Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | PACIFICORP /OR/ | |
Entity Central Index Key | 75,594 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 357,060,915 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 96 | $ 23 |
Accounts receivable, net | 727 | 701 |
Income taxes receivable | 0 | 133 |
Inventories: | ||
Materials and supplies | 231 | 218 |
Fuel | 191 | 199 |
Deferred income taxes | 27 | 28 |
Regulatory assets | 118 | 131 |
Other current assets | 76 | 92 |
Total current assets | 1,466 | 1,525 |
Property, plant and equipment, net | 18,900 | 18,719 |
Regulatory assets | 1,558 | 1,574 |
Other assets | 414 | 449 |
Total assets | 22,338 | 22,267 |
Current liabilities: | ||
Accounts payable | 457 | 465 |
Income taxes payable | 83 | 0 |
Accrued employee expenses | 114 | 76 |
Accrued interest | 111 | 110 |
Accrued property and other taxes | 95 | 59 |
Short-term debt | 0 | 20 |
Current portion of long-term debt and capital lease obligations | 179 | 134 |
Regulatory liabilities | 32 | 34 |
Other current liabilities | 221 | 222 |
Total current liabilities | 1,292 | 1,120 |
Regulatory liabilities | 930 | 910 |
Long-term debt and capital lease obligations | 7,123 | 6,919 |
Deferred income taxes | 4,615 | 4,609 |
Other long-term liabilities | 1,017 | 953 |
Total liabilities | $ 14,977 | $ 14,511 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Preferred stock | $ 2 | $ 2 |
Common stock - 750 shares authorized, no par value, 357 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 4,479 | 4,479 |
Retained earnings | 2,893 | 3,288 |
Accumulated other comprehensive loss, net | (13) | (13) |
Total shareholders' equity | 7,361 | 7,756 |
Total liabilities and shareholders' equity | $ 22,338 | $ 22,267 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions, $ / shares in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Shareholders' equity: | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 750 | 750 |
Common stock, shares issued | 357 | 357 |
Common stock, shares outstanding | 357 | 357 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue | $ 1,269 | $ 1,243 | $ 2,519 | $ 2,531 |
Operating costs and expenses: | ||||
Energy costs | 437 | 444 | 913 | 948 |
Operations and maintenance | 272 | 241 | 540 | 514 |
Depreciation and amortization | 190 | 177 | 379 | 356 |
Taxes, other than income taxes | 45 | 40 | 90 | 82 |
Total operating costs and expenses | 944 | 902 | 1,922 | 1,900 |
Operating income | 325 | 341 | 597 | 631 |
Other income (expense): | ||||
Interest expense | (94) | (97) | (188) | (191) |
Allowance for borrowed funds | 4 | 7 | 10 | 15 |
Allowance for equity funds | 9 | 14 | 19 | 30 |
Other, net | 2 | 3 | 5 | 5 |
Total other income (expense) | (79) | (73) | (154) | (141) |
Income before income tax expense | 246 | 268 | 443 | 490 |
Income tax expense | 75 | 84 | 138 | 151 |
Net income | $ 171 | $ 184 | $ 305 | $ 339 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] |
Balance at Dec. 31, 2013 | $ 7,787 | $ 2 | $ 0 | $ 4,479 | $ 3,315 | $ (9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 339 | 339 | ||||
Common stock dividends declared | (625) | (625) | ||||
Balance at Jun. 30, 2014 | 7,501 | 2 | 0 | 4,479 | 3,029 | (9) |
Balance at Dec. 31, 2014 | 7,756 | 2 | 0 | 4,479 | 3,288 | (13) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 305 | 305 | ||||
Common stock dividends declared | (700) | (700) | ||||
Balance at Jun. 30, 2015 | $ 7,361 | $ 2 | $ 0 | $ 4,479 | $ 2,893 | $ (13) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 305 | $ 339 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 379 | 356 |
Allowance for equity funds | (19) | (30) |
Deferred income taxes and amortization of investment tax credits | 9 | 105 |
Changes in regulatory assets and liabilities | 18 | (43) |
Other, net | 3 | 11 |
Changes in other operating assets and liabilities: | ||
Accounts receivable and other assets | 19 | 45 |
Derivative collateral, net | (30) | 12 |
Inventories | (5) | 18 |
Income taxes | 216 | 18 |
Accounts payable and other liabilities | 92 | 55 |
Net cash flows from operating activities | 987 | 886 |
Cash flows from investing activities: | ||
Capital expenditures | (419) | (532) |
Other, net | (22) | (3) |
Net cash flows from investing activities | (441) | (535) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 250 | 425 |
Repayments of long-term debt and capital lease obligations | (1) | (13) |
Net repayments of short-term debt | (20) | 0 |
Common stock dividends | (700) | (625) |
Other, net | (2) | (3) |
Net cash flows from financing activities | (473) | (216) |
Net change in cash and cash equivalents | 73 | 135 |
Cash and cash equivalents at beginning of period | 23 | 53 |
Cash and cash equivalents at end of period | $ 96 | $ 188 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (1) General PacifiCorp, which includes PacifiCorp and its subsidiaries, is a United States regulated electric utility company serving retail customers, including residential, commercial, industrial, irrigation and other customers in portions of the states of Utah, Oregon, Wyoming, Washington, Idaho and California. PacifiCorp owns, or has interests in, a number of thermal, hydroelectric, wind-powered and geothermal generating facilities, as well as electric transmission and distribution assets. PacifiCorp also buys and sells electricity on the wholesale market with other utilities, energy marketing companies, financial institutions and other market participants. PacifiCorp is subject to comprehensive state and federal regulation. PacifiCorp's subsidiaries support its electric utility operations by providing coal mining services. PacifiCorp is an indirect subsidiary of Berkshire Hathaway Energy Company ("BHE"), a holding company based in Des Moines, Iowa that owns subsidiaries principally engaged in energy businesses. BHE is a consolidated subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway"). The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of June 30, 2015 and for the three- and six-month periods ended June 30, 2015 and 2014 . The results of operations for the three- and six-month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year. 