20210903Notice of Affiliate Transaction.pdf

\PacrrrConp tlgff;**.Timothy K Clark
Senior Attorney i
1107 W. Norlh Temple, Suite 320
Salt Loke CiO, AT 84116
801-220-1565 OfJice
T i m- C I o r l@1t a c iJi c o rp. c o m
VIA ELECTRONIC FILING
September 3,2021
Idaho Public Utilities Commission
11331 West Chinden Boulevard
Building 8 Suite 20lA
Boise, Idaho 837 14-1021
Attention:Jan Noriyuki
Commission Secretary
PacifiCorp Notice of Affiliate Transaction -PacifiCorp and Penn Machine Company LLC
Case No. PAC-E-05-8
Dear Ms. Noriyuki:
Ptrrsuant to Commitnentl I7(2), incorporated in the ldaho 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 Penn Machine Company LLC (Penn
Machine).
PacifiCorp intends to purchase Penn Machine air preheater gear reducer parts (Equipment). The
purchase will occur through a purchase order, the terms of which include PacifiCorp's Purchase
Order Standard Terms and Conditions (Agreement). A verified copy of the Agreement is included
with this Notice as Confrdential Attachment A. PacifiCorp provides this affachment subject to
protection under IDAPA 31.01.01.067 and 31.01.01 .233,the Idaho Public Utilities Commission's
Rules of Procedure No. 67 - Information Exempt from Public Review. This confidential business
information is of significant commercial value, which could expose PacifiCorp to competitive
injury and/or the potential for commercial fraud against PacifiCorp if disclosure is unrestricted.
Therefore, PacifiCorp requests confidential treatment on the basis that the document contains
valuable commercial information, including confidential marketing, cost, and financial
information.
Re
Idaho Public Utilities Commission
September 3,2021
Page2
PacifiCorp is a wholly owned, indirect subsidiary of Berkshire Hathaway Energy Company
(BHE). BHE is a subsidiary of Berkshire Hathaway, Inc. (Berkshire). Berkshire ctrrently holds a
majority interest in Penn Machine. Therefore, Berkshire's ownership interest in Penn Machine
creates an affrliated interest with PacifiCorp.
PacifiCorp contacted the manufacturers of the air preheater system and boiler used at the
company's Jim Bridger plant to obtain competitive bids for the Equipment. The air preheater
system is a major component in the boilers used at the plant to pre-warm combustion air in the
boiler; the main gear box operates the air preheater system. In response to this request, the company
was informed the Equipment can only be provided by Penn Machine as it is proprietary to Penn
Machine.
The company used its competitive bid process when seeking a vendor for air preheater gear reducer
parts. 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 Penn Machine 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.
Sincerely,
,', *., *r., ,1 ( ln. (/
TimotKy K. Clark
Senior Attorney
PacifiCorp
Enclosure
Confidential Attachment A.pdf
CONFIDENTIAL ATTACHMENT A
PacifiCorp Notice of Af[rliate Transaction
to
THIS ATTACHMENT IS CONFIDENTIAL IN ITS
ENTIRETYAND IS PROVIDED UNDER
SEPARATE COVER