Regulatory Matters

12 Months Ended

Dec. 31, 2023

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. The Company's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Deferred net power costs	2 years	$	1,769	$	1,478
Asset retirement obligations	17 years	930		835
Deferred income taxes(1)	Various	435		373
Employee benefit plans(2)	14 years	414		490
Demand side management	10 years	245		224
Unrealized losses on regulated derivative contracts	1 year	173		112
Levelized depreciation	28 years	167		151
Cost of removal	26 years	143		—
Environmental costs	30 years	139		111
Asset disposition costs	Various	135		231
Wildfire mitigation and vegetation management costs	Various	114		111
Other	Various	901		946
Total regulatory assets		$	5,565	$	5,062
Reflected as:
Current assets		$	1,398	$	1,319
Noncurrent assets		4,167		3,743
Total regulatory assets		$	5,565	$	5,062

(1)Amounts primarily represent income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Includes amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

The Company had regulatory assets not earning a return on investment of $3.2 billion and $2.3 billion as of December 31, 2023 and 2022, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. The Company's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Cost of removal(1)	26 years	$	2,741	$	2,578
Deferred income taxes(2)	Various	2,733		2,901
Asset retirement obligations	30 years	364		250
Revenue sharing mechanisms	Various	243		426
Levelized depreciation	27 years	230		245
Employee benefit plans(3)	Various	211		180
Unrealized gains on regulated derivative contracts	1 year	7		343
Other	Various	289		446
Total regulatory liabilities		$	6,818	$	7,369
Reflected as:
Current liabilities		$	174	$	299
Noncurrent liabilities		6,644		7,070
Total regulatory liabilities		$	6,818	$	7,369

(1)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)Amounts primarily represent income tax liabilities related to the 2017 federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(3)Includes amounts not yet recognized as a component of net periodic benefit cost that are expected to be returned to customers in future periods when recognized.

PAC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. PacifiCorp's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining
	Life	2023		2022
Employee benefit plans(1)	16 years	$	279	$	290
Utah mine disposition(2)	Various	79		115
Deferred net power costs	2 years	1,117		546
Unrealized loss on derivative contracts	1 year	76		—
Environmental costs	30 years	139		111
Asset retirement obligation	28 years	300		275
Demand side management (DSM)	10 years	245		224
Wildfire mitigation and vegetation management costs	Various	114		111
Other	Various	224		208
Total regulatory assets		$	2,573	$	1,880
Reflected as:
Current assets		$	631	$	275
Noncurrent assets		1,942		1,605
Total regulatory assets		$	2,573	$	1,880

(1)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in rates when recognized.

(2)Amounts represent regulatory assets established as a result of the Utah mine disposition in 2015 for the United Mine Workers of America ("UMWA") 1974 Pension Plan withdrawal and closure costs incurred to date considered probable of recovery. Refer to Note 10 for additional information.

PacifiCorp had regulatory assets not earning a return on investment of $1,852 million and $1,200 million as of December 31, 2023 and 2022, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. PacifiCorp's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining
	Life	2023		2022
Cost of removal(1)	26 years	$	1,456	$	1,332
Deferred income taxes(2)	Various	1,006		1,164
Unrealized gain on regulated derivatives	N/A	—		270
Other	Various	148		173
Total regulatory liabilities		$	2,610	$	2,939
Reflected as:
Current liabilities		$	70	$	96
Noncurrent liabilities		2,540		2,843
Total regulatory liabilities		$	2,610	$	2,939

(1)Amounts represent estimated costs, as generally accrued through depreciation rates, of removing property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable of being passed on to customers, partially offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

MEC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. MidAmerican Energy's regulatory assets reflected on the Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Asset retirement obligations(1)	12 years	$	541	$	469
Employee benefit plans(2)	9 years	16		47
Unrealized loss on regulated derivative contracts	1 year	11		—
Other	Various	32		34
Total		$	600	$	550

(1)Amount predominantly relates to AROs for fossil-fueled and wind-powered generating facilities. Refer to Note 11 for a discussion of AROs.

(2)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

MidAmerican Energy had regulatory assets not earning a return on investment of $598 million and $548 million as of December 31, 2023 and 2022, respectively.

