|                                                                                    |        |                                                              |        |                         |
|------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|-------------------------|
| Commission                                                                         |   | Exact name of registrant as specified in its charter;        |   | IRS Employer            |
| File Number                                                                        |   | State or other jurisdiction of incorporation or organization |   | Identification No. |
|                                                                               |   |                                                         |   |                    |
| 333-90553                                                                          |   | MIDAMERICAN FUNDING, LLC                                     |   | 47-0819200              |
|                                                                               |   | (An Iowa Limited Liability Company)                          |   |                    |
|                                                                               |   | 666 Grand Avenue, Suite 500                                  |   |                    |
|                                                                               |   | Des Moines, Iowa 50309-2580                                  |   |                    |
|                                                                               |   |                                                         |   |                    |
| 333-15387                                                                          |   | MIDAMERICAN ENERGY COMPANY                                   |   | 42-1425214              |
|                                                                               |   | (An Iowa Corporation)                                        |   |                    |
|                                                                               |   | 666 Grand Avenue, Suite 500                                  |   |                    |
|                                                                               |   | Des Moines, Iowa 50309-2580                                  |   |                    |
|                                                                               |   |                                                         |   |                    |
| (515) 242-4300                                                                     |
| (Registrant's telephone number, including area code)                               |
| N/A                                                                                |
| (Former name, former address and former fiscal year, if changed since last report) |

|                                    |                       |        |                                      |                             |
|------------------------------------|-----------------------|--------|--------------------------------------|-----------------------------|
| MidAmerican Funding, LLC | Yes S No £ |   | MidAmerican Energy Company | Yes S  No £ |

|                                    |                             |        |                                      |                                   |
|------------------------------------|-----------------------------|--------|--------------------------------------|-----------------------------------|
| MidAmerican Funding, LLC | Yes £ No £ |   | MidAmerican Energy Company | Yes £  No £ |

|                                 |                           |                         |                                   |
|---------------------------------|---------------------------|-------------------------|-----------------------------------|
| Large accelerated filer £ | Accelerated filer £ | Non-accelerated filer S | Smaller reporting company £ |

----

|               |                                                                                       |        |
|---------------|---------------------------------------------------------------------------------------|--------|
| Item 1.       | Financial Statements                                                                  | 3      |
|          |                                                                                  |   |
| Item 2.       | Management's Discussion and Analysis of Financial Condition and Results of Operations | 30     |
|          |                                                                                  |   |
| Item 3.       | Quantitative and Qualitative Disclosures About Market Risk                            | 39     |
|          |                                                                                  |   |
| Item 4.       | Controls and Procedures                                                               | 39     |
|          |                                                                                  |   |
| PART II       |
|          |                                                                                  |   |
| Item 1.       | Legal Proceedings                                                                     | 40     |
|          |                                                                                  |   |
| Item 1A.      | Risk Factors                                                                          | 40     |
|          |                                                                                  |   |
| Item 2.       | Unregistered Sales of Equity Securities and Use of Proceeds                           | 40     |
|          |                                                                                  |   |
| Item 3.       | Defaults Upon Senior Securities                                                       | 40     |
|          |                                                                                  |   |
| Item 4.       | (Removed and Reserved)                                                                | 40     |
|          |                                                                                  |   |
| Item 5.       | Other Information                                                                     | 40     |
|          |                                                                                  |   |
| Item 6.       | Exhibits                                                                              | 40     |
|          |                                                                                  |   |
| Signatures    |                                                                                  | 41     |
|          |                                                                                  |   |
| Exhibit Index |                                                                                  | 42     |

----

|              |                      |
|--------------|----------------------|
| Item 1. | Financial Statements |

|                                                         |        |
|---------------------------------------------------------|--------|
| Report of Independent Registered Public Accounting Firm | 4      |
|                                                    |   |
| Consolidated Balance Sheets                             | 5      |
|                                                    |   |
| Consolidated Statements of Operations                   | 6      |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | 7      |
|                                                    |   |
| Consolidated Statements of Changes in Equity            | 8      |
|                                                    |   |
| Consolidated Statements of Comprehensive Income         | 9      |
|                                                    |   |
| Notes to Consolidated Financial Statements              | 10     |
|                                                    |   |
| MidAmerican Funding, LLC and Subsidiaries               |
|                                                    |   |
| Report of Independent Registered Public Accounting Firm | 21     |
|                                                    |   |
| Consolidated Balance Sheets                             | 22     |
|                                                    |   |
| Consolidated Statements of Operations                   | 23     |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | 24     |
|                                                    |   |
| Consolidated Statements of Changes in Equity            | 25     |
|                                                    |   |
| Consolidated Statements of Comprehensive Income         | 26     |
|                                                    |   |
| Notes to Consolidated Financial Statements              | 27     |

----

----

|                                                |                         |        |                        |        |        |       |        |
|------------------------------------------------|-------------------------|--------|------------------------|--------|--------|-------|--------|
|                                           | As of                   |
|                                           | September 30, 2010 |   | December 31, 2009 |
| ASSETS                                         |
| Utility plant, net:                            |                    |   |                   |
| Electric                                       | $                       | 9,382  |                   |   | $      | 9,286 |   |
| Gas                                            | 1,204                   |   |                   | 1,184  |   |
|                                           | 10,586                  |   |                   | 10,470 |   |
| Accumulated depreciation and amortization      | (3,794                  | )      |                   | (3,641 | )      |
|                                           | 6,792                   |   |                   | 6,829  |   |
| Construction work in progress                  | 65                      |   |                   | 114    |   |
| Total utility plant, net                       | 6,857                   |   |                   | 6,943  |   |
| Current assets:                                |                    |   |                   |   |   |
| Cash and cash equivalents                      | 200                     |   |                   | 87     |   |
| Receivables, net                               | 327                     |   |                   | 408    |   |
| Inventories                                    | 154                     |   |                   | 158    |   |
| Other                                          | 76                      |   |                   | 93     |   |
| Total current assets                           | 757                     |   |                   | 746    |   |
| Other assets:                                  |                    |   |                   |   |   |
| Investments and nonregulated property, net     | 462                     |   |                   | 447    |   |
| Regulatory assets                              | 506                     |   |                   | 397    |   |
| Other                                          | 58                      |   |                   | 74     |   |
| Total other assets                             | 1,026                   |   |                   | 918    |   |
| Total assets                                   | $                       | 8,640  |                   |   | $      | 8,607 |   |
|                                           |                    |   |                   |   |   |
| CAPITALIZATION AND LIABILITIES                 |
| Capitalization:                                |                    |   |                   |   |   |
| MidAmerican Energy common shareholder's equity | $                       | 2,798  |                   |   | $      | 2,929 |   |
| Preferred securities                           | 27                      |   |                   | 30     |   |
| Noncontrolling interests                       | 1                       |   |                   | 1      |   |
| Long-term debt, excluding current portion      | 2,865                   |   |                   | 2,865  |   |
| Total capitalization                           | 5,691                   |   |                   | 5,825  |   |
| Current liabilities:                           |                    |   |                   |   |   |
| Accounts payable                               | 215                     |   |                   | 259    |   |
| Taxes accrued                                  | 80                      |   |                   | 97     |   |
| Interest accrued                               | 37                      |   |                   | 44     |   |
| Other                                          | 150                     |   |                   | 90     |   |
| Total current liabilities                      | 482                     |   |                   | 490    |   |
| Other liabilities:                             |                    |   |                   |   |   |
| Deferred income taxes                          | 1,211                   |   |                   | 1,057  |   |
| Investment tax credits                         | 33                      |   |                   | 34     |   |
| Asset retirement obligations                   | 212                     |   |                   | 205    |   |
| Regulatory liabilities                         | 710                     |   |                   | 683    |   |
| Other                                          | 301                     |   |                   | 313    |   |
| Total other liabilities                        | 2,467                   |   |                   | 2,292  |   |
| Total capitalization and liabilities           | $                       | 8,640  |                   |   | $      | 8,607 |   |

