPS Cost Rider of approximately $1.9 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. 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. 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 includes a request for a base incentive of 7.1% of program expenditures, or approximately $0.4 million annually for 2019-2021. The application was assigned Case No. 18-00116-UT and hearings were held on November 7, 2018, and November 8, 2018. The Hearing Examiner issued a Recommended Decision on January 30, 2019, and a final order was adopted by the NMPRC, with minor program modifications, on March 6, 2019. 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 prior order and dismissed the Community Solar application without prejudice. The case is now closed. Integrated Resource Plan. On September 17, 2018, the Company filed its Integrated Resource Plan 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. The Company is awaiting action by the NMPRC on the Staff recommendation. The Company cannot predict the outcome of the NMPRC's review of the plan or the outcome of this case at this time. 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, which have optional redemptions beginning in 2019. 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. Additionally, the Company is preparing for potential transactions related to the 2009 Series A 7.25% PCBs and 2009 Series B 7.25% PCBs. On February 1, 2019, and April 1, 2019, the Company purchased in lieu of redemption all the $63.5 million 2009 Series A 7.25% PCBs and the $37.1 million 2009 Series B 7.25% PCBs, respectively. The bonds were purchased utilizing funds borrowed under the RCF. The Company is currently holding the bonds and may remarket them or replace them with debt instruments of equivalent value at a future date depending on the Company's financing needs and market conditions. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. Amendments to the New Mexico Renewable Energy Act (“REA”). The REA requires electric utilities to meet a renewable portfolio standard (“RPS”) of twenty percent of its total retail sales to New Mexico customers by 2020, reduced for sales to qualifying large non-governmental customers whose costs are capped under the REA (“Large Customer Adjustment”) and subject to a reasonable cost threshold (“RCT”) established by the NMPRC and currently set by the NMPRC at 3 percent of customers’ bills. Effective June 14, 2019, the New Mexico Energy Transition Act amends the REA (the “Amended REA”) to, among other amendments: (i) increase the RPS to forty percent by 2025, fifty percent by 2030, and eighty percent by 2040; (ii) impose a zero-carbon standard by 2045; (iii) eliminate the Large Customer Adjustment; (iv) set a statutory RCT; and (v) provide cost recovery for certain undepreciated investments and decommissioning costs (i.e., coal-fired generation) associated with generation required by the NMPRC to be discontinued and replaced with lower or zero-carbon generation. In administering the eighty percent RPS and zero-carbon standards, the Amended REA requires by Commission to consider certain factors, including safety, reliability and rate impact to customers. The NMPRC has not docketed a rulemaking proceeding to implement the Amended REA. Under current NMPRC rules, the Company is required to file its next annual REA procurement plan case on May 1, 2019. On April 24, 2019, in NMPRC Case No. 19-00099-UT, the NMPRC granted the Company a variance authorizing the Company to file its next annual REA procurement plan case on October 1, 2019. The Company cannot predict the outcome of the filing at this time. Other Required Approvals. The Company has obtained other required approvals for tariffs and other approvals as required by the New Mexico Public Utility Act and the NMPRC. Federal Regulatory Matters Inquiry Regarding the Effect of the TCJA on Commission-Jurisdictional Rates and Order to Show Cause. On March 15, 2018, the FERC issued two show cause orders under Section 206 of the Federal Power Act and Rule 209(a) of the FERC’s Rules of Practice and Procedure, directing 48 individual public utilities with stated transmission rates or transmission formula rates with a fixed line item of 35% for the federal income tax component to, within 60 days of the date of the orders, either (1) propose revisions to their transmission rates under their open access transmission tariffs or transmission owner tariffs on file with the FERC, or (2) show cause why they should not be required to do so ("Show Cause Proceeding"). The Company was included in the list of public utilities impacted by the FERC orders. On May 14, 2018, the Company submitted its response, as required by the FERC order, which demonstrated that the reduced annual income tax does not cause the Company's total transmission revenues to become