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 PacifiCorp's Annual Report on Form 10-K for the year ended December 31, 2014 describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in PacifiCorp's assumptions regarding significant accounting estimates and policies during the six-month period ended June 30, 2015 . |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes [Text Block] | (2) New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, which amends FASB Accounting Standards Codification ("ASC") Subtopic 835-30, "Interest - Imputation of Interest." The amendments in this guidance require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability instead of as an asset. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. This guidance must be adopted retrospectively, wherein the balance sheet of each period presented should be adjusted to reflect the new guidance. PacifiCorp is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, which creates FASB ASC Topic 606, "Revenue from Contracts with Customers" and supersedes ASC Topic 605, "Revenue Recognition." The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. In July 2015, the FASB decided to defer the effective date one year to interim and annual reporting periods beginning after December 15, 2017. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. PacifiCorp is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | (3) Property, Plant and Equipment, Net Property, plant and equipment, net consists of the following (in millions): As of June 30, December 31, Depreciable Life 2015 2014 Property, plant and equipment in-service 5-75 years $ 26,503 $ 25,813 Accumulated depreciation and amortization (8,247 ) (8,026 ) Net property, plant and equipment in-service 18,256 17,787 Construction work-in-progress 644 932 Total property, plant and equipment, net $ 18,900 $ 18,719 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets and Liabilities [Text Block] | (4) Regulatory Matters Utah Mine Disposition Due to quality issues with the coal reserves at PacifiCorp's Deer Creek mine in Utah and rising costs at PacifiCorp's wholly owned subsidiary, Energy West Mining Company, PacifiCorp believes the Deer Creek coal reserves are no longer able to be economically mined. As a result, in December 2014, PacifiCorp filed applications with the Utah Public Service Commission ("UPSC"), the Oregon Public Utility Commission ("OPUC"), the Wyoming Public Service Commission ("WPSC") and the Idaho Public Utilities Commission ("IPUC") seeking certain approvals, prudence determinations and accounting orders to close its Deer Creek mining operations, sell certain Utah mining assets, enter into a replacement coal supply agreement, amend an existing coal supply agreement, withdraw from the United Mine Workers of America ("UMWA") 1974 Pension Plan and settle PacifiCorp's other postretirement benefit obligation for UMWA participants (collectively, the "Utah Mine Disposition"). PacifiCorp also filed an advice letter with the California Public Utilities Commission. In April 2015, PacifiCorp filed all-party settlement stipulations with the UPSC and the WPSC finding that the decision to enter into the Utah Mine Disposition transaction is prudent and in the public interest. The UPSC approved the stipulation in April 2015 and the WPSC approved the stipulation in May 2015. In May 2015, the OPUC issued its final order concluding that the Utah Mine Disposition transaction produces net benefits for customers and is in the public interest. The IPUC also issued an order in May 2015, approving the Utah Mine Disposition and ruling that the decision to enter into the transaction is prudent and in the public interest. Accordingly, in June 2015, PacifiCorp sold the specified Utah mining assets and the replacement and amended coal supply agreements became effective. Refer to Note 10 for discussion of the contractual obligations related to the replacement coal supply agreement. Refer to Note 6 for discussion of the UMWA 1974 Pension Plan withdrawal and the settlement of the other postretirement benefit obligation for UMWA participants. The Deer Creek mine is currently idled and closure activities have begun. |
Recent Financing Transactions
Recent Financing Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | (5) Recent Financing Transactions In June 2015, PacifiCorp issued $250 million of its 3.35% First Mortgage Bonds due July 2025. The net proceeds were used to fund capital expenditures and for general corporate purposes, including retirement of short-term debt. In March 2015, PacifiCorp obtained $191 million of letters of credit to support variable-rate tax-exempt bond obligations. These letters of credit expire through March 2017 and replace certain letters of credit previously issued under one of the credit facilities. Also, in March 2015, PacifiCorp arranged for the cancellation of $23 million of letters of credit previously issued under one of the credit facilities to support variable-rate tax-exempt bond obligations. As of June 30, 2015 , PacifiCorp had $428 million of fully available letters of credit issued under committed arrangements to support variable-rate tax-exempt bond obligations, of which $56 million were issued under credit facilities. