A Berkshire Hathaway Company
2017 EEI Financial Conference
November 2017
Patrick J. Goodman
Executive Vice President and Chief Financial Officer
Forward-Looking Statements
2
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 income tax
reform, initiatives regarding deregulation and restructuring of the utility industry, and reliability and safety standards, affecting the respective
Registrant's 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 regulatory rate reviews and other proceedings conducted by regulatory agencies or other governmental and legal bodies and the
respective Registrant's 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 private generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply
or the respective Registrant's ability to obtain long-term contracts with customers and suppliers;
– performance, availability and ongoing operation of the respective Registrant's 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;
– 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, embargoes, cyber security attacks, data security breaches, disruptions or other malicious acts;
– a high degree of variance between actual and forecasted load or generation that could impact a 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 respective Registrant's 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 respective Registrant's credit ratings;
– risks relating to nuclear generation, including unique operational, closure and decommissioning risks;
Forward-Looking Statements
3
– 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;
– 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; 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.
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
• Continue to invest in our employees and
operations, maintenance and capital
programs for property, plant and equipment
• Position our regulated businesses to meet
changing customer expectations and reduce
loss of customers (bypass risk) by providing
excellent service and competitive rates
• Participate in energy policy development,
resulting in the transformation of our
businesses and assets
• Advance grid resilience, cybersecurity and
physical security programs
Invest in internal growth
• Pursue the development of a value-enhancing
energy grid and gas pipeline infrastructure
• Create customer solutions through innovative
rate design and redesign
• Grow our portfolio of renewable energy
• Develop strong grid systems, including
cybersecurity and physical resilience programs
Acquire companies
• Additive to business model
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
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, and AltaLink L.P. are senior secured ratings
2016 Berkshire Hathaway Inc. ($ billions)
Revenue $ 223.6
Net Income $ 24.1
Equity $ 283.0
2016 Berkshire Hathaway Energy ($ billions)
Revenue $ 17.4
Net Income $ 2.5
Equity $ 24.3
Significant Scale
6
(1) As reported by S&P Capital IQ
DISTRIBUTION
Our integrated utilities serve approximately 4.8 million customers; Northern Powergrid has
3.9 million end-users, making it the third-largest distribution company in Great Britain
TRANSMISSION
We own significant transmission infrastructure in 15 states and the province of Alberta; with
our assets at PacifiCorp, NV Energy and AltaLink, we are the largest transmission owner in
the Western Interconnection
PIPELINES
BHE Pipeline Group transported approximately 8% of the total natural gas consumed in the
United States during 2016
GENERATION
We own 31,856 MW of generation in operation and under construction, with resource
diversity and a growing renewable generation mix
RENEWABLES
As of September 30, 2017, we had invested $20 billion in solar, wind, geothermal and
biomass generation, and have made commitments to spend an additional $7 billion on wind
generation by 2020
Comparable Companies
($ billions)
Sept. 30, 2017
Market Cap(1)
LTM June 30,
2017
Net Income(1)
June 30, 2017
Retained
Earnings(1)
NextEra Energy, Inc. $68.8 $4.1 $16.9
Duke Energy Corp. $58.7 $2.4 $2.6
Dominion Energy, Inc. $49.4 $2.2 $6.9
Southern Company $49.1 $0.6 $8.5
Exelon Corp. $36.2 $1.8 $11.4
Berkshire Hathaway Energy
As of and for the LTM
September 30, 2017
Retained Earnings: $21.5 billion
Net Income: $2.7 billion
Berkshire Hathaway Energy’s regulated energy businesses serve customers and end-users
across 18 western and Midwestern states in the U.S. and in the U.K. and Canada
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, 2017
As of and for the last 12 months
ended September 30, 2017
Assets $91 billion
Revenues $18.2 billion
Customers(1) 8.7 million
Employees 22,700
Transmission Line 33,500
Miles
Natural Gas Pipeline 16,400
Miles
Power Capacity 31,856 MW(2)
Renewables 36%
Natural Gas 33%
Coal 29%
Nuclear and Other 2%
• Diversified portfolio of regulated assets
– Weather, customer, regulatory, generation, economic and catastrophic risk
diversification
• 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 which 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 $659 million in 2017 year-to-date and
$1.1 billion in 2016
• 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 2016A 2017F 2018F 2019F 2020F 2021F
$
m
il
li
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 $16.0 billion from
2017 – 2019 for growth and maintenance capital expenditures, which primarily consists of
transmission and distribution capital expenditures, new wind generation project expansions, and
repowering of existing wind facilities
Free Cash Flow
2017 –
2021: $20B
2017 –
2021: $9B
10
Revenue and EBITDA Diversification
• Diversified revenue sources reduce regulatory concentrations
• For the last 12 months ended September 30, 2017, 88% of EBITDA was 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, 2017
Energy Revenue(1): $15 Billion
PacifiCorp
31%
NV Energy
17% MidAmerican
Funding
15%
Northern
Powergrid
9%
BHE Pipeline
Group
8%
BHE
Renewables
8%
BHE
Transmission
8%
HomeServices
4%
BHE LTM Sept. 30, 2017
EBITDA(2): $7 Billion
Nevada
20%
Iowa
17%
Utah
15%
Oregon
8%
Wyoming
6%
Illinois
4%
California
4%
Washington
2%
Idaho
2%
FERC
7%
United
Kingdom
6%
Alberta
5%
Other
4%
(1) Excludes HomeServices and equity income, which add further diversification
(2) Refer to the Appendix for the calculation of EBITDA; percentages exclude Corporate/other
Financial Information ($ millions)
11
BHE LTM Sept. 30, 2017
Net Income(1) : $2.7 Billion
PacifiCorp
27%
MidAmerican
Funding
22% NV Energy
13%
Northern
Powergrid
10%
BHE Pipeline
Group
9%
BHE
Transmission
7%
BHE
Renewables
8%
HomeServices
4%
(1) Percentages exclude Corporate/other
LTM Years Ended Nine Months Ended
Net Income Attributable to BHE 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 786$ 764$ 697$
MidAmerican Funding 630 532 442
NV Energy 387 359 379
Northern Powergrid 288 342 422
BHE Pipeline Group 257 249 243
BHE Transmiss on 212 214 186
BHE Renewables 231 179 124
HomeServices 129 127 104
BHE and Other (242) (224) (227)
Net income att ibutable to BHE 2,678$ 2,542$ 2,370$
• Since being acquired by Berkshire Hathaway in March 2000, BHE has realized
significant growth in its assets, equity, net income and cash flows
$6.5
$59.2 $60.8 $62.5
$65.0
$0
$15
$30
$45
$60
$75
2001 2014 2015 2016 Sept.
