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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Other(1)		Total
As of June 30, 2021
Assets:
Commodity derivatives	$	5	$	232	$	158	$	(40)	$	355
Foreign currency exchange rate derivatives	—		16		—		—		16
Interest rate derivatives	—		1		42		—		43
Mortgage loans held for sale	—		2,082		—		—		2,082
Money market mutual funds(2)	795		—		—		—		795
Debt securities:
United States government obligations	222		—		—		—		222
International government obligations	—		5		—		—		5
Corporate obligations	—		78		—		—		78
Municipal obligations	—		2		—		—		2
Agency, asset and mortgage-backed obligations	—		1		—		—		1
Equity securities:
United States companies	412		—		—		—		412
International companies	6,735		—		—		—		6,735
Investment funds	266		—		—		—		266
	$	8,435	$	2,417	$	200	$	(40)	$	11,012
Liabilities:
Commodity derivatives	$	(1)	$	(100)	$	(53)	$	34	$	(120)
Foreign currency exchange rate derivatives	—		(5)		—		—		(5)
Interest rate derivatives	(3)		(16)		(1)		4		(16)
	$	(4)	$	(121)	$	(54)	$	38	$	(141)


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Other(1)		Total
As of December 31, 2020
Assets:
Commodity derivatives	$	1	$	73	$	135	$	(21)	$	188
Foreign currency exchange rate derivatives	—		20		—		—		20
Interest rate derivatives	—		—		62		—		62
Mortgage loans held for sale	—		2,001		—		—		2,001
Money market mutual funds(2)	873		—		—		—		873
Debt securities:
United States government obligations	200		—		—		—		200
International government obligations	—		5		—		—		5
Corporate obligations	—		73		—		—		73
Municipal obligations	—		2		—		—		2
Agency, asset and mortgage-backed obligations	—		6		—		—		6
Equity securities:
United States companies	381		—		—		—		381
International companies	5,906		—		—		—		5,906
Investment funds	201		—		—		—		201
	$	7,562	$	2,180	$	197	$	(21)	$	9,918
Liabilities:
Commodity derivatives	$	(1)	$	(90)	$	(19)	$	56	$	(54)
Foreign currency exchange rate derivatives	—		(2)		—		—		(2)
Interest rate derivatives	(5)		(60)		—		—		(65)
	$	(6)	$	(152)	$	(19)	$	56	$	(121)

(1)Represents netting under master netting arrangements and a net cash collateral payable of $2 million as of June 30, 2021 and a net cash collateral receivable of $35 million as of December 31, 2020.

(2)Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):


	Three-Month Periods				Six-Month Periods
	Ended June 30,				Ended June 30,
			Interest				Interest
	Commodity		Rate		Commodity		Rate
	Derivatives		Derivatives		Derivatives		Derivatives
2021:
Beginning balance	$	124	$	41	$	116	$	62
Changes included in earnings(1)	(10)		—		(16)		(21)
Changes in fair value recognized in OCI	(6)		—		(7)		—
Changes in fair value recognized in net regulatory assets	(7)		—		9		—

Purchases	1		—		1		—

Settlements	3		—		2		—

Ending balance	$	105	$	41	$	105	$	41


	Three-Month Periods				Six-Month Periods
	Ended June 30,				Ended June 30,
			Interest				Interest
	Commodity		Rate		Commodity		Rate
	Derivatives		Derivatives		Derivatives		Derivatives
2020:
Beginning balance	$	52	$	45	$	97	$	14
Changes included in earnings(1)	(1)		33		(4)		64

Changes in fair value recognized in net regulatory assets	(16)		—		(56)		—
Purchases	1		—		3		—

Settlements	8		—		4		—

Ending balance	$	44	$	78	$	44	$	78

(1)Changes included in earnings for interest rate derivatives are reported net of amounts related to the satisfaction of the associated loan commitment.

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	48,873	$	57,059	$	49,866	$	60,633

PAC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents PacifiCorp's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Other(1)		Total
As of June 30, 2021
Assets:
Commodity derivatives	$	—	$	148	$	—	$	(27)	$	121
Money market mutual funds(2)	36		—		—		—		36
Investment funds	31		—		—		—		31
	$	67	$	148	$	—	$	(27)	$	188

Liabilities - Commodity derivatives	$	—	$	(46)	$	—	$	16	$	(30)

As of December 31, 2020
Assets:
Commodity derivatives	$	—	$	36	$	—	$	(3)	$	33
Money market mutual funds(2)	6		—		—		—		6
Investment funds	25		—		—		—		25
	$	31	$	36	$	—	$	(3)	$	64

Liabilities - Commodity derivatives	$	—	$	(53)	$	—	$	27	$	(26)

(1)Represents netting under master netting arrangements and a net cash collateral payable of $11 million and a net cash collateral receivable of $24 million as of June 30, 2021 and December 31, 2020, respectively.

