Related Party Transactions

12 Months Ended

Dec. 31, 2014

PNMR, PNM, and TNMP are considered related parties as defined under GAAP. PNMR Services Company provides corporate services to PNMR and its subsidiaries in accordance with shared services agreements. These services are billed at cost on a monthly basis to the business units.

PNMR files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PNMR and each of its affiliated companies. These agreements provide that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PNMR. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PNMR to the extent that PNMR is able to utilize those benefits.

See Note 6 for information on intercompany borrowing arrangements. The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP:



	Year Ended December 31,
	2014		2013		2012
			(In thousands)
Services billings:
PNMR to PNM	$	86,871	$	92,597	$	99,986
PNMR to TNMP	28,349		28,937		29,110
PNM to TNMP	524		562		595
TNMP to PNMR	31		7		15
Income tax sharing payments:
PNMR to TNMP	—		—		1,951
PNMR to PNM	—		77,433		63,114
TNMP to PNMR	—		3,643		—
Interest payments:
PNM to PNMR	65		4		1
TNMP to PNMR	309		481		137

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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