----

|                                            |                                         |        |                                       |         |        |        |         |        |        |         |        |        |   |       |        |
|--------------------------------------------|-----------------------------------------|--------|---------------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|-------|--------|
|                                       | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                       | 2010                                    |   | 2009                                  |    | 2010   |   | 2009    |
| Operating revenue:                         |                                    |   |                                  |    |   |   |    |
| Regulated electric                         | $                                       | 505    |                                  |    | $      | 451    |    |   | $      | 1,361   |   |   | $ | 1,286 |   |
| Regulated gas                              | 110                                     |   |                                  | 85      |   |   | 625     |   |   | 591     |   |
| Nonregulated                               | 317                                     |   |                                  | 275     |   |   | 906     |   |   | 831     |   |
| Total operating revenue                    | 932                                     |   |                                  | 811     |   |   | 2,892   |   |   | 2,708   |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Operating costs and expenses:              |                                    |   |                                  |    |   |   |    |   |   |
| Regulated:                                 |                                    |   |                                  |    |   |   |    |   |   |
| Cost of fuel, energy and capacity          | 157                                     |   |                                  | 125     |   |   | 443     |   |   | 375     |   |
| Cost of gas sold                           | 67                                      |   |                                  | 45      |   |   | 447     |   |   | 417     |   |
| Other operating expenses                   | 105                                     |   |                                  | 104     |   |   | 303     |   |   | 309     |   |
| Maintenance                                | 45                                      |   |                                  | 43      |   |   | 143     |   |   | 133     |   |
| Depreciation and amortization              | 86                                      |   |                                  | 85      |   |   | 257     |   |   | 250     |   |
| Property and other taxes                   | 28                                      |   |                                  | 24      |   |   | 84      |   |   | 78      |   |
|                                       | 488                                     |   |                                  | 426     |   |   | 1,677   |   |   | 1,562   |   |
| Nonregulated:                              |                                    |   |                                  |    |   |   |    |   |   |
| Cost of sales                              | 290                                     |   |                                  | 254     |   |   | 833     |   |   | 761     |   |
| Other                                      | 7                                       |   |                                  | 9       |   |   | 19      |   |   | 22      |   |
|                                       | 297                                     |   |                                  | 263     |   |   | 852     |   |   | 783     |   |
| Total operating costs and expenses         | 785                                     |   |                                  | 689     |   |   | 2,529   |   |   | 2,345   |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Operating income                           | 147                                     |   |                                  | 122     |   |   | 363     |   |   | 363     |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Non-operating income:                      |                                    |   |                                  |    |   |   |    |   |   |
| Interest and dividend income               | —                                 |   |                                  | 1       |   |   | 1       |   |   | 2       |   |
| Allowance for equity funds                 | 1                                       |   |                                  | — |   |   | 3       |   |   | — |   |
| Other, net                                 | 3                                       |   |                                  | 5       |   |   | 3       |   |   | 10      |   |
| Total non-operating income                 | 4                                       |   |                                  | 6       |   |   | 7       |   |   | 12      |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Fixed charges:                             |                                    |   |                                  |    |   |   |    |   |   |
| Interest on long-term debt                 | 39                                      |   |                                  | 39      |   |   | 116     |   |   | 117     |   |
| Other interest expense                     | —                                 |   |                                  | — |   |   | 1       |   |   | 2       |   |
| Allowance for borrowed funds               | —                                 |   |                                  | — |   |   | (1      | )      |   | (1      | )      |
| Total fixed charges                        | 39                                      |   |                                  | 39      |   |   | 116     |   |   | 118     |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Income before income tax expense (benefit) | 112                                     |   |                                  | 89      |   |   | 254     |   |   | 257     |   |
| Income tax expense (benefit)               | 4                                       |   |                                  | (47     | )      |   | 7       |   |   | (24     | )      |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Net income                                 | 108                                     |   |                                  | 136     |   |   | 247     |   |   | 281     |   |
| Preferred dividends                        | —                                 |   |                                  | — |   |   | — |   |   | 1       |   |
|                                       |                                    |   |                                  |    |   |   |    |   |   |
| Earnings on common stock                   | $                                       | 108    |                                  |    | $      | 136    |    |   | $      | 247     |   |   | $ | 280   |   |

----

|                                                                                  |                                       |        |        |         |        |     |        |
|----------------------------------------------------------------------------------|---------------------------------------|--------|--------|---------|--------|-----|--------|
|                                                                             | Nine-Month PeriodsEnded September 30, |
|                                                                             | 2010                                  |   | 2009   |
|                                                                             |                                  |   |   |
| Cash flows from operating activities:                                            |                                  |   |   |
| Net income                                                                       | $                                     | 247    |   |    | $      | 281 |   |
| Adjustments to reconcile net income to net cash flows from operating activities: |                                  |   |   |
| Depreciation and amortization                                                    | 257                                   |   |   | 250     |   |
| Provision for deferred income taxes, net                                         | 95                                    |   |   | 164     |   |
| Changes in other assets and liabilities                                          | 24                                    |   |   | 23      |   |
| Other, net                                                                       | (5                                    | )      |   | 11      |   |
| Changes in other operating assets and liabilities:                               |                                  |   |   |
| Receivables, net                                                                 | 82                                    |   |   | 174     |   |
| Inventories                                                                      | 4                                     |   |   | (12     | )      |
| Derivative collateral, net                                                       | 14                                    |   |   | 12      |   |
| Accounts payable                                                                 | (36                                   | )      |   | (88     | )      |
| Taxes accrued                                                                    | (13                                   | )      |   | (27     | )      |
| Other current assets and liabilities                                             | 6                                     |   |   | 4       |   |
| Net cash flows from operating activities                                         | 675                                   |   |   | 792     |   |
|                                                                             |                                  |   |   |    |   |
| Cash flows from investing activities:                                            |                                  |   |   |    |   |
| Utility construction expenditures                                                | (182                                  | )      |   | (346    | )      |
| Purchases of available-for-sale securities                                       | (57                                   | )      |   | (212    | )      |
| Proceeds from sales of available-for-sale securities                             | 51                                    |   |   | 197     |   |
| Decrease in restricted cash and short-term investments                           | 1                                     |   |   | 10      |   |
| Other, net                                                                       | 4                                     |   |   | 15      |   |
| Net cash flows from investing activities                                         | (183                                  | )      |   | (336    | )      |
|                                                                             |                                  |   |   |    |   |
| Cash flows from financing activities:                                            |                                  |   |   |    |   |
| Dividends                                                                        | (376                                  | )      |   | (1      | )      |
| Repurchase of preferred securities                                               | (3                                    | )      |   | — |   |
| Net repayments of short-term debt                                                | —                               |   |   | (457    | )      |
| Net cash flows from financing activities                                         | (379                                  | )      |   | (458    | )      |
|                                                                             |                                  |   |   |    |   |
| Net change in cash and cash equivalents                                          | 113                                   |   |   | (2      | )      |
| Cash and cash equivalents at beginning of period                                 | 87                                    |   |   | 9       |   |
| Cash and cash equivalents at end of period                                       | $                                     | 200    |   |    | $      | 7   |   |

----

|                                    |                                         |        |                  |         |                                        |        |                     |        |                         |         |             |        |         |        |        |        |        |   |        |        |   |       |        |
|------------------------------------|-----------------------------------------|--------|------------------|---------|----------------------------------------|--------|---------------------|--------|-------------------------|---------|-------------|--------|---------|--------|--------|--------|--------|---|--------|--------|---|-------|--------|
|                               | MidAmerican Energy Shareholders' Equity |   |             |    |                                   |
|                               | CommonStock                             |   | RetainedEarnings |    | AccumulatedOtherComprehensiveLoss, Net |   | PreferredSecurities |   | NoncontrollingInterests |    | TotalEquity |
|                               |                                    |   |             |    |                                   |   |                |   |                    |    |        |
| Balance, January 1, 2009      | $                                       | 561    |             |    | $                                      | 2,068  |                |   | $                       | (60     | )           |   | $       | 30     |   |   | $      | 1 |   |   | $ | 2,600 |   |
| Net income                         | —                                 |   |             | 281     |                                   |   | —             |   |                    | — |        |   | — |   |   | 281    |   |
| Other comprehensive loss           | —                                 |   |             | — |                                   |   | (5                  | )      |                    | — |        |   | — |   |   | (5     | )      |
| Preferred dividends                | —                                 |   |             | (1      | )                                      |   | —             |   |                    | — |        |   | — |   |   | (1     | )      |
| Balance, September 30, 2009        | $                                       | 561    |             |    | $                                      | 2,348  |                |   | $                       | (65     | )           |   | $       | 30     |   |   | $      | 1 |   |   | $ | 2,875 |   |
|                               |                                    |   |             |    |                                   |   |                |   |                    |    |        |   |    |   |   |   |   |
| Balance, January 1, 2010      | $                                       | 561    |             |    | $                                      | 2,417  |                |   | $                       | (49     | )           |   | $       | 30     |   |   | $      | 1 |   |   | $ | 2,960 |   |
| Net income                         | —                                 |   |             | 247     |                                   |   | —             |   |                    | — |        |   | — |   |   | 247    |   |
| Other comprehensive loss           | —                                 |   |             | — |                                   |   | (3                  | )      |                    | — |        |   | — |   |   | (3     | )      |
| Repurchase of preferred securities | 1                                       |   |             | — |                                   |   | —             |   |                    | (3      | )           |   | — |   |   | (2     | )      |
| Common dividends                   | —                                 |   |             | (375    | )                                      |   | —             |   |                    | — |        |   | — |   |   | (375   | )      |
| Preferred dividends                | —                                 |   |             | (1      | )                                      |   | —             |   |                    | — |        |   | — |   |   | (1     | )      |
| Balance, September 30, 2010   | $                                       | 562    |             |    | $                                      | 2,288  |                |   | $                       | (52     | )           |   | $       | 27     |   |   | $      | 1 |   |   | $ | 2,826 |   |

