MidAmerican Funding 10-Q: A Cog in Berkshire Hathaway Energy's Wheel

TL;DR

**MIDAMERICAN FUNDING LLC is a critical, albeit opaque, financial backbone for Berkshire Hathaway Energy's vast utility empire, making its stability paramount for the entire group's operational health.**

AI Summary

MIDAMERICAN FUNDING LLC, a subsidiary of Berkshire Hathaway Energy Company, filed a 10-Q for the quarter ended September 30, 2025. The filing is a combined report with other Berkshire Hathaway Energy subsidiaries, indicating a complex organizational structure. As a funding entity, its financial performance is intrinsically linked to its parent and sister companies, such as MidAmerican Energy Company. The report does not provide specific revenue or net income figures for MIDAMERICAN FUNDING LLC in the provided excerpt, focusing instead on its organizational structure and relationship within the larger Berkshire Hathaway Energy group. Key business changes or strategic outlooks are not detailed for MIDAMERICAN FUNDING LLC specifically, but the overall group's forward-looking statements highlight risks such as regulatory rate reviews, environmental compliance, and the outcomes of legal actions related to wildfires, particularly impacting PacifiCorp. The company's role as a funding vehicle suggests its financial health is tied to the broader group's ability to access capital and manage its various utility and energy operations.

Why It Matters

For investors, understanding MIDAMERICAN FUNDING LLC's role within the Berkshire Hathaway Energy ecosystem is crucial, as its financial stability directly supports the broader group's operations, including utilities like MidAmerican Energy Company. Employees of the various subsidiaries are indirectly affected by the funding entity's ability to secure capital, which underpins investment in infrastructure and operational continuity. Customers of the utility companies within the group benefit from a stable funding mechanism that helps ensure reliable service and infrastructure development. The competitive context shows a highly integrated energy conglomerate, where the funding arm's efficiency impacts the entire group's market position and ability to compete on capital-intensive projects.

Risk Assessment

Risk Level: medium — The risk level is medium due to MIDAMERICAN FUNDING LLC's integral role within a complex, regulated utility conglomerate, as highlighted by the 'Forward-Looking Statements' section. While specific financial risks for MidAmerican Funding are not detailed, the broader group faces significant risks from 'regulatory rate reviews and other proceedings' and 'the outcomes of legal or other actions' related to wildfires, which could materially impact PacifiCorp's financial condition and ability to access capital. This interconnectedness means that adverse events affecting other subsidiaries could indirectly strain MidAmerican Funding's operations.

Analyst Insight

Investors should monitor the overall financial health and regulatory environment of Berkshire Hathaway Energy Company, particularly developments concerning PacifiCorp's wildfire liabilities, as these will indirectly impact MIDAMERICAN FUNDING LLC's stability and the group's ability to raise capital. Given the lack of specific financial data for MidAmerican Funding, a holistic view of the parent company's performance is essential.

Key Numbers

• 1 share — Common stock outstanding for Berkshire Hathaway Energy Company (As of October 30, 2025, held by Berkshire Hathaway Inc.)
• 357,060,915 shares — Common stock outstanding for PacifiCorp (As of October 30, 2025, indirectly held by Berkshire Hathaway Energy Company)
• 70,980,203 shares — Common stock outstanding for MidAmerican Energy Company (As of October 30, 2025, held by MHC Inc.)
• 1,000 shares — Common stock outstanding for Nevada Power Company (As of October 30, 2025, with $1.00 stated value)
• 1,000 shares — Common stock outstanding for Sierra Pacific Power Company (As of October 30, 2025, with $3.75 par value)
• 60,101 shares — Common stock outstanding for Eastern Gas Transmission and Storage, Inc. (As of October 30, 2025, with $10,000 par value)