excessive and therefore no rate reduction was justified. Instead, the Company stated in its response that it will prepare for a future filing in which it will seek approval for revised Open Access Transmission Tariff ("OATT") rates that would include the recovery of an increased total transmission revenue requirement from OATT customers based on current circumstances and appropriate forward-looking adjustments. On November 15, 2018, FERC issued an order finding that the Company had demonstrated that no rate reduction was justified and terminating the Show Cause Proceeding. The Company expects to file its request for approval to revise OATT rates in the third quarter of 2019. Notice of Proposed Rulemaking on Public Utility Transmission Changes to Address Accumulated Deferred Income Taxes. On November 15, 2018, the FERC issued a Notice of Proposed Rulemaking ("NOPR") that proposes to direct public utilities with transmission OATT rates, a transmission owner tariff or a rate schedule to determine the amount of excess or deficient accumulated deferred income taxes caused by the TCJA’s reduction to the federal corporate income tax rate and return or recover this amount to or from customers. The NOPR has been assigned FERC Docket No. RM19-5-000. The Company is currently evaluating the impact of this proposed rulemaking. Issuance of Long-Term Debt, Securities Financing, and Guarantee of Debt. On October 31, 2017, the FERC issued an order in Docket No. ES17-54-000 approving the Company’s filing to (i) amend and extend the RCF; (ii) issue up to $350.0 million in long-term debt; (iii) guarantee the issuance of up to $65.0 million of long-term debt by the RGRT; and (iv) redeem, refinance, and/or replace the $63.5 million 2009 Series A 7.25% PCBs and the $37.1 million 2009 Series B 7.25% PCBs, which have optional redemptions beginning in 2019. The order also approved the Company's request to continue to utilize the Company's existing RCF with the ability to amend and extend at a future date. The authorization is effective from November 15, 2017, through November 14, 2019, and supersedes prior FERC approvals. 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, and the RGRT issued $65.0 million in aggregate principal amount of its 4.07% Senior Guaranteed Notes due August 15, 2025. Also, 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. Additionally, the Company is preparing for potential transactions related to the 2009 Series A 7.25% PCBs and 2009 Series B 7.25% PCBs. On February 1, 2019, and April 1, 2019, the Company purchased in lieu of redemption all the $63.5 million 2009 Series A 7.25% PCBs and the $37.1 million 2009 Series B 7.25% PCBs, respectively. The bonds were purchased utilizing funds borrowed under the RCF. The Company is currently holding the bonds and may remarket them or replace them with debt instruments of equivalent value at a future date depending on the Company's financing needs and market conditions and in accordance with FERC action in response to the Company’s most recent FERC application (see below). On January 30, 2019, the Company submitted an application with the FERC 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. Included in the FERC application, the Company also requested various debt-related authorizations: approval to utilize the existing RCF for short-term borrowing not to exceed $400.0 million at any one time; to issue up to $225.0 million in new long-term debt; and to remarket the $63.5 million 2009 Series A 7.25% PCBs and the $37.1 million 2009 Series B 7.25% PCBs in the form of replacement bonds or senior notes of equivalent value, not to exceed $100.6 million. On April 18, 2019, the FERC issued an order authorizing the issuances through April 18, 2021. See Part I, Item 1, Financial Statements, Note M of Notes to Financial Statements for further discussion. Other Required Approvals. The Company has obtained required approvals for rates, tariffs and other approvals as required by the Federal Power Act and the FERC. |
Palo Verde |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 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, 2018, APS filed a $10.2 million claim for the period July 1, 2017 through June 30, 2018. The Company's share of this claim is approximately $1.6 million. The DOE approved the claim on April 10, 2019. Any reimbursement is anticipated to be received in the second quarter of 2019, and 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):
|
Common Stock |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 $14.7 million and $13.6 million in quarterly cash dividends during the three months ended March 31, 2019 and 2018, respectively. The Company paid a total of $58.6 million and $54.3 million in quarterly cash dividends during the twelve months ended March 31, 2019 and 2018, respectively.
