20170925Utah_OCS 1.1-1.pdf

ROCKY MOUNTAIN 1407 W.North Temple,Suite 310
POWER Salt Lake City,Utah 84116
A DIVISION OF PACIFICORP
January26,2017
VIA ELECTRONIC FILING
AND OVERNIGHT DELIVERY
Gary Widerburg
Commission Secretary
Public ServiceCommission of Utah
Heber M.Wells Building
160 East 300 South
Salt Lake City,Utah 84114
Re:Notice of Non-CompetitiveProcurement with Vestas-American Wind Technology,Inc.
Commissioners:
In accordance with PacifiCorp's ProcurementPolicy,the Company must report to the Commission
purchases of goods or services exceeding$1,000,000that are not competitively bid.This letter hereby
serves as notice that,on December29,2016,PacifiCorp entered into a non-competitively bid contract with
Vestas-American Wind Technology,Inc.(Vestas)that exceeds $1,000,000.The contract is for the
purchase of power generationequipmentand relatedservices to retrofit severalof PacifiCorp's wind energy
projects(Retrofit Projects)and has a value of $25,700,000.
Pursuant to PacifiCorp's ProcurementPolicy,a supplier may be awardeda contract on a non-competitive
basis under certain circumstances,such as when competitive bidding is impossible or impractical,or when
otherwisea non-competitive procurementhas been demonstratedto be in the best interest of the Company.
The contract entered into by PacifiCorp with Vestas was justifiedas it is in the best interest of the Company
based on the following:the Retrofit Projects will benefit customers by providingadditional energy from
the repowered wind turbine generators(WTGs)while also re-qualifyingthe repowered facilities for 100
percent of the production tax credits (PTCs)available under federal legislation.Additionally,the new
WTGs will be installed on existing Vestas towers and will be integrated into the Vestas proprietary
supervisory control and data acquisition (SCADA)system and Vestas is the only known supplier for this
application that can also provide the compatible equipment within the Company's timeframe.
If you haveany questions,please feel free to contact Bob Lively at 801-220-4052.
Sincerely,
Jeffrey K.Larsen
Vice President,Regulation
ec:Division of Public Utilities
Office of ConsumerServices