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Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2019
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

Tax Cuts and Jobs Act

The 2017 Tax Reform impacted many areas of income tax law. The most material items include the reduction of the federal corporate tax rate from 35% to 21% effective January 1, 2018, the one-time repatriation tax of foreign earnings and profits and limitations on bonus depreciation for utility property. GAAP requires the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. As a result of the 2017 Tax Reform, in December 2017, the Company reduced deferred income tax liabilities $7,115 million. As it is probable the change in deferred taxes for the Company's regulated businesses will be passed back to customers through regulatory mechanisms, the Company increased net regulatory liabilities by $5,950 million. The reduction in deferred income tax liabilities also resulted in a decrease in deferred income tax expense of $1,150 million, mostly driven by the Company's non-regulated businesses, primarily BHE Renewables, BHE's investment in BYD Company Limited and HomeServices.

As a result of the 2017 Tax Reform, BHE's consolidated net income in 2017 increased by $516 million primarily due to benefits from reductions in deferred income tax liabilities of $1,150 million, partially offset by an accrual for the deemed repatriation of undistributed foreign earnings and profits totaling $419 million and equity earnings charges totaling $228 million mainly for amounts to be returned to the customers of equity investments in regulated entities.

In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to assist in the implementation process of the 2017 Tax Reform by allowing for calculations to be classified as provisional and subject to remeasurement. There are three different classifications for the accounting: (1) completed, (2) not complete but reasonably estimable or (3) not complete and amounts are not reasonably estimable. The Company recorded the impacts of the 2017 Tax Reform in December 2017 and believed all the impacts to be complete with the exception of the repatriation tax on foreign earnings and interpretations of the bonus depreciation rules. The Company determined the amounts recorded and the interpretations relating to these two items to be provisional and subject to remeasurement during the measurement period upon obtaining the necessary additional information to complete the accounting. The Company believed the estimates for the repatriation tax to be reasonable, however, additional time was required to validate the inputs to the foreign earnings and profits calculation, the basis on which the repatriation tax is determined and additional guidance was required to determine state income tax implications. The Company also believed its interpretations for bonus depreciation to be reasonable, however, clarifying guidance was needed. During 2018, the Company finalized its provisional amounts resulting in a $134 million reduction to the repatriation tax liability estimate, based on further analysis of the earnings and profits completed during 2018 and additional guidance from certain states. In addition, the Company recorded a current tax benefit and deferred tax expense of $68 million following clarifying bonus depreciation guidance. As a result of 2017 Tax Reform and the nature of the Company's regulated businesses, the Company reduced the associated deferred income tax liabilities $27 million and increased regulatory liabilities by the same amount.

Iowa Senate File 2417

In May 2018, Iowa Senate File 2417 was signed into law, which, among other items, reduces the state of Iowa corporate tax rate from 12% to 9.8% and eliminates corporate federal deductibility, both for tax years starting in 2021. GAAP requires the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted.

As a result of Iowa Senate File 2417, the Company reduced deferred income tax liabilities $61 million and decreased deferred income tax expense by $2 million. As it is probable the change in deferred taxes for the Company's regulated businesses will be passed back to customers through regulatory mechanisms, the Company increased net regulatory liabilities by $59 million. In connection with Iowa Senate File 2417, the Company determined it was more appropriate to present the deferred income tax assets of $609 million associated with the state of Iowa net operating loss carryforward as a long-term income tax receivable from Berkshire Hathaway as a component of BHE's shareholders' equity. As the Company does not currently expect to receive the majority of the income tax amounts from Berkshire Hathaway related to the state of Iowa prior to the 2021 effective date, the Company remeasured the long-term income tax receivable with Berkshire Hathaway at the enactment date and recorded a decrease to the long-term income tax receivable from Berkshire Hathaway of $115 million. Subsequent to the remeasurement date, the Company amended the tax sharing agreement with Berkshire Hathaway and received $90 million in 2019 related to previously used state of Iowa net operating loss carryforwards.

