# EDGAR Filing Document

**Accession Number:** 0000071180
**File Stem:** 0001081316-25-000022
**Filing Date:** 2025-11
**Character Count:** 1246267
**Document Hash:** bfbcd55d6f8b617a1f420ca8c23e7b7e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001081316-25-000022.hdr.sgml**: 20251103

**ACCESSION NUMBER**: 0001081316-25-000022

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 238

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251103

**DATE AS OF CHANGE**: 20251031

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BERKSHIRE HATHAWAY ENERGY CO
- **CENTRAL INDEX KEY:** 0001081316
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC, GAS & SANITARY SERVICES [4900]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 942213782
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14881
- **FILM NUMBER:** 251441615

**BUSINESS ADDRESS:**
- **STREET 1:** 1615 LOCUST STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50309-3037
- **BUSINESS PHONE:** 515-242-4300

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 657
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50306-0657

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MIDAMERICAN ENERGY HOLDINGS CO /NEW/
- **DATE OF NAME CHANGE:** 19990519

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MID AMERICAN ENERGY HOLDINGS CO /NEW/
- **DATE OF NAME CHANGE:** 19990308
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PACIFICORP /OR/
- **CENTRAL INDEX KEY:** 0000075594
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 930246090
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-05152
- **FILM NUMBER:** 251441621

**BUSINESS ADDRESS:**
- **STREET 1:** 825 NE MULTNOMAH
- **STREET 2:** SUITE 1900
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97232
- **BUSINESS PHONE:** 888-221-7070

**MAIL ADDRESS:**
- **STREET 1:** 825 NE MULTNOMAH
- **STREET 2:** SUITE 1900
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97232

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PC/UP&L MERGING CORP
- **DATE OF NAME CHANGE:** 19890628

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PACIFICORP /ME/
- **DATE OF NAME CHANGE:** 19890628
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIERRA PACIFIC POWER CO
- **CENTRAL INDEX KEY:** 0000090144
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC & OTHER SERVICES COMBINED [4931]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880044418
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-00508
- **FILM NUMBER:** 251441620

**BUSINESS ADDRESS:**
- **STREET 1:** 6100 NEIL RD
- **STREET 2:** P O BOX 10100
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89520-0400
- **BUSINESS PHONE:** 7758344011

**MAIL ADDRESS:**
- **STREET 1:** 6100 NEIL ROAD
- **STREET 2:** P.O. BOX 10100
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89520
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EASTERN GAS TRANSMISSION & STORAGE, INC.
- **CENTRAL INDEX KEY:** 0001936737
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS TRANSMISSION [4922]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 550629203
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-266049
- **FILM NUMBER:** 251441616

**BUSINESS ADDRESS:**
- **STREET 1:** 6603 WEST BROAD STREET
- **STREET 2:** 6TH FLOOR
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23230
- **BUSINESS PHONE:** (804) 613-5100

**MAIL ADDRESS:**
- **STREET 1:** 6603 WEST BROAD STREET
- **STREET 2:** 6TH FLOOR
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23230

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Eastern Gas Transmission & Storage, Inc.
- **DATE OF NAME CHANGE:** 20220706
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MIDAMERICAN FUNDING LLC
- **CENTRAL INDEX KEY:** 0001098296
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 470819200
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-90553
- **FILM NUMBER:** 251441618

**BUSINESS ADDRESS:**
- **STREET 1:** 1615 LOCUST STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50309-3037
- **BUSINESS PHONE:** 515-242-4300

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 657
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50306-0657
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EASTERN ENERGY GAS HOLDINGS, LLC
- **CENTRAL INDEX KEY:** 0001603291
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS TRANSMISSION & DISTRIBUTION [4923]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 463639580
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37591
- **FILM NUMBER:** 251441617

**BUSINESS ADDRESS:**
- **STREET 1:** 6603 WEST BROAD STREET
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23230
- **BUSINESS PHONE:** 804-613-5100

**MAIL ADDRESS:**
- **STREET 1:** 6603 WEST BROAD STREET
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23230

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DOMINION ENERGY GAS HOLDINGS, LLC
- **DATE OF NAME CHANGE:** 20191021

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Dominion Energy Gas Holdings, LLC
- **DATE OF NAME CHANGE:** 20170517

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Dominion Gas Holdings, LLC
- **DATE OF NAME CHANGE:** 20140320
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NEVADA POWER CO
- **CENTRAL INDEX KEY:** 0000071180
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880045330
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-52378
- **FILM NUMBER:** 251441622

**BUSINESS ADDRESS:**
- **STREET 1:** 6226 W SAHARA AVE
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89146
- **BUSINESS PHONE:** 702-402-5000

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 98910
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89151

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOUTHERN NEVADA POWER CO
- **DATE OF NAME CHANGE:** 19701113
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MIDAMERICAN ENERGY CO
- **CENTRAL INDEX KEY:** 0000928576
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 421425214
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-15387
- **FILM NUMBER:** 251441619

**BUSINESS ADDRESS:**
- **STREET 1:** 1615 LOCUST STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50309-3037
- **BUSINESS PHONE:** 515-242-4300

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 657
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50306-0657

?xml version='1.0' encoding='ASCII'? bhe-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 10-Q**

**☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

For the quarterly period ended September 30, 2025

or

**☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

For the transition period from ______ to _______

---

| | | |
|:---|:---|:---|
| | Exact name of registrant as specified in its charter | |
| | State or other jurisdiction of incorporation or organization | |
| Commission | Address of principal executive offices | IRS Employer |
| File Number | Registrant's telephone number, including area code | Identification No. |
| **001-14881** | **BERKSHIRE HATHAWAY ENERGY COMPANY** | **94-2213782** |
|  | **(An Iowa Corporation)** |  |
|  | **1615 Locust Street** |  |
|  | **Des Moines, Iowa 50309-3037** |  |
|  | **515-242-4300** |  |
| **001-05152** | **PACIFICORP** | **93-0246090** |
|  | **(An Oregon Corporation)** |  |
|  | **825 N.E. Multnomah Street** |  |
|  | **Portland, Oregon 97232** |  |
|  | **888-221-7070** |  |
| **333-90553** | **MIDAMERICAN FUNDING, LLC** | **47-0819200** |
|  | **(An Iowa Limited Liability Company)** |  |
|  | **1615 Locust Street** |  |
|  | **Des Moines, Iowa 50309-3037** |  |
|  | **515-242-4300** |  |
| **333-15387** | **MIDAMERICAN ENERGY COMPANY** | **42-1425214** |
|  | **(An Iowa Corporation)** |  |
|  | **1615 Locust Street** |  |
|  | **Des Moines, Iowa 50309-3037** |  |
|  | **515-242-4300** |  |
| **000-52378** | **NEVADA POWER COMPANY** | **88-0420104** |
|  | **(A Nevada Corporation)** |  |
|  | **6226 West Sahara Avenue** |  |
|  | **Las Vegas, Nevada 89146** |  |
|  | **702-402-5000** |  |
| **000-00508** | **SIERRA PACIFIC POWER COMPANY** | **88-0044418** |
|  | **(A Nevada Corporation)** |  |
|  | **6100 Neil Road** |  |
|  | **Reno, Nevada 89511** |  |
|  | **775-834-4011** |  |
| **001-37591** | **EASTERN ENERGY GAS HOLDINGS, LLC** | **46-3639580** |
|  | **(A Virginia Limited Liability Company)** |  |
|  | **10700 Energy Way** |  |
|  | **Glen Allen, Virginia 23060** |  |
|  | **804-613-5100** |  |
| **333-266049** | **EASTERN GAS TRANSMISSION AND STORAGE, INC.** | **55-0629203** |
|  | **(A Delaware Corporation)** |  |
|  | **10700 Energy Way** |  |
|  | **Glen Allen, Virginia 23060** |  |
|  | **804-613-5100** |  |
|  | **N/A** |  |
|  | (Former name, former address and former fiscal year, if changed since last report) |  |

---

------

---

| | |
|:---|:---|
| **Registrant** | **Securities registered pursuant to Section 12(b) of the Act:** |
| BERKSHIRE HATHAWAY ENERGY COMPANY |  |
| PACIFICORP |  |
| MIDAMERICAN FUNDING, LLC |  |
| MIDAMERICAN ENERGY COMPANY |  |
| NEVADA POWER COMPANY |  |
| SIERRA PACIFIC POWER COMPANY |  |
| EASTERN ENERGY GAS HOLDINGS, LLC |  |
| EASTERN GAS TRANSMISSION AND STORAGE, INC. |  |

---

---

| | |
|:---|:---|
| **Registrant** | **Name of exchange on which registered:** |
| BERKSHIRE HATHAWAY ENERGY COMPANY | None |
| PACIFICORP | None |
| MIDAMERICAN FUNDING, LLC | None |
| MIDAMERICAN ENERGY COMPANY | None |
| NEVADA POWER COMPANY | None |
| SIERRA PACIFIC POWER COMPANY | None |
| EASTERN ENERGY GAS HOLDINGS, LLC | None |
| EASTERN GAS TRANSMISSION AND STORAGE, INC. | None |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

---

| | | |
|:---|:---|:---|
| **Registrant** | **Yes** | **No** |
| BERKSHIRE HATHAWAY ENERGY COMPANY | ☒ | |
| PACIFICORP | ☒ | |
| MIDAMERICAN FUNDING, LLC | | ☒ |
| MIDAMERICAN ENERGY COMPANY | ☒ | |
| NEVADA POWER COMPANY | ☒ | |
| SIERRA PACIFIC POWER COMPANY | ☒ | |
| EASTERN ENERGY GAS HOLDINGS, LLC | ☒ | |
| EASTERN GAS TRANSMISSION AND STORAGE, INC. | ☒ | |

---

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ⌧ No □

------

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Registrant** | **Large accelerated filer** | **Accelerated filer** | **Non-accelerated filer** | **Smaller reporting company** | **Emerging growth company** |
| BERKSHIRE HATHAWAY ENERGY COMPANY | ☐ | ☐ | ☒ | ☐ | ☐ |
| PACIFICORP | ☐ | ☐ | ☒ | ☐ | ☐ |
| MIDAMERICAN FUNDING, LLC | ☐ | ☐ | ☒ | ☐ | ☐ |
| MIDAMERICAN ENERGY COMPANY | ☐ | ☐ | ☒ | ☐ | ☐ |
| NEVADA POWER COMPANY | ☐ | ☐ | ☒ | ☐ | ☐ |
| SIERRA PACIFIC POWER COMPANY | ☐ | ☐ | ☒ | ☐ | ☐ |
| EASTERN ENERGY GAS HOLDINGS, LLC | ☐ | ☐ | ☒ | ☐ | ☐ |
| EASTERN GAS TRANSMISSION AND STORAGE, INC. | ☐ | ☐ | ☒ | ☐ | ☐ |

---

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrants are a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ⌧

All shares of outstanding common stock of Berkshire Hathaway Energy Company are held by its parent company, Berkshire Hathaway Inc. As of October 30, 2025, 1 share of common stock, no par value, was outstanding.

All shares of outstanding common stock of PacifiCorp are indirectly held by Berkshire Hathaway Energy Company. As of October 30, 2025, 357,060,915 shares of common stock, no par value, were outstanding.

All of the member's equity of MidAmerican Funding, LLC is held by its parent company, Berkshire Hathaway Energy Company, as of October 30, 2025.

All shares of outstanding common stock of MidAmerican Energy Company are held by its parent company, MHC Inc., which is a direct, wholly owned subsidiary of MidAmerican Funding, LLC. As of October 30, 2025, 70,980,203 shares of common stock, no par value, were outstanding.

All shares of outstanding common stock of Nevada Power Company are held by its parent company, NV Energy, Inc., which is an indirect, wholly owned subsidiary of Berkshire Hathaway Energy Company. As of October 30, 2025, 1,000 shares of common stock, $1.00 stated value, were outstanding.

All shares of outstanding common stock of Sierra Pacific Power Company are held by its parent company, NV Energy, Inc. As of October 30, 2025, 1,000 shares of common stock, $3.75 par value, were outstanding.

All of the member's equity of Eastern Energy Gas Holdings, LLC is held indirectly by its parent company, Berkshire Hathaway Energy Company, as of October 30, 2025.

All shares of outstanding common stock of Eastern Gas Transmission and Storage, Inc. are held by its parent company, Eastern Energy Gas Holdings, LLC, which is an indirect, wholly owned subsidiary of Berkshire Hathaway Energy Company. As of October 30, 2025, 60,101 shares of common stock, $10,000 par value, were outstanding.

This combined Form 10-Q is separately filed by Berkshire Hathaway Energy Company, PacifiCorp, MidAmerican Funding, LLC, MidAmerican Energy Company, Nevada Power Company, Sierra Pacific Power Company, Eastern Energy Gas Holdings, LLC and Eastern Gas Transmission and Storage, Inc. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes no representation as to information relating to the other companies.

------

**<u>**TABLE OF CONTENTS**</u>**

**PART I**

---

| | | |
|:---|:---|:---|
| <u>[Item 1.](#i10d3f3d511db42e1861675c431554d83_16)</u> | <u>[Financial Statements](#i10d3f3d511db42e1861675c431554d83_16)</u> | <u>[1](#i10d3f3d511db42e1861675c431554d83_16)</u> |
| <u>[Item 2.](#i10d3f3d511db42e1861675c431554d83_19)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i10d3f3d511db42e1861675c431554d83_19)</u> | <u>[2](#i10d3f3d511db42e1861675c431554d83_19)</u> |
| <u>[Item 3.](#i10d3f3d511db42e1861675c431554d83_769)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i10d3f3d511db42e1861675c431554d83_769)</u> | <u>[209](#i10d3f3d511db42e1861675c431554d83_769)</u> |
| <u>[Item 4.](#i10d3f3d511db42e1861675c431554d83_772)</u> | <u>[Controls and Procedures](#i10d3f3d511db42e1861675c431554d83_772)</u> | <u>[209](#i10d3f3d511db42e1861675c431554d83_772)</u> |

---

**PART II**

---

| | | |
|:---|:---|:---|
| <u>[Item 1.](#i10d3f3d511db42e1861675c431554d83_778)</u> | <u>[Legal Proceedings](#i10d3f3d511db42e1861675c431554d83_778)</u> | <u>[210](#i10d3f3d511db42e1861675c431554d83_778)</u> |
| <u>[Item 1A.](#i10d3f3d511db42e1861675c431554d83_781)</u> | <u>[Risk Factors](#i10d3f3d511db42e1861675c431554d83_781)</u> | <u>[218](#i10d3f3d511db42e1861675c431554d83_781)</u> |
| <u>[Item 2.](#i10d3f3d511db42e1861675c431554d83_784)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i10d3f3d511db42e1861675c431554d83_784)</u> | <u>[219](#i10d3f3d511db42e1861675c431554d83_784)</u> |
| <u>[Item 3.](#i10d3f3d511db42e1861675c431554d83_787)</u> | <u>[Defaults Upon Senior Securities](#i10d3f3d511db42e1861675c431554d83_787)</u> | <u>[219](#i10d3f3d511db42e1861675c431554d83_787)</u> |
| <u>[Item 4.](#i10d3f3d511db42e1861675c431554d83_790)</u> | <u>[Mine Safety Disclosures](#i10d3f3d511db42e1861675c431554d83_790)</u> | <u>[219](#i10d3f3d511db42e1861675c431554d83_790)</u> |
| <u>[Item 5.](#i10d3f3d511db42e1861675c431554d83_793)</u> | <u>[Other Information](#i10d3f3d511db42e1861675c431554d83_793)</u> | <u>[219](#i10d3f3d511db42e1861675c431554d83_793)</u> |
| <u>[Item 6.](#i10d3f3d511db42e1861675c431554d83_796)</u> | <u>[Exhibits](#i10d3f3d511db42e1861675c431554d83_796)</u> | <u>[219](#i10d3f3d511db42e1861675c431554d83_796)</u> |
| <u>[Signatures](#i10d3f3d511db42e1861675c431554d83_802)</u> |  | <u>[224](#i10d3f3d511db42e1861675c431554d83_802)</u> |

---

i

------

**Definition of Abbreviations and Industry Terms**

When used in Forward-Looking Statements, Part I - Items 2 through 3, and Part II - Items 1 through 6, the following terms have the definitions indicated.

---

| | |
|:---|:---|
| **<u>Berkshire Hathaway Energy Company and Related Entities</u>** | **<u>Berkshire Hathaway Energy Company and Related Entities</u>** |
| BHE | Berkshire Hathaway Energy Company |
| Berkshire Hathaway | Berkshire Hathaway Inc. |
| Berkshire Hathaway Energy or the Company | Berkshire Hathaway Energy Company and its subsidiaries |
| PacifiCorp | PacifiCorp and its subsidiaries |
| MidAmerican Funding | MidAmerican Funding, LLC and its subsidiaries |
| MidAmerican Energy | MidAmerican Energy Company |
| NV Energy | NV Energy, Inc. and its subsidiaries |
| Nevada Power | Nevada Power Company and its subsidiaries |
| Sierra Pacific | Sierra Pacific Power Company and its subsidiaries |
| Nevada Utilities | Nevada Power Company and its subsidiaries and Sierra Pacific Power Company and its subsidiaries |
| Eastern Energy Gas | Eastern Energy Gas Holdings, LLC and its subsidiaries |
| EGTS | Eastern Gas Transmission and Storage, Inc. and its subsidiaries |
| Registrants | Berkshire Hathaway Energy Company, PacifiCorp and its subsidiaries, MidAmerican Funding, LLC and its subsidiaries, MidAmerican Energy Company, Nevada Power Company and its subsidiaries, Sierra Pacific Power Company and its subsidiaries, Eastern Energy Gas Holdings, LLC and its subsidiaries and Eastern Gas Transmission and Storage, Inc. and its subsidiaries |
| Northern Powergrid | Northern Powergrid Holdings Company and its subsidiaries |
| BHE Pipeline Group | BHE GT&S, LLC, Northern Natural Gas Company and Kern River Gas Transmission Company |
| BHE GT&S | BHE GT&S, LLC and its subsidiaries |
| Northern Natural Gas | Northern Natural Gas Company |
| Kern River | Kern River Gas Transmission Company |
| BHE Transmission | BHE Canada Holdings Corporation and BHE U.S. Transmission, LLC |
| BHE Canada | BHE Canada Holdings Corporation and its subsidiaries |
| AltaLink | AltaLink, L.P. and its subsidiaries |
| BHE U.S. Transmission | BHE U.S. Transmission, LLC and its subsidiaries |
| BHE Renewables | BHE Renewables, LLC and its subsidiaries |
| HomeServices | HomeServices of America, Inc. and its subsidiaries |
| Utilities | PacifiCorp and its subsidiaries, MidAmerican Energy Company, Nevada Power Company and its subsidiaries and Sierra Pacific Power Company and its subsidiaries |
| Cove Point | Cove Point LNG, LP |
| Iroquois | Iroquois Gas Transmission System, L.P. |

---

ii

------

---

| | |
|:---|:---|
| **<u>Certain Industry Terms</u>** | |
| 2020 Wildfires | Wildfires in Oregon and Northern California that occurred in September 2020 |
| 2022 McKinney Fire | A wildfire that began in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California in July 2022 |
| Wildfires | 2020 Wildfires and 2022 McKinney Fire |
| AFUDC | Allowance for Funds Used During Construction |
| AUC | Alberta Utilities Commission |
| CCR | Coal Combustion Residuals |
| CPUC | California Public Utilities Commission |
| D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit |
| Dth | Decatherm |
| EBA | Energy Balancing Account |
| ECAM | Energy Cost Adjustment Mechanism |
| EPA | United States Environmental Protection Agency |
| FERC | Federal Energy Regulatory Commission |
| GAAP | Accounting principles generally accepted in the United States of America |
| GTA | General Tariff Application |
| GWh | Gigawatt Hour |
| IPUC | Idaho Public Utilities Commission |
| IRP | Integrated Resource Plan |
| IUC | Iowa Utilities Commission |
| *James* | A class action complaint filed against PacifiCorp on September 30, 2020, captioned *Jeanyne James et al*. *v. PacifiCorp*, in Multnomah County Circuit Court Oregon and the associated consolidated cases |
| kV | Kilovolt |
| LNG | Liquefied Natural Gas |
| MISO | Midcontinent Independent System Operator, Inc. |
| MW | Megawatt |
| MWh | Megawatt Hour |
| OPUC | Oregon Public Utility Commission |
| PCAM | Power Cost Adjustment Mechanism |
| PTC | Production Tax Credit |
| PUCN | Public Utilities Commission of Nevada |
| RFP | Request for Proposals |
| RPS | Renewable Portfolio Standards |
| RRA | Renewable Energy Credit and Sulfur Dioxide Revenue Adjustment Mechanism |
| SCR | Selective Catalytic Reduction |
| SEC | United States Securities and Exchange Commission |
| SIP | State Implementation Plan |
| UPSC | Utah Public Service Commission |
| WPSC | Wyoming Public Service Commission |
| WUTC | Washington Utilities and Transportation Commission |

---

iii

------

**Forward-Looking Statements**

This report contains statements that do not directly or exclusively relate to historical facts. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by the use of forward-looking words, such as "will," "may," "could," "project," "believe," "anticipate," "expect," "estimate," "continue," "intend," "potential," "plan," "forecast" and similar terms. These statements are based upon the relevant Registrant's current intentions, estimates, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of each Registrant and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic, political and business conditions, as well as changes in, and compliance with, laws and regulations, including tariffs and income tax reform, initiatives regarding deregulation and restructuring of the utility industry and reliability and safety standards, affecting the respective Registrant's operations or related industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in, and compliance with, environmental laws, regulations, decisions and policies, whether directed towards protection of environmental resources, present and future climate considerations or social justice concerns that could, among other items, increase operating and capital costs, reduce facility output, accelerate facility retirements or delay facility construction or acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome of regulatory rate reviews and other proceedings conducted by regulatory agencies or other governmental and legal bodies and the respective Registrant's ability to recover costs through rates in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in economic, industry, competition or weather conditions, as well as demographic trends, new technologies and various conservation, energy efficiency and private generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply or the respective Registrant's ability to obtain long-term contracts with customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance, availability and ongoing operation of the respective Registrant's facilities, including facilities not operated by the Registrants, due to the impacts of market conditions, outages and associated repairs, transmission constraints, weather, including wind, solar and hydroelectric conditions, and operating conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of catastrophic and other unforeseen events, which may be caused by factors beyond the control of each respective Registrant or by a breakdown or failure of the Registrants' operating assets, including severe storms, floods, fires, extreme temperature events, wind events, earthquakes, explosions, landslides, electromagnetic pulses, mining incidents, costly litigation, wars, terrorism, pandemics, embargoes, and cyber security attacks, data security breaches, disruptions, or other malicious acts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks and uncertainties associated with wildfires that have occurred, are occurring or may occur in the respective Registrant's service territory; the damage caused by such wildfires; the extent of the respective Registrant's liability in connection with such wildfires (including the risk that the respective Registrant may be found liable for damages regardless of fault); investigations into such wildfires; the outcomes of any legal proceedings, demands or similar actions initiated against the respective Registrant; the risk that the respective Registrant is not able to recover losses from insurance or through rates; and the effect of such wildfires, investigations and legal proceedings on the respective Registrant's financial condition and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcomes of legal or other actions, including the effects of amounts to be paid to complainants as a result of settlements or final legal determinations and bonding requirements related to legal judgments that are being appealed associated with the Wildfires, which could have a material adverse effect on PacifiCorp's financial condition and could limit PacifiCorp's ability to access capital on terms commensurate with historical transactions or at all and could impact PacifiCorp's liquidity, cash flows and capital expenditure plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the respective Registrant's ability to reduce wildfire threats and improve safety, including the ability to comply with the targets and metrics set forth in its wildfire prevention plans; to retain or contract for the workforce necessary to execute its wildfire prevention plans; the effectiveness of its system hardening; ability to achieve vegetation management targets; and the cost of these programs and the timing and outcome of any proceeding to recover such costs through rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to economically obtain insurance coverage, or any insurance coverage at all, sufficient to cover losses arising from catastrophic events, such as wildfires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a high degree of variance between actual and forecasted load or generation that could impact a Registrant's hedging strategy and the cost of balancing its generation resources with its retail load obligations;

iv

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in prices, availability and demand for wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generating capacity and energy costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the financial condition, creditworthiness and operational stability of the respective Registrant's significant customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in business strategy or development plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability, terms and deployment of capital, including reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in interest rates and credit spreads;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the respective Registrant's credit ratings, changes in rating methodology and placement on negative outlook or credit watch;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks relating to nuclear generation, including unique operational, closure and decommissioning risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hydroelectric conditions and the cost, feasibility and eventual outcome of hydroelectric relicensing proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of certain contracts used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in commodity prices, interest rates and other conditions that affect the fair value of certain contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of inflation on costs and the ability of the respective Registrants to recover such costs in regulated rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in foreign currency exchange rates, primarily the British pound and the Canadian dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in employee healthcare costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of investment performance, certain participant elections such as lump sum distributions and changes in interest rates, legislation, healthcare cost trends, mortality, morbidity on pension and other postretirement benefits expense and funding requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the residential real estate brokerage, mortgage and franchising industries, regulations that could affect brokerage, mortgage and franchising transactions and the outcomes of legal or other actions and the effects of amounts to be paid to complainants as a result of settlements or final legal determinations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to successfully integrate future acquired operations into a Registrant's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of supply chain disruptions and workforce availability on the respective Registrant's ongoing operations and its ability to timely complete construction projects;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability and price of natural gas in applicable geographic regions and demand for natural gas supply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of new accounting guidance or changes in current accounting estimates and assumptions on the financial results of the respective Registrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other business or investment considerations that may be disclosed from time to time in the Registrants' filings with the SEC or in other publicly disseminated written documents.

Further details of the potential risks and uncertainties affecting the Registrants are described in the Registrants' filings with the SEC, including Part II, Item 1A and other discussions contained in this Form 10-Q. Each Registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing factors should not be construed as exclusive.

v

------

**Item 1. Financial Statements**

---

| | |
|:---|:---|
| **Berkshire Hathaway Energy Company and its subsidiaries** | |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_37)</u> | <u>[4](#i10d3f3d511db42e1861675c431554d83_37)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_40)</u> | <u>[5](#i10d3f3d511db42e1861675c431554d83_40)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_43)</u> | <u>[7](#i10d3f3d511db42e1861675c431554d83_43)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income](#i10d3f3d511db42e1861675c431554d83_46)</u> | <u>[8](#i10d3f3d511db42e1861675c431554d83_46)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Equity](#i10d3f3d511db42e1861675c431554d83_49)</u> | <u>[9](#i10d3f3d511db42e1861675c431554d83_49)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_52)</u> | <u>[10](#i10d3f3d511db42e1861675c431554d83_52)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_55)</u> | <u>[11](#i10d3f3d511db42e1861675c431554d83_55)</u> |
| **PacifiCorp and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_142)</u> | <u>[58](#i10d3f3d511db42e1861675c431554d83_142)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_145)</u> | <u>[59](#i10d3f3d511db42e1861675c431554d83_145)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_148)</u> | <u>[61](#i10d3f3d511db42e1861675c431554d83_148)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Shareholders' Equity](#i10d3f3d511db42e1861675c431554d83_151)</u> | <u>[62](#i10d3f3d511db42e1861675c431554d83_151)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_154)</u> | <u>[63](#i10d3f3d511db42e1861675c431554d83_154)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_157)</u> | <u>[64](#i10d3f3d511db42e1861675c431554d83_157)</u> |
| **MidAmerican Energy Company** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_238)</u> | <u>[91](#i10d3f3d511db42e1861675c431554d83_238)</u> |
| &nbsp;&nbsp;<u>[Balance Sheets](#i10d3f3d511db42e1861675c431554d83_241)</u> | <u>[92](#i10d3f3d511db42e1861675c431554d83_241)</u> |
| &nbsp;&nbsp;<u>[Statements of Operations](#i10d3f3d511db42e1861675c431554d83_244)</u> | <u>[94](#i10d3f3d511db42e1861675c431554d83_244)</u> |
| &nbsp;&nbsp;<u>[Statements of Changes in Shareholder's Equity](#i10d3f3d511db42e1861675c431554d83_247)</u> | <u>[95](#i10d3f3d511db42e1861675c431554d83_247)</u> |
| &nbsp;&nbsp;<u>[Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_250)</u> | <u>[96](#i10d3f3d511db42e1861675c431554d83_250)</u> |
| &nbsp;&nbsp;<u>[Notes to Financial Statements](#i10d3f3d511db42e1861675c431554d83_253)</u> | <u>[97](#i10d3f3d511db42e1861675c431554d83_253)</u> |
| **MidAmerican Funding, LLC and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_304)</u> | <u>[106](#i10d3f3d511db42e1861675c431554d83_304)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_307)</u> | <u>[107](#i10d3f3d511db42e1861675c431554d83_307)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_310)</u> | <u>[109](#i10d3f3d511db42e1861675c431554d83_310)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Member's Equity](#i10d3f3d511db42e1861675c431554d83_313)</u> | <u>[110](#i10d3f3d511db42e1861675c431554d83_313)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_316)</u> | <u>[111](#i10d3f3d511db42e1861675c431554d83_316)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_319)</u> | <u>[112](#i10d3f3d511db42e1861675c431554d83_319)</u> |
| **Nevada Power Company and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_394)</u> | <u>[127](#i10d3f3d511db42e1861675c431554d83_394)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_397)</u> | <u>[128](#i10d3f3d511db42e1861675c431554d83_397)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_400)</u> | <u>[129](#i10d3f3d511db42e1861675c431554d83_400)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Shareholder's Equity](#i10d3f3d511db42e1861675c431554d83_403)</u> | <u>[130](#i10d3f3d511db42e1861675c431554d83_403)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_406)</u> | <u>[131](#i10d3f3d511db42e1861675c431554d83_406)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_409)</u> | <u>[132](#i10d3f3d511db42e1861675c431554d83_409)</u> |
| **Sierra Pacific Power Company and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_484)</u> | <u>[149](#i10d3f3d511db42e1861675c431554d83_484)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_487)</u> | <u>[150](#i10d3f3d511db42e1861675c431554d83_487)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_490)</u> | <u>[151](#i10d3f3d511db42e1861675c431554d83_490)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Shareholder's Equity](#i10d3f3d511db42e1861675c431554d83_493)</u> | <u>[152](#i10d3f3d511db42e1861675c431554d83_493)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_496)</u> | <u>[153](#i10d3f3d511db42e1861675c431554d83_496)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_499)</u> | <u>[154](#i10d3f3d511db42e1861675c431554d83_499)</u> |
| **Eastern Energy Gas Holdings, LLC and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_580)</u> | <u>[173](#i10d3f3d511db42e1861675c431554d83_580)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_583)</u> | <u>[174](#i10d3f3d511db42e1861675c431554d83_583)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_586)</u> | <u>[176](#i10d3f3d511db42e1861675c431554d83_586)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income](#i10d3f3d511db42e1861675c431554d83_589)</u> | <u>[177](#i10d3f3d511db42e1861675c431554d83_589)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Equity](#i10d3f3d511db42e1861675c431554d83_592)</u> | <u>[178](#i10d3f3d511db42e1861675c431554d83_592)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_595)</u> | <u>[179](#i10d3f3d511db42e1861675c431554d83_595)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_598)</u> | <u>[180](#i10d3f3d511db42e1861675c431554d83_598)</u> |
| **Eastern Gas Transmission and Storage, Inc. and its subsidiaries** |  |
| &nbsp;&nbsp;<u>[Report of Independent Registered Public Accounting Firm](#i10d3f3d511db42e1861675c431554d83_688)</u> | <u>[193](#i10d3f3d511db42e1861675c431554d83_688)</u> |
| &nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i10d3f3d511db42e1861675c431554d83_691)</u> | <u>[194](#i10d3f3d511db42e1861675c431554d83_691)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Operations](#i10d3f3d511db42e1861675c431554d83_694)</u> | <u>[196](#i10d3f3d511db42e1861675c431554d83_694)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Changes in Shareholder's Equity](#i10d3f3d511db42e1861675c431554d83_700)</u> | <u>[198](#i10d3f3d511db42e1861675c431554d83_700)</u> |
| &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i10d3f3d511db42e1861675c431554d83_703)</u> | <u>[199](#i10d3f3d511db42e1861675c431554d83_703)</u> |
| &nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i10d3f3d511db42e1861675c431554d83_706)</u> | <u>[200](#i10d3f3d511db42e1861675c431554d83_706)</u> |

---

------

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

---

| | |
|:---|:---|
| <u>[Berkshire Hathaway Energy Company and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_109)</u> | <u>[33](#i10d3f3d511db42e1861675c431554d83_109)</u> |
| <u>[PacifiCorp and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_202)</u> | <u>[80](#i10d3f3d511db42e1861675c431554d83_202)</u> |
| <u>[MidAmerican Funding, LLC and its subsidiaries and MidAmerican Energy Company](#i10d3f3d511db42e1861675c431554d83_361)</u> | <u>[117](#i10d3f3d511db42e1861675c431554d83_361)</u> |
| <u>[Nevada Power Company and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_448)</u> | <u>[140](#i10d3f3d511db42e1861675c431554d83_448)</u> |
| <u>[Sierra Pacific Power Company and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_544)</u> | <u>[164](#i10d3f3d511db42e1861675c431554d83_544)</u> |
| <u>[Eastern Energy Gas Holdings, LLC and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_652)</u> | <u>[188](#i10d3f3d511db42e1861675c431554d83_652)</u> |
| <u>[Eastern Gas Transmission and Storage, Inc. and its subsidiaries](#i10d3f3d511db42e1861675c431554d83_745)</u> | <u>[206](#i10d3f3d511db42e1861675c431554d83_745)</u> |

---

------

**Berkshire Hathaway Energy Company and its subsidiaries** 

**Consolidated Financial Section**

------

**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of

Berkshire Hathaway Energy Company

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of Berkshire Hathaway Energy Company and subsidiaries ("the Company") as of September 30, 2025, the related consolidated statements of operations, comprehensive income, and changes in equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

October 31, 2025

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2155 | $1392 |
| &nbsp;&nbsp;&nbsp;Investments and restricted cash and cash equivalents | 303 | 216 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 2765 | 2551 |
| &nbsp;&nbsp;&nbsp;Inventories | 2073 | 1962 |
| &nbsp;&nbsp;&nbsp;Mortgage loans held for sale | 663 | 528 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 1022 | 1136 |
| &nbsp;&nbsp;&nbsp;Other current assets | 1082 | 1314 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 10063 | 9099 |
| Property, plant and equipment, net | 109754 | 103769 |
| Goodwill | 11500 | 11413 |
| Regulatory assets | 4181 | 4213 |
| Investments and restricted cash and cash equivalents and investments | 7707 | 8635 |
| Other assets | 2941 | 3011 |
| **Total assets** | $146146 | $140140 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions, except share amounts)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $3404 | $2928 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 761 | 728 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 1009 | 1043 |
| &nbsp;&nbsp;&nbsp;Accrued employee expenses | 447 | 364 |
| &nbsp;&nbsp;&nbsp;Short-term debt | 1719 | 1123 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 1553 | 2646 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 2272 | 2109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 11165 | 10941 |
| BHE senior debt | 11460 | 11457 |
| Subsidiary senior debt | 41807 | 41154 |
| Subsidiary junior subordinated debt | 1584 |  |
| Regulatory liabilities | 6761 | 6754 |
| Deferred income taxes | 12805 | 12628 |
| Other long-term liabilities | 5904 | 5917 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 91486 | 88851 |
| Commitments and contingencies (Note 9) |  |  |
| **Equity:** |  |  |
| &nbsp;&nbsp;BHE shareholder's equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock - 100,000,000 shares authorized, $0.01 par value, — and 481,000 shares issued and outstanding |  | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock - 100 shares authorized, no par value, 1 share issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 5558 | 5558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 49683 | 46311 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (1837) | (2341) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total BHE shareholder's equity | 53404 | 50009 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests | 1256 | 1280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 54660 | 51289 |
| **Total liabilities and equity** | $146146 | $140140 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy | $6059 | $6026 | $16695 | $16386 |
| &nbsp;&nbsp;&nbsp;Real estate | 1185 | 1179 | 3309 | 3334 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 7244 | 7205 | 20004 | 19720 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 1876 | 1902 | 4841 | 5099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 1373 | 1343 | 4014 | 3888 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wildfire losses (Note 9) | 100 |  | 100 | 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1032 | 1020 | 3267 | 3040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and other taxes | 221 | 205 | 672 | 631 |
| &nbsp;&nbsp;&nbsp;Real estate | 1146 | 1151 | 3227 | 3477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 5748 | 5621 | 16121 | 16386 |
| **Operating income** | 1496 | 1584 | 3883 | 3334 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (707) | (679) | (2102) | (2045) |
| &nbsp;&nbsp;&nbsp;Capitalized interest | 49 | 49 | 134 | 145 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 93 | 97 | 240 | 272 |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 60 | 112 | 185 | 362 |
| &nbsp;&nbsp;Gains on marketable securities, net | 13 | 268 | 132 | 474 |
| &nbsp;&nbsp;&nbsp;Other, net | 38 | 34 | 68 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (454) | (119) | (1343) | (702) |
| **Income before income tax expense (benefit) and equity income (loss)** | 1042 | 1465 | 2540 | 2632 |
| &nbsp;&nbsp;Income tax expense (benefit) | (606) | (614) | (1362) | (1293) |
| &nbsp;&nbsp;Equity income (loss) | (129) | (73) | (409) | (237) |
| **Net income** | 1519 | 2006 | 3493 | 3688 |
| &nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interests | 30 | 31 | 115 | 106 |
| **Net income attributable to BHE shareholders** | 1489 | 1975 | 3378 | 3582 |
| &nbsp;&nbsp;&nbsp;Preferred dividends |  |  | 3 |  |
| **Earnings on common shares** | $1489 | $1975 | $3375 | $3582 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income | $1519 | $2006 | $3493 | $3688 |
| Other comprehensive (loss) income, net of tax: |  |  |  |  |
| &nbsp;&nbsp;Unrecognized amounts on retirement benefits, net of tax of $5, $(7), $— and $(2) | 17 | (18) | (4) | (3) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (192) | 348 | 533 | 178 |
| &nbsp;&nbsp;Unrealized (losses) gains on cash flow hedges, net of tax of $(3), $(7), $(8) and $1 | (9) | (22) | (25) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive (loss) income, net of tax | (184) | 308 | 504 | 179 |
| Comprehensive income | 1335 | 2314 | 3997 | 3867 |
| Comprehensive income attributable to noncontrolling interests | 30 | 31 | 115 | 106 |
| &nbsp;&nbsp;Comprehensive income attributable to BHE shareholders | $1305 | $2283 | $3882 | $3761 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)**

(Amounts in millions)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **BHE Shareholder's Equity** | **BHE Shareholder's Equity** | **BHE Shareholder's Equity** | **BHE Shareholder's Equity** | **BHE Shareholder's Equity** | | |
| |<br>**Preferred**<br>**Stock** |<br>**Common**<br>**Stock** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br><br>**Noncontrolling**<br>**Interests** |<br><br>**Total**<br>**Equity** |
| **Balance, June 30, 2024** | $— | $— | $5573 | $46371 | $(2033) | $1295 | $51206 |
| Net income |  |  |  | 1975 |  | 31 | 2006 |
| Other comprehensive income |  |  |  |  | 308 |  | 308 |
| Common stock repurchases |  |  | (155) | (2721) |  |  | (2876) |
| Distributions |  |  |  |  |  | (43) | (43) |
| Other equity transactions |  |  |  | 1 |  | (1) |  |
| **Balance, September 30, 2024** | $— | $— | $5418 | $45626 | $(1725) | $1282 | $50601 |
| **Balance, December 31, 2023** | $— | $— | $5573 | $44765 | $(1904) | $1306 | $49740 |
| Net income |  |  |  | 3582 |  | 106 | 3688 |
| Other comprehensive income |  |  |  |  | 179 |  | 179 |
| Common stock repurchases |  |  | (155) | (2721) |  |  | (2876) |
| Distributions |  |  |  |  |  | (127) | (127) |
| Other equity transactions |  |  |  |  |  | (3) | (3) |
| **Balance, September 30, 2024** | $— | $— | $5418 | $45626 | $(1725) | $1282 | $50601 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Balance, June 30, 2025** | $— | $| $5558 | $48194 | $(1653) | $1265 | $53364 |
| Net income |  |  |  | 1489 |  | 30 | 1519 |
| Other comprehensive loss |  |  |  |  | (184) |  | (184) |
| Distributions |  |  |  |  |  | (39) | (39) |
| **Balance, September 30, 2025** | $— | $| $5558 | $49683 | $(1837) | $1256 | $54660 |
| **Balance, December 31, 2024** | $481 | $| $5558 | $46311 | $(2341) | $1280 | $51289 |
| Net income |  |  |  | 3378 |  | 115 | 3493 |
| Other comprehensive income |  |  |  |  | 504 |  | 504 |
| Preferred stock redemptions | (481) |  |  |  |  |  | (481) |
| Preferred stock dividend |  |  |  | (3) |  |  | (3) |
| Distributions |  |  |  |  |  | (135) | (135) |
| Other equity transactions |  |  |  | (3) |  | (4) | (7) |
| **Balance, September 30, 2025** | $— | $| $5558 | $49683 | $(1837) | $1256 | $54660 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $3493 | $3688 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on marketable securities, net | (132) | (474) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3297 | 3075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (240) | (272) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity (income) loss, net of distributions | 479 | 334 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net power cost deferrals | (429) | (62) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of net power cost deferrals | 726 | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other changes in regulatory assets and liabilities | (105) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and investment tax credits, net | (97) | (181) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 53 | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities, net of effects from acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | (262) | (771) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative collateral, net | (10) | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit plans | (15) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes, net | (62) | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 254 | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wildfires insurance receivable | 98 | 365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wildfires liability | (82) | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 6966 | 6191 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (7527) | (6236) |
| &nbsp;&nbsp;&nbsp;Purchases of marketable securities | (373) | (258) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of marketable securities | 943 | 1841 |
| &nbsp;&nbsp;&nbsp;Purchases of U.S. Treasury Bills | (39) | (1651) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of U.S. Treasury Bills |  | 1975 |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities of U.S. Treasury Bills |  | 723 |
| &nbsp;&nbsp;&nbsp;Equity method investments | (39) | (14) |
| &nbsp;&nbsp;&nbsp;Other, net | 15 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (7020) | (3600) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock redemptions | (481) |  |
| &nbsp;&nbsp;&nbsp;Preferred dividends | (3) |  |
| &nbsp;&nbsp;Common stock repurchases |  | (2276) |
| &nbsp;&nbsp;&nbsp;Repayments of BHE senior debt | (1650) |  |
| &nbsp;&nbsp;Repayments of BHE junior subordinated debentures |  | (91) |
| &nbsp;&nbsp;&nbsp;Proceeds from subsidiary debt | 3115 | 5317 |
| &nbsp;&nbsp;&nbsp;Repayments of subsidiary debt | (720) | (921) |
| &nbsp;&nbsp;Net proceeds from (repayments of) short-term debt | 587 | (3380) |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests | (136) | (129) |
| &nbsp;&nbsp;&nbsp;Other, net | 131 | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 843 | (1510) |
| Effect of exchange rate changes | 11 | 2 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 800 | 1083 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 1586 | 1811 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $2386 | $2894 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BERKSHIRE HATHAWAY ENERGY COMPANY AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

(**1)&nbsp;&nbsp;&nbsp;&nbsp;General** 

Berkshire Hathaway Energy Company ("BHE"), a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway"), is a holding company headquartered in Iowa that has investments in a highly diversified portfolio of locally managed and operated businesses principally engaged in the energy industry (collectively with its subsidiaries, the "Company"). The Company's operations are organized as eight business segments: PacifiCorp and its subsidiaries ("PacifiCorp"), MidAmerican Funding, LLC and its subsidiaries ("MidAmerican Funding") (which primarily consists of MidAmerican Energy Company ("MidAmerican Energy")), NV Energy, Inc. and its subsidiaries ("NV Energy") (which primarily consists of Nevada Power Company and its subsidiaries ("Nevada Power") and Sierra Pacific Power Company and its subsidiaries ("Sierra Pacific")), Northern Powergrid Holdings Company and its subsidiaries ("Northern Powergrid") (which primarily consists of Northern Powergrid (Northeast) plc and Northern Powergrid (Yorkshire) plc), BHE Pipeline Group, LLC and its subsidiaries (which primarily consists of BHE GT&S, LLC and its subsidiaries ("BHE GT&S"), Northern Natural Gas Company ("Northern Natural Gas") and Kern River Gas Transmission Company ("Kern River")), BHE Transmission (which consists of BHE Canada Holdings Corporation and its subsidiaries ("BHE Canada") (which primarily consists of AltaLink, L.P. and its subsidiaries ("AltaLink")) and BHE U.S. Transmission, LLC and its subsidiaries), BHE Renewables, LLC and its subsidiaries ("BHE Renewables") and HomeServices of America, Inc. and its subsidiaries ("HomeServices"). The Company, through these locally managed and operated businesses, has investments in four utility companies in the U.S. serving customers in 11 states, two electricity distribution companies in Great Britain, five interstate natural gas pipeline companies and interests in a liquefied natural gas ("LNG") export, import and storage facility in the U.S., an electric transmission business in Canada, interests in electric transmission businesses in the U.S., a renewable energy business primarily investing in wind, solar, geothermal and hydroelectric projects, one of the largest residential real estate brokerage firms and residential real estate brokerage franchise networks in the U.S.

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in the Company's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025. Refer to Note 9 for discussion of loss contingencies related to the Oregon and Northern California 2020 wildfires (the "2020 Wildfires") and the wildfire that began in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California in July 2022 (the "2022 McKinney Fire"), collectively referred to as the "Wildfires."

------

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net** 

Property, plant and equipment, net consists of the following (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| |<br>**Depreciable**<br>**Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Regulated assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Utility generation, transmission and distribution systems | 5-80 years | $106751 | $103015 |
| &nbsp;&nbsp;&nbsp;Interstate natural gas pipeline assets | 3-80 years | 20646 | 20237 |
|  |  | 127397 | 123252 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (40554) | (38940) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulated assets, net |  | 86843 | 84312 |
| **Nonregulated assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Independent power plants | 2-50 years | 9229 | 8619 |
| &nbsp;&nbsp;&nbsp;Cove Point LNG facility | 40 years | 3457 | 3455 |
| &nbsp;&nbsp;&nbsp;Other assets | 2-30 years | 2933 | 2766 |
|  |  | 15619 | 14840 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (4553) | (4176) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonregulated assets, net |  | 11066 | 10664 |
|  |  | 97909 | 94976 |
| Construction work-in-progress |  | 11845 | 8793 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $109754 | $103769 |

---

Construction work-in-progress includes $10.8 billion as of September 30, 2025, and $8.0 billion as of December 31, 2024, related to the construction of regulated assets.

------

**(4**)&nbsp;&nbsp;&nbsp;&nbsp;**Investments and Restricted Cash and Cash Equivalents and Investments** 

Investments and restricted cash and cash equivalents and investments consists of the following (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Investments:** |  |  |
| &nbsp;&nbsp;&nbsp;BYD Company Limited common stock | $— | $415 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury Bills | 40 |  |
| &nbsp;&nbsp;Company-owned life insurance | 563 | 525 |
| &nbsp;&nbsp;&nbsp;Other | 390 | 394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 993 | 1334 |
| **Equity method investments:** |  |  |
| &nbsp;&nbsp;&nbsp;BHE Renewables tax equity investments | 4079 | 4773 |
| &nbsp;&nbsp;&nbsp;Electric Transmission Texas, LLC | 822 | 761 |
| &nbsp;&nbsp;&nbsp;Iroquois Gas Transmission System, L.P. | 581 | 580 |
| &nbsp;&nbsp;&nbsp;Other | 342 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity method investments | 5824 | 6453 |
| **Restricted cash and cash equivalents and investments:** |  |  |
| &nbsp;&nbsp;&nbsp;Quad Cities Station nuclear decommissioning trust funds | 962 | 871 |
| &nbsp;&nbsp;&nbsp;Other restricted cash and cash equivalents | 231 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total restricted cash and cash equivalents and investments | 1193 | 1065 |
| Total investments and restricted cash and cash equivalents and investments | $8010 | $8852 |
| **Reflected as:** |  |  |
| &nbsp;&nbsp;&nbsp;Other current assets | $303 | $217 |
| &nbsp;&nbsp;&nbsp;Noncurrent assets | 7707 | 8635 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments and restricted cash and cash equivalents and investments | $8010 | $8852 |

---

*Investments*

Gains on marketable securities, net recognized during the period consists of the following (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Unrealized gains recognized on marketable securities held at the reporting date | $13 | $166 | $20 | $234 |
| Net gains recognized on marketable securities sold during the period |  | 102 | 112 | 240 |
| Gains on marketable securities, net | $13 | $268 | $132 | $474 |

---

------

*Cash and Cash Equivalents and Restricted Cash and Cash Equivalents*

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist substantially of funds restricted for debt service obligations for certain of the Company's nonregulated renewable energy projects. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $2155 | $1392 |
| Investments and restricted cash and cash equivalents | 216 | 177 |
| Investments and restricted cash and cash equivalents and investments | 15 | 17 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $2386 | $1586 |

---

**(5**)&nbsp;&nbsp;&nbsp;&nbsp;**Recent Financing Transactions** 

*Long-Term Debt*

In September 2025, Sierra Pacific issued $450 million of its 6.20% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due December 2055. Sierra Pacific will pay interest on the notes at a rate of 6.20% through December 2030, subject to a reset every five years. Sierra Pacific intends to use the net proceeds from the sale of the notes to fund capital expenditures and for general corporate purposes.

In April 2025, Northern Powergrid (Yorkshire) plc issued £250 million of its 6.125% Bonds due April 2050 and intends to use the net proceeds for general corporate purposes.

In March 2025, PacifiCorp issued $850 million of its 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due September 2055. PacifiCorp will pay interest on the notes at a rate of 7.375% through September 2030, subject to a reset every five years, not to reset below 7.375%. PacifiCorp initially used a portion of the net proceeds to repay outstanding short-term debt and intends to use the remaining net proceeds to fund capital expenditures and for general corporate purposes.

In February 2025, Nevada Power issued $300 million of its 6.25% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due May 2055. Nevada Power will pay interest on the notes at a rate of 6.25% through May 2030, subject to a reset every five years. Nevada Power intends to use the net proceeds from the sale of the notes to fund capital expenditures and for general corporate purposes.

In January 2025, Eastern Energy Gas issued $700 million of 5.80% Senior Notes due January 2035 and $500 million of 6.20% Senior Notes due January 2055. Eastern Energy Gas used the net proceeds from the sale of the notes to rebalance its capitalization structure by returning a portion of the equity capital received from its indirect parent, BHE.

*Credit Facilities*

In June 2025, BHE amended its existing $3.5 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

In June 2025, PacifiCorp amended its existing $2.0 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

In June 2025, PacifiCorp amended its existing $900 million 364-day unsecured credit facility expiring in June 2025. The amendment extended the expiration date to June 2026 and amended certain provisions of the existing credit agreement.

------

In June 2025, MidAmerican Energy amended its existing $1.5 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

In June 2025, Nevada Power and Sierra Pacific each amended its existing $600 million and $400 million secured credit facilities expiring in June 2027. The amendments extended the expiration date to June 2028 and amended certain provisions of the existing credit agreements.

In June 2025, HomeServices amended its existing $200 million secured credit facility expiring in September 2026. The amendment extended the expiration date to June 2030, increased the commitment of the lender to $350 million and amended certain provisions of the existing credit agreement.

In February 2025, BHE Canada amended its existing C$50 million unsecured revolving credit facility expiring December 2027. The amendment extended the expiration date to December 2028 and amended certain provisions of the existing credit agreement.

**(6**)&nbsp;&nbsp;&nbsp;&nbsp;**Income Taxes**

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| Income tax credits | (70) | (55) | (66) | (60) |
| State income tax, net of federal income tax impacts | 2 |  | 2 | (1) |
| Income tax effect of foreign income | (1) | (1) | (2) | (2) |
| Effects of ratemaking<sup>(1)</sup> | (6) | (5) | (4) | (5) |
| Equity earnings | (3) | (1) | (3) | (2) |
| Noncontrolling interest | (1) |  | (1) | (1) |
| Other |  | (1) | (1) | 1 |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | (58)% | (42)% | (54)% | (49)% |

---

(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Income tax credits relate primarily to production tax credits ("PTCs") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp, NV Energy and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the nine-month periods ended September 30, 2025 and 2024 totaled $1,673 million and $1,571 million, respectively.

The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway. The Company received net cash payments for federal income taxes from Berkshire Hathaway for the nine-month periods ended September 30, 2025 and 2024 totaling $1,255 million and $1,299 million, respectively.

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**(7**)&nbsp;&nbsp;&nbsp;&nbsp;**Employee Benefit Plans** 

*Domestic Operations*

Net periodic benefit cost (credit) for the domestic pension and other postretirement benefit plans included the following components (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Pension:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service cost | $4 | $3 | $10 | $11 |
| &nbsp;&nbsp;&nbsp;Interest cost | 25 | 25 | 79 | 78 |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | (29) | (30) | (90) | (94) |
| &nbsp;&nbsp;&nbsp;Net amortization | 1 | 3 | 5 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit cost | $1 | $1 | $4 | $2 |
| **Other postretirement:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service cost | $1 | $3 | $3 | $5 |
| &nbsp;&nbsp;&nbsp;Interest cost | 7 | 7 | 21 | 22 |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | (9) | (10) | (27) | (27) |
| &nbsp;&nbsp;&nbsp;Net amortization | (2) |  | (5) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit credit | $(3) | $— | $(8) | $(1) |

---

Amounts other than the service cost for pension and other postretirement benefit plans are recorded in other, net on the Consolidated Statements of Operations. Employer contributions to the domestic pension and other postretirement benefit plans are expected to be $13 million and $1 million, respectively, during 2025. As of September 30, 2025, $9 million and $1 million of contributions had been made to the domestic pension and other postretirement benefit plans, respectively.

*Foreign Operations* 

Net periodic benefit cost (credit) for the United Kingdom pension plan included the following components (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Service cost | $2 | $1 | $4 | $4 |
| Interest cost | 16 | 13 | 45 | 40 |
| Expected return on plan assets | (22) | (20) | (63) | (59) |
| Net amortization | 8 | 8 | 24 | 22 |
| &nbsp;&nbsp;Net periodic benefit cost | $4 | $2 | $10 | $7 |

---

Amounts other than the service cost for the United Kingdom pension plan are recorded in other, net on the Consolidated Statements of Operations. Employer contributions to the United Kingdom pension plan are expected to be £8 million during 2025. As of September 30, 2025, £6 million, or $8 million, of contributions had been made to the United Kingdom pension plan.

------

**(8**)&nbsp;&nbsp;&nbsp;&nbsp;**Fair Value Measurements** 

The carrying value of the Company's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. The Company has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

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

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

The following table presents the Company's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Other**<sup>(1)</sup> |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | | |
| **Assets:** | | | | | |
| Commodity derivatives | $— | $62 | $2 | $(10) | $54 |
| Foreign currency exchange rate derivatives |  | 12 |  |  | 12 |
| Interest rate derivatives | 28 | 28 | 12 |  | 68 |
| Mortgage loans held for sale |  | 663 |  |  | 663 |
| Money market mutual funds | 1919 |  |  |  | 1919 |
| Debt securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government obligations | 318 |  |  |  | 318 |
| &nbsp;&nbsp;&nbsp;Corporate obligations |  | 128 |  |  | 128 |
| &nbsp;&nbsp;&nbsp;Municipal obligations |  | 2 |  |  | 2 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. companies | 539 |  |  |  | 539 |
| &nbsp;&nbsp;&nbsp;International companies | 9 |  |  |  | 9 |
| &nbsp;&nbsp;&nbsp;Investment funds | 287 |  |  |  | 287 |
|  | $3100 | $895 | $14 | $(10) | $3999 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $(12) | $(103) | $(44) | $35 | $(124) |
| Interest rate derivatives |  | (4) | (1) | 2 | (3) |
|  | $(12) | $(107) | $(45) | $37 | $(127) |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Other**<sup>(1)</sup> |<br>**Total** |
| **<u>As of December 31, 2024:</u>** | | | | | |
| **Assets:** | | | | | |
| Commodity derivatives | $— | $81 | $2 | $(22) | $61 |
| Interest rate derivatives | 33 | 42 | 7 |  | 82 |
| Mortgage loans held for sale |  | 528 |  |  | 528 |
| Money market mutual funds | 927 |  |  |  | 927 |
| Debt securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government obligations | 271 |  |  |  | 271 |
| &nbsp;&nbsp;&nbsp;Corporate obligations |  | 109 |  |  | 109 |
| &nbsp;&nbsp;&nbsp;Municipal obligations |  | 2 |  |  | 2 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. companies | 479 |  |  |  | 479 |
| &nbsp;&nbsp;&nbsp;International companies | 424 |  |  |  | 424 |
| &nbsp;&nbsp;&nbsp;Investment funds | 313 |  |  |  | 313 |
|  | $2447 | $762 | $9 | $(22) | $3196 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $(15) | $(141) | $(74) | $31 | $(199) |
| Foreign currency exchange rate derivatives |  | (23) |  |  | (23) |
| Interest rate derivatives |  | (1) | (2) |  | (3) |
|  | $(15) | $(165) | $(76) | $31 | $(225) |

---

(1)Represents netting under master netting arrangements and a net cash collateral receivable of $27 million and $9 million as of September 30, 2025, and December 31, 2024, respectively.

Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which the Company transacts. When quoted prices for identical contracts are not available, the Company uses forward price curves. Forward price curves represent the Company's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. The Company bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent brokers, exchanges, direct communication with market participants and actual transactions executed by the Company. Market price quotations are generally readily obtainable for the applicable term of the Company's outstanding derivative contracts; therefore, the Company's forward price curves reflect observable market quotes. Market price quotations for certain electricity and natural gas trading hubs are not as readily obtainable due to the length of the contract. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, the Company uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of the underlying forward commodity prices, interest rates, currency rates, related volatility, counterparty creditworthiness and duration of contracts.

The Company's mortgage loans held for sale are valued based on independent quoted market prices, where available, or the prices of other mortgage whole loans with similar characteristics. As necessary, these prices are adjusted for typical securitization activities, including servicing value, portfolio composition, market conditions and liquidity.

The Company's investments in money market mutual funds and debt and equity securities are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. In the absence of a quoted market price or net asset value of an identical security, the fair value is determined using pricing models or net asset values based on observable market inputs and quoted market prices of securities with similar characteristics.

------

The following table reconciles the beginning and ending balances of the Company's financial assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions). Transfers out of Level 3 occur primarily due to increased price observability.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| |<br>**Commodity**<br>**Derivatives** | **Interest**<br>**Rate**<br>**Derivatives** |<br>**Commodity**<br>**Derivatives** | **Interest**<br>**Rate**<br>**Derivatives** |
| **<u>2025:</u>** | | | | |
| **Beginning balance** | $(100) | $14 | $(72) | $5 |
| Changes included in earnings<sup>(1)</sup> |  | (3) |  | 6 |
| Changes in fair value recognized in net regulatory assets | (41) |  | (83) |  |
| Settlements | 99 |  | 113 |  |
| **Ending balance** | $(42) | $11 | $(42) | $11 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>2024:</u>** | | | | |
| **Beginning balance** | $(133) | $11 | $(91) | $7 |
| Changes included in earnings<sup>(1)</sup> |  | (1) | (5) | 3 |
| Changes in fair value recognized in net regulatory assets | (50) |  | (130) |  |
| Settlements | 105 |  | 148 |  |
| **Ending balance** | $(78) | $10 | $(78) | $10 |

---

(1)Changes included in earnings for interest rate derivatives are reported net of amounts related to the satisfaction of the associated loan commitment.

The Company's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of the Company's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of the Company's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
| Long-term debt | $56404 | $52529 | $55257 | $50179 |

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(**9)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Commitments*

The Company has the following firm commitments that are not reflected on the Consolidated Balance Sheets.

*Fuel Contracts*

During the nine-month period ended September 30, 2025, PacifiCorp entered into battery storage agreements with commitments totaling approximately $1.8 billion through 2048. In October 2025, an additional battery storage agreement became effective with commitments totaling approximately $343 million through 2046. The facilities associated with these contracts have not yet achieved commercial operation. To the extent these facilities do not achieve commercial operation, PacifiCorp has no obligation to the counterparty.

During the nine-month period ended September 30, 2025, PacifiCorp entered into certain coal supply and transportation agreements totaling $109 million through 2029.

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*Construction Commitments*

During the nine-month period ended September 30, 2025, PacifiCorp became committed under the terms of a previously existing construction funding agreement with Idaho Power Company to support the development of the Boardman to Hemingway 500-kV transmission line. PacifiCorp is committed to contributing up to $460 million toward construction costs, representing PacifiCorp's share of the total estimated project cost of $843 million. In addition, PacifiCorp issued limited notice to proceed for construction contracts totaling $278 million through 2027 for service center and essential services buildings located in Salt Lake City, Utah. The projects are expected to be placed into service mid-2028.

