Regulatory Matters (Notes)

12 Months Ended

Dec. 31, 2015

Schedule Of Regulatory Assets and Liabilities [Line Items]

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	2015		2014

Deferred income taxes⁽¹⁾	26 years	$	1,577	$	1,468
Employee benefit plans⁽²⁾	9 years	778		747
Asset disposition costs⁽³⁾	Various	307		329
Deferred net power costs	1 year	140		277
Asset retirement obligations	8 years	281		239
Unrealized loss on regulated derivative contracts	5 years	250		223
Abandoned projects	5 years	136		159
Unamortized contract values	8 years	110		123
Other	Various	706		688
Total regulatory assets		$	4,285	$	4,253

Reflected as:
Current assets		$	130	$	253
Noncurrent assets		4,155		4,000
Total regulatory assets		$	4,285	$	4,253


(1)	Amounts primarily represent income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously flowed through to customers and will be included in regulated rates when the temporary differences reverse.


(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.


(3)	Includes amounts established as a result of the Utah mine disposition discussed below for the net property, plant and equipment not considered probable of disallowance and for the portion of losses associated with the assets held for sale, UMWA 1974 Pension Plan withdrawal and closure costs incurred to date considered probable of recovery.

The Company had regulatory assets not earning a return on investment of $2.3 billion and $2.6 billion as of December 31, 2015 and 2014, 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	2015		2014

Cost of removal⁽¹⁾	28 years	$	2,167	$	2,215
Deferred net power costs	2 years	206		—
Asset retirement obligations	22 years	147		169
Levelized depreciation	26 years	199		169
Employee benefit plans⁽²⁾	12 years	13		20
Other	Various	301		259
Total regulatory liabilities		$	3,033	$	2,832

Reflected as:
Current liabilities		$	402	$	163
Noncurrent liabilities		2,631		2,669
Total regulatory liabilities		$	3,033	$	2,832


(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)	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.

Utah Mine Disposition

Due to quality issues with the coal reserves at PacifiCorp's Deer Creek mine in Utah and rising costs at PacifiCorp's wholly owned subsidiary, Energy West Mining Company, PacifiCorp believes the Deer Creek coal reserves are no longer able to be economically mined. As a result, in December 2014, PacifiCorp filed applications with the Utah Public Service Commission ("UPSC"), the Oregon Public Utility Commission ("OPUC"), the Wyoming Public Service Commission ("WPSC") and the Idaho Public Utilities Commission ("IPUC") seeking certain approvals, prudence determinations and accounting orders to close its Deer Creek mining operations, sell certain Utah mining assets, enter into a replacement coal supply agreement, amend an existing coal supply agreement, withdraw from the United Mine Workers of America ("UMWA") 1974 Pension Plan and settle PacifiCorp's other postretirement benefit obligation for UMWA participants (collectively, the "Utah Mine Disposition").

In April 2015, PacifiCorp filed all-party settlement stipulations with the UPSC and the WPSC finding that the decision to enter into the Utah Mine Disposition transaction was prudent and in the public interest. The UPSC approved the stipulation in April 2015 and the WPSC approved the stipulation in May 2015. In May 2015, the OPUC issued its final order concluding that the Utah Mine Disposition transaction produces net benefits for customers and was in the public interest. The IPUC also issued an order in May 2015, approving the Utah Mine Disposition and ruling that the decision to enter into the transaction was prudent and in the public interest. Accordingly, in June 2015, PacifiCorp sold the specified Utah mining assets and the replacement and amended coal supply agreements became effective. Refer to Note 12 for discussion of the UMWA 1974 Pension Plan withdrawal and the settlement of the other postretirement benefit obligation for UMWA participants. The Deer Creek mine is currently idled and closure activities have begun.

In December 2014, PacifiCorp also filed an advice letter with the California Public Utilities Commission ("CPUC"). In July 2015, the CPUC Energy Division issued a letter requiring PacifiCorp to file a formal application for approval of the sale of certain Utah mining assets. Accordingly, in September 2015, PacifiCorp filed an application with the CPUC.

PacifiCorp [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

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	2015		2014

Deferred income taxes⁽¹⁾	26 years	$	437	$	446
Employee benefit plans⁽²⁾	8 years	499		491
Utah mine disposition⁽³⁾	Various	186		194
Unamortized contract values	8 years	110		123
Deferred net power costs	1 year	86		122
Unrealized loss on derivative contracts	5 years	133		85
Other	Various	234		244
Total regulatory assets		$	1,685	$	1,705

Reflected as:
Current assets		$	102	$	131
Noncurrent assets		1,583		1,574
Total regulatory assets		$	1,685	$	1,705


(1)	Amounts primarily represent income tax benefits and expense related to certain property-related basis differences and other various items that PacifiCorp is required to pass on to its customers.


