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Berkshire Hathaway — 2022 Berkshire Hathaway Energy Investor Presentation (company IR deck)
Berkshire Hathaway (BRK.B) · 0 slides · Filed Oct 30, 2026
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Slide 1 — EEI Financial Conference
EEI Financial Conference November 2022
Slide 2 — Forward-Looking Statements
Forward-Looking Statements 2 This presentation 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 Berkshire Hathaway Energy Company and its subsidiaries, 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, or Eastern Gas Transmission and Storage, Inc. and its subsidiaries (collectively, the Registrants), as applicable, current intentions, 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 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 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, competition or weather conditions, as well as demographic trends, new technologies and various conservation, energy efficiency and private generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply or the respective Registrant's ability to obtain long-term contracts with customers and suppliers; – performance, availability and ongoing operation of the respective Registrant's facilities, including facilities not operated by the Registrants, due to the impacts of market conditions, outages and associated repairs, transmission constraints, weather, including wind, solar and hydroelectric conditions, and operating conditions; – the effects of catastrophic and other unforeseen events, which may be caused by factors beyond the control of each respective Registrant or by a breakdown or failure of the Registrants' operating assets, including severe storms, floods, fires, extreme temperature events, wind events, earthquakes, explosions, landslides, an electromagnetic pulse, mining incidents, litigation, wars (including, for example, Russia's invasion of Ukraine in February 2022), terrorism, pandemics, embargoes, and cyber security attacks, data security breaches, disruptions, or other malicious acts; – the risks and uncertainties associated with wildfires that have occurred, are occurring or may occur in the respective Registrant's service territory for which the cause has yet to be determined; the damage caused by such wildfires; the extent of the respective Registrant's liability in connection with such wildfires (including the risk that the respective Registrant may be found liable for damages regardless of fault); investigations into such wildfires; the outcome of any legal proceedings initiated against the respective Registrant; the risk that the respective Registrant is not able to recover costs from insurance or through rates; and the effect on the respective Registrant's reputation of such wildfires, investigations and proceedings; – the respective Registrant's ability to reduce wildfire threats and improve safety, including the ability to comply with the targets and metrics set forth in its wildfire mitigation plans; to retain or contract for the workforce necessary to execute its wildfire mitigation plans; the effectiveness of its system hardening; ability to achieve vegetation management targets; and the cost of these programs and the timing and outcome of any proceeding to recover such costs through rates; – the ability to economically obtain insurance coverage, or any insurance coverage at all, sufficient to cover losses arising from catastrophic events, such as wildfires where the Registrants may be found liable for real and personal property damages regardless of fault; – a high degree of variance between actual and forecasted load or generation that could impact a Registrant's hedging strategy and the cost of balancing its generation resources with its retail load obligations;
Slide 3 — Forward-Looking Statements
Forward-Looking Statements 3 – changes in prices, availability and demand for wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generating capacity and energy costs; – the financial condition, creditworthiness and operational stability of the respective Registrant's significant customers and suppliers; – changes in business strategy or development plans; – availability, terms and deployment of capital, including reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in interest rates; – changes in the respective Registrant's credit ratings; – risks relating to nuclear generation, including unique operational, closure and decommissioning risks; – hydroelectric conditions and the cost, feasibility and eventual outcome of hydroelectric relicensing proceedings; – the impact of certain contracts used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in commodity prices, interest rates and other conditions that affect the fair value of certain contracts; – the impact of inflation on costs and the ability of the respective Registrants to recover such costs in regulated rates; – fluctuations in foreign currency exchange rates, primarily the British pound and the Canadian dollar; – increases in employee healthcare costs; – the impact of investment performance, certain participant elections such as lump sum distributions and changes in interest rates, legislation, healthcare cost trends, mortality, morbidity on pension and other postretirement benefits expense and funding requirements; – changes in the residential real estate brokerage, mortgage and franchising industries and regulations that could affect brokerage, mortgage and franchising transactions; – the ability to successfully integrate future acquired operations into a Registrant's business; – the impact of supply chain disruptions and workforce availability on the respective Registrant's ongoing operations and its ability to timely complete construction projects; – unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future facilities and infrastructure additions; – the availability and price of natural gas in applicable geographic regions and demand for natural gas supply; – the impact of new accounting guidance or changes in current accounting estimates and assumptions on the financial results of the respective Registrants; and – other business or investment considerations that may be disclosed from time to time in the Registrants' filings with the United States Securities and Exchange Commission (SEC) or in other publicly disseminated written documents. Further details of the potential risks and uncertainties affecting the Registrants are described in the Registrants’ filings with the SEC. 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. This presentation includes certain non-Generally Accepted Accounting Principles (GAAP) financial measures as defined by the SEC’s Regulation G. Refer to the BHE Appendix in this presentation for a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measures.
Slide 4 — Calvin Haack
Calvin Haack Senior Vice President and Chief Financial Officer
Slide 5 — Berkshire Hathaway Energy
Berkshire Hathaway Energy 5 Vision To be the best energy company in serving our customers, while delivering sustainable energy solutions Culture Personal responsibility to our customers Strategy Reinvest in our businesses • Continue to invest in our employees and operations, maintenance and capital programs for property, plant and equipment • Position our regulated businesses to meet changing customer expectations and retain customers by providing excellent service and competitive rates • Advance the reliability and resilience of our systems, including cybersecurity and physical security • Deliver sustainable energy solutions by reducing our emissions, transitioning to renewables, pursuing energy storage and employing innovative technology Invest in internal growth • Grow our portfolio of low-cost renewable energy solutions • Pursue value-enhancing additions to the electric grid and gas pipeline infrastructure • Deploy energy storage, electric vehicle infrastructure and innovative technologies Acquire companies • Additive to our business Competitive Advantage Berkshire Hathaway ownership
Slide 6 — Organizational Structure
2021 Berkshire Hathaway Inc. ($ billions) Revenue $276.1 Net Income(1) $89.8 Shareholders’ Equity $506.2 2021 Berkshire Hathaway Energy ($ billions) Revenue $25.2 Earnings on Common Shares $5.7 Common Shareholders’ Equity $45.0 Organizational Structure 6 Holding Company Contracted Non-utility Power Generation Regulated Natural Gas Transmission A2/A Regulated Natural Gas Transmission Northern Powergrid (Northeast) plc A3/A U.K. Regulated Electric Distribution Northern Powergrid (Yorkshire) plc A3/A U.K. Regulated Electric Distribution Baa1/A- Holding Company A1/A+(2) Regulated Electric Utility A/A(3) Canada Regulated Electric Transmission Holding Company Nevada Power Company A2/A+(2) Regulated Electric Utility Sierra Pacific Power Company A2/A+(2) Regulated Electric and Gas Utility Real Estate Brokerage, Mortgage and Franchises A3/A- Aa2/AA 92% Aa2/A+(2) Regulated Electric and Gas Utility Holding Company Regulated Electric Transmission Eastern Energy Gas Holdings, LLC Baa1/A Modular LNG, Other Minor Assets Cove Point LNG 25% Interest EGTS (A3/A), Carolina Gas, Iroquois (50% interest, A3/BBB+) Regulated Natural Gas Transmission Regulated Electric Transmission (1) As disclosed in Berkshire Hathaway’s 2021 10-K filing, 2021 net earnings attributable to shareholders of $89.8 billion included after-tax gains on investments (realized and unrealized) of $61.6 billion (2) Ratings for PacifiCorp, MidAmerican Energy Company, Nevada Power Company and Sierra Pacific Power Company are senior secured ratings (Moody’s and S&P) (3) Ratings for AltaLink, L.P. are senior secured ratings (S&P and DBRS)
Slide 7 — Diversity in Our Portfolio
Diversity in Our Portfolio 7 ELECTRIC DISTRIBUTION Our integrated utilities serve approximately 5.2 million U.S. customers; Northern Powergrid has 3.9 million end-users in northern England, making it the third-largest distribution company in Great Britain ELECTRIC TRANSMISSION We own significant transmission infrastructure in 15 states and the province of Alberta; with our assets at PacifiCorp, NV Energy and AltaLink, we are the largest transmission owner in the Western Interconnection PIPELINES BHE Pipeline Group owns assets in 27 states and transported approximately 15% of the total natural gas consumed in the U.S. during 2021 GENERATION As of September 30, 2022, we owned 34,951 MWs of generation capacity in operation and under construction, with resource diversity and a growing renewable portfolio RENEWABLES As of September 30, 2022, we had invested $36.8 billion in wind, solar, geothermal and biomass generation, and have plans to spend an additional $5.5 billion on renewable generation through 2024 Berkshire Hathaway Energy’s regulated energy businesses serve customers and end-users across geographically diverse service territories, including 28 states located throughout the U.S. and in Great Britain and Canada
Slide 8 — Energy Assets
Energy Assets 8 (1) Adjusted for BYD unrealized loss for the twelve months ending September 30, 2022. See appendix for detailed reconciliation (2) Includes both electric and natural gas customers and end- users worldwide. Additionally, AltaLink serves approximately 85% of Alberta, Canada’s population As of and for the LTM ended 9/30/2022 Financial Strength • Assets • Revenue • Earnings on Common Shares(1) $132 billion $26 billion $4.1 billion Environmental Respect • Noncarbon Power • Invested in Renewables 45% $36.8 billion Customer Service • Total Customers(2) • #1 Pipeline Ranking 9.1 million 17 years Regulatory Integrity Retail rates of regulated U.S. electric utilities 16% to 35% below the national average Employee Commitment • Employees • OSHA Incident Rate 24,000 0.40 Operational Excellence • Electric T&D • Natural Gas T&D 210,850 miles 48,800 miles
Slide 9 — Competitive Advantage
