20080122Compliance filing.pdf

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Janua 22, 2008
201 South Main, Suite 230
Salt Lake City, Utah 84111
VI OVERNIGHT DELIVERY
Idaho Public Utilities Commssion
472 West Washington
Boise, Idaho 83702
Att: Jean Jewell
Commssion Secreta
RE: MidAerican Energy Holding Company Transaction Commitment 34
Case No. PAC-E-OS-8
Pursuant to Order No. 29998, Case No. PAC-E-05-8, the Idao Public Utilties
Commission ("Commission") granted approval of the acquisition of PacifiCorp by
MidAerican Energy Holdings Company ("MEHC"), subject to a Consolidated List of
Commtments specified in a settlement agreement supported by all paries to the
proceeding. One of the commitments in the consolidated list addresses proposed
transmission investment projects. Specifically, General Commitment 34 states:
Transmission Investment:
MEHC and PacifCorp have identifed incremental transmission projects that
enhance reliabilty, faciltate the receipt of renewable resources, or enable further
system optimization. Subject to permitting and the availabilty of materials,
equipment and rights-ol-way, MEHC and PacifCorp commit to use their best
efforts to achieve the following transmission system infastructure
improvementsl: ...
c) Walla Walla - Yakima or Mid-C (~$88 milion) - Establish a link between the
"Walla Walla bubble" and the "Yakima bubble" and/or reinforce the link
between the "Walla Walla bubble" and the Mid-Columbia (at Vantage). Either
of these projects presents opportunities to enhance PacifCorp's abilty to accept
the output from wind generators and balance the system cost effectively in a
regional environment. The target completion date for this project is 2010.
1 While MEHC has immers itself in the detals ofPacifiCorp's business activities in the short time since the anouncement of the
trsaction, it is possible that upon furter review a paricular investment might not be cost-effective, optimal for cusomers or able to
be completed by the target dat. If that should occur, MEHC pledges to propose an alternative to the Commission with a comparable
benefit. The Commssion may investigat the renableness of any determinaton by MEHClPacifiCorp that one or more of the
identified trmission investments is not cost-effective or optimal for customers.
Upon fuer review, the Walla Walla - Yakma/id C project is not economically
feasible. Based on internal system planng studies and the company's evaluation of
alternative projects, PacifiCorp is replacing the Walla Walla - Yakma/id C project
with two projects that would provide similar benefits. At the time the commitment was
made, as noted in the commtment's footnote, if a project was not cost-effective or in the
best interest for customers, the company would propose an alternative to the project. The
alternative projects for the Walla Walla - Yakma/id C project include two new
projects that PacifiCorp's transmission group has evaluated:
. Walla Walla to McNar ("McNar Project") is a new 230 kV transmission line
staing at the PacifiCorp Walla Walla substation connecting into the Wallula
substation in Washington State and ending at the Bonnevile Power
Administration's McNar substation in Oregon State. The estimated in service
date is December 2010.
. Vantage to Pomona Heights ("Vantage Project") is a new 230 kV trsmission
line connected at the Bonnevile Power Administration Vantage substation near
Vantage Washigton and ending at the PacifiCorp Pomona Heights substation in
Yakma Washington. The estimated in service date is October 2011.
The McNar and Vantage Projects would provide similar benefits as the originally
proposed Walla Walla - Yakima/id C project such as enhancing PacifiCorp's abilty to
accept renewable output and provide for system balancing. Specifically, the replacement
projects support the curent and projected demand in PacifiCorp's service area, assist in
meeting energy constraint concerns, move electrcity from renewable resources in
remote locations to the high-growth areas of PacifiCorp's service terrtory, promote the
development of renewable resources, help optimize the energy corrdors in the
Nortwest, and resolve identified system overload conditions. The proposed projects
also support the regional expansion plan that is being proposed by other transmission
providers to relieve regional transmission constraints, enhance reliabilty and enhance
development of resources in the region. The projects wil be subject to permtting,
fuher analysis and review by regional planng, siting and permitting agencies, as well
as the availability of materials, equipment and rights of way
By copy of this letter, other paries to the proceeding are being provided notice of ths
change to the General Commtment 34 C. Futue commitment status reports will refer to
the alternative projects, the McNar and Vantage Projects, as described above
If you have any questions or would like to meet to discuss these new trsmission
projects, please call me at 801-220-4907.