(2)Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, by Balance Sheet Grouping

PacifiCorp's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of PacifiCorp's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of PacifiCorp's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of PacifiCorp's long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	8,214	$	10,133	$	8,612	$	10,995

MEC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents MidAmerican Energy's financial assets and liabilities recognized on the Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Other(1)		Total
As of June 30, 2021:
Assets:
Commodity derivatives	$	—	$	20	$	4	$	(4)	$	20
Money market mutual funds(2)	7		—		—		—		7
Debt securities:
United States government obligations	222		—		—		—		222
International government obligations	—		5		—		—		5
Corporate obligations	—		78		—		—		78
Municipal obligations	—		2		—		—		2
Agency, asset and mortgage-backed obligations	—		1		—		—		1
Equity securities:
United States companies	412		—		—		—		412
International companies	8		—		—		—		8
Investment funds	24		—		—		—		24
	$	673	$	106	$	4	$	(4)	$	779

Liabilities - commodity derivatives	$	(1)	$	(2)	$	(5)	$	7	$	(1)


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Other(1)		Total
As of December 31, 2020:
Assets:
Commodity derivatives	$	—	$	4	$	5	$	(5)	$	4
Money market mutual funds(2)	41		—		—		—		41
Debt securities:
United States government obligations	200		—		—		—		200
International government obligations	—		5		—		—		5
Corporate obligations	—		73		—		—		73
Municipal obligations	—		2		—		—		2
Agency, asset and mortgage-backed obligations	—		6		—		—		6
Equity securities:
United States companies	381		—		—		—		381
International companies	9		—		—		—		9
Investment funds	17		—		—		—		17
	$	648	$	90	$	5	$	(5)	$	738

Liabilities - commodity derivatives	$	—	$	(4)	$	(3)	$	5	$	(2)

(1)Represents netting under master netting arrangements and a net cash collateral receivable of $3 million and $— million as of June 30, 2021 and December 31, 2020, respectively.

(2)Amounts are included in cash and cash equivalents and investments and restricted investments on the Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, by Balance Sheet Grouping

MidAmerican Energy's long-term debt is carried at cost on the Balance Sheets. The fair value of MidAmerican Energy's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Energy's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Energy's long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value

Long-term debt	$	7,224	$	8,698	$	7,210	$	9,130

MidAmerican Funding, LLC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, by Balance Sheet Grouping

MidAmerican Funding's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of MidAmerican Funding's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Funding's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Funding's long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value

Long-term debt	$	7,464	$	9,020	$	7,450	$	9,466

NPC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents Nevada Power's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Total
As of June 30, 2021
Assets:
Commodity derivatives	$	—	$	—	$	52	$	52
Money market mutual funds(1)	70		—		—		70
Investment funds	2		—		—		2
	$	72	$	—	$	52	$	124

Liabilities - commodity derivatives	$	—	$	—	$	(27)	$	(27)

As of December 31, 2020
Assets:
Commodity derivatives	$	—	$	—	$	26	$	26
Money market mutual funds(1)	21		—		—		21
Investment funds	2		—		—		2
	$	23	$	—	$	26	$	49

Liabilities - commodity derivatives	$	—	$	—	$	(11)	$	(11)

(1)Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reconciles the beginning and ending balances of Nevada Power's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):


	Three-Month Periods				Six-Month Periods
	Ended June 30,				Ended June 30,
	2021		2020		2021		2020

Beginning balance	$	27	$	(38)	$	15	$	(8)
Changes in fair value recognized in regulatory assets	(6)		(13)		5		(44)

Settlements	4		7		5		8
Ending balance	$	25	$	(44)	$	25	$	(44)

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of Nevada Power's long‑term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	2,498	$	3,105	$	2,496	$	3,245

SPPC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents Sierra Pacific's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Total
As of June 30, 2021
Assets:
Commodity derivatives	$	—	$	—	$	18	$	18
Money market mutual funds(1)	8		—		—		8

	$	8	$	—	$	18	$	26

Liabilities - commodity derivatives	$	—	$	—	$	(6)	$	(6)

As of December 31, 2020
Assets:
Commodity derivatives	$	—	$	—	$	9	$	9
Money market mutual funds(1)	17		—		—		17

	$	17	$	—	$	9	$	26

Liabilities - commodity derivatives	$	—	$	—	$	(2)	$	(2)

(1)Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of Sierra Pacific's long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	1,164	$	1,324	$	1,164	$	1,358

EEGH

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents Eastern Energy Gas' financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):


	Input Levels for Fair Value Measurements
	Level 1		Level 2		Level 3		Total
As of June 30, 2021
Assets:

Foreign currency exchange rate derivatives	$	—	$	16	$	—	$	16
Money market mutual funds(1)	45		—		—		45
Investment funds	13		—		—		13
	$	58	$	16	$	—	$	74

Liabilities:

Foreign currency exchange rate derivatives	$	—	$	(5)	$	—	$	(5)

	$	—	$	(5)	$	—	$	(5)

As of December 31, 2020
Assets:

Foreign currency exchange rate derivatives	$	—	$	20	$	—	$	20

	$	—	$	20	$	—	$	20

Liabilities:
Commodity derivatives	$	—	$	(1)	$	—	$	(1)
Foreign currency exchange rate derivatives	—		(2)		—		(2)
Interest rate derivatives	—		(6)		—		(6)
	$	—	$	(9)	$	—	$	(9)

(1)Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and estimated fair value of Eastern Energy Gas' long-term debt (in millions):


	As of June 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value

Long-term debt	$	3,916	$	4,298	$	4,425	$	5,012