XML 97 R51.htm IDEA: XBRL DOCUMENT v3.3.1.900
Risk Management and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of the Company's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions):
 
Other
 
 
 
Other
 
Other
 
 
 
Current
 
Other
 
Current
 
Long-term
 
 
 
Assets
 
Assets
 
Liabilities
 
Liabilities
 
Total
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets(1)
$
25

 
$
72

 
$
7

 
$
2

 
$
106

Commodity liabilities(1)
(4
)
 
—

 
(113
)
 
(175
)
 
(292
)
Interest rate assets
7

 
—

 
—

 
—

 
7

Interest rate liabilities
—

 
—

 
(3
)
 
(6
)
 
(9
)
Total
28

 
72

 
(109
)
 
(179
)
 
(188
)
 
 
 
 
 
 
 
 
 
 
Designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets
—

 
—

 
1

 
2

 
3

Commodity liabilities
—

 
—

 
(33
)
 
(17
)
 
(50
)
Interest rate assets
—

 
3

 
—

 
—

 
3

Interest rate liabilities
—

 
—

 
(4
)
 
(1
)
 
(5
)
Total
—

 
3

 
(36
)
 
(16
)
 
(49
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
28

 
75

 
(145
)
 
(195
)
 
(237
)
Cash collateral receivable
—

 
—

 
40

 
63

 
103

Total derivatives - net basis
$
28

 
$
75

 
$
(105
)
 
$
(132
)
 
$
(134
)

As of December 31, 2014
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets(1)
$
47

 
$
66

 
$
21

 
$
1

 
$
135

Commodity liabilities(1)
(11
)
 
—

 
(146
)
 
(134
)
 
(291
)
Interest rate assets
4

 
—

 
—

 
—

 
4

Interest rate liabilities
—

 
—

 
(2
)
 
(4
)
 
(6
)
Total
40

 
66

 
(127
)
 
(137
)
 
(158
)
 
 
 
 
 
 
 
 
 
 
Designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets
1

 
—

 
5

 
2

 
8

Commodity liabilities
—

 
—

 
(27
)
 
(17
)
 
(44
)
Interest rate assets
—

 
1

 
—

 
—

 
1

Interest rate liabilities
—

 
—

 
(4
)
 
—

 
(4
)
Total
1

 
1

 
(26
)
 
(15
)
 
(39
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
41

 
67

 
(153
)
 
(152
)
 
(197
)
Cash collateral receivable
—

 
—

 
56

 
19

 
75

Total derivatives - net basis
$
41

 
$
67

 
$
(97
)
 
$
(133
)
 
$
(122
)

(1)
The Company's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of December 31, 2015 and 2014, a net regulatory asset of $250 million and $223 million, respectively, was recorded related to the net derivative liability of $186 million and $156 million, respectively. The difference between the net regulatory asset and the net derivative liability relates primarily to a power purchase agreement derivative at BHE Renewables.
Schedule of Regulatory Assets (Liabilities), Net, Unrealized Loss (Gain), Net, on Derivative Contracts [Table Text Block]
The following table reconciles the beginning and ending balances of the Company's net regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in net regulatory assets, as well as amounts reclassified to earnings for the years ended December 31 (in millions):
 
Commodity Derivatives
 
2015
 
2014
 
2013
 
 
 
 
 
 
Beginning balance
$
223

 
$
182

 
$
235

NV Energy Transaction
—

 
—

 
47

Changes in fair value recognized in net regulatory assets
128

 
96

 
29

Net gains (losses) reclassified to operating revenue
1

 
(32
)
 
8

Net losses reclassified to cost of sales
(102
)
 
(23
)
 
(137
)
Ending balance
$
250

 
$
223

 
$
182
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Certain commodity derivative contracts have settled and the fair value at the date of settlement remains in AOCI and is recognized in earnings when the forecasted transactions impact earnings. The following table reconciles the beginning and ending balances of the Company's AOCI (pre-tax) and summarizes pre-tax gains and losses on commodity derivative contracts designated and qualifying as cash flow hedges recognized in OCI, as well as amounts reclassified to earnings for the years ended December 31 (in millions):
 
Commodity Derivatives
 
2015
 
2014
 
2013
 
 
 
 
 
 
Beginning balance
$
32

 
$
12

 
$
32

Changes in fair value recognized in OCI
52

 
(6
)
 
(9
)
Net gains reclassified to operating revenue
9

 
—

 
—

Net (losses) gains reclassified to cost of sales
(47
)
 
26

 
(11
)
Ending balance
$
46

 
$
32

 
$
12
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table summarizes the net notional amounts of outstanding derivative contracts with fixed price terms that comprise the mark-to-market values as of December 31 (in millions):
 