________________________
Authorization to Issue Shares On January 30, 2019, the Company submitted an application with both the NMPRC and the FERC 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 Company received final approvals from the NMPRC and the FERC on March 27, 2019 and April 18, 2019, respectively. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 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 March 31, 2019 and 2018, the Company’s effective tax rate was 23.8% and 30.5%, respectively. For the twelve months ended March 31, 2019 and 2018, the Company's effective tax rate was 24.3% and 34.5%, respectively. The federal statutory tax rate is 21% in 2019 and in 2018, and 35.0% in 2017. The Company's effective tax rate for the three months ended March 31, 2019 differs from the Company's effective tax rate for the three months ended March 31, 2018 due to lower values of stock incentives vested and other permanent differences. The Company's effective tax rate for the twelve months ended March 31, 2019 differs from the Company's effective tax rate for the twelve months ended March 31, 2018 due to the change in the federal income tax rate partially offset by an increase in state tax reserves and other permanent differences. |
Commitments, Contingencies And Uncertainties |
3 Months Ended |
---|---|
Mar. 31, 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. 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 General. 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. |
Leases (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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:
Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
Supplemental cash flow information related to leases was as follows (in thousands):
ROU assets obtained in exchange for lease obligations (in thousands):
Maturities of operating lease liabilities at March 31, 2019 were as follows (in thousands):
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):
|
Litigation |
3 Months Ended |
---|---|
Mar. 31, 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. |
Employee Benefits |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 and twelve months ended March 31, 2019 and 2018, is made up of the components listed below as determined using the projected unit credit actuarial cost method (in thousands):
During the three months ended March 31, 2019, the Company contributed $3.0 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 and twelve months ended March 31, 2019 and 2018, is made up of the components listed below (in thousands):
During the three months ended March 31, 2019, the Company contributed $0.2 million of its projected $0.5 million 2019 annual contribution to its other postretirement benefits plan. |
Financial Instruments And Investments (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 (including restricted cash), 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):
Marketable Securities. The Company's marketable securities, included in decommissioning trust funds in the balance sheets, are reported at fair value which was $298.3 million and $276.9 million at March 31, 2019 and December 31, 2018, respectively. The investments in the Company's Palo Verde nuclear decommissioning trust funds ("NDT") are classified as available for sale debt securities, 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 debt and 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. The reported fair values include gross unrealized losses on securities classified as available for sale whose impairment the Company has deemed to be temporary. The tables below present the gross unrealized losses and the fair value of these securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
_________________
_________________
The Company monitors the length of time specific securities trade 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 of debt securities classified as available for sale is considered to be other than temporary. The Company recognizes impairment losses on certain of its available for sale debt securities deemed to be other than temporary. In accordance with the FASB guidance, these impairment losses are recognized in net income, and a lower cost basis is established for these securities. In addition, the Company will research the future prospects of individual securities as necessary. The Company does not anticipate expending monies held in trust before 2044 or a later period when decommissioning of Palo Verde begins. For the three and twelve months ended March 31, 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 include gross unrealized gains which have not been recognized in the Company's net income. The table below presents the unrecognized gross unrealized gains and the fair value of these securities, aggregated by investment category (in thousands):
The Company's marketable securities include investments in mortgage backed securities, municipal, corporate and federal debt obligations. The contractual year of maturity for these available-for-sale debt securities as of March 31, 2019, is as follows (in thousands):
