Related Party Transactions

12 Months Ended

Dec. 31, 2022

Related Party Transactions 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 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,
	2022		2021		2020
			(In thousands)


Services billings:
PNMR to PNM	$	115,415	$	107,747	$	100,872
PNMR to TNMP	42,293		41,798		39,053
PNM to TNMP	411		404		383
TNMP to PNMR	141		141		141
TNMP to PNM	—		—		—


PNMR to NMRD	308		221		260
Renewable energy purchases:
PNM from NMRD	11,795		11,879		9,638
Interconnection and facility study billings:
PNM to NMRD	—		225		350
PNM to PNMR	—		—		—
PNMR to PNM	—		—		—
NMRD to PNM	—		1,276		—
Interest billings:
PNMR to PNM	13		31		6
PNM to PNMR	249		144		255
PNMR to TNMP	166		—		2
Income tax sharing payments:
PNMR to TNMP	—		—		—
PNMR to PNM	—		19,492		—
PNM to PNMR	11,602		—		—
TNMP to PNMR	8,341		12,842		15,820