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Name | Symbol | Market | Type |
---|---|---|---|
PacifiCorp (PK) | USOTC:PPWLO | OTCMarkets | Preference Share |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 100.02 | 100.02 | 160.00 | 0.00 | 12:36:35 |
Commission
File Number
|
|
Exact name of registrant as specified in its charter;
State or other jurisdiction of incorporation or organization
|
|
IRS Employer
Identification No.
|
001-14881
|
|
BERKSHIRE HATHAWAY ENERGY COMPANY
|
|
94-2213782
|
|
|
(An Iowa Corporation)
|
|
|
|
|
666 Grand Avenue, Suite 500
|
|
|
|
|
Des Moines, Iowa 50309-2580
|
|
|
|
|
515-242-4300
|
|
|
|
|
|
|
|
001-5152
|
|
PACIFICORP
|
|
93-0246090
|
|
|
(An Oregon Corporation)
|
|
|
|
|
825 N.E. Multnomah Street
|
|
|
|
|
Portland, Oregon 97232
|
|
|
|
|
503-813-5645
|
|
|
|
|
|
|
|
333-90553
|
|
MIDAMERICAN FUNDING, LLC
|
|
47-0819200
|
|
|
(An Iowa Limited Liability Company)
|
|
|
|
|
666 Grand Avenue, Suite 500
|
|
|
|
|
Des Moines, Iowa 50309-2580
|
|
|
|
|
515-242-4300
|
|
|
|
|
|
|
|
333-206980
|
|
MIDAMERICAN ENERGY COMPANY
|
|
42-1425214
|
|
|
(An Iowa Corporation)
|
|
|
|
|
666 Grand Avenue, Suite 500
|
|
|
|
|
Des Moines, Iowa 50309-2580
|
|
|
|
|
515-242-4300
|
|
|
|
|
|
|
|
000-52378
|
|
NEVADA POWER COMPANY
|
|
88-0420104
|
|
|
(A Nevada Corporation)
|
|
|
|
|
6226 West Sahara Avenue
|
|
|
|
|
Las Vegas, Nevada 89146
|
|
|
|
|
702-402-5000
|
|
|
|
|
|
|
|
000-00508
|
|
SIERRA PACIFIC POWER COMPANY
|
|
88-0044418
|
|
|
(A Nevada Corporation)
|
|
|
|
|
6100 Neil Road
|
|
|
|
|
Reno, Nevada 89511
|
|
|
|
|
775-834-4011
|
|
|
|
|
|
|
|
|
|
N/A
|
|
|
|
|
(Former name or former address, if changed from last report)
|
|
|
Registrant
|
Yes
|
No
|
BERKSHIRE HATHAWAY ENERGY COMPANY
|
X
|
|
PACIFICORP
|
X
|
|
MIDAMERICAN FUNDING, LLC
|
|
X
|
MIDAMERICAN ENERGY COMPANY
|
X
|
|
NEVADA POWER COMPANY
|
X
|
|
SIERRA PACIFIC POWER COMPANY
|
X
|
|
Registrant
|
Large Accelerated Filer
|
Accelerated filer
|
Non-accelerated Filer
|
Smaller Reporting Company
|
BERKSHIRE HATHAWAY ENERGY COMPANY
|
|
|
X
|
|
PACIFICORP
|
|
|
X
|
|
MIDAMERICAN FUNDING, LLC
|
|
|
X
|
|
MIDAMERICAN ENERGY COMPANY
|
|
|
X
|
|
NEVADA POWER COMPANY
|
|
|
X
|
|
SIERRA PACIFIC POWER COMPANY
|
|
|
X
|
|
GWh
|
|
Gigawatt Hours
|
IPUC
|
|
Idaho Public Utilities Commission
|
IUB
|
|
Iowa Utilities Board
|
kV
|
|
Kilovolt
|
MW
|
|
Megawatts
|
MWh
|
|
Megawatt Hours
|
OPUC
|
|
Oregon Public Utility Commission
|
PUCN
|
|
Public Utilities Commission of Nevada
|
SEC
|
|
United States Securities and Exchange Commission
|
UPSC
|
|
Utah Public Service Commission
|
WPSC
|
|
Wyoming Public Service Commission
|
WUTC
|
|
Washington Utilities and Transportation Commission
|
•
|
general economic, political and business conditions, as well as changes in, and compliance with, laws and regulations, including reliability and safety standards, affecting the Registrants' operations or related industries;
|
•
|
changes in, and compliance with, environmental laws, regulations, decisions and policies that could, among other items, increase operating and capital costs, reduce facility output, accelerate facility retirements or delay facility construction or acquisition;
|
•
|
the outcome of rate cases and other proceedings conducted by regulatory commissions or other governmental and legal bodies and the Registrants' ability to recover costs through rates in a timely manner;
|
•
|
changes in economic, industry, competition or weather conditions, as well as demographic trends, new technologies and various conservation, energy efficiency and distributed generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply or the Registrants' ability to obtain long-term contracts with customers and suppliers;
|
•
|
performance, availability and ongoing operation of the Registrants' facilities, including facilities not operated by the Registrants, due to the impacts of market conditions, outages and repairs, transmission constraints, weather, including wind, solar and hydroelectric conditions, and operating conditions;
|
•
|
a high degree of variance between actual and forecasted load or generation that could impact the Registrants' hedging strategy and the cost of balancing its generation resources with its retail load obligations;
|
•
|
changes in prices, availability and demand for wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generating capacity and energy costs;
|
•
|
the financial condition and creditworthiness of the Registrants' significant customers and suppliers;
|
•
|
changes in business strategy or development plans;
|
•
|
availability, terms and deployment of capital, including reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in the London Interbank Offered Rate, the base interest rate for the Registrants' credit facilities;
|
•
|
changes in the Registrant's respective credit ratings;
|
•
|
risks relating to nuclear generation, including unique operational, closure and decommissioning risks;
|
•
|
hydroelectric conditions and the cost, feasibility and eventual outcome of hydroelectric relicensing proceedings;
|
•
|
the impact of certain contracts used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in commodity prices, interest rates and other conditions that affect the fair value of certain contracts;
|
•
|
the impact of inflation on costs and the ability of the respective Registrants to recover such costs in regulated rates;
|
•
|
fluctuations in foreign currency exchange rates, primarily the British pound and the Canadian dollar;
|
•
|
increases in employee healthcare costs;
|
•
|
the impact of investment performance and changes in interest rates, legislation, healthcare cost trends, mortality and morbidity on pension and other postretirement benefits expense and funding requirements;
|
•
|
changes in the residential real estate brokerage and mortgage industries and regulations that could affect brokerage and mortgage transactions;
|
•
|
unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future facilities and infrastructure additions;
|
•
|
the availability and price of natural gas in applicable geographic regions and demand for natural gas supply;
|
•
|
the impact of new accounting guidance or changes in current accounting estimates and assumptions on the consolidated financial results of the respective Registrants;
|
•
|
the ability to successfully integrate future acquired operations into its business;
|
•
|
the effects of catastrophic and other unforeseen events, which may be caused by factors beyond the control of each respective Registrant or by a breakdown or failure of the Registrants' operating assets, including storms, floods, fires, earthquakes, explosions, landslides, mining accidents, litigation, wars, terrorism, and embargoes; and
|
•
|
other business or investment considerations that may be disclosed from time to time in the Registrants' filings with the SEC or in other publicly disseminated written documents.
|
Item 1.
|
Financial Statements
|
Berkshire Hathaway Energy Company and its subsidiaries
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
PacifiCorp and its subsidiaries
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
MidAmerican Energy Company
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
MidAmerican Funding, LLC and its subsidiaries
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Nevada Power Company and its subsidiaries
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Sierra Pacific Power Company and its subsidiaries
|
|
|
|
||
|
||
|
||
|
||
|
||
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
Item 1.
|
Financial Statements
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,086
|
|
|
$
|
1,108
|
|
Trade receivables, net
|
1,613
|
|
|
1,785
|
|
||
Income taxes receivable
|
329
|
|
|
319
|
|
||
Inventories
|
902
|
|
|
882
|
|
||
Mortgage loans held for sale
|
246
|
|
|
335
|
|
||
Other current assets
|
796
|
|
|
814
|
|
||
Total current assets
|
4,972
|
|
|
5,243
|
|
||
|
|
|
|
|
|
||
Property, plant and equipment, net
|
61,152
|
|
|
60,769
|
|
||
Goodwill
|
9,145
|
|
|
9,076
|
|
||
Regulatory assets
|
4,182
|
|
|
4,155
|
|
||
Investments and restricted cash and investments
|
3,719
|
|
|
3,367
|
|
||
Other assets
|
1,076
|
|
|
1,008
|
|
||
|
|
|
|
|
|
||
Total assets
|
$
|
84,246
|
|
|
$
|
83,618
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
LIABILITIES AND EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,246
|
|
|
$
|
1,564
|
|
Accrued interest
|
486
|
|
|
469
|
|
||
Accrued property, income and other taxes
|
377
|
|
|
372
|
|
||
Accrued employee expenses
|
267
|
|
|
264
|
|
||
Regulatory liabilities
|
434
|
|
|
402
|
|
||
Short-term debt
|
1,722
|
|
|
974
|
|
||
Current portion of long-term debt
|
935
|
|
|
1,148
|
|
||
Other current liabilities
|
961
|
|
|
896
|
|
||
Total current liabilities
|
6,428
|
|
|
6,089
|
|
||
|
|
|
|
|
|
||
Regulatory liabilities
|
2,676
|
|
|
2,631
|
|
||
BHE senior debt
|
7,815
|
|
|
7,814
|
|
||
BHE junior subordinated debentures
|
2,444
|
|
|
2,944
|
|
||
Subsidiary debt
|
26,119
|
|
|
26,066
|
|
||
Deferred income taxes
|
12,797
|
|
|
12,685
|
|
||
Other long-term liabilities
|
2,843
|
|
|
2,854
|
|
||
Total liabilities
|
61,122
|
|
|
61,083
|
|
||
|
|
|
|
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|||
|
|
|
|
|
|
||
Equity:
|
|
|
|
|
|
||
BHE shareholders' equity:
|
|
|
|
|
|
||
Common stock - 115 shares authorized, no par value, 77 shares issued and outstanding
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
6,403
|
|
|
6,403
|
|
||
Retained earnings
|
17,396
|
|
|
16,906
|
|
||
Accumulated other comprehensive loss, net
|
(809
|
)
|
|
(908
|
)
|
||
Total BHE shareholders' equity
|
22,990
|
|
|
22,401
|
|
||
Noncontrolling interests
|
134
|
|
|
134
|
|
||
Total equity
|
23,124
|
|
|
22,535
|
|
||
|
|
|
|
|
|
||
Total liabilities and equity
|
$
|
84,246
|
|
|
$
|
83,618
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Energy
|
$
|
3,550
|
|
|
$
|
3,773
|
|
Real estate
|
491
|
|
|
448
|
|
||
Total operating revenue
|
4,041
|
|
|
4,221
|
|
||
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
||||
Energy:
|
|
|
|
||||
Cost of sales
|
1,095
|
|
|
1,354
|
|
||
Operating expense
|
882
|
|
|
906
|
|
||
Depreciation and amortization
|
619
|
|
|
581
|
|
||
Real estate
|
492
|
|
|
450
|
|
||
Total operating costs and expenses
|
3,088
|
|
|
3,291
|
|
||
|
|
|
|
||||
Operating income
|
953
|
|
|
930
|
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
||||
Interest expense
|
(473
|
)
|
|
(472
|
)
|
||
Capitalized interest
|
11
|
|
|
29
|
|
||
Allowance for equity funds
|
15
|
|
|
31
|
|
||
Interest and dividend income
|
27
|
|
|
26
|
|
||
Other, net
|
10
|
|
|
26
|
|
||
Total other income (expense)
|
(410
|
)
|
|
(360
|
)
|
||
|
|
|
|
||||
Income before income tax expense and equity income
|
543
|
|
|
570
|
|
||
Income tax expense
|
74
|
|
|
123
|
|
||
Equity income
|
26
|
|
|
26
|
|
||
Net income
|
495
|
|
|
473
|
|
||
Net income attributable to noncontrolling interests
|
5
|
|
|
4
|
|
||
Net income attributable to BHE shareholders
|
$
|
490
|
|
|
$
|
469
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Net income
|
$
|
495
|
|
|
$
|
473
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Unrecognized amounts on retirement benefits, net of tax of $6 and $8
|
22
|
|
|
22
|
|
||
Foreign currency translation adjustment
|
67
|
|
|
(424
|
)
|
||
Unrealized gains on available-for-sale securities, net of tax of $22 and $113
|
33
|
|
|
166
|
|
||
Unrealized (losses) gains on cash flow hedges, net of tax of $(14) and $1
|
(23
|
)
|
|
1
|
|
||
Total other comprehensive income (loss), net of tax
|
99
|
|
|
(235
|
)
|
||
|
|
|
|
|
|
||
Comprehensive income
|
594
|
|
|
238
|
|
||
Comprehensive income attributable to noncontrolling interests
|
5
|
|
|
4
|
|
||
Comprehensive income attributable to BHE shareholders
|
$
|
589
|
|
|
$
|
234
|
|
|
BHE Shareholders' Equity
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
|
|
|
|||||||||||||
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
Total
|
|||||||||||||||
|
Shares
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Loss, Net
|
|
Interests
|
|
Equity
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2014
|
77
|
|
|
$
|
—
|
|
|
$
|
6,423
|
|
|
$
|
14,513
|
|
|
$
|
(494
|
)
|
|
$
|
131
|
|
|
$
|
20,573
|
|
Adoption of ASC 853
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
11
|
|
|
67
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
469
|
|
|
—
|
|
|
3
|
|
|
472
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235
|
)
|
|
—
|
|
|
(235
|
)
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Common stock purchases
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
||||||
Balance, March 31, 2015
|
77
|
|
|
$
|
—
|
|
|
$
|
6,420
|
|
|
$
|
15,005
|
|
|
$
|
(729
|
)
|
|
$
|
139
|
|
|
$
|
20,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2015
|
77
|
|
|
$
|
—
|
|
|
$
|
6,403
|
|
|
$
|
16,906
|
|
|
$
|
(908
|
)
|
|
$
|
134
|
|
|
$
|
22,535
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
4
|
|
|
494
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
99
|
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Balance, March 31, 2016
|
77
|
|
|
$
|
—
|
|
|
$
|
6,403
|
|
|
$
|
17,396
|
|
|
$
|
(809
|
)
|
|
$
|
134
|
|
|
$
|
23,124
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
495
|
|
|
$
|
473
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
626
|
|
|
587
|
|
||
Allowance for equity funds
|
(15
|
)
|
|
(31
|
)
|
||
Equity income, net of distributions
|
(16
|
)
|
|
(25
|
)
|
||
Changes in regulatory assets and liabilities
|
60
|
|
|
152
|
|
||
Deferred income taxes and amortization of investment tax credits
|
72
|
|
|
206
|
|
||
Other, net
|
3
|
|
|
(10
|
)
|
||
Changes in other operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Trade receivables and other assets
|
219
|
|
|
(18
|
)
|
||
Derivative collateral, net
|
(3
|
)
|
|
(21
|
)
|
||
Pension and other postretirement benefit plans
|
(6
|
)
|
|
(4
|
)
|
||
Accrued property, income and other taxes
|
(2
|
)
|
|
(99
|
)
|
||
Accounts payable and other liabilities
|
(73
|
)
|
|
(103
|
)
|
||
Net cash flows from operating activities
|
1,360
|
|
|
1,107
|
|
||
|
|
|
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Capital expenditures
|
(1,027
|
)
|
|
(1,426
|
)
|
||
Acquisitions, net of cash acquired
|
(13
|
)
|
|
(59
|
)
|
||
Decrease in restricted cash and investments
|
41
|
|
|
12
|
|
||
Purchases of available-for-sale securities
|
(34
|
)
|
|
(68
|
)
|
||
Proceeds from sales of available-for-sale securities
|
61
|
|
|
57
|
|
||
Equity method investments
|
(273
|
)
|
|
(12
|
)
|
||
Other, net
|
(39
|
)
|
|
41
|
|
||
Net cash flows from investing activities
|
(1,284
|
)
|
|
(1,455
|
)
|
||
|
|
|
|
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Repayments of BHE junior subordinated debentures
|
(500
|
)
|
|
—
|
|
||
Common stock purchases
|
—
|
|
|
(36
|
)
|
||
Proceeds from subsidiary debt
|
—
|
|
|
484
|
|
||
Repayments of subsidiary debt
|
(310
|
)
|
|
(353
|
)
|
||
Net proceeds from short-term debt
|
722
|
|
|
163
|
|
||
Other, net
|
(11
|
)
|
|
(19
|
)
|
||
Net cash flows from financing activities
|
(99
|
)
|
|
239
|
|
||
|
|
|
|
|
|
||
Effect of exchange rate changes
|
1
|
|
|
(1
|
)
|
||
|
|
|
|
|
|
||
Net change in cash and cash equivalents
|
(22
|
)
|
|
(110
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,108
|
|
|
617
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,086
|
|
|
$
|
507
|
|
(
1
)
|
General
|
(
3
)
|
Property, Plant and Equipment, Net
|
|
|
|
As of
|
||||||
|
Depreciable
|
|
March 31,
|
|
December 31,
|
||||
|
Life
|
|
2016
|
|
2015
|
||||
Regulated assets:
|
|
|
|
|
|
||||
Utility generation, transmission and distribution systems
|
5-80 years
|
|
$
|
69,880
|
|
|
$
|
69,248
|
|
Interstate natural gas pipeline assets
|
3-80 years
|
|
6,798
|
|
|
6,755
|
|
||
|
|
|
76,678
|
|
|
76,003
|
|
||
Accumulated depreciation and amortization
|
|
|
(23,084
|
)
|
|
(22,682
|
)
|
||
Regulated assets, net
|
|
|
53,594
|
|
|
53,321
|
|
||
|
|
|
|
|
|
|
|
||
Nonregulated assets:
|
|
|
|
|
|
|
|
||
Independent power plants
|
5-30 years
|
|
4,781
|
|
|
4,751
|
|
||
Other assets
|
3-30 years
|
|
884
|
|
|
875
|
|
||
|
|
|
5,665
|
|
|
5,626
|
|
||
Accumulated depreciation and amortization
|
|
|
(864
|
)
|
|
(805
|
)
|
||
Nonregulated assets, net
|
|
|
4,801
|
|
|
4,821
|
|
||
|
|
|
|
|
|
|
|
||
Net operating assets