----

|                                                             |                                         |        |                                       |         |        |        |         |        |        |        |        |        |   |     |        |
|-------------------------------------------------------------|-----------------------------------------|--------|---------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---|-----|--------|
|                                                        | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                                        | 2010                                    |   | 2009                                  |    | 2010   |   | 2009    |
|                                                        |                                    |   |                                  |    |   |   |    |
| Net income                                                  | $                                       | 108    |                                  |    | $      | 136    |    |   | $      | 247    |   |   | $ | 281 |   |
|                                                        |                                    |   |                                  |    |   |   |    |   |   |
| Other comprehensive income (loss):                          |                                    |   |                                  |    |   |   |    |   |   |
| Unrealized losses on available-for-sale securities:         |                                    |   |                                  |    |   |   |    |   |   |
| Unrealized losses during period-                            |                                    |   |                                  |    |   |   |    |   |   |
| Before income taxes                                         | —                                 |   |                                  | (1      | )      |   | (4      | )      |   | (5     | )      |
| Income tax benefit                                          | —                                 |   |                                  | 1       |   |   | 1       |   |   | 2      |   |
| Net unrealized losses                                       | —                                 |   |                                  | — |   |   | (3      | )      |   | (3     | )      |
|                                                        |                                    |   |                                  |    |   |   |    |   |   |
| Unrealized gains (losses) on cash flow hedges:              |                                    |   |                                  |    |   |   |    |   |   |
| Unrealized losses during period-                            |                                    |   |                                  |    |   |   |    |   |   |
| Before income taxes                                         | (18                                     | )      |                                  | (12     | )      |   | (28     | )      |   | (82    | )      |
| Income tax benefit                                          | 7                                       |   |                                  | 4       |   |   | 11      |   |   | 33     |   |
|                                                        | (11                                     | )      |                                  | (8      | )      |   | (17     | )      |   | (49    | )      |
| Less realized losses reflected in net income during period- |                                    |   |                                  |    |   |   |    |   |   |
| Before income taxes                                         | (4                                      | )      |                                  | (29     | )      |   | (28     | )      |   | (78    | )      |
| Income tax benefit                                          | 2                                       |   |                                  | 11      |   |   | 11      |   |   | 31     |   |
|                                                        | (2                                      | )      |                                  | (18     | )      |   | (17     | )      |   | (47    | )      |
| Net unrealized gains (losses)                               | (9                                      | )      |                                  | 10      |   |   | — |   |   | (2     | )      |
|                                                        |                                    |   |                                  |    |   |   |    |   |   |
| Other comprehensive income (loss)                           | (9                                      | )      |                                  | 10      |   |   | (3      | )      |   | (5     | )      |
|                                                        |                                    |   |                                  |    |   |   |    |   |   |   |
| Comprehensive income                                        | $                                       | 99     |                                  |    | $      | 146    |    |   | $      | 244    |   |   | $ | 276 |   |

----

----

|                                |                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that MidAmerican Energy has the ability to access at the measurement date. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). |

|                                |                                                                                                                                                                                                                                                                                                              |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 3 — Unobservable inputs reflect MidAmerican Energy's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. MidAmerican Energy develops these inputs based on the best information available, including its own data. |

|                                               |        |                                              |        |         |         |         |        |          |        |        |         |        |        |        |        |        |        |   |      |        |
|-----------------------------------------------|--------|----------------------------------------------|--------|---------|---------|---------|--------|----------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---|------|--------|
|                                          |   | Input Levels for FairValue Measurements |   |    |    |    |
|                                          |   | Level 1                                      |   | Level 2 |    | Level 3 |   | Other(1) |   | Total  |
| As of September 30, 2010                      |   |                                         |   |    |    |    |   |     |   |   |
| Assets:                                       |   |                                         |   |    |    |    |   |     |   |   |
| Commodity derivatives                         |   | $                                            | 5      |    |    | $       | 23     |     |   | $      | 27      |   |   | $      | (24    | )      |   | $ | 31   |   |
| Investments in available-for-sale securities: |   |                                         |   |    |    |    |   |     |   |   |    |
| Money market mutual funds(2)                  |   | 110                                          |   |    | — |    |   | —  |   |   | — |   |   | 110    |   |
| Debt securities                               |   | 86                                           |   |    | 41      |    |   | 12       |   |   | — |   |   | 139    |   |
| Equity securities                             |   | 151                                          |   |    | — |    |   | —  |   |   | — |   |   | 151    |   |
|                                          |   | $                                            | 352    |    |    | $       | 64     |     |   | $      | 39      |   |   | $      | (24    | )      |   | $ | 431  |   |
| Liabilities:                                  |   |                                         |   |    |    |    |   |     |   |   |    |   |   |   |   |
| Commodity derivatives                         |   | $                                            | (19    | )       |    | $       | (116   | )        |   | $      | (2      | )      |   | $      | 37     |   |   | $ | (100 | )      |

|                                               |        |        |        |        |         |        |        |         |        |        |         |        |        |        |        |        |        |   |     |        |
|-----------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---|-----|--------|
| As of December 31, 2009                       |   |   |   |   |    |   |   |    |   |   |
| Assets:                                       |   |   |   |   |    |   |   |    |   |   |
| Commodity derivatives                         |   | $      | 3      |   |    | $      | 23     |    |   | $      | 30      |   |   | $      | (19    | )      |   | $ | 37  |   |
| Investments in available-for-sale securities: |   |   |   |   |    |   |   |    |   |   |    |
| Money market mutual funds(2)                  |   | 71     |   |   | — |   |   | — |   |   | — |   |   | 71     |   |
| Debt securities                               |   | 69     |   |   | 46      |   |   | 16      |   |   | — |   |   | 131    |   |
| Equity securities                             |   | 149    |   |   | — |   |   | — |   |   | — |   |   | 149    |   |
|                                          |   | $      | 292    |   |    | $      | 69     |    |   | $      | 46      |   |   | $      | (19    | )      |   | $ | 388 |   |
| Liabilities:                                  |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |
| Commodity derivatives                         |   | $      | (5     | )      |    | $      | (85    | )       |   | $      | (9      | )      |   | $      | 43     |   |   | $ | (56 | )      |

|        |                                                                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | Represents netting under master netting arrangements and a net cash collateral receivable of $13 million and $24 million as of September 30, 2010 and December 31, 2009, respectively.               |
|   |                                                                                                                                                                                                      |
| (2)    | Amounts are included in cash and cash equivalents and investments and nonregulated property, net on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost. |

----

|                                                                       |                                        |        |                |         |                      |        |                |        |        |         |        |        |   |    |        |
|-----------------------------------------------------------------------|----------------------------------------|--------|----------------|---------|----------------------|--------|----------------|--------|--------|---------|--------|--------|---|----|--------|
|                                                                  | Three-Month Period Ended September 30, |
|                                                                  | 2010                                   |   | 2009           |
|                                                                  | CommodityDerivatives                   |   | DebtSecurities |    | CommodityDerivatives |   | DebtSecurities |
|                                                                  |                                   |   |           |    |                 |   |           |
| Beginning balance                                                     | $                                      | 16     |           |    | $                    | 12     |           |   | $      | 29      |   |   | $ | 12 |   |
| Changes included in earnings(1)                                       | 10                                     |   |           | — |                 |   | (3             | )      |   | — |   |
| Changes in fair value recognized in other comprehensive income        | —                                |   |           | — |                 |   | —        |   |   | (1      | )      |
| Changes in fair value recognized in regulatory assets and liabilities | —                                |   |           | — |                 |   | 4              |   |   | — |   |
| Settlements                                                           | (4                                     | )      |           | — |                 |   | (10            | )      |   | — |   |
| Net transfers to Level 2                                              | 3                                      |   |           | — |                 |   | —        |   |   | — |   |
| Ending balance                                                        | $                                      | 25     |           |    | $                    | 12     |           |   | $      | 20      |   |   | $ | 11 |   |

|                                                                       |                                       |        |                |         |                      |        |                |        |        |         |        |        |   |    |        |
|-----------------------------------------------------------------------|---------------------------------------|--------|----------------|---------|----------------------|--------|----------------|--------|--------|---------|--------|--------|---|----|--------|
|                                                                  | Nine-Month Period Ended September 30, |
|                                                                  | 2010                                  |   | 2009           |
|                                                                  | CommodityDerivatives                  |   | DebtSecurities |    | CommodityDerivatives |   | DebtSecurities |
|                                                                  |                                  |   |           |    |                 |   |           |
| Beginning balance                                                     | $                                     | 21     |           |    | $                    | 16     |           |   | $      | 40      |   |   | $ | 16 |   |
| Changes included in earnings(1)                                       | 15                                    |   |           | — |                 |   | 16             |   |   | — |   |
| Changes in fair value recognized in other comprehensive income        | —                               |   |           | (4      | )                    |   | —        |   |   | (5      | )      |
| Changes in fair value recognized in regulatory assets and liabilities | 3                                     |   |           | — |                 |   | 9              |   |   | — |   |
| Settlements                                                           | (17                                   | )      |           | — |                 |   | (45            | )      |   | — |   |
| Net transfers to Level 2                                              | 3                                     |   |           | — |                 |   | —        |   |   | — |   |
| Ending balance                                                        | $                                     | 25     |           |    | $                    | 12     |           |   | $      | 20      |   |   | $ | 11 |   |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Changes included in earnings are reported as nonregulated operating revenue on the Consolidated Statements of Operations. For commodity derivatives held as of September 30, 2010 and 2009, net unrealized gains (losses) included in earnings for the three-month periods ended September 30, 2010 and 2009, totaled $5 million and $(3) million, respectively, and for the nine-month periods ended September 30, 2010 and 2009, totaled $10 million and $12 million, respectively. |

