Related-Party Transactions:

3 Months Ended

Mar. 31, 2019

RELATED-PARTY TRANSACTIONS

Dividend to Parent

We recorded non-cash dividends to our Parent of $16 million and decreased the utility Money pool note receivable by $16 million for the three months ended March 31, 2018. We did not record any dividends for the three months ended March 31, 2019.

Receivables and Payables

We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. The balances were as follows (in thousands) as of:



	March 31, 2019		December 31, 2018
Accounts receivable from affiliates	$	9,903	$	8,119
Accounts payable to affiliates	$	26,966	$	25,804

Money Pool Notes Receivable and Notes Payable

We participate in the Utility Money Pool Agreement (the Agreement). Under the Agreement, we may borrow from the pool; however the Agreement restricts the pool from loaning funds to BHC or to any of BHC’s non-utility subsidiaries. The Agreement does not restrict us from paying dividends to BHC. Borrowings under the Agreement bear interest at the weighted average daily cost of our parent company’s external borrowings as defined under the Agreement, or if there are no external funds outstanding on that date, then the rate will be the daily one-month LIBOR plus 1.0%. At March 31, 2019, the average cost of borrowing under the Utility Money Pool was 2.88%.

We had the following balances with the Utility Money Pool (in thousands) as of:

Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands):

Other related party activity was as follows (in thousands):



	Three Months Ended March 31,
	2019		2018
Revenue:
Energy sold to Cheyenne Light	$	574	$	703
Rent from electric properties	$	896	$	909
Horizon Point shared facility revenues	$	3,007	$	2,769

Fuel and purchased power:
Purchases of coal from WRDC	$	4,657	$	4,067
Purchase of excess energy from Cheyenne Light	$	132	$	86
Purchase of renewable wind energy from Cheyenne Light - Happy Jack	$	535	$	641
Purchase of renewable wind energy from Cheyenne Light - Silver Sage	$	983	$	1,093

Gas transportation service agreement:
Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation	$	76	$	96

Corporate support:
Corporate support services and fees from Black Hills Service Company	$	10,191	$	7,606

Horizon Point Agreement

We have a shared facility agreement among South Dakota Electric and Black Hills Service Company where there is a cost allocation for the use of the Horizon Point facility that is owned by South Dakota Electric. This cost allocation includes the recovery of and return on allocable property and recovery of incurred administrative service expenses for the operation and maintenance of the Horizon Point facility.

March 31, 2019

December 31, 2018

Money pool notes payable