The Company's available for sale securities in the NDT are sold from time to time and the Company uses 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 and twelve months ended March 31, 2019 and 2018, and the related effects on pre-tax income are as follows (in thousands):
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 months ended March 31, 2019 and 2018, and related effects on pre-tax income are as follows (in thousands):
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:
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. The Company analyzes available-for-sale securities to determine if losses are other than temporary. The fair value of the NDT and investments in debt securities at March 31, 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):
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 and twelve months ended March 31, 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 and twelve months ended March 31, 2019 and 2018. |
Long-Term Debt and Financing Obligations (Notes) |
3 Months Ended |
---|---|
Mar. 31, 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. The Company is currently holding the PCBs and may remarket them or replace them with debt instruments of equivalent value at a future date depending on the Company's financing needs and market conditions, and in accordance with the Company's regulators' approvals. |
Principles Of Preparation (Policy) |
3 Months Ended |
---|---|
Mar. 31, 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 ("ARO"). 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 $19.3 million at March 31, 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 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, 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. The ASU also makes targeted amendments to the current impairment model for available-for-sale debt securities. 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 assessing the future impact of ASU 2016-13. |
Principles Of Preparation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow, Supplemental Disclosures |
|
Revenues (Table) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates revenue from contracts with customers, for the three and twelve months ended March 31, 2019 and 2018 (in thousands):
|
Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from Accumulated Other Comprehensive Income (Loss) for the three and twelve months ended March 31, 2019 and 2018 are as follows (in thousands):
|
Palo Verde (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
|
Common Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded From Computation Of Earnings Per Share |
________________________
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost and Supplemental Information | The components of lease expense are as follows:
Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
Supplemental cash flow information related to leases was as follows (in thousands):
ROU assets obtained in exchange for lease obligations (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities at March 31, 2019 were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Employee Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The net periodic benefit cost recognized for the three and twelve months ended March 31, 2019 and 2018, is made up of the components listed below as determined using the projected unit credit actuarial cost method (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The net periodic benefit recognized for the three and twelve months ended March 31, 2019 and 2018, is made up of the components listed below (in thousands):
|
Financial Instruments And Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Gross Unrealized Gains (Losses) And the Fair Value | The tables below present the gross unrealized losses and the fair value of these securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
_________________
_________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Securities And The Related Effects On Pre-Tax Income | The proceeds from the sale of these securities during the three and twelve months ended March 31, 2019 and 2018, and the related effects on pre-tax income are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement Inputs, Disclosure | The fair value of the NDT and investments in debt securities at March 31, 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):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gains and losses recognized [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Year For Maturity Of Available-For-Sale Securities | The contractual year of maturity for these available-for-sale debt securities as of March 31, 2019, is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gains and losses recognized [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The unrealized gains and losses recognized during the three months ended March 31, 2019 and 2018, and related effects on pre-tax income are as follows (in thousands):
|
