Regulatory Matters (Notes)

12 Months Ended

Dec. 31, 2016

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	2016		2015

Deferred income taxes⁽¹⁾	27 years	$	1,754	$	1,577
Employee benefit plans⁽²⁾	17 years	816		778
Asset disposition costs	Various	281		307
Deferred net power costs	1 year	38		140
Asset retirement obligations	12 years	301		281
Unrealized loss on regulated derivative contracts	5 years	154		250
Abandoned projects	3 years	159		136
Unamortized contract values	7 years	98		110
Other	Various	856		706
Total regulatory assets		$	4,457	$	4,285

Reflected as:
Current assets		$	150	$	130
Noncurrent assets		4,307		4,155
Total regulatory assets		$	4,457	$	4,285


(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.

The Company had regulatory assets not earning a return on investment of $2.8 billion and $2.3 billion as of December 31, 2016 and 2015, 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	2016		2015

Cost of removal⁽¹⁾	27 years	$	2,242	$	2,167
Deferred net power costs	1 years	64		206
Asset retirement obligations	35 years	122		147
Levelized depreciation	23 years	244		199
Impact fees	6 years	90		—
Employee benefit plans⁽²⁾	12 years	25		13
Unrealized gain on regulated derivative contracts	1 year	6		—
Other	Various	327		301
Total regulatory liabilities		$	3,120	$	3,033

Reflected as:
Current liabilities		$	187	$	402
Noncurrent liabilities		2,933		2,631
Total regulatory liabilities		$	3,120	$	3,033


(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.

ALP General Tariff Application ("GTA")

In November 2014, ALP filed a GTA requesting the Alberta Utilities Commission ("AUC") to approve revenue requirements of C$811 million for 2015 and C$1.0 billion for 2016, primarily due to continued investment in capital projects as directed by the Alberta Electric System Operator. ALP amended the GTA in June 2015 to propose transmission tariff relief measures for customers and modifications to its capital structure. ALP also amended and updated the GTA in October 2015, reducing the requested revenue requirements to C$672 million for 2015 and C$704 million for 2016. In May 2016, the AUC issued its decision pertaining to the 2015-2016 GTA. ALP filed its 2015-2016 GTA compliance filing in July 2016 to comply with the AUC's decision.

The compliance filing requested the AUC to approve revenue requirements of C$599 million for 2015 and C$685 million for 2016. The decreased revenue requirements requested in the compliance filing, as compared to the 2015-2016 GTA filing updated in October 2015, were primarily due to the AUC approval of ALP's proposed immediate tariff relief of C$415 million for customers for 2015 and 2016, through (i) the discontinuance of construction work-in-progress ("CWIP") in rate base and the return to allowance for funds used during construction ("AFUDC") accounting effective January 1, 2015, resulting in a C$82 million reduction of revenue requirement and the refund of C$277 million previously collected as CWIP in rate base as part of ALP's transmission tariffs during 2011-2014 less related returns of C$12 million and (ii) a change to the flow through method for calculating income taxes for 2016, resulting in further tariff relief of C$68 million.

Operating revenue for the year ended December 31, 2016, included a one-time reduction of $200 million from the 2015-2016 GTA decision received in May 2016 at ALP. The 2015-2016 GTA decision required ALP to refund $200 million to customers in 2016 through reduced monthly billings for the change from receiving cash during construction for the return on CWIP in rate base to recording allowance for borrowed and equity funds used during construction related to construction expenditures during the 2011 to 2014 time period. This amount is offset with higher capitalized interest and allowance for equity funds in the Consolidated Statements of Operations. In addition, the decision required ALP to change to the flow through method of recognizing income tax expense effective January 1, 2016. This change reduced operating revenue by $45 million for the year ended December 31, 2016, with offsetting impacts to income tax expense in the Consolidated Statements of Operations.

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	2016		2015

Deferred income taxes⁽¹⁾	26 years	$	421	$	437
Employee benefit plans⁽²⁾	21 years	525		499
Utah mine disposition⁽³⁾	Various	166		186
Unamortized contract values	7 years	98		110
Deferred net power costs	1 year	33		86
Unrealized loss on derivative contracts	5 years	73		133
Asset retirement obligation	20 years	82		65
Other	Various	145		169
Total regulatory assets		$	1,543	$	1,685

Reflected as:
Current assets		$	53	$	102
Noncurrent assets		1,490		1,583
Total regulatory assets		$	1,543	$	1,685


(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 $1.019 billion and $1.102 billion as of December 31, 2016 and 2015, 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	2016		2015

Cost of removal⁽¹⁾	26 years	$	917	$	894
Deferred income taxes	Various	9		12
Other	Various	106		66
Total regulatory liabilities		$	1,032	$	972

Reflected as:
Current liabilities		$	54	$	34
Noncurrent liabilities		978		938
Total regulatory liabilities		$	1,032	$	972


(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 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 2015, PacifiCorp received approval from the commissions.

