Related Party Transactions

6 Months Ended

Jun. 30, 2019

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 and six months ended June 30, 2019 and 2018, respectively, consisted of:



Three Months Ended June 30,	2019					2018
(Millions)	Sales To		Purchases From			Sales To		Purchases From
Iberdrola Canada Energy Services, Ltd	$	—	$	—		$	—	$	—
Iberdrola Renovables Energía, S.L.	$	—	$	(5	)	$	—	$	(4	)
Iberdrola, S.A.	$	—	$	(10	)	$	—	$	(12	)
Other	$	8	$	(1	)	$	—	$	—



Six Months Ended June 30,	2019					2018
(Millions)	Sales To		Purchases From			Sales To		Purchases From
Iberdrola Canada Energy Services, Ltd	$	—	$	—		$	—	$	(4	)
Iberdrola Renovables Energía, S.L.	$	—	$	(9	)	$	—	$	(7	)
Iberdrola, S.A.	$	—	$	(20	)	$	—	$	(26	)
Iberdrola Energia Monterrey, S.A. de C.V.	$	—	$	—		$	3	$	—
Other	$	8	$	(2	)	$	1	$	(1	)

In addition to the statements of income items above, we made purchases of turbines for wind farms from Siemens-Gamesa, in which Iberdrola has an 8.1% ownership. The amounts capitalized for these transactions were $2 million and $6 million for the periods ended June 30, 2019 and December 31, 2018, respectively.

Related party balances as of June 30, 2019 and December 31, 2018, respectively, consisted of:



As of	June 30, 2019					December 31, 2018
(Millions)	Owed By		Owed To			Owed By		Owed To
Siemens-Gamesa	$	—	$	(14	)	$	—	$	(14	)
Iberdrola, S.A.	$	—	$	(20	)	$	1	$	(40	)
Iberdrola Renovables Energía, S.L.	$	4	$	(12	)	$	4	$	—
Other	$	9	$	(2	)	$	1	$	(4	)

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.

Transactions with Iberdrola Canada Energy Services (ICES) predominantly relate to the purchase of gas for ARHI’s gas-fired cogeneration facility in Klamath, Oregon. There are no notes payable amounts owed to ICES of as of June 30, 2019 and December 31, 2018.

Transactions with Iberdrola Energia Monterrey predominantly relate to the sale of gas by Enstor Gas for the power generation plant in Monterrey, Mexico.

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 the regulated 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. NYSEG’s contribution as 20% co-owner is $120 million. As of both June 30, 2019 and December 31, 2018, the amount receivable from New York TransCo was $1 million.

We hold a 50% ownership 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. Under the provisions of the LLC agreement, Renewables has contributed $89 million to Vineyard Wind. We expect to provide additional capital contributions. The amount receivable from Vineyard was $7 million and $0 as of June 30, 2019 and December 31, 2018, respectively.

Renewables, through its joint venture in Vineyard Wind, was awarded a second Massachusetts offshore easement. In February 2019, a contribution was made to a new offshore development project of $100 million to enter into the easement contract.

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 both June 30, 2019 and December 31, 2018, was zero.

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 June 30, 2019 and December 31, 2018, there was no outstanding amount under this credit facility.