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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 mnrkmnp,wh(iI)rniiirwnrn. inm 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 Page 1 of 2 -- — — 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 Page 2of 2