During the nine-month period ended September 30, 2025, MidAmerican Energy entered into firm construction commitments totaling $73 million for the remainder of 2025 through 2028 related to the construction of wind-powered, solar-powered and other new generating facilities in Iowa.

In October 2025, MidAmerican Energy entered into firm construction commitments totaling $531 million for the remainder of 2025 through 2029 related to the construction of wind-powered, solar-powered and other new generating facilities in Iowa.

*Environmental Laws and Regulations*

The Company is subject to federal, state, local and foreign laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal, hazardous and other environmental matters that have the potential to impact the Company's current and future operations. The Company believes it is in material compliance with all applicable laws and regulations.

*Legal Matters*

The Company is party to a variety of legal actions, including litigation, arising out of the normal course of business, some of which assert claims for damages in substantial amounts and are described below. For certain legal actions, parties at times may seek to impose fines, penalties and other costs.

Pursuant to ASC 450, "Contingencies," a provision for a loss contingency is recorded when it is probable a liability is likely to occur and the amount of loss can be reasonably estimated. The Company evaluates the related range of reasonably estimated losses and records a loss based on its best estimate within that range or the lower end of the range if there is no better estimate.

*Wildfires*

A significant number of complaints and demands alleging similar claims related to the Wildfires have been filed in Oregon and California, including a class action complaint in Oregon associated with 2020 Wildfires for which certain jury verdicts were issued as described below. The plaintiffs seek damages for economic losses, noneconomic losses, including mental suffering, emotional distress, personal injury and loss of life, punitive damages, other damages and attorneys' fees. Several insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the aforementioned complaints. Additionally, PacifiCorp received correspondence from the U.S. and Oregon Departments of Justice regarding the potential recovery of certain costs and damages alleged to have occurred on federal and state lands in connection with certain of the 2020 Wildfires. In December 2024, the United States of America filed a complaint against PacifiCorp in conjunction with the correspondence from the U.S. Department of Justice. The civil cover sheet accompanying the complaint demands damages estimated to exceed $900 million. PacifiCorp is actively cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims.

Amounts sought in outstanding complaints and demands filed in Oregon and in certain demands made in California totaled approximately $55 billion, excluding any doubling or trebling of damages or punitive damages included in the complaints and excluding damages that may be sought by additional plaintiffs granted substitution counsel in the *James* class action lawsuit described below. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount. Of the $55 billion, $52 billion represents the economic and noneconomic damages sought in the *James* mass complaints described below. For class actions, amounts specified by the plaintiffs in the complaints include amounts based on estimates of the potential class size, which ultimately may be significantly greater than estimated. Additionally, damages are not limited to the amounts specified in the initially filed complaints as plaintiffs are frequently allowed to amend their complaints to add additional damages and amounts awarded in a court proceeding may be significantly greater than the damages specified. Oregon law provides for doubling of economic and property damages in the event the defendant is found to have acted with gross negligence, recklessness, willfulness or malice. Oregon law provides for trebling of damages associated with timber, shrubs and produce in the event the defendant is determined to have willfully and intentionally trespassed.

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In California, under inverse condemnation, courts have held that investor-owned utilities can be liable for real and personal property damages from wildfires without the utility being found negligent and regardless of fault. California law also permits inverse condemnation plaintiffs to recover reasonable attorney fees and costs. In both Oregon and California, PacifiCorp has equipment in areas accessed through special use permits, easements or similar agreements that may contain provisions requiring it to pay for damages caused by its equipment regardless of fault. Even if inverse condemnation or other provisions do not apply, PacifiCorp could be found liable for all damage.

Based on available information to date, losses have been and will likely continue to be incurred associated with the Wildfires. Final determinations of liability will only be made following the completion of comprehensive investigations, which may be or have been performed by various entities, including the U.S. Department of Agriculture Forest Service ("USFS"), the California Public Utilities Commission, the Oregon Department of Forestry ("ODF") and the Oregon Department of Justice, as well as litigation or similar processes, the outcome of which, if adverse, could, in the aggregate, have a material adverse effect on PacifiCorp's financial condition.

<u>2020 Wildfires</u>

In September 2020, a severe weather event with high winds, low humidity and warm temperatures contributed to several major wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life and widespread power outages in Oregon and Northern California. The wildfires spread across certain parts of PacifiCorp's service territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burning over 500,000 acres in aggregate and include the Santiam Canyon, Beachie Creek, South Obenchain, Echo Mountain Complex, 242, Archie Creek, Slater and other fires. The Slater fire occurred in both Oregon and California. Third-party reports for these wildfires indicate over 2,000 structures destroyed, including residences; several structures damaged; multiple individuals injured; and several fatalities.

In May 2022, the USFS issued its report of investigation into the Archie Creek fire concluding that the probable cause of the fire was power lines owned and operated by PacifiCorp. The USFS report for the Archie Creek fire also states that evidence indicates failure of power line infrastructure. The USFS report of investigation into the Slater fire for the investigation period October 5, 2020, to December 8, 2020, concluded that the fire was caused by a downed power line owned and operated by PacifiCorp. The USFS report for the Slater fire also states that evidence indicates a tree fell onto the power line and that wind blew over the 137-foot tree with internal rot that showed no outward signs of distress and would not have been classified or identified as a hazard tree.

Settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in both the Archie Creek and Slater fires with government timber and suppression cost claims remaining. Additionally, settlements have been reached for all wrongful death claims associated with the 2020 Wildfires.

In April 2023, the USFS issued its report of investigation into a wildland fire that began in the Opal Creek wilderness outside of the Santiam Canyon that was first reported on August 16, 2020 ("Beachie Creek Fire"), approximately three weeks prior to the September 2020 wind event described above. In March 2025, PacifiCorp received the ODF's final investigation report on the Santiam Canyon fires ("ODF's Report"), which concluded that embers from the pre-existing Beachie Creek Fire caused 12 fires within the Santiam Canyon. The ODF's Report also found that PacifiCorp's power lines did not contribute to the overall spread of fire into the Santiam Canyon even though its power lines ignited seven spot fires within the Santiam Canyon that were each suppressed.

The Beachie Creek fire that spread into the Santiam Canyon burned approximately 193,000 acres; the South Obenchain fire burned approximately 33,000 acres; the Echo Mountain Complex fire burned approximately 3,000 acres; and the 242 fire burned approximately 14,000 acres. The *James* cases described below are associated with the Beachie Creek (Santiam Canyon), South Obenchain, Echo Mountain Complex and 242 fires, which are four distinct fires located hundreds of miles apart.

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*The James Case*

On September 30, 2020, a class action complaint against PacifiCorp was filed, captioned *Jeanyne James et al. v. PacifiCorp,* ("*James*") in Oregon Circuit Court in Multnomah County, Oregon ("Multnomah County Circuit Court Oregon"). The complaint was filed by Oregon residents and businesses who sought to represent a class of all Oregon citizens and entities whose real or personal property was harmed beginning on September 7, 2020, by wildfires in Oregon allegedly caused by PacifiCorp. In November 2021, the plaintiffs filed an amended complaint to limit the class to include Oregon citizens allegedly impacted by the Santiam Canyon, Echo Mountain Complex, South Obenchain and 242 fires, as well as to add claims for noneconomic damages. The amended complaint alleged that PacifiCorp's assets contributed to the Oregon wildfires occurring on or after September 7, 2020, and that PacifiCorp acted with gross negligence, among other things. The amended complaint seeks damages similar to those described above, including not less than $600 million of economic damages and in excess of $1 billion of noneconomic damages for the plaintiffs and the class. Since filing of the original class action complaint, numerous James class members have been named and damages specified in various complaints as described below. Additionally, numerous cases were consolidated into the original *James* complaint

As of October 2025, various mass complaints against PacifiCorp naming approximately 1,700 class members have been filed referencing the *James* case as the lead case. These *James* mass complaints make damages-only allegations with substantially all plaintiffs individually seeking $5 million of economic damages, $25 million of noneconomic damages and punitive damages equal to 0.25 times the amount of economic and noneconomic damages, as well as doubling of economic damages. An additional 1,500 plaintiffs have been granted the ability not to be represented by James lead counsel. A small portion of these additional plaintiffs have filed complaints seeking damages similar to those in the mass complaints. PacifiCorp expects additional complaints will be filed for these plaintiffs, including for the portion that are scheduled for trial under the July 2025 case management order described below.

PacifiCorp believes the magnitude of damages sought by the class members in the *James* mass complaints to be of remote likelihood of being awarded based on the amounts awarded in the jury verdicts described below that are being appealed.

*<u>James</u>* <u>Trial Activity</u>

In June 2023, a jury verdict was issued in the first *James* trial finding PacifiCorp's conduct grossly negligent, reckless and willful as to each of the 17 named plaintiffs and the entire class. The jury awarded economic and noneconomic damages. After the jury verdict, the Multnomah County Circuit Court Oregon doubled the economic damages, in accordance with Oregon law, and added punitive damages by applying a 0.25 multiplier to the awarded economic and noneconomic damages. PacifiCorp filed a motion with the Multnomah County Circuit Court Oregon requesting the court offset the damage awards by deducting insurance proceeds received by any of the plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict, including whether the case can proceed as a class action.

Subsequent to the June 2023 *James* verdict, numerous damages phase trials were held with separate jury verdicts issued and damages awarded for each on a basis consistent with the initial trial and relying on the liability determination in the June 2023 *James* verdict. PacifiCorp amended its January 2024 appeal of the June 2023 *James* verdict to include the jury verdicts for the first two damages phase trials. PacifiCorp has filed notices of appeal for the subsequent jury verdicts in the damages phase trials once limited judgments are entered and any post-trial motions filed. Refer to "James Court Activity" below regarding the filing of PacifiCorp's appellate briefs. The appeals process and further actions could take several years.

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The *James* jury verdicts awarded various damages as follows (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Plaintiffs** | **Verdict / Limited Judgment Date** | **Damages**<sup>(1)</sup> | **Damages**<sup>(1)</sup> | **Damages**<sup>(1)</sup> | | | |
|<br>***James* Trial** | **Number of Plaintiffs** | **Verdict / Limited Judgment Date** | **Doubled Economic** | **Non-economic** | **Punitive** |<br>**Insurance Offset**<sup>(2)</sup> |<br>**Net Damages** |<br>**Appeal Filed** |
| **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> |
| Initial *James* trial | 17 | June 2023 / January 2024 | $9 | $67 | $18 | $2 | $92 | Yes |
| First damages | 9 | January 2024 / April 2024 | 12 | 56 | 16 | 4 | 80 | Yes |
| Second damages | 10 | March 2024 / June 2024 | 12 | 23 | 7 | 4 | 38 | Yes |
| Third damages | 8 | February 2025 / April 2025 | 8 | 32 | 9 | 4 | 45 | Yes |
| Fourth damages | 7 | March 2025 / June 2025 | 5 | 34 | 9 | 1 | 47 | Yes |
| Fifth damages | 9 | April 2025 / August 2025 | 5 | 11 | 3 | 1 | 18 | Yes |
| Sixth damages | 10 | May 2025 / July 2025 | 11 | 30 | 9 | 2 | 48 | Yes |
| Seventh damages | 10 | June 2025 / August 2025 | 8 | 28 | 8 | 1 | 43 | Yes |
| Eighth damages | 11 | July 2025 /<br>September 2025 | 10 | 36 | 10 | 3 | 53 |  |
| **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** |
| Ninth damages | 10 | September 2025 | 11 | 63 | 17 | 3 | 88 |  |
| Tenth damages | 8 | October 2025 | 5 | 26 | 7 | 1 | 37 |  |
|  | 109 |  | $96 | $406 | $113 | $26 | $589 |  |

---

(1)For jury verdicts where the limited judgment has not yet been entered, the doubling of economic damages and the application of punitive damages are estimates.

(2)For jury verdicts where limited judgment has been entered, the court offset the awards by the amount of insurance proceeds received by any of the plaintiffs. For jury verdicts where the limited judgment has not yet been entered, the insurance offset is an estimate.

(3)For each limited judgment entered in the court, PacifiCorp has posted or expects to post a supersedeas bond, which stays any effort to seek payment of the judgments pending final resolution of any appeals. Under Oregon Revised Statutes 82.010, interest at a rate of 9% per annum will accrue on the judgments commencing at the date the judgments were entered until the entire money award is paid, amended or reversed by an appellate court. The supersedeas bond posted for the June 2023 *James* verdict covers three years of post-judgment interest while amounts posted for the subsequent verdicts cover two years of post-judgment interest.

Through October 2025, jury verdict awards averaged approximately $5 million per plaintiff, including insurance offset. Additional damages phase trials are scheduled to occur in 2025 through 2028 as described below.

------

*<u>James</u>* <u>Court Activity</u>

In April 2025, PacifiCorp filed its opening brief with the Oregon Court of Appeals in connection with its appeal of the June 2023 *James* verdict and the January and March 2024 verdicts for the first two *James* damages phase trials. In the opening brief, PacifiCorp addresses numerous procedural and legal issues, including that the class certification is improper due to the plaintiffs being impacted by distinct fires with independent ignition points that were hundreds of miles apart; awarding of non-economic damages is not allowed under Oregon law; plaintiffs failed to prove that PacifiCorp caused harm to every class member; and jury instructions applied incorrect legal standards in assessing class-wide evidence and individual claims. Additionally, PacifiCorp incorporated the ODF's Report into its opening appellate brief. Various parties who are not party to the *James* case have filed supportive amicus briefs with the court. Plaintiffs filed their combined answering and cross-appeal brief on August 21, 2025, after plaintiffs requested three delays from the Oregon Court of Appeals. PacifiCorp filed its combined reply brief and cross-appeal answering brief on October 17, 2025. Plaintiffs' reply brief is due on November 7, 2025, unless plaintiffs ask for additional extensions. On October 23, 2025, PacifiCorp filed a request with the Oregon Court of Appeals for an expedited oral argument, which, if granted, will facilitate a more prompt decision from the court.

Subsequent to the first two damages phase trials, nine damages phase trials were scheduled to be held in 2025 in accordance with the Multnomah County Circuit Court Oregon's October 2024 case management order. In March 2025, in consideration of the ODF's Report, PacifiCorp filed a motion to stay the remaining *James* damages phase trials scheduled under the October 2024 case management order. The motion was heard by the court and was denied in April 2025. The remaining damages phase trial ordered under the October 2024 case management order is scheduled to begin December 1, 2025.

On July 28, 2025, the Multnomah County Circuit Court Oregon issued Case Management Order No. 11 ("CMO No. 11") in response to the May 2025 hearing that was held to evaluate the scheduling of additional damages phase trials. As ordered, CMO No. 11 proposes to schedule dozens of trials in 2026 and over 100 more in 2027 and 2028, involving approximately 2,000 plaintiffs. Additionally, CMO No. 11 requires mediation every other month starting in October 2025.

On August 8, 2025, PacifiCorp filed a motion with the Oregon Court of Appeals to stay the *James* damages phase trials addressed in CMO No. 11 and to which plaintiffs' counsel responded on August 29, 2025. On September 23, 2025, the Appellate Commissioner of the Oregon Court of Appeals denied PacifiCorp's motion to stay. On September 26, 2025, PacifiCorp filed a request for reconsideration of the stay denial with the Chief Judge of the Oregon Court of Appeals. On October 13, 2025, the Oregon Court of Appeals issued an order denying PacifiCorp's request for reconsideration. PacifiCorp has 35 days from October 13, 2025, to petition the Oregon Supreme Court to review the Oregon Court of Appeals order.

<u>Potential Effects of</u> *<u>James</u>* <u>CMO No. 11</u>

To appeal the limited judgments, PacifiCorp is required to bond the judgments. As of the date of this filing, PacifiCorp has posted bonds totaling $479 million associated with the limited judgments entered to date for 91 plaintiffs. These bonding requirements will continue to apply to future judgments associated with the CMO No. 11 trial schedule beginning in 2026. As noted above, CMO No. 11 proposes to schedule dozens of trials in 2026 and over 100 more in 2027 and 2028, involving approximately 2,000 plaintiffs. Each trial is subject to and dependent on judicial resources and availability, which will be determined six weeks before each trial. The CMO No. 11 proposed schedule is likely to put significant strain on the Multnomah County Circuit Court system, and PacifiCorp believes this may challenge the court's ability to fulfill the schedule in CMO No. 11.

If, however, the trial schedule and caseload progress as proposed in CMO No. 11 and the future limited judgments follow current trends, PacifiCorp estimates damages awarded in the jury verdicts may exceed its available surety bond and letter of credit capacity, requiring cash to be posted with Multnomah County to stay payment of damages awarded in the subsequent damages trials. PacifiCorp expects additional debt financings, including potential borrowings under its $2.0 billion credit facility subject to its availability, or other sources of funding will be needed to provide liquidity to post cash for judgments. Maintaining this trial schedule will cause significant financial strain on PacifiCorp's liquidity and will put pressure on PacifiCorp's credit metrics due to bonding requirements. Weakening of PacifiCorp's credit metrics could result in a downgrade, potentially below investment grade. Such a downgrade may result in the loss of surety bond and letter of credit capacity; trigger cash collateral calls for surety bonds posted; and trigger additional cash collateral calls or other forms of security for wholesale energy agreements that contain credit-risk-related contingent features or rights to demand adequate assurance in the event of a material adverse change in PacifiCorp's creditworthiness. Additionally, a downgrade of PacifiCorp's senior secured debt below investment grade would require new regulatory applications and approvals due to certain authorizations or exemptions currently in place with certain regulatory commissions for the issuance of securities.

------

PacifiCorp may be unable to obtain the required funding to meet its liquidity needs due to cash requirements for judgments if the trial schedule and case load progresses as proposed in CMO No. 11. Should PacifiCorp be downgraded below investment grade and unable to secure sufficient debt financings or alternative funding sources, it may have insufficient liquidity to support ongoing operations including the ability to absorb wholesale power volatility, pay suppliers and meet debt obligations, and such liquidity issues may impact transmission and generation development, purchasing power in the market, building and upgrading substations, connecting new customers, addressing outages and maintaining system resilience.

Litigation is inherently difficult to predict, and its potential financial impacts are therefore based on assumptions that will change. Furthermore, there may be judicial decisions and other events or circumstances that could improve or worsen the challenges PacifiCorp faces. PacifiCorp believes it will have sufficient liquidity to cover its operations and obligations beyond a year.

<u>2022 McKinney Fire</u>

According to the California Department of Forestry and Fire Protection, a wildfire began on July 29, 2022, in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp's service territory, burning over 60,000 acres. Third-party reports indicate that the 2022 McKinney Fire resulted in 11 structures damaged; 185 structures destroyed, including residences; 12 injuries; and four fatalities. The USFS issued a Wildland Fire Origin and Cause Supplemental Incident Report. The report concluded that a tree coming in contact with a power line is the probable cause of the 2022 McKinney Fire. Settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in the 2022 McKinney Fire with government timber and suppression cost claims remaining. Additionally, PacifiCorp has settled or settled in principle all wrongful death claims associated with the 2022 McKinney Fire.

<u>Estimated Losses for and Settlements Associated with the Wildfires</u>

Based on the facts and circumstances available to PacifiCorp as of the date of this filing, including (i) ongoing cause and origin investigations; (ii) ongoing settlement and mediation activities; (iii) other litigation matters and upcoming legal proceedings; and (iv) the status of the *James* case, PacifiCorp recorded cumulative estimated probable losses associated with the Wildfires of $2,853 million through September 30, 2025. PacifiCorp's cumulative accrual includes estimates of probable losses for fire suppression costs, real and personal property damages, natural resource damages and noneconomic damages such as personal injury damages and loss of life damages that it is reasonably able to estimate at this time and which is subject to change as additional relevant information becomes available.

Through September 30, 2025, PacifiCorp paid $1,399 million in settlements associated with the Wildfires. As a result of the settlements, various trials have been cancelled. In October 2025 and through the date of this filing, PacifiCorp made additional settlement payments related to the Wildfires totaling $1 million.

The following table presents changes in PacifiCorp's liability for estimated losses associated with the Wildfires (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $1381 | $1883 | $1536 | $1723 |
| Accrued losses | 100 |  | 100 | 251 |
| Payments | (27) | (438) | (182) | (529) |
| **Ending balance** | $1454 | $1445 | $1454 | $1445 |

---

As of September 30, 2025, and December 31, 2024, $580 million and $247 million of PacifiCorp's liability for estimated losses associated with the Wildfires was included in other current liabilities on the Consolidated Balance Sheets. The amounts reflected as current as of September 30, 2025, reflect amounts reasonably expected to be paid out within the next year based on settlements reached as well as ongoing settlement and mediation efforts. The remainder of PacifiCorp's liability for estimated losses associated with the Wildfires as of September 30, 2025, and December 31, 2024, was included in other long-term liabilities on the Consolidated Balance Sheets.

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The following table presents changes in PacifiCorp's receivable for expected insurance recoveries associated with the Wildfires (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $— | $139 | $98 | $499 |
| Payments received |  | (5) | (98) | (365) |
| **Ending balance** | $— | $134 | $— | $134 |

---

As of September 30, 2025, PacifiCorp had received all expected insurance recoveries. As of December 31, 2024, PacifiCorp's receivable for expected insurance recoveries was included in other current assets on the Consolidated Balance Sheets. No additional insurance recoveries beyond those received to date are expected to be available.

It is reasonably possible PacifiCorp will incur material additional losses beyond the amounts accrued for the Wildfires that could have a material adverse effect on PacifiCorp's financial condition. PacifiCorp is currently unable to reasonably estimate a specific range of possible additional losses that could be incurred due to the number of properties and parties involved, including claimants in the class to the *James* case and the 2022 McKinney Fire, the variation in the types of properties and damages and the ultimate outcome of legal actions, including mediation, settlement negotiations, jury verdicts and the appeals process.

*HomeServices Antitrust Cases*

HomeServices is currently defending against several antitrust cases, all in federal district courts. In each case, plaintiffs claim HomeServices and certain of its subsidiaries (in one instance, HomeServices and BHE) conspired with co-defendants to artificially inflate real estate commissions by following and enforcing multiple listing service ("MLS") rules that require listing agents to offer a commission split to cooperating agents in order for the property to appear on the MLS ("Cooperative Compensation Rule"). None of the complaints specify damages sought. However, two cases allege Texas state law deceptive trade practices claims, for which plaintiffs have asserted damages totaling approximately $9 billion by separate written notice as required by Texas law.

In April 2019, the *Burnett (formerly Sitzer) et al. v. HomeServices of America, Inc. et al.* complaint was filed in the U.S. District Court for the Western District of Missouri (the "Burnett case"). This lawsuit, which was certified as a class in April 2022, was originally brought on behalf of named plaintiffs Joshua Sitzer and Amy Winger against the National Association of Realtors ("NAR"), Anywhere Real Estate, HomeServices of America, Inc., RE/MAX, LLC, and Keller Williams Realty, Inc. HSF Affiliates LLC and BHH Affiliates, LLC, each a subsidiary of HomeServices, were subsequently added as defendants. Rhonda Burnett became a lead class plaintiff in June 2021. The jury trial commenced on October 16, 2023, and the jury returned a verdict for the plaintiffs on October 31, 2023, finding that the named defendants participated in a conspiracy to follow and enforce the Cooperative Compensation Rule, which conspiracy had the purpose or effect of raising, inflating, or stabilizing broker commission rates paid by home sellers. The jury further found that the class plaintiffs had proved damages in the amount of $1.8 billion. Joint and several liability applies for the co-defendants. Federal law authorizes trebling of damages and the award of pre-judgment interest and attorney fees. Prior to the trial, Anywhere Real Estate and RE/MAX, LLC reached settlement agreements with the plaintiffs. Subsequent to the trial, settlements were reached by Keller Williams, NAR and HomeServices on February 1, 2024, March 15, 2024, and April 25, 2024, respectively. The Anywhere Real Estate, RE/MAX, LLC and Keller Williams settlements received final court approval on May 9, 2024, and the NAR and HomeServices settlements received final court approval on November 27, 2024. The U.S. District Court for the Western District of Missouri entered final judgment on the NAR and HomeServices settlements on January 15, 2025. All settlements have been appealed to the U.S. Court of Appeals for the Eighth Circuit. Initial briefing on all appeals was filed on April 21, 2025, and response briefs were filed on July 21, 2025. Reply briefs are due November 19, 2025.

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The final HomeServices settlement agreement with the plaintiffs settles all claims asserted against HomeServices, HSF Affiliates LLC and BHH Affiliates, LLC in the Burnett case and effectuates a nationwide class settlement. The final settlement agreement includes scheduled payments over four years aggregating $250 million, with payments of $10 million in September 2024 and $57 million in February 2025. HomeServices recognized an after-tax charge of approximately $140 million in the first quarter of 2024, and the liability outstanding as of September 30, 2025, and December 31, 2024, was $152 million and $194 million, respectively. If the settlement is not affirmed by the U.S. Court of Appeals for the Eighth Circuit, HomeServices intends to vigorously appeal on multiple grounds the jury's findings and damage award in the Burnett case, including whether the case can proceed as a class action. The appeals process and further actions could take several years.

*Guarantees*

The Company has entered into guarantees as part of the normal course of business and the sale or transfer of certain assets. These guarantees are not expected to have a material impact on the Company's consolidated financial results.

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

*Energy Products and Services*

The following table summarizes the Company's energy products and services revenue from contracts with customers ("Customer Revenue") by regulated and nonregulated, with further disaggregation of regulated by line of business, including a reconciliation to the Company's reportable segment information included in Note 13 (in millions):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail electric | $1975 | $894 | $1121 | $— | $— | $— | $— | $(1) | $3989 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail gas |  | 90 | 18 |  |  |  |  |  | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 37 | 118 | 16 |  | 1 |  |  | (2) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission and distribution | 46 | 14 | 22 | 260 |  | 162 |  | 2 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interstate pipeline |  |  |  |  | 563 |  |  | (31) | 532 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 31 |  |  |  |  |  |  |  | 31 |
| &nbsp;&nbsp;&nbsp;Total Regulated | 2089 | 1116 | 1177 | 260 | 564 | 162 |  | (32) | 5336 |
| &nbsp;&nbsp;&nbsp;Nonregulated |  |  | 1 | 20 | 269 | 16 | 287 | (1) | 592 |
| Total Customer Revenue | 2089 | 1116 | 1178 | 280 | 833 | 178 | 287 | (33) | 5928 |
| Other revenue | 24 | 10 | (1) | 29 | 2 | 2 | 64 | 1 | 131 |
| Total | $2113 | $1126 | $1177 | $309 | $835 | $180 | $351 | $(32) | $6059 |

---

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail electric | $5333 | $2073 | $2556 | $— | $— | $— | $— | $(3) | $9959 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail gas |  | 504 | 89 |  |  |  |  |  | 593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 65 | 322 | 45 |  | 2 |  |  | (2) | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission and distribution | 128 | 41 | 55 | 884 |  | 480 |  | 2 | 1590 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interstate pipeline |  |  |  |  | 1994 |  |  | (104) | 1890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 93 |  | 1 |  |  |  |  |  | 94 |
| &nbsp;&nbsp;&nbsp;Total Regulated | 5619 | 2940 | 2746 | 884 | 1996 | 480 |  | (107) | 14558 |
| &nbsp;&nbsp;&nbsp;Nonregulated |  | 3 | 5 | 67 | 885 | 62 | 746 | (3) | 1765 |
| Total Customer Revenue | 5619 | 2943 | 2751 | 951 | 2881 | 542 | 746 | (110) | 16323 |
| Other revenue | 72 | 57 | 1 | 87 | 3 | 4 | 148 |  | 372 |
| Total | $5691 | $3000 | $2752 | $1038 | $2884 | $546 | $894 | $(110) | $16695 |

---

------

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail electric | $1789 | $734 | $1275 | $— | $— | $— | $— | $(2) | $3796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail gas |  | 82 | 18 |  |  |  |  |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 25 | 62 | 14 |  | 7 |  |  |  | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission and distribution | 54 | 15 | 23 | 366 |  | 178 |  |  | 636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interstate pipeline |  |  |  |  | 533 |  |  | (32) | 501 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 26 |  |  |  |  |  |  |  | 26 |
| &nbsp;&nbsp;&nbsp;Total Regulated | 1894 | 893 | 1330 | 366 | 540 | 178 |  | (34) | 5167 |
| &nbsp;&nbsp;&nbsp;Nonregulated |  | 2 | 1 | 24 | 239 | 24 | 389 |  | 679 |
| Total Customer Revenue | 1894 | 895 | 1331 | 390 | 779 | 202 | 389 | (34) | 5846 |
| Other revenue | 29 | 12 | 1 | 31 | 38 | 1 | 68 |  | 180 |
| Total | $1923 | $907 | $1332 | $421 | $817 | $203 | $457 | $(34) | $6026 |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail electric | $4628 | $1798 | $3088 | $— | $— | $— | $— | $(3) | $9511 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail gas |  | 424 | 137 |  |  |  |  |  | 561 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 67 | 159 | 44 |  | 7 |  |  | (1) | 276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission and distribution | 137 | 43 | 62 | 986 |  | 510 |  |  | 1738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interstate pipeline |  |  |  |  | 1957 |  |  | (103) | 1854 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 81 |  | 1 |  | 1 |  |  |  | 83 |
| &nbsp;&nbsp;&nbsp;Total Regulated | 4913 | 2424 | 3332 | 986 | 1965 | 510 |  | (107) | 14023 |
| &nbsp;&nbsp;&nbsp;Nonregulated |  | 4 | 4 | 73 | 770 | 87 | 1015 |  | 1953 |
| Total Customer Revenue | 4913 | 2428 | 3336 | 1059 | 2735 | 597 | 1015 | (107) | 15976 |
| Other revenue | 47 | 52 | 3 | 94 | 47 | 2 | 167 | (2) | 410 |
| Total | $4960 | $2480 | $3339 | $1153 | $2782 | $599 | $1182 | $(109) | $16386 |

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(1)The BHE and Other reportable segment represents amounts related principally to other corporate entities, corporate functions and intersegment eliminations.

*Real Estate Services*

The following table summarizes the Company's real estate services Customer Revenue by line of business (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **HomeServices** | **HomeServices** | **HomeServices** | **HomeServices** |
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Customer Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Brokerage | $1089 | $1084 | $3031 | $3068 |
| &nbsp;&nbsp;&nbsp;Franchise | 15 | 14 | 39 | 40 |
| Total Customer Revenue | 1104 | 1098 | 3070 | 3108 |
| Mortgage and other revenue | 81 | 81 | 239 | 226 |
| Total | $1185 | $1179 | $3309 | $3334 |

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*Remaining Performance Obligations*

The following table summarizes the Company's revenue it expects to recognize in future periods related to significant unsatisfied remaining performance obligations for fixed contracts with expected durations in excess of one year as of September 30, 2025, by reportable segment (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Performance obligations expected to be satisfied:** | **Performance obligations expected to be satisfied:** | |
| | **Less than 12 months** | **More than 12 months** |<br>**Total** |
| BHE Pipeline Group | $3232 | $18272 | $21504 |
| BHE Transmission | 160 |  | 160 |
| Total | $3392 | $18272 | $21664 |

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**(11**)&nbsp;&nbsp;&nbsp;&nbsp;**BHE Shareholder's Equity** 

In February 2025, BHE redeemed at par 481,000 shares of its 4.00% Perpetual Preferred Stock from a subsidiary of Berkshire Hathaway Inc. for $481 million, plus an additional amount equal to the accrued dividends on the pro rata shares redeemed.

**(12**)&nbsp;&nbsp;&nbsp;&nbsp;**Components of Accumulated Other Comprehensive Loss, Net** 

The following table shows the change in accumulated other comprehensive loss by each component of other comprehensive income (loss), net of applicable income tax (in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Unrecognized**<br>**Amounts On**<br>**Retirement**<br>**Benefits** | **Foreign**<br>**Currency**<br>**Translation**<br>**Adjustment** | **Unrealized**<br>**Gains**<br>**on Cash**<br>**Flow Hedges** |<br>**Noncontrolling**<br>**Interests** | **AOCI**<br>**Attributable**<br>**To BHE**<br>**Shareholders, Net** |
| **Balance, December 31, 2023** | $(426) | $(1550) | $71 | $1 | $(1904) |
| Other comprehensive (loss) income | (3) | 178 | 4 |  | 179 |
| **Balance, September 30, 2024** | $(429) | $(1372) | $75 | $1 | $(1725) |
| **Balance, December 31, 2024** | $(421) | $(1999) | $78 | $1 | $(2341) |
| Other comprehensive (loss) income | (4) | 533 | (25) |  | 504 |
| **Balance, September 30, 2025** | $(425) | $(1466) | $53 | $1 | $(1837) |

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**(13**)&nbsp;&nbsp;&nbsp;&nbsp;**Segment Information** 

The Company's chief operating decision maker ("CODM") is its President and Chief Executive Officer. Earnings on common shares for each reportable segment are considered by the CODM in allocating resources and capital. The CODM generally considers actual results versus historical results, budgets or forecasts, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital to each reportable segment. The Company's reportable segments with foreign operations include Northern Powergrid, whose business is principally in the United Kingdom, and BHE Transmission, whose business includes operations in Canada. Intersegment eliminations and adjustments, including the allocation of goodwill, have been made. Information related to the Company's reportable segments is shown below (in millions):

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables**<sup>(2)</sup> | **HomeServices** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $2113 | $1126 | $1177 | $309 | $835 | $180 | $351 | $1185 | $(32) | $7244 |
| Cost of sales | 940 | 309 | 545 | 32 | 52 | 5 | 26 | 862 | (33) | 2738 |
| Operations and maintenance | 548 | 241 | 164 | 68 | 314 | 36 | 92 | 271 | 10 | 1744 |
| Depreciation and amortization | 304 | 209 | 143 | 92 | 153 | 54 | 78 | 10 | (1) | 1042 |
| Interest expense | 199 | 104 | 81 | 39 | 72 | 39 | 33 | 1 | 139 | 707 |
| Interest and dividend income | 28 | 10 | 8 | 1 | 13 |  | 3 | 4 | (7) | 60 |
| Income tax expense (benefit) | (102) | (66) | 19 | 11 | 44 | 2 | (196) | 12 | (330) | (606) |
| Equity income (loss) |  |  | 1 |  | 7 | 20 | (159) | 2 |  | (129) |
| Other segment items | 5 | (2) | 22 | (21) | (67) | (8) | (6) | (2) | 18 | (61) |
| Earnings on common shares | $257 | $337 | $256 | $47 | $153 | $56 | $156 | $33 | $194 | $1489 |
| Capital expenditures | $773 | $470 | $850 | $177 | $413 | $81 | $187 | $3 | $— | $2954 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables**<sup>(2)</sup> | **HomeServices** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $5691 | $3000 | $2752 | $1038 | $2884 | $546 | $894 | $3309 | $(110) | $20004 |
| Cost of sales | 2381 | 889 | 1319 | 94 | 173 | 14 | 80 | 2391 | (109) | 7232 |
| Operations and maintenance | 1451 | 704 | 450 | 181 | 816 | 110 | 354 | 799 | 48 | 4913 |
| Depreciation and amortization | 975 | 771 | 419 | 268 | 458 | 158 | 219 | 30 | (1) | 3297 |
| Interest expense | 588 | 314 | 239 | 111 | 214 | 112 | 98 | 4 | 422 | 2102 |
| Interest and dividend income | 89 | 24 | 19 | 5 | 50 | 1 | 10 | 12 | (25) | 185 |
| Income tax expense (benefit) | (154) | (483) | 31 | 52 | 239 | 9 | (850) | 21 | (227) | (1362) |
| Equity income (loss) |  |  | 2 | 1 | 44 | 63 | (525) | 6 |  | (409) |
| Other segment items |  | (21) | 50 | (65) | (254) | (28) | (21) | (19) | 135 | (223) |
| Earnings on common shares | $539 | $808 | $365 | $273 | $824 | $179 | $457 | $63 | $(133) | $3375 |
| Capital expenditures | $2179 | $1210 | $1996 | $505 | $867 | $263 | $407 | $6 | $94 | $7527 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables**<sup>(2)</sup> | **HomeServices** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $1923 | $907 | $1332 | $421 | $817 | $203 | $457 | $1179 | $(34) | $7205 |
| Cost of sales | 862 | 173 | 671 | 29 | 43 | 5 | 152 | 855 | (33) | 2757 |
| Operations and maintenance | 421 | 230 | 155 | 58 | 291 | 48 | 128 | 283 | 12 | 1626 |
| Depreciation and amortization | 287 | 230 | 142 | 87 | 148 | 58 | 68 | 11 |  | 1031 |
| Interest expense | 193 | 109 | 73 | 36 | 43 | 39 | 34 | 1 | 151 | 679 |
| Interest and dividend income | 47 | 13 | 8 | 2 | 16 |  | 4 | 5 | 17 | 112 |
| Income tax expense (benefit) | (79) | (162) | 39 | 37 | 60 | 4 | (169) | 11 | (355) | (614) |
| Equity income (loss) |  |  | 1 |  | 10 | 21 | (108) | 3 |  | (73) |
| Other segment items | 39 | (3) | 3 | (18) | (64) | (8) | (7) | (6) | 274 | 210 |
| Earnings on common shares | $325 | $337 | $264 | $158 | $194 | $62 | $133 | $20 | $482 | $1975 |
| Capital expenditures | $679 | $362 | $375 | $195 | $310 | $61 | $103 | $1 | $22 | $2108 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables**<sup>(2)</sup> | **HomeServices** | **BHE and**<br>**Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $4960 | $2480 | $3339 | $1153 | $2782 | $599 | $1182 | $3334 | $(109) | $19720 |
| Cost of sales | 2076 | 580 | 1875 | 86 | 142 | 17 | 430 | 2407 | (107) | 7506 |
| Operations and maintenance | 1518 | 696 | 423 | 169 | 758 | 121 | 385 | 1030 | 69 | 5169 |
| Depreciation and amortization | 866 | 685 | 419 | 260 | 430 | 174 | 203 | 35 | 3 | 3075 |
| Interest expense | 570 | 327 | 218 | 104 | 126 | 114 | 103 | 7 | 476 | 2045 |
| Interest and dividend income | 156 | 32 | 32 | 5 | 49 | 2 | 11 | 18 | 57 | 362 |
| Income tax expense (benefit) | (178) | (596) | 58 | 90 | 273 | 14 | (691) | (32) | (231) | (1293) |
| Equity income (loss) |  |  | 2 |  | 62 | 67 | (375) | 7 |  | (237) |
| Other segment items | 99 | (14) | 20 | (56) | (237) | (31) | (16) | (8) | 482 | 239 |
| Earnings on common shares | $363 | $806 | $400 | $393 | $927 | $197 | $372 | $(96) | $220 | $3582 |
| Capital expenditures | $2157 | $1100 | $1274 | $474 | $713 | $181 | $283 | $4 | $50 | $6236 |

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(1)The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other, relate principally to other corporate entities, corporate functions and intersegment eliminations.

(2)Income tax expense (benefit) includes the tax attributes of disregarded entities that are not required to pay income taxes and the earnings of which are taxable directly to BHE.

------

The following table summarizes the other segment items category by the Company's reportable segments:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **HomeServices** |
| Property and other taxes | X | X | X | X | X | X | X | X |
| Capitalized interest | X | X | X | X | X | X | X | |
| Allowance for equity funds | X | X | X | | X | X | | |
| Gains (losses) on marketable securities, net | X | X | X | | X | X | X | X |
| Other income (expense), net | X | X | X | X | X | X | X | X |
| Net income attributable to noncontrolling interests | X | | | X | X | X | X | X |

---

The following table summarizes the Company's total assets by reportable segment (in millions):

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;PacifiCorp | $37291 | $36134 |
| &nbsp;&nbsp;&nbsp;MidAmerican Funding | 29392 | 28203 |
| &nbsp;&nbsp;&nbsp;NV Energy | 20737 | 18708 |
| &nbsp;&nbsp;&nbsp;Northern Powergrid | 10737 | 9803 |
| &nbsp;&nbsp;&nbsp;BHE Pipeline Group | 22578 | 22114 |
| &nbsp;&nbsp;&nbsp;BHE Transmission | 9561 | 9098 |
| &nbsp;&nbsp;&nbsp;BHE Renewables | 11778 | 11963 |
| &nbsp;&nbsp;&nbsp;HomeServices | 3525 | 3382 |
| &nbsp;&nbsp;BHE and Other<sup>(1)</sup> | 547 | 735 |
| Total assets | $146146 | $140140 |

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(1)The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other, relate principally to other corporate entities, corporate functions and intersegment eliminations.

The following table shows the change in the carrying amount of goodwill by reportable segment for the nine-month period ended September 30, 2025 (in millions):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **BHE Pipeline Group** | | | | |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **HomeServices** | |
| | **PacifiCorp** | **MidAmerican Funding** | **NV Energy** | **Northern Powergrid** | **BHE Pipeline Group** | **BHE Transmission** | **BHE Renewables** | **HomeServices** |<br>**Total** |
| **December 31, 2024** | $1129 | $2102 | $2369 | $940 | $1814 | $1373 | $95 | $1591 | $11413 |
| Foreign currency translation |  |  |  | 49 |  | 46 |  |  | 95 |
| Other |  |  |  |  |  |  |  | (8) | (8) |
| **September 30, 2025** | $1129 | $2102 | $2369 | $989 | $1814 | $1419 | $95 | $1583 | $11500 |

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

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of the Company during the periods included herein. Explanations include management's best estimate of the impact of weather, customer growth, usage trends and other factors. This discussion should be read in conjunction with the Company's historical unaudited Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. The Company's actual results in the future could differ significantly from the historical results.

BHE, a wholly owned subsidiary of Berkshire Hathaway, is a holding company headquartered in Iowa that has investments in a highly diversified portfolio of locally managed and operated businesses principally engaged in the energy industry. The Company's operations are organized as eight business segments: PacifiCorp, MidAmerican Funding (which primarily consists of MidAmerican Energy), NV Energy (which primarily consists of Nevada Power and Sierra Pacific), Northern Powergrid (which primarily consists of Northern Powergrid (Northeast) plc and Northern Powergrid (Yorkshire) plc), BHE Pipeline Group (which primarily consists of BHE GT&S, Northern Natural Gas and Kern River), BHE Transmission (which consists of BHE Canada (which primarily consists of AltaLink) and BHE U.S. Transmission), BHE Renewables and HomeServices. BHE, through these locally managed and operated businesses, has investments in four utility companies in the U.S. serving customers in 11 states, two electricity distribution companies in Great Britain, five interstate natural gas pipeline companies and interests in an LNG export, import and storage facility in the U.S., an electric transmission business in Canada, interests in electric transmission businesses in the U.S., a renewable energy business primarily investing in wind, solar, geothermal and hydroelectric projects and one of the largest residential real estate brokerage firms and residential real estate brokerage franchise networks in the U.S. The reportable segment financial information includes all necessary adjustments and eliminations needed to conform to the Company's significant accounting policies. The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other, relate principally to other corporate entities, corporate functions and intersegment eliminations.

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**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024**

<u>Overview</u>

Operating revenue and earnings on common shares for the Company's reportable segments are summarized as follows (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Operating revenue:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;PacifiCorp | $2113 | $1923 | $190 | 10% | $5691 | $4960 | $731 | 15% |
| &nbsp;&nbsp;&nbsp;MidAmerican Funding | 1126 | 907 | 219 | 24 | 3000 | 2480 | 520 | 21 |
| &nbsp;&nbsp;&nbsp;NV Energy | 1177 | 1332 | (155) | (12) | 2752 | 3339 | (587) | (18) |
| &nbsp;&nbsp;&nbsp;Northern Powergrid | 309 | 421 | (112) | (27) | 1038 | 1153 | (115) | (10) |
| &nbsp;&nbsp;&nbsp;BHE Pipeline Group | 835 | 817 | 18 | 2 | 2884 | 2782 | 102 | 4 |
| &nbsp;&nbsp;&nbsp;BHE Transmission | 180 | 203 | (23) | (11) | 546 | 599 | (53) | (9) |
| &nbsp;&nbsp;&nbsp;BHE Renewables | 351 | 457 | (106) | (23) | 894 | 1182 | (288) | (24) |
| &nbsp;&nbsp;&nbsp;HomeServices | 1185 | 1179 | 6 | 1 | 3309 | 3334 | (25) | (1) |
| &nbsp;&nbsp;&nbsp;BHE and Other | (32) | (34) | 2 | 6 | (110) | (109) | (1) | (1) |
| Total operating revenue | $7244 | $7205 | $39 | 1% | $20004 | $19720 | $284 | 1% |
| **Earnings on common shares:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;PacifiCorp | $257 | $325 | $(68) | (21)% | $539 | $363 | $176 | 48% |
| &nbsp;&nbsp;&nbsp;MidAmerican Funding | 337 | 337 |  |  | 808 | 806 | 2 |  |
| &nbsp;&nbsp;&nbsp;NV Energy | 256 | 264 | (8) | (3) | 365 | 400 | (35) | (9) |
| &nbsp;&nbsp;&nbsp;Northern Powergrid | 47 | 158 | (111) | (70) | 273 | 393 | (120) | (31) |
| &nbsp;&nbsp;&nbsp;BHE Pipeline Group | 153 | 194 | (41) | (21) | 824 | 927 | (103) | (11) |
| &nbsp;&nbsp;&nbsp;BHE Transmission | 56 | 62 | (6) | (10) | 179 | 197 | (18) | (9) |
| &nbsp;&nbsp;BHE Renewables<sup>(1)</sup> | 156 | 133 | 23 | 17 | 457 | 372 | 85 | 23 |
| &nbsp;&nbsp;&nbsp;HomeServices | 33 | 20 | 13 | 65 | 63 | (96) | 159 | \* |
| &nbsp;&nbsp;&nbsp;BHE and Other | 194 | 482 | (288) | (60) | (133) | 220 | (353) | \* |
| Total earnings on common shares | $1489 | $1975 | $(486) | (25)% | $3375 | $3582 | $(207) | (6)% |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Not meaningful

(1)Includes the tax attributes of disregarded entities that are not required to pay income taxes and the earnings of which are taxable directly to BHE.

Earnings on common shares decreased $486 million for the third quarter of 2025 compared to 2024. Included in these results was a pre-tax gain in the third quarter of 2024 of $255 million ($202 million after-tax) related to the Company's investment in BYD Company Limited. Excluding the impact of this item, earnings on common shares for the third quarter of 2025 decreased $284 million, or 16%, compared to adjusted earnings on common shares for the third quarter of 2024 of $1,773 million.

Earnings on common shares decreased $207 million for the first nine months of 2025 compared to 2024. Included in these results was a pre-tax gain in the first nine months of 2025 of $110 million ($87 million after-tax) compared to a pre-tax gain in the first nine months of 2024 of $444 million ($351 million after-tax) related to the Company's investment in BYD Company Limited. Excluding the impact of this item, adjusted earnings on common shares for the first nine months of 2025 was $3,288 million, an increase of $57 million, or 2%, compared to adjusted earnings on common shares for the first nine months of 2024 of $3,231 million.

------

The changes in earnings on common shares for the third quarter and for the first nine months of 2025 compared to 2024 were primarily due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Utilities' earnings decreased $76 million for the third quarter and increased $143 million for the first nine months of 2025 compared to 2024, primarily due to higher electric utility margin and changes in wildfire loss accruals, which were $100 million higher for the third quarter of 2025 compared to 2024 and $151 million lower for the first nine months of 2025 compared to 2024. These items were partially offset by higher depreciation and amortization expense for the first nine months of 2025, increased operations and maintenance expense, lower interest and dividend income, lower allowances for equity and borrowed funds used during construction, higher interest expense and unfavorable income tax benefits, largely due to the effects of ratemaking and lower PTCs recognized. Electric retail customer volumes increased 2.7% for the first nine months of 2025 compared to 2024, primarily due to higher customer usage and an increase in the average number of customers, partially offset by the unfavorable impact of weather;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Northern Powergrid's earnings decreased $111 million for the third quarter and $120 million for the first nine months of 2025 compared to 2024, primarily due to lower distribution revenue, higher income tax expense from a charge related to the March 2025 enactment of a change in the Energy Profits Levy income tax and higher distribution-related costs, partially offset by lower income tax expense from higher utilization of tax losses from the upstream gas exploration and production business for the first nine months of 2025. Units distributed increased 1.4% for the first nine months of 2025 compared to 2024 mainly due to higher customer usage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BHE Pipeline Group's earnings decreased $41 million for the third quarter and $103 million for the first nine months of 2025 compared to 2024, primarily due to higher interest expense at BHE GT&S from debt issuances in January 2025 and debt refinancings in the fourth quarter of 2024 at higher interest rates, lower earnings at Northern Natural Gas from increased operations and maintenance expense and lower margin on gas sales and lower equity earnings at BHE GT&S, partially offset by higher transportation and storage revenues at Northern Natural Gas and BHE GT&S and higher variable revenue at Cove Point;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BHE Renewables' earnings increased $23 million for the third quarter and $85 million for the first nine months of 2025 compared to 2024, primarily due to higher natural gas and geothermal earnings, higher solar earnings and higher earnings from the wind tax equity investment portfolio for the first nine months of 2025, partially offset by lower earnings from owned wind projects and lower earnings from the wind tax equity investment portfolio for the third quarter of 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HomeServices' earnings increased $13 million for the third quarter and $159 million for the first nine months of 2025 compared to 2024, primarily due to an after-tax charge of approximately $140 million recognized in the first quarter of 2024 associated with a settlement reached in the ongoing real estate industry litigation matters and favorable operating expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BHE and Other's earnings decreased $288 million for the third quarter and $353 million for the first nine months of 2025 compared to 2024. The changes included an unfavorable comparative change of $202 million in the third quarter and $264 million for the first nine months of 2025 and lower net interest and dividend income of $26 million for the third quarter and $84 million for the first nine months of 2025, each related to the Company's investment in BYD Company Limited, lower federal income tax credits recognized on a consolidated basis and unfavorable consolidated income tax adjustments, partially offset by lower interest expense.

<u>Reportable Segment Results</u>

*PacifiCorp* 

Operating revenue increased $190 million for the third quarter of 2025 compared to 2024, primarily due to higher retail revenue of $187 million. Retail revenue increased primarily due to price impacts of $151 million from higher average rates, largely from tariff changes, and $36 million from higher retail volumes. Retail customer volumes increased 2.0% primarily due to higher customer usage and an increase in the average number of customers, partially offset by the unfavorable impact of weather.

------

Earnings decreased $68 million for the third quarter of 2025 compared to 2024, primarily due to higher wildfire loss accruals of $100 million, decreased allowances for equity and borrowed funds used during construction of $31 million, higher operations and maintenance expense of $26 million, lower interest and dividend income of $20 million and increased depreciation and amortization expense of $17 million. These items were partially offset by higher utility margin of $112 million. Operations and maintenance expense increased largely due to higher amortization of demand-side management costs, increased salary and benefit expenses, higher legal fees, increased insurance premiums and higher general and plant maintenance costs, partially offset by lower vegetation management and other wildfire prevention costs. Depreciation and amortization increased largely due to additional assets placed in-service. Utility margin increased primarily due to lower purchased electricity costs and higher retail rates and volumes, partially offset by unfavorable deferred net power costs and higher thermal generation costs.

Operating revenue increased $731 million for the first nine months of 2025 compared to 2024, primarily due to higher retail revenue of $705 million and higher wholesale and other revenue of $26 million. Retail revenue increased primarily due to price impacts of $604 million from higher average rates, largely from tariff changes and favorable adjustments of $87 million due to the buy-down of certain plant balances and regulatory assets pursuant to the Utah general rate case order (fully offset in depreciation and amortization expense), and $101 million from higher retail volumes. Retail customer volumes increased 2.0% primarily due to an increase in the average number of customers, higher customer usage and the favorable impact of weather. Wholesale and other revenue increased primarily due to higher wholesale volumes, partially offset by lower average wholesale prices.

Earnings increased $176 million for the first nine months of 2025 compared to 2024, primarily due to higher utility margin of $426 million, lower wildfire loss accruals of $151 million and a favorable income tax benefit from higher PTCs recognized of $44 million offset by the effects of ratemaking of $17 million. These items were partially offset by higher depreciation and amortization expense of $109 million, decreased allowance for equity and borrowed funds used during construction of $86 million, higher operations and maintenance expense of $84 million, lower interest and dividend income of $68 million and higher interest expense of $19 million. Utility margin increased primarily due to higher retail rates and volumes, lower purchased electricity costs and higher wholesale volumes, partially offset by unfavorable deferred net power costs, higher thermal generation costs and lower wholesale average prices. Depreciation and amortization increased largely due to the buy-down of certain plant balances and regulatory assets pursuant to the Utah general rate case order and additional assets placed in-service. Operations and maintenance expense increased mainly due to higher amortization of demand-side management costs, increased insurance premiums, higher general and plant maintenance costs and increased salary and benefit expenses, partially offset by lower vegetation management and other wildfire prevention costs and higher accruals of federal grant reimbursements. Interest expense increased primarily due to a March 2025 debt issuance.

*MidAmerican Funding*

Operating revenue increased $219 million for the third quarter of 2025 compared to 2024, primarily due to higher electric operating revenue of $212 million. Electric operating revenue increased due to higher retail revenue of $165 million and higher wholesale and other revenue of $47 million. Electric retail revenue increased primarily due to higher recoveries through adjustment clauses of $101 million (fully offset in cost of sales, operations and maintenance expense and income tax benefit) and higher retail volumes of $66 million. Electric retail customer volumes increased 11.3%, primarily due to higher customer usage and the favorable impact of weather. Electric wholesale and other revenue increased mainly due to higher average wholesale prices of $43 million.

Earnings were unchanged for the third quarter of 2025 compared to 2024, primarily due to higher electric utility margin of $82 million and lower depreciation and amortization expense of $21 million, partially offset by an unfavorable income tax benefit, largely from lower PTCs recognized of $51 million and the effects of ratemaking of $14 million, and higher operations and maintenance expense of $11 million. Electric utility margin increased primarily due to higher retail and wholesale revenues, partially offset by higher purchased electricity and thermal generation costs. Depreciation and amortization expense decreased primarily due to the impacts of certain regulatory mechanisms, partially offset by additional assets placed in-service. Operations and maintenance expense increased primarily due to higher general and plant maintenance costs, partially offset by lower administrative and other costs.

------

Operating revenue increased $520 million for the first nine months of 2025 compared to 2024, primarily due to higher electric operating revenue of $422 million and higher natural gas operating revenue of $99 million. Electric operating revenue increased due to higher retail revenue of $284 million and higher wholesale and other revenue of $138 million. Electric retail revenue increased primarily due to higher recoveries through adjustment clauses of $165 million (fully offset in cost of sales, operations and maintenance expense and income tax benefit) and higher retail volumes of $125 million, partially offset by price impacts of $6 million from changes in sales mix. Electric retail customer volumes increased 9.8%, primarily due to higher customer usage and the favorable impact of weather. Electric wholesale and other revenue increased mainly due to higher average wholesale prices of $139 million. Natural gas operating revenue increased primarily due to higher energy-related rates of $92 million (fully offset in cost of sales) from a higher average per-unit cost of natural gas sold and the favorable impact of weather of $7 million.

Earnings increased $2 million for the first nine months of 2025 compared to 2024, primarily due to higher electric utility margin of $205 million, lower interest expense of $13 million and higher allowances for equity and borrowed funds used during construction of $12 million. These items were partially offset by an unfavorable income tax benefit, largely from lower PTCs recognized of $55 million and the effects of ratemaking of $18 million, higher depreciation and amortization expense of $86 million, higher operations and maintenance expense of $8 million, lower interest and dividend income of $8 million and unfavorable changes in the cash surrender value of corporate-owned life insurance policies of $8 million. Electric utility margin increased primarily due to higher retail and wholesale revenues, partially offset by higher purchased electricity and thermal generation costs. Interest expense decreased mainly due to lower outstanding long-term debt balances. Depreciation and amortization expense increased primarily due to the impacts of certain regulatory mechanisms and additional assets placed in-service. Operations and maintenance expense increased primarily due to higher general and plant maintenance costs, partially offset by lower technology, administrative and other costs.

*NV Energy* 

Operating revenue decreased $155 million for the third quarter of 2025 compared to 2024, primarily due to lower electric operating revenue of $155 million. Electric operating revenue decreased primarily due to lower fully bundled energy rates (fully offset in cost of sales) of $123 million, lower customer volumes of $28 million, lower wholesale revenue of $17 million and lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings of $15 million, partially offset by higher base rates of $21 million at Sierra Pacific. Electric retail customer volumes decreased 4.7%, primarily due to the unfavorable impact of weather, partially offset by higher customer usage.

Earnings decreased $8 million for the third quarter of 2025 compared to 2024, primarily due to lower electric utility margin of $31 million, increased operations and maintenance expense of $9 million and higher interest expense of $8 million. These items were partially offset by higher allowances for borrowed and equity funds used during construction of $21 million and a favorable income tax expense, largely from the effects of ratemaking of $10 million and higher PTCs recognized of $3 million. Electric utility margin decreased primarily due to lower retail and wholesale volumes and lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings, partially offset by higher base rates at Sierra Pacific. Operations and maintenance expense increased primarily due to higher technology and other costs and impacts from the 2025 regulatory rate review at Nevada Power. Interest expense increased mainly due to higher outstanding long-term debt balances.

Operating revenue decreased $587 million for the first nine months of 2025 compared to 2024, primarily due to lower electric operating revenue of $540 million and lower natural gas operating revenue of $49 million, largely due to lower energy-related rates (fully offset in costs of sales) from a lower average per-unit cost of natural gas sold. Electric operating revenue decreased primarily due to lower fully bundled energy rates (fully offset in cost of sales) of $501 million, lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings of $35 million, lower customer volumes of $30 million and lower wholesale revenue of $19 million, partially offset by higher base rates of $36 million at Sierra Pacific and higher energy efficiency program rates (fully offset in operations and maintenance expense) of $9 million. Electric retail customer volumes decreased 1.8%, primarily due to the unfavorable impact of weather, partially offset by higher customer usage.

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Earnings decreased $35 million for the first nine months of 2025 compared to 2024, primarily due to lower electric utility margin of $38 million, higher operations and maintenance expense of $27 million, increased interest expense of $21 million and lower interest and dividend income of $13 million. These items were partially offset by higher allowances for borrowed and equity funds used during construction of $32 million and a favorable income tax expense, largely from the effects of ratemaking of $10 million and higher PTCs recognized of $3 million. Electric utility margin decreased primarily due to lower retail and wholesale volumes and lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings, partially offset by higher base rates at Sierra Pacific. Operations and maintenance expense increased primarily due to higher insurance premiums, increased general and plant maintenance costs and impacts from the 2025 regulatory rate review at Nevada Power, partially offset by lower energy efficiency program costs (fully offset in operating revenue) and lower technology and other costs. Interest expense increased mainly due to higher outstanding long-term debt balances.

*Northern Powergrid* 

Operating revenue decreased $112 million for the third quarter of 2025 compared to 2024, primarily due to lower distribution revenue of $116 million, partially offset by $11 million from the weaker U.S. dollar. Distribution revenue decreased primarily due to lower tariff rates of $119 million driven by the impacts of inflation, partially offset by an increase in units distributed of 2.6% mainly due to higher customer usage.

Earnings decreased $111 million for the third quarter of 2025 compared to 2024, primarily due to lower distribution revenue and higher distribution-related costs of $10 million.

Operating revenue decreased $115 million for the first nine months of 2025 compared to 2024, primarily due to lower distribution revenue of $122 million and decreased non-regulated meter rental revenue of $9 million, partially offset by $24 million from the weaker U.S. dollar. Distribution revenue decreased primarily due to lower tariff rates of $118 million driven by the impacts of inflation and lower recoveries of Supplier of Last Resort payments of $12 million (largely offset in cost of sales), partially offset by an increase in units distributed of 1.4% mainly due to higher customer usage.

Earnings decreased $120 million for the first nine months of 2025 compared to 2024, primarily due to lower distribution revenue, higher income tax expense from a charge related to the March 2025 enactment of a change in the Energy Profits Levy income tax of $14 million and higher distribution-related costs of $14 million, partially offset by lower income tax expense from higher utilization of tax losses from the upstream gas exploration and production business of $10 million.

*BHE Pipeline Group*

Operating revenue increased $18 million for the third quarter of 2025 compared to 2024, primarily due to higher operating revenue of $27 million at BHE GT&S and higher non-regulated revenues of $8 million from additional compressor units placed in-service, partially offset by lower operating revenue of $13 million at Kern River, largely due to a decline in variable transportation revenues from lower rates and volumes. The increase in operating revenue at BHE GT&S was primarily due to increased non-regulated revenues of $15 million (largely offset in cost of sales) primarily from higher volumes, higher regulated gas transmission and storage services revenue of $8 million largely from additional capacity contracts and favorable variable revenue at Cove Point of $8 million.

