2016 EEI Financial Conference
November 2016
Patrick J. Goodman
Executive Vice President and Chief Financial Officer
This presentation contains statements that do not directly or exclusively relate to historical facts. These statements are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements can typically be identified by the use of forward-looking words, such as "will," "may," "could," "project," "believe," "anticipate," "expect," "estimate,"
"continue," "intend," "potential," "plan,“ "forecast" and similar terms. These statements are based upon Berkshire Hathaway Energy Company (“BHE”) and its
subsidiaries, PacifiCorp and its subsidiaries, MidAmerican Funding, LLC and its subsidiaries, MidAmerican Energy Company, Nevada Power Company and its
subsidiaries or Sierra Pacific Power Company and its subsidiaries (collectively, the “Registrants”), as applicable, current intentions, assumptions, expectations
and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of each Registrant and could cause
actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others:
– 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 Registrant’s 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;
Forward-Looking Statements
2
– 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 a Registrant’s 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 United States Securities and
Exchange Commission (“SEC”) or in other publicly disseminated written documents.
Further details of the potential risks and uncertainties affecting the Registrants are described in the Registrants’ filings with the SEC. Each Registrant
undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The
foregoing factors should not be construed as exclusive.
This presentation includes certain non-Generally Accepted Accounting Principles (“GAAP”) financial measures as defined by the SEC’s Regulation G. Refer to
the BHE Appendix in this presentation for a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measures.
Forward-Looking Statements
3
Berkshire Hathaway Energy
4
Vision
To be the best energy company in serving our customers, while delivering sustainable energy solutions
Culture
Personal responsibility to our customers
Strategy
Reinvest in our businesses
• Position our regulated assets
to provide excellent service
and competitive rates to our
customers
• Participate in energy policy
development, transforming our
businesses and assets
• Actively manage risk
• Continue to invest in our
employees and hard assets
Internal growth
• Invest in renewable energy
• Invest in reliable energy grid
and gas pipeline infrastructure
Acquire companies
• Strong strategic fit
Competitive Advantage
Berkshire Hathaway Ownership
Organizational Structure
5
A3/A-/BBB+
Aa2/AA/A+
90%
Nevada Power
Company
A2/A+/A-(1)
Regulated Electric
Utility
Sierra Pacific Power
Company
A2/A+/A-(1)
Regulated Electric and
Gas Utility
Real Estate
Brokerage, Mortgage
and Franchises
Northern Powergrid
(Northeast) Ltd.
A3/A/A-
U.K. Regulated
Electric Distribution
Regulated
Electric
Transmission
Contracted
Non-utility Power
Generation
Northern Powergrid
(Yorkshire) plc
A3/A/A
U.K. Regulated
Electric Distribution
A2/A/A-(1)
Regulated Natural
Gas Transmission
A2/A/A
Regulated Natural
Gas Transmission
Baa1/A-/A-
Holding Company
Aa2/A+/A+(1)
Regulated Electric
and Gas Utility
Baa2/A-/BBB-
Holding Company
A1/A+/A+(1)
Regulated Electric
Utility
A/A(1)
S&P, DBRS
Alberta Canada
Regulated Transmission
(1) Ratings for PacifiCorp, MidAmerican Energy Company, Nevada Power Company, Sierra Pacific Power Company,
AltaLink L.P., and Kern River Funding Corp. are senior secured ratings
2015 Berkshire Hathaway Inc. ($ billions)
Revenue $ 210.8
Net Income $ 24.1
Equity $ 255.6
2015 Berkshire Hathaway Energy ($ billions)
Revenue $ 17.9
Net Income $ 2.4
Equity $ 22.4
Significant Scale
6
• Berkshire Hathaway Energy’s integrated utilities operate in 11 states and serve
approximately 4.7 million customers
• Northern Powergrid has 3.9 million end-users, making it the third-largest distribution
company in Great Britain
• With our assets at PacifiCorp, NV Energy and AltaLink, we are the largest transmission
owner in the Western Interconnection
• Together, Northern Natural Gas and Kern River transported approximately 7% of the
natural gas consumed in the U.S. during 2015
• We have invested approximately $17 billion in solar, wind, geothermal and biomass
generation and own 7% of the wind generation and 6% of the solar generation in the
United States
• Comparable companies
Company Name
Sept. 30, 2016
Market Cap(1)
(billions)
LTM
June 30, 2016
Net Income(1)
(billions)
LTM
June 30, 2016
Payout Ratio(1)
NextEra Energy Inc. $56.5 $2.6 58%
Duke Energy $55.1 $2.6 87%
Southern Company $50.2 $2.3 86%
Dominion Resources $46.6 $1.9 84%
American Electric Power $31.6 $2.0 55%
(1) As reported by S&P Capital IQ
BHE Net Income:
LTM September 30, 2016
$2.5 billion
BHE retains more equity than
any of its utility peers
Energy Assets
7
(1) Includes both electric and natural gas
customers and end-users worldwide.
Additionally, AltaLink serves
approximately 85% of Alberta, Canada’s
population
(2) Net MW owned in operation and under
construction as of September. 30, 2016
As of and for the last 12 months
ended September 30, 2016
Assets $86 billion
Revenues $17.4 billion
Customers(1) 8.6 million
Employees 20,800
Transmission Line 33,200
Miles
Natural Gas Pipeline 16,400
Miles
Generation Capacity
31,600 MW(2)
Renewables 36%
Natural Gas 33%
Coal 30%
Nuclear and Other 1%
• Diversified portfolio of regulated assets
–Weather, customer, regulatory, generation, economic and catastrophic risk
diversity
• Berkshire Hathaway ownership
– Access to capital from Berkshire Hathaway allows us to take advantage of
market opportunities
– Berkshire Hathaway is a long-term holder of assets; its owner for life
philosophy promotes stability and helps make BHE the buyer of choice in
many circumstances
– Tax appetite of Berkshire Hathaway has allowed us to receive significant
cash tax benefits from our parent of $860 million in 2016 year-to-date and
$1.8 billion in 2015
• No dividend requirement
– Cash flow is retained in the business and used to help fund growth and
strengthen our balance sheet
BHE Competitive Advantage
8
$-
$1,500
$3,000
$4,500
$6,000
$7,500
2012A 2013A 2014A 2015A 2016F 2017F 2018F 2019F 2020F 2021F
$
m
i
l
l
i
o
n
s
BHE Cash Flows from Operations BHE Total Capital Expenditures BHE Operating Capital Expenditures
Capital Expenditures and Cash Flows
9
• Berkshire Hathaway Energy and its subsidiaries will spend approximately $13.2 billion from
2016 – 2018 for development and maintenance capital expenditures, which includes new
generation project expansions, primarily wind, transmission and distribution, and environmental
capital expenditures
Free Cash Flow
2016 –
2021: $22B
2016 –
2021: $13B
10
Revenue and EBITDA Diversification
• Diversified revenue sources reduce regulatory concentrations
• For the last 12 months ended September 30, 2016, 88% of EBITDA is from investment-grade
regulated subsidiaries. A significant portion of the remaining non-regulated EBITDA is from fully
contracted generation assets at BHE Renewables
BHE LTM Sept. 30, 2016
Energy Revenue(1): $15 Billion
PacifiCorp
31%
NV Energy
17%MidAmerican
Funding
15%
Northern
Powergrid
10%
BHE Pipeline
Group
9%
BHE
Renewables
8%
BHE
Transmission
6%
HomeServices
4%
BHE LTM Sept. 30, 2016
EBITDA(2): $7 Billion
Nevada
20%
Utah
16%
Iowa
16%
Oregon
8%
Wyoming
6%
Illinois
5%
California
4%
Washington
3%
Idaho
2%
FERC
7%
United
Kingdom
7%
Alberta
3%
Other
3%
(1) Excludes HomeServices and equity income, which add further diversification
(2) Refer to the Appendix for the calculation of EBITDA; percentages exclude Corporate/other
• Since being acquired by Berkshire Hathaway in March 2000, BHE has realized
significant growth in its assets, net income and cash flows
$6.5
$50.1
$59.2 $60.8 $62.1
$0
$15
$30
$45
$60
$75
2001 2013 2014 2015 Sept.