----

|                |                          |        |                         |        |               |        |                 |        |   |       |        |        |   |       |        |
|----------------|--------------------------|--------|-------------------------|--------|---------------|--------|-----------------|--------|---|-------|--------|--------|---|-------|--------|
|           | As of September 30, 2010 |   | As of December 31, 2009 |
|           | CarryingValue            |   | Fair Value         |   | CarryingValue |   | Fair Value |
|           |                     |   |                    |   |          |   |            |
| Long-term debt | $                        | 2,865  |                    |   | $             | 3,252  |            |   | $ | 2,865 |   |   | $ | 3,054 |   |

----

|                                            |                      |        |                    |         |                           |        |                         |        |        |         |        |        |        |        |        |        |   |     |        |
|--------------------------------------------|----------------------|--------|--------------------|---------|---------------------------|--------|-------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---|-----|--------|
|                                       | CurrentAssets -Other |   | OtherAssets -Other |    | CurrentLiabilities -Other |   | OtherLiabilities -Other |   | Total  |
| As of September 30, 2010                   |                 |   |               |    |                      |   |                    |   |   |
| Not designated as hedging contracts(1)(2): |                 |   |               |    |                      |   |                    |   |   |
| Commodity assets                           | $                    | 28     |               |    | $                         | 8      |                    |   | $      | 17      |   |   | $      | 1      |   |   | $ | 54  |   |
| Commodity liabilities                      | (3                   | )      |               | (1      | )                         |   | (55                     | )      |   | (15     | )      |   | (74    | )      |
| Total                                      | 25                   |   |               | 7       |                      |   | (38                     | )      |   | (14     | )      |   | (20    | )      |
|                                       |                 |   |               |    |                      |   |                    |   |   |    |   |   |   |   |
| Designated as hedging contracts(1):        |                 |   |               |    |                      |   |                    |   |   |    |   |   |   |   |
| Commodity assets                           | —              |   |               | — |                      |   | 1                       |   |   | — |   |   | 1      |   |
| Commodity liabilities                      | —              |   |               | — |                      |   | (45                     | )      |   | (18     | )      |   | (63    | )      |
| Total                                      | —              |   |               | — |                      |   | (44                     | )      |   | (18     | )      |   | (62    | )      |
|                                       |                 |   |               |    |                      |   |                    |   |   |    |   |   |   |   |
| Total derivatives                          | 25                   |   |               | 7       |                      |   | (82                     | )      |   | (32     | )      |   | (82    | )      |
| Cash collateral (payable) receivable       | —              |   |               | (1      | )                         |   | 14                      |   |   | — |   |   | 13     |   |
| Total derivatives - net basis              | $                    | 25     |               |    | $                         | 6      |                    |   | $      | (68     | )      |   | $      | (32    | )      |   | $ | (69 | )      |

|                                            |         |        |        |         |        |        |        |        |        |        |        |        |        |         |        |        |   |     |        |
|--------------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---|-----|--------|
| As of December 31, 2009                    |    |   |   |    |   |   |   |   |   |
| Not designated as hedging contracts(1)(2): |    |   |   |    |   |   |   |   |   |
| Commodity assets                           | $       | 28     |   |    | $      | 9      |   |   | $      | 14     |   |   | $      | — |   |   | $ | 51  |   |
| Commodity liabilities                      | (1      | )      |   | — |   |   | (27    | )      |   | (4     | )      |   | (32    | )       |
| Total                                      | 27      |   |   | 9       |   |   | (13    | )      |   | (4     | )      |   | 19     |    |
|                                       |    |   |   |    |   |   |   |   |   |   |   |   |   |    |
| Designated as hedging contracts(1):        |    |   |   |    |   |   |   |   |   |   |   |   |   |    |
| Commodity assets                           | 1       |   |   | — |   |   | 3      |   |   | 1      |   |   | 5      |    |
| Commodity liabilities                      | — |   |   | — |   |   | (44    | )      |   | (23    | )      |   | (67    | )       |
| Total                                      | 1       |   |   | — |   |   | (41    | )      |   | (22    | )      |   | (62    | )       |
|                                       |    |   |   |    |   |   |   |   |   |   |   |   |   |    |
| Total derivatives                          | 28      |   |   | 9       |   |   | (54    | )      |   | (26    | )      |   | (43    | )       |
| Cash collateral receivable                 | — |   |   | — |   |   | 23     |   |   | 1      |   |   | 24     |    |
| Total derivatives - net basis              | $       | 28     |   |    | $      | 9      |   |   | $      | (31    | )      |   | $      | (25     | )      |   | $ | (19 | )      |

|        |                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | Derivative contracts within these categories subject to master netting arrangements are presented on a net basis on the Consolidated Balance Sheets.                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                              |
| (2)    | The majority of MidAmerican Energy's commodity derivatives not designated as hedging contracts are included in regulated rates, and as of September 30, 2010 and December 31, 2009, a net regulatory asset (liability) of $20 million and $(14) million, respectively, was recorded related to the net derivative asset (liability) of $(20) million and $19 million, respectively. |

----

|                                                                         |                     |        |                     |        |        |        |        |        |        |     |        |        |   |     |        |
|-------------------------------------------------------------------------|---------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|-----|--------|--------|---|-----|--------|
|                                                                    | Three-Month Periods |   | Nine-Month Periods  |
|                                                                    | Ended September 30, |   | Ended September 30, |
|                                                                    | 2010                |   | 2009                |   | 2010   |   | 2009   |
|                                                                    |                |   |                |   |   |   |   |
| Beginning balance                                                       | $                   | (3     | )                   |   | $      | (55    | )      |   | $      | (14 | )      |   | $ | 4   |   |
| Changes in fair value recognized in net regulatory assets (liabilities) | 21                  |   |                | (15    | )      |   | 19     |   |   | (50 | )      |
| Net (losses) gains reclassified to earnings - operating revenue         | (1                  | )      |                | 21     |   |   | 7      |   |   | 52  |   |
| Net gains reclassified to earnings - cost of fuel, energy and capacity  | 3                   |   |                | 5      |   |   | 13     |   |   | 13  |   |
| Net gains (losses) reclassified to earnings - cost of gas sold          | —             |   |                | 2      |   |   | (5     | )      |   | (61 | )      |
| Ending balance                                                          | $                   | 20     |                |   | $      | (42    | )      |   | $      | 20  |   |   | $ | (42 | )      |

|                                |                     |        |                     |         |        |        |        |        |        |     |        |        |   |    |        |
|--------------------------------|---------------------|--------|---------------------|---------|--------|--------|--------|--------|--------|-----|--------|--------|---|----|--------|
|                           | Three-Month Periods |   | Nine-Month Periods  |
|                           | Ended September 30, |   | Ended September 30, |
|                           | 2010                |   | 2009                |    | 2010   |   | 2009   |
|                           |                |   |                |    |   |   |   |
| Nonregulated operating revenue | $                   | 8      |                |    | $      | (2     | )      |   | $      | 19  |   |   | $ | 17 |   |
| Regulated cost of gas sold     | —             |   |                | — |   |   | 3      |   |   | 1   |   |
| Nonregulated cost of sales     | (7                  | )      |                | 3       |   |   | (17    | )      |   | (10 | )      |
| Total                          | $                   | 1      |                |    | $      | 1      |   |   | $      | 5   |   |   | $ | 8  |   |

----

|                                                                  |                     |        |                     |        |        |        |        |        |        |     |        |        |   |    |        |
|------------------------------------------------------------------|---------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|-----|--------|--------|---|----|--------|
|                                                             | Three-Month Periods |   | Nine-Month Periods  |
|                                                             | Ended September 30, |   | Ended September 30, |
|                                                             | 2010                |   | 2009                |   | 2010   |   | 2009   |
|                                                             |                |   |                |   |   |   |   |
| Beginning balance                                                | $                   | 49     |                |   | $      | 101    |   |   | $      | 63  |   |   | $ | 80 |   |
| Net losses recognized in OCI                                     | 18                  |   |                | 12     |   |   | 28     |   |   | 82  |   |
| Net losses reclassified to earnings - nonregulated cost of sales | (4                  | )      |                | (29    | )      |   | (28    | )      |   | (78 | )      |
| Ending balance                                                   | $                   | 63     |                |   | $      | 84     |   |   | $      | 63  |   |   | $ | 84 |   |

|                       |                 |        |        |        |        |    |        |
|-----------------------|-----------------|--------|--------|--------|--------|----|--------|
|                  | Unit of Measure |   | 2010   |   | 2009   |
|                  |            |   |   |   |   |
| Electricity purchases | Megawatt hours  |   | 4      |   |   | 2  |   |
| Natural gas purchases | Decatherms      |   | 47     |   |   | 25 |   |
| Fuel purchases        | Gallons         |   | 5      |   |   | 2  |   |