Unit of
 
 
 
 
 
Measure
 
2015
 
2014
Electricity purchases
Megawatt hours
 
10

 
6

Natural gas purchases
Decatherms
 
317

 
308

Fuel purchases
Gallons
 
11

 
2

Interest rate swaps
US$
 
653

 
443

Mortgage sale commitments, net
US$
 
(312
)
 
(264
)
PacifiCorp [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of PacifiCorp's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions):

 
Other
 
 
 
Other
 
Other
 
 
 
Current
 
Other
 
Current
 
Long-term
 
 
 
Assets
 
Assets
 
Liabilities
 
Liabilities
 
Total
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts(1):
 
 
 
 
 
 
 
 
 
Commodity assets
$
10

 
$
—

 
$
2

 
$
—

 
$
12

Commodity liabilities
(1
)
 
—

 
(58
)
 
(89
)
 
(148
)
Total
9

 
—

 
(56
)
 
(89
)
 
(136
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
9

 
—

 
(56
)
 
(89
)
 
(136
)
Cash collateral receivable
—

 
—

 
18

 
57

 
75

Total derivatives - net basis
$
9

 
$
—

 
$
(38
)
 
$
(32
)
 
$
(61
)
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts(1):
 
 
 
 
 
 
 
 
 
Commodity assets
$
28

 
$
—

 
$
1

 
$
—

 
$
29

Commodity liabilities
(10
)
 
—

 
(55
)
 
(49
)
 
(114
)
Total
18

 
—

 
(54
)
 
(49
)
 
(85
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
18

 
—

 
(54
)
 
(49
)
 
(85
)
Cash collateral receivable
—

 
—

 
14

 
14

 
28

Total derivatives - net basis
$
18

 
$
—

 
$
(40
)
 
$
(35
)
 
$
(57
)

(1)
PacifiCorp's commodity derivatives are generally included in rates and as of December 31, 2015 and 2014, a regulatory asset of $133 million and $85 million, respectively, was recorded related to the net derivative liability of $136 million and $85 million, respectively.
Schedule of Regulatory Assets (Liabilities), Net, Unrealized Loss (Gain), Net, on Derivative Contracts [Table Text Block]
The following table reconciles the beginning and ending balances of PacifiCorp's regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in regulatory assets, as well as amounts reclassified to earnings for the years ended December 31 (in millions):
 
2015
 
2014
 
 
 
 
Beginning balance
$
85

 
$
55

Changes in fair value recognized in regulatory assets
82

 
45

Net gains (losses) reclassified to operating revenue
40

 
(4
)
Net losses reclassified to energy costs
(74
)
 
(11
)
Ending balance
$
133

 
$
85
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of December 31 (in millions):
 
Unit of
 
 
 
 
 
Measure
 
2015
 
2014
 
 
 
 
 
 
Electricity purchases (sales)
Megawatt hours
 
1

 
(1
)
Natural gas purchases
Decatherms
 
111

 
113

Fuel oil purchases
Gallons
 
11

 
3
MidAmerican Energy Company [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of MidAmerican Energy's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Balance Sheets (in millions):
 
Current
 
Other
 
Current
 
Other
 
 
 
Assets
 
Assets
 
Liabilities
 
Liabilities
 
 
 
- Other
 
- Other
 
- Other
 
- Other
 
Total
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts(1):
 
 
 
 
 
 
 
 
 
Commodity assets
$
12

 
$
4

 
$
5

 
$
2

 
$
23

Commodity liabilities
(3
)
 
—

 
(36
)
 
(10
)
 
(49
)
Total
9

 
4

 
(31
)
 
(8
)
 
(26
)
 
 
 
 
 
 
 
 
 
 
Designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets
—

 
—

 
1

 
2

 
3

Commodity liabilities
—

 
—

 
(32
)
 
(17
)
 
(49
)
Total
—

 
—

 
(31
)
 
(15
)
 
(46
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
9

 
4

 
(62
)
 
(23
)
 
(72
)
Cash collateral receivable
—

 
—

 
22

 
6

 
28

Total derivatives - net basis
$
9

 
$
4

 
$
(40
)
 
$
(17
)
 
$
(44
)
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
 
 
 
Not designated as hedging contracts(1):
 
 
 
 
 
 
 
 
 
Commodity assets
$
14

 
$
3

 
$
19

 
$
1

 
$
37

Commodity liabilities
—

 
—

 
(69
)
 
(4
)
 
(73
)
Total
14

 
3

 
(50
)
 
(3
)
 
(36
)
 
 
 
 
 
 
 
 
 