2016
Billions
$0.1
$1.6
$2.1
$2.4 $2.5
$0.0
$0.6
$1.2
$1.8
$2.4
$3.0
2001 2013 2014 2015 LTM
9/30/16
Billions
$0.8
$4.7
$5.1
$7.0
$5.9
$0.0
$2.0
$4.0
$6.0
$8.0
2001 2013 2014 2015 LTM
9/30/16
Billions
$1.7
$18.7 $20.4
$22.4 $24.4
$0
$5
$10
$15
$20
$25
2001 2013 2014 2015 Sept.
2016
Billions
Net Income Attributable to BHE
BHE Shareholders’ EquityProperty, Plant and Equipment (Net)
Cash Flows From Operations
11
Berkshire Hathaway Energy
Financial Summary
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM
Sept.
2016
N
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I
n
c
o
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e
a
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d
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a
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h
F
l
o
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(
$
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)
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&
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D
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b
t
(
$
b
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s
)
Total Assets Total Debt Net Income Cash Flows From Operations
Long-Term Perspective
Growing the Business
12
(1) Total Debt excludes Junior Subordinated Debentures and BHE trust preferred securities
12/31/01 – 9/30/16 CAGR
Total Assets 13.9%
Net Income 21.5%
Cash Flows From Operations 14.1%
• We have grown our assets significantly since 2001 while de-risking the business,
reducing total debt / total assets from 58% to 43% as of September 30, 2016
(1)
Customer Service –
Deliver Reliable and Affordable Service
13
Mastio Results
Interstate Pipelines 2003 2016
Kern River 10 1
Northern Natural Gas 43 2
TQS Results
2016 Top 5 Utilities on Overall Customer Satisfaction
Rank Utility Very Satisfied
1 Berkshire Hathaway Energy 96.1%
2 Company A 95.9%
3 Company B 93.4%
4 Company C 92.3%
5 Company D 86.6%
47 Company name not available 20.0%
Top 3 for the
13th consecutive year
No. 1 for the
11th consecutive year
Employee Commitment –
Improve Safety Culture and Work Environment
14
Berkshire Hathaway Energy Incident Rate
0.0
0.5
1.0
1.5
2.0
2.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sep-16
BHE Incident Rate
2016 Industry
Top Decile
1.03
Berkshire Hathaway Energy Businesses with Incident Rate ≤ 1.0
CalEnergy Philippines 21 years
Northern Powergrid 13 years
Northern Natural Gas 7 years
BHE U.S. Transmission 4 years
Kern River 4 years
AltaLink 3 years
MidAmerican Energy Company 3 years
NV Energy 2 years
Pacific Power 2 years
1.91
0.56
71% Improvement
Environmental Respect –
Invest in Renewable Energy
15
• In August 2016, the IUB approved MidAmerican Energy’s request to construct up to 2,000 MW
of additional wind-powered generating facilities which are expected to be placed in service in
2017 through 2019 with a cost cap of $3.6 billion
– “Wind XI puts Iowa on track to be the first state in the nation to generate more than 40
percent of its energy needs from wind power – far ahead of any other state. Today, Iowa is
the only state to have crossed the 30 percent mark” – Iowa Governor Terry E. Branstad
• BHE has entered into renewable tax equity investments of approximately $975 million of which
$644 million has been funded to date, and $331 million has been committed through 2018
• Evaluation of wind repowering opportunities is ongoing
Owned Wind and Solar Generation Capacity (MW)
Regulated Unregulated
MidAmerican BHE
PacifiCorp Energy NVE Renewables Total
1999-2013 1,030 2,324 - 821 4,175
2014 - 508 - 652 1,160
2015 - 581 15 486 1,082
2016-2019 - 2,594 - 708 3,302
Total 1,030 6,007 15 2,667 9,718
Investment (billions) $2 $10 $0 $9 $21
Environmental Respect –
Asset & Generation Diversity
16
(1) Net MW owned in operation and under construction
Dec. 31, 2000
BHE Generation Capacity – 5,618 MW (1)
Sept. 30, 2016
BHE Generation Capacity – 31,600 MW (1)
Coal
30%
Natural Gas
33%Nuclear and
other
1%
Wind
26%
Solar
5%
Hydro
4%
Geothermal
1%
Coal
51%
Natural Gas
27%
Nuclear and
other
8%
Hydro
2%
Geothermal
Solar, Wind
12%
Total
Renewables
36%
Total
Renewables
14%
BHE Asset Profile
81%
8%
11%
Renewables
and Other
Natural Gas
Generation
Coal Generation
Net Property, Plant and Equipment as of Dec. 31, 2015
• Berkshire Hathaway Energy signed
American Business Act on Climate
Pledge in July 2015
• Berkshire Hathaway Energy was the
first energy company to join the pledge
Midwest Region(2)
MidAmerican Energy $0.0687
Midwest Region $0.0963
Regulatory Integrity –
Achieve Balanced Outcomes
17
Company Average Retail Rate ($/kWh)
Pacific Region(1)
Pacific Power $0.0942
Nevada Power $0.1012
Pacific Region $0.1447
Mountain Region(1)
Rocky Mountain Power $0.0811
Sierra Pacific Power $0.0805
Mountain Region $0.0954
Highest Average Rates ($/kWh) by State(1): Hawaii – $0.2395; Massachusetts – $0.1816;
Connecticut – $0.1768; Rhode Island – $0.1717; New York – $0.1674
(1) Source: Edison Electric Institute (Summer 2016)
(2) Source: U.S. Energy Information Administration
Relative to Pacific Region :
Pacific Power 35% lower
Nevada Power 30% lower
Relative to Mountain Region :
Rocky Mountain Power 15% lower
Sierra Pacific Power 16% lower
Relative to Midwest Region :
MidAmerican Energy 29% lower
Financial Strength –
Strong Credit Profile
18
• BHE key credit ratios(1)
– Credit ratios continue to be strong and supportive of our credit ratings
• Ratings (issuer or senior unsecured ratings unless noted)
(1) Refer to the Appendix for the calculations of key ratios
(2) 2014 calculation excludes AltaLink debt and BHE acquisition debt related to AltaLink acquisition
(3) Ratings are senior secured ratings
Moody’s S&P Fitch Moody’s S&P Fitch DBRS
Berkshire Hathaway Energy A3 A- BBB+ Kern River Funding Corp.(3) A2 A A- -
PacifiCorp(3) A1 A+ A+ Northern Powergrid (Northeast) A3 A A- -
MidAmerican Energy Company(3) Aa2 A+ A+ Northern Powergrid (Yorkshire) A3 A A -
Nevada Power Company(3) A2 A+ A- AltaLink L.P.(3) - A - A
Sierra Pacific Power(3) A2 A+ A-
Northern Natural Gas Company A2 A A
LTM
9/30/16 2015 2014
FFO Interest Coverage 4.4x 4.5x 4.9x
FFO to Adjusted Debt Excluding Acquisition Related Debt(2) 16.5% 17.6% 20.6%
Adjusted Debt to Total Capitalization 58.6% 58.6% 59.7%
Financial Strength –
Credit Metrics
19
Note: Refer to the appendix for the calculations of key ratios, excluding AltaLink, L.P. AltaLink financial information is disclosed in the Management’s
Discussion and Analysis section as presented in its Canadian public financial filings
Regulated U.S. Utilities Regulated Pipelines and Electric Distribution
LTM
9/30/16 2015 2014
LTM
9/30/16 2015 2014
PacifiCorp Northern Natural Gas
FFO Interest Coverage 5.7x 5.4x 5.2x FFO Interest Coverage 11.4x 10.4x 8.3x
FFO to Debt 25.4% 23.2% 22.4% FFO to Debt 51.3% 48.7% 36.6%
Debt to Total Capitalization 48.4% 48.9% 47.6% Debt to Total Capitalization 35.7% 36.1% 40.2%
MidAmerican Energy Northern Powergrid
FFO Interest Coverage 7.6x 7.2x 7.1x FFO Interest Coverage 4.8x 5.1x 5.3x
FFO to Debt 30.3% 26.6% 25.9% FFO to Debt 20.4% 21.2% 24.4%
Debt to Total Capitalization 45.4% 47.6% 49.0% Debt to Total Capitalization 42.5% 44.3% 42.7%
Nevada Power Company AltaLink, L.P.