2017
Billions
$0.1
$2.1
$2.4
$2.5
$2.7
$0.0
$0.6
$1.2
$1.8
$2.4
$3.0
2001 2014 2015 2016 LTM
9/30/17
Billions
$0.8
$5.1
$7.0
$6.1 $6.4
$0.0
$2.0
$4.0
$6.0
$8.0
2001 2014 2015 2016 LTM
9/30/17
Billions
$1.7
$20.4
$22.4
$24.3
$27.5
$0
$6
$12
$18
$24
$30
2001 2014 2015 2016 Sept.
2017
Billions
Net Income Attributable to BHE
BHE Shareholders’ Equity Property, Plant and Equipment (Net)
Cash Flows From Operations
12
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
$100
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM
Sept.
2017
N
et
I
n
c
ome
a
n
d
C
a
s
h
Flo
w
s
From
O
p
e
ra
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o
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s
($
m
il
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)
T
ota
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A
s
s
ets
&
T
ota
l
D
e
b
t
($
bi
ll
io
n
s
)
Total Assets Total Debt Net Income Cash Flows From Operations
Long-Term Perspective
Growing the Business
13
(1) Total Debt excludes Junior Subordinated Debentures and BHE trust preferred securities
12/31/01 – 9/30/17 CAGR
Total Assets 13%
Net Income 20%
Cash Flows From Operations 14%
• We have grown our assets significantly since 2001 while de-risking the business,
reducing total debt(1) / total assets from 58% to 42% and improving our credit ratings
Invest in Renewable Energy
14 (1) Includes owned operating, under construction and in-development facilities
• PacifiCorp and MidAmerican Energy anticipate repowering existing wind facilities which entails the replacement of
significant components of older turbines, which will qualify for production tax credits. Project costs related to the
repowering of existing wind facilities will total approximately $2 billion from 2016 through 2020
• PacifiCorp’s 2017 Integrated Resource Plan (IRP) includes the implementation of wind repowering, new
transmission, and the development of 860 MW of new wind powered facilities at a cost of approximately $3 billion
from 2017 – 2020
• MidAmerican Energy is progressing on the construction of up to 2,000 MW of additional wind-powered generating
facilities, of which 338 MW are anticipated to be completed by year-end 2017, with the remainder in 2018-2019, at a
cost cap of $3.6 billion
• BHE Renewables acquired the 110 MW Alamo 6 and the 50 MW Pearl solar projects in Texas, and is constructing
the community solar gardens in Minnesota, comprised of 28 locations with a capacity of 96 MW, and the Walnut
Ridge 212 MW wind facility in Illinois. Upon completion, the combined projects are anticipated to cost approximately
$1.1 billion
Owned Wind and Solar Generation Capacity (MW)
(1)
Regulated Unregulated
MidAmerican BHE
PacifiCorp Energy NVE Renewables Total
1999-2014 1,030 2,832 - 1,473 5,335
2015 - 581 15 486 1,082
2016 - 594 - 495 1,089
2017-2020 860 2,000 - 445 3,305
Total 1,890 6,007 15 2,899 10,811
Investment (billions) $5 $11 $0 $9 $25
Asset & Generation Diversity
15
(1) Net MW owned in operation and under construction
December 31, 2006
BHE Power Capacity – 16,386 MW (1)
September 30, 2017
BHE Power Capacity – 31,856 MW (1)
Coal
29%
Natural Gas
33%
Nuclear and
other
2%
Wind
26%
Solar
5%
Hydro
4%
Geothermal
1%
Total
Renewables
36%
BHE Asset Profile
82%
8%
10%
Renewables and
Other
Natural Gas
Generation
Coal Generation
Net Property, Plant and Equipment as of December 31, 2016
Berkshire Hathaway Energy is growing its
renewable energy portfolio and continues
to de-risk its balance sheet as it relates to
carbon-based generation assets. We are
leading the way to a sustainable energy
future for our customers
Total
Renewables
16%
Coal
58%
Natural Gas
23%
Nuclear and
other
3%
Wind
5%
Hydro
8%
Geothermal
3%
Low Cost Competitive Rates
16
Highest Average Rates ($/kWh) by State(1): Hawaii – $0.2481; Massachusetts – $0.1744;
Connecticut – $0.1725; New Hampshire – $0.1721; New York – $0.1705
U.S. National Average(1): $0.1074
Company Weighted Average Retail Rate ($/kWh)
Customer Service
Ranking
Pacific Region(1) $0.1441
Pacific Power $0.0952
Mountain Region(1) $0.0952
Rocky Mountain Power $0.0817
Nevada Power $0.0927
Sierra Pacific Power $0.0735
West North Central Region(1) $0.0942
MidAmerican Energy $0.0712
BHE Pipelines Mastio #1 for the 12th consecutive year
BHE
TQS #1
Score: 95.6%
(Top 3 for the 14th
consecutive year)
(1) Source: Edison Electric Institute (Summer 2017)
Relative to Pacific Region:
Pacific Power 34% lower
Relative to Mountain Region:
Rocky Mountain Power 14% lower
Nevada Power 3% lower
Sierra Pacific Power 23% lower
Relative to West North Central Region:
MidAmerican Energy 24% lower
Strong Credit Profile
17
(1) Moody’s / S&P / Fitch / DBRS. Ratings are issuer or senior unsecured ratings unless otherwise noted
(2) Refer to the Appendix for the calculations of key ratios
(3) Ratings are senior secured ratings
Credit ratios continue to be strong and supportive of credit ratings
Undadjusted Credit Metrics
FFO Interest Coverage FFO / Debt Debt / Total Capitalization
Credit Ratings(1) Average
LTM
9/30/17 2016 2015 Average
LTM
9/30/17 2016 2015
LTM
9/30/17 2016 2015
Berkshire Hathaway Energy(2) A3 / A- / BBB+ 4.4x 4.5x 4.3x 4.5x 16.6% 16.3% 16.0% 17.6% 58% 59% 59%
Regulated U.S. Utilities
PacifiCorp(2) (3) A1 / A+ / A+ 5.5x 5.4x 5.7x 5.4x 23.7% 24.0% 24.1% 23.2% 48% 50% 49%
MidAmerican Energy(2) (3) Aa2 / A+ / A+ 7.6x 7.8x 7.8x 7.2x 28.7% 29.2% 30.4% 26.6% 46% 46% 48%
Nevada Power(2) (3) A2 / A+ / A- 5.1x 4.6x 4.6x 6.1x 24.0% 21.0% 21.6% 29.5% 52% 51% 51%
Sierra Pacific Power(2) (3) A2 / A+ / A- 5.7x 5.5x 5.4x 6.1x 21.4% 17.6% 20.7% 25.7% 49% 51% 53%
Regulated Pipelines and Electric Distribution
Northern Natural Gas A2 / A / A 9.6x 8.7x 9.5x 10.4x 42.8% 37.9% 41.8% 48.7% 34% 36% 36%
AltaLink, L.P.(3) – / A / – / A 2.9x 3.0x 3.2x 2.6x 11.0% 11.5% 11.8% 9.6% 62% 62% 62%
Northern Powergrid Holdings Baa1 / A- / A- 5.1x 4.9x 5.1x 5.1x 20.8% 19.7% 21.7% 21.2% 43% 43% 44%
Northern Powergrid (Northeast) A3 / A / A-
Northern Powergrid (Yorkshire) A3 / A / A
2017 – 2019 Projected Capital Expenditures
18
4,867
5,359
5,776
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2017 2018 2019
$
M
ill
io
n
s
Environmental (Operating) Wind Generation (Growth)
Solar Generation (Growth) Electric Transmission (Growth)
Other Growth Electric and Gas Distribution and Other Operating
4,867
5,359
5,776
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2017 2018 2019
$
M
ill
io
n
s
PacifiCorp MidAmerican Funding NV Energy
Northern Powergrid BHE Pipeline Group BHE Renewables
BHE Transmission HomeServices and Other
Capital Expenditures
by Type
($ millions)
2017-2019
Electric and Gas Distribution
and Other Operating
$ 7,307
Wind Generation (Growth) 5,658
Other Growth 1,844
