|                                                                                    |        |                                                              |        |                         |
|------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|-------------------------|
| 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 | 29     |
|          |                                                                                  |   |
| Item 3.       | Quantitative and Qualitative Disclosures About Market Risk                            | 38     |
|          |                                                                                  |   |
| Item 4.       | Controls and Procedures                                                               | 38     |
|          |                                                                                  |   |
| PART II       |
|          |                                                                                  |   |
| Item 1.       | Legal Proceedings                                                                     | 39     |
|          |                                                                                  |   |
| Item 1A.      | Risk Factors                                                                          | 39     |
|          |                                                                                  |   |
| Item 2.       | Unregistered Sales of Equity Securities and Use of Proceeds                           | 39     |
|          |                                                                                  |   |
| Item 3.       | Defaults Upon Senior Securities                                                       | 39     |
|          |                                                                                  |   |
| Item 4.       | (Removed and Reserved)                                                                | 39     |
|          |                                                                                  |   |
| Item 5.       | Other Information                                                                     | 39     |
|          |                                                                                  |   |
| Item 6.       | Exhibits                                                                              | 39     |
|          |                                                                                  |   |
| Signatures    |                                                                                  | 40     |
|          |                                                                                  |   |
| Exhibit Index |                                                                                  | 41     |

----

|              |                      |
|--------------|----------------------|
| 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 | 20     |
|                                                    |   |
| Consolidated Balance Sheets                             | 21     |
|                                                    |   |
| Consolidated Statements of Operations                   | 22     |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | 23     |
|                                                    |   |
| Consolidated Statements of Changes in Equity            | 24     |
|                                                    |   |
| Consolidated Statements of Comprehensive Income         | 25     |
|                                                    |   |
| Notes to Consolidated Financial Statements              | 26     |

----

----

|                                                |                    |        |                        |        |        |       |        |
|------------------------------------------------|--------------------|--------|------------------------|--------|--------|-------|--------|
|                                           | As of              |
|                                           | June 30, 2010 |   | December 31, 2009 |
| ASSETS                                         |
| Utility plant, net:                            |               |   |                   |
| Electric                                       | $                  | 9,351  |                   |   | $      | 9,286 |   |
| Gas                                            | 1,195              |   |                   | 1,184  |   |
|                                           | 10,546             |   |                   | 10,470 |   |
| Accumulated depreciation and amortization      | (3,720             | )      |                   | (3,641 | )      |
|                                           | 6,826              |   |                   | 6,829  |   |
| Construction work in progress                  | 65                 |   |                   | 114    |   |
| Total utility plant, net                       | 6,891              |   |                   | 6,943  |   |
| Current assets:                                |               |   |                   |
| Cash and cash equivalents                      | 162                |   |                   | 87     |   |
| Receivables, net                               | 353                |   |                   | 408    |   |
| Inventories                                    | 129                |   |                   | 158    |   |
| Other                                          | 70                 |   |                   | 93     |   |
| Total current assets                           | 714                |   |                   | 746    |   |
| Other assets:                                  |               |   |                   |
| Investments and nonregulated property, net     | 441                |   |                   | 447    |   |
| Regulatory assets                              | 455                |   |                   | 397    |   |
| Other                                          | 51                 |   |                   | 74     |   |
| Total other assets                             | 947                |   |                   | 918    |   |
| Total assets                                   | $                  | 8,552  |                   |   | $      | 8,607 |   |
|                                           |               |   |                   |
| CAPITALIZATION AND LIABILITIES                 |
| Capitalization:                                |               |   |                   |
| MidAmerican Energy common shareholder's equity | $                  | 2,824  |                   |   | $      | 2,929 |   |
| Preferred securities                           | 27                 |   |                   | 30     |   |
| Noncontrolling interests                       | 1                  |   |                   | 1      |   |
| Long-term debt, excluding current portion      | 2,865              |   |                   | 2,865  |   |
| Total capitalization                           | 5,717              |   |                   | 5,825  |   |
| Current liabilities:                           |               |   |                   |
| Accounts payable                               | 210                |   |                   | 259    |   |
| Taxes accrued                                  | 98                 |   |                   | 97     |   |
| Interest accrued                               | 44                 |   |                   | 44     |   |
| Other                                          | 99                 |   |                   | 90     |   |
| Total current liabilities                      | 451                |   |                   | 490    |   |
| Other liabilities:                             |               |   |                   |
| Deferred income taxes                          | 1,148              |   |                   | 1,057  |   |
| Investment tax credits                         | 33                 |   |                   | 34     |   |
| Asset retirement obligations                   | 212                |   |                   | 205    |   |
| Regulatory liabilities                         | 679                |   |                   | 683    |   |
| Other                                          | 312                |   |                   | 313    |   |
| Total other liabilities                        | 2,384              |   |                   | 2,292  |   |
| Total capitalization and liabilities           | $                  | 8,552  |                   |   | $      | 8,607 |   |

----

|                                            |                                    |        |                                 |         |        |        |         |        |        |         |        |        |   |     |        |
|--------------------------------------------|------------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|-----|--------|
|                                       | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                       | 2010                               |   | 2009                            |    | 2010   |   | 2009    |
| Operating revenue:                         |                               |   |                            |    |   |   |    |
| Regulated electric                         | $                                  | 427    |                            |    | $      | 391    |    |   | $      | 856     |   |   | $ | 835 |   |
| Regulated gas                              | 128                                |   |                            | 118     |   |   | 515     |   |   | 506     |   |
| Nonregulated                               | 270                                |   |                            | 252     |   |   | 589     |   |   | 556     |   |
| Total operating revenue                    | 825                                |   |                            | 761     |   |   | 1,960   |   |   | 1,897   |   |
|                                       |                               |   |                            |    |   |   |    |
| Operating costs and expenses:              |                               |   |                            |    |   |   |    |
| Regulated:                                 |                               |   |                            |    |   |   |    |
| Cost of fuel, energy and capacity          | 134                                |   |                            | 114     |   |   | 286     |   |   | 250     |   |
| Cost of gas sold                           | 82                                 |   |                            | 71      |   |   | 380     |   |   | 372     |   |
| Other operating expenses                   | 99                                 |   |                            | 99      |   |   | 198     |   |   | 205     |   |
| Maintenance                                | 49                                 |   |                            | 50      |   |   | 98      |   |   | 90      |   |
| Depreciation and amortization              | 86                                 |   |                            | 83      |   |   | 171     |   |   | 165     |   |
| Property and other taxes                   | 28                                 |   |                            | 25      |   |   | 56      |   |   | 54      |   |
|                                       | 478                                |   |                            | 442     |   |   | 1,189   |   |   | 1,136   |   |
| Nonregulated:                              |                               |   |                            |    |   |   |    |
| Cost of sales                              | 250                                |   |                            | 228     |   |   | 543     |   |   | 507     |   |
| Other                                      | 6                                  |   |                            | 7       |   |   | 12      |   |   | 13      |   |
|                                       | 256                                |   |                            | 235     |   |   | 555     |   |   | 520     |   |
| Total operating costs and expenses         | 734                                |   |                            | 677     |   |   | 1,744   |   |   | 1,656   |   |
|                                       |                               |   |                            |    |   |   |    |
| Operating income                           | 91                                 |   |                            | 84      |   |   | 216     |   |   | 241     |   |
|                                       |                               |   |                            |    |   |   |    |
| Non-operating income:                      |                               |   |                            |    |   |   |    |
| Interest and dividend income               | 1                                  |   |                            | 1       |   |   | 1       |   |   | 1       |   |
| Allowance for equity funds                 | —                            |   |                            | — |   |   | 2       |   |   | — |   |
| Other, net                                 | (4                                 | )      |                            | 5       |   |   | — |   |   | 5       |   |
| Total non-operating income                 | (3                                 | )      |                            | 6       |   |   | 3       |   |   | 6       |   |
|                                       |                               |   |                            |    |   |   |    |
| Fixed charges:                             |                               |   |                            |    |   |   |    |
| Interest on long-term debt                 | 38                                 |   |                            | 39      |   |   | 77      |   |   | 78      |   |
| Other interest expense                     | —                            |   |                            | — |   |   | 1       |   |   | 2       |   |
| Allowance for borrowed funds               | —                            |   |                            | — |   |   | (1      | )      |   | (1      | )      |
| Total fixed charges                        | 38                                 |   |                            | 39      |   |   | 77      |   |   | 79      |   |
|                                       |                               |   |                            |    |   |   |    |
| Income before income tax (benefit) expense | 50                                 |   |                            | 51      |   |   | 142     |   |   | 168     |   |
| Income tax (benefit) expense               | (6                                 | )      |                            | 5       |   |   | 3       |   |   | 23      |   |
|                                       |                               |   |                            |    |   |   |    |
| Net income                                 | 56                                 |   |                            | 46      |   |   | 139     |   |   | 145     |   |
| Preferred dividends                        | —                            |   |                            | 1       |   |   | — |   |   | 1       |   |
|                                       |                               |   |                            |    |   |   |    |
| Earnings on common stock                   | $                                  | 56     |                            |    | $      | 45     |    |   | $      | 139     |   |   | $ | 144 |   |

