Subsidiary Debt (Notes)

12 Months Ended

Dec. 31, 2018

BHE's direct and indirect subsidiaries are organized as legal entities separate and apart from BHE and its other subsidiaries. Pursuant to separate financing agreements, substantially all of PacifiCorp's electric utility properties; the equity interest of MidAmerican Funding's subsidiary; MidAmerican Energy's electric utility properties in the state of Iowa; substantially all of Nevada Power's and Sierra Pacific's properties in the state of Nevada; AltaLink's transmission properties; and substantially all of the assets of the subsidiaries of BHE Renewables that are direct or indirect owners of solar and wind generation projects are pledged or encumbered to support or otherwise provide the security for their related subsidiary debt. It should not be assumed that the assets of any subsidiary will be available to satisfy BHE's obligations or the obligations of its other subsidiaries. However, unrestricted cash or other assets which are available for distribution may, subject to applicable law, regulatory commitments and the terms of financing and ring-fencing arrangements for such parties, be advanced, loaned, paid as dividends or otherwise distributed or contributed to BHE or affiliates thereof. The long-term debt of BHE's subsidiaries may include provisions that allow BHE's subsidiaries to redeem such debt in whole or in part at any time. These provisions generally include make-whole premiums.

Distributions at these separate legal entities are limited by various covenants including, among others, leverage ratios, interest coverage ratios and debt service coverage ratios. As of December 31, 2018, all subsidiaries were in compliance with their long-term debt covenants. On January 29, 2019, PG&E Corporation and Pacific Gas and Electric Company (the "PG&E Utility") (together "PG&E") filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of California. As a result, the Company does not expect to receive distributions from Topaz Solar Farms LLC ("Topaz") or Agua Caliente Solar, LLC ("Agua Caliente") in the near term.

Long-term debt of subsidiaries consists of the following, including fair value adjustments and unamortized premiums, discounts and debt issuance costs, as of December 31 (in millions):



	Par Value		2018		2017

PacifiCorp	$	7,076	$	7,036	$	7,025
MidAmerican Funding	5,668		5,599		5,259
NV Energy	4,321		4,318		4,581
Northern Powergrid	2,621		2,626		2,805
BHE Pipeline Group	1,050		1,042		796
BHE Transmission	3,856		3,842		4,334
BHE Renewables	3,438		3,401		3,594
HomeServices	233		233		247
Total subsidiary debt	$	28,263	$	28,097	$	28,641

Reflected as:
Current liabilities			$	2,106	$	2,431
Noncurrent liabilities			25,991		26,210
Total subsidiary debt			$	28,097	$	28,641

PacifiCorp

PacifiCorp's long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs as of December 31 (dollars in millions):



	Par Value		2018		2017
First mortgage bonds:
2.95% to 8.53%, due through 2023	$	1,824	$	1,821	$	2,320
3.35% to 6.71%, due 2024 to 2026	775		771		771
7.70% due 2031	300		298		298
5.25% to 6.35%, due 2034 to 2038	2,350		2,338		2,337
4.10% to 6.00%, due 2039 to 2042	950		939		938
4.125%, due 2049	600		593		—
Variable-rate series, tax-exempt bond obligations (2018-1.67% to 1.85%; 2017-1.60% to 1.87%):
Due 2018 to 2020	38		38		79
Due 2018 to 2025⁽¹⁾	25		25		70
Due 2024⁽¹⁾⁽²⁾	143		142		142
Due 2024 to 2025⁽²⁾	50		50		50
Capital lease obligations - 8.75% to 14.61%, due through 2035	21		21		20
Total PacifiCorp	$	7,076	$	7,036	$	7,025


(1)	Supported by $170 million and $216 million of fully available letters of credit issued under committed bank arrangements as of December 31, 2018 and 2017, respectively.


(2)	Secured by pledged first mortgage bonds registered to and held by the tax-exempt bond trustee generally with the same interest rates, maturity dates and redemption provisions as the tax-exempt bond obligations.

The issuance of PacifiCorp's first mortgage bonds is limited by available property, earnings tests and other provisions of PacifiCorp's mortgage. Approximately $28 billion of PacifiCorp's eligible property (based on original cost) was subject to the lien of the mortgage as of December 31, 2018.

