Related Party Transactions

9 Months Ended

Sep. 30, 2011

PNMR, PNM, TNMP, and, through September 23, 2011, Optim Energy are considered related parties as defined under GAAP. PNMR Services Company provides corporate services to PNMR, its subsidiaries, and Optim Energy in accordance with shared services agreements. There was also a services agreement for Optim Energy to provide services to PNMR. Additional information concerning the Company’s related party transactions is contained in Note 20 of Notes to Consolidated Financial Statements in the 2010 Annual Reports on Form 10-K.

See Note 11 for information concerning Optim Energy. The table below summarizes the nature and amount of related party transactions of PNMR, PNM, and TNMP:



	Three Months Ended				Nine Months ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In thousands)
Electricity, transmission and distribution related services billings:
TNMP to PNMR	$	12,196	$	11,495	$	30,608	$	30,717
Services billings:
PNMR to PNM	24,680		26,373		70,849		69,948
PNMR to TNMP	7,295		6,798		21,250		19,090
PNM to TNMP	40		100		327		379
TNMP to PNMR	48		53		145		266
PNMR to Optim Energy	1,277		1,393		4,083		4,304
Optim Energy to PNMR	4		107		23		157
Income tax sharing payments:
PNMR to PNM	—		—		—		35,190
Interest charges:
TNMP to PNMR	8		57		36		242
PNM to PNMR	9		—		45		—
PNMR to PNM	33		—		97		—

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details