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Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2018
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

2017 Tax Reform impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, the one-time repatriation tax of foreign earnings and profits and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. The Company has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of the repatriation tax on foreign earnings and interpretations of the bonus depreciation rules. The Company has determined the amounts recorded and the interpretations relating to these two items to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. The Company believes the estimates for the repatriation tax to be reasonable, however, additional time is required to validate the inputs to the foreign earnings and profits calculation, the basis on which the repatriation tax is determined, and additional guidance is required to determine state income tax implications. The Company also believes its interpretations for bonus depreciation to be reasonable, however, as the guidance is clarified, estimates may change. During the three- and six-month periods ended June 30, 2018, the Company reduced the liability estimate by $20 million and $45 million, respectively, based on additional guidance for certain state income tax implications of the repatriation tax. The accounting is estimated to be completed by December 2018.

Iowa Senate File 2417

In May 2018, Iowa Senate File 2417 was signed into law in the state of Iowa, which, among other items, reduces the state of Iowa corporate tax rate from 12% to 9.8% and eliminates corporate federal deductibility, both for tax years starting in 2021. GAAP requires the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. As a result of Iowa Senate File 2417, the Company reduced deferred income tax liabilities $61 million and decreased deferred income tax expense by $2 million. As it is probable the change in deferred taxes for the Company's regulated businesses will be passed back to customers through regulatory mechanisms, the Company increased net regulatory liabilities by $59 million. In connection with Iowa Senate File 2417, the Company determined it was more appropriate to present the deferred income tax assets of $609 million associated with the state of Iowa net operating loss carryforward as a long-term income tax receivable from Berkshire Hathaway as a component of BHE's shareholders' equity. As the Company does not currently expect to receive any income tax amounts from Berkshire Hathaway related to the state of Iowa prior to the 2021 effective date, the Company has remeasured the long-term income tax receivable with Berkshire Hathaway at the enactment date and recorded a decrease to the long-term income tax receivable from Berkshire Hathaway of $115 million for the six-month period ended June 30, 2018.

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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(78
)
 
(19
)
 
(58
)
 
(17
)
State income tax, net of federal income tax benefit
(19
)
 
1

 
(25
)
 
(2
)
Income tax effect of foreign income
(4
)
 
(5
)
 
(11
)
 
(5
)
Effects of ratemaking
(8
)
 
—

 
(8
)
 
—

Equity income
1

 
1

 
1

 
1

Other, net
1

 
—

 
(1
)

(1
)
Effective income tax rate
(86
)%
 
13
 %
 
(81
)%
 
11
 %


The effective tax rate decreased for the second quarter of 2018 compared to 2017 primarily due to the reduction in the United States federal corporate income tax rate from 35% to 21%, effective January 1, 2018, higher production tax credits recognized of $33 million, lower consolidated state income tax expense, including a reduction to the state provision for the repatriation tax, and the favorable impacts of rate making.

The effective tax rate decreased for the first six months of 2018 compared to 2017 primarily due to the reduction in the United States federal corporate income tax rate from 35% to 21%, effective January 1, 2018, lower consolidated state income tax expense, including a reduction to the state provision for the repatriation tax, higher production tax credits recognized of $62 million, lower United States income tax on foreign earnings and the favorable impacts of rate making.

Income tax credits relate primarily to production tax credits from wind-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity production tax credits 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.

The Company's provision for income tax has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its United States federal and Iowa state income tax returns and substantially all of its currently payable or receivable income tax is remitted to or received from Berkshire Hathaway. For the six-month period ended June 30, 2018, the Company received net cash payments for federal income tax from Berkshire Hathaway totaling $311 million. For the six-month period ended June 30, 2017, the Company made net cash payments for federal income tax to Berkshire Hathaway totaling $24 million. As of June 30, 2018, the Company had a long-term income tax receivable from Berkshire Hathaway of $494 million for Iowa state income tax reflected as a component of BHE's shareholders' equity.
Schedule of Effective Income Tax Rate Reconciliation
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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(78
)
 
(19
)
 
(58
)
 
(17
)
State income tax, net of federal income tax benefit
(19
)
 
1

 
(25
)
 
(2
)
Income tax effect of foreign income
(4
)
 
(5
)
 
(11
)
 