In December 2014, PacifiCorp filed an advice letter with the California Public Utility Commission ("CPUC") to request approval to sell certain Utah mining assets and to establish memorandum accounts to track the costs associated with the Utah Mine Disposition for future recovery. 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. On February 6, 2017, a joint motion was filed with the CPUC seeking approval of a settlement agreement reached by PacifiCorp and all other parties. The agreement states, among other things, that the decision to sell certain Utah mining assets is in the public interest. Parties also reserve their rights to additional testimony, briefs, and hearings to the extent the CPUC determines that additional California Environmental Quality Act proceedings are necessary. A CPUC decision on the joint motion and settlement agreement is expected in 2017.

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	2016		2015

Deferred income taxes, net⁽¹⁾	29 years	$	985	$	858
Asset retirement obligations⁽²⁾	9 years	105		94
Employee benefit plans⁽³⁾	11 years	40		39
Unrealized loss on regulated derivative contracts	1 year	2		20
Other	Various	29		33
Total		$	1,161	$	1,044


(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 12 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 $1.2 billion and $1.0 billion as of December 31, 2016 and 2015, 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	2016		2015

Cost of removal accrual⁽¹⁾	29 years	$	665	$	653
Asset retirement obligations⁽²⁾	36 years	117		140
Pre-funded AFUDC on transmission MVPs⁽³⁾	56 years	35		19
Iowa electric revenue sharing accrual⁽⁴⁾	1 year	30		—
Employee benefit plans⁽⁵⁾	11 years	12		—
Unrealized gain on regulated derivative contracts	1 year	6		—
Other	Various	18		19
Total		$	883	$	831


(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 12 for a discussion of asset retirement obligations.


(3)	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.


(4)	Represents current-year accruals under a regulatory arrangement in Iowa in which equity returns exceeding specified thresholds reduce utility plant upon final determination.


(5)	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 and Subsidiaries [Domain]

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters [Text Block]

Regulatory Matters

Refer to Note 6 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	2016		2015

Deferred income taxes⁽¹⁾	27 years	$	141	$	149
Merger costs from 1999 merger	28 years	136		143
Deferred operating costs	20 years	127		87
Decommissioning costs	7 years	114		121
Employee benefit plans⁽²⁾	10 years	105		98
Abandoned projects	3 years	75		91
Asset retirement obligations	7 years	74		79
Legacy meters	16 years	60		64
Merrill Lynch deferred energy costs	3 years	40		56
Other	Various	148		169
Total regulatory assets		$	1,020	$	1,057

Reflected as:
Current assets		$	20	$	—
Other assets		1,000		1,057
Total regulatory assets		$	1,020	$	1,057


(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 $560 million and $572 million as of December 31, 2016 and 2015, respectively. The regulatory assets not earning a return on investment primarily consist of deferred income taxes, merger costs from 1999 merger, asset retirement obligations, deferred operating costs, a portion of the employee benefit plans, deferred energy costs and losses on reacquired debt.

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	2016		2015

Cost of removal⁽¹⁾	33 years	$	294	$	273
Impact fees	6 years	90		—
Energy efficiency program	1 year	37		34
Deferred energy costs	1 year	—		139
Other	Various	32		31
Total regulatory liabilities		$	453	$	477

Reflected as:
Current liabilities		$	37	$	173
Other long-term liabilities		416		304
Total regulatory liabilities		$	453	$	477


(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 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.

Energy Efficiency Program Rates ("EEPR") and Energy Efficiency Implementation Rates ("EEIR")

EEPR was established to allow Nevada Power to recover the costs of implementing energy efficiency programs and EEIR was established to offset the negative impacts on revenue associated with the successful implementation of energy efficiency programs. These rates change once a year in the utility's annual DEAA application based on energy efficiency program budgets prepared by Nevada Power and approved by the PUCN in integrated resource plan proceedings. 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 previously collected for that year. In March 2016, Nevada Power filed an application to reset the EEIR and EEPR and refund the EEIR revenue received in 2015, including carrying charges. In July 2016, the PUCN issued an order accepting a stipulation requiring Nevada Power to refund the 2015 revenue and reset the rates as filed effective October 1, 2016. The EEIR liability for Nevada Power is $10 million and $18 million, which is included in current regulatory liabilities on the Consolidated Balance Sheets as of December 31, 2016 and 2015, respectively.

Chapter 704B Applications

In May 2015, three customers, including MGM Resorts International ("MGM") and Wynn Las Vegas, LLC ("Wynn"), filed applications to purchase energy from alternative providers of a new electric resource and become distribution only service customers. In December 2015, the PUCN granted the applications subject to conditions, including paying an impact fee, on-going charges and receiving approval for specific alternative energy providers and terms. The costs associated with the impact fee and on-going charges were assessed to alleviate the burden on other Nevada Power customers for the applicants' share of previously committed investments and long-term renewable contracts. The impact fee is set on a case-by-case basis by the PUCN and at a level designed such that the remaining customers are not subjected to increased costs. In December 2015, the applicants filed petitions for reconsideration. In January 2016, the PUCN granted reconsideration and updated some of the terms, including removing a limitation related to energy purchased indirectly from NV Energy. In June 2016, MGM and Wynn made the required compliance filings and the PUCN issued orders allowing the customers to acquire electric energy and ancillary services from another energy supplier and become distribution only service customers of Nevada Power. The third customer did not proceed with purchasing energy from alternative providers. In September 2016, MGM and Wynn paid impact fees totaling $97 million. In October 2016, MGM and Wynn became distribution only service customers and started procuring energy from another energy supplier. In December 2016, as contemplated in the PUCN order, the impact fees were increased $2 million to reflect final energy costs for MGM and Wynn.