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (6) Employee Benefit Plans Net periodic benefit cost for the pension and other postretirement benefit plans included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Pension: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 14 14 27 28 Expected return on plan assets (20 ) (19 ) (39 ) (38 ) Net amortization 11 7 21 15 Net periodic benefit cost $ 6 $ 3 $ 11 $ 7 Other postretirement: Service cost $ 1 $ 2 $ 2 $ 3 Interest cost 4 7 8 14 Expected return on plan assets (6 ) (7 ) (12 ) (15 ) Net amortization (1 ) — (2 ) 1 Net periodic benefit cost $ (2 ) $ 2 $ (4 ) $ 3 Employer contributions to the pension and other postretirement benefit plans are expected to be $4 million and $- million, respectively, during 2015 . As of June 30, 2015 , $2 million and $- million of contributions had been made to the pension and other postretirement benefit plans, respectively. Utah Mine Disposition and Labor Agreement In conjunction with the Utah Mine Disposition described in Note 4, in December 2014, Energy West Mining Company reached a labor settlement with the UMWA covering union employees at PacifiCorp's Deer Creek mining operations. As a result of the labor settlement, the UMWA agreed to assume PacifiCorp's other postretirement benefit obligation associated with UMWA plan participants in exchange for PacifiCorp transferring $150 million to a fund managed by the UMWA. Transfer of the assets and settlement of this obligation occurred in May 2015 and resulted in a remeasurement of the other postretirement plan assets and benefit obligation. As a result of the remeasurement, PacifiCorp recognized a $9 million settlement loss, with the portion that is probable of recovery deferred as a regulatory asset. Multiemployer Pension Plan PacifiCorp's subsidiary, Energy West Mining Company, triggered involuntary withdrawal from the UMWA 1974 Pension Plan in June 2015 when the UMWA employees ceased performing work for PacifiCorp. PacifiCorp recorded its best estimate of the withdrawal obligation in December 2014 when withdrawal was considered probable and deferred the portion of the obligation considered probable of recovery to a regulatory asset. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | (7) Asset Retirement Obligations In December 2014, the United States Environmental Protection Agency released its final rule regulating the management and disposal of coal combustion byproducts resulting from the operation of coal-fueled generating facilities, including requirements for the operation and closure of surface impoundment and ash landfill facilities. The final rule was published in the Federal Register in April 2015 and will be effective in October 2015. As of June 30, 2015 and December 31, 2014, PacifiCorp's asset retirement obligations totaled $227 million and $135 million , respectively, and the change was substantially due to the impacts of the final rule. |
Risk Management and Hedging Act
Risk Management and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | (8) Risk Management and Hedging Activities PacifiCorp is exposed to the impact of market fluctuations in commodity prices and interest rates. PacifiCorp is principally exposed to electricity, natural gas, coal and fuel oil commodity price risk as it has an obligation to serve retail customer load in its service territories. PacifiCorp's load and generating facilities represent substantial underlying commodity positions. Exposures to commodity prices consist mainly of variations in the price of fuel required to generate electricity and wholesale electricity that is purchased and sold. Commodity prices are subject to wide price swings as supply and demand are impacted by, among many other unpredictable items, weather, market liquidity, generating facility availability, customer usage, storage, and transmission and transportation constraints. Interest rate risk exists on variable-rate debt and future debt issuances. PacifiCorp does not engage in a material amount of proprietary trading activities. PacifiCorp has established a risk management process that is designed to identify, assess, monitor, report, manage and mitigate each of the various types of risk involved in its business. To mitigate a portion of its commodity price risk, PacifiCorp uses commodity derivative contracts, which may include forwards, options, swaps and other agreements, to effectively secure future supply or sell future production generally at fixed prices. PacifiCorp manages its interest rate risk by limiting its exposure to variable interest rates primarily through the issuance of fixed-rate long-term debt and by monitoring market changes in interest rates. Additionally, PacifiCorp may from time to time enter into interest rate derivative contracts, such as interest rate swaps or locks, to mitigate PacifiCorp's exposure to interest rate risk. No interest rate derivatives were in place during the periods presented. PacifiCorp does not hedge all of its commodity price and interest rate risks, thereby exposing the unhedged portion to changes in market prices. There have been no significant changes in PacifiCorp's accounting policies related to derivatives. Refer to Note 9 for additional information on derivative contracts. The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of PacifiCorp's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions): Other Other Other Current Other Current Long-term Assets