Related Party Transactions

12 Months Ended

Dec. 31, 2020

PNMR, PNM, TNMP, and NMRD are considered related parties, 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 21), 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,
	2020		2019		2018
			(In thousands)


Services billings:
PNMR to PNM	$	100,872	$	96,327	$	95,637
PNMR to TNMP	39,053		36,554		33,493
PNM to TNMP	383		375		367
TNMP to PNMR	141		141		140
TNMP to PNM	—		—		—


PNMR to NMRD	260		238		183
Renewable energy purchases:
PNM from NMRD	9,638		3,124		2,924
Interconnection and facility study billings:
PNM to NMRD	350		650		2,108
PNM to PNMR	—		—		68,820
PNMR to PNM	—		68,820		—
Interest billings:
PNMR to PNM	6		3,365		2,585
PNM to PNMR	255		299		289
PNMR to TNMP	2		42		136
Income tax sharing payments:
PNMR to TNMP	—		—		—
PNMR to PNM	—		—		—
PNM to PNMR	—		—		134
TNMP to PNMR	15,820		12,996		3,424