20110531Affiliated Interest Report for 2010.pdf

~ ROCKY MOUNTAINPOR
A DIISION OF PAACORP REceiVED -*
201 South Main, Suite 2300
Salt Lake City, Utah 84111
May 31, 2011 ioii HAY 31 AM 9= 44
VL OVERNIGHT DELIVRY
Idaho Public Utilties Commission
472 West Washigton Street
Boise, ID 83720-5983
Attention: Jean Jewell
Commssion Secreta
RE: Affilated Interest Report for the calendar year 2010
In accordance with MidAerican Energy Holdigs Company Transaction Commtment #8
approved in Case No. PAC-E-05-08, enclosed for filing is an original and three (3) copies of
PacifiCorp's (d.b.a. Rocky Mounta Power) Afliated Interest Report for calenda year 2010.
By copy of ths letter other paries are being provided notice of ths filing.
It is respectlly requested tht all formal correspondence and Sta requests regarding this filing
be addrssed to the followig:
By E-mail (preferred):datarequest(qpacificorp.com
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portand, OR 97232
Inormal inquies regarding ths fiing, or requests for copies of the report, can be directed to
Ted Weston at [phone].
Sincerely,~~
Jeffey K. Larsen
Vice President, Regulatio
Enclosures
cc w/o enclosure: Service List in Case No. PAC-E-05-08
I hereby certify that on ths 31st day of May, 201 1, I caused to be sered, via E-
mail, if address available or U.S mail, a tre and correct copy ofPacifiCorp's cover letter
accompanying the Compliance Filng, Afliated Interst Report for Calendar Year 2010
(Commtment #8) in Case No. P AC-E-05-8.
Andrea L. Kelly R. Scott Pasley
Vice President, Reguation Assistat General Counsel
PacifiCorp J.R. Simplot Company
825 NE Multnomah, Suite 2000 P.O. Box 27
Portland, OR 97232 Boise,ID 83702
E-Mail: andrea.kelly(qacificorp.com E-Mail: spasley(qsimplot.com
....
Dougas L. Anderson Mark C. Moench
Senior Vice President & General Counel Senior Vice President - General Counl
MidAerican Energy Holdigs Company Rocky Mounta Power
666 Grand A venue, Suite 500 201 S. Mai Suite 2400
Des Moines, IA 50309-2580 Salt Lae City, UT 8411 1
E-Mail: danderson(ßmidamerican.com E-Mail: mark.moench(ßpacificorp.com
Eric L. Olsen Anthony Yanel
Raine, Olson, Nye, Budge & Bailey,29814 Lae Road
Charred Bay Vilage, OH 44140
201 E. Center E-Mal: tony(qyanel.net
P.O. Box 1391
Pocatello,ID 83204-1391
E-Mail: elo(qracinelaw.net
Lisa Nordstrom David Hawk
Gregory Said Dirtor, Energy Natual Resources
Idaho Power Company J.R. Simplot Company
P.O. Box 70 P.O. Box 27
Boise, il 83707 Boise,ID 83702
E-Mail: Inordstrom(ßidahopower.com E-Mail: dhawk(ßsimplot.com
gsaid(ßidahopower.com
Bra M. Purdy Arur F. Sandack, Esq.
Attorney at Law 8 E. Broadway, Suite 510
2019 N. 17th Stret Salt Lake City, UT 84111
Boise, il 83702 E-Mail: asandack(ßmsn.com
E-Mail: bmpurdy(ßhotmail.com
Donad L. Howell, II Terr Carlock
Deputy Attorney Genera Accounting Supesor
Idaho Public Utilties Commission Idaho Public Utilties Commssion
472 W. Washington (83702)472 W. Washigton
P.O. Box 83720 P.O. Box 83720
Boise, ID 83720-0074 Boise,ID 83720-0074
E-Mail: donlhowell(ßpuc.idaho.gov E-Mail: terr.carlock(qpuc.idaho.gov
Radal C. Budge James R. Smith
Raine, Olson, Nye, Budge & Baiey,Monsato Company
Charered Highway 34 Nort
201 E. Center P.O. Box 816
P.O. Box 1391 Soda Sprigs, il 83726
Poctello, il 83204-1391 E-Mail: jim.r.smith(ßmonsanto.com
E-Mail: rcb(qracinelaw.net
Kaie Iverson Alan Herzeld
Brubaker & Associates Herzfeld & Piotrwski LLP
17244 W. Cordova Cour 713 W. Frain
Surrise, AZ 85387 P.O. Box 2864
E-Mail: kiverson(ßconsultbai.com Boise, il 83701
E-Mail: aherzfeld(ßhpllp.net
.
Care Meyer
Coordinator, Admstr
PacifiCorp
Affiliated Interest Report
For the year ended December 31, 2010
Table of Contents
i. Organization
i. A. Officers and Directors
1. PacifiCorp Board of Directors and Committees of the
Board of Directors
2. PacifiCorp Offcers
3. PacifiCorp Officers and Directors with Affiliated
Positions
i. B. Changes in Ownership
i. C. Affiliate Descriptions
i. D. Financial Statements
II. Transactions
III. Loans
N. Debt Guarantees
V. Other Transactions
VI. Employee Transfers
VII. Cost Allocations
Intercompany Admistrative Services Agreement
Appendix A - Oregon Public Utility Commssion orders approving affiliate
transactions
I. ORGANIZATION
PacifiCorp, which includes PacifiCorp and its subsidiares, is a United States reguated electrc company
serving 1.7 million retail customers, including residential, commercial, industral and other customers in
portons of the states of Utah, Oregon, Wyoming, Washington, Idaho and California. PacifiCorp own, or
has interests in, 78 thermal, hydroelectrc, wid-powered and geothermal generatig facilities, with a net
owned capacity of 10,623 megawatts. PacifiCorp also owns, or has interests in, electrc transmission and
distrbution assets, and trsmits electrcity though approximately 16,200 miles of transmission lines.
PacifiCorp also buys and sells electrcity on the wholesale market with public and private utilities, energy
marketing companies and incorporated municipalities as a result of excess electrcity generation or other
system balancing activities. PacifiCorp is subject to comprehensive state and federal regulation.
PacifiCorp's principal executive offces are located at 825 N.E. Multnomah Street, Portland,
Oregon 97232, and its telephone number is [phone]. PacifiCorp was initially incorporated in 1910
under the laws of the state of Maine under the name Pacific Power & Light Company. In 1984, Pacific
Power & Light Company changed its name to PacifiCorp. In 1989, it merged with Uta Power and Light
Company, a Utah corporation, in a transaction wherein both corporations merged into a newly formed
Oregon corporation. The resultig Oregon corporation was re-named PacifiCorp, which is the operating
entity today.
PacifiCorp's subsidiaries support its electrc utility operations by providing coal mining and environmental
remediation services. PacifiCorp delivers electrcity to customers in Uta, Wyoming and Idao under the
trade name Rocky Mountain Power and to customers in Oregon, Washington and California under the trade
name Pacific Power. PacifiCorp's electrc generation, commercial and tradig, and coal mining fuctions
are operated under the trade name PacifiCorp Energy.
PacifiCorp is an indirect subsidiar of MidAerican Energy Holdings Company ("MEHC"), a holding
company based in Des Moines, Iowa, that owns subsidiares principally engaged in energy businesses.
MEHC is a consolidated subsidiar of Berkshire Hathaway Inc. ("Berkshire Hathaway"). MEHC controls
substantially all ofPacifiCorp's voting securties, which include both common and preferred stock.
The following pages provide organization chart ofPacifiCorp's and MEHC's subsidiares. See section I.C.
Affiliate Descriptions for discussion of affliates with which PacifiCorp did business durng the year ended
December 31, 2010, including Berkshire Hathaway affiliates.
Subsidiaries ofPacifiCorp as of December 31,2010
Approximate State of Jurisdiction
Percentage of Voting oflncorporation or
Name of Subsidiary Securities Owned Ore:anization
Centralia Mining Company 100%Washington
Energy West Mining Company 100%Utah
Glemock Coal Company 100%Wyoming
Interwest Mining Company 100%Oregon
Pacific Minerals, Inc.100%Wyoming
- Bridger Coal Company, a joint ventue 66.67%Wyoming
Trapper Mining Inc.21.40%Colorado
PacifiCorp Environmental Remediation Companv 100%Oregon
PacifiCorp Investment Management, Inc.100%Oregon
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December 31, 2010
2. PacifiCorp offcers during the year ended December 31,2010
3. PacifCorp offcers and directors with affilated positions as of December 31,2010
The positions listed for the directors and offcers in each of these sections are those positions that were held
as of or durng the year ended December 31, 2010, as indicated. Changes that occured subsequent to
December 31,2010 (if any) are annotated.
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2
3. PacifCorp Offcers and Directors with Affliated Positions as of December 31, 2010
Abel, Gregory E.
Business Entity
American Pacific Finance Company
American Pacific Finance Company II
CalEnergy Capital Trut
CalEnergy Capital Trust II
CalEnergy Capital Trust IV
CalEnergy Capital Trust V
CalEnergy Company, Inc.
CalEnergy Holdings, Inc.
CalEnergy Pacific Holdings Corp.
CalEnergy Resources Limited
CalEnergy U.K. Inc.
CE Administrative Services, Inc.
CE Casecnan Ltd.
CE Casecnan Ltd.
CE Electrc UK Funding Company
CE Electric UK Holdings
CE Electrc UK Holdings
CE Electrc UK Limited
CE Electrc, Inc.
CE Exploration Company
CE Geothermal, LLC
CE Indonesia Geothermal, Inc.
CE International Investments, Inc.
CE Power, Inc.
CE Power, LLC
CE Resource, LLC
CE/TALLC
Constellation Energy Holdings LLC
Cordova Funding Corporation
HomeServices of America, Inc.
Kern River Gas Transmission Company
KR Acquisition 1, LLC
KR Acquisition 2, LLC
KR Holding, LLC
Magma Netherlands B. V.
MEHC Investment, Inc.
MHCInc.
MHCInc.
MidAerican Energy Foundation
MidAmerican Energy Foundation
MidAerican Energy Holdings Company
MidAerican Energy Holdings Company
MidAerican Energy Machining Services LLC
MidAerican Funding, LLC
MidAerican Nuclear Energy Holdings
Company, LLC
NNGC Acquisition, LLC
Norming Investments B.V.
Nortern Aurora, Inc.
Nortern Electrc Finance pIc.
Northern Electrc pIc.
Northern Natul Gas Company
Title
President
President
Trustee
Trustee
Trustee
Trustee
President
President
President
Director
President
President
Chairman, President & Chief Executive Officer
Director
Director
Chief Executive Offcer
Director
Director
President
President
President
President
President
President
President
President
President
President
President
Director
Executive Committee Member
President
President
President
Director
President
President
Director
President
Director
President & Chief Executive Offcer
Director
President
President
Chairan & Chief Executive Offcer
President
Chairman, President & Chief Executive Offcer
President
Director
Director
Director
Abel, Gregory E. (continued)
Business Entity
PPW Holdings LLC
Quad Cities Energy Company
Salton Sea Minerals Corp.
Visayas Geothermal Power Company
Yorkshire Cayman Holding Limted
Yorkshire Power Finance Limted
Anderson, Douglas L.
Business Entity
American Pacific Finance Company
American Pacific Finance Company II
BG Energy Holding LLC
BG Energy LLC
CalEnergy Capital Trust VI
CalEnergy Company, Inc.
CalEnergy Generation Operating Company
CalEnergy Holdings, Inc.
CalEnergy International Ltd.
CalEnergy International Ltd.
CalEnergy International Services, Inc.
CalEnergy International, Inc.
CalEnergy Pacific Holdings Corp.
CalEnergy U.K. Inc.
CBEC Railway Inc.
CE Admnistrative Services, Inc.
CE Asia Limited
CE Asia Limited
CE Casecnan II, Inc.
CE Casecnan Ltd.
CE Casecnan Ltd.
CE Casecnan Water and Energy Company, Inc.
CE Casecnan Water and Energy Company, Inc.
CE Cebu Geothermal Power Company, Inc.
CE Cebu Geothermal Power Company, Inc.
CE Electrc (N, Inc.
CE Electrc UK Funding Company
CE Electric UK Holdings
CE Electrc UK Limited
CE Electrc, Inc.
CE Exploration Company
CE Geothermal, Inc.
CE Indonesia Geothermal, Inc.
CE International (Bermuda) Limited
CE International (Bermuda) Limited
CE International Investments, Inc.
CE Luzon Geothermal Power Company, Inc.
CE Luzon Geothermal Power Company, Inc.
CE Mahanagdong II, Inc.
CE Mahanagdong Ltd.
CE Mahanagdong Ltd.
CE Philippines II, Inc.
CE Philippines Ltd.
CE Philippines Ltd.
Title
President
President
President
Chairan & Chief Executive Offcer
Dirtor
Director
Title
Director
Director
Director
Director
Trustee
Director
Director
Director
President & Assistant Secreta
Director
Director
Director
Director
Director
Director
Director
President & Assistat Secreta
Director
Director
Senior Vice President, General Counsel & Assistant
Secretary
Director
Chairman
Director
Senior Vice President & General Counsel
Director
Director
Director
Director
Director
Director
Director
Director
Director
President & Assistant Secreta
Director
Director
Senior Vice President & General Counsel
Director
Senior Vice President
President & Assistat Secretar
Director
Senior Vice President
President & Assistat Secreta
Director
Anderson, Douglas L. (continued)
Business Entity
CE Power, Inc.
Cimed Leasing Company
Cordova Funding Corporation
Dakota Dunes Development Company
DCCOInc.
HomeServices of America, Inc.
Kern River Funding Corporation
Kern River Gas Transmission Company
KR Acquisition 1, LLC
KR Acquisition 2, LLC
KR Holding, LLC
M & M Ranch Holding Company, LLC
Magm Netherlands B.V.
Magma Netherlands B.V.
MEC Constrction Services Co.
MEHC Investment, Inc.
MEHC Investment, Inc.
MEHC Merger Sub Inc.
MHCInc.
MHCInc.
MHC Investment Company
MidAerican Energy Holdings Company
MidAerican Nuclear Energy Company, LLC
MidAerican Nuclear Energy Holdings
Company, LLC
Midwest Capital Group, Inc.
MW Capital Inc.
Normng Investments B.V.
Northern Aurora, Inc.
Nortern Natul Gas Company
Ormoc Cebu Ltd.
Ormoc Cebu Ltd.
PacifiCorp Environmental Remediation Company
Quad Cities Energy Company
Tongonan Power Investment, Inc.
Tongonan Power Investment, Inc.
Two Rivers Inc.
Visayas Geothermal Power Company
Dunn, Micheal G.
Business Entity
Centralia Mining Company
Centrlia Mining Company
Energy West Mining Company
Energy West Mining Company
Glenrock Coal Company
Glenrock Coal Company
Interwest Mining Company
Interwest Mining Company
Pacific Minerals, Inc.
Pacific Minerals, Inc.
Title
Director
Director
Director
Director
Director
Director
Director
Executive Committee Member
Vice President & Secretary
Vice President & Secreta
Vice President & Secretar
Director
Senior Vice President
Director
Director
Senior Vice President
Director
Corporate Secretary
Senior Vice President, General Counsel & Assistant
Secretary
Director
Director
Senior Vice President, General Counsel & Corporate
Secretary
Director
Director
Director
Director
Senior Vice President & General Counsel
Director
Director
President & Assistat Secreta
Director
Director
Director
Chairman, Senior Vice President & General Counsel
Director
Director
Senior Vice President, General Counsel & Assistant
Secretary
Title
President
Director
President
Director
President
Director
President
Director
President
Director
Gale, Brent E.
Business Entity
MidAerican Energy Holdigs Company
Goodman, Patrick J.
Business Entity
American Pacific Finance Company
American Pacific Finance Company II
BG Energy Holding LLC
BG Energy LLC
CalEnergy Capital Trust
CalEnergy Capital Trust II
CalEnergy Capital Trust IV
CalEnergy Capital Trust V
CalEnergy Capital Trut VI
CalEnergy Company, Inc.
CalEnergy Generation Operatig Company
CalEnergy Holdings, Inc.
CalEnergy International Ltd.
CalEnergy International Ltd.
CalEnergy International Services, Inc.
CalEnergy International, Inc.
CalEnergy Pacific Holdigs Corp.
CalEnergy U.K. Inc.
CE Administrtive Services, Inc.
CE Asia Limted
CE Asia Limited
CE Casecnan II, Inc.
CE Casecnan Ltd.
CE Casecnan Ltd.
CE Casecnan Water and Energy Company, Inc.
CE Casecnan Water and Energy Company, Inc.
