Related Party Transactions

12 Months Ended

Dec. 31, 2017

PNMR, PNM, and TNMP are considered related parties as defined under GAAP, 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.

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. The table below summarizes the nature and amount of related party transactions of PNMR, PNM and TNMP:



	Year Ended December 31,
	2017		2016		2015
			(In thousands)
Services billings:
PNMR to PNM	$	97,914	$	94,606	$	90,827
PNMR to TNMP	31,095		28,907		28,109
PNM to TNMP	382		427		554
TNMP to PNMR	141		66		41
TNMP to PNM	154		172		—
Interest billings:
PNMR to PNM	21		11		54
PNM to PNMR	220		150		110
PNMR to TNMP	133		132		276
Income tax sharing payments:
PNMR to TNMP	—		—		—
PNMR to PNM	23,391		—		1,450
TNMP to PNMR	20,686		—		—