Income Taxes

12 Months Ended

Dec. 31, 2022

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway. As of December 31, 2022, the Company had a current income tax payable to Berkshire Hathaway for federal income tax of $113 million. As of December 31, 2021, the Company had a current income tax receivable from Berkshire Hathaway for federal income tax of $324 million and a long-term income tax receivable from Berkshire Hathaway, reflected as a component of BHE's shareholders' equity, of $744 million for Iowa state income tax. Additionally, for the year ended December 31, 2021 the Company generated $100 million of Iowa state net operating losses which were carried forward and increased the long-term income tax receivable from Berkshire Hathaway. In July 2022, the Company amended its tax allocation agreement with Berkshire Hathaway, which changed how state tax attributes will be settled with respect to state income tax returns that Berkshire Hathaway includes the Company. As a result, the Company no longer expects to receive the cash benefits from the state of Iowa net operating loss carryforward previously recorded as a long-term income tax receivable from Berkshire Hathaway as a component of BHE's shareholders' equity, and recognized a noncash distribution of $744 million to retained earnings.

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(1,463)	$	(1,701)	$	(1,537)
State	(65)		(177)		(121)
Foreign	79		100		86
	(1,449)		(1,778)		(1,572)
Deferred:
Federal	(408)		1,037		1,438
State	(49)		(476)		424
Foreign	(5)		89		21
	(462)		650		1,883
Investment tax credits	(5)		(4)		(3)
Total	$	(1,916)	$	(1,132)	$	308

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax (benefit) expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(124)		(27)		(16)
Effects of ratemaking	(16)		(4)		(3)
State income tax, net of federal income tax benefit	(6)		(10)		3
Non-controlling interest	(6)		(2)		—
Income tax effect of foreign income	(4)		1		—
Equity loss	(3)		(1)		—
Other, net	2		1		(1)
Effective income tax rate	(136)	%	(21)	%	4	%

Income tax credits relate primarily to production tax credits ("PTC") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2022, 2021 and 2020 totaled $1.7 billion, $1.4 billion, and $1.2 billion, respectively.

Income tax effect on foreign income includes, among other items, a deferred income tax charge of $105 million in 2021, related to the United Kingdom's corporate income tax rate. The United Kingdom's rate is scheduled to increase from 19% to 25%, effective April 1, 2023, through legislation enacted in June 2021. The United Kingdom's rate was scheduled to decrease from 19% to 17% effective April 1, 2020; however, the rate was maintained at 19% through amended legislation enacted in July 2020.

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	1,323	$	1,349
Federal, state and foreign carryforwards	812		820
AROs	283		304
Other	741		686
Total deferred income tax assets	3,159		3,159
Valuation allowances	(187)		(164)
Total deferred income tax assets, net	2,972		2,995
Deferred income tax liabilities:
Property-related items	(12,244)		(11,814)
Investments	(1,998)		(2,877)
Regulatory assets	(898)		(764)
Other	(510)		(478)
Total deferred income tax liabilities	(15,650)		(15,933)
Net deferred income tax liability	$	(12,678)	$	(12,938)

The following table provides, without regard to valuation allowances, the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2022 (in millions):

	Federal		State		Foreign		Total
Net operating loss carryforwards(1)	$	192	$	9,653	$	725	$	10,570
Deferred income taxes on net operating loss carryforwards	41		562		166		769
Expiration dates	2023 - indefinite		2023 - indefinite		2028 - 2042
Tax credits	$	15	$	28	$	—	$	43
Expiration dates	2023 - 2034		2023 - indefinite

(1)The federal net operating loss carryforwards relate principally to net operating loss carryforwards of subsidiaries that are tax residents in both the U.S. and the United Kingdom. The federal net operating loss carryforwards were generated prior to Berkshire Hathaway Inc.'s ownership and began to expire in 2022.

The U.S. Internal Revenue Service has closed or effectively settled its examination of the Company's income tax returns through December 31, 2013. The statute of limitations for the Company's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2018, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of the Company's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	97	$	153
Additions based on tax positions related to the current year	15		24
Additions for tax positions of prior years	—		13
Reductions based on tax positions related to the current year	(12)		(19)
Reductions for tax positions of prior years	(23)		(83)
Settlements	—		(1)
Interest and penalties	(9)		10
Ending balance	$	68	$	97

As of December 31, 2022 and 2021, the Company had unrecognized tax benefits totaling $79 million and $100 million, respectively, that if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect the Company's effective income tax rate.