Very trly yours,
~~bjM¿Jeffrey K. Larsen
Vice President, Regulation
cc: Service List Case No. PAC-E-05-8
CERTIFICATE OF SERVICE
I hereby certify that on this 22nd day of January, 2008, I caused to be served, via E-mail,
if address available or U. S. Mail a true and correct copy of the MidAmerican Energy
Holding Company Transaction Commitment 34 in Case No. PAC-E-05-08, to the
following:
Andrea L. Kelly R. Scott Pasley
Vice President, Regulation Assistat General Counsel
PACIFICORP lR. Simplot Company
825 NE Multnomah, Suite 2000 P.O. Box 27
Portland, OR 97232 Boise,ID 83702
E-Mail: andrea.kelly(fpacificorp.com E-Mail: spasley(fsimplot.com
Douglas L. Anderson Mark C. Moench
Senior Vice President & General Senior Vice President - Law
Counsel MidAmerican Energy Holdings Company
MidAmerican Energy Holdings 201 S. Main, Suite 2300
Company Salt Lake City, UT 84111
302 S. 36th Street, Suite 400 E-Mail: mcmoench(fmidamerican.com
Omaha, NE 68131
E-Mail: danderson(fmidamerican.com
Eric L. Olsen Anthony Yanel
Racine, Olson, Nye, Budge & Bailey,29814 Lake Road
Charered Bay Vilage, OH 44140
201 E. Center E-Mail: tony(fyanel.net
P.O. Box 1391
Pocatello,ID 83204-1391
E- Mail: elo(fracinelaw.net
Barton L. Kline, Senior Attorney John R. Gale
Monica B. Moen, Attorney II Vice President, Regulatory Affairs
Idaho Power Company Idaho Power Company
P.O. Box 70 P.O. Box 70
Boise,ID 83707 Boise,ID 83707
E-Mail: bkline(fidahopower.com e-Mail: rgale(fidahopower.com
mmoen(fidahopower.com
Brad M. Purdy Arhur F. Sandack, Esq.
Attorney at Law 8 E. Broadway, Suite 510
2019 N. 17th Street Salt Lake City, UT 84111
Boise,ID 83702 E-Mail: asandack(fitower.net
E-Mail: bmpurdy(fhotmail.com
i
Donald L. Howell, II Terr Carlock
Deputy Attorney General Accounting Supervisor
Idaho Public Utilities Commission Idaho Public Utilties Commission
472 W. Washington (83702)472 W. Washington
P.O. Box 83720 P.O. Box 83720
Boise,ID 83720-0074 Boise,ID 83720-0074
E- Mail: donlhowell(fpuc.idaho. gov E-Mail: terri.carlock(fpuc.idaho.gov
Randall C. Budge James R. Smith
Racine, Olson, Nye, Budge & Bailey,Monsanto Company
Charered Highway 34 North
201 E. Center P.O. Box 816
P.O. Box 1391 Soda Springs, ID 83726
Pocatello,ID 83204-1391 E-Mail: jim.r.smith(fmonsanto.com
E-Mail: rcb(fracinelaw.net
Katie Iverson Alan Herzfeld
Brubaker & Associates Herzfeld & Piotrowski LLP
17244 W. Cordova Cour 713 W. Franlin
Surrise, AZ 85387 P.O. Box 2864
E-Mail: kiverson(fconsultbai.com Boise,ID 83701
E-Mail: aherzfeld(fhpllp.net
David Hawk R. Scott Pasley
Director, Energy Natual Resources Assistant General Counsel
J.R. Simplot Company J.R. Simplot Company
P.O. Box 27 P.O. Box 27
Boise, ID 83702 Boise,ID 83702
E-Mail: dhawk(fsimplot.com E-Mail: spasley(fsimplot.com
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Coordinator, Administrative Services