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Related Party Transactions (Notes)

12 Months Ended

Dec. 31, 2020

Related-Party Transactions

PacifiCorp has an intercompany administrative services agreement and a mutual assistance agreement with BHE and its subsidiaries. Amounts charged to PacifiCorp by BHE and its subsidiaries under this agreement totaled $10 million, $10 million and $12 million during the years ended December 31, 2020, 2019 and 2018, respectively. Payables associated with these services were $5 million and $1 million as of December 31, 2020 and 2019, respectively. Amounts charged by PacifiCorp to BHE and its subsidiaries under this agreement totaled $4 million, $1 million and $2 million during the years ended December 31, 2020, 2019 and 2018, respectively.

In 2020, PacifiCorp acquired wind turbines from BHE Wind, LLC, an indirect wholly owned subsidiary of BHE, for $147 million. The wind turbines are being installed as part of newly constructed and repowered wind-powered generating facilities that are being placed in service through 2021.

PacifiCorp also engages in various transactions with several subsidiaries of BHE in the ordinary course of business. Services provided by these subsidiaries in the ordinary course of business and charged to PacifiCorp primarily relate to wholesale electricity purchases and transmission of electricity, transportation of natural gas and employee relocation services. These expenses totaled $6 million, $7 million and $8 million during the years ended December 31, 2020, 2019 and 2018, respectively.

PacifiCorp has long-term transportation contracts with BNSF Railway Company ("BNSF"), an indirect wholly owned subsidiary of Berkshire Hathaway, PacifiCorp's ultimate parent company. Transportation costs under these contracts were $29 million, $35 million and $33 million during the years ended December 31, 2020, 2019 and 2018, respectively.

PacifiCorp is party to a tax-sharing agreement and is part of the Berkshire Hathaway consolidated United States federal income tax return. Federal and state income taxes were $25 million receivable from BHE and $31 million payable to BHE, as of December 31, 2020 and 2019, respectively. For the years ended December 31, 2020, 2019 and 2018, cash paid for federal and state income taxes to BHE totaled $107 million, $171 million and $144 million, respectively.

PacifiCorp transacts with its equity investees, Bridger Coal and Trapper Mining Inc. Services provided by equity investees to PacifiCorp primarily relate to coal purchases. During the years ended December 31, 2020, 2019 and 2018, coal purchases from PacifiCorp's equity investees totaled $145 million, $155 million and $163 million, respectively. Payables to PacifiCorp's equity investees were $14 million and $12 million as of December 31, 2020 and 2019, respectively.

MidAmerican Energy Company [Member]

The companies identified as affiliates of MidAmerican Energy are Berkshire Hathaway and its subsidiaries, including BHE and its subsidiaries. The basis for the following transactions is provided for in service agreements between MidAmerican Energy and the affiliates.

MidAmerican Energy is reimbursed for charges incurred on behalf of its affiliates. The majority of these reimbursed expenses are for general costs, such as insurance and building rent, and for employee wages, benefits and costs related to corporate functions such as information technology, human resources, treasury, legal and accounting. The amount of such reimbursements was $47 million, $43 million and $51 million for 2020, 2019 and 2018, respectively. Additionally, in 2018, MidAmerican Energy received $15 million from BHE for the transfer of a corporate aircraft.

MidAmerican Energy reimbursed BHE in the amount of $15 million, $14 million and $11 million in 2020, 2019 and 2018, respectively, for its share of corporate expenses.

MidAmerican Energy purchases, in the normal course of business at either tariffed or market prices, natural gas transportation and storage capacity services from Northern Natural Gas Company, a wholly owned subsidiary of BHE, and coal transportation services from BNSF Railway Company, an indirect wholly owned subsidiary of Berkshire Hathaway. These purchases totaled $129 million, $139 million and $127 million in 2020, 2019 and 2018, respectively. Additionally, in 2020, MidAmerican Energy paid $7 million to BHE Renewables, LLC, a wholly owned subsidiary of BHE, for the purchase of wind turbine components.