Electric Transmission
(Growth)
802
Environmental (Operating) 238
Solar Generation (Growth) 153
Total $ 16,002
Capital Expenditures
by Business
($ millions)
2017-2019
PacifiCorp $ 4,227
MidAmerican Energy 5,780
NV Energy 1,455
Northern Powergrid 1,837
BHE Pipeline Group 968
BHE Renewables 778
BHE Transmission 808
HomeServices and Other 149
Total $ 16,002
(1) Net MW owned in operation as of September 30, 2017
(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
• 5,400 employees
• 1.9 million electric customers in six
western states
• 10,894 MW of owned capacity(1)
• Owned capacity by fuel type:
9/30/17 3/31/06
– Coal 54% 72%
– Natural gas 25% 13%
– Hydro(2) 11% 14%
– Wind, geothermal and other(2) 10% 1%
PacifiCorp
19
PacifiCorp – Business Update
20
• Actual retail load for the nine-months ended September 30, 2017, was 41,774 gigawatt-hours, a
2.4% increase versus the same time period for 2016 due to favorable weather, increased
commercial and industrial customer usage, and an increase in average number of residential and
commercial customers primarily in Utah, partially offset by lower residential customer usage
• Energy Vision 2020
− PacifiCorp’s Energy Vision 2020 program seeks to repower nearly 1,000 MW of existing
company-owned wind facilities, acquire up to 1,270 MW of new wind projects and build a
new 140-mile Gateway West transmission segment. On September 27, 2017, PacifiCorp
issued a request for proposal seeking up to 1,270 MW of new wind. Regulatory review is
currently underway in Idaho, Utah and Wyoming, with regulatory review after the projects go
into service expected in California, Oregon and Washington
• Strong cost containment has minimized need for customer rate increases while continuing to
improve safety, reliability and customer service
− PacifiCorp has stay-out pledges in Utah, Oregon and Wyoming, with no rate cases until
2021
• Multi-year rate plans are in effect in several states and energy cost adjustment mechanisms exist
in all six states PacifiCorp has operations
− Washington regulators authorized a two-step rate increase, with $5.7 million (1.7%) effective
October 2016 and $8.0 million (2.3%) effective September 2017; it also approved a revenue
decoupling mechanism and accelerated depreciation schedule for Jim Bridger and Colstrip
plants
Utah Private Generation (PG) Update
21
• In November 2016, PacifiCorp filed applications in Utah to address cost shifting due to private
generation
• A settlement was reached with parties and was approved by the UPSC September 29, 2017,
ending the existing private generation program on November 15, 2017, and transitioning to a new
program with a separate compensation rate for exported power
• Existing private generation customers (pre-November 15) will be grandfathered and continue to
receive the full retail rate (about 10.60 ¢/kWh for residential customers) on that program until
January 1, 2036
• A transition program for new customers will commence at the conclusion of the private generation
program, for a limited number of customers, with a fixed export rate until January 1, 2033
− New residential PG customers who install private generation by year-end 2019 will receive a
credit of 9.2 ¢/kWh through 2032. Total new residential customers eligible for the credit rate
will be capped at 170 MW
− New PG rates for commercial customers will be 92.5% of average commercial energy rates
through 2032. Commercial customer participation is capped at 70 MW
− The program values imports (rates paid to the utility) and exports (rates paid by the utility for
excess power sent to the grid) on a 15-minute basis
• A new program for PG customers who install private generation after 2019 is expected to be
designed to determine the export credit for new customers
PacifiCorp – Business Update
22
• Utah Sustainable Transportation and Energy Plan (“STEP”)
− PacifiCorp’s application to implement the legislatively mandated STEP was approved by Utah regulators
in three phases
− The orders approved a five-year pilot program (2017 – 2022) 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
− Demand Side Management costs are now deferred in a regulatory asset and amortized over 10 years
− 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
is not fully in the base rates
• Oregon Clean Electricity and Coal Transition Plan signed into law by Gov. Brown in March 2016
− Doubled 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
− Allows Production Tax Credits to be annually adjusted as part of Net Power Cost adjustment
MidAmerican Energy
23
• Headquartered in Des Moines, Iowa
• 3,300 employees
• 1.5 million electric and natural gas customers
in four Midwestern states
• 10,606 MW(1) of owned capacity
• Owned capacity by fuel type:
9/30/17(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, 2017
(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 XI sites TBD
MidAmerican Energy – Business Update
24
• 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 18,355 gigawatt-hours for the nine-
months ended September 30, 2017, a 1.5% increase over the same period for 2016
• Wind X Project – Completed construction in November 2016 of the 551 MW wind-powered generation
project in Iowa within the $888 million cost cap established by the Iowa Utilities Board (IUB)
• Wind XI Project – The IUB approved rate-making principles related to the construction of up to 2,000 MW of
additional wind-powered generating facilities with a cost cap of $3.6 billion. MidAmerican Energy anticipates
338 MW to be placed in service in the fourth quarter of 2017, with the remaining facilities in service in 2018
and 2019
• Constructing transmission lines in Iowa and Illinois that are placed in-service from 2016-2018, with an
estimated cost of $555 million, of which $492 million has been spent through September 30, 2017; projects
have been designated as Multi-Value Projects by the MISO
• The IUB approved tariff modifications associated with the repowering of up to 706 General Electric wind
turbines totaling 1,059 MW from the earliest vintage projects developed by MidAmerican Energy. The
repowering effort upgrades various components of the turbines, improving capacity factors, and re-establishes
production tax credits for another ten-year period at 100% of the allowed rate. MidAmerican Energy
anticipates the completion of repowering of 273 turbines by the end of 2017 and the remainder in 2018 and
2019
• 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 both a Most Trusted Brand and an Environmental Champion in
the Cogent Reports 2017 Utility Trusted Brand & Customer Engagement Study: Residential; and by being
named a Most Trusted Business Partner in the Cogent Reports 2017 Utility Trusted Brand & Customer
