Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrants are a shell company (as defined in Rule 12b-2 of the Exchange Act).

This combined Form 10-Q is separately filed by Berkshire Hathaway Energy Company, PacifiCorp, MidAmerican Funding, LLC, MidAmerican Energy Company, Nevada Power Company and Sierra Pacific Power Company. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes no representation as to information relating to the other companies.

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.

Further details of the potential risks and uncertainties affecting the Registrants are described in the Registrants' filings with the SEC, including Part II, Item 1A and other discussions contained in this Form 10-Q. Each Registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing factors should not be construed as exclusive.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States).PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States),PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

Berkshire Hathaway Energy Company ("BHE") is a holding company that owns a highly diversified portfolio of locally-managedlocally managed businesses principally engaged in the energy industry (collectively with its subsidiaries, the "Company") and is a consolidated subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 20162017 describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in the Company's assumptions regarding significant accounting estimates and policies during the six-month period ended June 30, 20172018.

In March 2017,February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-07,2018-02, which amends FASB Accounting Standards Codification ("ASC") Topic 715, "Compensation220, "Income Statement - Retirement Benefits.Reporting Comprehensive Income." The amendments in this guidance require a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects that an employer disaggregate the service cost componentwere created from the Tax Cuts and Jobs Act enacted on December 22, 2017 ("2017 Tax Reform"). The reclassification is the difference between the historical income tax rates and the enacted rate for the items previously recorded in accumulated other components of net benefit cost and report the service cost component in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of operatingcomprehensive income. Additionally, the guidance only allows the service cost component to be eligible for capitalization when applicable. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017,2018, with early adoption permitted. This guidance mustpermitted, and is required to be adopted retrospectively forto each period in which the presentationeffect of the service cost component andchange in 2017 Tax Reform is recognized. Considering the othersignificant components of net benefit cost in the statementCompany's accumulated other comprehensive income relate to (a) unrecognized amounts on retirement benefits of operationsforeign pension plans and prospectively for the capitalization of the service cost component in the balance sheet. The Company plans to adopt this guidance effective(b) unrealized gains on available-for-sale securities, which were reclassified as required by ASU No. 2016-01 that was adopted on January 1, 2018, and is currently evaluating the adoption of ASU No. 2018-02 will not have a material impact on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In November 2016,August 2017, the FASB issued ASU No. 2016-18,2017-12, which amends FASB ASC Subtopic 230-10, “Statement of Cash Flows - Overall.”Topic 815, "Derivatives and Hedging." The amendments in this guidance require that a statementupdate the hedge accounting model to enable entities to better portray the economics of cash flows explain the change during the periodtheir risk management activities in the totalfinancial statements, expands an entity's ability to hedge non-financial and financial risk components and reduces complexity in fair value hedges of cash, cash equivalents,interest rate risk. In addition, it eliminates the requirement to separately measure and amountsreport hedge ineffectiveness and generally describedrequires the entire change in fair value of a hedging instrument to be presented in the same income statement line as restricted cash or restricted cash equivalents. Amounts generally described as restricted cashthe hedged item and restricted cash equivalents should be included with cashalso eases certain documentation and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.assessment requirements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017,2018, with early adoption permitted, and is required to be adopted retrospectively.using a modified retrospective approach by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company plans to adopt this guidance effective January 1, 2018 and is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02, which creates FASB ASC Topic 842, "Leases" and supersedes Topic 840 "Leases." This guidance increases transparency and comparability among entities by recording lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous guidance. In January 2018, the FASB issued ASU No. 2018-01 that provides for an optional transition practical expedient allowing companies to not have to evaluate existing land easements if they were not previously accounted for under ASC Topic 840, "Leases." This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted, and is required to be adopted using a modified retrospective approach. The Company plans to adopt this guidance effective January 1, 2019 and is currently evaluating the impact on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01 which amendsamended FASB ASC Subtopic 825-10, "Financial Instruments - Overall." The amendments in this guidance addressaddressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments including a requirement that all investments in equity securities that do not qualify for equity method accounting or result in consolidation of the investee be measured at fair value with changes in fair value recognized in net income. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption not permitted, and is required to be adopted prospectively by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements. The material impacts currently identified include recording the unrealized gains and losses on available-for-sale securities in the Consolidated Statements of Operations as opposed to other comprehensive income ("OCI"). For the six-month periods ended June 30, 2017 and 2016, these amounts, net of tax, were $119 million and$71 million, respectively.

