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Equity Method Investment
9 Months Ended
Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investment Equity Method Investment
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 September 30, 2023, NMRD’s renewable energy capacity in operation was 185 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. PNMR Development, together with AEP OnSite Partners, has selected an adviser for the sale of NMRD.

In the nine months ended September 30, 2023, PNMR Development and AEP OnSite Partners each made cash contributions to NMRD of $25.8 million for its construction activities. In the nine months ended September 30, 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 September 30,Nine Months Ended September 30,
2023202220232022
(In thousands)
Operating revenues
$4,020 $3,407 $10,525 $10,224 
Operating expenses1,743 2,381 6,127 7,172 
Net earnings
$2,277 $1,026 $4,398 $3,052 

Financial Position
September 30,December 31,
20232022
(In thousands)
Current assets$9,529 $8,357 
Net property, plant, and equipment229,659 169,440 
Non-current assets2,480 9,631 
Total assets
241,668 187,428 
Current liabilities4,176 5,822 
Non-current liabilities355 366 
Owners’ equity
$237,137 $181,240