20161005Notice of Affiliate Transaction CONFIDENTIAL.pdf

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1407 W. North Temple, Suite 320
October 5, 2016
Idaho Public Utilities Commission
4 72 West Washington
Boise, ID 83702-5983
Attention: Jean D. Jewell
Commission Secretary
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jeff.richard0acijicorp.com
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 (now "Berkshire Hathaway Energy
Company" or "BHE"), of an affiliated interest transaction with Kern River Gas Transportation
Company ("Kern River"), specifically a new general electric service agreement between the
parties (the "Agreement"). A copy of the Confidential Agreement is included with this Notice as
Confidential Attachment A.
PacifiCorp and Kern River are both wholly-owned, indirect subsidiaries of Berkshire
Hathaway Energy Company ("BHE"). Therefore, BHE's ownership interest in PacifiCorp and
Kern River creates an affiliated interest relationship between PacifiCorp and Kern River in some
PacifiCorp jurisdictions.
Kern River is a natural gas transportation pipeline company that owns and operates the
Kern River pipeline system. Kern River operates a facility near Almy, Wyoming, at which it has
historically received electric service from the Company pursuant to a "deduct arrangement."
Under a deduct arrangement, the Company measures the power provided to a third party
facility's owner, and Kern River's electric load is metered and then deducted from the facilities
owner's load. The deduct arrangement is sometimes used for rural facilities.
Facilities are currently planned for construction which would obviate the need for the
deduct arrangement. The parties now wish to terminate the deduct arrangement and replace it
with a more traditional electric service agreement. Accordingly, Kern River and the Company
are entering into the Agreement, which includes construction of new electric facilities at Kern
River's expense, to ensure long-term permanent power to Kern River's facilities.
Jean D. Jewell
Notice of Affiliate Transaction
October 5, 2016
Kern River will pay PacifiCorp approximately $13,964.94 for the construction of the
facilities, and will pay a contract minimum billing for five years after service begins under the
new agreement. Entering into the Agreement will allow PacifiCorp to continue to provide Kern
River with reliable service at standard tariff rates, and is in the public interest.
PacifiCorp requests confidential treatment because the attachment contains commercially
sensitive pricing information and critical infrastructure information that could expose the
Company and Kern River 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.
Best Regards,
R. Jeff Richards
Vice President and General Counsel
PacifiCorp
Enclosures
CONFIDENTIAL
IDAHO AFFILIATED INTEREST FILING
ATTACHMENT A
This attachment is confidential in its entirety and will be provided under separate cover.