FFO Interest Coverage 5.1x 6.1x 4.8x FFO Interest Coverage 3.2x 2.6x 3.0x
FFO to Debt 25.5% 29.5% 22.5% FFO to Debt 11.9% 9.6% 10.4%
Debt to Total Capitalization 50.1% 50.9% 55.1% Debt to Total Capitalization 62.4% 62.4% 61.3%
Sierra Pacific Power Company
FFO Interest Coverage 5.3x 6.1x 5.1x
FFO to Debt 21.0% 25.7% 21.1%
Debt to Total Capitalization 51.3% 52.8% 54.4%
• Our businesses continue to perform well
Financial Information ($ millions)
20
BHE LTM Sept. 30, 2016
Net Income(1) : $2.5 Billion
PacifiCorp
27%
MidAmerican
Funding
19%
NV Energy
13%
Northern
Powergrid
14%
BHE Pipeline
Group
9%
BHE
Transmission
8%
BHE
Renewables
6%
HomeServices
4%
(1) Percentages exclude Corporate/other
LTM Years Ended
Net Income Attributable to BHE 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 742$ 697$ 700$
MidAmerican Funding 511 442 393
NV Energy 357 379 354
Northern Powergrid 369 422 412
BHE Pipeline Group 250 243 230
BHE Transmission 222 186 56
BHE Renewables 157 124 121
HomeServices 118 104 83
BHE and Other (195) (227) (254)
Net income attributable to BHE 2,531$ 2,370$ 2,095$
2016 Projected Capital Expenditures – $4.9 Billion
21
Capital Expenditures
by Type ($m)
Capital Expenditures
by Business ($m)
PacifiCorp
772
NV Energy
597
MidAmerican
Funding
1,588 (1)
Northern
Powergrid
546
BHE Pipeline
Group
257
BHE
Renewables
622
BHE
Transmission
469
HomeServices
and Other
33
Solar Generation
105
Wind
Generation
1,388
Environmental
86
Other
Development
Projects
127
Electric
Transmission
568
Electric
Distribution
and Other
Operating
2,610
(1) MidAmerican Funding includes Wind XI capital expenditures
2016 – 2018 Projected Capital Expenditures
22
4,884
4,328
4,007
$-
$1,000
$2,000
$3,000
$4,000
$5,000
2016 2017 2018
$
M
i
l
l
i
o
n
s
Electric Distribution and Other Operating Other Developmental Projects
Electric Transmission Solar Generation
Wind Generation Environmental
(1) Net MW owned in operation as of September 30, 2016
(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
• Headquartered in Portland, Oregon
• 5,600 employees
• 1.8 million electric customers in six
western states
• 10,894 MW of owned capacity(1)
• Owned capacity by fuel type:
9/30/16 3/31/06
– Coal 54% 72%
– Natural gas 25% 13%
– Hydro(2) 11% 14%
– Wind, geothermal and other(2) 10% 1%
PacifiCorp
23
PacifiCorp – Business Update
24
• Strong cost containment helps minimize need for rate increases while continuing to improve safety, reliability
and customer service
• Actual retail load for the nine-months ended September 30, 2016, was 40,776 gigawatt-hours, a 0.4% decrease
versus the same time period for 2015 due to lower commercial and industrial customer usage, partially offset by
higher residential customer usage and an increase in average number of residential and commercial customers
primarily in Utah
• Multi-year rate plans are in effect in several states, and energy cost adjustment mechanisms exist in all six
states PacifiCorp has operations
• Utah Sustainable Transportation and Energy Plan (“STEP”)
− The Company filed in September 2016 for approval by Utah regulators to implement the STEP passed by Utah
legislators during March 2016. The Company proposed a five-year pilot program with a budget of $10 million
each year, including:
o Electric vehicle charging infrastructure programs
o Commercial line incentives for business
o Curtailment of Gadsby Plant emissions during periods of air quality alerts
o Investigate and implement new technologies
o Clean Coal research programs
o Cost recovery of Utah Solar Incentive Program pre-2017 expenditures
− The plan also includes a risk mitigation fund to minimize the rate impact to customers in the event coal fueled
generation plants are closed prematurely due to compliance requirements
− Mandates full recovery of Utah’s share of fuel, purchased power and other supply costs through EBA that are not
fully in the base rates
PacifiCorp – Business Update
25
• Oregon Clean Electricity and Coal Transition Plan signed into law by Gov. Brown in March
2016
− Doubles renewable energy portfolio standard to 50%
o 20% by 2020, 27% by 2025, 35% by 2030, 40% by 2035, 50% by 2040
o Incorporates renewable energy credit banking provisions
− Removes coal costs from Oregon rates by January 1, 2030
− Provisions to protect customers and utilities
• Washington regulators authorized a two-step rate increase of $5.7 million (1.7%) effective
October 2016 and $8.0 million (2.3%) effective September 2017
− Washington regulators also approved PacifiCorp’s proposed accelerated depreciation schedule
for Jim Bridger and Colstrip plants and a revenue decoupling mechanism. The Commission
approved recovery of the costs of the selective catalytic reduction systems at Jim Bridger Units 3
and 4 but will not allow the Company to earn a return on those investments
MidAmerican Energy
26
• Headquartered in Des Moines, Iowa
• 3,300 employees
• 1.5 million electric and natural gas customers
in four Midwestern states
• 10,595 MW(1) of owned capacity
• Owned capacity by fuel type:
9/30/16(1) 12/31/00
– Coal 26% 70%
– Natural gas 13% 19%
– Wind(2) 57% 0%
– Nuclear and other 4% 11%
(1) Net MW owned in operation and under construction as of September 30, 2016
(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
SOUTH DAKOTA
NEBRASKA
KANSAS MISSOURI
ILLINOIS
WISCONSIN
MINNESOTA
IOWA
MidAmerican Energy
Service Territory
Major Generating Facilities
Wind Projects
Wind Projects Under Construction
MidAmerican Energy – Business Update
27
• Final rates associated with an Iowa electric rate increase filed May 17, 2013, resulted in a
phased-in increase to base rates of $135 million at annualized amounts of $45 million (3.6%)
effective August 2013, $45 million effective January 2015, and $45 million effective January
2016; and adjustment clauses for retail energy, including the pre-tax value of federal production
tax credits, and Midcontinent Independent System Operator (“MISO”) transmission costs
• All electric and gas jurisdictions have adjustment clauses to recover actual fuel costs, and the
Iowa and South Dakota electric clauses include the pre-tax value of federal production tax
credits
• MidAmerican Energy continues to rank high in customer satisfaction as evidenced by being
ranked No. 1 in overall customer satisfaction in the Midwest Large Segment in two J.D. Power
studies (Residential Electric and Residential Natural Gas); being named a Most Trusted
Business Partner in the Cogent Reports 2016 Utility Trusted Brand & Customer Engagement
Study: Commercial; and by earning its highest overall customer satisfaction score in company
history in the TQS Key Accounts study
• Customer growth, warmer-than-normal summer weather and improved industrial sales helped
offset mild winter weather, resulting in an increase in actual retail electric sales to 18,089
gigawatt-hours for the nine-months ended September 30, 2016, a 2.9% increase over the same
period for 2015
MidAmerican Energy – Business Update
28