Earnings decreased $41 million for the third quarter of 2025 compared to 2024, primarily due to lower earnings of $27 million at Northern Natural Gas, lower earnings of $11 million at Kern River, largely due to a decline in variable transportation revenues, and lower earnings of $6 million at BHE GT&S. The decrease at Northern Natural Gas was primarily due to higher operations and maintenance expense of $19 million, largely from increased costs for operations projects, decreased interest and dividend income of $6 million and lower margin on gas sales of $5 million from system balancing activities. The decrease at BHE GT&S was primarily due to higher interest expense of $29 million, primarily from debt issuances in January 2025 and debt refinancings in the fourth quarter of 2024 at higher interest rates, partially offset by higher regulated gas transmission and storage services revenue, favorable variable revenue at Cove Point and increased interest and dividend income of $5 million.

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Operating revenue increased $102 million for the first nine months of 2025 compared to 2024, primarily due to higher operating revenue of $105 million at BHE GT&S and higher non-regulated revenues of $25 million from additional compressor units placed in-service, partially offset by lower operating revenue of $14 million at Northern Natural Gas and $13 million at Kern River, largely due to a decline in variable transportation revenues from lower rates and volumes. The increase in operating revenue at BHE GT&S was primarily due to favorable variable revenue at Cove Point of $51 million, increased non-regulated revenues of $41 million (largely offset in cost of sales) primarily from higher volumes and higher regulated gas transmission and storage services revenue of $30 million, largely from additional capacity contracts. The decrease in operating revenue at Northern Natural Gas was primarily due to lower gas sales of $28 million from system balancing activities, partially offset by higher transportation and storage revenues of $15 million due to higher volumes and rates.

Earnings decreased $103 million for the first nine months of 2025 compared to 2024, primarily due to lower earnings of $80 million at Northern Natural Gas, lower earnings of $21 million at BHE GT&S and lower earnings of $10 million at Kern River, largely due to a decline in variable transportation revenues, partially offset by higher non-regulated earnings of $8 million from additional compressor units placed in-service. The decrease at Northern Natural Gas was primarily due to higher operations and maintenance expense of $60 million, largely from increased costs for operations projects, lower margin on gas sales of $26 million from system balancing activities, decreased interest and dividend income of $20 million and higher depreciation and amortization expense of $8 million from additional assets placed in-service, partially offset by higher transportation and storage revenues. The decrease at BHE GT&S was primarily due to higher interest expense of $85 million, primarily from debt issuances in January 2025 and debt refinancings in the fourth quarter of 2024 at higher interest rates, lower equity earnings primarily at Iroquois of $18 million and higher depreciation and amortization expense of $14 million largely from additional assets placed in-service, partially offset by favorable variable revenue at Cove Point, higher regulated gas transmission and storage services revenue and increased interest and dividend income of $22 million.

*BHE Transmission*

Operating revenue decreased $23 million for the third quarter of 2025 compared to 2024, primarily due to the 2024 recovery of costs from the 2023 spring wildfire and storm events of $13 million (fully offset in operations and maintenance expense) and $11 million of lower revenue from non-regulated wind-powered generating facilities from lower generation and pricing.

Earnings decreased $6 million for the third quarter of 2025 compared to 2024, primarily due to lower revenue from non-regulated wind-powered generating facilities, lower equity earnings at ETT and the impact of the AUC's approved return on equity rate decrease at AltaLink.

Operating revenue decreased $53 million for the first nine months of 2025 compared to 2024, primarily due to $28 million of lower revenue from non-regulated wind-powered generating facilities from lower generation and pricing, $14 million from the stronger U.S. dollar and the 2024 recovery of costs from the 2023 spring wildfire and storm events of $13 million (fully offset in operations and maintenance expense).

Earnings decreased $18 million for the first nine months of 2025 compared to 2024, primarily due to lower revenue from non-regulated wind-powered generating facilities, lower equity earnings at ETT, the impact of the AUC's approved return on equity rate decrease at AltaLink and $4 million from the stronger U.S. dollar.

*BHE Renewables* 

Operating revenue decreased $106 million for the third quarter of 2025 compared to 2024, primarily due to lower electric and natural gas retail energy services revenue of $142 million from the sale of customer contracts in December 2024 and lower wind revenue of $10 million from unfavorable changes in the valuation of certain derivative contracts, partially offset by higher natural gas and geothermal revenue of $45 million from higher generation and pricing.

Earnings increased $23 million for the third quarter of 2025 compared to 2024, primarily due to higher geothermal and natural gas earnings of $29 million due to higher generation and lower maintenance costs and higher solar earnings of $21 million from lower maintenance costs, partially offset by lower wind earnings of $23 million. Wind earnings decreased due to lower earnings from owned wind projects of $15 million from unfavorable changes in the valuation of certain derivative contracts and lower PTCs and lower earnings from the wind tax equity investment portfolio of $8 million.

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Operating revenue decreased $288 million for the first nine months of 2025 compared to 2024, primarily due to lower electric and natural gas retail energy services revenue of $384 million from the sale of customer contracts in December 2024 and lower wind revenue of $9 million from lower generation, partially offset by higher natural gas and geothermal revenue of $88 million from higher generation and pricing and higher solar revenue of $20 million from higher generation.

Earnings increased $85 million for the first nine months of 2025 compared to 2024, primarily due to higher natural gas and geothermal earnings of $48 million from higher generation and pricing, partially offset by higher costs associated with a joint venture formed in May 2024, higher solar earnings of $29 million from higher generation and lower maintenance costs and higher wind earnings of $17 million. Wind earnings increased due to higher earnings from the wind tax equity investment portfolio of $39 million, primarily due to the addition of eight tax equity investments from a common control merger completed in December 2024, partially offset by lower earnings from owned wind projects of $22 million mainly due to lower PTCs.

*HomeServices* 

Operating revenue increased $6 million for the third quarter of 2025 compared to 2024, primarily due to higher brokerage and settlement services revenue of $4 million. The increase in brokerage and settlement services revenue resulted from a 2% increase in closed brokerage volume driven by a 5% increase in average sales price.

Earnings increased $13 million for the third quarter of 2025 compared to 2024, primarily due to favorable operating expenses.

Operating revenue decreased $25 million for the first nine months of 2025 compared to 2024, primarily due to lower brokerage and settlement services revenue of $41 million, partially offset by higher mortgage revenue of $13 million. The decrease in brokerage and settlement services revenue resulted from a 5% decrease in closed brokerage units driven by the continued slowdown of overall market activity due to increased interest rates and low inventory. The increase in mortgage revenue was due to a 12% increase in funded volume driven primarily by an 8% increase in average loan size.

Earnings increased $159 million for the first nine months of 2025 compared to 2024, primarily due to an after-tax charge of approximately $140 million recognized in the first quarter of 2024 associated with a settlement reached in the ongoing real estate industry litigation matters and favorable operating expenses.

*BHE and Other*

Earnings decreased $288 million for the third quarter of 2025 compared to 2024, primarily due to the $202 million unfavorable comparative change and lower net interest and dividend income of $26 million each related to the Company's investment in BYD Company Limited, $70 million of lower federal income tax credits recognized on a consolidated basis and unfavorable consolidated income tax adjustments totaling $9 million, partially offset by lower interest expense of $14 million, largely due to lower outstanding long-term debt balances.

Earnings decreased $353 million for the first nine months of 2025 compared to 2024, primarily due to the $264 million unfavorable comparative change and lower net interest and dividend income of $84 million each related to the Company's investment in BYD Company Limited, $36 million of lower federal income tax credits recognized on a consolidated basis and unfavorable consolidated income tax adjustments totaling $36 million, partially offset by lower interest expense of $56 million, largely due to lower outstanding long-term debt balances.

**Liquidity and Capital Resources**

Each of BHE's direct and indirect subsidiaries is organized as a legal entity separate and apart from BHE and its other subsidiaries. It should not be assumed that the assets of any subsidiary will be available to satisfy BHE's obligations or the obligations of its other subsidiaries. However, unrestricted cash or other assets that are available for distribution may, subject to applicable law, regulatory commitments and the terms of financing and ring-fencing arrangements for such parties, be advanced, loaned, paid as dividends or otherwise distributed or contributed to BHE or affiliates thereof. The Company's long-term debt may include provisions that allow BHE or its subsidiaries to redeem such debt in whole or in part at any time. These provisions generally include make-whole premiums. Refer to Note 18 of Notes to Consolidated Financial Statements in Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for further discussion regarding the limitation of distributions from BHE's subsidiaries.

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As of September 30, 2025, the Company's total net liquidity was as follows (in millions):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| |<br>**BHE** |<br>**PacifiCorp** |<br>**MidAmerican**<br>**Funding** |<br>**NV**<br>**Energy** |<br>**Northern**<br>**Powergrid** |<br>**BHE**<br>**Canada** |<br>**HomeServices** | **BHE Pipeline**<br>**Group and**<br>**Other** |<br>**Total** |
| Cash and cash equivalents | $185 | $52 | $934 | $188 | $16 | $90 | $374 | $316 | $2155 |
| Credit facilities<sup>(1)</sup> | 3500 | 2900 | 1509 | 1000 | 370 | 665 | 1950 |  | 11894 |
| Less: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Short-term debt | (710) | (75) |  |  | (156) | (91) | (687) |  | (1719) |
| &nbsp;&nbsp;Tax-exempt bond support and letters of credit |  | (52) | (258) |  |  | (4) |  |  | (314) |
| Net credit facilities | 2790 | 2773 | 1251 | 1000 | 214 | 570 | 1263 |  | 9861 |
| Total net liquidity | $2975 | $2825 | $2185 | $1188 | $230 | $660 | $1637 | $316 | $12016 |
| Credit facilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Maturity dates | 2028 | 2026, 2028 | 2026, 2028 | 2028 | 2026 | 2027, 2028, 2029 | 2026, 2030 |  |  |

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(1)Includes $101 million drawn on capital expenditure and other uncommitted credit facilities at Northern Powergrid.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted, introducing substantial revisions to federal energy-related tax policy. Among its provisions, the OBBBA accelerates the phase-out of clean electricity production and investment tax credits and establishes new sourcing requirements applicable to facilities commencing construction after December 31, 2025. On July 7, 2025, a federal executive order (the "Executive Order") was issued directing the Secretary of the Treasury to promulgate new or revised guidance consistent with applicable law to ensure that policies concerning the "beginning of construction" requirements are not circumvented for wind and solar-powered generating facilities. In response, the U.S. Secretary of the Treasury issued partial guidance on September 2, 2025, through Notice 2025-42. While the guidance largely reaffirmed existing standards, it notably eliminated the five percent safe harbor method for establishing the beginning of construction for projects commencing construction on or after September 2, 2025. The Company is currently evaluating the potential implications of the OBBBA and Notice 2025-42 on its future financial results and will assess its impact on the viability and economics of prospective renewable energy, storage and technology neutral projects.

The Company's future financial performance and capital expenditures related to renewable energy, storage and technology neutral projects may be affected by the combined effects of the OBBBA, the Executive Order, and broader macroeconomic and geopolitical conditions, including changes in international trade policies and tariff regimes. The pace of change in these areas has accelerated during 2025, and significant uncertainty persists regarding the scope and duration of these external factors. Accordingly, the Company is unable to estimate their impact on its business at this time.

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024, were $7.0 billion and $6.2 billion, respectively. The increase was primarily due to changes in working capital, including lower wildfire liability settlement payments, favorable operating results, partially offset by higher cash paid for interest and lower receipts of insurance reimbursements related to wildfire liabilities.

The timing of the Company's income tax cash flows from period to period can be significantly affected by the estimated federal income tax payment methods selected and assumptions made for each payment date.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024, were $(7.0) billion and $(3.6) billion, respectively. The change was primarily due to higher capital expenditures of $1.3 billion, lower proceeds from sales and maturities, net of purchases of U.S. Treasury bills of $1.1 billion and lower proceeds from sales, net of purchases of marketable securities of $1.0 billion. Refer to "Future Uses of Cash" for a discussion of capital expenditures.

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<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month period ended September 30, 2025, was $843 million. Sources of cash totaled $3.8 billion and consisted mainly of proceeds from subsidiary debt issuances of $3.1 billion and net proceeds from short-term debt of $587 million. Uses of cash totaled $3.0 billion and consisted mainly of repayments of BHE senior debt of $1.7 billion, repayments of subsidiary debt of $720 million preferred stock redemptions of $481 million and distributions to noncontrolling interests of $136 million.

For a discussion of recent financing transactions and BHE shareholder's equity transactions, refer to Notes 5 and 11 of Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

Net cash flows from financing activities for the nine-month period ended September 30, 2024, was $(1.5) billion. Sources of cash totaled $5.3 billion and consisted of proceeds from subsidiary debt issuances. Uses of cash totaled $6.8 billion and consisted mainly of net repayments of short-term debt of $3.4 billion, repurchases of common stock totaling $2.3 billion, repayments of subsidiary debt of $921 million and distributions to noncontrolling interests of $129 million.

<u>Future Uses of Cash</u>

The Company has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, the issuance of commercial paper, the use of unsecured revolving credit facilities, the issuance of equity and other sources. These sources are expected to provide funds required for current operations, capital expenditures, acquisitions, investments, debt retirements and other capital requirements. The availability and terms under which BHE and each subsidiary has access to external financing depends on a variety of factors, including regulatory approvals, its credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the utility industry and project finance markets, among other items.

*Capital Expenditures*

The Company has significant future capital requirements. Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, impacts to customer rates; changes in environmental and other rules and regulations; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; load projections; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital.

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The Company's historical and forecast capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items, are as follows (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| **Capital expenditures by business:** |  |  |  |
| &nbsp;&nbsp;&nbsp;PacifiCorp | $2157 | $2179 | $3051 |
| &nbsp;&nbsp;&nbsp;MidAmerican Funding | 1100 | 1210 | 1792 |
| &nbsp;&nbsp;&nbsp;NV Energy | 1274 | 1996 | 2654 |
| &nbsp;&nbsp;&nbsp;Northern Powergrid | 474 | 505 | 706 |
| &nbsp;&nbsp;&nbsp;BHE Pipeline Group | 713 | 867 | 1473 |
| &nbsp;&nbsp;&nbsp;BHE Transmission | 181 | 263 | 373 |
| &nbsp;&nbsp;&nbsp;BHE Renewables | 283 | 407 | 642 |
| &nbsp;&nbsp;&nbsp;HomeServices | 4 | 6 | 11 |
| &nbsp;&nbsp;BHE and Other<sup>(1)</sup> | 50 | 94 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $6236 | $7527 | $10737 |

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| | | | |
|:---|:---|:---|:---|
| **Capital expenditures by type:** | | | |
| &nbsp;&nbsp;Electric distribution | $1618 | $1756 | $2366 |
| &nbsp;&nbsp;Electric transmission | 1101 | 1462 | 1982 |
| &nbsp;&nbsp;Natural gas transmission and storage | 559 | 728 | 1091 |
| &nbsp;&nbsp;Wind generation | 614 | 625 | 907 |
| &nbsp;&nbsp;Solar generation | 218 | 415 | 828 |
| &nbsp;&nbsp;Wildfire prevention | 314 | 622 | 729 |
| &nbsp;&nbsp;Electric battery storage | 134 | 466 | 550 |
| &nbsp;&nbsp;Other | 1678 | 1453 | 2284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $6236 | $7527 | $10737 |

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(1)BHE and Other represents amounts related principally to other entities corporate functions and intersegment eliminations.

The Company's historical and forecast capital expenditures consisted mainly of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric distribution includes both growth and operating expenditures. Growth expenditures include spending for new customer connections and enhancements to existing customer connections. Operating expenditures include spending for ongoing distribution systems infrastructure enhancements at the Utilities and Northern Powergrid, storm damage restoration and repairs and investments in routine expenditures for distribution needed to serve existing and expected demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric transmission includes both growth and operating expenditures. Operating expenditures include spending for system reinforcement, upgrades and replacements of facilities to maintain system reliability and investments in routine expenditures for transmission needed to serve existing and expected demand. Growth expenditures include spending for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ PacifiCorp's transmission investment primarily reflects costs associated with major transmission projects totaling $153 million and $376 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for major transmission projects that are expected to be placed in-service through 2034 totals $104 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Nevada Utilities' Greenlink Nevada transmission expansion program. Expenditures for the expansion program and other growth projects totaled $622 million and $162 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the expansion program estimated to be placed in-service in 2027 through 2028 and other growth projects totals $141 million for the remainder of 2025.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Natural gas transmission and storage includes both growth and operating expenditures. Growth expenditures include, among other items, spending for customer driven expansion projects. Operating expenditures include spending for pipeline integrity projects, automation and controls upgrades, corrosion control, unit exchanges, compressor modifications, projects related to Pipeline and Hazardous Materials Safety Administration natural gas storage rules and natural gas transmission, storage, LNG terminalling infrastructure needs to serve existing and expected demand and asset modernization programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wind generation includes both growth and operating expenditures. Growth expenditures include spending for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction of wind-powered generating facilities at MidAmerican Energy totaling $182 million and $143 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the construction of additional wind-powered generating facilities totals $38 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Repowering of wind-powered generating facilities at MidAmerican Energy totaling $198 million and $169 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the repowering of wind-powered generating facilities totals $186 million for the remainder of 2025. MidAmerican Energy expects its repowered facilities to meet Internal Revenue Service guidelines for the re-establishment of PTCs under the prevailing wage and apprenticeship guidelines for 10 years from the date the facilities are placed in-service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction of new wind-powered generating facilities and construction at existing wind-powered generating facility sites acquired from third parties at PacifiCorp totaling $165 million and $249 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the construction of additional wind-powered generating facilities and those at acquired sites totals $35 million for the remainder of 2025 and is primarily for the Rock Creek I and Rock Creek II wind-powered generating facilities totaling approximately 529 MWs that are expected to be placed in-service in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Repowering of wind-powered generating facilities at BHE Renewables totaling $5 million for the nine-month period ended September 30, 2024. Repowered facilities were placed in-service in the first quarter of 2024 and meet IRS guidelines for the re-establishment of PTCs for 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Solar generation and electric battery storage include growth expenditures, including spending for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction and operation of solar-powered generating facilities at MidAmerican Energy totaling $9 million and $1 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending totals $4 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction of solar-powered generating facilities and co-located battery storage at the Nevada Utilities. Spending for the solar-powered generating facilities totaled $271 million and $114 million, respectively, while spending for the co-located battery storage totaled $378 million and $98 million, respectively, for the nine-month periods ended September 30, 2025 and 2024. Planned spending for the solar-powered generating facility and co-located battery storage total $205 million and $39 million, respectively, for the remainder of 2025. Construction includes expenditures for a 150-MW solar photovoltaic facility with an additional 100 MWs of co-located battery storage that was developed in Clark County, Nevada which commenced commercial operation in May 2024 and a 400-MW solar photovoltaic facility with an additional 400 MWs of co-located battery storage that is being developed in Churchill County, Nevada with ownership share approved by the PUCN of 10% Nevada Power and 90% Sierra Pacific. Commercial operation of the solar facility is expected by early 2027 and commercial operation of the co-located battery storage is expected by mid-2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction of solar-powered generating facilities and co-located battery storage at BHE Renewables. Spending for the solar-powered generating facilities totaled $40 million and $101 million, respectively, while spending for the co-located battery storage totaled $46 million and $34 million, respectively, for the nine-month periods ended September 30, 2025 and 2024. Planned spending for the solar-powered generating facilities and co-located battery storage total $56 million and $25 million, respectively, for the remainder of 2025. Construction includes expenditures for a 48-MW solar photovoltaic facility with an additional 46 MWs of co-located battery storage that will be developed in Kern County, California, with commercial operation expected in 2026 and a 106-MW solar photovoltaic facility with an additional 50 MWs of co-located battery storage located in Jackson County, West Virginia, with commercial operation being completed in three phases between 2026 and 2027.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wildfire prevention includes growth and operating expenditures, including spending for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Expenditures at PacifiCorp totaling $591 million and $264 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for wildfire prevention totals $98 million for the remainder of 2025, and is comprised of reducing wildfire risk in the fire high consequence areas by conversion of overhead systems to underground, replacing overhead bare wire conductor with covered conductors and deployment of advanced protection devices for faster fault detection. The efforts will also include an expansion of the weather station network and predictive tools for situational awareness across the entire service territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Expenditures at the Nevada Utilities totaling $24 million and $33 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for wildfire prevention totals $8 million for the remainder of 2025, and is comprised of reducing wildfire risk in Tier 3 HTAs by rebuilding distribution lines with covered conductor, converting overhead distribution lines to underground and copper wire and pole replacement projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other includes both growth and operating expenditures including spending for routine expenditures for generation and other infrastructure needed to serve existing and expected demand, natural gas distribution, technology, and environmental spending relating to emissions control equipment and the management of coal combustion residuals.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes in cash requirements from the information provided in Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Notes 5 and 9 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

**Regulatory Matters**

BHE's regulated subsidiaries and certain affiliates are subject to comprehensive regulation. The discussion below contains material developments to those matters disclosed in Item 1 of each Registrant's Annual Report on Form 10-K for the year ended December 31, 2024, and new regulatory matters occurring in 2025.

*PacifiCorp*

*Utah*

In May 2024, PacifiCorp filed its EBA application to recover deferred net power costs from 2023. In June 2024, the UPSC approved an interim rate increase of $256 million, or 11.6%, effective July 1, 2024, allowing for recovery of $432 million of deferred net power costs. In February 2025, the UPSC issued a final order reducing the total final EBA recovery by $24 million, primarily for costs related to the Washington Cap and Invest program. The reductions from the final order were reflected in the 2024 EBA filing made in May 2025. In March 2025, PacifiCorp filed a request for review or rehearing regarding the disallowed costs that was denied by the UPSC in April 2025. After the UPSC denied the rehearing, PacifiCorp filed for review with the Utah Supreme Court.

In June 2024, PacifiCorp filed a general rate case requesting a rate increase over two years that included increased net power costs, capital investments in transmission and wind-powered generating facilities and higher insurance premiums for third-party liability coverage. In August 2024, PacifiCorp filed an amended application that removed the second rate increase that was associated with net power costs and updated costs associated with insurance premiums. The amended filing requested a rate increase of $394 million, or 16.7%, effective February 23, 2025. In November and December 2024, PacifiCorp filed updated testimony that further revised the requested rate increase to $330 million, or 14.0%. In April 2025, the UPSC issued a final order approving a rate increase of $87 million, or 3.7%, effective April 25, 2025. Most significantly, the final order substantially limited PacifiCorp's recovery of costs associated with insurance premiums, lowered PacifiCorp's authorized return on equity and equity component of its capital structure, reduced forecast base net power costs, substantially limited recovery for amounts previously deferred under the wildland fire mitigation balancing account and disallowed recovery of Utah's share of PacifiCorp's investment in certain assets on the Klamath River hydroelectric system. In May 2025, PacifiCorp filed a request for rehearing that the UPSC denied in June 2025, except for a partial reconsideration of a mathematical error that granted an additional $7 million related to excess liability insurance premiums. PacifiCorp has filed for review of these decisions with the Utah Supreme Court.

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In May 2025, PacifiCorp filed its EBA application to recover deferred net power costs from 2024. The filing requests recovery of $472 million of deferred net power costs, effective on an interim basis July 1, 2025. The request would result in a rate increase of $40 million, or 1.6%. In June 2025, the UPSC approved the interim rate change, effective July 1, 2025.

*Oregon*

In February 2025, PacifiCorp filed an application for reconsideration or rehearing with the OPUC regarding the level of recovery provided for Oregon's share of wildfire mitigation investments and PacifiCorp's return on investment in its 416-mile, 500-kV high voltage transmission line set forth in the December 2024 general rate case order. In April 2025, the OPUC denied reconsideration, and PacifiCorp is pursuing review of this decision with the Oregon Court of Appeals.

In April 2025, PacifiCorp filed a renewable adjustment clause application with the OPUC to recover the full costs of certain wind-powered generating facilities and associated transmission lines that are being only partially recovered as a result of the December 2024 general rate case order or that were placed into service subsequent to the rate effective date of the last general rate case. The application seeks a rate increase of $51 million, or 2.5%, effective January 1, 2026.

In August 2025, PacifiCorp filed an application to defer the costs of certain wind-powered generating facilities and associated transmission lines not already in rates as of August 15, 2025 through December 31, 2025, when these projects would be included in rates through the renewable adjustment clause.

*Wyoming*

In March 2023, PacifiCorp filed a general rate case requesting a rate increase of $140 million, or 21.6%, to become effective January 1, 2024. In November 2023, the WPSC approved a rate increase of $54 million, or 8.3%, effective January 1, 2024. In January 2024, PacifiCorp filed an application for rehearing requesting the WPSC consider three items, including the WPSC's adjustment to net power costs related to third-party wholesale reserves, costs associated with the Washington Cap and Invest program and the opportunity to revise PacifiCorp's initial revenue requirement request for updates, corrections and revisions reflected in rebuttal testimony. In April 2024, the WPSC denied a rehearing in an open meeting. PacifiCorp is pursuing review of this decision in federal and Wyoming state courts. In September 2025, the U.S. District Court for the District of Wyoming granted PacifiCorp's motion for summary judgment ruling that the WPSC's net power costs adjustment intruded on the FERC's jurisdiction over third-party wholesale reserves. The WPSC and another intervening party have appealed the decision to the Tenth Circuit Court of Appeals.

In August 2024, PacifiCorp filed a general rate case requesting a rate increase of $124 million, or 14.7%, to become effective June 1, 2025. The request included new capital investments in transmission and wind-powered generating facilities, a new insurance cost adjustment mechanism and proposed adjustments to the ECAM. In January 2025, PacifiCorp filed updated testimony that reduced the requested rate increase to $110 million, or 13.1%. In March 2025, a multi-party settlement stipulation was filed that requested a rate increase of $86 million, or 10.2%. In April 2025, the WPSC approved the stipulation as filed, with rates effective June 1, 2025.

In April 2025, PacifiCorp filed its ECAM and renewable revenue adjustment mechanism to recover deferred net power costs from 2024. The combined filing requests a rate decrease of $47 million, or 5.8%, to be effective on an interim basis on July 1, 2025. In June 2025, the WPSC approved the interim rate change, effective July 1, 2025.

*Washington*

In March 2023, PacifiCorp filed a general rate case requesting a two-year rate plan with a rate increase that included recovery of increases in net power costs and new major capital investments in transmission and wind-powered generating facilities. In March 2024, the WUTC accepted the multi-party settlement stipulation for which the first-year rate increase went into effect April 3, 2024. In March 2025, PacifiCorp submitted a compliance filing for the second year of the two-year rate plan, resulting in a rate increase of $16 million, or 3.8%, effective April 3, 2025. The compliance filing included updated net power cost forecasts that resulted in a $5 million decrease to the stipulated second year increase. In April 2025, the WUTC approved the second year increase as filed, effective April 3, 2025.

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As part of the stipulation in the above two-year general rate case, PacifiCorp agreed to file a review and potential refund of provisional capital not placed in-service. After the determination of any refund under the capital review process, PacifiCorp's restated actual rate of return will be compared against the authorized rate of return to determine if any deferral is necessary under Washington's multiyear rate plan legislation. In July 2024, PacifiCorp submitted a provisional capital report for calendar year 2023. During review of the provisional capital report in February 2025, the WUTC ordered a refund of $64,000 related to specific wind-powered generating facilities.

In April 2025, PacifiCorp filed a power cost only rate case, as directed by the WUTC in the 2023 general rate case, to reset the baseline net power costs to remove coal-fueled resources from rates under the Washington 2026 Protocol also proposed in the filing. The filing requests a $34 million, or 7.9%, rate increase effective January 1, 2026. In September 2025, PacifiCorp submitted rebuttal testimony which reflected a lower proposed rate increase of $12 million, or 2.8%. The update is primarily due to Washington Engrossed House Bill 1329, enacted into law in May 2025, that updated types of wholesale power purchases allowed by electric utilities under Washington's Clean Energy Transformation Act.

In June 2025, PacifiCorp filed its power cost adjustment mechanism requesting recovery of deferred net power costs from 2024. The filing requests a rate increase of $56 million, or 10.0%, effective October 1, 2025. In September 2025, the WUTC approved recovery of $57 million, with an updated effective date of February 1, 2026, for most customer classes. Since the 2024 PCAM effective date coincides with the expiration of the larger 2023 PCAM surcharge, customers will experience an overall decrease in rates.

*Idaho*

In March 2025, PacifiCorp filed its ECAM to recover deferred net power costs from 2024. The filing requested a rate increase of $8 million, or 2.2%, effective June 1, 2025, that the IPUC approved in May 2025. The filing excluded costs associated with the Washington Cap and Invest program, for which PacifiCorp filed a deferral application in March 2025, for $2 million in costs incurred in 2024, since recovery of such costs under the 2023 ECAM filing are under appeal in the Idaho Supreme Court. In June 2025, the IPUC approved PacifiCorp's request for deferral of the 2024 costs associated with the Washington Cap and Invest program.

*California*

In May 2022, PacifiCorp filed a general rate case requesting an overall rate change to become effective January 1, 2023. In November 2022, the CPUC granted the requested rate effective date and directed PacifiCorp to establish a memorandum account to track the change in rates beginning January 1, 2023, until the new rates become effective. In February 2023, the CPUC issued a ruling requesting additional information on PacifiCorp's wildfire and risk analyses and requested additional information regarding wildfire memorandum accounts and in March 2023, the CPUC split the general rate case into two tracks. The first track addressed the general rate case and the second track addresses the wildfire memorandum accounts. In December 2023, the CPUC issued an order for the first track approving a rate increase effective January 12, 2024 and recovery of the aforementioned memorandum account over three years. In the second track of the general rate case, PacifiCorp filed the independent audit of the wildfire memorandum accounts in January 2024, indicating no findings. In January 2025, the CPUC issued a proposed decision authorizing PacifiCorp to recover $36 million related to historic wildfire mitigation costs. In February 2025, the CPUC issued a final decision authorizing PacifiCorp to recover these costs over six years, effective April 15, 2025.

In September 2024, PacifiCorp filed to recover costs associated with an event that occurred in 2023 recorded in the catastrophic events memorandum account requesting recovery of $30 million over a two-year period, resulting in an annual rate increase of $15 million, or 10.2%, effective March 1, 2025. In August 2025, parties filed a motion for the CPUC to adopt a joint settlement agreement for $29 million amortized over three years. PacifiCorp anticipates a proposed decision from the CPUC in the fourth quarter of 2025.

In June 2025, the CPUC issued a proposed administrative enforcement order against PacifiCorp for its 2020 wildfire mitigation plan compliance. The order alleges that PacifiCorp did not meet targets in the approved wildfire mitigation plan and did not provide sufficient data to support PacifiCorp's compliance or corrective actions. The order proposes a $27 million penalty. In July 2025, PacifiCorp filed a request for hearing which will take place in May 2026.

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*FERC*

PacifiCorp's wholesale transmission rates are set annually using formula rates approved by the FERC and are updated annually. In May 2024, PacifiCorp published the 2024 annual update of its transmission formula rate in the FERC Docket No. ER24-2004-000 pursuant to its formula rate implementation protocols. The 2024 formula rate update included the impacts of approximately $1,677 million of accrued losses, net of expected insurance recoveries associated with the Wildfires recognized during the year ended December 31, 2023, among other adjustments. Pursuant to the formula rate implementation protocols, PacifiCorp transmission customers are permitted to lodge "preliminary challenges" to the formula rate updates, which provides an informal basis upon which PacifiCorp and the transmission customers may exchange certain information and engage in discussions in order to provide further context to the rates resulting from the updates. Transmission customers are ultimately permitted to lodge "formal challenges" to the formula rate update with the FERC in the event preliminary discussions are not fruitful or do not resolve outstanding issues, and the FERC has an established process to resolve formal challenges. In June 2025, several PacifiCorp transmission customers filed such formal challenges with the FERC, largely seeking to disallow PacifiCorp's recovery of the portion of losses associated with the Wildfires allocable to transmission customers through the formula rate and other, less substantive expenses. In August 2025, PacifiCorp filed a response and procedural motion with the FERC to dismiss the formal challenges on the basis that the formal challenges lack merit and do not support finding that PacifiCorp's Wildfires losses were imprudently incurred. In September 2025, those transmission customers who filed the formal challenges filed responses to PacifiCorp's filing. In October 2025, PacifiCorp filed an additional response with the FERC. PacifiCorp will continue to utilize the FERC-established process to resolve all outstanding issues related to its 2024 annual update.

*Deferral Accounting Treatment for Increased Costs Associated with Wildfires*

In June 2023, PacifiCorp filed an application with the CPUC for authority to establish a Wildfire Expense Memorandum Account to track the costs associated with third-party liability from litigation due to the 2020 Wildfires, increased insurance premium costs associated with third-party liability coverage and costs associated with potential liability for future catastrophic wildfires. In September 2025, the CPUC approved the request to track these costs.

In August 2023, PacifiCorp filed a deferral applications with the WUTC for costs associated with increased insurance premium costs associated with third-party liability coverage. In September 2025, the WUTC approved the request to defer these costs.

*2026 PacifiCorp Inter-Jurisdictional Allocation Protocol*

In August, PacifiCorp filed applications with the UPSC, the OPUC, the WPSC and the IPUC for approval of PacifiCorp's 2026 Inter-Jurisdictional Cost Allocation Protocol ("2026 Protocol"). The 2026 Protocol is intended to supersede the 2020 PacifiCorp Inter-Jurisdictional Allocation Protocol for Utah, Oregon, Wyoming, Idaho and California, and align with the changes proposed in the Washington 2026 Protocol, filed with the April 2025 power cost only rate case. This filing is the first phase in a multi-phased process to transition PacifiCorp's cost-allocation methodology to accommodate diverging resource portfolios and changes to operations needed to address individual state energy policies. If approved, the 2026 Protocol will be effective for new regulatory filings beginning January 1, 2026. The CPUC will consider the 2026 Protocol as part of PacifiCorp's next general rate case filed in California.

*MidAmerican Energy*

*2025 Solar Reliability Project*

In February 2025, MidAmerican Energy filed an application with the IUC for advance ratemaking principles for MidAmerican Energy's 2025 Solar Reliability Project. The application asks the IUC to approve installation of up to 800 MWs of new solar generation in Iowa to meet capacity needs driven by load growth and regional capacity requirements. In July 2025, MidAmerican Energy filed a unanimous settlement with all parties. On September 11, 2025, the IUC issued its final order, approving the unanimous settlement without modification. MidAmerican Energy accepted the ratemaking principles on September 12, 2025, and expects to begin construction in 2025 and place the project's facilities in-service through 2027 and 2028.

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*Iowa Transmission Legislation*

In 2020, Iowa enacted legislation that grants incumbent electric transmission owners the right to construct, own and maintain electric transmission lines that have been approved for construction in a federally registered planning authority's transmission plan and that connect to the incumbent electric transmission owner's facility. This Right of First Refusal ("ROFR") law gave MidAmerican Energy, as an incumbent electric transmission owner, the legal right to construct, own and maintain transmission lines in MidAmerican Energy's service territory that have been approved by the MISO (or another federally registered planning authority) and are eligible to receive regional cost allocation. In October 2020, national transmission interests filed a lawsuit that challenged the law on state constitutional grounds. After an appeal in which the Iowa Supreme Court held the national transmission interests had standing to challenge the law and remanded the case to the Iowa district court for a decision on the merits, the district court, in December 2023, found the legislature impermissibly "log-rolled" the ROFR law into a state appropriations bill in violation of the title and single-subject provisions of the Iowa Constitution and held that the law was unconstitutional and unenforceable. The district court issued an injunction that enjoins MidAmerican Energy and ITC Midwest from further developing the Long Range Transmission Projects ("LRTP") Tranche 1 projects to the extent authority to construct was claimed pursuant to, under, or in reliance on the invalid ROFR law, but allows either company to proceed with projects assigned in a manner not relying on the claimed existence of the law.

In April 2024, MidAmerican Energy and ITC Midwest filed an appeal to the Iowa Supreme Court that challenges the application of the injunction to the LRTP Tranche 1 projects; MISO filed an amicus brief that supports the positions taken by MidAmerican Energy and ITC Midwest.

In May 2024, while the appeal was pending, MISO initiated a variance analysis under its tariff to assess actions that could be taken to mitigate the obstacle to construct posed by the district court injunction. In August 2024, MISO announced the outcome of its variance analysis, which implemented a mitigation plan under the MISO tariff. As part of the mitigation plan, MISO's Competitive Transmission Executive Committee determined the projects should be assigned to the incumbent transmission owners under the transmission owners agreement, which results in no change to the project assignments. MISO affirmed that, pursuant to its tariff, MidAmerican Energy and ITC Midwest remain obligated to construct the projects assigned to each company.

The Iowa Supreme Court held oral arguments in the appeal on April 16, 2025. On May 30, 2025, the Iowa Supreme Court issued its opinion. The Iowa Supreme Court held that the district court's injunction properly restricted the parties from taking any additional action, or relying on prior actions, related to any and all electric transmission line projects in Iowa that were claimed pursuant to, under or in reliance on Iowa's ROFR law. However, the Iowa Supreme Court advised that any relief related to the application of the MISO tariff or the assignment of projects under MISO's variance analysis should be sought from the FERC.

Following the Iowa Supreme Court's opinion, the IUC requested additional briefing in a docket involving an LRTP Tranche 1 project to be constructed by ITC Midwest. The IUC advised that it needed to address "existing barriers to resolution of this and other proposed transmission projects," noting that the Iowa Supreme Court "provided acute clarity with respect to Iowa law and how the Commission should act, or not act, in regard to projects tainted by ROFR" but left unresolved "the impact of federal determinations on these proceedings." MidAmerican Energy filed comments that support the right to proceed with projects assigned under MISO's variance analysis and mitigation plan. At a July 22, 2025 hearing in the ITC Midwest docket, the IUC held that the variance analysis and mitigation plan allowed the project to proceed and encouraged any party that disagreed to "seek appropriate relief from MISO or FERC". No party has taken any action to contest this bench ruling but may still appeal after the IUC issues a final order in ITC Midwest's docket. In the meantime, MidAmerican Energy continues to progress with a franchise petition for its first LRTP Tranche 1 project, consistent with the position taken in ITC Midwest's docket.

Litigation regarding the ROFR law would only affect the manner in which MidAmerican Energy would secure the right to construct transmission lines that are eligible for regional cost allocation and are otherwise subject to competitive bidding under the MISO tariff; it does not negatively affect or implicate MidAmerican Energy's ongoing rights to construct any other transmission lines, including lines required to serve new or expanded retail load, connect new generators or meet reliability criteria.

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*NV Energy (Nevada Power and Sierra Pacific)*

*Regulatory Rate Review*

In February 2025, Nevada Power filed an electric regulatory rate review with the PUCN that requested an annual revenue increase of $215 million, or 9.0%. Nevada Power filed its certification filing in April 2025 that updated the requested annual revenue increase to $224 million, or 9.4%. In May 2025, a settlement was reached in the cost of capital phase, resulting in the return on equity remaining at 9.5% and the capital structure as well as the cost of debt being approved as filed. Hearings for the revenue requirement and rate design phases were held in July 2025. In September 2025, the PUCN issued an order approving an increase in the revenue requirement of $118 million, which includes 50% of construction work in progress in rate base for the Greenlink project, with rates effective October 1, 2025. In October, 2025. Nevada Power filed a petition for reconsideration and clarification of the order. The petition for reconsideration is still pending a PUCN order.

*Wildfire Self-Insurance Policy Filing*

In January 2025, the Nevada Utilities filed applications for approval of the establishment and associated cost recovery of a Wildfire Self-Insurance Policy. The applications request that the PUCN issue an order determining that it is reasonable and prudent for the Nevada Utilities to establish a $500 million wildfire self-insurance policy (the "Policy") in order to have additional wildfire liability insurance in place in the event that a catastrophic wildfire in Nevada is alleged to be caused or exacerbated by the utilities equipment. The Policy would provide $500 million in additional coverage for the Nevada Utilities for third-party claims, and it would be in excess to the commercial wildfire liability insurance the Nevada Utilities possess. In addition, the applications request approval to collect the costs for the Policy in rates over a ten-year period. Hearings before the Commission concluded in June 2025. In July 2025, the PUCN issued an order that approved the application in part and denied the application in part. The PUCN found that the Nevada Utilities need additional wildfire liability insurance in an amount of at least $500 million. However, the PUCN also determined that additional information is necessary to assess whether the self-insurance policy proposed by the Nevada Utilities is prudent under the circumstances and reasonable considering other options, if any. The Nevada Utilities filed the additional information requested by the PUCN in October 2025. The PUCN will schedule additional proceedings to assess the prudency of self-insurance.

*BHE Pipeline Group*

*Northern Natural Gas*

In July 2025, Northern Natural Gas filed a general rate case that proposed an overall annual cost-of-service of $1.6 billion. This is an increase of $286 million above the cost-of-service filed in its 2022 rate case of $1.3 billion, largely due to higher depreciation expense and return allowance of $165 million from increased rate base and an increase in depreciation and negative salvage rates, and increased operations and maintenance expenses of $96 million. Northern Natural Gas requested increases in various rates, including transportation reservation rates ranging from 85% in the Market Area to 130% in the Field Area to be implemented, subject to refund, on August 1, 2025. In July 2025, the FERC issued an order that suspended the rates proposed for five months following the proposed effective date, until January 1, 2026, subject to refund and the outcome of hearing procedures.

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*BHE Transmission*

*AltaLink* 

In May 2025, AltaLink filed its 2026-2027 General Tariff Application and 2023-2024 Deferral Accounts Reconciliation Application with the AUC. In August 2025, AltaLink advised the AUC that it reached a negotiated settlement with customer groups for substantially all its 2026-2027 GTA revenue and the entirety of the 2023-2024 Deferral Accounts Reconciliation Application. AltaLink filed its revised GTA reflecting the terms of the negotiated settlement agreement with total amended revenue requirements of C$919 million and C$960 million for 2026 and 2027, respectively. Under the agreement, AltaLink reduced its applied-for operating expenses by C$4 million and sustaining capital expenditures by C$67 million for the 2026-2027 test period. The agreement does not include, among other items, AltaLink's 2026-2027 Wildfire Mitigation Plan and the execution and costs of the 2024-2025 Wildfire Mitigation Plan, insurance premiums, depreciation on certain asset classes, the regulatory accounting and income tax treatment of certain costs, the proposal of two deferral accounts, and compliance with prior commission decisions. These items will be heard in an AUC hearing in November 2025, with a decision expected in the first quarter of 2026. In September 2025, the AUC approved the negotiated settlement agreement. The AUC will issue the reasons for its approval at a later date. The approved negotiated settlement marks AltaLink's fourth successful negotiated settlement over the past decade, and it secures revenue for AltaLink to balance safety, reliability and affordability for customers.

*BHE U.S. Transmission* 

In January 2025, ETT filed a request with the Public Utilities Commission of Texas ("PUCT") for a $57 million annual base rate increase over its adjusted test year revenues which includes interim transmission rate updates. The rate case sought a prudence review determination on cumulative capital additions included in interim rates since the initial base regulatory review in 2007. In June 2025, ETT filed a unanimous and unopposed settlement with the PUCT with a base rate increase of approximately $20 million. The settlement also included a determination that ETT's invested capital and rate base are prudent and properly included in rates. A motion to approve interim rates was granted in June 2025. In October 2025, the PUCT issued an order approving the June 2025 settlement. The rates approved by the order are identical to the rates approved on an interim basis.

**Environmental Laws and Regulations**

Each Registrant is subject to federal, state, local and foreign laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact each Registrant's current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state, local and international agencies. Each Registrant believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. The discussion below contains material developments to those matters disclosed in Item 1 of each Registrant's Annual Report on Form 10-K for the year ended December 31, 2024, and new environmental matters occurring in 2025.

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*Environmental Deregulation*

On March 12, 2025, the EPA announced a significant deregulatory effort focused on climate change and measures that impact the energy sector. At the core of the deregulatory effort is the plan to reconsider the EPA's 2009 endangerment finding on greenhouse gases. That finding gives the EPA its authority to regulate greenhouse gas emissions by finding they threaten public health. Because the endangerment finding underpins most climate rules, rewriting the scientific finding can streamline the process of undoing those rules for power plants, motor vehicles and other sectors. In addition to the endangerment finding, the EPA announced it will review the following rules and policies relevant to the Registrants: greenhouse gas standards for power plants; methane standards for the oil and natural gas sector; greenhouse gas reporting rule; mercury and air toxics standards; steam electric effluent limitation guidelines; oil and natural gas effluent limitation guidelines; risk management program; hydrofluorocarbon phase-out rule; National Ambient Air Quality Standards for fine particulate matter; regional haze program; state and tribe implementation plans for a variety of air quality rules; exceptional events policy; coal combustion residuals rule; and the definition of waters of the U.S. The EPA has taken the following actions to implement the announcement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The EPA quickly issued guidance narrowing the definition of when a wetland has a "continuous surface connection" to a "water of the United States" and is thus jurisdictional. The guidance aligns with the EPA's view of the U.S. Supreme Court's *Sackett et ux. v. Environmental Protection Agency et al.* decision and supports plans to revise the definitional rule. The EPA said it will pursue a definition that is simple and durable and withstands the test of time. The rulemaking will be the fourth major rewrite of the definition in the last 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 11, 2025, the EPA issued a proposal to rescind the 2024 rules establishing greenhouse gas emissions limits for existing coal-fueled power plants and new natural gas-fueled power plants. The rule contains two co-proposals: The lead proposal would exclude the power sector from Clean Air Act regulation for greenhouse gas emissions on the grounds that the sector does not significantly contribute to dangerous air pollution; the secondary proposal would eliminate the carbon capture and sequestration-based standards and other requirements from the 2024 rules. The effect of the secondary proposal for new natural gas-fueled plants is to leave in place the efficiency-based Phase 1 standards while removing the carbon capture and sequestration-based Phase 2 standards. For existing coal-fueled plants, the removal of carbon capture and sequestration-based and natural gas co-firing-based requirements means that no greenhouse gas emissions requirements would be in place. The proposed rescission could affect facilities at BHE Renewables, MidAmerican Energy, NV Energy and PacifiCorp. The EPA accepted comments on the proposal through August 7, 2025. Until the rulemaking process is complete and litigation exhausted, full impacts to the affected Registrants cannot be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 11, 2025, the EPA issued a proposal to repeal the 2024 amendments to the Mercury and Air Toxics Standards, specifically addressing the residual risk and technology review that informed the amendments. The repeal includes the filterable particulate matter emission standard as a surrogate for non-mercury hazardous air pollutants; the requirement to use continuous emission monitoring systems for measuring and reporting particulate matter emissions; and the mercury emissions standard for existing lignite-fueled electric generating units. The rescission of the first two limits would affect facilities at MidAmerican Energy and PacifiCorp. The EPA accepted comments on the proposal through August 11, 2025. Until the rulemaking process is complete and litigation exhausted, full impacts to the affected Registrants cannot be determined.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The EPA finalized its approval of West Virginia's second planning period regional haze plan, setting a precedent for other states seeking to meet haze reduction goals for 156 national parks and wilderness areas using a more gradual reduction timeline, which often means new pollution control requirements are not necessary. The EPA's approval hinges on a reframing of what states need to do to make reasonable progress toward the objective of restoring natural visibility to those lands by 2064. If states meet what is known as the "uniform rate of progress" on the way to that target, they would be deemed in compliance. The EPA believes that the policy meshes with the purpose of regional haze program regulations to achieve reasonable progress towards Congress' natural visibility goal. Several states have regional haze implementation plans pending with the EPA that are expected to be impacted by this policy which are relevant to the relevant Registrants, including Texas, Arizona, Utah, Wyoming and Nevada. Based on the uniform rate of progress policy, the EPA proposed to approve Texas' SIP for the second planning period in May 2025 and accepted comments through July 23, 2025. The EPA partially disapproved SIPs for Arizona, Utah and Wyoming in December 2024. Wyoming and PacifiCorp filed petitions for reconsideration in January 2025 and remain in coordination with the EPA. PacifiCorp filed a petition for reconsideration of the Utah plan denial in January 2025 and remains in coordination with Utah and the EPA. On April 30, 2025, the EPA granted PacifiCorp's petition for reconsideration on its disapproval of the Utah Regional Haze SIP for the second planning period, as well as PacifiCorp's and Wyoming's petitions for reconsideration on the EPA's disapproval of the second planning period Wyoming Regional Haze SIP. On August 7, 2025, the EPA finalized approval of Wyoming's revision of its first planning period regional haze implementation plan for Jim Bridger Units 1 and 2. On January 30, 2014, the EPA disapproved Wyoming's first planning period regional haze SIP for Dave Johnston Unit 3 and imposed a federal plan that effectively required Unit 3 to shut down by the end of 2027. On September 25, 2025, PacifiCorp and Wyoming filed petitions for reconsideration, requesting that the EPA reconsider the specific part of the SIP disapproval that resulted in the federal plan shutdown requirement. PacifiCorp and Wyoming remain in coordination with the EPA. Both the Utah and Wyoming plan denials were also petitioned to the Tenth Circuit Court of Appeals; the suits are abated while the EPA reviews those underlying decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 17, 2025, the EPA issued a direct final rule and companion proposal that would extend the compliance deadlines for coal combustion residual management units set forth in the legacy CCR rule. The rule would (1) establish an additional option that will allow the phase one and phase two facility evaluation reports to be prepared concurrently so long as both reports are submitted no later than February 8, 2027; (2) extend by 15 months the deadline for CCR management units to comply with the groundwater monitoring provisions, which would make the new compliance deadline August 8, 2029; and (3) make conforming changes to the remaining CCR management unit deadlines that will be impacted by the extended facility evaluation report deadline, including the deadlines to install the groundwater monitoring system, develop the groundwater monitoring sampling and analysis program, initiate detection monitoring and assessment monitoring, complete the initial annual report, prepare written closure and post-closure plans and initiate closure. The EPA will accept comments on the direct final rule and co-proposal through September 15, 2025. Because the package was issued as a direct final rule and a co-proposal, any specific provision that does not receive adverse comment will automatically take effect six months following the end of the 30-day comment period. However, adverse comments were submitted, so the direct final rule will be withdrawn and the EPA will proceed to consider that change under the co-proposal. The EPA anticipates finalizing the CCRMU Deadline Extension Rule by December 15, 2025. Until the rulemaking process is complete and litigation exhausted, full impacts to the affected Registrants cannot be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 29, 2025, the EPA extended several compliance deadlines for the 2024 methane regulation, which covers new and modified oil and gas facilities, including transmission and storage assets. The interim rule was effective immediately. Most compliance deadlines for newly regulated sources, including equipment leaks, tank controls, pneumatic controllers, and super-emitter programs, have been extended by 18 months. Monitoring requirements for flares and enclosed combustion have a shorter, 120-day extension. States were given an additional 10 months to submit plans, now due November 9, 2026. The extension rule provides short-term operational relief for the Registrant BHE Pipeline Group, with additional time to plan and implement compliance measures for new and modified sources affected by the rule. However, the extension rule does not alter the substance of obligations under the methane rule. Additional rulemaking to address the substantive elements of the rule is anticipated in 2026.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 29, 2025, the EPA released a proposed rule titled "Reconsideration of 2009 Endangerment Finding and Greenhouse Gas Vehicle Standards." This proposal would repeal the EPA's 2009 Endangerment Finding, a determination that greenhouse gas emissions qualify as air pollution that endangers human health or the environment. The proposed rescission offers several differing and potentially exclusive approaches to reach a new conclusion. The lead proposal would find that Clean Air Act section 202(a) (the section that authorizes regulation of motor vehicle emissions) does not authorize the EPA to prescribe emission standards based on global climate change concerns. The first alternative proposal would repeal the Endangerment Finding by casting doubt on the underlying record and scientific evidence. A second alternative proposal would not withdraw or repeal the Endangerment Finding but instead would reopen the standards the EPA established in 2024 for greenhouse gas emissions from light, medium, and heavy-duty motor vehicles and would find that there are no requisite emissions control technologies for motor vehicle greenhouse emissions that would meaningfully address global climate change without imposing a greater public health burden by presumed economic loss. Depending on which version of the proposal the EPA chooses to finalize, a primary effect could be to remove the legal basis for Clean Air Act regulation of greenhouse gas emissions for power plants and the natural gas pipeline sector. Specifically, if the EPA finalizes either of the first two alternatives, it may no longer have the necessary predicate to consider greenhouse gas emissions a regulated pollutant for purposes of New Source Performance Standards under CAA section 111 or for New Source Review permitting, based on the scope of the authority the EPA is claiming to repeal. The EPA accepted public comments on the proposal through September 22, 2025. A final decision will likely be challenged in the D.C. Circuit and is expected to land at the U.S. Supreme Court for final adjudication. The legal process could take several years, with significant uncertainty in the short term. Until the rulemaking process is complete and litigation has been exhausted, impacts on the relevant Registrants cannot be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 12, 2025, the EPA issued a proposed rule to rescind its greenhouse gas reporting requirements for nearly all industrial sectors currently subject to its Greenhouse Gas Reporting Program and to suspend until 2034 most oil and gas sector rules, while also repealing mandates for gas distribution operations. If finalized, the proposal would remove reporting obligations for most large facilities; all fuel and industrial gas suppliers; and carbon dioxide injection sites. The agency said that no sector would need to submit reports with 2025 data. However, the proposal would extend the March 31, 2026, deadline for such reports until June 10, 2026, which would "allow the EPA time to issue a final rule prior to the regulatory deadline for reporting year 2025." While power plants would no longer be subject to reporting emissions under the greenhouse gas reporting program, Section 821 of the Clean Air Act Amendments of 1990 established a separate statutory requirement that sources subject to the Title IV Acid Rain Program, principally power plants, must monitor and report carbon dioxide. That obligation is carried out through separate regulations that are not affected by the current proposal. Until the rulemaking process is complete and litigation has been exhausted, impacts on the relevant Registrants cannot be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 29, 2025, the EPA issued a proposed and direct final rule that would extend deadlines for coal-fueled power plants to comply with its Effluent Limitations Guidelines and Standards rule that was finalized in April 2024. The rule has been challenged in court, but the case was put on hold in August 2025 so the EPA could reconsider the rule. The direct final rule would give coal-fueled plants an additional six years, until 2032, to assess compliance pathways, as well as an additional five years, until 2035, to comply with several discharge limits. The proposed rule covers a broader set of topics, including proposals to extend compliance deadlines for the zero-discharge requirements in the 2024 rule and to revise provisions to authorize permitting authorities to exercise site-specific discretion in extending deadlines in response to unforeseen demand. The EPA will accept comments on the direct final rule and proposed rule through November 3, 2025. If no adverse comments are received, the direct final rule extending compliance deadlines will take effect December 1, 2025. If adverse comments are received, the direct final rule will not take effect, and the EPA will consider compliance extensions via the companion proposed rule and comment process. PacifiCorp's Dave Johnston Plant is currently operating under a notice of plan participation, submitted in 2021, which committed to permanent cessation of coal combustion at Dave Johnston Units 1, 2 and 3 by December 31, 2028. The proposed rule presents the opportunity to opt out of the subcategory presented in a notice of plan participation and obtain an alternative applicability date to continue burning coal based on changed circumstances. PacifiCorp is evaluating the proposed rule and changed circumstances for applicability to the Dave Johnston Plant. Until the rulemaking process is complete and litigation has been exhausted, impacts on the relevant Registrants cannot be determined.

------

*Air Quality Regulations*

*<u>Cross-State Air Pollution Rule</u>*

On June 18, 2025, the U.S. Supreme Court issued a unanimous decision in favor of Utah and PacifiCorp in the ozone transport case titled *Oklahoma v. U.S. Environmental Protection Agency*, in which the state and company were parties. The case addressed the proper court venue for the EPA's disapproval of Oklahoma and Utah state ozone transport plans. The court's ruling provides needed clarity and confirms that while SIPs require a careful balance of federal and state collaboration, the Clean Air Act clearly directs that regional courts are the proper court venue for disagreements over the details of those plans. By recognizing that state plans are "undisputedly locally or regionally applicable actions," the court preserved important legal rights for states to have disagreements over their plans heard in the appropriate regional federal circuit court. This enables regional court consideration of the plans and arguments rather than grouping multiple state plans under a national review in the D.C. Circuit. The cases have been transferred back to the Tenth Circuit Court of Appeals, the regional court where they were originally filed. The Tenth Circuit Court of Appeals agreed to abate further litigation while the EPA reconsiders both its earlier disapproval of the state plans and the federal plan it promulgated. To date, the EPA has not taken action on either the state or federal plans.

*<u>Regional Haze</u>*

On August 5, 2025, the EPA approved Iowa's SIP for the regional haze second planning period. The state's plan requires operational improvements to existing control equipment at MidAmerican Energy's Louisa Generation Station and Walter Scott Jr. Energy Center Unit 3. These improvements were permitted by the Iowa Department of Natural Resources and implemented by MidAmerican prior to EPA's approval of the plan.

On September 29, 2025, the EPA issued an advanced notice of proposed rulemaking to solicit information from the public to help develop regulatory changes on the implementation and structure of the Clean Air Act's Regional Haze Rule. The advanced notice does not impose any requirements, but requests input about how the agency can revise the regional haze rule to streamline regulatory requirements impacting states' visibility improvement obligations. The advanced notice requests information regarding (1) development and use of a reasonable progress metric and consideration of the four statutory reasonable progress factors state regulators must take into account when deciding whether to impose further pollution controls on sources such as coal plants; (2) development of SIP obligation criteria used to determine when a plan revision is required; and (3) determining SIP requirements for states that are required to submit plan revisions. As part of these deliberations, the EPA will also consider whether to keep or extend the existing deadline of 2064 for states to attain natural visibility conditions in their Class I areas – national parks and wilderness areas. The EPA will accept comments on the advance notice through December 1, 2025. Until the rulemaking process is complete and litigation has been exhausted, impacts on the relevant Registrants cannot be determined.

*<u>Coal Combustion Residuals</u>*

On August 28, 2025, the EPA proposed to approve Wyoming's coal combustion residuals permit program. A final determination is expected in early 2026. If finalized as proposed, the state will have authority to manage disposal of coal combustion residuals in surface impoundments and landfills in Wyoming, replacing the current federal self-implementing program and bringing PacifiCorp coal ash units at Jim Bridger, Dave Johnston and Naughton under the state program. The pending approval excludes provisions related to legacy CCR units, suspension of groundwater monitoring and alternate groundwater protection standards for constituents without maximum contaminant levels. As a result, facilities must comply with both Wyoming's rules and applicable federal requirements for these excluded provisions. PacifiCorp will submit comments in support of EPA's proposed approval of the state of Wyoming's Coal Combustion Residuals permit program by the November 3, 2025, deadline.

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*Mandatory Climate Change Disclosures*

In October 2023, California enacted three climate-related disclosure laws. Because Berkshire Hathaway Energy does business in California and exceeds certain applicability thresholds, it is subject to all three laws. Reporting under all three statutes covers Berkshire Hathaway Energy's global operations, including operating companies that otherwise do not do business in California. Under California's Voluntary Market Disclosure Act, authorized by Assembly Bill 1305, companies must make certain disclosures if they make claims in California regarding greenhouse gas emissions reductions or if they market, sell, purchase or use voluntary carbon offsets. Berkshire Hathaway Energy posted its disclosure on December 31, 2024 on its company website, with the required information concerning its greenhouse gas emissions reduction goals. Berkshire Hathaway Energy is preparing consolidated disclosures of its scopes 1 and 2 greenhouse gas emissions and the financial risks of climate change to the business. Under California's Corporate Greenhouse Gas Reporting Program, authorized by Senate Bill 253, as amended, Scope 1 and Scope 2 emissions must be reported to California beginning in 2026. While a reporting timeline has not been finalized, the Company anticipates a compliance deadline of June 30, 2026. Scope 3 emissions are not required to be reported until 2027. Under California's Climate-Related Financial Risk Disclosure Program, authorized by Senate Bill 261, as amended, a report discussing the financial impacts of climate change to the business, consistent with the Task Force on Climate-Related Financial Disclosures (TCFD) framework, must be posted to the Company's public website by January 1, 2026. The Company is monitoring litigation challenging both SB 253 and SB 261 to assess impacts on compliance obligations.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of goodwill and long-lived assets, pension and other postretirement benefits, income taxes and loss contingencies. For additional discussion of the Company's critical accounting estimates, see Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in the Company's assumptions regarding critical accounting estimates since December 31, 2024. Refer to Note 9 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for discussion of loss contingencies related to the Wildfires.