MidAmerican Energy had accounts receivable from affiliates of $12 million and $6 million as of December 31, 2020 and 2019, respectively, that are included in other current assets on the Balance Sheets. MidAmerican Energy also had accounts payable to affiliates of $13 million and $11 million as of December 31, 2020 and 2019, respectively, that are included in accounts payable on the Balance Sheets.

MidAmerican Energy is party to a tax-sharing agreement and is part of the Berkshire Hathaway consolidated United States federal income tax return. For current federal and state income taxes, MidAmerican Energy had a payable to BHE of $14 million and $82 million as of December 31, 2020 and 2019, respectively. MidAmerican Energy received net cash receipts for federal and state income taxes from BHE totaling $709 million, $450 million and $494 million for the years ended December 31, 2020, 2019 and 2018, respectively.

MidAmerican Energy recognizes the full amount of the funded status for its pension and postretirement plans, and amounts attributable to MidAmerican Energy's affiliates that have not previously been recognized through income are recognized as an intercompany balance with such affiliates. MidAmerican Energy adjusts these balances when changes to the funded status of the respective plans are recognized and does not intend to settle the balances currently. Amounts receivable from affiliates attributable to the funded status of employee benefit plans totaled $146 million and $23 million as of December 31, 2020 and 2019, respectively, and are included in other assets on the Balance Sheets. Similar amounts payable to affiliates totaled $49 million and $47 million as of December 31, 2020 and 2019, respectively, and are included in other long-term liabilities on the Balance Sheets. See Note 10 for further information pertaining to pension and postretirement accounting.

MidAmerican Funding, LLC and Subsidiaries [Member]

The companies identified as affiliates of MidAmerican Funding are Berkshire Hathaway and its subsidiaries, including BHE and its subsidiaries. The basis for the following transactions is provided for in service agreements between MidAmerican Funding and the affiliates.

MidAmerican Funding is reimbursed for charges incurred on behalf of its affiliates. The majority of these reimbursed expenses are for allocated general costs, such as insurance and building rent, and for employee wages, benefits and costs for corporate functions, such as information technology, human resources, treasury, legal and accounting. The amount of such reimbursements was $46 million, $41 million and $44 million for 2020, 2019 and 2018, respectively. Additionally, in 2018, MidAmerican Funding received $15 million from BHE for the transfer of corporate aircraft owned by MidAmerican Energy and, in 2019, recorded a noncash dividend of $8 million for the transfer to BHE of corporate aircraft owned by MHC.

MidAmerican Funding reimbursed BHE in the amount of $15 million, $14 million and $11 million in 2020, 2019 and 2018, respectively, for its share of corporate expenses.

MidAmerican Energy purchases, in the normal course of business at either tariffed or market prices. natural gas transportation and storage capacity services from Northern Natural Gas Company, a wholly owned subsidiary of BHE and coal transportation services from BNSF Railway Company, a wholly-owned subsidiary of Berkshire Hathaway. These purchases totaled $129 million, $139 million and $127 million in 2020, 2019 and 2018, respectively. Additionally, in 2020, MidAmerican Energy paid $7 million to BHE Renewables, LLC, a wholly owned subsidiary of BHE, for the purchase of wind turbine components.

MHC has a $300 million revolving credit arrangement carrying interest at the 30-day London Interbank Offered Rate ("LIBOR") rate plus a spread to borrow from BHE. Outstanding balances are unsecured and due on demand. The outstanding balance was $177 million at an interest rate of 0.397% as of December 31, 2020, and $171 million at an interest rate of 1.944% as of December 31, 2019, and is reflected as note payable to affiliate on the Consolidated Balance Sheet.

BHE has a $100 million revolving credit arrangement, carrying interest at the 30-day LIBOR rate plus a spread to borrow from MHC. Outstanding balances are unsecured and due on demand. There were no borrowings outstanding throughout 2020 and 2019.