MidAmerican Funding

MidAmerican Funding's long-term debt consists of the following, including fair value adjustments and unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
MidAmerican Funding:
6.927% Senior Bonds, due 2029	$	240	$	217	$	216

MidAmerican Energy:
Tax-exempt bond obligations -
Variable-rate tax-exempt bond obligation series: (2018-1.74%, 2017-1.91%), due 2023-2047	370		368		368
First Mortgage Bonds:
2.40%, due 2019	500		500		499
3.70%, due 2023	250		249		248
3.50%, due 2024	500		501		501
3.10%, due 2027	375		372		372
4.80%, due 2043	350		346		346
4.40%, due 2044	400		394		394
4.25%, due 2046	450		445		445
3.95%, due 2047	475		470		470
3.65%, due 2048	700		688		—
Notes:
5.30% Series, due 2018	—		—		350
6.75% Series, due 2031	400		396		396
5.75% Series, due 2035	300		298		298
5.80% Series, due 2036	350		348		348
Transmission upgrade obligation, 4.45% and 3.42% due through 2035 and 2036, respectively	7		5		6
Capital lease obligations - 4.16%, due through 2020	1		2		2
Total MidAmerican Energy	5,428		5,382		5,043
Total MidAmerican Funding	$	5,668	$	5,599	$	5,259

In January 2019, MidAmerican Energy issued $600 million of its 3.65% First Mortgage Bonds due April 2029 and $900 million of its 4.25% First Mortgage Bonds due July 2049. In February 2019, MidAmerican Energy redeemed $500 million of its 2.40% First Mortgage Bonds due in March 2019 at a redemption price of 100% of the principal amount plus accrued interest.

Pursuant to MidAmerican Energy's mortgage dated September 9, 2013, as amended by the First Supplemental Indenture dated as of September 19, 2013, MidAmerican Energy's first mortgage bonds, currently and from time to time outstanding, are secured by a first mortgage lien on substantially all of its electric generating, transmission and distribution property within the state of Iowa, subject to certain exceptions and permitted encumbrances. As of December 31, 2018, MidAmerican Energy's eligible property subject to the lien of the mortgage totaled approximately $18 billion based on original cost. Additionally, MidAmerican Energy's senior notes outstanding are equally and ratably secured with the first mortgage bonds as required by the indentures under which the senior notes were issued.

MidAmerican Energy's variable-rate tax-exempt obligations bear interest at rates that are periodically established through remarketing of the bonds in the short-term tax-exempt market. MidAmerican Energy, at its option, may change the mode of interest calculation for these bonds by selecting from among several floating or fixed rate alternatives. The interest rates shown in the table above are the weighted average interest rates as of December 31, 2018 and 2017. MidAmerican Energy maintains revolving credit facility agreements to provide liquidity for holders of these issues and $180 million of the variable rate, tax-exempt bonds are secured by an equal amount of first mortgage bonds pursuant to MidAmerican Energy's mortgage dated September 9, 2013, as supplemented and amended.

NV Energy

NV Energy's long-term debt consists of the following, including fair value adjustments and unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
NV Energy -
6.250% Senior Notes, due 2020	$	315	$	330	$	337

Nevada Power:
General and refunding mortgage securities:
6.500% Series O, due 2018	—		—		324
6.500% Series S, due 2018	—		—		499
7.125% Series V, due 2019	500		500		499
2.750%, Series BB, due 2020	575		574		—
6.650% Series N, due 2036	367		360		359
6.750% Series R, due 2037	349		348		348
5.375% Series X, due 2040	250		248		248
5.450% Series Y, due 2041	250		244		244
Tax-exempt refunding revenue bond obligations:
Fixed-rate series:
1.800% Pollution Control Bonds Series 2017A, due 2032⁽¹⁾	40		40		40
1.600% Pollution Control Bonds Series 2017, due 2036⁽¹⁾	40		39		39
1.600% Pollution Control Bonds Series 2017B, due 2039⁽¹⁾	13		13		13
Capital and financial lease obligations - 2.750% to 11.600%, due through 2054	463		463		475
Total Nevada Power	2,847		2,829		3,088

Sierra Pacific:
General and refunding mortgage securities:
3.375% Series T, due 2023	250		249		249
2.600% Series U, due 2026	400		396		396
6.750% Series P, due 2037	252		256		256
Tax-exempt refunding revenue bond obligations:
Fixed-rate series:
1.250% Pollution Control Series 2016A, due 2029⁽²⁾	20		20		20
1.500% Gas Facilities Series 2016A, due 2031⁽²⁾	59		58		58
3.000% Gas and Water Series 2016B, due 2036⁽³⁾	60		62		63
Variable-rate series (2018 - 1.750% to 1.820%, 2017 - 1.690% to 1.840%):
Water Facilities Series 2016C, due 2036	30		30		30
Water Facilities Series 2016D, due 2036	25		25		25
Water Facilities Series 2016E, due 2036	25		25		25
Capital and financial lease obligations - 2.700% to 10.297%, due through 2054	38		38		34
Total Sierra Pacific	1,159		1,159		1,156
Total NV Energy	$	4,321	$	4,318	$	4,581

(1) Subject to mandatory purchase by Nevada Power in May 2020 at which date the interest rate may be adjusted from time to time.