----

|                                                                                  |                                 |        |        |         |        |     |        |
|----------------------------------------------------------------------------------|---------------------------------|--------|--------|---------|--------|-----|--------|
|                                                                             | Six-Month PeriodsEnded June 30, |
|                                                                             | 2010                            |   | 2009   |
|                                                                             |                            |   |   |
| Cash flows from operating activities:                                            |                            |   |   |
| Net income                                                                       | $                               | 139    |   |    | $      | 145 |   |
| Adjustments to reconcile net income to net cash flows from operating activities: |                            |   |   |
| Depreciation and amortization                                                    | 171                             |   |   | 165     |   |
| Provision for deferred income taxes, net                                         | 41                              |   |   | 121     |   |
| Changes in other assets and liabilities                                          | 16                              |   |   | 15      |   |
| Other, net                                                                       | 8                               |   |   | 11      |   |
| Changes in other operating assets and liabilities:                               |                            |   |   |
| Receivables, net                                                                 | 57                              |   |   | 143     |   |
| Inventories                                                                      | 30                              |   |   | 13      |   |
| Derivative collateral, net                                                       | 16                              |   |   | 12      |   |
| Accounts payable                                                                 | (41                             | )      |   | (112    | )      |
| Taxes accrued                                                                    | 12                              |   |   | (31     | )      |
| Other current assets and liabilities                                             | 9                               |   |   | 3       |   |
| Net cash flows from operating activities                                         | 458                             |   |   | 485     |   |
|                                                                             |                            |   |   |
| Cash flows from investing activities:                                            |                            |   |   |
| Utility construction expenditures                                                | (127                            | )      |   | (235    | )      |
| Purchases of available-for-sale securities                                       | (45                             | )      |   | (180    | )      |
| Proceeds from sales of available-for-sale securities                             | 41                              |   |   | 167     |   |
| Decrease in restricted cash and short-term investments                           | 1                               |   |   | 3       |   |
| Other, net                                                                       | 1                               |   |   | 13      |   |
| Net cash flows from investing activities                                         | (129                            | )      |   | (232    | )      |
|                                                                             |                            |   |   |
| Cash flows from financing activities:                                            |                            |   |   |
| Dividends                                                                        | (251                            | )      |   | (1      | )      |
| Repurchase of preferred securities                                               | (3                              | )      |   | — |   |
| Net repayments of short-term debt                                                | —                         |   |   | (250    | )      |
| Net cash flows from financing activities                                         | (254                            | )      |   | (251    | )      |
|                                                                             |                            |   |   |
| Net change in cash and cash equivalents                                          | 75                              |   |   | 2       |   |
| Cash and cash equivalents at beginning of period                                 | 87                              |   |   | 9       |   |
| Cash and cash equivalents at end of period                                       | $                               | 162    |   |    | $      | 11  |   |

----

|                                    |                                         |        |                  |         |                                        |        |                     |        |                         |         |             |        |         |        |        |        |        |   |        |        |   |       |        |
|------------------------------------|-----------------------------------------|--------|------------------|---------|----------------------------------------|--------|---------------------|--------|-------------------------|---------|-------------|--------|---------|--------|--------|--------|--------|---|--------|--------|---|-------|--------|
|                               | 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                         | —                                 |   |             | 145     |                                   |   | —             |   |                    | — |        |   | — |   |   | 145    |   |
| Other comprehensive loss           | —                                 |   |             | — |                                   |   | (15                 | )      |                    | — |        |   | — |   |   | (15    | )      |
| Preferred dividends                | —                                 |   |             | (1      | )                                      |   | —             |   |                    | — |        |   | — |   |   | (1     | )      |
| Balance, June 30, 2009             | $                                       | 561    |             |    | $                                      | 2,212  |                |   | $                       | (75     | )           |   | $       | 30     |   |   | $      | 1 |   |   | $ | 2,729 |   |
|                               |                                    |   |             |    |                                   |   |                |   |                    |    |        |
| Balance, January 1, 2010      | $                                       | 561    |             |    | $                                      | 2,417  |                |   | $                       | (49     | )           |   | $       | 30     |   |   | $      | 1 |   |   | $ | 2,960 |   |
| Net income                         | —                                 |   |             | 139     |                                   |   | —             |   |                    | — |        |   | — |   |   | 139    |   |
| Other comprehensive income         | —                                 |   |             | — |                                   |   | 6                   |   |                    | — |        |   | — |   |   | 6      |   |
| Repurchase of preferred securities | 1                                       |   |             | — |                                   |   | —             |   |                    | (3      | )           |   | — |   |   | (2     | )      |
| Common dividends                   | —                                 |   |             | (250    | )                                      |   | —             |   |                    | — |        |   | — |   |   | (250   | )      |
| Preferred dividends                | —                                 |   |             | (1      | )                                      |   | —             |   |                    | — |        |   | — |   |   | (1     | )      |
| Balance, June 30, 2010        | $                                       | 562    |             |    | $                                      | 2,305  |                |   | $                       | (43     | )           |   | $       | 27     |   |   | $      | 1 |   |   | $ | 2,852 |   |