PAC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(216)	$	(150)	$	19
State	(3)		7		30
Total	(219)		(143)		49
Deferred:
Federal	90		26		(124)
State	71		40		1
Total	161		66		(123)
Investment tax credits	(4)		(2)		(1)
Total income tax (benefit) expense	$	(62)	$	(79)	$	(75)

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 for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income taxes, net of federal income tax benefit	3		3		3
Effects of ratemaking	(12)		(14)		(22)
Federal income tax credits	(22)		(20)		(13)
Valuation allowance	2		—		—
Other	1		—		—
Effective income tax rate	(7)	%	(10)	%	(11)	%

Income tax credits relate primarily to production tax credits ("PTC") earned by PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs 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. PTCs for the years ended December 31, 2022, 2021 and 2020 totaled $185 million, $164 million and $89 million, respectively.

Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes. Excess deferred income tax amortization, net of deferrals, was $102 million for 2022. Excess deferred income tax amortization, net of deferrals, was $112 million for 2021, including the use of $4 million to amortize certain regulatory balances in Wyoming and Idaho. Excess deferred income tax amortization, net of deferrals, was $132 million for 2020, including the use of $118 million to accelerate depreciation of certain retired equipment and to amortize certain regulatory balances in Idaho, Oregon and Utah.

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	724	$	682
Employee benefits	59		68
State carryforwards	73		73
Loss contingencies	107		63
Asset retirement obligations	79		73
Other	80		88
Total deferred income tax assets	1,122		1,047
Valuation allowances	(35)		(15)
Total deferred income tax assets, net	1,087		1,032
Deferred income tax liabilities:
Property, plant and equipment	(3,612)		(3,468)
Regulatory assets	(462)		(332)
Other	(165)		(79)
Total deferred income tax liabilities	(4,239)		(3,879)
Net deferred income tax liability	$	(3,152)	$	(2,847)

The following table provides, without regard to valuation allowances, PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2022 (in millions):

	State
Net operating loss carryforwards	$	1,159
Deferred income taxes on net operating loss carryforwards	$	53
Expiration dates	2023 - indefinite
Tax credit carryforwards	$	20
Expiration dates	2023 - indefinite

The U.S. Internal Revenue Service has closed or effectively settled its examination of PacifiCorp's income tax returns through December 31, 2013. The statute of limitations for PacifiCorp's income tax returns have expired for certain states through December 31, 2011, and for Idaho through December 31, 2018, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

MEC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

MidAmerican Energy's income tax benefit consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(769)	$	(736)	$	(684)
State	(34)		(92)		(94)
	(803)		(828)		(778)
Deferred:
Federal	77		189		201
State	(43)		(35)		8
	34		154		209
Investment tax credits	(1)		(1)		(1)
Total	$	(770)	$	(675)	$	(570)

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 for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(372)		(262)		(199)
State income tax, net of federal income tax benefit	(32)		(46)		(27)
Effects of ratemaking	(23)		(20)		(17)
Other, net	3		(1)		(1)
Effective income tax rate	(403)	%	(308)	%	(223)	%

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2022, 2021 and 2020 totaled $710 million, $574 million and $510 million, respectively.

MidAmerican Energy's net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	194	$	240
Asset retirement obligations	191		220
Revenue sharing	87		33
State carryforwards	61		55
Employee benefits	37		26
Other	24		(3)
Total deferred income tax assets	594		571
Valuation allowances	(2)		(1)
Total deferred income tax assets, net	592		570
Deferred income tax liabilities:
Depreciable property	(3,895)		(3,843)
Regulatory assets	(128)		(112)
Other	(2)		(4)
Total deferred income tax liabilities	(4,025)		(3,959)
Net deferred income tax liability	$	(3,433)	$	(3,389)

As of December 31, 2022, MidAmerican Energy's state tax carryforwards, principally related to $921 million of net operating losses, expire at various intervals between 2023 and 2041.