• Wind X Project – Currently completing construction of the 551 MW (nominal ratings) wind-
powered generation project in Iowa. As of September 30, 2016, MidAmerican Energy has
placed in-service 123 MW and expects to place the remaining 428 MW in-service by the end of
2016 within the $888 million cost cap established by the Iowa Utilities Board (IUB)
• Wind XI Project – In August 2016, the IUB approved rate-making principles related to the
construction of up to 2,000 MW of additional wind-powered generating facilities expected to be
placed in-service between 2017 and 2019 with a cost cap of $3.6 billion
• Constructing transmission lines in Iowa and Illinois that are expected to be in-service in 2016-
2018, with an estimated cost of $555 million; projects have been designated as Multi-Value
Projects by the MISO
• In June 2016, Exelon Generation Company, LLC announced its intention to shut down Quad
Cities Generating Station Units 1 and 2 (“Quad Cities Station”) on June 1, 2018, as a result of
Illinois not passing adequate legislation and Quad Cities Station not clearing the 2019-2020
PJM Interconnection, L.L.C. capacity auction. MidAmerican Energy Company has a 25%
ownership in Quad Cities Station and continues to work with Exelon Generation on solutions
that will lead to continued operation of the facility through the end of its operating license in
2032
29
NV Energy
• Headquartered in Las Vegas, Nevada
• 2,500 employees
• 1.2 million electric and 0.2 million gas customers
• Provides service to 90% of Nevada population, along with tourist
population of 41.0m
• 6,138 megawatts of owned power generation capacity (87% natural
gas, 13% coal & other)
– All owned coal plants will either be shutdown or ownership
interest divested by 2025
• 1,588 megawatts of renewable energy in Nevada through power
purchase agreements (43% solar, 30% geothermal, 16% hydro,
11% wind/other)
(1) Net MW owned in operation and under construction as of September 30, 2016
• Provides electric services to Las
Vegas and surrounding areas
• 0.9 million retail electric
customers
• 4,766 megawatts of owned
power generation(1)
• Provides electric and gas services
to Reno and northern Nevada
• 0.3 million retail electric customers
and 0.2 million retail gas
customers
• 1,372 megawatts of owned power
generation(1)
Nevada Power Company Sierra Pacific Power Company
NV Energy – Business Update
30
Private generation:
– On September 12, 2016, the state district court affirmed a February 2016 Public Utilities Commission of Nevada
(“PUCN”) order establishing different rates and a lower excess energy credit for new private generation customers
(i.e., those who did not have an interconnection application pending on December 31, 2015)
– On September 16, 2016, the PUCN approved NV Energy’s proposal to “grandfather” 32,000 private generation
customers who had installed systems before December 31, 2015, or an active interconnection application pending
on December 31, 2015
– As a result, new private generation customers are governed by the PUCN’s February 2016 order, while existing
private generation customers will benefit from the net energy metering rules that existed before that order
Proposed amendment to the Nevada Constitution known as the Energy Choice Initiative would require
the Nevada Legislature to adopt legislation providing for a competitive electric market by 2023. NV
Energy remains neutral and developed Key Principles, designed for healthy dialogue around future
policy changes. Measure needs a majority vote in 2016 and 2018 general elections, with legislative
action
Sierra Pacific Power Company filed the triennial rate review application for its electric and gas
operations June 6, 2016. The Company, PUCN staff, and intervenors entered into a stipulation
agreement October 17, 2016, which resolved most of the rate case issues. The PUCN is expected to
vote on the stipulation later this year and if approved, the stipulation will annually reduce electric
revenues by $2.9 million and natural gas revenues by $2.4 million, effective January 1, 2017
Energy imbalance market first-year savings already exceed $5.1 million annual target
Nevada Gov. Sandoval announced two new appointments to the three-member PUCN
Leeds
Edinburgh
Middlesbrough
Newcastle Upon Tyne
Sheffield
York
Northeast
Yorkshire
• 3.9 million end-users in northern England
• Approximately 58,000 miles of distribution lines
• Approximately 67% of 2016 distribution revenue
from residential and commercial customers
through September 30, 2016
• Distribution revenue (£ millions):
• Strong start to the ED1 period (eight-year price
control started April 2015) with total expenditure
for the 2015/16 regulatory year at 97.1% of
allowances and outputs 14.3% ahead of target.
Groundwork now laid for delivering commitments
effectively over the eight-year period
• In 2016 a step-change is being achieved in
overall customer satisfaction, from an average
ranking of 5th in 2015 to an average ranking of
2nd or 3rd in 2016
Nine Months Ended
9/30/16 9/30/15
Residential 243 257
Commercial 81 88
Industrial 154 154
Other 5 5
Total 482 504
Northern Powergrid
31
• 14,700 miles of natural gas pipeline
• 5.7 Bcf per day of market area design capacity; 1.7
Bcf per day field area capacity
• More than 73 Bcf firm service and operational storage
cycle capacity
• 90% of transportation and storage revenue through
September 30, 2016, is based on demand charges
• Increased the integrity and reliability of the pipeline
while managing operating costs and staffing
• Ranked No. 1 among 16 mega-pipelines and No. 2
among 42 interstate pipelines in 2016 Mastio &
Company customer satisfaction survey
• Over the past decade, approximately $200 million in
capital has been invested to ensure compliance with
Pipeline Safety Act requirements
• Excellent performance
– 2015-2016 heating season 10% warmer than normal
compared to 9% colder than normal for 2014-2015 heating
season. November & December 2015 were a combined
16% warmer than normal
– Set new Market Area peak daily delivery record of 5.158 Bcf
January 18, 2016
– Pipeline system operated dependably and safely. No lost-
time safety-related incidents
Northern Natural Gas
32
MINNESOTA
WISCONSIN
IOWA
SOUTH DAKOTA
NEBRASKA
KANSAS
OKLAHOMA
TEXAS
• 1,700 miles of natural gas pipeline
• Design capacity of 2.2 million Dth per
day of natural gas
• 97% of revenue through September 30,
2016, is based on demand charges
• Kern River delivered nearly 20%(1) of
California’s natural gas demand in 2015
• Ranked No. 1 among 42 interstate
pipelines in 2016 Mastio & Company
customer satisfaction survey
• Existing shippers chose to extend
service with Kern River for approximately
94% of the 891,471 Dth/day of capacity
that expired in 2016 or is due to expire in
2017
– 25% of the capacity contracted for 10 years
– 69% of the capacity contracted for 15 years
Kern River
33
CALIFORNIA
NEVADA
ARIZONA
UTAH
WYOMING
(1) 2016 California Gas Report
AltaLink, L.P.
