Transmission Formula Rate Annual Update

(for rates effective June 1, 2012 through May 31, 2013)

FAQ

Q1:	What rates are changing?

A:	On May 26, 2011, PacifiCorp made a transmission rate case filing at the Federal Energy Regulatory Commission (“FERC” or the “Commission”) to implement updated cost-based formula rates for Network Integration Transmission Service (“NIT Service”), Point-to-Point Transmission Service (“PTP Service”) and Schedule 1 (“Scheduling, System Control and Dispatch Service”) taken under PacifiCorp’s Open Access Transmission Tariff (“OATT”). PacifiCorp is also proposing to amend its OATT to: (1) update PacifiCorp’s stated rates for the following Ancillary Services Schedules: 2 (Reactive Power and Voltage Support), 3 (Regulation and Frequency Response Service), 5 (Operating Reserve – Spinning Reserve), and 6 (Operating Reserve – Supplemental Reserve); (2) include a new Schedule 3A to provide for Generation Regulation and Frequency Response Service; and (3) update PacifiCorp’s transmission service real power loss factors under Schedule 10. PacifiCorp commenced billing at new rates for these services January 1, 2012.

Pursuant to PacifiCorp’s filed transmission formula rate and protocols, PacifiCorp is required to update its transmission formula rate for NIT Service, PTP Service and Schedule 1 (Scheduling, System Control and Dispatch Service) every June. The annual transmission formula rate update (“Annual Update”) for these rates and services is effective June 1, 2012. No other rates are affected by this update.

Q2:	Why are the rates changing?

A:	As explained above, the Annual Update is required by the transmission formula rate and protocols filed in PacifiCorp’s transmission rate case (Docket ER11-3643).

Q3:	When will this happen?

A:	The Annual Update for NIT Service, PTP Service and Schedule 1 is effective June 1, 2012 through May 31, 2013.

PacifiCorp is required to refund customers any difference between the rates produced by the filed formula rate and the rates finally approved by the Commission when hearing and settlement procedures conclude and FERC issues a final order. Settlement of PacifiCorp’s transmission rate case remains ongoing at this time.

Q4:	How will this affect Transmission Customers?

A:	All transmission customers taking service under PacifiCorp’s OATT are subject to the new rates and charges. Transmission customers taking service under transmission agreements which pre-date the OATT are not subject to the new rates and charges absent a separate filing by PacifiCorp at FERC proposing to update individual contract rates as applicable.

Q5:	What changes will Customers see in OASIS?

A:	Reservations that qualify for multiple transmission products will automatically be split into separate ‘profiles’. This will ensure the Transmission Customer is receiving the appropriate product at the most cost effective rate. (see below)

Any existing reservations within PacifiCorp’s OASIS will be recalculated using the rate(s) effective June 1, 2012.

Rates implemented since January 1, 2012, including updated rates effective June 1, 2012 may be adjusted as required pending outcome of settlement negotiations at the Federal Energy Regulatory Commission.

Below outlines the transmission products and corresponding rates available for purchase on PacifiCorp’s OASIS as of June 1, 2012.

Hourly ON PEAK	$5.920
Hourly OFF PEAK	$2.819
Daily ON PEAK	$95.000
Daily OFF PEAK	$68.000
Daily OFF PEAK (M-S)	calculated
Sunday/Monday OFF PEAK	calculated
Weekly ON PEAK	$474.000
Weekly OFF PEAK	calculated
Monthly ON PEAK	$2,052.000
Monthly OFF PEAK	calculated

** For reservations containing a NERC holiday, holidays will be settled at off-peak pricing.

Please make note: with the implementation of the new rates you will now see a 5% Capacity Adjustment on all OASIS reservations. The basis for making this adjustment is to ensure that capacity charges for all customers consistently include a component for losses. In designing the new rates, this adjustment was made to all customer types included in PacifiCorp’s rate calculation. Making this change lowers the overall proposed transmission rate which is applied to a customer’s reserved capacity.

The chart below provides a sampling of Ancillary Service charges associated with each Transmission Product available for purchase. Please note that other than Schedule 1, none of the other ancillary services are affected by the transmission formula annual update. For a complete list of transmission products please contact Brian McClelland; contact information is below.

ANCILLARY SERVICES

Schedules 1-9 as defined in PacifiCorp’s Open Access Transmission Tariff:

Schedule 1	Scheduling, System Control and Dispatch Service

Schedule 2	Reactive Supply and Voltage Control from Generation or Other Sources Service

Schedule 3*	Regulation and Frequency Response Service

Schedule 3A*	Regulation and Frequency Response from Generation

Schedule 4*	Energy Imbalance Service

Schedule 5*	Operating Reserve – Spinning Reserve Service

Schedule 6*	Operating Reserve – Supplemental Reserve Service

Schedule 7	Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service

Schedule 8	Non-Firm Point-To-Point Transmission Service

Schedule 9*	Generator Imbalance Service

* Applicability of Ancillary Service charges under Schedules 3, 3A, 4, 5, 6 and 9 are determined at contract execution based on facts and circumstances of the transaction and are not associated by Transmission Product type purchased.

If you have any questions or comments please contact:

Brian McClelland, Manager Transmission Scheduling

503-251-5162 or

Sarah Edmonds, Director Transmission Policy

503-813-6840

1	May 31, 2012

R.Matheson

2012-08-17

p95594

PacifiCorp