20200901Notice of Affiliate Transaction-Redacted.pdf.pdf

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September 1,2020
Idaho Public Utilities Commission
I1331 W. Chinden Blvd
Building 8 Suite 20lA
Boise,lD 83714
Attention:Jan Noriyuki
Commission Secretary
PacifiCorp Notice of Affiliate Transaction
Case No. PAC-E-05-8
Dear Ms. Noriyuki:
Pursuant to Commitmentl 17(2), incorporated in the Idaho Public Utilities Commission
OrderNo. 29973, issued February 13,2006, as supplemented by OrderNo.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 affiliate interest transactions with FlightSafety
International, Inc. (FlightSafety) to provide unmanned aircraft systems training and certification
services. Copies of the Master Professional Services Contract between Berkshire Hathaway
Energy Company and FlightSafety and the affiliate participation letter (Agreement) between the
parties are included as Confidential Attachment A. Attachment A contains commercially-
sensitive information, which if disclosed, could expose PacifiCorp to competitive harm and
cause increased costs. Additionally, PacifiCorp is bound by the Agreement to maintain its
confidentiality.
PacifiCorp is a wholly-owned, indirect subsidiary of Berkshire Hathaway Energy
Company (BHE). BHE is a subsidiary of Berkshire Hathaway,Inc. (Berkshire Hathaway).
FlightSafety is also a subsidiary of Berkshire Hathaway. Therefore, Berkshire Hathaway's
ownership interest in FlightSafety creates an affiliated interest between PacifiCorp and
F lightSafety in some Pac ifi C orp j urisdictions.
FlightSafety offers a variety of aviation training services, including training for pilots,
flight attendants, and customer service workers. PacifiCorp intends to use the flight simulator
training services offered by FlightSafety that is specific to the navigation system used in
PacifiCorp's aircraft. PacifiCorp owns aircraft used for its operations and employs pilots to fly
the aircraft. The Federal Aviation Administration (FAA) requires that all pilots take flight
simulator training at least once per year, and BHE requires pilots to take training every nine
Re
ldaho Public Utilities Commission
September 1,2020
Page2
CONF!DENTIAL
REDACTED
months. PacifiCorp's aircraft uses a specific navigation system on which FlightSafety offers the
required training. BHE issued an aggregate competitive tender seeking proposals for pilot
training services. The services are to include the provision of initial, recurrent ground school and
simulator training on Garmin navigation system, testing, and checking for the FAA, Flight
Inspection Services pilots in aircraft types, hours specified, suppliers, services, and processes in
accordance with Title 14 Code of Federal Regulations (CFR) Part 61,135, and 142. FlightSafety
proved the sole bidder to respond. PacifiCorp expects to pay FlightSafety approximately
I for the training it is to provide. See Attachment A (and specifically, Exhibit B thereto)
for the pricing schedule.
Transacting with FlightSafety is in the public interest. PacifiCorp uses its aircraft for a
variety of purposes, including transporting personnel throughout its six states in emergency
situations and to transport personnel to conduct ordinary-course utility business if doing so is
more cost-effective than commercial flights. The pilots on staff must take at least one to two
trainings per year to meet FAA and BHE safety requirements. Because FlightSafety is the only
service provider that offers training on the navigation system installed in PacifiCorp's aircraft, it
is essential for PacifiCorp to transact with FlightSafety.
Please do not hesitate to contact me if you have any questions.
Sincerely
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Timothy K. Clark
Senior Attorney
PacifiCorp
Enclosures
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