MidAmerican Funding had accounts receivable from affiliates of $13 million and $7 million as of December 31, 2020 and 2019, respectively, that are included in other current assets on the Consolidated Balance Sheets. MidAmerican Funding also had accounts payable to affiliates of $13 million and $11 million as of December 31, 2020 and 2019, respectively, that are included in accounts payable on the Consolidated Balance Sheets.

MidAmerican Funding is party to a tax-sharing agreement and is part of the Berkshire Hathaway consolidated United States federal income tax return. For current federal and state income taxes, MidAmerican Funding had a payable to BHE of $14 million and $83 million as of December 31, 2020 and 2019, respectively. MidAmerican Funding received net cash receipts for federal and state income taxes from BHE totaling $715 million, $456 million and $511 million for the years ended December 31, 2020, 2019 and 2018, respectively.

MidAmerican Funding recognizes the full amount of the funded status for its pension and postretirement plans, and amounts attributable to MidAmerican Funding's affiliates that have not previously been recognized through income are recognized as an intercompany balance with such affiliates. MidAmerican Funding adjusts these balances when changes to the funded status of the respective plans are recognized and does not intend to settle the balances currently. Amounts receivable from affiliates attributable to the funded status of employee benefit plans totaled $146 million and $23 million as of December 31, 2020 and 2019, respectively, and are included in other assets on the Consolidated Balance Sheets. Similar amounts payable to affiliates totaled $49 million and $47 million as of December 31, 2020 and 2019, respectively, and are included in other long-term liabilities on the Consolidated Balance Sheets. See Note 10 for further information pertaining to pension and postretirement accounting.

The indenture pertaining to MidAmerican Funding's long-term debt restricts MidAmerican Funding from paying a distribution on its equity securities, unless after making such distribution either its debt to total capital ratio does not exceed 0.67:1.0 and its interest coverage ratio is not less than 2.2:1.0 or its senior secured long-term debt rating is at least BBB or its equivalent. MidAmerican Funding may seek a release from this restriction upon delivery to the indenture trustee of written confirmation from the ratings agencies that without this restriction MidAmerican Funding's senior secured long-term debt would be rated at least BBB+.

Nevada Power Company [Member]

Related Party Transactions

Nevada Power has an intercompany administrative services agreement with BHE and its subsidiaries. Amounts charged to Nevada Power under this agreement totaled $2 million for the years ended December 31, 2020, 2019 and 2018.

Kern River Gas Transmission Company, an indirect subsidiary of BHE, provided natural gas transportation and other services to Nevada Power of $52 million, $52 million and $58 million for the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020 and 2019, Nevada Power's Consolidated Balance Sheets included amounts due to Kern River Gas Transmission Company of $4 million.

Nevada Power provided electricity and other services to PacifiCorp, an indirect subsidiary of BHE, of $3 million, $2 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Receivables associated with these services were $— million as of December 31, 2020 and 2019. PacifiCorp provided electricity and the sale of renewable energy credits to Nevada Power of $1 million for the year ended December 31, 2020 and $— million for the years ended December 31, 2019 and 2018. Payables associated with these transactions were $— million as of December 31, 2020 and 2019.

Nevada Power provided electricity to Sierra Pacific of $106 million, $84 million and $91 million for the years ended December 31, 2020, 2019 and 2018, respectively. Receivables associated with these transactions were $13 million and $5 million as of December 31, 2020 and 2019, respectively. Nevada Power purchased electricity from Sierra Pacific of $34 million, $25 million and $28 million for the years ended December 31, 2020, 2019 and 2018, respectively. Payables associated with these transactions were $1 million as of December 31, 2020 and 2019.