|
|
|
58,395
|
|
|
58,142
|
|
||
Construction work-in-progress
|
|
|
2,757
|
|
|
2,627
|
|
||
Property, plant and equipment, net
|
|
|
$
|
61,152
|
|
|
$
|
60,769
|
|
(
4
)
|
Investments and Restricted Cash and Investments
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
Investments:
|
|
|
|
||||
BYD Company Limited common stock
|
$
|
1,291
|
|
|
$
|
1,238
|
|
Rabbi trusts
|
384
|
|
|
380
|
|
||
Other
|
150
|
|
|
130
|
|
||
Total investments
|
1,825
|
|
|
1,748
|
|
||
|
|
|
|
|
|
||
Equity method investments:
|
|
|
|
||||
Electric Transmission Texas, LLC
|
609
|
|
|
585
|
|
||
BHE Renewables tax equity investments
|
429
|
|
|
168
|
|
||
Bridger Coal Company
|
185
|
|
|
190
|
|
||
Other
|
170
|
|
|
160
|
|
||
Total equity method investments
|
1,393
|
|
|
1,103
|
|
||
|
|
|
|
||||
Restricted cash and investments:
|
|
|
|
|
|
||
Quad Cities Station nuclear decommissioning trust funds
|
436
|
|
|
429
|
|
||
Solar Star and Topaz Projects
|
26
|
|
|
95
|
|
||
Other
|
161
|
|
|
129
|
|
||
Total restricted cash and investments
|
623
|
|
|
653
|
|
||
|
|
|
|
|
|
||
Total investments and restricted cash and investments
|
$
|
3,841
|
|
|
$
|
3,504
|
|
|
|
|
|
||||
Reflected as:
|
|
|
|
||||
Current assets
|
$
|
122
|
|
|
$
|
137
|
|
Noncurrent assets
|
3,719
|
|
|
3,367
|
|
||
Total investments and restricted cash and investments
|
$
|
3,841
|
|
|
$
|
3,504
|
|
(
5
)
|
Recent Financing Transactions
|
(
6
)
|
Income Taxes
|
|
Three-Month Periods
|
||||
|
Ended March 31,
|
||||
|
2016
|
|
2015
|
||
|
|
|
|
||
Federal statutory income tax rate
|
35
|
%
|
|
35
|
%
|
Income tax credits
|
(14
|
)
|
|
(11
|
)
|
State income tax, net of federal income tax benefit
|
(4
|
)
|
|
2
|
|
Income tax effect of foreign income
|
(5
|
)
|
|
(4
|
)
|
Equity income
|
2
|
|
|
2
|
|
Other, net
|
—
|
|
|
(2
|
)
|
Effective income tax rate
|
14
|
%
|
|
22
|
%
|
(
7
)
|
Employee Benefit Plans
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Pension:
|
|
|
|
||||
Service cost
|
$
|
8
|
|
|
$
|
8
|
|
Interest cost
|
31
|
|
|
30
|
|
||
Expected return on plan assets
|
(40
|
)
|
|
(42
|
)
|
||
Net amortization
|
11
|
|
|
13
|
|
||
Net periodic benefit cost
|
$
|
10
|
|
|
$
|
9
|
|
|
|
|
|
||||
Other postretirement:
|
|
|
|
||||
Service cost
|
$
|
3
|
|
|
$
|
4
|
|
Interest cost
|
8
|
|
|
7
|
|
||
Expected return on plan assets
|
(11
|
)
|
|
(12
|
)
|
||
Net amortization
|
(3
|
)
|
|
(3
|
)
|
||
Net periodic benefit credit
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Service cost
|
$
|
5
|
|
|
$
|
6
|
|
Interest cost
|
19
|
|
|
20
|
|
||
Expected return on plan assets
|
(29
|
)
|
|
(29
|
)
|
||
Net amortization
|
12
|
|
|
16
|
|
||
Net periodic benefit cost
|
$
|
7
|
|
|
$
|
13
|
|
(
8
)
|
Risk Management and Hedging Activities
|
|
Other
|
|
|
|
Other
|
|
Other
|
|
|
||||||||||
|
Current
|
|
Other
|
|
Current
|
|
Long-term
|
|
|
||||||||||
|
Assets
|
|
Assets
|
|
Liabilities
|
|
Liabilities
|
|
Total
|
||||||||||
As of March 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Not designated as hedging contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
(1)
|
$
|
20
|
|
|
$
|
85
|
|
|
$
|
11
|
|
|
$
|
2
|
|
|
$
|
118
|
|
Commodity liabilities
(1)
|
(1
|
)
|
|
—
|
|
|
(117
|
)
|
|
(174
|
)
|
|
(292
|
)
|
|||||
Interest rate assets
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Interest rate liabilities
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(12
|
)
|
|
(17
|
)
|
|||||
Total
|
30
|
|
|
85
|
|
|
(111
|
)
|
|
(184
|
)
|
|
(180
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Designated as hedging contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commodity liabilities
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
(26
|
)
|
|
(73
|
)
|
|||||
Interest rate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate liabilities
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(7
|
)
|
|
(11
|
)
|
|||||
Total
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
(33
|
)
|
|
(84
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total derivatives
|
30
|
|
|
85
|
|
|
(162
|
)
|
|
(217
|
)
|
|
(264
|
)
|
|||||
Cash collateral receivable
|
—
|
|
|
—
|
|
|
47
|
|
|
66
|
|
|
113
|
|
|||||
Total derivatives - net basis
|
$
|
30
|
|
|
$
|
85
|
|
|
$
|
(115
|
)
|
|
$
|
(151
|
)
|
|
$
|
(151
|
)
|
|
Other
|
|
|
|
Other
|
|
Other
|
|
|
||||||||||
|
Current
|
|
Other
|
|
Current
|
|
Long-term
|
|
|
||||||||||
|
Assets
|
|
Assets
|
|
Liabilities
|
|
Liabilities
|
|
Total
|
||||||||||
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Not designated as hedging contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
(1)
|
$
|
25
|
|
|
$
|
72
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
106
|
|
Commodity liabilities
(1)
|
(4
|
)
|
|
—
|
|
|
(113
|
)
|
|
(175
|
)
|
|
(292
|
)
|
|||||
Interest rate assets
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Interest rate liabilities
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|||||
Total
|
28
|
|
|
72
|
|
|
(109
|
)
|
|
(179
|
)
|
|
(188
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|||||
Commodity liabilities
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(17
|
)
|
|
(50
|
)
|
|||||
Interest rate assets
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Interest rate liabilities
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|||||
Total
|
—
|
|
|
3
|
|
|
(36
|
)
|
|
(16
|
)
|
|
(49
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total derivatives
|
28
|
|
|
75
|
|
|
(145
|
)
|
|
(195
|
)
|
|
(237
|
)
|
|||||
Cash collateral receivable
|
—
|
|
|
—
|
|
|
40
|
|
|
63
|
|
|
103
|
|
|||||
Total derivatives - net basis
|
$
|
28
|
|
|
$
|
75
|
|
|
$
|
(105
|
)
|
|
$
|
(132
|
)
|
|
$
|
(134
|
)
|
(1)
|
The Company's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of
March 31, 2016
and
December 31, 2015
, a net regulatory asset of
$253 million
and
$250 million
, respectively, was recorded related to the net derivative liability of
$174 million
and
$186 million
, respectively. The difference between the net regulatory asset and the net derivative liability relates primarily to a power purchase agreement derivative at BHE Renewables.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
250
|
|
|
$
|
223
|
|
Changes in fair value recognized in net regulatory assets
|
36
|
|
|
60
|
|
||
Net gains reclassified to operating revenue
|
—
|
|
|
9
|
|
||
Net losses reclassified to cost of sales
|
(33
|
)
|
|
(37
|
)
|
||
Ending balance
|
$
|
253
|
|
|
$
|
255
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
46
|
|
|
$
|
32
|
|
Changes in fair value recognized in OCI
|
48
|
|
|
(8
|
)
|
||
Net gains reclassified to operating revenue
|
—
|
|
|
1
|
|
||
Net (losses) gains reclassified to cost of sales
|
(22
|
)
|
|
2
|
|
||
Ending balance
|
$
|
72
|
|
|
$
|
27
|
|
|
Unit of
|
|
March 31,
|
|
December 31,
|
||
|
Measure
|
|
2016
|
|
2015
|
||
Electricity purchases
|
Megawatt hours
|
|
11
|
|
|
10
|
|
Natural gas purchases
|
Decatherms
|
|
360
|
|
|
317
|
|
Fuel purchases
|
Gallons
|
|
9
|
|
|
11
|
|
Interest rate swaps
|
US$
|
|
653
|
|
|
653
|
|
Mortgage sale commitments, net
|
US$
|
|
(213
|
)
|
|
(312
|
)
|
(
9
)
|
Fair Value Measurements
|
•
|
Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
|
•
|
Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
|
•
|
Level 3 — Unobservable inputs reflect the Company's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data.
|
|
|
Input Levels for Fair Value Measurements
|
|
|
|
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
(1)
|
|
Total
|
||||||||||
As of March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
101
|
|
|
$
|
(14
|
)
|
|
$
|
104
|
|
Interest rate derivatives
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
237
|
|
|
—
|
|
|
—
|
|
|
237
|
|
|||||
Money market mutual funds
(2)
|
|
504
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
504
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States government obligations
|
|
142
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|||||
International government obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate obligations
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|||||
Municipal obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Agency, asset and mortgage-backed obligations
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States companies
|
|
242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|||||
International companies
|
|
1,298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,298
|
|
|||||
Investment funds
|
|
161
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|||||
|
|
$
|
2,347
|
|
|
$
|
296
|
|
|
$
|
138
|
|
|
$
|
(14
|
)
|
|
$
|
2,767
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commodity derivatives
|
|
$
|
(10
|
)
|
|
$
|
(312
|
)
|
|
$
|
(43
|
)
|
|
$
|
127
|
|
|
$
|
(238
|
)
|
Interest rate derivatives
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
|
|
$
|
(10
|
)
|
|
$
|
(340
|
)
|
|
$
|
(43
|
)
|
|
$
|
127
|
|
|
$
|
(266
|
)
|
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
93
|
|
|
$
|
(16
|
)
|
|
$
|
93
|
|
Interest rate derivatives
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
10
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|||||
Money market mutual funds
(2)
|
|
421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
421
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States government obligations
|
|
133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133
|
|
|||||
International government obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate obligations
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Municipal obligations
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Agency, asset and mortgage-backed obligations
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States companies
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||
International companies
|
|
1,244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,244
|
|
|||||
Investment funds
|
|
136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|||||
|
|
$
|
2,173
|
|
|
$
|
393
|
|
|
$
|
142
|
|
|
$
|
(16
|
)
|
|
$
|
2,692
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
(13
|
)
|
|
$
|
(283
|
)
|
|
$
|
(46
|
)
|
|
$
|
119
|
|
|
$
|
(223
|
)
|
Interest rate derivatives
|
|
—
|
|
|
(13
|
)
|
|
(1
|
)
|
|
—
|
|
|
(14
|
)
|
|||||
|
|
$
|
(13
|
)
|
|
$
|
(296
|
)
|
|
$
|
(47
|
)
|
|
$
|
119
|
|
|
$
|
(237
|
)
|
(1)
|
Represents netting under master netting arrangements and a net cash collateral receivable of
$113 million
and
$103 million
as of
March 31, 2016
and
December 31, 2015
, respectively.
|
(2)
|
Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
|
|
Three-Month Periods
|
||||||||||
|
Ended March 31,
|
||||||||||
|
|
|
Interest
|
|
Auction
|
||||||
|
Commodity
|
|
Rate
|
|
Rate
|
||||||
|
Derivatives
|
|
Derivatives
|
|
Securities
|
||||||
2016:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
47
|
|
|
$
|
4
|
|
|
$
|
44
|
|
Changes included in earnings
|
19
|
|
|
25
|
|
|
—
|
|
|||
Changes in fair value recognized in OCI
|
(6
|
)
|
|
—
|
|
|
4
|
|
|||
Changes in fair value recognized in net regulatory assets
|
(6
|
)
|
|
—
|
|
|
—
|
|
|||
Redemptions
|
—
|
|
|
—
|
|
|
(22
|
)
|
|||
Settlements
|
4
|
|
|
(18
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
58
|
|
|
$
|
11
|
|
|
$
|
26
|
|
|
Three-Month Periods
|
||||||||||
|
Ended March 31,
|
||||||||||
|
|
|
Interest
|
|
Auction
|
||||||
|
Commodity
|
|
Rate
|
|
Rate
|
||||||
|
Derivatives
|
|
Derivatives
|
|
Securities
|
||||||
2015:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
45
|
|
Changes included in earnings
|
8
|
|
|
21
|
|
|
—
|
|
|||
Changes in fair value recognized in OCI
|
1
|
|
|
—
|
|
|
(1
|
)
|
|||
Changes in fair value recognized in net regulatory assets
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
Settlements
|
(8
|
)
|
|
(16
|
)
|
|
—
|
|
|||
Transfers from Level 2
|
—
|
|
|
3
|
|
|
—
|
|
|||
Ending balance
|
$
|
49
|
|
|
$
|
8
|
|
|
$
|
44
|
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
37,313
|
|
|
$
|
42,878
|
|
|
$
|
37,972
|
|
|
$
|
41,785
|
|
(
10
)
|
Commitments and Contingencies
|
(
11
)
|
Components of Other Comprehensive Income (Loss), Net
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
||||||||||
|
|
Unrecognized
|
|
Foreign
|
|
Gains on
|
|
Unrealized
|
|
AOCI
|
||||||||||
|
|
Amounts on
|
|
Currency
|
|
Available-
|
|
Gains (Losses)
|
|
Attributable
|
||||||||||
|
|
Retirement
|
|
Translation
|
|
For-Sale
|
|
on Cash
|
|
To BHE
|
||||||||||
|
|
Benefits
|
|
Adjustment
|
|
Securities
|
|
Flow Hedges
|
|
Shareholders, Net
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2014
|
|
$
|
(490
|
)
|
|
$
|
(412
|
)
|
|
$
|
390
|
|
|
$
|
18
|
|
|
$
|
(494
|
)
|
Other comprehensive income (loss)
|
|
22
|
|
|
(424
|
)
|
|
166
|
|
|
1
|
|
|
(235
|
)
|
|||||
Balance, March 31, 2015
|
|
$
|
(468
|
)
|
|
$
|
(836
|
)
|
|
$
|
556
|
|
|
$
|
19
|
|
|
$
|
(729
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2015
|
|
$
|
(438
|
)
|
|
$
|
(1,092
|
)
|
|
$
|
615
|
|
|
$
|
7
|
|
|
$
|
(908
|
)
|
Other comprehensive income (loss)
|
|
22
|
|
|
67
|
|
|
33
|
|
|
(23
|
)
|
|
99
|
|
|||||
Balance, March 31, 2016
|
|
$
|
(416
|
)
|
|
$
|
(1,025
|
)
|
|
$
|
648
|
|
|
$
|
(16
|
)
|
|
$
|
(809
|
)
|
(
12
)
|
Segment Information
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
PacifiCorp
|
$
|
1,252
|
|
|
$
|
1,250
|
|
MidAmerican Funding
|
626
|
|
|
727
|
|
||
NV Energy
|
615
|
|
|
706
|
|
||
Northern Powergrid
|
279
|
|
|
324
|
|
||
BHE Pipeline Group
|
315
|
|
|
332
|
|
||
BHE Transmission
|
158
|
|
|
125
|
|
||
BHE Renewables
|
139
|
|
|
124
|
|
||
HomeServices
|
491
|
|
|
448
|
|
||
BHE and Other
(1)
|
166
|
|
|
185
|
|
||
Total operating revenue
|
$
|
4,041
|
|
|
$
|
4,221
|
|
|
|
|
|
||||
Depreciation and amortization:
|
|
|
|
||||
PacifiCorp
|
$
|
197
|
|
|
$
|
194
|
|
MidAmerican Funding
|
110
|
|
|
100
|
|
||
NV Energy
|
104
|
|
|
101
|
|
||
Northern Powergrid
|
50
|
|
|
48
|
|
||
BHE Pipeline Group
|
53
|
|
|
50
|
|
||
BHE Transmission
|
50
|
|
|
38
|
|
||
BHE Renewables
|
56
|
|
|
49
|
|
||
HomeServices
|
6
|
|
|
6
|
|
||
BHE and Other
(1)
|
—
|
|
|
1
|
|
||
Total depreciation and amortization
|
$
|
626
|
|
|
$
|
587
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating income:
|
|
|
|
||||
PacifiCorp
|
$
|
324
|
|
|
$
|
273
|
|
MidAmerican Funding
|
100
|
|
|
101
|
|
||
NV Energy
|
89
|
|
|
121
|
|
||
Northern Powergrid
|
158
|
|
|
193
|
|
||
BHE Pipeline Group
|
192
|
|
|
200
|
|
||
BHE Transmission
|
76
|
|
|
46
|
|
||
BHE Renewables
|
24
|
|
|
6
|
|
||
HomeServices
|
(1
|
)
|
|
(2
|
)
|
||
BHE and Other
(1)
|
(9
|
)
|
|
(8
|
)
|
||
Total operating income
|
953
|
|
|
930
|
|
||
Interest expense
|
(473
|
)
|
|
(472
|
)
|
||
Capitalized interest
|
11
|
|
|
29
|
|
||
Allowance for equity funds
|
15
|
|
|
31
|
|
||
Interest and dividend income
|
27
|
|
|
26
|
|
||
Other, net
|
10
|
|
|
26
|
|
||
Total income before income tax expense and equity income
|
$
|
543
|
|
|
$
|
570
|
|
Interest expense:
|
|
|
|
||||
PacifiCorp
|
$
|
95
|
|
|
$
|
95
|
|
MidAmerican Funding
|
54
|
|
|
50
|
|
||
NV Energy
|
67
|
|
|
63
|
|
||
Northern Powergrid
|
36
|
|
|
35
|
|
||
BHE Pipeline Group
|
13
|
|
|
18
|
|
||
BHE Transmission
|
36
|
|
|
36
|
|
||
BHE Renewables
|
49
|
|
|
46
|
|
||
HomeServices
|
1
|
|
|
1
|
|
||
BHE and Other
(1)
|
122
|
|
|
128
|
|
||
Total interest expense
|
$
|
473
|
|
|
$
|
472
|
|
Operating revenue by country:
|
|
|
|
||||
United States
|
$
|
3,599
|
|
|
$
|
3,769
|
|
United Kingdom
|
279
|
|
|
324
|
|
||
Canada
|
160
|
|
|
127
|
|
||
Philippines and other
|
3
|
|
|
1
|
|
||
Total operating revenue by country
|
$
|
4,041
|
|
|
$
|
4,221
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
Total assets:
|
|
|
|
||||
PacifiCorp
|
$
|
23,590
|
|
|
$
|
23,550
|
|
MidAmerican Funding
|
16,330
|
|
|
16,315
|
|
||
NV Energy
|
14,438
|
|
|
14,656
|
|
||
Northern Powergrid
|
7,272
|
|
|
7,317
|
|
||
BHE Pipeline Group
|
5,101
|
|
|
4,953
|
|
||
BHE Transmission
|
8,136
|
|
|
7,553
|
|
||
BHE Renewables
|
6,156
|
|
|
5,892
|
|
||
HomeServices
|
1,684
|
|
|
1,705
|
|
||
BHE and Other
(1)
|
1,539
|
|
|
1,677
|
|
||
Total assets
|
$
|
84,246
|
|
|
$
|
83,618
|
|
(1)
|
The differences between the reportable segment amounts and the consolidated amounts, described as
BHE and Other
, relate principally to other entities, corporate functions and intersegment eliminations.
