20130308PAC to Monsanto 10-035-124 DPU 57.6.docx

DPUData Request 57.6Please provide additional information concerning the exception to the risk management policy section 12.1 mentioned on page 12 of the hedging report. (Hermiston transaction)
Response to DPUData Request 57.6Approval of the external modeling allowed the transaction to serve Hermiston Plant natural gas requirements to be approved. This transaction was a cost effective and administratively efficient way to leverage PacifiCorp’s transportation holdings into reliable supply for the Hermiston Plant for the period November 2012 through March 2013. The nature of the transaction was such that it required external valuation of the option using projected physical requirements which is a feature not currently supported by the energy trading system.