34
• AltaLink is a transmission-only
service provider
– Supplies electricity to approximately
85% of Alberta’s population
• AltaLink owns approximately 8,100
miles of 69 kilovolt and higher line,
and approximately 300 substations
within the transmission system in
Alberta
– No volume or commodity exposure
– Strong, stable regulatory environment
– Revenue from AA- rated Alberta
Electric System Operator
• Mid-year 2016 rate base and CWIP
per the most recent regulatory
update was C$7.3 billion
AltaLink Regulatory Update
35
2012-2013 Deferral Account Reconciliation Application (“DACDA”)
• On June 6, 2016, the Alberta Utilities Commission (“AUC”) approved C$1,862 million of the total
C$1,977 million of capital projects included in the 2012-2013 DACDA application. Project costs of
C$109 million were deferred to a future hearing
2015-2016 General Tariff Application (“GTA”)
• On May 9, 2016, the AUC approved AltaLink’s proposed immediate tariff relief of C$415 million for
2015 and 2016 (as well as an additional C$185 million for 2017-2018) through the:
– Discontinuance of CWIP in rate base and the return to AFUDC accounting effective January 1,
2015, and the refund of previously collected CWIP in rate base as part of AltaLink’s tariffs during
2012-2014 less the related returns
– Adoption of the flow-through tax methodology for the calculation of deemed income taxes effective
January 1, 2016
2016-2017 Generic Cost of Capital Decision (“GCOC”)
• On October 7, 2016, the AUC approved an ROE of 8.3% for 2016 and 8.5% for 2017 (8.3% for 2013-
2015) and an equity thickness of 37% for 2016 and 2017 (36% for 2013-2015)
• The AUC was consistent with its approach in past GCOC decisions to award common equity ratios
that are on a stand-alone basis consistent with credit ratings in the A category
2017-2018 GTA
• On October 28, 2016, AltaLink filed an amendment to its 2017-2018 GTA seeking approval for
revenue requirement of C$891 million in 2017 and C$919 million in 2018
• AltaLink is seeking AUC approval to engage in settlement discussions on some or all of the issues
within the 2017-2018 GTA
BHE Renewables
36
(1) Based on net owned capacity of 3,973 MW in operation and under construction as of September 30, 2016
(2) Forecast approximately 100 off-takers for the purchase of all the energy produced by the solar portfolio for a period up to 25 years
(3) Separate PPA’s exist with Missouri Joint Municipal Electric Commission (20 MW), Kansas Power Pool (25 MW), City of Independence, Missouri (20 MW), with the remaining (7 MW) still in negotiation
(4) 83% of the Company's interests in the Imperial Valley Projects' Contract Capacity are currently sold to Southern California Edison Company under long-term power purchase agreements expiring in 2016
through 2026. Certain long-term power purchase agreement renewals for 244 MW have been entered into with other parties at fixed prices that expire from 2028-2039, of which 202 MW mature 2039
BHE Solar
Geothermal
Natural Gas
BHE Wind
BHE Hydro
CalEnergy Philippines
Solar
35%
Wind
29%
Geothermal
9%
Hydro
3%
Natural Gas
24%
Portfolio Composition (1)
2016-2018
10%
2019-2028
21%
2029+
69%
Contract Maturities (1)
Location Installed
PPA
Expiration
Power
Purchaser
Net or
Contract
Capacity
(MW)
Net
Owned
Capacity
(MW)
SOLAR
Solar Star I & II CA 2013-2015 2035 SCE 586 586
Topaz CA 2013-2014 2040 PG&E 550 550
Agua Caliente AZ 2012-2013 2039 PG&E 290 142
Community Solar
Gardens
MN 2016-2017 (2) (2) 96 96
1,522 1,374
WIND
Pinyon Pines I & II CA 2012 2035 SCE 300 300
Jumbo Road TX 2015 2033 Austin Energy 300 300
Bishop Hill II IL 2012 2032 Ameren 81 81
Grande Prairie NE 2016 2037 OPPD 400 400
Marshall Wind KS 2016 2036 (3) 72 72
1,153 1,153
GEOTHERMAL
Imperial Valley CA 1982-2000 (4) (4) 338 338
HYDROELECTRIC
Casecnan Phil. 2001 2021 NIA 150 128
Wailuku HI 1993 2023 Hawaii Electric 10 10
160 138
NATURAL GAS
Cordova IL 2001 2019 Exelon Generation 512 512
Power Resources TX 1988 2018 EDF Trading 212 212
Saranac NY 1994 2017
TransAlta
Energy Mktg
245 196
Yuma AZ 1994 2024 SDG&E 50 50
1,019 970
Total Owned and Under Construction 4,192 3,973
BHE Renewables Update
37
Solar
• Community Solar Gardens
– Phase 1 of 32 MW is expected to reach commercial operations in December 2016
– Phase 2 of 63.9 MW is expected to reach commercial operations in third quarter of 2017
Wind
• Grande Prairie
– 400 MW project acquired in February 2015
– Estimated commercial operation in fourth quarter 2016
• Marshall
– 72 MW project acquired in September 2015
– Commercial operation commenced in April 2016
Tax Equity
• Executed agreements to provide tax equity of $975 million
– Tax equity sized to earn a preferred return through a targeted flip date, generally over a 10-year period
Geothermal
• Imperial Valley projects have 328 MW out of 338 MW with long-term contracts that expire between 2016 to 2026. Of
the 338 MW, 244 MW have been re-contracted, with maturities between 2028-2039; 42 MW are being marketed,
and the remaining 52 MW do not become available until 2026-2030
Near-Term Financing Plan
38
• Berkshire Hathaway Energy
– Potential for $500 million – $1.0 billion in short-dated parent debt
financing in late 2016 or early 2017 to refinance existing short-term
commercial paper balances due to the continued build out of
renewable investment opportunities
• MidAmerican Energy
– Anticipate a $40 – $50 million tax-exempt debt financing in late
2016 or early 2017
– Anticipate up to $750 million debt financing in the first half 2017
• Nevada Power Company
– Anticipate up to $250 million debt financing first half 2017
• AltaLink, L.P.
