Equity Method Investment

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

As discussed in Note 1 of the Company's 2021 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 March 31, 2022, NMRD’s renewable energy capacity in operation was 135.1 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.

In the three months ended March 31, 2022 and 2021, neither PNMR Development nor AEP OnSite Partners made any cash contributions to NMRD for its construction activities. In February 2021, NMRD paid both PNMR Development and AEP OnSite Partners a dividend of $3.0 million. PNMR Development's cumulative equity in earnings of NMRD as of March 31, 2021 was $2.4 million and is presented as cash flows from operating activities on the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2021. The portion of the dividend in excess of PNMR Development's cumulative equity in earnings of NMRD amounting to $0.6 million is presented as cash flows from investing 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 March 31,
		2022		2021
		(In thousands)
Operating revenues		$	2,796	$	2,750
Operating expenses		2,404		2,522
Net earnings		$	392	$	228


	Financial Position
	March 31,		December 31,
	2022		2021
	(In thousands)
Current assets	$	5,827	$	10,729
Net property, plant, and equipment	164,733		166,495
Non-current assets	9,653		2,289
Total assets	180,213		179,513
Current liabilities	1,148		824
Non-current liabilities	377		373
Owners’ equity	$	178,688	$	178,316