20180703Notice of Affiliate Transaction.pdf

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July 3, 2018
Idaho Public Utilities Commission
472West Washington
Boise,lD 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 l7(2), incorporated in the Idaho
PublicUtilitiesCommissionOrderNo.299T3 issuedFebruary 13,2006,assupplementedbyOrder
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 The Bank of New York
Mellon Trust Company, N.A. ("BNY Mellon"). PacifiCorp intends to engage BNY Mellon as
trustee and underwriter for an upcoming First Mortgage Bond issuance tentatively scheduled for
July 2018. PacifiCorp solicited underwriting proposals from a number of sources. Several banks
responded, including BNY Mellon. The Company selected BNY Mellon as one of the co-manager
underwriters for this bond offering. The selection of BNY Mellon was not influenced by Berkshire
Hathaway' s ownership interest.
PacifiCorp is a wholly-owned, indirect subsidiary of Berkshire Hathaway Energy Company
("BHE"). BHE is a subsidiary of Berkshire Hathaway, Inc ("Berkshire Hathaway"). Warren E.
Buffet (an individual who may be deemed to control Berkshire Hathaway), Berkshire Hathaway,
various subsidiaries of Berkshire Hathaway and various employee benefit plans of Berkshire
Hathaway subsidiaries together held an interest in excess of five percent in BNY Mellon.
Therefore, Berkshire Hathaway's ownership interest in BNY Mellon may create an affiliated
interest in some PacifiCorp jurisdictions.
As a public utility, the Company is expected to acquire, construct, improve, and maintain sufficient
utility facilities to serve its customers adequately and reliably at reasonable cost. Issuance of Bonds
are part of a program to finance the Company's facilities taking into consideration prudent capital
ratios, earning coverage tests and market uncertainties as to the relative merits of the various types
of securities the Company could sell. Accordingly, the transaction to which BNY Mellon will be
a party, is consistent with the public interest.
Re:
Diane Hanian
Notice of Affiliate Transaction
July 3, 2018
Please do not hesitate to contact me if you have any questions.
Best Regards,
R. Jeff Richards
Vice President and General Counsel
PacifiCorp
Enclosures