Assets Liabilities Liabilities Total As of June 30, 2015 Not designated as hedging contracts (1) : Commodity assets $ 17 $ — $ 1 $ — $ 18 Commodity liabilities (3 ) — (41 ) (77 ) (121 ) Total 14 — (40 ) (77 ) (103 ) Total derivatives 14 — (40 ) (77 ) (103 ) Cash collateral receivable — — 14 44 58 Total derivatives - net basis $ 14 $ — $ (26 ) $ (33 ) $ (45 ) As of December 31, 2014 Not designated as hedging contracts (1) : Commodity assets $ 28 $ — $ 1 $ — $ 29 Commodity liabilities (10 ) — (55 ) (49 ) (114 ) Total 18 — (54 ) (49 ) (85 ) Total derivatives 18 — (54 ) (49 ) (85 ) Cash collateral receivable — — 14 14 28 Total derivatives - net basis $ 18 $ — $ (40 ) $ (35 ) $ (57 ) (1) PacifiCorp's commodity derivatives are generally included in rates and as of June 30, 2015 and December 31, 2014 , a regulatory asset of $99 million and $85 million , respectively, was recorded related to the net derivative liability of $103 million and $85 million , respectively. The following table reconciles the beginning and ending balances of PacifiCorp's regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in regulatory assets, as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 130 $ 27 $ 85 $ 55 Changes in fair value recognized in regulatory assets (21 ) (27 ) 27 (49 ) Net gains (losses) reclassified to operating revenue 3 — 28 (11 ) Net (losses) gains reclassified to energy costs (13 ) — (41 ) 5 Ending balance $ 99 $ — $ 99 $ — Derivative Contract Volumes The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions): Unit of June 30, December 31, Measure 2015 2014 Electricity purchases (sales) Megawatt hours 1 (1 ) Natural gas purchases Decatherms 110 113 Fuel oil purchases Gallons 7 3 Credit Risk PacifiCorp is exposed to counterparty credit risk associated with wholesale energy supply and marketing activities with other utilities, energy marketing companies, financial institutions and other market participants. Credit risk may be concentrated to the extent PacifiCorp's counterparties have similar economic, industry or other characteristics and due to direct or indirect relationships among the counterparties. Before entering into a transaction, PacifiCorp analyzes the financial condition of each significant wholesale counterparty, establishes limits on the amount of unsecured credit to be extended to each counterparty and evaluates the appropriateness of unsecured credit limits on an ongoing basis. To further mitigate wholesale counterparty credit risk, PacifiCorp enters into netting and collateral arrangements that may include margining and cross-product netting agreements and obtains third-party guarantees, letters of credit and cash deposits. If required, PacifiCorp exercises rights under these arrangements, including calling on the counterparty's credit support arrangement. Collateral and Contingent Features In accordance with industry practice, certain wholesale derivative contracts contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the three recognized credit rating agencies. These derivative contracts may either specifically provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features") or provide the right for counterparties to demand "adequate assurance" in the event of a material adverse change in PacifiCorp's creditworthiness. These rights can vary by contract and by counterparty. As of June 30, 2015 , PacifiCorp's credit ratings from the three recognized credit rating agencies were investment grade. The aggregate fair value of PacifiCorp's derivative contracts in liability positions with specific credit-risk-related contingent features totaled $116 million and $113 million as of June 30, 2015 and December 31, 2014 , respectively, for which PacifiCorp had posted collateral of $58 million and $28 million , respectively, in the form of cash deposits. If all credit-risk-related contingent features for derivative contracts in liability positions had been triggered as of June 30, 2015 and December 31, 2014 , PacifiCorp would have been required to post $54 million and $75 million , respectively, of additional collateral. PacifiCorp's collateral requirements could fluctuate considerably due to market price volatility, changes in credit ratings, changes in legislation or regulation, or other factors. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | (9) Fair Value Measurements The carrying value of PacifiCorp's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. PacifiCorp has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: • Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that PacifiCorp has the ability to access at the measurement date. • Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Unobservable inputs reflect PacifiCorp's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. PacifiCorp develops these inputs based on the best information available, including its own data. 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, 2015 Assets: Commodity derivatives $ — $ 16 $ 2 $ (4 ) $ 14 Money market mutual funds (2) 91 — — — 91 Investment funds 16 — — — 16 $ 107 $ 16 $ 2 $ (4 ) $ 121 Liabilities - Commodity derivatives $ — $ (121 ) $ — $ 62 $ (59 ) As of December 31, 2014 Assets: Commodity derivatives $ — $ 25 $ 4 $ (11 ) $ 18 Money market mutual funds (2) 30 — — — 30 $ 30 $ 25 $ 4 $ (11 ) $ 48 Liabilities - Commodity derivatives $ — $ (114 ) $ — $ 39 $ (75 ) (1) Represents netting under master netting arrangements and a net cash collateral receivable of $58 million and $28 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. Money market mutual funds are accounted for as available-for-sale securities and the fair value approximates cost. Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which PacifiCorp transacts. When quoted prices for identical contracts are not available, PacifiCorp uses forward price curves. Forward price curves represent PacifiCorp's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. PacifiCorp bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent energy brokers, exchanges, direct communication with market participants and actual transactions executed by PacifiCorp. Market price quotations for certain major electricity and natural gas trading hubs are generally readily obtainable for the first six years; therefore, PacifiCorp's forward price curves for those locations and periods reflect observable market quotes. Market price quotations for other electricity and natural gas trading hubs are not as readily obtainable for the first six years. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, PacifiCorp uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, interest rates, currency rates, related volatility, counterparty creditworthiness and duration of contracts. Refer to Note 8 for further discussion regarding PacifiCorp's risk management and hedging activities. PacifiCorp's investments in money market mutual funds and investment funds are stated at fair value. PacifiCorp uses a readily observable quoted market price or net asset value of an identical security in an active market to record the fair value. PacifiCorp's long-term debt is carried at cost on the Consolidated Financial Statements. 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, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Long-term debt $ 7,269 $ 8,382 $ 7,019 $ 8,358 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | (10) Commitments and Contingencies Legal Matters PacifiCorp is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. PacifiCorp does not believe that such normal and routine litigation will have a material impact on its consolidated financial results. PacifiCorp is also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines, penalties and other costs in substantial amounts and are described below. USA Power In October 2005, prior to BHE's ownership of PacifiCorp, PacifiCorp was added as a defendant to a lawsuit originally filed in February 2005 in the Third District Court of Salt Lake County, Utah ("Third District Court") by USA Power, LLC, USA Power Partners, LLC and Spring Canyon Energy, LLC (collectively, the "Plaintiff"). The Plaintiff's complaint alleged that PacifiCorp misappropriated confidential proprietary information in violation of Utah's Uniform Trade Secrets Act and accused PacifiCorp of breach of contract and related claims in regard to the Plaintiff's 2002 and 2003 proposals to build a natural gas-fueled generating facility in Juab County, Utah. In October 2007, the Third District Court granted PacifiCorp's motion for summary judgment on all counts and dismissed the Plaintiff's claims in their entirety. In a May 2010 ruling on the Plaintiff's petition for reconsideration, the Utah Supreme Court reversed summary judgment and remanded the case back to the Third District Court for further consideration. In May 2012, a jury awarded damages to the Plaintiff for breach of contract and misappropriation of a trade secret in the amounts of $18 million for actual damages and $113 million for unjust enrichment. In May 2012, the Plaintiff filed a motion seeking exemplary damages. Under the Utah Uniform Trade Secrets law, the judge may award exemplary damages in an additional amount not to exceed twice the original award. The Plaintiff also filed a motion to seek recovery of attorneys' fees in an amount equal to 40% of all amounts ultimately awarded in the case. In October 2012, PacifiCorp filed post-trial motions for a judgment notwithstanding the verdict and a new trial. As a result of a hearing in December 2012, the trial judge denied PacifiCorp's post-trial motions with the exception of reducing the aggregate amount of damages to $113 million . In January 2013, the Plaintiff filed a motion for prejudgment interest. An initial judgment was entered in April 2013 in which the trial judge denied the Plaintiff's motions for exemplary damages and prejudgment interest and ruled that PacifiCorp must pay the Plaintiff's attorneys' fees based on applying a reasonable rate to hours worked. In May 2013, a final judgment was entered against PacifiCorp in the amount of $115 million , which includes the $113 million of aggregate damages previously awarded and amounts awarded for the Plaintiff's attorneys' fees. The final judgment also ordered that postjudgment interest accrue beginning as of the date of the April 2013 initial judgment. In May 2013, PacifiCorp posted a surety bond issued by a subsidiary of Berkshire Hathaway to secure its estimated obligation. PacifiCorp strongly disagrees with the jury's verdict and is vigorously pursuing all appellate measures. Both PacifiCorp and the Plaintiff filed appeals with the Utah Supreme Court. Briefing before the Utah Supreme Court is complete and oral arguments are scheduled for September 2015. As of June 30, 2015 , PacifiCorp had accrued $120 million for the final judgment and postjudgment interest, and believes the likelihood of any additional material loss is remote; however, any additional awards against PacifiCorp could also have a material effect on the consolidated financial results. Any payment of damages will be at the end of the appeals process, which could take as long as several years. Sanpete County, Utah Rangeland Fire In June 2012, a major rangeland fire occurred in Sanpete