Engagement Study: Commercial
NV Energy Overview
25
• Headquartered in Las Vegas, Nevada, with territory
throughout Nevada
• 2,400 employees
• 1.27 million electric and 164,000 gas customers
• Service to 90% of Nevada population, along with
tourist population in excess of 45 million
• 6,011 MW of owned power generation
(91% natural gas, 9% coal/renewable/other)
• Provides electric services to
Las Vegas and surrounding
areas
• 922,000 electric customers
• 4,639 MW of owned power
generation capacity(1)
• Provides electric and gas
services to Reno and northern
Nevada
• 343,000 electric customers and
164,000 gas customers
• 1,372 MW of owned power
generation capacity(1)
Nevada Power Company Sierra Pacific Power Company
(1) Net MW owned in operation and under construction as of September 30, 2017
NV Energy – Business Update
26
• April 2017: NV Energy purchased Southern Nevada Water Authority’s 25% ownership in Silverhawk
Generating Station, a 520 MW gas plant. NV Energy now owns 100% of the facility
• The Nevada Legislature passed Assembly Bill 405 in June 2017 and the Public Utilities Commission
of Nevada (PUCN) approved the order in September 2017, which revised private generation in
Nevada to include:
− Grandfathered Private Generation Customers – Generation is netted against monthly usage
and excess generation is captured in a kWh credit mechanism and carried over month to month
− New Private Generation Customers – Generation is netted monthly of received and delivered
energy. Excess energy is credited at the following rates (excluding public program costs) and any
unused balance is carried over month to month:
o 1st 80 MW – 95% of retail rate (10.5 ¢/kWh and 8.1 ¢/kWh for residential customers at
Nevada Power and Sierra Pacific, based on 7/1/2017 effective rates)
o 2nd 80 MW – 88% of retail rate
o 3rd 80 MW – 81% of retail rate
o Excess of previous 240 MW – 75% of retail rate
− Rates will be effective December 1, 2017
• June 2017: Nevada Power Company rate review filing with a goal of not increasing customer rates.
Hearings are in progress and scheduled to be completed by mid-December 2017; settlement
negotiations underway
• September 2017: Stipulation favorably resolving Nevada Power Company electric and Sierra Pacific
Power Company electric and natural gas deferred energy accounting adjustment proceedings
approved by Public Utilities Commission of Nevada for all components of stipulation
Nevada Energy Choice Update
27
Considerations
Debt
Maturities
• Legislature could enact Energy Choice anytime during the 2018 – 2023 period
• Recent deleveraging strengthened both utilities’ equity ratios and financing flexibility
• Bondable property exceeds outstanding debt, and is expected (excluding generation) to be sufficient to support
transmission and distribution leverage, minimizing risk that debt is called because of insufficient property basis
• 2018-2019 debt maturities may be refinanced with shorter tenures to maximize recapitalization options and ‘call’
flexibility and minimize potential make whole premiums, if necessary
Adequate
Liquidity
• $650 million revolver capacity available
• $125 million of issuance capacity under tax exempts
• Effective SEC shelf registrations at NPC, $1.8 billion
• Strong cash generation
2022 2021 2020 2019 2018 2017 2016 2023
NPC GRC Filing SPPC GRC Filing
Voter Approval
NPC GRC Filing SPPC GRC Filing
Committee on Energy
Choice
Nevada Vote (Energy Choice
& Governor election)
Energy Choice
Report to Governor
Legislature’s Deadline To Adopt
Energy Choice Legislation
Legislative Session Legislative Session Legislative Session Legislative
Session
NPC GRC Filing
Recent Events:
• September 2017: Governor’s Committee on Energy Choice (GCEC) passed motion to petition PUCN to open investigatory
docket developing timeline, identifying programs and statues requiring revision, and analyzing wholesale and retail market
structures for Energy Choice Initiative (ECI) implementation
• October 2017: PUCN opens Docket No. 17-10001, an investigation into issues (including all costs and benefits) related to
ECI and possible restructuring of Nevada’s energy market; final report to GCEC by April 2018
• NV Energy will participate in the PUCN workshops and hearings starting in January 2018 and has a seat on GCEC
PUCN Docket 17-10001
Report due to GCEC
Leeds
Edinburgh
Middlesbrough
Newcastle Upon Tyne
Sheffield
York
Northeast
Yorkshire
• 3.9 million end-users in northern England
• Approximately 61,000 miles of distribution lines
• Approximately 63% of 2017 distribution revenue from
residential and commercial customers through
September 30, 2017
• Distribution revenue (£ millions):
• Strong first quarter of the ED1 period (eight-year
price control started April 2015) with total expenditure
for the period to date at 95.1% of allowances. The
company is well positioned in respect of the long-
term commitments made to customers
• Smart meter rental business has been a success
from its initial launch in April 2014 with the company
securing 10 contracts from large suppliers to deploy
3.5 million meters before the end of 2019, resulting in
total capital deployed to over £500 million. In 2017
closed a £200 million secured, non-recourse,
financing facility for the business
Nine Months Ended
9/30/17 9/30/16
Residential 228 243
Commercial 70 81
Industrial 171 154
Other 5 5
Total 474 482
Northern Powergrid
28
Northern Natural Gas
29
• 14,700 miles of natural gas pipeline
• 5.8 Bcf per day of market area design
capacity;
1.7 Bcf per day field area capacity
• More than 79 Bcf firm service and
operational storage cycle capacity
• 90% of transportation and storage revenue
through September 30, 2017, is based on
demand charges
− Market area transportation contracts
have a weighted average contract term
of 5 years
− Storage contracts have a weighted
average contract term of 7 years
• Increased the integrity and reliability of the
pipeline
• Ranked No. 1 among 16 mega-pipelines and
No. 1 among 36 interstate pipelines in 2017
Mastio & Company customer satisfaction
survey
MINNESOTA
WISCONSIN
IOWA
SOUTH DAKOTA
NEBRASKA
KANSAS
OKLAHOMA
TEXAS
• 1,700-mile interstate natural gas
transmission pipeline system
• Design capacity of 2.2 million Dth
per day of natural gas
• 93% of revenue through
September 30, 2017, is based on
demand charges
− Contracted capacity has a
weighted average contract term
of 11 years
• Kern River delivered nearly 26%(1)
of California’s natural gas demand
in 2016
• Ranked No. 2 among 36 interstate
pipelines in 2017 Mastio &
Company customer satisfaction
survey
Kern River
30
CALIFORNIA
NEVADA
ARIZONA
UTAH
WYOMING
(1) 2017 California Gas Report
AltaLink, L.P.
