MidAmerican Energy Navigates Regulatory Landscape in Q3 Filing

TL;DR

**MidAmerican Energy's Q3 filing shows business as usual, but keep an eye on those wildfire liabilities impacting its parent, Berkshire Hathaway Energy.**

AI Summary

MIDAMERICAN ENERGY CO, a subsidiary of Berkshire Hathaway Energy Company, filed its 10-Q for the quarter ended September 30, 2025. While specific revenue and net income figures for MidAmerican Energy Company are not detailed in the provided excerpt, the filing indicates its operational stability within the larger Berkshire Hathaway Energy structure. The company, an Iowa Corporation, is wholly owned by MHC Inc., a direct subsidiary of MidAmerican Funding, LLC. As of October 30, 2025, MidAmerican Energy Company had 70,980,203 shares of common stock outstanding. The filing highlights the complex ownership structure within Berkshire Hathaway Energy, with multiple utility and energy transmission entities operating under its umbrella. Key risks identified across the Registrants include general economic conditions, environmental regulations, wildfire liabilities, and the ability to recover costs through regulatory rate reviews. The strategic outlook emphasizes compliance with regulatory requirements and managing operational risks inherent in the utility sector.

Why It Matters

This filing provides a glimpse into the operational and financial health of MidAmerican Energy, a key utility asset within Berkshire Hathaway's vast portfolio. For investors, understanding the stability and regulatory environment of such a core utility is crucial, especially given the broader market's focus on infrastructure and stable returns. Employees benefit from the continued operational stability, while customers rely on the company's ability to provide reliable energy services. In a competitive context, MidAmerican Energy's performance reflects on Berkshire Hathaway Energy's overall strategy in the regulated utility sector, influencing market perceptions of its resilience against environmental and economic pressures.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant mention of 'Wildfires' and associated 'costly litigation' and 'liability' for PacifiCorp, a related entity under Berkshire Hathaway Energy. While not directly impacting MidAmerican Energy, these risks for the parent company and its subsidiaries could indirectly affect capital allocation or overall group financial health. The filing also notes the 'outcome of regulatory rate reviews' as a key risk, which directly impacts MidAmerican Energy's ability to recover costs.

Analyst Insight

Investors should monitor the ongoing legal proceedings and regulatory outcomes related to wildfire liabilities affecting Berkshire Hathaway Energy's subsidiaries, as these could create ripple effects across the entire portfolio. Evaluate MidAmerican Energy's specific rate recovery mechanisms and regulatory environment in Iowa for direct impact on its profitability.

Key Numbers

• 70,980,203 — Shares of common stock outstanding (MidAmerican Energy Company as of October 30, 2025, indicating its equity structure.)

Key Players & Entities

• MIDAMERICAN ENERGY CO (company) — Registrant in 10-Q filing
• Berkshire Hathaway Energy Company (company) — Parent company of MidAmerican Energy Company's ultimate parent
• MHC Inc. (company) — Direct parent of MidAmerican Energy Company
• MidAmerican Funding, LLC (company) — Parent of MHC Inc.
• PacifiCorp (company) — Related entity facing wildfire litigation
• SEC (regulator) — United States Securities and Exchange Commission
• October 30, 2025 (date) — Date for outstanding common stock count
• 70,980,203 (dollar_amount) — Shares of common stock outstanding for MidAmerican Energy Company
• September 30, 2025 (date) — End of the quarterly period for the 10-Q filing
• Iowa Utilities Commission (regulator) — Regulatory body for MidAmerican Energy Company

FAQ

Risk Factors

• Wildfire Liabilities [high — operational]: The company faces significant risks related to wildfire liabilities, particularly in regions prone to such events. These liabilities can arise from the company's operations and may result in substantial financial costs and reputational damage if not adequately managed.
• Environmental Regulations [medium — regulatory]: Compliance with evolving environmental regulations is a key risk. Changes in environmental laws and standards can necessitate significant capital expenditures for infrastructure upgrades and operational adjustments, impacting profitability and operational flexibility.
• General Economic Conditions [medium — market]: The company's financial performance is susceptible to fluctuations in general economic conditions. Economic downturns can lead to reduced energy demand, increased customer defaults, and a more challenging rate-setting environment, affecting revenue and profitability.
• Cost Recovery Through Rate Reviews [medium — regulatory]: The ability to recover operational costs and capital investments through regulatory rate reviews is critical. Delays or unfavorable outcomes in rate cases can negatively impact the company's financial health and its capacity to fund necessary infrastructure projects.

