Transmission Formula Rate 2018 Annual Update July 6, 2018 Minor corrections to slides 9, 18, and 19 shown in green

Transmission Formula Rate 2018 Annual Update July 6, 2018 Minor corrections to slides 9, 18, and 19 shown in green

Topics Introductions Annual Update Overview FERC Form No. 1 page 106b Known errors 2017 True-up and 2018 Projection Schedule 1 Additional Information Questions and Discussion 2

Overview: OASIS Postings PacifiCorp has posted the following materials to OASIS www.oasis.oati.com/ppw/ [Documents > PacifiCorp OASIS Tariff/Company Information > OATT Pricing > 2018 Transmission Formula Annual Update] FERC informational filing Formula Rate 2018 Projection and variance analysis Formula Rate 2017 True-Up and variance analysis Additional materials Transmission Plant Additions Detail Material Changes Summary 2018 Actuarial Study Reports (PBOP details) Information request process narrative (includes Intralinks info) Rate Table and FAQ 3

Overview: Form No. 1 PacifiCorp s 2016 FERC Form No. 1 may be found on PacifiCorp s website by clicking on Regulatory Filings under Financial Information at the following link: www.pacificorp.com/about/fi.html The above navigation redirects to the Berkshire Hathaway Energy Company website accessible directly at: www.berkshirehathawayenergyco.com/investors/regulatory-filings 4

Overview: Form No. 1 Page 106b PacifiCorp s 2018 FERC Form No. 1 page 106b now lists items where formula rate inputs differ from values reported in the formula rate schedules. 5

Locate the indicated FERC Form No. 1 Schedule by page. A lightly shaded cell indicates a related footnote. Overview: Form No. 1 Page 106b

Overview: Form No. 1 Page 106b Footnotes to the values on the applicable Form No. 1 schedule provide the adjusted value and an explanation. 7

Overview: Form No. 1 Page 106b Adjusted Form No. 1 value used in formula template PacifiCorp Attachment 5 - Cost Support Accumulated Depreciation Worksheet Attachment A Line #s, Descriptions, Notes, Form 1 Page #s and Instructions Calculation of Intangible Accumulated Depreciation Source Year Balance 79 December Prior year 200.21c 2016 550,535,864 80 December 200.21c 2017 580,005,315 8 81 Accumulated Intangible Depreciation (line 80) (Note N) Projection 580,005,315 8

Overview: Known errors Attachment 5 Plant-in-Service values do not reflect removal of AROs as noted on page 106b and in company records Certain FERC account 928 expenses (FERC Other Regulatory) were not updated from prior year values Interest on Network Upgrade Facilities should have been $995,352 rather than $1.47 million causing an overstatement to Attachment A, line 168 Attachment 15 ICIF line missing $75.9 million due to a spreadsheet reference omission causing an understatement to Attachment A, line 147 Effect of all errors on both the 2017 true-up and the 2018 projection is currently estimated at less than two percent but more than 0.50 $/kw-year 9 updated

2017 True-up True-Up covers calendar year during which two projected rates were in effect 2016 Projection 29,703 $/MW-yr (2,475.26 $/MW-month) (effective June 2015 through May 2016) 2017 Projection 32,029 $/MW-year (2,669.08 $/MW-month) (effective June 2016 through May 2017) 2017 Jan Feb March April May June July Aug Sept Oct Nov Dec 2017 True-Up 34,925 $/MW-year (2,910.45 $/MW-month) (calculated for calendar year 2016) Monthly Surcharge January through May 2016 2,910.45-2,475.26 = 435.19 $/MW-month Monthly Surcharge June through December 2016 2,910.45-2,669.08 = 241.37 $/MW-month Surcharges to long-term firm point-to-point and network transmission service customers have been calculated and included in invoices distributed in June 2018 Values are illustrative and based on filed rates that may not reflect customerspecific or other adjustments

