20130308PAC to Monsanto 10-035-124 DPU 57.8.docx

DPUData Request 57.8In reference to Figure 20, please explain why the PacifiCorp average price for AECO is significantly lower than the market index price for the same period.
Response to DPUData Request 57.8The Company notes that the DPU is referencing Confidential Figure 20 of the Semi-Annual Hedging Report, filed with the Public Service Commission of Utah on November 1, 2012.During a majority of the period in question, specifically during the period January 2005 through June 2010, fixed price physical purchases made at an AECO related price were done so under long-term contracts that had pricing mechanisms based on fixed prices with annual escalators. During much of this time period, those prices, negotiated in the mid-1990s, were below prevailing market prices for AECO during the period.