(5
)
Effects of ratemaking
(8
)
 
—

 
(8
)
 
—

Equity income
1

 
1

 
1

 
1

Other, net
1

 
—

 
(1
)

(1
)
Effective income tax rate
(86
)%
 
13
 %
 
(81
)%
 
11
 %
Nevada Power Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

2017 Tax Reform impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, the elimination of the deduction for production activities and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. Nevada Power has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of interpretations of the bonus depreciation rules. Nevada Power has determined the amounts recorded and the interpretations relating to this items to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. Nevada Power believes its interpretations for bonus depreciation to be reasonable, however, as the guidance is clarified estimates may change. The accounting is estimated to be completed by December 2018.

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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
%
 
21
 %
 
35
%
Effects of ratemaking
(1
)
 
—

 
(1
)
 
—

Nondeductible expenses
2

 
—


2


—

Other
1

 
1

 
1

 
1

Effective income tax rate
23
 %

36
%

23
 %

36
%
Schedule of Effective Income Tax Rate Reconciliation
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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
%
 
21
 %
 
35
%
Effects of ratemaking
(1
)
 
—

 
(1
)
 
—

Nondeductible expenses
2

 
—


2


—

Other
1

 
1

 
1

 
1

Effective income tax rate
23
 %

36
%

23
 %

36
%
Sierra Pacific Power Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

2017 Tax Reform impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, the elimination of the deduction for production activities and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. Sierra Pacific has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of interpretations of the bonus depreciation rules. Sierra Pacific has determined the amounts recorded and the interpretations relating to this items to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. Sierra Pacific believes its interpretations for bonus depreciation to be reasonable, however, as the guidance is clarified estimates may change. The accounting is estimated to be completed by December 2018.

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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
%
 
35
%
 
21
 %
 
35
%
Effects of ratemaking
14

 
—

 
(1
)
 
—

Nondeductible expenses
8

 
—

 
3

 
—

Other
3

 
—

 
—

 
—

Effective income tax rate
46
%
 
35
%
 
23
 %
 
35
%
Schedule of Effective Income Tax Rate Reconciliation
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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
%
 
35
%
 
21
 %
 
35
%
Effects of ratemaking
14

 
—

 
(1
)
 
—

Nondeductible expenses
8

 
—

 
3

 
—

Other
3

 
—

 
—

 
—

Effective income tax rate
46
%
 
35
%
 
23
 %
 
35
%
PacifiCorp [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

2017 Tax Reform impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018 and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. PacifiCorp has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of the interpretations of the bonus depreciation rules. PacifiCorp has determined the amounts recorded and the interpretations relating to this item to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. PacifiCorp believes its interpretations for bonus depreciation to be reasonable, however, as the guidance is clarified estimates may change. The accounting is estimated to be completed by December 2018. During the three- and six-month periods ended June 30, 2018, PacifiCorp did not make material revisions to its previous calculations.

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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
State income tax, net of federal income tax benefit
4

 
3

 
4

 
3

Federal income tax credits
(5
)
 
(5
)
 
(5
)
 
(5
)
Effects of ratemaking
(4
)
 
1

 
(4
)
 
1

Other
(3
)
 
(2
)
 
(2
)
 
(2
)
Effective income tax rate
13
 %
 
32
 %
 
14
 %
 
32
 %


Income tax credits relate primarily to production tax credits earned by PacifiCorp’s wind-powered generating facilities. Federal renewable electricity production tax credits 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.
Schedule of Effective Income Tax Rate Reconciliation
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
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
State income tax, net of federal income tax benefit
4

 
3

 
4

 
3

Federal income tax credits
(5
)
 
(5
)
 
(5
)
 
(5
)
Effects of ratemaking
(4
)
 
1

 
(4
)
 
1

Other
(3
)
 
(2
)
 
(2
)
 
(2
)
Effective income tax rate
13
 %
 
32
 %
 
14
 %
 
32
 %
MidAmerican Energy Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act ("2017 Tax Reform") impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. MidAmerican Energy has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of interpretations of the bonus depreciation rules. MidAmerican Energy has determined the amounts recorded and the interpretations relating to this item to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. MidAmerican Energy believes its interpretations for bonus depreciation to be reasonable; however, as the guidance is clarified estimates may change. The accounting is estimated to be completed by December 2018.