CE Cebu Geothermal Power Company, Inc.
CE Cebu Geothermal Power Company, Inc.
CE Electrc (N), Inc.
CE Electrc UK Funding Company
CE Electrc UK Holdings
CE Electrc UK Limited
CE Electric, Inc.
CE Exploration Company
CE Geothermal, Inc.
CE Indonesia Geothermal, Inc.
CE International (Bermuda) Limited
CE International (Bermuda) Limited
CE International Investments, Inc.
CE Luzon Geothermal Power Company, Inc.
CE Luzon Geotherml Power Company, Inc.
CE Mahanagdong II, Inc.
CE Mahanagdong Ltd.
CE Mahanagdong Ltd.
CE Philippines II, Inc.
CE Philppines Ltd.
CE Philippines Ltd.
CE Power, Inc.
HomeServices of America, Inc.
HomeServices of America, Inc.
Title
Senior Vice President
Title
Director
Director
Director
Director
Trutee
Trutee
Trutee
Trutee
Trutee
Director
Director
Director
Senior Vice President & Chief Financial Offcer
Director
Director
Director
Director
Dirctor
Director
Senior Vice President & Chief Financial Offcer
Director
Director
Senior Vice President & Chief Financial Offcer
Director
Senior Vice President & Chief Financial Offcer
Director
Senior Vice President & Chief Financial Offcer
Director
Director
Director
Director
Director
Director
Director
Director
Director
Senior Vice President & Chief Financial Offcer
Director
Director
Senior Vice President & Chief Financial Offcer
Director
Senior Vice President & Chief Financial Offcer
Senior Vice President & Chief Financial Offcer
Director
Senior Vice President & Chief Financial Offcer
Senior Vice President & Chief Financial Offcer
Director
Director
Finance Committee Member
Director
Goodman, Patrick J. (continued)
Business Entity
Kern River Funding Corporation
Kern River Gas Transmission Company
KR Acquisition 1, LLC
KR Acquisition 2, LLC
KR Holding, LLC
M & M Ranch Holding Company, LLC
Magma Netherlands B.V.
Magma Netherlands B.V.
MEHC Insurance Services Ltd.
MEHC Insurance Services Ltd.
MEHC Investment, Inc.
MEHC Investment, Inc.
MEHC Merger Sub Inc.
MidAerican Energy Holdings Company
MidAerican Nuclear Energy Company, LLC
MidAerican Nuclear Energy Holdings
Company, LLC
Normng Investments B.V.
Northern Aurora, Inc.
Nortern Electrc pIc.
Nortern Natual Gas Company
Ormoc Cebu Ltd.
Ormoc Cebu Ltd.
RoyH. Long Realty Company, Inc.
Tongonan Power Investment, Inc.
Tongonan Power Investment, Inc.
Visayas Geothermal Power Company
Yorkshire Cayman Holding Limited
Yorkshire Electrcity Group pIc
Yorkshire Power Finance Limited
Yorkshire Power Group Limited
Moench, Mark C.
Business Entity
PacifiCorp Foundation
PacifiCorp Investment Management, Inc.
Reiten, R. Patrick
Business Entity
PacifiCorp Foundation
Walje, A. Richard
Business Entity
PacifiCorp Foundation
Title
Director
Executive Commtte Member
Vice President, Treasurer & Assistant Secreta
Vice President, Treasurer & Assistat Secretar
Vice President & Treasurer
Director
Senior Vice President
Director
President & Treasurer
Director
Vice President, Chief Financial Offcer & Treasurer
Director
Senior Vice President
Senior Vice President & Chief Financial Offcer
Director
Director
Senior Vice President & Chief Financial Officer
Director
Director
Director
Senior Vice President & Chief Financial Offcer
Director
Chief Operating Offcer
Senior Vice President & Chief Financial Offcer
Director
Senior Vice President & Chief Financial Officer
Director
Director
Director
Director
Title
Secretary
Secretar
Title
Director
Title
Chairman
I. B. Changes in Ownership
Changes in successive ownership between the regulated utity and affilated interest.
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I. C. AffIliate Descriptions
A narrative description of each affliated entity with which the regulated utility does business. State
the factor(s) giving rise to the affliation.
Narrative Descriptions for Each Affliated Entity
Affiliated interests of PacifiCorp are defmed by Oregon Revised Statutes 757.015, Revised Code of
Washington 80.16.010 and California Public Utilities Commission Decision 97-12-088, as amended by
Decision 98-08-035, as having two or more offcers or directors in common with PacifiCorp, or by meetig
the ownership requirements of 5% direct or indirect ownership.
In the ordinary course of business, PacifiCorp engaged in varous transactions with several of its affliated
companies durg the year ended December 31, 2010. Servces provided by PacifiCorp and charged to
affiliates related primarly to admnistrative services, financial statement preparation and direct-assigned
employees. Services provided by affliates and charged to PacifiCorp related priarily to the transporttion
of natual gas and coal, financial services, captive insurance services, relocation services, and
admistrative services provided under the Intercompany Admnistrative Services Agreement ("IASA")
among MEHC and its affliates. Refer to Section V for a discussion of the ta allocation agreement
between PacifiCorp and its affliates.
Although PacifiCorp provides electrcity to certin affliates within its service terrtory, such transactions
are excluded from this report as they are biled at taff rates. Due to the volume and breadth of the
Berkshire Hathaway family of companies, it is possible that employees of PacifiCorp have made purchases
from certin Berkshire Hathaway affliates not listed here, and have been reimbursed by PacifiCorp for
those purchases as a valid business expense. PacifiCorp does not believe those transactions would be
material individually or in aggregate.
BNSF Railway Company ("BNSF") - In Febru 2010, BNSF became an indirect wholly owned
subsidiar of Berkshire Hathaway. BNSF operates one of the largest railroad networks in North America.
PacifiCorp has long-term coal transporttion contracts with BNSF, includig indirectly through a
generating facility that is jointly owned by PacifiCorp and another utility, as well as right-of-way
agreements.
Marmon Holdings, Inc. ("Marmon") - At December 31, 2010, Berkshire Hathaway held a 63.6%
ownership interest in Marmon. Maron is an international association of numerous manufactug and
service businesses in energy-related and other markets. Certain Maron affiliates provide materials and
equipment pars and repairs to PacifiCorp in the normal course of business.
Wells Fargo & Company ("Wells Fargo") - At December 31, 2010, Berkshire Hathaway held a 7.0%
ownership interest in Wells Fargo. Wells Fargo is a financial services company providing bankg,
insurance, investments, mortgage banking, investment bang, retail banking, brokerage and consumer
fiance to consumers, businesses and institutions. Wells Fargo provides PacifiCorp varous financial
services, including commodity swaps and bang services.
Nalco Holding Company ("Nalco") - At December 31, 2009, Berkshire Hathaway held a 6.5% ownership
interest in Na1co. Durg the four quaer of 2010, Berkshire Hathaway sold all of its shares of Na1co's
common stock, at which point Na1co ceased being an affliate of PacifiCorp. This report reflects
transactions between PacifiCorp and Na1co for the entire year ended December 31,2010. Na1co is engaged
in the worldwide manufactue and sale. of highly specialized service chemical programs. This includes
production and service related to the sale and application of chemicals and technology used in water
treatment, pollution control, energy conservation, oil production and refining, steelmakng, papermg,
mining, and other industral processes. Na1co provides water treatment services for PacifiCorp.
Cable ONE - Cable ONE is a wholly owned subsidiar of The Washington Post Company. At January 2,
2011, Berkshire Hathaway held 1,727,765 of the 6,952,973 outstanding shares of Class B common stock of
The Washington Post Company. Puruant to an agreement, which has a termination date of Febru 24,
2017, Berkshire Hathaway has granted Donald Graham, Chairan of the Board and Chief Executive
Offcer of The Washington Post Company, a proxy to vote these Class B shares at his discretion. Class B
common stock elects thee of the ten directors on the board of directors; Class A common stock elects
seven of the ten directors. Durng 2010, Waren Buffet was on the Board of Directors of The Washington
Post Company. Cable ONE is an operator of cable systems including cable television, telephone and high-
speed internet service. Cable ONE provides PacifiCorp with cable internet-related services.
The Hartford Steam Boiler Inspecton and Insurance Company ("Hartord Steam Boiler") - At
December 31, 2010, Berkshire Hathaway held a 10.2% ownership interest in Munich Re, which indirectly
wholly owns Harford Steam Boiler. Harord Steam Boiler is a specialty insurer and reinsurer and also
provides inspection services and engineerig consulting. Harford Steam Boiler provides PacifiCorp with
transformer oil and gas analysis.
Moody's Investors Service ("Moody's") - At December 31, 2010, Berkshire Hathaway held a 12.1 %
ownership interest in Moody's Corporation, which wholly owns Moody's. Moody's provides credit ratigs
and research covering debt instrents and securties. Moody's provides PacifiCorp with credit rating
services.
MidAmerican Energy Holdings Company - a holding company owning subsidiares that are principally
engaged in energy businesses. MEHC is a consolidated subsidiar of Berkshire Hathaway. As of
Januar 31, 2011, Berkshire Hathaway owned approximately 89.9% of MEHC's common. stock. The
remainder ofMEHC's common stock is owned by a private investor group that includes Walter Scott, Jr.,o)
a director ofMEHC (5.6% ownership interest as of January 31, 2011) and Gregory E. Abel, PacifiCorp's
Chairan of the Board of Directors and Chief Executive Offcer (0.8% ownership interest as of January 31,
2011). MEHC and its subsidiaries provide management and administrative services to PacifiCorp pursuant
to the IASA which are biled to PacifiCorp as a management fee. PacifiCorp also provides management and
administrative services to MEHC and its subsidiares puruant to the IASA. Refer to Section VII for fuher
discussion.
(I) Excludes 2,778,000 shares held by family membe and family controlled trsts and corporations, or Scott Family
Interests, as to which Mr. Scott disclaims beneficial ownerhip.
HomeServices of America, Inc. ("HomeServces") - a majority-owned subsidiary of MEHC.
HomeServices is a full-service residential real estate brokerage firm that provides relocation services and
traditional residential real estate brokerage services to employees of PacifiCorp and its affliates.
PacifiCorp provides services to HomeServices pursuat to the IASA.
Kern River Gas Transmission Company ("Kern River") - an indiect wholly owned subsidiary of
MEHC, owns an interstate natual gas pipeline system that extends from supply areas in the Rocky
Mountains to consuming markets in Utah, Nevada and California. Kern River's pipeline system consists of
1,700 miles of natual gas pipelines. Kern River's transporttion operations are subject to a regulated taff
that is on fie with the Federal Energy Regulatory Commssion (the "FERC"). Kern River provides services
for the transportation of natul gas to certin of PacifiCorp's generatig facilities in Uta. PacifiCorp
provides services to Kern River pursuant to the IASA.
MEHC Insurance Services Ltd. ("MEISL") - a wholly owned subsidiary of MEHC that provides a
captive insurnce progr to PacifiCorp. MEISL covers all or significant portons of the propert damage
and liabilty insurce deductibles in many ofPacifiCorp's curent policies, as well as overhead distrbution
and trsmission line propert daage. Claims for distrbution and transmission line propert, after an
aggregate deductible of $5 milion, are capped at $10 milion per annual policy coverage period. Claims for
non-distrbution and transmission líne propert, after a $1.5 milion deductible, are capped at $6 milion per
occurence. Claims for general liability, after a $250,000 deductible, are capped at $750,000 per
occurence. PacifiCorp has no equity interest in MEISL and has no obligation to contrbute equity or loan
fuds to MEISL. Premium amounts were established in March 2006 based on a combination of actual
assessments and market rates to cover loss claims, adinistrative expenses and appropriate reserves, but as
a result of regulatory commtments were capped though December 31,2010. Certin costs associated with
the program are prepaid and amortized over the policy coverage period that expired March 20, 2011.
Coverage under the captive wil not be renewed.
MidAmerican Energy Company ("MEC") - an indiect wholly owned subsidiary of MEHC. MEC is
pricipally engaged in the business of generating, trnsmitting, distributing and selling electrcity and in
distributing, sellng and transportng natual gas. Additionally, MEC transports natual gas through its
distrbution system for a number of end-use customers who have independently secured their supply of
natual gas. In addition to retail sales and natual gas trnsporttion, MEC sells electrcity and natual gas to
other utilities, municipalities and energy maketing companies on a wholesale basis. MEC provides
admistrative services to PacifiCorp pursuant to the IASA as part of the MEHC management fee.
PacifiCorp provides services to MEC pursuant to the IASA.
Ca1Energy Generation Operating Company ("CaIEnergy Generation") - a wholly owned subsidiary of
MEHC. CalEnergy Generation is organized to manage and operate independent power projects in the
United States. CalEnergy Generation provides admnistrative services to PacifiCorp pursuant to the IASA
as par of the MEHC management fee. PacifiCorp provides services to CalEnergy Generation puruant to
the IASA.
Falcon Power Operating Company ("Falcon Power") - an indirect wholly owned subsidiary of CE
Generation, LLC, which is 50% owned by MEHe. CE Generation, LLC is engaged in the independent
power business and owns several facilities, including three natual gas-fied cogeneration facilities operated
by Falcon Power. One of Falcon Power's employees trnsferred to PacifiCorp durng the year ended
December 31, 2010.
Other MEHC subsidiaries - In addition to the entltles described above, MEHC's subsidiares
MidAerican Funding, LLC, MHC Inc. and CE Electrc UK Funding Company performed administrative
services for PacifiCorp pursuant to the IASA as par of the MEHC management fee. MidAerican
Funding, LLC, a wholly owned subsidiar of MEHC, is a holding company owning all of the outstanding
common stock of MHC Inc., which is a holding company owning all of the common stock of MEC. CE
Electrc UK Funding Company is an indirect wholly owned subsidiar of MEHC whose services include
the distrbution of electricity in Great Britain and the operation of an engineering contracting business.
PPW Holdings LLC - the holding company for PacifiCorp and direct subsidiar of MEHe. PPW
Holdings LLC remits income taxes to MEHC on behalf ofPacifiCorp.
PacifiCorp Foundation - an independent non-profit foundation created by PacifiCorp in 1988. PacifiCorp
Foundation support the growth and vitality of the communities where PacifiCorp and its affiiates have
operations, employees or interests. PacifiCorp Foundation operates as the Rocky Mountain Power
Foundation and the Pacific Power Foundation. PacifiCorp provides administrative services to the
PacifiCorp Foundation.
Energy West Mining Company - a wholly owned subsidiar of PacifiCorp that mines coal from
PacifiCorp-owned mines in Emery County, Utah to supply PacifiCorp's Huntington, Hunter and Carbon
generating facilities. PacifiCorp provides admnistrative services to Energy West Mining Company.
Interwest Mining Company - a wholly owned subsidiar ofPacifiCorp providing technical, management
and admistrative services to Energy West Mining Company, Pacific Minerals, Inc. and PacifiCorp.
Interwest Mining Company charges a management fee to Energy West Mining Company and Pacific
Minerals, Inc. that is intended to compensate it, without profit, for its cost of managing these entities.
PacifiCorp provides administrative services to Interwest Mining Company.
PacifCorp Environmental Remediation Company ("PERCo") - a wholly owned subsidiar of
PacifiCorp that evaluates, manages and resolves certain environmental remediation activities on behalf of
PacifiCorp utilizing PacifiCorp's employees.
Pacifc Minerals, Inc. ("PMI") - a wholly owned subsidiar of PacifiCorp that owns 66.67% of Bridger
Coal Company, the coal mining joint ventue with Idaho Energy Resources Company ("IERC"), a
subsidiar ofIdaho Power Company. PMI is the entity that employs the individuals that work for Bridger
Coal Company.
Bridger Coal Company ("Bridger Coal") - Coal miing joint ventue between PMI and JERC. PMI
owns 66.67% and IERC owns 33.33% of Bridger CoaL. Bridger Coal provides coal from the Bridger mine
to the Jim Bridger generatig facility. PacifiCorp provides adnistrtive services to Bridger CoaL.
Trapper Mining Inc. - PacifiCorp own a 21.40% interest in Trapper Ming Inc., which operates a coal
mine at the Craig "mine-mouth" operation (generatig station located next to mine) outside Craig,
Colorado. The remaining ownership in Trapper Ming Inc. is as follows: Salt River Project Agricultual
Improvement and Power Distrct (32.10%), Tri-State Generation and Transmission Association, Inc.
(26.57%) and Platte River Power Authority (19.93%). Two ofPacifiCorp's employees serve on the Trapper
Mining Inc. board of directors. PacifiCorp is compensated for this service.