2017 True-up 2017 True-up 2017 Projection (as-filed) Revenue Requirement 0 Absolute change Percent change Summary 137 Net Property, Plant & Equipment 4,580,502,795 4,637,294,898 (56,792,103) -1.22% 138 Total Adjustment to Rate Base (1,132,993,185) (1,110,547,025) (22,446,160) -2.02% 139 Rate Base 3,447,509,610 3,526,747,873 (79,238,263) -2.25% 140 Total Transmission O&M 73,541,476 75,595,793 (2,054,317) -2.72% 141 Total Transmission Depreciation & Amortization 113,555,399 111,477,279 2,078,121 1.86% 142 Taxes Other than Income 38,104,944 37,145,684 959,260 2.58% 143 Investment Return 260,609,207 265,454,053 (4,844,846) -1.83% 144 Income Taxes 104,229,266 105,980,474 (1,751,209) -1.65% 145 Gross Revenue Requirement 590,040,292 595,653,284 (5,612,992) -0.94% Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 6,122,640,457 6,051,719,907 70,920,550 1.17% 147 Excluded Transmission Facilities 170,890,310 244,927,582 (74,037,272) -30.23% 148 Included Transmission Facilities 5,951,750,147 5,806,792,325 144,957,822 2.50% 149 Inclusion Ratio 97.21% 95.95% 150 Gross Revenue Requirement 590,040,292 595,653,284 (5,612,992) -0.94% 151 Adjusted Gross Revenue Requirement 573,571,553 571,545,770 2,025,782 0.35% Revenue Credits 152 Revenue Credits 92,982,484 132,780,097 (39,797,613) -29.97% 153 Net Revenue Requirement 480,589,069 438,765,673 41,823,396 9.53% 165 Net Revenue Requirement 480,589,069 438,765,673 41,823,396 9.53% 166 Facility Credits under Section 30.9 of the OATT 0 0 0 n/m 167 Transmission Incentive Credit 4,566,718 4,597,903 (31,185) -0.68% 168 Interest on Network Upgrade Facilities 1,468,174 1,047,559 420,615 40.15% 169 Net Zonal Revenue Requirement 486,623,961 444,411,135 42,212,826 9.50% Network Service Rate 170 12 CP Monthly Peak (MW) 13,933 13,875 58 0.42% 171 Rate ($/MW-year) 34,925 32,029 2,896 9.04% 172 Network Service Rate ($/MW-year) 34,925 32,029 2,896 9.04%

2017 True-up with corrections 2017 True-up 2017 Projection (as-filed) Revenue Requirement 0 Summary 137 Net Property, Plant & Equipment 4,580,340,439 4,637,294,898 (56,954,459) -1.23% 138 Total Adjustment to Rate Base (1,132,932,472) (1,110,547,025) (22,385,446) -2.02% 139 Rate Base 3,447,407,967 3,526,747,873 (79,339,905) -2.25% 140 Total Transmission O&M 72,600,620 75,595,793 (2,995,173) -3.96% 141 Total Transmission Depreciation & Amortization 113,555,399 111,477,279 2,078,121 1.86% 142 Taxes Other than Income 38,423,600 37,145,684 1,277,915 3.44% 143 Investment Return 260,601,523 265,454,053 (4,852,530) -1.83% 144 Income Taxes 104,213,084 105,980,474 (1,767,390) -1.67% 145 Gross Revenue Requirement 589,394,226 595,653,284 (6,259,058) -1.05% Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 6,122,640,457 6,051,719,907 70,920,550 1.17% 147 Excluded Transmission Facilities 246,834,318 244,927,582 1,906,736 0.78% 148 Included Transmission Facilities 5,875,806,139 5,806,792,325 69,013,814 1.19% 149 Inclusion Ratio 95.97% 95.95% 150 Gross Revenue Requirement 589,394,226 595,653,284 (6,259,058) -1.05% 151 Adjusted Gross Revenue Requirement 565,632,791 571,545,770 (5,912,979) -1.03% Revenue Credits 152 Revenue Credits 92,982,484 132,780,097 (39,797,613) -29.97% 153 Net Revenue Requirement 472,650,307 438,765,673 33,884,634 7.72% 165 Net Revenue Requirement 472,650,307 438,765,673 33,884,634 7.72% 166 Facility Credits under Section 30.9 of the OATT 0 0 0 n/m 167 Transmission Incentive Credit 4,566,583 4,597,903 (31,319) -0.68% 168 Interest on Network Upgrade Facilities 995,352 1,047,559 (52,207) -4.98% 169 Net Zonal Revenue Requirement 478,212,243 444,411,135 33,801,108 7.61% Network Service Rate 170 12 CP Monthly Peak (MW) 13,933 13,875 58 0.42% 171 Rate ($/MW-year) 34,322 32,029 2,293 7.16% 172 Network Service Rate ($/MW-year) 34,322 32,029 2,293 7.16%