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
(956
)
 
$
(686
)
 
$
(653
)
State
(13
)
 
(9
)
 
(3
)
Foreign
81

 
104

 
83

 
(888
)
 
(591
)
 
(573
)
Deferred:
 
 
 
 
 
Federal
431

 
165

 
(76
)
State
(127
)
 
(131
)
 
100

Foreign
(8
)
 
(20
)
 
2

 
296

 
14

 
26

 
 
 
 
 
 
Investment tax credits
(6
)
 
(6
)
 
(7
)
Total
$
(598
)
 
$
(583
)
 
$
(554
)


A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax (benefit) expense is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
21
 %
 
35
 %
Income tax credits
(32
)
 
(30
)
 
(20
)
Effects of ratemaking
(6
)
 
(8
)
 
(1
)
State income tax, net of federal income tax benefit
(5
)
 
(6
)
 
3

Effects of tax rate change and repatriation tax
—

 
(4
)
 
(31
)
Income tax effect of foreign income
(2
)
 
(3
)
 
(5
)
Equity income
—

 
1

 
(2
)
Other, net
(1
)
 
(1
)
 
(1
)
Effective income tax rate
(25
)%
 
(30
)%
 
(22
)%


Effects of 2017 Tax Reform have been included in state income tax, net of federal income tax benefit, effects of tax rate change and repatriation tax and equity income.

Income tax credits relate primarily to production tax credits ("PTC") from wind-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.

The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated United States federal and Iowa state income tax returns and the majority of the Company's United States federal income tax is remitted to or received from Berkshire Hathaway. As of December 31, 2019, the Company had a current income tax payable to Berkshire Hathaway for federal income tax of $76 million and a long-term income tax receivable from Berkshire Hathaway, reflected as a component of BHE's shareholders' equity, of $530 million for Iowa state income tax. As of December 31, 2018, the Company had a current income tax payable to Berkshire Hathaway for federal income tax of $172 million, a current income tax receivable from Berkshire Hathaway for Iowa state income tax of $90 million and a long-term income tax receivable from Berkshire Hathaway, reflected as a component of BHE's shareholders' equity, of $457 million for Iowa state income tax. Additionally, for the years ended December 31, 2019 and 2018 the Company generated $79 million and $53 million, respectively, of state of Iowa net operating losses which were carried forward and increased the long-term income tax receivable from Berkshire Hathaway.

The net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
1,610

 
$
1,674

Federal, state and foreign carryforwards
575

 
596

AROs
306

 
232

Other
590

 
527

Total deferred income tax assets
3,081

 
3,029

Valuation allowances
(143
)
 
(137
)
Total deferred income tax assets, net
2,938

 
2,892

 
 
 
 
Deferred income tax liabilities:
 
 
 
Property-related items
(10,439
)
 
(10,185
)
Investments
(1,137
)
 
(876
)
Regulatory assets
(631
)
 
(656
)
Other
(384
)
 
(222
)
Total deferred income tax liabilities
(12,591
)
 
(11,939
)
Net deferred income tax liability
$
(9,653
)
 
$
(9,047
)


The following table provides the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2019 (in millions):
 
Federal
 
State
 
Foreign
 
Total
Net operating loss carryforwards(1)
$
292

 
$
5,819

 
$
523

 
$
6,634

Deferred income taxes on net operating loss carryforwards
61

 
323

 
141

 
525

Expiration dates
2020 - indefinite
 
2020 - 2039
 
2035 - 2038
 


 
 
 
 
 
 
 
 
Tax credits
$
23

 
$
27

 
$
—

 
$
50

Expiration dates
2023 - indefinite
 
2020 - indefinite
 

 


(1)
The federal net operating loss carryforwards relate principally to net operating loss carryforwards of subsidiaries that are tax residents in both the United States and the United Kingdom. The federal net operating loss carryforwards were generated prior to Berkshire Hathaway Inc.'s ownership and will begin to expire in 2020.