• Diversified portfolio of regulated assets – Weather, customer, regulatory, generation, economic and catastrophic risk diversification • Berkshire Hathaway ownership – Access to capital from Berkshire Hathaway allows us to take advantage of market opportunities – Berkshire Hathaway is a long-term holder of assets, which promotes stability and helps make Berkshire Hathaway Energy the buyer of choice in many circumstances – Tax appetite of Berkshire Hathaway has allowed us to receive significant cash tax benefits from our parent, including $1.7 billion in the nine months ended September 30, 2022, and $1.4 billion in 2021 • No dividend requirement – Cash flow is retained within the business and used to help fund growth and strengthen our balance sheet – We retain more dollars of earnings than any other U.S. electric utility Competitive Advantage 9
Slide 10 — Destination Net Zero
Destination Net Zero 10 Achieving Net Zero Greenhouse Gas Emissions by 2050 Striving to achieve net zero greenhouse gas emissions by 2050 in a manner our customers can afford, our regulators will allow and technology advances support Increasing noncarbon generation and energy storage, investing in transmission infrastructure and reducing utilization of coal units Retiring all coal units by 2049 and natural gas units by 2050 Achieving a 50% reduction in CO2 emissions by 2030 from 2005 levels Leading in Renewable Generation Combined, Berkshire Hathaway Energy’s businesses are No.1 among investor-owned utilities with clean power in operation(1) As of September 30, 2022, 45% of owned generation capacity (operating and under construction) comes from noncarbon resources; anticipate 50% by 2030 Plan to retire all coal units by 2049 and all natural gas units by 2050 Coal Unit Retirements Investing in Renewable Energy $36.8 billion invested in renewable energy through September 30, 2022, with plans to invest an additional $5.5 billion through 2024 Transparent Reporting Annual environmental and climate-related disclosures are made in investor presentations and are publicly available • Additional information can be found at: www.brkenergy.com/esg-sustainability/governance.aspx 2006-2021 2022-2030 2031-2049 PacifiCorp 4 14 8 MidAmerican 5 0 6 NV Energy 7 2 0 Total 16 16 14 (1) American Clean Power Association 2021 Annual Report
Slide 11 — Green Financing Framework
Green Financing Framework 11 In November 2022, Berkshire Hathaway Energy released a Green Financing Framework, which will be adopted by its subsidiaries. The framework is in alignment with the June 2021 Green Bond Principles published by the International Capital Markets Association Second Party Opinion Berkshire Hathaway Energy obtained a second party opinion from The funds may be allocated to the following Eligible Green Project categories: 1. Renewable Energy 2. Clean Transportation • Eligible Projects include new or existing investments and/or expenditures made by an Issuing Entity beginning with the issuance date of each Green Financing Instrument or in the 24 months prior to any such issuance • Each Issuing Entity intends to allocate an amount equal to the net proceeds within 24 months of the Green Financing Instrument issuance 1 Four Core Pillars • Berkshire Hathaway Energy and/or each Issuing Entity intends to report on the allocation, and where feasible, the environmental impact, of the use of proceeds from each Green Financing Instrument annually, until full allocation • Each report (Green Financing Report) will be available on Berkshire Hathaway Energy’s website and may include: Net proceeds allocated by project, where feasible, and/or Eligible Project category; Estimated portion of proceeds used for financing vs. refinancing; Remaining balance of proceeds yet to be allocated to Eligible Projects, if applicable; Examples of projects to which proceeds have been allocated; Impact reporting metrics where feasible and subject to confidentiality considerations; Key underlying methodology used 4 • Eligible Projects will be selected by a group consisting of representatives from Berkshire Hathaway Energy Treasury and Sustainability offices in addition to the Chief Financial Officer of the Issuing Entity • This group will convene to determine which projects are eligible and select according to overall financing needs. All Eligible Projects are approved by the Chief Financial Officer of Berkshire Hathaway Energy 2 • The accounting function for each Issuing Entity will oversee the internal tracking system to allocate an amount equal to the net proceeds from any Green Financing Instruments to Eligible Projects. Pending allocation, net proceeds will be managed in accordance with each Issuing Entity’s normal liquidity practices • If a project no longer meets the eligibility criteria, the Issuing Entity will use reasonable efforts to reallocate the funds to other Eligible Projects in a timely manner 3 Use of Proceeds Process for Project Evaluation and Selection Management of Proceeds Reporting 3. Climate Change Adaptation 4. Energy Efficiency External Review • Each Green Financing Report will be accompanied by an assertion by management regarding the allocation of net proceeds and a report from either an independent auditor or an external consultant with expertise in environmental, social and governance matters
Slide 12 — Green Bond Impact Reporting
Green Bond Impact Reporting and Investor Resources 12 • The Green Financing Framework and Second Party Opinion from S&P are available on Berkshire Hathaway Energy’s website at: – www.brkenergy.com/esg-sustainability/green-financing.aspx • Information regarding our green financings and impact reports are available on PacifiCorp’s and MidAmerican’s websites: – www.pacificorp.com/about/green-initiatives-investments.html – www.midamericanenergy.com/about-us/green-bonds
Slide 13 — Inflation Reduction Act Supports Low-Cost
• The Inflation Reduction Act (IRA) provides significant long-term benefits for Berkshire Hathaway Energy and keeps costs low for our customers – The IRA benefits Berkshire Hathaway Energy’s decarbonization goals. Additional noncarbon development will reduce emissions – The IRA provides clear line of sight on investment tax credits (ITCs) and production tax credits (PTCs) for new renewable resources required to achieve net zero goals – PTC/ITC optionality for solar projects supports utility ownership and improves value proposition for our customers – New ITC with normalization opt-out for energy storage technologies improves economic viability – New and extended tax credits for carbon capture utilization and sequestration, clean hydrogen production and nuclear generation provide additional opportunities for base-load generating assets that align with Berkshire Hathaway Energy’s net zero goals and provide grid stability Inflation Reduction Act Supports Low-Cost Renewable Development Opportunities 13
Slide 14 — Western Electric Transmission Investment
Western Electric Transmission Investment to Enable Low-Cost Renewable Energy 14 • Berkshire Hathaway Energy plans to invest more than $18 billion (of which $5.8 billion has been invested as of September 30, 2022) developing a more interconnected electric transmission grid in the western U.S. and Canada, thereby providing a conduit for increased renewable energy to be delivered • PacifiCorp plans to invest more than $11 billion on major transmission projects – primarily located in Wyoming, Utah, Idaho and Oregon – including Windstar-Hemingway, Aeolus-Mona/Clover and Boardman- Hemingway, of which $3.6 billion has been invested as of September 30, 2022 • NV Energy’s Greenlink Nevada projects include a 350-mile, 525-kV transmission line (Greenlink West) and a 235-mile, 525-kV transmission line (Greenlink North), with a combined expected cost of approximately $2.5 billion • PacifiCorp, NV Energy and BHE Transmission plan to invest $6.2 billion in other electric transmission projects, of which $2.2 billion has been invested as of September 30, 2022 Existing Lines Future Lines Sigurd Red Butte Boardman Lethbridge Great Falls Hemingway Cedar Hill Borah Populus Ben Lomond Terminal Oquirrh Aeolus Windstar Shirley Basin Bridger/ Anticline Eldorado (Cal ISO) Harry Allen Northwest Robinson Summit Comstock Meadows Ft. Churchill Mira Loma McNary Wallula Limber Midpoint Troutdale Swift Emery Spanish Fork Mercer Purgatory Flat Three Peaks Mona/ Clover
Slide 15 — Capital Expenditures and Cash Flows
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 2017A 2018A 2019A 2020A 2021A 2022F 2023F 2024F ($ millions) BHE Cash Flow from Operations BHE Total Capital Expenditures BHE Operating Capital Expenditures • Berkshire Hathaway Energy and its subsidiaries will spend approximately $27.2 billion(1) from 2022-2024 for growth and operating capital expenditures, which primarily consist of new renewable generation project expansions, repowering of existing wind facilities, and electric transmission and distribution capital expenditures Capital Expenditures and Cash Flows 15 2022 – 2024: $17.8 Billion Free Cash Flow above Operating Capex 2022 – 2024: $2.2 Billion Free Cash Flow above Total Capex + Free Cash Flow (1) Cash from operations and capital expenditures include 100% of Cove Point LNG, which is consolidated, but only 25% owned by BHE
Slide 16 — U.S. Regulatory Overview
U.S. Regulatory Overview Adjustment Mechanisms 16 (1) PacifiCorp has relied on both historical test periods with known and measurable adjustments, as well as forecast test periods (2) Beginning January 1, 2022, Washington law allows utilities to file multi-year rate plans Fuel Recovery Mechanism Capital Recovery Mechanism Wildfire Mitigation Cost Mechanism Renewable Rider Transmission Rider Energy Efficiency Rider Decoupling Forward Test Year PacifiCorp Utah (1) Wyoming (1) Idaho Oregon Washington (2) California MidAmerican Iowa – Electric Illinois – Electric South Dakota – Electric Iowa – Gas Illinois – Gas South Dakota – Gas NV Energy Nevada Power Sierra Pacific – Electric Sierra Pacific – Gas
Slide 17 — Revenue and Net Income Diversification
17 Revenue and Net Income Diversification • Diversified revenue sources reduce regulatory concentrations • For the 12 months ended September 30, 2022, approximately 82% of adjusted earnings was from investment-grade regulated subsidiaries. A significant portion of the remaining non-regulated adjusted net income is from contracted generation assets at BHE Renewables BHE LTM 9/30/2022 Energy Revenue(1): $20 Billion PacifiCorp 18% MidAmerican Funding 20% NV Energy 9% Northern Powergrid 8% BHE Pipeline Group 21% BHE Transmission 6% BHE Renewables 14% HomeServices 4% BHE LTM 9/30/2022 Adj. Earnings to Common(2): $4.1 Billion Iowa 17% Nevada 17% Utah 12% Oregon 6% Wyoming 4% California 4% Illinois 3% Washington 2% Idaho 2% FERC 14% Great Britain 7% Alberta 4% Other 8% (1) Excludes HomeServices and equity income, which add further diversification. “Other” revenue percentage includes 100% of Cove Point LNG, which is consolidated, but only 25% owned by BHE (2) Percentages exclude Corporate/Other
Slide 18 — Earnings on Common Shares
Earnings on Common Shares 18 (1) See appendix for a detailed reconciliation of earnings on common shares adjustments ($ millions) LTM Years Ended Earnings on common shares 9/30/2022 12/31/2021 12/31/2020 PacifiCorp 783 $ 889 $ 741 $ MidAmerican Funding 900 883 818 NV Energy 415 439 410 Northern Powergrid 367 247 201 BHE Pipeline Group 935 807 528 BHE Transmission 246 247 231 BHE Renewables 617 451 521 HomeServices 200 387 375 BHE and Other (394) (458) (378) Adjusted earnings on common shares(1) 4,069 3,892 3,447 Unrealized (loss)/gain on BYD, net of income taxes (617) 1,777 3,470 Earnings on common shares 3,452 $ 5,669 $ 6,917 $
Slide 19 — Berkshire Hathaway Energy
• Since being acquired by Berkshire Hathaway in March 2000, Berkshire Hathaway Energy has realized significant growth in its assets, equity, net income and cash flows $6.5 $73.3 $86.1 $89.8 $90.9 $0 $20 $40 $60 $80 $100 2001 2019 2020 2021 9/30/2022 $ billions $0.1 $3.2 $3.4 $3.9 $4.1 -$0.5 $0.5 $1.5 $2.5 $3.5 $4.5 2001 2019 2020 2021 LTM 9/30/2022 $ billions $0.8 $6.2 $6.2 $8.7 $9.6 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2001 2019 2020 2021 LTM 9/30/2022 $ billions $1.7 $32.4 $39.3 $45.0 $45.0 $0 $10 $20 $30 $40 $50 2001 2019 2020 2021 9/30/22 $ billions Adj. Earnings to Common(1) BHE Common Shareholders’ Equity Property, Plant and Equipment (Net) Cash Flows From Operations(2) Berkshire Hathaway Energy Financial Summary 19 (1) See appendix for a detailed reconciliation of earnings on common shares adjustments (2) Includes 100% of Cove Point LNG, which is consolidated, but only 25% owned by BHE