------

**PacifiCorp and its subsidiaries** 

**Consolidated Financial Section**

------

**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholder of

PacifiCorp

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of PacifiCorp and subsidiaries ("PacifiCorp") as of September 30, 2025, the related consolidated statements of operations, and changes in shareholders' equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of PacifiCorp as of December 31, 2024, and the related consolidated statements of operations, comprehensive income (loss), changes in shareholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of PacifiCorp's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to PacifiCorp in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Portland, Oregon

October 31, 2025

------

**PACIFICORP AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $46 | $46 |
| &nbsp;&nbsp;Trade receivables, net | 1039 | 960 |
| &nbsp;&nbsp;Other receivables, net | 159 | 245 |
| &nbsp;&nbsp;Inventories | 893 | 828 |
| &nbsp;&nbsp;Regulatory assets | 753 | 891 |
| &nbsp;&nbsp;Prepaid expenses | 173 | 283 |
| &nbsp;&nbsp;Other current assets | 50 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 3113 | 3297 |
| Property, plant and equipment, net | 30564 | 29120 |
| Regulatory assets | 1897 | 2026 |
| Other assets | 583 | 561 |
| **Total assets** | $36157 | $35004 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**PACIFICORP AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;Accounts payable | $1412 | $1462 |
| &nbsp;&nbsp;Accrued interest | 212 | 239 |
| &nbsp;&nbsp;Accrued property, income and other taxes | 244 | 85 |
| &nbsp;&nbsp;Accrued employee expenses | 159 | 96 |
| &nbsp;&nbsp;Short-term debt | 75 | 240 |
| &nbsp;&nbsp;Current portion of long-term debt | 152 | 302 |
| &nbsp;&nbsp;Regulatory liabilities | 63 | 92 |
| &nbsp;&nbsp;Wildfires liabilities (Note 10) | 580 | 247 |
| &nbsp;&nbsp;Other current liabilities | 442 | 466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3339 | 3229 |
| Senior debt | 13191 | 13286 |
| Junior subordinated debt | 841 |  |
| Regulatory liabilities | 2568 | 2550 |
| Deferred income taxes | 3205 | 3222 |
| Wildfires liabilities (Note 10) | 874 | 1289 |
| Other long-term liabilities | 1092 | 916 |
| &nbsp;&nbsp;Total liabilities | 25110 | 24492 |
| Commitments and contingencies (Note 10) |  |  |
| **Shareholders' equity:** |  |  |
| &nbsp;&nbsp;Preferred stock |  | 2 |
| &nbsp;&nbsp;Common stock - 750 shares authorized, no par value, 357 shares issued and outstanding |  |  |
| &nbsp;&nbsp;Additional paid-in capital | 4479 | 4479 |
| &nbsp;&nbsp;Retained earnings | 6577 | 6040 |
| &nbsp;&nbsp;Accumulated other comprehensive loss, net | (9) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 11047 | 10512 |
| **Total liabilities and shareholders' equity** | $36157 | $35004 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**PACIFICORP AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue** | $2113 | $1923 | $5691 | $4960 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;Cost of fuel and energy | 940 | 862 | 2381 | 2076 |
| &nbsp;&nbsp;Operations and maintenance | 448 | 422 | 1351 | 1248 |
| &nbsp;&nbsp;Wildfires losses (Note 10) | 100 |  | 100 | 251 |
| &nbsp;&nbsp;Depreciation and amortization | 304 | 287 | 975 | 866 |
| &nbsp;&nbsp;Property and other taxes | 58 | 55 | 177 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1850 | 1626 | 4984 | 4602 |
| **Operating income** | 263 | 297 | 707 | 358 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;Interest expense | (199) | (193) | (588) | (570) |
| &nbsp;&nbsp;Allowance for borrowed funds | 24 | 33 | 70 | 92 |
| &nbsp;&nbsp;Allowance for equity funds | 33 | 56 | 91 | 156 |
| &nbsp;&nbsp;Interest and dividend income | 28 | 47 | 88 | 155 |
| &nbsp;&nbsp;Other, net | 6 | 4 | 17 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (108) | (53) | (322) | (156) |
| **Income before income tax expense (benefit)** | 155 | 244 | 385 | 202 |
| &nbsp;&nbsp;Income tax expense (benefit) | (102) | (80) | (154) | (174) |
| **Net income** | $257 | $324 | $539 | $376 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**PACIFICORP AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)**

(Amounts in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Preferred**<br>**Stock** |<br>**Common**<br>**Stock** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br>**Total**<br>**Shareholders'**<br>**Equity** |
| **Balance, June 30, 2024** | $2 | $— | $4479 | $5553 | $(10) | $10024 |
| Net income |  |  |  | 324 |  | 324 |
| Other comprehensive income |  |  |  |  | 1 | 1 |
| **Balance, September 30, 2024** | $2 | $— | $4479 | $5877 | $(9) | $10349 |
| **Balance, December 31, 2023** | $2 | $— | $4479 | $5501 | $(10) | $9972 |
| Net income |  |  |  | 376 |  | 376 |
| Other comprehensive income |  |  |  |  | 1 | 1 |
| **Balance, September 30, 2024** | $2 | $— | $4479 | $5877 | $(9) | $10349 |
| **Balance, June 30, 2025** | $— | $— | $4479 | $6320 | $(9) | $10790 |
| Net income |  |  |  | 257 |  | 257 |
| **Balance, September 30, 2025** | $— | $— | $4479 | $6577 | $(9) | $11047 |
| **Balance, December 31, 2024** | $2 | $— | $4479 | $6040 | $(9) | $10512 |
| Net income |  |  |  | 539 |  | 539 |
| Preferred stock redemptions | (2) |  |  | (2) |  | (4) |
| **Balance, September 30, 2025** | $— | $— | $4479 | $6577 | $(9) | $11047 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**PACIFICORP AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net income | $539 | $376 |
| Adjustments to reconcile net income to net cash flows from operating activities: | Adjustments to reconcile net income to net cash flows from operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 975 | 866 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (91) | (156) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net power cost deferrals | (270) | (549) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of net power cost deferrals | 694 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other changes in regulatory assets and liabilities | (149) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and amortization of investment tax credits | (96) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 12 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables, other receivables and other assets | (72) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (65) | (231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative collateral, net | (16) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 98 | (174) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes, net | 163 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 19 | 117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wildfires insurance receivable | 98 | 365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wildfires liability | (82) | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 1757 | 671 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;Capital expenditures | (2179) | (2157) |
| &nbsp;&nbsp;Other, net | 8 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (2171) | (2150) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Proceeds from senior debt |  | 3762 |
| &nbsp;&nbsp;Proceeds from junior subordinated debt | 841 |  |
| &nbsp;&nbsp;Repayments of senior debt | (250) | (425) |
| &nbsp;&nbsp;Net repayments of short-term debt | (165) | (1604) |
| &nbsp;&nbsp;Redemptions and repurchases of preferred stock | (4) |  |
| &nbsp;&nbsp;Other, net | (4) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 418 | 1729 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 4 | 250 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 61 | 192 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $65 | $442 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**PACIFICORP AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General** 

PacifiCorp, which includes PacifiCorp and its subsidiaries, is a U.S. regulated electric utility company serving retail customers, including residential, commercial, industrial, irrigation and other customers in portions of Utah, Oregon, Wyoming, Washington, Idaho and California. PacifiCorp owns, or has interests in, a number of thermal, hydroelectric, wind-powered and geothermal generating facilities, as well as electric transmission and distribution assets. PacifiCorp also buys and sells electricity on the wholesale market with other utilities, energy marketing companies, financial institutions and other market participants. PacifiCorp is subject to comprehensive state and federal regulation. PacifiCorp's subsidiaries support its electric utility operations by providing coal mining services. PacifiCorp is an indirect subsidiary of Berkshire Hathaway Energy Company ("BHE"), a holding company headquartered in Iowa that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The Consolidated Statements of Comprehensive Income (Loss) have been omitted as net income (loss) materially equals comprehensive income (loss) for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in PacifiCorp's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in PacifiCorp's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025. Refer to Note 10 for discussion of loss contingencies related to the Oregon and Northern California 2020 wildfires (the "2020 Wildfires") and the wildfire that began in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California in July 2022 (the "2022 McKinney Fire"), collectively referred to as the "Wildfires."

*Segment Information*

PacifiCorp currently has one reportable segment, its regulated electric utility operations, which derives its revenue from regulated retail sales of electricity to residential, commercial, industrial and irrigation customers and from wholesale sales. PacifiCorp's chief operating decision maker ("CODM") is its Chief Executive Officer. The CODM uses net income, as reported on the Consolidated Statements of Operations, and generally considers actual results versus historical results, budgets or forecasts, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital. The segment expenses regularly provided to the CODM align with the captions presented on the Consolidated Statements of Operations. PacifiCorp's segment capital expenditures are reported on the Consolidated Statements of Cash Flows as capital expenditures. PacifiCorp's segment assets are reported on the Consolidated Balance Sheet as total assets.

------

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. PacifiCorp is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. PacifiCorp is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Cash and Cash Equivalents and Restricted Cash and Cash Equivalents**

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist substantially of funds representing vendor retention, nuclear decommissioning and custodial funds. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $46 | $46 |
| Restricted cash and cash equivalents included in other current assets | 16 | 12 |
| Restricted cash included in other assets | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $65 | $61 |

---

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**(4)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net** 

Property, plant and equipment, net consists of the following (in millions):

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| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| |<br>**Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Utility plant:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Generation | 15 - 59 years | $15142 | $14316 |
| &nbsp;&nbsp;&nbsp;Transmission | 60 - 90 years | 11490 | 10939 |
| &nbsp;&nbsp;&nbsp;Distribution | 20 - 75 years | 10674 | 9842 |
| &nbsp;&nbsp;Intangible plant and other | 2 - 75 years | 2622 | 2958 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service |  | 39928 | 38055 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (13146) | (12504) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service, net |  | 26782 | 25551 |
| Nonregulated, net of accumulated depreciation and amortization | 34 - 75 years | 19 | 19 |
|  |  | 26801 | 25570 |
| Construction work-in-progress |  | 3763 | 3550 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $30564 | $29120 |

---

In April 2025, PacifiCorp recorded $87 million in depreciation expense associated with the buy-down of certain plant balances and regulatory assets pursuant to the Utah general rate case order.

*Government Grants*

On January 20, 2025, U.S. federal executive order entitled *Unleashing American Energy* was issued requiring federal agencies to immediately pause disbursement of federal funds appropriated under the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act, subject to respective agency review within 90 days of the date of the order of the agency's processes, policies and programs for issuing grants consistent with the policies stated in the executive order. The pause was lifted on federal funding disbursements in April 2025 and the invoice process resumed.

As of September 30, 2025, and December 31, 2024, approximately $46 million and $11 million, respectively, of federal grant funds reduced additions to property, plant and equipment – net on the Consolidated Balance Sheets. During the nine-month period ended September 30, 2025, approximately $17 million of federal grant funds reduced operating expenses on the Consolidated Statements of Operations. Federal grant funds received during the nine-month period ended September 30, 2024, were insignificant.

**(5**)&nbsp;&nbsp;&nbsp;&nbsp;**Recent Financing Transactions** 

*Junior Subordinated Debt*

In March 2025, PacifiCorp issued $850 million of its 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due September 2055. PacifiCorp will pay interest on the notes at a rate of 7.375% through September 2030, subject to a reset every five years, not to reset below 7.375%. PacifiCorp initially used a portion of the net proceeds to repay outstanding short-term debt and intends to use the remaining net proceeds to fund capital expenditures and for general corporate purposes.

*Credit Facilities*

In June 2025, PacifiCorp amended its existing $2.0 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

In June 2025, PacifiCorp amended its existing $900 million 364-day unsecured credit facility expiring in June 2025. The amendment extended the expiration date to June 2026 and amended certain provisions of the existing credit agreement.

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**(6)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes** 

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| State income tax, net of federal income tax impacts | 4 | 3 | 5 | 4 |
| Income tax credits | (69) | (37) | (50) | (74) |
| Effects of ratemaking<sup>(1)</sup> | (21) | (18) | (15) | (35) |
| Other | (1) | (2) | (1) | (2) |
| &nbsp;&nbsp;Effective income tax rate | (66)% | (33)% | (40)% | (86)% |

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(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Income tax credits relate primarily to production tax credits ("PTC") from PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended September 30, 2025 and 2024, totaled $107 million and $92 million, respectively. PTCs recognized for the nine-month periods ended September 30, 2025 and 2024, totaled $194 million and $150 million, respectively.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, PacifiCorp's provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For the nine-month period ended September 30, 2025 and 2024, PacifiCorp received net cash payments for federal and state income taxes from BHE totaling $136 million and $240 million, respectively. As of September 30, 2025, net income taxes payable to BHE were $86 million. As of December 31, 2024, federal income taxes receivable from BHE were $3 million and state income taxes payable to BHE were $11 million.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans** 

Net periodic benefit cost (credit) for the pension and other postretirement benefit plans included the following components (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Pension:** |  |  |  |  |
| &nbsp;&nbsp;Interest cost | $9 | $9 | $28 | $27 |
| &nbsp;&nbsp;Expected return on plan assets | (11) | (11) | (34) | (35) |
| &nbsp;&nbsp;Net amortization | 1 | 2 | 5 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit credit | $(1) | $— | $(1) | $(1) |
| **Other postretirement:** |  |  |  |  |
| &nbsp;&nbsp;Service cost | $— | $— | $— | $— |
| &nbsp;&nbsp;Interest cost | 3 | 3 | 8 | 9 |
| &nbsp;&nbsp;Expected return on plan assets | (3) | (4) | (9) | (10) |
| &nbsp;&nbsp;Net amortization | (1) |  | (2) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit credit | $(1) | $(1) | $(3) | $(3) |

---

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Amounts other than the service cost for pension and other postretirement benefit plans are recorded in other, net on the Consolidated Statements of Operations. Employer contributions to the pension and other postretirement benefit plans are expected to be $4 million and $— million, respectively, during 2025. As of September 30, 2025, $3 million of contributions had been made to the pension plans.

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Risk Management and Hedging Activities** 

PacifiCorp is exposed to the impact of market fluctuations in commodity prices and interest rates. PacifiCorp is principally exposed to electricity, natural gas, coal and fuel oil commodity price risk as it has an obligation to serve retail customer load in its service territories. PacifiCorp's load and generating facilities represent substantial underlying commodity positions. Exposures to commodity prices consist mainly of variations in the price of fuel required to generate electricity and wholesale electricity that is purchased and sold. Commodity prices are subject to wide price swings as supply and demand are impacted by, among many other unpredictable items, weather, market liquidity, generating facility availability, customer usage, storage, and transmission and transportation constraints. Interest rate risk exists on variable-rate debt and future debt issuances. PacifiCorp does not engage in a material amount of proprietary trading activities.

PacifiCorp has established a risk management process that is designed to identify, assess, manage and report on each of the various types of risk involved in its business. To mitigate a portion of its commodity price risk, PacifiCorp uses commodity derivative contracts, which may include forwards, futures, options, swaps and other agreements, to effectively secure future supply or sell future production generally at fixed prices. PacifiCorp manages its interest rate risk by limiting its exposure to variable interest rates primarily through the issuance of fixed-rate long-term debt and by monitoring market changes in interest rates. Additionally, PacifiCorp may from time to time enter into interest rate derivative contracts, such as interest rate swaps or locks, to mitigate PacifiCorp's exposure to interest rate risk. No interest rate derivatives were in place during the periods presented. PacifiCorp does not hedge all of its commodity price and interest rate risks, thereby exposing the unhedged portion to changes in market prices. Refer to Note 9 for additional information related to the fair value measurements associated with derivative contracts.

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The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of PacifiCorp's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Other**<br>**Current**<br>**Assets** |<br>**Other**<br>**Assets** | **Other**<br>**Current**<br>**Liabilities** | **Other**<br>**Long-term**<br>**Liabilities** |<br>**Total** |
| **<u>As of September 30, 2025</u>** | | | | | |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity assets | $13 | $1 | $2 | $2 | $18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities | (2) |  | (72) | (16) | (90) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 11 | 1 | (70) | (14) | (72) |
| Total derivatives | 11 | 1 | (70) | (14) | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash collateral receivable |  |  | 22 |  | 22 |
| Total derivatives - net basis | $11 | $1 | $(48) | $(14) | $(50) |
| **<u>As of December 31, 2024</u>** |  |  |  |  |  |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity assets | $10 | $— | $16 | $1 | $27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities | (1) |  | (105) | (18) | (124) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 9 |  | (89) | (17) | (97) |
| Total derivatives | 9 |  | (89) | (17) | (97) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash collateral receivable |  |  | 6 |  | 6 |
| Total derivatives - net basis | $9 | $— | $(83) | $(17) | $(91) |

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(1)PacifiCorp's commodity derivatives are generally included in rates. As of September 30, 2025, a regulatory asset of $72 million was recorded related to the net derivative liability of $72 million. As of December 31, 2024, a regulatory asset of $97 million was recorded related to the net derivative liability of $97 million.

The following table reconciles the beginning and ending balances of PacifiCorp's net regulatory assets (liabilities) and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in net regulatory assets (liabilities), as well as amounts reclassified to earnings (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $53 | $139 | $97 | $76 |
| Changes in fair value recognized in regulatory assets | 82 | 101 | 85 | 265 |
| Net gains reclassified to operating revenue | 7 | 12 | 17 | 15 |
| Net losses reclassified to energy costs | (70) | (173) | (127) | (277) |
| **Ending balance** | $72 | $79 | $72 | $79 |

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*Derivative Contract Volumes*

The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Unit of**<br>**Measure** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Electricity sales, net | Megawatt hours | (1) | (1) |
| Natural gas purchases | Decatherms | 151 | 124 |

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*Credit Risk*

PacifiCorp is exposed to counterparty credit risk associated with wholesale energy supply and marketing activities with other utilities, energy marketing companies, financial institutions and other market participants. Credit risk may be concentrated to the extent PacifiCorp's counterparties have similar economic, industry or other characteristics and due to direct or indirect relationships among the counterparties. Before entering into a transaction, PacifiCorp analyzes the financial condition of each significant wholesale counterparty, establishes limits on the amount of unsecured credit to be extended to each counterparty and evaluates the appropriateness of unsecured credit limits on an ongoing basis. To further mitigate wholesale counterparty credit risk, PacifiCorp enters into netting and collateral arrangements that may include margining and cross-product netting agreements and obtains third-party guarantees, letters of credit and cash deposits. If required, PacifiCorp exercises rights under these arrangements, including calling on the counterparty's credit support arrangement.

*Collateral and Contingent Features*

In accordance with industry practice, certain wholesale energy agreements, including contracts for purchases, sales and transportation of electricity, natural gas, and coal, some of which are accounted for as derivatives, contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the recognized credit rating agencies. These agreements may provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features"). These agreements and other agreements that do not refer to specified rating-dependent thresholds may provide the right for counterparties to demand "adequate assurance" if there is a material adverse change in PacifiCorp's creditworthiness. These rights can vary by contract and by counterparty. As of September 30, 2025, PacifiCorp's issuer credit ratings for senior unsecured debt from the recognized credit rating agencies were investment grade.

The aggregate fair value of PacifiCorp's derivative contracts in liability positions with objective credit-risk-related contingent features totaled $90 million and $123 million as of September 30, 2025, and December 31, 2024, respectively, for which PacifiCorp had posted collateral of $22 million and $6 million, respectively, in the form of cash deposits. If all credit-risk-related contingent features for derivative contracts in liability positions had been triggered as of September 30, 2025, and December 31, 2024, PacifiCorp would have been required to post $62 million and $100 million, respectively, of additional collateral.

PacifiCorp's collateral requirements associated with wholesale energy agreements could fluctuate considerably due to market price volatility; changes in credit ratings; changes in legislation or regulation or other factors; and if counterparties demand adequate assurance in the event of a material adverse change in PacifiCorp's creditworthiness.

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**(9)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements** 

The carrying value of PacifiCorp's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. PacifiCorp has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that PacifiCorp has the ability to access at the measurement date.

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

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

The following table presents PacifiCorp's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Other**<sup>(1)</sup>  |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | | |
| **Assets:** | | | | | |
| Commodity derivatives | $— | $18 | $— | $(6) | $12 |
| Money market mutual funds | 37 |  |  |  | 37 |
| Investment funds | 28 |  |  |  | 28 |
|  | $65 | $18 | $— | $(6) | $77 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $— | $(90) | $— | $28 | $(62) |
| **<u>As of December 31, 2024:</u>** |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |
| Commodity derivatives | $— | $27 | $— | $(18) | $9 |
| Money market mutual funds | 34 |  |  |  | 34 |
| Investment funds | 29 |  |  |  | 29 |
|  | $63 | $27 | $— | $(18) | $72 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $— | $(124) | $— | $24 | $(100) |

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(1)Represents netting under master netting arrangements and a net cash collateral receivable of $22 million and $6 million as of September 30, 2025, and December 31, 2024, respectively.

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Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. A discounted cash flow valuation method was used to estimate fair value. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which PacifiCorp transacts. When quoted prices for identical contracts are not available, PacifiCorp uses forward price curves. Forward price curves represent PacifiCorp's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. PacifiCorp bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent energy brokers, exchanges, direct communication with market participants and actual transactions executed by PacifiCorp. Market price quotations for certain major electricity and natural gas trading hubs are generally readily obtainable for the first three years; therefore, PacifiCorp's forward price curves for those locations and periods reflect observable market quotes. Market price quotations for other electricity and natural gas trading hubs are not as readily obtainable for the first three years. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, PacifiCorp uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, interest rates, currency rates, related volatility, counterparty creditworthiness and duration of contracts. Refer to Note 8 for further discussion regarding PacifiCorp's risk management and hedging activities.

PacifiCorp's investments in money market mutual funds and investment funds are stated at fair value. When available, PacifiCorp uses a readily observable quoted market price or net asset value of an identical security in an active market to record the fair value. In the absence of a quoted market price or net asset value of an identical security, the fair value is determined using pricing models or net asset values based on observable market inputs and quoted market prices of securities with similar characteristics.

PacifiCorp's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of PacifiCorp's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of PacifiCorp's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of PacifiCorp's long-term debt (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
| Long-term debt | $14184 | $13457 | $13588 | $12580 |

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**(10)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies** 

*Commitments*

PacifiCorp has the following firm commitments that are not reflected on the Consolidated Balance Sheets.

*Purchased Electricity Contracts - Non-Commercially Operable*

During the nine-month period ended September 30, 2025, PacifiCorp entered into battery storage agreements with commitments totaling approximately $1.8 billion through 2048. In October 2025, an additional battery storage agreement became effective with commitments totaling approximately $343 million through 2046. The facilities associated with these contracts have not yet achieved commercial operation. To the extent these facilities do not achieve commercial operation, PacifiCorp has no obligation to the counterparty.

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*Construction Commitments*

During the nine-month period ended September 30, 2025, PacifiCorp became committed under the terms of a previously existing construction funding agreement with Idaho Power Company to support the development of the Boardman to Hemingway 500-kV transmission line. PacifiCorp is committed to contributing up to $460 million toward construction costs, representing PacifiCorp's share of the total estimated project cost of $843 million. In addition, PacifiCorp issued limited notice to proceed for construction contracts totaling $278 million through 2027 for service center and essential services buildings located in Salt Lake City, Utah. The projects are expected to be placed into service mid-2028.

*Fuel Contracts*

During the nine-month period ended September 30, 2025, PacifiCorp entered into certain coal supply and transportation agreements totaling $109 million through 2029.

*Environmental Laws and Regulations*

PacifiCorp is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal, wildfire prevention and mitigation and other environmental matters that have the potential to impact its current and future operations. PacifiCorp believes it is in material compliance with all applicable laws and regulations.

*Lower Klamath Hydroelectric Project*

In November 2022, the FERC issued a license surrender order for the Lower Klamath Project, which was accepted by the Klamath River Renewal Corporation ("KRRC") and the states of Oregon and California ("States") in December 2022, along with the transfer of the Lower Klamath Project dams. The KRRC has $450 million in funding available for dam removal and restoration; $200 million collected from PacifiCorp's Oregon and California customers and $250 million in California bond funds. PacifiCorp and the States have also agreed to equally share cost overruns that may occur above the initial $450 million in funding. Specifically, PacifiCorp and the States have agreed to equally fund an initial $45 million supplemental fund and equally share any additional costs above that amount to ensure dam removal and restoration is complete. In May 2024, the KRRC communicated to PacifiCorp and the States that it expects to require the $45 million of supplemental funds. In October 2024, PacifiCorp provided approximately $11 million in supplemental funding to the KRRC. As of October 2024, removal of the Lower Klamath Project dams was complete.

*Legal Matters*

PacifiCorp is party to a variety of legal actions, including litigation, arising out of the normal course of business, some of which assert claims for damages in substantial amounts and are described below. For certain legal actions, parties at times may seek to impose fines, penalties and other costs.

Pursuant to ASC 450, "Contingencies," a provision for a loss contingency is recorded when it is probable a liability is likely to occur and the amount of loss can be reasonably estimated. PacifiCorp evaluates the related range of reasonably estimated losses and records a loss based on its best estimate within that range or the lower end of the range if there is no better estimate.

*Wildfires*

A significant number of complaints and demands alleging similar claims related to the Wildfires have been filed in Oregon and California, including a class action complaint in Oregon associated with 2020 Wildfires for which certain jury verdicts were issued as described below. The plaintiffs seek damages for economic losses, noneconomic losses, including mental suffering, emotional distress, personal injury and loss of life, punitive damages, other damages and attorneys' fees. Several insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the aforementioned complaints. Additionally, PacifiCorp received correspondence from the U.S. and Oregon Departments of Justice regarding the potential recovery of certain costs and damages alleged to have occurred on federal and state lands in connection with certain of the 2020 Wildfires. In December 2024, the United States of America filed a complaint against PacifiCorp in conjunction with the correspondence from the U.S. Department of Justice. The civil cover sheet accompanying the complaint demands damages estimated to exceed $900 million. PacifiCorp is actively cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims.

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Amounts sought in outstanding complaints and demands filed in Oregon and in certain demands made in California totaled approximately $55 billion, excluding any doubling or trebling of damages or punitive damages included in the complaints and excluding damages that may be sought by additional plaintiffs granted substitution counsel in the *James* class action lawsuit described below. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount. Of the $55 billion, $52 billion represents the economic and noneconomic damages sought in the *James* mass complaints described below. For class actions, amounts specified by the plaintiffs in the complaints include amounts based on estimates of the potential class size, which ultimately may be significantly greater than estimated. Additionally, damages are not limited to the amounts specified in the initially filed complaints as plaintiffs are frequently allowed to amend their complaints to add additional damages and amounts awarded in a court proceeding may be significantly greater than the damages specified. Oregon law provides for doubling of economic and property damages in the event the defendant is found to have acted with gross negligence, recklessness, willfulness or malice. Oregon law provides for trebling of damages associated with timber, shrubs and produce in the event the defendant is determined to have willfully and intentionally trespassed.

In California, under inverse condemnation, courts have held that investor-owned utilities can be liable for real and personal property damages from wildfires without the utility being found negligent and regardless of fault. California law also permits inverse condemnation plaintiffs to recover reasonable attorney fees and costs. In both Oregon and California, PacifiCorp has equipment in areas accessed through special use permits, easements or similar agreements that may contain provisions requiring it to pay for damages caused by its equipment regardless of fault. Even if inverse condemnation or other provisions do not apply, PacifiCorp could be found liable for all damage.

Based on available information to date, losses have been and will likely continue to be incurred associated with the Wildfires. Final determinations of liability will only be made following the completion of comprehensive investigations, which may be or have been performed by various entities, including the U.S. Department of Agriculture Forest Service ("USFS"), the California Public Utilities Commission, the Oregon Department of Forestry ("ODF") and the Oregon Department of Justice, as well as litigation or similar processes, the outcome of which, if adverse, could, in the aggregate, have a material adverse effect on PacifiCorp's financial condition.

<u>2020 Wildfires</u>

In September 2020, a severe weather event with high winds, low humidity and warm temperatures contributed to several major wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life and widespread power outages in Oregon and Northern California. The wildfires spread across certain parts of PacifiCorp's service territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burning over 500,000 acres in aggregate and include the Santiam Canyon, Beachie Creek, South Obenchain, Echo Mountain Complex, 242, Archie Creek, Slater and other fires. The Slater fire occurred in both Oregon and California. Third-party reports for these wildfires indicate over 2,000 structures destroyed, including residences; several structures damaged; multiple individuals injured; and several fatalities.

In May 2022, the USFS issued its report of investigation into the Archie Creek fire concluding that the probable cause of the fire was power lines owned and operated by PacifiCorp. The USFS report for the Archie Creek fire also states that evidence indicates failure of power line infrastructure. The USFS report of investigation into the Slater fire for the investigation period October 5, 2020, to December 8, 2020, concluded that the fire was caused by a downed power line owned and operated by PacifiCorp. The USFS report for the Slater fire also states that evidence indicates a tree fell onto the power line and that wind blew over the 137-foot tree with internal rot that showed no outward signs of distress and would not have been classified or identified as a hazard tree.

Settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in both the Archie Creek and Slater fires with government timber and suppression cost claims remaining. Additionally, settlements have been reached for all wrongful death claims associated with the 2020 Wildfires.

In April 2023, the USFS issued its report of investigation into a wildland fire that began in the Opal Creek wilderness outside of the Santiam Canyon that was first reported on August 16, 2020 ("Beachie Creek Fire"), approximately three weeks prior to the September 2020 wind event described above. In March 2025, PacifiCorp received the ODF's final investigation report on the Santiam Canyon fires ("ODF's Report"), which concluded that embers from the pre-existing Beachie Creek Fire caused 12 fires within the Santiam Canyon. The ODF's Report also found that PacifiCorp's power lines did not contribute to the overall spread of fire into the Santiam Canyon even though its power lines ignited seven spot fires within the Santiam Canyon that were each suppressed.

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The Beachie Creek fire that spread into the Santiam Canyon burned approximately 193,000 acres; the South Obenchain fire burned approximately 33,000 acres; the Echo Mountain Complex fire burned approximately 3,000 acres; and the 242 fire burned approximately 14,000 acres. The *James* cases described below are associated with the Beachie Creek (Santiam Canyon), South Obenchain, Echo Mountain Complex and 242 fires, which are four distinct fires located hundreds of miles apart.

*The James Case*

On September 30, 2020, a class action complaint against PacifiCorp was filed, captioned *Jeanyne James et al. v. PacifiCorp,* ("*James*") in Oregon Circuit Court in Multnomah County, Oregon ("Multnomah County Circuit Court Oregon"). The complaint was filed by Oregon residents and businesses who sought to represent a class of all Oregon citizens and entities whose real or personal property was harmed beginning on September 7, 2020, by wildfires in Oregon allegedly caused by PacifiCorp. In November 2021, the plaintiffs filed an amended complaint to limit the class to include Oregon citizens allegedly impacted by the Santiam Canyon, Echo Mountain Complex, South Obenchain and 242 fires, as well as to add claims for noneconomic damages. The amended complaint alleged that PacifiCorp's assets contributed to the Oregon wildfires occurring on or after September 7, 2020, and that PacifiCorp acted with gross negligence, among other things. The amended complaint seeks damages similar to those described above, including not less than $600 million of economic damages and in excess of $1 billion of noneconomic damages for the plaintiffs and the class. Since filing of the original class action complaint, numerous James class members have been named and damages specified in various complaints as described below. Additionally, numerous cases were consolidated into the original *James* complaint.

As of October 2025, various mass complaints against PacifiCorp naming approximately 1,700 class members have been filed referencing the *James* case as the lead case. These *James* mass complaints make damages-only allegations with substantially all plaintiffs individually seeking $5 million of economic damages, $25 million of noneconomic damages and punitive damages equal to 0.25 times the amount of economic and noneconomic damages, as well as doubling of economic damages. An additional 1,500 plaintiffs have been granted the ability not to be represented by James lead counsel. A small portion of these additional plaintiffs have filed complaints seeking damages similar to those in the mass complaints. PacifiCorp expects additional complaints will be filed for these plaintiffs, including for the portion that are scheduled for trial under the July 2025 case management order described below.

PacifiCorp believes the magnitude of damages sought by the class members in the *James* mass complaints to be of remote likelihood of being awarded based on the amounts awarded in the jury verdicts described below that are being appealed.

*<u>James</u>* <u>Trial Activity</u>

In June 2023, a jury verdict was issued in the first *James* trial finding PacifiCorp's conduct grossly negligent, reckless and willful as to each of the 17 named plaintiffs and the entire class. The jury awarded economic and noneconomic damages. After the jury verdict, the Multnomah County Circuit Court Oregon doubled the economic damages, in accordance with Oregon law, and added punitive damages by applying a 0.25 multiplier to the awarded economic and noneconomic damages. PacifiCorp filed a motion with the Multnomah County Circuit Court Oregon requesting the court offset the damage awards by deducting insurance proceeds received by any of the plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict, including whether the case can proceed as a class action.

Subsequent to the June 2023 *James* verdict, numerous damages phase trials were held with separate jury verdicts issued and damages awarded for each on a basis consistent with the initial trial and relying on the liability determination in the June 2023 *James* verdict. PacifiCorp amended its January 2024 appeal of the June 2023 *James* verdict to include the jury verdicts for the first two damages phase trials. PacifiCorp has filed notices of appeal for the subsequent jury verdicts in the damages phase trials once limited judgments are entered and any post-trial motions filed. Refer to "James Court Activity" below regarding the filing of PacifiCorp's appellate briefs. The appeals process and further actions could take several years.

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The *James* jury verdicts awarded various damages as follows (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Plaintiffs** | **Verdict / Limited Judgment Date** | **Damages**<sup>(1)</sup> | **Damages**<sup>(1)</sup> | **Damages**<sup>(1)</sup> | | | |
|<br>***James* Trial** | **Number of Plaintiffs** | **Verdict / Limited Judgment Date** | **Doubled Economic** | **Non-economic** | **Punitive** |<br>**Insurance Offset**<sup>(2)</sup> |<br>**Net Damages** |<br>**Appeal Filed** |
| **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> | **Jury verdicts, limited judgments entered**<sup>(3)</sup> |
| Initial *James* trial | 17 | June 2023 / January 2024 | $9 | $67 | $18 | $2 | $92 | Yes |
| First damages | 9 | January 2024 / April 2024 | 12 | 56 | 16 | 4 | 80 | Yes |
| Second damages | 10 | March 2024 / June 2024 | 12 | 23 | 7 | 4 | 38 | Yes |
| Third damages | 8 | February 2025 / April 2025 | 8 | 32 | 9 | 4 | 45 | Yes |
| Fourth damages | 7 | March 2025 / June 2025 | 5 | 34 | 9 | 1 | 47 | Yes |
| Fifth damages | 9 | April 2025 / August 2025 | 5 | 11 | 3 | 1 | 18 | Yes |
| Sixth damages | 10 | May 2025 / July 2025 | 11 | 30 | 9 | 2 | 48 | Yes |
| Seventh damages | 10 | June 2025 / August 2025 | 8 | 28 | 8 | 1 | 43 | Yes |
| Eighth damages | 11 | July 2025 /<br>September 2025 | 10 | 36 | 10 | 3 | 53 |  |
| **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** | **Jury verdicts, limited judgments not yet entered** |
| Ninth damages | 10 | September 2025 | 11 | 63 | 17 | 3 | 88 |  |
| Tenth damages | 8 | October 2025 | 5 | 26 | 7 | 1 | 37 |  |
|  | 109 |  | $96 | $406 | $113 | $26 | $589 |  |

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(1)For jury verdicts where the limited judgment has not yet been entered, the doubling of economic damages and the application of punitive damages are estimates.

(2)For jury verdicts where limited judgment has been entered, the court offset the awards by the amount of insurance proceeds received by any of the plaintiffs. For jury verdicts where the limited judgment has not yet been entered, the insurance offset is an estimate.

(3)For each limited judgment entered in the court, PacifiCorp has posted or expects to post a supersedeas bond, which stays any effort to seek payment of the judgments pending final resolution of any appeals. Under Oregon Revised Statutes 82.010, interest at a rate of 9% per annum will accrue on the judgments commencing at the date the judgments were entered until the entire money award is paid, amended or reversed by an appellate court. The supersedeas bond posted for the June 2023 *James* verdict covers three years of post-judgment interest while amounts posted for the subsequent verdicts cover two years of post-judgment interest.

Through October 2025, jury verdict awards averaged approximately $5 million per plaintiff, including insurance offset. Additional damages phase trials are scheduled to occur in 2025 through 2028 as described below.

*<u>James</u>* <u>Court Activity</u>

In April 2025, PacifiCorp filed its opening brief with the Oregon Court of Appeals in connection with its appeal of the June 2023 *James* verdict and the January and March 2024 verdicts for the first two *James* damages phase trials. In the opening brief, PacifiCorp addresses numerous procedural and legal issues, including that the class certification is improper due to the plaintiffs being impacted by distinct fires with independent ignition points that were hundreds of miles apart; awarding of non-economic damages is not allowed under Oregon law; plaintiffs failed to prove that PacifiCorp caused harm to every class member; and jury instructions applied incorrect legal standards in assessing class-wide evidence and individual claims. Additionally, PacifiCorp incorporated the ODF's Report into its opening appellate brief. Various parties who are not party to the *James* case have filed supportive amicus briefs with the court. Plaintiffs filed their combined answering and cross-appeal brief on August 21, 2025, after plaintiffs requested three delays from the Oregon Court of Appeals. PacifiCorp filed its combined reply brief and cross-appeal answering brief on October 17, 2025. Plaintiffs' reply brief is due on November 7, 2025, unless plaintiffs ask for additional extensions. On October 23, 2025, PacifiCorp filed a request with the Oregon Court of Appeals for an expedited oral argument, which, if granted, will facilitate a more prompt decision from the court.

------

Subsequent to the first two damages phase trials, nine damages phase trials were scheduled to be held in 2025 in accordance with the Multnomah County Circuit Court Oregon's October 2024 case management order. In March 2025, in consideration of the ODF's Report, PacifiCorp filed a motion to stay the remaining *James* damages phase trials scheduled under the October 2024 case management order. The motion was heard by the court and was denied in April 2025. The remaining damages phase trial ordered under the October 2024 case management order is scheduled to begin December 1, 2025.

On July 28, 2025, the Multnomah County Circuit Court Oregon issued Case Management Order No. 11 ("CMO No. 11") in response to the May 2025 hearing that was held to evaluate the scheduling of additional damages phase trials. As ordered, CMO No. 11 proposes to schedule dozens of trials in 2026 and over 100 more in 2027 and 2028, involving approximately 2,000 plaintiffs. Additionally, CMO No. 11 requires mediation every other month starting in October 2025.

On August 8, 2025, PacifiCorp filed a motion with the Oregon Court of Appeals to stay the *James* damages phase trials addressed in CMO No. 11 and to which plaintiffs' counsel responded on August 29, 2025. On September 23, 2025, the Appellate Commissioner of the Oregon Court of Appeals denied PacifiCorp's motion to stay. On September 26, 2025, PacifiCorp filed a request for reconsideration of the stay denial with the Chief Judge of the Oregon Court of Appeals. On October 13, 2025, the Oregon Court of Appeals issued an order denying PacifiCorp's request for reconsideration. PacifiCorp has 35 days from October 13, 2025, to petition the Oregon Supreme Court to review the Oregon Court of Appeals order.

<u>Potential Effects of</u> *<u>James</u>* <u>CMO No. 11</u>

To appeal the limited judgments, PacifiCorp is required to bond the judgments. As of the date of this filing, PacifiCorp has posted bonds totaling $479 million associated with the limited judgments entered to date for 91 plaintiffs. These bonding requirements will continue to apply to future judgments associated with the CMO No. 11 trial schedule beginning in 2026. As noted above, CMO No. 11 proposes to schedule dozens of trials in 2026 and over 100 more in 2027 and 2028, involving approximately 2,000 plaintiffs. Each trial is subject to and dependent on judicial resources and availability, which will be determined six weeks before each trial. The CMO No. 11 proposed schedule is likely to put significant strain on the Multnomah County Circuit Court system, and PacifiCorp believes this may challenge the court's ability to fulfill the schedule in CMO No. 11.

If, however, the trial schedule and caseload progress as proposed in CMO No. 11 and the future limited judgments follow current trends, PacifiCorp estimates damages awarded in the jury verdicts may exceed its available surety bond and letter of credit capacity, requiring cash to be posted with Multnomah County to stay payment of damages awarded in the subsequent damages trials. PacifiCorp expects additional debt financings, including potential borrowings under its $2.0 billion credit facility subject to its availability, or other sources of funding will be needed to provide liquidity to post cash for judgments. Maintaining this trial schedule will cause significant financial strain on PacifiCorp's liquidity and will put pressure on PacifiCorp's credit metrics due to bonding requirements. Weakening of PacifiCorp's credit metrics could result in a downgrade, potentially below investment grade. Such a downgrade may result in the loss of surety bond and letter of credit capacity; trigger cash collateral calls for surety bonds posted; and trigger additional cash collateral calls or other forms of security for wholesale energy agreements that contain credit-risk-related contingent features or rights to demand adequate assurance in the event of a material adverse change in PacifiCorp's creditworthiness. Additionally, a downgrade of PacifiCorp's senior secured debt below investment grade would require new regulatory applications and approvals due to certain authorizations or exemptions currently in place with certain regulatory commissions for the issuance of securities.

PacifiCorp may be unable to obtain the required funding to meet its liquidity needs due to cash requirements for judgments if the trial schedule and case load progresses as proposed in CMO No. 11. Should PacifiCorp be downgraded below investment grade and unable to secure sufficient debt financings or alternative funding sources, it may have insufficient liquidity to support ongoing operations including the ability to absorb wholesale power volatility, pay suppliers and meet debt obligations, and such liquidity issues may impact transmission and generation development, purchasing power in the market, building and upgrading substations, connecting new customers, addressing outages and maintaining system resilience.

Litigation is inherently difficult to predict, and its potential financial impacts are therefore based on assumptions that will change. Furthermore, there may be judicial decisions and other events or circumstances that could improve or worsen the challenges PacifiCorp faces. PacifiCorp believes it will have sufficient liquidity to cover its operations and obligations beyond a year.

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<u>2022 McKinney Fire</u>

According to the California Department of Forestry and Fire Protection, a wildfire began on July 29, 2022, in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp's service territory, burning over 60,000 acres. Third-party reports indicate that the 2022 McKinney Fire resulted in 11 structures damaged; 185 structures destroyed, including residences; 12 injuries; and four fatalities. The USFS issued a Wildland Fire Origin and Cause Supplemental Incident Report. The report concluded that a tree coming in contact with a power line is the probable cause of the 2022 McKinney Fire. Settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in the 2022 McKinney Fire with government timber and suppression cost claims remaining. Additionally, PacifiCorp has settled or settled in principle all wrongful death claims associated with the 2022 McKinney Fire.

<u>Estimated Losses for and Settlements Associated with the Wildfires</u>

Based on the facts and circumstances available to PacifiCorp as of the date of this filing, including (i) ongoing cause and origin investigations; (ii) ongoing settlement and mediation activities; (iii) other litigation matters and upcoming legal proceedings; and (iv) the status of the *James* case, PacifiCorp recorded cumulative estimated probable losses associated with the Wildfires of $2,853 million through September 30, 2025. PacifiCorp's cumulative accrual includes estimates of probable losses for fire suppression costs, real and personal property damages, natural resource damages and noneconomic damages such as personal injury damages and loss of life damages that it is reasonably able to estimate at this time and which is subject to change as additional relevant information becomes available.

Through September 30, 2025, PacifiCorp paid $1,399 million in settlements associated with the Wildfires. As a result of the settlements, various trials have been cancelled. In October 2025 and through the date of this filing, PacifiCorp made additional settlement payments related to the Wildfires totaling $1 million.

The following table presents changes in PacifiCorp's liability for estimated losses associated with the Wildfires (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $1381 | $1883 | $1536 | $1723 |
| Accrued losses | 100 |  | 100 | 251 |
| Payments | (27) | (438) | (182) | (529) |
| **Ending balance** | $1454 | $1445 | $1454 | $1445 |

---

As of September 30, 2025, and December 31, 2024, $580 million and $247 million of PacifiCorp's liability for estimated losses associated with the Wildfires was classified as a current liability captioned Wildfires liabilities on the Consolidated Balance Sheets. The amounts reflected as current as of September 30, 2025, reflect amounts reasonably expected to be paid out within the next year based on settlements reached as well as ongoing settlement and mediation efforts. The remainder of PacifiCorp's liability for estimated losses associated with the Wildfires as of September 30, 2025, and December 31, 2024, was classified as a noncurrent liability captioned Wildfires liabilities on the Consolidated Balance Sheets.

The following table presents changes in PacifiCorp's receivable for expected insurance recoveries associated with the Wildfires (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $— | $139 | $98 | $499 |
| Payments received |  | (5) | (98) | (365) |
| **Ending balance** | $— | $134 | $— | $134 |

---

------

As of September 30, 2025, PacifiCorp had received all expected insurance recoveries. As of December 31, 2024, PacifiCorp's receivable for expected insurance recoveries was included in other receivables, net on the Consolidated Balance Sheets. No additional insurance recoveries beyond those received to date are expected to be available.

It is reasonably possible PacifiCorp will incur material additional losses beyond the amounts accrued for the Wildfires that could have a material adverse effect on PacifiCorp's financial condition. PacifiCorp is currently unable to reasonably estimate a specific range of possible additional losses that could be incurred due to the number of properties and parties involved, including claimants in the class to the *James* case and the 2022 McKinney Fire, the variation in the types of properties and damages and the ultimate outcome of legal actions, including mediation, settlement negotiations, jury verdicts and the appeals process.

*Guarantees*

PacifiCorp has entered into guarantees as part of the normal course of business and the sale or transfer of certain assets. These guarantees are not expected to have a material impact on PacifiCorp's consolidated financial results.

**(11)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

The following table summarizes PacifiCorp's revenue from contracts with customers ("Customer Revenue") by line of business, with further disaggregation of retail by customer class (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Customer Revenue: |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $750 | $680 | $2022 | $1786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 677 | 605 | 1844 | 1566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 381 | 361 | 1095 | 987 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other retail | 167 | 143 | 372 | 289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail | 1975 | 1789 | 5333 | 4628 |
| &nbsp;&nbsp;Wholesale  | 37 | 25 | 65 | 67 |
| &nbsp;&nbsp;Transmission | 46 | 54 | 128 | 137 |
| &nbsp;&nbsp;Other Customer Revenue | 31 | 26 | 93 | 81 |
| Total Customer Revenue | 2089 | 1894 | 5619 | 4913 |
| Other revenue | 24 | 29 | 72 | 47 |
| Total operating revenue | $2113 | $1923 | $5691 | $4960 |

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**(12)&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock**

On April 23, 2025, PacifiCorp repurchased the sole outstanding share of its 7.00% Serial Preferred Stock from PPW Holdings LLC, for a purchase price of $1,800,000. As of the date of this filing, there are no shares of PacifiCorp Serial Preferred Stock outstanding.

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

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of PacifiCorp during the periods included herein. Explanations include management's best estimate of the impact of weather, customer growth, usage trends and other factors. This discussion should be read in conjunction with PacifiCorp's historical unaudited Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. PacifiCorp's actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024**

<u>Overview</u>

Net income for the third quarter of 2025 was $257 million, a decrease of $67 million, compared to 2024. The decrease in net income was primarily due to $100 million of higher wildfire loss accruals, lower allowances for equity and borrowed funds used during construction, increased operations and maintenance expense, lower interest and dividend income, increased depreciation and amortization expense and higher interest expense, partially offset by higher utility margin and a favorable income tax benefit. Utility margin increased primarily due to lower purchased electricity costs from lower volumes and average market prices, higher retail prices and volumes, higher wholesale sales volumes and lower natural gas-fueled generation volumes, partially offset by lower net power costs deferrals, driven by lower current quarter deferrals and higher amortization of prior deferrals, higher coal-fueled generation costs, primarily from higher volumes, lower wholesale market prices, and lower wheeling revenues. Retail customer volumes increased 2.0%, primarily due to higher customer usage and an increase in the average number of customers, partially offset by the unfavorable impact of weather. Energy generated volumes increased 1,404 gigawatt-hours, or 12%, for the third quarter of 2025 compared to 2024 primarily due to higher coal-fueled generation and higher wind-powered generation, partially offset by lower natural gas-fueled generation and lower hydro-powered generation. Wholesale electricity sales volumes increased 289 gigawatt-hours, or 43%, and energy purchased volumes decreased 910 gigawatt-hours, or 14%.

Net income for the first nine months of 2025 was $539 million, an increase of $163 million, compared to 2024. The increase in net income was primarily due to higher utility margin and $151 million of lower wildfire loss accruals, partially offset by higher depreciation and amortization expense, increased operations and maintenance expense, lower allowances for equity and borrowed funds used during construction, decreased interest and dividend income, increased interest expense, higher property and other taxes and an unfavorable income tax benefit. Utility margin increased primarily due to higher retail prices and volumes, lower purchased electricity costs from lower volumes and average market prices, higher wholesale volumes and lower natural gas-fueled generation volumes, partially offset by lower net power costs deferrals, driven by lower current year deferrals and higher amortization of prior deferrals, higher coal-fueled generation volumes and prices, lower wholesale average market prices and higher wheeling expenses. Retail customer volumes increased 2.0%, primarily due to an increase in the average number of customers, higher customer usage and the favorable impact of weather. Energy generated volumes increased 4,310 gigawatt-hours, or 13% for the first nine months of 2025 compared to 2024 primarily due to higher coal-fueled generation and higher wind-powered generation, partially offset by lower gas-fueled generation and lower hydro-powered generation. Wholesale electricity sales volumes increased 940 gigawatt-hours, or 55%, and energy purchased volumes decreased 2,543 gigawatt-hours, or 15%.

<u>Non-GAAP Financial Measure</u>

Management utilizes various key financial measures that are prepared in accordance with GAAP, as well as non-GAAP financial measures such as utility margin, to help evaluate results of operations. Utility margin is calculated as operating revenue less cost of fuel and energy, which are captions presented on the Consolidated Statements of Operations.

PacifiCorp's cost of fuel and energy is generally recovered from its retail customers through regulatory recovery mechanisms and as a result, changes in PacifiCorp's expenses included in regulatory recovery mechanisms result in comparable changes to revenue. As such, management believes utility margin more appropriately and concisely explains results of operations rather than a discussion of revenue and cost of fuel and energy separately. Management believes the presentation of utility margin provides meaningful and valuable insight into the information management considers important to understanding the business and a measure of comparability to others in the industry.

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Utility margin is not a measure calculated in accordance with GAAP and should be viewed as a supplement to and not a substitute for operating income which is the most comparable financial measure prepared in accordance with GAAP. The following table provides a reconciliation of utility margin to operating income (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $2113 | $1923 | $190 | 10% | $5691 | $4960 | $731 | 15% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 940 | 862 | 78 | 9 | 2381 | 2076 | 305 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Utility margin** | 1173 | 1061 | 112 | 11 | 3310 | 2884 | 426 | 15 |
| Operations and maintenance | 448 | 422 | 26 | 6 | 1351 | 1248 | 103 | 8 |
| Wildfires losses | 100 |  | 100 | \* | 100 | 251 | (151) | (60) |
| Depreciation and amortization | 304 | 287 | 17 | 6 | 975 | 866 | 109 | 13 |
| Property and other taxes | 58 | 55 | 3 | 5 | 177 | 161 | 16 | 10 |
| **Operating income** | $263 | $297 | $(34) | (11)% | $707 | $358 | $349 | 97% |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Not meaningful

------

<u>Utility Margin</u>

A comparison of key operating results related to utility margin is as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $2113 | $1923 | $190 | 10% | $5691 | $4960 | $731 | 15% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 940 | 862 | 78 | 9 | 2381 | 2076 | 305 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $1173 | $1061 | $112 | 11% | $3310 | $2884 | $426 | 15% |
| **Sales (GWhs):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 5014 | 4994 | 20 | —% | 13918 | 13728 | 190 | 1% |
| &nbsp;&nbsp;Commercial<sup>(1)</sup> | 6153 | 5749 | 404 | 7 | 17048 | 16104 | 944 | 6 |
| &nbsp;&nbsp;Industrial<sup>(1)</sup> | 4153 | 4240 | (87) | (2) | 12501 | 12824 | (323) | (3) |
| &nbsp;&nbsp;Other<sup>(1)</sup> | 828 | 855 | (27) | (3) | 1488 | 1417 | 71 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 16148 | 15838 | 310 | 2 | 44955 | 44073 | 882 | 2 |
| &nbsp;&nbsp;&nbsp;Wholesale | 967 | 678 | 289 | 43 | 2655 | 1715 | 940 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total sales | 17115 | 16516 | 599 | 4% | 47610 | 45788 | 1822 | 4% |
| **Average number of retail customers (in thousands)** | 2140 | 2108 | 32 | 2% | 2133 | 2099 | 34 | 2% |
| **Average revenue per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $122.52 | $113.11 | $9.41 | 8% | $118.77 | $105.16 | $13.61 | 13% |
| &nbsp;&nbsp;&nbsp;Wholesale | $58.83 | $73.12 | $(14.29) | (20)% | $46.98 | $58.86 | $(11.88) | (20)% |
| **Heating degree days** | 103 | 125 | (22) | (18)% | 5911 | 5907 | 4 | —% |
| **Cooling degree days** | 1706 | 1762 | (56) | (3)% | 2264 | 2276 | (12) | (1)% |
| **Sources of energy (GWhs)**<sup>(1)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Coal | 6634 | 4856 | 1778 | 37% | 17768 | 12795 | 4973 | 39% |
| &nbsp;&nbsp;&nbsp;Natural gas | 4586 | 4964 | (378) | (8) | 11552 | 12413 | (861) | (7) |
| &nbsp;&nbsp;Wind<sup>(2)</sup> | 1281 | 1186 | 95 | 8 | 5278 | 4932 | 346 | 7 |
| &nbsp;&nbsp;Hydroelectric and other<sup>(2)</sup> | 406 | 497 | (91) | (18) | 2086 | 2234 | (148) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total energy generated | 12907 | 11503 | 1404 | 12 | 36684 | 32374 | 4310 | 13 |
| &nbsp;&nbsp;&nbsp;Energy purchased | 5491 | 6401 | (910) | (14) | 14679 | 17222 | (2543) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 18398 | 17904 | 494 | 3% | 51363 | 49596 | 1767 | 4% |
| **Average cost of energy per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Energy generated<sup>(3)</sup> | $26.60 | $24.52 | $2.08 | 8% | $25.44 | $24.10 | $1.34 | 6% |
| &nbsp;&nbsp;&nbsp;Energy purchased | $69.36 | $94.81 | $(25.45) | (27)% | $60.14 | $78.09 | $(17.95) | (23)% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;GWh amounts are net of energy used by the related generating facilities.

(2)&nbsp;&nbsp;&nbsp;&nbsp;All or some of the renewable energy attributes associated with generation from these sources may be: (a) used in future years to comply with RPS or other regulatory requirements or (b) sold to third parties in the form of renewable energy credits or other environmental commodities.

(3)&nbsp;&nbsp;&nbsp;&nbsp;The average cost per MWh of energy generated includes only the cost of fuel associated with the generating facilities.

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<u>Quarter Ended September 30, 2025, compared to Quarter Ended September 30, 2024</u>

*Utility margin* increased $112 million for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $226 million of lower purchased electricity costs from lower volumes and lower average market prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $187 million increase in retail revenue due to higher average prices and higher volumes. Retail revenue increased primarily due to price impacts of $151 million from higher average rates, largely from tariff changes and $36 million from higher retail volumes. Retail customer volumes increased 2.0%, primarily due to an increase in Utah and Oregon commercial customer usage, an increase in the average number of commercial and residential customers across the service territory, mainly in Utah and Oregon and an increase in Oregon and Washington residential customer usage, partially offset by a decrease in Wyoming, Utah, Washington and California industrial customer usage, unfavorable weather related impacts on residential and commercial customers in Utah and Oregon, unfavorable Idaho and California irrigation customer usage and unfavorable Wyoming, Utah, Idaho and California residential customer usage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $8 million of lower natural gas-fueled generation costs from lower volumes, partially offset by higher prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $7 million increase in wholesale revenue due to higher volumes, partially offset by lower average market prices.

The increases above were partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $240 million of lower net power costs deferrals in accordance with established adjustment mechanisms driven by lower current quarter deferrals and higher amortization of prior deferrals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $69 million of higher coal-fueled generation costs, primarily from higher volumes.

*Operations and maintenance* increased $26 million, or 6%, for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $11 million of higher demand side management amortization driven by increased spend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $10 million increase in salary and benefit expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $8 million of higher insurance expense due to higher premiums associated with third-party liability coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $7 million of higher legal fees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $7 million of higher general plant and maintenance costs.

The increases above were partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $19 million of lower vegetation management and wildfire mitigation costs, primarily from lower gross costs and lower amortization of prior deferrals.

*Wildfires losses* increased $100 million for the third quarter of 2025 compared to 2024 due to an increase in loss accruals associated with the 2020 Wildfires.

*Depreciation and amortization* increased $17 million, or 6%, for the third quarter of 2025 compared to 2024, primarily due to higher average in-service plant, partially offset by current year extension of depreciable lives for certain plants as a result of the Oregon 2025 general rate case order.

*Property and other taxes* increased $3 million, or 5%, for the third quarter of 2025 compared to 2024, primarily due to higher franchise taxes primarily in Oregon, and higher Washington public utility taxes.

*Interest expense* increased $6 million, or 3%, for the third quarter of 2025 compared to 2024, primarily due to the issuance of $850 million of junior subordinated notes in March 2025.

*Allowance for borrowed and equity funds* decreased $32 million, or 36%, for the third quarter of 2025 compared to 2024, primarily due to lower qualified construction work-in-progress balances and lower rates.

*Interest and dividend income* decreased $19 million, or 40%, for the third quarter of 2025 compared to 2024, primarily due to lower current year cash equivalents and lower interest rates.

------

*Income tax benefit* increased $22 million, or 28%, for the third quarter of 2025 compared to 2024, and the effective tax rate was (66)% for 2025 and (33)% for 2024. The $22 million increase is primarily due to higher loss accruals associated with the 2020 Wildfires, higher PTCs from PacifiCorp's wind-powered generating facilities, partially offset by lower benefit from the effects of ratemaking.

<u>First Nine Months of 2025 compared to First Nine Months of 2024</u>

*Utility margin* increased $426 million for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $705 million increase in retail revenue due to higher average prices and higher retail volumes. Retail revenue increased primarily due to price impacts of $604 million from higher average rates, largely from tariff changes and favorable adjustments of $87 million due to the buy-down of certain plant balances and regulatory assets pursuant to the Utah general rate case order (fully offset in depreciation and amortization expense) and $101 million from higher retail volumes. Retail customer volumes increased 2.0%, primarily due to higher Utah and Oregon commercial customer usage, an increase in the average number of commercial and residential customers across the service territory, mainly in Utah and Oregon, favorable weather related impacts on residential and commercial customers and an increase in irrigation customer usage across the service territory, except in California, partially offset by a decrease in industrial customer usage across the service territory, except in Idaho and Oregon and a decrease in residential customer usage across the service territory, except in Oregon and Idaho;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $462 million of lower purchased electricity costs from lower volumes and prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $24 million of higher wholesale revenue from higher volumes, partially offset by lower average market prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $21 million of lower natural gas-fueled generation costs from lower volumes, partially offset by higher prices.

The increases above were partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $600 million of lower net power costs deferrals in accordance with established adjustment mechanisms driven by higher amortization of prior deferrals and lower current year deferrals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $174 million of higher coal-fueled generation costs due to higher volumes and prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million of higher wheeling expense.

*Operations and maintenance* increased $103 million, or 8%, for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $46 million of higher demand side management amortization driven by increased spend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $39 million of higher insurance expense due to higher premiums associated with third-party liability coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $37 million of higher general plant and maintenance costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $30 million increase in salary and benefit expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $17 million of higher legal fees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million of disallowance loss of Utah's share of certain assets on the Klamath River hydroelectric system as a result of the 2025 Utah general rate case.

The increases above were partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $66 million of lower vegetation management and wildfire mitigation costs primarily from higher current year cost deferrals in Oregon and California, lower amortization of prior deferrals and lower gross costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million due to higher accruals of federal grant reimbursements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $11 million decrease associated with prior year accrual of the Lower Klamath Project, net of reserve; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6 million of lower injuries and damages expenses, excluding the Wildfires.

*Wildfire losses* decreased $151 million, or 60% for the first nine months of 2025 compared to 2024 due to a decrease in loss accruals associated with the 2020 Wildfires.

------

*Depreciation and amortization* increased $109 million, or 13%, for the first nine months of 2025 compared to 2024 primarily due to the second quarter 2025 buy-down of certain plant and regulatory asset balances pursuant to the 2025 Utah general rate case order of $87 million (fully offset in retail revenue) and higher average in-service plant, partially offset by current year extension of depreciable lives for certain plants as a result of the Oregon 2025 general rate case order, and a $12 million decrease due to change in allocation adjustment compounded by prior year allocation adjustment increase of $5 million.

*Interest expense* increased $18 million, or 3%, for the first nine months of 2025 compared to 2024, primarily due to the issuance of $850 million of junior subordinated notes in March 2025.

*Property and other taxes* increased $16 million, or 10%, for the first nine months of 2025 compared to 2024 primarily due to higher property taxes in Utah and Washington, higher franchise taxes primarily in Oregon, higher federal excise tax expense and higher Washington public utility taxes.

*Allowance for borrowed and equity funds* decreased $87 million, or 35%, for the first nine months of 2025 compared to 2024 primarily due to lower qualified construction work-in-progress balances and lower rates.

*Interest and dividend income* decreased $67 million, or 43%, for the first nine months of 2025 compared to 2024 primarily due to lower current year cash equivalents, lower interest rates and lower interest income on regulatory assets.