(2) Subject to mandatory purchase by Sierra Pacific in June 2019 at which date the interest rate may be adjusted from time to time.

(3) Subject to mandatory purchase by Sierra Pacific in June 2022 at which date the interest rate may be adjusted from time to time.

In January 2019, Nevada Power issued $500 million of its 3.70% General and Refunding Mortgage Notes, Series CC, due May 2029.

The issuance of General and Refunding Mortgage Securities by the Nevada Utilities are subject to PUCN approval and are limited by available property and other provisions of the mortgage indentures for each of Nevada Power and Sierra Pacific. As of December 31, 2018, approximately $8.5 billion of Nevada Power's and $4.1 billion of Sierra Pacific's (based on original cost) property was subject to the liens of the mortgages.

Northern Powergrid

Northern Powergrid and its subsidiaries' long-term debt consists of the following, including fair value adjustments and unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value⁽¹⁾		2018		2017

8.875% Bonds, due 2020	$	128	$	133	$	144
9.25% Bonds, due 2020	255		260		279
3.901% to 4.586% European Investment Bank loans, due 2018 to 2022	294		293		366
7.25% Bonds, due 2022	255		262		279
2.50% Bonds due 2025	191		189		200
2.073% European Investment Bank loan, due 2025	64		65		69
2.564% European Investment Bank loans, due 2027	319		318		336
7.25% Bonds, due 2028	237		241		256
4.375% Bonds, due 2032	191		188		199
5.125% Bonds, due 2035	255		252		267
5.125% Bonds, due 2035	191		189		200
Variable-rate bond, due 2026⁽²⁾	241		236		210
Total Northern Powergrid	$	2,621	$	2,626	$	2,805


(1)	The par values for these debt instruments are denominated in sterling.


(2)	Amortizes semiannually and the Company has entered into an interest rate swap that fixes the interest rate on 85% of the outstanding debt. The variable interest rate as of December 31, 2018 was 2.66% while the fixed interest rate was 2.82%.

BHE Pipeline Group

BHE Pipeline Group's long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
Northern Natural Gas:
5.75% Senior Notes, due 2018	$	—	$	—	$	200
4.25% Senior Notes, due 2021	200		199		199
5.80% Senior Bonds, due 2037	150		149		149
4.10% Senior Bonds, due 2042	250		248		248
4.30% Senior Bonds, due 2049	450		446		—
Total BHE Pipeline Group	$	1,050	$	1,042	$	796

BHE Transmission

BHE Transmission's long-term debt consists of the following, including fair value adjustments and unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value⁽¹⁾		2018		2017
AltaLink Investments, L.P.:
Series 12-1 Senior Bonds, 3.674%, due 2019	$	147	$	148	$	162
Series 13-1 Senior Bonds, 3.265%, due 2020	147		148		161
Series 15-1 Senior Bonds, 2.244%, due 2022	147		146		158
Total AltaLink Investments, L.P.	441		442		481

AltaLink, L.P.:
Series 2008-1 Notes, 5.243%, due 2018	—		—		159
Series 2013-2 Notes, 3.621%, due 2020	92		92		99
Series 2012-2 Notes, 2.978%, due 2022	202		201		218
Series 2013-4 Notes, 3.668%, due 2023	366		366		397
Series 2014-1 Notes, 3.399%, due 2024	256		256		278
Series 2016-1 Notes, 2.747%, due 2026	256		255		277
Series 2006-1 Notes, 5.249%, due 2036	110		109		119
Series 2010-1 Notes, 5.381%, due 2040	92		91		99
Series 2010-2 Notes, 4.872%, due 2040	110		109		119
Series 2011-1 Notes, 4.462%, due 2041	202		201		218
Series 2012-1 Notes, 3.990%, due 2042	385		380		412
Series 2013-3 Notes, 4.922%, due 2043	256		256		278
Series 2014-3 Notes, 4.054%, due 2044	216		215		233
Series 2015-1 Notes, 4.090%, due 2045	256		255		277
Series 2016-2 Notes, 3.717%, due 2046	330		328		356
Series 2013-1 Notes, 4.446%, due 2053	183		183		198
Series 2014-2 Notes, 4.274%, due 2064	95		95		103
Total AltaLink, L.P.	3,407		3,392		3,840

Other:
Construction Loan, 5.660%, due 2020	8		8		13

Total BHE Transmission	$	3,856	$	3,842	$	4,334


(1)	The par values for these debt instruments are denominated in Canadian dollars.