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


(3)	Amounts represent regulatory assets established as a result of the Utah mine disposition discussed below for the net property, plant and equipment not considered probable of disallowance and for the portion of losses associated with the assets held for sale, UMWA 1974 Pension Plan withdrawal and closure costs incurred to date considered probable of recovery.

PacifiCorp had regulatory assets not earning a return on investment of $1.102 billion and $1.505 billion as of December 31, 2015 and 2014, 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	2015		2014

Cost of removal⁽¹⁾	26 years	$	894	$	873
Deferred income taxes	Various	12		13
Other	Various	66		58
Total regulatory liabilities		$	972	$	944

Reflected as:
Current liabilities		$	34	$	34
Noncurrent liabilities		938		910
Total regulatory liabilities		$	972	$	944


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

Utah Mine Disposition

In April 2015, PacifiCorp filed all-party settlement stipulations with the UPSC and the WPSC finding that the decision to enter into the Utah Mine Disposition transaction was prudent and in the public interest. The UPSC approved the stipulation in April 2015 and the WPSC approved the stipulation in May 2015. In May 2015, the OPUC issued its final order concluding that the Utah Mine Disposition transaction produces net benefits for customers and was in the public interest. The IPUC also issued an order in May 2015, approving the Utah Mine Disposition and ruling that the decision to enter into the transaction was prudent and in the public interest. Accordingly, in June 2015, PacifiCorp sold the specified Utah mining assets and the replacement and amended coal supply agreements became effective. Refer to Note 9 for discussion of the UMWA 1974 Pension Plan withdrawal and the settlement of the other postretirement benefit obligation for UMWA participants. The Deer Creek mine is currently idled and closure activities have begun.

MidAmerican Energy Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

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):



	Average
	Remaining Life	2015		2014

Deferred income taxes, net⁽¹⁾	25 years	$	858	$	730
Asset retirement obligations⁽²⁾	6 years	94		62
Employee benefit plans⁽³⁾	11 years	39		42
Unrealized loss on regulated derivative contracts	1 year	20		38
Other	Various	33		36
Total		$	1,044	$	908


(1)	Amounts primarily represent income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously flowed through to customers and will be included in regulated rates when the temporary differences reverse.


(2)	Amount predominantly relates to asset retirement obligations for fossil-fueled and wind-powered generating facilities. Refer to Note 11 for a discussion of asset retirement obligations.


(3)	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 $1.0 billion and $904 million as of December 31, 2015 and 2014, respectively.

Regulatory liabilities represent income to be recognized or amounts 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):



	Average
	Remaining Life	2015		2014

Cost of removal accrual⁽¹⁾	25 years	$	653	$	642
Asset retirement obligations⁽²⁾	22 years	140		159
Other	Various	38		36
Total		$	831	$	837


(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 predominantly represents the excess of nuclear decommission trust assets over the related asset retirement obligation. Refer to Note 11for a discussion of asset retirement obligations.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

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

Nevada Power Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

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	2015		2014

Deferred income taxes⁽¹⁾	28 years	$	149	$	156
Merger costs from 1999 merger	28 years	143		149
Decommissioning costs	7 years	121		113
Employee benefit plans⁽²⁾	10 years	98		85
Abandoned projects	4 years	91		107
Deferred operating costs	20 years	87		61
Asset retirement obligations	7 years	79		80
Legacy meters	17 years	64		68
Deferred energy costs	2 years	56		129
Other	Various	169		178
Total regulatory assets		$	1,057	$	1,126

Reflected as:
Current assets		$	—	$	57
Other assets		1,057		1,069
Total regulatory assets		$	1,057	$	1,126


(1)	Amounts represent income tax benefits related to accelerated tax depreciation and certain property-related basis differences that were previously flowed through to customers and will be included in regulated rates when the temporary differences reverse.


(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.

Nevada Power had regulatory assets not earning a return on investment of $572 million and $788 million as of December 31, 2015 and 2014, respectively, related to deferred income taxes, merger costs from 1999 merger, asset retirement obligations, deferred operating costs, deferred excess energy costs, loss on reacquired debt, unrealized loss on regulated derivative contracts and a portion of abandoned projects. Regulatory assets not earning a return as of December 31, 2014 also included legacy meters.

Regulatory liabilities represent income to be recognized or amounts 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	2015		2014

Cost of removal⁽¹⁾	34 years	$	273	$	295
Deferred energy costs	2 years	139		—
Energy efficiency program	1 year	34		25
Other	Various	31		46
Total regulatory liabilities		$	477	$	366

Reflected as:
Current liabilities		$	173	$	40
Other long-term liabilities		304		326
Total regulatory liabilities		$	477	$	366


(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.