*Other, net* increased $6 million or 55%, for the first nine months of 2025 compared to 2024, primarily due to an increase in income tax gross up billings on customer contributions in aid of construction.

*Income tax benefit* decreased $20 million, or 11%, for the first nine months of 2025 compared to 2024 and the effective tax rate was (40)% for 2025 and (86)% for 2024. The $20 million decrease is primarily due to lower loss accruals associated with the 2020 Wildfires and lower benefit from the effects of ratemaking, partially offset by higher PTCs from PacifiCorp's wind-powered generating facilities.

**Liquidity and Capital Resources**

<u>Overview</u>

PacifiCorp's liquidity has been materially impacted by the Wildfires, and it may be unable to maintain sufficient levels of cash or obtain necessary short- and long-term financing to fund its operations, implement its business strategy, make interest payments, make scheduled repayments of long-term debt, finance its capital investments and fund potential future settlements associated with the Wildfires. To help mitigate PacifiCorp's liquidity pressures, BHE has indicated that it will suspend dividends for the next several years in order to allow PacifiCorp to accumulate cash that may be necessary in the event of additional future settlements associated with the Wildfires.

Additionally, to the extent PacifiCorp is unable to obtain additional surety bonds in the event of further unfavorable trial verdicts associated with the Wildfires, it may be required to post letters of credit or cash to secure such judgments. Such requirements could further reduce PacifiCorp's liquidity and availability under its revolving credit facility as further described in the "Potential Effects of *James* CMO No. 11" section in Note 10 of the Notes to Consolidated Financial Statements of PacifiCorp in Part I, Item 1 of this Form 10-Q. PacifiCorp believes it will have sufficient liquidity to cover its operations and obligations beyond a year.

------

As of September 30, 2025, PacifiCorp's total net liquidity was as follows (in millions):

---

| | |
|:---|:---|
| Cash and cash equivalents | $46 |
| Credit facilities<sup>(1)</sup> | 2900 |
| Less: |  |
| &nbsp;&nbsp;&nbsp;Short-term debt | (75) |
| &nbsp;&nbsp;&nbsp;Tax-exempt bond support and letters of credit | (52) |
| Net credit facility | 2773 |
| Total net liquidity | $2819 |
| &nbsp;&nbsp;&nbsp;Maturity dates | 2026, 2028 |

---

(1)Refer to "Credit Facilities and Letters of Credit" below for further discussion regarding PacifiCorp's credit facilities.

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024 were $1,757 million and $671 million, respectively. The increase is primarily due to lower wholesale purchases, higher collections from retail customers and lower cash paid for wildfire liability settlement payments, partially offset by lower insurance reimbursements related to wildfire liabilities and higher cash paid for income taxes and interest.

The timing of PacifiCorp's income tax cash flows from period to period can be significantly affected by the estimated federal income tax payment methods and assumptions made for each payment date.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024 were $(2,171) million and $(2,150) million, respectively. The change is primarily due to an increase in capital expenditures of $22 million. Refer to "Future Uses of Cash" for discussion of capital expenditures.

<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month period ended September 30, 2025, were $418 million. Sources of cash consisted of net proceeds from the issuance of junior subordinated notes of $841 million. Uses of cash consisted primarily of $250 million for the repayment of long-term debt and $165 million for the repayment of short-term debt.

For a discussion of recent financing transactions, refer to Note 5 of Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

Net cash flows from financing activities for the nine-month period ended September 30, 2024, were $1.7 billion. Sources of cash consisted of net proceeds from the issuance of long-term debt of $3.8 billion. Uses of cash consisted primarily of $1.6 billion for the repayment of short-term debt and $425 million for the repayment of long-term debt.

*Short-term Debt*

Regulatory authorities limit PacifiCorp to $3.0 billion of short-term debt. As of September 30, 2025, PacifiCorp had $75 million of short-term debt outstanding at a weighted average rate of 4.38%. As of December 31, 2024, PacifiCorp had $240 million of short-term debt outstanding at a weighted average rate of 4.65%.

*Long-term Debt Authorizations*

PacifiCorp currently has regulatory authority from the OPUC and the IPUC to issue an additional $4.15 billion of long-term debt. PacifiCorp's authorization from the IPUC is through April 2029. PacifiCorp must make a notice filing with the WUTC prior to any future issuance. PacifiCorp currently has an effective shelf registration statement filed with the SEC to issue an indeterminate amount of first mortgage bonds and unsecured debt securities through July 2027.

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*Credit Facilities and Letters of Credit*

In June 2025, PacifiCorp amended its existing $2.0 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement. As of September 30, 2025, PacifiCorp had no letters of credit outstanding under its $2.0 billion revolving credit facility and had an additional $59 million of letters of credit outstanding in support of certain transactions required by third parties.

In June 2025, PacifiCorp amended its existing $900 million 364-day unsecured credit facility expiring in June 2025. The amendment extended the expiration date to June 2026 and amended certain provisions of the existing credit agreement. As of September 30, 2025, PacifiCorp's $900 million 364-day unsecured credit facility was fully available.

<u>Future Uses of Cash</u>

PacifiCorp has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, the issuance of commercial paper, the use of unsecured revolving credit facilities, bank loans, capital contributions and other sources. These sources are expected to provide funds required for current operations, capital expenditures, debt retirements and other capital requirements. The availability and terms under which PacifiCorp has access to external financing depend on a variety of factors, including PacifiCorp's credit ratings, investors' judgment of risk associated with PacifiCorp and conditions in the overall capital markets, including the condition of the utility industry.

*Capital Expenditures*

PacifiCorp has significant future capital requirements. Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, impacts to customer rates; changes in environmental and other rules and regulations; outcomes of regulatory proceedings, including regulatory filings for Certificates of Public Convenience and Necessity; outcomes of legal actions associated with the Wildfires, including the impacts of the recent *James* case management order on PacifiCorp's liquidity; changes in income tax laws; general business conditions; new customer requests; load projections; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital.

PacifiCorp's historical and forecast capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items, are as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| Electric distribution | $567 | $569 | $801 |
| Electric transmission | 612 | 472 | 714 |
| Wildfire prevention | 264 | 591 | 689 |
| Wind generation | 268 | 184 | 228 |
| Other | 446 | 363 | 619 |
| &nbsp;&nbsp;&nbsp;Total | $2157 | $2179 | $3051 |

---

PacifiCorp's historical and forecast capital expenditures include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric distribution includes both growth projects and operating expenditures. Growth expenditures include spending on new customer connections totaling $243 million and $253 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for new customer connections totals $127 million for the remainder of 2025. The remaining investments primarily relate to expenditures for distribution operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric transmission includes both growth projects and operating expenditures. Transmission growth primarily reflects costs associated with major transmission projects totaling $153 million and $376 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for major transmission projects that are expected to be placed in-service through 2034 totals $104 million for the remainder of 2025.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wildfire prevention includes operating expenditures totaling $591 million and $264 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for wildfire prevention totals $98 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wind generation includes both growth projects and operating expenditures. Growth projects include construction of new wind-powered generating facilities and construction at existing wind-powered generating facility sites acquired from third parties totaling $165 million and $249 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the construction of additional wind-powered generating facilities and those at acquired sites totals $35 million for the remainder of 2025 and is primarily for the Rock Creek I and Rock Creek II wind-powered generating facilities totaling approximately 529 MWs that are expected to be placed in-service in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other includes both growth projects and operating expenditures. Expenditures for information technology totaled $96 million and $125 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned information technology spending totals $56 million for the remainder of 2025. The remaining investments relate to operating projects that consist of routine expenditures for generation and other infrastructure needed to serve existing and expected demand.

*Energy Supply Planning*

As required by certain state regulations, PacifiCorp uses an IRP to develop a long-term resource plan to ensure that PacifiCorp can continue to provide reliable and cost-effective electric service to its customers while maintaining compliance with existing and evolving environmental laws and regulations. PacifiCorp files its IRP biennially with the state commissions in each of the six states where PacifiCorp operates. Five states indicate whether the IRP meets the state commission's IRP standards and guidelines, a process referred to as "acknowledgment" in some states. Acknowledgment by a state commission does not address cost recovery or prudency of resources ultimately selected.

In March 2025, PacifiCorp filed its 2025 IRP in Utah, Oregon, Wyoming, Washington, Idaho and California. The 2025 IRP highlights a need for investment in transmission infrastructure, renewable solar and wind resources, new energy storage, conversion of coal-fueled generating units to natural gas, demand response and energy efficiency programs and carbon capture technology.

*Requests for Proposals*

PacifiCorp issues individual RFPs to procure resources identified in the IRP or resources driven by customer demands and regulatory policy changes. The IRP and the RFPs provide for the identification and staged procurement of resources to meet load or state-specific compliance obligations. Depending upon the specific RFP, applicable laws and regulations may require PacifiCorp to file draft RFPs with the UPSC, the OPUC and the WUTC. Approval by the UPSC, the OPUC or the WUTC may be required depending on the nature of the RFPs.

In April 2025, PacifiCorp filed an expedited application with the OPUC seeking approval to issue to market an RFP for new generating and energy storage resources that will serve Oregon customers and be recovered through Oregon retail rates. In May 2025, the OPUC issued an order for a partial waiver of competitive bidding rules but still requiring PacifiCorp to go through the formal approval process. The OPUC approved the RFP in August 2025, with certain conditions. Those conditions were satisfied in October 2025, when it was issued to market.

In June 2025, PacifiCorp filed an expedited application with the WUTC seeking approval to issue to market an RFP for new generating and energy storage resources that will serve Washington customers and be recovered through Washington retail rates. The WUTC approved the RFP in August 2025, and it was issued to market in September 2025.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes in cash requirements from the information provided in Item 7 of PacifiCorp's Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Notes 5 and 10 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

**Regulatory Matters**

PacifiCorp is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding PacifiCorp's current regulatory matters.

------

**Environmental Laws and Regulations**

PacifiCorp is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact PacifiCorp's current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. PacifiCorp believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and PacifiCorp is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

**Collateral and Contingent Features**

Debt securities of PacifiCorp are rated by credit rating agencies. Assigned credit ratings are based on each rating agency's assessment of PacifiCorp's ability to, in general, meet the obligations of its issued debt securities. The credit ratings are not a recommendation to buy, sell or hold securities, and there is no assurance that a particular credit rating will continue for any given period of time. As of September 30, 2025, PacifiCorp's issuer credit ratings for senior unsecured debt from the recognized credit rating agencies were investment grade.

PacifiCorp has no credit rating downgrade triggers that would accelerate the maturity dates of outstanding debt and a change in ratings is not an event of default under the applicable debt instruments. PacifiCorp's unsecured revolving credit facilities do not require the maintenance of a minimum credit rating level to draw upon their availability. However, commitment fees and interest rates under the credit facilities are tied to credit ratings and increase or decrease when the ratings change. A ratings downgrade could also increase the future cost of commercial paper, short- and long-term debt issuances or new credit facilities. Certain authorizations or exemptions by regulatory commissions for the issuance of securities are valid as long as PacifiCorp maintains investment grade ratings on senior secured debt. A downgrade below that level would necessitate new regulatory applications and approvals.

In accordance with industry practice, certain wholesale energy agreements, including contracts for purchases, sales, and transportation of electricity, natural gas, and coal, some of which are accounted for as derivatives, contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the recognized credit rating agencies. These agreements may provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features"). These agreements and other agreements that do not refer to specified rating-dependent thresholds may provide the right for counterparties to demand "adequate assurance" if there is a material adverse change in PacifiCorp's creditworthiness. These rights can vary by contract and by counterparty. If all credit-risk-related contingent features or adequate assurance provisions for these agreements had been triggered as of September 30, 2025, PacifiCorp would have been required to post $187 million of additional collateral. PacifiCorp's collateral requirements could fluctuate considerably due to market price volatility, changes in credit ratings, changes in legislation or regulation, outstanding accounts payable and receivable or other factors. Refer to Note 8 of Notes to Consolidated Financial Statements in Item 1 of this Form 10-Q for a discussion of PacifiCorp's collateral requirements specific to PacifiCorp's derivative contracts.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, pension and other postretirement benefits, income taxes and wildfire loss contingencies. For additional discussion of PacifiCorp's critical accounting estimates, see Item 7 of PacifiCorp's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in PacifiCorp's assumptions regarding critical accounting estimates since December 31, 2024. Refer to Note 10 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for discussion of loss contingencies related to the Wildfires.

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**MidAmerican Funding, LLC and its subsidiaries and MidAmerican Energy Company** 

**Consolidated Financial Section**

------

**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholder of

MidAmerican Energy Company

**Results of Review of Interim Financial Information**

We have reviewed the accompanying balance sheet of MidAmerican Energy Company ("MidAmerican Energy") as of September 30, 2025, the related statements of operations, and changes in shareholder's equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the balance sheet of MidAmerican Energy as of December 31, 2024, and the related statements of operations, changes in shareholder's equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of MidAmerican Energy's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to MidAmerican Energy in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

October 31, 2025

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**MIDAMERICAN ENERGY COMPANY**

**BALANCE SHEETS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $933 | $549 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 457 | 230 |
| &nbsp;&nbsp;&nbsp;Income tax receivable |  | 2 |
| &nbsp;&nbsp;&nbsp;Inventories | 314 | 369 |
| &nbsp;&nbsp;&nbsp;Prepayments | 128 | 117 |
| &nbsp;&nbsp;&nbsp;Other current assets | 66 | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1898 | 1330 |
| Property, plant and equipment, net | 23246 | 22765 |
| Regulatory assets | 663 | 622 |
| Investments and restricted investments | 1253 | 1147 |
| Other assets | 249 | 252 |
| **Total assets** | $27309 | $26116 |

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The accompanying notes are an integral part of these financial statements.

------

**MIDAMERICAN ENERGY COMPANY**

**BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $386 | $375 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 92 | 117 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 261 | 192 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 4 | 17 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 148 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 891 | 792 |
| Long-term debt | 8810 | 8807 |
| Regulatory liabilities | 1320 | 1264 |
| Deferred income taxes | 3721 | 3626 |
| Asset retirement obligations | 851 | 823 |
| Other long-term liabilities | 718 | 623 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 16311 | 15935 |
| Commitments and contingencies (Note 9) |  |  |
| **Shareholder's equity:** |  |  |
| &nbsp;&nbsp;Common stock - 350 shares authorized, no par value, 71 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 561 | 561 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 10437 | 9620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholder's equity | 10998 | 10181 |
| **Total liabilities and shareholder's equity** | $27309 | $26116 |

---

The accompanying notes are an integral part of these financial statements.

------

**MIDAMERICAN ENERGY COMPANY**

**STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $1026 | $814 | $2436 | $2014 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas and other | 100 | 93 | 564 | 466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 1126 | 907 | 3000 | 2480 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 266 | 136 | 543 | 326 |
| &nbsp;&nbsp;&nbsp;Cost of natural gas purchased for resale and other | 43 | 37 | 346 | 254 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 241 | 230 | 703 | 696 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 209 | 230 | 771 | 685 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 45 | 40 | 133 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 804 | 673 | 2496 | 2085 |
| **Operating income** | 322 | 234 | 504 | 395 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (100) | (106) | (301) | (315) |
| &nbsp;&nbsp;&nbsp;Allowance for borrowed funds | 9 | 8 | 24 | 21 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 23 | 19 | 62 | 53 |
| &nbsp;&nbsp;&nbsp;Other, net | 22 | 25 | 50 | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (46) | (54) | (165) | (172) |
| **Income before income tax expense (benefit)** | 276 | 180 | 339 | 223 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (65) | (160) | (479) | (592) |
| **Net income** | $341 | $340 | $818 | $815 |

---

The accompanying notes are an integral part of these financial statements.

------

**MIDAMERICAN ENERGY COMPANY**

**STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Common Stock** | **Additional Paid-in Capital** | **Retained<br>Earnings** | **Total Shareholder's<br>Equity** |
| **Balance, June 30, 2024** | $— | $561 | $9092 | $9653 |
| Net income |  |  | 340 | 340 |
| **Balance, September 30, 2024** | $— | $561 | $9432 | $9993 |
| **Balance, December 31, 2023** | $— | $561 | $9042 | $9603 |
| Net income |  |  | 815 | 815 |
| Common stock dividend |  |  | (425) | (425) |
| **Balance, September 30, 2024** | $— | $561 | $9432 | $9993 |
| **Balance, June 30, 2025** | $— | $561 | $10097 | $10658 |
| Net income |  |  | 341 | 341 |
| Other equity transactions |  |  | (1) | (1) |
| **Balance, September 30, 2025** | $— | $561 | $10437 | $10998 |
| **Balance, December 31, 2024** | $— | $561 | $9620 | $10181 |
| Net income |  |  | 818 | 818 |
| Other equity transactions |  |  | (1) | (1) |
| **Balance, September 30, 2025** | $— | $561 | $10437 | $10998 |

---

The accompanying notes are an integral part of these financial statements.

------

**MIDAMERICAN ENERGY COMPANY**

**STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $818 | $815 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 771 | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of utility plant to other operating expenses | 27 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (62) | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and investment tax credits, net | 65 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (37) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | (231) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 55 | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes, net | 67 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | (4) | (167) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 1469 | 1369 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (1210) | (1100) |
| &nbsp;&nbsp;&nbsp;Purchases of marketable securities | (340) | (234) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of marketable securities | 339 | 224 |
| &nbsp;&nbsp;&nbsp;Other, net | 5 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (1206) | (1100) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock dividends |  | (425) |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term debt |  | 592 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt | (16) | (2) |
| &nbsp;&nbsp;&nbsp;Other, net | 137 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 121 | 163 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 384 | 432 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 555 | 642 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $939 | $1074 |

---

The accompanying notes are an integral part of these financial statements.

------

**MIDAMERICAN ENERGY COMPANY**

**NOTES TO FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General**

MidAmerican Energy Company ("MidAmerican Energy") is a public utility with electric and natural gas operations and is the principal subsidiary of MHC Inc. ("MHC"). MHC is a holding company that conducts no business other than the ownership of its subsidiaries. MHC's nonregulated subsidiary is Midwest Capital Group, Inc. MHC is the direct wholly owned subsidiary of MidAmerican Funding, LLC ("MidAmerican Funding"), which is an Iowa limited liability company with Berkshire Hathaway Energy Company ("BHE") as its sole member. BHE is a holding company headquartered in Iowa, that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Financial Statements. Note 2 of Notes to Financial Statements included in MidAmerican Energy's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Financial Statements. There have been no significant changes in MidAmerican Energy's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. MidAmerican Energy is currently evaluating the impact of adopting this guidance on its Financial Statements and disclosures included within Notes to Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. MidAmerican Energy is currently evaluating the impact of adopting this guidance on its Financial Statements and disclosures included within Notes to Financial Statements.

------

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Cash and Cash Equivalents and Restricted Cash and Cash Equivalents**

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist substantially of funds restricted for wildlife preservation. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $933 | $549 |
| Restricted cash and cash equivalents in other current assets | 6 | 6 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $939 | $555 |

---

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net**

Property, plant and equipment, net consists of the following (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| |<br>**Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Utility plant:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Generation | 20-62 years | $17908 | $18446 |
| &nbsp;&nbsp;&nbsp;Transmission | 55-80 years | 3038 | 3029 |
| &nbsp;&nbsp;&nbsp;Electric distribution | 15-80 years | 6280 | 5890 |
| &nbsp;&nbsp;&nbsp;Natural gas distribution | 30-75 years | 2447 | 2413 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service |  | 29673 | 29778 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (8500) | (8572) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service, net |  | 21173 | 21206 |
| Nonregulated, net of accumulated depreciation and amortization | 20-50 years | 6 | 6 |
|  |  | 21179 | 21212 |
| Construction work-in-progress |  | 2067 | 1553 |
| &nbsp;&nbsp;Property, plant and equipment, net |  | $23246 | $22765 |

---

Under a revenue sharing arrangement in Iowa, MidAmerican Energy accrues throughout the year a regulatory liability based on the extent to which its anticipated annual equity return exceeds specified thresholds, with an equal amount recorded in depreciation and amortization expense. The annual regulatory liability accrual reduces utility plant upon final determination of the amount. For the nine-month periods ended September 30, 2025 and 2024, $38 million and $— million, respectively, is reflected in depreciation and amortization expense on the Statements of Operations.

**(5)**&nbsp;&nbsp;&nbsp;&nbsp;**Recent Financing Transactions**

*Credit Facilities*

In June 2025, MidAmerican Energy amended its existing $1.5 billion unsecured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

------

**(6)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| Income tax credits | (42) | (94) | (160) | (270) |
| State income tax, net of federal income tax impacts | (1) | (9) | (1) | (9) |
| Effects of ratemaking | (1) | (6) | (1) | (5) |
| Other, net | (1) | (1) |  | (2) |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | (24)% | (89)% | (141)% | (265)% |

---

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Energy recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the nine-month periods ended September 30, 2025 and 2024, totaled $547 million and $602 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Energy's provision for income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Energy received net cash payments for income tax from BHE totaling $634 million and $736 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

MidAmerican Energy sponsors a noncontributory defined benefit pension plan covering a majority of all employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc. MidAmerican Energy also sponsors certain postretirement healthcare and life insurance benefits covering substantially all retired employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc.

------

Net periodic benefit cost (credit) for the plans of MidAmerican Energy and the aforementioned affiliates included the following components (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Pension:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service cost | $2 | $2 | $6 | $7 |
| &nbsp;&nbsp;&nbsp;Interest cost | 7 | 7 | 23 | 23 |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | (7) | (8) | (23) | (24) |
| &nbsp;&nbsp;&nbsp;Net amortization |  | 1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit cost | $2 | $2 | $6 | $6 |
| **Other postretirement:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service cost | $1 | $2 | $3 | $4 |
| &nbsp;&nbsp;&nbsp;Interest cost | 3 | 3 | 9 | 9 |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | (5) | (4) | (14) | (12) |
| &nbsp;&nbsp;&nbsp;Net amortization | (1) |  | (2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit (credit) cost | $(2) | $1 | $(4) | $2 |

---

Amounts other than the service cost for pension and other postretirement benefit plans are recorded in other, net on the Statements of Operations. Employer contributions to the pension and other postretirement benefit plans during 2025 are expected to be $7 million and $1 million, respectively. As of September 30, 2025, $5 million and $1 million of contributions had been made to the pension and other postretirement benefit plans, respectively.

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

The carrying value of MidAmerican Energy's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. MidAmerican Energy has various financial assets and liabilities that are measured at fair value on the Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

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

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

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

------

The following table presents MidAmerican Energy's financial assets and liabilities recognized on the Balance Sheets and measured at fair value on a recurring basis (in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Other**<sup>(1)</sup> |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | | |
| **Assets:** | | | | | |
| Commodity derivatives | $— | $7 | $1 | $(3) | $5 |
| Money market mutual funds | 876 |  |  |  | 876 |
| Debt securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government obligations | 278 |  |  |  | 278 |
| &nbsp;&nbsp;&nbsp;Corporate obligations |  | 128 |  |  | 128 |
| &nbsp;&nbsp;&nbsp;Municipal obligations |  | 2 |  |  | 2 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. companies | 539 |  |  |  | 539 |
| &nbsp;&nbsp;&nbsp;International companies | 9 |  |  |  | 9 |
| &nbsp;&nbsp;&nbsp;Investment funds | 20 |  |  |  | 20 |
|  | $1722 | $137 | $1 | $(3) | $1857 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $— | $(12) | $(5) | $7 | $(10) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Other**<sup>(1)</sup> |<br>**Total** |
| **<u>As of December 31, 2024:</u>** | | | | | |
| **Assets:** | | | | | |
| Commodity derivatives | $— | $5 | $1 | $(3) | $3 |
| Money market mutual funds | 538 |  |  |  | 538 |
| Debt securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government obligations | 271 |  |  |  | 271 |
| &nbsp;&nbsp;&nbsp;Corporate obligations |  | 109 |  |  | 109 |
| &nbsp;&nbsp;&nbsp;Municipal obligations |  | 2 |  |  | 2 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. companies | 479 |  |  |  | 479 |
| &nbsp;&nbsp;&nbsp;International companies | 9 |  |  |  | 9 |
| &nbsp;&nbsp;&nbsp;Investment funds | 23 |  |  |  | 23 |
|  | $1320 | $116 | $1 | $(3) | $1434 |
| **Liabilities:** |  |  |  |  |  |
| Commodity derivatives | $— | $(15) | $(3) | $6 | $(12) |

---

(1)Represents netting under master netting arrangements and a net cash collateral receivable of $4 million and $3 million as of September 30, 2025, and December 31, 2024, respectively.

MidAmerican Energy's investments in money market mutual funds and debt and equity securities are stated at fair value, with debt securities accounted for as available-for-sale securities. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. In the absence of a quoted market price or net asset value of an identical security, the fair value is determined using pricing models or net asset values based on observable market inputs and quoted market prices of securities with similar characteristics.

------

The following table reconciles the beginning and ending balances of MidAmerican Energy's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $— | $(2) | $(2) | $(11) |
| Changes in fair value recognized in net regulatory assets | (6) | (11) | (6) | (17) |
| Settlements | 2 | 5 | 4 | 20 |
| **Ending balance** | $(4) | $(8) | $(4) | $(8) |

---

MidAmerican Energy's long-term debt is carried at cost on the Balance Sheets. The fair value of MidAmerican Energy's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Energy's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Energy's long-term debt (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying<br>Value** | **Fair<br>Value** | **Carrying<br>Value** | **Fair<br>Value** |
| Long-term debt | $8814 | $8130 | $8824 | $7911 |

---

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Commitments*

MidAmerican Energy has the following firm commitments that are not reflected on the Balance Sheets.

*Construction Commitments*

During the nine-month period ended September 30, 2025, MidAmerican Energy entered into firm construction commitments totaling $73 million for the remainder of 2025 through 2028 related to the construction of wind-powered, solar-powered and other new generating facilities in Iowa.

In October 2025, MidAmerican Energy entered into firm construction commitments totaling $531 million for the remainder of 2025 through 2029 related to the construction of wind-powered, solar-powered and other new generating facilities in Iowa.

*Environmental Laws and Regulations*

MidAmerican Energy is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact its current and future operations. MidAmerican Energy believes it is in material compliance with all applicable laws and regulations.

*Legal Matters*

MidAmerican Energy is party to a variety of legal actions arising out of the normal course of business. MidAmerican Energy does not believe that such normal and routine litigation will have a material impact on its financial results.

------

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

The following table summarizes MidAmerican Energy's revenue from contracts with customers ("Customer Revenue") by line of business, with further disaggregation of retail by customer class, including a reconciliation to MidAmerican Energy's reportable segment information included in Note 11 (in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **Electric** | **Natural Gas** | **Other** | **Total** | **Electric** | **Natural Gas** | **Other** | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $279 | $55 | $— | $334 | $637 | $324 | $— | $961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 121 | 17 |  | 138 | 290 | 119 |  | 409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 444 | 5 |  | 449 | 1020 | 19 |  | 1039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas transportation services |  | 12 |  | 12 |  | 39 |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other retail | 50 | 1 |  | 51 | 126 | 3 |  | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail | 894 | 90 |  | 984 | 2073 | 504 |  | 2577 |
| &nbsp;&nbsp;Wholesale | 109 | 9 |  | 118 | 266 | 56 |  | 322 |
| &nbsp;&nbsp;Multi-value transmission projects | 14 |  |  | 14 | 41 |  |  | 41 |
| &nbsp;&nbsp;Other Customer Revenue |  |  |  |  |  |  | 3 | 3 |
| Total Customer Revenue | 1017 | 99 |  | 1116 | 2380 | 560 | 3 | 2943 |
| Other revenue | 9 | 1 |  | 10 | 56 | 1 |  | 57 |
| Total operating revenue | $1026 | $100 | $— | $1126 | $2436 | $561 | $3 | $3000 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **Electric** | **Natural Gas** | **Other** | **Total** | **Electric** | **Natural Gas** | **Other** | **Total** |
| Customer Revenue: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $242 | $51 | $— | $293 | $581 | $276 | $— | $857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 104 | 15 |  | 119 | 262 | 95 |  | 357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 338 | 4 |  | 342 | 830 | 12 |  | 842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas transportation services |  | 12 |  | 12 |  | 37 |  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other retail | 50 |  |  | 50 | 125 | 4 |  | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail | 734 | 82 |  | 816 | 1798 | 424 |  | 2222 |
| &nbsp;&nbsp;Wholesale | 53 | 9 |  | 62 | 122 | 37 |  | 159 |
| &nbsp;&nbsp;Multi-value transmission projects | 15 |  |  | 15 | 43 |  |  | 43 |
| &nbsp;&nbsp;Other Customer Revenue |  |  | 2 | 2 |  |  | 4 | 4 |
| Total Customer Revenue | 802 | 91 | 2 | 895 | 1963 | 461 | 4 | 2428 |
| Other revenue | 12 |  |  | 12 | 51 | 1 |  | 52 |
| Total operating revenue | $814 | $91 | $2 | $907 | $2014 | $462 | $4 | $2480 |

---

**(11)&nbsp;&nbsp;&nbsp;&nbsp;Segment Information**

MidAmerican Energy's chief operating decision maker ("CODM") is its President and Chief Executive Officer. Net income for each reportable segment is considered by the CODM in allocating resources and capital. The CODM generally considers actual results versus historical results, budgets or forecasts, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital to each reportable segment.

------

MidAmerican Energy has identified two reportable operating segments: regulated electric and regulated natural gas. The regulated electric segment derives most of its revenue from regulated retail sales of electricity to residential, commercial, and industrial customers and from wholesale sales. The regulated natural gas segment derives most of its revenue from regulated retail sales of natural gas to residential, commercial, and industrial customers and also obtains revenue by transporting natural gas owned by others through its distribution system. Pricing for regulated electric and regulated natural gas sales are established separately by regulatory agencies; therefore, management also reviews each segment separately to make decisions regarding allocation of resources and in evaluating performance. Common operating costs are allocated to each segment based on certain factors, which primarily relate to the nature of the cost.

The following tables provide information on a reportable segment basis (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $1026 | $100 | $— | $1126 |
| Cost of sales | 266 | 43 |  | 309 |
| Operations and maintenance | 205 | 36 |  | 241 |
| Depreciation and amortization | 191 | 18 |  | 209 |
| Property and other taxes | 41 | 4 |  | 45 |
| Operating income | 323 | (1) |  | 322 |
| Interest expense | (92) | (8) |  | (100) |
| Interest and dividend income | 9 | 1 |  | 10 |
| Income tax expense (benefit) | (62) | (2) | (1) | (65) |
| Other segment items<sup>(2)</sup> | 40 | 4 |  | 44 |
| Net income (loss) | $342 | $(2) | $1 | $341 |
| Capital expenditures | $435 | $35 | $— | $470 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $2436 | $561 | $3 | $3000 |
| Cost of sales | 543 | 345 | 1 | 889 |
| Operations and maintenance | 599 | 103 | 1 | 703 |
| Depreciation and amortization | 719 | 52 |  | 771 |
| Property and other taxes | 122 | 11 |  | 133 |
| Operating income | 453 | 50 | 1 | 504 |
| Interest expense | (278) | (23) |  | (301) |
| Interest and dividend income | 22 | 2 |  | 24 |
| Income tax expense (benefit) | (488) | 8 | 1 | (479) |
| Other segment items<sup>(2)</sup> | 104 | 10 | (2) | 112 |
| Net income (loss) | $789 | $31 | $(2) | $818 |
| Capital expenditures | $1118 | $91 | $1 | $1210 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $814 | $91 | $2 | $907 |
| Cost of sales | 136 | 37 |  | 173 |
| Operations and maintenance | 190 | 39 | 1 | 230 |
| Depreciation and amortization | 214 | 16 |  | 230 |
| Property and other taxes | 37 | 3 |  | 40 |
| Operating income | 237 | (4) | 1 | 234 |
| Interest expense | (98) | (8) |  | (106) |
| Interest and dividend income | 12 | 1 |  | 13 |
| Income tax expense (benefit) | (153) | (3) | (4) | (160) |
| Other segment items<sup>(2)</sup> | 33 | 6 |  | 39 |
| Net income (loss) | $337 | $(2) | $5 | $340 |
| Capital expenditures | $344 | $18 | $— | $362 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $2014 | $462 | $4 | $2480 |
| Cost of sales | 326 | 254 |  | 580 |
| Operations and maintenance | 592 | 103 | 1 | 696 |
| Depreciation and amortization | 636 | 49 |  | 685 |
| Property and other taxes | 113 | 11 |  | 124 |
| Operating income | 347 | 45 | 3 | 395 |
| Interest expense | (292) | (23) |  | (315) |
| Interest and dividend income | 29 | 3 |  | 32 |
| Income tax expense (benefit) | (597) | 6 | (1) | (592) |
| Other segment items<sup>(2)</sup> | 105 | 10 | (4) | 111 |
| Net income (loss) | $786 | $29 | $— | $815 |
| Capital expenditures | $1038 | $61 | $1 | $1100 |

---

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $25260 | $24159 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas | 2048 | 1956 |
| &nbsp;&nbsp;Other<sup>(1)</sup> | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $27309 | $26116 |

---

(1)The differences between the reportable segment amounts and the consolidated amounts, described as Other, relate to nonregulated activities of MidAmerican Energy.

(2)Other segment items include allowance for borrowed and equity funds, gains (losses) on marketable securities and other income (expense).

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Managers and Member of

MidAmerican Funding, LLC

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of MidAmerican Funding, LLC and subsidiaries ("MidAmerican Funding") as of September 30, 2025, the related consolidated statements of operations, and changes in member's equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB) and in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheet of MidAmerican Funding as of December 31, 2024, and the related consolidated statements of operations, changes in member's equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of MidAmerican Funding's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to MidAmerican Funding in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB and with auditing standards generally accepted in the United States of America applicable to reviews of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB and with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

October 31, 2025

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $934 | $552 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 457 | 230 |
| &nbsp;&nbsp;&nbsp;Income tax receivable |  | 2 |
| &nbsp;&nbsp;&nbsp;Inventories | 314 | 369 |
| &nbsp;&nbsp;&nbsp;Prepayments | 128 | 117 |
| &nbsp;&nbsp;&nbsp;Other current assets | 66 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1899 | 1332 |
| Property, plant and equipment, net | 23247 | 22766 |
| Goodwill | 1270 | 1270 |
| Regulatory assets | 663 | 622 |
| Investments and restricted investments | 1254 | 1149 |
| Other assets | 249 | 251 |
| **Total assets** | $28582 | $27390 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND MEMBER'S EQUITY** | **LIABILITIES AND MEMBER'S EQUITY** | **LIABILITIES AND MEMBER'S EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $385 | $375 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 93 | 122 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 261 | 192 |
| &nbsp;&nbsp;&nbsp;Note payable to affiliate | 26 | 13 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 4 | 17 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 148 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 917 | 811 |
| Long-term debt | 9050 | 9047 |
| Regulatory liabilities | 1320 | 1264 |
| Deferred income taxes | 3719 | 3624 |
| Asset retirement obligations | 851 | 823 |
| Other long-term liabilities | 718 | 622 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 16575 | 16191 |
| Commitments and contingencies (Note 9) |  |  |
| **Member's equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Paid-in capital | 1679 | 1679 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 10328 | 9520 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total member's equity | 12007 | 11199 |
| **Total liabilities and member's equity** | $28582 | $27390 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $1026 | $814 | $2436 | $2014 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas and other | 100 | 93 | 564 | 466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 1126 | 907 | 3000 | 2480 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 266 | 136 | 543 | 326 |
| &nbsp;&nbsp;&nbsp;Cost of natural gas purchased for resale and other | 43 | 37 | 346 | 254 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 241 | 230 | 704 | 696 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 209 | 230 | 771 | 685 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 45 | 40 | 133 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 804 | 673 | 2497 | 2085 |
| **Operating income** | 322 | 234 | 503 | 395 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (104) | (109) | (314) | (327) |
| &nbsp;&nbsp;&nbsp;Allowance for borrowed funds | 9 | 8 | 24 | 21 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 23 | 19 | 62 | 53 |
| &nbsp;&nbsp;&nbsp;Other, net | 21 | 23 | 50 | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (51) | (59) | (178) | (185) |
| **Income before income tax expense (benefit)** | 271 | 175 | 325 | 210 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (66) | (162) | (483) | (596) |
| **Net income** | $337 | $337 | $808 | $806 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY (Unaudited)**

(Amounts in millions)

---

| | | | |
|:---|:---|:---|:---|
| | **Paid-in<br>Capital** | **Retained<br>Earnings** | **Total Member's<br>Equity** |
| **Balance, June 30, 2024** | $1679 | $8998 | $10677 |
| Net income |  | 337 | 337 |
| **Balance, September 30, 2024** | $1679 | $9335 | $11014 |
| **Balance, December 31, 2023** | $1679 | $8954 | $10633 |
| Net income |  | 806 | 806 |
| Distribution to member |  | (425) | (425) |
| **Balance, September 30, 2024** | $1679 | $9335 | $11014 |
| **Balance, June 30, 2025** | $1679 | $9990 | $11669 |
| Net income |  | 337 | 337 |
| Other equity transactions |  | 1 | 1 |
| **Balance, September 30, 2025** | $1679 | $10328 | $12007 |
| **Balance, December 31, 2024** | $1679 | $9520 | $11199 |
| Net income |  | 808 | 808 |
| **Balance, September 30, 2025** | $1679 | $10328 | $12007 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $808 | $806 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 771 | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of utility plant to other operating expenses | 27 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (62) | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and investment tax credits, net | 65 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (36) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | (231) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 55 | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes, net | 67 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | (10) | (173) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 1454 | 1355 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (1210) | (1100) |
| &nbsp;&nbsp;&nbsp;Purchases of marketable securities | (340) | (234) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of marketable securities | 339 | 224 |
| &nbsp;&nbsp;&nbsp;Other, net | 5 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (1206) | (1100) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Distribution to member |  | (425) |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term debt |  | 592 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt | (16) | (2) |
| &nbsp;&nbsp;&nbsp;Net change in note payable to affiliate | 13 | 13 |
| &nbsp;&nbsp;&nbsp;Other, net | 137 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 134 | 176 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 382 | 431 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 558 | 643 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $940 | $1074 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**MIDAMERICAN FUNDING, LLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General**

MidAmerican Funding, LLC ("MidAmerican Funding") is an Iowa limited liability company with Berkshire Hathaway Energy Company ("BHE") as its sole member. BHE is a holding company headquartered in Iowa, that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway"). MidAmerican Funding's direct wholly owned subsidiary is MHC Inc. ("MHC"), which constitutes substantially all of MidAmerican Funding's assets, liabilities and business activities except those related to MidAmerican Funding's long-term debt securities. MHC conducts no business other than the ownership of its subsidiaries. MHC's principal subsidiary is MidAmerican Energy Company ("MidAmerican Energy"), a public utility with electric and natural gas operations, and its direct wholly owned nonregulated subsidiary is Midwest Capital Group, Inc.

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in MidAmerican Funding's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in MidAmerican Funding's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

Refer to Note 2 of MidAmerican Energy's Notes to Financial Statements.

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Cash and Cash Equivalents and Restricted Cash and Cash Equivalents**

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist substantially of funds restricted for wildlife preservation. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $934 | $552 |
| Restricted cash and cash equivalents in other current assets | 6 | 6 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $940 | $558 |

---

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net**

Refer to Note 4 of MidAmerican Energy's Notes to Financial Statements.

------

**(5**)&nbsp;&nbsp;&nbsp;&nbsp;**Recent Financing Transactions**

Refer to Note 5 of MidAmerican Energy's Notes to Financial Statements.

**(6)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| Income tax credits | (43) | (96) | (167) | (287) |
| State income tax, net of federal income tax impacts | (1) | (9) | (1) | (10) |
| Effects of ratemaking | (1) | (6) | (1) | (5) |
| Other, net |  | (3) | (1) | (3) |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | (24)% | (93)% | (149)% | (284)% |

---

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Funding recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the nine-month periods ended September 30, 2025 and 2024, totaled $547 million and $602 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Funding's and MidAmerican Energy's provisions for income tax have been computed on a stand-alone basis, and substantially all of their currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Funding received net cash payments for income tax from BHE totaling $637 million and $739 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

Refer to Note 7 of MidAmerican Energy's Notes to Financial Statements.

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

Refer to Note 8 of MidAmerican Energy's Notes to Financial Statements. MidAmerican Funding's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of MidAmerican Funding's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Funding's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Funding's long-term debt (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying<br>Value** | **Fair <br>Value** | **Carrying<br>Value** | **Fair <br>Value** |
| Long-term debt | $9054 | $8387 | $9064 | $8166 |

---

------

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

MidAmerican Funding is party to a variety of legal actions arising out of the normal course of business. MidAmerican Funding does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.

Refer to Note 9 of MidAmerican Energy's Notes to Financial Statements.

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

Refer to Note 10 of MidAmerican Energy's Notes to Financial Statements.

**(11)&nbsp;&nbsp;&nbsp;&nbsp;Segment Information**

MidAmerican Funding's chief operating decision maker ("CODM") is its President. Net income for each reportable segment is considered by the CODM in allocating resources and capital. The CODM generally considers actual results versus historical results, budgets or forecasts, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital to each reportable segment.

MidAmerican Funding has identified two reportable operating segments: regulated electric and regulated natural gas. The regulated electric segment derives most of its revenue from regulated retail sales of electricity to residential, commercial, and industrial customers and from wholesale sales. The regulated natural gas segment derives most of its revenue from regulated retail sales of natural gas to residential, commercial, and industrial customers and also obtains revenue by transporting natural gas owned by others through its distribution system. Pricing for regulated electric and regulated natural gas sales are established separately by regulatory agencies; therefore, management also reviews each segment separately to make decisions regarding allocation of resources and in evaluating performance. Common operating costs are allocated to each segment based on certain factors, which primarily relate to the nature of the cost.

The following tables provide information on a reportable segment basis (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $1026 | $100 | $— | $1126 |
| Cost of sales | 266 | 43 |  | 309 |
| Operations and maintenance | 205 | 36 |  | 241 |
| Depreciation and amortization | 191 | 18 |  | 209 |
| Property and other taxes | 41 | 4 |  | 45 |
| Operating income (loss) | 323 | (1) |  | 322 |
| Interest expense | (92) | (8) | (4) | (104) |
| Interest and dividend income | 9 | 1 |  | 10 |
| Income tax expense (benefit) | (62) | (2) | (2) | (66) |
| Other segment items<sup>(2)</sup> | 40 | 4 | (1) | 43 |
| Net income (loss) | $342 | $(2) | $(3) | $337 |
| Capital expenditures | $435 | $35 | $— | $470 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $2436 | $561 | $3 | $3000 |
| Cost of sales | 543 | 345 | 1 | 889 |
| Operations and maintenance | 599 | 103 | 2 | 704 |
| Depreciation and amortization | 719 | 52 |  | 771 |
| Property and other taxes | 122 | 11 |  | 133 |
| Operating income | 453 | 50 |  | 503 |
| Interest expense | (278) | (23) | (13) | (314) |
| Interest and dividend income | 22 | 2 |  | 24 |
| Income tax expense (benefit) | (488) | 8 | (3) | (483) |
| Other segment items<sup>(2)</sup> | 104 | 10 | (2) | 112 |
| Net income (loss) | $789 | $31 | $(12) | $808 |
| Capital expenditures | $1118 | $91 | $1 | $1210 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $814 | $91 | $2 | $907 |
| Cost of sales | 136 | 37 |  | 173 |
| Operations and maintenance | 190 | 39 | 1 | 230 |
| Depreciation and amortization | 214 | 16 |  | 230 |
| Property and other taxes | 37 | 3 |  | 40 |
| Operating income | 237 | (4) | 1 | 234 |
| Interest expense | (98) | (8) | (3) | (109) |
| Interest and dividend income | 12 | 1 |  | 13 |
| Income tax expense (benefit) | (153) | (3) | (6) | (162) |
| Other segment items<sup>(2)</sup> | 33 | 6 | (2) | 37 |
| Net income (loss) | $337 | $(2) | $2 | $337 |
| Capital expenditures | $344 | $18 | $— | $362 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **Electric** | **Natural Gas** | **Other**<sup>(1)</sup> | **Total** |
| Operating revenue | $2014 | $462 | $4 | $2480 |
| Cost of sales | 326 | 254 |  | 580 |
| Operations and maintenance | 592 | 103 | 1 | 696 |
| Depreciation and amortization | 636 | 49 |  | 685 |
| Property and other taxes | 113 | 11 |  | 124 |
| Operating income | 347 | 45 | 3 | 395 |
| Interest expense | (292) | (23) | (12) | (327) |
| Interest and dividend income | 29 | 3 |  | 32 |
| Income tax expense (benefit) | (597) | 6 | (5) | (596) |
| Other segment items<sup>(2)</sup> | 105 | 10 | (5) | 110 |
| Net income (loss) | $786 | $29 | $(9) | $806 |
| Capital expenditures | $1038 | $61 | $1 | $1100 |

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $26451 | $25350 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas | 2127 | 2035 |
| &nbsp;&nbsp;Other<sup>(1)</sup> | 4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $28582 | $27390 |
| **Goodwill:** |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $1191 | $1191 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas | 79 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total goodwill | $1270 | $1270 |

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(1)The differences between the reportable segment amounts and the consolidated amounts, described as Other, consists of the nonregulated subsidiaries of MidAmerican Funding not engaged in the energy business.

(2)Other segment items include allowance for borrowed and equity funds, gains (losses) on marketable securities and other income (expense).

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

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of MidAmerican Funding and its subsidiaries and MidAmerican Energy during the periods included herein. Information in Management's Discussion and Analysis related to MidAmerican Energy, whether or not segregated, also relates to MidAmerican Funding. Information related to other subsidiaries of MidAmerican Funding pertains only to the discussion of the financial condition and results of operations of MidAmerican Funding. Where necessary, discussions have been segregated under the heading "MidAmerican Funding" to allow the reader to identify information applicable only to MidAmerican Funding. Explanations include management's best estimate of the impact of weather, customer growth, usage trends and other factors. This discussion should be read in conjunction with MidAmerican Funding's historical unaudited Consolidated Financial Statements and Notes to Consolidated Financial Statements and MidAmerican Energy's historical unaudited Financial Statements and Notes to Financial Statements in Part I, Item 1 of this Form 10-Q. MidAmerican Funding's and MidAmerican Energy's actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024** 

<u>Overview</u>

MidAmerican Energy -

MidAmerican Energy's net income for the third quarter of 2025 was $341 million, an increase of $1 million, or 0.3%, compared to 2024, primarily due to higher electric utility margin, decreased depreciation and amortization expense, lower interest expense, and higher allowances for equity and borrowed funds used during construction, partially offset by an unfavorable income tax benefit, increased operations and maintenance expense and higher property and other taxes. Electric utility margin increased primarily due to higher electric retail customer usage, higher recoveries through bill riders, the favorable impact of weather and higher wholesale margin. Electric retail customer volumes increased 11.3% primarily due to higher customer usage for certain industrial customers and the favorable impact of weather. Wholesale electricity sales volumes increased 12% due to favorable market conditions. Energy generated increased 5% primarily due to higher coal-fueled generation, partially offset by lower renewable-powered generation. Energy purchased volumes increased 61% primarily due to the increase in total sales of 11% with only a 5% increase in energy generated. Natural gas retail customer volumes increased 11% due to higher sales to industrial customers.

MidAmerican Energy's net income for the first nine months of 2025 was $818 million, an increase of $3 million, or 0.4%, compared to 2024, primarily due to higher electric utility margin, lower interest expense, higher allowances for equity and borrowed funds used during construction and higher natural gas utility margin, partially offset by an unfavorable income tax benefit, increased depreciation and amortization expense, higher property and other taxes, lower interest income, unfavorable changes in the cash surrender value of corporate-owned life insurance policies and higher operations and maintenance expense. Electric utility margin increased primarily due to higher electric retail customer usage, higher wholesale margin, the favorable impact of weather and higher recoveries through bill riders, partially offset by lower wind-turbine performance settlements and price impacts from changes in sales mix. Natural gas utility margin increased primarily due to the favorable impact of weather, partially offset by lower base rates. Electric retail customer volumes increased 9.8% primarily due to higher customer usage for certain industrial customers and the favorable impact of weather. Wholesale electricity sales volumes increased 3% due to favorable market conditions. Energy generated increased 5% primarily due to higher coal-fueled generation, partially offset by lower renewable-powered generation and natural gas-fueled generation. Energy purchased volumes increased 30% primarily due to the increase in total sales of 8% with only a 5% increase in energy generated. Natural gas retail customer volumes increased 14% due to higher sales to customers and the favorable impact of weather.

MidAmerican Funding -

MidAmerican Funding's net income for the third quarter of 2025 was $337 million, which was equal to 2024. MidAmerican Funding's net income for the first nine months of 2025 was $808 million, an increase of $2 million, or 0.2%, compared to 2024. The variance in net income was primarily due to the changes in MidAmerican Energy's earnings discussed above.

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<u>Non-GAAP Financial Measure</u>

Management utilizes various key financial measures that are prepared in accordance with GAAP, as well as non-GAAP financial measures such as electric utility margin and natural gas utility margin, to help evaluate results of operations. Electric utility margin is calculated as regulated electric operating revenue less cost of fuel and energy, which are captions presented on the Statements of Operations. Natural gas utility margin is calculated as regulated natural gas operating revenue less regulated cost of natural gas purchased for resale, which are included in regulated natural gas and other and cost of natural gas purchased for resale and other, respectively, on the Statements of Operations.

MidAmerican Energy's cost of fuel and energy and cost of natural gas purchased for resale are generally recovered from its retail customers through regulatory recovery mechanisms, and as a result, changes in MidAmerican Energy's expenses included in regulatory recovery mechanisms result in comparable changes to revenue. As such, management believes electric utility margin and natural gas utility margin more appropriately and concisely explain results of operations rather than a discussion of revenue and cost of sales separately. Management believes the presentation of electric utility margin and natural gas utility margin provides meaningful and valuable insight into the information management considers important to understanding the business and a measure of comparability to others in the industry.

Electric utility margin and natural gas utility margin are not measures calculated in accordance with GAAP and should be viewed as a supplement to, and not a substitute for, operating income, which is the most comparable financial measure prepared in accordance with GAAP. The following table provides a reconciliation of utility margin to MidAmerican Energy's operating income (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Electric utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $1026 | $814 | $212 | 26% | $2436 | $2014 | $422 | 21% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 266 | 136 | 130 | 96 | 543 | 326 | 217 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Electric utility margin** | 760 | 678 | 82 | 12% | 1893 | 1688 | 205 | 12% |
| **Natural gas utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | 100 | 91 | 9 | 10% | 561 | 462 | 99 | 21% |
| &nbsp;&nbsp;&nbsp;Natural gas purchased for resale | 43 | 37 | 6 | 16 | 345 | 254 | 91 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Natural gas utility margin** | 57 | 54 | 3 | 6% | 216 | 208 | 8 | 4% |
| **Utility margin** | 817 | 732 | 85 | 12% | 2109 | 1896 | 213 | 11% |
| Other operating revenue |  | 2 | (2) | 100% | 3 | 4 | (1) | (25)% |
| Other cost of sales |  |  |  | \* | 1 |  | 1 | \* |
| Operations and maintenance | 241 | 230 | 11 | 5 | 703 | 696 | 7 | 1 |
| Depreciation and amortization | 209 | 230 | (21) | (9) | 771 | 685 | 86 | 13 |
| Property and other taxes | 45 | 40 | 5 | 13 | 133 | 124 | 9 | 7 |
| **Operating income** | $322 | $234 | $88 | 38% | $504 | $395 | $109 | 28% |

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<u>Electric Utility Margin</u>

A comparison of key operating results related to electric utility margin is as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $1026 | $814 | $212 | 26% | $2436 | $2014 | $422 | 21% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 266 | 136 | 130 | 96 | 543 | 326 | 217 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $760 | $678 | $82 | 12% | $1893 | $1688 | $205 | 12% |
| **Sales (GWhs):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 2171 | 2010 | 161 | 8% | 5529 | 5207 | 322 | 6% |
| &nbsp;&nbsp;&nbsp;Commercial | 1108 | 1053 | 55 | 5 | 3098 | 2962 | 136 | 5 |
| &nbsp;&nbsp;&nbsp;Industrial | 5141 | 4471 | 670 | 15 | 14859 | 13144 | 1715 | 13 |
| &nbsp;&nbsp;&nbsp;Other | 455 | 441 | 14 | 3 | 1291 | 1250 | 41 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 8875 | 7975 | 900 | 11 | 24777 | 22563 | 2214 | 10 |
| &nbsp;&nbsp;&nbsp;Wholesale | 2293 | 2044 | 249 | 12 | 10229 | 9893 | 336 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total sales | 11168 | 10019 | 1149 | 11% | 35006 | 32456 | 2550 | 8% |
| **Average number of retail customers (in thousands)** | 839 | 830 | 9 | 1% | 837 | 828 | 9 | 1% |
| **Average revenue per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $100.79 | $92.02 | $8.77 | 10% | $83.65 | $79.71 | $3.94 | 5% |
| &nbsp;&nbsp;&nbsp;Wholesale | $45.58 | $25.09 | $20.49 | 82% | $27.82 | $13.44 | $14.38 | 107% |
| **Heating degree days** | 44 | 22 | 22 | 100% | 3636 | 3127 | 509 | 16% |
| **Cooling degree days** | 802 | 772 | 30 | 4% | 1156 | 1154 | 2 | —% |
| **Sources of energy (GWhs)**<sup>(1)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Wind, solar and hydroelectric<sup>(2)</sup> | 3785 | 4262 | (477) | (11)% | 18615 | 19243 | (628) | (3)% |
| &nbsp;&nbsp;&nbsp;Coal | 4073 | 3148 | 925 | 29 | 8632 | 6125 | 2507 | 41 |
| &nbsp;&nbsp;&nbsp;Nuclear | 998 | 999 | (1) |  | 2749 | 2860 | (111) | (4) |
| &nbsp;&nbsp;&nbsp;Natural gas | 838 | 845 | (7) | (1) | 1527 | 1766 | (239) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total energy generated | 9694 | 9254 | 440 | 5 | 31523 | 29994 | 1529 | 5 |
| &nbsp;&nbsp;&nbsp;Energy purchased | 1631 | 1014 | 617 | 61 | 3905 | 3005 | 900 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 11325 | 10268 | 1057 | 10% | 35428 | 32999 | 2429 | 7% |
| **Average cost of energy per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Energy generated<sup>(3)</sup> | $11.74 | $8.55 | $3.19 | 37% | $7.90 | $5.69 | $2.21 | 39% |
| &nbsp;&nbsp;&nbsp;Energy purchased | $93.34 | $56.34 | $37.00 | 66% | $75.27 | $51.76 | $23.51 | 45% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;GWh amounts are net of energy used by the related generating facilities.

(2)&nbsp;&nbsp;&nbsp;&nbsp;All or some of the renewable energy attributes associated with generation from these sources may be: (a) used in future years to comply with RPS or other regulatory requirements or (b) sold to third parties in the form of renewable energy credits or other environmental commodities.

(3)&nbsp;&nbsp;&nbsp;&nbsp;The average cost per MWh of energy generated includes only the cost of fuel associated with the generating facilities.

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<u>Natural Gas Utility Margin</u>

A comparison of key operating results related to natural gas utility margin is as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $100 | $91 | $9 | 10% | $561 | $462 | $99 | 21% |
| &nbsp;&nbsp;&nbsp;Natural gas purchased for resale | 43 | 37 | 6 | 16 | 345 | 254 | 91 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $57 | $54 | $3 | 6% | $216 | $208 | $8 | 4% |
| **Throughput (000's Dths):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 2635 | 2601 | 34 | 1% | 33743 | 29683 | 4060 | 14% |
| &nbsp;&nbsp;&nbsp;Commercial | 1547 | 1517 | 30 | 2 | 16474 | 14521 | 1953 | 13 |
| &nbsp;&nbsp;&nbsp;Industrial | 1314 | 853 | 461 | 54 | 4390 | 3607 | 783 | 22 |
| &nbsp;&nbsp;&nbsp;Other | 6 | 8 | (2) | (25) | 61 | 61 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail sales | 5502 | 4979 | 523 | 11 | 54668 | 47872 | 6796 | 14 |
| &nbsp;&nbsp;&nbsp;Wholesale sales | 3529 | 5044 | (1515) | (30) | 17902 | 22304 | (4402) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total sales | 9031 | 10023 | (992) | (10) | 72570 | 70176 | 2394 | 3 |
| &nbsp;&nbsp;&nbsp;Natural gas transportation service | 28149 | 26811 | 1338 | 5 | 83051 | 80407 | 2644 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total throughput | 37180 | 36834 | 346 | 1% | 155621 | 150583 | 5038 | 3% |
| **Average number of retail customers (in thousands)** | 803 | 798 | 5 | 1% | 804 | 798 | 6 | 1% |
| **Average revenue per retail Dth sold** | $14.28 | $14.16 | $0.12 | 1% | $8.53 | $8.10 | $0.43 | 5% |
| **Heating degree days** | 38 | 26 | 12 | 46% | 3775 | 3261 | 514 | 16% |
| **Average cost of natural gas per retail Dth sold** | $6.30 | $5.80 | $0.50 | 9% | $5.30 | $4.53 | $0.77 | 17% |
| **Combined retail and wholesale average cost of natural gas per Dth sold** | $4.88 | $3.74 | $1.14 | 30% | $4.77 | $3.62 | $1.15 | 32% |

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<u>Quarter Ended September 30, 2025, Compared to Quarter Ended September 30, 2024</u>

MidAmerican Energy -

*Electric utility margin* increased $82 million, or 12%, for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $76 million increase in retail utility margin primarily due to $60 million from higher customer usage, $17 million, net of energy costs, from higher recoveries through bill riders (partially offset in operations and maintenance expense and income tax benefit) and $6 million from the favorable impact of weather, partially offset by $4 million from lower wind-turbine performance settlements and $2 million due to price impacts from changes in sales mix. Retail customer volumes increased 11.3%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6 million increase in wholesale utility margin due to higher volumes of $7 million, or 12.2%, partially offset by lower margin per unit of $1 million, reflecting lower market prices.

*Natural gas utility margin* increased $3 million, or 6%, for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2 million increase from higher base rates.

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*Operations and maintenance* increased $11 million, or 5%, for the third quarter of 2025 compared to 2024 primarily due to higher electric distribution costs of $13 million and higher other power generation costs of $6 million, partially offset by lower administrative and other costs of $9 million.

*Depreciation and amortization* decreased $21 million, or 9%, for the third quarter of 2025 compared to 2024 primarily due to $36 million from lower Iowa revenue sharing accruals, partially offset by $8 million related to additional assets placed in-service and $5 million from a regulatory mechanism that provides customers the retail energy benefits of certain wind-powered generation projects.

*Property and other taxes* increased $5 million, or 13%, for the third quarter of 2025 compared to 2024 primarily due to $3 million from higher wind turbine property taxes and $2 million from higher replacement taxes.

*Interest expense* decreased $6 million, or 6%, for the third quarter of 2025 compared to 2024 primarily due to lower outstanding long-term debt balances.

*Allowance for borrowed and equity funds* increased $5 million, or 19%, for the third quarter of 2025 compared to 2024 primarily due to higher construction work-in-progress balances related to wind- and solar-powered generation projects.

*Other, net* decreased $3 million, or 12%, for the third quarter of 2025 compared to 2024 primarily due to $3 million from lower interest and dividend income, partially offset by $3 million from favorable investment earnings, largely attributable to higher cash surrender values of corporate-owned life insurance policies from favorable market performance.

*Income tax benefit* decreased $95 million, or 59%, for the third quarter of 2025 compared to 2024 primarily due to $51 million of lower PTCs, $34 million from higher pre-tax income and $8 million from a lower accelerated tax depreciation benefit. PTCs for the third quarter of 2025 and 2024 totaled $120 million and $168 million, respectively.

MidAmerican Funding -

*Income tax benefit* decreased $96 million, or 59%, for the third quarter of 2025 compared to 2024 primarily due to the changes in MidAmerican Energy's income tax benefit discussed above.

<u>First Nine Months of 2025 Compared to First Nine Months of 2024</u>

MidAmerican Energy -

*Electric utility margin* increased $205 million, or 12%, for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $120 million increase in retail utility margin primarily due to $113 million from higher customer usage, $12 million from the favorable impact of weather and $11 million, net of energy costs, from higher recoveries through bill riders (partially offset in operations and maintenance expense and income tax benefit), partially offset by $9 million from lower wind-turbine performance settlements and $6 million due to price impacts from changes in sales mix. Retail customer volumes increased 9.8%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $86 million increase in wholesale utility margin due to higher margin per unit of $78 million, reflecting higher market prices, and higher volumes of $8 million, or 3.4%.

*Natural gas utility margin* increased $8 million, or 4%, for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $7 million increase due to the favorable impact of weather; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1 million increase from higher natural gas transportation margin; partially offset by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3 million decrease from lower base rates.