Slide 20 — Power Diversification
Power Diversification 20 Coal 23% Natural Gas 32% Nuclear and Other 1% Wind 34% Solar 6% Hydro 3% Geothermal 1% • As of September 30, 2022, Berkshire Hathaway Energy owns 34,951 MWs of generation capacity in operation and under construction – 29,633 MWs of generation capacity are owned by the regulated electric utility businesses – 5,318 MWs of generation capacity are owned by its nonregulated subsidiaries, the majority of which provides power to utilities under long-term contracts – As of September 30, 2022, 45% of owned generation capacity (operating and under construction) comes from noncarbon resources Noncarbon 45%
Slide 21 — Transforming Our Generation Portfolio
Transforming Our Generation Portfolio 21 • Berkshire Hathaway Energy’s energy mix has changed significantly since 2005 • Pro forma for the acquisitions of PacifiCorp (2006) and NV Energy (2013), noncarbon generation increased from 15% of total generation in 2005 to 42% of total generation over the twelve months ended September 30, 2022, and is expected to grow to 59% by 2030 (1) Excludes generation associated with renewable energy credits which were not retained Coal 71% Natural Gas 14% Nuclear and Other 5% Wind 1% Hydro 6% Geothermal 3% LTM 9/30/2022 Power Generation Owned and Purchased(1) 2005 Power Generation Owned and Purchased(1) Coal 31% Natural Gas 27% Nuclear and Other 3% Wind 28% Solar 4% Hydro 4% Geothermal 3% 2030 Power Generation Owned and Purchased Coal 20% Natural Gas 21% Nuclear 3% Wind 33% Solar 15% Hydro 4% Geothermal 4%
Slide 22 — Low-Cost Competitive Electric Rates
Low-Cost Competitive Electric Rates 22 (1) Source: Edison Electric Institute (Winter 2022) Total Retail Highest Average Rates ($/kWh) by State(1): Hawaii – $0.3035; Massachusetts – $0.2224; Rhode Island – $0.2017; New York - $0.1919; Connecticut – $0.1896 Company Weighted Average Retail Rate ($/kWh) U.S. National Average(1) $0.1159 Pacific Power $0.0893 23% lower than the U.S. National Average Rocky Mountain Power $0.0791 32% lower than the U.S. National Average MidAmerican Energy $0.0749 35% lower than the U.S. National Average Nevada Power $0.0977 16% lower than the U.S. National Average Sierra Pacific $0.0803 31% lower than the U.S. National Average
Slide 23 — Strong Credit Profile
Strong Credit Profile 23 (1) Moody’s/S&P/DBRS. Ratings are issuer or senior unsecured ratings unless otherwise noted (2) Refer to the appendix for the calculations of key ratios (3) Ratings are senior secured ratings (4) Credit ratios are based on U.S. GAAP financial reporting (5) Historical credit metrics are not meaningful due to acquisition and reorganization in November 2020 Credit ratios continue to support our credit ratings Credit Metrics FFO / Debt FFO Interest Coverage Debt / Total Capitalization Credit Ratings(1) Average LTM 9/30/2022 2021 2020 Average LTM 9/30/2022 2021 2020 LTM 9/30/2022 2021 2020 Berkshire Hathaway Energy(2) A3 / A- 15.2% 15.3% 15.4% 15.0% 4.6x 4.7x 4.8x 4.5x 51% 50% 53% Regulated U.S. Utilities PacifiCorp(2) (3) A1 / A+ 18.9% 19.0% 20.6% 17.2% 4.8x 4.8x 5.2x 4.5x 45% 47% 49% MidAmerican Energy(2) (3) Aa2 / A+ 24.1% 25.8% 24.3% 22.1% 6.9x 7.4x 7.2x 6.3x 44% 46% 47% Nevada Power(2) (3) A2 / A+ 24.8% 25.0% 25.5% 24.0% 5.3x 5.8x 5.5x 4.7x 47% 47% 46% Sierra Pacific Power(2) (3) A2 / A+ 19.1% 21.0% 17.6% 18.6% 5.4x 5.8x 5.3x 5.0x 40% 46% 46% Regulated Pipelines and Electric T&D Northern Natural Gas A2 / A 32.7% 28.9% 32.1% 37.0% 8.7x 8.0x 9.1x 9.0x 37% 38% 35% Eastern Energy Gas Holdings(5) Baa1 / A 19.1% 21.2% 17.1% 6.1x 6.8x 5.4x 33% 34% Eastern Gas Transmission & Storage(5) A3 / A 29.0% 33.1% 24.9% 7.4x 8.7x 6.1x 38% 38% AltaLink, L.P.(3) – / A / A 12.1% 12.1% 12.2% 12.0% 4.2x 4.2x 4.2x 4.1x 58% 58% 59% Northern Powergrid Holdings(4) Baa1 / A- 19.6% 20.9% 19.8% 17.9% 6.0x 6.7x 6.1x 5.2x 42% 41% 43% Northern Powergrid (Northeast) A3 / A Northern Powergrid (Yorkshire) A3 / A
Slide 24 — Capital Investment Plan
Capital Investment Plan 24 $8,052 $7,481 $9,743 $9,745 $9,378 $8,948 $- $1,500 $3,000 $4,500 $6,000 $7,500 $9,000 $10,500 2022 Current 2022 Prior 2023 Current 2023 Prior 2024 Current 2024 Prior ($ millions) PacifiCorp MidAmerican Funding NV Energy Northern Powergrid BHE Pipeline Group BHE Transmission BHE Renewables HomeServices and Other Capex by Type Current Plan 2022-2024 Prior Plan 2022-2024 Variance Electric Transmission $ 5,788 $ 5,906 $ (118) Electric Distribution 5,493 4,975 518 Wind Generation 5,141 5,565 (424) Solar Generation 1,224 1,898 (674) Natural Gas T&S 2,432 2,675 (243) Other 7,095 5,155 1,940 Total $ 27,173 $ 26,174 $ 999 Capex by Business Current Plan 2022-2024 Prior Plan 2022-2024 Variance PacifiCorp $ 8,903 $ 7,822 $ 1,081 MidAmerican Funding 6,670 6,874 (204) NV Energy 4,804 5,227 (423) Northern Powergrid 1,992 1,938 54 BHE Pipeline Group 3,078 3,107 (29) BHE Transmission 726 648 78 BHE Renewables 812 384 428 HomeServices and Other 188 174 14 Total $ 27,173 $ 26,174 $ 999 $8,052 $7,481 $9,743 $9,745 $9,378 $8,948 $- $1,500 $3,000 $4,500 $6,000 $7,500 $9,000 $10,500 2022 Current 2022 Prior 2023 Current 2023 Prior 2024 Current 2024 Prior ($ millions) Electric Transmission Electric Distribution Wind Generation Solar Generation Natural Gas Transmission and Storage Other
Slide 25 — Positioning Our Business to
Positioning Our Business to Create a Sustainable Energy Future
Slide 26 — We Put Our Energy Into a
We Put Our Energy Into a Sustainable Future 26 Social Working Smarter • Targeting zero incidents/accidents • Building a diverse, equitable and inclusive workforce • Supporting and engaging communities Governance Increasing Value • Keeping costs stable and affordable through disciplined management • Enhancing reliability and resiliency • Implementing process efficiencies and data analytics Environmental Delivering Cleaner • Expanding clean energy • Striving for net zero greenhouse gas emissions by 2050 • Optimizing transmission • Advancing clean transportation Enhancing the culture of sustainability within each core principle
Slide 27 — All Coal-Fueled Plants Retired by 2049
PacifiCorp MidAmerican NV Energy Year Plant MWs Plant MWs Plant MWs 2013(1) 6,081 3,340 1,073 2014 Riverside 3 (4) Reid Gardner 1-3 (300) 2015 Carbon 1 & 2 (172) Riverside 5 (2) (124) Walter Scott 1 & 2 (124) 2016 Neal 1 & 2 (390) 2017 Reid Gardner 4 (257) 2019 Naughton 3 (2) (280) Navajo (255) 2020 Cholla 4 (395) 12/31/2021 5,234 2,698 261 2023 Jim Bridger 1 & 2 (2) (713) 2025 Craig 1 (82) Valmy 1 & 2 (261) Naughton 1 & 2 (357) Colstrip 3 & 4 (148) 12/31/2025 3,934 - 2027 Dave Johnston 1-4 (745) Hayden 2 (33) 2028 Hayden 1 (44) Craig 2 (79) 12/31/2030 3,033 2036 Huntington 1 & 2 (909) 2037 Jim Bridger 3 & 4 (700) 2039 Wyodak (266) 2042 Hunter 1-3 (1,158) 12/31/2042 - All Coal-Fueled Plants Retired by 2049 27 (1) Adjusted for re-rating of coal plants between December 31, 2013, and September 30, 2022, including plants still in operation and retired (2) Removed from coal service to be converted to natural gas-fueled facilities; Riverside 5 was retired in January 2021 All coal units to be retired by 2049 • PacifiCorp will retire 22 units by 2042, NV Energy will retire 2 units by 2025 and MidAmerican will retire 6 units by 2049
Slide 28 — Industry Leader
Industry Leader in Regulated Renewable Energy 28 Source: America Clean Power Annual 2021 report - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Berkshire Hathaway Energy Xcel Energy Southern California Edison Pacific Gas & Electric Evergy Duke Energy Southern Company Dominion Energy Florida Power & Light Alliant Energy Operating Capacity Purchased (MWs) Top 20 Investor-Owned Utilities with Clean Power on the System Wind Solar Storage
Slide 29 — Supporting a Cleaner Energy Future
Q3 2022A 2024E $23.0 $27.6 $6.9 $7.8 $1.1 $1.1 $5.8 $5.8 $36.8 $42.3 Supporting a Cleaner Energy Future $42.3 Billion Renewable Investments Remaining capital to be deployed • $4.6 billion – Wind development and repowering • $0.9 billion – Solar development Wind Solar Geothermal and Other Wind Tax Equity ($ billions) 29
Slide 30 — Sustainability
• PacifiCorp’s generation portfolio transformation plan reflected in the 2021 IRP Update indicates a significant reduction in coal generation and the addition of renewables, advanced nuclear and battery storage. Highlights of the plan include: – 1,792 MWs of new wind generation by 2025, and a total of 4,137 MWs of new wind generation through 2040 – 1,869 MWs of new solar by 2025, and a total of 5,530 MWs of new solar by 2040 – 640 MWs of storage by 2025, and a total of 5,346 MWs of storage by 2040 – 500 MW NatriumTM advanced nuclear demonstration project in 2028 and 1,000 MWs from two additional advanced nuclear resources in 2038 • To finance a portion of its renewable energy development, PacifiCorp has issued $1 billion of green bonds Sustainability PacifiCorp 30 78.0% 43.3% 30.6% 16.9% 7.6% 2.4% 7.8% 17.8% 15.2% 13.0% 13.0% 10.3% 9.5% 5.2% 4.6% 4.1% 3.6% 3.4% 3.8% 3.3% 7.6% 0.9% 25.2% 40.2% 47.9% 52.9% 52.3% 3.8% 8.5% 9.4% 14.3% 19.6% 24.0% 0% 20% 40% 60% 80% 100% 2005 2023 2025 2030 2035 2040 PacifiCorp 2021 IRP Update – Forecast Generation as a Percent of Demand(1) Coal Natural Gas Hydro Nuclear Renewables (excl. Hydro) Other(2) (1) Forecast system load, pre-demand side management and net of sales (2) Includes storage, demand response, energy efficiency, existing purchases and front-office transactions
Slide 31 — Sustainability
Sustainability PacifiCorp 31 • PacifiCorp’s 2021 IRP Update projects a reduction in carbon emissions of 69% from 2005 levels by 2030, 88% by 2040 and nearly 100% by 2050 • Per PacifiCorp’s 2021 IRP, all coal plants will be retired or converted to natural gas by 2042 0% 20% 40% 60% 80% 100% 0 10 20 30 40 50 60 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 % of 2005 Base Million Tons (CO2e) PacifiCorp CO2 Emissions Trajectory PacifiCorp Emissions (Million ST CO2e) PacifiCorp 2005 Base (Million ST CO2e) % Reduction from 2005 Base
Slide 32 — Sustainability
Sustainability MidAmerican 32 • MidAmerican is the largest owner in the U.S. of rate-regulated wind capacity, with 7,192 MWs in operation or under construction. Since 2004, the company has invested approximately $14 billion in wind energy projects across Iowa • The company had retired five of its 11 coal units as of December 31, 2021, and plans to retire the remaining coal units by 2049 • To finance a portion of its renewable energy development in Iowa, the company has issued $4.4 billion of green bonds LTM 9/30/2022 Power Generation Owned and Purchased(1) Coal 78% Natural Gas 3% Nuclear 15% Wind 4% 2005 Power Generation Owned and Purchased (1) (1) Owned and purchased generation, excluding generation associated with RECs which were not retained Wind 64% Coal 23% Nuclear, Solar & Hydro 9% Natural Gas 4%
Slide 33 — Sustainability
• NV Energy’s IRP reflects the company meeting all Nevada RPS requirements (e.g., 50% by 2030) and the state’s 2050 net zero carbon emissions goal • NV Energy expects to more than double its current renewable capacity (owned and purchased) by 2025 Sustainability NV Energy 33 (1) Firm dispatchable resources represent technologies that can supply electricity reliably on demand for hours, days or weeks at a time. For the purpose of the 2021 IRP, this resource type was modeled with the characteristics of gas turbines due to the lack of sound data on proven, appropriate low-carbon alternatives. In the future, firm dispatchable resources could include the use of hydrogen as a fuel, fuel cells or biofuel combustion units (2) Excess energy represents renewable energy in excess of forecast load requirements, some of which may be mitigated through out-of-state sales or more efficient use of battery storage than modeled 51% 38% 25% 17% 13% 9% 8% 5% 2% 2% 1% 1% 1% 1% 3% 3% 3% 3% 41% 43% 59% 75% 89% 111% 2% 17% 19% 18% 15% 8% (3%) (4%) (8%) (15%) (21%) (32%) (40%) (20%) 0% 20% 40% 60% 80% 100% 120% 140% 2025 2030 2035 2040 2045 2050 NV Energy 2022 IRP - Forecast Generation as Percent of Demand Firm Dispatchable Geothermal, Hydro & Other Wind Solar Standalone & Storage Hybrid Market Excess Energy (1) (2)