Regulatory Liabilities

Regulatory liabilities represent amounts expected to be returned to customers in future periods. MidAmerican Energy's regulatory liabilities reflected on the Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Cost of removal(1)	28 years	$	411	$	392
Asset retirement obligations(2)	30 years	360		247
Iowa electric revenue sharing(3)	Various	127		312
Deferred income taxes(4)	Various	102		72
Pre-funded AFUDC on transmission MVPs(5)	56 years	32		34
Employee benefit plans(6)	N/A	16		—
Unrealized gain on regulated derivative contracts	1 year	—		31
Other	Various	31		31
Total		$	1,079	$	1,119

(1)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing utility plant in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)Amount represents the excess of nuclear decommission trust assets over the related ARO. Refer to Note 11 for a discussion of AROs.

(3)Represents accruals associated with a regulatory arrangement in Iowa in which equity returns exceeding specified thresholds reduce utility plant and retail electric energy cost recoveries as required.

(4)Amounts primarily represent income tax liabilities primarily related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(5)Represents AFUDC accrued on transmission MVPs that is deducted from rate base as a result of the inclusion of related construction work-in-progress in rate base.

(6)Represents amounts not yet recognized as a component of net periodic benefit cost that are to be returned to customers in future periods when recognized.

MidAmerican Funding, LLC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Refer to Note 5 of MidAmerican Energy's Notes to Financial Statements.

NPC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Nevada Power's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Deferred energy costs	1 year	$	575	$	654
Merger costs from 1999 merger	21 years	100		105
Asset retirement obligations	7 years	69		69
Unrealized loss on regulated derivative contracts	1 year	68		75
Decommissioning costs	3 years	56		116
Deferred operating costs	18 years	41		67
Other	Various	176		208
Total regulatory assets		$	1,085	$	1,294
Reflected as:
Current assets		$	586	$	666
Noncurrent assets		499		628
Total regulatory assets		$	1,085	$	1,294

Nevada Power had regulatory assets not earning a return on investment of $299 million and $320 million as of December 31, 2023 and 2022, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, AROs, unrealized losses on regulated derivative contracts, deferred operating costs, losses on reacquired debt and a portion of the employee benefit plans

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Nevada Power's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Deferred income taxes(1)	Various	$	525	$	560
Cost of removal(2)	30 years	368		358
Earning sharing mechanism	3 years	115		114
Other	Various	52		106
Total regulatory liabilities		$	1,060	$	1,138
Reflected as:
Current liabilities		$	43	$	45
Noncurrent liabilities		1,017		1,093
Total regulatory liabilities		$	1,060	$	1,138

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices.

Deferred Energy

Nevada statutes permit regulated utilities to adopt deferred energy accounting procedures. The intent of these procedures is to ease the effect on customers of fluctuations in the cost of purchased natural gas, fuel and electricity and are subject to annual prudency review by the PUCN. Under deferred energy accounting, to the extent actual fuel and purchased power costs exceed fuel and purchased power costs recoverable through current rates that excess is not recorded as a current expense on the Consolidated Statements of Operations but rather is deferred and recorded as a regulatory asset on the Consolidated Balance Sheets and would be included in the table above as deferred energy costs. Conversely, a regulatory liability is recorded to the extent fuel and purchased power costs recoverable through current rates exceed actual fuel and purchased power costs and is included in the table above as deferred energy costs. These excess amounts are reflected in quarterly adjustments to rates and recorded as cost of fuel, energy and capacity in future time periods.

Regulatory Rate Review

In June 2023, Nevada Power filed a regulatory rate review with the PUCN that requested an annual revenue increase of $93 million, or 3.3%. In addition, a filing was made to revise depreciation rates based on a study, the results of which are reflected in the proposed revenue requirement. In August, 2023, Nevada Power filed an updated certification filing that requested an annual revenue increase of $96 million, or 3.3%. Parties to the review filed testimony and evidence in August and September 2023. Hearings in the cost of capital, revenue requirement and rate design phases were held in October and November 2023. In December 2023, the PUCN issued an order approving an increase in base rates of $37 million, effective January 1, 2024, reflecting a reduction in Nevada Power's requested rate of return and updated depreciation and amortization rates for its electric operations. In January 2024, Nevada Power filed a petition for reconsideration and clarification of the order. In February of 2024, the PUCN issued a final order approving in part and denying in part the petition for reconsideration.

