20110131Compliance Filing.pdf

~~AÇ!B£9ßP D i: (' i:g1;;L ~\-./ r.,,~
Pacifc Por I
Rocky Mounn Por IPaCor Ene
825 NE Multomah. Suite 1900 LeT
Portland. Ore 972322011 JAN 3 i AM 9= 44
Janua 31, 2011
VI OVERNIGHT DELIVERY
Idaho Public Utilties Commission
472 West Washigton
Boise, ID 83702.5983
Attention:Ms. Jean D. Jewell
Commssion Secreta
Re: Idaho Docket No. P AC-E-OS-ØS Compliance Filng
To the Idao Public Utilties Commssion:
PacifiCorp submits the attchments in compliance with the Commission's Order in this case
issued on Febru 13,2006 and amended on March 14,2006. The Order approved the
Stipulation supportg the acuisition ofPacifiCorp by MidAencan Energy Holdigs
Company.
Commtment 120 of the Stipulation provides that PacifiCorp will provide to the Commission, on
an informational basis, credit rating agency news releases and:f reprts regarding PacifiCorp
when such reports are known to PacifiCorp and are available to the public.
Therefore, in compliance with Commtment 120 of the Stipulation, please find the attched report
related to PacifiCorp.
Very try yours,~~
Bruce Wiliams
Vice President and Treasurer
Enclosure
Fitch R ati iigS .f"
:T~..Corprates
9: 44
Global Power
u.s. and Cada
Ful Rating Report
PactftCorp
A Subsdiar ofMidAenca Ener Holdi Co.
(MC)1t..a.
Se SeSe UnPren
SliiiHemlD'-hp!a OuSt
Fl DaPlft-.)..Gl MICfOp EITot DITot (a__
Il (ICaDi1 .-)
tIO
4.50
2,141.461.636..13,601.laS
AD
Ph W. sm. CfA.1112901pMíP.smliitdatill.comKa An
[phone]
ka.a~itcltll . co
ReteRe
Cw:r
A-....
F2
F2
1Vl1.
4.452._1._1.Ø6."
13.141.42.0
Af Cr· Cote Rating ,.tIiO1.
Au. 16, 2010. Utiliti Seto Hoding Q(R~ R4t1ng, A! 16, 2010. U. S. Po øn C' Cotii
Opttn Risk (COR) Evøtf anFiiq Ciill, Au. 22, 20. (mit RattnGutWlM forRegted Utílìiy Com,
July J " 200l1l· MldA EM HodingCO/ (SdilJ of Beire
~, Inc.!, Ja. 6,2011. Arc Al11 A4dAan Eflry
Hoding Co. & Sudies,
Ott. f, 2010
Rati Rationae
· Pafl's (PP) rating, affrm by Fitc OI OC. 1, 2010, an St Ratl
Ouoo reflec th utlity's soid ftl po, coti re ba,retiy bala reti in It six-stte se teto, an conusu fro its ultimate cote pat, Be e Hathy (BR; isdeault rati (lOR) 'AA-'¡ Rating Ou Sta).
· TImey re of pl caitl int in rate is cru to PP's critqulit, in Ftt's view. Th rati as re of catal an optf coin rate wil su cr me co wi th cos '88' lO anSta Rati Ou.
· fitch este tht PPs fu-fro-oti-tointe an de-tFF willrang fr 4.2x-4.4x an 4.9x-5.3x, rey, in 2010-204, cot withFitc's ta meia for th '88' rati cate.
· Since be,. acre by Mi En Hong Co. (ME) in 20, retori at PP ha be mely re th th ad of taffmeis de to re reto la, inc fu adju cl,for tes ye, and si,.lets rate ca.
· PP's pl cal in pr ha mote in re to th
eyicl dour tht be in 207, bu reins retiy la, av.$1.6 billio pe an thf' 2014. Unticite cos ov or inilit to
re in in ba rate are prmary co for in.
· PP's rating co cote st tht in th op utlit froits 1ntete cote paret, ME, with im th pare's. abity toinfus cal in PP.
Key Rati Dr· An un suine de in de lei reti in st COrati.
· Siøifit deti in th utilit's reato co ac It si sttese teor.
· Lo th ex re of ca an opti co as wi PP'scata ex pr.
· SUtil cos ov aste with PPs ca ex pr.
