20180621Notice of Affiliate Transaction.pdf

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R. Jeff Richards
Vice President and General Counsel
U07 W. North Temple, Suite 320
Sqlt Lake CiO, UT 84116
801-220-4734 OfJice
[e-mail]
June2l,2018
Idaho Public Utilities Commission
472West 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 Commitmentl 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 indirect affiliate interest transaction with Amarillo Gear Company
LLC ("Amarillo"). PacifiCorp intends to purchase Amarillo cooling tower gear through EvapTech,
Inc. ("Evap"). The parties to the transaction agreed to use PacifiCorp's standard Materials Supply
Contract ("Agreement") for this transaction. PacifiCorp requests that the Agreement be treated as
confidential because it contains sensitive pricing information which, if disclosed to the public,
could erode the company's bargaining power in the future. A copy of the Agreement is included
as Confidential Attachment A.
PacifiCorp is a wholly-owned, indirect subsidiary of Berkshire Hathaway Energy Company
("BHE"). BHE is a subsidiary of Berkshire Hathaway, Inc. ("Berkshire Hathaway"). Berkshire
currently holds a majority interest in The Marmon Group ("Marmon"). Marmon comprises four
autonomous companies consisting of 15 diverse stand-alone business sectors, and about 185
independent manufacturing and service businesses. Amarillo is part of one of the four such
autonomous companies, Marmon Food, Beverage & Water Technologies Company. Therefore,
Berkshire Hathaway's ownership interest in Marmon creates an affiliated interest between
PacifiCorp and Amarillo in some PacifiCorp jurisdictions. However, while this equipment is made
by Amarillo, PacifiCorp is purchasing it from Evap. Evap is not an affiliate and PacifiCorp is
making this filing out of an abundance of caution.
Re:
Diane Hanian
Notice of Affiliate Transaction
June 21,2018
PacifiCorp recently conducted a request for proposal process to select a vendor to replace cooling
tower equipment at its Huntington Plant. The equipment to be replaced includes I 4 each of cooling
tower gearboxes and shaft assemblies. Of the nine companies who provided a bid in response to
the request for proposal, eight companies included Amarillo equipment in their proposals.
PacifiCorp selected Evap because it submitted the lowest cost bid. The value of all equipment to
be purchased under the Agreement is approximately $333,000. The value of the Amarillo
equipment to be supplied under the Agreement is approximately $301,000. Detailed pricing
information for the equipment to be provided by Evap is contained in Exhibit B to Confidential
Attachment A.
The Company used its standard request for proposal procurement process when seeking a vendor
to equipment as described in the Agreement. The Agreement was prepared in accordance with
PacifiCorp's procurement policies and procedures and contains standard commercial terms and
conditions to protect PacifiCorp's ability to provide safe and reliable service. Thus, the use of Evap
as supplier of the equipment under the Agreement will not harm the public interest.
Please do not hesitate to contact me if you have any questions.
Best Regards,
R. Jeff
Vice President and General Counsel
PacifiCorp
Enclosures
REDACTED
ATTACHMENT A
MATERIALS SUPPLY CONTRACT
THIS ATTACHMENT IS CONFIDENTIAL IN
ITS ENTIRETY AND IS PROVIDED UNDER
SEPARATE COVER