Property, Plant and Equipment, Net (Notes)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following as of December 31 (in millions):



	Depreciable
	Life	2016			2015
Regulated assets:
Utility generation, transmission and distribution systems	5-80 years	$	71,536		$	69,248
Interstate natural gas pipeline assets	3-80 years	6,942			6,755
		78,478			76,003
Accumulated depreciation and amortization		(23,603		)	(22,682		)
Regulated assets, net		54,875			53,321

Nonregulated assets:
Independent power plants	5-30 years	5,594			4,751
Other assets	3-30 years	1,002			875
		6,596			5,626
Accumulated depreciation and amortization		(1,060		)	(805		)
Nonregulated assets, net		5,536			4,821

Net operating assets		60,411			58,142
Construction work-in-progress		2,098			2,627
Property, plant and equipment, net		$	62,509		$	60,769

Construction work-in-progress includes $1.8 billion and $2.3 billion as of December 31, 2016 and 2015, respectively, related to the construction of regulated assets.

During the fourth quarter of 2016, MidAmerican Energy revised its electric and gas depreciation rates based on the results of a new depreciation study, the most significant impact of which was longer estimated useful lives for certain wind-powered generating facilities. The effect of this change was to reduce depreciation and amortization expense by $3 million in 2016 and $34 million annually based on depreciable plant balances at the time of the change.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Refer to Note 4 of MidAmerican Energy's Notes to Financial Statements. In addition to MidAmerican Energy's property, plant and equipment, net, MidAmerican Funding had nonregulated property gross of $22 million as of December 31, 2016 and 2015, related accumulated depreciation and amortization of $9 million and $8 million as of December 31, 2016 and 2015, respectively, and construction work-in-progress of $1 million as of December 31, 2016, which consisted primarily of a corporate aircraft owned by MHC.

MidAmerican Energy Company [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following as of December 31 (in millions):



	Depreciable Life	2016			2015

Utility plant in service:
Generation	20-70 years	$	11,282		$	10,404
Transmission	52-75 years	1,726			1,305
Electric distribution	20-75 years	3,197			3,059
Gas distribution	28-70 years	1,565			1,507
Utility plant in service		17,770			16,275
Accumulated depreciation and amortization		(5,448		)	(5,229		)
Utility plant in service, net		12,322			11,046
Nonregulated property, net:
Nonregulated property gross	20-50 years	7			15
Accumulated depreciation and amortization		(1		)	(5		)
Nonregulated property, net		6			10
		12,328			11,056
Construction work-in-progress		493			667
Property, plant and equipment, net		$	12,821		$	11,723

Nonregulated property includes land, computer software and other assets not recoverable for regulated utility purposes. Computer software reflected in nonregulated property for 2015 was transferred to a subsidiary of BHE on January 1, 2016.

The average depreciation and amortization rates applied to depreciable utility plant for the years ended December 31 were as follows:



	2016		2015		2014

Electric	2.8	%	3.0	%	2.8	%
Gas	2.9	%	2.9	%	2.8	%

PacifiCorp [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following as of December 31 (in millions):



	Depreciable Life	2016			2015
Property, plant and equipment:
Generation	14 - 67 years	$	12,371		$	12,164
Transmission	58 - 75 years	6,055			5,914
Distribution	20 - 70 years	6,590			6,408
Intangible plant⁽¹⁾	5 - 62 years	884			875
Other	5 - 60 years	1,398			1,396
Property, plant and equipment in-service		27,298			26,757
Accumulated depreciation and amortization		(8,793		)	(8,360		)
Net property, plant and equipment in-service		18,505			18,397
Construction work-in-progress		657			629
Total property, plant and equipment, net		$	19,162		$	19,026


(1)	Computer software costs included in intangible plant are initially assigned a depreciable life of 5 to 10 years.

The average depreciation and amortization rate applied to depreciable property, plant and equipment was 2.9%, 2.9% and 3.0% for the years ended December 31, 2016, 2015 and 2014, respectively.

Unallocated Acquisition Adjustments

PacifiCorp has unallocated acquisition adjustments that represent the excess of costs of the acquired interests in property, plant and equipment purchased from the entity that first devoted the assets to utility service over their net book value in those assets. These unallocated acquisition adjustments included in other property, plant and equipment had an original cost of $156 million and $155 million as of December 31, 2016 and 2015, respectively, and accumulated depreciation of $117 million and $112 million as of December 31, 2016 and 2015, respectively.

Nevada Power Company [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following as of December 31 (in millions):



	Depreciable Life	2016			2015
Utility plant:
Generation	30 - 55 years	$	4,271		$	4,212
Distribution	20 - 65 years	3,231			3,118
Transmission	45 - 65 years	1,846			1,788
General and intangible plant	5 - 65 years	738			694
Utility plant		10,086			9,812
Accumulated depreciation and amortization		(3,205		)	(2,971		)
Utility plant, net		6,881			6,841
Other non-regulated, net of accumulated depreciation and amortization	45 years	2			2
Plant, net		6,883			6,843
Construction work-in-progress		114			153
Property, plant and equipment, net		$	6,997		$	6,996

Almost all of Nevada Power's plant is subject to the ratemaking jurisdiction of the PUCN and the FERC. Nevada Power's depreciation and amortization expense, as authorized by the PUCN, stated as a percentage of the depreciable property balances as of December 31, 2016, 2015 and 2014 was 3.2%, 3.0% and 3.3%, respectively. Nevada Power is required to file a utility plant depreciation study every six years as a companion filing with the triennial general rate case filings.

Construction work-in-progress is related to the construction of regulated assets.

Sierra Pacific Power Company [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Net [Text Block]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following as of December 31 (in millions):



	Depreciable Life	2016			2015
Utility plant:
Electric generation	30 - 60 years	$	1,137		$	1,134
Electric distribution	20 - 70 years	1,417			1,382
Electric transmission	50 - 70 years	771			739
Electric general and intangible plant	5 - 65 years	164			139
Natural gas distribution	40 - 70 years	381			374
Natural gas general and intangible plant	5 - 60 years	15			13
Common general	5 - 65 years	267			265
Utility plant		4,152			4,046
Accumulated depreciation and amortization		(1,442		)	(1,368		)
Utility plant, net		2,710			2,678
Other non-regulated, net of accumulated depreciation and amortization	60 years	5			—
Plant, net		2,715			2,678
Construction work-in-progress		107			88
Property, plant and equipment, net		$	2,822		$	2,766

All of Sierra Pacific's plant is subject to the ratemaking jurisdiction of the PUCN and the FERC. Sierra Pacific's depreciation and amortization expense, as authorized by the PUCN, stated as a percentage of the depreciable property balances as of December 31, 2016, 2015 and 2014 was 3.0%, 2.9% and 3.0%, respectively. Sierra Pacific is required to file a utility plant depreciation study every six years as a companion filing with the triennial general rate case filings.

Construction work-in-progress is related to the construction of regulated assets.

During 2016, Sierra Pacific revised its electric and gas depreciation rates based on the results of a new depreciation study, the most significant impact of which was shorter estimated useful lives at the Valmy Generating Station. The effect of this change will increase depreciation and amortization expense by $9 million annually based on depreciable plant balances at the time of the change. However, the PUCN ordered the change relating to the Valmy Generating Station of $7 million annually be deferred for future recovery through a regulatory asset.