Slide 34 — Decarbonization of the Balance Sheet
54% 37% 8% 1% • Berkshire Hathaway Energy is growing its renewable energy portfolio and continues to de-risk its balance sheet related to carbon-based generation assets. As of December 31, 2021, only 5% of our overall net investment in property, plant and equipment was invested in coal generation assets 66% 24% 5% 5% Electric T&D, Gas Pipelines and Other Noncarbon Generation Coal Generation Natural Gas Generation Net PP&E as of December 31, 2021 Berkshire Hathaway Energy PacifiCorp MidAmerican Energy 60% 20% 13% 7% 66% 33% 1% Nevada Power 84% 12% 3% 1% Sierra Pacific 34 Decarbonization of the Balance Sheet
Slide 35 — Energy Imbalance Market
Energy Imbalance Market Benefits Customers and the Environment 35 • The Energy Imbalance Market (EIM) is an innovative market that allows utilities across the West to access the lowest- cost energy available in near real-time, making it easy for zero-fuel-cost renewable energy to go where it is needed and reduce carbon emissions. Through September 2022, cumulative benefits totaled approximately $2.9 billion • PacifiCorp and the California ISO launched the EIM in November 2014. NV Energy joined in December 2015. Berkshire Hathaway Energy’s cumulative customer benefits through September 2022, totaled $774 million Combined Benefits: November 2014 – September 2022 Balancing Area Authority Year Joined Total ($ millions) CAISO 2014 $601.2 PacifiCorp 2014 $537.5 NV Energy 2015 $236.6 Arizona Public Service 2016 $302.0 Puget Sound Energy 2016 $91.9 Portland General Electric 2017 $176.0 Idaho Power 2018 $160.8 Powerex 2018 $35.9 BANC/SMUD 2019 $374.0 Salt River Project 2020 $130.0 Seattle City Light 2020 $30.7 LADWP 2021 $92.6 Northwestern Energy 2021 $30.4 Public Service Co of New Mexico 2021 $35.6 Turlock Irrigation District 2021 $13.6 Avista Utilities 2022 $14.4 Bonneville Power Administration 2022 $13.4 Tacoma Power 2022 $5.5 Tucson Electric Power 2022 $29.7 Total $2,912.0
Slide 36 — Advancing Transportation Electrification
Advancing Transportation Electrification 36 Targeting fast-charging corridors with 50-mile radius between locations $569 million investment to expand electric vehicle infrastructure • Investing $14 million to install direct current fast chargers across the service territory • In 2019, MidAmerican began the installation of direct current fast- charging stations at 50 sites throughout its service territory. To date, 36 sites have been completed. All sites are expected to be completed by 2023 • Will result in direct current fast-charging corridors along I-80, I-29 and U.S. Highway 20 MidAmerican Rocky Mountain Power • Investing $50 million to develop electric transportation in Utah (approved by the UPSC in December 2021) • Facilitated the installation of 2,916 Level 2 charging ports and 117 direct current fast-charging ports to date • Developed direct current fast-charging corridors along I-70 and I-80 in 2020, expanding corridors to National Parks and recreation areas • Further awarded $12 million in DOE grants to create enduring regional ecosystem and to integrate electric vehicles onto the grid NV Energy Pacific Power • Completed the investment of $15 million to implement an electric vehicle infrastructure demonstration program facilitating the installation of more than 500 Level 2 and direct current fast chargers • Received regulatory approval for NV Energy’s 3-year, $100 million Economic Recovery Transportation Electrification Plan to increase the availability of electric vehicle charging infrastructure, facilitating the installation of more than 1,800 charger ports at 100 new sites • Filed the $348 million Transportation Electrification Plan as a part of the Distributed Resource Plan for NV Energy to accelerate transportation electrification with the potential for additional electric vehicle infrastructure in the next 10 years. Accelerates transportation electrification for residential, multifamily, workplace, fleet, public and shared fleet depots, transit, school bus vehicle to grid trials, and managed charging programs to facilitate grid integration • Investing $30 million to support electric transportation infrastructure as a result of Oregon HB 2165, passed in May 2021 • Newly approved pilot programs in Oregon will facilitate charging for residential and commercial customers • Ongoing initiatives include Oregon Clean Fuels Program investments and the West Coast Clean Transit Corridor • California Air Resources Board approved the Advanced Clean Cars II rule that by 2035, 100% of new cars and light trucks sold in California will be zero-emission vehicles including plug-in hybrid EVs • Oregon developed goals for zero-emission vehicles to be 90% of new vehicles sold by 2035 • Washington set targets for 100% of all state fleet light-duty vehicles to be electric by 2035 and medium and heavy-duty vehicles to be electric by 2040
Slide 37 — Social – Advancing Our
Social – Advancing Our Diversity, Equity and Inclusion Framework To continue building an inclusive work environment that celebrates the differences of our employees, ensures everyone feels valued, respected and empowered, and enhances the connections we have to the communities in which we live and work S T R AT E G I C PA RT N E R S H I P S Adopt strategic partnerships with the community, regulators, labor unions and diverse suppliers C W O R K F O R C E Attract, engage, promote and retain a diverse workforce B I N C L U S I V E C U LT U R E Champion an inclusive culture A C O M M U N I C AT I O N S Promote our commitment through internal and external communications D A C C O U N TA B I L I T Y Engaged and Accountable Leadership E 37 FIVE OBJECTIVES VISION:
Slide 38 — Social – Our Customers and Communities
Social – Our Customers and Communities 38 Affordable, Clean and Reliable Energy We focus on making sure we deliver exceptional service while keeping costs low. Our customers’ energy rates are well below the U.S. average Partnering in Our Communities Berkshire Hathaway Energy has a long history of supporting our communities with our time and talent, as well as making an impact through community giving In 2021, our businesses and employees logged more than 34,000 hours in volunteer time and our community contributions included approximately $24.5 million to organizations throughout the communities we serve As part of our supplier diversity program, we are partnering with organizations certified as diverse and enhancing the diversity and sustainability of our supply chain, expanding our reach and establishing connections with businesses we may not have previously partnered with – these partnerships bring benefits to our customers, communities and businesses We are a founding partner of the American Council on Renewable Energy’s Accelerate program, helping improve diversity, equity and inclusion within the renewable energy sector and reduce barriers for participants from underrepresented groups Customer Service We are focused on delivering reliability, dependability, low prices and exceptional service to our customers. We are committed to providing innovative solutions that our customers want and need.
Slide 39 — Social – Our Employees
Social – Our Employees 39 Safe and Secure Despite challenging working conditions, Berkshire Hathaway Energy achieved a safety incident rate of 0.40 for the nine months ended September 2022 Inclusive Environment We expanded our employee resource groups in 2022 with the addition of InspirAsian to serve as a resource for our Asian and Pacific Islander employees and allies and Our Familia, a resource for Latino, Latina and Latinx employees and allies; they join Black Employees and Allies United To Inspire Equity (BEAUTIE) and Pride Connection, expanding our existing employee resource groups focused on gender, sustainability and supporting veterans and their families We supported the Capital City Pride event in Iowa during 2022 and held a professional development summit surrounding Pride events Wellbeing In 2022, we enhanced our policies that support employees and their families with new flexible work arrangements, expanded paid leave, increased education reimbursement benefits and enriched our 401(k) program Employees are encouraged to exercise their right to vote and are provided paid time off to do so Employee Commitment We equip employees with the resources and support they need to be successful. We encourage teamwork and provide a safe, rewarding, equitable and inclusive work environment. We make no compromise when it comes to safety and security. Top 10 Military Friendly Employer
Slide 40 — Governance
Culture and Values • Berkshire Hathaway Energy’s businesses are managed with a long- term view of reducing our impact on the environment • Our businesses participate in and support community-based and customer-oriented organizations; encourage volunteerism and integrate environmental and social goals with integrity and consistent with business ethics and governance controls • Our businesses develop strategic working relationships with trusted partners within the communities in which we do business, and we serve to reinforce our sustainability message Data Protection • We are vigilant in managing employee and customer data to protect against the release of personal information, creating strong layers of defense against cyber and physical security incidents and using internationally recognized cybersecurity frameworks to strengthen these efforts Governance 40 Transparency and Reporting • We are transparent in our operational results and voluntarily report key indicators related to our emissions data, resource mix, investments in technology, water resources, waste products, employee count and safety performance
Slide 41 — Business Update
Business Update
Slide 42 — PacifiCorp
PacifiCorp 42 9/30/2022 3/31/2006 Coal 45% 72% Natural Gas 26% 13% Wind 19% 0% Hydro and other 10% 15% Owned generation capacity by fuel type: • Fully regulated subsidiary operating in six-state service territory: Utah, Idaho, Wyoming, Oregon, Washington and California, covering 141,500 square miles of service territory • 4,800 employees, 2 million retail electric customers • 17,000 transmission line miles, 65,800 miles of distribution lines and 900 substations • 11,711 MWs owned generation capacity as of September 30, 2022 – Full exit from coal by 2042 – By 2030, 2021 IRP Update forecasts 16.9% of generation as percent of demand from coal – PacifiCorp’s 2021 IRP Update projects a reduction of carbon emissions by 69% from 2005 levels by 2030, 88% by 2040 and nearly 100% by 2050 0% 20% 40% 60% 80% 100% 0 10 20 30 40 50 60 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 % of 2005 Base Million Tons (CO2e) PacifiCorp CO2 Emissions Trajectory PacifiCorp Emissions (Million ST CO2e) PacifiCorp 2005 Base (Million ST CO2e) % Reduction from 2005 Base
Slide 43 — PacifiCorp