Principles Of Preparation (Accrued Unbilled Revenues) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Accounting Policies [Abstract] | ||
Accrued unbilled revenues | $ 19.3 | $ 21.6 |
Principles Of Preparation (Depreciation) (Details) |
3 Months Ended |
---|---|
Mar. 31, 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 Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Jan. 01, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability | $ 5,888 | ||||
Operating Lease, Right-of-Use Asset | $ 6,217 | ||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |
Stranded taxes in accumulated other comprehensive income | $ (37,127) | $ (38,784) | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability | $ 6,300 | ||||
Operating Lease, Right-of-Use Asset | $ 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 | ||||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 12 months |
Principles Of Preparation (Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Supplemental Cash Flow Information [Abstract] | ||
Interest on long-term debt and borrowings under the revolving credit facility | $ 11,592 | $ 11,967 |
Income tax refunded, net | (300) | (1,060) |
Changes in accrued plant additions | (218) | (108) |
Right-of-use assets obtained in exchange for lease obligations | 6,217 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issued | 524 | 513 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issued | $ 2,143 | $ 1,499 |
Disaggregation of Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 173,822 | $ 175,057 | $ 898,140 | $ 916,922 |
Other | 541 | 656 | 4,113 | 4,253 |
Total operating revenues | 174,363 | 175,713 | 902,253 | 921,175 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 132,126 | 146,628 | 775,174 | 826,148 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 35,691 | 24,143 | 102,221 | 72,641 |
Wheeling (transmission) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 6,005 | $ 4,286 | $ 20,745 | $ 18,133 |
Revenues Accounts Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2019 |
|
Revenue Recognition [Abstract] | ||
Provision for Doubtful Accounts | $ 0.2 | $ 2.5 |
Palo Verde (Narrative) (Details) - Suit Against Department of Energy for Spent Fuel - USD ($) $ in Thousands |
Oct. 31, 2018 |
Aug. 18, 2014 |
Dec. 19, 2012 |
---|---|---|---|
Jointly Owned Utility Plant Interests [Line Items] | |||
Loss Contingency, Lawsuit Filing Date | October 31, 2018 | ||
Palo Verde Generation Station | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Loss Contingency, Settlement Agreement, Counterparty's Name | U.S. Department of Energy | ||
Loss Contingency, Settlement Agreement, Date | August 18, 2014 | ||
Litigation, Claim Amount | $ 1,600 | ||
Palo Verde Participants | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Litigation, Claim Amount | $ 10,200 | ||
Maximum | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Loss Contingency, Period of Occurrence | June 30, 2018 | ||
Minimum | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Loss Contingency, Period of Occurrence | July 1, 2017 |
Palo Verde Operations and Maintenance Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Jointly Owned Utility Plant Interests [Line Items] | ||||
Utilities Operating Expense, Maintenance and Operations | $ 80,413 | $ 80,160 | $ 335,136 | $ 321,254 |
Palo Verde Generation Station | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Utilities Operating Expense, Maintenance and Operations | $ 21,344 | $ 22,175 | $ 95,623 | $ 99,931 |
Common Stock (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 30, 2019 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Class of Stock [Line Items] | |||||
Dividends, Common Stock, Cash | $ 14,658 | $ 13,615 | $ 58,600 | $ 54,300 | |
Maximum | |||||
Class of Stock [Line Items] | |||||
Proceeds from issuance of common stock, requested | $ 200,000 |
Common Stock (Antidilutive Securities Excluded From Computation Of Earnings Per Share) (Details) - shares |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Performance shares payout based upon performance | 0 | 0 | 0 | 0 | ||
Performance shares payout level | 100.00% | 100.00% | 100.00% | 100.00% | ||
Restricted Stock | ||||||
Antidilutive Securities Excluded from the Computation of Diluted Earnings Per Share, Amount | 62,605 | 72,218 | 60,432 | 66,288 | ||
Performance Shares | ||||||
Antidilutive Securities Excluded from the Computation of Diluted Earnings Per Share, Amount | [1] | 43,652 | 45,977 | 22,234 | 11,494 | |
|
Income Taxes (Income Tax Rates) (Details) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax [Line Items] | ||||||
Effective tax rate | 23.80% | 30.50% | 24.30% | 34.50% | ||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Income Taxes (Details) - Latest Tax Year |
3 Months Ended |
---|---|
Mar. 31, 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 |
Leases Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Newman Land Lease | |
Operating Leased Assets [Line Items] | |
Lease Expiration Date | Jun. 30, 2033 |
