Equity Method Investment

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

As discussed in Note 21 of the Company's 2022 Annual Reports on Form 10-K, PNMR Development and AEP OnSite Partners created NMRD in September 2017 to pursue the acquisition, development, and ownership of renewable energy generation projects, primarily in the state of New Mexico. As of March 31, 2023, NMRD’s renewable energy capacity in operation was 135.1 MW. PNMR Development and AEP OnSite Partners each have a 50% ownership interest in NMRD. The investment in NMRD is accounted for using the equity method of accounting because PNMR’s ownership interest results in significant influence, but not control, over NMRD and its operations.

In the three months ended March 31, 2023, PNMR Development and AEP OnSite Partners each made cash contributions to NMRD of $11.5 million for its construction activities. In the three months ended March 31, 2022, neither PNMR Development nor AEP OnSite Partners made any cash contributions to NMRD for its construction activities.

PNMR presents its share of net earnings from NMRD in other income on the Condensed Consolidated Statements of Earnings. Summarized financial information for NMRD is as follows:


		Results of Operations
	Three Months Ended March 31,
		2023		2022
		(In thousands)
Operating revenues		$	2,530	$	2,796
Operating expenses		2,419		2,404
Net earnings		$	111	$	392


	Financial Position
	March 31,		December 31,
	2023		2022
	(In thousands)
Current assets	$	15,631	$	8,357
Net property, plant, and equipment	180,353		169,440
Non-current assets	9,784		9,631
Total assets	205,768		187,428
Current liabilities	1,048		5,822
Non-current liabilities	369		366
Owners’ equity	$	204,351	$	181,240