Related Party Transactions

12 Months Ended

Dec. 31, 2019

RELATED-PARTY TRANSACTIONS

In the normal course of business, Ameren Missouri and Ameren Illinois engage in affiliate transactions. These transactions primarily consist of natural gas and power purchases and sales, services received or rendered, and borrowings and lendings. Transactions between Ameren’s subsidiaries are reported as affiliate transactions on their individual financial statements, but those transactions are eliminated in consolidation for Ameren’s consolidated financial statements, except as noted in Software Licensing Agreement discussion below. Below are the material related-party agreements.

Electric Power Supply Agreements

Ameren Illinois must acquire capacity and energy sufficient to meet its obligations to customers. Ameren Illinois uses periodic RFP processes, administered by the IPA and approved by the ICC, to contract capacity and energy on behalf of its customers. Ameren Missouri participates in the RFP process and has been a winning supplier for certain periods.

Energy Swaps and Energy Products

Based on the outcome of IPA-administered procurement events, Ameren Missouri and Ameren Illinois have entered into energy product agreements by which Ameren Missouri agreed to sell, and Ameren Illinois agreed to purchase, a set amount of megawatthours at a predetermined price over a specified period of time. The following table presents the specified performance period, price, and amount of megawatthours included in the agreements:



IPA Procurement Event	Performance Period	MWh	Average Price per MWh
September 2015	November 2015 – May 2018	339,000	$	38
April 2016	June 2017 – September 2018	375,200	35
September 2016	May 2017 – September 2018	82,800	34
April 2017	March 2019 – May 2020	85,600	34
April 2018	June 2019 – September 2020	110,000	32
April 2019	January 2020 – December 2021	288,000	35
September 2019	April 2020 – November 2021	170,800	29

Collateral Postings

Under the terms of the Illinois energy product agreements entered into through RFP processes administered by the IPA, suppliers must post collateral under certain market conditions to protect Ameren Illinois in the event of nonperformance. The collateral postings are unilateral, which means that only the suppliers can be required to post collateral. Therefore, Ameren Missouri, as a winning supplier in the RFP process, may be required to post collateral. As of December 31, 2019 and 2018, there were no collateral postings required of Ameren Missouri related to the Illinois energy product agreements.

Interconnection and Transmission Agreements

Ameren Missouri and Ameren Illinois are parties to an interconnection agreement for the use of their respective transmission lines and other facilities for the distribution of power. These agreements have no contractual expiration date, but may be terminated by either party with three years’ notice.

Support Services Agreements

Ameren Services provides support services to its affiliates. The costs of support services including wages, employee benefits, professional services, and other expenses, are based on, or are an allocation of, actual costs incurred. The support services agreement can be terminated at any time by the mutual agreement of Ameren Services and that affiliate or by either party with 60 days’ notice before the end of a calendar year.

In addition, Ameren Missouri and Ameren Illinois provide affiliates with access to their facilities for administrative purposes and with use of other assets. The costs of the rent and facility services and other assets are based on, or are an allocation of, actual costs incurred.

Ameren Missouri and Ameren Illinois also provide storm-related and miscellaneous support services to each other on an as-needed basis.

Transmission Services

Ameren Illinois receives transmission services from ATXI for its retail load.

Electric Transmission Maintenance and Construction Agreements

ATXI entered into separate agreements with Ameren Missouri and Ameren Illinois in which Ameren Missouri or Ameren Illinois, as applicable, may perform certain maintenance and construction services related to ATXI’s electric transmission assets.

Money Pool

See Note 4 – Short-term Debt and Liquidity for a discussion of affiliate borrowing arrangements.

Software Licensing Agreement

In September 2019, Ameren Missouri purchased a license for advanced metering infrastructure software from Ameren Illinois. The amount of the $24 million cost-based transaction price over the $5 million remaining carrying value of the software was recorded as revenue by Ameren Illinois, with $14 million of revenue recorded at Ameren Illinois Electric Distribution and $5 million recorded at Ameren Illinois

Natural Gas. The revenue recorded at Ameren Illinois Electric Distribution was reflected in formula ratemaking, which resulted in no impact to net income. Per authoritative accounting guidance for sales to rate-regulated entities, the revenue recognized by Ameren Illinois was not eliminated upon consolidation by Ameren. Ameren Missouri’s $24 million software investment is included in “Property, Plant, and Equipment, Net.”

Tax Allocation Agreement

See Note 1 – Summary of Significant Accounting Policies for a discussion of the tax allocation agreement. The following table presents the affiliate balances related to income taxes for Ameren Missouri and Ameren Illinois as of December 31, 2019 and 2018:



	2019				2018
	Ameren Missouri		Ameren Illinois		Ameren Missouri		Ameren Illinois
Income taxes payable to parent^(a)	$	15	$	43	$	16	$	7
Income taxes receivable from parent^(b)	15		17		—		6


(a)	Included in “Accounts payable – affiliates” on the balance sheet.


(b)	Included in “Accounts receivable – affiliates” on the balance sheet.

Capital Contributions

The following table presents cash capital contributions received from Ameren (parent) by Ameren Missouri and Ameren Illinois for the years ended December 31, 2019, 2018, and 2017:



	2019			2018		2017
Ameren Missouri^(a)	$	124		$	45	$	30
Ameren Illinois	15		^(a)	160		8


(a)	As a result of the tax allocation agreement.

Effects of Related-party Transactions on the Statement of Income

The following table presents the impact on Ameren Missouri and Ameren Illinois of related-party transactions for the years ended December 31, 2019, 2018, and 2017. It is based primarily on the agreements discussed above and the money pool arrangements discussed in Note 4 – Short-term Debt and Liquidity.



Agreement	Income Statement Line Item			Ameren Missouri		Ameren Illinois
Ameren Missouri power supply agreements	Operating Revenues	2019	$	3	$	(a)
with Ameren Illinois		2018		11		(a)
		2017		23		(a)
Ameren Missouri and Ameren Illinois	Operating Revenues	2019		27		2
rent and facility services		2018		22		3
		2017		26		4
Ameren Missouri and Ameren Illinois miscellaneous	Operating Revenues	2019		1		2
support services and services provided to ATXI		2018		1		1
		2017		(b)		1
Ameren Missouri software licensing	Operating Revenues	2019		(a)		19
with Ameren Illinois		2018		(a)		(a)
		2017		(a)		(a)
Total Operating Revenues		2019	$	31	$	23
		2018		34		4
		2017		49		5
Ameren Illinois power supply	Purchased Power	2019	$	(a)	$	3
agreements with Ameren Missouri		2018		(a)		11
		2017		(a)		23
Ameren Illinois transmission	Purchased Power	2019		(a)		2
services from ATXI		2018		(a)		1
		2017		(a)		2
Total Purchased Power		2019	$	(a)	$	5
		2018		(a)		12
		2017		(a)		25
Ameren Missouri and Ameren Illinois	Other Operations and	2019	$	2	$	5
rent and facility services	Maintenance	2018		3		6
		2017		(b)		(b)
Ameren Services support services	Other Operations and	2019		135		127
agreement	Maintenance	2018		136		126
		2017		149		139
Total Other Operations and		2019	$	137	$	132
Maintenance Expenses		2018		139		132
		2017		149		139
Money pool borrowings (advances)	(Interest Charges)	2019	$	(b)	$	(b)
	Other Income, Net	2018		1		(b)
		2017		1		(b)


(a)	Not applicable.

(b)

Amount less than $1 million.