20240823PAC to PIIC 16 Attachment.pdf

PacifiCorp Cost Allocation Manual for the year ended December 31, 2023
Overview/Introduction
This section describes the allocation of costs between PacifiCorp and its affiliates.
On March 31,2006,PacifiCorp entered into an Intercompany Administrative Services Agreement("IASA")between
Berkshire Hathaway Energy Company ("BHE") and its subsidiaries. PacifiCorp is an indirect subsidiary of BHE, a
holding company based in Des Moines,Iowa,owning subsidiaries that are primarily engaged in the energy business.
Refer to attached IASA.The IASA covers:
a) services by executive,management,professional,technical and clerical employees;
b) financial services, payroll processing services, employee benefits participation, supply chain and purchase
order processing services,tax and accounting services,contract negotiation and administration services,risk
management services,environmental services and engineering and technical services;
c) the use of office facilities,including but not limited to office space,conference rooms,furniture,equipment,
machinery,supplies,computers and computer software,insurance policies and other personal property;and
d) the use of automobiles,airplanes,other vehicles and equipment.
Certain charges for services performed by PacifiCorp and affiliates under the IASA are accumulated at the BHE level
and then subsequently billed to the benefiting entities. These charges are reflected in this report as transactions with
BHE.
Allocation Amounts and Methods
BHE and subsidiaries to PacifiCorp
During the year ended December 31,2023,PacifiCorp was allocated costs by its non-regulated parent company,BHE,
and certain of BHE's subsidiaries, some of which are non-regulated, as part of the services under the IASA. The
amounts included in section II.Transactions include both direct charges and allocated amounts,as follows:
Amounts based Direct charges Total charges to affiliates
on defined factors or amounts allocated as reported in
described below at project or invoice level section II.Transactions
Berkshire Hathaway Energy Company $ 67,875,838 $ 85,728,422 $ 153,604,260
BHE Renewables,LLC - 653 653
Kern River Gas Transmission Company - 50,176 50,176
MidAmerican Energy Company 7,970,323 4,736,873 12,707,196
Nevada Power Company 222,653 914,515 1,137,168
NV Energy,Inc. 346 4,064 4,410
Northern Natural Gas Company 218,433 457,152 675,585
Sierra Pacific Power Company 633 160,032 160,665
$ 76,288,226 $ 92,051,887 $ 168,340,113
The amounts were allocated by BHE and its subsidiaries to PacifiCorp using twelve different formulae during the year
ended December 31,2023.These formulae are as follows:
a) A two-factor formula based on the labor and assets of each of BHE's subsidiaries. PacifiCorp's allocation
percentage during the period of January 1 through December 31,2023 was 21.70%.
b) The same two-factor formula as a) above, except excluding the labor and assets of Northern Powergrid
Holdings Company and BHE A1taLink Ltd.PacifiCorp's allocation percentage during the period of January
1 through December 31,2023 was 24.41%.
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c) The same two-factor formula as b) above, except excluding the labor and assets of BHE GT&S, LLC.
PacifiCorp's allocation percentage during the period of January 1 through December 31,2023 was 27.08%.
d) The same two-factor formula as b)above,except excluding the labor and assets of HomeServices of America,
Inc. PacifiCorp's allocation percentage during the period of January 1 through December 31, 2023 was
29.03%.
e) The same two-factor formula as a)above,except excluding the labor and assets of HomeServices of America,
Inc. PacifiCorp's allocation percentage during the period of January 1 through December 31, 2023 was
25.31%.
f) A formula based on the gross plant asset amounts of each of BHE's subsidiaries. PacifiCorp's allocation
percentage during the period of January 1 through December 31,2023 was 28.704%.
g) A formula based on shared Information Technology infrastructure that is owned and/or managed by
MidAmerican Energy Company. PacifiCorp's allocation percentage during the period of January 1 through
December 31,2023 was 0.74%.
h) A formula based on customer count. PacifiCorp's allocation percentage during the period of January 1
through December 31,2023 was 46.55%.
i) A formula based on employee counts not including BHE AltaLink Ltd. PacifiCorp's allocation percentage
during the period of January 1 through December 31,2023 was 30.81%.
j) A formula based on capital expenditures not including BHE AltaLink Ltd.PacifiCorp's allocation percentage
during the period of January 1 through December 31,2023 was 27.04%.
k) A formula based on employee counts modified for Oracle field services not including BHE AltaLink Ltd.
PacifiCorp's allocation percentage during the period of January 1 through December 31,2023 was 31.78%.
1) A formula based on customer and customer service agent counts not including BHE AltaLink Ltd.
PacifiCorp's allocation percentage during the period of January 1 through December 31,2023 was 39.6%.
(continued on following page)
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PacifiCorp to BHE and subsidiaries
During the year ended December 31,2023,PacifiCorp allocated costs to its non-regulated parent company,BHE,and
certain of BHE's subsidiaries,some of which are non-regulated,as part of the services under the IASA.The amounts
included in section II. Transactions include both direct charges and allocated amounts,as follows:
Amounts based Direct charges Total charges to affiliates
on defined factors or amounts allocated as reported in
described below at project or invoice level section IL Transactions
Berkshire Hathaway Energy Company $ 285,062 $ 24,442,016 $ 24,727,078
BHE A1taLink Ltd. 163,614 149,475 313,089
BHE Compression Services,LLC 5,843 190 6,033
BHE GT&S,LLC 664,869 1,785,356 2,450,225
BHE Montana 14,366 3,939 18,305
BHE Pipeline Croup 632 19 651
BHE Renewables,LLC 427,749 182,822 610,571
BHE TurboMachinery,LLC - 2,873,287 2,873,287
BHE U.S.Transmission,LLC 20,610 2,966 23,576
Electric Transmission Texas,LLC - 677 677
HomeServices of America,Inc. 179,468 14,978 194,446
Kern River Gras Transmission Company 82,190 185,063 267,253
MATL LLP - 1,683 1,683
MidAmerican Energy Company 1,272,287 3,169,451 4,441,738
MidAmerican Energy Services,LLC - 40,770 40,770
Midwest Capital Group,Inc. - 1 1
MTL Canyon Holdings,LLC - 62,287 62,287
Nevada Power Company 579,377 21,778 601,155
Northern Powergrid Holdings Company 249,580 1,716,325 1,965,905
Northern Natural Gas Company 344,396 1,275,256 1,619,652
NV Energy,Inc. 13,250 3,411,558 3,424,808
Sierra Pacific Power Company 352,258 15,118 367,376
$ 4,655,551 $ 39,355,015 $ 44,010,566
The amounts were allocated by PacifiCorp to BHE and its subsidiaries using four different formulae during the year
ended December 31,2023.These formulae are as follows:
a) A two-factor formula based on the labor and assets of each of BHE's subsidiaries. The percentage that
PacifiCorp allocated to BHE and its subsidiaries during the period of January 1 through December 31,2023
was 78.30%.
b) The same two-factor formula as a) above, except excluding the labor and assets of Northern Powergrid
Holdings Company and BHE A1taLink Ltd. The percentage that PacifiCorp allocated to BHE and its
subsidiaries during the period of January 1 through December 31,2023 was 75.59%.
c) The same two-factor formula as b)above,except excluding the labor and assets of HomeServices of America,
Inc. The percentage that PacifiCorp allocated to BHE and its subsidiaries during the period of January 1
through December 31,2023 was 70.97%.
d) The same two-factor formula as a)above,except excluding the labor and assets of HomeServices of America,
Inc. The percentage that PacifiCorp allocated to BHE and its subsidiaries during the period of January 1
through December 31,2023 was 74.69%.
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