Huntington Cleveland Irrigation Company ("HCIC") is a non-profit mutual irrgation company, which
is a privately owned water stock company. PacifiCorp holds approximately 34% of its water shares.
PacifiCorp pays annual assessment fees to HCIC to help cover its operating and maintenance costs, in
exchange for receiving access to water used by PacifiCorp's Huntington generating facility. PacifiCorp also
made capital investments in HCIC though December 31, 2010 to ensure a long-term, firm water supply for
its Huntington generating facility.
Ferron Canal & Reservoir Company ("FC&RC") is a non-profit mutual irrgation company, which is a
privately owned water stock company. PacifiCorp holds approximately 37% of the outstanding stock in
FC&RC. PacifiCorp pays anual assessment fees to FC&RC to help cover its operating and maintenance
costs, in exchange for receiving access to water used by PacifiCorp's Hunter generating facility.
PacifiCorp also contrts additional water from FC&RC, which is made available to the Hunter generating
facility through a long-term agreement between FC&RC and PacifiCorp. The agreement calls for
PacifiCorp to make an annual payment to FC&RC and in retu, FC&RC provides PacifiCorp up to 7,000
acre-feet of water.
I. D. Financial Statements
Financial statements or trial balances for the year ended December 31,2010 are inclnded in Section
II. Transactions.
II. Transactions
The following summary of services rendered by the regulated utility to the affilate and vice versa
includes:
1. A description of the nature of the transactions.
2. The basis used to determine pricing.
3. In total, for each affilated entity whether receiving or providing services:
A. Total charges or bilngs.
B. The cost of providing servce.
C. The margin of charges over costs.
D. Assets allocable to the services.
E. The overall rate of return on assets.
4. Commission order(s) approving transaction where such approval is required by
law.
Affilated Interest Transactions Summary
For the Year Ended December 31, 2010
Requirements BNSF Railway Company Marmon Holdings, Inc.Wells Fargo & Company
i. A description of the natu ofthe
trsactions:(a)(a)(a)
2. The basis used to determine pricing:
PacifiCorp Received Services (b)(c)(d)
PacifiCorp Provided Servces None None None
3. In tota for each affliated entity whether
receiving or providing services:
Receiving Servces:
A. Total chares or billings $29,905,732 $29,390 $28,815,677
B. The cost of providing servce (b)(c)(d)
C. The margin of charges over costs (b)(c)(d)
D. Assets allocable to the servces (b)(c)(d)
E. The overll rate of retu on assets (b)(c)(d)
Providing Servces:
A. Total charges or billings N/A N/A N/A
B. The cost of providing service N/A N/A N/A
C. The margin of chares over costs N/A N/A N/A
D. Assets allocable to the services N/A N/A N/A
E. The overll rate of retu on assets N/A N/A N/A
4. Commssion orders) approving
traction where such approval is requied (e)(e)(e)bylaw:
(a) Detailed financial informtion for each affliated company is included following this summary. Also refer to Section I.C. Affliate Descriptions for a
general discussion of the services provided by and/or to each affliate.
(b) Coal transportation servces are priced at Surace Transporttion Board-approved taff rates unde long-term contrcts. Right-of-way fees are based
on factors such as square footage.
(c) Transactions with Marmon Holdings, Inc. affliates are prvided to PacifiCorp in the norml coure of business, at stadad pricing.
(d) Wells Fargo & Company provides financial serices to PacifiCorp in the normal course of business at stadard pricing.
(e) Refer to Appendix A for a discussion of commission orders approving tractions with affliates.
Affliated Interest Transactions Summary
For the Year Ended December 31, 2010
The Harord Steam Boiler
Requirements Nalco Holding Company Cable ONE Inspection and Insurnce
Company
i. A description of the natue of the
trsactions:(a)(a)(a)
2. The basis used to deteine pricing:
PacifiCor Received Servces (b)(c)(d)
PacifiCorp Provided Serices None None None
3. In total for each affliated entity whether
reeiving or providing services:
Receiving Serices:
A. Total charges or billngs $3,225,464 $4,106 $21,425
B. The cost of providing servce (b)(c)(d)
C. The magi of charges over costs (b)(c)(d)D. Assets al10cable to the services (b)(c)(d)
E. The overal1 rate of retu on assets (b)(c)(d)
Providing Seces:
A. Total charges or bilings N/A N/A N/A
B. The cost of providing service N/A N/A .N/A
C. The margin of charges over costs N/A N/A N/A
D. Assets al10cable to the services N/A N/A N/A
E. The overl1 rate of retu on asets N/A N/A N/A
4. Commssion orders) approving
trsaction where such approval is requited (e)bylaw:
(a) Detailed financial informtion for each affliated company is included fol1owing this summai. Also refer to Section I.C. Affliate
Descrptions for a general discussion of the services provided by and/or to each affliate.
(b) Nalco Holding Company provides goods and serces to PacifiCorp in the normal coure of business at standad pricing.
(c) Cable ONE provides goods and serices to PacifiCorp in the norm coure of business at stada pricing.
(d) The Harord Stea Boiler Inspection and Insurce Company provides serces to PacifiCorp in the normal coure of business at stadad
pricing.
(e) Refer to Appendix A for a discussion of commssion orde approving trsations with affliates.
Affilated Interest Transactions Summary
For the Year Ended December 31, 2010
Requirements Moody's Investors Servce MidAercan Energy Holdings HomeServces of America, Inc.Company
i. A descrption of the natue of thetrctions:(a)(a)(a)
.
2. The basis used to determine pricing:
PacifiCorp Received Services (b)(c)(d)
PacifiCorp Provided Services None (c)Serces were performed puruant
to the IASA. Direct charges are
calculated as descrbed in Arcle
4(a)(i) of the attached IASA.
3. In total for each affliated entity whether
receiving or providig services:
Receiving Services:
A. Total charges or bilings $178,040 $9,000,000 $2,053,556
B. The cost of providing servce (b)$9,000,000 (d)C. The margin of charges over costs (b)None (d)D. Assets allocable to the servces (b)None (d)
E. The overll rate of retu on assets (b)None (d)
Providing Services:
A. Total charges or bilings N/A $1,218,262 $4,723
B. The cost of providing servce N/A $1,218,262 $4,723
C. The margin of charges over costs N/A None None
D. Assets allocable to the servces N/A None None
E. The overll rate of retu on assets N/A None None
4. Commssion order(s) approving
trsaction where such approval is requied (e)(e)bylaw:
(a) Detailed financial information for each affliated company is included following this sumar. Also refer to Section I.C. Affliate
Descriptions for a general discussion of the services provided by and/or to each affliate.
(b) Moody's Investors Service provides servces to PacifiCorp in the normal coure of business at standa pricing.
(c) Services were performed puruant to the IASA. Direct charges are calculated as descrbed in Aricle 4(a)(i) of the atthed IASA. Refer to
Section VII for discussion of amounts that were based on allocation factors. Also refer to Section VII for discussion of the $9,000,000 cap
on charges from MEHC, which expired March 20, 201 i.
(d) HomeServces of America, Inc. charges PacifiCorp a flat fee per relocation for its serices, plus the actul costs of serces procured from
its vendors and service providers.
( e) Refer to Appendi A for a discussion of commission orders approving trsactions with affliates.
Affliated Interest Transactions Summary
For the Year Ended December 31,2010
Requiments Kern River Gas Tranmission MEHC Insurce Servces Ltd.MidAmencan Energy CompanyCompany
I. A descnption of the natue of the
trsactions:(a)(a)(a)
2. The basis used to deterine pncing:
PacifiCorp Received Services (b)Prum amounts wer (c)
established based on a
combination of actual
assessments and maret rates to
cover loss claims, adistrtive
expenes and appropnate reseres
but as a result of regulatory
commitments were capped
though Decembe 31, 2010.
PacifiCorp Provided Serices Serices were perormed puruat None Servces were perormed puruant
to the IASA. Direct charges are to the IASA. Direct charges are
calculated as descrbed in Aricle calculated as descnbed in Arcle
4(a)(i) of the attched IASA.4(a)(i) of the atthed IASA.
3. In tota for each affliated entity whether
reeiving or providing servces:
Receiving Services:
A. Total chages or bilings $3,308,627 $6,969,001 (c)
B. The cost of providing service (b)Refer to financial staements (c)
C. The margi of charges over costs (b)Refer to financial statements None
D. Assets allocable to the serices (b)None None
E. The overll rate of retu on assets (b)None None
Providing Serices:
A. Total charges or billings $34,660 N/A $149,837
B. The cost of providig servce $34,660 N/A $149,837
C. The marn of charges over costs None N/A None
D. Assets allocable to the servces None N/A None
E. The overll rate of retu on assets None N/A None
4. Commssion orders) approving
trsacon where such approval is required (d)(d)(d)
bylaw:
(a) Detailed fiancial informtion for each affliated company is included following this sumary. Also refer to Section I.C. Affliate
Descptions for a general discussion of the services provided by and/or to each affliate.
(b) Gas trsporttion serices are pnced at tariffs established by the PERC.
(c) MEC provided services to PacifiCorp puruat to the IASA that were included in MEHC's management fee. Refer to the MEHC column
within this Affliated Interest Tranactions Summar for a discussion of the basis used to determne pricing. Refer to the MEHC detailed
page following this summar for the amount of serces provided by MEC puruant to that agrement.
(d) Refer to Appendix A for a discussion of commssion order approving trsactions with affliates.
Affilated Interest Transactions Summary
For the Year Ended December 31, 2010
Requirements CalEnergy Generation Operating PPW Holdings LLC PacifiCorp Foundation
Company
1. A descrption of the natue of the
tractions:(a)(a)(a)
2. The basis used to detere pricing:
PacifiCorp Received Servces (b)None (c)None
PacifiCorp Provided Services Serices were performed puruant None (c)Costs incurred by PacifiCorp on
to the IASA. Direct charges are behalf of affliates are chared at
calculated as descrbed in Aricle direct cost. Labor is charged at
4( a)( i) of the atthed IASA.PacifiCorp's fully loaed cost plus
adstrtive and genera
expense.
3. In total for eah affliated entity whether
receiving or providing serces:
Receiving Serices:
A. Total charges or bilings (b)None (c)N/A
B. The cost of providing serice (b)None (c)N/A
C. The margin of charges over costs None N/A N/A
D. Assets allocable to the services None N/A N/A
E. The overll rate of retu on assets None N/A N/A
Providing Services:
A. Total charges or bilings $143,963 None (c)$197,008
B. The cost of providig service $143,963 None (c)$197,008
C. The margin of charges over costs None N/A None
D. Assets allocable to the servces None N/A None
E. The overall rate of retu on assets None N/A None
4. Commssion orders) approving
trsaction where such approval is required (d)(d)(d)bylaw:
(a) Detailed financial information for each affiliated company is included following this summary. Also refer to Section I.C. Affliate
Descriptions for a general discussion of the servces provided by and/or to each affliate.
(b) CalEnergy Generation provided servces to PacifiCorp pursuant to the IASA that were included in MEHC's management fee. Refer to theMEHC colum within ths Affliated Interest Traactions Summar for a discussion of the basis used to deterne pricing. Refer to the
MEHC detaled page following this sumar for the amount of services provided by CalEnergy Generation puruat to that agreement.
(c) Refer to Section V for a discussion of income-ta related trsactions between PacifiCorp and PPW Holdings LLC.
(d) Refer to Appendix A for a discussion of commssion orders approving trsactions with affliates.
Afilated Interest Transactions Summary
For the Year Ended December 31, 2010
Requirements Energ West Mining Company Interest Minng Company PacifiCorp Envinmental
Remedation Company
1. A descrption of the natue of the
tractions:(a)(a)(a)
2. The basis used to detene pricing:
PacifiCorp Received Servces Charges ar bas on costs Inteest Minng Company None
incu to extr co frm chaes ar based on labor,
PacfiCor-owned coal reseres.beefits and opetional cost. No
PacifiCorp own title to the asts prfit is allowedused in the mig proes. No
profit is allowed.
PacifiCorp Provided Serces Costs incurd by PacifiCorp on Costs incurred by PacifiCorp on
behalf of subsidiares are chared behalf of subsidiaries ar charged
Costs incurr by PacifiCorp on at direct cost. Labor is chared at at direct cost. Labor is charged at
behalf of subsidiares are charged PacifiCorp's fuly loaded cost plus PacifiCorp's fully loaded cost plus
at direct cost. Labor is chaged at adnistrtive and generl admistrtive and general
PacifiCorp's fully loaded cost plus expense.expense.
admnistrtive and general
expense.
3. In tota for each affliated entity whether
reeiving or providing services:
Receiving Serces:
A. Total charges or bilings $102,447,458 $54,002 N/A
B. The cost of providing servce $102,447,458 $54,002 N/A
C. The margin of charges over costs None None N/A
D. Assets allocable to the serices None None N/A
E. The overall rae of retu on assets None None N/A
Providing Serces:
A. Total charges or billngs $595,528 $568,032 $218,575
B. The cost of providig service $595,528 $568,032 $218,575
C. The margin of charges over costs None None None
D. Assets allocable to the services None None None
E. The overll rate of retu on assets None None None
4. Commssion order(s) approving
trsation where such approval is reuied (b)(b)(b)bylaw:
(a) Detailed financial information for each affliated company is included following this sui. Also refer to Section I.C. Affliate
Descrptions for a general discussion of the servces provided by and/or to each affliate.
(b) Refer to Appendix A for a discussion of commssion order approving trsactions with affliates.
Affiiated Interest Transactions Summary
For the Year Ended December 31,2010
Requirements Pacific Minerls, Inc.Bridger Coal Company Trapper Minig Inc.
i. A descrption of the natu of thetrsations:(a)(a)(a)
2. The basis used to determne pricing:
PacifiCorp Received Servces None (b)Coal delivered is recorded on Coal delivered is recorde on
PacifiCorp's books at the afliate's PacifiCorp's books at the afliate's
cost.cost.
PacifiCorp Provided Services None (b)Costs incurred by PacifiCorp on (c)
behalf of affliates are charged at
diret cost. Labor is charged at
PacifiCorp's fully loaded cost pius
adnistrtive and general expense.
3. In total for each affliated entity whether
receiving or providing services:
Reciving Servces:
A. Total charges or bilings None (b)$ i 28,804,025 $12,420,218
B. The cost of providing servce None (b)$128,804,025 $12,420,218
C. The margin of charges over costs N/A None None
D. Assets allocable to the services N/A None None
E. The overall rate of return on assets N/A None None
Providing Services:
A. Total charges or bilings None (b)$2,171,471 $3,794
B. The cost of providing serice None (b)$2,171,471 (c)
C. The margin of charges over costs N/A None (c)
D. Assets allocable to the services N/A None (c)E. The overall rate of retu on assets N/A None (c)
4. Commssion orders) approving
transaction where such approval is required (d)(d)(d)bylaw:
(a) Detaled financial informtion for eah affliated company is included following ths sumary. Also refer to Section I.C. Affliate
Descriptions for a general discussion ofthe servces provided by and/or to each affliate.
(b) Refer to Section II for fuer information regarding loans and associated interest between PacifiCorp and PMI.
(c) Charges ar based on a flat fee of $500 per board meeting plus actual out-of-pocket expenses incured.
(d) Refer to Appendix A for a discussion of commission order approving trnsactions with affliates.
Affliated Interest Transactions Summary
For the Year Ended December 31,2010
Requirements Huntington Cleveland Irgation Fern Canal & Reseroir Company
Company
i. A descnption of the natue of the
transactions:(a)(a)
2. The basis used to detene pricing:
PacifiCorp Received Serices Under secon 501(c)12 of the Under setion 501(c)12 of the
Interal Revenue Cod, HCIC Interal Revenue Code, FC&RC
opertes at cot.operaes at cost.
None None
PacifiCorp Provided Servces
3. In total for each affliated entity whether
reiving or providig servces:
Receiving Servces:
A. Total charges or bilings $103,169 $616,072
B. The cost of providing servce $103,169 $616,072
e. The magin of charges over costs None None
D. Assets allocable to the services None None
E. The overll rate of return on assets None None
Providing Services:
A. Total charges or bilings N/A N/A
B. The cost of providing serice N/A N/A
e. The margin of charges over costs N/A N/A
D. Assets allocable to the services N/A N/A
E. The overll rate of retu on assets N/A N/A
4. Comission orders) approving
trsaction where such approval is requird (b)(b)bylaw:
(a) Detailed fianial information for eah affliated company is included following this sumaiy. Also refer to Section i.e. Affliate
Descriptions for a general discussion of the serices provided by and/or to each affliate.
(b) Refer to Appendix A for a discussion of commssion order approving trsactions with affliates.
