20200710Notice of Affiliate Transaction-Redacted.pdf

CONFIDENTIAL
REDACTED RECEIVED
2020July 101174 Otil
IDAHO PUBLIC
UTILITIES COMMISSION
YPACITIEORP
Timothy K. Clark
Senior Attorney
1407 W. North Temple, Suite 320
Salt Lske Ci$, aT 84116
801-2204565 Ollice
T im. C I ar k@r ac ift c orp. c o m
June29,2020
Idaho Public Utilities Commission
I1331 W. Chinden Blvd
Building 8 Suite 20lA
Boise,lD 83714
Attention:Diane Hanian
Commission Secretary
PacifiCorp Notice of Affiliate Transaction
Case No. PAC-E-05-8
Dear Ms. Hanian:
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),
PacifiCorp hereby provides notice of an affiliated interest transaction with BHE Wind, LLC
(..BHEWind,,)roritrepurchaseoffworthofwindturbineequipmentfor
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.
Re
Idaho Public Utilities Commission
June29,2020
Page2
CONFIDENTIAL
REDACTED
Vestas Vl l0 60heriz2.0-2.2MW will be transferred from BHE Wind to
PacifiCorp priced at BHE Wind's cost Based on PacifiCorp's experience in
soliciting proposals for wind turbine agreements,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 BIIE 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,
-7,;*- K ft^/--d
Timothy K. Clark
Senior Attorney
PacifiCorp
Enclosures
2
CONT'IDENTIAL
ATTACHMENT A
to
PacifiCorp Notice of Affrliate Transaction
THIS ATTACHMENT IS CONFIDENTIAL IN ITS
ENTIRETY AND IS PROVIDED UNDER SEPARATE
COVER