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Equity Method Investment | 12 Months Ended
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Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Equity Method Investment In September 2017, PNMR Development and AEP OnSite Partners created NMRD to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. In December 2017, PNMR Development made a contribution to NMRD of its interest in three 10 MW solar facilities it was constructing and assigned its interests in several agreements related to those facilities to NMRD. The facilities had a book value of $24.8 million, which approximated fair value at that time. AEP OnSite Partners made a cash contribution to NMRD equal to 50% of the value of the 30 MW solar capacity, amounting to $12.4 million, which cash was then distributed from NMRD to PNMR Development. During 2020, 2019, and 2018 PNMR Development and AEP OnSite Partners each made cash contributions of $23.3 million, $38.3 million, and $9.0 million to NMRD for its construction activities. At December 31, 2020, NMRD’s renewable energy capacity in operation is 135.1 MW, which includes 130 MW of solar-PV facilities to supply energy to the Facebook data center located within PNM’s service territory, 1.9 MW to supply energy to Columbus Electric Cooperative located in southwest New Mexico, 2.0 MW to supply energy to the Central New Mexico Electric Cooperative, and 1.2 MW of solar-PV facilities to supply energy to the City of Rio Rancho, New Mexico. PNMR accounts for its investment in NMRD using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations. PNMR records as income its percentage share of earnings or loss of NMRD and carries its investment at cost, adjusted for its share of undistributed earnings or losses. PNMR presents its share of net earnings from NMRD in other income on the Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows:
| December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Operating revenues | $ | 10,366 |  |  | $ | 3,662 |  |  | $ | 3,147 |
Operating expenses | 7,476 |  |  | 2,971 |  |  | 2,136 |
Net earnings | $ | 2,890 |  |  | $ | 691 |  |  | $ | 1,011 |
| Financial Position
| December 31,
| 2020 |  | 2019
| (In thousands)
Current assets | $ | 8,046 |  |  | $ | 7,187 |
Net property, plant, and equipment | 172,585 |  |  | 132,772 |
Non-current assets | 1,900 |  |  | — |
Total assets | 182,531 |  |  | 139,959 |
Current liabilities | 841 |  |  | 9,640 |
Non-current liabilities | $ | 380 |  |  | $ | — |
Owners’ equity | $ | 181,310 |  |  | $ | 130,319 |

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- References No definition available. + Details
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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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