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) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Lease, Cost [Abstract] | ||
Operating lease cost | $ 253 | |
Short-term lease cost | 274 | |
Variable lease cost | 34 | |
Total lease cost | 561 | |
Right-of-use assets obtained in exchange for lease obligations | $ 6,217 | $ 0 |
Leases Supplemental Balance Sheet Information (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Supplemental Balance Sheet Information [Abstract] | |
Operating lease ROU assets | $ 6,217 |
Operating lease ROU assets, Statement of Financial Position [Extensible List] | us-gaap:PublicUtilitiesPropertyPlantAndEquipmentPlantInService |
Operating lease liabilities, current | $ 552 |
Operating lease liabilities, current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities, noncurrent | $ 5,336 |
Operating lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Total lease liabilities | $ 5,888 |
Weighted average remaining lease terms | 12 years 2 months 19 days |
Weighted average discount rate | 4.63% |
Leases Supplemental Cash Flow Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Supplemental Cash Flow Information [Abstract] | |
Operating cash flows used for operating leases | $ 557 |
Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 | $ 306 |
2020 | 770 |
2021 | 696 |
2022 | 639 |
2023 | 590 |
Thereafter | 4,829 |
Total lease payments | 7,830 |
Less imputed interest | (1,942) |
Total | $ 5,888 |
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 |
Employee Benefits (Retirement Plans And Other Postretirement Benefits) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Retirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,488 | $ 2,758 | $ 10,818 | $ 9,006 |
Interest cost | 3,608 | 3,223 | 13,263 | 13,034 |
Expected return on plan assets | (5,383) | (5,315) | (21,144) | (19,696) |
Amortization of net (gain) loss | 1,418 | 2,100 | 7,871 | 8,465 |
Amortization of prior service benefit | (878) | (878) | (3,506) | (3,506) |
Net periodic benefit cost (benefit) | 1,253 | 1,888 | 7,302 | 7,303 |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 625 | 700 | 2,720 | 2,348 |
Interest cost | 618 | 565 | 2,305 | 2,610 |
Expected return on plan assets | (530) | (613) | (2,352) | (2,050) |
Amortization of net (gain) loss | (575) | (525) | (2,216) | (1,808) |
Amortization of prior service benefit | (1,308) | (1,538) | (5,921) | (6,151) |
Net periodic benefit cost (benefit) | $ (1,170) | $ (1,411) | $ (5,464) | $ (5,051) |
Employee Benefits (Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Employer Contribution | $ 3.0 |
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 | 0.2 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 0.5 |
Financial Instruments And Investments (Long-Term Debt and Short-Term Borrowings - Narratives) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Feb. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Financial Instruments and Investments [Line Items] | |||
Decommissioning Fund Investments | $ 298,338 | $ 276,905 | |
Nuclear Fuel Financing | |||
Financial Instruments and Investments [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 30,000 | 26,200 | |
Working Capital and General Purpose | |||
Financial Instruments and Investments [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 173,000 | 23,000 | |
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 | Pollution Control Bonds | |||
Financial Instruments and Investments [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 63,500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% |
Financial Instruments And Investments (Marketable Securities Fair Value And Unrealized Losses) (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
[2] | Mar. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|---|---|
Financial Instruments and Investments [Line Items] | |||||||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 96 | 156 | |||||||
Marketable Securities Fair Value Less than 12 Months | $ (472) | [1] | $ (882) | ||||||
Marketable Securities Fair Value 12 Months or Longer | 52,261 | [1] | 71,450 | ||||||
Marketable Securities Unrealized Losses 12 Months or Longer | (1,891) | [1] | (3,627) | ||||||
Marketable Securities Fair Value Total | 69,008 | [1] | 107,001 | ||||||
Marketable Securities Unrealized Losses Total | (2,363) | [1] | (4,509) | ||||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 16,747 | [1] | 35,551 | ||||||
Federal Agency Mortgage Backed Securities | |||||||||
Financial Instruments and Investments [Line Items] | |||||||||
Marketable Securities Fair Value Less than 12 Months | (20) | [1] | (36) | ||||||
Marketable Securities Fair Value 12 Months or Longer | 13,210 | [1] | 14,567 | ||||||
Marketable Securities Unrealized Losses 12 Months or Longer | (271) | [1] | (510) | ||||||
Marketable Securities Fair Value Total | 13,904 | [1] | 20,754 | ||||||
Marketable Securities Unrealized Losses Total | (291) | [1] | (546) | ||||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 694 | [1] | 6,187 | ||||||
U.S. Government Bonds | |||||||||
Financial Instruments and Investments [Line Items] | |||||||||