----

|                                                             |                                    |        |                                 |        |        |        |        |        |        |     |        |        |   |     |        |
|-------------------------------------------------------------|------------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|-----|--------|--------|---|-----|--------|
|                                                        | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                                        | 2010                               |   | 2009                            |   | 2010   |   | 2009   |
|                                                        |                               |   |                            |   |   |   |   |
| Net income                                                  | $                                  | 56     |                            |   | $      | 46     |   |   | $      | 139 |   |   | $ | 145 |   |
|                                                        |                               |   |                            |   |   |   |   |
| Other comprehensive income (loss):                          |                               |   |                            |   |   |   |   |
| Unrealized losses on available-for-sale securities:         |                               |   |                            |   |   |   |   |
| Unrealized losses during period-                            |                               |   |                            |   |   |   |   |
| Before income taxes                                         | (1                                 | )      |                            | (4     | )      |   | (4     | )      |   | (4  | )      |
| Income tax benefit                                          | —                            |   |                            | 1      |   |   | 1      |   |   | 1   |   |
| Net unrealized losses                                       | (1                                 | )      |                            | (3     | )      |   | (3     | )      |   | (3  | )      |
|                                                        |                               |   |                            |   |   |   |   |
| Unrealized gains (losses) on cash flow hedges:              |                               |   |                            |   |   |   |   |
| Unrealized gains (losses) during period-                    |                               |   |                            |   |   |   |   |
| Before income taxes                                         | 28                                 |   |                            | 6      |   |   | (10    | )      |   | (70 | )      |
| Income tax (expense) benefit                                | (11                                | )      |                            | (2     | )      |   | 4      |   |   | 29  |   |
|                                                        | 17                                 |   |                            | 4      |   |   | (6     | )      |   | (41 | )      |
| Less realized losses reflected in net income during period- |                               |   |                            |   |   |   |   |
| Before income taxes                                         | (13                                | )      |                            | (27    | )      |   | (24    | )      |   | (49 | )      |
| Income tax benefit                                          | 5                                  |   |                            | 11     |   |   | 9      |   |   | 20  |   |
|                                                        | (8                                 | )      |                            | (16    | )      |   | (15    | )      |   | (29 | )      |
| Net unrealized gains (losses)                               | 25                                 |   |                            | 20     |   |   | 9      |   |   | (12 | )      |
|                                                        |                               |   |                            |   |   |   |   |
| Other comprehensive income (loss)                           | 24                                 |   |                            | 17     |   |   | 6      |   |   | (15 | )      |
|                                                        |                               |   |                            |   |   |   |   |
| Comprehensive income                                        | $                                  | 80     |                            |   | $      | 63     |   |   | $      | 145 |   |   | $ | 130 |   |

----

----

|                                               |        |                                              |        |         |         |         |        |          |        |        |         |        |        |     |        |        |        |   |     |        |
|-----------------------------------------------|--------|----------------------------------------------|--------|---------|---------|---------|--------|----------|--------|--------|---------|--------|--------|-----|--------|--------|--------|---|-----|--------|
|                                          |   | Input Levels for FairValue Measurements |   |    |    |    |
|                                          |   | Level 1                                      |   | Level 2 |    | Level 3 |   | Other(1) |   | Total  |
| As of June 30, 2010:                          |   |                                         |   |    |    |    |   |     |   |   |
| Assets:                                       |   |                                         |   |    |    |    |   |     |   |   |
| Commodity derivatives                         |   | $                                            | 3      |    |    | $       | 17     |     |   | $      | 22      |   |   | $   | (16    | )      |   | $ | 26  |   |
| Investments in available-for-sale securities: |   |                                         |   |    |    |    |   |     |   |   |
| Money market mutual funds(2)                  |   | 145                                          |   |    | — |    |   | —  |   |   | — |   |   | 145 |   |
| Debt securities                               |   | 85                                           |   |    | 39      |    |   | 12       |   |   | — |   |   | 136 |   |
| Equity securities                             |   | 136                                          |   |    | — |    |   | —  |   |   | — |   |   | 136 |   |
|                                          |   | $                                            | 369    |    |    | $       | 56     |     |   | $      | 34      |   |   | $   | (16    | )      |   | $ | 443 |   |
| Liabilities:                                  |   |                                         |   |    |    |    |   |     |   |   |
| Commodity derivatives                         |   | $                                            | (7     | )       |    | $       | (73    | )        |   | $      | (6      | )      |   | $   | 30     |   |   | $ | (56 | )      |

|                                               |        |        |        |        |         |        |        |         |        |        |         |        |        |     |        |        |        |   |     |        |
|-----------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----|--------|--------|--------|---|-----|--------|
| 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)    | Primarily represents netting under master netting arrangements and a net cash collateral receivable of $14 million and $24 million as of June 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 June 30, |
|                                                                  | 2010                              |   | 2009           |
|                                                                  | CommodityDerivatives              |   | DebtSecurities |    | CommodityDerivatives |   | DebtSecurities |
|                                                                  |                              |   |           |    |                 |   |           |
| Beginning balance                                                     | $                                 | 27     |           |    | $                    | 13     |           |   | $      | 51      |   |   | $ | 16 |   |
| Changes included in earnings(1)                                       | (4                                | )      |           | — |                 |   | 1              |   |   | — |   |
| Changes in fair value recognized in other comprehensive income        | —                           |   |           | (1      | )                    |   | —        |   |   | (4      | )      |
| Changes in fair value recognized in regulatory assets and liabilities | —                           |   |           | — |                 |   | (10            | )      |   | — |   |
| Settlements                                                           | (7                                | )      |           | — |                 |   | (13            | )      |   | — |   |
| Ending balance                                                        | $                                 | 16     |           |    | $                    | 12     |           |   | $      | 29      |   |   | $ | 12 |   |

|                                                                       |                                 |        |                |         |                      |        |                |        |        |         |        |        |   |    |        |
|-----------------------------------------------------------------------|---------------------------------|--------|----------------|---------|----------------------|--------|----------------|--------|--------|---------|--------|--------|---|----|--------|
|                                                                  | Six-Month Period Ended June 30, |
|                                                                  | 2010                            |   | 2009           |
|                                                                  | CommodityDerivatives            |   | DebtSecurities |    | CommodityDerivatives |   | DebtSecurities |
|                                                                  |                            |   |           |    |                 |   |           |
| Beginning balance                                                     | $                               | 21     |           |    | $                    | 16     |           |   | $      | 40      |   |   | $ | 16 |   |
| Changes included in earnings(1)                                       | 5                               |   |           | — |                 |   | 19             |   |   | — |   |
| Changes in fair value recognized in other comprehensive income        | —                         |   |           | (4      | )                    |   | —        |   |   | (4      | )      |
| Changes in fair value recognized in regulatory assets and liabilities | 3                               |   |           | — |                 |   | 5              |   |   | — |   |
| Settlements                                                           | (13                             | )      |           | — |                 |   | (35            | )      |   | — |   |
| Ending balance                                                        | $                               | 16     |           |    | $                    | 12     |           |   | $      | 29      |   |   | $ | 12 |   |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Changes included in earnings are reported as nonregulated operating revenue on the Consolidated Statements of Operations. For commodity derivatives held as of June 30, 2010 and 2009, net unrealized gains (losses) included in earnings for the three-month periods ended June 30, 2010 and 2009, totaled $(4) million and $1 million, respectively, and for the six-month periods ended June 30, 2010 and 2009, totaled $5 million and $15 million, respectively. |

----

|                |                     |        |                         |        |               |        |                 |        |   |       |        |        |   |       |        |
|----------------|---------------------|--------|-------------------------|--------|---------------|--------|-----------------|--------|---|-------|--------|--------|---|-------|--------|
|           | As of June 30, 2010 |   | As of December 31, 2009 |
|           | CarryingValue       |   | Fair Value         |   | CarryingValue |   | Fair Value |
|           |                |   |                    |   |          |   |            |
| Long-term debt | $                   | 2,865  |                    |   | $             | 3,206  |            |   | $ | 2,865 |   |   | $ | 3,054 |   |