31
• AltaLink is an owner and operator of
regulated electricity transmission
facilities in the Province of Alberta
– Supplies electricity to approximately 85%
of Alberta’s population
• AltaLink owns approximately 8,150 miles
of transmission lines and 309
substations within the Province of
Alberta
– No volume or commodity exposure
– Supportive regulatory environment
– Revenue from AA- rated Alberta Electric
System Operator (AESO)
• Mid-year 2017 forecast rate base of
C$7.4 billion and CWIP of C$148 million
AltaLink Regulatory Update
32
2015-2016 General Tariff Application (GTA)
− Tariff relief of C$600 million (2015-2018) approved
2014+ Direct Assign Capital Deferral Account (DACDA)
− The 2014+ DACDA application, which was filed on April 5, 2017, seeks approval for C$2.0
billion of capital projects, C$0.9 billion of which relates to 2014 and C$1.1 billion to 2015
− AltaLink is also seeking to recover approximately C$48 million of cancelled project expenses
2018-2020 Generic Cost of Capital Decision (GCOC)
− ROE for 2017 is set at 8.50% (8.30% for 2016)
− Equity thickness of 37% for 2017 and 2016
− First evidence for the 2018-2020 GCOC process was filed October 31, 2017, with a hearing
scheduled for Q1 2018
2017-2018 GTA
− Traditionally AUC did not allow GTA negotiated settlement
− Successfully reached a negotiated settlement in principle on January 27, 2017
− Filing of the negotiated settlement took place on February 8, 2017, which included
C$58 million of additional savings for customers and C$130.3 million related to a depreciation
surplus refund
− Final Decision was received on August 30, 2017, with the regulator approving additional
customer tariff relief of C$50 million, which includes a depreciation surplus refund of
C$31.4 million
BHE Renewables
33
(1) Based on net owned capacity of 4,345 MW in operation and under construction as of September 30, 2017
(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 PPAs exist with Missouri Joint Municipal Electric Commission (20 MW), Kansas Power Pool (25 MW), City of Independence, Missouri (20 MW) and Kansas Municipal Energy Agency (7 MW)
(4) The majority of the Imperial Valley Projects' Contract Capacity is currently sold to Southern California Edison Company under long-term power purchase agreements expiring through 2026. Certain long-term
power purchase agreement renewals have been entered into with other parties that begin upon the existing contracts' expiration and expire in 2039
BHE Solar
Geothermal
Natural Gas
BHE Wind
BHE Hydro
CalEnergy Philippines
Solar
35%
Wind
32%
Geothermal
8%
Hydro
3%
Natural Gas
22%
Portfolio Composition (1)
2017-2019
22%
2020-2029
11%
2030+
67%
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 Generation Mix
Alamo 6 TX 2017 2042 CPS 110 110
Community Solar Gardens MN 2016-2017 (2) (2) 96 96
Pearl TX 2017 2042 CPS 50 50
1,682 1,534
WIND
Grande Prairie NE 2016 2037 OPPD 400 400
Pinyon Pines I & II CA 2012 2035 SCE 300 300
Jumbo Road TX 2015 2033 AE 300 300
Walnut Ridge IL 2018 2028 USGSA 212 212
Bishop Hill II IL 2012 2032 Ameren 81 81
Marshall Wind KS 2016 2036 (3) 72 72
1,365 1,365
GEOTHERMAL
Imperial Valley CA 1982-2000 (4) (4) 338 338
HYDROELECTRIC
Casecnan Phil. 2001 2021 NIA 150 128
Wailuku HI 1993 2023 HELCO 10 10
160 138
NATURAL GAS
Cordova IL 2001 2019 EGC 512 512
Power Resources TX 1988 2018 EDF 212 212
Saranac NY 1994 2019 TEMUS 245 196
Yuma AZ 1994 2024 SDG&E 50 50
1,019 970
Total Owned and Under Construction 4,564 4,345
BHE Renewables Update
34
Solar
• Community Solar Gardens
– 64 MW community solar gardens project acquired in January 2016, 28 MW achieved
commercial operation by October 2017, and is 100% subscribed
– 32 MW community solar gardens project acquired in 2015, started commercial
operation as of February 1, 2017, and is 100% subscribed
• Alamo 6
– 110 MW project acquired in January 2017, with commercial operation achieved in
March 2017
• Pearl
– 50 MW project acquired in August 2017, with commercial operation achieved in October
2017
Wind
• Walnut Ridge
– 212 MW project currently under construction, commercial operation expected by the
end of 2018
• Tax Equity
– BHE has entered into renewable tax equity investments of approximately $1.4 billion of
which approximately $1.1 billion has been funded to date, and $0.3 billion has been
committed through 2018
Near-Term Financing Plan
35
• Berkshire Hathaway Energy
– Approximately $700 million parent senior debt financing in late 2017 or first quarter 2018
• PacifiCorp
– Approximately $700 million debt financing in mid-2018
• MidAmerican Energy
– Approximately $900 million debt financing in the first half 2018
– Approximately $70 million tax-exempt debt financing in late 2017 and an additional $80
million in late 2018
• Nevada Power Company
– Approximately $800 million debt financing in the first half 2018
• Northern Powergrid
– Approximately £150 million debt financing in the second half 2018 at Northern
Powergrid Yorkshire
• Northern Natural Gas
– Approximately $500 million debt financing in mid-2018
Appendix
36
• Berkshire Hathaway Energy’s incident rate has declined from 1.91 in 2006 to 0.74
YTD September 30, 2017 – a 61% improvement
– We are committed to ensuring a safe working environment across the
organization, with many of our businesses having operated at incident rates
below 1.0 for many years
– The industry top decile incident rate in 2017 is 1.71 – more than 2.3x higher than