The United States Internal Revenue Service has closed its examination of the Company's income tax returns through December 31, 2011. The statute of limitations for the Company's income tax returns have expired through December 31, 2009, for California, Nebraska, Oregon and Utah, through December 31, 2011 for Minnesota and Montana, and through December 31, 2015, except for the impact of any federal audit adjustments, for Idaho, Illinois, Iowa and Kansas. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of the Company's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):
 
2019
 
2018
 
 
 
 
Beginning balance
$
185

 
$
181

Additions based on tax positions related to the current year
3

 
4

Additions for tax positions of prior years
13

 
38

Reductions for tax positions of prior years
(37
)
 
(38
)
Statute of limitations
(9
)
 
2

Settlements
(5
)
 
(2
)
Interest and penalties
(5
)
 
—

Ending balance
$
145

 
$
185



As of December 31, 2019 and 2018, the Company had unrecognized tax benefits totaling $139 million and $154 million, respectively, that if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect the Company's effective income tax rate.
PacifiCorp [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
 
 
 
 
 
 
Current:
 
 
 
 
 
Federal
$
158

 
$
164

 
$
249

State
34

 
40

 
41

Total
192

 
204

 
290

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
(132
)
 
(187
)
 
59

State
4

 
(9
)
 
15

Total
(128
)
 
(196
)
 
74

 
 
 
 
 
 
Investment tax credits
(3
)
 
(3
)
 
(4
)
Total income tax expense
$
61

 
$
5

 
$
360



A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
21
 %
 
35
 %
State income taxes, net of federal income tax benefit
3

 
4

 
3

Amortization of excess deferred income taxes
(11
)
 
(17
)
 
—

Effects of ratemaking
(2
)
 
—

 
1

Federal income tax credits
(3
)
 
(7
)
 
(5
)
Other
(1
)
 
—

 
(2
)
Effective income tax rate
7
 %
 
1
 %
 
32
 %


Income tax credits relate primarily to production tax credits ("PTC") earned by PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. Amortization of excess deferred income taxes is primarily attributable to the amortization of $91 million of Oregon allocated excess deferred income taxes pursuant to the Oregon Renewable Adjustment Clause settlement, whereby a portion of Oregon allocated excess deferred income taxes was used to accelerate depreciation on Oregon's share of certain repowered wind facilities. Amortization of excess deferred income taxes in 2018 is primarily attributable to the amortization of $127 million of Utah allocated excess deferred income taxes pursuant to a 2017 Tax Reform settlement approved by the UPSC, whereby a portion of Utah allocated excess deferred income taxes was used to accelerate depreciation on Utah's share of certain thermal plant units.

The net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
 
 
 
 
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
731

 
$
752

Employee benefits
83

 
91

Derivative contracts and unamortized contract values
33

 
45

State carryforwards
70

 
77

Asset retirement obligations
61

 
53

Other
68

 
56

 
1,046

 
1,074

Deferred income tax liabilities:
 
 
 
Property, plant and equipment
(3,312
)
 
(3,335
)
Regulatory assets
(276
)
 
(273
)
Other
(21
)
 
(9
)
 
(3,609
)
 
(3,617
)
Net deferred income tax liability
$
(2,563
)
 
$
(2,543
)


The following table provides PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2019 (in millions):
 
 
State
 
 
 
Net operating loss carryforwards
 
$
1,140

Deferred income taxes on net operating loss carryforwards
 
$
51

Expiration dates
 
2023 - 2032

 
 
 
Tax credit carryforwards
 
$
19

Expiration dates
 
2020 - indefinite



The United States Internal Revenue Service has closed its examination of PacifiCorp's income tax returns through December 31, 2011. The statute of limitations for PacifiCorp's state income tax returns have expired through December 31, 2011, with the exception of California, Utah and Oregon, for which the statutes have expired through December 31, 2009. In addition, Idaho's statute of limitations has expired through December 31, 2015, except for the impact of any federal audit adjustments. The statute of limitations expiring for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.
MidAmerican Energy Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

MidAmerican Energy's income tax benefit from continuing operations consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
(478
)
 
$
(276
)
 
$
(490
)
State
(47
)
 
(12
)
 
(25
)
 
(525
)
 
(288
)
 
(515
)
Deferred:
 
 
 
 
 
Federal
166

 
42

 
335

State
(11
)
 
(8
)
 
(2
)
 
155

 
34

 
333

 
 
 
 
 
 
Investment tax credits
(1
)
 
(1
)
 
(1
)
Total
$
(371
)
 
$
(255
)
 
$
(183
)


A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax benefit from continuing operations is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
21
 %
 
35
 %
Income tax credits
(90
)
 
(73
)
 
(68
)
State income tax, net of federal income tax benefit
(11
)
 
(4
)
 
(4
)
Effects of ratemaking
(8
)
 
(5
)
 
(7
)
Other, net
—

 
1

 
1

Effective income tax rate
(88
)%
 
(60
)%
 
(43
)%


Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.