"CCl"C.;¡
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~
BNSF Railway Company and Subsidianes
Consolidated Statements of Income
In milions
Successr Predecessor
February 13-January 1-Year ended Year ended
December 31,February 12,December 31,December 31,
2010 2010 2009 2008
Revenues $14,835 $1,768 $13,88 $17,787
Operating expenses:
Compensation and benefits 3,54 439 3,458 3,859
Fuel 2,687 329 2,372 4,640
Purchased services 1,787 211 1,859 2,074
Depreciation and amortzation 1,531 192 1,534 1,395
Equipment rents 670 97 777 901
Materials and other 652 1 640 1,022
Total operating expenses 10,871 1,269 10,640 13,891
Operating income 3,964 499 3,208 3,896
Interest expense 72 16 124 97
Interest income, related parties (15)(1)(3)(19)
Other expense, net 8 2 6 18
Income before income taxes 3,899 482 3,081 3,800
Income tax expense 1,517 200 1,067 1,438
Net income $2,382 $282 $2,014 $2,362
See accompanying Notes to Consolidated Financial Sttements.
17
BNSF Railway Company and Subsidiaries
Consolidated Balance Sheets
Dollars in millons
Successor Predecssor
December 31,December 31,
2010 2009
Assets
Current assets:
Cash and cash equivalents $10 $20
Accounts receivable, net 1,031 810
Materials and supplies 652 632
Current portion of deferred income taxes 309 282
Other current assets 272 375
Total current assets 2,274 2,119
Propert and equipment, net of accumulated depreciation of $659 and $10,731, respectively 45,473 32,278
Goodwil 14,803
Intangible assets, net 1,732
Other assets 2,574 3,193
Total assets $66,856 $37,590
Liabilties lind Stockholder's Equity
Current liabilties:
Accunts payable and other current liabilties $2,831 $2,548
Long-term debt due within one year 299 335
Total current liabilties 3,130 2,883
Deferred income taxes 14,553 9,360
Long-tenn debt 2,096 2,118
Intangible liabilties, net 1,790
Casualty and environmental liabilties 938 899
Pension and retiree health and welfare liabilty 490 783
Other liabilties 849 1,799
Total liabilties 23,846 17,842
Commitments and contingencies (see Notes 4, 11 and 12)
Stockholder's equity:
Common stock, $1 par value, 1,000 shares authorized;
issued and outstanding and paid-in-capital 42,920 6,331
Retained earnings 2,382 14,866
Intercompany notes receivable (2,319)(948)
Accumulated other comprehensive income (loss)27 (501)
Total stockholder's equity 43,010 19,748
Total liabilties and stockholder's equity $66,856 $37,590
See accompanying Notes to Consolidated Financial Sttements.
18
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Wells Fargo & Company and Subsidiares
Consolidated Statement of Income
$
Year ended December 31,
2010 2009 2008
1,098 918 177
9,666 11,319 5,287
1,736 1,930 1,573
101 183 48
39,760 41,589 27,632
435 335 181
52,796 56,274 34,898
2,832 3,774 4,521
92 222 1,478
4,888 5,782 3,756
227 172
8,039 9,950 9,755
44,757 46,324 25,143
15,753 21,668 15,979
29,004 24,656 9,164
4,916 5,741 3,190
10,934 9,735 2,924
3,652 3,683 2,336
3,990 3,804 2,097
9,737 12,028 2,525
2,126 2,126 1,830
1,648 2,674 275
(324)(127)1,037
779 185 (757)
815 685 427
2,180 1,828 850
40,453 42,362 16,734
13,869 13,757 8,260
8,692 8,021 2,676
4,651 4,689 2,004
2,636 2,506 1,357
3,030 3,127 1,619
2,199 2,577 186
1,197 1,849 120
14,182 12,494 6,376
50,456 49,020 22,598
19,001 17,998 3,300
6,338 5,331 602
12,663 12,667 2,698
301 392 43
12,362 12,275 2,655
730 4,285 286
11,632 7,990 2,369
2.23 1.76 0.70
2.21 1.75 0.70
0.20 0.49 1.30
5,226.8 4,545.2 3,378.1
5,263.1 4,562.7 3,391.
(in millions, except per share amounts)
Interest income
Trading assets
Securities available for sale
Mortgages held for sale
Loans held for sa Ie
Loans
Other interest income
Total interest income
Interest expense
Deposits
Short-term borrowings
Long-term debt
Other interest expense
Total interest expense
Net interest income
Provision for credit losses
Net interest income after provision for credit losses
Noninterest income
Service charges on deposit accounts
Trust and investment fees
Card fees
Other fees
Mortgage banking
Insurance
Net gains from trading activities
Net gains (losses) on debt securities available for sale (1)
Net gains (losses) from equity investments (2)
Operating leases
Other
Total non interest income
Noninterest expense
Salaries
Commission and incentive compensation
Employee benefis
Equipment
Net occupancy
Core deposit and other intang ibles
FDIC and other deposit assessments
Other
Total non interest expense
Income before income tax expense
Income tax expense
Net income before noncontrollng interests
Less: Net income from noncontrollng interests
Wells Fargo net income
Less: Preferred stock dividends and accretion and other
Wells Fargo net income applicable to common stock
Per share information
Earnings per common share
Diluted earnings per common share
Dividends declared per common share
Average common shares outstanding
Diluted average common shares outstanding
(1) Includes other-than-temporary impairment (Om) losses of $672 million and $1,012 millon recognized in earnings ($500 milion and $2,352 milion of total om losses, netof $(172) millon and $1,340 millon recognized as an increase (decrease) to non-credit reated om losses recorded in other comprehensive income) for the year ended
December 31,2010 and 2009, respectively.
(2) lndudes om losses of $268 millon and $655 millon for the year ended Decber 31, 2010 and 2009, respecvely.
$
$
$
The accompanying notes ar an integra par of these statements.
104
Wells Fargo & Company and Subsidiaries
Consolidated Balce Sheet
Total assets (1)
December 31,
2010 2009
$16,044 27,080
80,637 40,885
51,414 43,039
172,654 172,710
51,763 39,094
1,290 5,733
757,267 782,770
(23,022)(24,516)
734,245 758,254
14,467 16,004
1,419 1,119
9,644 10,736
24,770 24,812
99,781 104,180
$1,258,128 1,243,646
$191,256 181,356
656,686 642,662
847,942 824,018
55,401 38,966
69,913 62,442
156,983 203,861
1,130,239 1,129,287
8,689 8,485
8,787 8,743
53,426 52,878
51,918 41,563
4,738 3,009
(487)(2,450)
(663)(442)
126,408 111,786
1,481 2,573
127,889 114,359
$1,258,128 1,243,646
(in millons, except shares)
Assets
Cash and due from banks
Federal funds sold, securities purchased under resale agreements and other short-term investments
Trading assets
Securities available for sale
Mortgages held for sale (includes $47,531 and $36,962 carried at fair value)
Loans held for sale (includes $873 and $149 carried at fair value)
Loans (includes $309 carried at fair value at December 31, 2010)
Allowance for loan losses
Net loans
Mortgage servicing rights:
Measured at fair value
Amortized
Premises and equipment, net
Goodwill
Other assets
Liabilities
Noninterest-bearing deposits
Interest-bearing deposits
Total deposits
Short-term borrowings
Accrued expenses and other liabilities
Long-term debt (includes $306 carried at fair value at December 31, 2010)
Total liabilities (2)
Equity
Wells Fargo stockholders' equity:
Preferred stock
Common stock - $1-2/3 par value, authorized 9,000,000,000 shares;
issued 5,272,414,622 shares and 5,245,971,422 shares
Additional paid-in capital
Retained earnings
Cumulative other comprehensive income
Treasury stock - 10,131,394 shares and 67,346,829 shares
Unearned ESOP shares
Total Wells Fargo stockholders' equity
Noncontrolling interests
Total equity
Total liabilities and equity
(1) Our consolidated assets at December 31,2010, Indude the following assets of certain vanable interest entities (VIEs) that can only be used to setle the liabilties of thoseVIEs: Cash and due from banks, $200 milion; Trading assets, $143 milion; Secunties available for sale, $2.2 bilion; Net loans, $16.7 billon; Other assets, $2.0 bilion, and
Total assets, $21.2 billion.
(2) Our consolidated liabilities at December 31, 2010, indude the following VIE liabilities for which the VIE creditors do not have recourse to Wells Fargo: Short-termborrowings, $7 milion; Accrued expenses and other liabilities, $71 milion; Long-term debt, $8.3 bilion; and Total liabilties, $8.4 bilion.
The accompanying notes are an integral par of these statements.
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Nalco Holding Company and Subsidiares
Consolidated Balance Sheets
(dollars in milions, except per share data)
Assets
Curent assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade accounts receivable, less allowances of $13.2 and $17.8 in 2010 and
2009, respectively. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories .......................................................
Deferred income taxes . . . . . . . . . . .. . . . . . . . ... . ... . . .. . . ....... . . . .. . .
Prepaid expenses, taxes and other current assets . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets ..................................................
Property, plant, and equipment, net ....................................Goodwill.......................................................... .
Other intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred financing costs ..............................................
Other noncurrent assets ..............................................
Total assets .........................................................
Liabilties and equity
Current liabilties:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .
Accrued compensation .............................................
Short-term debt ...................................................
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilties ...............................................
Long-term debt. . . . . . . . . .. . .. .. . ... . . . . . . . ... . ... . . .. . .... . . .. . . . . . . .
Deferred incorne taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension benefits .............................................
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Totalliabilities ......................................................
Equity:
Nalco Holding Company shareholders' equity:
Common stock, par value $0.01 per share; authorized 500,000,000 shares;
147,925,072 shares and 147,730,531 shares issued in 2010 and 2009,
respectively ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital .........................................
Treasury stock, at cost; 9,535,943 shares in 2010 and 2009 ..............
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accurnulated other comprehensive income ..........................
Nalco Holding Company shareholders' equity. . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrollng interests ............................................
Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilties and equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
See notes to consolidated financial statements.
62
December 31, Decmber 31,2010 209
$ 128.1
765.5
330.0
63.9
147.2
1,434.7
729.1
1,844.1
1,023.3
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118.9
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$ 356.5
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90.0
63.0
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260.3
405.6
190.1
4,496.2
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151.6
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30.7
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$ 127.6
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25.6
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229.8
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212.1
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(227.8)
133.2
471.6
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Nalco Holding Company and Subsidiares
Consolidated Statements of Operations
(dollars in millions, except per share amounts)
Net sales........................................................
Operating costs and expenses:
Cost of product sold ............................................
Sellng, administrative and research expenses ......................
Amortization of intangible assets ................................ .
Restructuring expenses .........................................
Gain on divestiture ............................................ .
Impairment of goodwill .........................................
Total operating costs and expenses .................................
Operating earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income ..................................................
Interest expense .................................................
Earnings (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Incorne tax provision .............................................
Net earnings (loss) ...............................................
Less: Net earnings attributable to noncontrolling interests. . . . . . . . . . . . . .
Net earnings (loss) attributable to Nalco Holding Company. .. .. . . ... . .
Net earnings (loss) per share attributable to Nalco Holding Company
common shareholders:Basic...................................................... .
Diluted.................................................... .
Weighted-average shares outstanding (millons):Basic...................................................... .
Diluted.................................................... .
See notes to consolidated financial statements.
63
Year ended December 31
2010 2009 2008
$4,250.5 $3,746.8 $4,212.4
2,336.7 2,040.9 2,381.8
1,285.4 1,206.3 1,246.5
43.2 47.9 56.8
2.6 47.8 33.4
(38.1)
4.9 544.2
3,672.8 3,342.9 4,224.6
577.7 403.9 (12.2)
(45.1)(17.6)(17.4)
4.3 3.9 8.3
(231.9)(254.5)(258.8)
305.0 135.7 (280.1)
103.3 67.8 54.5
201.7 67.9 (334.6)
5.5 7.4 8.0
$196.2 $60.5 $ (342.6)
$1.42 $0.44 $(2.44)
$1.41 $0.44 $(2.44)
138.3 138.2 140.1
139.4 138.6 140.1
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MOODY'S CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE DATA)
Year Ended December 31,
2010 2009 2008
Revenue $2,032.0 S 1,97.2 S 1,755.4
Expenses
Operating 604.8 532.4 493.3
Sellng, general and administrative 588.0 495.7 441.3
Restructuring 0.1 17.5 (2.5)
Depreciation and amortization 66.3 64.1 75.1
Total expenses 1,259.2 1,109.7 1,007.2
Operating income 772.8 687.5 748.2
Interest income (expense), net (52.5)(33.4)(52.2)
Other non-operating income (expense), net (5.9)(7.9)33.8
Non-operating income (expense), net (58.4)(41.3)(18.4)
Income before provision for income taxes 714.4 646.2 729.8
Provision for income taxes 201.0 239.1 268.2
Net income 513.4 407.1 461.6
Less: Net income attributable to noncontrolling interests 5.6 5.1 4.0
Net income attributable to Moody's $507.8 S 402.0 S 457.6
Earnings per share
Basic $2.16 S 1.70 S 1.89
Diluted $2.15 S 1.69 S 1.87
Weighted average shares outstanding
Basic 235.0 236.1 242.4
Diluted 236.6 237.8 245.3
The accompanying notes are an integral part of the consolidated financial statements.
MOODY'S 2010 10-K 61
62 MOODY'S 2010 10-K
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MIDAMERICAN ENERGY HOLDINGS COMPAN AN SUBSIDIARS
CONSOLIDATED BALANCE SHEETS (Amounts in millions)
As of December 31,
2010 2009
ASSETS
Curent assets:
Cash and cash equivalents
Trade receivables, net
Income taes receivable
Inventories
Dervative contracts
Investments and restrcted cash and investments
Oter curent assets
Total curent assets
44
429
1,308
88
591
136
83
Propert, plant and equipment, net
Goodwill
Investments and restrcted cash and investments
Reguatory assets
Derivative contracts
Other assets
31,899
1,881
30,936
5,078
2,702
2,093
52
730
Total assets $45,668 $44,684
The accompanying notes are an integrl par of these consolidated financial statements.
83
MIDAMERICAN ENERGY HOLDINGS COMPAN AN SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (continued)
(Amounts in milions)
LIABILITIES AN EQUITY
Current liabilties:
Accounts payable
Accrued interest
Accred propert, income and other taes
Derivative contracts
Short-term debt
Curent portion of long-term debt
Other curent liabilities
Total curent liabilities
Regulatory liabilties
Dervative contracts
MERC senior debt
MERC subordinate debt
Subsidiary debt
Deferrd income taes
Other long-term liabilties
Total liabilities
Commtments and contingencies (Note 16)
Equity:
MERC shareholder' equity:
Common stock - 115 shares authori, no par value, 75 shares issued and outstading
Additional paid-in capital
Retained earngs
Accumulated other comprehensive (loss) income, net
Total MERC shareholders' equity
Noncontrollng interests
Total equity
Total liabilties and equity
As of December 31,
2010 2009
$827 $
341
287
158
320
1,286
583
3,802
1,664
458
5,371
918
344
277
123
179
379
683
2,903
1,603
458
5,371
.402
13,600
5,604
1,900
31,841
12,662
6,298
1,833
32,260
5,427
7,979
(174)
13,232
176
13,408
$45,668 $
The accompanying notes are an integrl part of these consolidated fiancial statements.
84
44,684
MIDAMERICAN ENERGY HOLDINGS COMPAN AN SUBSIDIAS
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in milions)
Years Ended December 31,
2010 2009 2008
Operating revenue:
Energy $10,107 $10,167 $1,535
Real estate 1,020 1,037 1,133
operating revenue 11,127 11,204 12,668
Operating costs and expenses:
Energy:
Cost of sales 3,890 3,904
Operating expense 2,470 2,571 2,369
Depreciation and amortiztion 1,262 1,238 1,110
Real estate 1,003 1,026 1,191
Total operating costs and expenses 8,625 8,739 9,840
Operating income 2,502 2,828
Other income (expense):
Interest expense (1,225)(1,275)(1,333)
Capitalized interest 54 41
Interest and dividend income 24 38 75
Other, net 110 146 1,188
Total other income (expense)(1,037)(1,050)(16)
Income before income tax expense and equity income 1,465 2,812
Income ta expense 198 982
Equity income 43 41
Netincome 1,310 1,871
Net income attbutable to noncontrolling interests 72 21
Net income attributable to MEHC $1,238 $$1,850
The accompanying notes are an integral par of these consolidated financial statements.