Nevada Power incurs intercompany administrative and shared facility costs with NV Energy and Sierra Pacific. These transactions are governed by an intercompany service agreement and are priced at cost. Nevada Power provided services to NV Energy of $— million, $— million and $1 million for each of the years ending December 31, 2020, 2019 and 2018, respectively. NV Energy provided services to Nevada Power of $9 million, $9 million and $7 million for the years ending December 31, 2020, 2019 and 2018, respectively. Nevada Power provided services to Sierra Pacific of $26 million, $26 million and $28 million for the years ended December 31, 2020, 2019 and 2018, respectively. Sierra Pacific provided services to Nevada Power of $15 million, $14 million and $15 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, Nevada Power's Consolidated Balance Sheets included amounts due to NV Energy of $28 million and $26 million, respectively. There were no receivables due from NV Energy as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, Nevada Power's Consolidated Balance Sheets included receivables due from Sierra Pacific of $2 million and $3 million, respectively. There were no payables due to Sierra Pacific as of December 31, 2020 and 2019.

Nevada Power is party to a tax-sharing agreement with NV Energy and NV Energy is part of the Berkshire Hathaway consolidated United States federal income tax return. As of December 31, 2020 and 2019 federal income taxes receivable from NV Energy were $— million and $7 million, respectively Nevada Power made cash payments of $50 million, $113 million and $117 million for federal income taxes for the years ended December 31, 2020, 2019 and 2018, respectively.

Certain disbursements for accounts payable and payroll are made by NV Energy on behalf of Nevada Power and reimbursed automatically when settled by the bank. These amounts are recorded as accounts payable at the time of disbursement.

Sierra Pacific Power Company [Member]

Related Party Transactions

Sierra Pacific has an intercompany administrative services agreement with BHE and its subsidiaries. Amounts charged to Sierra Pacific under this agreement totaled $1 million for the years ended December 31, 2020, 2019 and 2018.

Sierra Pacific provided electricity to Nevada Power of $34 million, $25 million and $28 million for the years ended December 31, 2020, 2019 and 2018, respectively. Receivables associated with these transactions were $1 million as of December 31, 2020 and 2019. Sierra Pacific purchased electricity from Nevada Power of $106 million, $84 million and $91 million for the years ended December 31, 2020, 2019 and 2018, respectively. Payables associated with these transactions were $13 million and $5 million as of December 31, 2020 and 2019, respectively.

Sierra Pacific incurs intercompany administrative and shared facility costs with NV Energy and Nevada Power. These transactions are governed by an intercompany service agreement and are priced at cost. NV Energy provided services to Sierra Pacific of $5 million, $4 million and $4 million for the years ending December 31, 2020, 2019 and 2018, respectively. Sierra Pacific provided services to Nevada Power of $15 million, $14 million, and $15 million for the years ended December 31, 2020, 2019 and 2018, respectively. Nevada Power provided services to Sierra Pacific of $26 million, $26 million, and $28 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, Sierra Pacific's Balance Sheets included amounts due to NV Energy of $17 million and $15 million, respectively. There were no receivables due from NV Energy as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, Sierra Pacific's Balance Sheets included payables due to Nevada Power of $2 million and $3 million, respectively. There were no receivables due from Nevada Power as of December 31, 2020 and 2019.

Sierra Pacific is party to a tax-sharing agreement with NV Energy and NV Energy is part of the Berkshire Hathaway consolidated United States federal income tax return. As of December 31, 2020 and 2019 federal income taxes receivable from NV Energy were $7 million and $14 million, respectively. Sierra Pacific made cash payments of $2 million, $37 million, and $19 million for federal income taxes for the years ended December 31, 2020, 2019 and 2018, respectively.

Certain disbursements for accounts payable and payroll are made by NV Energy on behalf of Sierra Pacific and reimbursed automatically when settled by the bank. These amounts are recorded as accounts payable at the time of disbursement.

