HomeMy WebLinkAbout20120406Notice of Affiliate Transaction.pdfRECEIVED
• -1 ç'jgMOUNTAIN
POWER 2012 APR -6 AM 10: 24
DA H3 UTILtT COMMISS!O
April 6, 2012
Mark C Moench
Senior Vice President and General
Counsel
201 S. Main Streea Suite 2400
Salt Lake City, UT 84111
801-220-4459 Office
801-220-4058 Fax
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VIA ELECTRONIC MAIL
AND OVERTJIGHTDELIVERY
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83702-5983
Attention: Jean D. Jewell
Commission Secretary
Re: PacifiCorp Notice of Affiliate Transaction
Case No. PAC-E-05-8
Dear Ms. Jewell:
This letter will serve as notice pursuant to Commitment I 17(2), incorporated in the
Idaho Public Utilities Commission Order No. 29973 issued February 13, 2006, as supplemented
by Order No. 29998 March 14, 2006, in the above-referenced proceeding, approving the
acquisition of PacifiCorp by MidAmerican Energy Holdings Company ("MEHC"), of an affiliate
interest transaction. The Company desires to renew a portion of a previously existing agreement
with International Business Machines ("IBM") to provide software support services for IBM
software licenses purchased in 2008. A copy of the Quote to document this transaction is
included as Attachment A.
PacifiCorp is a wholly-owned indirect subsidiary of MEHC. MEHC is a subsidiary of
Berkshire Hathaway, Inc ("Berkshire Hathaway"). In mid-November 2011, Berkshire Hathaway
publicly announced purchases of IBM common stock totaling greater than a five percent interest.
Therefore, Berkshire Hathaway's ownership interest in IBM may create an affiliated interest in
some PacifiCorp jurisdictions.
In 2008, prior to the existence of the affiliate relationship, the Company contracted with
IBM for the provision of certain software and software support services. Opportunities for
renewal of licensing and support services for individual software periodically arise. The
Company determined that renewal of licensing for the Cognos Impromptu software was needed.
Cognos is used Company-wide as a reporting tool and is designed to allow for configuring and
managing reports. The Company will pay IBM $3,420 for the Cognos Impromptu licenses
during the term of the license, which is from March 30, 2012, through March 31, 2013. This is
based on IBM's "Passport" level pricing, which is a volume discount.
Idaho Public Utility Commission
April 6, 2012
Page 2
The Company relies on software furnished by IBM to create and maintain critical business
records. This software is proprietary to IBM; therefore, only IBM is able to provide service.
Without Cognos, many groups in the Company would not be able to prepare reports necessary
for business functions. Installing a different reporting system would require considerable time
and expense. Accordingly, the transaction is consistent with the public interest.
Please do not hesitate to contact me if you have any questions.
Very Truly,
Mark C. Moench
Senior Vice President and
General Counsel
Rocky Mountain Power
Enclosures
IDAHO AFFILIATED INTEREST FILING
ATTACHMENT A
QUOTE
International Business Machines Corporation
- - -
Internwionallusines., Machiaes Corporation, PC Box 643600,Pitgsbnrgb, PA 15264-3660
IBM Software Quotation
Attn: Mask Speight
Pacificorp
825 NE Multnomah St
Ste 800
PORTLAND OR 97232
UNITED STATES
Passport Advantage Agreement Number: 6355
IBM Customer Number: 6054716
Relationship SVP Level: H
30-Mar-2012
Passport Advantage Site Number: 7020497
Anniversary- 01-Jun
Quotation SVP Level: H
Dear Customer:
Thank you for your inquiry regarding IBM Software.
Any and all prices herein are suggested prices only and are subject to change at fflMs sole discretion. Products listed herein are
subject to withdrawal or modification by IBM at any time at IBM's sole discretion. Final coverage dates for new license, Software
Subscription and Support reinstatement; and Software Subscription and Support renewal part numbers will be based upon IBM's
acceptance of the order, and as specified in the applicable agreements, irrespective of the dates which may appear in this quote.
This quotation is valid from 30-Mar-2012 and will expire on 31-Mar-20 12.
Your order will be governed by and is subject to the terms of your Passport Advantage Agreement or the Passport Advantage
Express Agreement, as applicable, against which this transaction will be placed.
If you need assistance with placing your order or wish to discuss your quotation, please contact the IBM Representative noted
below.
Yours sincerely,
SUZANNE S. WRIGHT
Phone Number 1-720-395-2473
Fax Number:
E-mail Address: sswrightus.ibm.com
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-- — — International Business Machines Corporation
Imernalionpi Business Machines Cosporai1on P0 Box 643600, Pitssbwh, PA 15264-3600
Quotation Number: 15761499
IBM Contact SUZANNE S. WRIGHT Quote Effective Date 30-Mar-2012
Phone Number: 1-720-395-2473 Quote Expiration Date: 31-Mar-20 12
Passport Advantage Agreement Number: 6355
IBM Customer Number: 6054716
Relationship SVP Level: H
Customer:
Attu: Mark Speight
Pacificorp
825 NE Multnomah St
Ste 800
PORTLAND OR 97232
UNITED STATES
Passport Advantage Site Number: 7020497
Anniversary: 01-Jun
Quotation SVP Level: H
Item I PartNumber Quantity I
Points F Unit SVP Price EstendedAmotmt
IBM Caguas Impromptu User Authorized User Llcense+ SW
Subscription & Support 12 Months
001 D074OLL 3 15.21 1,140.00 3,420.00
30-Mar-2012 - 31-Mar-2013
Applicable tax will be recalculated at the t no of order processi ig.
Total Points: 15.21 Subtotal In 1 SD: 3,420.00
Estimated Tax in IL SD: 0.00
Total in I SD: 3,420.00
Your order is governed by and subject to the terms of your Pan ort Advantage Agre tnent or the Passporl Advantage Express
Agreement, as applicable, against which this transaction will be placed.
Useful/Important Web resources:
Passport Advantage information, customer secure site access, training etc.: lbni.com/softwarelpaaspodadvaatage
IBM's International Program License Agreement and product License Information documents: Ibm.coasfsoftware/sla
IBM Software Support Web site: lbm.comlso*ware/aupport
IBM Customer Number: 6054716
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