----

|                                |                                         |         |                                       |         |        |         |         |        |        |         |        |        |   |    |        |
|--------------------------------|-----------------------------------------|---------|---------------------------------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|----|--------|
|                           | Three-Month Periods Ended September 30, |    | Nine-Month PeriodsEnded September 30, |
|                           | 2010                                    |    | 2009                                  |    | 2010   |    | 2009    |
| Pension:                       |                                    |    |                                  |    |   |    |    |
| Service cost                   | $                                       | 5       |                                  |    | $      | 5       |    |   | $      | 13      |   |   | $ | 14 |   |
| Interest cost                  | 9                                       |    |                                  | 11      |   |    | 29      |   |   | 32      |   |
| Expected return on plan assets | (10                                     | )       |                                  | (11     | )      |    | (30     | )      |   | (32     | )      |
| Net amortization               | —                                 |    |                                  | — |   |    | — |   |   | (1      | )      |
| Net periodic benefit cost      | $                                       | 4       |                                  |    | $      | 5       |    |   | $      | 12      |   |   | $ | 13 |   |
|                           |                                    |    |                                  |    |   |    |    |
| Other Postretirement:          |                                    |    |                                  |    |   |    |    |
| Service cost                   | $                                       | 1       |                                  |    | $      | — |    |   | $      | 3       |   |   | $ | 2  |   |
| Interest cost                  | 3                                       |    |                                  | 3       |   |    | 8       |   |   | 8       |   |
| Expected return on plan assets | (4                                      | )       |                                  | (3      | )      |    | (10     | )      |   | (8      | )      |
| Net amortization               | —                                 |    |                                  | — |   |    | (1      | )      |   | (1      | )      |
| Net periodic benefit cost      | $                                       | — |                                  |    | $      | — |    |   | $      | — |   |   | $ | 1  |   |

----

|                                                     |                                         |         |                                       |        |         |        |        |         |        |         |         |
|-----------------------------------------------------|-----------------------------------------|---------|---------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|
|                                                | Three-Month Periods Ended September 30, |    | Nine-Month PeriodsEnded September 30, |
|                                                | 2010                                    |    | 2009                                  |   | 2010    |   | 2009   |
|                                                |                                    |    |                                  |   |    |   |   |
| Federal statutory income tax rate                   | 35                                      |  % |                                  | 35     |  % |   | 35     |  % |   | 35      |  % |
| Amortization of investment tax credit               | (1                                      | )       |                                  | (1     | )       |   | (1     | )       |   | (1      | )       |
| State income tax, net of federal income tax benefit | 8                                       |    |                                  | 10     |    |   | 7      |    |   | 8       |    |
| Renewable electricity production tax credits        | (29                                     | )       |                                  | (22    | )       |   | (26    | )       |   | (21     | )       |
| Tax method change                                   | —                                 |    |                                  | (62    | )       |   | (3     | )       |   | (22     | )       |
| Effects of ratemaking                               | (10                                     | )       |                                  | (11    | )       |   | (10    | )       |   | (8      | )       |
| Other, net                                          | 1                                       |    |                                  | (2     | )       |   | 1      |    |   | — |    |
| Effective income tax rate                           | 4                                       |  % |                                  | (53    | )%      |   | 3      |  % |   | (9      | )%      |

----

|                                                                                 |                         |        |                        |        |   |     |   |
|---------------------------------------------------------------------------------|-------------------------|--------|------------------------|--------|---|-----|---|
|                                                                            | As of                   |
|                                                                            | September 30, 2010 |   | December 31, 2009 |
|                                                                            |                    |   |                   |
| Fair value adjustment on cash flow hedges, net of tax of $(25) and $(25)        | $                       | (38    | )                      |   | $ | (38 | ) |
| Unrealized losses on available-for-sale securities, net of tax of $(9) and $(8) | (14                     | )      |                   | (11    | ) |
| Total accumulated other comprehensive loss, net                                 | $                       | (52    | )                      |   | $ | (49 | ) |

----

|                                     |                                         |        |                                       |        |        |        |        |        |        |        |        |        |   |       |        |
|-------------------------------------|-----------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                                | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                | 2010                                    |   | 2009                                  |   | 2010   |   | 2009   |
| Operating revenue:                  |                                    |   |                                  |   |   |   |   |
| Regulated electric                  | $                                       | 505    |                                  |   | $      | 451    |   |   | $      | 1,361  |   |   | $ | 1,286 |   |
| Regulated gas                       | 110                                     |   |                                  | 85     |   |   | 625    |   |   | 591    |   |
| Nonregulated energy                 | 317                                     |   |                                  | 275    |   |   | 906    |   |   | 831    |   |
| Total operating revenue             | $                                       | 932    |                                  |   | $      | 811    |   |   | $      | 2,892  |   |   | $ | 2,708 |   |
|                                |                                    |   |                                  |   |   |   |   |   |   |   |   |
| Depreciation and amortization:      |                                    |   |                                  |   |   |   |   |   |   |   |   |
| Regulated electric                  | $                                       | 77     |                                  |   | $      | 76     |   |   | $      | 231    |   |   | $ | 224   |   |
| Regulated gas                       | 9                                       |   |                                  | 9      |   |   | 26     |   |   | 26     |   |
| Total depreciation and amortization | $                                       | 86     |                                  |   | $      | 85     |   |   | $      | 257    |   |   | $ | 250   |   |
|                                |                                    |   |                                  |   |   |   |   |   |   |   |   |
| Operating income:                   |                                    |   |                                  |   |   |   |   |   |   |   |   |
| Regulated electric                  | $                                       | 130    |                                  |   | $      | 112    |   |   | $      | 266    |   |   | $ | 272   |   |
| Regulated gas                       | (3                                      | )      |                                  | (4     | )      |   | 43     |   |   | 43     |   |
| Nonregulated energy                 | 20                                      |   |                                  | 14     |   |   | 54     |   |   | 48     |   |
| Total operating income              | $                                       | 147    |                                  |   | $      | 122    |   |   | $      | 363    |   |   | $ | 363   |   |

|                     |                         |        |                        |        |        |       |        |
|---------------------|-------------------------|--------|------------------------|--------|--------|-------|--------|
|                | As of                   |
|                | September 30, 2010 |   | December 31, 2009 |
| Total assets:       |                    |   |                   |
| Regulated electric  | $                       | 7,509  |                   |   | $      | 7,430 |   |
| Regulated gas       | 911                     |   |                   | 956    |   |
| Nonregulated energy | 220                     |   |                   | 221    |   |
| Total assets        | $                       | 8,640  |                   |   | $      | 8,607 |   |

----

----

|                                            |                         |        |                        |         |        |       |        |
|--------------------------------------------|-------------------------|--------|------------------------|---------|--------|-------|--------|
|                                       | As of                   |
|                                       | September 30, 2010 |   | December 31, 2009 |
| ASSETS                                     |
| Utility plant, net:                        |                    |   |                   |
| Electric                                   | $                       | 9,382  |                   |    | $      | 9,286 |   |
| Gas                                        | 1,204                   |   |                   | 1,184   |   |
|                                       | 10,586                  |   |                   | 10,470  |   |
| Accumulated depreciation and amortization  | (3,794                  | )      |                   | (3,641  | )      |
|                                       | 6,792                   |   |                   | 6,829   |   |
| Construction work in progress              | 65                      |   |                   | 114     |   |
| Total utility plant, net                   | 6,857                   |   |                   | 6,943   |   |
| Current assets:                            |                    |   |                   |    |   |
| Cash and cash equivalents                  | 201                     |   |                   | 88      |   |
| Receivables, net                           | 330                     |   |                   | 412     |   |
| Inventories                                | 154                     |   |                   | 158     |   |
| Other                                      | 76                      |   |                   | 93      |   |
| Total current assets                       | 761                     |   |                   | 751     |   |
| Other assets:                              |                    |   |                   |    |   |
| Investments and nonregulated property, net | 488                     |   |                   | 472     |   |
| Goodwill                                   | 1,270                   |   |                   | 1,270   |   |
| Regulatory assets                          | 506                     |   |                   | 397     |   |
| Other                                      | 58                      |   |                   | 75      |   |
| Total other assets                         | 2,322                   |   |                   | 2,214   |   |
| Total assets                               | $                       | 9,940  |                   |    | $      | 9,908 |   |
|                                       |                    |   |                   |    |   |
| CAPITALIZATION AND LIABILITIES             |
| Capitalization:                            |                    |   |                   |    |   |
| MidAmerican Funding member's equity        | $                       | 3,545  |                   |    | $      | 3,428 |   |
| Noncontrolling interests                   | 28                      |   |                   | 31      |   |
| Long-term debt, excluding current portion  | 3,190                   |   |                   | 3,390   |   |
| Total capitalization                       | 6,763                   |   |                   | 6,849   |   |
| Current liabilities:                       |                    |   |                   |    |   |
| Current portion of long-term debt          | 200                     |   |                   | — |   |
| Note payable to affiliate                  | 17                      |   |                   | 254     |   |
| Accounts payable                           | 215                     |   |                   | 259     |   |
| Taxes accrued                              | 80                      |   |                   | 98      |   |
| Interest accrued                           | 40                      |   |                   | 56      |   |
| Other                                      | 150                     |   |                   | 90      |   |
| Total current liabilities                  | 702                     |   |                   | 757     |   |
| Other liabilities:                         |                    |   |                   |    |   |
| Deferred income taxes                      | 1,209                   |   |                   | 1,053   |   |
| Investment tax credits                     | 33                      |   |                   | 34      |   |
| Asset retirement obligations               | 212                     |   |                   | 205     |   |
| Regulatory liabilities                     | 710                     |   |                   | 683     |   |
| Other                                      | 311                     |   |                   | 327     |   |
| Total other liabilities                    | 2,475                   |   |                   | 2,302   |   |
| Total capitalization and liabilities       | $                       | 9,940  |                   |    | $      | 9,908 |   |