. Lo of su fr ME/BRliqudi/Cait Stct
PP ha lonte de oung of $6.4 billio at th en of th thrd qu of
2010. Totl PP det outandng rete 47.3S of th co's $13.6 bilio
cata stre. PP's det-to-E8ITA rati wa 4.OX for th 12 moth en
Se. 30, 2010.
ww.fitchtigs.eom Januar 6, 2011
FitchRatiiigs Corprates
PPW ha total revoMJl cr ofS 1.4 bilio, cose of a$65 milio faclity tht is scedto matu Oc 2012, and a
$760 miUio fadltt tht re to
sno milio in July 2011 and
$630 milio in July 2012 an
matur Ju 2013. Th revver
su PP's CP pr ancertin vae-rate ta-exebo obUpti, and reire thtth utlitys coidte to det
to total c:lizti ratio at no
ti ex 0.65:1.0.
Det matuti ar ma, inFitch's vi, wi apmay
S 1.1 bilio of de scled tomature th 2014 anS58 mflio of tht amtscheuled to matu in 2011, as
indicte in th tae at nlt.
pacCo Caitl Sture
($ Mi. As of 5e 30.2001Sh. Ter 0e 34l..T- 0e 6,42Tot 0e 6.45Tot Hy Eq 31Cc Eq 7.153Tot Cata 13,6Tot Diot Ca .-) 47.Tot Hy £qITot CI .-) 0.2Cc EqITot Ca .-) 51.4
So F1 mo.
Pad Lo Ter De Matur1
SCle 2011-2014
($MI.)
2011
2012
2013
204So Ci rw
58
17
261m
La Cait Inveent PrFor th ninmo pe en set. 30, 2010, PP tied apmayS1.3 billion prly in trallSlnls, em cotr eqt, wi po, aninfra. CB extu dune th ni mo en se. 30, 200dere 5516 millio copa to th sa pe in 20, re re an
de of cein prje du to slow de dri by th ec dotu thbe in 200.
Total cata exp in 2010 are ex to be 51.7 billio. PP's ca
invtm Is exed to apxite sa billio duJl 201&-2014, avent$1.6 billio per an. PPs fut ca sp pr Is ex to be
co of wind, tr, ental retf, an eett prjeas well as sy ov to maintain reUabiltt an se ne lo. Am PP'slari exns prje Is th En Gate tris prje, wh Is
ex to be a mo th $6 billio in.
En Gatey cotemte th ad of aptely 2,00 miles of hi YGtr line prr1y in Ut, Wyi.. Id, Or. an th de So
durl 201&-2018. Th firs ph of th prje, Pous (in so ld)-to
Terina (near salt La Ctt, UT, is a 13S-mile doe drct 34S.kl line tht
wa fully cometed an pl in se No. 19, 2010.
Futre dend .ør Is ex to be met thoo a mi of ef wi an foslienalion as wel as de-scJ mat an en ef PfAlth ri of cost CI an sÍJtft dey to PP's caitl exprog Is a potial co for Invto, Fitc no tht rnt ha
comiled a solid tr red in exec It tnt pl.
2 Paff Ja 6, 2011
FìtchRatiiigs Corprates
Regtory Delopments
Givn th siz of it pla capitl invt, timey rêC of capital an reteopting an mainte co is crl for PP's crtwine. Thefor,currently unaicte ad deopts in PP's si reto jur,leading to trter I'lato la or lo rec, an I'lti weaker CCM.rati copare with Fft's prje cold lea to fure deertion in PPs
creitwine an lo cre ratt.
PP mana reins key foc on mana th I'lator pr thefecve comictlo wi regto, fre rate ca filin, an wo
dosy with poic an inte gr to im effeciv co-re
meis an pold. Ind, PP ha co a tr red of set1øelrate ca (GRC), po co adustmt, an oth tarf pr wi baouom ac it se teto in ret ye.
PPW's efort to re regtor la an coty ex have siyimp th utlits bu ri prle, in fitc's vi. Su me ln
ad of a forrclo te ye in GA fiUnp an $inae-is rate ca
pr in Ut, as wel as ad of ne po suy co adjumeis in Or, caifor, Id, an Wy.
PP fied re to im an en co adjust me (EeA) in Ut
an re th exring po co adjus meni (PC) with an ECA in
Wyng. Th ECA filing we fi by PP in Ma 200 in Uta an Apl 2010 in
Wying.
Th Uth Puic 5e Co (UPS) is ex is a fil or In th
coms peng ECA in th fi qL of 201. Th ECA pr wabffwcte in tw ph. Th firs ph of th ECA wa coed In th firs
quer of 2010, with th UPS is an or to pr to th se ph. In Itsor, th UP co tht ev to be pr In ph tw of thpr wo be ne to deerin if an ECA Is in th puic Iner HeInECA ph tw we co In No 2010. A fina or Is ex in th
firs qurter of 2011.
In Wytn, PPs PC Is sced to su with fil deer of ne po co
in No 2010 an colec th Marc 202. In Ap 200, PP file anappicti with th Wying Puic See Cofs (W) to ad a ne £C
to re th expng PC. A fil or Is exed to be is by th WP In th
firs qurt of 201 efec re to De. 1, 2010.