• Actual retail load for the nine months ended September 30, 2022, was 42,888 GWh; a 335 GWh (0.8%) increase compared with the same time period last year, primarily due to favorable weather and an increase in residential and commercial customers, partially offset by unfavorable customer usage primarily in residential, industrial and irrigation classes • Energy Gateway transmission projects are on track – Certificates of Public Convenience and Necessity (CPCNs) for construction of Energy Gateway transmission lines were granted in Utah on April 8, 2022, and Wyoming on May 10, 2022 – In May 2022, the Bureau of Land Management (BLM) issued final approval for the 416-mile Energy Gateway South transmission line (Aeolus – Mona); groundbreaking took place June 27, 2022 – On September 9, 2022, the BLM issued final construction approval for the 59-mile Energy Gateway West project (Windstar – Shirley Basin); construction commenced September 26, 2022 – Negotiations with partners are progressing favorably on the Boardman-Hemingway 290-mile, 500-kV transmission project to support 2026 in-service; received the Oregon Energy Facilities Siting Council site certificate September 27, 2022. The Oregon and Idaho CPCNs and the notice to proceed from the BLM are all expected to be received in second quarter 2023 prior to start of construction • PacifiCorp received approval to acquire and repower the Foote Creek II-IV and Rock River I wind projects from the Wyoming Public Service Commission on April 26, 2022, and September 6, 2022, respectively • The final environmental impact statement was issued August 26, 2022, as part of the Lower Klamath Project dam removal effort. A license surrender order is expected by year-end, with property and license transfer to happen within 30 days thereafter. Dam removal is expected to begin mid-2023 and be completed in 2024 • 2022 IRA provides opportunity to lower the cost of new resources required to achieve emission reduction goals PacifiCorp Business Update 43
Slide 44 — PacifiCorp
44 • Pacific Power – PacifiCorp reached settlement with parties in its rate case and net power cost cases in Oregon, which will result in customer price increases reflecting higher costs for wildfire and vegetation management efforts, inflationary pressure and increased actual net power costs. PacifiCorp also agreed to a general rate case stay-out provision, under which it agreed not to file a general rate case with rates effective any earlier than January 1, 2025 – A new voluntary renewable energy tariff was filed in Oregon to address accelerating the addition of incremental renewable generation funded by large customers – PacifiCorp received a decision in Washington supporting an increased forecast of net power costs in its power costs-only rate case – PacifiCorp filed a general rate case in California on May 5, 2022, requesting a $28 million increase, or 25.7%, reflecting higher costs for wildfire and vegetation management efforts; a hearing is scheduled for February 2023 • Rocky Mountain Power – Rate case outcomes in Utah and Wyoming in 2021 resulted in no near-term customer bill increases while achieving full recovery of all investments, including Energy Vision 2020 and wildfire mitigation costs – In Idaho, new rates went into effect January 1, 2022, as a result of a rate case stipulation resulting in an $8 million increase. This was the first general rate case in Idaho in 10 years • PacifiCorp continued negotiations on a new interjurisdictional cost allocation methodology • Energy cost adjustment mechanisms exist in all six states where PacifiCorp has operations PacifiCorp Regulatory Update
Slide 45 — PacifiCorp
PacifiCorp Energy Gateway Transmission Projects 45 Represents plans to build an estimated 2,365 miles of new high-voltage transmission lines with $11 billion of investment, including AFUDC and network upgrades Boardman – Hemingway – Joint project with Idaho Power and the Bonneville Power Administration – 290 miles of 500-kV; plan cost of $843 million (PacifiCorp’s share); planned in-service 2026 – Oregon Energy Facility Siting Council site certificate received September 27, 2022 Gateway Segments already placed in-service total 575 miles with an approximate cost of $2.4 billion • Aeolus – Mona – 416 miles of 500-kV; plan cost of $2.1 billion with planned in-service 2024 – Allows interconnection of an additional 1,920 MW of renewable generation resources in eastern Wyoming deliverable across PacifiCorp’s system • Windstar – Shirley Basin – 57 miles of new build & 58 miles of rebuild of 230-kV; plan cost of $287 million with planned in-service 2024 – Allows interconnection of 765 MW of renewable generation resources in the Dave Johnston / Windstar area near Glenrock, Wyoming (included in the total 1,920 MW for eastern Wyoming) • Oquirrh – Terminal – 14 miles, plan cost of $35 million; planned in-service 2024 • Limber – Terminal – 40 miles, plan cost of $323 million; planned in-service 2026 • Central Reinforcements – 60 miles, plan cost of $460 million; planned in-service 2027 • Anticline – Populus – 195 miles, plan cost of $1.1 billion; planned in-service 2028 • Anticline – Shirley Basin – 155 miles, plan cost of $759 million; planned in-service 2028 • Populus – Hemingway – 505 miles, plan cost of $2.4 billion; planned in-service 2030 Sigurd Red Butte Boardman Hemingway Cedar Hill Borah Populus Ben Lomond Terminal Oquirrh Mona/ Clover Aeolus Windstar Bridger/ Anticline Midpoint Wallula McNary Shirley Basin Existing Lines Future Lines Limber
Slide 46 — PacifiCorp
• A product of the 2019 IRP, PacifiCorp issued the 2020 All Source Request for Proposals. The final shortlist for this resource solicitation includes 1,792 MWs of new wind and 1,401 MWs of new solar. Solar resources are paired with 498 MWs of battery storage and further includes 200 MWs of stand-alone storage. In the face of inflationary and supply-chain challenges, PacifiCorp continues to negotiate with parties that bid projects selected to the final shortlist • PacifiCorp’s generation portfolio transformation plan is reflected in the 2021 IRP, filed with state commissions in September 2021, and reflects a significant reduction in coal generation while adding transmission, renewables, storage and nuclear. A limited update was filed March 31, 2022, with no material shifts in the preferred portfolio and action plan • The 2022 All Source Request for Proposals (a product of the 2021 IRP) was issued to the market April 29, 2022; a final shortlist is expected in May 2023 • Cumulative planned retirements of coal generation represent 847 MWs through 2022, 1,560 MWs through 2024 and 4,923 MWs through 2040, with full exit from coal by 2042 • PacifiCorp and Wyoming executed a consent decree February 14, 2022, to allow for continued operation of Jim Bridger Units 1 and 2 on coal until conversion to gas operation in 2024. A permit application was submitted in April 2022 for a revised air permit and state implementation plan to allow for the gas conversions • PacifiCorp is working with TerraPower, a nuclear innovation company, to construct an advanced nuclear reactor demonstration project adjacent to PacifiCorp’s Naughton coal power plant in Kemmerer, Wyoming • PacifiCorp filed 11 preliminary permit applications with FERC in October 2021 to preserve licensing priority for pumped hydro storage at promising project sites while feasibility studies advance; nine preliminary permits have been issued • PacifiCorp is evaluating carbon capture, utilization and storage options for its coal plants in Wyoming PacifiCorp Portfolio Transformation 46
Slide 47 — PacifiCorp
47 PacifiCorp Wildfire Update • 2020 Wildfires – 60 civil actions have been filed in Oregon and northern California, including a putative class action complaint in Oregon, on behalf of citizens and businesses who suffered damages from wildfires allegedly involving PacifiCorp’s equipment. Additionally, multiple insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the lawsuits – As of September 30, 2022, PacifiCorp estimates the probable loss to be $200 million, net of expected insurance recoveries – PacifiCorp’s receivable for expected insurance recoveries was $277 million as of September 30, 2022 – To the extent losses beyond the amounts accrued are incurred, additional insurance coverage is expected to be available to cover at least a portion of the losses • 2022 McKinney Wildfire – The McKinney Fire ignited July 29, 2022, in the Klamath National Forest in western Siskiyou County, California. According to public reporting, the McKinney Fire burned 60,138 acres, caused 12 injuries and four fatalities, and destroyed at least 185 structures. The cause remains under investigation by the U.S. Forest Service – Due to the preliminary nature of the investigation, PacifiCorp does not believe a loss is probable and therefore has not accrued any loss at this time. While the loss is not probable, PacifiCorp estimates the potential loss, excluding losses for natural resource damages, to be $31 million, net of expected insurance recoveries. PacifiCorp has insurance available and estimates insurance recoveries to be $103 million to cover potential losses
Slide 48 — PacifiCorp
PacifiCorp Wildfire Mitigation Plans and Mechanisms 48 • The California Public Utilities Commission conditionally approved PacifiCorp’s 2021 Wildfire Mitigation Plan Update in July 2021. PacifiCorp’s 2022 Wildfire Mitigation Plan Update, filed May 6, 2022, focused on describing advancements in risk modeling, risk spend efficiency analysis and efforts to reduce the impacts of proactive de-energization. California tracks wildfire mitigation activities costs through a Fire Risk Mitigation Memorandum Account and a Wildfire Mitigation Plan Memorandum Account, the latter addressing current costs specifically associated with the approved wildfire mitigation plan • As required by Oregon Senate Bill 762 enacted in 2021, PacifiCorp filed its first wildfire protection plan with the Oregon Public Utility Commission (OPUC) on December 30, 2021; the plan was approved in April 2022. In accordance with the new law, PacifiCorp also filed an application in July 2022 for approval of an automatic adjustment clause for recovery of incremental costs and capital investments associated with the wildfire mitigation plan, which the OPUC suspended for a period of nine months to allow time to investigate the proceeding • PacifiCorp filed with the OPUC for recovery of 2021 costs under the Wildfire Mitigation Vegetation Management Mechanism authorized as part of the company’s 2021 general rate case in Oregon. The filing requests recovery of the full incremental costs incurred, $14.3 million, due to meeting the mechanism’s thresholds for improved performance , with rates to be effective November 5, 2022. Additionally, PacifiCorp filed a settlement agreement in the 2022 general rate case that includes recovery of forecast vegetation management and wildfire mitigation costs in base rates and favorable modifications to the Wildfire Mitigation and Vegetation Management Mechanism for recovery of incremental costs from 2022 through 2024 – The OPUC concluded a multiyear permanent rulemaking process in September 2022 that addresses wildfire risk analysis, public safety power shutoffs, community engagement, vegetation management and asset inspections and wildfire mitigation plan requirements • PacifiCorp submitted its second annual wildland fire cost and compliance report in Utah, which describes actions taken by PacifiCorp to execute the Wildland Fire Protection Plan approved by the Utah Public Service Commission in 2020, actual costs incurred to execute the plan and updates to forecast costs for 2022 through 2026; acknowledgment that the company’s report complied with the requirements of the rules was issued by the commission in July 2022. Utah has a Wildland Fire Mitigation Balancing Account to recover operating expenses and capital expenditures incurred to implement PacifiCorp’s Utah Wildland Fire Protection Plan incremental to those included in base rates
Slide 49 — MidAmerican
MidAmerican 49 • Headquartered in Des Moines, Iowa • 3,500 employees • 1.6 million electric and natural gas customers in four Midwestern states • 11,795 MWs (1) of owned generation capacity • Owned generation capacity by fuel type: 9/30/2022 12/31/2000 Wind 62% 0% Coal 23% 70% Natural Gas 11% 19% Nuclear and other 4% 11% (1) Net MWs owned and in operation as of September 30, 2022 IOWA MidAmerican Energy service area Major generating facilities Operational wind farms Operational solar farms
Slide 50 — MidAmerican
