Regulatory Matters (Notes)

12 Months Ended

Dec. 31, 2019

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. The Company's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Employee benefit plans⁽¹⁾	15 years	$	667	$	773
Asset retirement obligations	Various	445		375
Asset disposition costs	Various	391		358
Deferred income taxes⁽²⁾	Various	223		196
Deferred operating costs	11 years	134		141
Deferred net power costs	2 years	110		103
Unrealized loss on regulated derivative contracts	3 years	78		120
Unamortized contract values	4 years	60		79
Abandoned projects	3 years	58		134
Other	Various	715		788
Total regulatory assets		$	2,881	$	3,067

Reflected as:
Current assets		$	115	$	171
Noncurrent assets		2,766		2,896
Total regulatory assets		$	2,881	$	3,067


(1)	Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.


(2)	Amounts primarily represent income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

The Company had regulatory assets not earning a return on investment of $1.4 billion and $1.3 billion as of December 31, 2019 and 2018, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. The Company's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Deferred income taxes⁽¹⁾	Various	$	3,611	$	3,923
Cost of removal⁽²⁾	27 years	2,370		2,426
Levelized depreciation	29 years	304		329
Asset retirement obligations	33 years	241		163
Impact fees	2 years	72		88
Other	Various	713		577
Total regulatory liabilities		$	7,311	$	7,506

Reflected as:
Current liabilities		$	211	$	160
Noncurrent liabilities		7,100		7,346
Total regulatory liabilities		$	7,311	$	7,506

(1)

Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse. See Note 12 for further discussion of 2017 Tax Reform impacts.


(2)	Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

PacifiCorp [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. PacifiCorp's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining
	Life	2019		2018

Employee benefit plans⁽¹⁾	19 years	$	422	$	448
Utah mine disposition⁽²⁾	Various	125		136
Unamortized contract values	4 years	60		79
Deferred net power costs	2 years	106		62
Unrealized loss on derivative contracts	3 years	62		96
Asset retirement obligation	28 years	140		119
Other	Various	208		172
Total regulatory assets		$	1,123	$	1,112

Reflected as:
Current assets		$	63	$	36
Noncurrent assets		1,060		1,076
Total regulatory assets		$	1,123	$	1,112


(1)	Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in rates when recognized.


(2)	Amounts represent regulatory assets established as a result of the Utah mine disposition in 2015 for the net property, plant and equipment not considered probable of disallowance and for the portion of losses associated with the assets held for sale, UMWA 1974 Pension Plan withdrawal and closure costs incurred to date considered probable of recovery.

PacifiCorp had regulatory assets not earning a return on investment of $609 million and $636 million as of December 31, 2019 and 2018, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. PacifiCorp's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining
	Life	2019		2018

Cost of removal⁽¹⁾	26 years	$	1,019	$	994
Deferred income taxes⁽²⁾	Various	1,653		1,803
Other	Various	297		258
Total regulatory liabilities		$	2,969	$	3,055

Reflected as:
Current liabilities		$	56	$	77
Noncurrent liabilities		2,913		2,978
Total regulatory liabilities		$	2,969	$	3,055


(1)	Amounts represent estimated costs, as accrued through depreciation rates, of removing property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.


(2)	Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable of being passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

MidAmerican Energy Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. MidAmerican Energy's regulatory assets reflected on the Balance Sheets consist of the following as of December 31 (in millions):



	Average
	Remaining Life	2019		2018

Asset retirement obligations⁽¹⁾	6 years	$	223	$	160
Employee benefit plans⁽²⁾	12 years	26		62
Unrealized loss on regulated derivative contracts	1 year	7		19
Other	Various	33		32
Total		$	289	$	273


(1)	Amount predominantly relates to asset retirement obligations for fossil-fueled and wind-powered generating facilities. Refer to Note 11 for a discussion of asset retirement obligations.


