20220223Notice of Affiliate Transaction-BNSF Railway-Redacted.pdf

YPactnConp Timothy K. Clark t. .r :,r aii q. n t
Senior Attornqt r '* '- '-i I I i u' r; u
1107 W. North Temple, Suite 320
SaltLakeCity,UT E4II6 ' ,i,,,,.,,,
E01-220-4565 OfJice ".; i' i '
T i m C I ar h@1t a c iJi c o rp. c o m
VIA ELECTRONIC FILING
February 23,2022
Idaho Public Utilities Commission
I l33l West Chinden Boulevard
Building 8 Suite 20lA
Boise, Idaho 837 14-1021
Attention Jan Noriyuki
Commission Secretary
PacifiCorp Notice of Affiliate Transaction - PacifiCorp and BNSF
Railway Company
Case No. PAC-E-05-8
Dear Ms. Noriyuki
Pursuant to Commitment I l7(2), incorporated in the Idaho Public Utilities
Commission OrderNo.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 BNSF Railway Company (BNSF) for coal transportation
services, from all Wyoming Powder River Basin coal mines to the PacifiCorp Dave
Johnston power plant, located in Glenrock, Wyoming.
The existing long-term rail agreement to provide for the transportation of coal
needed to fuel PacifiCorp's Dave Johnston plant expired on December 31,2021.
PacifiCorp is the owner and operator of the Dave Johnston plant. The Dave Johnston
plant is "captive" to the BNSF Railroad with respect to rail service. There are no other
rail delivery options available from alternative railroads, and the distance between the
mines and plant makes shipping coal via truck both cost prohibitive and logistically
impractical. The new agreement, BNSFRailway Common Carrier Pricing Authority
90068 Attachment A Coal Unit Train Commitment Certificate Number BNSF 90068-0100
Re
REDACTED
(Agreement), has been negotiated at arms-length, and the value will vary depending on
the source mine for the coal. The aggregate cost is currently estimated to be
based on expected future supplier mix, for the three-year Agreement
through December 31, 2024.
PacifiCorp considers the Agreement to be of utmost commercial sensitivity and
highly confidential. It contains commercially sensitive pricing information that could
expose PacifiCorp and BNSF to competitive injury if disclosure is unrestricted.
As such, please contact Ted Weston at [phone] for access to the Agreement.
PacifiCorp is a wholly-owned indirect subsidiary of Berkshire Hathaway Energy
Company (BHE). BHE is a subsidiary of Berkshire Hathaway, Inc. BNSF is also a
subsidiary of Berkshire Hathaway, Inc. Therefore, the ownership interest of Berkshire
Hathaway, Inc., in BHE and in BNSF creates an affiliated interest relationship between
PacifiCorp and BNSF.
Entering into the new Agreement is in the public interest because it allows
PacifiCorp to continue to effrciently operate the Dave Johnston plant. Without the new
Agreement, PacifiCorp would not be able to obtain the coal needed to continue operating
the plant at a reasonable cost. BNSF is the only entity that can provide the coal to
PacifiCorp via rail.
Please do not hesitate to contact me if you have any questions.
Sincerely,
h.,l.' ( /n. (
Timothy K. Clark
Senior Attomey
PacifiCorp
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