1. PacifiCorp and CAISO Expanding Regional Energy Partnerships
Pat Reiten President and CEO, PacifiCorp Transmission
May 19, 2015

2. Berkshire Hathaway Energy
$70 billion of assets
$12.6 billion of revenue
8.4 million electric and natural gas customers worldwide
16,400 miles of natural gas pipeline
19,700 employees worldwide
More than 35,000 MW of owned and contracted generation capacity
28% of owned and contracted generation capacity is renewable or non-carbon

3. PacifiCorp/CAISO Announcement
April 2015 – PacifiCorp and the California Independent System Operator (ISO) announce agreement to explore PacifiCorp joining ISO as a Participating Transmission Owner
Study of feasibility and benefits of PacifiCorp joining ISO underway and will be complete this summer

4. PacifiCorp and CAISO – At a Glance
Serves: 1.8 million customers in six Western states (OR, WA, CA, UT, ID and WY)
Employees: 6,000
Generation Capacity: 10,595 MW
Transmission: Over 16,300 miles of transmission lines
Over 62,930 of distribution lines
California ISO
Serves: 30+ million customers in California and a small portion of Nevada
Employees: 580
Generation Capacity: 65,000 MW
Transmission: Controls more than 26,000 miles of high-voltage transmission lines

5. PacifiCorp/ISO Partnership Background
November 2014 – PacifiCorp and the ISO launch the Energy Imbalance Market to allow PacifiCorp participation in ISO’s 5-minute and 15-minute markets
EIM generated more than $11 million in gross benefits during first five months of operation, consistent with pre-launch projections
NV Energy and Puget Sound Energy plan to start EIM participation in the fall of 2015 and 2016
Greater participation will increase EIM benefits
April 2015 – Agreement to explore joining the ISO would extend PacifiCorp participation to day-ahead market and fully coordinated planning and operation of region’s two largest high-voltage transmission grids

6. Need for Increased Coordination in West
Currently 38 separate BAAs in Western U.S. each responsible for balancing energy supply and demand at all times
Rely on own power plants or bilateral transactions
Outside of ISO, most transactions restricted to on-the-hour and initiated with manual processes
Results of “balkanized” grid
Imprecision and higher costs for balancing reserves
Frequent curtailment of renewable energy when supply > demand in an area at a given time
Transmission bottlenecks and issues connected to limited coordination across grids

7. Western Balancing Authority Areas

8. EIM Footprint

9. Benefits of Potential ISO Expansion
EIM provides automated dispatch of least-cost resource across entire EIM footprint to meet short-term balancing needs
ISO expansion could further
Reduce costs – more resources in day-ahead market; sharing of reserves; better use of transmission system
Lower cost emission reductions – fully coordinated planning of renewables in day-ahead market; excess solar in California can displace PacifiCorp coal and gas; excess wind and hydro in PacifiCorp system can serve load in California.
Enhance reliability – broader visibility and management of congestion across grids

10. Benefits of Potential Expansion, cont.
Meeting clean energy requirements
Expanded access to renewables from across the West in day-ahead market will make California RPS compliance less costly
Replacing fossil fuel generation with renewables during oversupply situations will reduce emissions and make federal pollution control compliance less costly
EIM not impacted
PacifiCorp joining EIM does not impact benefits of EIM, or future EIM participants

11. Next Steps Toward Full Market Integration
Benefits study underway
If decision is made to proceed – full stakeholder and regulatory review and input process
FERC and state regulatory filings
Engagement over governance of a regional organization

12. Questions?