Pacific Power Seismic Preparedness Update April 6, 2017

Oregon System: CSZ Shaking Map

PacifiCorp Geographic System Benefits Six state service territory: Resources including crews, materials, equipment are located throughout the six state service territory. Generation location: Most hydro / wind generation is outside of significant impact areas. Transmission ties to the east and south provides import capability. BPA Columbia river generation located outside of significant impact areas. Redundant operational systems and facilities between Portland and Salt Lake City: Two control centers: Fully redundant EMS system. Redundant outage management system. Two customer contact centers: Ability to do customer service transactions at both locations.

Seismic Resiliency Improvement Efforts: Three Major Focus Areas Assessments: Perform assessments of key facilities to determine potential for damage as well as impact to the system. Mitigation – Pre-Event Preparation: Ongoing asset replacement and upgrade programs. Add capacity / redundancy to the system. Perform targeted hardening of facilities. Employee preparation / emergency drills. Mitigation – Post-Event Response: Spare equipment evaluation. Mutual assistance agreements.

Assessments Primary focus of current assessment effort is on: Transmission and large distribution substations. Key office / service center facilities. – Substation assessments evaluate probability / extent of damage and impact – key factors include: Equipment and construction details. Estimated ground shaking. Tsunami Zone. Probability Installed capacity. Customers served. System Operations Priority/Criticality. Impact

Determining Probability Specific Application Base Assessment Base Equipment Assessment Poor Good High – Inherent seismic withstand capability. Medium Specific Application Anchorage. Jumpers / connection. Structural mounting. Site specific Info: Peak ground acceleration. Cascadia shaking levels. Tsunami zones. Probability = (Base Assessment) + (Specific Application)x(Site specific)

Determining Impact: Substations Key Impact Evaluation Factors: Transmission Impact MVA of installed transformation. Transmission line flow. Equipment function. System Operations Priority/Criticality. Direct customer impact Quantity of customers connected to substation. Critical customers connected (hospitals, emergency response, etc.)

Risk Evaluation Example 115kV circuit switcher and capacitor bank: Probability of failure = High: Inherent equipment capability = medium Site specific application = Very Poor Solid buswork connections (not visible in this view). Capacitor mounted on cap and pin style insulators. Ground shaking potential = Strong Impact = Very Low: Small Capacity capacitor (15 MVAR). Not essential for restoration or for normal load conditions. Risk = (High) x (Very Low) = Low

Assessment Status Field data collected for 22 substations to date: 2016 focus was on developing processes and procedures to perform assessments and evaluate data - Retained consultants to provide expertise and insight. 34 Transmission substations scheduled for assessment and evaluation. 172 Distribution substations scheduled for assessment and evaluation. Inspections to be completed late 2018. Assessment results will be utilized to prioritize mitigation activities and understand system risks. – Structural assessment of 5 critical office and service center facilities ongoing with results available in early 2017.

Mitigation Activities: Pre- Event Preparation Ongoing asset replacement upgrades deliver continuous improvement. Equipment purchased / designs utilized incorporate latest seismic requirements. Transmission reliability improvement projects: Two 500-230kV stations under design or construction in southern Oregon will provide additional capacity / redundancy. Participate in emergency response planning and exercises: Cascadia Rising Clear Path 4 Targeted retrofits focused on high risk facilities will improve seismic resilience: risks evaluated through the assessment process. 10

Mitigation Activities: Pre- Event Preparation Provide training to employees on seismic issues: Be prepared at home, work and in your car. Understand the extent of the potential damage / home emergency kits. Working with Oregon State University on electric system resilience training program development. Coordinate mitigation activities with BPA / others. Understand other entities’ capabilities. Determine resilient intertie points. 11

Mitigation Activities: Post Event Response All Berkshire Hathaway Energy platforms are currently undergoing a detailed review of resiliency requirements for transmission facilities. Establish a standard for recovery from both natural and physical attack type of threats. Determine spare equipment requirements to meet the recovery standard. Establish material storage, logistics requirements and other infrastructure necessary to meet the recovery standard. Spare transformers and circuit breaker quantities are under review as well as the means to access additional spares: Member of EEI STEP Program. Evaluating participation in Grid Assurance. Will consider “pooling” with other BHE platforms or adjacent utilities. Mutual Assistance Agreements Adjacent utilities. Berkshire Hathaway Energy cross platform agreements. National agreements. 12