----

|                                                     |                                         |        |                                       |         |        |        |         |        |        |         |        |        |   |       |        |
|-----------------------------------------------------|-----------------------------------------|--------|---------------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|-------|--------|
|                                                | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                                | 2010                                    |   | 2009                                  |    | 2010   |   | 2009    |
| Operating revenue:                                  |                                    |   |                                  |    |   |   |    |
| Regulated electric                                  | $                                       | 505    |                                  |    | $      | 451    |    |   | $      | 1,361   |   |   | $ | 1,286 |   |
| Regulated gas                                       | 110                                     |   |                                  | 85      |   |   | 625     |   |   | 591     |   |
| Nonregulated                                        | 318                                     |   |                                  | 276     |   |   | 909     |   |   | 834     |   |
| Total operating revenue                             | 933                                     |   |                                  | 812     |   |   | 2,895   |   |   | 2,711   |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Operating costs and expenses:                       |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Regulated:                                          |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Cost of fuel, energy and capacity                   | 157                                     |   |                                  | 125     |   |   | 443     |   |   | 375     |   |
| Cost of gas sold                                    | 67                                      |   |                                  | 45      |   |   | 447     |   |   | 417     |   |
| Other operating expenses                            | 105                                     |   |                                  | 104     |   |   | 303     |   |   | 309     |   |
| Maintenance                                         | 45                                      |   |                                  | 43      |   |   | 143     |   |   | 133     |   |
| Depreciation and amortization                       | 86                                      |   |                                  | 85      |   |   | 257     |   |   | 250     |   |
| Property and other taxes                            | 28                                      |   |                                  | 24      |   |   | 84      |   |   | 78      |   |
|                                                | 488                                     |   |                                  | 426     |   |   | 1,677   |   |   | 1,562   |   |
| Nonregulated:                                       |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Cost of sales                                       | 290                                     |   |                                  | 254     |   |   | 833     |   |   | 762     |   |
| Other                                               | 7                                       |   |                                  | 9       |   |   | 21      |   |   | 24      |   |
|                                                | 297                                     |   |                                  | 263     |   |   | 854     |   |   | 786     |   |
| Total operating costs and expenses                  | 785                                     |   |                                  | 689     |   |   | 2,531   |   |   | 2,348   |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Operating income                                    | 148                                     |   |                                  | 123     |   |   | 364     |   |   | 363     |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Non-operating income:                               |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Interest and dividend income                        | —                                 |   |                                  | — |   |   | 1       |   |   | 2       |   |
| Allowance for equity funds                          | 1                                       |   |                                  | — |   |   | 3       |   |   | — |   |
| Other, net                                          | 4                                       |   |                                  | 6       |   |   | 8       |   |   | 11      |   |
| Total non-operating income                          | 5                                       |   |                                  | 6       |   |   | 12      |   |   | 13      |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Fixed charges:                                      |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Interest on long-term debt                          | 48                                      |   |                                  | 47      |   |   | 143     |   |   | 145     |   |
| Other interest expense                              | —                                 |   |                                  | 1       |   |   | 1       |   |   | 3       |   |
| Allowance for borrowed funds                        | —                                 |   |                                  | — |   |   | (1      | )      |   | (1      | )      |
| Total fixed charges                                 | 48                                      |   |                                  | 48      |   |   | 143     |   |   | 147     |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Income before income tax expense (benefit)          | 105                                     |   |                                  | 81      |   |   | 233     |   |   | 229     |   |
| Income tax expense (benefit)                        | 2                                       |   |                                  | (51     | )      |   | (1      | )      |   | (36     | )      |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Net income                                          | 103                                     |   |                                  | 132     |   |   | 234     |   |   | 265     |   |
| Net income attributable to noncontrolling interests | —                                 |   |                                  | — |   |   | — |   |   | 1       |   |
|                                                |                                    |   |                                  |    |   |   |    |   |   |    |   |
| Net income attributable to MidAmerican Funding      | $                                       | 103    |                                  |    | $      | 132    |    |   | $      | 234     |   |   | $ | 264   |   |

----

|                                                                                  |                                       |        |        |         |        |     |        |
|----------------------------------------------------------------------------------|---------------------------------------|--------|--------|---------|--------|-----|--------|
|                                                                             | Nine-Month PeriodsEnded September 30, |
|                                                                             | 2010                                  |   | 2009   |
| Cash flows from operating activities:                                            |                                  |   |   |
| Net income                                                                       | $                                     | 234    |   |    | $      | 265 |   |
| Adjustments to reconcile net income to net cash flows from operating activities: |                                  |   |   |
| Depreciation and amortization                                                    | 257                                   |   |   | 250     |   |
| Provision for deferred income taxes, net                                         | 98                                    |   |   | 165     |   |
| Changes in other assets and liabilities                                          | 24                                    |   |   | 23      |   |
| Other, net                                                                       | (10                                   | )      |   | 13      |   |
| Changes in other operating assets and liabilities:                               |                                  |   |   |
| Receivables, net                                                                 | 82                                    |   |   | 175     |   |
| Inventories                                                                      | 4                                     |   |   | (12     | )      |
| Derivative collateral, net                                                       | 14                                    |   |   | 12      |   |
| Accounts payable                                                                 | (36                                   | )      |   | (88     | )      |
| Taxes accrued                                                                    | (13                                   | )      |   | (28     | )      |
| Other current assets and liabilities                                             | (3                                    | )      |   | (8      | )      |
| Net cash flows from operating activities                                         | 651                                   |   |   | 767     |   |
|                                                                             |                                  |   |   |    |   |
| Cash flows from investing activities:                                            |                                  |   |   |    |   |
| Utility construction expenditures                                                | (182                                  | )      |   | (346    | )      |
| Purchases of available-for-sale securities                                       | (57                                   | )      |   | (212    | )      |
| Proceeds from sales of available-for-sale securities                             | 51                                    |   |   | 197     |   |
| Decrease in restricted cash and short-term investments                           | 1                                     |   |   | 10      |   |
| Other, net                                                                       | 4                                     |   |   | 14      |   |
| Net cash flows from investing activities                                         | (183                                  | )      |   | (337    | )      |
|                                                                             |                                  |   |   |    |   |
| Cash flows from financing activities:                                            |                                  |   |   |    |   |
| Dividends                                                                        | (115                                  | )      |   | (1      | )      |
| Repayments of long-term debt                                                     | —                               |   |   | (175    | )      |
| Repurchase of preferred securities of subsidiary                                 | (3                                    | )      |   | — |   |
| Net change in note payable to affiliate                                          | (237                                  | )      |   | 201     |   |
| Net repayments of short-term debt                                                | —                               |   |   | (457    | )      |
| Net cash flows from financing activities                                         | (355                                  | )      |   | (432    | )      |
|                                                                             |                                  |   |   |    |   |
| Net change in cash and cash equivalents                                          | 113                                   |   |   | (2      | )      |
| Cash and cash equivalents at beginning of period                                 | 88                                    |   |   | 10      |   |
| Cash and cash equivalents at end of period                                       | $                                     | 201    |   |    | $      | 8   |   |

----

|                                                  |                                     |        |                  |         |                                        |        |                         |        |             |         |        |        |        |        |        |        |   |       |        |
|--------------------------------------------------|-------------------------------------|--------|------------------|---------|----------------------------------------|--------|-------------------------|--------|-------------|---------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                                             | MidAmerican Funding Member's Equity |   |             |    |                                   |
|                                             | Paid-inCapital                      |   | RetainedEarnings |    | AccumulatedOtherComprehensiveLoss, Net |   | NoncontrollingInterests |   | TotalEquity |
|                                             |                                |   |             |    |                                   |   |                    |   |        |
| Balance, January 1, 2009                    | $                                   | 1,670  |             |    | $                                      | 1,471  |                    |   | $           | (60     | )      |   | $      | 31     |   |   | $ | 3,112 |   |
| Net income                                       | —                             |   |             | 264     |                                   |   | —                 |   |        | 1       |   |   | 265    |   |
| Other comprehensive loss                         | —                             |   |             | — |                                   |   | (5                      | )      |        | — |   |   | (5     | )      |
| Distributions                                    | —                             |   |             | — |                                   |   | —                 |   |        | (1      | )      |   | (1     | )      |
| Balance, September 30, 2009                      | $                                   | 1,670  |             |    | $                                      | 1,735  |                    |   | $           | (65     | )      |   | $      | 31     |   |   | $ | 3,371 |   |
|                                             |                                |   |             |    |                                   |   |                    |   |        |    |   |   |   |   |
| Balance, January 1, 2010                    | $                                   | 1,679  |             |    | $                                      | 1,798  |                    |   | $           | (49     | )      |   | $      | 31     |   |   | $ | 3,459 |   |
| Net income                                       | —                             |   |             | 234     |                                   |   | —                 |   |        | — |   |   | 234    |   |
| Other comprehensive loss                         | —                             |   |             | — |                                   |   | (3                      | )      |        | — |   |   | (3     | )      |
| Repurchase of preferred securities of subsidiary | —                             |   |             | — |                                   |   | —                 |   |        | (2      | )      |   | (2     | )      |
| Distributions                                    | —                             |   |             | (114    | )                                      |   | —                 |   |        | (1      | )      |   | (115   | )      |
| Balance, September 30, 2010                      | $                                   | 1,679  |             |    | $                                      | 1,918  |                    |   | $           | (52     | )      |   | $      | 28     |   |   | $ | 3,573 |   |

