20100107Compliance filing.pdf

~~~OUNTAIN RECEIVE
ZOIn JAN -6 AM 10: II
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Janua 6, 2010
VL OVERNIGHT DELIVERY
IDAHO
UTILITIES
Idaho Public Utilities Commission
472 West Washington
Boise, Idaho 83702
Att: Jean Jewell
Commission Secreta
RE: MidAerican Energy Holding Company Transaction Commitment 34
Case No. PAC-E-05-8
Pursuat to Order No. 29998, Case No. PAC-E-05-8, the Idaho Public Utilities Commssion
("Commssion") granted approval of the acquisition of PacifiCorp by MidAerican 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 transmission investment projects. Specifically, General
Commitment 34 states:
Transmission Investment:
MEHC and PacifCorp have identifed incremental transmission projects that enhance
reliabilty, facilitate the receipt of renewable resources, or enable further system
optimization. Subject to permitting and the availabilty of materials, equipment and
rights-of-way, MEHC and PacifCorp commit to use their best efforts to achieve the
following transmission system infastructure improvements1: ...
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 Januar 2008, the Company notified the Commssion that it had determed the Walla Walla-
Yakmalid C project was not economically feasible. Per 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 identified were Walla Walla to McNar
("McNar Project") and Vantage to Pomona Heights ("Vantage Project").
I While MERC has imered itself in the detals ofPacifiCorp's business acivities in the short tie since the anuncement of the traction
it is posible that upon fuer review a parcular investment might not be cot-effecive, optial for customers or able to be complete by the
taget date. If that should occur, MERC pledges to propose an alteratve to the Commssion with a comparle benefit. The Commssion may
investigat the reanableness of any determination by MERClPacifiCorp that one or more of the identified trission investments is not cot-
effective or optimal for customers.
Idaho Public Utilities Commssion
Janua 6, 2010
Page 2
In April 2009, afer receiving conditional use permits for the 56-mile, 230-kV McNar Project,
the Company put the project on hold in order to re-evaluate trsmission needs in light of
evolving regional transmission plans and potential renewable generation development in the
area.
PacifiCorp has recently received requests for transmission service, requiring that the Company
proceed with the Wallula, Washington to Umatila, Oregon portion of the McNar Project
transmission line. This section of the McNar Project is approximately 30 miles in length and
will be built on a 125-foot-wide right of way connecting the existing Wallula substation and the
McNar substation at Umatila. Constrcting ths portion of the line will provide the capacity to
add new renewable energy to the system, improve service to customers and improve the
reliability of the regional transmission system.
In the coming weeks, PacifiCorp will begin workig with property owners to obta rights of
way for the Wallula-McNar transmission line segment by the end of 2010. Constrction is
expected to begin soon thereafter, with plans to bring the new line into service in late 2011. At
this point, the Company has not determined when it will constrct the Walla Walla to Wal1ula
portion of the McNar Project.
In April 2009, the Company also notified the Commssion tht the in-service date for the
Vantage Project has moved to December 2012 due to a revised permitting timeline. This project
continues on tak for completion by December 2012.
By copy of ths letter, other paries to the proceeding are being provided notice of the status of
General Commitment 34 C.
If you have any questions, please contact Ted Weston at 801-220-2963.
Very trly yours,
J~ l. LM Ii
Jeffey K. Larsen
Vice President, Regulation
cc: Service List Case No. P AC-E-05-8
CERTIFICATE OF SERVICE
I hereby certify that on ths 6th day of Janua, 2010, 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 Transaction Commitment 34 in Case No. P AC-E-05-08, to the
followig:
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: dandersoncmmidamerican.com
Eric L. Olsen
Racine, Olson, Nye, Budge & Bailey,
Charered
201 E. Center
P.O. Box 1391
Pocatello,ID 83204-1391
E-Mail: elocmracinelaw.net
Baron L. Kline, Senior Attorney
Monica B. Moen, Attorney II
Idaho Power Company
P.O. Box 70
Boise, ID 83707
E-Mail: bkline(iidahopower.com
mmoen(iidahopower.com
Brad M. Purdy
Attorney at Law
2019 N. 17th Street
Boise,ID 83702
E-Mail: bmpurdy(iotmaiLcom
R. Scott Pasley
Assistat General Counsel
J.R. Simplot Company
P.O. Box 27
Boise, ID 83702
E-Mail: spasleycmsimplot.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(imidamerican.com
Anthony Yanel
29814 Lake Road
Bay Vilage, OH 44140
E-Mail: tony(iyaneLnet
John R. Gale
Vice President, Reguatory Affairs
Idaho Power Company
P.O. Box 70
Boise, ID 83707
e-Mail: rgalecmidahopower.com
Arur F. Sandack, Esq.
8 E. Broadway, Suite 510
Salt Lake City, UT 84111
E-Mail: asandackcmitower.net
..,
Donald L. Howell, II
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington (83702)
P.O. Box 83720
Boise,ID 83720-0074
E-Mail: donlhoweiicmpuc.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(iracinelaw.net
Katie Iverson
Brubaker & Associates
17244 W. Cordova Cour
Surrise, ~ 85387
E-Mail: kiversoncmconsultbai.com
David Hawk
Director, Energy Natual Resources
J.R. Simplot Company
P.O. Box 27
Boise, ID 83702
E-Mail: dhawkcmsimplot.com
Terr Carlock
Accounting Supervisor
Idaho Public Utilities Commission
472 W. Washigton
P.O. Box 83720
Boise,ID 83720-0074
E-Mail: terr.carlockcmpuc.idaho. gov
James R. Smith
Monsanto Company
Highway 34 North
P.O. Box 816
Soda Springs, ID 83726
E-Mail: jim.r.smith(imonsanto.com
Alan Herzfeld
Herzfeld & Piotrowski LLP
713 W. Franlin
P.O. Box 2864
Boise, ID 83701
E-Mail: aherzfeld(ihpllp.net
R. Scott Pasley
Assistat General Counel
J.R. Simplot Company
P.O. Box 27
Boise,ID 83702
E-Mail: spasley(isimplot.com
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Coordinator, Admstrative Services