*Operations and maintenance* increased $7 million, or 1%, for the first nine months of 2025 compared to 2024 primarily due to higher electric distribution costs of $21 million, higher steam power generation costs of $16 million, higher gas distribution costs of $9 million, higher transmission costs of $9 million, higher general plant maintenance costs of $4 million and higher other power generation costs of $4 million, partially offset by lower administrative, technology and other costs of $53 million and lower nuclear power generation costs of $7 million.

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*Depreciation and amortization* increased $86 million, or 13%, for the first nine months of 2025 compared to 2024 primarily due to $38 million from higher Iowa revenue sharing accruals, $25 million related to additional assets placed in-service and $22 million from a regulatory mechanism that provides customers the retail energy benefits of certain wind-powered generation projects.

*Property and other taxes* increased $9 million, or 7%, for the first nine months of 2025 compared to 2024 primarily due to $4 million from higher wind turbine property taxes, $3 million from higher replacement taxes and $2 million from higher real estate taxes.

*Interest expense* decreased $14 million, or 4%, for the first nine months of 2025 compared to 2024 primarily due to lower outstanding long-term debt balances.

*Allowance for borrowed and equity funds* increased $12 million, or 16%, for the first nine months of 2025 compared to 2024 primarily due to higher construction work-in-progress balances related to wind- and solar-powered generation projects.

*Other, net* decreased $19 million, or 28%, for the first nine months of 2025 compared to 2024 primarily due to $8 million from lower interest income and $8 million from unfavorable investment earnings, largely attributable to lower cash surrender values of corporate-owned life insurance policies from unfavorable market performance.

*Income tax benefit* decreased $113 million, or 19%, for the first nine months of 2025 compared to 2024 primarily due to $55 million of lower PTCs, $39 million from higher pre-tax income and $12 million from a lower accelerated tax depreciation benefit. PTCs for the first nine months of 2025 and 2024 totaled $547 million and $602 million, respectively.

MidAmerican Funding -

*Income tax benefit* decreased $113 million, or 19%, for the first nine months of 2025 compared to 2024 primarily due to the changes in MidAmerican Energy's income tax benefit discussed above.

**Liquidity and Capital Resources**

As of September 30, 2025, the total net liquidity for MidAmerican Energy and MidAmerican Funding was as follows (in millions):

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| | |
|:---|:---|
| **MidAmerican Energy:** | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $933 |
| &nbsp;&nbsp;Credit facilities, maturing 2026 and 2028 | 1505 |
| &nbsp;&nbsp;&nbsp;Less: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt bond support | (258) |
| &nbsp;&nbsp;&nbsp;Net credit facilities | 1247 |
| MidAmerican Energy total net liquidity | $2180 |
| **MidAmerican Funding:** |  |
| &nbsp;&nbsp;&nbsp;MidAmerican Energy total net liquidity | $2180 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 1 |
| &nbsp;&nbsp;MHC, Inc. credit facility, maturing 2026 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;MidAmerican Funding total net liquidity | $2185 |

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On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted, introducing substantial revisions to federal energy-related tax policy. Among its provisions, the OBBBA accelerates the phase-out of clean electricity production and investment tax credits and establishes new sourcing requirements applicable to facilities commencing construction after December 31, 2025. On July 7, 2025, a federal executive order (the "Executive Order") was issued directing the Secretary of the Treasury to promulgate new or revised guidance consistent with applicable law to ensure that policies concerning the "beginning of construction" requirements are not circumvented for wind and solar-powered generating facilities. In response, the U.S. Secretary of the Treasury issued partial guidance on September 2, 2025, through Notice 2025-42. While the guidance largely reaffirmed existing standards, it notably eliminated the five percent safe harbor method for establishing the beginning of construction for projects commencing construction on or after September 2, 2025. MidAmerican Energy is currently evaluating the potential implications of the OBBBA and Notice 2025-42 on its future financial results and will assess its impact on the viability and economics of prospective renewable energy, storage and technology neutral projects.

MidAmerican Energy's future financial performance and capital expenditures related to renewable energy, storage and technology neutral projects may be affected by the combined effects of the OBBBA, the Executive Order, and broader macroeconomic and geopolitical conditions, including changes in international trade policies and tariff regimes. The pace of change in these areas has accelerated during 2025, and significant uncertainty persists regarding the scope and duration of these external factors. Accordingly, MidAmerican Energy is unable to estimate their impact on its business at this time.

<u>Operating Activities</u>

MidAmerican Energy's net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024, were $1.5 billion and $1.4 billion, respectively. MidAmerican Funding's net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024, were $1.5 billion and $1.4 billion, respectively. Cash flows from operating activities reflect higher collections from electric and natural gas customers and lower payments to vendors, partially offset by higher payments related to fuel and energy costs, lower income tax receipts and higher property tax payments.

The timing of MidAmerican Energy's income tax cash flows from period to period can be significantly affected by the estimated federal income tax payment methods selected and assumptions made for each payment date.

<u>Investing Activities</u>

MidAmerican Energy's net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024, were $(1.2) billion and $(1.1) billion, respectively. MidAmerican Funding's net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024, were $(1.2) billion and $(1.1) billion, respectively. Net cash flows from investing activities consist almost entirely of capital expenditures. Refer to "Future Uses of Cash" for further discussion of capital expenditures. Purchases and proceeds related to marketable securities substantially consist of activity within the Quad Cities Generating Station nuclear decommissioning trust and other trust investments.

<u>Financing Activities</u>

MidAmerican Energy's net cash flows from financing activities for the nine-month periods ended September 30, 2025 and 2024 were $121 million and $163 million, respectively. MidAmerican Funding's net cash flows from financing activities for the nine-month periods ended September 30, 2025 and 2024, were $134 million and $176 million, respectively. In February 2024, MidAmerican Funding paid $425 million in cash distributions to its sole member, BHE. Proceeds from long-term debt reflect MidAmerican Energy's issuance in January 2024 of $600 million of its 5.30% First Mortgage Bonds due February 2055. In 2025 and 2024, MidAmerican Energy repaid $16 million and $2 million of long-term debt, respectively. In 2025 and 2024, MidAmerican Funding received $13 million through its note payable with BHE. In 2025, MidAmerican Energy received $138 million of refundable contributions in aid of construction.

*Debt Authorizations and Related Matters*

*Short-term Debt*

MidAmerican Energy has authority from the FERC to issue, through April 2, 2026, commercial paper and bank notes aggregating $1.5 billion. MidAmerican Energy has a $1.5 billion unsecured credit facility expiring in June 2028. The credit facility, which supports MidAmerican Energy's commercial paper program and its variable-rate tax-exempt bond obligations and provides for the issuance of letters of credit, has a variable interest rate based on the Secured Overnight Financing Rate, plus a spread that varies based on MidAmerican Energy's credit ratings for senior unsecured long-term debt securities. Additionally, MidAmerican Energy has a $5 million unsecured credit facility for general corporate purposes.

------

*Long-term Debt and Preferred Stock*

MidAmerican Energy currently has an effective shelf registration statement filed with the SEC to issue an indeterminate amount of long-term debt securities and preferred stock through October 2028. MidAmerican Energy has authorization from the FERC to issue, through June 30, 2027, long-term debt securities up to an aggregate of $2.5 billion and preferred stock up to an aggregate of $500 million. MidAmerican Energy has authorization from the Illinois Commerce Commission through April 24, 2028, to issue long-term debt securities up to an aggregate of $3.15 billion and preferred stock up to an aggregate of $500 million.

<u>Future Uses of Cash</u>

MidAmerican Energy and MidAmerican Funding have available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, the issuance of commercial paper, the use of unsecured revolving credit facilities and other sources. These sources are expected to provide funds required for current operations, capital expenditures, debt retirements and other capital requirements. The availability and terms under which MidAmerican Energy and MidAmerican Funding have access to external financing depends on a variety of factors, including their credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the utility industry.

*Capital Expenditures*

MidAmerican Energy has significant future capital requirements. Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, impacts to customer rates; changes in environmental and other rules and regulations; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; load projections; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital.

MidAmerican Energy's historical and forecast capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items, are as follows (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| Wind generation | $341 | $428 | $667 |
| Electric distribution | 239 | 249 | 340 |
| Electric transmission | 170 | 154 | 227 |
| Solar generation | 1 | 9 | 13 |
| Other | 349 | 370 | 545 |
| &nbsp;&nbsp;&nbsp;Total | $1100 | $1210 | $1792 |

---

MidAmerican Energy's capital expenditures provided above consist of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wind generation includes the construction, acquisition, repowering and operation of wind-powered generating facilities in Iowa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Construction of wind-powered generating facilities totaling $182 million and $143 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the construction of additional wind-powered generating facilities totals $38 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Repowering of wind-powered generating facilities totaling $198 million and $169 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending for the repowering of wind-powered generating facilities totals $186 million for the remainder of 2025. MidAmerican Energy expects its repowered facilities to meet Internal Revenue Service guidelines for the re-establishment of PTCs under the prevailing wage and apprenticeship guidelines for 10 years from the date the facilities are placed in-service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric distribution includes expenditures for new facilities to meet retail demand growth and for replacement of existing facilities to maintain system reliability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric transmission includes expenditures to meet retail demand growth, upgrades to accommodate third-party generator requirements and replacement of existing facilities to maintain system reliability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Solar generation includes the construction and operation of solar-powered generating facilities totaling $9 million and $1 million for the nine-month periods ended September 30, 2025 and 2024, respectively. Planned spending totals $4 million for the remainder of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Remaining expenditures primarily relate to routine projects for other generation, natural gas distribution, technology, facilities and other operational needs to serve existing and expected demand.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes in MidAmerican Energy's and MidAmerican Funding's cash requirements from the information provided in Item 7 of their Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Note 9 of the Notes to Financial Statements in Part I, Item 1 of this Form 10-Q.

**Regulatory Matters**

MidAmerican Energy is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding MidAmerican Energy's current regulatory matters.

**Environmental Laws and Regulations**

MidAmerican Energy is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact MidAmerican Energy's current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. MidAmerican Energy believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and MidAmerican Energy is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of goodwill, pension and other postretirement benefits and income taxes. For additional discussion of MidAmerican Energy's and MidAmerican Funding's critical accounting estimates, see Item 7 of their Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in MidAmerican Energy's and MidAmerican Funding's assumptions regarding critical accounting estimates since December 31, 2024.

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**Nevada Power Company and its subsidiaries** 

**Consolidated Financial Section**

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**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholder of

Nevada Power Company

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of Nevada Power Company and subsidiaries ("Nevada Power") as of September 30, 2025, the related consolidated statements of operations, and changes in shareholder's equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of Nevada Power as of December 31, 2024, and the related consolidated statements of operations, changes in shareholder's equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of Nevada Power's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Nevada Power in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Las Vegas, Nevada

October 31, 2025

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**NEVADA POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions, except share data)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $31 | $23 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 369 | 314 |
| &nbsp;&nbsp;&nbsp;Inventories | 225 | 190 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 167 | 124 |
| &nbsp;&nbsp;&nbsp;Prepayments | 77 | 67 |
| &nbsp;&nbsp;Income taxes receivable |  | 77 |
| &nbsp;&nbsp;&nbsp;Other current assets | 20 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 889 | 818 |
| Property, plant and equipment, net | 10104 | 9401 |
| Regulatory assets | 405 | 459 |
| Other assets | 381 | 400 |
| **Total assets** | $11779 | $11078 |
| **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $538 | $343 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 45 | 46 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 41 | 34 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 46 | 41 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 56 | 93 |
| &nbsp;&nbsp;&nbsp;Derivative contracts | 27 | 53 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 102 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 855 | 660 |
| Senior debt  | 3397 | 3395 |
| Junior subordinated debt | 297 |  |
| Finance lease obligations | 250 | 266 |
| Regulatory liabilities | 956 | 997 |
| Deferred income taxes | 826 | 802 |
| Other long-term liabilities | 518 | 510 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 7099 | 6630 |
| Commitments and contingencies (Note 10) |  |  |
| **Shareholder's equity:** |  |  |
| &nbsp;&nbsp;Common stock - $1.00 stated value; 1,000 shares authorized, issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 3123 | 2943 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 1558 | 1506 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholder's equity | 4680 | 4448 |
| **Total liabilities and shareholder's equity** | $11779 | $11078 |
| The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. |

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**NEVADA POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue** | $865 | $993 | $1893 | $2355 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 419 | 513 | 932 | 1336 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 97 | 90 | 265 | 237 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 103 | 95 | 300 | 279 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 14 | 15 | 43 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 633 | 713 | 1540 | 1896 |
| **Operating income** | 232 | 280 | 353 | 459 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (56) | (51) | (167) | (156) |
| &nbsp;&nbsp;&nbsp;Capitalized interest | 5 | 2 | 15 | 16 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 10 | 5 | 30 | 22 |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 3 | 5 | 9 | 20 |
| &nbsp;&nbsp;&nbsp;Other, net | 5 | 5 | 13 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (33) | (34) | (100) | (84) |
| **Income before income tax expense (benefit)** | 199 | 246 | 253 | 375 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 11 | 35 | 16 | 52 |
| **Net income** | $188 | $211 | $237 | $323 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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**NEVADA POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited)**

(Amounts in millions, except shares)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br>**Total**<br>**Shareholder's**<br>**Equity** |
| **Balance, June 30, 2024** | 1000 | $— | $2833 | $1344 | $(1) | $4176 |
| Net income |  |  |  | 211 |  | 211 |
| Dividends declared |  |  |  | (30) |  | (30) |
| **Balance, September 30, 2024** | 1000 | $— | $2833 | $1525 | $(1) | $4357 |
| **Balance, December 31, 2023** | 1000 | $— | $2733 | $1232 | $(1) | $3964 |
| Net income |  |  |  | 323 |  | 323 |
| Dividends declared |  |  |  | (30) |  | (30) |
| Contributions |  |  | 100 |  |  | 100 |
| **Balance, September 30, 2024** | 1000 | $— | $2833 | $1525 | $(1) | $4357 |
| **Balance, June 30, 2025** | 1000 | $— | $3023 | $1370 | $(1) | $4392 |
| Net income |  |  |  | 188 |  | 188 |
| Contributions |  |  | 100 |  |  | 100 |
| **Balance, September 30, 2025** | 1000 | $— | $3123 | $1558 | $(1) | $4680 |
| **Balance, December 31, 2024** | 1000 | $— | $2943 | $1506 | $(1) | $4448 |
| Net income |  |  |  | 237 |  | 237 |
| Dividends declared |  |  |  | (185) |  | (185) |
| Contributions |  |  | 180 |  |  | 180 |
| **Balance, September 30, 2025** | 1000 | $— | $3123 | $1558 | $(1) | $4680 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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**NEVADA POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

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| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;Net income | $237 | $323 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 300 | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (30) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred energy | (97) | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred energy | 51 | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other changes in regulatory assets and liabilities | (3) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and amortization of investment tax credits | (4) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | (28) | (107) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (36) | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 79 | (63) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 173 | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 641 | 804 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (912) | (842) |
| &nbsp;&nbsp;Proceeds from sale of marketable securities |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (912) | (838) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Proceeds from long-term debt | 297 |  |
| &nbsp;&nbsp;&nbsp;Contributions from parent | 180 | 100 |
| &nbsp;&nbsp;&nbsp;Dividends paid | (185) | (30) |
| &nbsp;&nbsp;&nbsp;Other, net | (20) | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 272 | 54 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 1 | 20 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 42 | 37 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $43 | $57 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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**NEVADA POWER COMPANY AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General**

Nevada Power Company, together with its subsidiaries ("Nevada Power"), is a wholly owned subsidiary of NV Energy, Inc. ("NV Energy"), a holding company that also owns Sierra Pacific Power Company and its subsidiaries ("Sierra Pacific") and certain other subsidiaries. Nevada Power is a U.S. regulated electric utility company serving retail customers, including residential, commercial and industrial customers, primarily in the Las Vegas, North Las Vegas, Henderson and adjoining areas. NV Energy is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company headquartered in Iowa that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The Consolidated Statements of Comprehensive Income have been omitted as net income equals comprehensive income for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in Nevada Power's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in Nevada Power's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

*Segment Information*

Nevada Power currently has one reportable segment, its regulated electric utility operations, which derives its revenue from regulated retail sales of electricity to residential, commercial, and industrial customers and from wholesale sales. Nevada Power's chief operating decision maker ("CODM") is its President and Chief Executive Officer. The CODM uses net income, as reported on the Consolidated Statements of Operations, and generally considers actual results versus historical results, budgets or forecasts, and state regulatory ratemaking results as well as unique risks and opportunities, when making decisions about the allocation of resources and capital. The significant segment expenses regularly provided to the CODM align with the captions presented on the Consolidated Statements of Operations. Nevada Power's segment capital expenditures are reported on the Consolidated Statements of Cash Flows as capital expenditures. Nevada Power's segment assets are reported on the Consolidated Balance Sheets as total assets.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Nevada Power is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

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In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Nevada Power is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

**(3)**&nbsp;&nbsp;&nbsp;&nbsp;**Cash and Cash Equivalents and Restricted Cash and Cash Equivalents** 

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist of funds restricted by the Public Utilities Commission of Nevada ("PUCN") for a certain renewable energy contract. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $31 | $23 |
| Restricted cash and cash equivalents included in other current assets | 12 | 19 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $43 | $42 |

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**(4)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net**

Property, plant and equipment, net consists of the following (in millions):

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| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| | **Depreciable Life** | | |
| | **Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Utility plant:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Generation | 30 - 65 years | $5483 | $5369 |
| &nbsp;&nbsp;&nbsp;Transmission | 55 - 75 years | 1778 | 1660 |
| &nbsp;&nbsp;&nbsp;Distribution | 24 - 70 years | 4942 | 4754 |
| &nbsp;&nbsp;Intangible plant and other | 5 - 65 years | 926 | 900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant |  | 13129 | 12683 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (4292) | (4093) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant, net |  | 8837 | 8590 |
| Nonregulated, net of accumulated depreciation and amortization | 40 years | 1 | 1 |
|  |  | 8838 | 8591 |
| Construction work-in-progress |  | 1266 | 810 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $10104 | $9401 |

---

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**(5)&nbsp;&nbsp;&nbsp;&nbsp;Recent Financing Transactions**

*Junior Subordinated Debt*

In February 2025, Nevada Power issued $300 million of its 6.25% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due May 2055. Nevada Power will pay interest on the notes at a rate of 6.25% through May 2030, subject to a reset every five years. Nevada Power intends to use the net proceeds from the sale of the notes to fund capital expenditures and for general corporate purposes.

*Credit Facilities*

In June 2025, Nevada Power amended its existing $600 million secured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

**(6**)&nbsp;&nbsp;&nbsp;&nbsp;**Income Taxes** 

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| Effects of ratemaking<sup>(1)</sup> | (9) | (4) | (8) | (4) |
| Income tax credits | (6) | (3) | (7) | (4) |
| Other |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | 6% | 14% | 6% | 14% |

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(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Income tax credits relate to production tax credits ("PTCs") and investment tax credits ("ITCs") from Nevada Power's solar-powered generating facilities and energy storage properties. Federal renewable electricity PTCs are earned as energy from qualifying solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. Federal renewable electricity ITCs are tax credits that reduce the income tax liability by a percentage of the cost from certain qualifying solar-powered generating facilities or energy storage properties over their useful lives. The percentage of the credit varies depending on attributes of the project up to a maximum of 50 percent.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Nevada Power's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. Nevada Power received cash refunds for federal income tax from BHE of $59 million for the nine-month periods ended September 30, 2025. Nevada Power made cash payments for federal income tax to BHE of $112 million for the nine-month periods ended September 30, 2024.

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**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

Nevada Power is a participant in benefit plans sponsored by NV Energy. The NV Energy Retirement Plan includes a qualified pension plan ("Qualified Pension Plan") and a supplemental executive retirement plan and a restoration plan (collectively, "Non-Qualified Pension Plans") that provide pension benefits for eligible employees. The NV Energy Comprehensive Welfare Benefit and Cafeteria Plan provides certain postretirement health care and life insurance benefits for eligible retirees ("Other Postretirement Plans") on behalf of Nevada Power. Nevada Power contributed $1 million to the Non-Qualified Pension Plans for the nine-month period ended September 30, 2025. Amounts attributable to Nevada Power were allocated from NV Energy based upon the current, or in the case of retirees, previous, employment location. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net.

Amounts receivable from (payable to) NV Energy are included on the Consolidated Balance Sheets and consist of the following (in millions):

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Qualified Pension Plan:**  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | $38 | $39 |
| **Non-Qualified Pension Plans:** |  |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | (1) | (1) |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | (6) | (6) |
| **Other Postretirement Plans:**  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 17 | 19 |

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 **(8)**&nbsp;&nbsp;&nbsp;&nbsp;**Risk Management and Hedging Activities**

Nevada Power is exposed to the impact of market fluctuations in commodity prices and interest rates. Nevada Power is principally exposed to electricity and natural gas market fluctuations primarily through Nevada Power's obligation to serve retail customer load in its regulated service territory. Nevada Power's load and generating facilities represent substantial underlying commodity positions. Exposures to commodity prices consist mainly of variations in the price of fuel required to generate electricity and wholesale electricity that is purchased and sold. Commodity prices are subject to wide price swings as supply and demand are impacted by, among many other unpredictable items, weather, market liquidity, generating facility availability, customer usage, storage, and transmission and transportation constraints. The actual cost of fuel and purchased power is recoverable through the deferred energy mechanism. Interest rate risk exists on variable-rate debt and future debt issuances. Nevada Power does not engage in proprietary trading activities.

Nevada Power has established a risk management process that is designed to identify, assess, manage and report on each of the various types of risk involved in its business. To mitigate a portion of its commodity price risk, Nevada Power uses commodity derivative contracts, which may include forwards, futures, options, swaps and other agreements, to effectively secure future supply or sell future production generally at fixed prices. Nevada Power manages its interest rate risk by limiting its exposure to variable interest rates primarily through the issuance of fixed-rate long-term debt and by monitoring market changes in interest rates. Additionally, Nevada Power may from time to time enter into interest rate derivative contracts, such as interest rate swaps or locks, to mitigate Nevada Power's exposure to interest rate risk. Nevada Power does not hedge all of its commodity price and interest rate risks, thereby exposing the unhedged portion to changes in market prices. There have been no significant changes in Nevada Power's accounting policies related to derivatives. Refer to Note 9 for additional information related to the fair value measurements associated with derivative contracts.

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The following table, which excludes contracts that have been designated as normal under the normal purchases and normal sales exception afforded by GAAP, summarizes the fair value of Nevada Power's derivative contracts, on a gross basis, and reconciles those amounts presented on a net basis on the Consolidated Balance Sheets (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| |<br>**Other**<br>**Current**<br>**Assets** | **Derivative**<br>**Contracts -**<br>**Current**<br>**Liabilities** |<br>**Other**<br>**Long-term**<br>**Liabilities** |<br><br>**Total** |
| **<u>As of September 30, 2025</u>** | | | | |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities | $— | $(27) | $(5) | $(32) |
| **<u>As of December 31, 2024</u>** |  |  |  |  |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities | $— | $(53) | $(4) | $(57) |

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(1)Nevada Power's commodity derivatives not designated as hedging contracts are included in regulated rates. As of September 30, 2025, a regulatory asset of $32 million was recorded related to the net derivative liability of $32 million. As of December 31, 2024, a regulatory asset of $57 million was recorded related to the net derivative liability of $57 million.

*Derivative Contract Volumes*

The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Unit of**<br>**Measure** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Electricity purchases | Megawatt hours | 2 | 2 |
| Natural gas purchases | Decatherms | 162 | 127 |

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*Credit Risk*

Nevada Power is exposed to counterparty credit risk associated with wholesale energy supply and marketing activities with other utilities, energy marketing companies, financial institutions and other market participants. Credit risk may be concentrated to the extent Nevada Power's counterparties have similar economic, industry or other characteristics and due to direct and indirect relationships among the counterparties. Before entering into a transaction, Nevada Power analyzes the financial condition of each significant wholesale counterparty, establishes limits on the amount of unsecured credit to be extended to each counterparty and evaluates the appropriateness of unsecured credit limits on an ongoing basis. To further mitigate wholesale counterparty credit risk, Nevada Power enters into netting and collateral arrangements that may include margining and cross-product netting agreements and obtain third-party guarantees, letters of credit and cash deposits. If required, Nevada Power exercises rights under these arrangements, including calling on the counterparty's credit support arrangement.

*Collateral and Contingent Features*

In accordance with industry practice, certain wholesale agreements, including derivative contracts, contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the recognized credit rating agencies. These agreements may either specifically provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features") or provide the right for counterparties to demand "adequate assurance" if there is a material adverse change in Nevada Power's creditworthiness. These rights can vary by contract and by counterparty. As of September 30, 2025, Nevada Power's credit ratings for its senior secured debt and its issuer credit ratings for senior unsecured debt from the recognized credit rating agencies were investment grade.

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The aggregate fair value of Nevada Power's derivative contracts in liability positions with specific credit-risk-related contingent features totaled $7 million and $13 million as of September 30, 2025, and December 31, 2024, respectively, which represents the amount of collateral to be posted if all credit risk related contingent features for derivative contracts in liability positions had been triggered. Nevada Power's collateral requirements could fluctuate considerably due to market price volatility, changes in credit ratings, changes in legislation or regulation or other factors.

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

The carrying value of Nevada Power's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. Nevada Power has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that Nevada Power has the ability to access at the measurement date.

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

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

The following table presents Nevada Power's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | |
| **Assets:** | | | | |
| Money market mutual funds | $37 | $— | $— | $37 |
| Investment funds | 5 |  |  | 5 |
|  | $42 | $— | $— | $42 |
| **Liabilities:** |  |  |  |  |
| Commodity derivatives | $— | $— | $(32) | $(32) |
| **<u>As of December 31, 2024:</u>** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Money market mutual funds | $15 | $— | $— | $15 |
| Investment funds | 4 |  |  | 4 |
|  | $19 | $— | $— | $19 |
| **Liabilities:** |  |  |  |  |
| Commodity derivatives | $— | $— | $(57) | $(57) |

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Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which Nevada Power transacts. When quoted prices for identical contracts are not available, Nevada Power uses forward price curves. Forward price curves represent Nevada Power's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. Nevada Power bases its forward price curves upon internally developed models, with internal and external fundamental data inputs. Market price quotations for certain electricity and natural gas trading hubs are not as readily obtainable due to markets that are not active. Given that limited market data exists for these contracts, Nevada Power uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The model incorporates a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical expedient for valuing its assets and liabilities measured and reported at fair value. The determination of the fair value for derivative contracts not only includes counterparty risk, but also the impact of Nevada Power's nonperformance risk on its liabilities, which as of September 30, 2025, and December 31, 2024, had an immaterial impact to the fair value of its derivative contracts. As such, Nevada Power considers its derivative contracts to be valued using Level 3 inputs.

Nevada Power's investments in money market mutual funds and investment funds are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value.

The following table reconciles the beginning and ending balances of Nevada Power's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $(78) | $(101) | $(57) | $(68) |
| Changes in fair value recognized in regulatory assets | (25) | (29) | (57) | (87) |
| Settlements | 71 | 74 | 82 | 99 |
| **Ending balance** | $(32) | $(56) | $(32) | $(56) |

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Nevada Power's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of Nevada Power's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The following table presents the carrying value and estimated fair value of Nevada Power's debts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
| Long-term debt | $3694 | $3715 | $3395 | $3299 |

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**(10)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Environmental Laws and Regulations*

Nevada Power is subject to federal, state and local laws and regulations regarding climate change, renewable portfolio standards, air and water quality, emissions performance standards, coal combustion byproduct disposal, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact Nevada Power's current and future operations. Nevada Power believes it is in material compliance with all applicable laws and regulations.

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*Accrual for Customer Refund*

In September 2025, Nevada Power recorded an additional $12 million accrual totaling $29 million in connection with a potential customer refund arising from ongoing regulatory proceedings. The estimated accrual is based on currently available information to date and Nevada Power believes it is probable that losses will be incurred associated with the ongoing regulatory proceedings which reflects Nevada Power's commitment to transparency and regulatory compliance. Nevada Power will continue to assess the matter and final determination of the liability will be made after the completion of the regulatory proceedings and the accrued liability will be updated as warranted.

*Legal Matters*

Nevada Power is party to a variety of legal actions arising out of the normal course of business. Nevada Power does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.

**(11)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers** 

The following table summarizes Nevada Power's revenue from contracts with customers ("Customer Revenue") by line of business, with further disaggregation of retail by customer class (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Customer Revenue: |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $481 | $610 | $1012 | $1326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 158 | 162 | 384 | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 199 | 193 | 429 | 496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2 | 3 | 3 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fully bundled | 840 | 968 | 1828 | 2287 |
| &nbsp;&nbsp;Distribution only service | 4 | 3 | 12 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 844 | 971 | 1840 | 2298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale, transmission and other | 21 | 21 | 52 | 54 |
| Total Customer Revenue | 865 | 992 | 1892 | 2352 |
| Other revenue |  | 1 | 1 | 3 |
| Total operating revenue | $865 | $993 | $1893 | $2355 |

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations** 

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of Nevada Power during the periods included herein. Explanations include management's best estimate of the impact of weather, customer growth, usage trends and other factors. This discussion should be read in conjunction with Nevada Power's historical unaudited Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. Nevada Power's actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024**

<u>Overview</u>

Net income for the third quarter of 2025 was $188 million, a decrease of $23 million compared to 2024 primarily due to lower electric utility margin, higher operations and maintenance expense, increased depreciation and amortization expense, higher interest expense and lower interest and dividend income. These items were partially offset by favorable income tax expense and higher capitalized interest and allowance for equity funds. Utility margin decreased primarily due to unfavorable price impacts from changes in sales mix, an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings and lower transmission and wholesale revenue, partially offset by higher energy efficiency implementation revenue. Retail customer volumes, including distribution only service customers, decreased 6.2% primarily due to the unfavorable impact of weather and customer usage patterns, offset by an increase in the average number of customers. Energy generated volumes decreased 11% for the third quarter of 2025 compared to 2024 primarily due to lower natural gas-fueled generation. Wholesale electricity sales volumes decreased 7% and energy purchased volumes decreased 3%.

Net income for the first nine months of 2025 was $237 million, a decrease of $86 million compared to 2024 primarily due to lower electric utility margin, higher operations and maintenance expense, increased depreciation and amortization expense, lower interest and dividend income and higher interest expense. These items were partially offset by favorable income tax expense and higher allowance for equity funds. Utility margin decreased primarily due to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings, unfavorable price impacts from changes in sales mix, an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings, lower transmission and wholesale revenue and lower energy efficiency implementation revenue, partially offset by higher power purchase agreement sales from the Dry Lake renewable generation facility. Retail customer volumes, including distribution only service customers, decreased 2.9% primarily due to the unfavorable impact of weather and customer usage patterns, offset by an increase in the average number of customers. Energy generated volumes decreased 4% for the first nine months of 2025 compared to 2024 primarily due to lower natural gas-fueled and renewable generation. Wholesale electricity sales volumes decreased 19% and energy purchased volumes increased 1%.

<u>Non-GAAP Financial Measure</u>

Management utilizes various key financial measures that are prepared in accordance with GAAP, as well as non-GAAP financial measures such as, utility margin, to help evaluate results of operations. Utility margin is calculated as electric operating revenue less cost of fuel and energy, which are captions presented on the Consolidated Statements of Operations.

Nevada Power's cost of fuel and energy is generally recovered from its retail customers through regulatory recovery mechanisms and as a result, changes in Nevada Power's expenses included in regulatory recovery mechanisms result in comparable changes to revenue. As such, management believes utility margin more appropriately and concisely explains results of operations rather than a discussion of revenue and cost of fuel and energy separately. Management believes the presentation of utility margin provides meaningful and valuable insight into the information management considers important to understanding the business and a measure of comparability to others in the industry.

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Utility margin is not a measure calculated in accordance with GAAP and should be viewed as a supplement to, and not a substitute for, operating income which is the most directly comparable financial measure prepared in accordance with GAAP. The following table provides a reconciliation of utility margin to operating income (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $865 | $993 | $(128) | (13)% | $1893 | $2355 | $(462) | (20)% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 419 | 513 | (94) | (18) | 932 | 1336 | (404) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Utility margin** | 446 | 480 | (34) | (7) | 961 | 1019 | (58) | (6) |
| Operations and maintenance | 97 | 90 | 7 | 8 | 265 | 237 | 28 | 12 |
| Depreciation and amortization | 103 | 95 | 8 | 8 | 300 | 279 | 21 | 8 |
| Property and other taxes | 14 | 15 | (1) | (7) | 43 | 44 | (1) | (2) |
| **Operating income** | $232 | $280 | $(48) | (17)% | $353 | $459 | $(106) | (23)% |

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<u>Utility Margin</u>

A comparison of key operating results related to utility margin is as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $865 | $993 | $(128) | (13)% | $1893 | $2355 | $(462) | (20)% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 419 | 513 | (94) | (18) | 932 | 1336 | (404) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $446 | $480 | $(34) | (7)% | $961 | $1019 | $(58) | (6)% |
| **Sales (GWhs):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 4002 | 4438 | (436) | (10)% | 8164 | 8678 | (514) | (6)% |
| &nbsp;&nbsp;&nbsp;Commercial | 1508 | 1649 | (141) | (9) | 3823 | 3951 | (128) | (3) |
| &nbsp;&nbsp;&nbsp;Industrial | 1897 | 1888 | 9 |  | 4912 | 4844 | 68 | 1 |
| &nbsp;&nbsp;&nbsp;Other | 50 | 50 |  |  | 131 | 135 | (4) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fully bundled<sup>(1)</sup> | 7457 | 8025 | (568) | (7) | 17030 | 17608 | (578) | (3) |
| &nbsp;&nbsp;&nbsp;Distribution only service | 844 | 820 | 24 | 3 | 2202 | 2192 | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 8301 | 8845 | (544) | (6) | 19232 | 19800 | (568) | (3) |
| &nbsp;&nbsp;&nbsp;Wholesale | 119 | 128 | (9) | (7) | 349 | 429 | (80) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total GWhs sold | 8420 | 8973 | (553) | (6)% | 19581 | 20229 | (648) | (3)% |
| **Average number of retail customers (in thousands)** | 1056 | 1040 | 16 | 2% | 1051 | 1032 | 19 | 2% |
| **Average revenue per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail - fully bundled<sup>(1)</sup> | $112.56 | $120.51 | $(7.95) | (7)% | $107.31 | $129.87 | $(22.56) | (17)% |
| &nbsp;&nbsp;&nbsp;Wholesale | $48.59 | $35.78 | $12.81 | 36% | $42.56 | $29.89 | $12.67 | 42% |
| **Heating degree days** |  |  |  | —% | 973 | 1111 | (138) | (12)% |
| **Cooling degree days** | 2315 | 2647 | (332) | (13)% | 3764 | 4170 | (406) | (10)% |
| **Sources of energy (GWhs)**<sup>(2)(3)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Natural gas | 4157 | 4705 | (548) | (12)% | 11135 | 11592 | (457) | (4)% |
| &nbsp;&nbsp;&nbsp;Renewables | 125 | 127 | (2) | (2) | 351 | 329 | 22 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total energy generated | 4282 | 4832 | (550) | (11) | 11486 | 11921 | (435) | (4) |
| &nbsp;&nbsp;&nbsp;Energy purchased | 3248 | 3356 | (108) | (3) | 6742 | 6679 | 63 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 7530 | 8188 | (658) | (8)% | 18228 | 18600 | (372) | (2)% |
| **Average cost of energy per MWh**<sup>(2)(4)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy generated | $25.25 | $18.76 | $6.49 | 35% | $28.15 | $36.35 | $(8.20) | (23)% |
| &nbsp;&nbsp;&nbsp;Energy purchased | $95.84 | $126.11 | $(30.27) | (24)% | $90.28 | $135.21 | $(44.93) | (33)% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Fully bundled includes sales to customers for combined energy, transmission and distribution services.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The average cost of energy per MWh and sources of energy excludes 149 GWhs and 62 GWhs of gas generated energy that is purchased at cost by related parties for the third quarter of 2025 and 2024, respectively. The average cost of energy per MWh and sources of energy excludes 303 GWhs and 343 GWhs of gas generated energy that is purchased at cost by related parties for the first nine months of 2025 and 2024, respectively.

(3)&nbsp;&nbsp;&nbsp;&nbsp;GWh amounts are net of energy used by the related generating facilities.

(4)&nbsp;&nbsp;&nbsp;&nbsp;The average cost of energy per MWh includes only the cost of fuel associated with the generating facilities, purchased power and deferrals.

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<u>Quarter Ended September 30, 2025, Compared to Quarter Ended September 30, 2024</u>

*Utility margin* decreased $34 million, or 7%, for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $24 million of lower electric retail utility margin primarily due to price impacts from changes in sales mix. Retail customer volumes, including distribution only service customers, decreased 6.2% primarily due to unfavorable changes in weather and customer usage patterns, offset by an increase in the average number of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $12 million of lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1 million of lower transmission and wholesale revenue.

The decrease in utility margin was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2 million of higher energy efficiency implementation revenue and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1 million of higher energy efficiency program revenue (offset in operations and maintenance expense).

*Operations and maintenance* increased $7 million, or 8%, for the third quarter of 2025 compared to 2024 primarily due to regulatory impacts from the 2025 regulatory rate review, higher administrative and general costs and increased technology costs, partially offset by lower energy efficiency program costs (offset in operating revenue) and lower plant operations and maintenance costs.

*Depreciation and amortization* increased $8 million, or 8%, for the third quarter of 2025 compared to 2024 primarily due to higher plant placed in-service and higher amortizations from intangible plant software.

*Interest expense* increased $5 million, or 10%, for the third quarter of 2025 compared to 2024 primarily due to higher long-term debt outstanding.

*Capitalized interest and allowance for equity funds* increased $8 million, or 114%, for the third quarter of 2025 compared to 2024 primarily due to higher construction work-in-progress.

*Interest and dividend income* decreased $2 million, or 40%, for the third quarter of 2025 compared to 2024 primarily due to lower interest income, mainly from lower carrying charges on regulatory balances.

*Income tax expense* decreased $24 million, or 69%, for the third quarter of 2025 compared to 2024 primarily due to lower pretax income and higher federal income tax credits, partially offset by the effects of ratemaking. The effective tax rate was 6% in 2025 and 14% in 2024 and decreased primarily due to the effects of ratemaking and higher tax credits.

<u>First Nine Months of 2025 Compared to First Nine Months of 2024</u>

*Utility margin* decreased $58 million, or 6%, for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $33 million of lower electric retail utility margin primarily due to price impacts from changes in sales mix. Retail customer volumes, including distribution only service customers, decreased 2.9% primarily due to unfavorable changes in weather and customer usage patterns, offset by an increase in the average number of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $29 million of lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4 million of lower transmission and wholesale revenue and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2 million of lower energy efficiency implementation revenue.

The decrease in utility margin was offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $5 million of higher power purchase agreement sales from the Dry Lake renewable generation facility and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6 million of increased energy efficiency program revenue (offset in operations and maintenance expense).

------

*Operations and maintenance* increased by $28 million for the first nine months of 2025 compared to 2024 primarily due to increased technology costs, higher plant operations and maintenance costs, higher customer service costs, regulatory impacts from the 2025 regulatory rate review and higher insurance expense due to higher premiums associated with third-party liability coverage, partially offset by lower administrative and general costs and lower energy efficiency program costs (offset in revenue).

*Depreciation and amortization* increased $21 million, or 8%, for the first nine months of 2025 compared to 2024 primarily due to higher plant placed in-service.

*Interest expense* increased $11 million, or 7%, for the first nine months of 2025 compared to 2024 primarily due to higher long-term debt.

*Capitalized interest and allowance for equity funds* increased $7 million, or 18%, for the first nine months of 2025 compared to 2024 primarily due to higher construction work-in-progress.

*Interest and dividend income* decreased $11 million, or 55%, for the first nine months of 2025 compared to 2024 primarily due to unfavorable interest income, mainly from lower carrying charges on regulatory balances.

*Income tax expense* decreased $36 million, or 69%, for the first nine months of 2025 compared to 2024 primarily due to lower pretax income and higher federal income tax credits, partially offset by the effects of ratemaking. The effective tax rate was 6% in 2025 and 14% in 2024 and decreased primarily due to the effects of ratemaking and higher federal tax credits.

**Liquidity and Capital Resources**

As of September 30, 2025, Nevada Power's total net liquidity was as follows (in millions):

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| | |
|:---|:---|
| Cash and cash equivalents | $31 |
| Credit facility | 600 |
| Total net liquidity | $631 |
| Credit facility: |  |
| &nbsp;&nbsp;&nbsp;Maturity date | 2028 |

---

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024, were $641 million and $804 million, respectively. The change was primarily due to higher payments related to fuel and energy costs and higher interest payments, partially offset by lower income tax payments, the timing of payments for operating costs and higher customer deposits.

The timing of Nevada Power's income tax cash flows from period to period can be significantly affected by the estimated federal income tax payment methods and assumptions made for each payment date.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024, were $(912) million and $(838) million, respectively. The change was primarily due to increased capital expenditures. Refer to "Future Uses of Cash" for further discussion of capital expenditures.

<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month periods ended September 30, 2025 and 2024, were $272 million and $54 million, respectively. The change was primarily due to higher net proceeds from the issuance of junior subordinated debt and higher contributions from NV Energy, Inc., partially offset by higher dividends paid to NV Energy, Inc.

For a discussion of recent financing transactions, refer to Note 5 of Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

------

*Debt Authorizations*

Nevada Power currently has financing authority from the PUCN consisting of the ability to: (1) establish debt issuances limited to a debt ceiling of $5.5 billion (excluding borrowings under Nevada Power's $600 million secured credit facility); and (2) maintain a revolving credit facility of up to $1.3 billion. Nevada Power currently has an effective shelf registration statement filed with the SEC to issue an additional $1.8 billion of general and refunding mortgage securities and unsecured debt securities through December 2027.

<u>Future Uses of Cash</u>

Nevada Power has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, the use of its secured revolving credit facility, capital contributions and other sources. These sources are expected to provide funds required for current operations, capital expenditures, debt retirements and other capital requirements. The availability and terms under which Nevada Power has access to external financing depends on a variety of factors, including regulatory approvals, Nevada Power's credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the utility industry.

*Capital Expenditures*

Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, changes in environmental and other rules and regulations; impacts to customer rates; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; load projections; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital. Prudently incurred expenditures for compliance-related items such as pollution control technologies, replacement generation and associated operating costs are generally incorporated into Nevada Power's regulated retail rates. Expenditures for certain assets may ultimately include acquisition of existing assets.

Nevada Power's historical and forecast capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items are as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| &nbsp;&nbsp;&nbsp;Electric transmission | $97 | $387 | $457 |
| &nbsp;&nbsp;&nbsp;Electric distribution | 245 | 271 | 332 |
| &nbsp;&nbsp;&nbsp;Solar generation | 19 | 48 | 62 |
| &nbsp;&nbsp;&nbsp;Electric battery storage | 12 | 9 | 22 |
| &nbsp;&nbsp;&nbsp;Wildfire prevention | 11 | 11 | 14 |
| &nbsp;&nbsp;&nbsp;Other | 458 | 186 | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $842 | $912 | $1139 |

---

Nevada Power receives PUCN approval through its IRP filings for various projects. Nevada Power has included estimates from these IRP filings in its forecast capital expenditures for 2025. These estimates can change as a result of the RFP process, continued evaluation and future IRP filing refinements. Nevada Power's capital expenditures include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric transmission includes both growth projects and operating expenditures. Growth projects primarily relate to the Nevada Utilities' Greenlink Nevada transmission expansion program. Operating expenditures consist of routine expenditures for transmission and other infrastructure needed to serve existing and expected demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric distribution includes both growth projects and operating expenditures consisting of routine expenditures for distribution needed to serve existing and expected demand.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Solar generation and electric battery storage primarily consist of a 150-MW solar photovoltaic facility with an additional 100 MWs of co-located battery storage that was developed in Clark County, Nevada which commenced commercial operation in May 2024 and a 400-MW solar photovoltaic facility with an additional 400 MWs of co-located battery storage that is being developed in Churchill County, Nevada with ownership share approved by the PUCN of 10% Nevada Power and 90% Sierra Pacific. Commercial operation of the solar facility is expected by early 2027 and commercial operation of the co-located battery storage is expected by mid-2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wildfire prevention includes both growth and operating expenditures related to projects included in a comprehensive natural disaster protection plan filed and approved by the PUCN. These projects include, but are not limited to, rebuilding distribution lines with covered conductor, converting overhead distribution lines to underground and copper wire and pole replacement projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other includes both growth projects and operating expenditures. Growth projects primarily consist of additional completion costs for the peaking combustion turbines developed at the Silverhawk generating facility in Clark County, Nevada. Operating expenditures consist of turbine upgrades at several generating facilities, information technology expenditures, routine expenditures for generation, other operating projects and other infrastructure needed to serve existing and expected demand.

*2024 Joint Integrated Resource Plan*

In October 2025, the Nevada Utilities submitted a Joint Application for approval of the First Amendment to the 2024 Joint Integrated Resource Plan. The First Amendment seeks approval to enter into a 20-year power purchase agreement with the developer for an additional 150-MW battery energy storage system that will reduce the Nevada Utilities' open position beginning in the summer of 2027. The battery energy storage system will be co-located with the existing Dodge Flat solar and battery facility in Washoe County, Nevada. An order is expected in 2026.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes outside the normal course of business in material cash requirements from the information provided in Item 7 of Nevada Power's Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Note 5 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

**Regulatory Matters**

Nevada Power is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding Nevada Power's current regulatory matters.

**Environmental Laws and Regulations**

Nevada Power is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact Nevada Power's current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. Nevada Power believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and Nevada Power is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

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**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of long-lived assets and income taxes. For additional discussion of Nevada Power's critical accounting estimates, see Item 7 of Nevada Power's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in Nevada Power's assumptions regarding critical accounting estimates since December 31, 2024.

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**Sierra Pacific Power Company and its subsidiaries** 

**Consolidated Financial Section**

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**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholder of

Sierra Pacific Power Company

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of Sierra Pacific Power Company and subsidiaries ("Sierra Pacific") as of September 30, 2025, the related consolidated statements of operations, and changes in shareholder's equity for the three-month and six-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of Sierra Pacific as of December 31, 2024, and the related consolidated statements of operations, changes in shareholder's equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of Sierra Pacific's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Sierra Pacific in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Las Vegas, Nevada

October 31, 2025

------

**SIERRA PACIFIC POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions, except share data)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $37 | $17 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 184 | 138 |
| &nbsp;&nbsp;&nbsp;Inventories | 161 | 161 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 63 | 90 |
| &nbsp;&nbsp;Prepayments | 34 | 54 |
| &nbsp;&nbsp;&nbsp;Other current assets | 34 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 513 | 482 |
| Property, plant and equipment, net | 5647 | 4439 |
| Regulatory assets | 198 | 202 |
| Other assets | 204 | 204 |
| **Total assets** | $6562 | $5327 |
| **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $554 | $410 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 18 | 19 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 18 | 16 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 400 |  |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 83 | 106 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 40 | 42 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 53 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1166 | 643 |
| Long-term debt  | 1127 | 1527 |
| Junior subordinated debt | 446 |  |
| Regulatory liabilities | 408 | 416 |
| Deferred income taxes | 385 | 369 |
| Other long-term liabilities | 318 | 272 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 3850 | 3227 |
| Commitments and contingencies (Note 10) |  |  |
| **Shareholder's equity:** |  |  |
| Common stock - $3.75 stated value, 1,000 shares authorized, issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 2321 | 1726 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 392 | 375 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholder's equity | 2712 | 2100 |
| **Total liabilities and shareholder's equity** | $6562 | $5327 |
| The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. |

---

------

**SIERRA PACIFIC POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $294 | $320 | $765 | $842 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas | 17 | 18 | 89 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 311 | 338 | 854 | 980 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 121 | 150 | 346 | 443 |
| &nbsp;&nbsp;&nbsp;Cost of natural gas purchased for resale | 5 | 7 | 42 | 96 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 66 | 66 | 187 | 181 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 41 | 47 | 121 | 141 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 6 | 6 | 18 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 239 | 276 | 714 | 879 |
| **Operating income** | 72 | 62 | 140 | 101 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (25) | (22) | (73) | (64) |
| &nbsp;&nbsp;&nbsp;Allowance for borrowed funds | 5 | 2 | 11 | 5 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 16 | 6 | 35 | 16 |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 3 | 2 | 9 | 11 |
| &nbsp;&nbsp;&nbsp;Other, net | 4 | 3 | 8 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 3 | (9) | (10) | (24) |
| **Income before income tax expense (benefit)** | 75 | 53 | 130 | 77 |
| &nbsp;&nbsp;Income tax expense (benefit) | 7 | 6 | 13 | 8 |
| **Net income** | $68 | $47 | $117 | $69 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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------

**SIERRA PACIFIC POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited)**

(Amounts in millions, except shares)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br>**Total**<br>**Shareholder's**<br>**Equity** |
| **Balance, June 30, 2024** | 1000 | $— | $1576 | $312 | $(1) | $1887 |
| Net income |  |  |  | 47 |  | 47 |
| Contributions |  |  | 30 |  |  | 30 |
| **Balance, September 30, 2024** | 1000 | $— | $1606 | $359 | $(1) | $1964 |
| **Balance, December 31, 2023** | 1000 | $— | $1576 | $490 | $(1) | $2065 |
| Net income |  |  |  | 69 |  | 69 |
| Dividends declared |  |  |  | (200) |  | (200) |
| Contributions |  |  | 30 |  |  | 30 |
| **Balance, September 30, 2024** | 1000 | $— | $1606 | $359 | $(1) | $1964 |
| **Balance, June 30, 2025** | 1000 | $— | $2121 | $425 | $(1) | $2545 |
| Net income |  |  |  | 68 |  | 68 |
| Dividends declared | 0 |  |  | (100) |  | (100) |
| Contributions |  |  | 200 |  |  | 200 |
| Other equity transactions |  |  |  | (1) |  | (1) |
| **Balance, September 30, 2025** | 1000 | $— | $2321 | $392 | $(1) | $2712 |
| **Balance, December 31, 2024** | 1000 | $— | $1726 | $375 | $(1) | $2100 |
| Net income |  |  |  | 117 |  | 117 |
| Dividends declared |  |  |  | (100) |  | (100) |
| Contributions |  |  | 595 |  |  | 595 |
| **Balance, September 30, 2025** | 1000 | $— | $2321 | $392 | $(1) | $2712 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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------

**SIERRA PACIFIC POWER COMPANY AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $117 | $69 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 121 | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (35) | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred energy | (62) | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred energy | (19) | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other changes in regulatory assets and liabilities | 81 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and amortization of investment tax credits | (3) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (3) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | (17) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1) | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | (15) | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | (34) | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 130 | 330 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (1084) | (433) |
| &nbsp;&nbsp;Proceeds from sale of marketable securities |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (1084) | (432) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Proceeds from long-term debt | 446 | 233 |
| &nbsp;&nbsp;Proceeds from short-term debt |  | 15 |
| &nbsp;&nbsp;&nbsp;Dividends paid | (100) | (200) |
| &nbsp;&nbsp;&nbsp;Contributions from parent | 595 | 30 |
| &nbsp;&nbsp;&nbsp;Other, net | 30 | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | 971 | 72 |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 17 | (30) |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 24 | 52 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $41 | $22 |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

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**SIERRA PACIFIC POWER COMPANY AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General** 

Sierra Pacific Power Company, together with its subsidiaries ("Sierra Pacific"), is a wholly owned subsidiary of NV Energy, Inc. ("NV Energy"), a holding company that also owns Nevada Power Company and its subsidiaries ("Nevada Power") and certain other subsidiaries. Sierra Pacific is a U.S. regulated electric utility company serving retail customers, including residential, commercial and industrial customers and regulated retail natural gas customers primarily in northern Nevada. NV Energy is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company headquartered in Iowa that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The Consolidated Statements of Comprehensive Income have been omitted as net income equals comprehensive income for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in Sierra Pacific's Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in Sierra Pacific's accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Sierra Pacific is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Sierra Pacific is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

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**(3)**&nbsp;&nbsp;&nbsp;&nbsp;**Cash and Cash Equivalents and Restricted Cash and Cash Equivalents** 

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist of funds restricted by the Public Utilities Commission of Nevada ("PUCN") for a certain renewable energy contract. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $37 | $17 |
| Restricted cash and cash equivalents included in other current assets | 4 | 7 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $41 | $24 |

---

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net** 

Property, plant and equipment, net consists of the following (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| | **Depreciable Life** | | |
| | **Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Utility plant:** |  |  |  |
| &nbsp;&nbsp;Generation | 25 - 70 years | $1369 | $1339 |
| &nbsp;&nbsp;Transmission | 50 - 76 years | 1129 | 1071 |
| &nbsp;&nbsp;&nbsp;Electric distribution | 20 - 76 years | 2265 | 2224 |
| &nbsp;&nbsp;Electric intangible plant and other | 5 - 65 years | 190 | 254 |
| &nbsp;&nbsp;&nbsp;Natural gas distribution | 35 - 70 years | 571 | 563 |
| &nbsp;&nbsp;Natural gas intangible plant and other | 5 - 65 years | 17 | 18 |
| &nbsp;&nbsp;Common other | 5 - 65 years | 446 | 377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant |  | 5987 | 5846 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (2250) | (2208) |
|  |  | 3737 | 3638 |
| Construction work-in-progress |  | 1910 | 801 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $5647 | $4439 |

---

**(5)&nbsp;&nbsp;&nbsp;&nbsp;Recent Financing Transactions**

*Junior Subordinated Debt*

In September 2025, Sierra Pacific issued $450 million of its 6.20% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due December 2055. Sierra Pacific will pay interest on the notes at a rate of 6.20% through December 2030, subject to a reset every five years. Sierra Pacific intends to use the net proceeds from the sale of the notes to fund capital expenditures and for general corporate purposes.

*Credit Facilities*

In June 2025, Sierra Pacific amended its existing $400 million secured credit facility expiring in June 2027. The amendment extended the expiration date to June 2028 and amended certain provisions of the existing credit agreement.

------

**(6)**&nbsp;&nbsp;&nbsp;&nbsp;**Income Taxes** 

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| Effects of ratemaking<sup>(1)</sup> | (12) | (10) | (11) | (11) |
| Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | 9% | 11% | 10% | 10% |

---

(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Sierra Pacific's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. Sierra Pacific made cash payments for federal income tax to BHE of $28 million and $67 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans** 

Sierra Pacific is a participant in benefit plans sponsored by NV Energy. The NV Energy Retirement Plan includes a qualified pension plan ("Qualified Pension Plan") and a supplemental executive retirement plan and a restoration plan (collectively, "Non-Qualified Pension Plans") that provide pension benefits for eligible employees. The NV Energy Comprehensive Welfare Benefit and Cafeteria Plan provides certain postretirement health care and life insurance benefits for eligible retirees ("Other Postretirement Plans") on behalf of Sierra Pacific. Amounts attributable to Sierra Pacific were allocated from NV Energy based upon the current, or in the case of retirees, previous, employment location. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net.

Amounts receivable from (payable to) NV Energy are included on the Consolidated Balance Sheets and consist of the following (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Qualified Pension Plan:** |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | $61 | $59 |
| **Non-Qualified Pension Plans:**  |  |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | (1) | (1) |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | (5) | (5) |
| **Other Postretirement Plans:** |  |  |
| &nbsp;&nbsp;Other non-current assets | 4 | 5 |

---

------

**(8)**&nbsp;&nbsp;&nbsp;&nbsp;**Risk Management and Hedging Activities** 

Sierra Pacific is exposed to the impact of market fluctuations in commodity prices and interest rates. Sierra Pacific is principally exposed to electricity, natural gas and coal market fluctuations primarily through Sierra Pacific's obligation to serve retail customer load in its regulated service territory. Sierra Pacific's load and generating facilities represent substantial underlying commodity positions. Exposures to commodity prices consist mainly of variations in the price of fuel required to generate electricity and wholesale electricity that is purchased and sold. Commodity prices are subject to wide price swings as supply and demand are impacted by, among many other unpredictable items, weather, market liquidity, generating facility availability, customer usage, storage, and transmission and transportation constraints. The actual cost of fuel and purchased power is recoverable through the deferred energy mechanism. Interest rate risk exists on variable-rate debt and future debt issuances. Sierra Pacific does not engage in proprietary trading activities.

Sierra Pacific has established a risk management process that is designed to identify, assess, manage and report on each of the various types of risk involved in its business. To mitigate a portion of its commodity price risk, Sierra Pacific uses commodity derivative contracts, which may include forwards, futures, options, swaps and other agreements, to effectively secure future supply or sell future production generally at fixed prices. Sierra Pacific manages its interest rate risk by limiting its exposure to variable interest rates primarily through the issuance of fixed-rate long-term debt and by monitoring market changes in interest rates. Additionally, Sierra Pacific may from time to time enter into interest rate derivative contracts, such as interest rate swaps or locks, to mitigate Sierra Pacific's exposure to interest rate risk. Sierra Pacific does not hedge all of its commodity price and interest rate risks, thereby exposing the unhedged portion to changes in market prices. There have been no significant changes in Sierra Pacific's accounting policies related to derivatives. Refer to Note 9 for additional information on derivative contracts.

The following table, which excludes contracts that have been designated as normal under the normal purchases and normal sales exception afforded by GAAP, summarizes the fair value of Sierra Pacific's derivative contracts, on a gross basis, and reconciles those amounts presented on a net basis on the Consolidated Balance Sheets (in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Other**<br>**Current**<br>**Assets** | **Other**<br>**Long-term**<br>**Assets** |<br>**Current**<br>**Liabilities** | **Other**<br>**Long-term**<br>**Liabilities** |<br>**Total** |
| **<u>As of September 30, 2025</u>** | | | | | |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity assets | $1 | $— | $— | $— | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities |  |  | (8) | (1) | (9) |
| Total derivative - net basis | $1 | $— | $(8) | $(1) | $(8) |
| **<u>As of December 31, 2024</u>** |  |  |  |  |  |
| **Not designated as hedging contracts**<sup>(1)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity assets | $— | $1 | $— | $— | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity liabilities |  |  | (14) |  | (14) |
| Total derivative - net basis | $— | $1 | $(14) | $— | $(13) |

---

(1)Sierra Pacific's commodity derivatives not designated as hedging contracts are included in regulated rates. As of September 30, 2025, a net regulatory asset of $8 million was recorded related to the net derivative liability of $8 million. As of December 31, 2024, a net regulatory asset of $13 million was recorded related to the net derivative liability of $13 million.

The following table summarizes the net notional amounts of outstanding commodity derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Unit of**<br>**Measure** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Electricity purchases | Megawatt hours | 1 | 1 |
| Natural gas purchases | Decatherms | 91 | 57 |

---

------

*Credit Risk*

Sierra Pacific is exposed to counterparty credit risk associated with wholesale energy supply and marketing activities with other utilities, energy marketing companies, financial institutions and other market participants. Credit risk may be concentrated to the extent Sierra Pacific's counterparties have similar economic, industry or other characteristics and due to direct and indirect relationships among the counterparties. Before entering into a transaction, Sierra Pacific analyzes the financial condition of each significant wholesale counterparty, establishes limits on the amount of unsecured credit to be extended to each counterparty and evaluates the appropriateness of unsecured credit limits on an ongoing basis. To further mitigate wholesale counterparty credit risk, Sierra Pacific enters into netting and collateral arrangements that may include margining and cross-product netting agreements and obtain third-party guarantees, letters of credit and cash deposits. If required, Sierra Pacific exercises rights under these arrangements, including calling on the counterparty's credit support arrangement.

*Collateral and Contingent Features*

In accordance with industry practice, certain wholesale agreements, including derivative contracts, contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the recognized credit rating agencies. These agreements may either specifically provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features") or provide the right for counterparties to demand "adequate assurance" if there is a material adverse change in Sierra Pacific's creditworthiness. These rights can vary by contract and by counterparty. As of September 30, 2025, Sierra Pacific's credit ratings for its senior secured debt and its issuer credit ratings for senior unsecured debt from the recognized credit rating agencies were investment grade.

The aggregate fair value of Sierra Pacific's derivative contracts in liability positions with specific credit-risk-related contingent features totaled $1 million as of September 30, 2025, and $— December 31, 2024, which represents the amount of collateral to be posted if all credit risk related contingent features for derivative contracts in liability positions had been triggered. Sierra Pacific's collateral requirements could fluctuate considerably due to market price volatility, changes in credit ratings, changes in legislation or regulation or other factors.

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements** 

The carrying value of Sierra Pacific's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. Sierra Pacific has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that Sierra Pacific has the ability to access at the measurement date.

