The URL can be used to link to this page

Home My WebLink About20171011Notice of Affiliate Transaction.pdf:rl i* i I i.: i t,'il" l") YPacrnCoRP R. Jelf Richards- -,Vice President and General Counsel'tlOZ W. North Temple, Suite 320 Salt Lake City, UT 841I6 ' 801-220-4734 OfJice j efJ r i c h ar ds@1t a c ifi c o rp. c o m i1'-'.-- October 11,2017 Idaho Public Utilities Commission 472 West Washington Boise,ID 83702-5983 Attention: Diane Hanian Commission Secretary PacifiCorp Notice of Affiliate Transaction Case No. PAC-E-05-8 Dear Ms. Hanian: This letter will serve as notice pursuant to Commitment I l7(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 affiliate interest transaction with Bridger Coal Company ("BCC"). The transaction is the rental by PacifiCorp to BCC of certain equipment used for moving longwall mining equipment (Sandvik TS-495 Diesel Powered Shield Hauler or Shield Hauler) within the BCC underground mine. A copy of the purchase order between PacifiCorp and BCC for rental of the Shield Hauler is included as Attachment A. BACKGROUND AND TRANSACTION BCC is the primary supplier of coal to the Jim Bridger generating plant located in southwest Wyoming. BCC currently uses longwall coal mining equipment for coal extraction. BCC will use the Shield Hauler for a longwall move within the Bridger underground mine. A shield hauler is used to haul or transport longwall roof shields and other large equipment during normal operations as well as during longwall moves from one panelto another. The transaction agreement was made effective on September 20,2017 . BCC will pay PacifiCorp $161.63 per day to rent the Shield Hauler for approximately 90-120 days. The daily rental rate is determined by the net book value times the average depreciation rate for this class of assets. Additionally, the rental rate includes an estimated recovery of property tax expense for this equipment. All costs for transportation, operating costs and equipment repairs are the obligation of BCC. Re Diane Hanian Notice of Affiliate Transaction October ll,20l7 AFFILIATE STATUS AND NOTICE BCC is a joint venture owned 66.67 percent by PacifiCorp through its direct, wholly-owned subsidiary Pacific Minerals, Inc., and 33.33 percent by Idaho Power Company. Therefore, PacifiCorp's ownership interest in BCC via Pacific Minerals, Inc. creates an affiliated interest relationship between the Company and BCC in some PacifiCorp jurisdictions. Transacting with BCC is in the public interest. The transfer will not have a negative effect on PacifiCorp's ability to serve its customers or otherwise affect the public. The Deer Creek mine ceased operations in2015. The Shield Hauler was retained to support the closure of the Deer Creek mine. The Shield Hauler is slated to be disposed of through a public auction at some future date. The Shield Hauler will be retumed to Deer Creek following the rental period to await disposition. BCC mine personnel became aware of the availability of the Shield Hauler at the Deer Creek mine when evaluating possible alternatives for rental equipment that was not ideally suited to BCC's requirements and specifications and for which the availability of this class of equipment in the rental market is very limited. Please do not hesitate to contact me if you have any questions Best R. Jeff Vice President and General Counsel PacifiCorp Enclosures ATTACHMENT A tlttilx,;titt.r':rU rt!111,\\1 Bridger Coal Company PO Box 68 Point of Rocks, WY 82942 Supplier Pacificorp Po Box 5504 Portland, OR 97228-5504 Ship To: BCC Underground Mine 1088 Nine Mile Road Point of Rocks, WY 82942 Bill To: Attn: Accounts Payable Bridger Coal Company PO Box 68 Point of Rocks, W( 82942 BCCinvoicing@pacifi corp. com Type Standard Purchase Order Purchase Order No. 141451 Revision 0 Date of Revisaon Buyer CustomerAcd. No.suppler No. 1147 PaymentTerre Due Upon Receipt FreightTerms Freight Doesn'T Apply FOB Destination Ship Via SuPPlier Contad Deliver lo BCC Underground Mine Note To Vendor ? Equipment: Sandvik TS-495 Diesel Powered Shield Hauler (Asset #400000206376 or 23-178) ? Term of Lease: Estimated to be about 90 days. o Start: Upon first use of equipment at BCC (estimated lo be 912112017). o End: Upon return of equipment to Huntington, Utah (estimated to be mid-January 2018). ? Rental rate: Daily rate of $161.63? Lessor: PacifiCorp? Lessee: Bridger Coal Company? Lessee responsibility: Repair and operating costs, transportation costs of equipment from / to Huntington ? Business Justification: PacifiCorp owns mining equipment that Bridger Coal Company desires to rent to facilitate the underground longwall move taking place from mid-September 2017 to mid-January 2018. This equipment has been idle since the closure of the Deer Creek Mine. ? Billing: Occurs monthly using the existing process used between PacifiCorp and BCC for cost reimbursement. Date Oct 05, 2017 ofOrder Buyer Andy Puqmire Line Part Number lDescription I loet:very loate otv UOM Unit Price (usD) Tax Total 1 lnexrnl oF SANDVTK TS-495 lDec IDIESEL POWERED SHIELD I lHnur-rn I 31,2017 90 Day $161.63 Y $14,546.70 Total $14,546.70 Proprietary and Confidential 1of 1 Supplier must acknowledge receipt of PO directly to buyer email andy.pugmire@pacificorp.com.