our 2017 YTD incident rate
Improve Safety Culture and Work Environment
37
Berkshire Hathaway Energy Businesses with Incident Rate ≤ 1.0
CalEnergy Philippines 22 years
Northern Powergrid 14 years
Northern Natural Gas 8 years
BHE U.S. Transmission 5 years
Kern River 5 years
AltaLink 4 years
MidAmerican Energy 4 years
Pacific Power 3 years
38
Mid-Year Average Rate Base
$13.7 $14.0 $14.0 $13.8
$0.0
$4.0
$8.0
$12.0
$16.0
2014A 2015A 2016A 2017F
Billions
$7.0 $6.8 $6.8 $6.8
$0.0
$2.0
$4.0
$6.0
$8.0
2014A 2015A 2016A 2017F
Billions
$6.7
$7.5
$8.3
$9.0
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
2014A 2015A 2016A 2017F
Billions
NV Energy
MidAmerican Energy PacifiCorp
BHE Pipeline Group
$3.0 $3.0 $3.0 $3.0
$0.0
$1.0
$2.0
$3.0
$4.0
2014A 2015A 2016A 2017F
Billions
39
Mid-Year Average Rate Base
£2.6 £2.7
£2.9 £3.0
£0.0
£1.0
£2.0
£3.0
£4.0
2014A 2015A 2016A 2017F
Billions
$3.5
$5.3
$7.0
$7.4
$0.0
$2.0
$4.0
$6.0
$8.0
2014A 2015A 2016A 2017F
AltaLink, L.P. Northern Powergrid
(1) 2015 includes the addition of AltaLink, L.P., which was acquired on December 1, 2014
(2) Northern Powergrid rate base converted into USD at the June 30 USD/GBP FX rate each year including 1.7106 (2014), 1.5712 (2015), 1.3311 (2016), and
1.3000 (2017 estimate)
(3) AltaLink, L.P. rate base converted into USD at the June 30 CAD/USD FX rate each year including 1.2494 (2015), 1.2924 (2016) and 1.2500 (2017 estimate)
Berkshire Hathaway Energy
$34.9
$39.8 $41.2
$42.5
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2014A 2015A 2016A 2017F
PAC MEC Northern Powergrid BHE Pipeline Group NVE AltaLink, L.P.
(1)
(2) (3)
Billions
C$ Billions
Deliver Reliable and Affordable Energy
Energy Imbalance Market
40
Benefits November 2014 – September 2017
Balancing Area Authority Total ($ millions)
CAISO $74.7
PacifiCorp $107.0
NV Energy $34.2
Arizona Public Service $30.5
Puget Sound Energy $8.6
Total $255.0
• The energy imbalance market is now in its
third year with cumulative benefits totaling
$255 million through September 2017.
PacifiCorp’s customers have benefited by
$107 million since November 2014, and NV
Energy, which joined a year later, has
realized benefits of $34 million
Private Generation (PG) Penetration Rate
41
PG Customers as
of September 2017
Total Electric
Customers as of
September 2017
PG Portion of
Total Customers
MidAmerican Energy Company
Iowa 511 681,869 0.07%
Illinois 22 85,197 0.03%
South Dakota 0 4,982 0.00%
PacifiCorp
Utah 25,012 893,458 2.80%
Oregon 5,821 581,268 1.00%
Wyoming 261 140,597 0.19%
Washington 761 130,532 0.58%
Idaho 287 77,984 0.37%
California 356 45,075 0.79%
NV Energy
Nevada 25,949 1,265,307 2.05%
Total BHE Customers 58,980 3,906,269 1.51%
Berkshire Hathaway Energy – Impact of Private Generation
Consolidated Environmental Position
42
• We have significantly reduced our carbon footprint
– Since 2000, we have added approximately 10 GW of wind and solar powered assets to our
generation capacity portfolio as of September 30, 2017
– Owned coal-fueled capacity has declined as a percentage of BHE’s generation capacity
portfolio from 51% in 2000 to 29% as of September 30, 2017
• Coal Combustion Residuals – managing under current regulatory requirements; however,
EPA is reconsidering portions of the final rule
– PacifiCorp has 6 active surface impoundments and 4 landfills; 3 inactive surface impoundments
are undergoing closure
– MidAmerican Energy currently operates 4 active surface impoundments and 4 active landfills. In
addition, MidAmerican Energy has 6 inactive surface impoundments; 2 have been closed, 3
more will complete closure by December 2017, and 1 is continuing closure activities
– 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
– EPA issued a final rule September 18, 2017, extending certain compliance dates for flue gas
desulfurization wastewater and bottom ash transport water limits from November 2018 to
November 2020
• Through fuel switching and retirements, BHE’s utilities expect to eliminate 2,645 MW of coal
generation through 2025
Reducing Carbon Footprint
43
Coal MW as of Dec. 31, 2013(1) 10,536 MW
Riverside 3 – retired in 2014 (4) MW
Reid Gardner 1-3 – retired in 2014 (300) MW
Carbon 1 and 2 – retired 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 – retired in 2017 (257) MW
Naughton 3 – natural gas conversion or retire (280) MW
Navajo – interest to be divested in 2019 (255) MW
Cholla 4 – natural gas conversion or retire (395) MW
Craig 1 – natural gas conversion or retire (83) MW
North Valmy – to be retired in 2025 (261) MW
Coal MW as of Dec. 31, 2025 7,891 MW
(1) Adjusted for re-rating of coal plants between December 31, 2013 and September 30, 2017, including plants still in operation and retired
PacifiCorp Environmental Position
44
• Power capacity (MW) increase primarily attributed to:
– 1,654 MW Natural Gas - Lake Side 1 & 2 and
Chehalis
– 998 MW Wind - 594 MW Eastside and 404 MW
Westside
– (172) MW Coal - retired Carbon plant
• Projected environmental capital spend(1)
– $65 million from 2017-2019
Asset Profile
69%
9%
22%
Renewables and
Other
Natural Gas
Generation
Coal Generation
Net Property, Plant and Equipment as of December 31, 2016
Coal
54%
Gas
25%
Hydro
11%
Wind and
Other
10%
Coal
72%
Gas
13%
Hydro and
Other
15%
March 31, 2006
Power Capacity – 8,470 MW (2)
September 30, 2017
Power Capacity – 10,894 MW (2)
(1) Environmental expenditures forecast includes PacifiCorp’s share of minority-owned Craig, Cholla, Colstrip and Hayden plants. Amounts include debt AFUDC and
