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Income Taxes
 6 Months Ended
Jun. 30, 2023
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
 2023202220232022
 
Federal statutory income tax rate21 %21 %21 %21 %
Income tax credits(34)(13)(35)(28)
State income tax, net of federal income tax impacts— (1)(2)— 
Income tax effect of foreign income(3)— 2 (1)
Effects of ratemaking(3)(1)(3)(2)
Equity income(2)(1)(1)(1)
Noncontrolling interest(3)(1)(3)(2)
Other, net— 1 — — 
Effective income tax rate(24)%5 %(21)%(13)%

Income tax credits relate primarily to production tax credits ("PTCs") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the six-month periods ended June 30, 2023 and 2022 totaled $700 million and $734 million, respectively.

Income tax effect on foreign income includes, among other items, a deferred income tax charge of $82 million recognized in March 2023 related to the July 2022 enactment of a new Energy Profits Levy 25% income tax in the United Kingdom effective May 26, 2022, through December 31, 2025, as well as an increase in the tax rate from 25% to 35% effective January 1, 2023, through March 31, 2028, enacted in January 2023.

The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway. The Company received net cash payments for federal income taxes from Berkshire Hathaway for the six-month periods ended June 30, 2023 and 2022 totaling $864 million and $1,249 million, respectively.

In July 2022, the Company amended its tax allocation agreement with Berkshire Hathaway, which changed how state tax attributes will be settled with respect to state income tax returns that Berkshire Hathaway includes the Company. As a result, the Company no longer expects to receive the cash benefits from the state of Iowa net operating loss carryforward previously recorded as a long-term income tax receivable from Berkshire Hathaway as a component of BHE's shareholders' equity, and recognized a noncash distribution of $744 million to retained earnings.
PAC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
The effective income tax rate for the six-month period ended June 30, 2023 of 91% results from a $140 million income tax benefit associated with a $154 million pre-tax loss primarily resulting from the $408 million pre-tax loss associated with the 2020 Wildfires described in Note 9. The $140 million income tax benefit is primarily comprised of a $32 million benefit (21%) from the application of the federal statutory income tax rate to the pre-tax loss, a $55 million benefit (36%) from federal income tax credits and a $34 million benefit (22%) from effects of ratemaking.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
State income tax, net of federal income tax benefit2 4 4 3 
Federal income tax credits(34)(25)36 (21)
Effects of ratemaking(1)
(26)(13)22 (11)
Valuation allowance— — 7 4 
Other(2)2 1 1 
Effective income tax rate(39)%(11)%91 %(3)%
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Income tax credits relate primarily to production tax credits ("PTC") from PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended June 30, 2023 and 2022, totaled $26 million and $18 million, respectively. PTCs recognized for the six-month periods ended June 30, 2023 and 2022, totaled $55 million and $44 million, respectively.

For the six-month period ended June 30, 2023, PacifiCorp released an $11 million valuation allowance related to state net operating loss carryforwards. For the six-month period ended June 30, 2022, PacifiCorp recorded an $8 million valuation allowance related to state net operating loss carryforwards.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, PacifiCorp's provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For the six-month periods ended June 30, 2023 and 2022, PacifiCorp received net cash payments for federal and state income tax from BHE totaling $205 million and $150 million, respectively. As of June 30, 2023, net income taxes payable to BHE were $55 million. As of December 31, 2022, net income taxes receivable from BHE were $84 million.
MEC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
Income tax credits(251)(973)(347)(682)
State income tax, net of federal income tax impacts(6)(26)(10)(23)
Effects of ratemaking(4)(11)(6)(9)
Other, net(2)— (1)2 
Effective income tax rate(242)%(989)%(343)%(691)%
Income tax credits relate primarily to production tax credits ("PTC") from MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Energy recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of other income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the six-month periods ended June 30, 2023 and 2022, totaled $375 million and $388 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Energy's provision for income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Energy received net cash payments for income tax from BHE totaling $520 million and $541 million for the six-month periods ended June 30, 2023 and 2022, respectively.
MidAmerican Funding, LLC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
Income tax credits(266)(1,150)(335)(793)
State income tax, net of federal income tax impacts(8)(38)(10)(29)
Effects of ratemaking(5)(12)(5)(10)
Other, net— 4 (1)3 
Effective income tax rate(258)%(1,175)%(330)%(808)%

Income tax credits relate primarily to production tax credits ("PTC") from MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Funding recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of other income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the six-month periods ended June 30, 2023 and 2022, totaled $375 million and $388 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Funding's and MidAmerican Energy's provisions for income tax have been computed on a stand-alone basis, and substantially all of their currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Funding received net cash payments for income tax from BHE totaling $522 million and $544 million for the six-month periods ended June 30, 2023 and 2022, respectively.
NPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
 2023202220232022
 
Federal statutory income tax rate21 %21 %21 %21 %
Effects of ratemaking(11)(10)(10)(10)
Other— 1 (1)1 
Effective income tax rate10 %12 %10 %12 %

Effects of ratemaking is primarily attributable to the recognition of excess deferred income taxes related to 2017 tax reform pursuant to an order issued by the PUCN effective January 1, 2021.
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Nevada Power's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For the six-month period ended June 30, 2023, Nevada Power made no cash payments for federal income tax to BHE. For the six-month period ended June 30, 2022, Nevada Power received net cash payments for federal income tax from BHE totaling $21 million.
SPPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
Effects of ratemaking(9)(8)(9)(7)
Other1 — 1 1 
Effective income tax rate13 %13 %13 %15 %

Effects of ratemaking is primarily attributable to the recognition of excess deferred income taxes related to 2017 tax reform pursuant to an order issued by the PUCN effective January 1, 2020.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Sierra Pacific's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For the six-month periods ended June 30, 2023 and 2022, Sierra Pacific made no cash payments for federal income tax to BHE.
EEGH  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
State income tax, net of federal income tax benefit2 3 2 4 
Equity interest1 1 1 1 
Effects of ratemaking— — — (2)
Noncontrolling interest(11)(10)(10)(10)
Other, net(1)— — — 
Effective income tax rate12 %15 %14 %14 %

For the period ended June 30, 2023, Eastern Energy Gas' reconciliation of the federal statutory income tax rate to the effective income tax rate is driven primarily by an absence of tax on income attributable to Cove Point's 75% noncontrolling interest.
EGTS  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month PeriodsSix-Month Periods
Ended June 30,Ended June 30,
2023202220232022
Federal statutory income tax rate21 %21 %21 %21 %
State income tax, net of federal income tax benefit5 7 5 6 
Allowance for funds used during construction-equity(1)— — — 
Other, net— — (1)— 
Effective income tax rate25 %28 %25 %27 %