– Anticipate debt financings of up to C$500 million in late 2016, and
up to C$300 mid-2017
Appendix
39
40
Rate Base Profile
$16.0 $16.6 $17.2 $17.4
$0.0
$4.0
$8.0
$12.0
$16.0
$20.0
2013 2014 2015 2016F
Billions
$7.2 $7.0 $6.8 $6.6
$0.0
$2.0
$4.0
$6.0
$8.0
2013 2014 2015 2016F
Billions
$6.2 $6.7
$7.5 $8.2
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
2013 2014 2015 2016F
Billions
NV Energy
MidAmerican EnergyPacifiCorp
BHE Pipeline Group
$3.2 $3.1 $3.1 $3.0
$0.0
$1.0
$2.0
$3.0
$4.0
2013 2014 2015 2016F
Billions
Note: Rate base represents mid-year averages
41
Rate Base Profile
(1) 2014 includes the addition of NV Energy Inc., which was acquired December 19, 2013
(2) 2015 includes the addition of AltaLink, L.P., which was acquired December 1, 2014
(3) Northern Powergrid rate base converted into USD in 2013-2015 at the June 30 USD/GBP FX rate each year including 1.5213 (2013), 1.7106
(2014), 1.5712 (2015). Rate base in 2016 converted at the September 30, 2016 FX rate of 1.2972
(4) AltaLink, L.P. rate base converted into USD in 2015 at the June 30, 2015 CAD/USD FX rate of 1.2494, and in 2016 at the September 30, 2016 FX
rate of 1.3127
Note: Rate base represents mid-year averages
£2.4 £2.6
£2.7 £2.9
£0.0
£1.0
£2.0
£3.0
£4.0
2013 2014 2015 2016F
Billions
$2.5
$3.5
$5.3
$7.0
$0.0
$1.5
$3.0
$4.5
$6.0
$7.5
2013 2014 2015 2016F
AltaLink, L.P.Northern Powergrid
Berkshire Hathaway Energy
$29.0
$37.8
$43.1 $44.3
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2013A 2014A 2015A 2016F
PAC MEC Northern Powergrid BHE Pipeline Group NVE AltaLink, L.P.
(1) (2)
(3) (4)
Billions
C$ Billions
Regulatory Integrity –
Distributed Generation Penetration Rate
42
Total Electric
Customers as of
September 2016
Private Solar
Customers as of
September 2016
Private Solar
Portion of
Total Customers
MidAmerican Energy Company
Iowa 671,552 360 0.05%
Illinois 85,046 18 0.02%
South Dakota 4,902 0 0.00%
PacifiCorp
Utah 877,736 13,580 1.55%
Oregon 575,351 5,103 0.89%
Wyoming 140,267 233 0.17%
Washington 129,846 550 0.42%
Idaho 76,523 200 0.26%
California 44,969 277 0.62%
NV Energy
Nevada 1,245,913 24,063 1.93%
Total BHE Customers 3,852,105 44,384 1.15%
Berkshire Hathaway Energy – Impact of Distributed Generation
Consolidated Environmental Position
43
• Owned coal-fueled capacity has declined as a percentage of BHE’s generation portfolio from
51% in 2000, to 30% as of September 30, 2016
• Coal Combustion Residuals – managing under new regulatory requirements
– PacifiCorp has 6 active surface impoundments and 4 landfills; 3 inactive surface impoundments are
undergoing closure
– MidAmerican Energy has 3 active surface impoundments and 4 landfills; 4 inactive surface impoundments
are undergoing closure
– NV Energy operates 2 active evaporative surface impoundments and 2 landfills; all other surface
impoundments are undergoing closure by removal
• Effluent Limitation Guidelines
– For BHE’s operating companies, impacted waste streams are limited to bottom ash or fly ash transport
water, combustion residual leachate and non-metal cleaning wastes
– With minor exceptions, most new requirements are addressed by compliance with the coal combustion
residuals rule
• The U.S. Supreme Court issued a stay February 9, 2016 of the implementation of the Clean
Power Plan pending the outcome of the litigation pending in the D.C. Circuit Court of Appeals
and through any action taken on appeal to the U.S. Supreme Court
– Oral arguments were held September 27, 2016, before ten judges in the D.C. Circuit; decision is expected
in early 2017
• Paris Agreement became effective November 4, 2016, after ratification by the requisite number
of parties representing 55 countries and 55% of global greenhouse gas emissions. Under the
agreement, the U.S. committed to reducing greenhouse gas emissions 26-28% from 2005
levels by 2025. A party cannot withdraw until November 4, 2019, and the withdrawal would
take effect one year later
Reducing Carbon Footprint
44
Coal MW as of Dec. 31, 2013(1) 10,526 MW
Riverside 3 – retired in 2014 (4) MW
Reid Gardner 1-3 – retired in 2014 (300) MW
Carbon 1 and 2 – removed from service in 2015 (172) MW
Riverside 5 – conversion to natural gas in 2015 (124) MW
Walter Scott 1 and 2 – retired in 2015 (124) MW
Neal 1 and 2 – retired in 2016 (390) MW
Reid Gardner 4 – to be retired in 2017 (257) MW
Cholla 4 – natural gas conversion or retire (395) MW
Naughton 3 – natural gas conversion or retire (280) MW
Navajo – Interest to be divested in 2019 (255) MW
North Valmy – to be retired in 2025 (261) MW
Coal MW as of Dec. 31, 2025 7,964 MW
• Through fuel switching and retirements, BHE’s utilities expect to eliminate approximately
2,560 MW of coal generation through 2025
(1) Adjusted for re-rating of coal plants between December 31, 2013 and September 30, 2016, including plants still in operation and retired
• EPA published its proposal to approve the Arizona Regional Haze SIP in the Federal Register on July 19, 2016. The SIP
contemplates operation of Cholla Unit 4 as a coal-fueled resource through April 2025, with natural gas conversion or
shutdown thereafter in lieu of installation of selective catalytic reduction equipment (“SCR”). The public comment period
closed September 2, 2016; the EPA is expected to take final action in the first half of 2017
• PacifiCorp and the owners of Craig Unit 1 have agreed with state and federal agencies and environmental groups to
amend the Colorado Regional Haze SIP to allow Unit 1 to retire by December 31, 2025, or convert to natural gas under
certain schedule requirements in lieu of installation of SCR
• EPA published its final action on the updated Utah Regional Haze SIP in the Federal Register on July 5, 2016, requiring
SCR on Hunter Units 1 and 2 and Huntington Units 1 and 2 by August 4, 2021. PacifiCorp has filed a request for
reconsideration and request for administrative stay with EPA, as well as a petition for review with the 10th Circuit Court
• PacifiCorp continues to assess compliance options for the 280 MW Naughton Unit 3, including conversion to natural gas or
accelerated retirement in lieu of SCR and baghouse retrofits prescribed by the Wyoming Regional Haze SIP(1)
• Forecast(2) environmental expenditures include $62 million in 2016, $28 million in 2017, $33 million in 2018, and $46 million
in 2019
PacifiCorp Environmental Position