BHE Renewables

BHE Renewables' long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
Fixed-rate⁽¹⁾:
Bishop Hill Holdings Senior Notes, 5.125%, due 2032	85		84		93
Solar Star Funding Senior Notes, 3.950%, due 2035	295		292		310
Solar Star Funding Senior Notes, 5.375%, due 2035	924		915		965
Grande Prairie Wind Senior Notes, 3.860%, due 2037	396		392		404
Topaz Solar Farms Senior Notes, 5.750%, due 2039	718		709		745
Topaz Solar Farms Senior Notes, 4.875%, due 2039	207		205		217
Alamo 6 Senior Notes, 4.170%, due 2042	224		221		229
Other	16		16		19
Variable-rate⁽¹⁾:
Pinyon Pines I and II Term Loans, due 2019⁽²⁾	310		310		333
TX Jumbo Road Term Loan, due 2025⁽²⁾	180		176		193
Marshall Wind Term Loan, due 2026⁽²⁾	83		81		86
Total BHE Renewables	$	3,438	$	3,401	$	3,594


(1)	Amortizes quarterly or semiannually.

(2)

The term loans have variable interest rates based on LIBOR plus a margin that varies during the terms of the agreements. The Company has entered into interest rate swaps that fix the interest rate on 75% of the Pinyon Pines outstanding debt and 100% of the TX Jumbo Road and Marshall Wind outstanding debt. The variable interest rate as of December 31, 2018 and 2017 was 4.55% and 3.32%, respectively, while the fixed interest rates as of December 31, 2018 and 2017 ranged from 3.21% to 3.63%.

HomeServices

HomeServices' long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
Variable-rate⁽¹⁾:
Variable-rate term loan (2018 - 4.022%, 2017 - 2.819%), due 2022	$	233	$	233	$	247


(1)	Amortizes quarterly.

Annual Repayments of Long-Term Debt

The annual repayments of BHE and subsidiary debt for the years beginning January 1, 2019 and thereafter, excluding fair value adjustments and unamortized premiums, discounts and debt issuance costs, are as follows (in millions):



											2024 and
	2019		2020		2021		2022		2023		Thereafter		Total

BHE senior notes	$	—	$	350	$	450	$	—	$	900	$	6,951	$	8,651
BHE junior subordinated debentures	—		—		—		—		—		100		100
PacifiCorp	352		40		425		606		450		5,203		7,076
MidAmerican Funding	500		2		—		1		315		4,850		5,668
NV Energy	523		913		28		29		271		2,557		4,321
Northern Powergrid	80		462		31		479		33		1,536		2,621
BHE Pipeline Group	—		—		200		—		—		850		1,050
BHE Transmission	148		245		—		348		367		2,748		3,856
BHE Renewables	483		168		175		172		177		2,263		3,438
HomeServices	20		27		33		153		—		—		233
Totals	$	2,106	$	2,207	$	1,342	$	1,788	$	2,513	$	27,058	$	37,014

PacifiCorp [Member]

Debt Instrument [Line Items]

Debt and Capital Leases Disclosures [Text Block]

Long-term Debt and Capital Lease Obligations

PacifiCorp's long-term debt and capital lease obligations were as follows as of December 31 (dollars in millions):



	2018						2017
					Average				Average
	Principal		Carrying		Interest		Carrying		Interest
	Amount		Value		Rate		Value		Rate

First mortgage bonds:
2.95% to 8.53%, due through 2023	$	1,824	$	1,821	4.48	%	$	2,320	4.73	%
3.35% to 6.71%, due 2024 to 2026	775		771		3.92		771		3.92
7.70% due 2031	300		298		7.70		298		7.70
5.25% to 6.35%, due 2034 to 2038	2,350		2,338		5.96		2,337		5.96
4.10% to 6.00%, due 2039 to 2042	950		939		5.40		938		5.40
4.125%, due 2049	600		593		4.13		—		—
Variable-rate series, tax-exempt bond obligations (2018-1.67% to 1.85%; 2017-1.60% to 1.87%):
Due 2018 to 2020	38		38		1.85		79		1.77
Due 2018 to 2025⁽¹⁾	25		25		1.75		70		1.81
Due 2024⁽¹⁾⁽²⁾	143		142		1.68		142		1.73
Due 2024 to 2025⁽²⁾	50		50		1.75		50		1.72
Total long-term debt	7,055		7,015				7,005
Capital lease obligations:
8.75% to 14.61%, due through 2035	21		21		10.55		20		11.46
Total long-term debt and capital lease
obligations	$	7,076	$	7,036			$	7,025