----

|                                            |                      |        |                    |         |                           |        |                         |        |        |     |        |        |     |         |        |        |   |     |        |
|--------------------------------------------|----------------------|--------|--------------------|---------|---------------------------|--------|-------------------------|--------|--------|-----|--------|--------|-----|---------|--------|--------|---|-----|--------|
|                                       | CurrentAssets -Other |   | OtherAssets -Other |    | CurrentLiabilities -Other |   | OtherLiabilities -Other |   | Total  |
| As of June 30, 2010:                       |                 |   |               |    |                      |   |                    |   |   |
| Not designated as hedging contracts(1)(2): |                 |   |               |    |                      |   |                    |   |   |
| Commodity assets                           | $                    | 27     |               |    | $                         | 4      |                    |   | $      | 6   |   |   | $   | — |   |   | $ | 37  |   |
| Commodity liabilities                      | (5                   | )      |               | — |                      |   | (22                     | )      |   | (6  | )      |   | (33 | )       |
| Total                                      | 22                   |   |               | 4       |                      |   | (16                     | )      |   | (6  | )      |   | 4   |    |
|                                       |                 |   |               |    |                      |   |                    |   |   |
| Designated as hedging contracts(1):        |                 |   |               |    |                      |   |                    |   |   |
| Commodity assets                           | —              |   |               | 1       |                      |   | 3                       |   |   | 1   |   |   | 5   |    |
| Commodity liabilities                      | —              |   |               | (1      | )                         |   | (37                     | )      |   | (15 | )      |   | (53 | )       |
| Total                                      | —              |   |               | — |                      |   | (34                     | )      |   | (14 | )      |   | (48 | )       |
|                                       |                 |   |               |    |                      |   |                    |   |   |
| Total derivatives                          | 22                   |   |               | 4       |                      |   | (50                     | )      |   | (20 | )      |   | (44 | )       |
| Cash collateral receivable                 | —              |   |               | — |                      |   | 13                      |   |   | 1   |   |   | 14  |    |
| Total derivatives - net basis              | $                    | 22     |               |    | $                         | 4      |                    |   | $      | (37 | )      |   | $   | (19     | )      |   | $ | (30 | )      |

|                                            |         |        |        |         |        |        |        |        |        |     |        |        |     |         |        |        |   |     |        |
|--------------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|-----|--------|--------|-----|---------|--------|--------|---|-----|--------|
| 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 June 30, 2010 and December 31, 2009, a net regulatory liability of $3 million and $14 million, respectively, was recorded related to the net derivative asset of $4 million and $19 million, respectively. |

----

|                                                                         |                     |        |                   |         |        |        |        |        |        |     |        |        |   |     |        |
|-------------------------------------------------------------------------|---------------------|--------|-------------------|---------|--------|--------|--------|--------|--------|-----|--------|--------|---|-----|--------|
|                                                                    | Three-Month Periods |   | Six-Month Periods |
|                                                                    | Ended June 30,      |   | Ended June 30,    |
|                                                                    | 2010                |   | 2009              |    | 2010   |   | 2009   |
|                                                                    |                |   |              |    |   |   |   |
| Beginning balance                                                       | $                   | (28    | )                 |    | $      | (70    | )      |   | $      | (14 | )      |   | $ | 4   |   |
| Changes in fair value recognized in net regulatory assets (liabilities) | 15                  |   |              | (7      | )      |   | (2     | )      |   | (35 | )      |
| Gains reclassified to earnings - operating revenue                      | 7                   |   |              | 18      |   |   | 8      |   |   | 31  |   |
| Gains reclassified to earnings - cost of fuel, energy and capacity      | 4                   |   |              | 4       |   |   | 10     |   |   | 8   |   |
| Losses reclassified to earnings - cost of gas sold                      | (1                  | )      |              | — |   |   | (5     | )      |   | (63 | )      |
| Ending balance                                                          | $                   | (3     | )                 |    | $      | (55    | )      |   | $      | (3  | )      |   | $ | (55 | )      |

|                                |                     |        |                   |         |        |        |        |        |        |     |        |        |   |    |        |
|--------------------------------|---------------------|--------|-------------------|---------|--------|--------|--------|--------|--------|-----|--------|--------|---|----|--------|
|                           | Three-Month Periods |   | Six-Month Periods |
|                           | Ended June 30,      |   | Ended June 30,    |
|                           | 2010                |   | 2009              |    | 2010   |   | 2009   |
|                           |                |   |              |    |   |   |   |
| Nonregulated operating revenue | $                   | 1      |              |    | $      | 1      |   |   | $      | 11  |   |   | $ | 19 |   |
| Regulated cost of gas sold     | —             |   |              | — |   |   | 3      |   |   | 1   |   |
| Nonregulated cost of sales     | (3                  | )      |              | 2       |   |   | (10    | )      |   | (13 | )      |
| Total                          | $                   | (2     | )                 |    | $      | 3      |   |   | $      | 4   |   |   | $ | 7  |   |

----

|                                                              |                     |        |                   |        |        |        |        |        |        |     |        |        |   |     |        |
|--------------------------------------------------------------|---------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|-----|--------|--------|---|-----|--------|
|                                                         | Three-Month Periods |   | Six-Month Periods |
|                                                         | Ended June 30,      |   | Ended June 30,    |
|                                                         | 2010                |   | 2009              |   | 2010   |   | 2009   |
|                                                         |                |   |              |   |   |   |   |
| Beginning balance                                            | $                   | 90     |              |   | $      | 134    |   |   | $      | 63  |   |   | $ | 80  |   |
| (Gains) losses recognized in OCI                             | (28                 | )      |              | (6     | )      |   | 10     |   |   | 70  |   |
| Losses reclassified to earnings - nonregulated cost of sales | (13                 | )      |              | (27    | )      |   | (24    | )      |   | (49 | )      |
| Ending balance                                               | $                   | 49     |              |   | $      | 101    |   |   | $      | 49  |   |   | $ | 101 |   |

|                       |                 |        |        |        |        |    |        |
|-----------------------|-----------------|--------|--------|--------|--------|----|--------|
|                  | Unit of Measure |   | 2010   |   | 2009   |
|                  |            |   |   |   |   |
| Electricity purchases | Megawatt hours  |   | 4      |   |   | 4  |   |
| Natural gas purchases | Decatherms      |   | 26     |   |   | 22 |   |
| Fuel purchases        | Gallons         |   | 6      |   |   | 4  |   |

----

|                                |                                    |        |                                 |        |        |        |         |        |        |         |        |        |   |   |        |
|--------------------------------|------------------------------------|--------|---------------------------------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---|---|--------|
|                           | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                           | 2010                               |   | 2009                            |   | 2010   |   | 2009    |
| Pension:                       |                               |   |                            |   |   |   |    |
| Service cost                   | $                                  | 4      |                            |   | $      | 5      |    |   | $      | 8       |   |   | $ | 9 |   |
| Interest cost                  | 10                                 |   |                            | 13     |   |   | 20      |   |   | 21      |   |
| Expected return on plan assets | (11                                | )      |                            | (13    | )      |   | (20     | )      |   | (21     | )      |
| Net amortization               | —                            |   |                            | (1     | )      |   | — |   |   | (1      | )      |
| Net periodic benefit cost      | $                                  | 3      |                            |   | $      | 4      |    |   | $      | 8       |   |   | $ | 8 |   |
|                           |                               |   |                            |   |   |   |    |
| Other Postretirement:          |                               |   |                            |   |   |   |    |
| Service cost                   | $                                  | 1      |                            |   | $      | 1      |    |   | $      | 2       |   |   | $ | 2 |   |
| Interest cost                  | 2                                  |   |                            | 2      |   |   | 5       |   |   | 5       |   |
| Expected return on plan assets | (3                                 | )      |                            | (3     | )      |   | (6      | )      |   | (5      | )      |
| Net amortization               | (1                                 | )      |                            | (2     | )      |   | (1      | )      |   | (1      | )      |
| Net periodic benefit cost      | $                                  | (1     | )                               |   | $      | (2     | )       |   | $      | — |   |   | $ | 1 |   |

