Related Party Transactions

9 Months Ended

Sep. 30, 2020

RELATED-PARTY TRANSACTIONS

In the normal course of business, Ameren Missouri and Ameren Illinois have engaged in, and may in the future 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 below. For a discussion of material related-party agreements and money pool arrangements, see Note 13 – Related-party Transactions and Note 4 – Short-term Debt and Liquidity under Part II, Item 8, of the Form 10-K.

Electric Power and Capacity Supply Agreements

In April and September 2020, Ameren Illinois conducted procurement events, administered by the IPA, to purchase energy products and acquire capacity. Ameren Missouri was among the winning suppliers in these events. As a result, in April 2020, Ameren Missouri contracted to supply a portion of Ameren Illinois’ capacity requirements for $2 million from June 2021 through May 2023. In September 2020, Ameren Missouri contracted to supply a portion of Ameren Illinois’ capacity requirements for $1 million from June 2021 through May 2023. Additionally, in September 2020, Ameren Missouri and Ameren Illinois entered into an energy product agreement by which Ameren Missouri

agreed to sell, and Ameren Illinois agreed to purchase, 204,800 megawatthours at an average price of $31 per megawatthour during the period of September 2021 through November 2022.

Tax Allocation Agreement

See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K 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 September 30, 2020, and December 31, 2019:


	September 30, 2020				December 31, 2019
	Ameren Missouri		Ameren Illinois		Ameren Missouri		Ameren Illinois
Income taxes payable to parent(a)	$	38	$	9	$	15	$	43
Income taxes receivable from parent(b)	—		6		15		17

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

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

Effects of Related-party Transactions on the Statement of Income

The following table presents the effect on Ameren Missouri and Ameren Illinois of related-party transactions for the three and nine months ended September 30, 2020 and 2019:


				Three Months				Nine Months
Agreement	Income Statement Line Item			Ameren Missouri		Ameren Illinois		Ameren Missouri		Ameren Illinois
Ameren Missouri power supply	Operating Revenues	2020	$	5	$	(a)	$	11	$	(a)
agreements with Ameren Illinois		2019		1		(a)		3		(a)
Ameren Missouri and Ameren Illinois	Operating Revenues	2020	$	6	$	(b)	$	19	$	1
rent and facility services		2019		7		1		20		2
Ameren Missouri and Ameren Illinois	Operating Revenues	2020	$	(b)	$	1	$	1	$	1
miscellaneous support services		2019		1		(b)		1		1
Ameren Missouri software licensing	Operating Revenues	2020	$	(a)	$	(a)	$	(a)	$	(a)
with Ameren Illinois(c)		2019		(a)		19		(a)		19
Total Operating Revenues		2020	$	11	$	1	$	31	$	2
		2019		9		20		24		22
Ameren Illinois power supply	Purchased Power	2020	$	(a)	$	5	$	(a)	$	11
agreements with Ameren Missouri		2019		(a)		1		(a)		3
Ameren Illinois transmission	Purchased Power	2020	$	(a)	$	(b)	$	(a)	$	1
services with ATXI		2019		(a)		1		(a)		1
Total Purchased Power		2020	$	(a)	$	5	$	(a)	$	12
		2019		(a)		2		(a)		4
Ameren Missouri and Ameren Illinois	Other Operations and Maintenance	2020	$	(b)	$	1	$	(b)	$	3
rent and facility services		2019		(b)		1		1		4
Ameren Services support services	Other Operations and Maintenance	2020	$	36	$	34	$	103	$	98
agreement		2019		34		30		98		91
Total Other Operations and		2020	$	36	$	35	$	103	$	101
Maintenance		2019		34		31		99		95
Money pool borrowings (advances)	(Interest Charges)/Other Income, Net	2020	$	(b)	$	(b)	$	(b)	$	(b)
		2019		(b)		(b)		(b)		(b)

(a)Not applicable.

(b)Amount less than $1 million.

(c)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.