Reflected as:
	2018		2017

Current portion of long-term debt and capital lease obligations	$	352	$	588
Long-term debt and capital lease obligations	6,684		6,437
Total long-term debt and capital lease obligations	$	7,036	$	7,025


1)	Supported by $170 million and $216 million of fully available letters of credit issued under committed bank arrangements as of December 31, 2018 and 2017, respectively.


2)	Secured by pledged first mortgage bonds registered to and held by the tax-exempt bond trustee generally with the same interest rates, maturity dates and redemption provisions as the tax-exempt bond obligations.

PacifiCorp's long-term debt generally includes provisions that allow PacifiCorp to redeem the first mortgage bonds in whole or in part at any time through the payment of a make-whole premium. Variable-rate tax-exempt bond obligations are generally redeemable at par value.

PacifiCorp currently has regulatory authority from the Oregon Public Utility Commission and the Idaho Public Utilities Commission to issue an additional $2.0 billion of long-term debt. PacifiCorp must make a notice filing with the Washington Utilities and Transportation Commission prior to any future issuance. PacifiCorp currently has an effective shelf registration statement filed with the United States Securities and Exchange Commission (SEC) to issue up to $2.0 billion additional first mortgage bonds through October 2021.

PacifiCorp has entered into long-term agreements that qualify as capital leases and expire at various dates through March 2035 for transportation services, a power purchase agreement and real estate. The transportation services agreements included as capital leases are for the right to use pipeline facilities to provide natural gas to two of PacifiCorp's generating facilities. Net capital lease assets of $21 million and $20 million as of December 31, 2018 and 2017, respectively, were included in property, plant and equipment, net in the Consolidated Balance Sheets.

As of December 31, 2018, the annual principal maturities of long-term debt and total capital lease obligations for 2019 and thereafter are as follows (in millions):



	Long-term			Capital Lease
	Debt			Obligations			Total

2019	$	350		$	4		$	354
2020	38			3			41
2021	420			7			427
2022	605			3			608
2023	449			2			451
Thereafter	5,193			16			5,209
Total	7,055			35			7,090
Unamortized discount and debt issuance costs	(40		)	—			(40		)
Amounts representing interest	—			(14		)	(14		)
Total	$	7,015		$	21		$	7,036

MidAmerican Energy Company [Member]

Debt Instrument [Line Items]

Long-term Debt [Text Block]

Long-Term Debt

MidAmerican Energy's long-term debt consists of the following, including amounts maturing within one year and unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017

First mortgage bonds:
2.40%, due 2019	$	500	$	500	$	499
3.70%, due 2023	250		249		248
3.50%, due 2024	500		500		501
3.10%, due 2027	375		372		372
4.80%, due 2043	350		346		346
4.40%, due 2044	400		395		394
4.25%, due 2046	450		445		445
3.95%, due 2047	475		470		470
3.65%, due 2048	700		688		—
Notes:
5.3% Series, due 2018	—		—		350
6.75% Series, due 2031	400		396		396
5.75% Series, due 2035	300		298		298
5.8% Series, due 2036	350		347		347
Transmission upgrade obligation, 4.45% and 3.42% due through 2035 and 2036, respectively	6		5		6
Variable-rate tax-exempt bond obligation series: (weighted average interest rate- 2018-1.74%, 2017-1.91%):
Due 2023, issued in 1993	7		7		7
Due 2023, issued in 2008	57		57		57
Due 2024	35		35		35
Due 2025	13		13		13
Due 2036	33		33		33
Due 2038	45		45		45
Due 2046	30		29		29
Due 2047	150		149		149
Capital lease obligations - 4.16%, due through 2020	2		2		2
Total	$	5,428	$	5,381	$	5,042

The annual repayments of MidAmerican Energy's long-term debt for the years beginning January 1, 2019, and thereafter, excluding unamortized premiums, discounts and debt issuance costs, are as follows (in millions):



2019	$	500
2020	2
2021	—
2022	—
2023	315
2024 and thereafter	4,611

Pursuant to MidAmerican Energy's mortgage dated September 9, 2013, MidAmerican Energy's first mortgage bonds, currently and from time to time outstanding, are secured by a first mortgage lien on substantially all of its electric generating, transmission and distribution property within the State of Iowa, subject to certain exceptions and permitted encumbrances. As of December 31, 2018, MidAmerican Energy's eligible property subject to the lien of the mortgage totaled approximately $18 billion based on original cost. Additionally, MidAmerican Energy's senior notes outstanding are equally and ratably secured with the first mortgage bonds as required by the indentures under which the senior notes were issued.