----

|                                                     |                                    |        |                                 |         |        |        |        |        |        |         |        |
|-----------------------------------------------------|------------------------------------|--------|---------------------------------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                                | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 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                                  |   |                            | 9       |   |   | 7      |   |   | 8       |   |
| Renewable electricity production tax credits        | (26                                | )      |                            | (27     | )      |   | (25    | )      |   | (21     | )      |
| Tax method change                                   | (14                                | )      |                            | — |   |   | (5     | )      |   | — |   |
| Effects of ratemaking                               | (18                                | )      |                            | (10     | )      |   | (10    | )      |   | (7      | )      |
| Other, net                                          | 4                                  |   |                            | 4       |   |   | 1      |   |   | — |   |
| Effective income tax rate                           | (12                                | )%     |                            | 10      | %      |   | 2      | %      |   | 14      | %      |

|                                                                                 |                    |        |                        |        |   |     |   |
|---------------------------------------------------------------------------------|--------------------|--------|------------------------|--------|---|-----|---|
|                                                                            | As of              |
|                                                                            | June 30, 2010 |   | December 31, 2009 |
|                                                                            |               |   |                   |
| Fair value adjustment on cash flow hedges, net of tax of $(20) and $(25)        | $                  | (29    | )                      |   | $ | (38 | ) |
| Unrealized losses on available-for-sale securities, net of tax of $(9) and $(8) | (14                | )      |                   | (11    | ) |
| Total accumulated other comprehensive loss, net                                 | $                  | (43    | )                      |   | $ | (49 | ) |

----

|                                     |                                    |        |                                 |        |        |        |        |        |        |       |        |        |   |       |        |
|-------------------------------------|------------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|-------|--------|--------|---|-------|--------|
|                                | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                | 2010                               |   | 2009                            |   | 2010   |   | 2009   |
| Operating revenue:                  |                               |   |                            |   |   |   |   |
| Regulated electric                  | $                                  | 427    |                            |   | $      | 391    |   |   | $      | 856   |   |   | $ | 835   |   |
| Regulated gas                       | 128                                |   |                            | 118    |   |   | 515    |   |   | 506   |   |
| Nonregulated energy                 | 270                                |   |                            | 252    |   |   | 589    |   |   | 556   |   |
| Total operating revenue             | $                                  | 825    |                            |   | $      | 761    |   |   | $      | 1,960 |   |   | $ | 1,897 |   |
|                                |                               |   |                            |   |   |   |   |
| Depreciation and amortization:      |                               |   |                            |   |   |   |   |
| Regulated electric                  | $                                  | 78     |                            |   | $      | 74     |   |   | $      | 154   |   |   | $ | 148   |   |
| Regulated gas                       | 8                                  |   |                            | 9      |   |   | 17     |   |   | 17    |   |
| Total depreciation and amortization | $                                  | 86     |                            |   | $      | 83     |   |   | $      | 171   |   |   | $ | 165   |   |
|                                |                               |   |                            |   |   |   |   |
| Operating income:                   |                               |   |                            |   |   |   |   |
| Regulated electric                  | $                                  | 74     |                            |   | $      | 63     |   |   | $      | 136   |   |   | $ | 160   |   |
| Regulated gas                       | 3                                  |   |                            | 4      |   |   | 46     |   |   | 47    |   |
| Nonregulated energy                 | 14                                 |   |                            | 17     |   |   | 34     |   |   | 34    |   |
| Total operating income              | $                                  | 91     |                            |   | $      | 84     |   |   | $      | 216   |   |   | $ | 241   |   |

|                     |                    |        |                        |        |        |       |        |
|---------------------|--------------------|--------|------------------------|--------|--------|-------|--------|
|                | As of              |
|                | June 30, 2010 |   | December 31, 2009 |
| Total assets:       |               |   |                   |
| Regulated electric  | $                  | 7,474  |                   |   | $      | 7,430 |   |
| Regulated gas       | 869                |   |                   | 956    |   |
| Nonregulated energy | 209                |   |                   | 221    |   |
| Total assets        | $                  | 8,552  |                   |   | $      | 8,607 |   |

----

----

|                                            |                    |        |                        |         |        |       |        |
|--------------------------------------------|--------------------|--------|------------------------|---------|--------|-------|--------|
|                                       | As of              |
|                                       | June 30, 2010 |   | December 31, 2009 |
| ASSETS                                     |
| Utility plant, net:                        |               |   |                   |
| Electric                                   | $                  | 9,351  |                   |    | $      | 9,286 |   |
| Gas                                        | 1,195              |   |                   | 1,184   |   |
|                                       | 10,546             |   |                   | 10,470  |   |
| Accumulated depreciation and amortization  | (3,720             | )      |                   | (3,641  | )      |
|                                       | 6,826              |   |                   | 6,829   |   |
| Construction work in progress              | 65                 |   |                   | 114     |   |
| Total utility plant, net                   | 6,891              |   |                   | 6,943   |   |
| Current assets:                            |               |   |                   |
| Cash and cash equivalents                  | 162                |   |                   | 88      |   |
| Receivables, net                           | 356                |   |                   | 412     |   |
| Inventories                                | 129                |   |                   | 158     |   |
| Other                                      | 72                 |   |                   | 93      |   |
| Total current assets                       | 719                |   |                   | 751     |   |
| Other assets:                              |               |   |                   |
| Investments and nonregulated property, net | 467                |   |                   | 472     |   |
| Goodwill                                   | 1,270              |   |                   | 1,270   |   |
| Regulatory assets                          | 455                |   |                   | 397     |   |
| Other                                      | 51                 |   |                   | 75      |   |
| Total other assets                         | 2,243              |   |                   | 2,214   |   |
| Total assets                               | $                  | 9,853  |                   |    | $      | 9,908 |   |
|                                       |               |   |                   |
| CAPITALIZATION AND LIABILITIES             |
| Capitalization:                            |               |   |                   |
| MidAmerican Funding member's equity        | $                  | 3,565  |                   |    | $      | 3,428 |   |
| Noncontrolling interests                   | 28                 |   |                   | 31      |   |
| Long-term debt, excluding current portion  | 3,190              |   |                   | 3,390   |   |
| Total capitalization                       | 6,783              |   |                   | 6,849   |   |
| Current liabilities:                       |               |   |                   |
| Short-term debt                            | 2                  |   |                   | — |   |
| Current portion of long-term debt          | 200                |   |                   | — |   |
| Note payable to affiliate                  | 13                 |   |                   | 254     |   |
| Accounts payable                           | 210                |   |                   | 259     |   |
| Taxes accrued                              | 98                 |   |                   | 98      |   |
| Interest accrued                           | 56                 |   |                   | 56      |   |
| Other                                      | 98                 |   |                   | 90      |   |
| Total current liabilities                  | 677                |   |                   | 757     |   |
| Other liabilities:                         |               |   |                   |
| Deferred income taxes                      | 1,147              |   |                   | 1,053   |   |
| Investment tax credits                     | 33                 |   |                   | 34      |   |
| Asset retirement obligations               | 212                |   |                   | 205     |   |
| Regulatory liabilities                     | 679                |   |                   | 683     |   |
| Other                                      | 322                |   |                   | 327     |   |
| Total other liabilities                    | 2,393              |   |                   | 2,302   |   |
| Total capitalization and liabilities       | $                  | 9,853  |                   |    | $      | 9,908 |   |