Cerin pa to th Ut an Wying ECA pr have suitt tearil' for large sh.. of po su cot dter an dea ba Fue
adjus stre in this way will, all el eql, ei th utlt to ..tecoty ri th a meha wi full pa-thou of su co to rateye ona timey ba. In fft's opinio, ad an lmtatl of fue adjusor thtfaciUtate full an tly re of prtly Inc po suy co re
comty ri and are co fro a fixe In Inve pOt-o-vt.
In De 2010, th UP iss an orr ap a $6 milUon aMual rateincreas to re PP co aste with cein prjec coet in 200. Thsiose-iss rate ca we file with th coss in feb 2010 an Au
2010 to rer cots asate with prjec comed by PP in Jt 2010 anDe 2010, revey. Ne rates will be efec Janury 201.
Pacffor Jaoolr 6, 2011 3
FitchRatiligs Corprates
PP has GRC filng peing in Wying, Washing, and Id, sung SCJ mUlio
(17%), $57 milUOI (21'), an $25 milio (12%) rate Incre, reivy. Final or
in th rate preeng are andpated in 2011.
Corpra Stct
BRPP's affliati wi intete ho copa, ME, an It ultite paent,BR, pr tw un, spfi fl adta tht cofer, In Fitc's vi, amee of incretal final flextUty to PP.
Firs, unike mo utlity hoding co, ME bets siifly fro calrein as th dire rest of BR's financal sten, whic obte th ne for
MEHC to uprea df, in tu long di reirets fro It optinsuari.
Se, ME an BR have ente int an eq cotm agt (ECA). Th
ECA pr eq cata of up to $3.5 bfU10 th Feb 2011 an $2 bfU10th Fery 201.. at th re of ME, to be us for th pu of pawh du ME de obipti an fu th øel cote purp ancaital rere of ME's rete su.
PP's rati bet fro th st ffl po of BR, its ultimate cote
pat, an BR's stteg to int in utlit asts to th lon te.
Ringennø Me
ME ha impemte POtc an pr, ln th aeati of a sppu en, PP Hodl LLC (PP) cf to inste PP an It optisudi PP fro It paret, ME, an affliate. Am ot th, th ringfene pr inc: a no coidti opn1o; an in di no.
re str; di reio; a prtbiti qafns th us of PPds crtor pled of it as to th be of an oth coy; an, th ma of
sete bo, fll re, an emoy.
4 Pacflor Ja 6, 2011
Fitch Ratiiigs Corprates
Ffnaal Summa -r PaciCor
($ MI.. fl V...En De)
lTM91J10 20 20 207 20Fur Ra (x)FF/tntel'is Ea 5.6 5.5 4.3 4.0 3.9CF/tn Ea 4.9 4..U 3.6 3.0FF/De ~)27.27.6 20.0 1..1 14,Optf EBftn Ei z.2.7 U 2.1 1.Op ElIf Ei 4.3 4.1 4.2 4.4 3.Op £B(l Ei + Re)4.3 4.1 4.4.4 3.5De() El 4.0 4.0 3.3.5.9Co Di Pa~ .-)ln CaCa ~)IG.64.3 55.3 54.1 049Ca~.-)32.5 424.0 36.1 305.29.1~Ad...4,50 4,45 4,_4,2 2,Ð4NI Ri 2,1M 2,71 2,541 2,4t 1,6() ., Maln Ei 1.on 1,03 99 1,C 71Optf El 1,635 1,60 1,437 1,31 noDett ., Amti Ei 55 54 4t 49 355Op EB 1,_1,D 94 ..415Gn'" bp 379 39 34 314 22Ne ii fo Ci 51 54 45 439 159Op Mi Ei I of Ne Re 37.7 37.2 39.0 043 47.OpÐl I of NI..310 311 37.35.7 25.CuflCI Ft ffl 0p 1,46 1,50 99 a..mCl fn ~ CI CZ)CZ74)(142)(115)CZ13),i. fro ()lo 1.149 1.774 1,134 939 645DI(Z CZ)CZ)CZI CZ)CI Ex (1,112)CZ.3)(1,71)(1,519)(1,C1)F' CI Ft (3)(1)(7)(6 (61)NI au Ii Cl Ft (7)5 6 .9Ne CI In De 18 763 46 66 J5NI Eq Pi ZZ 125 450 162 ZfCI StSIIt-ei De 34 85 39LøTemDe 6,425 6,426 S,57 5,177 4,114Tot De 6,45 6,426 5,66 5,177 4.511TCl Hv l' ll Ml In 31 115 31 31 59Co Eq 1.153 6.lI 5, Wi 5,039 4,.TotCl 13,6 13,148 11,6 10,247 8,_Tot Deot C8.-) 47.3..'..7 soS 50.4Tot Hv Eq ., Ml lnat Ce .-) 0.2 0.9 0.3 0.3 0.7Co l'lTot CI (I) 52.4 50.3 51.1 49.2 49.0
L.1M -lA 12 mi. Opll £I - Op ll be_ lI AI st an fe ln tu ... oi EI - Op me liti AI stlI fe me tu .. pl dlll,li _ tt ei. Na: Ji ma Il II di tø.-So Ca re FI Il.
