Equity Method Investment

9 Months Ended

Sep. 30, 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 September 30, 2020, 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 nine months ended September 30, 2020 and 2019, PNMR Development made cash contributions of $23.3 million and $29.3 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Operating revenues	$	3,462	$	892	$	7,769	$	2,720
Operating expenses	2,100		730		5,152		2,181
Net earnings	$	1,362	$	162	$	2,617	$	539

	Financial Position
	September 30,		December 31,
	2020		2019
	(In thousands)
Current assets	$	6,527	$	7,187
Net property, plant, and equipment	173,952		132,772
Non-current assets	1,969		—
Total assets	182,448		139,959
Current liabilities	1,059		9,640
Non-current liabilities	351		—
Owners’ equity	$	181,038	$	130,319