Marketable Securities Fair Value Less than 12 Months | (6) | [1] | (9) | ||||||
Marketable Securities Fair Value 12 Months or Longer | 26,267 | [1] | 36,615 | ||||||
Marketable Securities Unrealized Losses 12 Months or Longer | (1,194) | [1] | (1,663) | ||||||
Marketable Securities Fair Value Total | 30,989 | [1] | 40,620 | ||||||
Marketable Securities Unrealized Losses Total | (1,200) | [1] | (1,672) | ||||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 4,722 | [1] | 4,005 | ||||||
Municipal Obligations | |||||||||
Financial Instruments and Investments [Line Items] | |||||||||
Marketable Securities Fair Value Less than 12 Months | (332) | [1] | (74) | ||||||
Marketable Securities Fair Value 12 Months or Longer | 1,614 | [1] | 9,037 | ||||||
Marketable Securities Unrealized Losses 12 Months or Longer | (127) | [1] | (723) | ||||||
Marketable Securities Fair Value Total | 6,094 | [1] | 12,137 | ||||||
Marketable Securities Unrealized Losses Total | (459) | [1] | (797) | ||||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 4,480 | [1] | 3,100 | ||||||
Corporate Obligations | |||||||||
Financial Instruments and Investments [Line Items] | |||||||||
Marketable Securities Fair Value Less than 12 Months | (114) | [1] | (763) | ||||||
Marketable Securities Fair Value 12 Months or Longer | 11,170 | [1] | 11,231 | ||||||
Marketable Securities Unrealized Losses 12 Months or Longer | (299) | [1] | (731) | ||||||
Marketable Securities Fair Value Total | 18,021 | [1] | 33,490 | ||||||
Marketable Securities Unrealized Losses Total | (413) | [1] | (1,494) | ||||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 6,851 | [1] | $ 22,259 | ||||||
|
Financial Instruments And Investments (Unrealized Holding Losses Included In Pre-Tax Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2018 |
|
Financial Instruments And Investments [Abstract] | |||
Unrealized losses included in pre-tax income | $ 0 | $ 0 | $ 0 |
Financial Instruments And Investments (Marketable Securities Fair Value and Unrecognized Gross Unrealized Gains) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial Instruments and Investments [Line Items] | ||
Available-for-sale Securities, Unrealized Gain Position, Fair Value | $ 67,974 | $ 27,181 |
Available-for-sale Securities, Gross Unrealized Gain | 1,823 | 667 |
Federal Agency Mortgage Backed Securities | ||
Financial Instruments and Investments [Line Items] | ||
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 16,459 | 9,959 |
Available-for-sale Securities, Gross Unrealized Gain | 327 | 176 |
U.S. Government Bonds | ||
Financial Instruments and Investments [Line Items] | ||
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 18,413 | 6,987 |
Available-for-sale Securities, Gross Unrealized Gain | 419 | 149 |
Municipal Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 3,454 | 1,952 |
Available-for-sale Securities, Gross Unrealized Gain | 189 | 120 |
Corporate Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Available-for-sale Securities, Unrealized Gain Position, Fair Value | 29,648 | 8,283 |
Available-for-sale Securities, Gross Unrealized Gain | $ 888 | $ 222 |
Financial Instruments And Investments (Contractual Year For Maturity Of Available-For-Sale Securities ) (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Debt Securities, Available-for-sale [Line Items] | |
Total | $ 136,982 |
2019 | 3,945 |
2020 through 2023 | 45,924 |
2024 through 2028 | 36,850 |
2029 and Beyond | 50,263 |
Federal Agency Mortgage Backed Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Total | 30,363 |
2019 | 0 |
2020 through 2023 | 19 |
2024 through 2028 | 514 |
2029 and Beyond | 29,830 |
U.S. Government Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Total | 49,402 |
2019 | 2,356 |
2020 through 2023 | 20,491 |
2024 through 2028 | 21,282 |
2029 and Beyond | 5,273 |
Municipal Obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Total | 9,548 |
2019 | 649 |
2020 through 2023 | 3,446 |
2024 through 2028 | 3,566 |
2029 and Beyond | 1,887 |
Corporate Obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Total | 47,669 |
2019 | 940 |
2020 through 2023 | 21,968 |
2024 through 2028 | 11,488 |
2029 and Beyond | $ 13,273 |
Financial Instruments And Investments (Sale Of Securities And The Related Effects On Pre-Tax Income ) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Investment [Line Items] | ||||
Proceeds from sales or maturities of available-for-sale securities | $ 15,771 | $ 11,757 | $ 29,969 | $ 82,739 |
Gross realized gains included in pre-tax income | 58 | 9 | 66 | 9,195 |
Gross realized losses included in pre-tax income | (887) | (527) | (1,822) | (1,278) |
Net gains (losses) included in pre-tax income | $ (829) | $ (518) | $ (1,756) | $ 7,917 |
Financial Instruments And Investments Unrealized gains and losses on equity securities (Details) - Equity Securities - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Unrealized Gains and losses recognized [Line Items] | ||
Equity Securities, FV-NI, Gain (Loss) | $ 16,818 | $ (1,991) |