(2)	Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

MidAmerican Energy had regulatory assets not earning a return on investment of $286 million and $269 million as of December 31, 2019 and 2018, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. MidAmerican Energy's regulatory liabilities reflected on the Balance Sheets consist of the following as of December 31 (in millions):



	Average
	Remaining Life	2019		2018

Cost of removal accrual⁽¹⁾	29 years	$	572	$	708
Deferred income taxes⁽²⁾	Various	478		626
Asset retirement obligations⁽³⁾	33 years	241		160
Employee benefit plans⁽⁴⁾	10 years	32		—
Pre-funded AFUDC on transmission MVPs⁽⁵⁾	53 years	35		36
Iowa electric revenue sharing accrual⁽⁶⁾	1 year	22		70
Other	Various	26		20
Total		$	1,406	$	1,620


(1)	Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing utility plant in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)

Amounts primarily represent income tax liabilities primarily related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.


(3)	Amount represents the excess of nuclear decommission trust assets over the related asset retirement obligation. Refer to Note 11 for a discussion of asset retirement obligations.


(4)	Represents amounts not yet recognized as a component of net periodic benefit cost that are to be returned to customers in future periods when recognized.


(5)	Represents AFUDC accrued on transmission MVPs that is deducted from rate base as a result of the inclusion of related construction work-in-progress in rate base.


(6)	Represents current-year accruals under a regulatory arrangement in Iowa in which equity returns exceeding specified thresholds reduce utility plant upon final determination.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Refer to Note 5 of MidAmerican Energy's Notes to Financial Statements.

Nevada Power Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Nevada Power's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Decommissioning costs⁽²⁾	3 years	$	241	$	222
Deferred operating costs	9 years	136		152
Merger costs from 1999 merger	25 years	120		125
Employee benefit plans⁽¹⁾	8 years	87		105
Asset retirement obligations	6 years	67		68
Legacy meters	13 years	49		53
ON Line deferrals	34 years	45		46
Abandoned projects	1 year	12		46
Deferred energy costs	1 year	—		47
Other	Various	44		53
Total regulatory assets		$	801	$	917

Reflected as:
Current assets		$	1	$	39
Noncurrent assets		800		878
Total regulatory assets		$	801	$	917


(1)	Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.


(2)	Amount includes regulatory assets with an indeterminate life of $104 million and $81 million as of December 31, 2019 and 2018, respectively.

Nevada Power had regulatory assets not earning a return on investment of $303 million and $334 million as of December 31, 2019 and 2018, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, asset retirement obligations, deferred operating costs, a portion of the employee benefit plans, losses on reacquired debt and deferred energy costs.

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Nevada Power's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Deferred income taxes⁽¹⁾	Various	$	681	$	677
Cost of removal⁽²⁾	33 years	332		320
Impact fees⁽³⁾	2 years	72		86
Other	Various	171		103
Total regulatory liabilities		$	1,256	$	1,186

Reflected as:
Current liabilities		$	93	$	49
Noncurrent liabilities		1,163		1,137
Total regulatory liabilities		$	1,256	$	1,186


(1)	Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.


(2)	Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices.


(3)	Amounts reduce rate base or otherwise accrue a carrying cost.

Deferred Energy

Nevada statutes permit regulated utilities to adopt deferred energy accounting procedures. The intent of these procedures is to ease the effect on customers of fluctuations in the cost of purchased natural gas, fuel and electricity and are subject to annual prudency review by the PUCN. Under deferred energy accounting, to the extent actual fuel and purchased power costs exceed fuel and purchased power costs recoverable through current rates that excess is not recorded as a current expense on the Consolidated Statements of Operations but rather is deferred and recorded as a regulatory asset on the Consolidated Balance Sheets and would be included in the table above as deferred energy costs. Conversely, a regulatory liability is recorded to the extent fuel and purchased power costs recoverable through current rates exceed actual fuel and purchased power costs and is included in the table above as deferred energy costs. These excess amounts are reflected in quarterly adjustments to rates and recorded as cost of fuel, energy and capacity in future time periods.

