Related-Party Transactions

9 Months Ended

Sep. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

(11) Related-Party Transactions

PacifiCorp has an intercompany administrative services agreement with MEHC and its subsidiaries. Amounts charged to PacifiCorp under this agreement totaled $2 million during each of the three-month periods ended September 30, 2011 and 2010, and $7 million and $6 million during the nine-month periods ended September 30, 2011 and 2010, respectively.

PacifiCorp also engages in various transactions with several subsidiaries of MEHC in the ordinary course of business. Services provided by these affiliates in the ordinary course of business and charged to PacifiCorp relate to the transportation of natural gas and relocation services. These expenses totaled $1 million during each of the three-month periods ended September 30, 2011 and 2010, and $4 million and $3 million during the nine-month periods ended September 30, 2011 and 2010, respectively.

PacifiCorp has long-term transportation contracts with BNSF Railway Company, an indirect wholly owned subsidiary of Berkshire Hathaway, PacifiCorp's ultimate parent company. Transportation costs under these contracts were $9 million and $6 million during the three-month periods ended September 30, 2011 and 2010, respectively, and $25 million and $21 million during the nine-month periods ended September 30, 2011 and 2010, respectively.

PacifiCorp participated in a captive insurance program provided by MEHC Insurance Services Ltd. ("MEISL"), a wholly owned subsidiary of MEHC. MEISL covered significant portions of the property damage and liability insurance deductibles in many of PacifiCorp's policies, as well as overhead distribution and transmission line property damage. The policy coverage period expired in March 2011 and will not be renewed. Premium expenses were $- million and $1 million during the three-month periods ended September 30, 2011 and 2010, respectively, and $2 million and $5 million during the nine-month periods ended September 30, 2011 and 2010, respectively. Receivables for claims were $21 million and $12 million as of September 30, 2011 and December 31, 2010, respectively.

PacifiCorp is party to a tax-sharing agreement and is part of the Berkshire Hathaway United States federal income tax return. As of September 30, 2011 and December 31, 2010, income taxes receivable from MEHC were $12 million and $345 million, respectively. For the nine-month periods ended September 30, 2011 and 2010, cash received for income taxes from MEHC totaled $426 million and $183 million, respectively.

PacifiCorp transacts with its equity investees, Bridger Coal Company and Trapper Mining Inc. Services provided by equity investees and charged to PacifiCorp primarily relate to coal purchases. During the three-month periods ended September 30, 2011 and 2010, coal purchases totaled $26 million and $39 million, respectively. During the nine-month periods ended September 30, 2011 and 2010, coal purchases totaled $92 million and $107 million, respectively. Payables to PacifiCorp's equity investees were $13 million and $17 million as of September 30, 2011 and December 31, 2010, respectively.