50 • Actual retail load for nine months ended September 30, 2022, was 22,176 GWh; an 846 GWh (4.0%) increase compared with the same time period last year, primarily due to improved industrial sales, the favorable impacts of weather and customer growth • MidAmerican’s electric rates – 8th lowest in the country along with a high renewable concentration – have been a significant factor in attracting retail load, particularly from data centers and other large customers; sales to MidAmerican’s largest customers on individual rates increased 6.4% for the nine months ended September 30, 2022, over the same period in 2021 • MidAmerican’s goal is to provide 100% renewable energy to its Iowa customers through its GreenAdvantage® program. In 2021, approximately 88.5% of the electricity provided by MidAmerican to retail customers in Iowa came from renewable energy on an annual basis • In July 2022, MidAmerican completed the 100 MW Holliday Creek solar array, bringing the total solar projects placed in-service in 2022 to 141 MWs • In October 2021, the Iowa Utilities Board (IUB) approved the extension for 2021-2023 of a depreciation deferral regulatory mechanism originally approved in MidAmerican’s 2013 rate case that will result in approximately $50 million lower annual depreciation expense in those years • In January 2022, MidAmerican filed an application with the IUB for advance ratemaking principles for Wind PRIME. If approved, MidAmerican expects to proceed with Wind PRIME, which consists of up to 2,042 MWs of new wind generation and up to 50 MWs of solar generation. If all of Wind PRIME generation is constructed, MidAmerican will own over 9,300 MWs of wind generation and nearly 200 MWs of solar generation. Wind PRIME is projected to allow MidAmerican to generate renewable energy greater than or equal to all of its Iowa retail customer’s annual energy needs. Procedural hearings with the IUB are expected to begin in February 2023 MidAmerican Business Update
Slide 51 — MidAmerican
51 Project Estimated Cost Capacity Planned Completion Additional Notes Wind Repowering $819 million 745 MWs (original capacity) Expected completion by Q4 2022 Qualifies for 100% of eligible PTC rate Wind Prime $3.9 billion 2,092 MWs (2,042 MWs wind; 50 MWs solar) Expected completion by Q4 2024 Qualifies for 100% of eligible PTC rate (wind and solar) MidAmerican Renewable Development • As of September 2022, MidAmerican has invested approximately $14 billion in wind energy projects across Iowa
Slide 52 — NV Energy
NV Energy 52 • Headquartered in Las Vegas, Nevada, with territory throughout Nevada • 2,400 employees • 1.4 million electric and 179,000 gas customers • Service to 90% of Nevada’s population • 6,127 MWs(1) of owned generation capacity (93% natural gas, 4% coal, 3% renewable/other) (1) Net MW owned in operation and under construction as of September 30, 2022 • Provides electric and gas services to northern Nevada • 370,000 electric customers and 179,000 gas customers • 1,382 MWs(1) of owned generation capacity • Provides electric service to southern Nevada • 1 million electric customers • 4,745 MWs(1) of owned generation capacity Nevada Power Sierra Pacific
Slide 53 — Nevada Power – Sierra Pacific
53 Nevada Power – Sierra Pacific Legal Merger Sierra Electric Division NV Energy, Inc. Nevada Power Co. Sierra Pacific Power Co. Sierra Gas Division Before Gas Division NV Energy, Inc. Nevada Power Co. Electric Division After Southern Nevada Northern Nevada • Nevada Power Company (Nevada Power) and Sierra Pacific Power Company (Sierra Pacific) filed an application March 21, 2022, asking the Public Utilities Commission of Nevada (PUCN) for approval of a legal merger of Sierra Pacific into Nevada Power to become a single operating company – The successor company will continue as Nevada Power Company d/b/a NV Energy – Rate jurisdictions and customer tariffs will continue to remain separate following the merger – The company expects PUCN approval in the first half of 2023 – The proposed transaction will have no adverse effect on existing bondholders. Following the completion of the merger, all new debt offerings will be issued under the existing Nevada Power indenture • The merger is driven by statewide capital projects (transmission, renewables and wildfire prevention) and increasing energy costs. The merger will: – Create a larger, more diversified company with a stronger balance sheet – Strengthen the credit quality of the combined entity – Enhance the combined entities’ access to capital and better position the company to more efficiently fund the capital investment needed to fulfill Nevada’s energy policy and renewable energy objectives
Slide 54 — NV Energy
• Retail load growth – Nevada Power: Actual retail load for nine months ended September 30, 2022, was 18,728 GWh; a 153 GWh (0.8%) increase compared with the same time period last year, primarily due to increased large customer usage relative to the same period in 2021 – Sierra Pacific: Actual retail load for nine months ended September 30, 2022, was 8,693 GWh; a 189 GWh (2.2%) increase compared with the same time period last year, primarily due to increased distribution only service usage relative to the same period in 2021 • In June 2022, Sierra Pacific filed its triennial general rate case seeking an $88.3 million increase to base electric rates, updated to a $77.2 million increase to reflect actual financial results through May 31, 2022. Hearings are scheduled for completion in November 2022, with a decision expected by December 31, 2022 • In June 2023, Nevada Power will file its triennial general rate case • Integrated Resource Plan amendments – A third amendment was filed in September 2022 seeking approval of, among other items, the state’s first Transportation Electrification Plan required to be filed by Senate Bill 448 and proposing a $348.5 million budget to be spent over the next 10 years for the deployment of charging ports, grid integration, program management and other related activities – Fourth amendment expected to be filed in November 2022 seeking approval for additional renewable supply resources 54 NV Energy Business Update
Slide 55 — NV Energy
55 NV Energy Greenlink Nevada Transmission Project • Greenlink West – Fort Churchill substation to Northwest substation 525 kV – Northwest substation to Harry Allen substation 525 kV • Greenlink North – Fort Churchill substation to Robinson Summit substation 525 kV • Common Ties – Fort Churchill 525, 345, 230 and 120-kV substation expansion – Fort Churchill substation to Mira Loma substation 345 kV – Fort Churchill substation to Comstock Meadows substation 1 345 kV – Fort Churchill substation to Comstock Meadows substation 2 345 kV • Benefits for customers and the state of Nevada – Creates access to resource-rich renewable energy zones containing over 5,000 MWs of renewable resources that could not previously be developed for lack of necessary transmission infrastructure – Facilitates ability to meet Nevada’s renewable development and carbon-reduction goals – Positions Nevada to benefit from renewable energy when future regional transmission projects interconnect at Robinson Summit substation – Strengthens electric reliability for Nevada – Aligns with long-term statewide economic growth both in northern and southern Nevada – Positions Nevada as energy leader in Western U.S. • Combined expected cost of approximately $2.5 billion Greenlink Nevada Existing Lines Future Lines
Slide 56 — NV Energy
NV Energy Natural Disaster Risk Mitigation 56 • NV Energy has a recovery mechanism for costs associated with natural disaster risk mitigation and catastrophic events – Costs are deferred into a regulatory asset with prudency review and recovery the following year – One statewide rate for most program costs and capital expenditures are recovered in the jurisdiction placed • Natural disaster risk – The natural disaster mitigation plan addresses high wind and thunderstorm monsoonal risk experienced in southern Nevada, as well as winter storm risk in northern Nevada • Actions taken – Vegetation management expedited to achieve four-year vegetation management cycle in key areas – Detailed wildfire safety inspections completed in elevated areas (more than 45,000 poles) – Deployed wildfire detection cameras and 30 weather stations to improve wildfire detecting and forecasting capability – Public safety outage management procedures implemented • Next Steps – Execute natural disaster protection plan and seek regulatory cost recovery of plan expenses – Execute seven key areas of risk mitigation: risk-based approach and analytics, operational practices, inspections and corrections, system hardening, vegetation management, situational awareness and public safety outage management – Enhance the public safety outage management program to better identify fire weather risks and improve coordination with first responders, emergency managers and the public
Slide 57 — Northern Powergrid
Leeds Edinburgh Middlesbrough Newcastle Upon Tyne Sheffield York Northeast Yorkshire • 3.9 million end-users in northern England • 2,600 employees • Approximately 61,000 miles of distribution lines • Approximately 63% of distribution revenue from residential and commercial customers through September 30, 2022 • Distribution revenue (£ millions): 57 Customer Type 9 Mo Ended 9/30/2022 % of total 9 Mo Ended 9/30/2021 % of total Residential £329 52% £268 50% Commercial 72 11% 61 11% Industrial 230 36% 205 38% Other 4 1% 4 1% Total £634 100% £538 100% Northern Powergrid
Slide 58 — Northern Powergrid
• Ofgem published its Draft Determination for the RIIO-ED2 price control for the 2023-2028 period June 28, 2022. Final Determination is expected in December 2022 • Much of the financial framework was largely shaped by the 2021 Competition and Markets Authority (CMA) appeals on the transmission and gas distribution price controls, which all affected network companies appealed – The CMA’s final decisions were in favor of Ofgem in relation to the base allowed equity returns but clearly signaled that Ofgem must be much less prone to improvising elements of their decision that are not evidence based – Ofgem set the RIIO-ED2 return on equity at 4.75% (plus the consumer price index including post-tax housing costs, CPIH) assuming 60% leverage; approximately 140 basis points lower than the comparable ED1 return – This is an increase on Ofgem’s previous position of 10 basis points and is broadly in line with the 4.73% plus CPIH at 60% leverage determined by the CMA in its decision on the appeals by water companies • Ofgem has confirmed that the fundamental approaches taken to other key financial elements of the price control package will remain unaltered • A major focus has been on cost allowances, which were expected to increase in support of the U.K. government’s decarbonization policies – Ofgem set total expenditures allowances in the Draft Determinations to be 11% higher than ED1 average levels, but 17% lower than Northern Powergrid’s submitted business plan – Ofgem intends to use a complex suite of uncertainty mechanisms to fund expenditure above the baseline level, including higher decarbonization scenarios Northern Powergrid RIIO-ED2 Price Control Update 58
Slide 59 — Northern Powergrid
Northern Powergrid Growth Opportunities 59 • RIIO-ED2 – Northern Powergrid estimates a more ambitious decarbonization pathway with a 30-40% increase in investment to support growth in electricity demand is required to achieve the U.K. government’s goals – New regulatory obligation to establish a Distribution System Operation business unit supporting net zero • Smart Meters – The smart meter rental business has been a success since its initial launch in April 2014 – Contracts secured to deploy 3.7 million meters by 2024, gross capital deployment of over £600 million – Through December 31, 2021, £490 million of capital has been deployed – The business has established a solid foothold in its sector and will continue to pursue further opportunities in this competitive market
Slide 60 — BHE Pipeline Group
60 BHE Pipeline Group Transportation Capacity 21.1 Bcf Working Gas Storage Capacity 516 Bcf Miles of Pipe Operated 21,100 miles Total Compression 2.1 million HP
Slide 61 — BHE Pipeline Group
