Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):



	Input Levels for Fair Value Measurements
	Level 1			Level 2			Level 3			Other⁽¹⁾			Total
As of September 30, 2018
Assets:
Commodity derivatives	$	—		$	53		$	99		$	(35	)	$	117
Interest rate derivatives	3			22			11			—			36
Mortgage loans held for sale	—			501			—			—			501
Money market mutual funds⁽²⁾	716			—			—			—			716
Debt securities:
United States government obligations	183			—			—			—			183
International government obligations	—			4			—			—			4
Corporate obligations	—			47			—			—			47
Municipal obligations	—			2			—			—			2
Equity securities:
United States companies	300			—			—			—			300
International companies	1,622			—			—			—			1,622
Investment funds	187			—			—			—			187
	$	3,011		$	629		$	110		$	(35	)	$	3,715
Liabilities:
Commodity derivatives	$	(1	)	$	(168	)	$	(15	)	$	110		$	(74	)
Interest rate derivatives	—			(5		)	(1		)	—			(6		)
	$	(1	)	$	(173	)	$	(16	)	$	110		$	(80	)



	Input Levels for Fair Value Measurements
	Level 1			Level 2			Level 3			Other⁽¹⁾			Total
As of December 31, 2017
Assets:
Commodity derivatives	$	1		$	42		$	104		$	(29	)	$	118
Interest rate derivatives	—			15			9			—			24
Mortgage loans held for sale	—			465			—			—			465
Money market mutual funds⁽²⁾	685			—			—			—			685
Debt securities:
United States government obligations	176			—			—			—			176
International government obligations	—			5			—			—			5
Corporate obligations	—			36			—			—			36
Municipal obligations	—			2			—			—			2
Equity securities:
United States companies	288			—			—			—			288
International companies	1,968			—			—			—			1,968
Investment funds	178			—			—			—			178
	$	3,296		$	565		$	113		$	(29	)	$	3,945
Liabilities:
Commodity derivatives	$	(3	)	$	(167	)	$	(10	)	$	105		$	(75	)
Interest rate derivatives	—			(8		)	—			—			(8		)
	$	(3	)	$	(175	)	$	(10	)	$	105		$	(83	)


(1)	Represents netting under master netting arrangements and a net cash collateral receivable of $75 million and $76 million as of September 30, 2018 and December 31, 2017, respectively.


(2)	Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):



	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
				Interest						Interest
	Commodity			Rate			Commodity			Rate
	Derivatives			Derivatives			Derivatives			Derivatives
2018:
Beginning balance	$	83		$	17		$	94		$	9
Changes included in earnings	(1		)	54			3			140
Changes in fair value recognized in OCI	1			—			1			—
Changes in fair value recognized in net regulatory assets	3			—			(11		)	—
Purchases	1			—			2			—
Settlements	(3		)	(61		)	(5		)	(139		)
Ending balance	$	84		$	10		$	84		$	10



2017:
Beginning balance	$	81		$	8		$	60		$	6
Changes included in earnings	7			34			19			100
Changes in fair value recognized in OCI	(1		)	—			(3		)	—
Changes in fair value recognized in net regulatory assets	(3		)	—			(5		)	—
Purchases	—			8			1			6
Settlements	2			(37		)	14			(99		)
Ending balance	$	86		$	13		$	86		$	13

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	37,558	$	40,520	$	35,193	$	40,522

Nevada Power Company [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents Nevada Power's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):



	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3			Total
As of September 30, 2018
Assets:
Commodity derivatives	$	—	$	—	$	1		$	1
Money market mutual funds⁽¹⁾	67		—		—			67
Investment funds	2		—		—			2
	$	69	$	—	$	1		$	70

Liabilities - commodity derivatives	$	—	$	—	$	(8	)	$	(8	)

As of December 31, 2017
Assets - investment funds	$	2	$	—	$	—		$	2

Liabilities - commodity derivatives	$	—	$	—	$	(3	)	$	(3	)


(1)	Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of Nevada Power's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):



	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2018			2017			2018			2017

Beginning balance	$	(9	)	$	(4	)	$	(3	)	$	(14	)
Changes in fair value recognized in regulatory assets	2			(1		)	(6		)	(3		)
Settlements	—			1			2			13
Ending balance	$	(7	)	$	(4	)	$	(7	)	$	(4	)

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of Nevada Power's long‑term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	2,351	$	2,653	$	2,600	$	3,088

PacifiCorp [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents PacifiCorp's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):



	Input Levels for Fair Value Measurements
	Level 1		Level 2			Level 3		Other⁽¹⁾			Total
As of September 30, 2018
Assets:
Commodity derivatives	$	—	$	20		$	—	$	(10	)	$	10
Money market mutual funds⁽²⁾	310		—			—		—			310
Investment funds	26		—			—		—			26
	$	336	$	20		$	—	$	(10	)	$	346

Liabilities - Commodity derivatives	$	—	$	(125	)	$	—	$	80		$	(45	)

As of December 31, 2017
Assets:
Commodity derivatives	$	—	$	13		$	—	$	(4	)	$	9
Money market mutual funds⁽²⁾	21		—			—		—			21
Investment funds	21		—			—		—			21
	$	42	$	13		$	—	$	(4	)	$	51

Liabilities - Commodity derivatives	$	—	$	(117	)	$	—	$	78		$	(39	)


(1)	Represents netting under master netting arrangements and a net cash collateral receivable of $70 million and $74 million as of September 30, 2018 and December 31, 2017, respectively.


