Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

PNMR, PNM, and TNMP are considered related parties as defined under GAAP. TNMP provides transmission and distribution services to First Choice. On November 1, 2011, PNMR sold First Choice. TNMP revenues from First Choice through October 31, 2011 are considered related party revenues and included in the table below. 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. Optim Energy was a related party prior to September 23, 2011. PNMR Services Company provided corporate services to Optim Energy under a services agreement. There was also a services agreement for Optim Energy to provide services to PNMR.

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. See Note 21 for information concerning Optim Energy. The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP:    

	Year Ended December 31,
	2012		2011		2010
			(In thousands)
Electricity, transmission and distribution related services billings:
TNMP to PNMR	$	—	$	33,813	$	39,084
Services billings:
PNMR to PNM	99,986		98,914		93,602
PNMR to TNMP	29,110		29,353		25,455
PNM to TNMP	595		550		400
TNMP to PNMR	15		164		319
PNMR to Optim Energy	—		4,083		5,778
Optim Energy to PNMR	—		23		173
Income tax sharing payments:
PNMR to TNMP	1,951		—		13,869
PNMR to PNM	63,114		—		59,298
Interest payments:
PNM to PNMR	1		54		13
TNMP to PNMR	137		40		281