The U.S. Internal Revenue Service has closed or effectively settled its examination of MidAmerican Energy's income tax returns through December 31, 2013. The statute of limitations for MidAmerican Energy's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2018, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of MidAmerican Energy's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	13	$	8
Additions based on tax positions related to the current year	15		16
Reductions based on tax positions related to the current year	(12)		(11)
Ending balance	$	16	$	13

As of December 31, 2022, MidAmerican Energy had unrecognized tax benefits totaling $39 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Energy's effective income tax rate.

MidAmerican Funding, LLC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

MidAmerican Funding's income tax benefit consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(773)	$	(739)	$	(689)
State	(36)		(94)		(96)
	(809)		(833)		(785)
Deferred:
Federal	77		189		204
State	(43)		(35)		8
	34		154		212
Investment tax credits	(1)		(1)		(1)
Total	$	(776)	$	(680)	$	(574)

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 for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(416)		(283)		(209)
State income tax, net of federal income tax benefit	(36)		(50)		(29)
Effects of ratemaking	(26)		(21)		(17)
Other, net	3		(2)		(1)
Effective income tax rate	(454)	%	(335)	%	(235)	%

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2022, 2021 and 2020 totaled $710 million, $574 million and $510 million, respectively.

MidAmerican Funding's net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	194	$	240
Asset retirement obligations	192		220
Revenue sharing	87		33
State carryforwards	61		55
Employee benefits	37		26
Other	24		(3)
Total deferred income tax assets	595		571
Valuation allowances	(2)		(1)
Total deferred income tax assets, net	593		570
Deferred income tax liabilities:
Depreciable property	(3,895)		(3,843)
Regulatory assets	(128)		(112)
Other	(1)		(2)
Total deferred income tax liabilities	(4,024)		(3,957)
Net deferred income tax liability	$	(3,431)	$	(3,387)

As of December 31, 2022, MidAmerican Funding's state tax carryforwards, principally related to $921 million of net operating losses, expire at various intervals between 2023 and 2041.

The U.S. Internal Revenue Service has closed or effectively settled its examination MidAmerican Funding's income tax returns through December 31, 2013. The statute of limitations for MidAmerican Funding's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2018, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of MidAmerican Funding's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	13	$	8
Additions based on tax positions related to the current year	15		16
Reductions based on tax positions related to the current year	(12)		(11)
Ending balance	$	16	$	13

As of December 31, 2022, MidAmerican Funding had unrecognized tax benefits totaling $39 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Funding's effective income tax rate.

NPC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

Income tax expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current – Federal	$	(13)	$	37	$	57
Deferred – Federal	49		—		(10)
Total income tax expense	$	36	$	37	$	47

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 for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(11)		(11)		(8)
Other	1		1		1
Effective income tax rate	11	%	11	%	14	%

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	186	$	195
Operating and finance leases	68		73
Customer advances	27		25
Unamortized contract value	20		25
Other	9		8
Total deferred income tax assets	310		326
Deferred income tax liabilities:
Property related items	(821)		(800)
Regulatory assets	(273)		(204)
Operating and finance leases	(65)		(70)
Other	(26)		(34)
Total deferred income tax liabilities	(1,185)		(1,108)
Net deferred income tax liability	$	(875)	$	(782)

The U.S. Internal Revenue Service has closed or effectively settled its examination of Nevada Power's income tax return through the short year ended December 31, 2013. The closure of examinations, or the expiration of the statute of limitations, may not preclude the U.S. Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

SPPC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

Income tax expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current – Federal	$	(12)	$	5	$	3
Deferred – Federal	31		13		12
Total income tax expense	$	19	$	18	$	15

A reconciliation of the federal statutory income rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(7)		(8)		(9)
Effective income tax rate	14	%	13	%	12	%

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	63	$	64
Operating and finance leases	26		27
Customer advances	17		14
Unamortized contract value	6		8
Other	6		6
Total deferred income tax assets	118		119
Deferred income tax liabilities:
Property related items	(387)		(379)
Regulatory assets	(135)		(94)
Operating and finance leases	(25)		(27)
Other	(16)		(21)
Total deferred income tax liabilities	(563)		(521)
Net deferred income tax liability	$	(445)	$	(402)