MidAmerican Energy's variable-rate tax-exempt bond obligations bear interest at rates that are periodically established through remarketing of the bonds in the short-term tax-exempt market. MidAmerican Energy, at its option, may change the mode of interest calculation for these bonds by selecting from among several floating or fixed rate alternatives. The interest rates shown in the table above are the weighted average interest rates as of December 31, 2018 and 2017. MidAmerican Energy maintains revolving credit facility agreements to provide liquidity for holders of these issues. Additionally, MidAmerican Energy's obligations associated with the $30 million and $150 million variable rate, tax-exempt bond obligations due 2046 and 2047, respectively, are secured by an equal amount of first mortgage bonds pursuant to MidAmerican Energy's mortgage dated September 9, 2013, as supplemented and amended. Proceeds of the $150 million of variable-rate, tax-exempt Solid Waste Facilities Revenue Bonds due December 2047 are restricted for the purpose of constructing solid waste facilities. As of December 31, 2018, $56 million of the restricted proceeds remain and are reflected in other current assets on the Balance Sheet.

As of December 31, 2018, MidAmerican Energy was in compliance with all of its applicable long-term debt covenants.

In March 1999, MidAmerican Energy committed to the IUB to use commercially reasonable efforts to maintain an investment grade rating on its long-term debt and to maintain its common equity level above 42% of total capitalization unless circumstances beyond its control result in the common equity level decreasing to below 39% of total capitalization. MidAmerican Energy must seek the approval from the IUB of a reasonable utility capital structure if MidAmerican Energy's common equity level decreases below 42% of total capitalization, unless the decrease is beyond the control of MidAmerican Energy. MidAmerican Energy is also required to seek the approval of the IUB if MidAmerican Energy's equity level decreases to below 39%, even if the decrease is due to circumstances beyond the control of MidAmerican Energy. As of December 31, 2018, MidAmerican Energy's common equity ratio was 53% computed on a basis consistent with its commitment. As a result of its regulatory commitment to maintain its common equity level above certain thresholds, MidAmerican Energy could dividend $2.5 billion as of December 31, 2018, without falling below 42%.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Debt Instrument [Line Items]

Long-term Debt [Text Block]

Long-Term Debt

Refer to Note 8 of MidAmerican Energy's Notes to Financial Statements for detail and a discussion of its long-term debt. In addition to MidAmerican Energy's annual repayments of long-term debt, MidAmerican Funding has $239 million of 6.927% Senior Bonds due in 2029, with a carrying value of $240 million as of December 31, 2018 and 2017. In December 2017, MidAmerican Funding redeemed through a tender offer a portion of its 6.927% Senior Bonds. A charge of $29 million for the total premium is included in other income (expense) on the Consolidated Statement of Operations.

MidAmerican Funding parent company long-term debt is secured by a pledge of the common stock of MHC. See Item 15(c) for the Consolidated Financial Statements of MHC Inc. and subsidiaries. The bonds are the direct senior secured obligations of MidAmerican Funding and effectively rank junior to all indebtedness and other liabilities of the direct and indirect subsidiaries of MidAmerican Funding, to the extent of the assets of these subsidiaries. MidAmerican Funding may redeem the bonds in whole or in part at any time at a redemption price equal to the sum of any accrued and unpaid interest to the date of redemption and the greater of (1) 100% of the principal amount of the bonds or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the bonds, discounted to the date of redemption on a semiannual basis at the treasury yield plus 25 basis points.

Subsidiaries of MidAmerican Funding must make payments on their own indebtedness before making distributions to MidAmerican Funding. Refer to Note 8 of MidAmerican Energy's Notes to Financial Statements for a discussion of utility regulatory restrictions affecting distributions from MidAmerican Energy. As a result of the utility regulatory restrictions agreed to by MidAmerican Energy in March 1999, MidAmerican Funding had restricted net assets of $3.9 billion as of December 31, 2018.

As of December 31, 2018, MidAmerican Funding was in compliance with all of its applicable long-term debt covenants.