Equity Securities, FV-NI, Realized Gain (Loss) | 128 | 1,790 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 16,690 | $ (3,781) |
Financial Instruments And Investments (Company's Decommissioning Trust Funds And Investments In Debt Securities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | $ 298,338 | $ 276,905 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 210,758 | 190,330 |
Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 87,580 | 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 | 7,155 | 6,858 |
Cash | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 7,155 | 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 | 1,632 | 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 | 1,632 | 1,656 |
Equity Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 154,201 | 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 | 154,201 | 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 | 127,450 | 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 | 127,450 | 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 | 26,751 | 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 | 26,751 | 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 | 136,982 | 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 | 49,402 | 47,607 |
Available-for-sale Securities | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 87,580 | 86,575 |
Available-for-sale Securities | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 0 | 0 |
Available-for-sale Securities | Federal Agency Mortgage Backed Securities | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 30,363 | 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 | 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 | 30,363 | 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 | 0 |
Available-for-sale Securities | U.S. Government Bonds | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 49,402 | 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 | 49,402 | 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 | 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 | 0 |
Available-for-sale Securities | Municipal Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 9,548 | 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 | 0 |
Available-for-sale Securities | Municipal Obligations | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 9,548 | 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 | 0 |
Available-for-sale Securities | Corporate Obligations | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 47,669 | 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 | 0 |
Available-for-sale Securities | Corporate Obligations | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments and Investments [Line Items] | ||
Decommissioning Fund Investments, Fair Value | 47,669 | 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 | $ 0 |
Financial Instruments And Investments Transfers Between Levels (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Fair Value Disclosures [Abstract] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Description | no | no | no | no |
Fair Value, Assets, Level 2 to Level 1 Transfers, Description | no | no | no | no |
Fair Value, Asset, Level 3 Purchases, (Sales), Issuances, (Settlements) | $ 0 | $ 0 | $ 0 | $ 0 |
Long-Term Debt and Financing Obligations (Details) - USD ($) $ in Thousands |
Apr. 01, 2019 |
Feb. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term Debt, Subject for Redemption | $ 100,600 | ||
Pollution Control Bonds | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 159,800 | ||
Pollution Control Bonds | 7.25% 2009 Series A Refunding Bonds, due 2040 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||
Debt Instrument, Repurchased Face Amount | $ 63,500 | ||
Debt Instrument, Repurchase Date | Feb. 01, 2019 | ||
Subsequent Event | Pollution Control Bonds | 7.25% 2009 Series B Refunding Bonds, due 2040 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||
Debt Instrument, Repurchased Face Amount | $ 37,100 | ||
Debt Instrument, Repurchase Date | Apr. 01, 2019 |
[^Z6-QNC8D#E(3885Q6&$0
M5F2WEP.4O1,G4_8*4S)EKP%&E_)6= .I26TXJ3!(*B23"H,,8GS&N=:'2)<3
MR:"]QG4ZFVOC@W4Z0Y-/87%NL2"WR%6UM.@A0 @VRJ>G*TA"J1-UIOLF828;
M2/I@@[*)Q>A!_;ZL'T]O39K97?5\:+MH/CI[?C/SB;L'_>+\DJY6!,ZOZ6K3
MOW=YJ[Y_#?1'43]N#\WL:]6VU?[T$N"AJMHR"3"7J>M/97%_/MB5#VWW-:;O
M=?_ZI3]HJ^/P:FEQ?K]U^S]02P,$% @ H7FH3A@_Z-CW P K!$ !@
M !X;"]W;W)K QKBM"7XA3^
M%Q[ZPR.OPLB%QV\4?I _]A+$CB!Z0_"!@L1+D'@41.]ZY,/$_B1[;Y*]AR#Q
M$QR\!(?/EYEZ"=)/E.G#[-\E(9N[QT$V;NH4*L78NXG?>-?!O@W=W7V%SZ_"
M=RJ;KE?H(K29 '=/:R$T&"G!C6EY:QZBU6!0:[L]F+V%,9JX5'T];,=19$&4%:,;[9?&%:R);F:?0=;9Z:WBO9PM$2UVLM[.L!E!DR
MNJ5OCB=9-SXX6)YVHH8?X']V1XL6FUE*J:%UTK3$0I71F^W^D(3X&/!+PN 6
M9Q(J.1GS'(SO948W01 H*'Q@$+B=X1:4"D0HX\_$2>>4 ;@\O['?Q]JQEI-P
M<&O4;UGZ)J/7E)10B5[Y)S-\@ZF>2TJFXA_@# K#@Q+,41CEXDJ*WGFC)Q:4
MHL7+N,LV[L-X<_EU@JT#^ 3@,^ ZYF%CHJC\3GB1I]8,Q(Z][T1XXNV>8V^*
MX(RMB' ' 0TM:$D"
M#, =HR]U8J+)T:K.T4]!9N2)
Z>D;:0-%KM.F_T&.I)!PY43.D=&"ZU\G.W!!RU9%6BGQ
M5W/-*WT]M?IGFIT 6P)\EA"TA* C2+-#A+ EA!=".$B(6D)T(:!! FH)R)@!
M-,W2W5]@@:V