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

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

------

The following table presents Sierra Pacific's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | |
| **Assets:** | | | | |
| Commodity derivatives | $— | $— | $1 | $1 |
| Money market mutual funds | 51 |  |  | 51 |
| Investment funds | 1 |  |  | 1 |
|  | $52 | $— | $1 | $53 |
| **Liabilities:** |  |  |  |  |
| Commodity derivatives | $— | $— | $(9) | $(9) |
| **<u>As of December 31, 2024:</u>** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Commodity derivatives | $— | $— | $1 | $1 |
| Money market mutual funds | 12 |  |  | 12 |
| Investment funds | 1 |  |  | 1 |
|  | $13 | $— | $1 | $14 |
| **Liabilities:** |  |  |  |  |
| Commodity derivatives | $— | $— | $(14) | $(14) |

---

Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which Sierra Pacific transacts. When quoted prices for identical contracts are not available, Sierra Pacific uses forward price curves. Forward price curves represent Sierra Pacific's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. Sierra Pacific bases its forward price curves upon internally developed models, with internal and external fundamental data inputs. Market price quotations for certain electricity and natural gas trading hubs are not as readily obtainable due to markets that are not active. Given that limited market data exists for these contracts, Sierra Pacific uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The model incorporates a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical expedient for valuing its assets and liabilities measured and reported at fair value. The determination of the fair value for derivative contracts not only includes counterparty risk, but also the impact of Sierra Pacific's nonperformance risk on its liabilities, which as of September 30, 2025, and December 31, 2024, had an immaterial impact to the fair value of its derivative contracts. As such, Sierra Pacific considers its derivative contracts to be valued using Level 3 inputs.

Sierra Pacific's investments in money market mutual funds and investment funds are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value.

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The following table reconciles the beginning and ending balances of Sierra Pacific's commodity derivative assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $(22) | $(27) | $(13) | $(16) |
| Changes in fair value recognized in regulatory assets | (10) | (10) | (20) | (26) |
| Settlements | 24 | 25 | 25 | 30 |
| **Ending balance** | $(8) | $(12) | $(8) | $(12) |

---

Sierra Pacific's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of Sierra Pacific's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The following table presents the carrying value and estimated fair value of Sierra Pacific's long-term debt (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
| Long-term debt | $1973 | $1989 | $1527 | $1506 |

---

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies** 

*Environmental Laws and Regulations*

Sierra Pacific is subject to federal, state and local laws and regulations regarding climate change, renewable portfolio standards, air and water quality, emissions performance standards, coal combustion byproduct disposal, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact Sierra Pacific's current and future operations. Sierra Pacific believes it is in material compliance with all applicable laws and regulations.

*Accrual for Customer Refund*

In September 2025, Sierra Pacific recorded an additional $3 million accrual totaling $6 million as of September 30, 2025 in connection with a potential customer refund arising from ongoing regulatory proceedings. The estimated accrual is based on currently available information to date and Sierra Pacific believes it is probable that losses will be incurred associated with the ongoing regulatory proceedings which reflects Sierra Pacific's commitment to transparency and regulatory compliance. Sierra Pacific will continue to assess the matter and final determination of the liability will be made after the completion of the regulatory proceedings and the accrued liability will be updated as warranted.

*Legal Matters*

Sierra Pacific is party to a variety of legal actions arising out of the normal course of business. Sierra Pacific does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.

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**(11)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers** 

The following table summarizes Sierra Pacific's revenue from contracts with customers ("Customer Revenue") by line of business, with further disaggregation of retail by customer class, including a reconciliation to Sierra Pacific's reportable segment information included in Note 12 (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Three-Month Periods** | **Three-Month Periods** | **Three-Month Periods** | **Three-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Electric** | **Natural Gas** | **Total** | **Electric** | **Natural Gas** | **Total** |
| Customer Revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $98 | $12 | $110 | $106 | $11 | $117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 94 | 3 | 97 | 101 | 4 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 81 | 1 | 82 | 93 | 2 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2 | 1 | 3 | 1 | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fully bundled | 275 | 17 | 292 | 301 | 18 | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution only service | 2 |  | 2 | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 277 | 17 | 294 | 303 | 18 | 321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale, transmission and other | 17 |  | 17 | 16 |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Customer Revenue | 294 | 17 | 311 | 319 | 18 | 337 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other revenue |  |  |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | $294 | $17 | $311 | $320 | $18 | $338 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Electric** | **Natural Gas** | **Total** | **Electric** | **Natural Gas** | **Total** |
| Customer Revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $271 | $59 | $330 | $296 | $85 | $381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 250 | 21 | 271 | 273 | 36 | 309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | 185 | 7 | 192 | 213 | 15 | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 4 | 2 | 6 | 4 | 2 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fully bundled | 710 | 89 | 799 | 786 | 138 | 924 |
| &nbsp;&nbsp;Distribution only service | 6 |  | 6 | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 716 | 89 | 805 | 790 | 138 | 928 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale, transmission and other | 48 |  | 48 | 51 |  | 51 |
| Total Customer Revenue | 764 | 89 | 853 | 841 | 138 | 979 |
| Other revenue | 1 |  | 1 | 1 |  | 1 |
| Total operating revenue | $765 | $89 | $854 | $842 | $138 | $980 |

---

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**(12)**&nbsp;&nbsp;&nbsp;&nbsp;**Segment Information** 

Sierra Pacific has identified two reportable operating segments: regulated electric and regulated natural gas. The regulated electric segment derives most of its revenue from regulated retail sales of electricity to residential, commercial, and industrial customers and from wholesale sales. The regulated natural gas segment derives most of its revenue from regulated retail sales of natural gas to residential, commercial, and industrial customers and also obtains revenue by transporting natural gas owned by others through its distribution system. Pricing for regulated electric and regulated natural gas sales are established separately by the PUCN; therefore, management also reviews each segment separately to make decisions regarding allocation of resources and in evaluating performance.

The following tables provide information on a reportable segment basis (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** | **For the Three-Month Period Ended September 30, 2025** |
| | **Regulated Electric** | **Regulated Natural Gas** | **Total** |
| Operating revenue | $294 | $17 | $311 |
| Cost of sales | 121 | 5 | 126 |
| Operations and maintenance | 62 | 4 | 66 |
| Depreciation and amortization | 36 | 5 | 41 |
| Interest expense | 24 | 1 | 25 |
| Interest and dividend income | 3 |  | 3 |
| Income tax expense (benefit) | 7 |  | 7 |
| Other segment items <sup>(1)</sup> | 19 |  | 19 |
| Net income | $66 | $2 | $68 |
| Capital expenditures | $533 | $37 | $570 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** | **For the Nine-Month Period Ended September 30, 2025** |
| | **Regulated Electric** | **Regulated Natural Gas** | **Total** |
| Operating revenue | $765 | $89 | $854 |
| Cost of sales | 346 | 42 | 388 |
| Operations and maintenance | 170 | 17 | 187 |
| Depreciation and amortization | 106 | 15 | 121 |
| Interest expense | 68 | 5 | 73 |
| Interest and dividend income | 9 |  | 9 |
| Income tax expense (benefit) | 13 |  | 13 |
| Other segment items <sup>(1)</sup> | 37 | (1) | $36 |
| Net Income | $108 | $9 | $117 |
| Capital expenditures | $1007 | $77 | $1084 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** | **For the Three-Month Period Ended September 30, 2024** |
| | **Regulated Electric** | **Regulated Natural Gas** | **Total** |
| Operating revenue | $320 | $18 | $338 |
| Cost of sales | 150 | 7 | 157 |
| Operations and maintenance | 57 | 9 | 66 |
| Depreciation and amortization | 41 | 6 | 47 |
| Interest expense | 22 |  | 22 |
| Interest and dividend income | 2 |  | 2 |
| Income tax expense (benefit) | 9 | (3) | 6 |
| Other segment items <sup>(1)</sup> | 5 |  | 5 |
| Net income | $48 | $(1) | $47 |
| Capital expenditures | $125 | $11 | $136 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** | **For the Nine-Month Period Ended September 30, 2024** |
| | **Regulated Electric** | **Regulated Natural Gas** | **Total** |
| Operating revenue | $842 | $138 | $980 |
| Cost of sales | 443 | 96 | 539 |
| Operations and maintenance | 157 | 24 | 181 |
| Depreciation and amortization | 127 | 14 | 141 |
| Interest expense | 59 | 5 | 64 |
| Interest and dividend income | 11 |  | 11 |
| Income tax expense (benefit) | 11 | (3) | 8 |
| Other segment items <sup>(1)</sup> | 12 | (1) | $11 |
| Net Income | $68 | $1 | $69 |
| Capital expenditures | $395 | $38 | $433 |

---

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Regulated electric | $6023 | $4767 |
| &nbsp;&nbsp;&nbsp;Regulated natural gas | 490 | 518 |
| &nbsp;&nbsp;Regulated common assets<sup>(2)</sup> | 49 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6562 | $5327 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Consists principally of property and other taxes, allowance for borrowed and equity funds and other income (expenses).

(2)&nbsp;&nbsp;&nbsp;&nbsp;Consists principally of cash and cash equivalents not included in either the regulated electric or regulated natural gas segments.

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations** 

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of Sierra Pacific during the periods included herein. Explanations include management's best estimate of the impact of weather, customer growth, usage trends and other factors. This discussion should be read in conjunction with Sierra Pacific's historical unaudited Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. Sierra Pacific's actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024** 

<u>Overview</u>

Net income for the third quarter of 2025 was $68 million, an increase of $21 million compared to 2024 primarily due to higher allowance for borrowed and equity funds, lower depreciation and amortization expense and higher utility margin. These items are partially offset by higher interest expense. Electric utility margin increased primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and price impacts from changes in sales mix, offset by an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings. Electric retail customer volumes, including distribution only service customers, decreased by 0.7% primarily due to the unfavorable impact of weather, partially offset by an increase in the average number of customers. Natural gas utility margin increased primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and an increase in the average number of customers. Energy generated volumes decreased 2% for the third quarter of 2025 compared to 2024 primarily due to lower natural gas-fueled generation. Wholesale electricity sales volumes decreased 15% and energy purchased volumes increased 17%.

Net income for the first nine months of 2025 was $117 million, an increase of $48 million compared to 2024 primarily due to higher utility margin, higher allowance for borrowed and equity funds and lower depreciation and amortization expense. These items are partially offset by higher interest expense, higher operations and maintenance expense, unfavorable income tax expense and lower interest and dividend income. Electric utility margin increased primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and price impacts from changes in sales mix, offset by an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings. Electric retail customer volumes, including distribution only service customers, increased by 0.6% primarily due to an increase in the average number of customers, partially offset by the unfavorable impact of weather. Natural gas utility margin increased primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and an increase in the average number of customers. Energy generated volumes are consistent for the first nine months of 2025 compared to 2024. Wholesale electricity sales volumes decreased 11% and energy purchased volumes decreased 2%.

<u>Non-GAAP Financial Measure</u>

Management utilizes various key financial measures that are prepared in accordance with GAAP, as well as non-GAAP financial measures such as electric utility margin and natural gas utility margin, to help evaluate results of operations. Electric utility margin is calculated as electric operating revenue less cost of fuel and energy while natural gas utility margin is calculated as natural gas operating revenue less cost of natural gas purchased for resale, which are captions presented on the Consolidated Statements of Operations.

Sierra Pacific's cost of fuel and energy and cost of natural gas purchased for resale are generally recovered from its retail customers through regulatory recovery mechanisms and as a result, changes in Sierra Pacific's expenses included in recovery mechanisms result in comparable changes to revenue. As such, management believes electric utility margin and natural gas utility margin more appropriately and concisely explain results of operations rather than a discussion of revenue and cost of sales separately. Management believes the presentation of electric utility margin and natural gas utility margin provides meaningful and valuable insight into the information management considers important to understanding the business and a measure of comparability to others in the industry.

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Electric utility margin and natural gas utility margin are not measures calculated in accordance with GAAP and should be viewed as a supplement to, and not a substitute for, operating income which is the most directly comparable financial measure prepared in accordance with GAAP. The following table provides a reconciliation of utility margin to operating income (in millions):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Electric utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $294 | $320 | $(26) | (8)% | $765 | $842 | $(77) | (9)% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 121 | 150 | (29) | (19) | 346 | 443 | (97) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Electric utility margin** | 173 | 170 | 3 | 2% | 419 | 399 | 20 | 5% |
| **Natural gas utility margin:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | 17 | 18 | (1) | (6)% | 89 | 138 | (49) | (36)% |
| &nbsp;&nbsp;&nbsp;Natural gas purchased for resale | 5 | 7 | (2) | (29) | 42 | 96 | (54) | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Natural gas utility margin** | 12 | 11 | 1 | 9% | 47 | 42 | 5 | 12% |
| **Utility margin** | 185 | 181 | 4 | 2% | 466 | 441 | 25 | 6% |
| Operations and maintenance | 66 | 66 |  | —% | 187 | 181 | 6 | 3% |
| Depreciation and amortization | 41 | 47 | (6) | (13) | 121 | 141 | (20) | (14) |
| Property and other taxes | 6 | 6 |  |  | 18 | 18 |  |  |
| **Operating income** | $72 | $62 | $10 | 16% | $140 | $101 | $39 | 39% |

---

------

<u>Electric Utility Margin</u>

A comparison of key operating results related to electric utility margin is as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $294 | $320 | $(26) | (8)% | $765 | $842 | $(77) | (9)% |
| &nbsp;&nbsp;&nbsp;Cost of fuel and energy | 121 | 150 | (29) | (19) | 346 | 443 | (97) | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $173 | $170 | $3 | 2% | $419 | $399 | $20 | 5% |
| **Sales (GWhs):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 773 | 800 | (27) | (3)% | 2050 | 2073 | (23) | (1)% |
| &nbsp;&nbsp;&nbsp;Commercial | 898 | 895 | 3 |  | 2408 | 2385 | 23 | 1 |
| &nbsp;&nbsp;&nbsp;Industrial | 784 | 760 | 24 | 3 | 2193 | 2112 | 81 | 4 |
| &nbsp;&nbsp;&nbsp;Other | 2 | 2 |  |  | 6 | 7 | (1) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fully bundled<sup>(1)</sup> | 2457 | 2457 |  |  | 6657 | 6577 | 80 | 1 |
| &nbsp;&nbsp;&nbsp;Distribution only service | 764 | 786 | (22) | (3) | 2156 | 2180 | (24) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 3221 | 3243 | (22) | (1) | 8813 | 8757 | 56 | 1 |
| &nbsp;&nbsp;&nbsp;Wholesale | 135 | 158 | (23) | (15) | 472 | 528 | (56) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total GWhs sold | 3356 | 3401 | (45) | (1)% | 9285 | 9285 |  | —% |
| **Average number of retail customers (in thousands)** | 387 | 383 | 4 | 1% | 386 | 381 | 5 | 1% |
| **Average revenue per MWh:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail - fully bundled<sup>(1)</sup> | $111.57 | $123.03 | $(11.46) | (9)% | $106.54 | $119.52 | $(12.98) | (11)% |
| &nbsp;&nbsp;&nbsp;Wholesale | $80.12 | $65.83 | $14.29 | 22% | $64.19 | $60.13 | $4.06 | 7% |
| **Heating degree days** | 12 | 52 | (40) | (77)% | 2621 | 2642 | (21) | (1)% |
| **Cooling degree days** | 876 | 994 | (118) | (12)% | 1198 | 1381 | (183) | (13)% |
| **Sources of energy (GWhs)**<sup>(2)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Natural gas | 1264 | 1348 | (84) | (6)% | 3339 | 3399 | (60) | (2)% |
| &nbsp;&nbsp;&nbsp;Coal | 307 | 256 | 51 | 20 | 744 | 716 | 28 | 4 |
| &nbsp;&nbsp;&nbsp;Renewables | 3 | 7 | (4) | (57) | 7 | 20 | (13) | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total energy generated | 1574 | 1611 | (37) | (2) | 4090 | 4135 | (45) | (1) |
| &nbsp;&nbsp;&nbsp;Energy purchased | 1459 | 1249 | 210 | 17 | 3126 | 3206 | (80) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 3033 | 2860 | 173 | 6% | 7216 | 7341 | (125) | (2)% |
| **Average cost of energy per MWh**<sup>(3)</sup>**:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy generated | $30.92 | $22.23 | $8.69 | 39% | $36.45 | $38.86 | $(2.41) | (6)% |
| &nbsp;&nbsp;&nbsp;Energy purchased | $49.53 | $91.39 | $(41.86) | (46)% | $62.87 | $87.92 | $(25.05) | (28)% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Fully bundled includes sales to customers for combined energy, transmission and distribution services.

(2)&nbsp;&nbsp;&nbsp;&nbsp;GWh amounts are net of energy used by the related generating facilities.

(3)&nbsp;&nbsp;&nbsp;&nbsp;The average cost of energy per MWh includes only the cost of fuel associated with the generating facilities, purchased power and deferrals.

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<u>Natural Gas Utility Margin</u>

A comparison of key operating results related to natural gas utility margin is as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Third Quarter** | **Third Quarter** | **Third Quarter** | **Third Quarter** | **First Nine Months** | **First Nine Months** | **First Nine Months** | **First Nine Months** |
| | **2025** | **2024** | **Change** | **Change** | **2025** | **2024** | **Change** | **Change** |
| **Utility margin (in millions):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenue | $17 | $18 | $(1) | (6)% | $89 | $138 | $(49) | (36)% |
| &nbsp;&nbsp;&nbsp;Natural gas purchased for resale | 5 | 7 | (2) | (29) | 42 | 96 | (54) | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility margin | $12 | $11 | $1 | 9% | $47 | $42 | $5 | 12% |
| **Sold (000's Dths):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 794 | 811 | (17) | (2)% | 7097 | 7132 | (35) | —% |
| &nbsp;&nbsp;&nbsp;Commercial | 536 | 490 | 46 | 9 | 3819 | 3690 | 129 | 3 |
| &nbsp;&nbsp;&nbsp;Industrial | 335 | 369 | (34) | (9) | 1607 | 1688 | (81) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 1665 | 1670 | (5) | —% | 12523 | 12510 | 13 | —% |
| **Average number of retail customers (in thousands)** | 188 | 186 | 2 | 1% | 187 | 185 | 2 | 1% |
| **Average revenue per retail Dth sold** | $10.21 | $10.70 | $(0.49) | (5)% | $7.12 | $11.00 | $(3.88) | (35)% |
| **Heating degree days** | 12 | 52 | (40) | (77)% | 2621 | 2642 | (21) | (1)% |
| **Average cost of natural gas per retail Dth sold** | $2.71 | $4.31 | $(1.60) | (37)% | $3.32 | $7.69 | $(4.37) | (57)% |

---

<u>Quarter Ended September 30, 2025, Compared to Quarter Ended September 30, 2024</u>

*Electric utility margin* increased $3 million*,* or 2%*,* for the third quarter of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $21 million of higher electric retail utility margin primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and price impacts from changes in sales mix. Retail customer volumes, including distribution only service customers, decreased 0.7% primarily due to the unfavorable impact of weather and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* $2 million of higher energy efficiency program revenue (offset in operations and maintenance expense).

The increase in electric utility margin was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* $17 million of lower transmission and wholesale revenue and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3 million of lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings*.*

*Natural gas utility margin* increased $1 million, or 9%, for the third quarter of 2025 compared to 2024 primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and an increase in the average number of customers.

*Operations and maintenance* is consistent for the third quarter of 2025 compared to 2024 primarily due to higher technology costs, higher insurance expense due to higher premiums associated with third-party liability coverage and higher general and administrative costs, offset by lower energy efficiency program costs (offset in operating revenue), lower regulatory impacts from the 2024 general rate review and lower plant operations and maintenance costs.

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*Depreciation and amortization* decreased $6 million, or 13%, for the third quarter of 2025 compared to 2024 primarily due to lower depreciation rates as a result of extending the life of the Valmy generation facility with the conversion to natural gas.

*Interest expense* increased $3 million, or 14%, for the third quarter of 2025 compared to 2024 primarily due to higher carrying charges on regulatory balances and higher long-term debt.

*Allowance for borrowed and equity funds* increased $13 million, for the third quarter of 2025 compared to 2024 primarily due to higher construction work-in-progress.

*Interest and dividend income* increased $1 million, or 50%, for the third quarter of 2025 compared to 2024 primarily due to favorable interest income, mainly from higher carrying charges on regulatory balances.

*Income tax expense* increased $1 million, or 17%, for the third quarter of 2025 compared to 2024 primarily due to higher pretax income, offset by the effects of ratemaking. The effective tax rate was 9% in 2025 and 11% in 2024 and decreased primarily due to the effects of ratemaking.

<u>First Nine Months of 2025 Compared to First Nine Months of 2024</u>

*Electric utility margin* increased $20 million*,* or 5%*,* for the first nine months of 2025 compared to 2024 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $41 million of higher electric retail utility margin primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and price impacts from changes in sales mix, offset by an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings. Retail customer volumes, including distribution only service customers, increased 0.6% primarily due to an increase in the average number of customers and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* $4 million of higher energy efficiency program revenue (offset in operations and maintenance expense).

The increase in electric utility margin was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* $21 million of lower wholesale and transmission revenue and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6 million of lower revenue related to an accrual in connection with a potential customer refund arising from ongoing regulatory proceedings*.*

*Natural gas utility margin* increased $5 million, or 12%, for the first nine months of 2025 compared to 2024 primarily due to higher retail rates from the 2024 regulatory rate review with new rates effective October 2024 and an increase in the average number of customers.

*Operations and maintenance* increased $6 million, or 3%, for the first nine months of 2025 compared to 2024 primarily due to higher insurance expense due to higher premiums associated with third-party liability coverage and higher technology costs, partially offset by lower administrative and general costs, lower regulatory impacts from the 2024 general rate review and lower energy efficiency program costs (offset in revenue).

*Depreciation and amortization* decreased $20 million, or 14%, for the first nine months of 2025 compared to 2024 primarily due to lower depreciation rates and regulatory amortizations as a result of extending the life of the Valmy generation facility with the conversion to natural gas.

*Interest expense* increased $9 million, or 14%, for the first nine months of 2025 compared to 2024 primarily due to higher carrying charges on regulatory balances and higher long-term debt.

*Allowance for borrowed and equity funds* increased $25 million for the first nine months of 2025 compared to 2024 primarily due to higher construction work-in-progress.

*Interest and dividend income* decreased $2 million, or 18%, for the first nine months of 2025 compared to 2024 primarily due to unfavorable interest income, mainly from lower carrying charges on regulatory balances.

*Income tax expense* increased $5 million, or 63%, for the first nine months of 2025 compared to 2024 primarily due to higher pretax income, offset by the effects of ratemaking. The effective tax rate was 10% in 2025 and in 2024 due to the effects of ratemaking.

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**Liquidity and Capital Resources**

As of September 30, 2025, Sierra Pacific's total net liquidity was as follows (in millions):

---

| | |
|:---|:---|
| Cash and cash equivalents | $37 |
| Credit facility | 400 |
| Total net liquidity | $437 |
| Credit facility: |  |
| &nbsp;&nbsp;&nbsp;Maturity date | 2028 |

---

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024, were $130 million and $330 million, respectively. The change was primarily due to higher payments related to fuel and energy costs, the timing of payments for operating costs and decreased customer deposits, partially offset by lower income tax payments.

The timing of Sierra Pacific's income tax cash flows from period to period can be significantly affected by the estimated federal income tax payment methods and assumptions made for each payment date.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024, were $(1,084) million and $(432) million, respectively. The change was primarily due to increased capital expenditures. Refer to "Future Uses of Cash" for further discussion of capital expenditures.

<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month periods ended September 30, 2025 and 2024, were $971 million and $72 million, respectively. The change was primarily due to higher contributions from NV Energy, Inc., higher proceeds from the issuance of junior subordinated debt and lower dividends paid to NV Energy, Inc.

*Debt Authorizations*

Sierra Pacific currently has financing authority from the PUCN consisting of the ability to: (1) establish debt issuances limited to a debt ceiling of $4.0 billion (excluding borrowings under Sierra Pacific's $400 million secured credit facility); and (2) maintain a revolving credit facility of up to $600 million. Sierra Pacific currently has an effective shelf registration statement filed with the SEC to issue an additional $2.1 billion of general and refunding mortgage securities and unsecured debt securities through April 2028.

<u>Future Uses of Cash</u>

Sierra Pacific has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, the use of its secured revolving credit facility, capital contributions and other sources. These sources are expected to provide funds required for current operations, capital expenditures, debt retirements and other capital requirements. The availability and terms under which Sierra Pacific has access to external financing depends on a variety of factors, including regulatory approvals, Sierra Pacific's credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the utility industry.

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*Capital Expenditures*

Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, changes in environmental and other rules and regulations; impacts to customer rates; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; load projections; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital. Prudently incurred expenditures for compliance-related items such as pollution-control technologies, replacement generation and associated operating costs are generally incorporated into Sierra Pacific's regulated retail rates. Expenditures for certain assets may ultimately include acquisition of existing assets.

Sierra Pacific's historical and forecast capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items are as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| &nbsp;&nbsp;Solar generation | $95 | $222 | $414 |
| &nbsp;&nbsp;&nbsp;Electric battery storage | 86 | 369 | 396 |
| &nbsp;&nbsp;&nbsp;Electric transmission | 86 | 263 | 345 |
| &nbsp;&nbsp;&nbsp;Electric distribution | 142 | 146 | 190 |
| &nbsp;&nbsp;Wildfire prevention | 21 | 14 | 18 |
| &nbsp;&nbsp;&nbsp;Other | 3 | 70 | 152 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $433 | $1084 | $1515 |

---

Sierra Pacific receives PUCN approval through its IRP filings for various projects. Sierra Pacific has included estimates from these IRP filings in its forecast capital expenditures for 2025. These estimates can change as a result of the RFP process, continued evaluation and future IRP filing refinements. Sierra Pacific's capital expenditures include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Solar generation and electric battery storage primarily consist of a 400-MW solar photovoltaic facility with an additional 400 MWs of co-located battery storage that is being developed in Churchill County, Nevada with ownership share approved by the PUCN of 90% Sierra Pacific and 10% Nevada Power. Commercial operation of the solar facility is expected by early 2027 and commercial operation of the co-located battery storage is expected by mid-2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric transmission includes both growth projects and operating expenditures. Growth projects primarily relate to the Nevada Utilities' Greenlink Nevada transmission expansion program. Operating expenditures consist of routine expenditures for transmission and other infrastructure needed to serve existing and expected demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric distribution includes both growth projects and operating expenditures consisting of routine expenditures for distribution needed to serve existing and expected demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wildfire prevention includes both growth and operating capital that include expenditures contained in a comprehensive natural disaster protection plan filed and approved by the PUCN. These projects include, but are not limited to, rebuilding distribution lines with covered conductor, converting overhead distribution lines to underground and copper wire and pole replacement projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other includes both growth projects and operating expenditures. Growth projects primarily consist of a repower project at the Valmy generating facility to convert existing coal-fueled combustion to natural gas-fueled combustion that was approved by the PUCN and a hydrogen-capable natural gas simple cycle combustion turbine peakers project at the Valmy generating facility. Operating expenditures consist of information technology expenditures, routine expenditures for generation, other operating projects and other infrastructure needed to serve existing and expected demand.

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*2024 Joint Integrated Resource Plan*

In October 2025, the Nevada Utilities submitted a Joint Application for approval of the First Amendment to the 2024 Joint Integrated Resource Plan. The First Amendment seeks approval to enter into a 20-year power purchase agreement with the developer for an additional 150-MW battery energy storage system that will reduce the Nevada Utilities' open position beginning in the summer of 2027. The battery energy storage system will be co-located with the existing Dodge Flat solar and battery facility in Washoe County, Nevada. An order is expected in 2026.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes outside the normal course of business in material cash requirements from the information provided in Item 7 of Sierra Pacific's Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Note 5 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

**Regulatory Matters**

Sierra Pacific is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding Sierra Pacific's current regulatory matters.

**Environmental Laws and Regulations**

Sierra Pacific is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality, coal ash disposal and other environmental matters that have the potential to impact Sierra Pacific's current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. Sierra Pacific believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and Sierra Pacific is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of long-lived assets and income taxes. For additional discussion of Sierra Pacific's critical accounting estimates, see Item 7 of Sierra Pacific's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in Sierra Pacific's assumptions regarding critical accounting estimates since December 31, 2024.

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**Eastern Energy Gas Holdings, LLC and its subsidiaries** 

**Consolidated Financial Section**

------

**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of

Eastern Energy Gas Holdings, LLC

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of Eastern Energy Gas Holdings, LLC and subsidiaries ("Eastern Energy Gas") as of September 30, 2025, the related consolidated statements of operations, comprehensive income, and changes in equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of Eastern Energy Gas as of December 31, 2024, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of Eastern Energy Gas' management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Eastern Energy Gas in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Richmond, Virginia

October 31, 2025

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**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions)

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $105 | $34 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 155 | 189 |
| &nbsp;&nbsp;&nbsp;Receivables from affiliates | 42 | 33 |
| &nbsp;&nbsp;&nbsp;Notes receivable from affiliates | 525 |  |
| &nbsp;&nbsp;&nbsp;Inventories | 158 | 143 |
| &nbsp;&nbsp;&nbsp;Prepayments and other deferred charges | 94 | 85 |
| &nbsp;&nbsp;&nbsp;Natural gas imbalances | 29 | 71 |
| &nbsp;&nbsp;&nbsp;Other current assets | 74 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1182 | 607 |
| Property, plant and equipment, net | 10356 | 10338 |
| Goodwill | 1286 | 1286 |
| Investments | 256 | 261 |
| Other assets | 98 | 85 |
| **Total assets** | $13178 | $12577 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $71 | $86 |
| &nbsp;&nbsp;&nbsp;Accounts payable to affiliates | 38 | 33 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 72 | 25 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 89 | 291 |
| &nbsp;&nbsp;&nbsp;Accrued employee expenses | 42 | 21 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 31 | 29 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 293 |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 46 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 682 | 547 |
| Long-term debt | 4161 | 3231 |
| Regulatory liabilities | 622 | 627 |
| Deferred income taxes | 602 | 498 |
| Other long-term liabilities | 118 | 139 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 6185 | 5042 |
| Commitments and contingencies (Note 9) |  |  |
| **Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Member's equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership interests | 5772 | 6300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (31) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total member's equity | 5741 | 6265 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests | 1252 | 1270 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 6993 | 7535 |
| **Total liabilities and equity** | $13178 | $12577 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue** | $478 | $463 | $1563 | $1493 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;Cost of gas | 1 | 8 | 2 | 6 |
| &nbsp;&nbsp;Operations and maintenance | 152 | 143 | 420 | 414 |
| &nbsp;&nbsp;Depreciation and amortization | 87 | 85 | 261 | 250 |
| &nbsp;&nbsp;Property and other taxes | 36 | 34 | 106 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 276 | 270 | 789 | 770 |
| **Operating income** | 202 | 193 | 774 | 723 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;Interest expense, net | (55) | (30) | (163) | (98) |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds | 4 | 4 | 9 | 7 |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 7 | 3 | 14 | 7 |
| &nbsp;&nbsp;&nbsp;Other, net | 2 | 1 | 4 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (42) | (22) | (136) | (82) |
| **Income before income tax expense (benefit) and equity income (loss)** | 160 | 171 | 638 | 641 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 30 | 36 | 127 | 142 |
| &nbsp;&nbsp;&nbsp;Equity income (loss) | 5 | 6 | 36 | 55 |
| **Net income** | 135 | 141 | 547 | 554 |
| &nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interests | 28 | 27 | 110 | 101 |
| **Net income attributable to Eastern Energy Gas** | $107 | $114 | $437 | $453 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income | $135 | $141 | $547 | $554 |
| Other comprehensive (loss) income, net of tax: |  |  |  |  |
| &nbsp;&nbsp;Unrecognized amounts on retirement benefits, net of tax of $—, $—, $— and $— |  |  | 1 | 1 |
| &nbsp;&nbsp;Unrealized (losses) gains on cash flow hedges, net of tax of $(1), $(1), $1 and $—  | (2) | (2) | 3 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive (loss) income, net of tax | (2) | (2) | 4 | 2 |
| Comprehensive income | 133 | 139 | 551 | 556 |
| Comprehensive income attributable to noncontrolling interests | 28 | 27 | 110 | 101 |
| &nbsp;&nbsp;&nbsp;Comprehensive income attributable to Eastern Energy Gas | $105 | $112 | $441 | $455 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| |<br>**Membership**<br>**Interests** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br>**Noncontrolling**<br>**Interests** |<br>**Total**<br>**Equity** |
| **Balance, June 30, 2024** | $6536 | $(36) | $1288 | $7788 |
| Net income | 114 |  | 27 | 141 |
| Other comprehensive loss |  | (2) |  | (2) |
| Distributions | (174) |  | (42) | (216) |
| Contributions | 4 |  |  | 4 |
| **Balance, September 30, 2024** | $6480 | $(38) | $1273 | $7715 |
| **Balance, December 31, 2023** | $6273 | $(40) | $1295 | $7528 |
| Net income | 453 |  | 101 | 554 |
| Other comprehensive income |  | 2 |  | 2 |
| Distributions | (352) |  | (123) | (475) |
| Contributions | 106 |  |  | 106 |
| **Balance, September 30, 2024** | $6480 | $(38) | $1273 | $7715 |
| **Balance, June 30, 2025** | $5665 | $(29) | $1260 | $6896 |
| Net income | 107 |  | 28 | 135 |
| Other comprehensive loss |  | (2) |  | (2) |
| Distributions | (1) |  | (36) | (37) |
| Contributions | 1 |  |  | 1 |
| **Balance, September 30, 2025** | $5772 | $(31) | $1252 | $6993 |
| **Balance, December 31, 2024** | $6300 | $(35) | $1270 | $7535 |
| Net income | 437 |  | 110 | 547 |
| Other comprehensive income |  | 4 |  | 4 |
| Distributions | (1190) |  | (128) | (1318) |
| Contributions | 225 |  |  | 225 |
| **Balance, September 30, 2025** | $5772 | $(31) | $1252 | $6993 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $547 | $554 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses on other items, net | 4 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 261 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (9) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity (income) loss, net of distributions |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in regulatory assets and liabilities | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 100 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | 39 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables from affiliates | (9) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas balancing activities | 5 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | (12) | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable to affiliates | 5 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 56 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 967 | 1038 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;Capital expenditures | (245) | (244) |
| &nbsp;&nbsp;Proceeds from sales of marketable securities | 8 | 3 |
| &nbsp;&nbsp;Notes to affiliates | (530) |  |
| &nbsp;&nbsp;Repayment of notes by affiliates | 5 |  |
| &nbsp;&nbsp;Other, net |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (762) | (240) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term debt | 1187 |  |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable to affiliates, net |  | (400) |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests | (128) | (123) |
| &nbsp;&nbsp;&nbsp;Distributions to parent | (1189) | (226) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | (130) | (749) |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 75 | 49 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 61 | 93 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $136 | $142 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**EASTERN ENERGY GAS HOLDINGS, LLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General**

Eastern Energy Gas Holdings, LLC is a holding company, and together with its subsidiaries ("Eastern Energy Gas") conducts business activities consisting of Federal Energy Regulatory Commission ("FERC")-regulated interstate natural gas transmission systems and underground storage operations in the eastern region of the U.S. and operates Cove Point LNG, LP ("Cove Point"), a liquefied natural gas ("LNG") export, import and storage facility. Eastern Energy Gas holds 100% of the general partner interest and 75% of the limited partner interests of Cove Point. In addition, Eastern Energy Gas holds a 50% noncontrolling interest in Iroquois Gas Transmission System, L.P. ("Iroquois"), a 414-mile FERC-regulated interstate natural gas transmission system. Eastern Energy Gas is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company headquartered in Iowa that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in Eastern Energy Gas' Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in Eastern Energy Gas' accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

*Segment Information*

Eastern Energy Gas currently has one reportable segment, which includes its natural gas transmission, storage and LNG operations. Eastern Energy Gas' chief operating decision maker ("CODM") is the BHE Pipeline Group (which consists primarily of BHE GT&S, LLC, Northern Natural Gas Company and Kern River Gas Transmission Company) President and Chief Executive Officer. The CODM uses net income attributable to Eastern Energy Gas, as reported on the Consolidated Statements of Operations, and generally considers actual results versus historical results, budgets or forecast, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital. The segment expenses regularly provided to the CODM align with the captions presented on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Eastern Energy Gas is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

------

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. Eastern Energy Gas is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net**

Property, plant and equipment, net consists of the following (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| |<br>**Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Utility plant:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interstate natural gas transmission assets | 34 - 51 years | $6552 | $6461 |
| &nbsp;&nbsp;Storage assets | 47 - 79 years | 2807 | 2767 |
| &nbsp;&nbsp;&nbsp;Intangible plant and other assets | 4 - 53 years | 509 | 482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service |  | 9868 | 9710 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (3511) | (3381) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in-service, net |  | 6357 | 6329 |
| **Nonutility plant:** |  |  |  |
| &nbsp;&nbsp;&nbsp;LNG facility | 40 years | 4567 | 4565 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization |  | (869) | (779) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonutility plant, net |  | 3698 | 3786 |
|  |  | 10055 | 10115 |
| Construction work-in-progress |  | 301 | 223 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $10356 | $10338 |

---

Construction work-in-progress includes $283 million and $213 million as of September 30, 2025, and December 31, 2024, respectively, related to the construction of utility plant.

------

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Investments and Restricted Cash and Cash Equivalents**

Investments and restricted cash and cash equivalents consists of the following (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Investments:** |  |  |
| &nbsp;&nbsp;Investment funds | $11 | $18 |
| **Equity method investments:** |  |  |
| &nbsp;&nbsp;Iroquois | 245 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 256 | 261 |
| **Restricted cash and cash equivalents:** |  |  |
| &nbsp;&nbsp;&nbsp;Customer deposits | 31 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total restricted cash and cash equivalents | 31 | 27 |
| Total investments and restricted cash and cash equivalents | $287 | $288 |
| **Reflected as:** |  |  |
| &nbsp;&nbsp;&nbsp;Other current assets | $31 | $27 |
| &nbsp;&nbsp;&nbsp;Noncurrent assets | 256 | 261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments and restricted cash and cash equivalents | $287 | $288 |

---

*Equity Method Investments*

Eastern Energy Gas, through subsidiaries, holds 50% of Iroquois, which owns and operates an interstate natural gas transmission system located in the states of New York and Connecticut.

As of September 30, 2025, and December 31, 2024, the carrying amount of Eastern Energy Gas' investments exceeded its share of underlying equity in net assets by $130 million. The difference reflects equity method goodwill and is not being amortized. Eastern Energy Gas received distributions from its investments of $36 million and $75 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

*Cash and Cash Equivalents and Restricted Cash and Cash Equivalents*

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist of customer deposits as allowed under the FERC gas tariffs. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $105 | $34 |
| Restricted cash and cash equivalents included in other current assets | 31 | 27 |
| Total cash and cash equivalents and restricted cash and cash equivalents | $136 | $61 |

---

------

**(5)&nbsp;&nbsp;&nbsp;&nbsp;Recent Financing Transactions**

In January 2025, Eastern Energy Gas issued $700 million of 5.80% Senior Notes due January 2035 and $500 million of 6.20% Senior Notes due January 2055. Eastern Energy Gas used the net proceeds from the sale of the notes to rebalance its capitalization structure by returning a portion of the equity capital received from its indirect parent, BHE.

**(6)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| State income tax, net of federal income tax impacts | 1 | 2 | 2 | 3 |
| Equity earnings | 1 | 1 | 1 | 2 |
| Noncontrolling interest | (4) | (3) | (4) | (3) |
| Other, net |  |  |  | (1) |
| Effective income tax rate | 19% | 21% | 20% | 22% |

---

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Eastern Energy Gas' provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For current federal and state income taxes, Eastern Energy Gas had a receivable from BHE of $6 million as of September 30, 2025, and a payable to BHE of $188 million as of December 31, 2024. The change is primarily due to the settlement of the income tax payable balance through non-cash contributions in 2025.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

Eastern Energy Gas is a participant in benefit plans sponsored by MidAmerican Energy Company ("MidAmerican Energy"), an affiliate. The MidAmerican Energy Company Retirement Plan includes a qualified pension plan that provides pension benefits for eligible employees. The MidAmerican Energy Company Welfare Benefit Plan provides certain postretirement health care and life insurance benefits for eligible retirees on behalf of Eastern Energy Gas. Eastern Energy Gas contributed $4 million and $6 million to the MidAmerican Energy Company Retirement Plan for the nine-month periods ended September 30, 2025 and 2024, respectively, and $1 million to the MidAmerican Energy Company Welfare Benefit Plan for the nine-month period ended September 30, 2024. Contributions related to these plans are reflected as net periodic benefit cost in operations and maintenance expense on the Consolidated Statements of Operations. Amounts attributable to Eastern Energy Gas were allocated from MidAmerican Energy in accordance with the intercompany administrative service agreement. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net. As of September 30, 2025, and December 31, 2024, Eastern Energy Gas' amount due to MidAmerican Energy associated with these plans and included in other long-term liabilities on the Consolidated Balance Sheets was $40 million and $39 million, respectively.

------

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

The carrying value of Eastern Energy Gas' cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. Eastern Energy Gas has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that Eastern Energy Gas has the ability to access at the measurement date.

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

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

The following table presents Eastern Energy Gas' financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | |
| **Assets:** | | | | |
| Foreign currency exchange rate derivatives | $— | $12 | $— | $12 |
| Money market mutual funds | 105 |  |  | 105 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;Investment funds | 11 |  |  | 11 |
|  | $116 | $12 | $— | $128 |
| **<u>As of December 31, 2024:</u>** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Money market mutual funds | $34 | $— | $— | $34 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;Investment funds | 18 |  |  | 18 |
|  | $52 | $— | $— | $52 |
| **Liabilities:** |  |  |  |  |
| Foreign currency exchange rate derivatives | $— | $(23) | $— | $(23) |

---

Eastern Energy Gas' investments in money market mutual funds and investment funds are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value.

------

Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchase or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which Eastern Energy Gas transacts. When quoted prices for identical contracts are not available, Eastern Energy Gas uses forward price curves. Forward price curves represent Eastern Energy Gas' estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. Eastern Energy Gas bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent brokers, exchanges, direct communication with market participants and actual transactions executed by Eastern Energy Gas. Market price quotations are generally readily obtainable for the applicable term of Eastern Energy Gas' outstanding derivative contracts; therefore, Eastern Energy Gas' forward price curves reflect observable market quotes. Market price quotations for certain natural gas trading hubs are not as readily obtainable due to the length of the contracts. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, Eastern Energy Gas uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, interest rates, currency rates, related volatility, counterparty creditworthiness and duration of contracts.

Eastern Energy Gas' long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of Eastern Energy Gas' long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The following table presents the carrying value and estimated fair value of Eastern Energy Gas' long-term debt (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
| Long-term debt | $4454 | $4310 | $3231 | $2919 |

---

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Environmental Laws and Regulations*

Eastern Energy Gas is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality and other environmental matters that have the potential to impact its current and future operations. Eastern Energy Gas believes it is in material compliance with all applicable laws and regulations.

*Legal Matters*

Eastern Energy Gas is party to a variety of legal actions arising out of the normal course of business. Eastern Energy Gas does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.

------

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

The following table summarizes Eastern Energy Gas' revenue from contracts with customers ("Customer Revenue") by regulated and nonregulated, with further disaggregation of regulated by line of business (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Customer Revenue: |  |  |  |  |
| &nbsp;&nbsp;Regulated: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas transmission and storage | $284 | $274 | $901 | $883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 1 | 7 | 2 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  | 1 |
| &nbsp;&nbsp;Total regulated | 285 | 281 | 903 | 891 |
| &nbsp;&nbsp;Nonregulated | 192 | 182 | 658 | 602 |
| Total Customer Revenue | 477 | 463 | 1561 | 1493 |
| Other revenue<sup>(1)</sup> | 1 |  | 2 |  |
| Total operating revenue | $478 | $463 | $1563 | $1493 |

---

(1)Other revenue consists primarily of revenue recognized in accordance with Accounting Standards Codification 815, "Derivative and Hedging" which includes unrealized gains and losses for derivatives not designated as hedges related to natural gas sales contracts, contingent fees from certain farmout agreements recognized in accordance with ASC 450, "Contingencies" and the royalties from the conveyance of mineral rights accounted for under Accounting Standards Codification 932, "Extractive Activities – Oil and Gas".

Eastern Energy Gas has recognized contract liabilities of $28 million and $40 million as of September 30, 2025, and December 31, 2024, respectively, due to the relationship between Eastern Energy Gas' performance and the customer's payment. Eastern Energy Gas recognizes revenue as it fulfills its obligations to provide services to its customers. During each of the nine-month periods ended September 30, 2025 and 2024, Eastern Energy Gas recognized revenue of $13 million from the beginning contract liability balances.

*Remaining Performance Obligations*

The following table summarizes Eastern Energy Gas' revenue it expects to recognize in future periods related to significant unsatisfied remaining performance obligations for fixed contracts with expected durations in excess of one year as of September 30, 2025 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Performance obligations expected to be satisfied:** | **Performance obligations expected to be satisfied:** | |
| | **Less than 12 months** | **More than 12 months** |<br>**Total** |
| Eastern Energy Gas | $1769 | $13373 | $15142 |

---

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**(11)&nbsp;&nbsp;&nbsp;&nbsp;Components of Accumulated Other Comprehensive Loss, Net**

The following table shows the change in accumulated other comprehensive loss by each component of other comprehensive income (loss), net of applicable income tax (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Unrecognized**<br>**Amounts On**<br>**Retirement**<br>**Benefits** |<br>**Unrealized**<br>**Losses on Cash**<br>**Flow Hedges** |<br>**Noncontrolling**<br>**Interests** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |
| **Balance, December 31, 2023** | $(3) | $(38) | $1 | $(40) |
| Other comprehensive income | 1 | 1 |  | 2 |
| **Balance, September 30, 2024** | $(2) | $(37) | $1 | $(38) |
| **Balance, December 31, 2024** | $(2) | $(34) | $1 | $(35) |
| Other comprehensive income | 1 | 3 |  | 4 |
| **Balance, September 30, 2025** | $(1) | $(31) | $1 | $(31) |

---

------

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

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of Eastern Energy Gas during the periods included herein. This discussion should be read in conjunction with Eastern Energy Gas' historical Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. Eastern Energy Gas' actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024**

<u>Overview</u>

Net income attributable to Eastern Energy Gas for the third quarter of 2025 was $107 million, a decrease of $7 million, compared to 2024. Net income decreased primarily due to an increase in interest expense, partially offset by higher margin from regulated gas transmission and storage operations of $15 million.

Net income attributable to Eastern Energy Gas for the first nine months of 2025 was $437 million, a decrease of $16 million, compared to 2024. Net income decreased primarily due to an increase in interest expense and a decrease in equity income, partially offset by higher margin from regulated gas transmission and storage operations of $28 million and higher earnings from Cove Point of $21 million, largely due to an increase in variable revenue.

<u>Quarter Ended September 30, 2025, Compared to Quarter Ended September 30, 2024</u>

*Operating revenue* increased $15 million, or 3%, for the third quarter of 2025 compared to 2024, primarily due to an increase in Cove Point LNG variable revenue of $8 million, an increase in regulated gas transmission and storage services revenues primarily due to additional capacity contracts of $8 million, an increase in services provided to affiliates of $3 million and an increase in variable revenue related to park and loan activity of $2 million, partially offset by a decrease in regulated gas sales for operational and system balancing purposes primarily due to decreased volumes of $6 million.

*Cost of gas* decreased $7 million, or 88%, for the third quarter of 2025 compared to 2024, primarily due to a decrease in volumes sold.

*Operations and maintenance* increased $9 million, or 6%, for the third quarter of 2025 compared to 2024, primarily due to higher plant operations and maintenance costs of $8 million and an increase in services provided to affiliates of $3 million, partially offset by lower salary and benefit expenses of $4 million.

*Interest expense, net* increased $25 million, or 83%, for the third quarter of 2025 compared to 2024, primarily due to the issuances of $1.2 billion of long-term debt in the first quarter of 2025 of $18 million and higher interest rates on $1.0 billion of long-term debt refinanced during 2024 of $7 million.

*Interest and dividend income* increased $4 million for the third quarter of 2025 compared to 2024, primarily due to interest income from higher outstanding loans under BHE GT&S' intercompany revolving credit agreement.

*Income tax expense* decreased $6 million, or 17%, for the third quarter of 2025 compared to 2024 and the effective tax rate was 19% for 2025 and 21% for 2024. The effective tax rate decreased primarily due to various changes in the state effective rate.

<u>First Nine Months of 2025 Compared to First Nine Months of 2024</u>

*Operating revenue* increased $70 million, or 5%, for the first nine months of 2025 compared to 2024, primarily due to an increase in Cove Point LNG variable revenue of $51 million, an increase in CGT's regulated gas transmission service revenues of $16 million primarily due to additional capacity contracts of $9 million and the settlement of its general rate case of $8 million, an increase in EGTS' regulated gas transmission and storage services revenues primarily due to additional capacity contracts of $16 million and an increase in services provided to affiliates of $3 million, partially offset by a decrease in Cove Point's storage-related service revenues of $7 million, a decrease in variable revenue related to park and loan activity of $5 million and a decrease in regulated gas sales for operational and system balancing purposes primarily due to decreased volumes of $5 million.

*Cost of gas* decreased $4 million, or 67%, for the first nine months of 2025 compared to 2024, primarily due to a decrease in volumes sold.

------

*Operations and maintenance* increased $6 million, or 1%, for the first nine months of 2025 compared to 2024, primarily due to an increase in services provided to affiliates of $3 million and an increase in charges from affiliates of $1 million.

*Depreciation and amortization* increased $11 million, or 4%, for the first nine months of 2025 compared to 2024, primarily due to higher plant placed in service of $8 million and the settlement of deprecation rates in CGT's general rate case of $3 million.

*Interest expense, net* increased $65 million, or 66%, for the first nine months of 2025 compared to 2024, primarily due to the issuances of $1.2 billion of long-term debt in the first quarter of 2025 of $50 million and higher interest rates on $1.0 billion of long-term debt refinanced during 2024 of $21 million, partially offset by lower lending activity under BHE GT&S' intercompany revolving credit agreement of $8 million.

*Interest and dividend income* increased $7 million for the first nine months of 2025 compared to 2024, primarily due to interest income from higher outstanding loans under BHE GT&S' intercompany revolving credit agreement.

*Income tax expense* decreased $15 million, or 11%, for the first nine months of 2025 compared to 2024 and the effective tax rate was 20% for 2025 and 22% for 2024. The effective tax rate decreased primarily due to various changes in the state effective rate and lower equity earnings from Iroquois.

*Equity income* decreased $19 million, or 35%, for the first nine months of 2025 compared to 2024, primarily due to lower variable revenues at Iroquois, largely from unfavorable pricing.

*Net income attributable to noncontrolling interests* increased $9 million, or 9%, for the first nine months of 2025 compared to 2024, primarily due to higher net income attributable to Cove Point.

**Liquidity and Capital Resources**

As of September 30, 2025, Eastern Energy Gas' total net liquidity was as follows (in millions):

---

| | |
|:---|:---|
| Cash and cash equivalents | $105 |
| Intercompany revolving credit agreement | 400 |
| &nbsp;&nbsp;Total net liquidity | $505 |
| Intercompany revolving credit agreement: |  |
| &nbsp;&nbsp;&nbsp;Maturity date | 2026 |

---

Eastern Energy Gas' future financial performance and capital expenditures related to certain projects may be affected by the combined effects of ongoing macroeconomic and geopolitical conditions, including changes in international trade policies and tariff regimes. The pace of change in these areas has accelerated during 2025, and significant uncertainty persists regarding the scope and duration of these external factors. Accordingly, Eastern Energy Gas is unable to estimate their impact on its business at this time.

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024 were $967 million and $1.0 billion, respectively. The change is primarily due to lower distributions from Iroquois, the timing of the Cove Point's payment in lieu of taxes program and higher cash paid for interest, partially offset by the timing of payments for operating costs and other working capital adjustments.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024 were $(762) million and $(240) million, respectively. The change is primarily due to an increase in notes issued to its parent under an intercompany revolving credit agreement of $530 million and an increase in capital expenditures of $1 million, partially offset by an increase in proceeds from sales of marketable securities of $5 million and an increase the repayment of notes by its parent under an intercompany revolving credit agreement of $5 million.

------

<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month period ended September 30, 2025 were $(130) million. Sources of cash totaled $1.2 billion and consisted of proceeds from the issuance of long-term debt. Uses of cash totaled $1.3 billion and consisted of distributions to its indirect parent, BHE, of $1.2 billion and distributions to noncontrolling interests from Cove Point of $128 million.

Net cash flows from financing activities for the nine-month period ended September 30, 2024 were $(749) million and consisted of net repayment of notes payable to affiliates of $400 million, distributions to its indirect parent, BHE, of $226 million and distributions to noncontrolling interests from Cove Point of $123 million.

*Long-term debt*

Eastern Energy Gas currently has an effective shelf registration statement filed with the SEC to issue an additional $400 million of long-term debt securities through January 2027.

<u>Future Uses of Cash</u>

Eastern Energy Gas has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, intercompany revolving credit agreements, capital contributions and other sources. These sources are expected to provide funds required for current operations, capital expenditures, investments, debt retirements and other capital requirements. The availability and terms under which Eastern Energy Gas and each subsidiary has access to external financing depends on a variety of factors, including regulatory approvals, Eastern Energy Gas' credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the natural gas transmission and storage and LNG export, import and storage industries.

*Capital Expenditures*

Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, new growth projects and the timing of growth projects; changes in environmental and other rules and regulations; impacts to customer rates; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital.

Eastern Energy Gas' historical and forecasted capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items, are as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| Natural gas transmission and storage | $41 | $45 | $65 |
| Other | 203 | 200 | 295 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $244 | $245 | $360 |

---

Natural gas transmission and storage primarily includes growth capital expenditures related to planned regulated projects. Other includes primarily nonregulated and routine capital expenditures for natural gas transmission, storage and LNG terminalling infrastructure needed to serve existing and expected demand.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes in cash requirements from the information provided in Item 7 of Eastern Energy Gas' Annual Report on Form 10-K for the year ended December 31, 2024, other than those disclosed in Note 5 of the Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

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**Regulatory Matters**

Eastern Energy Gas is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding Eastern Energy Gas' current regulatory matters.

**Environmental Laws and Regulations**

Eastern Energy Gas is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality and other environmental matters that have the potential to impact its current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. Eastern Energy Gas believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and Eastern Energy Gas is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of goodwill and long-lived assets and income taxes. For additional discussion of Eastern Energy Gas' critical accounting estimates, see Item 7 of Eastern Energy Gas' Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in Eastern Energy Gas' assumptions regarding critical accounting estimates since December 31, 2024.

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**Eastern Gas Transmission and Storage, Inc. and its subsidiaries**

**Consolidated Financial Section**

------

**PART I**

**Item 1. Financial Statements**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of

Eastern Gas Transmission and Storage, Inc.

**Results of Review of Interim Financial Information**

We have reviewed the accompanying consolidated balance sheet of Eastern Gas Transmission and Storage, Inc. and subsidiaries ("EGTS") as of September 30, 2025, the related consolidated statements of operations, comprehensive income, and changes in shareholder's equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of EGTS as of December 31, 2024, and the related consolidated statements of operations, comprehensive income, changes in shareholder's equity, and cash flows for the year then ended (not presented herein); and in our report dated February 21, 2025 we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of EGTS' management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to EGTS in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

Richmond, Virginia

October 31, 2025

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $35 | $8 |
| &nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents | 27 | 24 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 74 | 93 |
| &nbsp;&nbsp;&nbsp;Receivables from affiliates | 28 | 17 |
| &nbsp;&nbsp;Notes receivable from affiliates | 143 |  |
| &nbsp;&nbsp;&nbsp;Inventories | 58 | 55 |
| &nbsp;&nbsp;&nbsp;Prepayments and other deferred charges | 29 | 28 |
| &nbsp;&nbsp;&nbsp;Natural gas imbalances | 29 | 72 |
| &nbsp;&nbsp;&nbsp;Other current assets | 12 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 435 | 307 |
| Property, plant and equipment, net | 4878 | 4771 |
| Other assets | 66 | 73 |
| **Total assets** | $5379 | $5151 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)**

(Amounts in millions, except share data)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** | **LIABILITIES AND SHAREHOLDER'S EQUITY** |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $42 | $55 |
| &nbsp;&nbsp;&nbsp;Accounts payable to affiliates | 30 | 27 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 24 | 7 |
| &nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | 63 | 68 |
| &nbsp;&nbsp;Accrued employee expenses | 34 | 18 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 15 | 13 |
| &nbsp;&nbsp;Customer deposits | 27 | 24 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 12 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 247 | 230 |
| Long-term debt | 1623 | 1622 |
| Regulatory liabilities | 518 | 527 |
| Deferred income taxes | 141 | 85 |
| Other long-term liabilities | 81 | 81 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 2610 | 2545 |
| Commitments and contingencies (Note 8) |  |  |
| **Shareholder's equity:** |  |  |
| &nbsp;&nbsp;Common stock - 75,000 shares authorized, $10,000 par value, 60,101 issued and outstanding | 609 | 609 |
| &nbsp;&nbsp;Additional paid-in capital | 1377 | 1352 |
| &nbsp;&nbsp;Retained earnings | 807 | 671 |
| &nbsp;&nbsp;Accumulated other comprehensive loss, net | (24) | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholder's equity | 2769 | 2606 |
| **Total liabilities and shareholder's equity** | $5379 | $5151 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenue** | $237 | $233 | $741 | $733 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;Cost of gas | 1 | 8 | 2 | 6 |
| &nbsp;&nbsp;Operations and maintenance | 102 | 98 | 286 | 280 |
| &nbsp;&nbsp;Depreciation and amortization | 40 | 39 | 120 | 116 |
| &nbsp;&nbsp;Property and other taxes | 15 | 14 | 44 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 158 | 159 | 452 | 444 |
| **Operating income** | 79 | 74 | 289 | 289 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;Interest expense, net | (17) | (16) | (52) | (50) |
| &nbsp;&nbsp;Allowance for equity funds | 3 | 2 | 7 | 5 |
| &nbsp;&nbsp;Other, net | 3 | 2 | 8 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (11) | (12) | (37) | (41) |
| **Income before income tax expense (benefit)** | 68 | 62 | 252 | 248 |
| &nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 17 | 15 | 63 | 63 |
| **Net income** | $51 | $47 | $189 | $185 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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 **EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)**

(Amounts in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income | $51 | $47 | $189 | $185 |
| Other comprehensive income, net of tax: |  |  |  |  |
| &nbsp;&nbsp;Unrealized gains on cash flow hedges, net of tax of $1, $—, $1 and $— | 1 |  | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income, net of tax | 1 |  | 2 | 1 |
| Comprehensive income | $52 | $47 | $191 | $186 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited)**

(Amounts in millions, except shares)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss, Net** |<br>**Total**<br>**Shareholder's**<br>**Equity** |
| **Balance, June 30, 2024** | 60101 | $609 | $1339 | $664 | $(27) | $2585 |
| Net income |  |  |  | 47 |  | 47 |
| Dividends declared |  |  |  | (9) |  | (9) |
| **Balance, September 30, 2024** | 60101 | $609 | $1339 | $702 | $(27) | $2623 |
| **Balance, December 31, 2023** | 60101 | $609 | $1304 | $803 | $(28) | $2688 |
| Net income |  |  |  | 185 |  | 185 |
| Other comprehensive income |  |  |  |  | 1 | 1 |
| Dividends declared |  |  |  | (286) |  | (286) |
| Contributions |  |  | 35 |  |  | 35 |
| **Balance, September 30, 2024** | 60101 | $609 | $1339 | $702 | $(27) | $2623 |
| **Balance, June 30, 2025** | 60101 | $609 | $1376 | $809 | $(25) | $2769 |
| Net income |  |  |  | 51 |  | 51 |
| Other comprehensive income |  |  |  |  | 1 | 1 |
| Dividends declared |  |  |  | (53) |  | (53) |
| Contributions |  |  | 1 |  |  | 1 |
| **Balance, September 30, 2025** | 60101 | $609 | $1377 | $807 | $(24) | $2769 |
| **Balance, December 31, 2024** | 60101 | $609 | $1352 | $671 | $(26) | $2606 |
| Net income |  |  |  | 189 |  | 189 |
| Other comprehensive income |  |  |  |  | 2 | 2 |
| Dividends declared |  |  |  | (53) |  | (53) |
| Contributions |  |  | 25 |  |  | 25 |
| **Balance, September 30, 2025** | 60101 | $609 | $1377 | $807 | $(24) | $2769 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

(Amounts in millions)

---

| | | |
|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $189 | $185 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on other items, net |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 120 | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds | (7) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in regulatory assets and liabilities | (6) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 53 | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables and other assets | 34 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables from affiliates | (11) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas balancing activities | 4 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property, income and other taxes | (16) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable to affiliates | 3 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 28 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from operating activities | 390 | 391 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;Capital expenditures | (188) | (154) |
| &nbsp;&nbsp;Proceeds from sales of marketable securities | 8 | 3 |
| &nbsp;&nbsp;Notes to affiliates | (153) |  |
| &nbsp;&nbsp;Repayment of notes by affiliates | 10 |  |
| &nbsp;&nbsp;Other, net |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities | (323) | (150) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable to affiliates, net |  | (2) |
| &nbsp;&nbsp;&nbsp;Dividends paid | (37) | (215) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from financing activities | (37) | (217) |
| **Net change in cash and cash equivalents and restricted cash and cash equivalents** | 30 | 24 |
| **Cash and cash equivalents and restricted cash and cash equivalents at beginning of period** | 32 | 34 |
| **Cash and cash equivalents and restricted cash and cash equivalents at end of period** | $62 | $58 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**EASTERN GAS TRANSMISSION AND STORAGE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;General** 

Eastern Gas Transmission and Storage, Inc. and its subsidiaries ("EGTS") conduct business activities consisting of Federal Energy Regulatory Commission ("FERC")-regulated interstate natural gas transmission systems and underground storage. EGTS' operations include transmission assets located in Maryland, New York, Ohio, Pennsylvania, Virginia and West Virginia. EGTS also operates one of the nation's largest underground natural gas storage systems located in New York, Pennsylvania and West Virginia. EGTS is a wholly owned subsidiary of Eastern Energy Gas Holdings, LLC ("Eastern Energy Gas"), which is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company headquartered in Iowa that has investments in subsidiaries principally engaged in energy businesses. BHE is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of September 30, 2025, and for the three- and nine-month periods ended September 30, 2025 and 2024. The results of operations for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year.

