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HomeMy WebLinkAbout20231024Notice of Affiliate Transaction.pdf VIA ELECTRONIC FILING October 24, 2023 Idaho Public Utilities Commission 11331 West Chinden Boulevard Building 8 Suite 201A Boise, Idaho 83714-1021 Attention: Jan Noriyuki Commission Secretary Re: PacifiCorp Notice of Affiliate Transaction — PacifiCorp and Ringwalt & Liesche Co. Case No. PAC-E-05-8 Dear Ms. Noriyuki: Pursuant to Commitment I 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 Ringwalt & Liesche Co. (Ringwalt). PacifiCorp entered into an agreement with Ringwalt for a Master Professional Services Contract (Contract) through which Ringwalt will provide agency services for surety bonds available to PacifiCorp, directly and through its parent, National Indemnity Company (National). A true copy of the Contract is included with this notice as Confidential Attachment A. Confidential Attachment B is a copy of the Affiliate Participation Letter that confirms PacifiCorp's intention to participate in and utilize the Contract. PacifiCorp is a wholly-owned indirect subsidiary of Berkshire Hathaway Energy Company. In turn, BHE is a subsidiary of Berkshire Hathaway Inc., which also has an ownership interest in Ringwalt creating an affiliated interest relationship between PacifiCorp and Ringwalt. Ringwalt is an insurance managing general agency and wholesale broker. It provides specialty insurance for non-standard transportation and small to medium-sized commercial lines Timothy K. Clark Assistant General Counsel 1407 W. North Temple, Suite 320 Salt Lake City, UT 84116 801-220-4565 Office Tim.Clark@pacificorp.com RECEIVED 2023 October 24, PM 4:24 IDAHO PUBLIC UTILITIES COMMISSION 2 business and acts as an exclusive servicing agency for surety bond placements between companies and its parent, National. BHE entered into an agreement with Ringwalt, to supply surety bond services for the benefit of each of its business units. This included services to support PacifiCorp in acquiring new surety bonds. The terms of this transaction is commercially sensitive and if revealed, could erode PacifiCorp’s bargaining position, and the ability of the company to engage in future transactions like this that benefit customers. Such erosion of bargaining power could lead to increased costs. Entering into the Contract with Ringwalt is in the public interest because the terms will yield significant savings on commission fees, allowing PacifiCorp to serve its customers efficiently. Please do not hesitate to contact me if you have any questions. Sincerely, Timothy K. Clark Assistant General Counsel PacifiCorp Enclosures: Confidential Attachment A.pdf Confidential Attachment B.pdf CONFIDENTIAL ATTACHMENT A to PacifiCorp Notice of Affiliate Transaction THIS ATTACHMENT IS CONFIDENTIAL IN ITS ENTIRETY AND IS PROVIDED UNDER SEPARATE COVER CONFIDENTIAL ATTACHMENT B to PacifiCorp Notice of Affiliate Transaction THIS ATTACHMENT IS CONFIDENTIAL IN ITS ENTIRETY AND IS PROVIDED UNDER SEPARATE COVER