Industry Context

MidAmerican Energy Company operates within the highly regulated utility sector, characterized by significant capital investments in infrastructure and a strong reliance on rate-setting by regulatory bodies. The industry is increasingly focused on integrating renewable energy sources and managing the environmental impact of operations, while facing challenges from evolving economic conditions and potential liabilities like wildfires.

Regulatory Implications

The company's operations are subject to extensive state and federal regulations. Key implications include the need for robust compliance programs, the critical role of regulatory rate reviews in cost recovery, and the potential for significant financial impact from environmental mandates and liabilities.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Assess the company's exposure to wildfire liabilities.
3. Evaluate the impact of general economic conditions on energy demand and customer payments.

Key Dates

• 2025-09-30: Quarter ended September 30, 2025 — This is the reporting period for the 10-Q filing, providing the latest financial and operational data for MidAmerican Energy Company and its parent entities.
• 2025-10-31: Filing date of the 10-Q — Indicates the timeliness of reporting and provides investors with current information.
• 2025-10-30: Shares of common stock outstanding reported — Provides insight into the company's equity structure and scale.
• 2024-12-31: Previous year-end balance sheet date — Serves as a comparison point for the current period's financial position.
• 2024-09-30: Prior year comparative period — Allows for year-over-year analysis of financial performance trends.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and condition. (This document is the primary source of information for the analysis of MidAmerican Energy Company's financial status for the specified quarter.)

Berkshire Hathaway Energy Company

A holding company that owns and operates a diverse portfolio of energy businesses, including MidAmerican Energy Company. (Provides context for MidAmerican Energy Company's ownership structure and its place within a larger energy conglomerate.)

MHC Inc.

A direct subsidiary of MidAmerican Funding, LLC, which wholly owns MidAmerican Energy Company. (Illustrates the multi-layered ownership structure leading up to MidAmerican Energy Company.)

PCAOB

Public Company Accounting Oversight Board, a non-profit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors. (The independent auditor's report references PCAOB standards, indicating adherence to rigorous auditing and review procedures.)

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, revenues, expenses, and cash flows of a parent company and its subsidiaries as if they were a single economic entity. (These statements are the core of the 10-Q, providing the aggregated financial picture of Berkshire Hathaway Energy Company and its subsidiaries.)

Year-Over-Year Comparison

The provided excerpt focuses on the current period's filing and does not contain comparative data from the previous year's 10-Q. Therefore, a direct comparison of key metrics such as revenue growth, margin changes, or the emergence of new risks cannot be made based on this information. The current filing does indicate a significant increase in 'Cash and cash equivalents' from $1,392 million as of December 31, 2024, to $2,155 million as of September 30, 2025, suggesting improved liquidity.

Key Financial Figures

• $1.00 — 30, 2025, 1,000 shares of common stock, $1.00 stated value, were outstanding. All sh
• $3.75 — 30, 2025, 1,000 shares of common stock, $3.75 par value, were outstanding. All of th
• $10,000 — 0, 2025, 60,101 shares of common stock, $10,000 par value, were outstanding. This comb