85
MIDAMRICAN FUNDING, LLC AN SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in milions)
As of December 31,
2010 2009
ASSETS
$9,403 $9,286
1,214 1,184
10,617 10,470
(3,849)(3,641)
6,768 6,829
151 114
6,919 6,943
203 88
386 412
159 158
111 93
859 751
516 472
1,270 1,270
578 397
168 75
2,532 2,214
10,310 $9,908
Gas
Accumulated depreciation and amortization
Constrction work in progress
Total utility plant, net
Curent assets:
Cash and cash equivalents
Receivables, net
Inventories
Other
Total curent assets
Other assets:
Investments and nonregulated propert, net
Goodwil
Regulatory assets
Other
Tota other assets
Total assets $
CAPITALIZATION AN LIAILITIS
Capitalization:
MidAerican Funding membets equity
Noncontrolling interests
Long-ter debt, excluding curent poron
Total capitalization
Curent liabilties:
Current portion of long-term debt
Note payable to
Accounts payable
Taxes accrued
Interest accrued
$3,673 $3,428
28 31
3,190 3,390
6,891 6,849
254
259
98
56
90
757
1,370 1,053
. 216
721
343
2,682
$10,310 $
Total curent liabilities
Other liabilties:
Deferred income taxes
Investment tax credits
Asset retirement obligations
Regulatory liabilities
Other
Total other liabilities
Total capitalization and liabilties
The accompanying notes are an integrl par of these consolidated financial statements.
91
MIDAMERICAN FUNDING, LLC AND SUBSIDIARIS
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in milions)
Operating revenue:
Regulated electrc
Regulated gas
Nonrguated
Total operating revenue
Years Ended December 31,
2010 2009 2008
852
1,184
3,815
Operating costs and expenses:
Regulated:
Cost of fuel, energy and capacity
Cost of gas sold
Other operating expenses
Maintenance
Depreciation and amortization
Propert and other taxes
566
602
421
204
344
112
2,249
Nonregu1ated:
Cost of sales
Other
1,076
30
1,106
3,355Tota operating costs and expenses
Operating income 460
Non-operating income:
Interest and dividend income
Allowance for equity fuds
Other, net
857
1,127
3,699
2,030
1,377
1,308
4,715
522
417
1,026
31
1,057
3,230
743
1,128
422
204
281
103
2,881
1,214
30
1,244
4,125
590
5
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26
191 201
Fixed charges:
Interest on long-term debt
Other interest expense
Allowance for borrowed fuds (2)
190
Income before income tax expense
Income tax (benefit) expense
279
(61)
Net Income
Net income attbutable to noncontrollng interests
340
Net income attbutable to MidAmerican Funding $340 $
The accompanying notes are an integral par of these consolidated financial statements.
92
193
4
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196
(43)
(16)
191
425
107
327 $
318
317
MHC INC. AN SUBSIDIARS
CONSOLIDATED BALANCE SHEETS
(Amounts in milions)
As of December 31,
2010 2009
ASSETS
Utilty plant, net:
Electrc
Gas
9,403 $9,286
1,214 1,184
10,617 10,470
(3,849)(3,641)
6,768 6,829
151 114
6,919 6,943
203 88
383 408
159 158
111 93
856 747
Accumulated depreciation and amortzation
Constrction work in progress
Total utility plant, net
Curent assets:
Cash and cash equivalents
Receivables, net
Inventories
Other
Total curent assets
Other assets:
Receivable from affiliate
Investments and nonregulated propert, net
Goodwil
Regulatory assets
Other
Total other assets
Total as
CAPITALIZTION AN LIABILITIES
Capitalization:
MHC common shareholder's equity
Noncontrollng interests
Long-term debt, excluding curent portion
Total capitalization
Curent liabilties:
Note payable to affiliate
Accounts payable
Taxes accrued
Interest accrued
Oter
Total curent liabilities
Other liabilties:
Deferred income taxes
Investment tax credits
Asset retirement obligations
Regulatory liabilities
Other
Total other liabilities
Total capitalization and liabilties
$4,225 $3,958
28 31
2,865 2,865
7,118 6,854
14 254
250 263
103 98
44 44
114 90
525 749
1,370 1,053
32 34
216 205
721 683
342 326
2,681 2,301
10,324 $9,904$
The accompanying notes are an integrl part of these consolidated financial statements.
113
MHC INC. AN SUBSIDIAES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in milions)
Operating revenue:
. Reguated electrc
Regulated gas
Nonreguated
Total operating revenue
Years Ended December 31,
2010 2009 2008
566 743
602 1,128
421 422
204 204
344 281
112 103
2,249 2,881
1,076 1,214
30 30
1,106 1,244
3,355 4,125
460 590
$
Operating costs and expenses:
Regulated:
Cost of fuel, energy and capacity
Cost of gas sold
Other operating expenses
Maintenance
Depreciation and amortzation
Prope and other taxes
Nonregulated:
Cost of sales
Other
Tòta1 operating expenses
Operating income
Non-operating income:
Interest and dividend income
Allowance for equity fuds
Other, net
Total non-operatig inèome
Fixed charges:
Interest on long-term debt
Oter interest expense
Allowance for borrowed funds
Tota fixed charges
155
1
(2)
154
Income before income tax expense
Income ta (benefit) expense (46)
Net income
Net income attbutable to noncontrollng interests
361
Net income attributable to MHC
The accompanying notes are an integral par of these consolidated financial statements.
$361 $
114
2,030
1,377
1,308
4,715
1
4
4
9
5
25
(4)
26
12
12
155
4
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158
154
6
(16)
144
323
(27)
472
127
345
1
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CE ELECTIC UK FUING COMPAN (RGISTERED NUMBER: 3476201)
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2010
2010 2009
Notes £'000 £'000
CONTUING OPERATIONS
Revenue 3 605,674 566,353
Cost of sales (47,358)(67,054)
GROSS PROFIT 558,316 499,299
Operating expenses (240,318)(255,136)
OPERATIG PROFI 317,998 244,163
Other gains 9 34,130 1,099
Finance costs 5 (97,025)(100,537)
Finance income 5 1,332 2,229
PROFI BEFORE INCOME TAX 6 256,435 146,954
Income tax 7 (42,766)(40,270)
PROFI FOR TH YEAR 213,669 106,684,-
,. .
Profit attibutable to:
Owners of the parent 210,960 105,929
Non-controllng interests 2,709 755
213,669 106,684
The notes form part of these financial statements
Page 28
CE ELECTRIC UK FUNDING COMPAN (RGISTERED NUBER: 3476201)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2010
2010 2009
Notes £'000 £'000
ASSETS
NON-CUNT ASSETS
Goodwil 11 248,843 248,843
Intangible assets 12 9,574 16,366
Propert, plant and equipment 13 3,708,791 3,553,442
Investments 14 3,328 3,257
Pension asset 26 158,345 128,411
Trade and other receivables 17 4,609 5,410
4,133,490 3,955,729
CURNT ASSETS
Inventories 16 11,369 14,396
Trae and other receivables 17 118,394 123,373
Cash and cash equivalents 18 5,685 5,968
Non-CUrrent assets held for sale 31 50,021
135,448 193,758
TOTAL ASSETS 4,268,938 4,149,487
EQUIY
SHAHOLDERS' EQUITY
Called up share capital 20 354,550 354,550
Other reserves 21 (40)6,335
Merger reserve 21 (163)1,222
Retained earings 21 677,92 465,607
1,032,299 827,714
Non-controlling interests 19 14,464 11,755
TOTAL EQUITY 1,046,763 839,469
The notes fonn part of these financial statements
Page 30
CE ELECTRIC UK FUNDING COMPANY (RGISTERED NUMBER: 3476201)
CONSOLIDATED STATEMENT OF FIANCIAL POSmON - continued
31 DECEMBER 2010
Notes
2010 2009
£'000 £'000
1,060,862 1,024,272
1,521,851 1,545,577
411,541 427,968
5,280 5,1l0
2.999,534 3,002,927
150,810 164,938
42,377 118,830
26,159 18,813
3,295 4,510
222,641 307,091
3,222,175 3,310,018
4,268,938 4,149,487
LIABILITIES
NON-CURNT LIABILITISTrae and other payables 22Borrowings 23Deferred ta 25Provisions 24
CURNT LIAIUTIESTrade and other payables 22Borrowings 23
Tax payableProvisions 24
TOTAL LIABILITIS
TOTAL EQUIT AN LIAILITS
The financial statements were approved by the Board of Dirtors on 21 April 201 i and were signed on its behalfby:
Q)Â.~
PAJones
Dirctor
The notes fonn par of these ficial statements
Page 31
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HOMESERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
As of Dcceinbei' 31,
2010 2009
ASSETS
Current assets:
Cash and cash equivalents
Commissions and other ti'ade receivables, net
Ainounts held in trust
Income tax receivable
Deferred income taxes
Other current assets
Total- current assets
Total assets
$50,796 $36,676
14,664 14,268
49,281 64,249
609 1,552
7,666 8,175
7,645 9,755
130,661 134;675
50,987 58,684
292,222 290,170
40,406 41,539
20,547 19,003
13,043 11,492
$ 547,866 $ 555,563
Property, plant and equipment, net
Goodwil
Trade name and other intangible assets, net
Equity investments
Other assets
The accompanying notes are an integral par of these consolidated financial statements.
4
HOMESERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (continued)
(In thousands, except share and per share amounts)
As of Decembei' 31,
2010 2009
LIABILITIES AND EQUITY
Current liabilties:
Accounts and commissions payable
Accrued expenses
Income taxes payable
Amounts held in trust
Accrued restructuring
Other curtent liabilities
Total current liabilties
Agent profit sharing
Accrued restructuring
Deferred income taxes
Othei'long-term liabilties
Total liabilties
$6,774 $9,003
32,842 33,150
2,491 5,375
49,281 64,249
6,510 9,385
10392 12,021
108,290 133,183
14,037 16,358
9,440 14,100
38,574 24,491
25,707 30.1 11
196,048 218.243
Commitments and contingencies (Note 14)
Equity:
HomeServices shareholders' equity:
Common stock, $0.01 par value, 38,000 shares authorized; 13,200 shares issued
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss), net
Less treasury stock, 1,950 common shares, at cost
Total HomeServicesshareholders' equity
Noncontrollng interests
Total equity
135,352
250,503
115
(34,693)
351,277
541
351,818
134,425
237,341
(247)
(34.63)
336,826
494
337.320
Total liabilties and equity $ 547,866 $ 555.ID
The accompanying notes are an integral part of these consolidated financial statements.
5
HOMESERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Opci-ting income
Years Ended Decembei' 31,
2010 2009
$909,360 $919,476
61,989 68,683
48,932 49,246
1,020,281 1,037,405
685,308 687,124
156,938 159,559
68,395 69,091
25,631 28,423
1,713 8,721
13,784 15,387
226 2,794
51,509 55,611
1,003,504 1,026,710
25,269 27,939
42,046 38,634
(109)(489)
386 5.174
277 4,685
42,323 43,319
12,908 16,723
29,415 26,596
1,253 1,42
28,162 25,454
1,557
$28.162 $23.897
Operiiting revenue:
Commission i'evenue
Title and escrow closing fees
Other
Total opel'ting revenue
Opel'ting costs iiiid expenses:
Commission expense
Salaiiesand employee benefits
Occupancy
Business promotion and advertising
Restructuring expenses
Depreciation and amortization
Amortization of pending real estate contracts and home listings
Other operating expense
Total operating costs and expenses
Equity earnings
Otliei' incoine(expense):
Interest expense
Other, net
Total other income (expense)
Income befoi'e income tax expense
Income tax expense
Net income
Net income attributable to lioncontroIIng interests
Net income attributable to lIomeServices
Preferi'ed dividend
Eamings available to HomeServices'cominon shareholders
The accmpanying notes are an integral part of these consolidated financial statements.
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KERN RIVER GAS TRANSMISSION COMPANY
BALANCE SHEETS - REGULATORY BASIS
(Amounts in thousands)
ASSETS
As of Dcceiibei' 31~2010 2009
Utilty plant, net $1,708,049 $1.622,773
Other property and investments 11.58 2,022
Current and aCCl'ted assets:
Cash and cash equivalents 15,178 27,636
Trade receivables 33,186 34,308
Transportation and exchange gas receivables 1,903 1,933
Inventories 8,013 7,962
Other current and accrued assets 1.68 2.212
Total current and accrued assets 59,648 74,051
Defen'ed debits:
Deferred income taxes 27,487 33,770
Regulatory assets 105,802 116,510
Other deferred debits 13.538 17,005
Total assets $1.926.38~$1.866.131
The accompanying notes are an integral part of these financial statements.
8
KERN RIVER GAS TRANSMISSION COMPANY
STATEMENTS OF INCOME - REGULATORY BASIS
(Amounts in thousands)
The accompanying notes are an integral part ofthese financial statemeiits.
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MEHC Insurance Services Ltd.
Balance Sheets
December 31, 2010 and 2009
2010 2009
Assets
Cash and cash equivalents
Investments, available for sale, at fair value
Accrued investment income
Deferred policy acquisition costs
Federal income tax receivable
Deferred federal income tax
$12,821,573
3,452,083
8,975
5,804
6,164
1,200
$16,973,529
320
5,804
Total assets $16,295,799 $16,979,653
Liabiltie~ and Shareholder's Deficit
Liabilties:
Unpaid losses and loss adjustent expenses $12,912,322 $13,187,008
Claims payable to PacifiCorp 10,000,000 7,744,157
Premium deficiency reserve 58,000 154,000
Unearned premiums 1,527,452 1,527,452
Accrued expenses 71,552 70,482
Federal income tax payable 1,168
Tota liabilties 24,569,326 22,684,267
Shareholder's deficit:
Common stock, no par value, 1,000,000 shares
authorized, 100,000 shares issued and outstanding
Additional paid-in capital 32,356,461 26,256,461
Accumulated deficit (40,627,760)(31,961,075)
Accumulated other comprehensive loss, net of ta (2,228)
Total shaeholder's deficit (8,273,527)(5,704,614)
Total liabilties and shareholder's deficit $16,295,799 $16,979,653
The accompanying notes are an integral par of these finacial sttements.
2
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MIDAMERICAN ENERGY COMPAN AN SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Amounts in millons)
As of December 31,
2010 2009
ASSETS
$9,403 $9,286
1,214 1,184
10,617 10,470
(3,849)(3,641)
6,768 6,829
151 114
6,919 6,943
203 87
383 408
159 158
110 93
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Electrc
Gas
Accumulated depreciation and amortization
Constrction work in progress
Total utility plant, net
Curent assets:
Cah and cash equivalents
Receivables, net
Inventories
Other
Total curent assets
Other assets:
Investments and nonreguated proper, net
Regulatory assets
Other
Total other assets
Total assets
CAPITALIZATION AN LIAILITIES
Capitalization:
MidAmerican Energy common shareholder's equity
Preferred securties
Noncontrollng interests
Long-term debt, excluding cunt portion
Total capitalization
Curent liabilties:
Accounts payable
Taxes accrued
Interest accrued
$2,931 $
27
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5,824
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511
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216
721
338
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Total curent liabilities
Other liabilities:
Deferred income taxes
Investment ta credits
Asset retiement obligations
Reguatory liablities
Other
Tota other liabilties
Total capitalization and liabilties
259
97
44
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490
1,057
34
205
683
313
2,292
8,607
The accompanying notes are an integral par ofthese consolidated financial statements.
52
MIDAMERICAN ENERGY COMPAN AN SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in milions)
Operating revenue:
Regulated electrc
Regulated gas
Nonrgu1ated
Total operating revenue
Years Ended December 31,
2010 2009 2008
$1,715 $2,030
852 857 1,377
1,179 1,121 1,293
3,810 3,693 4,700
Operating costs and expenses:
Reguated:
Cost of fuel, energy and capacity
Cost of gas sold
Other operating expenses
. Maintenance
Depreciation and amortization
Propert and other taes
566 522 743
602 1,128
421 422
204 204
344 281
112 103
2,249 2,881
1,025 1,212
27 20
1,052 1,232
3,225 4,113
459 468 587
Nonrgu1ated:
Cost of sales
Other
Total operatig costs and expenses
Operating income
Non-operating income:
Interest and dividend income
Allowance for equity fuds
Other, net
Total non-operating income
1
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3
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Oter interest
Allowance for borrowed funds
Tota fixed charges
155
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154
155 154
(1)(16)
157 142
323 469
(27)126
350 343
1 1
349 $342
Income before income tax expense
Income tax (benefit) expense
308
(49)
Net income
Preferred dividends
357
Earnings on common stock 357 $
The accompanying notes are an integral par of these consolidated financial statements.