2017 Tax Reform

In February 2018, Nevada Power made filings with the PUCN proposing a tax rate reduction rider for the lower annual income tax expense anticipated to result from 2017 Tax Reform for 2018 and beyond. In March 2018, the PUCN issued an order approving the rate reduction proposed by Nevada Power. The new rates were effective April 1, 2018. The order extended the procedural schedule to allow parties additional discovery relevant to 2017 Tax Reform and a hearing was held in July 2018. In September 2018, the PUCN issued an order directing Nevada Power to record the amortization of any excess protected accumulated deferred income tax arising from the 2017 Tax Reform as a regulatory liability effective January 1, 2018. Subsequently, Nevada Power filed a petition for reconsideration relating to the amortization of protected excess accumulated deferred income tax balances resulting from the 2017 Tax Reform. In November 2018, the PUCN issued an order granting reconsideration and reaffirming the September 2018 order. In December 2018, Nevada Power filed a petition for judicial review. In January 2019, intervening parties filed statements of intent to participate in the petition for judicial review. Nevada Power has filed opening briefs and the intervening parties have filed answering briefs. The hearing occurred in January 2020 and a ruling is expected in the first half of 2020.

Energy Efficiency Program Rates ("EEPR") and Energy Efficiency Implementation Rates ("EEIR")

EEPR was established to allow Nevada Power to recover the costs of implementing energy efficiency programs and EEIR was established to offset the negative impacts on revenue associated with the successful implementation of energy efficiency programs. These rates change once a year in the utility's annual DEAA application based on energy efficiency program budgets prepared by Nevada Power and approved by the PUCN in integrated resource plan proceedings. When Nevada Power's regulatory earned rate of return for a calendar year exceeds the regulatory rate of return used to set base tariff general rates, it is obligated to refund energy efficiency implementation revenue previously collected for that year. In March 2019, Nevada Power filed an application to reset the EEIR and EEPR and to refund the EEIR revenue received in 2018, including carrying charges. In August 2019, the PUCN issued an order accepting a stipulation requiring Nevada Power to refund the 2018 revenue and reset the rates as filed effective October 1, 2019. The EEIR liability for Nevada Power is $8 million and $9 million, which is included in current regulatory liabilities on the Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively.

Emissions Reduction and Capacity Retirement Plan ("ERCR Plan")

In November 2019, the Navajo coal-fueled generating facility was retired. Nevada Power owned 11% of the facility and its net owned capacity was 255 MWs. The decommissioning was approved by the PUCN in May 2014 as a part of the filed ERCR Plan. The remaining net book value of $12 million was moved from property, plant and equipment, net to noncurrent regulatory assets on the Consolidated Balance Sheet in November 2019, in compliance with the ERCR Plan. Refer to Note 13 for additional information on the ERCR Plan.

Sierra Pacific Power Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Sierra Pacific's regulatory assets reflected on the Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Employee benefit plans⁽¹⁾	8 years	$	107	$	132
Merger costs from 1999 merger	27 years	71		74
Abandoned projects	7 years	24		29
Deferred Operating Costs	12 years	23		15
Losses on reacquired debt	15 years	17		19
Other	Various	53		52
Total regulatory assets		$	295	$	321

Reflected as:
Current assets		$	12	$	7
Noncurrent assets		283		314
Total regulatory assets		$	295	$	321


(1)	Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

Sierra Pacific had regulatory assets not earning a return on investment of $168 million and $190 million as of December 31, 2019 and 2018, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, a portion of the employee benefit plans, losses on reacquired debt, asset retirement obligations and legacy meters.

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Sierra Pacific's regulatory liabilities reflected on the Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2019		2018

Deferred income taxes⁽¹⁾	Various	$	263	$	270
Cost of removal⁽²⁾	38 years	217		210
Other	Various	58		29
Total regulatory liabilities		$	538	$	509

Reflected as:
Current liabilities		$	49	$	18
Noncurrent liabilities		489		491
Total regulatory liabilities		$	538	$	509

(1)

Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.


(2)	Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices.