----

|                                                               |                                         |        |                                       |         |        |        |         |        |        |        |        |        |   |     |        |
|---------------------------------------------------------------|-----------------------------------------|--------|---------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---|-----|--------|
|                                                          | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                                          | 2010                                    |   | 2009                                  |    | 2010   |   | 2009    |
|                                                          |                                    |   |                                  |    |   |   |    |
| Net income                                                    | $                                       | 103    |                                  |    | $      | 132    |    |   | $      | 234    |   |   | $ | 265 |   |
|                                                          |                                    |   |                                  |    |   |   |    |
| Other comprehensive income (loss):                            |                                    |   |                                  |    |   |   |    |
| Unrealized losses on available-for-sale securities:           |                                    |   |                                  |    |   |   |    |
| Unrealized losses during period-                              |                                    |   |                                  |    |   |   |    |
| Before income taxes                                           | —                                 |   |                                  | (1      | )      |   | (4      | )      |   | (5     | )      |
| Income tax benefit                                            | —                                 |   |                                  | 1       |   |   | 1       |   |   | 2      |   |
| Net unrealized losses                                         | —                                 |   |                                  | — |   |   | (3      | )      |   | (3     | )      |
|                                                          |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Unrealized gains (losses) on cash flow hedges:                |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Unrealized losses during period-                              |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Before income taxes                                           | (18                                     | )      |                                  | (12     | )      |   | (28     | )      |   | (82    | )      |
| Income tax benefit                                            | 7                                       |   |                                  | 4       |   |   | 11      |   |   | 33     |   |
|                                                          | (11                                     | )      |                                  | (8      | )      |   | (17     | )      |   | (49    | )      |
| Less realized losses reflected in net income during period-   |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Before income taxes                                           | (4                                      | )      |                                  | (29     | )      |   | (28     | )      |   | (78    | )      |
| Income tax benefit                                            | 2                                       |   |                                  | 11      |   |   | 11      |   |   | 31     |   |
|                                                          | (2                                      | )      |                                  | (18     | )      |   | (17     | )      |   | (47    | )      |
| Net unrealized gains (losses)                                 | (9                                      | )      |                                  | 10      |   |   | — |   |   | (2     | )      |
|                                                          |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Other comprehensive income (loss)                             | (9                                      | )      |                                  | 10      |   |   | (3      | )      |   | (5     | )      |
|                                                          |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Comprehensive income                                          | 94                                      |   |                                  | 142     |   |   | 231     |   |   | 260    |   |
| Comprehensive income attributable to noncontrolling interests | —                                 |   |                                  | — |   |   | — |   |   | 1      |   |
|                                                          |                                    |   |                                  |    |   |   |    |   |   |   |   |
| Comprehensive income attributable to MidAmerican Funding      | $                                       | 94     |                                  |    | $      | 142    |    |   | $      | 231    |   |   | $ | 259 |   |

----

|                |                          |        |                         |        |               |        |            |        |   |       |        |        |   |       |        |
|----------------|--------------------------|--------|-------------------------|--------|---------------|--------|------------|--------|---|-------|--------|--------|---|-------|--------|
|           | As of September 30, 2010 |   | As of December 31, 2009 |
|           | CarryingValue            |   | Fair Value              |   | CarryingValue |   | Fair Value |
|           |                     |   |                    |   |          |   |       |
| Long-term debt | $                        | 3,390  |                    |   | $             | 3,848  |       |   | $ | 3,390 |   |   | $ | 3,634 |   |

----

|                                                     |                                         |         |                                       |         |         |        |         |         |        |     |         |
|-----------------------------------------------------|-----------------------------------------|---------|---------------------------------------|---------|---------|--------|---------|---------|--------|-----|---------|
|                                                | Three-Month Periods Ended September 30, |    | Nine-Month PeriodsEnded September 30, |
|                                                | 2010                                    |    | 2009                                  |    | 2010    |   | 2009    |
|                                                |                                    |    |                                  |    |    |   |    |
| Federal statutory income tax rate                   | 35                                      |  % |                                  | 35      |  % |   | 35      |  % |   | 35  |  % |
| Amortization of investment tax credit               | (1                                      | )       |                                  | (1      | )       |   | (1      | )       |   | (1  | )       |
| State income tax, net of federal income tax benefit | 8                                       |    |                                  | 8       |    |   | 7       |    |   | 8   |    |
| Renewable electricity production tax credits        | (31                                     | )       |                                  | (25     | )       |   | (29     | )       |   | (24 | )       |
| Tax method change                                   | —                                 |    |                                  | (68     | )       |   | (3      | )       |   | (24 | )       |
| Effects of ratemaking                               | (11                                     | )       |                                  | (12     | )       |   | (11     | )       |   | (9  | )       |
| Other, net                                          | 2                                       |    |                                  | — |    |   | 2       |    |   | (1  | )       |
| Effective income tax rate                           | 2                                       |  % |                                  | (63     | )%      |   | — |  % |   | (16 | )%      |

----

|                                     |                                         |        |                                       |        |        |        |        |        |        |         |        |        |   |       |        |
|-------------------------------------|-----------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---|-------|--------|
|                                | Three-Month Periods Ended September 30, |   | Nine-Month PeriodsEnded September 30, |
|                                | 2010                                    |   | 2009                                  |   | 2010   |   | 2009   |
| Operating revenue:                  |                                    |   |                                  |   |   |   |   |
| Regulated electric                  | $                                       | 505    |                                  |   | $      | 451    |   |   | $      | 1,361   |   |   | $ | 1,286 |   |
| Regulated gas                       | 110                                     |   |                                  | 85     |   |   | 625    |   |   | 591     |   |
| Nonregulated energy                 | 317                                     |   |                                  | 275    |   |   | 906    |   |   | 831     |   |
| Other                               | 1                                       |   |                                  | 1      |   |   | 3      |   |   | 3       |   |
| Total operating revenue             | $                                       | 933    |                                  |   | $      | 812    |   |   | $      | 2,895   |   |   | $ | 2,711 |   |
|                                |                                    |   |                                  |   |   |   |   |   |   |    |   |
| Depreciation and amortization:      |                                    |   |                                  |   |   |   |   |   |   |    |   |
| Regulated electric                  | $                                       | 77     |                                  |   | $      | 76     |   |   | $      | 231     |   |   | $ | 224   |   |
| Regulated gas                       | 9                                       |   |                                  | 9      |   |   | 26     |   |   | 26      |   |
| Total depreciation and amortization | $                                       | 86     |                                  |   | $      | 85     |   |   | $      | 257     |   |   | $ | 250   |   |
|                                |                                    |   |                                  |   |   |   |   |   |   |    |   |
| Operating income:                   |                                    |   |                                  |   |   |   |   |   |   |    |   |
| Regulated electric                  | $                                       | 130    |                                  |   | $      | 112    |   |   | $      | 266     |   |   | $ | 272   |   |
| Regulated gas                       | (3                                      | )      |                                  | (4     | )      |   | 43     |   |   | 43      |   |
| Nonregulated energy                 | 20                                      |   |                                  | 14     |   |   | 54     |   |   | 48      |   |
| Other                               | 1                                       |   |                                  | 1      |   |   | 1      |   |   | — |   |
| Total operating income              | $                                       | 148    |                                  |   | $      | 123    |   |   | $      | 364     |   |   | $ | 363   |   |

|                     |                         |        |                        |        |        |       |        |
|---------------------|-------------------------|--------|------------------------|--------|--------|-------|--------|
|                | As of                   |
|                | September 30, 2010 |   | December 31, 2009 |
| Total assets:       |                    |   |                   |
| Regulated electric  | $                       | 8,700  |                   |   | $      | 8,621 |   |
| Regulated gas       | 990                     |   |                   | 1,035  |   |
| Nonregulated energy | 220                     |   |                   | 221    |   |
| Other               | 30                      |   |                   | 31     |   |
| Total assets        | $                       | 9,940  |                   |   | $      | 9,908 |   |

|     |                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------|
| (1) | Total assets by operating segment reflect the assignment of goodwill to applicable reporting units. |

----

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

|                                |                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| •     | general economic, political and business conditions in the jurisdictions in which MidAmerican Energy's facilities operate; |

|                                |                                                                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | changes in federal, state and local governmental, legislative or regulatory requirements affecting MidAmerican Energy or the electric or gas utility industries; |

|                                |                                                                                                                                                                                                                                              |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | changes in, and compliance with, environmental laws, regulations, decisions and policies that could, among other items, increase operating and capital costs, reduce plant output, accelerate plant retirements or delay plant construction; |

|                                |                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| •     | the outcome of general rate cases and other proceedings conducted by regulatory commissions or other governmental and legal bodies; |

|                                |                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | changes in economic, industry or weather conditions, as well as demographic trends, that could affect customer growth and usage or supply of electricity and gas; |

|                                |                                                                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | a high degree of variance between actual and forecasted load and prices that could impact the hedging strategy and costs to balance electricity and load supply; |

|                                |                                                                                                                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | changes in prices, availability and demand for both purchases and sales of wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generation capacity and energy costs; |

|                                |                                                                                                           |
|--------------------------------|-----------------------------------------------------------------------------------------------------------|
| •     | the financial condition and creditworthiness of MidAmerican Energy'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 the London Interbank Offered Rate, the base interest rate for MidAmerican Energy's credit facilities; |