53
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PPW HOLDINGS LLC
BALANCE SHEET
December 31, 2010
(Amount in thollnI)
ASSETS
Curent assets:
Accounts receivable, net
Income taes receivable from affliates
Total curent assets
Propert, plant and equipment, net
Investment in subsidiares
Goodwill
Other assets
Total assets
LIAILITIES AND EQUITY
Current liabilties:
Accounts payable
Curent porton oflong-term debt and capital lease obligations
Total currt liabilties
Long-term debt and capital lease obligations
Deferred income taes
Other long-term liabilties
Total liabilties
Equity:
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Additional paid-in capital
Retained earings
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Total equity
Total liabilties and equity
$3,280
111
3,391
99,289
7,277,463
1,126,642
44,962
$8,551,747
$20
12,347
12,367
86,942
930
(172)
100,067
6,217,086
2,230,032
4,562
8,451,680
$8,551,747
PPW HOLDINGS LLC
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
(Amounts in thousands)
Operating revenue $
Operating costs and expenses:
Energy costs (27,024)
Operations and maintenance (2,803)
Depreciation and amortization 10,566
Total operating costs and expenses (19,261)
Operating income 19,261
Other income (expense):
Interest expense (16,485)
Interest income 2,892
Other 566,415
Total other income (expense)552,822
Income before income tax expense 572,083
Income tax expense 1,277
Net income 570,806
Net income attibutable to noncontrolling interests 1,892
Net income attributable to PPW Holdings LLC $568,914
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PacifiCorp Foundation
Statement of Income and Changes in Net Assets
For the Year Ended December 31,2010
(in dollars)
(Unaudited - Internal Use Only)
Year-to-Date
Revenue and contributions:
Deposits - tax/bank refunds $
Interest income 320
Dividends 591,427
Realized gain/(Ioss) on sale of investment (258,293)
Unrealized gain/(Ioss) on investment 3,316,629
Capital gains on partnership investments 723,043
Miscellaneous income: security litigation income 3,549
Total revenues/(Iosses) and contributions 4,376,674
Expenses:
Grants:
Health, welfare and social services 211,500
Education 230,500
Culture and arts 115,000
Civic and community betterment 115,000
Giving campaign match 300,000
Matching gift program 81,072
Small community capital projects 162,500
Rocky Mountain Power Foundation special grants 30,000
Pacific Power Foundation special grants 30,000
PacifiCorp Foundation special grants
Global Days of Service 80,000
Other Community Pledge
Grants approved for future periods
Total grants 1,355,572
Administrative expenses 179,148
Investment management fees 93,977
Taxes 10,585
Bank fees 2,405
Miscellaneous expenses 15
Total expenses 1,641,702
Net assets increase (decrease)2,734,973
Net assets beginning of period 36,838,564
Net assets end of period $39,573,536
PacifiCorp Foundation
Statement of Financial Position
(in dollars)
(Unaudited - Internal Use Only)
12/31/2010
Assets:
Cash $181,884
Restricted investments:
Cash and cash equivalents
Interest receivable
Dividend receivable
Tax receivable
Receivable for investments sold
Receivable from State Street
State Street investments
Total restricted investments
135,129
11
5,450
1,423
39,537,140
39,679,152
Total assets 39,861,036
Liabilties:
Accounts payable
Interest payable
Grants payable
Total liabilities
287,500
287,500
$ 39,573,536Net assets
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ENERGY WEST MINING COMPANY
BALANCE SHEET
December 31, 2010
(Amount in thousnd)
ASSETS
Curent assets:
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Total current assets
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Total assets $28,892
LIABILITIES AN EQUITY
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Total current liabilties
$17,392
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461
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Regulatory liabilities
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Total liabilities
1,982
2,887
28,891
Equity:
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Total equity
Total liabilties and equity $28,892
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December 31, 2010
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Total assets
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ASSETS
LIABILITIES AN EQUITY
$449
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PACIFICORP ENVIRONMENTAL REMEDIATION COMPAN
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December 31, 2010
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Curent assets:
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Current liabilities:
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Total current liabilties
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ASSETS
$26,376
91
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$30,335
LIABILITIES AND EQUITY
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$30,335
PACIFICORP ENVIRONMENTAL REMEDIATION COMPAN
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
(Amounts in thousands)
Operating revenue
Operating costs and expenses:
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Total other income (expense)
Loss before income tax benefit
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Net loss
$
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$
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PACIFIC MINERAS, INC.
BALANCE SHEET
December 31,2010
(Amount in thousands)
ASSETS
Curent assets:
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Total current assets
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LIAILITIES AND EQUITY
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$68
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$188,747
$1,984
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126,359
174,319
$188,747
PACIFIC MINERAS, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
(Amounts in thousands)
Operating revenue
Operating costs and expenses:
Operations and maintenance
Taxes, other than income taxes
Total operating costs and expenes
Operating loss
Other income (expense):
Interest expense
Other
Total other income (expense)
Income before income tax expense
Income ta expense
Net income
$
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22,562
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Trapper Mining Inc.
Consolidated Balance Sheet
December 31 , 2010
(Unaudited)
Assets:
Curent Assets:
Cash & Cash Equivalents
Accounts Receivable
Inventories
Prepaid and Other Curnt Assets
Curnt Reclamation Receivable frm Buyers
Current Deferred Income Tax Asset
Total Curent Assets. . . . . . . . . . . . . . . . . . . . . .
Propert Plant and Equipment before FAS 143:
Lands and Leases
Development Costs
Equipment and Facilities
Total Propert Plant and Equipment (Cost) . . . . .
Less Depreciation and Amortation
Total Propert Plant and Equipment (Net) . . . . . .
FAS 143 Propert Plant and Equipment (Net) . . .
Grnd Total Propert Plant and Equipment (Net)
Acquired GE Royalty
Deferred Loan Fees
Deferred Income Tax Asset
Reclamation Receivable from Buyer
Restrcted Funds - Black Lung
Total Assets.......... .......... ..........
Liabilties and Members' Equity:
Current Liabilities:
Accounts Payable
Accrued Royalties
Accrued Payroll Expenses
Accrued Production Taxes
Deferrd Reclamation Revenue
Curent Asset Retirement Liability
Curent Portion Long-Term Debt
Total Curent Liabilities. . . . . . . . . . . . . . . . . . . .
Long-Term Debt
Asset Retirement Liability
Deferrd Income Tax Liability
Black Lung Liability
Total Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . .
Members' Equity
Paid in Capital ~ 1/1/98
Patronage Equity - Pror Year
Non-Patronage Equity - Prior Year
Patronage Equity - Current Year
Non-Patronage Equity - Curent Year
Total Members' Equity. . . . . . . . . . . . . . . . . . . . . .
Total Liabilties and Members' Equity. . . . . . . . .
$ 13,448,198
5,707,336
6,172,597
412,462
688,820
60,000
$ 26,489,413
$ 11,240,186
2,834,815
116,338,112
$ 130,413,113
(88,392, i 62)
$ 42,020,951
6,511,312
$ 48,532,263
5,454,546
144,366
1,079,000
10,913,070
500,000
$ 93,112,658
$3,229,302
440,179
2,616,967
1,817,123
36,868
765,355
5,009,714
$13,915,508
16,470,959
17,958,177
1,210,000
272,237
$49,826,881
$20,324,925
19,020,937
1,940,385
1,862,596
136,934
$43,285,777
$93,112,658
TRAPPER MINING INC
CONSOLIDATED NET INCOME
AS OF: DECEMBER 31,2010
NET INCOME NET INCOME
FOR THE MONTH YEAR TO DATE
TRAPPER MINING $(3,026,916.65)2,061,447.28
WILLIAMS FORK MINING (2,059.32)(3,220.32)
WILLIAMS FORK LAND (36,608.79)(35,866.29)
NET INCOME (LOSS) BEFORE TAX $(3,065,584.76)$2,022,360.67
CURRENT TAX PROVISION (22,831.00)(22,831.00)
TOTAL TAX PROVISION (22,831.00)(22,831.00)
NET INCOME (LOSS) AFTER TAX $(3,088,415.76)1,999,529.67
SALT RIVER
TRI-STATE
PACIFICORP
PLATTE RIVER
32.10%
26.57%
21.40%
19.93%
(91,026.79)
(75,345.23)
(60,684.52)
(56,516.01 )
(283,572.55)
43,955.86
36,383.40
29,303.91
27,290.98
TOTAL NONPATRONAGE INCOME (LOSS)136,934.15
SALT RIVER
TRI-STATE
PACIFICORP
PLATTE RIVER
32.10%
26.57%
21.40%
19.93%
(900,354.67)
(745,246.84)
(600,236.45)
(559,005.25)
(2,804,843.21 )
597,893.16
494,891.63
398,595.44
371,215.29
TOTAL PATRONAGE INCOME (LOSS)1,862,595.52
TOTAL INCOME (LOSS)(3,088,415.76)1,999,529.67
TRAPPER MINING INC
CONSOLIDATED PATRONAGE & NONPATRONAGE INCOME ALLOCATION
DECEMBER 31, 2010
NET INCOME $
FOR THE MONTH
NET INCOME
YEAR TO DATE
TRAPPER PATRONAGE INCOME
TRAPPER NONPATRON INCOME
TOTAL CONSOLIDATED INCOME
(2,768,234.42)
(281,513.23)
(3,049,747.65)
(2,059.32)
(36,608.79)
(3,088,415.76)
TOTAL TRAPPER INCOME
WFMC NONPATRONAGE INCOME
WFLC PATRONAGE INCOME
SALT RIVER 32.10%(888,603.25)609,406.24
TRI-STATE 26.57%(735,519.89)504,421.30
PACIFICORP 21.40%(592,402.16)406,270.83
PLATTE RIVER 19.93%(551,709.12)378,363.44
TOTAL TRAPPER PATRONAGE (2,768,234.42)1,898,461.81
SALT RIVER 32.10%(90,365.75)44,989.58
TRI-STATE 26.57%(74,798.07)37,239.04
PACIFICORP 21.40%(60,243.82)29,993.06
PLATTE RIVER 19.93%(56,105.59)27,932.79
TOTAL TRAPPER NONPATRON (281,513.23)140,154.47
TOTAL TRAPPER INCOME (3,049,747.65)2,038,616.28
SALT RIVER 32.10%(661.04)(1,033.72)
TRI-STATE 26.57%(547.16)(855.64)
PACIFICORP 21.40%(440.70)(689.15)
PLATTE RIVER 19.93%(410.42)(641.81)
TOTAL WFMC NONPATRONAGE (2,059.32)(3,220.32)
SALT RIVER 32.10%(11,751.42)(11,513.08)
TRI-STATE 26.57%(9,726.95)(9,529.67)
PACIFICORP 21.40%(7,834.29)(7,675.39)
PLATTE RIVER 19.93%(7,296.13)(7,148.15)
TOTAL WFLC PATRONAGE (36,608.79)(35,866.29)
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EXHIBIT A
HUNTINGTON-CLEVELAND IRRIGATION COMPANY
STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2010 AND 2009
TOTAL ALL FUNDS
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalent $74,410 $118,703
Restricted cash 1,342,090 859,971
Undeposited funds 71,500
Accounts receivable:
Shareholder assessments 76,612 23,938
Contracts receivable:
Division of Water Resources 283,743
Rocky Mountain Power 150,393
Bureau of Reclamation 143,098 173,727
NRCS 77,718
Total current assets $1,713,928 $1,681,975
NONCURRENT ASSETS:
Fixed Assets:
Land $41,722 $41,722
Easements 85,955 81,790
Water rights 3,096,469 3,096,469
Vehicles 23,563 23,563
Office equipment 1,383 1,383
Diversion structures 55,000 55,000
Storage facilties improvements 3,541,085 3,072,833
Construction in progress
Salinity project 47,930,099 39,391,760
Miler flat dam safety upgrde 468,252
Accumulated depreciation (2,393,4 i 8)(2,346,305)
Total noncurrent assets 52,381,858 43,886,467
Total assets $54,095,786 $45,568,442
"The accompanying notes are an integrl part ofthis statement."
3
EXHIBIT A
(Continued)
HUNTINGTON-CLEVELAND IRRIGATION COMPANY
STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2010 AND 2009
TOTAL ALL FUNDS
2010 2009
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts payable $935,305 $998,391
Wages payable 4,255
Payroll taxes payable 1,420 3,689
Current portion of long-tenn liabilties 54,821 50,000
Total current liabilties $991,546 $1,056,335
LONG-TERM LIABILITIES:
Notes payable $2,541,879 $1,343,241
Accrued interest payable 1,749 11,281
Total long-term liabilties $2,543,628 $1,354,522
Total liabilities $3,535,174 $2,410,857
NET ASSETS:
Unrestricted:$4,076,373 $3,946,945
Restricted:
Salinity Project 46,484,239 39,210,640
Total net assets $50,560,612 $43,157,585
Total liabilties and net assets $54,095,786 $45,568,442
"The accompanying notes are an integral part of this statement."
4
EXHIBIT B
HUNTINGTON-CLEVELAND IRRIGATION COMPANY
STATEMENTS OF AcrlVITIES
FOR THE YEARS ENDED DECEMBER 31.2010 AND 20
TOTAL ALL FUNDS
UNRESTRlcrED RESTRICTED
OPERATIONS &SALINITY
MAINTENANCE PROJECT 2010 2009
Charges for Services:
A Water Assessment $99,622 $99,622 $105,210B Water Assessment 16,283 16,283 17,660
Mun icipal and Indu.~tiy Assessment 53,410 53,410 53,140
Dam Repayment Assssment 48,553 48,553 51,068Project RepaymentlO & M Assessment 50,104 50,104 41,940
Salinity Project Repayment Assessment 31,111 31,11 i
Meter Assessment 7,725 7,725
Minimal Assessment Adjustments 1,829 1,829 2,014
Net charges for services $308,37 $$308,37 $271,032
Governmental grants $88,286 $4,378,346 $4,466,632 $3,263,193
Other Revenue:
Private Contribution. Rocky Mountain Power $1,650,800 $1,650,800 $3,632,479Payments from Stockholders (NRCS)1,212,613 1,212,613 1,667,738
Other Governmental Revenue 26,487 26,487
Certificate Transfers $570 570 1,210
Late Fee 574
Interest 1,083 5,653 6,736 12,125Reimbursements86,547 86,547 7,739Miscellaneous9169161,059
Total other revenue $89,116 $2,895,553 $2,984,669 $5,322,924
Total revenues $486,039 $7,273,899 $7,759,938 $8.857,149
Expenses:
Program services:
Water Master Wage $49,750 $49,750 $42,210
Reservoir Manager Wage 13,062 13,062 11,754System Tech Wage 47,191 47,191 34,628
Other Wages 1,658 1,658
Payroll Benefits 12,763 12,763 8,456
Machine Hire 2,481 2,481 9,407
Non Employee Labor 4,424 4,424 2,860
Joe's Valley Dam Repayment 26,198 26,198 26,266
O&M-EWCD 27,790 27,790 18,093
O&M - EWCD - RRA Admin 15,430
Dam Safety Maintenance 7,000 7,000
Water Rights Assessments 23,614 23,614 23,524
Beaver & Muskrat Control 2,347 2,347 2,125
Vehicle and Equipment Expense 8,949 8,949 17,855
Material and Supplies 10,924 10,924 3,842Insurace8,374 8,374 6,007
Medical Insurance 6,223 6,223
Depreciation 47,113 $300 47,413 38,429
Totl program expenses $299,861 $300 $300,161 $260,886
"The accompanying notes are an integral part of this. sttement."
5
EXHIBITB
(Continued)
HUNTINGTON-CLEVELAND IRRIGATION COMPANY
STATEMENTS OF ACTIVITIES
FOR TilE YEARS ENDED DECEMBER 31, 2010 AND 2009
TOTAL ALL FUNDS
UNRESTRICTED RESTRlcrED
OPERA nONS &SALINITY
MAINTENANCE PROJEcr 2010 2009
SuPPort Services:
Secretary Wage $24,184 $24,184 $24.808
Payroll Benefits 1,919 1,919 2,&12
Offce Rent 3,600 3,600 3,600
Accounting and Auditing 7,550 7,550 4,100
Legal Fees 1,&14 1,&14 4,104
Telephone and Internet 6,797 6,797 5,45&
Offce Supplies 3,731 3,731 3,231
Postage 927 927 1,05&
Meetings 884 &84 841
Training 675 675
Bank Charges and Fees 649 649 548
Miscellaneous 4,020 4,020 3,975
Total support services $56.750 $$56,750 $54,535
Total expenses $356,61 I $300 $356,911 $315,421
Change in net assets $129,428 $7,273,599 $7,403,027 $8,541,728
Net assets, beginning of year 3,946,945 39,210,640 43,157,585 34,615,857
Net assets, end of year $4,076,373 $46,484,239 $50,560,612 $43,157,585
"The accompanying notes are an integral part of this statement."