Each of MidAmerican Funding's direct or indirect subsidiaries is organized as a legal entity separate and apart from MidAmerican Funding and its other subsidiaries. It should not be assumed that any asset of any subsidiary of MidAmerican Funding will be available to satisfy the obligations of MidAmerican Funding or any of its other subsidiaries; provided, however, that unrestricted cash or other assets which are available for distribution may, subject to applicable law and the terms of financing arrangements of such parties, be advanced, loaned, paid as dividends or otherwise distributed or contributed to MidAmerican Funding, one of its subsidiaries or affiliates thereof.

Nevada Power Company [Member]

Debt Instrument [Line Items]

Debt Disclosure [Text Block]

Long-Term Debt and Financial and Capital Lease Obligations

Nevada Power's long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
General and refunding mortgage securities:
6.500% Series O, due 2018	$	—	$	—	$	324
6.500% Series S, due 2018	—		—		499
7.125% Series V, due 2019	500		500		499
6.650% Series N, due 2036	367		358		357
6.750% Series R, due 2037	349		346		346
5.375% Series X, due 2040	250		247		247
5.450% Series Y, due 2041	250		236		236
2.750%, Series BB, due 2020	575		574		—
Tax-exempt refunding revenue bond obligations:
Fixed-rate series:
1.800% Pollution Control Bonds Series 2017A, due 2032⁽¹⁾	40		40		40
1.600% Pollution Control Bonds Series 2017, due 2036⁽¹⁾	40		39		39
1.600% Pollution Control Bonds Series 2017B, due 2039⁽¹⁾	13		13		13
Capital and financial lease obligations - 2.750% to 11.600%, due through 2054	463		463		475
Total long-term debt and financial and capital leases	$	2,847	$	2,816	$	3,075

Reflected as:
Current portion of long-term debt and financial and capital lease obligations			$	520	$	842
Long-term debt and financial and capital lease obligations			2,296		2,233
Total long-term debt and financial and capital leases			$	2,816	$	3,075


(1)	Subject to mandatory purchase by Nevada Power in May 2020 at which date the interest rate may be adjusted from time to time.

Annual Payment on Long-Term Debt and Financial and Capital Leases

The annual repayments of long-term debt and capital and financial leases for the years beginning January 1, 2019 and thereafter, are as follows (in millions):



	Long-term			Capital and Financial
	Debt			Lease Obligations			Total

2019	$	500		$	78		$	578
2020	575			77			652
2021	—			80			80
2022	—			76			76
2023	—			52			52
Thereafter	1,309			709			2,018
Total	2,384			1,072			3,456
Unamortized premium, discount and debt issuance cost	(31		)	—			(31		)
Executory costs	—			(74		)	(74		)
Amounts representing interest	—			(535		)	(535		)
Total	$	2,353		$	463		$	2,816

In January 2019, Nevada Power issued $500 million of its 3.70% General and Refunding Mortgage Notes, Series CC, due May 2029.

The issuance of General and Refunding Mortgage Securities by Nevada Power is subject to PUCN approval and is limited by available property and other provisions of the mortgage indentures. As of December 31, 2018, approximately $8.5 billion (based on original cost) of Nevada Power's property was subject to the liens of the mortgages.

Financial and Capital Lease Obligations

•

In 1984, Nevada Power entered into a 30-year capital lease for the Pearson Building with five, five-year renewal options beginning in year 2015. In February 2010, Nevada Power amended this capital lease agreement to include the lease of the adjoining parking lot and to exercise three of the five-year renewal options beginning in year 2015. There remain two additional renewal options which could extend the lease an additional ten years. Capital assets of $23 million and $24 million were included in property, plant and equipment, net as of December 31, 2018 and 2017, respectively.

•

In 2007, Nevada Power entered into a 20-year lease, with three 10-year renewal options, to occupy land and building for its Beltway Complex operations center in southern Nevada. Nevada Power accounts for the building portion of the lease as a capital lease and the land portion of the lease as an operating lease. Nevada Power transferred operations to the facilities in June 2009. Capital assets of $6 million were included in property, plant and equipment, net as of December 31, 2018 and 2017.

•

Nevada Power has long-term energy purchase contracts which qualify as capital leases. The leases were entered into between the years 1989 and 1990 and became commercially operable through 1993. The terms of the leases are for 30 years and expire between the years 2022-2023. Capital assets of $30 million and $34 million were included in property, plant and equipment, net as of December 31, 2018 and 2017, respectively.


•	Nevada Power has master leasing agreements of which various pieces of equipment qualify as capital leases. The remaining equipment is treated as operating leases. Lease terms under the master lease agreement are typically five to seven years. Capital assets of $6 million and $3 million were included in property, plant and equipment, net as of December 31, 2018 and 2017, respectively.