----

|                                                     |                                    |        |                                 |         |        |        |         |        |        |         |        |        |   |     |        |
|-----------------------------------------------------|------------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|-----|--------|
|                                                | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                                | 2010                               |   | 2009                            |    | 2010   |   | 2009    |
| Operating revenue:                                  |                               |   |                            |    |   |   |    |
| Regulated electric                                  | $                                  | 427    |                            |    | $      | 391    |    |   | $      | 856     |   |   | $ | 835 |   |
| Regulated gas                                       | 128                                |   |                            | 118     |   |   | 515     |   |   | 506     |   |
| Nonregulated                                        | 272                                |   |                            | 254     |   |   | 591     |   |   | 558     |   |
| Total operating revenue                             | 827                                |   |                            | 763     |   |   | 1,962   |   |   | 1,899   |   |
|                                                |                               |   |                            |    |   |   |    |
| Operating costs and expenses:                       |                               |   |                            |    |   |   |    |
| Regulated:                                          |                               |   |                            |    |   |   |    |
| Cost of fuel, energy and capacity                   | 134                                |   |                            | 114     |   |   | 286     |   |   | 250     |   |
| Cost of gas sold                                    | 82                                 |   |                            | 71      |   |   | 380     |   |   | 372     |   |
| Other operating expenses                            | 99                                 |   |                            | 99      |   |   | 198     |   |   | 205     |   |
| Maintenance                                         | 49                                 |   |                            | 50      |   |   | 98      |   |   | 90      |   |
| Depreciation and amortization                       | 86                                 |   |                            | 83      |   |   | 171     |   |   | 165     |   |
| Property and other taxes                            | 28                                 |   |                            | 25      |   |   | 56      |   |   | 54      |   |
|                                                | 478                                |   |                            | 442     |   |   | 1,189   |   |   | 1,136   |   |
| Nonregulated:                                       |                               |   |                            |    |   |   |    |
| Cost of sales                                       | 250                                |   |                            | 229     |   |   | 543     |   |   | 508     |   |
| Other                                               | 8                                  |   |                            | 8       |   |   | 14      |   |   | 15      |   |
|                                                | 258                                |   |                            | 237     |   |   | 557     |   |   | 523     |   |
| Total operating costs and expenses                  | 736                                |   |                            | 679     |   |   | 1,746   |   |   | 1,659   |   |
|                                                |                               |   |                            |    |   |   |    |
| Operating income                                    | 91                                 |   |                            | 84      |   |   | 216     |   |   | 240     |   |
|                                                |                               |   |                            |    |   |   |    |
| Non-operating income:                               |                               |   |                            |    |   |   |    |
| Interest and dividend income                        | 1                                  |   |                            | 1       |   |   | 1       |   |   | 2       |   |
| Allowance for equity funds                          | —                            |   |                            | — |   |   | 2       |   |   | — |   |
| Other, net                                          | —                            |   |                            | 4       |   |   | 4       |   |   | 5       |   |
| Total non-operating income                          | 1                                  |   |                            | 5       |   |   | 7       |   |   | 7       |   |
|                                                |                               |   |                            |    |   |   |    |
| Fixed charges:                                      |                               |   |                            |    |   |   |    |
| Interest on long-term debt                          | 47                                 |   |                            | 48      |   |   | 95      |   |   | 98      |   |
| Other interest expense                              | —                            |   |                            | — |   |   | 1       |   |   | 2       |   |
| Allowance for borrowed funds                        | —                            |   |                            | — |   |   | (1      | )      |   | (1      | )      |
| Total fixed charges                                 | 47                                 |   |                            | 48      |   |   | 95      |   |   | 99      |   |
|                                                |                               |   |                            |    |   |   |    |
| Income before income tax (benefit) expense          | 45                                 |   |                            | 41      |   |   | 128     |   |   | 148     |   |
| Income tax (benefit) expense                        | (9                                 | )      |                            | 1       |   |   | (3      | )      |   | 15      |   |
|                                                |                               |   |                            |    |   |   |    |
| Net income                                          | 54                                 |   |                            | 40      |   |   | 131     |   |   | 133     |   |
| Net income attributable to noncontrolling interests | —                            |   |                            | 1       |   |   | — |   |   | 1       |   |
|                                                |                               |   |                            |    |   |   |    |
| Net income attributable to MidAmerican Funding      | $                                  | 54     |                            |    | $      | 39     |    |   | $      | 131     |   |   | $ | 132 |   |

----

|                                                                                  |                                 |        |        |         |        |     |        |
|----------------------------------------------------------------------------------|---------------------------------|--------|--------|---------|--------|-----|--------|
|                                                                             | Six-Month PeriodsEnded June 30, |
|                                                                             | 2010                            |   | 2009   |
| Cash flows from operating activities:                                            |                            |   |   |
| Net income                                                                       | $                               | 131    |   |    | $      | 133 |   |
| Adjustments to reconcile net income to net cash flows from operating activities: |                            |   |   |
| Depreciation and amortization                                                    | 171                             |   |   | 165     |   |
| Provision for deferred income taxes, net                                         | 43                              |   |   | 120     |   |
| Changes in other assets and liabilities                                          | 16                              |   |   | 15      |   |
| Other, net                                                                       | 3                               |   |   | 13      |   |
| Changes in other operating assets and liabilities:                               |                            |   |   |
| Receivables, net                                                                 | 57                              |   |   | 144     |   |
| Inventories                                                                      | 30                              |   |   | 13      |   |
| Derivative collateral, net                                                       | 16                              |   |   | 12      |   |
| Accounts payable                                                                 | (41                             | )      |   | (112    | )      |
| Taxes accrued                                                                    | 11                              |   |   | (31     | )      |
| Other current assets and liabilities                                             | 9                               |   |   | — |   |
| Net cash flows from operating activities                                         | 446                             |   |   | 472     |   |
|                                                                             |                            |   |   |
| Cash flows from investing activities:                                            |                            |   |   |
| Utility construction expenditures                                                | (127                            | )      |   | (235    | )      |
| Purchases of available-for-sale securities                                       | (45                             | )      |   | (180    | )      |
| Proceeds from sales of available-for-sale securities                             | 41                              |   |   | 167     |   |
| Decrease in restricted cash and short-term investments                           | 1                               |   |   | 3       |   |
| Other, net                                                                       | 1                               |   |   | 13      |   |
| Net cash flows from investing activities                                         | (129                            | )      |   | (232    | )      |
|                                                                             |                            |   |   |
| Cash flows from financing activities:                                            |                            |   |   |
| Dividends                                                                        | (1                              | )      |   | (1      | )      |
| Repayments of long-term debt                                                     | —                         |   |   | (175    | )      |
| Repurchase of preferred securities of subsidiary                                 | (3                              | )      |   | — |   |
| Net change in note payable to affiliate                                          | (241                            | )      |   | 188     |   |
| Net proceeds from (repayments of) short-term debt                                | 2                               |   |   | (250    | )      |
| Net cash flows from financing activities                                         | (243                            | )      |   | (238    | )      |
|                                                                             |                            |   |   |
| Net change in cash and cash equivalents                                          | 74                              |   |   | 2       |   |
| Cash and cash equivalents at beginning of period                                 | 88                              |   |   | 10      |   |
| Cash and cash equivalents at end of period                                       | $                               | 162    |   |    | $      | 12  |   |