----

|                                |                                                 |
|--------------------------------|-------------------------------------------------|
| •     | changes in MidAmerican Energy's credit ratings; |

|                                |                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------|
| •     | performance of MidAmerican Energy's generating facilities, including unscheduled outages or repairs; |

|                                |                                       |
|--------------------------------|---------------------------------------|
| •     | risks relating to nuclear generation; |

|                                |                                                                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | the impact of derivative 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 derivative contracts; |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | increases in employee healthcare costs; |

|                                |                                                                                                                                                                                                                 |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | the impact of investment performance and changes in interest rates, legislation, healthcare cost trends, mortality and morbidity on pension and other postretirement benefits expense and funding requirements; |

|                                |                                                                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future generating facilities and infrastructure additions; |

|                                |                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| •     | the impact of new accounting guidance or changes in current accounting estimates and assumptions on consolidated financial results; |

|                                |                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| •     | other risks or unforeseen events, including litigation, wars, the effects of terrorism, embargoes and other catastrophic events; and |

|                                |                                                                                                                                                                                                                                                                     |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | other business or investment considerations that may be disclosed from time to time in MidAmerican Funding's or MidAmerican Energy's filings with the United States Securities and Exchange Commission ("SEC") or in other publicly disseminated written documents. |

----

|                                          |               |        |                   |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |    |        |        |   |        |
|------------------------------------------|---------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|----|--------|--------|---|--------|
|                                     | Third Quarter |   | First Nine Months |
|                                     | 2010          |   | 2009              |   | Change |   | 2010   |   | 2009   |   | Change |
| Gross margin (in millions):              |          |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenue                        | $             | 505    |              |   | $      | 451    |   |   | $      | 54     |   |   | 12     | %      |   | $      | 1,361  |   |   | $      | 1,286  |   |   | $ | 75 |   |   | 6 | %      |
| Less - cost of fuel, energy and capacity | 157           |   |              | 125    |   |   | 32     |   |   | 26     |   |   | 443    |   |   | 375    |   |   | 68     |   |   | 18     |   |
| Electric gross margin                    | $             | 348    |              |   | $      | 326    |   |   | $      | 22     |   |   | 7      |   |   | $      | 918    |   |   | $      | 911    |   |   | $ | 7  |   |   | 1 |   |
|                                     |          |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (Gigawatt hours ("GWh")):          |          |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                   | 5,956         |   |              | 5,318  |   |   | 638    |   |   | 12     | %      |   | 16,389 |   |   | 15,207 |   |   | 1,182  |   |   | 8      | %      |
| Wholesale                                | 3,115         |   |              | 2,981  |   |   | 134    |   |   | 4      |   |   | 9,829  |   |   | 9,523  |   |   | 306    |   |   | 3      |   |
| Total                                    | 9,071         |   |              | 8,299  |   |   | 772    |   |   | 9      |   |   | 26,218 |   |   | 24,730 |   |   | 1,488  |   |   | 6      |   |

|                                    |               |        |                   |        |        |        |        |        |        |        |        |        |        |         |        |        |        |        |        |        |        |        |        |   |    |        |        |   |         |
|------------------------------------|---------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|----|--------|--------|---|---------|
|                               | Third Quarter |   | First Nine Months |
|                               | 2010          |   | 2009              |   | Change |   | 2010   |   | 2009   |   | Change |
| Gross margin (in millions):        |          |   |              |   |   |   |   |   |   |   |   |   |   |    |   |
| Operating revenue                  | $             | 110    |              |   | $      | 85     |   |   | $      | 25     |   |   | 29     |  % |   | $      | 625    |   |   | $      | 591    |   |   | $ | 34 |   |   | 6 |  % |
| Less - cost of gas sold            | 67            |   |              | 45     |   |   | 22     |   |   | 49     |   |   | 447    |    |   | 417    |   |   | 30     |   |   | 7      |   |
| Gas gross margin                   | $             | 43     |              |   | $      | 40     |   |   | $      | 3      |   |   | 8      |    |   | $      | 178    |   |   | $      | 174    |   |   | $ | 4  |   |   | 2 |    |
|                               |          |   |              |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Sales (000's decatherms ("Dths")): |          |   |              |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Retail                             | 5,929         |   |              | 5,984  |   |   | (55    | )      |   | (1     | )%     |   | 53,917 |    |   | 54,749 |   |   | (832   | )      |   | (2     | )%     |
| Wholesale                          | 6,921         |   |              | 4,951  |   |   | 1,970  |   |   | 40     |   |   | 25,275 |    |   | 27,881 |   |   | (2,606 | )      |   | (9     | )      |
| Total                              | 12,850        |   |              | 10,935 |   |   | 1,915  |   |   | 18     |   |   | 79,192 |    |   | 82,630 |   |   | (3,438 | )      |   | (4     | )      |

----

|                                          |               |        |                   |        |        |        |        |        |        |        |         |        |        |         |        |        |        |        |        |        |        |        |         |   |    |        |        |   |         |
|------------------------------------------|---------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|---|----|--------|--------|---|---------|
|                                     | Third Quarter |   | First Nine Months |
|                                     | 2010          |   | 2009              |   | Change |   | 2010   |   | 2009   |   | Change  |
| Gross margin (in millions):              |          |   |              |   |   |   |   |   |   |   |    |   |   |    |   |
| Nonregulated operating revenue           | $             | 317    |              |   | $      | 275    |   |   | $      | 42     |    |   | 15     |  % |   | $      | 906    |   |   | $      | 831    |   |    | $ | 75 |   |   | 9 |  % |
| Less - nonregulated cost of sales        | 290           |   |              | 254    |   |   | 36     |   |   | 14     |    |   | 833    |    |   | 761    |   |   | 72     |   |   | 9      |    |
| Nonregulated gross margin                | $             | 27     |              |   | $      | 21     |   |   | $      | 6      |    |   | 29     |    |   | $      | 73     |   |   | $      | 70     |   |    | $ | 3  |   |   | 4 |    |
|                                     |          |   |              |   |   |   |   |   |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |
| Nonregulated electric sales (GWh)   | 3,210         |   |              | 2,830  |   |   | 380    |   |   | 13     |  % |   | 8,765  |    |   | 7,639  |   |   | 1,126  |   |   | 15     |  % |
|                                     |          |   |              |   |   |   |   |   |   |   |    |   |   |    |   |   |   |   |   |   |   |   |    |
| Nonregulated gas sales (000's Dths) | 7,435         |   |              | 7,825  |   |   | (390   | )      |   | (5     | )%      |   | 29,226 |    |   | 30,825 |   |   | (1,599 | )      |   | (5     | )%      |

----

----

----

----

----

----

|              |                                                            |
|--------------|------------------------------------------------------------|
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |

|              |                         |
|--------------|-------------------------|
| Item 4. | Controls and Procedures |

----

|              |                   |
|--------------|-------------------|
| Item 1. | Legal Proceedings |

|               |              |
|---------------|--------------|
| Item 1A. | Risk Factors |

|              |                                                             |
|--------------|-------------------------------------------------------------|
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |

|              |                                 |
|--------------|---------------------------------|
| Item 3. | Defaults Upon Senior Securities |

|              |                        |
|--------------|------------------------|
| Item 4. | (Removed and Reserved) |

|              |                   |
|--------------|-------------------|
| Item 5. | Other Information |

|              |          |
|--------------|----------|
| Item 6. | Exhibits |

----

|                         |                                              |
|-------------------------|----------------------------------------------|
|                    | MIDAMERICAN FUNDING, LLC                     |
|                    | MIDAMERICAN ENERGY COMPANY                   |
|                    | Registrants                                  |
|                    |                                         |
|                    |                                         |
|                    |                                         |
|                    |                                         |
|                    |                                         |
| Date:  November 5, 2010 | /s/  Thomas B. Specketer           |
|                    | Thomas B. Specketer                          |
|                    | Vice President and Controller                |
|                    | of MidAmerican Funding, LLC                  |
|                    | and MidAmerican Energy Company               |
|                    | (principal financial and accounting officer) |
|                    |                                         |
|                    |                                         |

----

|                     |                                                                                                      |
|---------------------|------------------------------------------------------------------------------------------------------|
| Exhibit No.         | Description                                                                                          |
|                |                                                                                                 |
| MidAmerican Energy  |
|                |                                                                                                 |
| 15                  | Awareness Letter of Independent Registered Public Accounting Firm.                                   |
|                |                                                                                                 |
| 31.1                | Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 31.2                | Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 32.1                | Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 32.2                | Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| MidAmerican Funding |
|                |                                                                                                 |
| 31.3                | Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 31.4                | Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 32.3                | Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |
| 32.4                | Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|                |                                                                                                 |