(1) Natural gas conversion of Naughton Unit 3 is currently permitted by the State of Wyoming to occur by June 2018. The state will submit to the EPA for approval
(2) Environmental expenditures forecast includes PacifiCorp’s share of minority-owned Craig, Colstrip and Hayden plants. Amounts include debt AFUDC and escalation but
exclude non-cash equity AFUDC
45
PacifiCorp Asset Profile
69%
9%
22%
Renewables
and Other
Natural Gas
Generation
Coal
Generation
Net Property, Plant and Equipment as of Dec. 31, 2015
MidAmerican Energy Environmental Position
46
• Reduced coal exposure – Riverside Unit 3 (4 MW) retired in 2014, Riverside
Unit 5 (124 MW) was converted to natural gas in 2015, Walter Scott, Jr. Energy
Center Units 1 and 2 (124 MW) retired in 2015, and Neal Energy Center Units 1
and 2 (390 MW) retired in 2016
• Forecast(1) environmental expenditures include $54 million in 2016, $143 million
in 2017, $115 million in 2018, and $19 million in 2019
(1) Excludes equity AFUDC
MidAmerican Energy Asset Profile
82%
2%
16%
Renewables
and Other
Natural Gas
Generation
Coal
Generation
Net Property, Plant and Equipment as of Dec. 31, 2015
NV Energy Environmental Position
47
• NV Energy is reducing utilization of coal-fueled generation
– 2017 retirement of Reid Gardner Unit 4 (257 megawatts)
– 2019 elimination of Navajo interest (255 megawatts)
– 2025 retirement of North Valmy (261 megawatts)
• Forecast(1) environmental expenditures include $11 million in 2016, $16 million in
2017, $4 million in 2018, and $9 million in 2019
(1) Environmental expenditures forecast excludes equity AFUDC
Nevada Power Asset Profile
63%
34%
3%
Renewables and Other Natural Gas Generation
Coal Generation
Net Property, Plant and Equipment as of Dec. 31, 2015
Sierra Pacific Power Asset Profile
74%
20%
6%
Renewables and Other Natural Gas Generation
Coal Generation
Net Property, Plant and Equipment as of Dec. 31, 2015
Retail Electric Sales – Weather Normalized
48
Year-to-Date
September 30 Variance
(GWh) 2016 2015 Actual Percent
PacifiCorp
Residential 11,910 11,564 346 3.0%
Commercial 12,502 12,853 (350) -2.7%
Industrial and Other 16,229 16,512 (284) -1.7%
Total 40,641 40,929 (288) -0.7%
MidAmerican Energy
Residential 4,832 4,824 8 0.2%
Commercial 2,815 2,904 (89) -3.1%
Industrial and Other 10,212 9,812 400 4.1%
Total 17,859 17,539 319 1.8%
Nevada Power
Residential 7,639 7,406 234 3.2%
Commercial 3,572 3,519 53 1.5%
Industrial and Other 5,901 5,885 16 0.3%
Total 17,112 16,810 303 1.8%
Sierra Pacific Power
Residential 1,821 1,736 85 4.9%
Commercial 2,241 2,241 - 0.0%
Industrial and Other 2,244 2,224 21 0.9%
Total 6,305 6,200 105 1.7%
Northern Powergrid
Residential 9,349 9,206 143 1.6%
Commercial 4,069 4,244 (175) -4.1%
Industrial and Other 13,253 13,553 (300) -2.2%
Total 26,671 27,003 (332) -1.2%
Retail Electric Sales – Actual
49
Year-to-Date
September 30 Variance
(GWh) 2016 2015 Actual Percent
PacifiCorp
Residential 11,909 11,409 500 4.4%
Commercial 12,597 12,924 (327) -2.5%
Industrial and Other 16,270 16,604 (334) -2.0%
Total 40,776 40,937 (161) -0.4%
MidAmerican Energy
Residential 5,018 4,862 157 3.2%
Commercial 2,859 2,914 (55) -1.9%
Industrial and Other 10,212 9,812 400 4.1%
Total 18,089 17,588 502 2.9%
Nevada Power
Residential 7,802 7,586 216 2.9%
Commercial 3,600 3,560 40 1.1%
Industrial and Other 5,927 5,943 (16) -0.3%
Total 17,330 17,089 241 1.4%
Sierra Pacific Power
Residential 1,798 1,734 64 3.7%
Commercial 2,241 2,244 (3) -0.1%
Industrial and Other 2,247 2,231 17 0.8%
Total 6,286 6,208 78 1.3%
Northern Powergrid
Residential 9,264 9,193 72 0.8%
Commercial 4,049 4,229 (180) -4.3%
Industrial and Other 13,253 13,553 (300) -2.2%
Total 26,566 26,975 (409) -1.5%
Financial Information
50
($ millions)
LTM Years Ended
Operating Revenue 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 5,209$ 5,232$ 5,252$
MidAmerican Funding 2,539 2,515 2,844
NV Energy 2,995 3,351 3,241
Northern Powergrid 1,036 1,140 1,283
BHE Pipeline Group 984 1,016 1,078
BHE Transmission 473 592 62
BHE Renewables 727 728 623
HomeServices 2,727 2,526 2,144
BHE and Other 706 780 799
Total Operating Revenue 17,396$ 17,880$ 17,326$
Financial Information
51
($ millions)
LTM Years Ended
Depreciation and Amortization 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 785$ 780$ 745$
MidAmerican Funding 445 407 351
NV Energy 418 410 379
Northern Powergrid 203 202 198
BHE Pipeline Group 213 204 196
BHE Transmission 215 185 13
BHE Renewables 225 216 152
HomeServices 33 29 29
BHE and Other (1) (5) (6)
Total depreciation and amortization 2,536$ 2,428$ 2,057$
Financial Information
52
($ millions)
LTM Years Ended
Operating Income 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 1,415$ 1,344$ 1,308$
MidAmerican Funding 553 451 395
NV Energy 771 812 791
Northern Powergrid 514 593 674
BHE Pipeline Group 462 464 439
BHE Transmission 129 260 16
BHE Renewables 263 255 314
HomeServices 202 184 125
BHE and Other (62) (35) (16)
Total Operating Income 4,247$ 4,328$ 4,046$
Financial Information
53
($ millions)
LTM Years Ended
Interest Expense 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 382$ 383$ 386$
MidAmerican Funding 220 206 197
NV Energy 257 262 283
Northern Powergrid 142 145 151
BHE Pipeline Group 54 66 76
BHE Transmission 150 146 14
BHE Renewables 197 193 175
HomeServices 2 3 4
BHE and Other 478 500 425
Total interest expense 1,882$ 1,904$ 1,711$
(1) Excludes amounts for non-cash equity allowances for funds used during construction and other non-cash items
Financial Information
54
($ millions)
LTM Years Ended
Capital Expenditures(1) 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 861$ 916$ 1,066$
MidAmerican Funding 1,697 1,448 1,527
NV Energy 590 571 558
Northern Powergrid 574 674 675
BHE Pipeline Group 235 240 257
BHE Transmission 617 966 222
BHE Renewables 541 1,034 2,221
HomeServices 21 16 17
BHE and Other 9 10 12
Total capital expenditures 5,145$ 5,875$ 6,555$
Financial Information
55
($ millions)
Total Assets 9/30/2016 12/31/2015 12/31/2014
PacifiCorp 23,557$ 23,550$ 23,404$
MidAmerican Funding 17,199 16,315 15,165
NV Energy 14,424 14,656 14,256
Northern Powergrid 6,727 7,317 7,059
BHE Pipeline Group 5,115 4,953 4,951
BHE Transmission 8,493 7,553 7,979
BHE Renewables 6,775 5,892 6,082
HomeServices 1,947 1,705 1,622
BHE and Other 1,651 1,677 1,298
Total assets 85,888$ 83,618$ 81,816$
• As of September 30, 2016, approximately 94% of total debt was fixed-rate debt
