2.2.0.7falseDisposition10201 - Disclosure - Dispositiontruefalsefalsefalse1USDfalsefalseUnit12Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit1Standardhttp://www.xbrl.org/2003/instancesharesxbrli0$20pnm_DispositionAbstractpnmfalsenadurationDisposition [Abstract]falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringDisposition [Abstract]false31pnm_DisposalOfBusinessOperationsTextblockpnmfalsenadurationDisposal Of Business Operations [TextBlock]falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabelfalse1falsefalsefalsefalse00<div>
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<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="4%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(2)</b></font></td>
<td valign="top" align="left">
<p align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>Disposition</b> </font></p></td></tr></table>
<p style="margin-top: 6px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>PNM Gas Sale </b></font></p>
<p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">On January 12, 2008, PNM reached a definitive agreement to sell its natural gas operations, which comprised the PNM Gas segment, to NMGC, a subsidiary of Continental, for $620.0 million in cash, subject to adjustment based on the actual level of working capital at closing. PNM received an additional $33.1 million related to working capital true-ups, including $20.6 million received at closing. In a separate transaction conditioned upon the sale of the natural gas operations, PNMR proposed to acquire CRHC, Continental's regulated Texas electric transmission and distribution business, for $202.5 million in cash. On July 22, 2008, PNMR and Continental agreed to terminate the agreement for the acquisition of CRHC. Under the termination agreement, Continental agreed to pay PNMR $15.0 million upon the closing of the PNM Gas transaction. PNM completed the sale of PNM Gas on January 30, 2009 and recognized a gain of $65.9 million, after income taxes of $33.4 million in the nine months ended September 30, 2009, which is included in discontinued operations. This gain reflects the reduction for the increase in the PBO of the PNM pension plan related to the retirement of employees transferred to NMGC. See Note 1. PNMR recognized an additional pre-tax gain of $15.0 million ($9.1 million after income taxes) due to the CRHC termination payment, which is included in other income in the nine months ended September 30, 2009. In connection with the sale, PNM retained obligations under the frozen PNM pension and executive retirement plans for employees transferred to NMGC. PNM had a regulatory asset related to these plans, which was removed from regulatory assets and transferred to AOCI. The after-tax charge to AOCI was $59.0 million. PNM also retained obligations for certain contingent liabilities that existed at the date of sale. </font></p>
<p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">PNM used proceeds from the sale to retire short-term debt and paid a dividend of $220.0 million to PNMR. PNMR used the dividend from PNM and the $15.0 million from Continental to retire debt. There were no material prior relationships between the PNMR and Continental parties other than in respect of the transactions described herein. See Note 14 for financial information concerning PNM Gas, which is classified as discontinued operations in the accompanying financial statements. </font></p></div> </div>(2)
Disposition
PNM Gas Sale
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