|
|
|
|
|
|
|
|
|
|
BHE
|
|
|
|
|
|
|
|
BHE
|
|
|
||||||||||||||||||||
|
|
|
MidAmerican
|
|
NV
|
|
Northern
|
|
Pipeline
|
|
BHE
|
|
BHE
|
|
Home-
|
|
and
|
|
|
||||||||||||||||||||
|
PacifiCorp
|
|
Funding
|
|
Energy
|
|
Powergrid
|
|
Group
|
|
Transmission
|
|
Renewables
|
|
Services
|
|
Other
|
|
Total
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
December 31, 2015
|
$
|
1,129
|
|
|
$
|
2,102
|
|
|
$
|
2,369
|
|
|
$
|
1,056
|
|
|
$
|
101
|
|
|
$
|
1,428
|
|
|
$
|
95
|
|
|
$
|
794
|
|
|
$
|
2
|
|
|
$
|
9,076
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
72
|
|
||||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||||||
March 31, 2016
|
$
|
1,129
|
|
|
$
|
2,102
|
|
|
$
|
2,369
|
|
|
$
|
1,036
|
|
|
$
|
95
|
|
|
$
|
1,519
|
|
|
$
|
95
|
|
|
$
|
797
|
|
|
$
|
3
|
|
|
$
|
9,145
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
First Quarter
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|||||||||
Net income attributable to BHE shareholders:
|
|
|
|
|
|
|
|
|||||||
PacifiCorp
|
$
|
165
|
|
|
$
|
134
|
|
|
$
|
31
|
|
|
23
|
%
|
MidAmerican Funding
|
73
|
|
|
95
|
|
|
(22
|
)
|
|
(23
|
)
|
|||
NV Energy
|
21
|
|
|
44
|
|
|
(23
|
)
|
|
(52
|
)
|
|||
Northern Powergrid
|
98
|
|
|
127
|
|
|
(29
|
)
|
|
(23
|
)
|
|||
BHE Pipeline Group
|
109
|
|
|
112
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
BHE Transmission
|
48
|
|
|
43
|
|
|
5
|
|
|
12
|
|
|||
BHE Renewables
|
12
|
|
|
—
|
|
|
12
|
|
|
*
|
||||
HomeServices
|
1
|
|
|
(2
|
)
|
|
3
|
|
|
*
|
||||
BHE and Other
|
(37
|
)
|
|
(84
|
)
|
|
47
|
|
|
56
|
|
|||
Total net income attributable to BHE shareholders
|
$
|
490
|
|
|
$
|
469
|
|
|
$
|
21
|
|
|
4
|
|
•
|
PacifiCorp's net income increased due to higher margins of $51 million, partially offset by lower AFUDC of $5 million. Margins increased primarily due to lower average cost of natural gas, lower coal-fueled generation, higher retail customer load, higher retail rates and lower purchased electricity prices, partially offset by higher natural gas-fueled generation and lower wholesale electricity revenue from lower volumes and prices. Customer load increased 1.0% due to the impacts of weather on residential and commercial customer loads, an increase in the average number of residential and commercial customers primarily in Utah and higher residential customer usage in Oregon, partially offset by lower industrial customer usage across the service territory and lower residential customer usage in Utah.
|
•
|
MidAmerican Funding's net income decreased due to a pre-tax gain of $13 million in 2015 on the sale of a generating facility lease, higher depreciation and amortization of $10 million due to wind-powered generation and other plant placed in-service, lower recognized production tax credits of $8 million, higher interest expense of $4 million primarily due to the issuance of first mortgage bonds in October 2015 and lower natural gas margins of $3 million due to warmer winter temperatures, partially offset by lower fossil-fueled generation maintenance of $4 million and higher electric margins of $3 million. Electric margins reflect lower energy costs, higher retail rates in Iowa and higher transmission revenue, partially offset by lower recoveries through bill riders, lower wholesale revenue and lower retail sales volumes.
|
•
|
NV Energy's net income decreased due to higher operating expense of $28 million, higher depreciation and amortization of $3 million primarily due to higher plant in-service and lower electric margins of $2 million, partially offset by higher natural gas margins of $2 million. Operating expense increased due to benefits from changes in contingent liabilities in 2015 and planned maintenance and other generating costs.
|
•
|
Northern Powergrid's net income decreased due to lower distribution revenues mainly reflecting the impact of the new price control period effective April 1, 2015 and the stronger United States dollar of $6 million.
|
•
|
BHE Pipeline Group's net income decreased due to lower transportation revenue at Northern Natural Gas from lower volumes and rates due to mild temperatures, partially offset by lower operating expenses due to the timing of overhauls and pipeline integrity projects and lower interest expense from the early redemption in December 2015 of the 6.676% Senior Notes at Kern River.
|
•
|
BHE Transmission's net income increased primarily due to additional assets placed in-service and lower operating expenses at AltaLink, partially offset by the stronger United States dollar of $4 million.
|
•
|
BHE Renewables' net income increased due primarily to higher wind generation, a favorable change in the valuation of a power purchase agreement derivative and higher production tax credits of $9 million, partially offset by higher interest expense and lower capitalized interest at the Solar Star project and unfavorable movements in the Pinyon Pines interest rate swaps.
|
•
|
HomeServices' net income increased largely due to a $2 million gain in 2016 from the acquisition of interests in equity method investments. Higher earnings at mortgage businesses from improved revenues were largely offset by lower earnings at brokerage businesses due to higher operating expenses.
|
•
|
BHE and Other net loss decreased due primarily to favorable deferred state income tax benefits and an increase in federal income tax credits recognized on a consolidated basis.
|
|
First Quarter
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|||||||||
Operating revenue:
|
|
|
|
|
|
|
|
|||||||
PacifiCorp
|
$
|
1,252
|
|
|
$
|
1,250
|
|
|
$
|
2
|
|
|
—
|
%
|
MidAmerican Funding
|
626
|
|
|
727
|
|
|
(101
|
)
|
|
(14
|
)
|
|||
NV Energy
|
615
|
|
|
706
|
|
|
(91
|
)
|
|
(13
|
)
|
|||
Northern Powergrid
|
279
|
|
|
324
|
|
|
(45
|
)
|
|
(14
|
)
|
|||
BHE Pipeline Group
|
315
|
|
|
332
|
|
|
(17
|
)
|
|
(5
|
)
|
|||
BHE Transmission
|
158
|
|
|
125
|
|
|
33
|
|
|
26
|
|
|||
BHE Renewables
|
139
|
|
|
124
|
|
|
15
|
|
|
12
|
|
|||
HomeServices
|
491
|
|
|
448
|
|
|
43
|
|
|
10
|
|
|||
BHE and Other
|
166
|
|
|
185
|
|
|
(19
|
)
|
|
(10
|
)
|
|||
Total operating revenue
|
$
|
4,041
|
|
|
$
|
4,221
|
|
|
$
|
(180
|
)
|
|
(4
|
)
|
Operating income:
|
|
|
|
|
|
|
|
|||||||
PacifiCorp
|
$
|
324
|
|
|
$
|
273
|
|
|
$
|
51
|
|
|
19
|
%
|
MidAmerican Funding
|
100
|
|
|
101
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
NV Energy
|
89
|
|
|
121
|
|
|
(32
|
)
|
|
(26
|
)
|
|||
Northern Powergrid
|
158
|
|
|
193
|
|
|
(35
|
)
|
|
(18
|
)
|
|||
BHE Pipeline Group
|
192
|
|
|
200
|
|
|
(8
|
)
|
|
(4
|
)
|
|||
BHE Transmission
|
76
|
|
|
46
|
|
|
30
|
|
|
65
|
|
|||
BHE Renewables
|
24
|
|
|
6
|
|
|
18
|
|
|
*
|
||||
HomeServices
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
50
|
|
|||
BHE and Other
|
(9
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|||
Total operating income
|
$
|
953
|
|
|
$
|
930
|
|
|
$
|
23
|
|
|
2
|
|
|
First Quarter
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|||||||||
|
|
|
|
|
|
|
|
|||||||
Subsidiary debt
|
$
|
349
|
|
|
$
|
341
|
|
|
$
|
8
|
|
|
2
|
%
|
BHE senior debt and other
|
102
|
|
|
103
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
BHE junior subordinated debentures
|
22
|
|
|
28
|
|
|
(6
|
)
|
|
(21
|
)
|
|||
Total interest expense
|
$
|
473
|
|
|
$
|
472
|
|
|
$
|
1
|
|
|
—
|
|
|
|
|
|
|
MidAmerican
|
|
NV
|
|
Northern
|
|
|
|
|
|
|
||||||||||||||||
|
BHE
|
|
PacifiCorp
|
|
Funding
|
|
Energy
|
|
Powergrid
|
|
AltaLink
|
|
Other
|
|
Total
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
73
|
|
|
$
|
167
|
|
|
$
|
2
|
|
|
$
|
483
|
|
|
$
|
40
|
|
|
$
|
9
|
|
|
$
|
312
|
|
|
$
|
1,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Credit facilities
|
2,000
|
|
|
1,200
|
|
|
609
|
|
|
650
|
|
|
215
|
|
|
865
|
|
|
953
|
|
|
6,492
|
|
||||||||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Short-term debt
|
(805
|
)
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
(460
|
)
|
|
(387
|
)
|
|
(1,722
|
)
|
||||||||
Tax-exempt bond support and letters of credit
|
(11
|
)
|
|
(150
|
)
|
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(361
|
)
|
||||||||
Net credit facilities
|
1,184
|
|
|
1,050
|
|
|
349
|
|
|
650
|
|
|
215
|
|
|
395
|
|
|
566
|
|
|
4,409
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total net liquidity
|
$
|
1,257
|
|
|
$
|
1,217
|
|
|
$
|
351
|
|
|
$
|
1,133
|
|
|
$
|
255
|
|
|
$
|
404
|
|
|
$
|
878
|
|
|
$
|
5,495
|
|
Credit facilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Maturity dates
|
2017
|
|
|
2017, 2018
|
|
|
2016, 2018
|
|
|
2018
|
|
|
2020
|
|
|
2017, 2020
|
|
|
2016, 2018
|
|
|
|
Three-Month Periods
|
|
Annual
|
||||||||
|
Ended March 31,
|
|
Forecast
|
||||||||
|
2015
|
|
2016
|
|
2016
|
||||||
Capital expenditures by business
:
|
|
|
|
|
|
||||||
PacifiCorp
|
$
|
208
|
|
|
$
|
201
|
|
|
$
|
795
|
|
MidAmerican Funding
|
244
|
|
|
332
|
|
|
1,145
|
|
|||
NV Energy
|
115
|
|
|
146
|
|
|
476
|
|
|||
Northern Powergrid
|
162
|
|
|
155
|
|
|
609
|
|
|||
BHE Pipeline Group
|
46
|
|
|
30
|
|
|
276
|
|
|||
BHE Transmission
|
265
|
|
|
112
|
|
|
491
|
|
|||
BHE Renewables
|
382
|
|
|
45
|
|
|
557
|
|
|||
HomeServices
|
3
|
|
|
4
|
|
|
25
|
|
|||
BHE and Other
|
1
|
|
|
2
|
|
|
26
|
|
|||
Total
|
$
|
1,426
|
|
|
$
|
1,027
|
|
|
$
|
4,400
|
|
Capital expenditures by type:
|
|
|
|
|
|
||||||
Wind generation
|
$
|
84
|
|
|
$
|
105
|
|
|
$
|
1,134
|
|
Solar generation
|
332
|
|
|
5
|
|
|
20
|
|
|||
Electric transmission
|
341
|
|
|
115
|
|
|
506
|
|
|||
Environmental
|
33
|
|
|
16
|
|
|
105
|
|
|||
Other development projects
|
13
|
|
|
5
|
|
|
59
|
|
|||
Electric distribution and other operating
|
623
|
|
|
781
|
|
|
2,576
|
|
|||
Total
|
$
|
1,426
|
|
|
$
|
1,027
|
|
|
$
|
4,400
|
|
◦
|
Construction of wind-powered generating facilities at
MidAmerican Energy
totaling
$69 million
and
$45 million
for the
three-month periods ended
March 31, 2016
and
2015
, respectively.
MidAmerican Energy
anticipates costs for wind-powered generating facilities will total an additional
$591 million
for
2016
.