The U.S. Internal Revenue Service has closed or effectively settled its examination of Sierra Pacific's income tax return through the short year ended December 31, 2013. The closure of examinations, or the expiration of the statute of limitations, may not preclude the U.S. Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

EEGH

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	12	$	(47)	$	(20)
State	29		(21)		1
	41		(68)		(19)
Deferred:
Federal	88		129		23
State	38		56		(28)
	126		185		(5)
Total	$	167	$	117	$	(24)

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	6		3		(13)
Equity interest	2		1		4
Effects of ratemaking	(1)		1		(2)
Change in tax status	—		—		(9)
AFUDC-equity	—		—		(1)
Noncontrolling interest	(10)		(11)		(16)
Write-off of regulatory assets	—		—		3
Other, net	—		1		1
Effective income tax rate	18	%	16	%	(12)	%

For the year ended December 31, 2022, Eastern Energy Gas' reconciliation of the federal statutory income tax rate to the effective income tax rate is driven primarily by the absence of tax on noncontrolling interest.

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Federal and state carryforwards	$	23	$	7
Employee benefits	22		33
Intangibles	112		150
Derivatives and hedges	16		16
Other	7		9
Total deferred income tax assets	180		215
Deferred income tax liabilities:
Property related items	(214)		(129)
Partnership investments	(51)		(49)
Debt exchange	(53)		(60)
Deferred state income taxes	(4)		(16)
Other	(12)		(16)
Total deferred income tax liabilities	(334)		(270)
Net deferred income tax liability(1)	$	(154)	$	(55)

(1)Net deferred income tax liability, as of both December 31, 2022 and 2021, is presented in other assets and other long-term liabilities in the Consolidated Balance Sheet.

As of December 31, 2022, Eastern Energy Gas' state tax carryforwards, entirely related to $23 million of net operating losses, expire at various intervals between 2036 and indefinite.

Through October 31, 2020, Eastern Energy Gas was included in DEI's consolidated federal income tax return and, where applicable, combined state income tax returns. As a result of the GT&S Transaction, DEI retained the rights and obligations of Eastern Energy Gas' federal and state income tax returns through October 31, 2020. The U.S. Internal Revenue Service has not closed or effectively settled an examination of Eastern Energy Gas' income tax returns for any tax years beginning on or after November 1, 2020. The statute of limitations for Eastern Energy Gas' states remains open for periods beginning on or after November 1, 2020. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

EGTS

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

Income Taxes

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	5	$	(22)	$	48
State	12		(10)		6
	17		(32)		54
Deferred:
Federal	64		67		(93)
State	28		26		(28)
	92		93		(121)
Total	$	109	$	61	$	(67)

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	9		8		7
Effects of ratemaking	—		—		2
AFUDC-equity	—		—		1
Write-off of regulatory assets	—		—		(3)
Other, net	(1)		(1)		(1)
Effective income tax rate	29	%	28	%	27	%

The net deferred income tax asset consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Federal and state carryforwards	$	6	$	—
Employee benefits	22		31
Intangibles and goodwill	265		298
Derivatives and hedges	11		12
Other	4		4
Total deferred income tax assets	308		345
Deferred income tax liabilities:
Property related items	(146)		(77)
Debt exchange	(53)		(60)
Employee benefits	(4)		(9)
Total deferred income tax liabilities	(203)		(146)
Net deferred income tax asset(1)	$	105	$	199

(1)Net deferred income tax asset, as of both December 31, 2022 and 2021, is presented in other assets in the Consolidated Balance Sheet.

As of December 31, 2022, EGTS' state tax carryforwards, entirely related to $6 million of net operating losses, expire at various intervals between 2036 and indefinite.

Through October 31, 2020, EGTS was included in DEI's consolidated federal income tax return and, where applicable, combined state income tax returns. As a result of the GT&S Transaction, DEI retained the rights and obligations of EGTS' federal and state income tax returns through October 31, 2020. The U.S. Internal Revenue Service has not closed or effectively settled an examination of EGTS' income tax returns for any tax years beginning on or after November 1, 2020. The statute of limitations for EGTS' states remains open for periods beginning on or after November 1, 2020. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.