2018 Projection 2018 Projection 2017 Projection (as-filed) Revenue Requirement 0 Absolute change Percent change Summary 137 Net Property, Plant & Equipment 4,710,719,569 4,637,294,898 73,424,671 1.58% 138 Total Adjustment to Rate Base (1,155,054,331) (1,110,547,025) (44,507,306) -4.01% 139 Rate Base 3,555,665,237 3,526,747,873 28,917,365 0.82% 140 Total Transmission O&M 73,560,167 75,595,793 (2,035,626) -2.69% 141 Total Transmission Depreciation & Amortization 113,555,399 111,477,279 2,078,121 1.86% 142 Taxes Other than Income 39,067,191 37,145,684 1,921,507 5.17% 143 Investment Return 268,785,065 265,454,053 3,331,012 1.25% 144 Income Taxes 56,842,661 105,980,474 (49,137,813) -46.36% 145 Gross Revenue Requirement 551,810,484 595,653,284 (43,842,800) -7.36% Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 6,222,285,657 6,051,719,907 170,565,750 2.82% 147 Excluded Transmission Facilities 170,890,310 244,927,582 (74,037,272) -30.23% 148 Included Transmission Facilities 6,051,395,347 5,806,792,325 244,603,022 4.21% 149 Inclusion Ratio 97.25% 95.95% 150 Gross Revenue Requirement 551,810,484 595,653,284 (43,842,800) -7.36% 151 Adjusted Gross Revenue Requirement 536,655,432 571,545,770 (34,890,338) -6.10% Revenue Credits 152 Revenue Credits 92,982,484 132,780,097 (39,797,613) -29.97% 153 Net Revenue Requirement 443,672,948 438,765,673 4,907,275 1.12% 165 Net Revenue Requirement 443,672,948 438,765,673 4,907,275 1.12% 166 Facility Credits under Section 30.9 of the OATT 0 0 0 n/m 167 Transmission Incentive Credit 3,701,442 4,597,903 (896,461) -19.50% 168 Interest on Network Upgrade Facilities 1,468,174 1,047,559 420,615 40.15% 169 Net Zonal Revenue Requirement 448,842,564 444,411,135 4,431,429 1.00% Network Service Rate 170 12 CP Monthly Peak (MW) 14,017 13,875 142 1.02% 171 Rate ($/MW-year) 32,021 32,029 (8) -0.03% 172 Network Service Rate ($/MW-year) 32,021 32,029 (8) -0.03%

2018 Projection with corrections 2018 Projection 2017 Projection (as-filed) Revenue Requirement 0 Summary 137 Net Property, Plant & Equipment 4,710,557,567 4,637,294,898 73,262,669 1.58% 138 Total Adjustment to Rate Base (1,154,985,525) (1,110,547,025) (44,438,499) -4.00% 139 Rate Base 3,555,572,042 3,526,747,873 28,824,170 0.82% 140 Total Transmission O&M 72,619,350 75,595,793 (2,976,443) -3.94% 141 Total Transmission Depreciation & Amortization 113,555,399 111,477,279 2,078,121 1.86% 142 Taxes Other than Income 39,394,214 37,145,684 2,248,529 6.05% 143 Investment Return 268,778,021 265,454,053 3,323,968 1.25% 144 Income Taxes 56,830,107 105,980,474 (49,150,367) -46.38% 145 Gross Revenue Requirement 551,177,091 595,653,284 (44,476,193) -7.47% Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 6,222,285,657 6,051,719,907 170,565,750 2.82% 147 Excluded Transmission Facilities 246,834,318 244,927,582 1,906,736 0.78% 148 Included Transmission Facilities 5,975,451,339 5,806,792,325 168,659,014 2.90% 149 Inclusion Ratio 96.03% 95.95% 150 Gross Revenue Requirement 551,177,091 595,653,284 (44,476,193) -7.47% 151 Adjusted Gross Revenue Requirement 529,312,228 571,545,770 (42,233,542) -7.39% Revenue Credits 152 Revenue Credits 92,982,484 132,780,097 (39,797,613) -29.97% 153 Net Revenue Requirement 436,329,744 438,765,673 (2,435,929) -0.56% 165 Net Revenue Requirement 436,329,744 438,765,673 (2,435,929) -0.56% 166 Facility Credits under Section 30.9 of the OATT 0 0 0 n/m 167 Transmission Incentive Credit 3,701,345 4,597,903 (896,558) -19.50% 168 Interest on Network Upgrade Facilities 995,352 1,047,559 (52,207) -4.98% 169 Net Zonal Revenue Requirement 441,026,441 444,411,135 (3,384,694) -0.76% Network Service Rate 170 12 CP Monthly Peak (MW) 14,017 13,875 142 1.02% 171 Rate ($/MW-year) 31,463 32,029 (566) -1.77% 172 Network Service Rate ($/MW-year) 31,463 32,029 (566) -1.77%