escalation but exclude non-cash equity AFUDC
(2) Net MW owned in operation and under construction
• Effective with the retirement of Neal Units 1
and 2 in April 2016, MidAmerican Energy
has 2,718 MW(1) of coal-fueled generation
capacity remaining
• Projected environmental capital spend(2)
– $270 million from 2017-2019
MidAmerican Energy Environmental Position
45
(1) Net owned capacity as of September 30, 2017
(2) Environmental capital expenditures forecast excludes equity AFUDC
(3) Net MW owned in operation and under construction
Asset Profile
84%
2%
14%
Renewables
and Other
Natural Gas
Generation
Coal
Generation
Net Property, Plant and Equipment as of December 31, 2016
December 31, 2000
Power Capacity – 4,086 MW (3)
September 30, 2017
Power Capacity – 10,606 MW (3)
Coal
26%
Natural Gas
13%
Nuclear and
other
4%
Wind
57%
Coal
70%
Natural
Gas
19%
Nuclear
and Other
11%
NV Energy Environmental Position
46
• NV Energy is reducing use of coal-fueled
generation to zero
– 2017 retirement of Reid Gardner Unit 4 (257 MW)
– 2019 elimination of Navajo interest (255 MW)
– 2025 retirement of North Valmy (261 MW)
• Forecast(1) environmental expenditures include
$4 million in 2017, $11 million in 2018 and $7
million in 2019
Nevada Power Asset Profile
64%
33%
3%
Renewables and Other Natural Gas Generation
Coal Generation
Net Property, Plant and Equipment as of December 31, 2016
Sierra Pacific Power Asset Profile
74%
19%
7%
Renewables and Other Natural Gas Generation
Coal Generation
Net Property, Plant and Equipment as of December 31, 2016
Coal and
Other
9%
Natural Gas
91%
September 30, 2017
Power Capacity – 6,011 MW (2)
(1) Environmental capital expenditures forecast excludes equity AFUDC
(2) Net MW owned in operation and under construction
Retail Electric Sales – Weather Normalized
47
Year-to-Date
September 30 Variance
(GWh) 2017 2016 Actual Percent Exact Amount
PacifiCorp
Residential 11,836 11,910 (74) -0.6%
Commercial 13,058 12,502 556 4.4%
Industrial and Other 16,041 16,229 (188) -1.2%
Total 40,935 40,641 294 0.7%
MidAmerican Energy
Residential 4,764 4,832 (68) -1.4%
Commercial 2,826 2,815 11 0.4%
Industrial and Other 10,806 10,212 594 5.8%
Total 18,396 17,859 537 3.0%
Nevada Power
Residential 7,565 7,639 (74) -1.0%
Commercial 3,606 3,572 34 1.0%
Industrial and Other 4,960 5,901 (941) -15.9%
Distribution Only Service 1,334 304 1,030 NM
Total 17,465 17,416 49 0.3%
Sierra Pacific Power
Residential 1,782 1,821 (39) -2.1%
Commercial 2,256 2,241 15 0.7%
Industrial and Other 2,344 2,244 100 4.5%
Distribution Only Service 1,040 1,018 22 2.2%
Total 7,422 7,324 98 1.3%
Northern Powergrid
Residential 9,112 9,292 (180) -1.9%
Commercial 3,270 4,056 (786) -19.4%
Industrial and Other 13,619 13,250 369 2.8%
Total 26,001 26,598 (597) -2.2%
Retail Electric Sales – Actual
48
Year-to-Date
September 30 Variance
(GWh) 2017 2016 Actual Percent Exact Amount
PacifiCorp
Residential 12,410 11,909 501 4.2%
Commercial 13,303 12,863 440 3.4%
Industrial and Other 16,061 16,004 57 0.4%
Total 41,774 40,776 998 2.4%
MidAmerican Energy
Residential 4,753 5,018 (265) -5.3%
Commercial 2,796 2,859 (63) -2.2%
Industrial and Other 10,806 10,212 594 5.8%
Total 18,355 18,089 266 1.5%
Nevada Power
Residential 7,899 7,802 97 1.2%
Commercial 3,669 3,600 69 1.9%
Industrial and Other 5,024 5,927 (903) -15.2%
Distribution Only Service 1,367 305 1,062 NM
Total 17,959 17,634 325 1.8%
Sierra Pacific Power
Residential 1,904 1,798 106 5.9%
Commercial 2,271 2,241 30 1.3%
Industrial and Other 2,358 2,247 111 4.9%
Distribution Only Service 1,041 1,019 22 2.2%
Total 7,574 7,305 269 3.7%
Northern Powergrid
Residential 9,027 9,207 (180) -2.0%
Commercial 3,247 4,036 (789) -19.5%
Industrial and Other 13,618 13,250 368 2.8%
Total 25,892 26,493 (601) -2.3%
Financial Information
49
($ millions)
LTM Years Ended Nine Months Ended
Operating Revenue 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 5,238$ 5,201$ 5,232$
MidAmerican Funding 2,793 2,631 2,515
NV Energy 2,970 2,895 3,351
Norther Powergrid 932 995 1,140
BHE Pipeline Group 974 978 1,016
BHE Transmission 699 502 592
BHE Renewables 808 743 728
HomeServices 3,151 2,801 2,526
BHE and Other 606 676 780
Total Operating Revenue 18,171$ 17,422$ 17,880$
Financial Information
50
($ millions)
LTM Years Ended Nine Months Ended
Depreciation and Amortization 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 792$ 783$ 780$
MidAmerican Funding 511 479 407
NV Energy 421 421 410
Norther Powergrid 207 200 202
BHE Pipeline Group 161 206 204
BHE Transmission 229 241 185
BHE Renewables 248 230 216
HomeServices 45 31 29
BHE and Other (2) - (5)
Total Depreciation and Amortization 2,612$ 2,591$ 2,428$
Financial Information
51
($ millions)
LTM Years Ended Nine Months Ended
Operating Income 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 1,469$ 1,427$ 1,344$
MidAmerican Funding 573 566 451
NV Energy 796 770 812
Norther Powergrid 429 494 593
BHE Pipeline Group 463 455 464
BHE Transmission 293 92 260
BHE Renewables 279 256 255
HomeServices 224 212 184
BHE and Other (23) (21) (35)
Total Operating Income 4,503$ 4,251$ 4,328$
Financial Information
52
($ millions)
LTM Years Ended Nine Months Ended
Interest Expense 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 380$ 381$ 383$
MidAmerican Funding 231 218 206
NV Energy 233 250 262
Norther Powergrid 129 136 145
BHE Pipeline Group 44 50 66
BHE Transmission 164 153 146