SPPC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Sierra Pacific's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Natural disaster protection plan	1 year	$	78	$	69
Deferred energy costs	1 year	77		277
Merger costs from 1999 merger	23 years	60		63
Employee benefit plans (1)	8 years	48		57
Deferred operating costs	4 years	25		35
Other	Various	93		110
Total regulatory assets		$	381	$	611
Reflected as:
Current assets		$	161	$	357
Noncurrent assets		220		254
Total regulatory assets		$	381	$	611

(1)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

Sierra Pacific had regulatory assets not earning a return on investment of $132 million and $143 million as of December 31, 2023 and 2022, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, a portion of the employee benefit plans, unrealized losses on regulated derivative contracts, AROs and losses on reacquired debt.

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Sierra Pacific's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted
	Average
	Remaining Life	2023		2022
Deferred income taxes(1)	Various	$	206	$	223
Cost of removal(2)	31 years	211		200
Other	Various	22		32
Total regulatory liabilities		$	439	$	455
Reflected as:
Current liabilities		$	15	$	19
Noncurrent liabilities		424		436
Total regulatory liabilities		$	439	$	455

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices.

Deferred Energy

Nevada statutes permit regulated utilities to adopt deferred energy accounting procedures. The intent of these procedures is to ease the effect on customers of fluctuations in the cost of purchased natural gas, fuel and electricity and are subject to annual prudency review by the PUCN. Under deferred energy accounting, to the extent actual fuel and purchased power costs exceed fuel and purchased power costs recoverable through current rates that excess is not recorded as a current expense on the Consolidated Statements of Operations but rather is deferred and recorded as a regulatory asset on the Consolidated Balance Sheets and would be included in the table above as deferred energy costs. Conversely, a regulatory liability is recorded to the extent fuel and purchased power costs recoverable through current rates exceed actual fuel and purchased power costs and is included in the table above as deferred energy costs. These excess amounts are reflected in quarterly adjustments to rates and recorded as cost of fuel, energy and capacity in future time periods.

Regulatory Rate Review

In February 2024, Sierra Pacific filed electric and gas regulatory rate reviews with the PUCN that requested annual revenue increases of $95 million, or 8.8% and $11 million, or 4.9%, respectively. Orders are expected by the third quarter of 2024 and, if approved, would be effective October 1, 2024.

EEGH

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. Eastern Energy Gas' regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted Average Remaining Life	2023		2022
Employee benefit plans(1)	11 years	$	33	$	32
Other	Various	21		16
Total regulatory assets		$	54	$	48
Reflected as:
Other current assets		$	9	$	8
Other assets		45		40
Total regulatory assets		$	54	$	48

(1)Represents costs expected to be recovered through future rates generally over the expected remaining service period of plan participants by certain rate-regulated subsidiaries.

Eastern Energy Gas had regulatory assets not earning a return on investment of $48 million and $44 million as of December 31, 2023 and 2022, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts expected to be returned to customers in future periods. Eastern Energy Gas' regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted Average Remaining Life	2023		2022
Income taxes refundable through future rates(1)	Various	$	425	$	406
Other postretirement benefit costs(2)	Various	124		123
Provision for rate refunds(3)		—		90
Cost of removal(4)	47 years	85		82
Other	Various	22		21
Total regulatory liabilities		$	656	$	722
Reflected as:
Current liabilities		$	33	$	126
Noncurrent liabilities		623		596
Total regulatory liabilities		$	656	$	722

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

(3)Reflects amounts refunded to customers in late February 2023 in connection with the EGTS rate case. See below for more information.

(4)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Refer to Note 11 for more information.

Regulatory Matters

Carolina Gas Transmission, LLC

In November 2023, Carolina Gas Transmission, LLC ("CGT") filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective January 1, 2024. CGT's current rates were established by a 2011 settlement. CGT proposed an annual cost-of-service of $167 million, and requested increases in various rates, including Zone 1 general system transportation rates by 84% and Zone 2 general system transportation rates by 23%. In December 2023, the FERC suspended the rate changes for five months following the proposed effective date, until June 1, 2024, subject to refund and the outcome of hearing procedures. This matter is pending.

Eastern Gas Transmission and Storage, Inc.