6
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6:20AM
0420111
Cah Bais
FERRON CANAL & RESERVOIR CO.
Profit & Loss
January through Deceber 2010
Jan -De10
Incoe
INCOME
REENUE
Totl Inc
55.72
56,089.18
56,144.90
56,144.90Gro ProfiExGENER
BOAREMBER
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REIMBURSEMENT
GENERAL- Otr
Totl GENERA
270.00
103,593.55
5,718.07
430,375.61
539,957.23
539,957.23ToI Expe
NetJnc 23,187.67
Page 1
III. Loans
The following information on loans to and from affilates of PacifCorp includes the
following:
A. The month-end amounts outstanding.
B. The highest amount outstanding durig the year, separately for short-term and
long-term loans.
C. A description of the term and conditions, including basis for interest rates.
D. The total amount of interest charged or credited and the weighted-average
interest rate.
E. Specify the commission order(s) approving the transaction where such
approval is required by law.
Loan Summary
2010
PACIFC
REOUIREMENTS MIERALS, INC.
III. For inter-company loans to I from affliates:
A.The month-end amounts outstanding for short-term
and long-ter loans:
Short-term loan:
Janua - December (a)
Long-term loans:N/A
B.The highest amount during the year separtely for
short-term and long-term loans:
Maximum loan to affliate:
Short-ter loans:
Amount $18,241,423
Date Febru 2, 2010
Maximum loan to affiiate:
Long-term loans:
Amount N/A
Date N/A
Maxmum loan from affliate:
Short-term loans:
Amount N/A
Date N/A
Maximum loan from affliate:
Long-term loans:
Amount N/A
Date N/A
c.A description of the terms and Pursuat to the
conditions for loans includig the term and conditions of the
basis for interest rates:Umbrella Loan Agrement
D.The total amount of interest charged or credited and
the weighted averge rate of interest separtely for
short-term and long-ter loans:
Short-term loan:.
Interest expense charged $ -
Interest income credited $35,855
(b)
Long-ter loans:
Interest charged or credted N/A
E.Specify the commission orders) approving the trnsaction where such
approval is required by law:Refer to Appendix A
(a) Refer to the following schedule for the detail of month-end loan amounts outstading.
(b) Refer to the following schedule for the detail of interest charged or credited and the rates of interest.
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iV. Debt Guarantees
If the parent guarantees any debt of affliated interests, identify the entities involved,
the nature of the debt, the original amount, the highest amount during the year ended
December 31,2010 and the balance as of December 31, 2010.
PacifiCorp does not guarantee the debt of its subsidiares or any of its affliates.
v. Other Transactions
Report other transactions (utilty leasing of affilate propert, affliate leasing of utility
propert, utiity purchase of affliate propert, material or supplies and affdiate purchase
of utiity propert, material or supplies) as follows:
PacifiCorp is par to a tax-sharng argement and is par of the Berkshire Hathaway United
States federal income ta retu. PacifiCorp's provision for income taes has been computed
on a stand-alone basis. PacifiCorp remits federal and certin state income tax payments to PPW
Holdings LLC. The ta payments are then remitted to MEHC. At December 31,2010, MEHC
owed PacifiCorp $344,671,476 and PERCo $99,749 under ths arangement. In March 2011,
the United States Internal Revenue Service released Revenue Procedure 2011-26, which
provides guidance regarding the application of the 100% bonus depreciation provisions that
were provided for in the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010. As a result of this new gudance, PacifiCorp reduced its income tax
receivable from MEHC by $164,695,101 as of March 31, 2011.
VI. Employee Transfers
By affliate and job title, provide the total number of executive, management and
professional/technical employees transferred to and from the utilty. By affliate,
provide the total number of other employees transferred to and from the utilty.
Report of PacifiCorp Employee Transfers to Affilates
During the Year Ended December 31, 2010
Executive, Management and Professional/Technical Employees
Affliate Job Title Count
Kern River Gas Transmission Company Analyst, EnvIrnmental- Lead/Senior
Kern River Gas Transmission Company Intern - Engieenng
Kern River Gas Transmission Company Coordinator, Project - Career
MidAencan Energy Company Vice President, Generation
MidAencan Energy Holdings Company Director, Environmental
MidAencan Energy Holdings Company President, PacifiCorp EnergyTotal 6
Report of PacifiCorp Employee Transfers from Affiliates
During the Year Ended December 31,2010
Executive, Management and Professional/Technical Employees
Affliate Job Title Count
Falcon Power Operating Company*Managing Director, Gas Plants
Kern River Gas Transmission Company President, PacifiCorp Energy 1
MidAerican Energy Company Consultat, Planning/inancial
Accounting - LeadSenior
MidAerican Energy Company Director, Plant Operations/
Maintenance
1
MidAerican Energy Company Vice President, Generation
MidAerican Energy Company Manager, Engineering!
Environmental
MidAerican Energy Company Managing Director, Plant
(Medium)
Total 7
*Falcon Power Operating Company is an indiect wholly owned subsidiar ofCE Generation, LLC,
which is 50% owned by MERC. Refer to the following pages for CE Generation, LLC financial
statements.
Curent assets:
Cash and cash equivalents
Trade receivables
Income tax receivable
Inventories
Deferred income taxes
Other curent assets
Total curent assets
Propert, plant and equipment, net
Goodwil
Intangible assets, net
Other assets
Total assets
Curent liabilties:
Accounts payable
Accrued interest
Due to affliates
Curent portion of long-term debt
Deferred income taxes
Other curent liabilties
Total curent liabilities
Parent senior secured bonds
Subsidiary debt
Due to affliates
Deferred income taxes
Other long-term liabilities
Total liabilities
CE GENERATION, LLC AN SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
LIABILITIES AN EQUITY
Commitments and contingencies (Note 10)
Equity:
CE Generation members' equity
Noucontrolling interests
Total equity
Total liabilties and equity
As of December 31,
2010 2009
$ 44,580
34,035
1,738
33,240
3,730
117,323
672,461
265,897
50,122
2,807
$ 1.08,610
$ 54,705
32,754
2,613
32,672
75
2,801
125,620
705,772
265,897
55,869
3,205
$ i .156.363
$2,724 $1,612
1,499 1,722
1,193 946
35,190 40,941
1,287
6,734 13,139
48,627 58,360
189,600 204,800
117,744 137,734
2,828 4,893
207,752 212,778
17,801 18,250
584,352 636,815
507,201
17,057
524,258
$ 1.08,610
The accompanying notes are an integral par of these consolidated financial statements.
4
500,823
18,725
519,548
$ 1.56.363
CE GENERATION, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Years Ended December 31,
2010 2009 2008
Operating revenue $260,531 $394,517 $530,831
Operating costs and expenses:
Fuel 10,252 56,066 121,814
Plant operations 123,934 136,615 133,936
General and administrative 4,178 3,935 3,721
Depreciation and amortzation 73,576 90,302 114,371
Total operating costs and expenses 21 1,940 286,918 373,842
Operating income 48,591 107,599 156,989
Other income (expense):
Interest expense (28,733)(32,601)(37,479)
Interest and other income 928 801 2,676
Total other income (expense)(27,805)(31,800)(34,803)
Income before income tax (benefi) expense 20,786 75,799 122,186
Income tax (benefit) expense (499)8,134 14,303
Net income 21,285 67,665 107,883
Net (loss) income attbutable to noncontrollng interests (971)22,636 54,184
Net income attributable to CE Generation $22.256 $45.029 $53.699
The accompanying notes are an integral par of these consolidated fmancial statements.
5
VII. Cost Allocations
A description of each intra-company cost aUocation procedure and a schedule of cost amounts,
by account, transferred between regulated and non-regulated segments ofthe company.
PacifiCorp
Cost Alocation Manual
For the Year Ended December 31, 2010
Overview/Introduction
This section describes the allocation of costs between PacifiCorp and its non-regulated affliates.
On March 31, 2006, PacifiCorp entered into an Intercompany Administrative Services Agreement
("IASA") between MEHC and its subsidiares. PacifiCorp is an indiect subsidiar of MEHC, a
holding company based in Des Moines, Iowa, owning subsidiares that are primarly engaged in the
energy business. Refer to attched IASA. The IASA covers:
a) services by executive, management, professional, technical and clerical employees;
b) financial services, payroll processing servces, employee benefits parcipation, supply
chain and purchase order processing services, tax and accounting services, contract
negotiation and administration services, risk management services, environmental services
and engineerig and technical services;
c) the use of offce facilities, including but not limited to offce space, conference rooms,
fuitue, equipment, machinery, supplies, computers and computer softare, insurance
policies and other personal propert; and
d) the use of automobiles, airplanes, other vehicles and equipment.
PacifCorp's Non-Regulated Activities and Affilates
The following is a list ofPacifiCorp's non-regulated activities:
· Durg the year ended December 31, 2010, PacifiCorp was allocated costs by its non-
regulated parent company, MEHC, and certain ofMEHC's subsidiares, some of which are
non-regulated, as par of the MEHC management fee (see complete listig of these
subsidiares on the MEHC page within Section II - Transactions). See below for a
discussion of the amounts of these costs and the allocation methods used. Refer to section
i.e. for a description ofMEHC and its subsidiares.
· Durng the year ended December 31,2010, PacifiCorp allocated costs to one non-reguated
affliate: MEHC. See below for a discussion of the amounts of these costs and the allocation
methods used.
Allocation Methods
MEHC to subsidiares
In connection with the March 2006 acquisition of PacifiCorp by MEHC, MEHC committed to
PacifiCorp's state regulatory commissions to limt the amount of mangement fees that PacifiCorp
pays to MEHC each year to $9,000,000. This acquisition commitment expired March 20, 2011.
For the year ended December 31, 2010, MEHC invoiced PacifiCorp a total of $15,667,977 in
management service fees for services performed by MEHC and subsidiares under the IASA.
Pursuant to the commitment to state reguators, MEHC and PacifiCorp mutully agreed that
PacifiCorp's total liability to MEHC for management services provided for the year ended
December 31, 2010 was a total of $9,000,000. Refer to Section II - Transactions for fuer
information on this amount. Refer to the attched IASA schedule for a description of the tyes of
services provided. This $9,000,000 included $3,386,976 of costs that were allocated by MEHC using
six different formulae durg the year ended December 31,2010. These formulae are as follows:
a) A two factor formula based on the labor and assets of each of MERC's
subsidiaries. PacifiCorp's allocation percentage durg the year ended
December 31, 2010 was 45.38%.
b) The same two factor formula as a) above, except excludig the labor and assets of
RomeServices. PacifiCorp's allocation percentage durg the year ended
December 31, 2010 was 48.15%.
c) The same two factor formula as a) above, except excluding the labor and assets of
MERC's international subsidiares. PacifiCorp's allocation percentage durg the
year ended December 31, 2010 was 52.21 %.
d) The same two factor formula as c) above, except excluding the labor and assets of
RomeServices. PacifiCorp's allocation percentage durg the year ended
December 31, 2010 was 56.00%.
e) A formula to allocate legislative and regulatory costs to each of MERC's
subsidiaries based on where the legislative and regulatory employees spent their
time. PacifiCorp' s allocation percentage durng the year ended December 31, 2010
was 25.00% from January 1- May 31, 2010 and 20% from June 1 - December 31,
2010.
f) A formula based on the gross plant asset amounts of each ofMERC's subsidiares.
PacifiCorp's allocation percentage durg the year ended December 31,2010 was
48.66%.
PacifiCorp to MERC
PacifiCorp used two different formulae for allocating $79,572 of labor costs to MERC durng the
year ended December 31,2010 (this amount is part of the $1,218,262 included on the MERC page in
Section II - Tranactions). These formulae are as follows:
a) A two factor formula based on the labor and assets of each of MERC's
subsidiares. MERC's allocation percentage durg the year ended December 31,
2010 was 54.62%.
b) The same two factor formula as c) in the section above, except excluding the labor
and assets of Rome Services. MERC's allocation percentage durng the year ended
December 31, 2010 was 44.00%.
INTRCOMPANY ADMINISRATIE SERVICES AGREEMENT
BETEN
MIDAMERICAN ENERGY HOLDINGS COMPANY
AND
rr SUBSDIARIES
This Intercompany Administrative Services Agreement (KAgreemenr) is entered into as of March 31, 206
by and between MidAmrican Energy Holdings Company (hereinafter the "Compny") and it direct and
indirect subsidiaries (hereinafter the "SubsidiariesB) (each a "Part and together the KPartiesB).
WHEREA, the Company provides senior management, executive oversight and other administrative
services that provide value to and benefi the Subsidiaries as enttties in the consolidated group;
WH EREA, the Subsidiaries have access to professional, technical and other specialized resources that
the Company may wish to utilze from time to time in the provision of such administrative services; and
WH EREA, the Company and Subsidiaries may desire. to utilize the professional, technical and other
specialized resources of certain Subsidiaries;
NOW, THEREFORE, in consideration .of the premises and mutual agreements set forth herein, the
Company and Subsidiaries agree as follows:
ARTICLE 1. PROVISION OF ADMINISTRATIVE SERVICES
Upon and subject to the term of this Agreement, services wil be provided between and among the
Company and fts Subsidiaries that are not directly applicble to the production, distrbution or sale of a
product or service availale to customers of the Company or fts subsidiaries ("Administrative ServcesB).
For purposes of this Agreement, Administrative Services shall include, but not be Iimtted to the following:
a) services by executie, management, professional, technical and clerical employees;
b) financial services, payroll processing services, employee benefis 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;
c) the use of offe facilfties, including but not limfted to offce space, conference rooms, furnfture,
equipment, machinery, supplies, computers and computer softare, insurance policies and other
personal propert;
d) the use of automobiles, airplanes, other vehicles and equipment;
To obtain specialized expertise or to achieve effiencies, the following shuatins may arise under this
Agreement whereby Administrtive Services may be provided between and among the Company and it
Subsidiaries:
a) The COf1any may direcly assign or allte conmn costs to the Subsidiaries,
b) The COf1any may proure Administratie Services from the Subsidiaries for fts own benefi,
c) The Company may procure Administratie Services from the Subsidiaries for subsequent
allocation to some or all Subsidiaries commonly benefiing, or
d) The Subsidiaries may procure Administrative Services from each other.
ARTICLE 2. DEFINITONS
For purposes of this Agreement these terms shall be defined as follows:
(a) KLaws" shall mean any law, statute, rule, regulatin or ordinance.
(b) -Stte Commissions. shall men any stte public utlit commission or state public service
commission wih jurisiction over a rate-reglated Part.
(c) KSubsidiaries" shall mean current and fuure direct and indirect majori-owned subsidiaries of the
Company.
ARTICLE 3. EFFECTIVE DATE
This Agreement shall be efftie as ofthe date set fort abe; provied, however, that in thos juridictions in
which regulatory approvl is required befo the Agme bec effive, the effe date shall be as of
the date of such approval.
ARTICLE 4. CHARGES AND PAYMENT
(a) CHARGES.
Parties shall charge for Administtive servces on the following basis:
(i) Direct Charges: The Part receiving the benefi of Administrative Services (KRecipient Part) wRI
be charged for the operating costs incurred by the Part providing the Administrative Services
(Kproviding Part"), including, but not Iimhed to, allocable salary and wages, incentives, paid
absences, payroll taes, payroll addites (insurance premiums, health care and retirement
benefits and the like), direct Iln-labor costs, if any, and similar expenses, and reimbursement of
out-of-pocket third part costs and expenses.
(iQ Service Charges: Costs that are impracticl to charge directly but for which a costlenefi
relationship can be reasonably identified. A practil allocation method will be established by
Providing Part that allocates the cost of this service equftably and consistently to the Recipient
Part. Any changes in the methodology wil be communicated in writing to rate-regulated
subsidiaries at least 180 days before the implementation of the change.
(iii) Allotions: Costs incurred for the general benefi of the entire corprate group for which. direct
charging and service charges are not practical. An alloation methodology will be established
and used consistently from year to year. Any changes to the methodology wil be communicated
Page 2
in wrRing to rate-regulated subsidiaries at least 180 days before the implementation of the
change.
The charges constnute full compensation to the Providing Part for all charges, costs and expenses
incurred by the Providing Part on behalf of the Recipient Part in providing the Administrative Services,
unless otherwise specificlly agreed to in wrRing between the Parties.
If events or circumstances arise which, in the opinion of the Parties, render the costs of providing any
Administrative Services materially difrent from those charged under a specific rate or formula then in
effect, the specifc rate or formulas shall be equitably adjusted to take into account such events or changed
circumstances.