BHE Renewables 203 198 193
HomeServices 3 2 3
BHE and Other 445 466 500
Total interest expense 1,832$ 1,854$ 1,904$
(1) Excludes amounts for non-cash equity allowances for funds used during construction and other non-cash items
Financial Information
53
($ millions)
LTM Years Ended Nine Months Ended
Capital Expenditures
(1)
9/30/2017 12/31/2016 12/31/2015
PacifiCorp 870$ 903$ 916$
MidAmerican Funding 1,673 1,637 1,448
NV Energy 476 529 571
Norther Powergrid 578 579 674
BHE Pipeline Group 250 226 240
BHE Transmission 335 466 966
BHE Renewables 528 719 1,034
HomeServices 25 20 16
BHE and Other 13 11 10
Total capital expenditures 4,748$ 5,090$ 5,875$
Financial Information
54
($ millions)
Total Assets 9/30/2017 12/31/2016 12/31/2015
PacifiCorp 23,578$ 23,563$ 23,550$
MidAmerican Funding 19,019 17,571 16,315
NV Energy 14,344 14,320 14,656
Northern Powergrid 7,280 6,433 7,317
BHE Pipeline Group 4,958 5,144 4,953
BHE Transmission 9,182 8,378 7,553
BHE Renewables 7,492 7,010 5,892
HomeServices 2,834 1,776 1,705
BHE and Other 2,367 1,245 1,677
Total assets 91,054$ 85,440$ 83,618$
• As of September 30, 2017, approximately 97% of total debt was fixed-rate debt
• As of September 30, 2017, long-term adjusted debt had a weighted average life of
approximately 13 years and a weighted average interest rate of approximately 4.9%
Capitalization
55
($ 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 9/30/2017 12/31/2016
Short-term debt 2,493$ 1,869$
Current portion of long-term debt 3,070 1,006
BHE senior debt 6,771 7,418
Subsidiary debt 26,183 26,748
Total adjusted debt(1) 38,517 37,041
BHE junior subordinated debentures 100 944
Noncontrolling interests 131 136
BHE shareholders' equity 27,473 24,327
Total capitalization 66,221$ 62,448$
Adjusted debt/capitalization 58.2% 59.3%
Non-GAAP Financial Measures
Berkshire Hathaway Energy
56
($ 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) Adjusted Debt to Total Capitalization equals Adjusted Debt divided by Capitalization
LTM
FFO 9/30/2017 2016 2015
Net cash flows from operating activities 6,350$ 6,056$ 6,980$
+/- Changes in other operating assets and liabilities (64) (144) (649)
FFO 6,286$ 5,912$ 6,331$
Adjusted Interest
Interest expense 1,832$ 1,854$ 1,904$
Interest expense on subordinated debt (28) (65) (104)
Adjusted Interest 1,804$ 1,789$ 1,800$
FFO Interest Coverage(1) 4.5x 4.3x 4.5x
Adjusted Debt
Debt(2) 38,617$ 37,985$ 38,946$
Subordinated debt (100) (944) (2,944)
Adjusted Debt 38,517$ 37,041$ 36,002$
FFO to Adjusted Debt 16.3% 16.0% 17.6%
Capitalization
Total BHE shareholders’ equity 27,473$ 24,327$ 22,401$
Adjusted debt 38,517 37,041 36,002
Subordinated debt 100 944 2,944
Noncontrolling interests 131 136 134
Capitalization 66,221$ 62,448$ 61,481$
Adjusted Debt to Total Capitalization(3) 58.2% 59.3% 58.6%
Non-GAAP Financial Measures
PacifiCorp
57
(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 9/30/2017 2016 2015
Net cash flows from operating activities 1,631$ 1,568$ 1,734$
+/- Changes in other operating assets and liabilities 54 203 (74)
FFO 1,685$ 1,771$ 1,660$
Interest expense 380$ 380$ 379$
FFO Interest Coverage(1) 5.4x 5.7x 5.4x
Debt (2) 7,027$ 7,349$ 7,166$
FFO to Debt(3) 24.0% 24.1% 23.2%
Capitalization
PacifiCorp shareholders’ equity 7,507$ 7,390$ 7,503$
Debt 7,027 7,349 7,166
Capitalization 14,534$ 14,739$ 14,669$
Debt to Total Capitalization(4) 48.3% 49.9% 48.9%
Non-GAAP Financial Measures
MidAmerican Energy
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 9/30/2017 2016 2015
Net cash flows from operating activities 1,494$ 1,403$ 1,351$
+/- Changes in other operating assets and liabilities (64) (65) (216)
FFO 1,430$ 1,338$ 1,135$
Interest expense 209$ 196$ 183$
FFO Interest Coverage(1) 7.8x 7.8x 7.2x
Debt (2) 4,894$ 4,400$ 4,271$
FFO to Debt(3) 29.2% 30.4% 26.6%
Capitalization
MidAmerican Energy shareholders’ equity 5,784$ 5,160$ 4,705$
Debt 4,894 4,400 4,271
Capitalization 10,678$ 9,560$ 8,976$
Debt to Total Capitalization(4) 45.8% 46.0% 47.6%
Non-GAAP Financial Measures
Nevada Power Company
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 9/30/2017 2016 2015
Net cash flows from operating activities 642$ 771$ 892$
+/- Changes in other operating assets and liabilities 3 (109) 77
FFO 645$ 662$ 969$
Interest expense 177$ 185$ 190$
FFO Interest Coverage(1) 4.6x 4.6x 6.1x
Debt (2) 3,073$ 3,066$ 3,285$
FFO to Debt(3) 21.0% 21.6% 29.5%
Capitalization
Nevada Power shareholder's equity 2,823$ 2,972$ 3,163$
Debt 3,073 3,066 3,285
Capitalization 5,896$ 6,038$ 6,448$
Debt to Total Capitalization(4) 52.1% 50.8% 50.9%
Non-GAAP Financial Measures
Sierra Pacific 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 9/30/2017 2016 2015
Net cash flows from operating activities 164$ 243$ 342$
+/- Changes in other operating assets and liabilities 39 (4) (33)
FFO 203$ 239$ 309$
Interest expense 45$ 54$ 61$
FFO Interest Coverage(1) 5.5x 5.4x 6.1x
Debt (2) 1,152$ 1,153$ 1,202$
FFO to Debt(3) 17.6% 20.7% 25.7%
Capitalization
Sierra Pacific Power shareholder's equity 1,188$ 1,108$ 1,076$
Debt 1,152 1,153 1,202
Capitalization 2,340$ 2,261$ 2,278$
Debt to Total Capitalization(4) 49.2% 51.0% 52.8%
Non-GAAP Financial Measures
EBITDA
61
($ millions)
BHE Consolidated EBITDA LTM 9-30-2017
Net income attributable to BHE shareholders 2,678
Noncontrolling interests 33
Interest expense 1,832
Capitalized interest (45)
Income tax expense 328
Depreciation and amortization 2,612
EBITDA 7,438
