(8) Investments and Restricted Cash and Investments

Investments and restricted cash and investments consists of the following as of December 31 (in millions):



	2011			2010
Investments:
BYD Company Limited common stock	$	488		$	1,182
Rabbi trusts	290			284
Other	99			105
Total investments	877			1,571

Equity method investments:
CE Generation, LLC	255			254
Electric Transmission Texas, LLC	221			109
Bridger Coal Company	204			181
Other	52			44
Total equity method investments	732			588

Restricted cash and investments:
Nuclear decommissioning trust funds	308			297
Debt service and other	82			57
Total restricted cash and investments	390			354

Total investments and restricted cash and investments	1,999			2,513
Less current portion	(51		)	(44		)
Noncurrent portion	$	1,948		$	2,469

Investments

MEHC's investment in BYD Company Limited common stock is accounted for as an available-for-sale security with changes in fair value recognized in AOCI. As of December 31, 2011 and 2010, the fair value of MEHC's investment in BYD Company Limited common stock was $488 million and $1.182 billion, respectively, which resulted in a pre-tax unrealized gain of $256 million and $950 million as of December 31, 2011 and 2010, respectively.

Rabbi trusts hold corporate-owned life insurance on certain current and former key executives and directors. The Rabbi trusts were established to hold investments used to fund the obligations of various nonqualified executive and director compensation plans and to pay the costs of the trusts. The amount represents the cash surrender value of all of the policies included in the Rabbi trusts, net of amounts borrowed against the cash surrender value.

Equity Method Investments

CE Generation, LLC is a company owned equally by subsidiaries of TransAlta Corporation and MEHC engaged in the independent power business, and through its subsidiaries, owns and operates ten geothermal generating facilities in the Imperial Valley of California and three natural gas-fueled combined cycle cogeneration facilities in New York, Texas and Arizona. Electric Transmission Texas, LLC is owned equally by subsidiaries of American Electric Power Company, Inc. and MEHC and owns and operates electric transmission assets in the Electric Reliability Council of Texas footprint. Bridger Coal Company ("Bridger Coal") is 66.67% owned by a subsidiary of MEHC and 33.33% owned by a subsidiary of Idaho Power Company and is a coal mining joint venture that supplies coal to the Jim Bridger generating facility. Bridger Coal is being accounted for under the equity method of accounting as the power to direct the activities that most significantly impact Bridger Coal's economic performance are shared with the joint venture partner.

Restricted Cash and Investments

MidAmerican Energy has established a trust for the investment of funds for decommissioning the Quad Cities Nuclear Station Units 1 and 2 ("Quad Cities Station"). These investments in debt and equity securities are classified as available-for-sale and are reported at fair value. Funds are invested in the trust in accordance with applicable federal investment guidelines and are restricted for use as reimbursement for costs of decommissioning the Quad Cities Station, which are currently licensed for operation until December 2032. As of December 31, 2011 and 2010, 55% and 57%, respectively, of the fair value of the trust's funds was invested in domestic common equity securities, 10% and 11%, respectively, in domestic corporate debt securities and the remainder in investment grade municipal and United States government securities.

The Company has investments in interest bearing auction rate securities with par values of $58 million and $73 million as of December 31, 2011 and 2010, respectively, and remaining maturities of 5 to 25 years. The Company considers the securities to be temporarily impaired, except for an other-than-temporary impairment of $3 million, after tax, recorded in 2008, and has recorded unrealized losses on the securities of $12 million and $11 million, after tax, in AOCI as of December 31, 2011 and 2010, respectively. The Company does not intend to sell or expect to be required to sell the securities until the remaining principal investment is collected.