20120217Notice of Affiliate Transaction.pdf

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Mark C Moenclì'
Senior Vice President and General Counsel
201 S. Main Street, Suite 2400
Salt Lake Cït, UT 84111
801-220-459 Offce
801-220-4058 Fax
mark.moench(§acificorp.com
~~l!f9!,RECEIVED
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Februar 16,2012
VL OVERNIGHT DELIVERY
Idaho Public Utilties Commssion
472 West Washigton
Boise, il 83702-5983
Attention: Jean D. Jewell
Commission Secreta
Re: PacifiCorp Notice of Affliate Trasaction
Case No. PAC-E-05-8
Dear Ms. Jewell:
Ths letter will serve as notice pursuat to Commitment I 17(2), incorporated in the
Idaho Public Utilties Commission Order No. 29973 issued Februar 13, 2006, as supplementtd
by Order No. 29998 March 14, 2006, in the above-referenced proceeding, approving the
acquisition ofPacifiCorp by MidAerican Energy Holdings Company ("MEHC"), of an afliate
interest traction. Rocky Mounta Power hereby submits an originl and seven copies of the
Invoice from Maron/eystone LLC, for the purchase of certin specialized pipe used for
developing physical therapy apparatus for determinig lineman fitness for duty afer injures. A
copy of the Invoice is included as Attchment A.
PacifiCorp . is an indirect wholly-owned subsidiar of MidAerican Energy Holdings
Company (MEHC). MEHC is a wholly-owned subsidiar of Berkshire Hathaway, Inc
(Berkshire). Berkshi curently holds an approximate 64 percent interest in the Maron Group.
The Maron Group consists of approximately 140 companes, divided into eleven business
sectors including engineered wire and cable, industral products and building wie.
Maron/eystone LLC is a member of the Maron Group. Therefore, Berkshie's ownership
interest in the Manon Group may create an afliated interest in some PacifiCorp jursdictions.
Maron/eystone LLC distrbutes specialty pipe and tubing, including, among other
things, carbon steel, stanless steel, and aluminum and alloy tubular products. Among the items
distrbuted by Maron/eystone LLC is a carbon steel pipe that the Company uses to make
climbing poles for physical therapy offces used by linemen to determine fitness for duty
followig treatment for injures. The Company developed fitness for duty tests and will be
incorporating those tests in physical therapy offices treating Company linemen in five states. One
of these tests involves pole climbing. Because the testing taes place indoors, a pole made of
lightweight material is needed to safely attch to walls. The lead safetY consultat for the
development of th$ lineman rehabilitation program researched varous companes and
Idaho Public Utilties Commission
Febru 16,2012
Page 2
determined that Maron/eystone LLC was the only company offerig a product to suit the
needs of the lineman rehabiltation program. The Company has the pipes shipped to a welder in
Salt Lake City, Uta who then modifies the pipes to resemble utilty poles. Once completed, the
poles are sent to physical therapy offces.
A recent review of Company records indicated that PacifiCorp began purchasing pipes
frm Maron/eystone LLC in 2009 and has purchased two to thee pipes per year at
approximately $209 to $354 per pipe. The Company has reviewed its internal processes and
made corrections to ensure that notice is provided consistent with statutory requirements and the
merger commitments. The Company intends to continue to purchae two to three pipes per year
in ths price range until the development of the lineman rehabilitation progr is complete.
Puchasing the pipes is in the public interest because the pipes are a key component in the
Company's lineman rehabiltation program. Rehabiltating injured linemen. is critical for
maintanig a healthy and capable workforce to ensure the continued provision of safe and
reliable electrc service.
The Company is providing a copy of the most recent invoice from Maron/eystone
LLC. Other invoices can be provided if desired.
Please do not hesitate to contat me if you have any questions.
Sincerely,
ß(~f6.~
Mark C. Moench
Senior Vice President and General Counsel
Rocky Mounta Power
Enclosurs
(Page 1 of 1)
Marmon/Keystone CorporationTH PI AN TUNG PE
Inv#: 50-645056
Sold by:
MAON/KEYSTONE -
1230 South Swaner
Salt Lake Cìty UT
TEL [phone]
SALT LAKE CITY 50
Rd
84104
FAX ( 801) 973 6915
Date: 12/19/2011
Remit to: Due: 111812012
MAON/KEYSTONE LLC
P.O. Box 96657
.'. .. .
Sold To: 2684
PACIFICORP
P.O. BOX 3040
PORTLA OR 97208-3040
Shipped To: (01)
COMPLEX FABRICATORS
1620 SOUT AWL CIRCLE
(FOR ROCKY MTN POWER)
SALT LAE CITY UT 84104
Ship Date Order Date SO Terms
12/19/2011 12/19/2011 5056989 1/2% 10/NET 30
Frt: FREIGHT INCLUDEDVi a; OUR TRUCK Em DEST
Cust Order #
FFDE-12860
Account Manager I Sa 1 esperson
RICK ZIELINSI
RYAN AUBREY
aIL:
1 CA WED PIPE A5 "*
10.750 x .188 6' 9"
1 PeS
6 FT 9 IN
. 1 PC ~ 317.00 IPC
143 ll
317 .00
ENERGY SURCHARGE 14.39 LOT 14.39
Hateri a 1 Process i n9317.00 .00
143 LBS
Freight
.00
PAGE. :
Other
14.39
Discount:
Taxes . Totl Due22.70 354.09
1.65 if paid by 12/29/2011
Su to the Coitns of sa se fort on the rers side her.