MidAmerican Energy
is constructing 599 MW (nominal ratings) that are expected to be placed in-service in 2016, of which 48 MW (nominal ratings) had been placed in-service as of
March 31, 2016
.
|
◦
|
Construction of wind-powered generating facilities at BHE Renewables totaling
$36 million
and
$39 million
for the
three-month periods ended
March 31, 2016
and
2015
, respectively. The Jumbo Road Project with a total capacity of 300 MW achieved commercial operation in April 2015. BHE Renewables anticipates costs for wind-powered generating facilities will total an additional
$425 million
for
2016
. BHE Renewables is developing and constructing up to 472 MW of wind-powered generating facilities in Nebraska and Kansas.
|
•
|
Solar generation includes the following:
|
◦
|
Construction of the Topaz Project totaling $- million and
$43 million
for the
three-month periods ended
March 31, 2016
and
2015
, respectively. Final completion under the engineering, procurement and construction agreement occurred February 28, 2015, and project completion was achieved under the financing documents on March 30, 2015.
|
◦
|
Construction of the Solar Star Projects totaling
$5 million
and
$283 million
for the
three-month periods ended
March 31, 2016
and
2015
, respectively. Both projects declared July 1, 2015 as the commercial operation date in accordance with the power purchase agreements. Final completion under the engineering, procurement and construction agreements occurred November 30, 2015 and project completion was achieved under the financing documents on December 15, 2015.
|
•
|
Electric transmission includes investments for ALP's transmission system including directly assigned projects from the AESO, PacifiCorp's costs primarily associated with main grid reinforcement and the Energy Gateway Transmission Expansion Program and MidAmerican Energy's MVPs approved by the MISO for the construction of 245 miles of 345 kV transmission line located in Iowa and Illinois.
|
•
|
Environmental includes the installation of new or the replacement of existing emissions control equipment at certain generating facilities at the
Utilities
, including installation or upgrade of selective catalytic reduction control systems and low nitrogen oxide burners to reduce nitrogen oxides, particulate matter control systems, sulfur dioxide emissions control systems and mercury emissions control systems, as well as expenditures for the management of coal combustion residuals.
|
•
|
Electric distribution and other operating includes ongoing distribution systems infrastructure needed at the
Utilities
and
Northern Powergrid
and investments in routine expenditures for transmission, generation and other infrastructure needed to serve existing and expected demand.
|
Item 1.
|
Financial Statements
|
|
|
As of
|
||||||
|
|
March 31,
|
|
December 31,
|
||||
|
|
2016
|
|
2015
|
||||
ASSETS
|
||||||||
|
||||||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
167
|
|
|
$
|
12
|
|
Accounts receivable, net
|
|
604
|
|
|
740
|
|
||
Income taxes receivable
|
|
—
|
|
|
17
|
|
||
Inventories:
|
|
|
|
|
||||
Materials and supplies
|
|
231
|
|
|
233
|
|
||
Fuel
|
|
216
|
|
|
192
|
|
||
Regulatory assets
|
|
93
|
|
|
102
|
|
||
Other current assets
|
|
78
|
|
|
81
|
|
||
Total current assets
|
|
1,389
|
|
|
1,377
|
|
||
|
|
|
|
|
||||
Property, plant and equipment, net
|
|
19,036
|
|
|
19,026
|
|
||
Regulatory assets
|
|
1,580
|
|
|
1,583
|
|
||
Other assets
|
|
413
|
|
|
381
|
|
||
|
|
|
|
|
||||
Total assets
|
|
$
|
22,418
|
|
|
$
|
22,367
|
|
|
|
As of
|
||||||
|
|
March 31,
|
|
December 31,
|
||||
|
|
2016
|
|
2015
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
414
|
|
|
$
|
473
|
|
Income taxes payable
|
|
67
|
|
|
—
|
|
||
Accrued employee expenses
|
|
99
|
|
|
70
|
|
||
Accrued interest
|
|
106
|
|
|
115
|
|
||
Accrued property and other taxes
|
|
88
|
|
|
62
|
|
||
Short-term debt
|
|
—
|
|
|
20
|
|
||
Current portion of long-term debt and capital lease obligations
|
|
65
|
|
|
68
|
|
||
Regulatory liabilities
|
|
37
|
|
|
34
|
|
||
Other current liabilities
|
|
234
|
|
|
229
|
|
||
Total current liabilities
|
|
1,110
|
|
|
1,071
|
|
||
|
|
|
|
|
||||
Regulatory liabilities
|
|
948
|
|
|
938
|
|
||
Long-term debt and capital lease obligations
|
|
7,028
|
|
|
7,078
|
|
||
Deferred income taxes
|
|
4,738
|
|
|
4,750
|
|
||
Other long-term liabilities
|
|
1,026
|
|
|
1,027
|
|
||
Total liabilities
|
|
14,850
|
|
|
14,864
|
|
||
|
|
|
|
|
||||
Commitments and contingencies (Note 7)
|
|
|
|
|
||||
|
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
|
||||
Preferred stock
|
|
2
|
|
|
2
|
|
||
Common stock - 750 shares authorized, no par value, 357 shares issued and outstanding
|
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
|
4,479
|
|
|
4,479
|
|
||
Retained earnings
|
|
3,098
|
|
|
3,033
|
|
||
Accumulated other comprehensive loss, net
|
|
(11
|
)
|
|
(11
|
)
|
||
Total shareholders' equity
|
|
7,568
|
|
|
7,503
|
|
||
|
|
|
|
|
||||
Total liabilities and shareholders' equity
|
|
$
|
22,418
|
|
|
$
|
22,367
|
|
|
|
Three-Month Periods
|
||||||
|
|
Ended March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Operating revenue
|
|
$
|
1,252
|
|
|
$
|
1,250
|
|
|
|
|
|
|
|
|
||
Operating costs and expenses:
|
|
|
|
|
||||
Energy costs
|
|
427
|
|
|
476
|
|
||
Operations and maintenance
|
|
263
|
|
|
268
|
|
||
Depreciation and amortization
|
|
190
|
|
|
189
|
|
||
Taxes, other than income taxes
|
|
48
|
|
|
45
|
|
||
Total operating costs and expenses
|
|
928
|
|
|
978
|
|
||
|
|
|
|
|
|
|
||
Operating income
|
|
324
|
|
|
272
|
|
||
|
|
|
|
|
|
|
||
Other income (expense):
|
|
|
|
|
|
|
||
Interest expense
|
|
(95
|
)
|
|
(94
|
)
|
||
Allowance for borrowed funds
|
|
4
|
|
|
6
|
|
||
Allowance for equity funds
|
|
7
|
|
|
10
|
|
||
Other, net
|
|
3
|
|
|
3
|
|
||
Total other income (expense)
|
|
(81
|
)
|
|
(75
|
)
|
||
|
|
|
|
|
|
|
||
Income before income tax expense
|
|
243
|
|
|
197
|
|
||
Income tax expense
|
|
78
|
|
|
63
|
|
||
Net income
|
|
$
|
165
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
||||||||||||
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
||||||||||||
|
|
Preferred
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Shareholders'
|
||||||||||||
|
|
Stock
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Loss, Net
|
|
Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2014
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4,479
|
|
|
$
|
3,288
|
|
|
$
|
(13
|
)
|
|
$
|
7,756
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
||||||
Common stock dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
|
—
|
|
|
(450
|
)
|
||||||
Balance, March 31, 2015
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4,479
|
|
|
$
|
2,972
|
|
|
$
|
(13
|
)
|
|
$
|
7,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2015
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4,479
|
|
|
$
|
3,033
|
|
|
$
|
(11
|
)
|
|
$
|
7,503
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
||||||
Common stock dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
(100
|
)
|
||||||
Balance, March 31, 2016
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4,479
|
|
|
$
|
3,098
|
|
|
$
|
(11
|
)
|
|
$
|
7,568
|
|
|
|
Three-Month Periods
|
||||||
|
|
Ended March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
165
|
|
|
$
|
134
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
190
|
|
|
189
|
|
||
Allowance for equity funds
|
|
(7
|
)
|
|
(10
|
)
|
||
Deferred income taxes and amortization of investment tax credits
|
|
(6
|
)
|
|
(10
|
)
|
||
Changes in regulatory assets and liabilities
|
|
29
|
|
|
21
|
|
||
Other, net
|
|
—
|
|
|
1
|
|
||
Changes in other operating assets and liabilities:
|
|
|
|
|
|
|||
Accounts receivable and other assets
|
|
104
|
|
|
89
|
|
||
Derivative collateral, net
|
|
(3
|
)
|
|
(36
|
)
|
||
Inventories
|
|
(24
|
)
|
|
5
|
|
||
Income taxes
|
|
84
|
|
|
73
|
|
||
Accounts payable and other liabilities
|
|
—
|
|
|
26
|
|
||
Net cash flows from operating activities
|
|
532
|
|
|
482
|
|
||
|
|
|
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|||
Capital expenditures
|
|
(200
|
)
|
|
(208
|
)
|
||
Other, net
|
|
(2
|
)
|
|
(25
|
)
|
||
Net cash flows from investing activities
|
|
(202
|
)
|
|
(233
|
)
|
||
|
|
|
|
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|||
Repayments of long-term debt and capital lease obligations
|
|
(55
|
)
|
|
—
|
|
||
Net (repayments of) proceeds from short-term debt
|
|
(20
|
)
|
|
190
|
|
||
Common stock dividends
|
|
(100
|
)
|
|
(450
|
)
|
||
Net cash flows from financing activities
|
|
(175
|
)
|
|
(260
|
)
|
||
|
|
|
|
|
|
|||
Net change in cash and cash equivalents
|
|
155
|
|
|
(11
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
12
|
|
|
23
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
167
|
|
|
$
|
12
|
|
|
|
|
As of
|
||||||
|
|
|
March 31,
|
|
December 31,
|
||||
|
Depreciable Life
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
|
||||
Property, plant and equipment in-service
|
5-75 years
|
|
$
|
26,822
|
|
|
$
|
26,757
|
|
Accumulated depreciation and amortization
|
|
|
(8,485
|
)
|
|
(8,360
|
)
|
||
Net property, plant and equipment in-service
|
|
|
18,337
|
|
|
18,397
|
|
||
Construction work-in-progress
|
|
|
699
|
|
|
629
|
|
||
Total property, plant and equipment, net
|
|
|
$
|
19,036
|
|
|
$
|
19,026
|
|
|
|
Three-Month Periods
|
||||||
|
|
Ended March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Pension:
|
|
|
|
|
||||
Service cost
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
|
14
|
|
|
13
|
|
||
Expected return on plan assets
|
|
(19
|
)
|
|
(19
|
)
|
||
Net amortization
|
|
8
|
|
|
10
|
|
||
Net periodic benefit cost
|
|
$
|
4
|
|
|
$
|
5
|
|
|
|
|
|
|
||||
Other postretirement:
|
|
|
|
|
||||
Service cost
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
|
4
|
|
|
4
|
|
||
Expected return on plan assets
|
|
(6
|
)
|
|
(6
|
)
|
||
Net amortization
|
|
(1
|
)
|
|
(1
|
)
|
||
Net periodic benefit credit
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Other
|
|
|
|
Other
|
|
Other
|
|
|
||||||||||
|
Current
|
|
Other
|
|
Current
|
|
Long-term
|
|
|
||||||||||
|
Assets
|
|
Assets
|
|
Liabilities
|
|
Liabilities
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
As of March 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Not designated as hedging contracts
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Commodity liabilities
|
(1
|
)
|
|
—
|
|
|
(65
|
)
|
|
(89
|
)
|
|
(155
|
)
|
|||||
Total
|
4
|
|
|
—
|
|
|
(63
|
)
|
|
(89
|
)
|
|
(148
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total derivatives
|
4
|
|
|
—
|
|
|
(63
|
)
|
|
(89
|
)
|
|
(148
|
)
|
|||||
Cash collateral receivable
|
—
|
|
|
—
|
|
|
19
|
|
|
59
|
|
|
78
|
|
|||||
Total derivatives - net basis
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
(44
|
)
|
|
$
|
(30
|
)
|
|
$
|
(70
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Not designated as hedging contracts
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
12
|
|
Commodity liabilities
|
(1
|
)
|
|
—
|
|
|
(58
|
)
|
|
(89
|
)
|
|
(148
|
)
|
|||||
Total
|
9
|
|
|
—
|
|
|
(56
|
)
|
|
(89
|
)
|
|
(136
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total derivatives
|
9
|
|
|
—
|
|
|
(56
|
)
|
|
(89
|
)
|
|
(136
|
)
|
|||||
Cash collateral receivable
|
—
|
|
|
—
|
|
|
18
|
|
|
57
|
|
|
75
|
|
|||||
Total derivatives - net basis
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
(32
|
)
|
|
$
|
(61
|
)
|
(1)
|
PacifiCorp's commodity derivatives are generally included in rates and as of
March 31, 2016
and
December 31, 2015
, a regulatory asset of
$144 million
and
$133 million
, respectively, was recorded related to the net derivative liability of
$148 million
and
$136 million
, respectively.
|
|
|
Three-Month Periods
|
||||||
|
|
Ended March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
Beginning balance
|
|
$
|
133
|
|
|
$
|
85
|
|
Changes in fair value recognized in net regulatory assets
|
|
26
|
|
|
48
|
|
||
Net gains reclassified to operating revenue
|
|
8
|
|
|
25
|
|
||
Net losses reclassified to energy costs
|
|
(23
|
)
|
|
(28
|
)
|
||
Ending balance
|
|
$
|
144
|
|
|
$
|
130
|
|
|
Unit of
|
|
March 31,
|
|
December 31,
|
||
|
Measure
|
|
2016
|
|
2015
|
||
Electricity purchases
|
Megawatt hours
|
|
2
|
|
|
1
|
|
Natural gas purchases
|
Decatherms
|
|
107
|
|
|
111
|
|
Fuel oil purchases
|
Gallons
|
|
9
|
|
|
11
|
|
•
|
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that PacifiCorp has the ability to access at the measurement date.
|
•
|
Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
|
•
|
Level 3 - Unobservable inputs reflect PacifiCorp's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. PacifiCorp develops these inputs based on the best information available, including its own data.
|
|
|
Input Levels for Fair Value Measurements
|
|
|
|
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
(1)
|
|
Total
|
||||||||||
As of March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
4
|
|
Money market mutual funds
(2)
|
|
178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178
|
|
|||||
Investment funds
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
|
|
$
|
193
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities - Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(155
|
)
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
(74
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
$
|
9
|
|
Money market mutual funds
(2)
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Investment funds
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
|
|
$
|
28
|
|
|
$
|
9
|
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities - Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(148
|
)
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
(70
|
)
|
(1)
|
Represents netting under master netting arrangements and a net cash collateral receivable of
$78 million
and
$75 million
as of
March 31, 2016
and
December 31, 2015
, respectively.
|
(2)
|
Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
|
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
|
$
|
7,061
|
|
|
$
|
8,437
|
|
|
$
|
7,114
|
|
|
$
|
8,210
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
First Quarter
|
|||||||||||||
|
|
2016
|
|
2015
|
|
Change
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|
|||||||
Operating revenue
|
|
$
|
1,252
|
|
|
$
|
1,250
|
|
|
$
|
2
|
|
|
—
|
%
|
Energy costs
|
|
427
|
|
|
476
|
|
|
(49
|
)
|
|
(10
|
)
|
|||
Gross margin
|
|
$
|
825
|
|
|
$
|
774
|
|
|
$
|
51
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales (GWh):
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
4,260
|
|
|
3,993
|
|
|
267
|
|
|
7
|
%
|
|||
Commercial
|
|
4,091
|
|
|
4,030
|
|
|
61
|
|
|
2
|
|
|||
Industrial and irrigation
|
|
4,822
|
|
|
5,037
|
|
|
(215
|
)
|
|
(4
|
)
|
|||
Other
|
|
121
|
|
|
104
|
|
|
17
|
|
|
16
|
|
|||
Total retail
|
|
13,294
|
|
|
13,164
|
|
|
130
|
|
|
1
|
|
|||
Wholesale
|
|
1,894
|
|
|
2,654
|
|
|
(760
|
)
|
|
(29
|
)
|
|||
Total sales
|
|
15,188
|
|
|
15,818
|
|
|
(630
|
)
|
|
(4
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers
|
|
|
|
|
|
|
|
|
|||||||
(in thousands)
|
|
1,833
|
|
|
1,800
|
|
|
33
|
|
|
2
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average revenue per MWh:
|
|
|
|
|
|
|
|
|
|||||||
Retail
|
|
$
|
87.99
|
|
|
$
|
85.47
|
|
|
$
|
2.52
|
|
|
3
|
%
|
Wholesale
|
|
$
|
24.53
|
|
|
$
|
33.81
|
|
|
$
|
(9.28
|
)
|
|
(27
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Sources of energy (GWh)
(1)
:
|
|
|
|
|
|
|
|
|
|||||||
Coal
|
|
8,732
|
|
|
10,352
|
|
|
(1,620
|
)
|
|
(16
|
)%
|
|||
Natural gas
|
|
2,326
|
|
|
1,674
|
|
|
652
|
|
|
39
|
|
|||
Hydroelectric
(2)
|
|
1,344
|
|
|
1,024
|
|
|
320
|
|
|
31
|
|
|||
Wind and other
(2)
|
|
1,009
|
|
|
800
|
|
|
209
|
|
|
26
|
|
|||
Total energy generated
|
|
13,411
|
|
|
13,850
|
|
|
(439
|
)
|
|
(3
|
)
|
|||
Energy purchased
|
|
2,826
|
|
|
3,121
|
|
|
(295
|
)
|
|
(9
|
)
|
|||
Total
|
|
16,237
|
|
|
16,971
|
|
|
(734
|
)
|
|
(4
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average cost of energy per MWh:
|
|
|
|
|
|
|
|
|
|||||||
Energy generated
(3)
|
|
$
|
17.89
|
|
|
$
|
19.72
|
|
|
$
|
(1.83
|
)
|
|
(9
|
)%
|
Energy purchased
|
|
$
|
48.49
|
|
|
$
|
47.37
|
|
|
$
|
1.12
|
|
|
2
|
%
|
(1)
|
GWh amounts are net of energy used by the related generating facilities.
|
(2)
|
All or some of the renewable energy attributes associated with generation from these generating facilities may be: (a) used in future years to comply with RPS or other regulatory requirements or (b) sold to third parties in the form of RECs or other environmental commodities.
|
(3)
|
The average cost per MWh of energy generated includes only the cost of fuel associated with the generating facilities.
|
•
|
$49 million of lower natural gas costs due to lower average unit costs;
|
•
|
$31 million of lower coal costs primarily due to decreased generation, including the idling of the Carbon Facility in April 2015;
|
•
|
$23 million of higher retail revenues from a 1.0% increase in retail customer load due to the impacts of weather on residential and commercial customer loads, an increase in the average number of residential and commercial customers primarily in Utah and higher residential customer usage in Oregon, partially offset by lower industrial customer usage across the service territory and lower residential customer usage in Utah;
|
•
|
$22 million of increases mainly from higher retail rates; and
|
•
|
$11 million of lower purchased electricity primarily due to lower average market prices.