Padftor Jan 6, 2011 5
FitchRatings Corprates
AU FI CR 1l1I _ us 10 CDNN LMA11 Nt Il fI II 1lt.Nt ÐI BY fÐ 'M I. HT//F1TlCQl.~TN Ie NlRATH II Nt 1l ~ f6 US f6 Sl RA11 _ AYMJ ON 1l AG.Pl va Sl ATWW.PllCO fl RA11 ~ Nt ME lJ _ AVI f1 1l Sl AT AU11 Fm CO f6 t:. CO, CO f61N AF FI ~ AMOT AEAN PC AM PI_AI AYNI f1 11 aif6COSl f611sr
Ct c 3ln ~ FI In, Fi ~ Ll ii Is Il or.. SW PI MY, MY 1O TlI1'-75 (22) 'I FI (21 .- ~ or ..... in wi or In 1* . pi-.- pe Al ~ ~ in.... l\ii as .. Fi ni II fI ~".., iti. ln illl \i~ ii ti ad sa Fi bi tD 1l cr Fi ai . ..
~. of th fi iibill ni up il tin llicWl Is iI 1-:.1I ci...If.oftt iibli"" fi=:.. sa tDth_ .uduouias_ fo ...-.orin. ..)r 1l.. of . fi ~ ii th il of th tI .if, it fl wiVl.. II th l'ofthl1~ ii li . , th iw Iipr in th)l in wN
th ni -"lsaØ ii lI""or th.. is ii. th lN enl' of ni pi. iiill
-- s. of th "'ii Is.. th MI of rn J ...11 fiiI .ii u:.
iu .. PR =~.eii. aa ni a=.. .:::ii 0l.. ~ fi .. th of i.... ii Cliip. .. ..Il tD th i- ~ or in th II Ji of th .., .. . wr of .. ui of f''s~.ft lI tt 1l.. en la "' ..". ~ ..ar..tI liof d1 ''1lililllh Fi ni II In Cl.ll wi... wi lCen ~ ... ....ii IIId _ RIll fo th ac of" 'ibn"', _ ii tDFl en CO.... In.. dIii 0l MP In'" li iI f1 lI _ II .. wa of ei ln ....... wI =tDfI....lilNaiwI ....uo..ii ta mi Ai... - iil.:i--ii em ~ ii pid2a ii fi Mi tt I' lt1' Qi be wr. ,....dI". .., of a. fI "'CIbi at." fl t1 or Cl tt..na ... atth.-... MS.. or ii11 iib".., In .. ni is pn "Is wI ". lI-il, or .. of ". ki A Fl .. . 1f
__. . CO th add*. of . lI. 11ap ...11 ..ie erlln~Fl is==~ii~ l' .._thc:Wl profFiIl AI II or..of . tslC niidfU... ib.... na id thdl of _.. CO riOlhfCldl.. u: ts II mn FI Is na .. in .. .. or _ of ". ~. Al Fl Nf 11sI ~ fi id in. Fi ni WI fn in iu - na diæ fo. ....Sb lJ nifn_.. foea.. cr. Ani . f' tsll ..~.. .ùifo" iibnil, ~ Wr II..CO~... ..InCllllwi .._of.... ~.. a. dw or wi at.. fo"... in tJ.. cl off1 Fl" na pn li. ad of an at Ri n na . RIid tD .. .. cr li ".
se. ~ do na CI en th ac of IN pr, th di of an se fo ..¡l...or th ta.. I' or ta of JI ni in iI CO lI sm. fI .. _ fi ..~.. 0l ll an uildwr fo ra sa SU_... Vl ti .1. toU5 (Gth ii CU..) pe... In Cl ca Fi wi nill of. ru of....il. i-.., orin or~. i-tior.., fo. ...... SUfe_ep CO Vl fR US1O CO 1 (Gth llQl~ 1f _... ~ ordllill of . ,.." Fl na no CI. c:_ f1 CO we Is ßI. .. ei in cølll wl..
i:' st fl.. th i. St SI _ th Fl5e ii MI lt of 2a of ei. or th Sl la of ". DI ju b CO th ni ef of tI rù iidl f1 A! maa. ai toel u. up to et _..it to pr~
6 PaflCo Ja 6. 2011