20211102Notice of Affiliate Transaction.pdf

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Rody Hounah Porer Timothy K. Clark
Senior Altorney
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VU ELECTRONIC FILING
November 2,2021
Idaho Public Utilities Commission
I l33l West Chinden Boulevard
Building I Suite 20lA
Boise, Idaho 837 14-1021
Affention:Jan Noriyuki
Commission Secretary
PacifiCorp Notice of Affiliate Transaction -PacifiCorp and Penn Machine Company LLC
Case No. PAC-E-05-8
Dear Ms. Noriyuki
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 Penn Machine
Company LLC (Penn Machine).
PacifiCorp intends to purchase Penn Machine air preheater gear pinion 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 Confidential Attachment A. PacifiCorp provides
this attachment subject to protection under IDAPA 31.01.01 .067 and 31.01.01.233, the ldaho
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.
PacifiCorp is a wholly owned, indirect subsidiary of Berkshire Hathaway Energy
Company (BHE). BHE is a subsidiary of Berkshire Hathaway, Inc. (Berkshire). Berkshire
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currently 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 Bridgerplant 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. ln 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 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,
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Timothy K. Clark
Senior Attorney
PacifiCorp
Enclosure
Confi dential Attachment A.pdf
CONFIDENTIAL ATTACHMENT A
PacifiCorp Notice of Affiliate Transaction
to
THIS ATTACHMENT IS CONFIDENTIAL IN ITS
ENTIRETY ANID IS PROVIDED UNDER SEPARATE
COVER