20090407Compliance Filing.pdf

~~;:OUNTAIN
r:r:p,!,..1 t._.,;-.. I-
April 7, 2009 inU9 ~PR - ì AM II: l 5
201 South Main, Suite 2300
Salt Lake City, Utah 84111
VI OVERNIGHT DELIVERY
Idaho Public Utilties Commission
472 West Washington
Boise, Idaho 83702
Att: Jean Jewell
Commssion Secreta
RE: MidAerican Energy Holdings Company Transaction Commitment 34
Case No. PAC-E-05-8
Pursuat to Order No. 29998, Case No. PAC-E-05-8, the Idaho Public Utilties Commission
("Commission") granted approval of the acquisition of PacifiCorp by MidAmerican Energy
Holdings Company ("MEHC"), subject to a Consolidated List of Commitments specified in a
settlement agreement supported by all paries to the proceeding. One of the commtments in the
consolidated list addresses proposed trsmission investment projects. Specifically, General
Commtment 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-o.fway, MEHC and PacifCorp commit to use their best efforts to achieve the
following transmission system infrastructure improvementsl: ...
c) Walla Walla - Yakima or Mid-C (~$88 millon) - 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.
In Janua 2008, the Company notified the Commssion that it had determed the Walla Walla-
Yakmalid C project to not be economically feasible. Per the commitment's footnote, if a
project was not cost-effective or in the best interest for customers, the Company would propose
1 While MEHC has imersd itself in the detals ofPacifiCorp's business acivities in the short time since the anouncement of the transacon,
it is possible that upon fuer review a parcular investment might not be cost-effective, optial for customer or able to be copletd by the
taget dae. If that should occur, MEHC pledges to propose an alternatve to the Cossion with a comparle benefit. The Commssion may
investigat the reasonableness of any determinaton by MEHC/PacifiCorp that one or more of the identified trsmission investments is not cost-
effective or optimal for customers.
Idaho Public Utilties Commission
April 7, 2009
Page 2
an alternative to the project. The alterntive projects identified in Janua 2008 were Walla
Walla to McNar ("McNar Project") and Vantage to Pomona Heights ("Vantage Project").
Recently, the planed McNar Project, a 56-mile, 230-kV transmission line, has been re-
examed as a normal course of project management based on changing regional dynamcs and
economics. As à result, PacifiCorp will complete the permitting scope of work for the line.
However, instead of moving forward immediately with obtainng the right of way, PacifiCorp
will evaluate the project as par of a broader regional assessment that considers additional
paries' transmission infastrctue plans and commitments across the region. Over the next six
to twelve months, regional and PacifiCorp plan are expected to matue and produce a
comprehensive westside investment plan. This measure will delay the curent target completion
date of year-end 2010; a new in-service date for the McNar Project will be established once the
regional analysis is complete.
The Company is also adjusting the in-service date for the Vantage Project due to à revised
permitting timeline. The original schedule, which called for an October 2011 in-service date,
estimated a shorter duration for the federal environmenta assessment permt process. The
Company ha since determed that an additional 12 to 14 months will be required to allow for a
full Environmenta Impact Statement process, requied as par of the National Environmenta
Policy Act (NEPA) permitting process. The revised in-service date for the Vantage Project is
December 2012.
By copy of this letter, other paries to the proceeding are being provided notice of the statu of
General Commitment 34 C.
If you have any questions or would like to meet to discuss these transmission projects, please
contact Ted Weston at 801-220-2963.
Very trly yours,
J~K.L~~
Jeffey K. Laren
Vice President, Regulation
cc: Service List Case No. PAC-E-05-8
CERTIFICATE OF SERVICE
I hereby certfy that on this 7th day of April, 2009, I caused to be served, via E-mail, if
address available or U.S. Mail a tre and correct copy of the MidAerican Energy
Holding Company Trasaction Commitment 34 in Case No. PAC-E-05-08, to the
following:
Andrea L. Kelly
Vice President, Regulation
PACIFICORP
825 NE Multnomah, Suite 2000
Portland, OR 97232
E-Mail: andrea.kelly(fpacificorp.com
Douglas L. Anderson
Senior Vice President & General Counsel
MidAerican Energy Holdings Company
302 S. 36th Street, Suite 400
Omaha, NE 68131
E-Mail: danderson(fmidamerican.com
Eric L. Olsen
Racine, Olson, Nye, Budge & Bailey,
Charered
201 E. Center
P.O. Box 1391
Pocatello,ID 83204-1391
E-Mail: elo(fracinelaw.net
Baron L. Kline, Senior Attorney
Monica B. Moen, Attorney II
Idaho Power Company
P.O. Box 70
Boise, il 83707
E-Mail: bkline(fidahopower.com
mmoen(fidahopower.com
Brad M. Purdy
Attorney at Law
2019 N. 17th Street
Boise, ID 83702
E-Mail: bmpurdycmhotmail.com
R. Scott Pasley
Assistant Genera Counsel
J.R. Simplot Company
P.O. Box 27
Boise,ID 83702
E-Mail: spasley(fsimplot.com
Mark C. Moench
Senior Vice President - Law
MidAerican Energy Holdings Company
201 S. Main, Suite 2300
Salt Lake City, UT 84111
E-Mail: mcmoench(fmidamerican.com
Anthony Yanel
29814 Lake Road
Bay Vilage, OH 44140
E-Mail: tonycmyanel.net
John R. Gale
Vice President, Regulatory Afairs
Idaho Power Company
P.O. Box 70
Boise, il 83707
e-Mail: rgale(fidahopower.com
Arur F. Sandack, Esq.
8 E. Broadway, Suite 510
Salt Lake City, UT 84111
E-Mail: asandack(ßitower.net
Donald L. Howell, II
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington (83702)
P.O. Box 83720
Boise, in 83720-0074
E-Mail: donlhowell(fuc.idaho.gov
Randall C. Budge
Racine, Olson, Nye, Budge & Bailey,
Charered
201 E. Center
P.O. Box 1391
Pocatello,ID 83204-1391
E-Mail: rcb(ßracinelaw.net
Katie Iverson
Brubaker & Associates
17244 W. Cordova Cour
Surrise, AZ 85387
E-Mail: kiverson(fconsultbai.com
David Hawk
Director, Energy Natu Resources
J.R. Simplot Company
P.O. Box 27
Boise,ID 83702
E-Mail: dhawk(fsimplot.com
Terr Carlock
Accounting Supervisor
Idaho Public Utilties Commssion
472 W. Washington
P.O. Box 83720
Boise, in 83720-0074
E-Mail: terr.carlock(fpuc.idaho.gov
James R. Smith
Monsanto Company
Highway 34 Nort
P.O. Box 816
Soda Springs, ID 83726
E-Mail: jim.r.smith(ßmonsanto.com
Alan Herzfeld
Herzfeld & Piotrowski LLP
713 W. Frain
P.O. Box 2864
Boise,ID 83701
E-Mail: aherzfeld(fhpllp.net
R. Scott Pasley
Assistat General Counsel
J.R. Simplot Company
P.O. Box 27
Boise, ID 83702
E-Mail: spasley(ßsimplot.com
J'~ ~¿
Arel Son
Coordinator, Adminstrative Services