20200629Notice of Affiliate Transaction-Pryor Follow-Redacted.pdf

June 29, 2020

Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 201A
Boise, ID 83714

Attention: Diane Hanian
Commission Secretary

Re: PacifiCorp Notice of Affiliate Transaction
Case No. PAC-E-05-8

Dear Ms. Hanian:

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),
PacifiCorp hereby provides notice of an affiliated interest transaction with BHE Wind, LLC
(“BHE Wind”) for the purchase of $ worth of wind turbine equipment for
PacifiCorp’s Pryor Mountain wind facility (the Wind Project). A copy of the Purchase and Sale
Agreement (the “Agreement”) is included with this Notice as Confidential Attachment A. The
Agreement contains sensitive and confidential pricing and cost information which, if disclosed to
the public, could erode the Company’s ability to bargain with vendors in the future.

PacifiCorp is a wholly-owned subsidiary of Berkshire Hathaway Energy Company
(“BHE”). BHE Renewables, LLC (“BHER”) is also a wholly-owned subsidiary of BHE. BHE
Wind is a wholly owned subsidiary of BHER. Therefore, BHE’s ownership interest in
PacifiCorp and BHER creates an affiliate interest relationship between PacifiCorp and BHE
Wind.

Based in Phoenix, Arizona, BHE Wind owns solar, wind, geothermal, and hydroelectric
projects that produce energy for both the wholesale market and for customers under long-term
power agreements. BHE Wind is transferring certain wind turbine equipment to PacifiCorp for
use in its Wind Project.

Timothy K. Clark
Senior Attorney
1407 W. North Temple, Suite 320
Salt Lake City, UT 84116
801-220-4565 Office
[e-mail]

RECEIVED
2020 June 2, PM 3:49
IDAHO PUBLIC
UTILITIES COMMISSION
Idaho Public Utilities Commission
June 29, 2020
Page 2

2

Vestas V110 60 hertz 2.0-2.2MW equipment will be transferred from BHE Wind to
PacifiCorp priced at BHE Wind’s cost of . Based on PacifiCorp’s experience in
soliciting proposals for wind turbine supply agreements, the Company was seeing limited supply
and price volatility and there were concerns regarding the ability of suppliers to meet the needs
and supply the entire project within the short time frame available for PTC qualification.
PacifiCorp had an opportunity to acquire these turbines from BHE Wind at cost. This transaction
supports the cost effectiveness and deliverability for the Pryor Mountain facility for the benefit
of customers.

Please do not hesitate to contact me if you have any questions.

Sincerely,
Timothy K. Clark
Senior Attorney
PacifiCorp

Enclosures

CONFIDENTIAL

ATTACHMENT A

to

PacifiCorp Notice of Affiliate Transaction

THIS ATTACHMENT IS CONFIDENTIAL IN ITS
ENTIRETY AND IS PROVIDED UNDER SEPARATE
COVER