 
Designated as hedging contracts:
 
 
 
 
 
 
 
 
 
Commodity assets
—

 
—

 
4

 
2

 
6

Commodity liabilities
—

 
—

 
(27
)
 
(17
)
 
(44
)
Total
—

 
—

 
(23
)
 
(15
)
 
(38
)
 
 
 
 
 
 
 
 
 
 
Total derivatives
14

 
3

 
(73
)
 
(18
)
 
(74
)
Cash collateral receivable
—

 
—

 
42

 
5

 
47

Total derivatives - net basis
$
14

 
$
3

 
$
(31
)
 
$
(13
)
 
$
(27
)
(1)
MidAmerican Energy's commodity derivatives not designated as hedging contracts are generally included in regulated rates. Accordingly, as of December 31, 2015 and 2014, a net regulatory asset of $20 million and $38 million, respectively, was recorded related to the net derivative liability of $26 million and $36 million, respectively.
Schedule of Regulatory Assets (Liabilities), Net, Unrealized Loss (Gain), Net, on Derivative Contracts [Table Text Block]
The following table reconciles the beginning and ending balances of MidAmerican Energy's net regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in net regulatory assets, as well as amounts reclassified to earnings for the years ended December 31 (in millions):
 
2015
 
2014
 
2013
 
 
 
 
 
 
Beginning balance
$
38

 
$
10

 
$
45

Changes in fair value recognized in net regulatory assets
40

 
61

 
5

Net losses reclassified to operating revenue
(42
)
 
(28
)
 
(1
)
Net losses reclassified to cost of fuel, energy and capacity
(1
)
 
(1
)
 
(1
)
Net losses reclassified to cost of gas sold
(15
)
 
(4
)
 
(38
)
Ending balance
$
20

 
$
38

 
$
10
Schedule Of Nonregulated Derivatives Not Designated As Hedging Instruments Gain (Loss) In Statement Of Financial Performance [Table Text Block]
The following table summarizes the pre-tax unrealized gains (losses) included on the Statements of Operations associated with MidAmerican Energy's derivative contracts not designated as hedging contracts and not recorded as a net regulatory asset or liability for the years ended December 31 (in millions):
 
2015
 
2014
 
2013
 
 
 
 
 
 
Nonregulated operating revenue
$
15

 
$
6

 
$
—

Regulated cost of fuel, energy and capacity
2

 
—

 
—

Nonregulated cost of sales
(21
)
 
9

 
(2
)
Total
$
(4
)
 
$
15

 
$
(2
)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table reconciles the beginning and ending balances of MidAmerican Energy's accumulated other comprehensive loss (pre-tax) and summarizes pre-tax gains and losses on derivative contracts designated and qualifying as cash flow hedges recognized in OCI, as well as amounts reclassified to earnings, for the years ended December 31 (in millions):
 
2015
 
2014
 
2013
 
 
 
 
 
 
Beginning balance
$
34

 
$
11

 
$
32

Changes in fair value recognized in OCI
58

 
(3
)
 
(11
)
Net (losses) gains reclassified to nonregulated cost of sales
(47
)
 
26

 
(10
)
Ending balance
$
45

 
$
34

 
$
11
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table summarizes the net notional amounts of outstanding derivative contracts with fixed price terms that comprise the mark-to-market values as of December 31 (in millions):
 
Unit of
 
 
 
 
 
Measure
 
2015
 
2014
 
 
 
 
 
 
Electricity purchases
Megawatt hours
 
15

 
14

Natural gas purchases
Decatherms
 
17

 
19
Nevada Power Company [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table, which excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of Nevada Power's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions):
 
 
Other
 
Other
 
 
 
 
Current
 
Long-term
 
 
 
 
Liabilities
 
Liabilities
 
Total
As of December 31, 2015
 
 
 
 
 
 
Commodity liabilities(1)
 
$
(8
)
 
$
(14
)
 
$
(22
)
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
Commodity liabilities(1)
 
$
(9
)
 
$
(21
)
 
$
(30
)

(1)
Nevada Power's commodity derivatives not designated as hedging contracts are included in regulated rates and as of December 31, 2015 and 2014, a regulatory asset of $22 million and $30 million, respectively, was recorded related to the derivative liability of $22 million and $30 million, respectively.
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table summarizes the net notional amounts of outstanding derivative contracts with indexed and fixed price terms that comprise the mark-to-market values as of December 31 (in millions):
 
 
Unit of
 
 
 
 
 
 
Measure
 
2015
 
2014
Electricity sales
 
Megawatt hours
 
(2
)
 
(3
)
Natural gas purchases
 
Decatherms
 
126

 
115