In September 2016, Switch, Ltd. ("Switch"), a customer of Nevada Power, filed an application with the PUCN to purchase energy from alternative providers of a new electric resource and become a distribution only service customer of Nevada Power. In December 2016, the PUCN approved a stipulation agreement that allowed Switch to purchase energy from alternative providers subject to conditions, including paying an impact fee in the Nevada Power service territory. Switch has provided notice that it intends to proceed with purchasing energy from alternative providers.

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	2016		2015

Employee benefit plans⁽¹⁾	10 years	$	128	$	126
Deferred income taxes⁽²⁾	27 years	85		90
Merger costs from 1999 merger	30 years	80		83
Abandoned projects	9 years	39		44
Renewable energy programs	1 year	25		—
Losses on reacquired debt	17 years	22		22
Other	Various	56		67
Total regulatory assets		$	435	$	432

Reflected as:
Current assets		$	25	$	—
Other assets		410		432
Total regulatory assets		$	435	$	432


(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.


(2)	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.

Sierra Pacific had regulatory assets not earning a return on investment of $305 million and $254 million as of December 31, 2016 and 2015, respectively. The regulatory assets not earning a return on investment primarily consist of deferred income taxes, merger costs from 1999 merger, a portion of the employee benefit plans, losses 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	2016		2015

Cost of removal⁽¹⁾	39 years	$	205	$	208
Deferred energy costs	1 year	64		66
Renewable energy program	1 year	—		8
Other	Various	21		26
Total regulatory liabilities		$	290	$	308

Reflected as:
Current liabilities		$	69	$	78
Other long-term liabilities		221		230
Total regulatory liabilities		$	290	$	308


(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

General Rate Cases

In June 2016, Sierra Pacific filed an electric regulatory rate review with the PUCN. The filing requested no incremental annual revenue relief. In October 2016, Sierra Pacific filed with the PUCN a settlement agreement resolving most, but not all, issues in the proceeding and reduced Sierra Pacific's electric revenue requirement by $3 million spread evenly to all rate classes. In December 2016, the PUCN approved the settlement agreement and established an additional six MW of net metering capacity under the grandfathered rates, which are those net metering rates that were in effect prior to January 2016; the order establishes cost-based rates and a value-based excess energy credit for customers who choose to install private generation after the six MW limitation is reached. The new rates were effective January 1, 2017. In January 2017, Sierra Pacific filed a petition for reconsideration relating to the creation of the additional six MW of net metering at the grandfathered rates. Sierra Pacific believes the effects of the PUCN decision result in additional cost shifting to non-net metering customers and reduces the stipulated rate reduction for other customer classes.

In June 2016, Sierra Pacific filed a gas regulatory rate review with the PUCN. The filing requested a slight decrease in its incremental annual revenue requirement. In October 2016, Sierra Pacific filed with the PUCN a settlement agreement resolving all issues in the proceeding and reduced Sierra Pacific's gas revenue requirement by $2 million. In December 2016, the PUCN approved the settlement agreement. The new rates were effective January 1, 2017.

Energy Efficiency Program Rates ("EEPR") and Energy Efficiency Implementation Rates ("EEIR")

EEPR was established to allow Sierra Pacific to recover the costs of implementing energy efficiency programs and EEIR was established to offset the negative impacts on revenue associated with the successful implementation of energy efficiency programs. These rates change once a year in the utility's annual DEAA application based on energy efficiency program budgets prepared by Sierra Pacific and approved by the PUCN in integrated resource plan proceedings. 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 previously collected for that year. In March 2016, Sierra Pacific filed an application to reset the EEIR and EEPR and refund the EEIR revenue received in 2015, including carrying charges. In July 2016, the PUCN issued an order accepting a stipulation requiring Sierra Pacific to refund the 2015 revenue and reset the rates as filed effective October 1, 2016. The EEIR liability for Sierra Pacific is $2 million and $3 million, which is included in current regulatory liabilities on the Consolidated Balance Sheets as of December 31, 2016 and 2015, respectively.

Chapter 704B Applications

In September 2016, Switch, Ltd. ("Switch"), a customer of Sierra Pacific, filed an application with the PUCN to purchase energy from alternative providers of a new electric resource and become a distribution only service customer of Sierra Pacific. In December 2016, the PUCN approved a stipulation agreement that allowed Switch to purchase energy from alternative providers. Switch has provided notice that it intends to proceed with purchasing energy from alternative providers.