----

|                                                  |                                     |        |                  |         |                                        |        |                         |        |             |         |        |        |     |        |        |        |   |       |        |
|--------------------------------------------------|-------------------------------------|--------|------------------|---------|----------------------------------------|--------|-------------------------|--------|-------------|---------|--------|--------|-----|--------|--------|--------|---|-------|--------|
|                                             | 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                                       | —                             |   |             | 132     |                                   |   | —                 |   |        | 1       |   |   | 133 |   |
| Other comprehensive loss                         | —                             |   |             | — |                                   |   | (15                     | )      |        | — |   |   | (15 | )      |
| Distributions                                    | —                             |   |             | — |                                   |   | —                 |   |        | (1      | )      |   | (1  | )      |
| Balance, June 30, 2009                           | $                                   | 1,670  |             |    | $                                      | 1,603  |                    |   | $           | (75     | )      |   | $   | 31     |   |   | $ | 3,229 |   |
|                                             |                                |   |             |    |                                   |   |                    |   |        |
| Balance, January 1, 2010                    | $                                   | 1,679  |             |    | $                                      | 1,798  |                    |   | $           | (49     | )      |   | $   | 31     |   |   | $ | 3,459 |   |
| Net income                                       | —                             |   |             | 131     |                                   |   | —                 |   |        | — |   |   | 131 |   |
| Other comprehensive income                       | —                             |   |             | — |                                   |   | 6                       |   |        | — |   |   | 6   |   |
| Repurchase of preferred securities of subsidiary | —                             |   |             | — |                                   |   | —                 |   |        | (2      | )      |   | (2  | )      |
| Distributions                                    | —                             |   |             | — |                                   |   | —                 |   |        | (1      | )      |   | (1  | )      |
| Balance, June 30, 2010                           | $                                   | 1,679  |             |    | $                                      | 1,929  |                    |   | $           | (43     | )      |   | $   | 28     |   |   | $ | 3,593 |   |

----

|                                                               |                                    |        |                                 |        |        |        |         |        |        |     |        |        |   |     |        |
|---------------------------------------------------------------|------------------------------------|--------|---------------------------------|--------|--------|--------|---------|--------|--------|-----|--------|--------|---|-----|--------|
|                                                          | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                                          | 2010                               |   | 2009                            |   | 2010   |   | 2009    |
|                                                          |                               |   |                            |   |   |   |    |
| Net income                                                    | $                                  | 54     |                            |   | $      | 40     |    |   | $      | 131 |   |   | $ | 133 |   |
|                                                          |                               |   |                            |   |   |   |    |
| Other comprehensive income (loss):                            |                               |   |                            |   |   |   |    |
| Unrealized losses on available-for-sale securities:           |                               |   |                            |   |   |   |    |
| Unrealized losses during period-                              |                               |   |                            |   |   |   |    |
| Before income taxes                                           | (1                                 | )      |                            | (4     | )      |   | (4      | )      |   | (4  | )      |
| Income tax benefit                                            | —                            |   |                            | 1      |   |   | 1       |   |   | 1   |   |
| Net unrealized losses                                         | (1                                 | )      |                            | (3     | )      |   | (3      | )      |   | (3  | )      |
|                                                          |                               |   |                            |   |   |   |    |
| Unrealized gains (losses) on cash flow hedges:                |                               |   |                            |   |   |   |    |
| Unrealized gains (losses) during period-                      |                               |   |                            |   |   |   |    |
| Before income taxes                                           | 28                                 |   |                            | 6      |   |   | (10     | )      |   | (70 | )      |
| Income tax (expense) benefit                                  | (11                                | )      |                            | (2     | )      |   | 4       |   |   | 29  |   |
|                                                          | 17                                 |   |                            | 4      |   |   | (6      | )      |   | (41 | )      |
| Less realized losses reflected in net income during period-   |                               |   |                            |   |   |   |    |
| Before income taxes                                           | (13                                | )      |                            | (27    | )      |   | (24     | )      |   | (49 | )      |
| Income tax benefit                                            | 5                                  |   |                            | 11     |   |   | 9       |   |   | 20  |   |
|                                                          | (8                                 | )      |                            | (16    | )      |   | (15     | )      |   | (29 | )      |
| Net unrealized gains (losses)                                 | 25                                 |   |                            | 20     |   |   | 9       |   |   | (12 | )      |
|                                                          |                               |   |                            |   |   |   |    |
| Other comprehensive income (loss)                             | 24                                 |   |                            | 17     |   |   | 6       |   |   | (15 | )      |
|                                                          |                               |   |                            |   |   |   |    |
| Comprehensive income                                          | 78                                 |   |                            | 57     |   |   | 137     |   |   | 118 |   |
| Comprehensive income attributable to noncontrolling interests | —                            |   |                            | 1      |   |   | — |   |   | 1   |   |
|                                                          |                               |   |                            |   |   |   |    |
| Comprehensive income attributable to MidAmerican Funding      | $                                  | 78     |                            |   | $      | 56     |    |   | $      | 137 |   |   | $ | 117 |   |

----

|                |                     |        |                         |        |               |        |            |        |   |       |        |        |   |       |        |
|----------------|---------------------|--------|-------------------------|--------|---------------|--------|------------|--------|---|-------|--------|--------|---|-------|--------|
|           | As of June 30, 2010 |   | As of December 31, 2009 |
|           | CarryingValue       |   | Fair Value              |   | CarryingValue |   | Fair Value |
|           |                |   |                    |   |          |   |       |
| Long-term debt | $                   | 3,390  |                    |   | $             | 3,800  |       |   | $ | 3,390 |   |   | $ | 3,634 |   |

----

|                                                     |                                    |        |                                 |         |        |        |        |        |        |         |        |
|-----------------------------------------------------|------------------------------------|--------|---------------------------------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                                | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 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        | (28                                | )      |                            | (34     | )      |   | (28    | )      |   | (24     | )      |
| Tax method change                                   | (15                                | )      |                            | — |   |   | (5     | )      |   | — |   |
| Effects of ratemaking                               | (19                                | )      |                            | (13     | )      |   | (11    | )      |   | (8      | )      |
| Other, net                                          | —                            |   |                            | 5       |   |   | 1      |   |   | — |   |
| Effective income tax rate                           | (20                                | )%     |                            | 2       | %      |   | (2     | )%     |   | 10      | %      |

