Related Party Transactions

PNMR, PNM, TNMP, and NMRD are considered related parties as defined under GAAP, as is PNMR Services Company, a wholly-owned subsidiary of PNMR that 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. In addition, PNMR provides construction and operations and maintenance services to NMRD, a 50% owned subsidiary of PNMR Development (Note 1), and PNM purchases renewable energy from certain NMRD-owned facilities at a fixed price per MWh of energy produced. PNM also provides interconnection services to PNMR Development (Note 7) and NMRD.

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 7 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,
	2018		2017		2016
			(In thousands)
Services billings:
PNMR to PNM	$	95,637	$	97,914	$	94,606
PNMR to TNMP	33,493		31,095		28,907
PNM to TNMP	367		382		427
TNMP to PNMR	140		141		66
TNMP to PNM	—		154		172
PNMR to NMRD	183		—		—
Renewable energy purchases:
PNM from NMRD	2,924		—		—
Interconnection and facility study billings:
PNM to NMRD	2,108		—		—
PNM to PNMR	68,820		—		—
Interest billings:
PNMR to PNM	2,585		21		11
PNM to PNMR	289		220		150
PNMR to TNMP	136		133		132
Income tax sharing payments:
PNMR to TNMP	—		—		—
PNMR to PNM	—		23,391		—
PNM to PNMR	134		—		—
TNMP to PNMR	3,424		20,686		—