The Merger Agreementportion of unrealized losses related to investments still held as of June 30, 2018 is subject to numerous approvals, rulings and conditions, including those from the Bankruptcy Court, the Public Utility Commission of Texas and the Federal Energy Regulatory Commission (“FERC”), and the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Bankruptcy Court has scheduled August 21, 2017, to hear the motion to approve the Merger Agreement and October 24, 2017,calculated as the start date of the confirmation hearing on the joint plan of reorganization.follows (in millions):

In August 2016, the FASB issued ASU No. 2016-15, which amends FASB ASC Topic 230, "Statement of Cash Flows." The amendments in this guidance address the classification of eight specific cash flow issues within the statement of cash flows with the objective of reducing the existing diversity in practice. The Company completed various acquisitions totaling $588adopted this guidance retrospectively effective January 1, 2018 which resulted in the reclassification of certain cash distributions received from equity method investees of $14 million net ofpreviously recognized within investing cash acquired,flows to operating cash flows for the six-month period ended June 30, 2017.

In November 2016, the FASB issued ASU No. 2016-18, which amends FASB ASC Subtopic 230-10, "Statement of Cash Flows - Overall." The purchase price for each acquisition was allocated toamendments in this guidance require that a statement of cash flows explain the assets acquiredchange during the period in the total of cash, cash equivalents, and liabilities assumed, which related primarily to developmentamounts generally described as restricted cash and construction costsrestricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this guidance January 1, 2018.

Cash equivalents consist of funds invested in money market mutual funds, United States Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents as of June 30, 2018 and December 31, 2017, consist substantially of funds restricted for the 110-megawatt Alamo 6 solar project,purpose of constructing solid waste facilities under tax-exempt bond obligation agreements and debt service obligations for certain of the remaining 25% interestCompany's nonregulated renewable energy projects. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as of June 30, 2018 and December 31, 2017, as presented in the Silverhawk natural gas-fueled generation facility at Nevada PowerConsolidated Statements of Cash Flows is outlined below and residential real estate brokerage businesses. There were no other material assets acquired or liabilities assumed.

In July 2017, Northern Powergrid Metering Limited entered into2018, BHE issued $1.0 billion of its 4.45% Senior Notes due 2049. BHE used the net proceeds to refinance a £200 million secured amortizing corporate facility with a stated maturity of June 2026. The amortizing facility has a variable interest rate based on the London Interbank Offered Rate plus a spread that varies based on an agreed-upon schedule. In July 2017, Northern Powergrid Metering Limited received proceeds of £120 million under the facility to repay amounts provided by Yorkshire Electricity Group plc which provides internal funds for the continuing smart meter deployment program of Northern Powergrid Metering Limited. Northern Powergrid Metering Limited has entered into interest rate swaps that fix the underlying interest rate on 85%portion of the outstanding debt.Company's short-term indebtedness and for general corporate purposes.

In July 2017, Cordova Funding Corporation redeemed the remaining $892018, Northern Natural Gas issued $450 million of its 8.48% to 9.07% Series A4.30% Senior Secured Bonds due December 2019, CE Generation, LLC redeemed2049. Northern Natural Gas used the remaining $51net proceeds to repay at maturity all of its $200 million 5.75% Senior Notes due July 2018 and for general corporate purposes.

In July 2018, PacifiCorp issued $600 million of its 7.416% Senior Secured4.125% First Mortgage Bonds due December2049. PacifiCorp used a portion of the net proceeds to repay all of its $500 million 5.65% First Mortgage Bonds due July 2018 and Salton Sea Funding Corporation redeemedintends to use the remaining $20 million of its 7.475% Senior Secured Series F Bonds due November 2018, each at redemption prices determined in accordance with the terms of the respective indentures.

In April 2017, Kern River redeemed the remaining $1752018, Nevada Power issued $575 million of its 4.893% Senior2.75% General and Refunding Mortgage Notes, Series BB, due April 2018 at2020. Nevada Power used a redemption price determined in accordance with the termsportion of the indenture.net proceeds to repay all of its $325 million 6.50% General and Refunding Mortgage Notes, Series O, maturing in May 2018. In August 2018, Nevada Power used the remaining net proceeds, together with available cash, to repay all of Nevada Power's $500 million 6.50% General and Refunding Mortgage Notes, Series S, maturing in August 2018.

