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Income Taxes (MEC) (MidAmerican Energy Company and Subsidiaries [Member])
 6 Months Ended
Jun. 30, 2011
MidAmerican Energy Company and Subsidiaries [Member]
  
Notes to Consolidated Financial Statements [Line Items]  
Income Tax Disclosure [Text Block]
(7)    Income Taxes


A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows:


 
Three-Month Periods

Ended June 30,
 
Six-Month Periods

Ended June 30,
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
 
 
 
Federal statutory income tax rate
35
 %
 
35
 %
 
35
 %
 
35
 %
Amortization of investment tax credit
(1
)
 
(1
)
 
(1
)
 
(1
)
State income tax, net of federal income tax benefit
6


 
8


 
7


 
7


Renewable electricity production tax credits
(25
)
 
(26
)
 
(28
)
 
(25
)
Income tax method change
—


 
(14
)
 
—


 
(5
)
Effects of ratemaking
(6
)
 
(18
)
 
(5
)
 
(10
)
Other, net
(1
)
 
4


 
(1
)
 
1


Effective income tax rate
8
 %
 
(12
)%
 
7
 %
 
2
 %


MidAmerican Energy's wind-powered generating facilities are eligible for federal renewable electricity production tax credits for 10 years from the date the facilities were placed in service.


In 2010, MidAmerican Energy changed the method by which it determines current income tax deductions for repair costs ("Repairs Deduction") related to certain of its regulated utility assets. The change resulted in current deductibility for those costs, which are capitalized for book purposes. MidAmerican Energy was allowed to retroactively apply the method change and deduct the related prior years' costs on the tax return that includes the year of the change. State utility rate regulation in Iowa requires that the tax effect of certain temporary differences such as these be flowed through immediately to customers. Therefore, amounts that would otherwise have been recognized in income tax expense have been included as changes in regulatory assets. This treatment of such temporary differences impacts income tax expense and effective tax rates from year to year. Accordingly, MidAmerican Energy's earnings for the three- and six-month periods ended June 30, 2010, reflect $7 million of net tax benefits recognized in connection with the Repairs Deduction for tax years prior to 2010 related to MidAmerican Energy's regulated natural gas utility assets. The ongoing impact of the method change and certain other temporary differences is included as an effect of ratemaking.