Providing Parties wil bil each and all Recipient Parties, as appropriate, for Administrative Services
rendered under this Agreement in as specifc a manner as practicable. To the extent that direct charging
for services rendered is not practicable, the Providing Part may utilze allocation methodologies to assign
charges for services rendered to the Recipient Part, reflective of the drivers of such costs. Such
allocatin methodologies may utilize allocation bases that include, but are not limited to: employee labor,
employee counts, assets, and multi-factor allocation formulae.
Any cost allocation methodology for the assignment of corporate and affliate costs wil comply wit the
following principles:
i) For Administrative Services rendered to a rate-regulated subsidiary of the Compny or each
cost category subject to allocation to rate-regulated subsidiaries by the Company, the
Company must be able to demonstrate that such service or cost category is reasonable for the
rate-regulated subsidiary for the perfrmance of its regulated operations, is not duplicative of
Administrative Services already being perfrmed within the rate-regulated subsidiary, and is
reasonable and prudent.
ii) The Company and Providing Parties will have in place positive time reporting systems
adequate to support the allocation and assignment of costs of executives and other relevant
personnel to Recipient Parties.
iii) Partes must maintain records suffcient to specifcally identif costs subject to allocation,
particularly wih respect to their origin. In addRion, the records must be adequately supported
in a manner sufficient to justify recovery of the costs in rates of rate-regulated subsidiaries.
iv) It is the responsibilit of rate-regulated Recipient Parties to this Agreement to ensure that costs
which would have been denied recovery in rates had such costs been directly incurred by the
regulated operation are appropriately identifed and segregated in the books of the regulated
. operatin.
(b) PAYMENT.
(i) Each Providing Part shall bil the Recipient Part monthly for all charges pursuant to
this Agreement via billngs to the Company. The Company, in it caacit as a clearinghouse for
Page 3
intercompany charges wRhin the Coß1any shall aggregate all charges and bill. all Recipient Parties in a
single bil. Full payment to or by the Compny for all Administratie serves shall be made by the end of
the calendar month following the intercompany charge. Charges shall be supported by reaonable
documentation, which may be maintained in eletrnic form.
(ii) The Parties shall make adjustmnts to charges as required to reflct the discovery of
errors or omissions or changes in the charges. The Partes shall conduct a true-up process at least
quarterf and more frequently ifnecessry to adjust charges based on recnciliation of amounts charged
and costs incurred. R is the intent of the Parties that such true-up process wil be conducted using
substantially the same process, procedures and methods of review as have been in effct prior to
execution of this Agreement by the Parties.
ARTICLE 5. GENERAL OBLIGTIONS; STANDARD OF CARE
Rate-regulated Parties wil cOß11y with all applible Stte and Federal Laws regarding affliated interest
transactions, including timely flUng of applictions and reprt. The Parties agree not to cross~subsidize
between the rate-regulated and non-rate-regulated busineses or between any rate-regulated businesses,
and shall comply wih any applicable State Commission Laws and orders. Subject to the terms of this
Agreement, the Parties shall perfrm their obligations hereunder in a commrcially reasonable manner.
ARTICLE 6. TAXES
Each Part shall bear all taxes, duties and other similar charges except taxes based upon it gross income
(and any related interest and penaRies), imposed as a result of it receipt of Administrative Services under
this Agreement, including wRhout limitation sale, use, and value-added taes.
ARTICLE 7. ACCOUNTING AND AUDITNG
Providing Parties and the Company shall maintàinsuch books and records as are necessary to support the
charges for Administrative Services, in sufient detail as may be necessary to enable the Parties to satisfy
applicable regulatory requirements ("Records"). All Parties:
(a) shall provide access to the Records at all reasonable times;
(b) shall maintain the Records in accordance with good record management practices and with at
least the same degree of completeness, accuracy and care as it maintains for its own records; and
(c) shall maintain it own accounting records, separate from the other Part's accounting recrds.
Subject to the provisions of this Agreement, Records supporting intercompny billngs shall be available for
inspection and copying by any qualifed representative or agent of either Part or it affliates, at the
expense of the inquiring Part. In additn, Stte Commission staff or agents may audit the accounting
recrds of Providing Parties that form the basis for charges to rate-regulated subsidiaries, to determine the
reasonableness of alloction factors used by the Providing Part to assign costs to the Recipient Party and
amounts subject to allocation or direct charges. All Parties agree to cooperate tully with such audits.
Page 4
ARTICLE 8. BUDGETNG
In advance of each budget year, Providing Parties shall prepare and deliver to the Recipient Parties, for
their review and approval, a proposed budget for Administrative Service to be penormed during that year.
The approved schedule of budgeted Administrative Services shall evidence. the base level of
Administrative Services. The schedule shall be updated at leat annually. Each Part shall promptly notif
the other Part in wrfting of any requested material change to the budget costs for any service being
provided.
ARTICLE 9. COOPERATION WITH OTHERS
The Parties wil use good tafth effrts to cooperate wfth each other in all matters relating to the provision
and receipt of Administrative Services. Such good tafth coperatin wil include providing electronic access
in the same manner as provided other vendors and contractors to systems used in connection wfth
Administrative Services and using commercially reasonable effrt to obtain all consents, licenses,
sublicenses or approvals necesary to permit each Part to penorm its obligations. Each Part shall make
available to the other Part any information required or reasonably requested by the other Part regarding
the penormance of any Administrative Service and shall be responsible for timely providing that information
and for the accuracy and completenes of that informtion; provided, however, that a Part shall not be
liable for not providing any information that is subject to a confientialit obligation owed by it to a person or
regulatory body other than an affliate of it or the other Part. Either Part shall not be liable for any
impairment of any Administrative Service caused by it not receiving information, efther timely or at all, or by
it receiving inaccurate or incomplete information from the other Part that is required or reasonably
requested regarding that Administrative Service. The Parties wil cooperate with each other in making such
information available as needed in the event of any and all internal. or external audits, utilit regulatory
proceedings, legal actions or dispute resolution. Each Part shall fully cooperate and cordinate wit each
other's erTloyees and contractors who may be awarded other work. The Partes shall not commit or permft
any act, which wil interfere with the penormance of or receipt of Administrative Services by either Part's
employees or contractors.
ARTICLE 10. COMPLIANCE WIT ALL LAWS
Each Part shall be responsible for (i) it compliance with all laws and governmental regulations affcting
it business, including but not limfted to, laws and governmental regulations governing federal and state
affliate transactions, workers' compensation, healt, safety and securit, and (iO any use it may make of
the Admiistrative Services to asist it in complying with such laws and governmental regulations.
ARTICLE 11. L1MrrATIONOFLlABILIT
Notwithstanding any other provision of this Agreement and except for (a) rights provided under Aricle 12 in
connection with Third-Part Claims, (b) direct or actual damages as a resutt of a breach of this Agreement,
and (c) liabilit caused by a Part's negligence or wilful misconduct, no Part nor their respectie directors,
offers, employees and agents, wil have any liabilit to any other Part, or their respective directors,
offers, employees and agents, whether based on contract, warranty, tort, strict liabilit, or any other
theory, for any indirect, incidental, consequential, special damages, and no Part, as a result of providing a
Service pursuant to this Agreement, shall be liable to any other Part for more than the cost of the
Administrative Service(s) related to the claim or damage.
PageS
ARTICLE 12. INDEMNIFICATION
Each of the Parties will indemnif, defend, and hold harmss each other Part, members of it Board of
Directors. offers, employees and agents against and frm any third-part claims resulting from any
negligence or willfl misonduct of a Part's employee, agents. representatives or subcntractors of any
tier, their employees, agents or representatives in the penormance or nonpenormnce of it obligations
under this Agreement or in any way related to this Agreement. If a Third-Part claim arising out of or in
connection wKh this Agreement result from negligence of multiple Parties (including their employees,
agents, suppliers and subcontractors), each Part wil bear liabilit wKh respect to the Third-Part Claim in
proportion to it own negligence.
ARTICLE 13. OISPUTERESOLUTION
The Parties shall promptl resolve any conflic arising under this Agreement and such reslution shall be
final. If applicable. adjustments to the charges wil be made as required to reflect the discovery of errors or
omissions in the charges. If the Partie are unab to relve an serve, penormnce or budget isues or if
there is a materil breach of this Agreement tht has not been corred wiin ninety (90) days, representatives
of th affted Parts will meet prorJtly to review and reslve thos isues in god fait.
ARTICLE 14. TERMINATION FOR CONVENIENCE
A Part may terminate it participation in this Agreement either with respect to all, or wih respect to any
one or more, of the Administrative Services provided hereunder at any time and from time to time, for any
reason or no reason, by givng notice of termination at least six (60) days in advance ofthe effective date
of the termination to enable the other Part to adjust its available staffng and facilities. In the event of any
termination wit respect to one or more, but less than all, Administrative Services, this Agreement shall
continue in full force and effect wih respect to any Administrative Services not terminated hereby. If this
Agreement is terminated in. whole or in part. the Parties wil cooperate in good faith with each other in all
reasonable respects in order to efft an effcient transition and to minimize the disruption to the busines
of all Parties, including the asignment or transfer of the rights and obligations under any contracts.
Transitional assistance service shall include organizing and delivering records and docments necessary
to allow continuation of the Administrative Services, including deliering such materials in electronic forms
and versions as reasonably requested by the Part.
ARICLE 15. CONRDNTIA INfQRMATIONlONDISCLOSURE
To the fullest extent allowed by law, the provision of any Administratie Service or reimbursement for any
Administrative Service provided pursuant to this Agreement shall not operate to impair or waive any
privilege available to eKher Part in connection wKh the Adminisrative Service, it provision or
reimbursement for the Administratie Service.
All Parties will maintain in confience Confiential Informtion provided to each other in connection with this
Agreement and wil use the Confidential Information solely for the purpose of carrying out it obligations
under this Agreement. The term Confientil Informtin mens any oral or wren informtin, (incluing
wiut limitin, comper programs, coe, macro or insttions) which is made available to the CofTny, it
Page 6
Subsidiaries or one of it representaties, regardles of the manner in which such informn is furnished.
Confiential Information als includes the foRowing:
a. All Informtion regarding the Administrative Services, including, but not limied to, prie, costs,
methods of operation and softare, shall be maintained in confidence.
b. Systems used to perfrm the Administrative Services provided hereunder are confiential and
proprietary to the Company, Rs Subsidiaries or third parties. Both Parties shall treatthese systems and all
related procedures and documentation as confiential and proprietary to the Company, it Subsidiaries or
it third part vendors.
c. All systems, procedures and related rntenals provided to eRher Part are for Rs internal use
only and only as related to the Administrative Services or any of the underlying systems used to provide
the Administrative Services.
NotRhstanding anyhing in this Arle 15 to the contrary, the term "Confientil Informtin" does not inclu
any informtion which (0 at the time of dislosure is generally availabl to and known by the pubric (other than as
a resutt of an unpermited dislosure mae direc or indirec by a Part), (iO was available to a Part on a non.
confidentl basis frm another sourc (provided that such source is not or was not bound by a confientilit
agreement wit a Part or had any other dut of confientli to a Part), or (ii~ has ben independent
acquired or develed wiout vilating any of the obligatins under this Agreement.
The Pares shall use go faith effrt at the terminatn or exiratin of this Agreement to ensure tht all user
acces and passwords are cancelled.
All Confiential Information supplied or developed by a Part shall be and remain the sole and exclusive
propert of the Part who supplied or developed R.
ARTICLE 16. PERMrrED DISCLOSURE
Notwithstanding provisions of this Agreement to the contrary, each Part may disclose Confientil
Information (i) to the extent required by a State Commission, a court of competent jurisdiction or other
governmental authorit or otherwise as required by law, including without limittion disclosure obligatins
impsed under the federal securities laws, provided that such Part has given the other Part poor notice
of such requirement when legally permissible to permit the other Part to take such legal action to prevent
the disclosure as it deems reasonable, appropriate or necessary, or (ii) on a -need-to-know" basis under
an obligation of confientialit to it consultnts, legal counsel, affliates, accountants, banks and other
financing sources and their advisors.
ART~LE 17. SUBCONTRACTORS
To the extent provided herein, the Parties shall be fully responsible for the acts or omissions of any
subcontractors of any tier and of all persons employed by such subcontractors and shall maintain complete
Page 7
control over all such subcontractors. It being undersod and agreed that not anything contained herein
shall be deemed to create any contrctual relation between the subcontractor of any tier and the Parties.
ARTICLE 18. NONWAIVER
The failure ofa Part to insist upon or enforce stric perfrmnce of any of the terms. of this Agreement or to
exercise any rights herein shall not be construed as a waiver or relinquishment to any extent of it right to
enforce such terms or rights on any future occasion.
ARTICLE 19. SEVERABILIT
Any provision of this Agreement prohibtted or rendered unenforceable by operation of law shall
be
ineffctive only to the extent of such prohibttion or unenforceabilit wfthout invalidating the remaining
provisions of this Agreement.
ARTICLE 20. ENTIRE AGREEMENTIDOCUMENT INCORPORATED BY REFERENCE
All understandings, representatins, warranties, agreements and any referenced attchments, if any,
existing between the Parties regarding the subject matter hereof are merged into this Agreement, which
fully and completely express the agreement of the Parties whh respect to the subject matter hereof.
ARTICLE 21. OTHER AGREEMENTS
This Agreement does not addres or govern. the Partes' relationship involving: (a) the ta allocation
agreement nor (b) any other relationships not speciflly identifed herein. All such relationships not
addressed or governed by this Agreement will be governed and controlled by a separate agreement or
tarif specifally addresing and goerning those relationships or by applicable Laws or orders.
PageS
Thi Agrment has be duly execut on behal of th Pares as fo:
PtDAMCA ENERGY HOGS COMPANBy~
Patrick J. Goodman
Til Sr. Vice President &
Chief Financial Officer
-:::~
Brian K. Hankel
Tde: Vice President & Treasurer
WNHO LLC. b )By~~~
Brian K. Hankel
r~: Vice President & Treasurer
KR HO, LLCBy~
Patrick J. Goodman
Tde: Vice President & Treasurer
CE ELECTC UK FUNDING COANBy~
Patrick J. Goodman
r~: Director
CAf1KJ~By~
Brian K. Hankel
T~: Vice President & Treasurer
CE CASECN WATER AND ENERY coANY,~~:J
Brian K. Hankel
Til Vice President & Treasurer
Thomas B. pecketer
T~: Vice President & Controller
Page 9
Appendix A
December 31, 2010 Afilated Interest Report
Oregon Public Utity Commission orders approving transactons with aßUiates
Affliate Order No. Docket No. Date Approved
BNSF Railway Company 07-323 UI269 July 27, 2007
10-090 UI292 March 11, 2010
10-089 UI293 March 11,2010
09-504 UI288 December 28, 2009
Hendr Wire & Cable Corp. (a Maron Holdings,Filed for approval in 2011.
Inc. company)Have not received approval yet.
Maron Utility LLC (a Maron Holdings, Inc.Filed for approval in 2011.
company)Have not received approval yet.
The Kerite Company (a Maron Holdings, Inc.10-409 UI303 October 18,2010
company)
Wells Fargo & Company 08-165 UI277 March 12, 2008
Nalco Holdings Company 10-346 UI299 September 2, 2010
MidAerican Energy Holdings Company 06-305 UI249 June 19,2006
MidAerican Energy Company 06-305 UI249 June 19,2006
CalEnergy Generation Operating Company 06-305 UI249 June 19,2006
MidAmerican Funding, LLC 06-305 UI249 June 19, 2006
CE Electrc UK Funding Company 06-305 UI249 June 19,2006
HomeServices of America, Inc.11-053 UI304 Febru 11,2011
08-165 UI277 March 12, 2008
06-305 UI249 June 19,2006
Kern River Gas Transmission Company 09-503 UI 255 (1)December 28, 2009
06-683 UI255 December 26, 2006
06-305 UI249 June 19, 2006
MidAerican Energy Holdings Company Insurance 06-498 UI253 August 24, 2006
Services Ltd.
PPW Holdings LLC 06-305 UI249 June 19,2006
.
Affiiate Order No. Docket No. Date Approved
PacifiCorp Foundation 04-028 UI223 Janua 15,2004
Energy West Mining Company 91-513 UI 105 April 12, 1991
Interwest Mining Company 09-261 UI286 July 7, 2009
PacifiCorp Environmental Remediation Company 03-664 UI220 November 18,2003
Pacific Minerals, Inc. (Umbrella Loan Agreement)06-353 UI 1 (11)July 7, 2006
Bridger Coal Company 01-472 UI 189 June 12, 2001
Trapper Mining Inc.94-1550 UI 140 October 12,1994
Huntington Cleveland Irrgation Company 10-353 UI300 September 10,2010
Ferron Canal & Reservoir Company 10-345 UI 301 September 2, 2010