----

|                                     |                                    |        |                                 |         |        |        |         |        |        |       |        |        |   |       |        |
|-------------------------------------|------------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|-------|--------|--------|---|-------|--------|
|                                | Three-Month Periods Ended June 30, |   | Six-Month PeriodsEnded June 30, |
|                                | 2010                               |   | 2009                            |    | 2010   |   | 2009    |
| Operating revenue:                  |                               |   |                            |    |   |   |    |
| Regulated electric                  | $                                  | 427    |                            |    | $      | 391    |    |   | $      | 856   |   |   | $ | 835   |   |
| Regulated gas                       | 128                                |   |                            | 118     |   |   | 515     |   |   | 506   |   |
| Nonregulated energy                 | 270                                |   |                            | 252     |   |   | 589     |   |   | 556   |   |
| Other                               | 2                                  |   |                            | 2       |   |   | 2       |   |   | 2     |   |
| Total operating revenue             | $                                  | 827    |                            |    | $      | 763    |    |   | $      | 1,962 |   |   | $ | 1,899 |   |
|                                |                               |   |                            |    |   |   |    |
| Depreciation and amortization:      |                               |   |                            |    |   |   |    |
| Regulated electric                  | $                                  | 78     |                            |    | $      | 74     |    |   | $      | 154   |   |   | $ | 148   |   |
| Regulated gas                       | 8                                  |   |                            | 9       |   |   | 17      |   |   | 17    |   |
| Total depreciation and amortization | $                                  | 86     |                            |    | $      | 83     |    |   | $      | 171   |   |   | $ | 165   |   |
|                                |                               |   |                            |    |   |   |    |
| Operating income:                   |                               |   |                            |    |   |   |    |
| Regulated electric                  | $                                  | 74     |                            |    | $      | 63     |    |   | $      | 136   |   |   | $ | 160   |   |
| Regulated gas                       | 3                                  |   |                            | 4       |   |   | 46      |   |   | 47    |   |
| Nonregulated energy                 | 14                                 |   |                            | 17      |   |   | 34      |   |   | 34    |   |
| Other                               | —                            |   |                            | — |   |   | — |   |   | (1    | )      |
| Total operating income              | $                                  | 91     |                            |    | $      | 84     |    |   | $      | 216   |   |   | $ | 240   |   |

|                     |                    |        |                        |        |        |       |        |
|---------------------|--------------------|--------|------------------------|--------|--------|-------|--------|
|                | As of              |
|                | June 30, 2010 |   | December 31, 2009 |
| Total assets:       |               |   |                   |
| Regulated electric  | $                  | 8,665  |                   |   | $      | 8,621 |   |
| Regulated gas       | 947                |   |                   | 1,035  |   |
| Nonregulated energy | 210                |   |                   | 221    |   |
| Other               | 31                 |   |                   | 31     |   |
| Total assets        | $                  | 9,853  |                   |   | $      | 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 |

----

----

|                                          |                |        |                  |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |     |        |        |    |   |
|------------------------------------------|----------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|-----|--------|--------|----|---|
|                                     | Second Quarter |   | First Six Months |
|                                     | 2010           |   | 2009             |   | Change |   | 2010   |   | 2009   |   | Change |
| Gross margin (in millions):              |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenue                        | $              | 427    |             |   | $      | 391    |   |   | $      | 36     |   |   | 9      | %      |   | $      | 856    |   |   | $      | 835    |   |   | $ | 21  |   |   | 3  | % |
| Less - cost of fuel, energy and capacity | 134            |   |             | 114    |   |   | 20     |   |   | 18     |   |   | 286    |   |   | 250    |   |   | 36     |   |   | 14     |   |
| Electric gross margin                    | $              | 293    |             |   | $      | 277    |   |   | $      | 16     |   |   | 6      |   |   | $      | 570    |   |   | $      | 585    |   |   | $ | (15 | )      |   | (3 | ) |
|                                     |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (Gigawatt hours ("GWh")):          |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                   | 5,215          |   |             | 4,832  |   |   | 383    |   |   | 8      | %      |   | 10,433 |   |   | 9,889  |   |   | 544    |   |   | 6      | %      |
| Wholesale                                | 3,150          |   |             | 2,631  |   |   | 519    |   |   | 20     |   |   | 6,714  |   |   | 6,542  |   |   | 172    |   |   | 3      |   |
| Total                                    | 8,365          |   |             | 7,463  |   |   | 902    |   |   | 12     |   |   | 17,147 |   |   | 16,431 |   |   | 716    |   |   | 4      |   |

|                                    |                |        |                  |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |   |        |        |   |        |
|------------------------------------|----------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|---|--------|--------|---|--------|
|                               | Second Quarter |   | First Six Months |
|                               | 2010           |   | 2009             |   | Change |   | 2010   |   | 2009   |   | Change |
| Gross margin (in millions):        |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenue                  | $              | 128    |             |   | $      | 118    |   |   | $      | 10     |   |   | 8      | %      |   | $      | 515    |   |   | $      | 506    |   |   | $ | 9 |   |   | 2 | %      |
| Less - cost of gas sold            | 82             |   |             | 71     |   |   | 11     |   |   | 15     |   |   | 380    |   |   | 372    |   |   | 8      |   |   | 2      |   |
| Gas gross margin                   | $              | 46     |             |   | $      | 47     |   |   | $      | (1     | )      |   | (2     | )      |   | $      | 135    |   |   | $      | 134    |   |   | $ | 1 |   |   | 1 |   |
|                               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (000's decatherms ("Dths")): |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                             | 8,945          |   |             | 10,789 |   |   | (1,844 | )      |   | (17    | )%     |   | 47,988 |   |   | 48,765 |   |   | (777   | )      |   | (2     | )%     |
| Wholesale                          | 8,199          |   |             | 8,537  |   |   | (338   | )      |   | (4     | )      |   | 18,354 |   |   | 22,930 |   |   | (4,576 | )      |   | (20    | )      |
| Total                              | 17,144         |   |             | 19,326 |   |   | (2,182 | )      |   | (11    | )      |   | 66,342 |   |   | 71,695 |   |   | (5,353 | )      |   | (7     | )      |

----

|                                               |                |        |                  |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |    |        |        |    |   |
|-----------------------------------------------|----------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|----|--------|--------|----|---|
|                                          | Second Quarter |   | First Six Months |
|                                          | 2010           |   | 2009             |   | Change |   | 2010   |   | 2009   |   | Change |
| Gross margin (in millions):                   |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonregulated operating revenue                | $              | 270    |             |   | $      | 252    |   |   | $      | 18     |   |   | 7      | %      |   | $      | 589    |   |   | $      | 556    |   |   | $ | 33 |   |   | 6  | % |
| Less - nonregulated cost of sales             | 250            |   |             | 228    |   |   | 22     |   |   | 10     |   |   | 543    |   |   | 507    |   |   | 36     |   |   | 7      |   |
| Nonregulated gross margin                     | $              | 20     |             |   | $      | 24     |   |   | $      | (4     | )      |   | (17    | )      |   | $      | 46     |   |   | $      | 49     |   |   | $ | (3 | )      |   | (6 | ) |
|                                          |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonregulated electric retail sales (GWh) | 2,859          |   |             | 2,434  |   |   | 425    |   |   | 17     | %      |   | 5,555  |   |   | 4,809  |   |   | 746    |   |   | 16     | %      |
|                                          |           |   |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonregulated gas sales (000's Dths)      | 8,251          |   |             | 9,065  |   |   | (814   | )      |   | (9     | )%     |   | 21,791 |   |   | 23,000 |   |   | (1,209 | )      |   | (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:  August 6, 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 |
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| 31.3                | Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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| 31.4                | Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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| 32.3                | Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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| 32.4                | Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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