(2)	Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, by Balance Sheet Grouping

PacifiCorp's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of PacifiCorp's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of PacifiCorp's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of PacifiCorp's long-term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	7,014	$	7,862	$	7,005	$	8,370

MidAmerican Energy Company [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents MidAmerican Energy's financial assets and liabilities recognized on the Balance Sheets and measured at fair value on a recurring basis (in millions):



	Input Levels for Fair Value Measurements
	Level 1		Level 2			Level 3			Other⁽¹⁾			Total
As of September 30, 2018:
Assets:
Commodity derivatives	$	—	$	4		$	1		$	(2	)	$	3
Money market mutual funds⁽²⁾	88		—			—			—			88
Debt securities:
United States government obligations	183		—			—			—			183
International government obligations	—		4			—			—			4
Corporate obligations	—		47			—			—			47
Municipal obligations	—		2			—			—			2
Equity securities:
United States companies	300		—			—			—			300
International companies	6		—			—			—			6
Investment funds	21		—			—			—			21
	$	598	$	57		$	1		$	(2	)	$	654

Liabilities - commodity derivatives	$	—	$	(7	)	$	(2	)	$	3		$	(6	)



	Input Levels for Fair Value Measurements
	Level 1		Level 2			Level 3			Other⁽¹⁾			Total
As of December 31, 2017:
Assets:
Commodity derivatives	$	—	$	3		$	4		$	(2	)	$	5
Money market mutual funds⁽²⁾	133		—			—			—			133
Debt securities:
United States government obligations	176		—			—			—			176
International government obligations	—		5			—			—			5
Corporate obligations	—		36			—			—			36
Municipal obligations	—		2			—			—			2
Equity securities:
United States companies	288		—			—			—			288
International companies	7		—			—			—			7
Investment funds	15		—			—			—			15
	$	619	$	46		$	4		$	(2	)	$	667

Liabilities - commodity derivatives	$	—	$	(9	)	$	(1	)	$	2		$	(8	)


(1)	Represents netting under master netting arrangements and a net cash collateral receivable of $1 million and $- million as of September 30, 2018 and December 31, 2017, respectively.


(2)	Amounts are included in cash and cash equivalents and investments and restricted cash and investments on the Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of MidAmerican Energy's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):



	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2018			2017			2018			2017

Beginning balance	$	(1	)	$	(1	)	$	3		$	(2	)
Changes in fair value recognized in net regulatory assets	(1		)	(2		)	(4		)	(2		)
Settlements	1			1			—			2
Ending balance	$	(1	)	$	(2	)	$	(1	)	$	(2	)

Fair Value, by Balance Sheet Grouping

MidAmerican Energy's long-term debt is carried at cost on the Balance Sheets. The fair value of MidAmerican Energy's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Energy's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Energy's long-term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value

Long-term debt	$	5,380	$	5,612	$	5,042	$	5,686

MidAmerican Funding, LLC and Subsidiaries [Domain]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, by Balance Sheet Grouping

MidAmerican Funding's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of MidAmerican Funding's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Funding's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Funding's long-term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value

Long-term debt	$	5,620	$	5,908	$	5,282	$	6,006

Sierra Pacific Power Company [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents Sierra Pacific's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):



	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3			Total
As of September 30, 2018
Assets - money market mutual funds⁽¹⁾	$	18	$	—	$	—		$	18

Liabilities - commodity derivatives	$	—	$	—	$	(1	)	$	(1	)

As of December 31, 2017
Assets - investment funds	$	—	$	—	$	—		$	—


(1)	Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of Sierra Pacific's commodity derivative liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):



	Three-Month Periods					Nine-Month Periods
	Ended September 30,					Ended September 30,
	2018			2017		2018			2017

Beginning balance	$	(2	)	$	—	$	—		$	—
Changes in fair value recognized in regulatory assets	2			—		(1		)	—
Settlements	(1		)	—		—			—
Ending balance	$	(1	)	$	—	$	(1	)	$	—

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of Sierra Pacific's long-term debt (in millions):



	As of September 30, 2018				As of December 31, 2017
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	1,120	$	1,153	$	1,120	$	1,221