County, Utah. Certain parties allege that contact between two of PacifiCorp's transmission lines may have triggered a ground fault that led to the fire. PacifiCorp has engaged experts to review the cause and origin of the fire, as well as to assess the damages. PacifiCorp has accrued its best estimate of the potential loss and expected insurance recovery. PacifiCorp believes it is reasonably possible it may incur additional loss beyond the amount accrued, but does not believe the potential additional loss will have a material impact on its consolidated financial results. Environmental Laws and Regulations PacifiCorp is subject to federal, state and local laws and regulations regarding air and water quality, renewable portfolio standards, emissions performance standards, climate change, coal combustion byproduct disposal, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact PacifiCorp's current and future operations. PacifiCorp believes it is in material compliance with all applicable laws and regulations. Commitments As a result of the Utah Mine Disposition discussed in Note 4, PacifiCorp's replacement coal supply agreement for one of its generating facilities became effective in June 2015. Also during the three-month period ended June 30, 2015, PacifiCorp entered into several purchased electricity contracts from facilities that have not yet achieved commercial operation. These coal supply and purchased electricity contracts result in minimum future purchases of $70 million in 2016, $112 million in 2017, $127 million in 2018, $127 million in 2019 and $1.601 billion in 2020 and thereafter. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | (11) Related Party Transactions Berkshire Hathaway includes BHE and its subsidiaries in its United States federal income tax return. Consistent with established regulatory practice, PacifiCorp's provision for income taxes has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income taxes are remitted to or received from BHE. For the six-month period ended June 30, 2015, PacifiCorp received net cash payments for federal and state income taxes from BHE totaling $87 million . For the six-month period ended June 30, 2014, PacifiCorp made net cash payments for federal and state income taxes to BHE totaling $27 million . |
Property, Plant and Equipment18
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Public Utility Property, Plant, and Equipment [Table Text Block] | Property, plant and equipment, net consists of the following (in millions): As of June 30, December 31, Depreciable Life 2015 2014 Property, plant and equipment in-service 5-75 years $ 26,503 $ 25,813 Accumulated depreciation and amortization (8,247 ) (8,026 ) Net property, plant and equipment in-service 18,256 17,787 Construction work-in-progress 644 932 Total property, plant and equipment, net $ 18,900 $ 18,719 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Net periodic benefit cost for the pension and other postretirement benefit plans included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Pension: Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 14 14 27 28 Expected return on plan assets (20 ) (19 ) (39 ) (38 ) Net amortization 11 7 21 15 Net periodic benefit cost $ 6 $ 3 $ 11 $ 7 Other postretirement: Service cost $ 1 $ 2 $ 2 $ 3 Interest cost 4 7 8 14 Expected return on plan assets (6 ) (7 ) (12 ) (15 ) Net amortization (1 ) — (2 ) 1 Net periodic benefit cost $ (2 ) $ 2 $ (4 ) $ 3 |
Risk Management and Hedging A20
Risk Management and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of PacifiCorp's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions): Other Other Other Current Other Current Long-term Assets Assets Liabilities Liabilities Total As of June 30, 2015 Not designated as hedging contracts (1) : Commodity assets $ 17 $ — $ 1 $ — $ 18 Commodity liabilities (3 ) — (41 ) (77 ) (121 ) Total 14 — (40 ) (77 ) (103 ) Total derivatives 14 — (40 ) (77 ) (103 ) Cash collateral receivable — — 14 44 58 Total derivatives - net basis $ 14 $ — $ (26 ) $ (33 ) $ (45 ) As of December 31, 2014 Not designated as hedging contracts (1) : Commodity assets $ 28 $ — $ 1 $ — $ 29 Commodity liabilities (10 ) — (55 ) (49 ) (114 ) Total 18 — (54 ) (49 ) (85 ) Total derivatives 18 — (54 ) (49 ) (85 ) Cash collateral receivable — — 14 14 28 Total derivatives - net basis $ 18 $ — $ (40 ) $ (35 ) $ (57 ) (1) PacifiCorp's commodity derivatives are generally included in rates and as of June 30, 2015 and December 31, 2014 , a regulatory asset of $99 million and $85 million , respectively, was recorded related to the net derivative liability of $103 million and $85 million , respectively. |
Schedule of Regulatory Assets (Liabilities), Net, Unrealized Loss (Gain), Net, on Derivative Contracts [Table Text Block] | The following table reconciles the beginning and ending balances of PacifiCorp's regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in regulatory assets, as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 130 $ 27 $ 85 $ 55 Changes in fair value recognized in regulatory assets (21 ) (27 ) 27 (49 ) Net gains (losses) reclassified to operating revenue 3 — 28 (11 ) Net (losses) gains reclassified to energy costs (13 ) — (41 ) 5 Ending balance $ 99 $ — $ 99 $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions): Unit of June 30, December 31, Measure 2015 2014 Electricity purchases (sales) Megawatt hours 1 (1 ) Natural gas purchases Decatherms 110 113 Fuel oil purchases Gallons 7 3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 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, 2015 Assets: Commodity derivatives $ — $ 16 $ 2 $ (4 ) $ 14 Money market mutual funds (2) 91 — — — 91 Investment funds 16 — — — 16 $ 107 $ 16 $ 2 $ (4 ) $ 121 Liabilities - Commodity derivatives $ — $ (121 ) $ — $ 62 $ (59 ) As of December 31, 2014 Assets: Commodity derivatives $ — $ 25 $ 4 $ (11 ) $ 18 Money market mutual funds (2) 30 — — — 30 $ 30 $ 25 $ 4 $ (11 ) $ 48 Liabilities - Commodity derivatives $ — $ (114 ) $ — $ 39 $ (75 ) (1) Represents netting under master netting arrangements and a net cash collateral receivable of $58 million and $28 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. Money market mutual funds are accounted for as available-for-sale securities and the fair value approximates cost. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | PacifiCorp's long-term debt is carried at cost on the Consolidated Financial Statements. 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, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Long-term debt $ 7,269 $ 8,382 $ 7,019 $ 8,358 |
Property, Plant and Equipment22
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment in-service | $ 26,503 | $ 25,813 |
Accumulated depreciation and amortization | (8,247) | (8,026) |
Net property, plant and equipment in-service | 18,256 | 17,787 |
Construction work-in-progress | 644 | 932 |
Total property, plant and equipment, net | $ 18,900 | $ 18,719 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 75 years |
Recent Financing Transactions -
Recent Financing Transactions - Long-term Debt (Details) - Jun. 30, 2015 - First Mortgage Bonds, 3.35%, Due July 2025 [Member] - USD ($) $ in Millions | Total |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 250 |
Debt Instrument, Interest Rate, Stated Percentage | 3.35% |
Recent Financing Transactions24
Recent Financing Transactions - Credit Facilities (Details) - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, Amounts Supported | $ 56 | |
Letters of credit supporting tax-exempt bond obligations [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 428 | |
Letters of credit supporting tax-exempt bond obligations [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, Increase (Decrease), Net | $ 191 | |
Letters of credit supported by credit facility [Member] | Letters of credit supporting tax-exempt bond obligations [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facility, Increase (Decrease), Net | $ (23) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | 14 | 14 | 27 | 28 |
Expected return on plan assets | (20) | (19) | (39) | (38) |
Net amortization | 11 | 7 | 21 | 15 |
Net periodic benefit cost | 6 | 3 | 11 | 7 |
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 2 | 2 | 3 |
Interest cost | 4 | 7 | 8 | 14 |
Expected return on plan assets | (6) | (7) | (12) | (15) |
Net amortization | (1) | 0 | (2) | 1 |
Net periodic benefit cost | $ (2) | $ 2 | $ (4) | $ 3 |
Employee Benefit Plans Narrativ
Employee Benefit Plans Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | May. 31, 2015 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated employer contributions for 2015 | $ 4 | |
Contributions by employer | 2 | |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated employer contributions for 2015 | 0 | |
Contributions by employer | $ 0 | |
Defined Benefit Plan, Amount To Be Transferred | $ 150 | |
Defined Benefit Plan, Net Periodic Benefit Cost Not Yet Recognized, Regulatory Deferrals, Before Tax | $ 9 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset Retirement Obligation | $ 227 | $ 135 |
Risk Management and Hedging A28
Risk Management and Hedging Activities - Balance Sheet Location (Details) - Commodity Contract [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Fair Value, Net | $ (103) | $ (85) | |||||
Cash collateral, net receivable, offset against derivative positions | 58 | 28 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | (45) | (57) | |||||
Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Fair Value, Net | 14 | 18 | |||||
Cash collateral, net receivable, offset against derivative positions | 0 | 0 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | 14 | 18 | |||||
Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Fair Value, Net | 0 | 0 | |||||
Cash collateral, net receivable, offset against derivative positions | 0 | 0 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 | |||||
Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Fair Value, Net | (40) | (54) | |||||
Cash collateral, net receivable, offset against derivative positions | 14 | 14 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | (26) | (40) | |||||
Other Long-term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Fair Value, Net | (77) | (49) | |||||
Cash collateral, net receivable, offset against derivative positions | 44 | 14 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | (33) | (35) | |||||
Not Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Commodity assets | [1] | 18 | 29 | ||||
Commodity liabilities | [1] | (121) | (114) | ||||
Derivative, Fair Value, Net | [1] | (103) | (85) | ||||
Regulatory asset | 99 | $ 130 | 85 | $ 0 | $ 27 | $ 55 | |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Commodity assets | [1] | 17 | 28 | ||||
Commodity liabilities | [1] | (3) | (10) | ||||
Derivative, Fair Value, Net | [1] | 14 | 18 | ||||
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Commodity assets | [1] | 0 | 0 | ||||
Commodity liabilities | [1] | 0 | 0 | ||||
Derivative, Fair Value, Net | [1] | 0 | 0 | ||||
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Commodity assets | [1] | 1 | 1 | ||||
Commodity liabilities | [1] | (41) | (55) | ||||