MidAmerican Energy's net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
368

 
$
405

Asset retirement obligations
234

 
164

Employee benefits
26

 
47

Other
71

 
80

Total deferred income tax assets
699

 
696

 
 
 
 
Deferred income tax liabilities:
 
 
 
Depreciable property
(3,253
)
 
(2,945
)
Regulatory assets
(68
)
 
(61
)
Other
(4
)
 
(12
)
Total deferred income tax liabilities
(3,325
)
 
(3,018
)
 
 
 
 
Net deferred income tax liability
$
(2,626
)
 
$
(2,322
)


As of December 31, 2019, MidAmerican Energy has available $51 million of state tax carryforwards, principally related to $745 million of net operating losses, that expire at various intervals between 2020 and 2038.

The United States Internal Revenue Service has closed its examination of MidAmerican Energy's income tax returns through December 31, 2011. The statute of limitations for MidAmerican Energy's state income tax returns have expired through December 31, 2009, with the exception of Iowa and Illinois, for which the statute of limitations have expired through December 31, 2015, except for the impact of any federal audit adjustments. The statute of limitations expiring for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of MidAmerican Energy's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):
 
2019
 
2018
 
 
 
 
Beginning balance
$
10

 
$
12

Additions based on tax positions related to the current year
5

 
4

Additions for tax positions of prior years
10

 
47

Reductions based on tax positions related to the current year
(5
)
 
(4
)
Reductions for tax positions of prior years
(12
)
 
(48
)
Interest and penalties
—

 
(1
)
Ending balance
$
8

 
$
10



As of December 31, 2019, MidAmerican Energy had unrecognized tax benefits totaling $27 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Energy's effective income tax rate.
MidAmerican Funding, LLC and Subsidiaries [Domain]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

MidAmerican Funding's income tax benefit from continuing operations consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
(480
)
 
$
(280
)
 
$
(505
)
State
(49
)
 
(14
)
 
(31
)
 
(529
)
 
(294
)
 
(536
)
Deferred:
 
 
 
 
 
Federal
164

 
42

 
338

State
(11
)
 
(9
)
 
(3
)
 
153

 
33

 
335

 
 
 
 
 
 
Investment tax credits
(1
)
 
(1
)
 
(1
)
Total
$
(377
)
 
$
(262
)
 
$
(202
)


A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax benefit from continuing operations is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
 %
 
21
 %
 
35
 %
Income tax credits
(94
)
 
(76
)
 
(77
)
State income tax, net of federal income tax benefit
(12
)
 
(4
)
 
(6
)
Effects of ratemaking
(8
)
 
(6
)
 
(8
)
Other, net
—

 
1

 
2

Effective income tax rate
(93
)%
 
(64
)%
 
(54
)%


Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.

MidAmerican Funding's net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
368

 
$
405

Asset retirement obligations
234

 
164

Employee benefits
26

 
47

Other
76

 
85

Total deferred income tax assets
704

 
701

 
 
 
 
Deferred income tax liabilities:
 
 
 
Depreciable property
(3,253
)
 
(2,947
)
Regulatory assets
(68
)
 
(62
)
Other
(4
)
 
(11
)
Total deferred income tax liabilities
(3,325
)
 
(3,020
)
 
 
 
 
Net deferred income tax liability
$
(2,621
)
 
$
(2,319
)


As of December 31, 2019, MidAmerican Funding has available $51 million of state tax carryforwards, principally related to $745 million of net operating losses, that expire at various intervals between 2020 and 2038.