BHE Pipeline Group Rate Case Updates 61 • Eastern Gas Transmission and Storage (EGTS) – In June 2022, EGTS reached an agreement in principle with the related parties from its September 2021 Section 4 filing – Final settlement agreement filed with FERC on September 30, 2022. With the agreement, storage and transportation general system rates would increase by 47% and 46%, respectively, while remaining competitive among peers in the region • EGTS’ settled transportation rates are 25% lower than average rates of regional peers • EGTS’ settled storage rates are 4% lower than average rates of regional peers while also maintaining significant capacity throughout the northeast with assets strategically located across a variety of geographical regions – Under the terms of the settlement agreement, EGTS’ rates result in an increase to annual firm transportation and storage revenues of approximately $160 million and a decrease in annual depreciation expense of approximately $30 million compared to the rates in effect prior to April 1, 2022 • Northern Natural Gas filed a general Section 4 rate case July 1, 2022 – The last Section 4 filing was settled in 2020 – Rate increases filed of 121% for market area transportation, 44% for field area transportation and 53% for storage – Key factors reflected in the filing: • Rate base of $4.1 billion, increase of $1.1 billion since last Section 4 filing in 2019 • Annual cost of service of $1.3 billion • Significant asset modernization and maintenance capital investment since last rate case of $1.6 billion • Return on equity 14.05%, cost of debt 4.15%, capital structure of 63.61% equity
Slide 62 — BHE GT&S
62 BHE GT&S • Headquartered in Richmond, Virginia • 1,700 employees • 5,400 miles of operational natural gas transmission, storage and gathering pipelines • Approximately 12.6 Bcf per day of transportation design capacity and total operating storage design capacity of 420 Bcf, of which 306 Bcf is company-owned working storage capacity • 96% of transportation and storage revenue (excluding Cove Point LNG revenue) through September 30, 2022, was contracted based on fixed amounts (demand charges) that are not dependent on the volumes transported – Eastern Gas Transmission and Storage’s transportation and storage contracts have a weighted average remaining contract term of five years and four years, respectively – Carolina Gas Transmission’s transportation contracts have a weighted average contract term of nine years • Eastern Gas Transmission and Storage ranked third among mega-pipelines in the 2022 Mastio & Company customer satisfaction survey • Carolina Gas Transmission ranked third among interstate pipelines in the 2022 Mastio & Company customer satisfaction survey • Includes Cove Point LNG, an import and export liquification facility with storage capacity of approximately 14.6 Bcf- equivalent with a pipeline connecting the facility to upstream pipelines – LNG export take or pay tolling contracts with two international investment-grade utility offtake customers (approximately 90% annual revenue with a 16-year remaining contract life) – No direct commodity exposure Cove Point LNG, LP (25%) Pipeline LNG Terminal Eastern Gas Transmission and Storage, Inc. Pipeline Storage Facility Carolina Gas Transmission, LLC Iroquois Gas Transmission System L.P. (50%) Modular LNG Holdings, Inc. Utica Shale Marcellus Shale
Slide 63 — Northern Natural Gas
• Headquartered in Omaha, Nebraska • 930 employees • 14,300-mile interstate natural gas transmission pipeline system • 6.3 Bcf per day of market area design capacity; 1.7 Bcf per day field area capacity to demarcation and 1.4 Bcf per day of Permian area capacity • More than 95 Bcf of working gas capacity in five storage facilities • 94% of transportation and storage revenue through September 30, 2022, is contracted based on fixed amounts (demand charges) that are not dependent on the volumes transported − Market Area transportation contracts have a weighted average contract term of six years − Storage contracts have a weighted average contract term of five years • Increased the integrity and reliability of the pipeline • Ranked No. 1 among mega-pipelines and No. 2 among interstate pipelines in the 2022 Mastio & Company customer satisfaction survey Northern Natural Gas 63
Slide 64 — Kern River
• 1,700-mile interstate natural gas transmission pipeline system • Design capacity of 2.2 million Dth per day of natural gas • Ranked No.1 among 32 interstate pipelines in the 2022 Mastio & Company customer satisfaction survey • Delivered nearly 25%(1) of California’s natural gas demand in 2021 • 81% of revenue through September 30, 2022, is based on demand charges • Contracted capacity has a weighted average contract term of nearly seven years • 100% equity financed (no debt) 64 CALIFORNIA NEVADA ARIZONA UTAH WYOMING (1) 2022 California Gas Report Kern River
Slide 65 — BHE Transmission
• BHE Transmission (BHET) owns approximately 8,300 miles of transmission lines and 308 substations (excluding joint ventures), and has total assets of $8.8 billion as of September 30, 2022 • 700 employees • AltaLink owns and operates regulated electricity transmission facilities in the province of Alberta – Supplies electricity to approximately 85% of Alberta’s population – No volume or commodity price exposure – Revenue from AA- rated Alberta Electric System Operator (AESO) – Mid-year 2022 forecast rate base of C$7.5 billion and CWIP of C$132 million as per approved 2022-2023 General Tariff Application (GTA) • BHE US Transmission (BHE UST) is engaged in various joint ventures to develop, own and operate transmission assets – BHE UST owns a 50% interest in Electric Transmission Texas (ETT). ETT owns and operates transmission assets in the Electric Reliability Council of Texas, with total assets of $3.4 billion as of September 30, 2022 – BHE UST owns a 25% interest in Prairie Wind Transmission, LLC in Kansas with total assets of $136 million as of September 30, 2022 BHE Transmission 65 • BHE Transmission executed a purchase sale agreement with Morgan Stanley to purchase the NaturEner USA, LLC business which consists of three windfarms in Montana with total production of 399 MWs and 300 MWs of long-term (50+) years northbound transmission rights on Montana Alberta Tie Line (MATL) beginning in 2026. The transaction closed in November 2022
Slide 66 — AltaLink
AltaLink Regulatory Update 66 • AESO Fortis Customer Contribution Decision – In November 2020, the Alberta Utilities Commission (AUC) rescinded its earlier findings that directed FortisAlberta to transfer approximately C$375 million of unamortized customer contributions on transmission assets owned by AltaLink to AltaLink – In April 2021, the AUC ruled (i) the current policy is legal; (ii) FortisAlberta can keep its existing investment and earn a return on that investment; and (iii) it is not in the public interest for either distribution facility owners or transmission facility owners to earn on customer contributions on a go-forward basis – AltaLink filed applications with the Alberta Court of Appeal for permission to appeal on the basis that the current policy is contrary to legislation and the ability of the AUC to deny a return on an investment that is required by a utility to serve its customers – In January 2022, the court granted permission to appeal on all the issues raised by the applicants, including AltaLink. The appeal is scheduled to be heard in February 2023 • 2023+ Generic Cost of Capital (GCOC) – two stage process – In January 2022, the AUC initiated a two-stage GCOC proceeding. The first stage will determine the cost of capital parameters for 2023 and the second stage will consider returning to a formula-based approach to establish cost of capital adjustments, commencing in 2024 – In March 2022, the AUC issued a decision approving the extension of the 2022 return on equity of 8.5% and deemed equity ratio of 37% for 2023 on a final basis, recognizing uncertainty and continued volatility of the financial markets due to the COVID-19 pandemic – The second stage to establish a formula-based approach for cost of capital is expected to conclude in second quarter 2023 • 2022-2023 GTA and 2020 Deferral Account Application – In January 2022, the AUC issued its decision for AltaLink’s 2022-2023 GTA and 2020 direct assigned capital deferral account reconciliation. The commission’s directives result in a net increase of C$89 million to AltaLink’s two-year transmission tariff, from C$1,647 million to C$1,736 million • 99.1% of operating expenses were approved as filed • Critical capital projects regarding Wildfire Risk Mitigation and Information Technology Cyber Protection and Physical Risk Security were approved • Capital Replacement and Upgrade capital projects of C$332 million were approved (out of a requested C$407 million). The AUC denied certain reliability project expenditures deemed to have marginal benefits as well as the adoption of cloud-based computing capital expenditures • The AUC deferred assessing prudency on approximately C$99 million of actual salvage related costs incurred during the 2019-2021 period versus those forecast over the same period until it receives further information in AltaLink’s next GTA – The 2020 deferral account was approved as filed
Slide 67 — AltaLink, L.P.
AltaLink, L.P. Growth Opportunities 67 Alberta Electric System Operator base case 10-year plan forecasts $1.5 billion for AltaLink Project Cost (C$ millions) Time Needs Identification Document-Approved 1. Rycroft SVC $40 2023 2. Provost – Edgerton, Nilrem – Vermillion $293 2025 - 2027 3. Central East Transfer-Out $310 2025 - 2027 Near-Term 4. Vauxhall* $15 2024 5a. City of Edmonton $120 2025 - 2029 6. Southeast Development 240 kV* $450 2028 - 2029 7. Lethbridge $40 2028 - 2029 Medium-Term 5b. City of Edmonton $200 2042 8. MATL B2B N/A 2030 - 2034 9. AB-BC Intertie Restoration* $100 2030 - 2034 10. Chapel Rock – Pincher Creek $400 2030 - 2034 11. Sheerness $35 2030 - 2034 12. Grand Prairie $120 2030 - 2034 Long-Term 13. Northeast 240 kV $60 2037 - 2042
Slide 68 — BHE Renewables
BHE Renewables 68 Location Installed PPA Expiration Power Purchaser Net Capacity (MWs) Net Owned Capacity (MWs)(1) SOLAR Solar Star I & II CA 2013-2015 2035 SCE 586 586 Topaz CA 2013-2014 2039 PG&E 550 550 Agua Caliente AZ 2012-2013 2039 PG&E 290 142 Alamo 6 TX 2017 2042 CPS 110 110 Community Solar Gardens MN 2016-2018 Various Various 98 98 Pearl TX 2017 2042 CPS 50 50 1,684 1,536 WIND Grande Prairie NE 2016 2036 OPPD 400 400 Pinyon Pines I & II CA 2012 2035 SCE 300 300 Jumbo Road TX 2015 2033 AE 300 300 Santa Rita TX 2018 2038 Various 300 300 Mariah del Norte TX 2016 N/A N/A 230 230 Walnut Ridge IL 2018 2028 US GSA 212 212 Flat Top TX 2018 2031 Citi 200 200 Gopher Creek TX 2019 2024 JP Morgan 158 158 Bishop Hill II IL 2012 2032 Ameren 81 81 Marshall Wind KS 2016 2036 Various 72 72 Independence IA 2021 2041 CIPCO 54 54 2,307 2,307 GEOTHERMAL Imperial Valley CA 1982-2019 Various Various 345 345 HYDROELECTRIC Wailuku HI 1993 2023 HELCO 10 10 NATURAL GAS Cordova IL 2001 N/A N/A 512 512 Power Resources TX 1988 N/A N/A 212 212 Saranac NY 1994 N/A N/A 245 196 Yuma AZ 1994 2024 SDG&E 50 50 1,019 970 Total Owned Total Owned 5,365 5,168 Wind 52% Solar 25% Natural Gas 6% Geothermal 16% Hydro 1% LTM Ended September 30, 2022 Generation by Resource Type (1) Net MWs owned in operation and under construction as of September 30, 2022 BHE Solar Geothermal Natural Gas BHE Wind BHE Hydro
Slide 69 — BHE Renewables
• Ravenswood – BHE Renewables is purchasing 2,025 acres of land in Ravenswood, West Virginia, to be developed as a first-of-its-kind renewable energy microgrid-powered industrial site, with Precision Castparts Corp. being the first company on site through its development of a state-of-the-art titanium melt facility • Geothermal expansion – BHE Renewables is exploring an opportunity to expand its geothermal capacity in Imperial Valley, California by 377 MWs in support of the California Public Utilities Commission’s order requiring California’s jurisdictional load-serving entities to procure a total of 1,000 MWs of new clean baseload generation by June 1, 2026 • Recent project development and acquisitions – Acquired the remaining interests in Flat Top, a 200 MW wind project located in Mills and Comanche Counties, Texas, and Gopher Creek, a 158 MW wind project located in Scurry County, Texas, were acquired in December 2021 • BHE Renewables and The Kraft Heinz Company signed a virtual power purchase agreement through Gopher Creek in May 2022 that is designed to enable The Kraft Heinz Company to achieve its aspiration of procuring most of its electricity from renewable sources by 2025 – The Sponsor interest and a portion of the existing tax equity interests in Mariah del Norte, a 230 MW wind project located in Parmer County, Texas, were acquired in February 2022, resulting in BHE Renewables becoming the managing member with one remaining third-party minority tax equity investor • Wind tax equity portfolio – Approximately $5.8 billion of tax equity investments have allowed BHE Renewables to invest in the development of approximately 7.1 GWs of new wind generation BHE Renewables Business Update 69