|
•
|
$47 million of higher natural gas costs due to increased generation, primarily as a result of increased availability; and
|
•
|
$43 million of lower wholesale revenue due to reduced volumes and lower average wholesale prices.
|
Cash and cash equivalents
|
|
$
|
167
|
|
|
|
|
||
Credit facilities
|
|
1,200
|
|
|
Less:
|
|
|
||
Short-term debt
|
|
—
|
|
|
Tax-exempt bond support and letters of credit
|
|
(150
|
)
|
|
Net credit facilities
|
|
1,050
|
|
|
|
|
|
||
Total net liquidity
|
|
$
|
1,217
|
|
|
|
|
||
Credit facilities:
|
|
|
||
Maturity dates
|
|
2017, 2018
|
|
|
Three-Month Periods
|
|
Annual
|
||||||||
|
Ended March 31,
|
|
Forecast
|
||||||||
|
2015
|
|
2016
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Transmission system investment
|
$
|
38
|
|
|
$
|
32
|
|
|
$
|
97
|
|
Environmental
|
26
|
|
|
15
|
|
|
63
|
|
|||
Operating and other
|
144
|
|
|
153
|
|
|
635
|
|
|||
Total
|
$
|
208
|
|
|
$
|
200
|
|
|
$
|
795
|
|
•
|
Transmission system investment includes main grid reinforcement costs, construction costs for the 170-mile single-circuit 345-kV Sigurd-Red Butte transmission line that was placed in-service in May 2015 and initial development costs for several other long-term projects.
|
•
|
Environmental includes the installation of new or the replacement of existing emissions control equipment at certain generating facilities, including installation or upgrade of selective catalytic reduction control systems.
|
•
|
Remaining investments relate to operating projects that consist of routine expenditures for transmission, distribution, generation and other infrastructure needed to serve existing and expected demand.
|
Item 1.
|
Financial Statements
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1
|
|
|
$
|
103
|
|
Receivables, net
|
198
|
|
|
342
|
|
||
Income taxes receivable
|
126
|
|
|
104
|
|
||
Inventories
|
239
|
|
|
238
|
|
||
Other current assets
|
28
|
|
|
58
|
|
||
Total current assets
|
592
|
|
|
845
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
11,759
|
|
|
11,723
|
|
||
Regulatory assets
|
1,078
|
|
|
1,044
|
|
||
Investments and restricted cash and investments
|
647
|
|
|
634
|
|
||
Other assets
|
138
|
|
|
139
|
|
||
|
|
|
|
||||
Total assets
|
$
|
14,214
|
|
|
$
|
14,385
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
197
|
|
|
$
|
426
|
|
Accrued interest
|
47
|
|
|
46
|
|
||
Accrued property, income and other taxes
|
100
|
|
|
125
|
|
||
Short-term debt
|
70
|
|
|
—
|
|
||
Current portion of long-term debt
|
34
|
|
|
34
|
|
||
Other current liabilities
|
127
|
|
|
166
|
|
||
Total current liabilities
|
575
|
|
|
797
|
|
||
|
|
|
|
||||
Long-term debt
|
4,234
|
|
|
4,237
|
|
||
Deferred income taxes
|
3,133
|
|
|
3,061
|
|
||
Regulatory liabilities
|
848
|
|
|
831
|
|
||
Asset retirement obligations
|
484
|
|
|
488
|
|
||
Other long-term liabilities
|
248
|
|
|
266
|
|
||
Total liabilities
|
9,522
|
|
|
9,680
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 9)
|
|
|
|
||||
|
|
|
|
||||
Shareholder's equity:
|
|
|
|
||||
Common stock - 350 shares authorized, no par value, 71 shares issued and outstanding
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
561
|
|
|
561
|
|
||
Retained earnings
|
4,133
|
|
|
4,174
|
|
||
Accumulated other comprehensive loss, net
|
(2
|
)
|
|
(30
|
)
|
||
Total shareholder's equity
|
4,692
|
|
|
4,705
|
|
||
|
|
|
|
||||
Total liabilities and shareholder's equity
|
$
|
14,214
|
|
|
$
|
14,385
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Regulated electric
|
$
|
399
|
|
|
$
|
426
|
|
Regulated gas and other
|
226
|
|
|
296
|
|
||
Total operating revenue
|
625
|
|
|
722
|
|
||
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
||||
Cost of fuel, energy and capacity
|
92
|
|
|
122
|
|
||
Cost of gas sold and other
|
135
|
|
|
201
|
|
||
Operations and maintenance
|
160
|
|
|
170
|
|
||
Depreciation and amortization
|
110
|
|
|
100
|
|
||
Property and other taxes
|
28
|
|
|
29
|
|
||
Total operating costs and expenses
|
525
|
|
|
622
|
|
||
|
|
|
|
||||
Operating income
|
100
|
|
|
100
|
|
||
|
|
|
|
||||
Other income and (expense):
|
|
|
|
||||
Interest expense
|
(49
|
)
|
|
(44
|
)
|
||
Allowance for borrowed funds
|
1
|
|
|
2
|
|
||
Allowance for equity funds
|
4
|
|
|
5
|
|
||
Other, net
|
3
|
|
|
3
|
|
||
Total other income and (expense)
|
(41
|
)
|
|
(34
|
)
|
||
|
|
|
|
||||
Income before income tax benefit
|
59
|
|
|
66
|
|
||
Income tax benefit
|
(17
|
)
|
|
(24
|
)
|
||
|
|
|
|
||||
Income from continuing operations
|
76
|
|
|
90
|
|
||
|
|
|
|
||||
Discontinued operations (Note 3):
|
|
|
|
||||
Income from discontinued operations
|
—
|
|
|
7
|
|
||
Income tax expense
|
—
|
|
|
3
|
|
||
Income on discontinued operations
|
—
|
|
|
4
|
|
||
|
|
|
|
||||
Net income
|
$
|
76
|
|
|
$
|
94
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Net income
|
$
|
76
|
|
|
$
|
94
|
|
|
|
|
|
||||
Other comprehensive income, net of tax:
|
|
|
|
||||
Unrealized gains on available-for-sale securities, net of tax of $- and $-
|
1
|
|
|
—
|
|
||
Unrealized gains on cash flow hedges, net of tax of $- and $2
|
—
|
|
|
2
|
|
||
Total other comprehensive income, net of tax
|
1
|
|
|
2
|
|
||
|
|
|
|
||||
Comprehensive income
|
$
|
77
|
|
|
$
|
96
|
|
|
Common
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Equity
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance, December 31, 2014
|
$
|
561
|
|
|
$
|
3,712
|
|
|
$
|
(23
|
)
|
|
$
|
4,250
|
|
Net income
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Balance, March 31, 2015
|
$
|
561
|
|
|
$
|
3,806
|
|
|
$
|
(21
|
)
|
|
$
|
4,346
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, December 31, 2015
|
$
|
561
|
|
|
$
|
4,174
|
|
|
$
|
(30
|
)
|
|
$
|
4,705
|
|
Net income
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Dividend (Note 3)
|
—
|
|
|
(117
|
)
|
|
27
|
|
|
(90
|
)
|
||||
Balance, March 31, 2016
|
$
|
561
|
|
|
$
|
4,133
|
|
|
$
|
(2
|
)
|
|
$
|
4,692
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
76
|
|
|
$
|
94
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
110
|
|
|
100
|
|
||
Deferred income taxes and amortization of investment tax credits
|
11
|
|
|
—
|
|
||
Changes in other assets and liabilities
|
11
|
|
|
11
|
|
||
Other, net
|
(13
|
)
|
|
7
|
|
||
Changes in other operating assets and liabilities:
|
|
|
|
||||
Receivables, net
|
28
|
|
|
43
|
|
||
Inventories
|
(1
|
)
|
|
34
|
|
||
Derivative collateral, net
|
2
|
|
|
15
|
|
||
Contributions to pension and other postretirement benefit plans, net
|
(2
|
)
|
|
(2
|
)
|
||
Accounts payable
|
4
|
|
|
(45
|
)
|
||
Accrued property, income and other taxes, net
|
(48
|
)
|
|
(40
|
)
|
||
Other current assets and liabilities
|
(6
|
)
|
|
(11
|
)
|
||
Net cash flows from operating activities
|
172
|
|
|
206
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Utility construction expenditures
|
(332
|
)
|
|
(244
|
)
|
||
Purchases of available-for-sale securities
|
(34
|
)
|
|
(27
|
)
|
||
Proceeds from sales of available-for-sale securities
|
29
|
|
|
19
|
|
||
Other, net
|
(3
|
)
|
|
2
|
|
||
Net cash flows from investing activities
|
(340
|
)
|
|
(250
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Repayments of long-term debt
|
(4
|
)
|
|
—
|
|
||
Net proceeds from short-term debt
|
70
|
|
|
15
|
|
||
Net cash flows from financing activities
|
66
|
|
|
15
|
|
||
|
|
|
|
||||
Net change in cash and cash equivalents
|
(102
|
)
|
|
(29
|
)
|
||
Cash and cash equivalents at beginning of period
|
103
|
|
|
29
|
|
||
Cash and cash equivalents at end of period
|
$
|
1
|
|
|
$
|
—
|
|
(
1
)
|
General
|
(
2
)
|
New Accounting Pronouncements
|
(
3
)
|
Discontinued Operations
|
Receivables
|
|
$
|
115
|
|
Derivative assets
|
|
41
|
|
|
Deferred income taxes
|
|
21
|
|
|
Accounts payable
|
|
(49
|
)
|
|
Derivative liabilities
|
|
(42
|
)
|
|
Other assets and liabilities, net
|
|
4
|
|
|
Dividend, excluding accumulated other comprehensive loss, net
|
|
90
|
|
|
Accumulated other comprehensive loss, net
|
|
27
|
|
|
Dividend, including accumulated other comprehensive loss, net
|
|
$
|
117
|
|
(
4
)
|
Property, Plant and Equipment, Net
|
|
|
|
As of
|
||||||
|
|
|
March 31,
|
|
December 31,
|
||||
|
Depreciable Life
|
|
2016
|
|
2015
|
||||
Utility plant in service, net:
|
|
|
|
|
|
||||
Generation
|
20-70 years
|
|
$
|
10,499
|
|
|
$
|
10,404
|
|
Transmission
|
52-70 years
|
|
1,304
|
|
|
1,305
|
|
||
Electric distribution
|
20-70 years
|
|
3,086
|
|
|
3,059
|
|
||
Gas distribution
|
28-70 years
|
|
1,519
|
|
|
1,507
|
|
||
Utility plant in service
|
|
|
16,408
|
|
|
16,275
|
|
||
Accumulated depreciation and amortization
|
|
|
(5,312
|
)
|
|
(5,229
|
)
|
||
Utility plant in service, net
|
|
|
11,096
|
|
|
11,046
|
|
||
Nonregulated property, net:
|
|
|
|
|
|
||||
Nonregulated property gross
|
5-45 years
|
|
7
|
|
|
15
|
|
||
Accumulated depreciation and amortization
|
|
|
(1
|
)
|
|
(5
|
)
|
||
Nonregulated property, net
|
|
|
6
|
|
|
10
|
|
||
|
|
|
11,102
|
|
|
11,056
|
|
||
Construction work in progress
|
|
|
657
|
|
|
667
|
|
||
Property, plant and equipment, net
|
|
|
$
|
11,759
|
|
|
$
|
11,723
|
|
(
5
)
|
Income Taxes
|
(
6
)
|
Employee Benefit Plans
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Pension:
|
|
|
|
||||
Service cost
|
$
|
3
|
|
|
$
|
3
|
|
Interest cost
|
8
|
|
|
8
|
|
||
Expected return on plan assets
|
(11
|
)
|
|
(11
|
)
|
||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Other postretirement:
|
|
|
|
||||
Service cost
|
$
|
1
|
|
|
$
|
2
|
|
Interest cost
|
2
|
|
|
2
|
|
||
Expected return on plan assets
|
(3
|
)
|
|
(4
|
)
|
||
Net amortization
|
(1
|
)
|
|
(1
|
)
|
||
Net periodic benefit credit
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
(
7
)
|
Risk Management and Hedging Activities
|
|
Other Current
Assets
|
|
Other
Assets
|
|
Other Current
Liabilities
|
|
Other Long-term
Liabilities
|
|
Total
|
||||||||||
As of March 31, 2016:
|
|
|
|
|
|
|
|
|
|
||||||||||
Not designated as hedging contracts
(1)(2)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Commodity liabilities
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|||||
Total
|
3
|
|
|
—
|
|
|
(10
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging contracts
(2)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commodity liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total derivatives
|
3
|
|
|
—
|
|
|
(10
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|||||
Cash collateral receivable
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Total derivatives - net basis
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
(1)
|
MidAmerican Energy's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of
March 31, 2016
and
December 31, 2015
, a net regulatory
asset
of
$11 million
and
$20 million
, respectively, was recorded related to the net derivative liability of
$8 million
and
$26 million
, respectively.
|
(2)
|
The changes in derivative values from December 31, 2015, are substantially due to the transfer of MidAmerican Energy's unregulated retail services business to a subsidiary of BHE.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
20
|
|
|
$
|
38
|
|
Changes in fair value recognized in net regulatory assets
|
6
|
|
|
2
|
|
||
Net losses reclassified to operating revenue
|
(8
|
)
|
|
(16
|
)
|
||
Net losses reclassified to cost of gas sold
|
(7
|
)
|
|
(6
|
)
|
||
Ending balance
|
$
|
11
|
|
|
$
|
18
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
45
|
|
|
$
|
34
|
|
Transfer to affiliate
|
(45
|
)
|
|
—
|
|
||
Changes in fair value recognized in OCI
|
—
|
|
|
(6
|
)
|
||
Net gains reclassified to nonregulated cost of sales
|
—
|
|
|
2
|
|
||
Ending balance
|
$
|
—
|
|
|
$
|
30
|
|
|
Unit of
|
|
March 31,
|
|
December 31,
|
||
|
Measure
|
|
2016
|
|
2015
|
||
|
|
|
|
|
|
||
Electricity purchases
|
Megawatt hours
|
|
—
|
|
|
15
|
|
Natural gas purchases
|
Decatherms
|
|
12
|
|
|
17
|
|
(
8
)
|
Fair Value Measurements
|
•
|
Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that MidAmerican Energy has the ability to access at the measurement date.
|
•
|
Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
|
•
|
Level 3 — Unobservable inputs reflect MidAmerican Energy's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. MidAmerican Energy develops these inputs based on the best information available, including its own data.
|
|
|
Input Levels for Fair Value Measurements
|
|
|
|
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
(1)
|
|
Total
|
||||||||||
As of March 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
Money market mutual funds
(2)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States government obligations
|
|
142
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|||||
International government obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate obligations
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|||||
Municipal obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Agency, asset and mortgage-backed obligations
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States companies
|
|
242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|||||
International companies
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Investment funds
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
|
|
$
|
404
|
|
|
$
|
45
|
|
|
$
|
27
|
|
|
$
|
(1
|
)
|
|
$
|
475
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities - commodity derivatives
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
(5
|
)
|
|
$
|
7
|
|
|
$
|
(5
|
)
|
As of December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
18
|
|
|
$
|
(13
|
)
|
|
$
|
13
|
|
Money market mutual funds
(2)
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States government obligations
|
|
133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133
|
|
|||||
International government obligations
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Corporate obligations
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Municipal obligations
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Agency, asset and mortgage-backed obligations
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States companies
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||
International companies
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Investment funds
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
|
$
|
438
|
|
|
$
|
53
|
|
|
$
|
44
|
|
|
$
|
(13
|
)
|
|
$
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities - commodity derivatives
|
|
$
|
(13
|
)
|
|
$
|
(61
|
)
|
|
$
|
(24
|
)
|
|
$
|
41
|
|
|
$
|
(57
|
)
|
(1)
|
Represents netting under master netting arrangements and a net cash collateral receivable of
$6 million
and
$28 million
as of
March 31, 2016
and
December 31, 2015
, respectively.
