PacifiCorp and CAISO Expanding Regional Energy Partnerships

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 • PacifiCorp 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 IncreasedCoordination 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 TowardFull 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?