Equity Method Investment

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure

Equity Method Investment

As discussed in Note 1 of the Company's 2019 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, 2020, NMRD’s renewable energy capacity in operation was 85.1 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, 2020 and 2019, PNMR Development made cash contributions of $10.0 million and $7.0 million to NMRD to be used primarily 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 March 31,
	2020		2019
	(In thousands)
Operating revenues	$	1,667	$	725
Operating expenses	1,580		796
Net earnings (loss)	$	87	$	(71)

	Financial Position
	March 31,		December 31,
	2020		2019
	(In thousands)
Current assets	$	12,848	$	7,187
Net property, plant, and equipment	137,763		132,772
Non-current assets	1,548		—
Total assets	152,159		139,959
Current liabilities	1,392		9,640
Non-current liabilities	362		—
Owners’ equity	$	150,405	$	130,319