Iowa Senate File 2417

In May 2018, Iowa Senate File 2417 was signed into law in the state of Iowa, which, among other items, reduces the state of Iowa corporate tax rate from 12% to 9.8% and eliminates corporate federal deductibility, both for tax years starting in 2021. GAAP requires the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. As a result of Iowa Senate File 2417, MidAmerican Energy reduced net deferred income tax liabilities $54 million and decreased deferred income tax benefit by $2 million. As it is probable the change in deferred taxes for MidAmerican Energy will be passed back to customers through regulatory mechanisms, MidAmerican Energy increased net regulatory liabilities by $56 million.

A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax benefit is as follows:
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(80
)
 
(67
)
 
(104
)
 
(73
)
State income tax, net of federal income tax benefit
(7
)
 
(4
)
 
(8
)
 
(2
)
Effects of ratemaking
(9
)
 
(5
)
 
(13
)
 
(7
)
Other, net
(2
)
 
—

 
—

 
—

Effective income tax rate
(77
)%
 
(41
)%
 
(104
)%
 
(47
)%


Income tax credits relate primarily to production tax credits from MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity production tax credits 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.

Berkshire Hathaway includes BHE and subsidiaries in its United States 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 $228 million and $7 million for the six-month periods ended June 30, 2018 and 2017, respectively.
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax benefit is as follows:
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(80
)
 
(67
)
 
(104
)
 
(73
)
State income tax, net of federal income tax benefit
(7
)
 
(4
)
 
(8
)
 
(2
)
Effects of ratemaking
(9
)
 
(5
)
 
(13
)
 
(7
)
Other, net
(2
)
 
—

 
—

 
—

Effective income tax rate
(77
)%
 
(41
)%
 
(104
)%
 
(47
)%
MidAmerican Funding, LLC and Subsidiaries [Domain]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Tax Disclosure [Text Block]
Income Taxes

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act ("2017 Tax Reform") impacts many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, and limitations on bonus depreciation for utility property.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to assist in the implementation process of 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. MidAmerican Funding has recorded the impacts of 2017 Tax Reform and believes all the impacts to be complete with the exception of interpretations of the bonus depreciation rules. MidAmerican Funding has determined the amounts recorded and the interpretations relating to this item to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. MidAmerican Funding believes its interpretations for bonus depreciation to be reasonable; however, as the guidance is clarified estimates may change. The accounting is estimated to be completed by December 2018.

Iowa Senate File 2417

In May 2018, Iowa Senate File 2417 was signed into law in the state of Iowa, which, among other items, reduces the state of Iowa corporate tax rate from 12% to 9.8% and eliminates corporate federal deductibility, both for tax years starting in 2021. GAAP requires the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. As a result of Iowa Senate File 2417, MidAmerican Funding reduced net deferred income tax liabilities $54 million and decreased deferred income tax benefit by $2 million. As it is probable the change in deferred taxes for MidAmerican Energy will be passed back to customers through regulatory mechanisms, MidAmerican Funding increased net regulatory liabilities by $56 million.

A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax benefit is as follows:
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(86
)
 
(71
)
 
(113
)
 
(78
)
State income tax, net of federal income tax benefit
(8
)
 
(5
)
 
(9
)
 
(2
)
Effects of ratemaking
(10
)
 
(5
)
 
(14
)
 
(8
)
Other, net
(1
)
 
—

 
—

 
—

Effective income tax rate
(84
)%
 
(46
)%
 
(115
)%
 
(53
)%


Income tax credits relate primarily to production tax credits from MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity production tax credits 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.

Berkshire Hathaway includes BHE and subsidiaries in its United States 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 $234 million and $8 million for the six-month periods ended June 30, 2018 and 2017, respectively.
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax benefit is as follows:
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
35
 %
 
21
 %
 
35
 %
Income tax credits
(86
)
 
(71
)
 
(113
)
 
(78
)
State income tax, net of federal income tax benefit
(8
)
 
(5
)
 
(9
)
 
(2
)
Effects of ratemaking
(10
)
 
(5
)
 
(14
)
 
(8
)
Other, net
(1
)
 
—

 
—

 
—

Effective income tax rate
(84
)%
 
(46
)%
 
(115
)%
 
(53
)%