Key Players & Entities

• MIDAMERICAN FUNDING LLC (company) — Registrant and subsidiary of Berkshire Hathaway Energy Company
• Berkshire Hathaway Energy Company (company) — Parent company of MIDAMERICAN FUNDING LLC
• Berkshire Hathaway Inc. (company) — Ultimate parent company of Berkshire Hathaway Energy Company
• PacifiCorp (company) — Subsidiary of Berkshire Hathaway Energy Company facing wildfire litigation risks
• MidAmerican Energy Company (company) — Subsidiary of MHC Inc., which is a direct, wholly owned subsidiary of MidAmerican Funding, LLC
• MHC Inc. (company) — Direct, wholly owned subsidiary of MidAmerican Funding, LLC
• United States Securities and Exchange Commission (regulator) — Governing body for 10-Q filings
• October 30, 2025 (date) — Date for outstanding shares/equity information
• September 30, 2025 (date) — End of the quarterly period for this 10-Q filing
• $10,000 (dollar_amount) — Par value of common stock for Eastern Gas Transmission and Storage, Inc.

FAQ

Risk Factors

• Wildfire Litigation [high — legal]: PacifiCorp, a subsidiary, faces significant legal actions and potential liabilities stemming from wildfires. The outcomes of these legal actions, including potential judgments and settlements, could have a material adverse effect on the financial condition and results of operations of PacifiCorp and Berkshire Hathaway Energy.
• Regulatory Rate Reviews [medium — regulatory]: The company's operations are subject to extensive regulation by various federal, state, and local agencies. Future regulatory rate reviews and decisions could impact the company's ability to recover costs and achieve authorized rates of return, potentially affecting profitability.
• Environmental Compliance [medium — operational]: The company must comply with increasingly stringent environmental laws and regulations. The costs associated with environmental compliance, including investments in new technologies and potential remediation efforts, could be substantial and impact operating expenses.

Industry Context

The energy utility sector is characterized by significant capital investment, regulatory oversight, and increasing focus on environmental sustainability and renewable energy sources. Berkshire Hathaway Energy operates across diverse segments including electric power, natural gas, and energy transmission, facing evolving market dynamics and technological advancements.

Regulatory Implications

The company's operations are subject to extensive regulation, impacting pricing, service standards, and environmental compliance. Future regulatory decisions on rate reviews and environmental mandates pose significant risks that could affect financial performance and require substantial capital expenditures.

What Investors Should Do

1. Monitor wildfire litigation outcomes for PacifiCorp.
2. Analyze the impact of regulatory rate reviews.
3. Assess capital expenditure plans for environmental compliance.

Key Dates

• 2025-10-31: 10-Q Filing Date — Indicates the period for which financial information is being reported and provides an update on the company's performance and condition.
• 2025-09-30: Quarter End Date — The reporting date for the consolidated balance sheets and statements of operations included in the 10-Q.
• 2025-02-21: Previous Year's Audit Report Date — Provides context for the independent auditor's opinion on the prior year's financial statements, which were used as a basis for comparison.

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 the financial information and analysis presented.)

Berkshire Hathaway Energy Company

The parent holding company for a group of energy utilities and other energy-related businesses, including MidAmerican Funding, LLC. (Provides the overarching corporate structure and context for MidAmerican Funding, LLC's operations and financial reporting.)

PacifiCorp

A major electric power generator and distributor operating in the western United States, and a subsidiary of Berkshire Hathaway Energy. (Significant risks related to wildfire litigation are highlighted, impacting the broader group.)

PCAOB

Public Company Accounting Oversight Board, a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors. (The independent auditor's review was conducted in accordance with PCAOB standards.)

Consolidated Financial Statements

Financial statements that combine the accounts of a parent company and its subsidiaries, presenting them as if they were a single economic entity. (The 10-Q contains consolidated financial statements for Berkshire Hathaway Energy and its subsidiaries, including MidAmerican Funding, LLC.)

Year-Over-Year Comparison

The provided excerpt focuses on the current period's interim financial information and does not contain comparative data from the previous year's filing. Therefore, a direct comparison of key metrics like revenue growth, margin changes, or the emergence of new risks cannot be made based on this information.

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

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• pac93025ex95.htm (EX-95) — 32KB
• bhe-20250930_g1.jpg (GRAPHIC) — 113KB
• 0001081316-25-000022.txt ( ) — 41687KB
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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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