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 is 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.

Energy Efficiency Implementation Rates and Energy Efficiency Program Rates

The PUCN authorizes an electric utility to recover lost revenue that is attributable to the measurable and verifiable effects associated with the implementation of efficiency and conservation programs approved by the PUCN through energy efficiency implementation rates ("EEIR"). As a result, Nevada Power files annually to adjust energy efficiency program rates ("EEPR") and EEIR for over- or under-collected balances, which are effective in October of the same year.

The PUCN's final order approving the BHE Merger stipulated that Nevada Power will not seek recovery of any lost revenue for calendar year 2013 and, for the calendar year 2014 in an amount that exceeds 50% of the lost revenue that Nevada Power could otherwise request. In February 2014, Nevada Power filed an application with the PUCN to reset the EEIR and EEPR. In June 2014, the PUCN accepted a stipulation to adjust the EEIR, as of July 1, 2014, to collect 50% of the estimated lost revenue that Nevada Power would otherwise be allowed to recover for the 2014 calendar year. The EEIR was effective from July through December 2014 and reset on January 1, 2015 and was in effect through September 2015.

In February 2015, Nevada Power filed an application to reset the EEIR and EEPR. In August 2015, the PUCN accepted a stipulation for Nevada Power to calculate the base EEIR using a revised methodology for calculating lost revenue and for Nevada Power to make a $5 million reduction to the EEPR revenue requirement to more accurately reflect the actual level of spending and to minimize any over collection from its customers. The reset of the EEIR and EEPR was effective October 1, 2015 and remains in effect through September 30, 2016. To the extent Nevada Power's earned rate of return exceeds the rate of return used to set base general rates, Nevada Power is required to refund to customers EEIR revenue collected. The current EEIR liability for Nevada Power is $18 million and $11 million, which is included in current regulatory liabilities on the Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively.

General Rate Case

In May 2014, Nevada Power filed a general rate case with the PUCN. In July 2014, Nevada Power made its certification filing, which requested incremental annual revenue relief in the amount of $38 million, or an average price increase of 2%. In October 2014, Nevada Power reached a settlement agreement with certain parties agreeing to a zero increase in the revenue requirement. In October 2014, the PUCN issued an order in the general rate case filing that accepted the settlement. The order provides for increases in the fixed-monthly service charge for customers with a corresponding decrease in the base tariff general rate effective January 1, 2015. As a result of the order, Nevada Power recorded $15 million in asset impairments related to property, plant and equipment and $5 million of regulatory asset impairments, which are included in operating and maintenance on the Consolidated Statements of Operations for the year ended December 31, 2014. Additionally, Nevada Power recorded a $5 million gain in other, net on the Consolidated Statement of Operations for the year ended December 31, 2014 related to the disposition of property. In October 2014, a party filed a petition for reconsideration of the PUCN order. In November 2014, the PUCN granted the petition for reconsideration and reaffirmed the order issued in October 2014.

2013 FERC Transmission Rate Case

In May 2013, the Nevada Utilities, filed an application with the FERC to establish single system transmission and ancillary service rates. The combined filing requested incremental rate relief of $17 million annually to be effective January 1, 2014. In August 2013, the FERC granted the companies' request for a rate effective date of January 1, 2014 subject to refund, and set the case for hearing or settlement discussions. On January 1, 2014, Nevada Power implemented the filed rates in this case subject to refund as set forth in the FERC's order.

In September 2014, the Nevada Utilities, filed an unopposed settlement offer with the FERC on behalf of NV Energy and the intervening parties providing rate relief of $4 million. The settlement offer would resolve all outstanding issues related to this case. In addition, a preliminary order from the administrative law judge granting the motion for interim rate relief was issued, which authorizes Nevada Power to institute the interim rates effective September 1, 2014, and begin billing transmission customers under the settlement rates for service provided on and after that date. In January 2015, the FERC approved the settlement and refunds were issued.

Sierra Pacific Power Company [Member]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

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	2015		2014

Employee benefit plans⁽²⁾	10 years	$	126	$	115
Deferred income taxes⁽¹⁾	28 years	90		94
Merger costs from 1999 merger	31 years	83		87
Abandoned projects	9 years	44		51
Deferred energy costs	2 years	—		32
Loss on reacquired debt	17 years	22		24
Other	Various	67		73
Total regulatory assets		$	432	$	476

Reflected as:
Current assets		$	—	$	32
Other assets		432		444
Total regulatory assets		$	432	$	476


(1)	Amounts represent income tax benefits related to accelerated tax depreciation and certain property-related basis differences that were previously flowed through to customers and will be included in regulated rates when the temporary differences reverse.