In September 2021, EGTS filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective November 1, 2021. EGTS proposed an annual cost-of-service of approximately $1.1 billion, and requested increases in various rates, including general system storage rates by 85% and general system transmission rates by 60%. In October 2021, the FERC issued an order that accepted the November 1, 2021 effective date for certain changes in rates, while suspending the other changes for five months following the proposed effective date, until April 1, 2022, subject to refund. In September 2022, a settlement agreement was filed with the FERC, which provided for increased service rates and decreased depreciation rates. Under the terms of the settlement agreement, EGTS' rates result in an increase to annual firm transmission and storage services revenues of approximately $160 million and a decrease in annual depreciation expense of approximately $30 million, compared to the rates in effect prior to April 1, 2022. EGTS' provision for rate refund for April 2022 through February 2023, including accrued interest, totaled $91 million. In November 2022, the FERC approved the settlement agreement and the rate refunds to customers were processed in late February 2023.

EGTS

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. EGTS' regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted Average Remaining Life	2023		2022
Employee benefit plans(1)	11 years	$	32	$	31
Other	Various	4		8
Total regulatory assets		$	36	$	39
Reflected as:
Other current assets		$	3	$	5
Other assets		33		34
Total regulatory assets		$	36	$	39

(1)Represents costs expected to be recovered through future rates generally over the expected remaining service period of plan participants.

EGTS had regulatory assets not earning a return on investment of $36 million and $39 million as of December 31, 2023 and 2022, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts expected to be returned to customers in future periods. EGTS' regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):

	Weighted Average Remaining Life	2023		2022
Income taxes refundable through future rates(1)	Various	$	377	$	382
Other postretirement benefit costs(2)	Various	124		123
Provision for rate refunds(3)		—		90
Cost of removal(4)	47 years	28		24
Other	Various	16		8
Total regulatory liabilities		$	545	$	627
Reflected as:
Current liabilities		$	22	$	109
Noncurrent liabilities		523		518
Total regulatory liabilities		$	545	$	627

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

(3)Reflects amounts refunded to customers in late February 2023 in connection with the EGTS rate case. See below for more information.

(4)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Refer to Note 11 for more information.

Regulatory Matters

In September 2021, EGTS filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective November 1, 2021. EGTS proposed an annual cost-of-service of approximately $1.1 billion, and requested increases in various rates, including general system storage rates by 85% and general system transmission rates by 60%. In October 2021, the FERC issued an order that accepted the November 1, 2021 effective date for certain changes in rates, while suspending the other changes for five months following the proposed effective date, until April 1, 2022, subject to refund. In September 2022, a settlement agreement was filed with the FERC, which provided for increased service rates and decreased depreciation rates. Under the terms of the settlement agreement, EGTS' rates result in an increase to annual firm transmission and storage services revenues of approximately $160 million and a decrease in annual depreciation expense of approximately $30 million, compared to the rates in effect prior to April 1, 2022. EGTS' provision for rate refund for April 2022 through February 2023, including accrued interest, totaled $91 million. In November 2022, the FERC approved the settlement agreement and the rate refunds to customers were processed in late February 2023.

In July 2017, the FERC audit staff communicated to EGTS that it had substantially completed an audit of EGTS' compliance with the accounting and reporting requirements of the FERC's Uniform System of Accounts and provided a description of matters and preliminary recommendations. In November 2017, the FERC audit staff issued its audit report. In December 2017, EGTS provided its response to the audit report. EGTS requested FERC review of the contested findings and submitted its plan for compliance with the uncontested portions of the report. EGTS reached resolution of certain matters with the FERC in the fourth quarter of 2018. EGTS recognized a charge for a disallowance of plant, originally established beginning in 2012, for the resolution of one matter with the FERC. In December 2020, the FERC issued a final ruling on the remaining matter, which resulted in a $43 million ($31 million after-tax) estimated charge for disallowance of capitalized AFUDC. As a condition of the December 2020 ruling, EGTS filed its proposed accounting entries and supporting documentation with the FERC during the second quarter of 2021. During the finalization of these entries, EGTS refined the estimated charge for disallowance of capitalized AFUDC, which resulted in a reduction to the estimated charge of $11 million ($8 million after-tax) that was recorded in disallowance and abandonment of utility plant on the Consolidated Statement of Operations in the second quarter of 2021. In September 2021, the FERC approved EGTS' accounting entries and supporting documentation.