|
(2)
|
Amounts are included in cash and cash equivalents and investments and restricted cash and investments on the Balance Sheets. The fair value of these money market mutual funds approximates cost.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
Commodity
Derivatives
|
|
Auction Rate
Securities
|
||||
2016:
|
|
|
|
||||
Beginning balance
|
$
|
(6
|
)
|
|
$
|
26
|
|
Transfer to affiliate
|
(4
|
)
|
|
—
|
|
||
Changes in fair value recognized in OCI
|
—
|
|
|
1
|
|
||
Changes in fair value recognized in net regulatory assets
|
(1
|
)
|
|
—
|
|
||
Sales
|
—
|
|
|
(1
|
)
|
||
Settlements
|
7
|
|
|
—
|
|
||
Ending balance
|
$
|
(4
|
)
|
|
$
|
26
|
|
|
|
|
|
||||
2015:
|
|
|
|
||||
Beginning balance
|
$
|
12
|
|
|
$
|
26
|
|
Changes included in earnings
|
2
|
|
|
—
|
|
||
Changes in fair value recognized in OCI
|
1
|
|
|
—
|
|
||
Settlements
|
(6
|
)
|
|
—
|
|
||
Ending balance
|
$
|
9
|
|
|
$
|
26
|
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
4,268
|
|
|
$
|
4,847
|
|
|
$
|
4,271
|
|
|
$
|
4,636
|
|
(
9
)
|
Commitments and Contingencies
|
(
10
)
|
Components of Accumulated Other Comprehensive Income (Loss), Net
|
|
|
Unrealized
|
|
Unrealized
|
|
Accumulated
|
||||||
|
|
Losses on
|
|
Losses
|
|
Other
|
||||||
|
|
Available-For-Sale
|
|
on Cash Flow
|
|
Comprehensive
|
||||||
|
|
Securities
|
|
Hedges
|
|
Loss, Net
|
||||||
|
|
|
|
|
|
|
||||||
Balance, December 31, 2014
|
|
$
|
(3
|
)
|
|
$
|
(20
|
)
|
|
$
|
(23
|
)
|
Other comprehensive income
|
|
—
|
|
|
2
|
|
|
2
|
|
|||
Balance at March 31, 2015
|
|
$
|
(3
|
)
|
|
$
|
(18
|
)
|
|
$
|
(21
|
)
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2015
|
|
$
|
(3
|
)
|
|
$
|
(27
|
)
|
|
$
|
(30
|
)
|
Other comprehensive income
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Dividend (Note 3)
|
|
—
|
|
|
27
|
|
|
27
|
|
|||
Balance, March 31, 2016
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
(
11
)
|
Segment Information
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Regulated electric
|
$
|
399
|
|
|
$
|
426
|
|
Regulated gas
|
226
|
|
|
295
|
|
||
Other
|
—
|
|
|
1
|
|
||
Total operating revenue
|
$
|
625
|
|
|
$
|
722
|
|
|
|
|
|
||||
Depreciation and amortization:
|
|
|
|
||||
Regulated electric
|
$
|
99
|
|
|
$
|
90
|
|
Regulated gas
|
11
|
|
|
10
|
|
||
Total depreciation and amortization
|
$
|
110
|
|
|
$
|
100
|
|
|
|
|
|
|
|
||
Operating income:
|
|
|
|
||||
Regulated electric
|
$
|
57
|
|
|
$
|
53
|
|
Regulated gas
|
43
|
|
|
47
|
|
||
Total operating income
|
$
|
100
|
|
|
$
|
100
|
|
|
As of
|
||||||
|
March 31,
2016 |
|
December 31,
2015 |
||||
Total assets:
|
|
|
|
||||
Regulated electric
|
$
|
13,015
|
|
|
$
|
12,970
|
|
Regulated gas
|
1,199
|
|
|
1,251
|
|
||
Other
(1)
|
—
|
|
|
164
|
|
||
Total assets
|
$
|
14,214
|
|
|
$
|
14,385
|
|
(1)
|
Other total assets for December 31, 2015, includes amounts for MidAmerican Energy's unregulated retail services business transferred to a subsidiary of BHE.
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
103
|
|
Receivables, net
|
198
|
|
|
346
|
|
||
Income taxes receivable
|
127
|
|
|
104
|
|
||
Inventories
|
239
|
|
|
238
|
|
||
Other current assets
|
27
|
|
|
58
|
|
||
Total current assets
|
593
|
|
|
849
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
11,773
|
|
|
11,737
|
|
||
Goodwill
|
1,270
|
|
|
1,270
|
|
||
Regulatory assets
|
1,078
|
|
|
1,044
|
|
||
Investments and restricted cash and investments
|
649
|
|
|
636
|
|
||
Other assets
|
138
|
|
|
138
|
|
||
|
|
|
|
||||
Total assets
|
$
|
15,501
|
|
|
$
|
15,674
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
LIABILITIES AND MEMBER'S EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
197
|
|
|
$
|
427
|
|
Accrued interest
|
49
|
|
|
53
|
|
||
Accrued property, income and other taxes
|
99
|
|
|
125
|
|
||
Note payable to affiliate
|
31
|
|
|
139
|
|
||
Short-term debt
|
70
|
|
|
—
|
|
||
Current portion of long-term debt
|
34
|
|
|
34
|
|
||
Other current liabilities
|
127
|
|
|
166
|
|
||
Total current liabilities
|
607
|
|
|
944
|
|
||
|
|
|
|
||||
Long-term debt
|
4,560
|
|
|
4,563
|
|
||
Deferred income taxes
|
3,129
|
|
|
3,056
|
|
||
Regulatory liabilities
|
848
|
|
|
831
|
|
||
Asset retirement obligations
|
484
|
|
|
488
|
|
||
Other long-term liabilities
|
248
|
|
|
267
|
|
||
Total liabilities
|
9,876
|
|
|
10,149
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 9)
|
|
|
|
||||
|
|
|
|
||||
Member's equity:
|
|
|
|
||||
Paid-in capital
|
1,679
|
|
|
1,679
|
|
||
Retained earnings
|
3,948
|
|
|
3,876
|
|
||
Accumulated other comprehensive loss, net
|
(2
|
)
|
|
(30
|
)
|
||
Total member's equity
|
5,625
|
|
|
5,525
|
|
||
|
|
|
|
||||
Total liabilities and member's equity
|
$
|
15,501
|
|
|
$
|
15,674
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Regulated electric
|
$
|
399
|
|
|
$
|
426
|
|
Regulated gas and other
|
227
|
|
|
301
|
|
||
Total operating revenue
|
626
|
|
|
727
|
|
||
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
||||
Cost of fuel, energy and capacity
|
92
|
|
|
122
|
|
||
Cost of gas sold and other
|
135
|
|
|
205
|
|
||
Operations and maintenance
|
161
|
|
|
170
|
|
||
Depreciation and amortization
|
110
|
|
|
100
|
|
||
Property and other taxes
|
28
|
|
|
29
|
|
||
Total operating costs and expenses
|
526
|
|
|
626
|
|
||
|
|
|
|
||||
Operating income
|
100
|
|
|
101
|
|
||
|
|
|
|
||||
Other income and (expense):
|
|
|
|
||||
Interest expense
|
(54
|
)
|
|
(50
|
)
|
||
Allowance for borrowed funds
|
1
|
|
|
2
|
|
||
Allowance for equity funds
|
4
|
|
|
5
|
|
||
Other, net
|
3
|
|
|
16
|
|
||
Total other income and (expense)
|
(46
|
)
|
|
(27
|
)
|
||
|
|
|
|
||||
Income before income tax benefit
|
54
|
|
|
74
|
|
||
Income tax benefit
|
(19
|
)
|
|
(21
|
)
|
||
|
|
|
|
||||
Income from continuing operations
|
73
|
|
|
95
|
|
||
|
|
|
|
||||
Discontinued operations (Note 3):
|
|
|
|
||||
Income from discontinued operations
|
—
|
|
|
7
|
|
||
Income tax expense
|
—
|
|
|
3
|
|
||
Income on discontinued operations
|
—
|
|
|
4
|
|
||
|
|
|
|
||||
Net income
|
$
|
73
|
|
|
$
|
99
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Net income
|
$
|
73
|
|
|
$
|
99
|
|
|
|
|
|
||||
Other comprehensive income, net of tax:
|
|
|
|
||||
Unrealized gains on available-for-sale securities, net of tax of $- and $-
|
1
|
|
|
—
|
|
||
Unrealized gains on cash flow hedges, net of tax of $- and $2
|
—
|
|
|
2
|
|
||
Total other comprehensive income, net of tax
|
1
|
|
|
2
|
|
||
|
|
|
|
||||
Comprehensive income
|
$
|
74
|
|
|
$
|
101
|
|
|
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Equity
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance, December 31, 2014
|
$
|
1,679
|
|
|
$
|
3,417
|
|
|
$
|
(23
|
)
|
|
$
|
5,073
|
|
Net income
|
—
|
|
|
99
|
|
|
—
|
|
|
99
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Other equity transactions
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Balance, March 31, 2015
|
$
|
1,679
|
|
|
$
|
3,517
|
|
|
$
|
(21
|
)
|
|
$
|
5,175
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, December 31, 2015
|
$
|
1,679
|
|
|
$
|
3,876
|
|
|
$
|
(30
|
)
|
|
$
|
5,525
|
|
Net income
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Transfer to affiliate
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
||||
Other equity transactions
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Balance, March 31, 2016
|
$
|
1,679
|
|
|
$
|
3,948
|
|
|
$
|
(2
|
)
|
|
$
|
5,625
|
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
73
|
|
|
$
|
99
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
110
|
|
|
100
|
|
||
Deferred income taxes and amortization of investment tax credits
|
11
|
|
|
—
|
|
||
Changes in other assets and liabilities
|
11
|
|
|
11
|
|
||
Other, net
|
(13
|
)
|
|
(6
|
)
|
||
Changes in other operating assets and liabilities:
|
|
|
|
||||
Receivables, net
|
31
|
|
|
44
|
|
||
Inventories
|
(1
|
)
|
|
34
|
|
||
Derivative collateral, net
|
2
|
|
|
15
|
|
||
Contributions to pension and other postretirement benefit plans, net
|
(2
|
)
|
|
(2
|
)
|
||
Accounts payable
|
4
|
|
|
(45
|
)
|
||
Accrued property, income and other taxes, net
|
(51
|
)
|
|
(37
|
)
|
||
Other current assets and liabilities
|
(12
|
)
|
|
(16
|
)
|
||
Net cash flows from operating activities
|
163
|
|
|
197
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Utility construction expenditures
|
(332
|
)
|
|
(244
|
)
|
||
Purchases of available-for-sale securities
|
(34
|
)
|
|
(27
|
)
|
||
Proceeds from sales of available-for-sale securities
|
29
|
|
|
19
|
|
||
Proceeds from sale of investment
|
—
|
|
|
13
|
|
||
Other, net
|
(2
|
)
|
|
2
|
|
||
Net cash flows from investing activities
|
(339
|
)
|
|
(237
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Repayments of long-term debt
|
(4
|
)
|
|
—
|
|
||
Net change in note payable to affiliate
|
9
|
|
|
(4
|
)
|
||
Net proceeds from short-term debt
|
70
|
|
|
15
|
|
||
Net cash flows from financing activities
|
75
|
|
|
11
|
|
||
|
|
|
|
||||
Net change in cash and cash equivalents
|
(101
|
)
|
|
(29
|
)
|
||
Cash and cash equivalents at beginning of period
|
103
|
|
|
30
|
|
||
Cash and cash equivalents at end of period
|
$
|
2
|
|
|
$
|
1
|
|
(
1
)
|
General
|
(
2
)
|
New Accounting Pronouncements
|
(
3
)
|
Discontinued Operations
|
(
4
)
|
Property, Plant and Equipment, Net
|
(
5
)
|
Income Taxes
|
(
6
)
|
Employee Benefit Plans
|
(
7
)
|
Risk Management and Hedging Activities
|
(
8
)
|
Fair Value Measurements
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
4,594
|
|
|
$
|
5,280
|
|
|
$
|
4,597
|
|
|
$
|
5,051
|
|
(
10
)
|
Components of Accumulated Other Comprehensive Income (Loss), Net
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Regulated electric
|
$
|
399
|
|
|
$
|
426
|
|
Regulated gas
|
226
|
|
|
295
|
|
||
Other
|
1
|
|
|
6
|
|
||
Total operating revenue
|
$
|
626
|
|
|
$
|
727
|
|
|
|
|
|
||||
Depreciation and amortization:
|
|
|
|
||||
Regulated electric
|
$
|
99
|
|
|
$
|
90
|
|
Regulated gas
|
11
|
|
|
10
|
|
||
Total depreciation and amortization
|
$
|
110
|
|
|
$
|
100
|
|
|
|
|
|
||||
Operating income:
|
|
|
|
||||
Regulated electric
|
$
|
57
|
|
|
$
|
53
|
|
Regulated gas
|
43
|
|
|
47
|
|
||
Other
|
—
|
|
|
1
|
|
||
Total operating income
|
$
|
100
|
|
|
$
|
101
|
|
|
As of
|
||||||
|
March 31,
2016 |
|
December 31,
2015 |
||||
Total assets
(1)
:
|
|
|
|
||||
Regulated electric
|
$
|
14,206
|
|
|
$
|
14,161
|
|
Regulated gas
|
1,278
|
|
|
1,330
|
|
||
Other
|
17
|
|
|
183
|
|
||
Total assets
|
$
|
15,501
|
|
|
$
|
15,674
|
|
(1)
|
Total assets by reportable segment reflect the assignment of goodwill to applicable reporting units. Other total assets for December 31, 2015, includes amounts for MidAmerican Energy's unregulated retail services business transferred to a subsidiary of BHE.
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
First Quarter
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|||||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|||||||
Operating revenue
|
$
|
399
|
|
|
$
|
426
|
|
|
$
|
(27
|
)
|
|
(6
|
)%
|
Cost of fuel, energy and capacity
|
92
|
|
|
122
|
|
|
(30
|
)
|
|
(25
|
)
|
|||
Gross margin
|
$
|
307
|
|
|
$
|
304
|
|
|
$
|
3
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|||||||
Electricity Sales (GWh):
|
|
|
|
|
|
|
|
|||||||
Residential
|
1,632
|
|
|
1,743
|
|
|
(111
|
)
|
|
(6
|
)%
|
|||
Small general service
|
948
|
|
|
996
|
|
|
(48
|
)
|
|
(5
|
)
|
|||
Large general service
|
2,820
|
|
|
2,692
|
|
|
128
|
|
|
5
|
|
|||
Other
|
401
|
|
|
400
|
|
|
1
|
|
|
—
|
|
|||
Total retail
|
5,801
|
|
|
5,831
|
|
|
(30
|
)
|
|
(1
|
)
|
|||
Wholesale
|
2,018
|
|
|
2,850
|
|
|
(832
|
)
|
|
(29
|
)
|
|||
Total sales
|
7,819
|
|
|
8,681
|
|
|
(862
|
)
|
|
(10
|
)
|
|||
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers (in thousands)
|
758
|
|
|
750
|
|
|
8
|
|
|
1
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average revenue per MWh:
|
|
|
|
|
|
|
|
|||||||
Retail
|
$
|
59.01
|
|
|
$
|
61.25
|
|
|
$
|
(2.24
|
)
|
|
(4
|
)%
|
Wholesale
|
$
|
19.07
|
|
|
$
|
19.49
|
|
|
$
|
(0.42
|
)
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Heating degree days
|
2,842
|
|
|
3,329
|
|
|
(487
|
)
|
|
(15
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Sources of energy (GWh)
(1)
:
|
|
|
|
|
|
|
|
|||||||
Coal
|
2,911
|
|
|
4,562
|
|
|
(1,651
|
)
|
|
(36
|
)%
|
|||
Nuclear
|
936
|
|
|
876
|
|
|
60
|
|
|
7
|
|
|||
Natural gas
|
28
|
|
|
(5
|
)
|
|
33
|
|
|
*
|
||||
Wind and other
(2)
|
3,131
|
|
|
2,641
|
|
|
490
|
|
|
19
|
|
|||
Total energy generated
|
7,006
|
|
|
8,074
|
|
|
(1,068
|
)
|
|
(13
|
)
|
|||
Energy purchased
|
966
|
|
|
693
|
|
|
273
|
|
|
39
|
|
|||
Total
|
7,972
|
|
|
8,767
|
|
|
(795
|
)
|
|
(9
|
)
|
*
|
Not meaningful.
|
(1)
|
GWh amounts are net of energy used by the related generating facilities.
|
(2)
|
All or some of the renewable energy attributes associated with generation from these generating facilities may be: (a) used in future years to comply with renewable portfolio standards or other regulatory requirements or (b) sold to third parties in the form of renewable energy credits or other environmental commodities.
|
(1)
|
Higher wholesale gross margin of $4 million due to higher margins per unit due to greater wind-powered generation available for wholesale purposes and lower coal-fueled generation and prices;
|
(2)
|
Higher Multi-Value Projects ("MVPs") transmission revenue of $4 million, which is expected to increase as projects are constructed over the next two years; partially offset by
|
(3)
|
Lower retail gross margin of $5 million due to -
|
•
|
a decrease of $20 million from lower recoveries through bill riders;
|
•
|
a decrease of $6 million from the impact of temperatures;
|
•
|
an increase of $10 million from higher electric rates in Iowa effective January 1, 2016;
|
•
|
an increase of $9 million from lower retail energy costs primarily due to a lower average cost of fuel for generation and lower purchased power costs; and
|
•
|
an increase of $2 million primarily from non-weather-related usage factors.