Derivative, Fair Value, Net | [1] | (40) | (54) | ||||
Not Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Commodity assets | [1] | 0 | 0 | ||||
Commodity liabilities | [1] | (77) | (49) | ||||
Derivative, Fair Value, Net | [1] | $ (77) | $ (49) | ||||
[1] | PacifiCorp's commodity derivatives are generally included in rates and as of June 30, 2015 and December 31, 2014, a regulatory asset of $99 million and $85 million, respectively, was recorded related to the net derivative liability of $103 million and $85 million, respectively. |
Risk Management and Hedging A29
Risk Management and Hedging Activities - Not Designated as Hedging Contracts (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Regulatory Assets (Liabilities), Net, Derivatives [Roll Forward] | ||||
Beginning balance | $ 130 | $ 27 | $ 85 | $ 55 |
Changes in fair value recognized in regulatory assets | (21) | (27) | 27 | (49) |
Net gains (losses) reclassified to operating revenue | 3 | 0 | 28 | (11) |
Net (losses) gains reclassified to energy costs | (13) | 0 | (41) | 5 |
Ending balance | $ 99 | $ 0 | $ 99 | $ 0 |
Risk Management and Hedging A30
Risk Management and Hedging Activities - Derivative Contract Volumes (Details) - Commodity Contract [Member] gal in Millions, MWh in Millions, Dth in Millions | Jun. 30, 2015MWhgalDth | Dec. 31, 2014MWhgalDth |
Electricity purchases (sales) (in megawatt hours) [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MWh | 1 | (1) |
Natural gas purchases (in decatherms) [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Dth | 110 | 113 |
Fuel oil purchases (in gallons) [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 7 | 3 |
Risk Management and Hedging A31
Risk Management and Hedging Activities - Collateral and Contingent Features (Details) - Commodity Contract [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 116 | $ 113 |
Collateral Already Posted, Aggregate Fair Value | 58 | 28 |
Additional Collateral, Aggregate Fair Value | $ 54 | $ 75 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | $ 121 | $ 48 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 107 | 30 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 16 | 25 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value disclosure | 2 | 4 | |
Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market mutual funds | [1] | 91 | 30 |
Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market mutual funds | [1] | 91 | 30 |
Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market mutual funds | [1] | 0 | 0 |
Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market mutual funds | [1] | 0 | 0 |
Investment funds [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment funds | 16 | ||
Investment funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment funds | 16 | ||
Investment funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment funds | 0 | ||
Investment funds [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment funds | 0 | ||
Commodity Contract [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash collateral, net receivable, offset against derivative positions | 58 | 28 | |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2] | (4) | (11) |
Commodity derivative assets | 14 | 18 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | 62 | 39 |
Commodity derivative liabilities | (59) | (75) | |
Cash collateral, net receivable, offset against derivative positions | 58 | 28 | |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 16 | 25 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (121) | (114) | |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets (Liabilities) Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 2 | 4 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 | |
[1] | Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. Money market mutual funds are accounted for as available-for-sale securities and the fair value approximates cost. | ||
[2] | Represents netting under master netting arrangements and a net cash collateral receivable of $58 million and $28 million as of June 30, 2015 and December 31, 2014, respectively. |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | $ 7,269 | $ 7,019 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 8,382 | $ 8,358 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) - Jun. 30, 2015 - USA Power [Member] - USD ($) $ in Millions | Total |
Loss Contingencies [Line Items] | |
Loss Contingency, Original Damages Sought, Legal Fees as a Percentage of Damages | 40.00% |
Loss Contingency, Damages Awarded, Value | $ 113 |
Loss Contingency, Damages and Attorney Fees Awarded, Value | 115 |
Loss Contingency Accrual, at Carrying Value | 120 |
Amount Awarded for Actual Damages [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Awarded by Jury, Value | 18 |
Amount Awarded for Unjust Enrichment [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Awarded by Jury, Value | $ 113 |
Commitments and Contingencies35
Commitments and Contingencies - Commitments (Details) - Fuel, capacity and transmission contract commitments, Not commercially operable [Member] $ in Millions | Jun. 30, 2015USD ($) |
ContractualObligationFiscalYearMaturityScheduleTable [Line Items] | |
Purchase Obligation, Due in Second Year | $ 70 |
Purchase Obligation, Due in Third Year | 112 |
Purchase Obligation, Due in Fourth Year | 127 |
Purchase Obligation, Due in Fifth Year | 127 |
Purchase Obligation, Due after Fifth Year | $ 1,601 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Berkshire Hathaway Energy [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Cash (Received) Paid for Income Taxes, Net | $ (87) | $ 27 |