• As of September 30, 2016, long-term adjusted debt had a weighted average life of
approximately 13 years and a weighted average interest rate of approximately 5.0%
Capitalization
56
($ millions)
(1) Debt includes short-term debt, Berkshire Hathaway Energy senior debt, and subsidiary debt (including current maturities), but excludes Berkshire Hathaway Energy subordinated debt
BHE Debt to Capitalization Comparison 9/30/2016 12/31/2015
Short-term debt 1,886$ 974$
Current portion of long-term debt 1,108 1,148
BHE senior debt 7,417 7,814
Subsidiary debt 26,234 26,066
Total adjusted debt(1) 36,645 36,002
BHE junior subordinated debentures 1,444 2,944
Noncontrolling interests 142 134
BHE shareholders' equity 24,354 22,401
Total capitalization 62,585$ 61,481$
Adjusted debt/capitalization 58.6% 58.6%
Non-GAAP Financial Measures
Berkshire Hathaway Energy
57
($ millions)
(1) FFO Interest Coverage equals the sum of FFO and Adjusted Interest divided by Adjusted Interest
(2) Debt includes short-term debt, Berkshire Hathaway Energy senior debt, Berkshire Hathaway Energy subordinated debt and subsidiary debt (including current maturities)
(3) 2014 calculation excludes AltaLink debt and BHE acquisition debt related to AltaLink acquisition
(4) Adjusted Debt to Total Capitalization equals Adjusted Debt divided by Capitalization
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 5,895$ 6,980$ 5,146$
+/- Changes in other operating assets and liabilities,
net of effects from acquisitions 163 (649) 1,170
FFO 6,058$ 6,331$ 6,316$
Adjusted Interest
Interest expense 1,882$ 1,904$ 1,711$
Interest expense on subordinated debt (77) (104) (78)
Adjusted Interest 1,805$ 1,800$ 1,633$
FFO Interest Coverage(1) 4.4x 4.5x 4.9x
Adjusted Debt
Debt(2) 38,089$ 38,946$ 39,897$
Subordinated debt (1,444) (2,944) (3,794)
Adjusted Debt 36,645$ 36,002$ 36,103$
Acquisition Financing Debt (1,500)
Acquisition Subsidiary Debt (4,007)
Adjusted Debt Excluding Acquisition Related Debt 36,002$ 30,596$
FFO to Adjusted Debt Excluding Acquisition Related Debt(3) 16.5% 17.6% 20.6%
Capitalization
Total BHE shareholders’ equity 24,354$ 22,401$ 20,442$
Adjusted debt 36,645 36,002 36,103
Subordinated debt 1,444 2,944 3,794
Noncontrolling interests 142 134 131
Capitalization 62,585$ 61,481$ 60,470$
Adjusted Debt to Total Capitalization(4) 58.6% 58.6% 59.7%
Non-GAAP Financial Measures
PacifiCorp
58
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
($ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 1,595$ 1,734$ 1,570$
+/- Changes in other operating assets and liabilities 210 (74) 10
FFO 1,805$ 1,660$ 1,580$
Interest expense 381$ 379$ 379$
FFO Interest Coverage(1) 5.7x 5.4x 5.2x
Debt (2) 7,093$ 7,166$ 7,039$
FFO to Debt(3) 25.4% 23.2% 22.4%
Capitalization
PacifiCorp shareholders’ equity 7,547$ 7,503$ 7,756$
Debt 7,093 7,166 7,039
Capitalization 14,640$ 14,669$ 14,795$
Debt to Total Capitalization(4) 48.4% 48.9% 47.6%
Non-GAAP Financial Measures
MidAmerican Energy
59
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
($ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 1,281$ 1,351$ 823$
+/- Changes in other operating assets and liabilities 12 (216) 235
FFO 1,293$ 1,135$ 1,058$
Interest expense 197$ 183$ 174$
FFO Interest Coverage(1) 7.6x 7.2x 7.1x
Debt (2) 4,268$ 4,271$ 4,084$
FFO to Debt(3) 30.3% 26.6% 25.9%
Capitalization
MidAmerican Energy shareholders’ equity 5,143$ 4,705$ 4,250$
Debt 4,268 4,271 4,084
Capitalization 9,411$ 8,976$ 8,334$
Debt to Total Capitalization(4) 45.4% 47.6% 49.0%
Non-GAAP Financial Measures
Nevada Power Company
60
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
($ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 871$ 892$ 704$
+/- Changes in other operating assets and liabilities (89) 77 95
FFO 782$ 969$ 799$
Interest expense 189$ 190$ 208$
FFO Interest Coverage(1) 5.1x 6.1x 4.8x
Debt (2) 3,065$ 3,285$ 3,544$
FFO to Debt(3) 25.5% 29.5% 22.5%
Capitalization
Nevada Power shareholder's equity 3,054$ 3,163$ 2,888$
Debt 3,065 3,285 3,544
Capitalization 6,119$ 6,448$ 6,432$
Debt to Total Capitalization(4) 50.1% 50.9% 55.1%
Non-GAAP Financial Measures
Sierra Pacific Power Company
61
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
($ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 242$ 342$ 246$
+/- Changes in other operating assets and liabilities 1 (33) 5
FFO 243$ 309$ 251$
Interest expense 57$ 61$ 61$
FFO Interest Coverage(1) 5.3x 6.1x 5.1x
Debt (2) 1,155$ 1,202$ 1,190$
FFO to Debt(3) 21.0% 25.7% 21.1%
Capitalization
Sierra Pacific Power shareholder's equity 1,095$ 1,076$ 998$
Debt 1,155 1,202 1,190
Capitalization 2,250$ 2,278$ 2,188$
Debt to Total Capitalization(4) 51.3% 52.8% 54.4%
Non-GAAP Financial Measures
Northern Natural Gas
62
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
($ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 386$ 362$ 297$
+/- Changes in other operating assets and liabilities 22 25 31
FFO 408$ 387$ 328$
Interest expense 39$ 41$ 45$
FFO Interest Coverage(1) 11.4x 10.4x 8.3x
Debt (2) 795$ 795$ 895$
FFO to Debt(3) 51.3% 48.7% 36.6%
Capitalization
Northern Natural Gas shareholder’s equity 1,432$ 1,410$ 1,330$
Debt 795 795 895
Capitalization 2,227$ 2,205$ 2,225$
Debt to Total Capitalization(4) 35.7% 36.1% 40.2%
Non-GAAP Financial Measures
Northern Powergrid
63
(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest
(2) Debt includes short-term debt and current maturities
(3) FFO to Debt equals FFO divided by Debt
(4) Debt to Total Capitalization equals Debt divided by Capitalization
(£ millions)
LTM
FFO 9/30/2016 2015 2014
Net cash flows from operating activities 339£ 345£ 336£
+/- Changes in other operating assets and liabilities 40 48 54
FFO 379£ 393£ 390£
Interest expense 100£ 95£ 91£
FFO Interest Coverage(1) 4.8x 5.1x 5.3x
Debt (2) 1,863£ 1,858£ 1,601£
FFO to Debt(3) 20.4% 21.2% 24.4%
Capitalization
Northern Powergrid shareholders’ equity 2,486£ 2,297£ 2,108£
Debt 1,863 1,858 1,601
Noncontrolling interests 36 36 37
Capitalization 4,386£ 4,191£ 3,746£
Debt to Total Capitalization(4) 42.5% 44.3% 42.7%
Non-GAAP Financial Measures
EBITDA
64
($ millions)
BHE Consolidated EBITDA LTM 9-30-2016
Net income attributable to BHE shareholders 2,531
Noncontrolling interests 32
Interest expense 1,882
Capitalized interest (133)
Income tax expense 370
Depreciation and amortization 2,536
EBITDA 7,218
