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**EXHIBIT        10.2**

**STIPULATION        AND AGREEMENT**

**Article        I Introduction**

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|   | (a)       | The                  310 MW wind generating project is progressing well;                                                                                    |
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|   |      |                                                                                                                                                        |
|   | (b)  | One                  or both of the sites where construction is currently occurring                  should                  support the Expansion Project; |

|   | (c)    | From                  a transmission/interconnection, landowner and substation perspective                  the                  Expansion Project is likely to require only a relatively small                  incremental                  investment;                                                                                                                                                                          |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (d)    | The                  federal production tax credit for wind energy projects is scheduled                  to                  expire on January 1, 2006; and                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (e)    | The                  anticipated incremental revenues generated by the Expansion Project                  are in                  excess of incremental expansion costs. The Expansion Project size                  will be                  determined by MidAmerican following the completion of wind turbine                  siting                  studies and regional transmission reliability                  analysis. |

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**Article        II - Purpose**

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**Terms**

| 1. | The                  signatories to this Stipulation agree to support the Expansion                  Project                  with the following ratemaking                  principles: |
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|   | a. | **Cost                  Cap**.                  The Iowa jurisdictional portion of MidAmerican’s prudently incurred                  capital costs, operation and maintenance expenses and other actual                  costs                  of the Expansion Project shall be included in MidAmerican’s regulated                  electric rates. MidAmerican shall be permitted to include in rates                  the                  actual costs of the Expansion Project, up to the Iowa jurisdictional                  portion of $1.3 million per MW installed (inclusive of associated                  costs necessary for the reliable integration of the Expansion Project                  into                  the MidAmerican delivery system), without the need to establish                  prudence                  or reasonableness. MidAmerican anticipates installing up to 90                  MW of                  additional wind capacity. MidAmerican shall be required to establish                  the                  prudence and reasonableness of any Expansion Project costs in excess                  of                  the foregoing calculated per MW amount before the Iowa jurisdictional                  portion of such excess can be included in                  rates. |
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|   | b.     | **Depreciation**.                  The depreciation life of the Expansion Project for ratemaking purposes                  shall be 20 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | c.     | **Return                  on Equity**.                  The allowed return on common equity investment (ROE) on the portion                  of the                  Expansion Project included in Iowa electric rate base shall be                  12.2%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | d.     | **Renewable                  Energy and Carbon Tax Credits**.                  The Iowa jurisdictional portion of any revenues from the sale of                  renewable                  energy credits and carbon dioxide credits associated with the Expansion                  Project shall be recorded above-the-line by MidAmerican in the                  accounts                  specified in Appendix 2 and included in the revenue sharing calculations                  of items “g” and “h” of the Stipulation and Settlement in Docket RPU-03-1                  and the revenue sharing calculation for calendar year 2011 as provided                  in                  Term 2(a) hereof. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | e.     | **Federal                  Production Tax Credit**.                  The Iowa jurisdictional portion of any federal production tax credits                  associated with the Expansion Project shall be recorded above-the-line                  by                  MidAmerican in the accounts specified in Appendix 2 and included                  in the                  revenue sharing calculations of items “g” and “h” of the Stipulation and                  Settlement in Docket RPU-03-l and the revenue sharing calculation                  for                  calendar year 2011 as provided in Term 2(a) hereof.                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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|   | f.     | **Wholesale                  Sales Revenue**.                  The Iowa jurisdictional portion of wholesale sales revenue associated                  with                  all generating units included in MEC’s Iowa jurisdictional electric rate                  base (including the wind power facilities of the Expansion Project)                  shall                  be recorded above-the-line in the accounts specified in Appendix                  2 and                  included in the revenue sharing calculations of items “g” and “h” of the                  Stipulation and Settlement in Docket RPU-03-1 and the revenue sharing                  calculation for calendar year 2011 as provided in Term 2(a)                  hereof. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

| 2. | The                  signatories to this Stipulation agree to support the Expansion                  Project                  with the following ratemaking                  provisions: |
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|   | a.     | **Revenue                  Sharing 2011**.                  Revenue sharing as approved by the Board in its October 17, 2003,                  “Order Approving Stipulation and Agreement,” in Docket No. RPU-03-l for                  the years 2006-2010 shall continue throughout 2011, except with                  respect to                  the method for crediting customers for any revenue sharing benefits.                  The                  customers’ share of any revenue sharing for 2011 earnings will be returned                  to the customers in 2012 through a bill-crediting mechanism approved                  by                  the Board in accordance with the methodology set out in the enclosed                  Attachment. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|   | b.     | **Restrictions                  on General Rate Increases**.                  MidAmerican commits not to seek any general rate increase in Iowa                  electric                  base rates to become effective during 2011, unless its Iowa jurisdictional                  return on equity on electric operations for calendar year 2010                  falls below                  10%. This provision shall not be interpreted to prevent the                  implementation, prior to December 31, 2011, of any electric rate or                  tariff changes approved by the Board in Docket No. RPU-04-2 and                  associated                  dockets. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | c.     | **Restrictions                  on Show Cause Filings**.                  The OCA commits not to seek any decrease in Iowa electric base                  rates to                  become effective before January 1,                  2012.                                                                                                                                                                                                                                                                                                                                                                                                                                               |

**Article        III - Joint Motion**

**Article        IV - Condition Precedent**

**Article        V - Privilege and Limitation**

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**Article        VI - Execution**

** **

**Article        VII **
**Modification        and Amendment**

**Article        VIII - Term**

| 1. | Unless                  terminated earlier by operation of paragraph 2 of this Article,                  this                  Stipulation and Agreement shall terminate January 1, 2012, except for                  MEC’s responsibility for revenue sharing for the year 2011 and except                  for                  items “a” through “f” of the “Term” section in Article II that shall                  remain in effect as long as the wind power facilities of the Expansion                  Project continue to provide regulated electric service to Iowa                  consumers. |
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|   |                                                                                                                                         |
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| 2.     | This                  Stipulation and Agreement and the obligations of the signatories                  shall                  terminate if: |
|   |                                                                                                                                         |

|   | a.     | the                  Board does not approve the terms of this Stipulation and                  Agreement;                                                                                                                                                    |   |
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|   |   |                                                                                                                                                                                                                                                         |   |
|   | b.     | MidAmerican                  is unable to secure access to sufficient transmission for the Expansion                  Project; or                                                                                                                            |   |
|   |   |                                                                                                                                                                                                                                                         |   |
|   | c.     | On                  or before March 1, 2005, MidAmerican determines that it is not                  likely to                  secure acceptable contracts that will result in the Expansion Project                  obtaining revenues in excess of costs. |   |

| 3. | In                  the event of termination pursuant to the preceding subparagraph,                  MidAmerican shall be permitted to record as above-the-line expenses                  an                  amortization over a 5-year period of all reasonable costs of the                  Expansion                  Project, including cancellation costs, but shall not be entitled                  to                  recover a return on such costs. |
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**Article        XI **
**Binding        Nature**

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**Article        X **
**Further        Assurances**

**Article        XI **
**Entire        Agreement**

|  MIDAMERICAN ENERGY COMPANY   |   |   |  OFFICE OF CONSUMER                ADVOCATE |
|-----------------------------------------|--------|--------|--------------------------------------------------|
|                                    |   |   |                                             |
|                                    |   |   |                                             |
| /s/ Todd                M. Raba    |   |   | /s/ John                R. Perkins     |
| Name:                 Todd M. Raba |   |   | Name:                 John R. Perkins       |
| Date:  12/20/04               |   |   | Date:                 12/20/04              |

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