Deferred Energy

Nevada statutes permit regulated utilities to adopt deferred energy accounting procedures. The intent of these procedures is to ease the effect on customers of fluctuations in the cost of purchased natural gas, fuel and electricity and are subject to annual prudency review by the PUCN. Under deferred energy accounting, to the extent actual fuel and purchased power costs exceed fuel and purchased power costs recoverable through current rates that excess is not recorded as a current expense on the Statements of Operations but rather is deferred and recorded as a regulatory asset on the Balance Sheets and would be included in the table above as deferred energy costs. Conversely, a regulatory liability is recorded to the extent fuel and purchased power costs recoverable through current rates exceed actual fuel and purchased power costs and is included in the table above as deferred energy costs. These excess amounts are reflected in quarterly adjustments to rates and recorded as cost of fuel, energy and capacity in future time periods.

Regulatory Rate Review

In June 2019, Sierra Pacific filed an electric regulatory rate review with the PUCN. The filing supported an annual revenue increase of $5 million but requested an annual revenue reduction of $5 million. In September 2019, Sierra Pacific filed an all-party settlement for the electric regulatory rate review. The settlement resolves all cost of capital and revenue requirement issues and provides for an annual revenue reduction of $5 million and requires Sierra Pacific to share 50% of regulatory earnings above 9.7% with its customers. The rate design portion of the regulatory rate review was not a part of the settlement and a hearing on rate design was held in November 2019. In December 2019, the PUCN issued an order approving the stipulation but made some adjustments to the methodology for the weather normalization component of historical sales in rates, which resulted in an annual revenue reduction of $3 million. The new rates were effective January 1, 2020. In January 2020, Sierra Pacific filed a petition for rehearing challenging the PUCN's adjustments to the weather normalization methodology. In February 2020, the PUCN issued an order granting the petition for rehearing.

2017 Tax Reform

In February 2018, Sierra Pacific made filings with the PUCN proposing a tax rate reduction rider for the lower annual income tax expense anticipated to result from 2017 Tax Reform for 2018 and beyond. In March 2018, the PUCN issued an order approving the rate reduction proposed by Sierra Pacific. The new rates were effective April 1, 2018. The order extended the procedural schedule to allow parties additional discovery relevant to 2017 Tax Reform and a hearing was held in July 2018. In September 2018, the PUCN issued an order directing Sierra Pacific to record the amortization of any excess protected accumulated deferred income tax arising from the 2017 Tax Reform as a regulatory liability effective January 1, 2018. Subsequently, Sierra Pacific filed a petition for reconsideration relating to the amortization of protected excess accumulated deferred income tax balances resulting from the 2017 Tax Reform. In November 2018, the PUCN issued an order granting reconsideration and reaffirming the September 2018 order. In December 2018, Sierra Pacific filed a petition for judicial review. In January 2019, intervening parties filed statements of intent to participate in the petition for judicial review. Sierra Pacific has filed opening briefs and the intervening parties have filed answering briefs. The hearing occurred in January 2020 and a ruling is expected in the first half of 2020.

Energy Efficiency Program Rates ("EEPR") and Energy Efficiency Implementation Rates ("EEIR")

EEPR was established to allow Sierra Pacific to recover the costs of implementing energy efficiency programs and EEIR was established to offset the negative impacts on revenue associated with the successful implementation of energy efficiency programs. These rates change once a year in the utility's annual DEAA application based on energy efficiency program budgets prepared by Sierra Pacific. When Sierra Pacific's regulatory earned rate of return for a calendar year exceeds the regulatory rate of return used to set base tariff general rates, it is obligated to refund energy efficiency implementation revenue previously collected for that year. In March 2019, Sierra Pacific filed an application to reset the EEIR and EEPR and to refund the EEIR revenue received in 2018, including carrying charges. In August 2019, the PUCN issued an order accepting a stipulation to reset the rates as filed effective October 1, 2019. The EEIR liability for Sierra Pacific is $2 million and $2 million, which is included in current regulatory liabilities on the Balance Sheets as of December 31, 2019 and 2018, respectively.