|
|
First Quarter
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|||||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|||||||
Operating revenue
|
$
|
226
|
|
|
$
|
295
|
|
|
$
|
(69
|
)
|
|
(23)
|
%
|
Cost of gas sold
|
135
|
|
|
201
|
|
|
(66
|
)
|
|
(33
|
)
|
|||
Gross margin
|
$
|
91
|
|
|
$
|
94
|
|
|
$
|
(3
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|||||||
Natural gas throughput (000's Dth):
|
|
|
|
|
|
|
|
|||||||
Residential
|
22,328
|
|
|
25,031
|
|
|
(2,703
|
)
|
|
(11)
|
%
|
|||
Small general service
|
10,822
|
|
|
12,108
|
|
|
(1,286
|
)
|
|
(11
|
)
|
|||
Large general service
|
1,595
|
|
|
1,543
|
|
|
52
|
|
|
3
|
|
|||
Other
|
19
|
|
|
22
|
|
|
(3
|
)
|
|
(14
|
)
|
|||
Total retail sales
|
34,764
|
|
|
38,704
|
|
|
(3,940
|
)
|
|
(10
|
)
|
|||
Wholesale sales
|
11,783
|
|
|
12,317
|
|
|
(534
|
)
|
|
(4
|
)
|
|||
Total sales
|
46,547
|
|
|
51,021
|
|
|
(4,474
|
)
|
|
(9
|
)
|
|||
Gas transportation service
|
24,065
|
|
|
23,969
|
|
|
96
|
|
|
—
|
|
|||
Total gas throughput
|
70,612
|
|
|
74,990
|
|
|
(4,378
|
)
|
|
(6
|
)
|
|||
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers (in thousands)
|
742
|
|
|
734
|
|
|
8
|
|
|
1
|
%
|
|||
Average revenue per retail Dth sold
|
$
|
5.55
|
|
|
$
|
6.35
|
|
|
$
|
(0.80
|
)
|
|
(13)
|
%
|
Average cost of natural gas per retail Dth sold
|
$
|
3.22
|
|
|
$
|
4.18
|
|
|
$
|
(0.96
|
)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|||||||
Combined retail and wholesale average cost of natural gas per Dth sold
|
$
|
2.90
|
|
|
$
|
3.93
|
|
|
$
|
(1.03
|
)
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|||||||
Heating degree days
|
2,972
|
|
|
3,448
|
|
|
(476
|
)
|
|
(14)
|
%
|
•
|
$660 million primarily for the construction of 599 MW (nominal ratings) of wind-powered generating facilities expected to be placed in service in 2016, of which 48 MW (nominal ratings) had been placed in service as of
March 31, 2016
.
|
•
|
$124 million for transmission MVPs investments. MidAmerican Energy has approval from the Midcontinent Independent System Operator, Inc. for the construction of four MVPs located in Iowa and Illinois, which will add approximately 245 miles of 345 kV transmission line to MidAmerican Energy's transmission system, with remaining expenditures predominantly in 2016.
|
•
|
Remaining costs
primarily relate to routine expenditures for distribution, generation, transmission and other infrastructure needed to serve existing and expected demand.
|
Assets:
|
|
|
||
Net plant in service, including nuclear fuel
|
|
$
|
326
|
|
Construction work in progress
|
|
10
|
|
|
Inventory
|
|
17
|
|
|
Regulatory assets
|
|
4
|
|
|
|
|
|
||
Liabilities:
|
|
|
||
Asset retirement obligation
(1)
|
|
293
|
|
(1)
|
The Quad Cities Station asset retirement obligation assumes a 2032 closure. MidAmerican Energy’s nuclear decommissioning trust fund established for the settlement of the Quad Cities Station asset retirement obligation totaled $436 million and an associated regulatory liability for the excess of the trust fund over the asset retirement obligation totaled $143 million as of
March 31, 2016
.
|
Item 1.
|
Financial Statements
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
ASSETS
|
|||||||
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
347
|
|
|
$
|
536
|
|
Accounts receivable, net
|
205
|
|
|
265
|
|
||
Inventories
|
80
|
|
|
80
|
|
||
Other current assets
|
51
|
|
|
46
|
|
||
Total current assets
|
683
|
|
|
927
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
6,996
|
|
|
6,996
|
|
||
Regulatory assets
|
1,051
|
|
|
1,057
|
|
||
Other assets
|
39
|
|
|
37
|
|
||
|
|
|
|
||||
Total assets
|
$
|
8,769
|
|
|
$
|
9,017
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
179
|
|
|
$
|
214
|
|
Accrued interest
|
38
|
|
|
54
|
|
||
Accrued property, income and other taxes
|
29
|
|
|
30
|
|
||
Regulatory liabilities
|
181
|
|
|
173
|
|
||
Current portion of long-term debt and financial and capital lease obligations
|
13
|
|
|
225
|
|
||
Customer deposits
|
58
|
|
|
58
|
|
||
Other current liabilities
|
38
|
|
|
28
|
|
||
Total current liabilities
|
536
|
|
|
782
|
|
||
|
|
|
|
||||
Long-term debt and financial and capital lease obligations
|
3,058
|
|
|
3,060
|
|
||
Regulatory liabilities
|
306
|
|
|
304
|
|
||
Deferred income taxes
|
1,407
|
|
|
1,405
|
|
||
Other long-term liabilities
|
296
|
|
|
303
|
|
||
Total liabilities
|
5,603
|
|
|
5,854
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 8)
|
|
|
|
||||
|
|
|
|
||||
Shareholder's equity:
|
|
|
|
||||
Common stock - $1.00 stated value; 1,000 shares authorized, issued and outstanding
|
—
|
|
|
—
|
|
||
Other paid-in capital
|
2,308
|
|
|
2,308
|
|
||
Retained earnings
|
861
|
|
|
858
|
|
||
Accumulated other comprehensive loss, net
|
(3
|
)
|
|
(3
|
)
|
||
Total shareholder's equity
|
3,166
|
|
|
3,163
|
|
||
|
|
|
|
||||
Total liabilities and shareholder's equity
|
$
|
8,769
|
|
|
$
|
9,017
|
|
|
|
|
|
||||
The accompanying notes are an integral part of the consolidated financial statements.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Operating revenue
|
$
|
399
|
|
|
$
|
459
|
|
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
||||
Cost of fuel, energy and capacity
|
168
|
|
|
226
|
|
||
Operating and maintenance
|
99
|
|
|
76
|
|
||
Depreciation and amortization
|
75
|
|
|
74
|
|
||
Property and other taxes
|
11
|
|
|
9
|
|
||
Total operating costs and expenses
|
353
|
|
|
385
|
|
||
|
|
|
|
||||
Operating income
|
46
|
|
|
74
|
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
||||
Interest expense
|
(48
|
)
|
|
(46
|
)
|
||
Allowance for borrowed funds
|
1
|
|
|
1
|
|
||
Allowance for equity funds
|
1
|
|
|
1
|
|
||
Other, net
|
5
|
|
|
7
|
|
||
Total other income (expense)
|
(41
|
)
|
|
(37
|
)
|
||
|
|
|
|
||||
Income before income tax expense
|
5
|
|
|
37
|
|
||
Income tax expense
|
2
|
|
|
13
|
|
||
Net income
|
$
|
3
|
|
|
$
|
24
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||
|
|
|
|
|
|
Other
|
|
|
|
Other
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Shareholder's
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
Loss, Net
|
|
Equity
|
|||||||||||
Balance, December 31, 2014
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
2,308
|
|
|
$
|
583
|
|
|
$
|
(3
|
)
|
|
$
|
2,888
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Balance, March 31, 2015
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
2,308
|
|
|
$
|
607
|
|
|
$
|
(3
|
)
|
|
$
|
2,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2015
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
2,308
|
|
|
$
|
858
|
|
|
$
|
(3
|
)
|
|
$
|
3,163
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Balance, March 31, 2016
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
2,308
|
|
|
$
|
861
|
|
|
$
|
(3
|
)
|
|
$
|
3,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
3
|
|
|
$
|
24
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Gain on nonrecurring items
|
—
|
|
|
(3
|
)
|
||
Depreciation and amortization
|
75
|
|
|
74
|
|
||
Deferred income taxes and amortization of investment tax credits
|
2
|
|
|
13
|
|
||
Allowance for equity funds
|
(1
|
)
|
|
(1
|
)
|
||
Changes in regulatory assets and liabilities
|
7
|
|
|
1
|
|
||
Deferred energy
|
23
|
|
|
39
|
|
||
Amortization of deferred energy
|
(14
|
)
|
|
16
|
|
||
Other, net
|
—
|
|
|
(16
|
)
|
||
Changes in other operating assets and liabilities:
|
|
|
|
||||
Accounts receivable and other assets
|
47
|
|
|
(18
|
)
|
||
Inventories
|
—
|
|
|
(2
|
)
|
||
Accounts payable and other liabilities
|
(19
|
)
|
|
(35
|
)
|
||
Net cash flows from operating activities
|
123
|
|
|
92
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(98
|
)
|
|
(63
|
)
|
||
Proceeds from sale of assets
|
—
|
|
|
4
|
|
||
Other, net
|
—
|
|
|
10
|
|
||
Net cash flows from investing activities
|
(98
|
)
|
|
(49
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Repayments of long-term debt and financial and capital lease obligations
|
(214
|
)
|
|
(252
|
)
|
||
Net proceeds from short-term debt
|
—
|
|
|
30
|
|
||
Net cash flows from financing activities
|
(214
|
)
|
|
(222
|
)
|
||
|
|
|
|
||||
Net change in cash and cash equivalents
|
(189
|
)
|
|
(179
|
)
|
||
Cash and cash equivalents at beginning of period
|
536
|
|
|
220
|
|
||
Cash and cash equivalents at end of period
|
$
|
347
|
|
|
$
|
41
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
As of
|
||||||
|
Depreciable Life
|
|
March 31,
|
|
December 31,
|
||||
|
|
2016
|
|
2015
|
|||||
Utility plant:
|
|
|
|
|
|
||||
Generation
|
25 - 80 years
|
|
$
|
4,228
|
|
|
$
|
4,212
|
|
Distribution
|
20 - 65 years
|
|
3,148
|
|
|
3,118
|
|
||
Transmission
|
45 - 65 years
|
|
1,796
|
|
|
1,788
|
|
||
General and intangible plant
|
5 - 65 years
|
|
721
|
|
|
694
|
|
||
Utility plant
|
|
|
9,893
|
|
|
9,812
|
|
||
Accumulated depreciation and amortization
|
|
|
(3,034
|
)
|
|
(2,971
|
)
|
||
Utility plant, net
|
|
|
6,859
|
|
|
6,841
|
|
||
Other non-regulated, net of accumulated depreciation and amortization
|
5 - 65 years
|
|
2
|
|
|
2
|
|
||
Plant, net
|
|
|
6,861
|
|
|
6,843
|
|
||
Construction work-in-progress
|
|
|
135
|
|
|
153
|
|
||
Property, plant and equipment, net
|
|
|
$
|
6,996
|
|
|
$
|
6,996
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
Qualified Pension Plan -
|
|
|
|
||||
Other long-term liabilities
|
$
|
(40
|
)
|
|
$
|
(38
|
)
|
|
|
|
|
||||
Non-Qualified Pension Plans:
|
|
|
|
||||
Other current liabilities
|
(1
|
)
|
|
(1
|
)
|
||
Other long-term liabilities
|
(9
|
)
|
|
(9
|
)
|
||
|
|
|
|
||||
Other Postretirement Plans -
|
|
|
|
||||
Other long-term liabilities
|
(5
|
)
|
|
(5
|
)
|
|
|
Other
|
|
Other
|
|
|
||||||
|
|
Current
|
|
Long-term
|
|
|
||||||
|
|
Liabilities
|
|
Liabilities
|
|
Total
|
||||||
As of March 31, 2016
|
|
|
|
|
|
|
||||||
Commodity liabilities
(1)
|
|
$
|
(9
|
)
|
|
$
|
(13
|
)
|
|
$
|
(22
|
)
|
|
|
|
|
|
|
|
||||||
As of December 31, 2015
|
|
|
|
|
|
|
||||||
Commodity liabilities
(1)
|
|
$
|
(8
|
)
|
|
$
|
(14
|
)
|
|
$
|
(22
|
)
|
(1)
|
Nevada Power's commodity derivatives not designated as hedging contracts are included in regulated rates and as of
March 31, 2016
and
December 31, 2015
, a regulatory asset of
$22 million
was recorded related to the derivative liability of
$22 million
.
|
|
Unit of
|
|
March 31,
|
|
December 31,
|
||
|
Measure
|
|
2016
|
|
2015
|
||
Electricity sales
|
Megawatt hours
|
|
(2
|
)
|
|
(2
|
)
|
Natural gas purchases
|
Decatherms
|
|
169
|
|
|
126
|
|
(
7
)
|
Fair Value Measurements
|
•
|
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that Nevada Power has the ability to access at the measurement date.
|
•
|
Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
|
•
|
Level 3 - Unobservable inputs reflect Nevada Power's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. Nevada Power develops these inputs based on the best information available, including its own data.
|
|
Input Levels for Fair Value Measurements
|
|
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
As of March 31, 2016
|
|
|
|
|
|
|
|
||||||||
Assets - investment funds
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities - commodity derivatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
|
$
|
(22
|
)
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Assets - investment funds
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities - commodity derivatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
|
$
|
(22
|
)
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Beginning balance
|
$
|
(22
|
)
|
|
$
|
(30
|
)
|
Changes in fair value recognized in regulatory assets
|
(3
|
)
|
|
(4
|
)
|
||
Settlements
|
3
|
|
|
2
|
|
||
Ending balance
|
$
|
(22
|
)
|
|
$
|
(32
|
)
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
2,579
|
|
|
$
|
3,141
|
|
|
$
|
2,788
|
|
|
$
|
3,240
|
|
(
8
)
|
Commitments and Contingencies
|
|
|
First Quarter
|
|
||||||||||||
|
|
2016
|
|
2015
|
|
Change
|
|||||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|
|||||||
Operating revenue
|
|
$
|
399
|
|
|
$
|
459
|
|
|
$
|
(60
|
)
|
(13
|
)
|
%
|
Cost of fuel, energy and capacity
|
|
168
|
|
|
226
|
|
|
(58
|
)
|
(26
|
)
|
|
|||
Gross margin
|
|
$
|
231
|
|
|
$
|
233
|
|
|
$
|
(2
|
)
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||
GWh sold:
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
1,573
|
|
|
1,525
|
|
|
48
|
|
3
|
|
%
|
|||
Commercial
|
|
984
|
|
|
993
|
|
|
(9
|
)
|
(1
|
)
|
|
|||
Industrial
|
|
1,651
|
|
|
1,717
|
|
|
(66
|
)
|
(4
|
)
|
|
|||
Other
|
|
49
|
|
|
53
|
|
|
(4
|
)
|
(8
|
)
|
|
|||
Total retail
|
|
4,257
|
|
|
4,288
|
|
|
(31
|
)
|
(1
|
)
|
|
|||
Wholesale
|
|
55
|
|
|
14
|
|
|
41
|
|
*
|
|
|
|||
Total GWh sold
|
|
4,312
|
|
|
4,302
|
|
|
10
|
|
—
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers (in thousands):
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
791
|
|
|
776
|
|
|
15
|
|
2
|
|
%
|
|||
Commercial
|
|
105
|
|
|
105
|
|
|
—
|
|
—
|
|
|
|||
Industrial
|
|
2
|
|
|
2
|
|
|
—
|
|
—
|
|
|
|||
Total
|
|
898
|
|
|
883
|
|
|
15
|
|
2
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average retail revenue per MWh
|
|
$
|
91.42
|
|
|
$
|
104.34
|
|
|
$
|
(12.92
|
)
|
(12
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Heating degree days
|
|
790
|
|
|
586
|
|
|
204
|
|
35
|
|
%
|
|||
Cooling degree days
|
|
64
|
|
|
148
|
|
|
(84
|
)
|
(57
|
)
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Sources of energy (GWh)
(1)
:
|
|
|
|
|
|
|
|
|
|||||||
Coal
|
|
185
|
|
|
283
|
|
|
(98
|
)
|
(35
|
)
|
%
|
|||
Natural gas
|
|
3,111
|
|
|
3,547
|
|
|
(436
|
)
|
(12
|
)
|
|
|||
Renewables
|
|
8
|
|
|
—
|
|
|
8
|
|
*
|
|
|
|||
Total energy generated
|
|
3,304
|
|
|
3,830
|
|
|
(526
|
)
|
(14
|
)
|
|
|||
Energy purchased
|
|
1,232
|
|
|
523
|
|
|
709
|
|
*
|
|
|
|||
Total
|
|
4,536
|
|
|
4,353
|
|
|
183
|
|
4
|
|
|
(1)
|
GWh amounts are net of energy used by the related generating facilities.
|
•
|
$2 million in usage patterns for commercial and industrial customers and
|
•
|
$1 million in lower transmission demand.
|
•
|
$1 million in higher energy efficiency program rate revenue, which is offset in operating and maintenance expense.
|
|
Three-Month Periods
|
|
Annual
|
||||||||
|
Ended March 31,
|
|
Forecast
|
||||||||
|
2015
|
|
2016
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Generation development
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Distribution
|
28
|
|
|
26
|
|
|
86
|
|
|||
Transmission system investment
|
6
|
|
|
11
|
|
|
32
|
|
|||
Other
|
23
|
|
|
61
|
|
|
115
|
|
|||
Total
|
$
|
63
|
|
|
$
|
98
|
|
|
$
|
235
|
|
Item 1.
