20160928Notice of Affiliate Transaction CONFIDENTIAL.pdf

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September 28, 2016
VIA OVERNIGHT DELIVERY
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:
R. Jeff Richards
Vice President and General Counsel
1407 W. North Temple, Suite 320
Salt Lake City, UT 84116
801-220-4734 Office
jeff. [e-mail]
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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 (now "Berkshire
Hathaway Energy Company" or "BHE"), of ongoing ordinary course affiliated interest
transactions from time to time with Environment One Corp., a wholly-owned indirect subsidiary
of Precision Castparts Company (Environment One).
PacifiCorp is a wholly-owned indirect subsidiary of Berkshire Hathaway Energy Company.
BHE is a subsidiary of Berkshire Hathaway Inc. On January 29, 2016, Berkshire Hathaway Inc.
completed its acquisition of Precision Castparts Company, causing it, and its subsidiaries
including Environment One, to become new affiliates of PacifiCorp. Therefore, Berkshire
Hathaway, lnc.'s ownership interest in BHE and Environment One may create an affiliated
interest relationship between PacifiCorp and Environment One in some PacifiCorp jurisdictions.
Environment One provides PacifiCorp with certain mechanical parts, supplies and services used
by PacifiCorp 's large thermal generation plants, including vacuum pumps, cloud chamber
assemblies and collector analysis, cleaning and repair. PacifiCorp purchased such mechanical
parts, supplies and services from Environment One before Berkshire Hathaway Inc. acquired
Precision Castparts Company, and desires to continue using Environment One as one of its
generation parts and services suppliers. The parts and services are purchased from time to time
via standard PacifiCorp purchase orders, in the same manner as other supplies purchased via
PacifiCorp's procurement department. Instances of such purchase orders are attached hereto as
Attachment A (the Agreement). Purchase order transactions are done by PacifiCorp under this
Agreement. Environment One is one of the only entities which can provide these parts and
services at reasonable prices.
PacifiCorp purchases the parts and services from Environment One as needed from time to time,
to use in its fleet of generation plants. As such, there is no set dollar amount of such purchases,
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Jean D. Jewell
Notice of Affiliate Transaction
September 28, 2016
but PacifiCorp has historically purchased approximately $110,000 of Environment Once parts
and services on average per year, and anticipates future purchase levels will be similar.
In addition, PacifiCorp recently discovered that it had purchased approximately $56,452 of parts
and services from Environment One since January 29, 2016 under the above-described pre­
existing vendor relationship. Environment One was not initially flagged as an affiliate in
PacifiCorp's affiliate tracking systems due to a naming convention issue in the software, which
has now been remedied, and additional compliance checks have been run with respect to
Precision Castparts Company and its voluminous subsidiaries.
The Agreement contains standard commercial sales terms and conditions to protect the
Company's ability to provide safe and reliable service. Thus, the continuation of the purchase
transactions under the Agreement will not harm the public interest.
PacifiCorp requests confidential treatment because the attachment contains commercially
sensitive pricing information that could expose the Company and Environment One to
competitive injury if disclosure is unrestricted. Therefore, the Company requests confidential
treatment of the Agreement.
Please do not hesitate to contact me if you have any questions.
Vice President and General Counsel
Rocky Mountain Power
Enclosures
CONFIDENTIAL
IDAHO AFFILIATED INTEREST FILING
ATTACHMENT A
This attachment is confidential in its entirety and will be provided under separate cover.