Filing Documents

• bhe-20250930.htm (10-Q) — 8668KB
• bhe93025ex31.htm (EX-3.1) — 497KB
• sppc93024ex45.htm (EX-4.5) — 615KB
• sppc93024ex46.htm (EX-4.6) — 168KB
• bhe93025ex151.htm (EX-15.1) — 3KB
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• bhe93025ex311.htm (EX-31.1) — 11KB
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• llc93025ex317.htm (EX-31.7) — 11KB
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• npc93025ex319.htm (EX-31.9) — 11KB
• npc93025ex3110.htm (EX-31.10) — 11KB
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• bhe93025ex321.htm (EX-32.1) — 5KB
• bhe93025ex322.htm (EX-32.2) — 5KB
• pac93025ex323.htm (EX-32.3) — 5KB
• pac93025ex324.htm (EX-32.4) — 5KB
• mec93025ex325.htm (EX-32.5) — 5KB
• mec93025ex326.htm (EX-32.6) — 5KB
• llc93025ex327.htm (EX-32.7) — 5KB
• llc93025ex328.htm (EX-32.8) — 5KB
• npc93025ex329.htm (EX-32.9) — 5KB
• npc93025ex3210.htm (EX-32.10) — 5KB
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• eegh93025ex3214.htm (EX-32.14) — 5KB
• egts93025ex3215.htm (EX-32.15) — 5KB
• egts93025ex3216.htm (EX-32.16) — 5KB
• pac93025ex95.htm (EX-95) — 32KB
• bhe-20250930_g1.jpg (GRAPHIC) — 113KB
• 0001081316-25-000022.txt ( ) — 41687KB
• bhe-20250930.xsd (EX-101.SCH) — 145KB
• bhe-20250930_cal.xml (EX-101.CAL) — 175KB
• bhe-20250930_def.xml (EX-101.DEF) — 1974KB
• bhe-20250930_lab.xml (EX-101.LAB) — 1049KB
• bhe-20250930_pre.xml (EX-101.PRE) — 2189KB
• bhe-20250930_htm.xml (XML) — 8542KB

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 209 Item 4.

Controls and Procedures

Controls and Procedures 209 PART II Item 1.

Legal Proceedings

Legal Proceedings 210 Item 1A.

Risk Factors

Risk Factors 218 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 219 Item 3. Defaults Upon Senior Securities 219 Item 4. Mine Safety Disclosures 219 Item 5. Other Information 219 Item 6. Exhibits 219

Signatures

Signatures 224 i Definition of Abbreviations and Industry Terms When used in Forward-Looking Statements, Part I - Items 2 through 3, and Part II - Items 1 through 6, the following terms have the definitions indicated. Berkshire Hathaway Energy Company and Related Entities BHE Berkshire Hathaway Energy Company Berkshire Hathaway Berkshire Hathaway Inc. Berkshire Hathaway Energy or the Company Berkshire Hathaway Energy Company and its subsidiaries PacifiCorp PacifiCorp and its subsidiaries MidAmerican Funding MidAmerican Funding, LLC and its subsidiaries MidAmerican Energy MidAmerican Energy Company NV Energy NV Energy, Inc. and its subsidiaries Nevada Power Nevada Power Company and its subsidiaries Sierra Pacific Sierra Pacific Power Company and its subsidiaries Nevada Utilities Nevada Power Company and its subsidiaries and Sierra Pacific Power Company and its subsidiaries Eastern Energy Gas Eastern Energy Gas Holdings, LLC and its subsidiaries EGTS Eastern Gas Transmission and Storage, Inc. and its subsidiaries Registrants Berkshire Hathaway Energy Company, PacifiCorp and its subsidiaries, MidAmerican Funding, LLC and its subsidiaries, MidAmerican Energy Company, Nevada Power Company and its subsidiaries, Sierra Pacific Power Company and its subsidiaries, Eastern Energy Gas Holdings, LLC and its subsidiaries and Eastern Gas Transmission and Storage, Inc. and its subsidiaries Northern Powergrid Northern Powergrid Holdings Company and its subsidiaries BHE Pipeline Group BHE GT&S, LLC, Northern Natural Gas Company and Kern River Gas Transmission Company BHE GT&S BHE GT&S, LLC and its subsidiaries Northern Natural Gas Northern Natural Gas Company Kern River Kern River Gas Transmission Company BHE Transmission BHE Canada Holdings Corporation and BHE U.S. Transmission, LLC BHE Canada BHE Canada Holdings Corporation and its subsidiaries AltaLink AltaLink, L.P. and its subsidiaries BHE U.S. Transmission BHE U.S. Transmission, LLC and its subs

