Related Party Transactions

3 Months Ended

Mar. 31, 2020

We engage in related party transactions that are generally billed at cost and in accordance with applicable state and federal commission regulations.

Related party transactions for the three months ended March 31, 2020 and 2019, respectively, consisted of:



Three Months Ended March 31,	2020					2019
(Millions)	Sales To		Purchases From			Sales To		Purchases From
Iberdrola Renovables Energía, S.L.	$	—	$	(2	)	$	—	$	(4	)
Iberdrola Financiación, S.A.	$	—	$	(1	)	$	—	$	—
Iberdrola, S.A.	$	—	$	(10	)	$	—	$	(10	)
Vineyard Wind	$	2	$	—		$	—	$	—
Other	$	—	$	—		$	—	$	(1	)

In addition to the statements of income items above, we made purchases of turbines for wind farms from Siemens-Gamesa, in which Iberdrola had an 8.1% ownership interest until Iberdrola sold its interest in February 2020. After the sale, the turbine purchases are no longer considered related party transactions. The amounts capitalized for transactions while Siemens-Gamesa was considered a related party were $11 million and $18 million for the periods ended March 31, 2020 and December 31, 2019, respectively.

Related party balances as of March 31, 2020 and December 31, 2019, respectively, consisted of:



As of	March 31, 2020					December 31, 2019
(Millions)	Owed By		Owed To			Owed By		Owed To
Iberdrola, S.A.	$	1	$	(10	)	$	1	$	(42	)
Iberdrola Renovables Energía, S.L.	$	—	$	(2	)	$	—	$	—
Iberdrola Financiación, S.A.	$	—	$	(1	)	$	—	$	—
Vineyard Wind	$	3	$	—		$	5	$	—
Iberdrola Solutions	$	—	$	(14	)	$	—	$	—
Siemens-Gamesa (a)	$	—	$	—		$	—	$	(18	)
Other	$	—	$	(2	)	$	4	$	(4	)

(a) After Iberdrola's sale of its interest of Siemens-Gamesa in February 2020, transactions with Siemens-Gamesa are no longer considered related party.

Transactions with Iberdrola, our majority shareholder, relate predominantly to the provision and allocation of corporate services and management fees. All costs that can be specifically allocated, to the extent possible, are charged directly to the company receiving such services. In situations when Iberdrola corporate services are provided to two or more companies of AVANGRID,

any costs remaining after direct charges are allocated using agreed upon cost allocation methods designed to allocate such costs. We believe that the allocation method used is reasonable.

We have a bi-lateral demand note agreement with Iberdrola Solutions, LLC, which had a notes payable balance of $14 million and $0, respectively, as of March 31, 2020 and December 31, 2019.

There have been no guarantees provided or received for any related party receivables or payables. These balances are unsecured and are typically settled in cash. Interest is not charged on regular business transactions but is charged on outstanding loan balances. There have been no impairments or provisions made against any affiliated balances.

Networks holds an approximate 20% ownership interest in New York TransCo, LLC (New York TransCo). Through New York TransCo, Networks has formed a partnership with Central Hudson Gas and Electric Corporation, Consolidated Edison, Inc., National Grid, plc and Orange and Rockland Utilities, Inc. to develop a portfolio of interconnected transmission lines and substations to fulfill the objectives of the New York energy highway initiative, which is a proposal to install up to 3,200 MW of new electric generation and transmission capacity in order to deliver more power generated from upstate New York power plants to downstate New York. On April 8, 2019, New York Transco was selected as the developer for Segment B of the AC Transmission Public Policy Project by the NYISO. The selected project, New York Energy Solution (NYES), replaces nearly 80-year old transmission assets located in the upper to mid-Hudson Valley with streamlined, modernized technology, to enable surplus clean energy resources in upstate New York and help achieve the State’s energy goals. The total project cost is $600 million, plus interconnection costs. NYSEG’s contribution as 20% co-owner is $120 million. As of both March 31, 2020 and December 31, 2019, the amount receivable from New York TransCo was $0.

We hold a 50% voting interest in Vineyard Wind, LLC (Vineyard Wind), a joint venture with Copenhagen Infrastructure Partners. Vineyard Wind acquired an easement from the U.S. Bureau of Ocean Energy Management containing rights to develop offshore wind generation in a 260 square-mile area located southeast of Martha’s Vineyard. The area subject to easement has the capacity for siting up to approximately 3,000 MW. In May 2018, Vineyard Wind was selected by the Massachusetts Electric Distribution Companies (EDCs) to construct and operate Vineyard Wind’s proposed 800 MW wind farm and electricity transmission project pursuant to the Massachusetts Green Communities Act Section 83C RFP for offshore wind energy projects. In 2019, DEEP selected Vineyard Wind to provide 804 MW of offshore wind through the development of its Park City Wind Project. Under the provisions of the LLC agreement, Renewables has contributed $137 million to Vineyard Wind. Contributions were made to a second offshore development project of $106 million to enter into the easement contract. We expect to provide additional capital contributions. The amount receivable from Vineyard was $3 million and $5 million as of March 31, 2020 and December 31, 2019, respectively.

AVANGRID manages its overall liquidity position as part of the Iberdrola Group and is a party to a liquidity agreement with a financial institution, along with certain members of the Iberdrola Group. Cash surpluses remaining after meeting the liquidity requirements of AVANGRID and its subsidiaries may be deposited at the financial institution. Deposits, or credit balances, serve as collateral against the debit balances of other parties to the liquidity agreement. The balance at March 31, 2020 and December 31, 2019, was zero and $150 million, respectively.

AVANGRID has a credit facility with Iberdrola Financiacion, S.A.U., a company of the Iberdrola Group. The facility has a limit of $500 million and matures on June 18, 2023. AVANGRID pays a facility fee of 10.5 basis points annually on the facility. As of March 31, 2020 and December 31, 2019, there was no outstanding amount under this credit facility.