(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.

Sierra Pacific had regulatory assets not earning a return on investment of $254 million and $269 million as of December 31, 2015 and 2014, respectively. In 2015 the regulatory assets not earning a return on investment consist of deferred income taxes, merger costs from 1999 merger, loss on reacquired debt, legacy meters, a portion of abandoned projects and asset retirement obligations.

Regulatory liabilities represent income to be recognized or amounts 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	2015		2014

Cost of removal⁽¹⁾	40 years	$	208	$	233
Deferred energy costs	2 years	66		—
Renewable energy program	1 year	8		32
Other	Various	26		36
Total regulatory liabilities		$	308	$	301

Reflected as:
Current liabilities		$	78	$	39
Other long-term liabilities		230		262
Total regulatory liabilities		$	308	$	301


(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.

Deferred Energy

Energy Efficiency Implementation Rates and Energy Efficiency Program Rates

The PUCN authorizes an electric utility to recover lost revenue that is attributable to the measurable and verifiable effects associated with the implementation of efficiency and conservation programs approved by the PUCN through energy efficiency implementation rates ("EEIR"). As a result, Sierra Pacific files annually to adjust energy efficiency program rates ("EEPR") and EEIR for over- or under-collected balances, which are effective in October of the same year.

The PUCN's final order approving the BHE Merger stipulated that Sierra Pacific will not seek recovery of any lost revenue for calendar year 2013 and, for the calendar year 2014 in an amount that exceeds 50% of the lost revenue that Sierra Pacific could otherwise request. In February 2014, Sierra Pacific filed an application with the PUCN to reset the EEIR and EEPR. In June 2014, the PUCN accepted a stipulation to adjust the EEIR, as of July 1, 2014, to collect 50% of the estimated lost revenue that Sierra Pacific would otherwise be allowed to recover for the 2014 calendar year. The EEIR was effective from July through December 2014 and reset on January 1, 2015 and was in effect through September 2015.

In February 2015, Sierra Pacific filed an application to reset the EEIR and EEPR. In August 2015, the PUCN accepted a stipulation for Sierra Pacific to calculate the base EEIR using a revised methodology for calculating lost revenue and for Sierra Pacific to make a $1 million reduction to the EEPR revenue requirement to more accurately reflect the actual level of spending and to minimize any over collection from its customers. The reset of the EEIR and EEPR was effective October 1, 2015 and remains in effect through September 30, 2016. To the extent Sierra Pacific's earned rate of return exceeds the rate of return used to set base general rates, Sierra Pacific is required to refund to customers EEIR revenue collected. The current EEIR liability for Sierra Pacific is $3 million and $2 million, which is included in current regulatory liabilities on the Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively.

General Rate Case

In connection with Nevada Power's general rate case filing in May 2014, as required by the PUCN, Sierra Pacific made a "companion filing" for the purpose of documenting the costs and benefits of Sierra Pacific's investment in the advanced service delivery program. In October 2014, the PUCN issued an order in the companion filing issued with the general rate case order that, among other things, provided for the implementation of new rates effective January 1, 2015 to begin recovery of costs associated with advance service delivery. The recovery of advanced service delivery costs will increase annual revenue approximately $10 million. As a result of the PUCN order in the companion filing issued with the Nevada Power general rate case order, Sierra Pacific recorded $7 million in asset impairments related to property, plant and equipment and $1 million of regulatory asset impairments, which are included in operating and maintenance on the Consolidated Statements of Operations for the year ended December 31, 2014.

2013 FERC Transmission Rate Case

In May 2013, the Nevada Utilities, filed an application with the FERC to establish single system transmission and ancillary service rates. The combined filing requested incremental rate relief of $17 million annually to be effective January 1, 2014. In August 2013, the FERC granted the companies' request for a rate effective date of January 1, 2014 subject to refund, and set the case for hearing or settlement discussions. On January 1, 2014, Sierra Pacific implemented the filed rates in this case subject to refund as set forth in the FERC's order.

In September 2014, the Nevada Utilities, filed an unopposed settlement offer with the FERC on behalf of NV Energy and the intervening parties providing rate relief of $4 million. The settlement offer would resolve all outstanding issues related to this case. In addition, a preliminary order from the administrative law judge granting the motion for interim rate relief was issued, which authorizes Sierra Pacific to institute the interim rates effective September 1, 2014, and begin billing transmission customers under the settlement rates for service provided on and after that date. In January 2015, the FERC approved the settlement and refunds were issued.