•

ON Line was placed in-service on December 31, 2013. The Nevada Utilities entered into a long-term transmission use agreement, in which the Nevada Utilities have 25% interest and Great Basin Transmission South, LLC has 75% interest. Refer to Note 4 for additional information. The Nevada Utilities' share of the long-term transmission use agreement and ownership interest is split at 95% for Nevada Power and 5% for Sierra Pacific. The term is for 41 years with the agreement ending December 31, 2054. Payments began on January 31, 2014. ON Line assets of $387 million and $396 million were included in property, plant and equipment, net as of December 31, 2018 and 2017, respectively.

Sierra Pacific Power Company [Member]

Debt Instrument [Line Items]

Debt Disclosure [Text Block]

Long-Term Debt and Financial and Capital Lease Obligations

Sierra Pacific's long-term debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (dollars in millions):



	Par Value		2018		2017
General and refunding mortgage securities:
3.375% Series T, due 2023	$	250	$	249	$	248
2.600% Series U, due 2026	400		396		396
6.750% Series P, due 2037	252		255		255
Tax-exempt refunding revenue bond obligations:
Fixed-rate series:
1.250% Pollution Control Series 2016A, due 2029⁽¹⁾	20		20		20
1.500% Gas Facilities Series 2016A, due 2031⁽¹⁾	59		58		58
3.000% Gas and Water Series 2016B, due 2036⁽²⁾	60		62		63
Variable-rate series (2018 - 1.750% to 1.820%, 2017 - 1.690% to 1.840%):
Water Facilities Series 2016C, due 2036	30		30		30
Water Facilities Series 2016D, due 2036	25		25		25
Water Facilities Series 2016E, due 2036	25		25		25
Capital and financial lease obligations - 2.700% to 10.297%, due through 2054	38		38		34
Total long-term debt and financial and capital leases	$	1,159	$	1,158	$	1,154

Reflected as:
Current portion of long-term debt and financial and capital lease obligations			$	3	$	2
Long-term debt and financial and capital lease obligations			1,155		1,152
Total long-term debt and financial and capital leases			$	1,158	$	1,154


(1)	Subject to mandatory purchase by Sierra Pacific in June 2019 at which date the interest rate may be adjusted from time to time.


(2)	Subject to mandatory purchase by Sierra Pacific in June 2022 at which date the interest rate may be adjusted from time to time.

Annual Payment on Long-Term Debt and Financial and Capital Leases

The annual repayments of long-term debt and capital and financial leases for the years beginning January 1, 2019 and thereafter, are as follows (in millions):



	Long-term			Capital and Financial
	Debt			Lease Obligations			Total

2019	$	—		$	6		$	6
2020	—			4			4
2021	—			5			5
2022	—			4			4
2023	250			4			254
Thereafter	871			47			918
Total	1,121			70			1,191
Unamortized premium, discount and debt issuance cost	(1		)	—			(1		)
Amounts representing interest	—			(32		)	(32		)
Total	$	1,120		$	38		$	1,158

The issuance of General and Refunding Mortgage Securities by Sierra Pacific is subject to PUCN approval and is limited by available property and other provisions of the mortgage indentures. As of December 31, 2018, approximately $4.1 billion (based on original cost) of Sierra Pacific's property was subject to the liens of the mortgages.

Financial and Capital Lease Obligations


•	Sierra Pacific has master leasing agreements of which various pieces of equipment qualify as capital leases. The remaining equipment is treated as operating leases. Lease terms under the master lease agreement are typically five to seven years. Capital assets of $8 million and $3 million were included in property, plant and equipment, net as of December 31, 2018 and 2017.

•

ON Line was placed in-service on December 31, 2013. The Nevada Utilities entered into a long-term transmission use agreement, in which the Nevada Utilities have 25% interest and Great Basin Transmission South, LLC has 75% interest. Refer to Note 4 for additional information. The Nevada Utilities share of the long-term transmission use agreement and ownership interest is split at 5% for Sierra Pacific and 95% for Nevada Power. The term is for 41 years with the agreement ending December 31, 2054. Payments began on January 31, 2014. ON Line assets of $20 million and $21 million were included in property, plant and equipment, net as of December 31, 2018 and 2017.


•	In 2015, Sierra Pacific entered into a 20-year capital lease for the Fort Churchill Solar Array. Capital assets of $9 million were included in property, plant and equipment, net as of December 31, 2018 and 2017.