Eastern Energy Gas Holdings, LLC [Member]

Related-Party Transactions

Transactions Prior to the GT&S Transaction

Prior to the GT&S Transaction, Eastern Energy Gas engaged in related party transactions primarily with other DEI subsidiaries (affiliates). Eastern Energy Gas' receivable and payable balances with affiliates were settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Through October 31, 2020, Eastern Energy Gas was included in DEI's consolidated federal income tax return and, where applicable, combined income tax returns for DEI are filed in various states. As of December 31, 2019, Eastern Energy Gas had a net affiliated receivable of $209 million due from DEI, representing $212 million of federal income taxes receivable from DEI and $3 million of state income taxes payable to DEI. In addition, Eastern Energy Gas' Consolidated Balance Sheet as of December 31, 2019 includes $10 million of state income taxes receivable. All affiliate payables or receivables were settled with DEI prior to the closing date of the GT&S Transaction.

Eastern Energy Gas transacted with affiliates for certain quantities of natural gas and other commodities at market prices in the ordinary course of business. Additionally, Eastern Energy Gas provided transportation and storage services to affiliates. Eastern Energy Gas also entered into certain other contracts with affiliates, and related parties, including construction services, which were presented separately from contracts involving commodities or services. As of December 31, 2019, Eastern Energy Gas did not have any commodity derivative assets and liabilities with affiliates. See Notes 14 and 18 for more information. See Note 3 for information regarding the Dominion Energy Gas Restructuring, an affiliated transaction. Eastern Energy Gas participated in certain DEI benefit plans as described in Note 12. As of December 31, 2019, Eastern Energy Gas' amount due from DEI associated with the Dominion Energy Pension Plan and reflected in other assets on the Consolidated Balance Sheet was $326 million. Eastern Energy Gas' amount due from DEI associated with the Dominion Energy Retiree Health and Welfare Plan and reflected in other assets on the Consolidated Balance Sheet was $17 million as of December 31, 2019.

DES, Carolina Gas Services, DEQPS and other affiliates provided accounting, legal, finance and certain administrative and technical services to Eastern Energy Gas. Eastern Energy Gas provided certain services to related parties, including technical services.

The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES, Carolina Gas Services and DEQPS to Eastern Energy Gas on the basis of direct and allocated methods in accordance with Eastern Energy Gas' services agreements with DES, Carolina Gas Services and DEQPS. Where costs incurred cannot be determined by specific identification, the costs were allocated based on the proportional level of effort devoted by DES, Carolina Gas Services and DEQPS resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.

Subsequent to the GT&S Transaction, and with the exception of Cove Point, Eastern Energy Gas' transactions with other DEI subsidiaries are no longer related-party transactions.

Presented below are Eastern Energy Gas' significant transactions with DES, Carolina Gas Services, DEQPS and other affiliated and related parties for the years ended December 31 (in millions):


	2020		2019		2018
Sales of natural gas and transportation and storage services	$	207	$	249	$	168
Purchases of natural gas and transportation and storage services	10		12		—
Services provided by related parties(1)	129		226		169
Services provided to related parties(2)	83		164		260

(1)Includes capitalized expenditures of $14 million, $19 million and $37 million for the years ended December 31, 2020, 2019 and 2018, respectively.

(2)Includes amounts attributable to Atlantic Coast Pipeline, a related-party VIE prior to the GT&S Transaction. See below for more information.

The following table presents affiliated and related party balances as of December 31 (in millions):


	2019
Other receivables(1)	$	7
Imbalances receivable from affiliates(2)	8
Imbalances payable to affiliates(3)	1
Other assets	12

(1)Represents amounts due from Atlantic Coast Pipeline.

(2)Amounts are presented in other current assets on the Consolidated Balance Sheet.

(3)Amounts are presented in other current liabilities on the Consolidated Balance Sheet.

EGTS provided services to Atlantic Coast Pipeline, which totaled $46 million, $103 million and $203 million for the years ended December 31, 2020, 2019 and 2018, respectively, included in operating revenue in the Consolidated Statements of Operations.

Trade receivables, net as of December 31, 2019 included $22 million of accrued unbilled revenue, respectively. This revenue is based on estimated amounts of services provided but not yet billed to various affiliates.

Interest income related to the affiliated notes receivable under the DEI money pool was $3 million for the year ended December 31, 2020.