|
Financial Statements
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
ASSETS
|
|||||||
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
135
|
|
|
$
|
106
|
|
Accounts receivable, net
|
99
|
|
|
124
|
|
||
Inventories
|
39
|
|
|
39
|
|
||
Other current assets
|
20
|
|
|
13
|
|
||
Total current assets
|
293
|
|
|
282
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
2,770
|
|
|
2,766
|
|
||
Regulatory assets
|
430
|
|
|
432
|
|
||
Other assets
|
7
|
|
|
7
|
|
||
|
|
|
|
||||
Total assets
|
$
|
3,500
|
|
|
$
|
3,487
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDER'S EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
97
|
|
|
$
|
127
|
|
Accrued interest
|
16
|
|
|
15
|
|
||
Accrued property, income and other taxes
|
13
|
|
|
13
|
|
||
Regulatory liabilities
|
90
|
|
|
78
|
|
||
Current portion of long-term debt and financial and capital lease obligations
|
453
|
|
|
453
|
|
||
Customer deposits
|
17
|
|
|
17
|
|
||
Other current liabilities
|
14
|
|
|
11
|
|
||
Total current liabilities
|
700
|
|
|
714
|
|
||
|
|
|
|
||||
Long-term debt and financial and capital lease obligations
|
749
|
|
|
749
|
|
||
Regulatory liabilities
|
229
|
|
|
230
|
|
||
Deferred income taxes
|
580
|
|
|
570
|
|
||
Other long-term liabilities
|
149
|
|
|
148
|
|
||
Total liabilities
|
2,407
|
|
|
2,411
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 8)
|
|
|
|
||||
|
|
|
|
||||
Shareholder's equity:
|
|
|
|
||||
Common stock - $3.75 stated value, 20,000,000 shares authorized and 1,000 issued and outstanding
|
—
|
|
|
—
|
|
||
Other paid-in capital
|
1,111
|
|
|
1,111
|
|
||
Accumulated deficit
|
(18
|
)
|
|
(35
|
)
|
||
Total shareholder's equity
|
1,093
|
|
|
1,076
|
|
||
|
|
|
|
||||
Total liabilities and shareholder's equity
|
$
|
3,500
|
|
|
$
|
3,487
|
|
|
|
|
|
||||
The accompanying notes are an integral part of the consolidated financial statements.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Operating revenue:
|
|
|
|
||||
Electric
|
$
|
170
|
|
|
$
|
196
|
|
Natural Gas
|
47
|
|
|
50
|
|
||
Total operating revenue
|
217
|
|
|
246
|
|
||
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
||||
Cost of fuel, energy and capacity
|
70
|
|
|
97
|
|
||
Natural gas purchased for resale
|
30
|
|
|
35
|
|
||
Operating and maintenance
|
41
|
|
|
36
|
|
||
Depreciation and amortization
|
29
|
|
|
28
|
|
||
Property and other taxes
|
6
|
|
|
7
|
|
||
Total operating costs and expenses
|
176
|
|
|
203
|
|
||
|
|
|
|
||||
Operating income
|
41
|
|
|
43
|
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
||||
Interest expense
|
(16
|
)
|
|
(15
|
)
|
||
Allowance for equity funds
|
1
|
|
|
1
|
|
||
Other, net
|
1
|
|
|
1
|
|
||
Total other income (expense)
|
(14
|
)
|
|
(13
|
)
|
||
|
|
|
|
||||
Income before income tax expense
|
27
|
|
|
30
|
|
||
Income tax expense
|
10
|
|
|
11
|
|
||
Net income
|
$
|
17
|
|
|
$
|
19
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||
|
|
|
|
|
|
Other
|
|
|
|
Other
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
Paid-in
|
|
Accumulated
|
|
Comprehensive
|
|
Shareholder's
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Loss, Net
|
|
Equity
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2014
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
(111
|
)
|
|
$
|
(2
|
)
|
|
$
|
998
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|||||
Balance, March 31, 2015
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
(92
|
)
|
|
$
|
(2
|
)
|
|
$
|
1,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2015
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
(35
|
)
|
|
$
|
—
|
|
|
$
|
1,076
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||
Balance, March 31, 2016
|
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
|
$
|
1,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
17
|
|
|
$
|
19
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
29
|
|
|
28
|
|
||
Allowance for equity funds
|
(1
|
)
|
|
—
|
|
||
Deferred income taxes and amortization of investment tax credits
|
10
|
|
|
11
|
|
||
Changes in regulatory assets and liabilities
|
(3
|
)
|
|
(4
|
)
|
||
Deferred energy
|
23
|
|
|
26
|
|
||
Amortization of deferred energy
|
(9
|
)
|
|
12
|
|
||
Other, net
|
—
|
|
|
(1
|
)
|
||
Changes in other operating assets and liabilities:
|
|
|
|
||||
Accounts receivable and other assets
|
18
|
|
|
(11
|
)
|
||
Inventories
|
1
|
|
|
—
|
|
||
Accounts payable and other liabilities
|
(7
|
)
|
|
(4
|
)
|
||
Net cash flows from operating activities
|
78
|
|
|
76
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(48
|
)
|
|
(47
|
)
|
||
Other, net
|
—
|
|
|
2
|
|
||
Net cash flows from investing activities
|
(48
|
)
|
|
(45
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Repayments of long-term debt and financial and capital lease obligations
|
(1
|
)
|
|
—
|
|
||
Net cash flows from financing activities
|
(1
|
)
|
|
—
|
|
||
|
|
|
|
||||
Net change in cash and cash equivalents
|
29
|
|
|
31
|
|
||
Cash and cash equivalents at beginning of period
|
106
|
|
|
22
|
|
||
Cash and cash equivalents at end of period
|
$
|
135
|
|
|
$
|
53
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
As of
|
||||||
|
Depreciable Life
|
|
March 31,
|
|
December 31,
|
||||
|
|
2016
|
|
2015
|
|||||
Utility plant:
|
|
|
|
|
|
||||
Electric generation
|
40 - 125 years
|
|
$
|
1,128
|
|
|
$
|
1,134
|
|
Electric distribution
|
20 - 70 years
|
|
1,393
|
|
|
1,382
|
|
||
Electric transmission
|
50 - 70 years
|
|
748
|
|
|
739
|
|
||
Electric general and intangible plant
|
5 - 65 years
|
|
156
|
|
|
139
|
|
||
Natural gas distribution
|
40 - 70 years
|
|
375
|
|
|
374
|
|
||
Natural gas general and intangible plant
|
8 - 10 years
|
|
15
|
|
|
13
|
|
||
Common general
|
5 - 65 years
|
|
264
|
|
|
265
|
|
||
Utility plant
|
|
|
4,079
|
|
|
4,046
|
|
||
Accumulated depreciation and amortization
|
|
|
(1,382
|
)
|
|
(1,368
|
)
|
||
Utility plant, net
|
|
|
2,697
|
|
|
2,678
|
|
||
Construction work-in-progress
|
|
|
73
|
|
|
88
|
|
||
Property, plant and equipment, net
|
|
|
$
|
2,770
|
|
|
$
|
2,766
|
|
(
5
)
|
Recent Financing Transactions
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
Qualified Pension Plan -
|
|
|
|
||||
Other long-term liabilities
|
$
|
(29
|
)
|
|
$
|
(29
|
)
|
|
|
|
|
||||
Non-Qualified Pension Plans:
|
|
|
|
||||
Other current liabilities
|
(1
|
)
|
|
(1
|
)
|
||
Other long-term liabilities
|
(9
|
)
|
|
(9
|
)
|
||
|
|
|
|
||||
Other Postretirement Plans -
|
|
|
|
||||
Other long-term liabilities
|
(32
|
)
|
|
(32
|
)
|
(
7
)
|
Fair Value Measurements
|
•
|
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that Sierra Pacific has the ability to access at the measurement date.
|
•
|
Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
|
•
|
Level 3 - Unobservable inputs reflect Sierra Pacific's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. Sierra Pacific develops these inputs based on the best information available, including its own data.
|
|
As of March 31, 2016
|
|
As of December 31, 2015
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
1,166
|
|
|
$
|
1,278
|
|
|
$
|
1,165
|
|
|
$
|
1,248
|
|
(
8
)
|
Commitments and Contingencies
|
|
Three-Month Periods
|
||||||
|
Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating revenue:
|
|
|
|
||||
Regulated electric
|
$
|
170
|
|
|
$
|
196
|
|
Regulated gas
|
47
|
|
|
50
|
|
||
Total operating revenue
|
$
|
217
|
|
|
$
|
246
|
|
|
|
|
|
||||
Cost of sales:
|
|
|
|
||||
Regulated electric
|
$
|
70
|
|
|
$
|
97
|
|
Regulated gas
|
30
|
|
|
35
|
|
||
Total cost of sales
|
$
|
100
|
|
|
$
|
132
|
|
|
|
|
|
||||
Gross margin:
|
|
|
|
||||
Regulated electric
|
$
|
100
|
|
|
$
|
99
|
|
Regulated gas
|
17
|
|
|
15
|
|
||
Total gross margin
|
$
|
117
|
|
|
$
|
114
|
|
|
|
|
|
||||
Operating and maintenance:
|
|
|
|
||||
Regulated electric
|
$
|
36
|
|
|
$
|
32
|
|
Regulated gas
|
5
|
|
|
4
|
|
||
Total operating and maintenance
|
$
|
41
|
|
|
$
|
36
|
|
|
|
|
|
||||
Depreciation and amortization:
|
|
|
|
||||
Regulated electric
|
$
|
25
|
|
|
$
|
24
|
|
Regulated gas
|
4
|
|
|
4
|
|
||
Total depreciation and amortization
|
$
|
29
|
|
|
$
|
28
|
|
|
|
|
|
||||
Operating income:
|
|
|
|
||||
Regulated electric
|
$
|
33
|
|
|
$
|
37
|
|
Regulated gas
|
8
|
|
|
6
|
|
||
Total operating income
|
$
|
41
|
|
|
$
|
43
|
|
|
|
|
|
||||
Interest expense:
|
|
|
|
||||
Regulated electric
|
$
|
14
|
|
|
$
|
14
|
|
Regulated gas
|
2
|
|
|
1
|
|
||
Total interest expense
|
$
|
16
|
|
|
$
|
15
|
|
|
As of
|
||||||
|
March 31,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
Total assets:
|
|
|
|
||||
Regulated electric
|
$
|
3,031
|
|
|
$
|
3,060
|
|
Regulated gas
|
328
|
|
|
316
|
|
||
Regulated common assets
(1)
|
141
|
|
|
111
|
|
||
Total assets
|
$
|
3,500
|
|
|
$
|
3,487
|
|
(1)
|
Consists principally of cash and cash equivalents not included in either the regulated electric or regulated natural gas segments.
|
|
|
First Quarter
|
|
||||||||||||
|
|
2016
|
|
2015
|
|
Change
|
|||||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|
|||||||
Operating electric revenue
|
|
$
|
170
|
|
|
$
|
196
|
|
|
$
|
(26
|
)
|
(13
|
)
|
%
|
Cost of fuel, energy and capacity
|
|
70
|
|
|
97
|
|
|
(27
|
)
|
(28
|
)
|
|
|||
Gross margin
|
|
$
|
100
|
|
|
$
|
99
|
|
|
$
|
1
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GWh sold:
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
609
|
|
|
591
|
|
|
18
|
|
3
|
|
%
|
|||
Commercial
|
|
649
|
|
|
666
|
|
|
(17
|
)
|
(3
|
)
|
|
|||
Industrial
|
|
738
|
|
|
717
|
|
|
21
|
|
3
|
|
|
|||
Other
|
|
4
|
|
|
4
|
|
|
—
|
|
—
|
|
|
|||
Total retail
|
|
2,000
|
|
|
1,978
|
|
|
22
|
|
1
|
|
|
|||
Wholesale
|
|
188
|
|
|
182
|
|
|
6
|
|
3
|
|
|
|||
Total GWh sold
|
|
2,188
|
|
|
2,160
|
|
|
28
|
|
1
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers (in thousands):
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
290
|
|
|
287
|
|
|
3
|
|
1
|
|
%
|
|||
Commercial
|
|
47
|
|
|
46
|
|
|
1
|
|
2
|
|
|
|||
Total
|
|
337
|
|
|
333
|
|
|
4
|
|
1
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average retail revenue per MWh
|
|
$
|
78.33
|
|
|
$
|
91.86
|
|
|
$
|
(13.53
|
)
|
(15
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Heating degree days
|
|
1,960
|
|
|
1,668
|
|
|
292
|
|
18
|
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Sources of energy (GWh)
(1)
:
|
|
|
|
|
|
|
|
|
|||||||
Coal
|
|
214
|
|
|
340
|
|
|
(126
|
)
|
(37
|
)
|
%
|
|||
Natural gas
|
|
989
|
|
|
978
|
|
|
11
|
|
1
|
|
|
|||
Total energy generated
|
|
1,203
|
|
|
1,318
|
|
|
(115
|
)
|
(9
|
)
|
|
|||
Energy purchased
|
|
1,144
|
|
|
927
|
|
|
217
|
|
23
|
|
|
|||
Total
|
|
2,347
|
|
|
2,245
|
|
|
102
|
|
5
|
|
|
|
|
First Quarter
|
|
||||||||||||
|
|
2016
|
|
2015
|
|
Change
|
|||||||||
Gross margin (in millions):
|
|
|
|
|
|
|
|
|
|||||||
Operating natural gas revenue
|
|
$
|
47
|
|
|
$
|
50
|
|
|
$
|
(3
|
)
|
(6
|
)
|
%
|
Natural gas purchased for resale
|
|
30
|
|
|
35
|
|
|
(5
|
)
|
(14
|
)
|
|
|||
Gross margin
|
|
$
|
17
|
|
|
$
|
15
|
|
|
$
|
2
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Dth sold:
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
3,863
|
|
|
3,215
|
|
|
648
|
|
20
|
|
%
|
|||
Commercial
|
|
2,032
|
|
|
1,615
|
|
|
417
|
|
26
|
|
|
|||
Industrial
|
|
573
|
|
|
525
|
|
|
48
|
|
9
|
|
|
|||
Total retail
|
|
6,468
|
|
|
5,355
|
|
|
1,113
|
|
21
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Average number of retail customers (in thousands)
|
|
161
|
|
|
158
|
|
|
3
|
|
2
|
|
%
|
|||
Average revenue per retail Dth sold
|
|
$
|
7.04
|
|
|
$
|
9.15
|
|
|
$
|
(2.11
|
)
|
(23
|
)
|
%
|
Average cost of natural gas per retail Dth sold
|
|
$
|
4.50
|
|
|
$
|
6.48
|
|
|
$
|
(1.98
|
)
|
(31
|
)
|
%
|
Heating degree days
|
|
1,960
|
|
|
1,668
|
|
|
292
|
|
18
|
|
%
|
|
Three-Month Periods
|
|
Annual
|
||||||||
|
Ended March 31,
|
|
Forecast
|
||||||||
|
2015
|
|
2016
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Distribution
|
$
|
23
|
|
|
$
|
16
|
|
|
$
|
104
|
|
Transmission system investment
|
3
|
|
|
3
|
|
|
36
|
|
|||
Other
|
21
|
|
|
29
|
|
|
65
|
|
|||
Total
|
$
|
47
|
|
|
$
|
48
|
|
|
$
|
205
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
BERKSHIRE HATHAWAY ENERGY COMPANY
|
|
|
Date: May 6, 2016
|
/s/ Patrick J. Goodman
|
|
Patrick J. Goodman
|
|
Executive Vice President and Chief Financial Officer
|
|
(principal financial and accounting officer)
|
|
|
|
PACIFICORP
|
|
|
Date: May 6, 2016
|
/s/ Nikki L. Kobliha
|
|
Nikki L. Kobliha
|
|
Vice President and Chief Financial Officer
|
|
(principal financial and accounting officer)
|
|
|
|
MIDAMERICAN FUNDING, LLC
|
|
MIDAMERICAN ENERGY COMPANY
|
|
|
Date: May 6, 2016
|
/s/ Thomas B. Specketer
|
|
Thomas B. Specketer
|
|
Vice President and Controller
|
|
of MidAmerican Funding, LLC
|
|
and Vice President, Chief Financial Officer and Director
|
|
of MidAmerican Energy Company
|
|
(principal financial and accounting officer)
|
|
|
|
NEVADA POWER COMPANY
|
|
|
Date: May 6, 2016
|
/s/ E. Kevin Bethel
|
|
E. Kevin Bethel
|
|
Senior Vice President, Chief Financial Officer and Director
|
|
(principal financial and accounting officer)
|
|
|
|
SIERRA PACIFIC POWER COMPANY
|
|
|
Date: May 6, 2016
|
/s/ E. Kevin Bethel
|
|
E. Kevin Bethel
|
|
Senior Vice President, Chief Financial Officer and Director
|
|
(principal financial and accounting officer)
|
Exhibit No.
|
Description
|
15.1
|
Awareness Letter of Independent Registered Public Accounting Firm.
|
31.1
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
15.2
|
Awareness Letter of Independent Registered Public Accounting Firm.
|
31.3
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.4
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.3
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.4
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
95
|
Mine Safety Disclosures Required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
|
15.3
|
Awareness Letter of Independent Registered Public Accounting Firm.
|
31.5
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.6
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.5
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.6
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
31.7
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.8
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.7
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.8
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
15.4
|
Awareness Letter of Independent Registered Public Accounting Firm.
|
31.9
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.10
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.9
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.10
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
15.5
|
Awareness Letter of Independent Registered Public Accounting Firm.
|
31.11
|
Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.12
|
Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.11
|
Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.12
|
Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
4.1
|
Officer's Certificate establishing the terms of Sierra Pacific Power Company's 2.60% General and Refunding Mortgage Notes, Series U, due 2026 (incorporated by reference to Exhibit 4.1 to the Sierra Pacific Power Company Current Report on Form 8-K dated April 15, 2016).
|
101
|
The following financial information from each respective Registrant's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2016
, is formatted in XBRL (eXtensible Business Reporting Language) and included herein: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements, tagged in summary and detail.
|
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