Corporate Tax Rate Change The 2018 projected rate effective June 1, 2018 incorporates the federal tax rate change from 35 percent to 21 percent in Line 128 of Appendix A. The 2018 true-up (to be calculated in May 2018) will included the corporate tax rate change for all of calendar year 2018. The impact to ADIT is being analyzed and PacifiCorp will review guidance resulting from FERC s Notice of Inquiry (NOI) in Docket No. RM18-12. 15

Revenue Credits Component 2017 Projection 2018 Projection Difference Rents (FERC 454) 5,509,107 5,381,547-2.3% Other revenues (FERC 456) 127,270,991 87,600,937-31.2% Total revenue credits 132,780,097 92,982,484-30% Decrease to rents from electric property (FERC 454) Decrease to Other Electric Revenues (FERC 456) Decrease to other transmission service (PG&E RS607) Decrease to PacifiCorp ESM short-term non-firm service 16

Demand (Projection) (MW) 2017 Projection 2018 Projection Difference Percent PacifiCorp Network 8,476 8,499 23 +0.3% Network for Others 423 420-3 -0.8% Legacy/Other Service 1,031 1,004-27 -2.6% Behind-the-meter 272 261-11 -4.1% One percent growth 102 102 0-0.2% PacifiCorp LTF PTP 2,574 2,574 0-0.0% Third-party LTF PTP 997 1,158 161 +16.1% Total 13,875 14,017 142 +1.02% Net growth of one percent to denominator Third-party LTF PTP and PacifiCorp network load proved most growth 17

Demand (True-up vs. Projection) (MW) 2017 Projection 2017 True-up Difference Percent PacifiCorp Network 8,476 8,601 +125 +1.5% Network for Others 423 430 +7 +1.7% Legacy/Other Service 1,031 1,015-16 -1.6% Behind-the-meter 272 234-38 -14.0% One percent growth 102 - n/m n/m PacifiCorp LTF PTP 2,574 2,569-5 -0.2% Third-party LTF PTP 997 1,084 +87 +8.7% Total 13,875 13,933 +58 +0.4% 2017 Projection slightly understated load vs. 2017 True-up Three-year averaging of projection softens some trends PacifiCorp network and third party LTF PTP grew most 18 updated

Schedule 1 (Formula Appendix B) Line Description 2017 Update 2018 Update Difference 2 (561.2) Load Dispatch - Monitor and Operate Trans. System $ 7,180,746 $ 6,954,702-3.1% 4 (561.4) Scheduling, System Control, and Dispatch Services 1,818,514 2,007,912 +10.4% 5 (561.5) Reliability, Planning, and Standards Development 1,747,640 1,674,277-4.2% 6 Annual Revenue Requirement ($) 10,746,900 10,636,891-1.0% 8 12 CP demand (MW) 13,414 13,933 +3.9% 9 Rate ($/MW-year) 801.18 763.42-4.7% Revenue requirement decreased slightly and load increased (each of which alone drives rate lower) FERC 561.4 Increased EIM grid management charges 19 updated

Annual Update Milestones April 13, 2018 May 15, 2018 May 16, 2018 June 1, 2018 June 2018 July 6, 2018 November 11, 2018 The 2017 FERC Form No. 1 filed The 2018 Annual Update informational filing at FERC and publication on OASIS. 2018 Annual Update informational request period begins. Rate Year begins: 2018 Projected rates effective, 2018 Rate Table and FAQ document published on OASIS. Surcharges issued based on the 2017 True-Up 2018 Annual Update customer meeting The 2017 Annual Update Informational request period ends. 20

Annual Review Procedures General Interested Parties have 180 days after the May 15 Publication Date to serve reasonable information requests to PacifiCorp for information and work papers supporting the Annual Update An Interested Party may make Preliminary and/or Formal Challenges pursuant to the Protocols Information requests Please submit information requests to: datarequest@pacificorp.com More information on information request process and Intralinks (the online exchange for information request and response postings) is available here: www.oatioasis.com/ppw/ppwdocs/2018_annual_update_information_request_process.pdf 21