Interest income on affiliated notes receivable from East Ohio and EGP borrowings under intercompany revolving credit agreements with Eastern Energy Gas was $14 million and $15 million for the years ended December 31, 2019 and 2018, respectively.

In 2018, in connection with the closing of a $3.0 billion term loan, Cove Point loaned DEI $3.0 billion in exchange for a promissory note. Interest income related to DEI's borrowing was $82 million and $21 million for the years ended December 31, 2019 and 2018, respectively. In September 2019, DEI repaid the promissory note to Cove Point and the proceeds were used by Cove Point to repay its $3.0 billion term loan.

Eastern Energy Gas' affiliated notes receivable from DEI totaled $1.8 billion as of December 31, 2019. In August 2020, DEI repaid the remaining principal balance outstanding. Interest income on the promissory notes was $32 million and $5 million for the years ended December 31, 2020 and 2019, respectively.

As of December 31, 2019, Eastern Energy Gas' affiliated notes receivable from East Ohio totaled $1.7 billion. In June 2020, East Ohio repaid the remaining principal balance outstanding. Interest income on these promissory notes was $33 million, $72 million and $64 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Eastern Energy Gas' borrowings under an intercompany revolving credit agreement with DEI totaled $251 million as of December 31, 2019, with a weighted average interest rate of 2.02%. Interest charges related to Eastern Energy Gas' total borrowings from DEI were $3 million, $3 million and less than $1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Interest charges related to DCP's total borrowings from DEI totaled $94 million and $96 million for the years ended December 31, 2019 and 2018, respectively.

DCP had borrowings of $9 million with DES as of December 31, 2019, with a weighted-average interest rate of 3.85%. Interest related to DCP's total borrowings from DES totaled $3 million, $3 million and $1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Interest charges related to Northeast Midstream's promissory note with DEI were $10 million for the year ended December 31, 2019.

For the years ended December 31, 2020, 2019 and 2018, Eastern Energy Gas, including entities acquired in the Dominion Energy Gas Restructuring, distributed $4.3 billion, $603 million and $230 million to DEI, respectively.

Transactions Subsequent to the GT&S Transaction

Eastern Energy Gas is party to a tax-sharing agreement and is part of the Berkshire Hathaway consolidated United States federal income tax return. For current federal and state income taxes, Eastern Energy Gas had a receivable from BHE of $20 million as of December 31, 2020. Eastern Energy Gas received net cash receipts for federal and state income taxes from BHE totaling $76 million for the year ended December 31, 2020.

DEI, BHE, MidAmerican Energy, Northern Natural Gas Company and other related parties provided accounting, human resources, information technology and certain other administrative and technical services to Eastern Energy Gas, which totaled $4 million for the year ended December 31, 2020. Eastern Energy Gas provided certain services to affiliates, including administrative and technical services, which totaled $7 million for the year ended December 31, 2020. Eastern Energy Gas also provided transportation and storage services to affiliates, which totaled $4 million for the year ended December 31, 2020. Other assets included amounts due from an affiliate of $7 million as of December 31, 2020.

Eastern Energy Gas has a $400 million intercompany revolving credit agreement from its parent, BHE GT&S, expiring in November 2021. The credit facility, which is for general corporate purposes and provide for the issuance of letters of credit, has a variable interest rate based on London Interbank Offered Rate ("LIBOR") plus a fixed spread. As of December 31, 2020, $9 million was outstanding under the credit agreement, with a weighted average interest rate of 0.55%.

BHE GT&S has a $200 million intercompany revolving credit agreement from Eastern Energy Gas expiring in December 2021. The credit agreement has a variable interest rate based on LIBOR plus a fixed spread. As of December 31, 2020, $124 million was outstanding under the credit agreement.

Eastern Energy Gas participates in certain MidAmerican Energy benefit plans as described in Note 12. As of December 31, 2020, Eastern Energy Gas' amount due to MidAmerican Energy associated with these plans and reflected in other long-term liabilities on the Consolidated Balance Sheet was $115 million.