The United States Internal Revenue Service has closed its examination MidAmerican Funding’s income tax returns through December 31, 2011. The statute of limitations for MidAmerican Funding’s state income tax returns have expired through December 31, 2009, with the exception of Iowa and Illinois, for which the statute of limitations have expired through December 31, 2015, except for the impact of any federal audit adjustments. The statute of limitations expiring for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

A reconciliation of the beginning and ending balances of MidAmerican Funding's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):
 
2019
 
2018
 
 
 
 
Beginning balance
$
10

 
$
12

Additions based on tax positions related to the current year
5

 
4

Additions for tax positions of prior years
10

 
47

Reductions based on tax positions related to the current year
(5
)
 
(4
)
Reductions for tax positions of prior years
(12
)
 
(48
)
Interest and penalties
—

 
(1
)
Ending balance
$
8

 
$
10



As of December 31, 2019, MidAmerican Funding had unrecognized tax benefits totaling $27 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Funding's effective income tax rate.
Nevada Power Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
 
 
 
 
 
 
Current – Federal
$
105

 
$
84

 
$
62

Deferred – Federal
(31
)
 
(13
)
 
95

Uncertain tax positions
—

 
2

 
—

Investment tax credits
(1
)
 
(1
)
 
(1
)
Total income tax expense
$
73

 
$
72

 
$
156



A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
%
 
21
%
 
35
%
Non-deductible expenses
—

 
3

 
—

Effect of ratemaking
—

 
—

 
1

Effect of tax rate change
—

 
—

 
1

Other
1

 
—

 
1

Effective income tax rate
22
%
 
24
%
 
38
%


The net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
211

 
$
209

Operating and finance leases
99

 
97

Employee benefits
14

 
15

Customer advances
19

 
18

Other
9

 
9

Total deferred income tax assets
352

 
348

 
 
 
 
Deferred income tax liabilities:
 
 
 
Property related items
(797
)
 
(799
)
Regulatory assets
(166
)
 
(196
)
Operating and finance leases
(95
)
 
(94
)
Other
(8
)
 
(8
)
Total deferred income tax liabilities
(1,066
)
 
(1,097
)
Net deferred income tax liability
$
(714
)
 
$
(749
)


The United States Internal Revenue Service has closed its examination of NV Energy’s consolidated income tax returns through December 31, 2008, and the statute of limitations has expired for NV Energy’s consolidated income tax returns through the short year ended December 19, 2013. The statute of limitations expiring may not preclude the Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the examination is not closed.
Sierra Pacific Power Company [Member]  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes [Text Block]
Income Taxes

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
 
2019
 
2018
 
2017
 
 
 
 
 
 
Current – Federal
$
19

 
$
23

 
$
—

Deferred – Federal
10

 
7

 
56

Uncertain tax positions
—

 
1

 
—

Investment tax credits
(1
)
 
(1
)
 
(1
)
Total income tax expense
$
28

 
$
30

 
$
55



A reconciliation of the federal statutory income rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:
 
2019
 
2018
 
2017
 
 
 
 
 
 
Federal statutory income tax rate
21
%
 
21
%
 
35
 %
Non-deductible expenses
—

 
4

 
—

Effect of tax rate change
—

 
—

 
(1
)
Effective income tax rate
21
%
 
25
%
 
34
 %


The net deferred income tax liability consists of the following as of December 31 (in millions):
 
2019
 
2018
Deferred income tax assets:
 
 
 
Regulatory liabilities
$
70

 
$
70

Employee benefit plans
6

 
10

Operating and finance leases
13

 
8

Customer Advances
9

 
8

Other
6

 
6

Total deferred income tax assets
104

 
102

 
 
 
 
Deferred income tax liabilities:
 
 
 
Property related items
(370
)
 
(346
)
Regulatory assets
(62
)
 
(73
)
Operating and finance leases
(13
)
 
(8
)
Other
(6
)
 
(6
)
Total deferred income tax liabilities
(451
)
 
(433
)
Net deferred income tax liability
$
(347
)
 
$
(331
)


The United States Internal Revenue Service has closed its examination of NV Energy’s consolidated income tax returns through December 31, 2008, and the statute of limitations has expired for NV Energy’s consolidated income tax returns through the short year ended December 19, 2013. The statute of limitations expiring may not preclude the Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the examination is not closed.