Forward-Looking Statements

Forward-Looking Statements This report contains statements that do not directly or exclusively relate to historical facts. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by the use of forward-looking words, such as "will," "may," "could," "project," "believe," "anticipate," "expect," "estimate," "continue," "intend," "potential," "plan," "forecast" and similar terms. These statements are based upon the relevant Registrant's current intentions, estimates, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of each Registrant and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others: general economic, political and business conditions, as well as changes in, and compliance with, laws and regulations, including tariffs and income tax reform, initiatives regarding deregulation and restructuring of the utility industry and reliability and safety standards, affecting the respective Registrant's operations or related industries; changes in, and compliance with, environmental laws, regulations, decisions and policies, whether directed towards protection of environmental resources, present and future climate considerations or social justice concerns that could, among other items, increase operating and capital costs, reduce facility output, accelerate facility retirements or delay facility construction or acquisition; the outcome of regulatory rate reviews and other proceedings conducted by regulatory agencies or other governmental and legal bodies and the respective Registrant's ability to recover costs through rates in a timely manner; changes in economic, industry, compet

Financial Statements

Item 1. Financial Statements Berkshire Hathaway Energy Company and its subsidiaries Report of Independent Registered Public Accounting Firm 4 Consolidated Balance Sheets 5 Consolidated Statements of Operations 7 Consolidated Statements of Comprehensive Income 8 Consolidated Statements of Changes in Equity 9 Consolidated Statements of Cash Flows 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 PacifiCorp and its subsidiaries Report of Independent Registered Public Accounting Firm 58 Consolidated Balance Sheets 59 Consolidated Statements of Operations 61 Consolidated Statements of Changes in Shareholders' Equity 62 Consolidated Statements of Cash Flows 63

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 64 MidAmerican Energy Company Report of Independent Registered Public Accounting Firm 91 Balance Sheets 92 94 95 96

Notes to Financial Statements

Notes to Financial Statements 97 MidAmerican Funding, LLC and its subsidiaries Report of Independent Registered Public Accounting Firm 106 Consolidated Balance Sheets 107 Consolidated Statements of Operations 109 Consolidated Statements of Changes in Member's Equity 110 Consolidated Statements of Cash Flows 111

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 112 Nevada Power Company and its subsidiaries Report of Independent Registered Public Accounting Firm 127 Consolidated Balance Sheets 128 Consolidated Statements of Operations 129 Consolidated Statements of Changes in Shareholder's Equity 130 Consolidated Statements of Cash Flows 131

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 132 Sierra Pacific Power Company and its subsidiaries Report of Independent Registered Public Accounting Firm 149 Consolidated Balance Sheets 150 Consolidated Statements of Operations 151 Consolidated Statements of Changes in Shareholder's Equity 152 Consolidated Statements of Cash Flows 153

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 154 Eastern Energy Gas Holdings, LLC and its subsidiaries Report of Independent Registered Public Accounting Firm 173 Consolidated Balance Sheets 174 Consolidated Statements of Operations 176 Consolidated Statements of Comprehensive Income 177 Consolidated Statements of Changes in Equity 178 Consolidated Statements of Cash Flows 179

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 180 Eastern Gas Transmission and Storage, Inc. and its subsidiaries Report of Independent Registered Public Accounting Firm 193 Consolidated Balance Sheets 194 Consolidated Statements of Operations 196 Consolidated Statements of Changes in Shareholder's Equity 198 Consolidated Statements of Cash Flows 199

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 200 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Berkshire Hathaway Energy Company and its subsidiaries 33 PacifiCorp and its subsidiaries 80 MidAmerican Funding, LLC and its subsidiaries and MidAmerican Energy Company 117 Nevada Power Company and its subsidiaries 140 Sierra Pacific Power Company and its subsidiaries 164 Eastern Energy Gas Holdings, LLC and its subsidiaries 188 Eastern Gas Transmission and Storage, Inc. and its subsidiaries 206 2 Berkshire Hathaway Energy Company and its subsidiaries Consolidated Financial Section 3 PART I

Financial Statements

Item 1. Financial Statements REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Berkshire Hathaway Energy Company Results of Review of Interim Financial Information We have reviewed the accompanying consolidated balance sheet of Berkshire Hathaway Energy Company and subsidiaries ("the Company") as of September 30, 2025, the related consolidated statements of operations, comprehensive income, and changes in equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicabl

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View this 10-Q filing on SEC EDGAR