Slide 70 — BHE Renewables
• BHE Renewables is conducting two demonstration projects in Imperial County, California to determine if it is commercially viable to recover lithium from its geothermal plants and convert it to battery-grade lithium carbonate – The first demonstration project will recover lithium from the brine that currently serves geothermal plants and was commissioned on June 5, 2022 – The second demonstration project will convert the recovered lithium to battery-grade lithium carbonate • If the demonstration projects are successful in confirming commercial viability, BHE Renewables expects to begin construction of its first commercial lithium facility as early as 2024 • BHE Renewables is engaging with state and local leaders to ensure lithium development is supported by environmental groups, community organizations, labor leaders and other key stakeholders BHE Renewables Lithium Update 70
Slide 71 — Financing Plan
Financing Plan 71 Company Issuance Amount (millions) Anticipated Issue Date Anticipated Use of Proceeds PacifiCorp $1,000 First Half-2023 Repay approximately $450 million of debt maturing throughout 2023, fund capital expenditures and to manage capital structure MidAmerican Energy $1,350 First Half-2023 Repay short-term borrowings, fund Wind Prime capital expenditures and to manage capital structure Northern Natural Gas $400 First Half-2023 Manage capital structure AltaLink, L.P. C$450 Late-2023 Repay C$500 million of debt maturing November 2023
Slide 72 — Appendix
Appendix
Slide 73 — Rate Base
$3.9 $8.8 $9.1 $9.7 $0.0 $3.0 $6.0 $9.0 $12.0 2019A 2020A 2021A 2022F $14.0 $15.1 $17.0 $17.4 $0.0 $3.0 $6.0 $9.0 $12.0 $15.0 $18.0 2019A 2020A 2021A 2022F ($ billions) $6.5 $7.0 $7.2 $7.4 $0.0 $2.0 $4.0 $6.0 $8.0 2019A 2020A 2021A 2022F ($ billions) $11.7 $13.8 $14.8 $15.6 $0.0 $4.0 $8.0 $12.0 $16.0 2019A 2020A 2021A 2022F ($ billions) NV Energy MidAmerican PacifiCorp BHE Pipeline Group(1) Rate Base 73 (1) Includes 25% of Cove Point pipeline ($ billions) Northern Natural Gas Kern River BHE GT&S
Slide 74 — Rate Base
Rate Base £3.4 £3.5 £3.7 £3.8 £0.0 £1.0 £2.0 £3.0 £4.0 2019A 2020A 2021A 2022F (£ billions) $7.5 $7.5 $7.6 $7.7 $0.0 $2.0 $4.0 $6.0 $8.0 2019A 2020A 2021A 2022F AltaLink, L.P. Northern Powergrid Berkshire Hathaway Energy $47.2 $56.3 $60.4 $62.1 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2019A 2020A 2021A 2022F PacifiCorp MidAmerican Energy NV Energy Northern Powergrid BHE Pipeline Group BHE Transmission ($ billions) (C$ billions) 74
Slide 75 — Retail Electric Sales – Weather Normalized
Retail Electric Sales – Weather Normalized 75 Year-to-Date September 30 Variance (GWh) 2022 2021 Actual Percent PacifiCorp Residential 13,056 13,015 41 0.3% Commercial 14,333 13,997 336 2.4% Industrial and Other 14,637 14,864 (227) (1.5)% Total 42,026 41,876 150 0.4% MidAmerican Residential 5,164 5,006 158 3.2% Commercial 2,914 2,762 152 5.5% Industrial and Other 13,693 13,174 519 3.9% Total 21,771 20,942 829 4.0% Nevada Power Residential 8,481 8,351 130 1.6% Commercial 3,862 3,718 144 3.9% Industrial and Other 4,424 4,067 357 8.8% Distribution-Only Service 2,021 1,899 122 6.4% Total 18,788 18,035 753 4.2% Sierra Pacific Power Residential 2,029 2,032 (3) (0.1)% Commercial 2,356 2,352 4 0.2% Industrial and Other 2,195 2,790 (595) (21.3)% Distribution-Only Service 2,036 1,219 817 67.0% Total 8,616 8,393 223 2.7% Northern Powergrid Residential 8,848 9,438 (590) (6.3)% Commercial 2,715 2,582 133 5.2% Industrial and Other 12,381 12,426 (45) (0.4)% Total 23,944 24,446 (502) (2.1)%
Slide 76 — Retail Electric Sales – Actual
Retail Electric Sales – Actual 76 Year-to-Date September 30 Variance (GWh) 2022 2021 Actual Percent PacifiCorp Residential 13,653 13,396 257 1.9% Commercial 14,526 14,181 345 2.4% Industrial and Other 14,709 14,976 (267) (1.8)% Total 42,888 42,553 335 0.8% MidAmerican Residential 5,461 5,284 177 3.3% Commercial 3,021 2,871 150 5.2% Industrial and Other 13,694 13,175 519 3.9% Total 22,176 21,330 846 4.0% Nevada Power Residential 8,425 8,737 (312) (3.6)% Commercial 3,859 3,793 66 1.7% Industrial and Other 4,422 4,122 300 7.3% Distribution-Only Service 2,022 1,923 99 5.1% Total 18,728 18,575 153 0.8% Sierra Pacific Power Residential 2,070 2,125 (55) (2.6)% Commercial 2,388 2,362 26 1.1% Industrial and Other 2,198 2,797 (599) (21.4)% Distribution-Only Service 2,037 1,220 817 67.0% Total 8,693 8,504 189 2.2% Northern Powergrid Residential 8,778 9,581 (803) (8.4)% Commercial 2,702 2,624 78 3.0% Industrial and Other 12,380 12,426 (46) (0.4)% Total 23,860 24,631 (771) (3.1)%
Slide 77 — Berkshire Hathaway Energy
Berkshire Hathaway Energy Adjusted Earnings on Common Shares 77 9/30/2022 LTM 2021 2020 ($ millions) Earnings on Common Shares (adjusted) Unrealized Gain (Loss) on BYD Earnings on Common Shares (reported) Earnings on Common Shares (adjusted) Unrealized Gain (Loss) on BYD Earnings on Common Shares (reported) Earnings on Common Shares (adjusted) Unrealized Gain (Loss) on BYD Earnings on Common Shares (reported) PacifiCorp 783 $ - $ 783 $ 889 $ - $ 889 $ 741 $ - $ 741 $ MidAmerican 900 - 900 883 - 883 818 - 818 NV Energy 415 - 415 439 - 439 410 - 410 Northern Powergrid 367 - 367 247 - 247 201 - 201 BHE Pipeline Group 935 - 935 807 - 807 528 - 528 BHE Transmission 246 - 246 247 - 247 231 - 231 BHE Renewables 617 - 617 451 - 451 521 - 521 HomeServices 200 - 200 387 - 387 375 - 375 BHE and Other (394) (617) (1,011) (458) 1,777 1,319 (378) 3,470 3,092 Earnings on Common Shares 4,069 $ (617) $ 3,452 $ 3,892 $ 1,777 $ 5,669 $ 3,447 $ 3,470 $ 6,917 $ Operating revenue 26,179 $ - $ 26,179 $ 25,150 $ - $ 25,150 $ 20,952 $ - $ 20,952 $ Total operating costs and expenses 20,961 - 20,961 19,823 - 19,823 16,661 - 16,661 Operating income 5,218 - 5,218 5,327 - 5,327 4,291 - 4,291 Interest expense (2,162) - (2,162) (2,118) - (2,118) (2,021) - (2,021) Capitalized interest and other, net 211 (1,278) (1,067) 289 1,796 2,085 427 4,774 5,201 Income tax (benefit) expense (1,479) (661) (2,140) (1,151) 19 (1,132) (996) 1,304 308 Equity loss (156) - (156) (237) - (237) (149) - (149) Noncontrolling interests 464 - 464 399 - 399 71 - 71 Preferred dividends 57 - 57 121 - 121 26 - 26 Earnings on Common Shares 4,069 $ (617) $ 3,452 $ 3,892 $ 1,777 $ 5,669 $ 3,447 $ 3,470 $ 6,917 $
Slide 78 — Berkshire Hathaway Energy
Berkshire Hathaway Energy Non-GAAP Financial Measures 78 (1) BHE issued $2.0 billion of Senior notes in October 2020, of which $1.2 billion of the proceeds were used to repay debt at EEGH. Acquisition financing interest is calculated based on the weighted average coupon of the debt issued by BHE (2) Debt includes short-term debt, Berkshire Hathaway Energy senior debt, and subsidiary debt (including current maturities) ($ in millions) LTM FFO 9/30/2022 2021 2020 Net cash flows from operating activities 9,647 $ 8,692 $ 6,224 $ +/- changes in other operating assets and liabilities (1,262) (270) 973 Less: Cove Point minority distributions (485) (450) FFO 7,900 $ 7,972 $ 7,197 $ Plus: acquisition financing interest(1) 9 Less: GT&S FFO (321) Adjusted FFO 7,900 $ 7,972 $ 6,885 $ Adjusted Debt Debt(2) 51,558 $ 51,671 $ 52,052 $ Less: acquisition financing debt(1) (1,200) Less: GT&S debt (4,918) Adjusted Debt 51,558 $ 51,671 $ 45,934 $ FFO to Adjusted Debt 15.3% 15.4% 15.0% Adjusted Interest Interest expense 2,162 $ 2,118 $ 2,021 $ Less: interest expense on subordinated debt (5) (5) (5) Less: acquisition financing interest(1) (9) Less: GT&S interest (16) Adjusted Interest 2,157 $ 2,113 $ 1,991 $ FFO Interest Coverage 4.7x 4.8x 4.5x Capitalization Berkshire Hathaway Energy common shareholders’ equity 45,008 $ 45,044 $ 39,260 $ Berkshire Hathaway Energy preferred shareholders’ equity 850 1,650 3,750 Debt(2) 51,558 51,671 52,052 Subordinated debt 100 100 100 Noncontrolling interests 3,887 3,895 3,967 Capitalization 101,403 $ 102,360 $ 99,129 $ Debt to Total Capitalization 51% 50% 53%
Slide 79 — PacifiCorp
PacifiCorp Non-GAAP Financial Measures 79 ($ in millions) LTM FFO 9/30/2022 2021 2020 Net cash flows from operating activities 2,012 $ 1,804 $ 1,583 $ +/- changes in other operating assets and liabilities (375) (8) (85) FFO 1,637 $ 1,796 $ 1,498 $ Debt 8,629 $ 8,730 $ 8,705 $ FFO to Debt 19.0% 20.6% 17.2% Interest expense 426 $ 430 $ 426 $ FFO Interest Coverage 4.8x 5.2x 4.5x Capitalization PacifiCorp shareholders’ equity 10,435 $ 9,913 $ 9,173 $ Debt 8,629 8,730 8,705 Capitalization 19,064 $ 18,643 $ 17,878 $ Debt to Total Capitalization 45% 47% 49%
Slide 80 — MidAmerican
MidAmerican Non-GAAP Financial Measures 80 ($ in millions) LTM FFO 9/30/2022 2021 2020 Net cash flows from operating activities 2,128 $ 1,617 $ 1,543 $ +/- changes in other operating assets and liabilities (136) 257 54 FFO 1,992 $ 1,874 $ 1,597 $ Debt 7,727 $ 7,721 $ 7,210 $ FFO to Debt 25.8% 24.3% 22.1% Interest expense 313 $ 302 $ 304 $ FFO Interest Coverage 7.4x 7.2x 6.3x Capitalization MidAmerican Energy shareholder's equity 9,665 $ 8,960 $ 8,065 $ Debt 7,727 7,721 7,210 Capitalization 17,392 $ 16,681 $ 15,275 $ Debt to Total Capitalization 44% 46% 47%
Slide 81 — Nevada Power
Nevada Power Non-GAAP Financial Measures 81 ($ in millions) LTM FFO 9/30/2022 2021 2020 Net cash flows from operating activities 332 $ 505 $ 467 $ +/- changes in other operating assets and liabilities (86) (56) 47 +/- deferred energy (including amortization) 503 234 85 FFO 749 $ 683 $ 599 $ Debt 3,001 $ 2,679 $ 2,496 $ FFO to Debt 25.0% 25.5% 24.0% Interest expense 156 $ 153 $ 162 $ FFO Interest Coverage 5.8x 5.5x 4.7x Capitalization Nevada Power shareholder's equity 3,338 $ 3,030 $ 2,939 $ Debt 3,001 2,679 2,496 Capitalization 6,339 $ 5,709 $ 5,435 $ Debt to Total Capitalization 47% 47% 46%
Slide 82 — Sierra Pacific Power
Sierra Pacific Power Non-GAAP Financial Measures 82 ($ in millions) LTM FFO 9/30/2022 2021 2020 Net cash flows from operating activities 176 $ 183 $ 190 $ +/- changes in other operating assets and liabilities (51) (37) 4 +/- deferred energy (including amortization) 141 87 31 FFO 266 $ 233 $ 225 $ Debt 1,268 $ 1,323 $ 1,209 $ FFO to Debt 21.0% 17.6% 18.6% Interest expense 55 $ 54 $ 56 $ FFO Interest Coverage 5.8x 5.3x 5.0x Capitalization Sierra Pacific Power shareholder's equity 1,905 $ 1,535 $ 1,411 $ Debt 1,268 1,323 1,209 Capitalization 3,173 $ 2,858 $ 2,620 $ Debt to Total Capitalization 40% 46% 46%
Slide 83 — Eastern Energy Gas
Eastern Energy Gas Non-GAAP Financial Measures 83 ($ in millions) LTM FFO 9/30/2022 2021 Net cash flows from operating activities 1,260 $ 1,092 $ +/- changes in other operating assets and liabilities 44 25 Less: Cove Point minority distributions (485) (450) FFO 819 $ 667 $ Debt 3,869 $ 3,906 $ FFO to Debt 21.2% 17.1% Interest expense 141 $ 151 $ FFO Interest Coverage 6.8x 5.4x Capitalization Eastern Energy Gas shareholder’s equity 3,853 $ 3,458 $ Debt 3,869 3,906 Noncontrolling interests 4,023 4,036 Capitalization 11,745 $ 11,400 $ Debt to Total Capitalization 33% 34%
Slide 84 — Eastern Gas Transportation and Storage
Eastern Gas Transportation and Storage Non-GAAP Financial Measures 84 ($ in millions) LTM FFO 9/30/2022 2021 Net cash flows from operating activities 514 $ 367 $ +/- changes in other operating assets and liabilities 9 27 FFO 523 $ 394 $ Debt 1,582 $ 1,581 $ FFO to Debt 33.1% 24.9% Interest expense 68 $ 78 $ FFO Interest Coverage 8.7x 6.1x Capitalization EGTS shareholder’s equity 2,583 $ 2,540 $ Debt 1,582 1,581 Capitalization 4,165 $ 4,121 $ Debt to Total Capitalization 38% 38%