In February 2017,2018, MidAmerican Energy issued $375$700 million of its 3.10%3.65% First Mortgage Bonds due May 2027 and $475 million of its 3.95% First Mortgage Bonds due August 2047.2048. An amount equal to the net proceeds was used to finance capital expenditures, disbursed during the period from February 2, 20162017 to February 1,October 31, 2017, with respect to investments in MidAmerican Energy's 551-megawatt Wind X and 2,000-megawatt (nameplate capacity) Wind XI projects,project and the repowering of certain of MidAmerican Energy's existing wind facilities, which were previously financed with MidAmerican Energy's general funds.

In February 2017, MidAmerican Energy redeemed in full through optional redemption its $250January 2018, BHE issued $450 million of 5.95%its 2.375% Senior Notes due July 2017.2021, $400 million of its 2.80% Senior Notes due 2023, $600 million of its 3.25% Senior Notes due 2028 and $750 million of its 3.80% Senior Notes due 2048. The net proceeds were used to refinance a portion of the Company's short-term indebtedness and for general corporate purposes.

In June 2017,April 2018, BHE extended,terminated its $1.0 billion unsecured credit facility expiring May 2018 and amended and restated, with lender consent, the maturity date to June 2020 for its existing $2.0 billion unsecured credit facility and PacifiCorp extended, withexpiring June 2020, increasing the lender consent,commitment to $3.5 billion, extending the maturityexpiration date to June 2020 for its $400 million unsecured credit facility, each by exercising2021 and increasing from one to two, the first of two available one-year extensions.extension options, subject to lender consent.

In June 2017,April 2018, PacifiCorp terminatedamended and restated its $600 million unsecured credit facility expiring March 2018 and entered into a $600existing $400 million unsecured credit facility expiring June 2020, withincreasing the lender commitment to $600 million, extending the expiration date to June 2021 and increasing from one to two, the available one-year extension options, subject to lender consent. The credit facility, which supports PacifiCorp's commercial paper program and certain series of its tax-exempt bond obligations and provides for the issuance of letters of credit, has a variable interest rate based on the Eurodollar rate or a base rate, at PacifiCorp's option, plus a spread that varies based on PacifiCorp's credit ratings for its senior unsecured long-term debt securities. The credit facility requires PacifiCorp's ratio of consolidated debt, including current maturities, to total capitalization not exceed 0.65 to 1.0 as of the last day of each quarter.

In June 2017,April 2018, PacifiCorp and MidAmerican Energy terminated itsamended and restated their existing $600 million unsecured credit facility expiring March 2018 and entered into a $900 million unsecured credit facilityfacilities, respectively, each expiring June 2020, withextending the expiration dates to June 2021 and reducing from two to one, the available one-year extension options, subject to lender consent. The credit facility, which supports MidAmerican Energy's commercial paper program and its variable-rate tax-exempt bond obligations and provides for the issuance of letters of credit, has a variable interest rate based on the Eurodollar rate or a base rate, at MidAmerican Energy's option, plus a spread that varies based on MidAmerican Energy's credit ratings for senior unsecured long-term debt securities. The credit facility requires MidAmerican Energy's ratio of consolidated debt, including current maturities, to total capitalization not exceed 0.65 to 1.0 as of the last day of each quarter.

In June 2017,April 2018, Nevada Power and Sierra Pacific amended itsand restated their existing $400 million and $250 million secured credit facility,facilities, respectively, each expiring June 2020, extending the maturity dateexpiration dates to June 2020 with2021 and reducing from two to one, the available one-year extension options, subject to lender consent. The amended credit facility, which is for general corporate purposes and provides for the issuance of letters of credit, has a variable interest rate based on the Eurodollar rate or a base rate, at Nevada Power's option, plus a spread that varies based on Nevada Power's credit ratings for its senior secured long-term debt securities. The amended credit facility requires Nevada Power's ratio of consolidated debt, including current maturities, to total capitalization not to exceed 0.65 to 1.0 as of the last day of each quarter.

In June 2017, Sierra PacificApril 2018, ALP amended its $250existing C$750 million secured credit facility expiring December 2019, decreasing the lender commitment to C$500 million effective December 2018 and extending the maturityexpiration date to June 2020 with two one-year extension options subject to lender consent. TheDecember 2022. ALP also amended credit facility, which is for general corporate purposes and provides for the issuance of letters of credit, has a variable interest rate based on the Eurodollar rate or a base rate, at Sierra Pacific's option, plus a spread that varies based on Sierra Pacific's credit ratings for its seniorC$75 million secured long-term debt securities. The amended credit facility requires Sierra Pacific's ratio of consolidated debt, including current maturities, to total capitalization not exceed 0.65 to 1.0 as of the last day of each quarter.

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:

Net periodic benefit (credit) cost for the domestic pension and other postretirement benefit plans included the following components (in millions):