20211013PAC to Bayer Attach 201 Bayer - 2020 Cost Allocation Manual.docx

PacifiCorp
Cost Allocation Manual
For the Year Ended December 31, 2020
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:services by executive, management, professional, technical and clerical employees.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;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; andThe use of automobiles, airplanes, other vehicles and equipment.Allocation Amounts and Methods BHEand subsidiaries to PacifiCorpDuring the year ended December 31,2020, 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 administrative services under the IASA. The amounts included in Section II – Transactions include both direct charges and allocated amounts. The allocated amounts were as follows:
The amounts were allocated by BHE and its subsidiaries to PacifiCorp usingeight different formulas during the year ended December 31, 2020. These formulas are as follows: 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 October 31, 2020 was24.60% and November 1, 2020 through December 31, 2020 was 21.38%.The same two-factor formula as a) above, except excluding the labor and assets of BHE’s international subsidiaries. PacifiCorp’s allocation percentage during the period of January 1 through October 31, 2020 was 28.52% and November 1, 2020 through December 31, 2020 was 24.10%.The same two-factor formula as b) above, except excluding the labor and assets of BHE GT&S and NVE Holdings, LLC subsidiaries. PacifiCorp’s allocation percentage during the period of January through October 31, 2020 was33.72% and November 1, 2020 through December 31, 2020 was 27.02%.The same two-factor formula as b) above, except excluding the labor and assets of HomeServices of America, Inc. PacifiCorp’s allocation percentage during period of January through October 31, 2020 was 35.09% and November 1, 2020 through December 31, 2020 was 29.26%.Asame two-factor formula as a) above, except excluding the labor and assets of HomeServices of America, Inc. and BHE’s Philippine subsidiaries. PacifiCorp’s allocation percentage during the period of January through October 31, 2020 was 29.53% and November 1, 2020 through December 31, 2020 was 25.39%.The same two-factor formula as a) above, except excluding the labor and assets of BHE GT&S, NVE Holdings, LLC subsidiaries and BHEAltaLink Ltd. subsidiaries. PacifiCorp’s allocation percentage during the period of January through October 31, 2020 was 38.17% and November 1, 2020 through December 31, 2020 was 28.61%.A formula based on the gross plant asset amounts of each of BHE’s subsidiaries. PacifiCorp’s allocation percentage during the period of January through October 31, 2020 was 32.45% and November 1, 2020 through December 31, 2020 was 28.69%.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, 2020 was1.33%.PacifiCorp to BHE and subsidiariesDuring the year ended December 31, 2020, PacifiCorp allocated costs toits non-regulated parent company, BHE, and certain of BHE’s subsidiaries, some of which are non-regulated, as part of the administrative services under the IASA. The amounts included in Section II – Transactions include both direct charges and allocated amounts. The allocated amounts were as follows:
The amounts were allocated by PacifiCorpto BHE and its subsidiaries usingsix different formulas during the year ended December 31, 2020. These formulas are as follows: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 through October 31, 2020 was 75.40% and November 1, 2020 through December 31, 2020 was 78.62%.The same two-factor formula as a) above, except excluding the labor and assets of BHE’s international subsidiaries. The percentage that PacifiCorp allocated to BHE and its subsidiaries during the period of January through October 31, 2020 was 71.48% and November 1, 2020 through December 31, 2020 was 75.90%.The same two-factor formula as b) above, except excluding the labor and assets of NVE Holdings, LLC subsidiaries. The percentage that PacifiCorp allocated to BHE and its subsidiaries during the period of January through October 31, 2020 was 64.91% and November 1, 2020 through December 31, 2020 was 70.40%.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 through October 31, 2020 was 70.47% and November 1, 2020 through December 31, 2020 was 74.61%.Asame two-factor formula as a) above, except excluding the labor and assets of HomeServices of America, Inc. and BHE’s Philippine subsidiaries. The percentage that PacifiCorp allocated to BHE and its subsidiaries during the period of January through October 31, 2020 was 67.55% and November 1, 2020 through December 31, 2020 was 71.31%.A formula based on shared Information Technology infrastructure that is owned and/or managed by MidAmerican Energy Company. The percentage that PacifiCorp allocated to BHE and its subsidiaries the period of January 1 through December 31, 2020 was98.67%.