The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in EGTS' Annual Report on Form 10-K for the year ended December 31, 2024, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in EGTS' accounting policies or its assumptions regarding significant accounting estimates during the nine-month period ended September 30, 2025.

*Segment Information*

EGTS currently has one reportable segment, which includes its natural gas transmission and storage operations. EGTS' chief operating decision maker ("CODM") is the BHE Pipeline Group (which consists primarily of BHE GT&S, LLC, Northern Natural Gas Company and Kern River Gas Transmission Company) President and Chief Executive Officer. The CODM uses net income, as reported on the Consolidated Statements of Operations, and generally considers actual results versus historical results, budgets or forecast, as well as unique risks and opportunities, when making decisions about the allocation of resources and capital. The segment expenses regularly provided to the CODM align with the captions presented on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes Topic 740, "Income Tax—Improvements to Income Tax Disclosures" which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. EGTS is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

------

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures Subtopic 220-40, "Disaggregation of Income Statement Expenses" which addresses requests from investors for more detailed information about certain expenses and requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption presented on the income statement. This guidance, as clarified in ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. EGTS is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant and Equipment, Net**

Property, plant and equipment, net consists of the following (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **As of** | **As of** |
| |<br>**Depreciable Life** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Interstate natural gas transmission assets | 47 - 51 years | $5179 | $5093 |
| Storage assets | 47 - 51 years | 1837 | 1803 |
| Intangible plant and other assets | 12 - 53 years | 404 | 386 |
| &nbsp;&nbsp;Plant in-service |  | 7420 | 7282 |
| Accumulated depreciation and amortization |  | (2791) | (2699) |
|  |  | 4629 | 4583 |
| Construction work-in-progress |  | 249 | 188 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net |  | $4878 | $4771 |

---

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Investments and Restricted Cash and Cash Equivalents**

Investments and restricted cash and cash equivalents consists of the following (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Investments:** |  |  |
| &nbsp;&nbsp;Investment funds | $11 | $18 |
| **Restricted cash and cash equivalents:** |  |  |
| &nbsp;&nbsp;&nbsp;Customer deposits | 27 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total restricted cash and cash equivalents | 27 | 24 |
| Total investments and restricted cash and cash equivalents | $38 | $42 |
| **Reflected as:** |  |  |
| &nbsp;&nbsp;&nbsp;Current assets | $27 | $24 |
| &nbsp;&nbsp;&nbsp;Other assets | 11 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments and restricted cash and cash equivalents | $38 | $42 |

---

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*Cash and Cash Equivalents and Restricted Cash and Cash Equivalents*

Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist of customer deposits as allowed under the FERC gas tariff. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented on the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cash and cash equivalents | $35 | $8 |
| Restricted cash and cash equivalents | 27 | 24 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents | $62 | $32 |

---

**(5)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Federal statutory income tax rate | 21% | 21% | 21% | 21% |
| State income tax, net of federal income tax impacts | 4 | 4 | 4 | 4 |
| Effects of ratemaking | (1) | (1) | (1) |  |
| Other, net | 1 |  | 1 |  |
| Effective income tax rate | 25% | 24% | 25% | 25% |

---

**(6)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans** 

EGTS is a participant in benefit plans sponsored by MidAmerican Energy Company ("MidAmerican Energy"), an affiliate. The MidAmerican Energy Company Retirement Plan includes a qualified pension plan that provides pension benefits for eligible employees. The MidAmerican Energy Company Welfare Benefit Plan provides certain postretirement health care and life insurance benefits for eligible retirees on behalf of EGTS. EGTS contributed $4 million and $5 million to the MidAmerican Energy Company Retirement Plan for the nine-month periods ended September 30, 2025 and 2024, respectively, and $1 million to the MidAmerican Energy Company Welfare Benefit Plan for the nine-month period ended September 30, 2024. Contributions related to these plans are reflected as net periodic benefit cost in operations and maintenance expense on the Consolidated Statements of Operations. Amounts attributable to EGTS were allocated from MidAmerican Energy in accordance with the intercompany administrative service agreement. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. As of September 30, 2025, and December 31, 2024, EGTS' amount due to MidAmerican Energy associated with these plans and included in other long-term liabilities on the Consolidated Balance Sheets was $35 million.

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**(7)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

The carrying value of EGTS' cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. EGTS has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that EGTS has the ability to access at the measurement date.

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

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

The following table presents EGTS' financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | **Input Levels for Fair Value Measurements** | |
| | **Level 1** | **Level 2** | **Level 3** |<br>**Total** |
| **<u>As of September 30, 2025:</u>** | | | | |
| **Assets:** | | | | |
| Money market mutual funds | $35 | $— | $— | $35 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;Investment funds | 11 |  |  | 11 |
|  | $46 | $— | $— | $46 |
| **<u>As of December 31, 2024:</u>** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Money market mutual funds | $8 | $— | $— | $8 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;Investment funds | 18 |  |  | 18 |
|  | $26 | $— | $— | $26 |

---

EGTS' investments in money market mutual funds and investment funds are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value.

Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchase or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which EGTS transacts. When quoted prices for identical contracts are not available, EGTS uses forward price curves. Forward price curves represent EGTS' estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. EGTS bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent brokers, exchanges, direct communication with market participants and actual transactions executed by EGTS. Market price quotations are generally readily obtainable for the applicable term of EGTS' outstanding derivative contracts; therefore, EGTS' forward price curves reflect observable market quotes. Market price quotations for certain natural gas trading hubs are not as readily obtainable due to the length of the contracts. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, EGTS uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, related volatility, counterparty creditworthiness and duration of contracts.

------

EGTS' long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of EGTS' long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The following table presents the carrying value and estimated fair value of EGTS' long-term debt (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Carrying<br>Value** | **Fair<br>Value** | **Carrying<br>Value** | **Fair<br>Value** |
| Long-term debt | $1623 | $1453 | $1622 | $1409 |

---

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Environmental Laws and Regulations*

EGTS is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality and other environmental matters that have the potential to impact its current and future operations. EGTS believes it is in material compliance with all applicable laws and regulations.

*Legal Matters*

EGTS is party to a variety of legal actions arising out of the normal course of business. EGTS does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.

**(9)&nbsp;&nbsp;&nbsp;&nbsp;Revenue from Contracts with Customers**

The following table summarizes EGTS' revenue from contracts with customers ("Customer Revenue") by regulated and other, with further disaggregation of regulated by line of business (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three-Month Periods** | **Three-Month Periods** | **Nine-Month Periods** | **Nine-Month Periods** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Customer Revenue: |  |  |  |  |
| &nbsp;&nbsp;Regulated: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas transmission | $148 | $142 | $484 | $475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas storage | 70 | 69 | 212 | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 1 | 7 | 2 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total regulated | 219 | 218 | 698 | 693 |
| &nbsp;&nbsp;Management service and other revenues | 17 | 15 | 41 | 40 |
| Total Customer Revenue | 236 | 233 | 739 | 733 |
| Other revenue<sup>(1)</sup> | 1 |  | 2 |  |
| Total operating revenue | $237 | $233 | $741 | $733 |

---

(1)Other revenue consists primarily of revenue recognized in accordance with Accounting Standards Codification 815, "Derivative and Hedging" which includes unrealized gains and losses for derivatives not designated as hedges related to natural gas sales contracts, contingent fees from certain farmout agreements recognized in accordance with ASC 450, "Contingencies" and the royalties from the conveyance of mineral rights accounted for under Accounting Standards Codification 932, "Extractive Activities – Oil and Gas".

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*Remaining Performance Obligations*

The following table summarizes EGTS' revenue it expects to recognize in future periods related to significant unsatisfied remaining performance obligations for fixed contracts with expected durations in excess of one year as of September 30, 2025 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Performance obligations expected to be satisfied:** | **Performance obligations expected to be satisfied:** | |
| | **Less than 12 months** | **More than 12 months** |<br>**Total** |
| EGTS | $827 | $3131 | $3958 |

---

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

The following is management's discussion and analysis of certain significant factors that have affected the consolidated financial condition and results of operations of EGTS during the periods included herein. This discussion should be read in conjunction with EGTS' historical Consolidated Financial Statements and Notes to Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q. EGTS' actual results in the future could differ significantly from the historical results.

**Results of Operations for the Third Quarter and First Nine Months of 2025 and 2024**

<u>Overview</u>

Net income for the third quarter of 2025 was $51 million, an increase of $4 million, compared to 2024. Net income increased primarily due to higher margin from regulated gas transmission and storage operations of $11 million, partially offset by higher operations and maintenance expense.

Net income for the first nine months of 2025 was $189 million, an increase of $4 million, compared to 2024. Net income increased primarily due to higher margin from regulated gas transmission and storage operations of $12 million, partially offset by higher operations and maintenance expense.

<u>Quarter Ended September 30, 2025, Compared to Quarter Ended September 30, 2024</u>

*Operating revenue* increased $4 million, or 2%, for the third quarter of 2025 compared to 2024, primarily due to an increase in regulated gas transmission and storage services revenues primarily due to additional capacity contracts of $5 million, an increase in variable revenue related to park and loan activity of $2 million and an increase in services provided to affiliates of $2 million, partially offset by a decrease in regulated gas sales for operational and system balancing purposes primarily due to decreased volumes of $6 million.

*Cost of gas* decreased $7 million, or 88%, for the third quarter of 2025 compared to 2024, primarily due to a decrease in volumes sold.

*Operations and maintenance* increased $4 million, or 4%, for the third quarter of 2025 compared to 2024, primarily due to higher plant operations and maintenance costs of $5 million and an increase in services provided to affiliates of $2 million, partially offset by lower salary and benefit expenses of $5 million.

*Income tax expense* increased $2 million, or 13%, for the third quarter of 2025 compared to 2024 and the effective tax rate was 25% for 2025 and 24% for 2024.

<u>First Nine Months of 2025 Compared to First Nine Months of 2024</u>

*Operating revenue* increased $8 million, or 1%, for the first nine months of 2025 compared to 2024, primarily due to an increase in regulated gas transmission and storage services revenues primarily due to additional capacity contracts of $16 million, partially offset by a decrease in variable revenue related to park and loan activity of $5 million and a decrease in regulated gas sales for operational and system balancing purposes primarily due to decreased volumes of $5 million.

*Cost of gas* decreased $4 million, or 67%, for the first nine months of 2025 compared to 2024, primarily due to a decrease in volumes sold.

*Operations and maintenance* increased $6 million, or 2%, for the first nine months of 2025 compared to 2024, primarily due to an increase in charges from affiliates.

*Income tax expense* was flat for the first nine months of 2025 compared to 2024 and the effective tax rate was 25% for 2025 and 2024.

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**Liquidity and Capital Resources**

As of September 30, 2025, EGTS' total net liquidity was as follows (in millions):

---

| | |
|:---|:---|
| Cash and cash equivalents | $35 |
| Intercompany revolving credit agreement | 400 |
| &nbsp;&nbsp;Total net liquidity | $435 |
| Intercompany revolving credit agreement: |  |
| &nbsp;&nbsp;&nbsp;Maturity date | 2026 |

---

EGTS' future financial performance and capital expenditures related to certain projects may be affected by the combined effects of ongoing macroeconomic and geopolitical conditions, including changes in international trade policies and tariff regimes. The pace of change in these areas has accelerated during 2025, and significant uncertainty persists regarding the scope and duration of these external factors. Accordingly, EGTS is unable to estimate their impact on its business at this time.

<u>Operating Activities</u>

Net cash flows from operating activities for the nine-month periods ended September 30, 2025 and 2024 were $390 million and $391 million, respectively. The change is primarily due to lower collections from customers, partially offset by other working capital adjustments.

<u>Investing Activities</u>

Net cash flows from investing activities for the nine-month periods ended September 30, 2025 and 2024 were $(323) million and $(150) million, respectively. The change is primarily due to an increase in notes issued to Eastern Energy Gas under an intercompany revolving credit agreement of $153 million and an increase in capital expenditures of $34 million, partially offset by an increase the repayment of notes by Eastern Energy Gas under an intercompany revolving credit agreement of $10 million and an increase in proceeds from sales of marketable securities of $5 million.

<u>Financing Activities</u>

Net cash flows from financing activities for the nine-month period ended September 30, 2025 were $(37) million and consisted of dividends paid to Eastern Energy Gas.

Net cash flows from financing activities for the nine-month period ended September 30, 2024 were $(217) million and consisted of dividends paid to Eastern Energy Gas of $215 million and the net repayment of notes payable to Eastern Energy Gas of $2 million.

<u>Future Uses of Cash</u>

EGTS has available a variety of sources of liquidity and capital resources, both internal and external, including net cash flows from operating activities, public and private debt offerings, intercompany revolving credit agreements, capital contributions and other sources. These sources are expected to provide funds required for current operations, capital expenditures, investments, debt retirements and other capital requirements. The availability and terms under which EGTS has access to external financing depends on a variety of factors, including regulatory approvals, EGTS' credit ratings, investors' judgment of risk and conditions in the overall capital markets, including the condition of the natural gas transmission and storage industry.

*Capital Expenditures*

Capital expenditure needs are reviewed regularly by management and may change significantly as a result of these reviews, which may consider, among other factors, new growth projects and the timing of growth projects; changes in environmental and other rules and regulations; impacts to customer rates; outcomes of regulatory proceedings; changes in income tax laws; general business conditions; system reliability standards; the cost and efficiency of construction labor, equipment and materials; commodity prices; and the cost and availability of capital.

------

EGTS' historical and forecasted capital expenditures, each of which exclude amounts for non-cash equity AFUDC and other non-cash items, are as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Nine-Month Periods** | **Nine-Month Periods** | |
| | **Ended September 30,** | **Ended September 30,** | |
| | **2024** | **2025** | **Annual**<br>**Forecast**<br>**2025** |
| Natural gas transmission and storage | $17 | $40 | $56 |
| Other | 137 | 148 | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $154 | $188 | $285 |

---

Natural gas transmission and storage includes primarily growth capital expenditures related to planned regulated projects. Other includes primarily pipeline integrity work, automation and controls upgrades, underground storage, corrosion control, unit exchanges, compressor modifications and projects related to Pipeline Hazardous Materials Safety Administration natural gas storage rules. The amounts also include EGTS' asset modernization program, which includes projects for vintage pipeline replacement, compression replacement, pipeline assessment and underground storage integrity.

*Material Cash Requirements*

As of September 30, 2025, there have been no material changes in cash requirements from the information provided in Item 7 of EGTS' Annual Report on Form 10-K for the year ended December 31, 2024.

**Regulatory Matters**

EGTS is subject to comprehensive regulation. Refer to "Regulatory Matters" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for discussion regarding EGTS' current regulatory matters.

**Environmental Laws and Regulations**

EGTS is subject to federal, state and local laws and regulations regarding air quality, climate change, emissions performance standards, water quality and other environmental matters that have the potential to impact its current and future operations. In addition to imposing continuing compliance obligations, these laws and regulations provide regulators with the authority to levy substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. These laws and regulations are administered by various federal, state and local agencies. EGTS believes it is in material compliance with all applicable laws and regulations, although many are subject to interpretation that may ultimately be resolved by the courts. Environmental laws and regulations continue to evolve, and EGTS is unable to predict the impact of the changing laws and regulations on its operations and financial results.

Refer to "Environmental Laws and Regulations" in Berkshire Hathaway Energy's Part I, Item 2 of this Form 10-Q for additional information regarding environmental laws and regulations.

**Critical Accounting Estimates**

Certain accounting measurements require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized on the Consolidated Financial Statements based on such estimates involve numerous assumptions subject to varying and potentially significant degrees of judgment and uncertainty and will likely change in the future as additional information becomes available. Estimates are used for, but not limited to, the accounting for the effects of certain types of regulation, impairment of long-lived assets and income taxes. For additional discussion of EGTS' critical accounting estimates, see Item 7 of EGTS' Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in EGTS' assumptions regarding critical accounting estimates since December 31, 2024.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

For quantitative and qualitative disclosures about market risk affecting the Registrants, see Item 7A of each Registrant's Annual Report on Form 10-K for the year ended December 31, 2024. Each Registrant's exposure to market risk and its management of such risk has not changed materially since December 31, 2024. Refer to Note 8 of the Notes to Consolidated Financial Statements of PacifiCorp, Note 8 of the Notes to Consolidated Financial Statements of Nevada Power and Note 8 of the Notes to Consolidated Financial Statements of Sierra Pacific in Part I, Item 1 of this Form 10-Q for disclosure of the respective Registrant's derivative positions as of September 30, 2025.

**Item 4. Controls and Procedures**

At the end of the period covered by this Quarterly Report on Form 10-Q, each of Berkshire Hathaway Energy Company, PacifiCorp, MidAmerican Funding, LLC, MidAmerican Energy Company, Nevada Power Company, Sierra Pacific Power Company, Eastern Energy Gas Holdings, LLC and Eastern Gas Transmission and Storage, Inc. carried out separate evaluations, under the supervision and with the participation of each such entity's management, including its Chief Executive Officer (principal executive officer) and its Chief Financial Officer (principal financial officer), or persons performing similar functions, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended). Based upon these evaluations, management of each such entity, including its Chief Executive Officer (principal executive officer) and its Chief Financial Officer (principal financial officer), or persons performing similar functions, in each case, concluded that the disclosure controls and procedures for such entity were effective to ensure that information required to be disclosed by such entity in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the United States Securities and Exchange Commission's rules and forms, and is accumulated and communicated to its management, including its Chief Executive Officer (principal executive officer) and its Chief Financial Officer (principal financial officer), or persons performing similar functions, in each case, as appropriate to allow timely decisions regarding required disclosure by it. Each such entity hereby states that there has been no change in its internal control over financial reporting during the quarter ended September 30, 2025, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting except for Nevada Power Company and Sierra Pacific Power Company. In July 2025, Nevada Power Company and Sierra Pacific Power Company completed implementation of a new enterprise resource planning system, which was designed to replace or enhance certain internal financial and operating systems. In connection with the enterprise resource planning implementation, Nevada Power Company and Sierra Pacific Power Company updated the processes and controls that constitute the internal control over financial reporting, as necessary, to accommodate related changes to the accounting procedures and business processes. There have been no other changes in internal control over financial reporting during the quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect, the Nevada Power Company and Sierra Pacific Power Company internal control over financial reporting environments.

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**PART II**

**Item 1. Legal Proceedings**

The following disclosures reflect material updates to legal proceedings and should be read in conjunction with Item 3 of Berkshire Hathaway Energy's and PacifiCorp's Annual Reports on Form 10-K for the year ended December 31, 2024.

**<u>BERKSHIRE HATHAWAY ENERGY AND PACIFICORP</u>**

In September 2020, a severe weather event with high winds, low humidity and warm temperatures contributed to several major wildfires, including the 2020 Wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life and widespread power outages in Oregon and Northern California. The wildfires spread across certain parts of PacifiCorp's service territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burning over 500,000 acres in aggregate. Third-party reports for these wildfires indicate over 2,000 structures destroyed, including residences; several structures damaged; multiple individuals injured; and several fatalities.

In July 2022, the 2022 McKinney Fire began in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp's service territory, burning over 60,000 acres. Third-party reports indicate that the 2022 McKinney Fire resulted in 11 structures damaged; 185 structures destroyed, including residences; 12 injuries; and four fatalities.

As described below, a significant number of complaints and demands alleging similar claims have been filed in Oregon and California related to the Wildfires. Amounts sought in outstanding complaints and demands filed in Oregon and in certain demands made in California totaled approximately $55 billion, excluding any doubling or trebling of damages or punitive damages included in the complaints and excluding damages that may be sought by additional plaintiffs granted substitution counsel in the *James* class action lawsuit described below. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount. Of the $55 billion, $52 billion represents the economic and noneconomic damages sought in the *James* mass complaints described below. For class actions, amounts specified by the plaintiffs in the complaints include amounts based on estimates of the potential class size, which ultimately may be significantly greater than estimated. Additionally, damages are not limited to the amounts specified in the initially filed complaints as plaintiffs are frequently allowed to amend their complaints to add additional damages and amounts awarded in a court proceeding may be significantly greater than the damages specified. Oregon law provides for doubling of economic and property damages in the event the defendant is found to have acted with gross negligence, recklessness, willfulness or malice. Oregon law provides for trebling of damages associated with timber, shrubs and produce in the event the defendant is determined to have willfully and intentionally trespassed.

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The following map illustrates the general vicinity of the Wildfires.

![Wildfires map (screenclip with scale).jpg](bhe-20250930_g1.jpg)

*Investigations*

In April 2023, the U.S. Department of Agriculture Forest Service ("USFS") issued its report of investigation into a wildland fire that began in the Opal Creek wilderness outside of the Santiam Canyon that was first reported on August 16, 2020 ("Beachie Creek Fire"), approximately three weeks prior to the September 2020 wind event described above. In March 2025, PacifiCorp received the Oregon Department of Forestry's final investigation report on the Santiam Canyon fires ("ODF's Report"), which concluded that embers from the pre-existing Beachie Creek Fire caused 12 fires within the Santiam Canyon. The ODF's Report also found that PacifiCorp's power lines did not contribute to the overall spread of fire into the Santiam Canyon even though its power lines ignited seven spot fires within the Santiam Canyon that were each suppressed.

The Beachie Creek fire that spread into the Santiam Canyon burned approximately 193,000 acres; the South Obenchain fire burned approximately 33,000 acres; the Echo Mountain Complex fire burned approximately 3,000 acres; and the 242 fire burned approximately 14,000 acres. The *James* cases described below are associated with the Beachie Creek (Santiam Canyon), South Obenchain, Echo Mountain Complex and 242 fires, which are four distinct fires located hundreds of miles apart.

For more information regarding certain investigative reports from the USFS and the Oregon Department of Forestry ("ODF") and certain legal proceedings affecting Berkshire Hathaway Energy, refer to Note 9 of the Notes to Consolidated Financial Statements of Berkshire Hathaway Energy in Part I, Item 1 of this Form 10-Q, and PacifiCorp, refer to Note 10 of the Notes to Consolidated Financial Statements of PacifiCorp in Part I, Item 1 of this Form 10-Q.

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*Wildfire Settlements*

PacifiCorp has settled various claims associated with the Wildfires as described below and has settled or settled in principle all wrongful death claims associated with the Wildfires. Additionally, settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in the Archie Creek fire, Slater fire and the 2022 McKinney Fire with government timber and suppression cost claims remaining.

*2020 Wildfires*

As of the date of this filing, PacifiCorp has made settlement payments associated with individual plaintiffs, wrongful death claims, insurance subrogation claims, commercial timber claims and certain government claims associated with the 2020 Wildfires totaling $1,184 million. The $1,184 million in settlements were comprised of $324 million associated with the *James* related fires for plaintiffs who opted out of the *James* class, insurance subrogation claims and for plaintiffs to certain of the consolidated cases; $253 million associated with the Slater fire; $605 million associated with the Archie Creek fire; and $2 million associated with other fires. For more information, refer to description of the 2020 Wildfires complaints and specific wildfires below.

*2022 McKinney Fire*

As of the date of this filing, PacifiCorp has made settlement payments associated with individual plaintiffs, wrongful death claims, insurance subrogation claims, commercial timber claims, private timber claims and certain government claims associated with the 2022 McKinney Fire totaling $216 million. For more information, refer to description of the 2022 McKinney Fire complaints below.

*2020 Oregon Wildfires, Excluding the Northern California and Southern Oregon Slater Fire ("Slater Fire")*

As described below, a significant number of complaints on behalf of plaintiffs associated with the 2020 Wildfires have been filed in Oregon in addition to those described below for the Slater Fire. The plaintiffs generally allege: (i) negligence due in part to alleged failure to comply with certain Oregon statutes and administrative rules, including those issued by the OPUC; (ii) gross negligence alleged in the form of willful, wanton and reckless disregard of known risks to the public; (iii) trespass; (iv) nuisance; (v) inverse condemnation; (vi) pre- and post-judgment interest; and (vii) reasonable attorney fees, investigation costs and expert witness fees. The complaints generally assert claims for: (i) noneconomic damages, including mental suffering, emotional distress, inconvenience and interference with normal and usual activities; (ii) damages for real and personal property and other economic losses; (iii) double the amount of property and economic damages; (iv) treble damages for specific costs associated with loss of forestry, trees and shrubbery; and (v) double the amount of damages for the costs of litigation and reforestation. Certain complaints include wrongful death claims as described below. The plaintiffs generally demand a trial by jury and reserve their right to further amend their complaints to allege claims for punitive damages.

*The James Case*

On September 30, 2020, a class action complaint against PacifiCorp was filed, captioned *Jeanyne James et al. v. PacifiCorp,* ("*James*") in Oregon Circuit Court in Multnomah County, Oregon ("Multnomah County Circuit Court Oregon"). The complaint was filed by Oregon residents and businesses who sought to represent a class of all Oregon citizens and entities whose real or personal property was harmed beginning on September 7, 2020, by wildfires in Oregon allegedly caused by PacifiCorp. In November 2021, the plaintiffs filed an amended complaint to limit the class to include Oregon citizens allegedly impacted by the Santiam Canyon, Echo Mountain Complex, South Obenchain and 242 fires, as well as to add claims for noneconomic damages. The amended complaint alleged that PacifiCorp's assets contributed to the Oregon wildfires occurring on or after September 7, 2020, and that PacifiCorp acted with gross negligence, among other things. The amended complaint seeks damages similar to those described above, including not less than $600 million of economic damages and in excess of $1 billion of noneconomic damages for the plaintiffs and the class. Since filing of the original class action complaint, numerous James class members have been named and damages specified in various complaints as described below. Additionally, numerous cases were consolidated into the original *James* complaint as described below under "*James* Consolidated Cases."

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In April, May, July and September 2024, and January, May and September 2025, eight separate mass complaints against PacifiCorp naming 1,000, 100, 265, 78, 93, 55, 99 and 34 individual class members, respectively, were filed in Multnomah County Circuit Court Oregon captioned *Shane A Henson et al. v. PacifiCorp*, *Karen Andersen et al. v. PacifiCorp*, *Vanessa Alexander et al. v. PacifiCorp, Emily Broderick et al. v. PacifiCorp*, *Sergio Garcia Montes et al. v. PacifiCorp*, *Butte Falls Family Ranch, LLC et al. v. PacifiCorp*, *Amanda Bateman et al. v. PacifiCorp* and *Philip Estes et al. v. PacifiCorp*, respectively, each referencing the original *James* case as the lead case. Complaints for some of the plaintiffs in the mass complaints were subsequently dismissed with approximately 1,700 remaining. The *James* mass complaints make damages-only allegations seeking for each individual class member $5 million of economic damages, $25 million of noneconomic damages and punitive damages equal to 0.25 times the amount of economic and noneconomic damages, as well as doubling of economic damages. The class members demand a trial by jury. Refer to "*James* Court Activity" section below for information regarding additional damages phase trials.

On December 31, 2024, a complaint against PacifiCorp was filed, captioned *Frank Timber Resources, Inc. et al. v. PacifiCorp*, referencing the original *James* case as the lead case, ("*Frank Timber*") in Multnomah County Circuit Court Oregon by four plaintiffs. Similar to the mass complaints described above, the complaint makes damages-only allegations seeking approximately $12 million of economic damages, doubling of economic damages and punitive damages equal to 0.25 times the amount of economic damages. The plaintiffs demand a trial by jury and a trial has been set for January 5, 2026.

On December 31, 2024, a complaint against PacifiCorp was filed, captioned *Theodore and Deana Freres et al. v. PacifiCorp*, referencing the original *James* case as the lead case, ("*Theodore and Deana Freres*") in Multnomah County Circuit Court Oregon by four plaintiffs. Similar to the mass complaints described above, the complaint makes damages-only allegations seeking approximately $1 million of economic damages, doubling of economic damages and punitive damages equal to 0.25 times the amount of economic damages. The plaintiffs demand a trial by jury and a trial has been set for January 5, 2026.

From October 2024 through March 2025, various plaintiffs' counsel filed motions with the Multnomah County Circuit Court Oregon for substitution of lead counsel in the *James* case for approximately 1,500 plaintiffs, including a minor number of plaintiffs included in the approximately 1,700 plaintiffs in the *James* mass complaints described above. To date, substitution motions covering substantially all of the approximately 1,500 plaintiffs have been granted. In October 2025, complaints against PacifiCorp naming a small portion of the approximately 1,500 plaintiffs granted substitution counsel were filed in Multnomah County Circuit Court Oregon, referencing the original *James* case as the lead case. These plaintiffs seek for each individual class member either $2 million or $5 million of economic damages, $25 million of noneconomic damages and punitive damages equal to 0.25 times the amount of economic and noneconomic damages, as well as doubling of economic damages. A portion of the 1,500 plaintiffs granted substitution counsel are included in trials scheduled under the July 2025 case management order described below although specific complaints have not yet been filed.

As described below under "*James* Court Activity," class plaintiffs selected for trial are required to amend their complaints to address facts specific to their complaints, generally resulting in updates to the amount of economic and noneconomic damages sought that are no greater than the amounts specified in the original mass complaints.

As described above under "Investigations," in March 2025, PacifiCorp received the ODF's Report, which concluded that while PacifiCorp's power lines ignited various spot fires within the Santiam Canyon, every such ignition was suppressed and did not contribute to the overall spread of the Beachie Creek Fire into the Santiam Canyon. Approximately 60% of the named plaintiffs in the *James* mass complaints are associated with the Santiam Canyon fires. Refer to "*James* Court Activity" below for information regarding PacifiCorp's filings of motions to stay further *James* damages phase trials in consideration of the ODF's Report described above under "Investigations."

*<u>James</u>* <u>Trial Activity</u>

In June 2023, a jury verdict was issued in the first *James* trial finding PacifiCorp's conduct grossly negligent, reckless and willful as to each of the 17 named plaintiffs and the entire class. The jury awarded economic and noneconomic damages. After the jury verdict, the Multnomah County Circuit Court Oregon doubled the economic damages, in accordance with Oregon law, and added punitive damages by applying a 0.25 multiplier to the awarded economic and noneconomic damages. PacifiCorp filed a motion with the Multnomah County Circuit Court Oregon requesting the court offset the damage awards by deducting insurance proceeds received by any of the plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict, including whether the case can proceed as a class action.

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Subsequent to the June 2023 *James* verdict, numerous damages phase trials were held with separate jury verdicts issued and damages awarded for each on a basis consistent with the initial trial and relying on the liability determination in the June 2023 *James* verdict. PacifiCorp amended its January 2024 appeal of the June 2023 *James* verdict to include the jury verdicts for the first two damages phase trials. PacifiCorp has filed notices of appeal for the subsequent jury verdicts in the damages phase trials once limited judgments are entered and any post-trial motions filed. Refer to "*James* Court Activity" below regarding the filing of PacifiCorp's opening appellate brief. The appeals process and further actions could take several years.

The *James* jury verdicts to date have awarded total net damages of $589 million, including $96 million of doubled economic damages, $406 million of noneconomic damages, $113 million of punitive damages and partially offset by estimated insurance offsets of $26 million. Refer to additional details by trial in Note 10 of the Notes to Consolidated Financial Statements of PacifiCorp in Part I, Item 1 of this Form 10-Q.

Through October 2025, jury verdict awards averaged approximately $5 million per plaintiff, including insurance offset. Additional damages phase trials are scheduled to occur in 2025 through 2028 as described below.

*<u>James</u>* <u>Court Activity</u>

In April 2025, PacifiCorp filed its opening brief with the Oregon Court of Appeals in connection with its appeal of the June 2023 *James* verdict and the January and March 2024 verdicts for the first two *James* damages phase trials. In the opening brief, PacifiCorp addresses numerous procedural and legal issues, including that the class certification is improper due to the plaintiffs being impacted by distinct fires with independent ignition points that were hundreds of miles apart; awarding of non-economic damages is not allowed under Oregon law; plaintiffs failed to prove that PacifiCorp caused harm to every class member; and jury instructions applied incorrect legal standards in assessing class-wide evidence and individual claims. Additionally, PacifiCorp incorporated the ODF's Report into its opening appellate brief. Various parties who are not party to the *James* case have filed supportive amicus briefs with the court. Plaintiffs filed their combined answering and cross-appeal brief on August 21, 2025, after plaintiffs requested three delays from the Oregon Court of Appeals. PacifiCorp filed its combined reply brief and cross-appeal answering brief on October 17, 2025. Plaintiffs' reply brief is due on November 7, 2025, unless plaintiffs ask for additional extensions. On October 23, 2025, PacifiCorp filed a request with the Oregon Court of Appeals for an expedited oral argument, which, if granted, will facilitate a more prompt decision from the court.

Subsequent to the first two damages phase trials, nine damages phase trials were scheduled to be held in 2025 in accordance with the Multnomah County Circuit Court Oregon's October 2024 case management order, adjudicating the damages of approximately 10 plaintiffs per trial. The first eight of these trials have been held, while the remaining trial is scheduled to begin December 1, 2025. Plaintiffs have been selected for all nine trials. The jury verdicts for the first eight of the damages phase trials were issued in February, March, April, May, June, July, September and October 2025, as described above. Also in accordance with the October 2024 case management order, the parties engaged in an unsuccessful global mediation on May 5 and July 28, 2025, and are further required to engage in global mediation within 30 days after the verdict is rendered in the December 1, 2025, trial with the objective of resolving the claims of the remaining absent class members. In March 2025, PacifiCorp filed a motion to stay the additional damages phase trials scheduled under the October 2024 case management order in consideration of the ODF's Report. This motion was denied on April 18, 2025.

On July 28, 2025, the Multnomah County Circuit Court Oregon issued Case Management Order No. 11 ("CMO No. 11") in response to the May 2025 hearing that was held to evaluate the scheduling of additional damages phase trials. As ordered, CMO No. 11 proposes to schedule dozens of trials in 2026 and over 100 more in 2027 and 2028, involving approximately 2,000 plaintiffs. Additionally, CMO No. 11 requires mediation every other month starting in October 2025.

On August 8, 2025, PacifiCorp filed a motion with the Oregon Court of Appeals to stay the *James* damages phase trials addressed in CMO No. 11 and to which plaintiffs' counsel responded on August 29, 2025. On September 23, 2025, the Appellate Commissioner of the Oregon Court of Appeals denied PacifiCorp's motion to stay. On September 26, 2025, PacifiCorp filed a request for reconsideration of the stay denial with the Chief Judge of the Oregon Court of Appeals. On October 13, 2025, the Oregon Court of Appeals issued an order denying PacifiCorp's request for reconsideration. PacifiCorp has 35 days from October 13, 2025, to petition the Oregon Supreme Court to review the Oregon Court of Appeals order.

Refer to "Potential Effects of *James* CMO No. 11" in Note 10 of the Notes to Consolidated Financial Statements of PacifiCorp in Part I, Item 1 of this Form 10-Q for additional information.

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In September 2024, PacifiCorp filed a motion to make the *James* mass complaints more definite and certain. In October 2024, in response to PacifiCorp's motion, the Multnomah County Circuit Court Oregon issued an order granting, in part, the motion. The order requires the plaintiffs selected for the nine damages phase trials scheduled in 2025 to file amended complaints alleging the specific facts that support their claims for economic and noneconomic damages. To date, no amended complaints seek damages in excess of the amounts sought in the original mass complaints.

*<u>James</u>* <u>Consolidated Cases</u>

The following cases were consolidated into the original *James* case:

Amended *Salter* filed August 20, 2021, in Multnomah County Circuit Court Oregon by approximately 97 individuals. The complaint seeks damages similar to those described above, including economic damages not to exceed $150 million and noneconomic damages not to exceed $500 million.

Amended *Allen* filed September 2, 2021, in Multnomah County Circuit Court Oregon by approximately five individuals. The *Allen* case seeks damages similar to those described above, including $8 million in economic damages and $24 million in noneconomic damages related to the Beachie Creek Fire.

Amended *Dietrich* filed September 6, 2022, in Multnomah County Circuit Court Oregon by six Oregon residents individually and on behalf of a class defined to include residents of, business owners in, real or personal property owners in and any other individuals physically present in specified Oregon counties as of September 7, 2020 who experienced any harm, damage or loss as a result of the Santiam Canyon, Echo Mountain Complex, 242 or South Obenchain fires. The amended complaint seeks $400 million in economic damages and $500 million in noneconomic damages. The *Dietrich* case is currently stayed due to plaintiffs' motion to consolidate the case into *James*.

*Bell* filed September 7, 2022, in Multnomah County Circuit Court Oregon by 59 plaintiffs seeking $35 million in damages, including economic and noneconomic damages.

*Ashley Andersen et al. v. PacifiCorp and Judith O'Keefe v. PacifiCorp and Consolidated Cases*

As a result of settlements reached in 2024 for the *Andersen et al. v. PacifiCorp* consolidated cases and the *Judith O'Keefe v. PacifiCorp* consolidated cases, the complaints have been resolved but for one remaining plaintiff in *Andersen* and two remaining plaintiffs in *O'Keefe* in the complaints described below.

The *Weathers* complaint was filed in Multnomah County Circuit Court Oregon by approximately 46 plaintiffs and consolidated into the *Andersen* case with allegations and damages similar to those described above for the *Andersen* case, seeking economic damages of approximately $83 million and noneconomic damages of approximately $83 million. As described above, settlement was reached for all but one plaintiff in *Weathers*.

The *Bogle* complaint was filed September 1, 2022, in Multnomah County Circuit Court Oregon by approximately 39 plaintiffs seeking economic damages of approximately $83 million and noneconomic damages of approximately $83 million and consolidated into the *O'Keefe* case. As described above, settlement was reached for all but two of the plaintiffs in *Bogle*.

*Other Cases*

Several other complaints were filed against PacifiCorp associated with the 2020 Wildfires for which several settlements were reached as described above. However, certain complaints remain outstanding as described below.

On September 1, 2022, a complaint against PacifiCorp associated with the Archie Creek Fire was filed, captioned *Leonard Mitchell Lee et al. v. PacifiCorp*, ("*Lee*") in Multnomah County Circuit Court Oregon by approximately five plaintiffs, seeking approximately $25 million in economic and noneconomic damages and makes allegations similar to those described above. No trial date has been set. In June 2024, PacifiCorp reached an agreement in principle with three of the *Lee* plaintiffs. In 2025, the court dismissed the complaints for the remaining two plaintiffs.

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A group of subrogation insurers that filed complaints against PacifiCorp associated with the Archie Creek Fire agreed to a mediator's proposal under which PacifiCorp will pay 51.75% of the total claims paid and to be paid by the carriers related to the Archie Creek Fire. During 2022, PacifiCorp paid $24 million to the subrogation insurers. During 2023 and January 2024, PacifiCorp paid additional amounts to the subrogation insurers and ultimately expects to pay a total of $28 million to the subrogation insurers. While some of the subrogation complaints have been fully dismissed, the following remain active:

The *Lexington* complaint was filed against PacifiCorp by two insurers in Douglas County Circuit Court Oregon seeking $14 million in damages for negligence and, as amended on February 3, 2022, makes allegations similar to those described above. The *Lexington* case was partially dismissed following settlement, but general judgment of dismissal has not yet been entered because certain plaintiffs remain active.

The *Ace American Insurance Co.* complaint was filed against PacifiCorp by 15 insurers in Douglas County Circuit Court Oregon on August 25, 2022, seeking approximately $24 million in damages for negligence. The *Ace American Insurance Co.* case was partially dismissed following settlement, but general judgment of dismissal has not yet been entered because certain plaintiffs remain active.

*Winery Cases*

Certain Oregon vineyards have filed lawsuits alleging economic damages associated with the 2020 Wildfires, as described below. In October 2025, PacifiCorp settled in principle all claims made by Oregon vineyards. As a result, PacifiCorp expects the upcoming trials to be canceled and the associated complaints dismissed.

On July 14, 2023, a complaint against PacifiCorp was filed, captioned *Elk Cove Vineyards, Inc. v. PacifiCorp*, in Oregon Circuit Court in Yamhill County, Oregon, by one plaintiff, seeking approximately $3 million in economic damages associated with the Santiam Canyon, South Obenchain, Echo Mountain Complex, 242 and Archie Creek fires and makes allegations similar to those described above. On March 13, 2024, the complaint was amended to add 12 plaintiffs, with all plaintiffs collectively seeking approximately $25 million in economic damages. The *Elk Cove Vineyards, Inc.* case is set for trial March 2, 2026 through March 31, 2026.

On July 24, 2023, a complaint against PacifiCorp was filed, captioned *Willamette Valley Vineyards Inc v. PacifiCorp*, in Oregon Circuit Court in Marion County, Oregon, ("Marion County Circuit Court Oregon") seeking approximately $3 million in economic damages associated with the Santiam Canyon, South Obenchain, Echo Mountain Complex, 242 and Archie Creek fires and makes allegations similar to those described above. On March 29, 2024, the complaint was amended to add four plaintiffs, with all plaintiffs collectively seeking approximately $4 million in economic damages. On February 3, 2025, the complaint was further amended to add an unspecified amount of punitive damages. The Marion County Circuit Court Oregon denied plaintiffs' motion to apply the negligence finding from the June 2023 *James* verdict to the *Willamette Valley Vineyards Inc* case but provided plaintiffs the option to refile the motion in the future. The *Willamette Valley Vineyards Inc* case is set for trial January 12, 2026 through February 6, 2026.

On January 18, 2024, a complaint against PacifiCorp was filed, captioned *Sokol Blosser, Ltd. et al. v. PacifiCorp*, ("*Sokol Blosser*") in Multnomah County Circuit Court Oregon by approximately nine plaintiffs, seeking approximately $20 million in economic damages associated with the Santiam Canyon, South Obenchain, Echo Mountain Complex, 242 and Archie Creek fires and makes allegations similar to those described above. On October 1, 2024, the complaint was amended to add 25 plaintiffs with all plaintiffs collectively seeking approximately $90 million in economic damages. On April 7, 2025, the complaint was further amended to add punitive damages in an unspecified amount. On April 4, 2025, the Multnomah County Circuit Court Oregon denied plaintiffs' motion to apply the negligence finding from the June 2023 *James* verdict to the *Sokol Blosser* case, indicating that plaintiffs have the burden of proof to demonstrate causation. In May 2025, three plaintiffs were voluntarily dismissed without prejudice. The *Sokol Blosser* case is set for trial November 3, 2025, through December 9, 2025.

On May 24, 2024, a complaint against PacifiCorp was filed, captioned *Lange Winery LLC et al. v. PacifiCorp*, ("*Lange Winery*") in Multnomah County Circuit Court Oregon by approximately 36 plaintiffs, seeking approximately $51 million in economic damages associated with the Santiam Canyon, South Obenchain, Echo Mountain Complex, 242 and Archie Creek fires and makes allegations similar to those described above. On April 10, 2025, the Multnomah County Circuit Court Oregon denied plaintiffs' motion to apply the negligence finding from the June 2023 *James* verdict to the *Lange Winery* case. While the court did not rule on the admissibility of the ODF's Report, it acknowledged that inconsistent findings exist as to the causation of the Santiam Canyon fires as a result of the report. The court also noted that the plaintiffs are wineries located many miles away from the wildfires who allege that their grape harvests were damaged or destroyed by the traveling smoke, far outside the wildfire boundaries at issue in *James*. The *Lange Winery* case is set for trial May 4, 2026, through June 12, 2026.

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On October 31, 2024, a complaint against PacifiCorp was filed, captioned *The Lumos Wine Co. et al. v. PacifiCorp*, ("*Lumos*") in Multnomah County Circuit Court Oregon by approximately six plaintiffs, seeking approximately $2 million in economic damages associated with the Santiam Canyon, South Obenchain, Echo Mountain Complex, 242 and Archie Creek fires and makes allegations similar to those described above.

*United States and State of Oregon – Loss and Damages to Federal and State Lands – Oregon Fires* 

In 2023, PacifiCorp received correspondence from the U.S. Department of Justice ("USDOJ"), representing the U.S. Department of the Interior, Bureau of Land Management, Bureau of Indian Affairs and USFS, regarding the potential recovery of certain costs and damages alleged to have occurred to federal lands from the Archie Creek and Susan Creek fires. The USDOJ provided a damages estimate of approximately $625 million for mediation purposes only, which included costs and damages relating to damaged timber and improvements; reforestation; coordination with hydropower license, suppression costs and other assessment costs; and cleanup and rehabilitation costs. The amounts alleged for natural resource damage from these fires do not include intangible environmental and natural resource damages that the U.S. could potentially seek to recover if this matter was fully litigated, nor do they include multipliers which the agencies are allegedly entitled to collect under pertinent federal regulations, under which, for example, minimum damages for trespass to timber managed by the U.S. Department of Interior are twice the fair market value of the resource at the time of the trespass, or three times if the violation was willful. While PacifiCorp participated in mediation with the USDOJ and continues to seek resolution of the dispute, the USDOJ filed a formal complaint against PacifiCorp as described below.

In 2023, PacifiCorp also received correspondence from the Oregon Department of Justice ("ODOJ"), representing the State of Oregon, regarding the potential recovery of losses and damages to state lands from the Archie Creek and Susan Creek fires. The ODOJ provided a damage estimate of approximately $109 million for mediation purposes only, which included losses and damages relating to the sheltering of, and assistance to, affected Oregonians; fire control and extinguishment costs; timber damage across 39 acres of Oregon forestland; losses and damages at the Rock Creek Fish Hatchery; road and highway damages; and other costs.

In 2023, the ODF sent demand notices for fire suppression costs totaling $2 million for three separate ignition points associated with the 2020 Wildfires. On May 30, 2024, PacifiCorp reached settlement with the ODF for suppression costs associated with one of these ignition points for less than $1 million.

In December 2024, in conjunction with the USDOJ correspondence for the Archie Creek fire described above, a complaint against PacifiCorp was filed, captioned the *United States of America* v. *PacifiCorp*, in U.S. District Court, District of Oregon, Portland Division, seeking various unquantified damages and a jury trial. The civil cover sheet accompanying the complaint demands damages estimated to exceed $900 million, which is greater than the damages included in the original correspondence from the USDOJ due to the addition of estimates for intangible environmental and natural resource damages. PacifiCorp responded to the complaint on February 18, 2025.

On February 19, 2025, PacifiCorp received a demand from the ODF for $2 million in fire suppression costs incurred by the ODF associated with the Oregon portion of the Slater Fire. On May 5, 2025, PacifiCorp received a demand from the ODOJ for $5 million of suppression costs incurred by the Oregon State Fire Marshal associated with the Oregon portion of the Slater Fire.

On April 4, 2025, PacifiCorp received a demand from the ODF for $11 million in fire suppression costs associated with the South Obenchain fire.

On April 21, 2025, PacifiCorp received a demand from the ODF for $4 million in fire suppression costs associated with the Echo Mountain and Kimberling Mountain fires.

PacifiCorp is actively cooperating with both the USDOJ and ODOJ on resolving these alleged claims.

*2020 Slater Fire California and Oregon Complaints and Demands* 

A significant number of complaints on behalf of plaintiffs associated with the Slater Fire were filed in Oregon and California. The complaints generally allege: (i) inverse condemnation; (ii) negligence; (iii) trespass; (iv) nuisance; and (v) violation of certain sections of the California Public Utilities Code and the California Health & Safety Code and request a jury trial and seek various damages. The damages sought generally include: (i) economic damages; (ii) noneconomic damages; (iii) doubling of economic damages; (iv) punitive damages; (v) pre- and post-judgment interest; and (vi) attorneys' fees and other costs. Substantially all of the complaints have been resolved.

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In May 2025, PacifiCorp settled claims with one plaintiff in the *Hillman* complaint filed January 29, 2021, and with one plaintiff in the *Nixon* complaint filed August 31, 2022, against PacifiCorp in California Superior Court, Sacramento County, California ("Sacramento County Superior Court California") and previously part of the resolved consolidated *Hitchcock et al. v. PacifiCorp* cases. All settled cases are expected to be dismissed.

*United States – Loss and Damages to Federal Lands* – *Slater Fire*

PacifiCorp received a notice of indebtedness from the USFS indicating that PacifiCorp owes $356 million for fire suppression costs, natural resource damages and burned area emergency response costs incurred by the USFS associated with the Slater Fire in California. The notice further indicates that the alleged amounts owed may not include all environmental damages to which the USFS may be entitled and which the U.S. may seek to recover if further action is taken to resolve the debt. Additional charges for interest, penalties and administrative costs may also be sought associated with amounts considered overdue. In January 2024, PacifiCorp received correspondence from the USDOJ indicating its intent to litigate the matter because PacifiCorp has not paid the $356 million demand. PacifiCorp is actively cooperating with the USDOJ on resolving these alleged claims, including through the pursuit of alternative dispute resolution.

*2022 McKinney Fire*

Numerous complaints associated with the 2022 McKinney Fire were filed in Sacramento County Superior Court California on behalf of approximately 1,200 plaintiffs. Certain complaints include wrongful death claims associated with the four fatalities. The complaints generally allege: (i) inverse condemnation; (ii) negligence; (iii) trespass; (iv) nuisance; and (v) violation of certain sections of the California Public Utilities Code and the California Health & Safety Code and seek various damages. The damages sought generally include: (i) economic damages; (ii) noneconomic damages; (iii) doubling or trebling of timber damages; (iv) punitive damages; (v) prejudgment interest; and (vi) attorneys' fees and other costs. The complaints do not specify the amount of damages sought.

On August 16, 2022, a complaint against PacifiCorp was filed, captioned *Bridges et al. v. PacifiCorp*, ("*Bridges*") in Sacramento County Superior Court California by approximately five plaintiffs. The following complaints were filed and subsequently consolidated into *Bridges; Cogan* filed August 23, 2022, approximately 14 plaintiffs, including a wrongful death claim; *Shoopman* filed August 26, 2022, amended January 10, 2023, approximately 124 plaintiffs, including a wrongful death claim; *Lowe* filed September 28, 2022, approximately two plaintiffs; *Fraser* filed November 9, 2022, approximately 180 plaintiffs; *Corrales*, filed April 6, 2023, approximately 30 plaintiffs; *Murieen*, filed April 20, 2023, approximately seven plaintiffs; *Huber*, filed August 21, 2023, approximately five plaintiffs, including two wrongful death claims; *Insurance Company of Hannover*, filed January 8, 2024, one subrogation plaintiff; *Crawford*, filed March 28, 2024, approximately 37 plaintiffs; *Bartlett*, filed April 25, 2024, approximately 30 plaintiffs; *Adams*, filed April 26, 2024, approximately 12 plaintiffs; *Justice*, filed July 15, 2024, approximately 194 plaintiffs; *Coolidge*, filed July 19, 2024, approximately two plaintiffs; *Sharon Andersen*, filed July 22, 2024, approximately 24 plaintiffs, including a wrongful death claim; *Billingsley*, filed July 25, 2024, approximately 21 plaintiffs, including a wrongful death claim; *Howe*, filed July 25, 2024, approximately 51 plaintiffs; *Cloutman*, filed July 26, 2024, approximately 114 plaintiffs; *Bolden*, filed July 26, 2024, approximately seven plaintiffs; *Rainey*, filed July 26, 2024, approximately 26 plaintiffs, including a wrongful death claim; *Hegler*, filed July 29, 2024, approximately three plaintiffs; *Meier*, filed July 29, 2024, approximately 204 plaintiffs; *Propp*, filed August 5, 2024, approximately six plaintiffs; *Griffith*, filed May 21, 2025, approximately 63 plaintiffs; *Schumack*, filed July 21, 2025, approximately three plaintiffs; and *Shott*, filed July 31, 2025, approximately three plaintiffs. To date, settlements have been reached with substantially all the plaintiffs associated with the 2022 McKinney Fire, and PacifiCorp believes that there are approximately 50 plaintiffs remaining to settle. While only a portion of the associated complaints have been dismissed as a result of the settlements, the remaining settled complaints are also expected to be dismissed. Additionally, the bellwether trial in *Bridges* and the trial for the wrongful death claim in *Huber* were cancelled as a result of settlements reached in May 2025. No other trials have been scheduled.

On April 12, 2024, a complaint against PacifiCorp was filed, captioned *Susanne White v. PacifiCorp* in U.S. District Court for the Eastern District of California by one plaintiff.

**Item 1A. Risk Factors**

There has been no material change to each Registrant's risk factors from those disclosed in Item 1A of each Registrant's Annual Report on Form 10-K for the year ended December 31, 2024.

------

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

Not applicable.

**Item 3. Defaults Upon Senior Securities**

Not applicable.

**Item 4. Mine Safety Disclosures**

Information regarding Berkshire Hathaway Energy's and PacifiCorp's mine safety violations and other legal matters disclosed in accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is included in Exhibit 95 to this Form 10-Q.

**Item 5. Other Information**

Not applicable.

**Item 6. Exhibits**

The following is a list of exhibits filed as part of this Quarterly Report.

------

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |

---

<u>BERKSHIRE HATHAWAY ENERGY</u>

---

| | |
|:---|:---|
| 3.1 | <u>[Amended and](bhe93025ex31.htm)[Restated](bhe93025ex31.htm)[Bylaws of Berkshire Hatha](bhe93025ex31.htm)[way Energy Company.](bhe93025ex31.htm)</u> |
| 4.1 | <u>[Trust Deed, dated as of March 21, 2025, among Northern Powergrid (Yorkshire) plc, Northern Powergrid (Northeast) plc and HSBC Corporate Trustee Company (UK) Limited, relating to the £1,000,000,000 Euro Medium Term Note Programme (incorporated by reference to Exhibit 4.1 to the Berkshire Hathaway Energy Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000010/bhe33125ex41.htm)</u> |
| 4.2 | <u>[Subscription Agreement, dated as of March 28, 2025, among Northern Powergrid (Yorkshire) plc, Barclays Bank PLC, HSBC Bank plc, Lloyds Bank Corporate Markets plc and RBC Europe Limited, relating to the £250,000,000 in principal amount of the 6.125% Fixed Rate Notes due 2050 (incorporated by reference to Exhibit 4.2 to the Berkshire Hathaway Energy Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000010/bhe33125ex42.htm)</u> |
| 10.1 | <u>[First Amending Agreement to the Credit Agreement, dated as of February 4, 2025, among BHE Canada Holdings Corporation, as borrower, Bank of Montreal, as administrative agent, and Lenders (incorporated by reference to Exhibit 10.1 to the Berkshire Hathaway Energy Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000010/bhe33125ex101.htm)</u> |
| 10.2 | <u>[Berkshire Hathaway Energy Company Long-Term Incentive Partnership Plan as Amended and Restated December 1, 2024 (incorporated by reference to Exhibit 10.2 to the Berkshire Hathaway Energy Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000010/bhe33125ex102.htm)</u> |
| 10.3 | <u>[Third Amendment to the $3,500,000,000 Third Amended and Restated Credit Agreement, dated as of June 30, 2025, among Berkshire Hathaway Energy Company, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, MUFG Bank, LTD., as Administrative Agent and the LC Issuing Banks](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)[3](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)[to the Berkshire Hathaway Energy Company Quarterly Report on Form 10-Q for the quarter ended](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)[June 30](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)[, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/bhe63025ex103.htm)</u> |
| 15.1 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](bhe93025ex151.htm)</u> |
| 31.1 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](bhe93025ex311.htm)</u> |
| 31.2 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](bhe93025ex312.htm)</u> |
| 32.1 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](bhe93025ex321.htm)</u> |
| 32.2 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](bhe93025ex322.htm)</u> |

---

<u>PACIFICORP</u>

---

| | |
|:---|:---|
| 15.2 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](pac93025ex152.htm)</u> |
| 31.3 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](pac93025ex313.htm)</u> |
| 31.4 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](pac93025ex314.htm)</u> |
| 32.3 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](pac93025ex323.htm)</u> |
| 32.4 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](pac93025ex324.htm)</u> |

---

------

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |

---

<u>BERKSHIRE HATHAWAY ENERGY AND PACIFICORP</u>

---

| | |
|:---|:---|
| 4.3 | <u>[Indenture, dated as of March 20, 2025, between PacifiCorp and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 to the PacifiCorp Current Report on Form 8-K dated March 20, 2025).](https://www.sec.gov/Archives/edgar/data/75594/000007559425000010/pacificorp032025ex41.htm)</u> |
| 4.4 | <u>[First Supplemental Indenture, dated as of March 20, 2025, between PacifiCorp and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to the 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055 (including the form of the Notes) (incorporated by reference to Exhibit 4.2 to the PacifiCorp Current Report on Form 8-K dated March 20, 2025).](https://www.sec.gov/Archives/edgar/data/75594/000007559425000010/pacificorp032025ex42.htm)</u> |
| 10.4 | <u>[Third Amendment to the $2,000,000,000 Third Amended and Restated Credit Agreement, dated as of June 30, 2025, among PacifiCorp, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and the LC Issuing Banks](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[(](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[4](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[to the](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[PacifiCorp](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)[Quarterly Report on Form 10-Q for the quarter ended June 30, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex104.htm)</u> |
| 10.5 | <u>[First Amendment to the $900,000,000 364-Day Credit Agreement, dated as of June 27, 2025, among PacifiCorp, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex105.htm)[(](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex105.htm)[incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex105.htm)[5](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex105.htm)[to the PacifiCorp Quarterly Report on Form 10-Q for the quarter ended June 30, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/pac63025ex105.htm)</u> |
| 95 | <u>[Mine Safety Disclosures Required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.](pac93025ex95.htm)</u> |

---

<u>MIDAMERICAN ENERGY</u>

---

| | |
|:---|:---|
| 15.3 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](mec93025ex153.htm)</u> |
| 31.5 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](mec93025ex315.htm)</u> |
| 31.6 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](mec93025ex316.htm)</u> |
| 32.5 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](mec93025ex325.htm)</u> |
| 32.6 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](mec93025ex326.htm)</u> |

---

<u>MIDAMERICAN FUNDING</u>

---

| | |
|:---|:---|
| 31.7 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](llc93025ex317.htm)</u> |
| 31.8 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](llc93025ex318.htm)</u> |
| 32.7 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](llc93025ex327.htm)</u> |
| 32.8 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](llc93025ex328.htm)</u> |

---

<u>BERKSHIRE HATHAWAY ENERGY, MIDAMERICAN ENERGY AND MIDAMERICAN FUNDING</u>

10.6 <u>[Third Amendment to the $1,500,000,000 Third Amended and Restated Credit Agreement, dated as of June 30, 2025, among MidAmerican Energy Company, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, Mizuho Bank, Ltd., as Administrative Agent and the LC Issuing Banks](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm) [(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm) [6](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm) [to the](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm) [MidAmerican Energy Company](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm) [Quarterly Report on Form 10-Q for the quarter ended June 30, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/mec63025ex106.htm)</u>

------

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |

---

<u>NEVADA POWER</u>

---

| | |
|:---|:---|
| 15.4 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](npc93025ex154.htm)</u> |
| 31.9 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](npc93025ex319.htm)</u> |
| 31.10 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](npc93025ex3110.htm)</u> |
| 32.9 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](npc93025ex329.htm)</u> |
| 32.10 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](npc93025ex3210.htm)</u> |

---

<u>BERKSHIRE HATHAWAY ENERGY AND NEVADA POWER</u>

10.7 <u>[Third Amendment to the $600,000,000 Fifth Amended and Restated Credit Agreement, dated as of June 30, 2025, among Nevada Power Company, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, Wells Fargo Bank, National Association, as Administrative Agent and the LC Issuing Banks](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm) [(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm) [7](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm) [to the](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm) [Nevada Power](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm) [Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/npc63025ex107.htm)</u>

<u>SIERRA PACIFIC</u>

---

| | |
|:---|:---|
| 15.5 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](sppc93025ex155.htm)</u> |
| 31.11 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](sppc93025ex3111.htm)</u> |
| 31.12 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](sppc93025ex3112.htm)</u> |
| 32.11 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](sppc93025ex3211.htm)</u> |
| 32.12 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](sppc93025ex3212.htm)</u> |

---

<u>BERKSHIRE HATHAWAY ENERGY AND SIERRA PACIFIC</u>

---

| | |
|:---|:---|
| 4.5 | <u>[Indenture, dated as of September 8, 2025, by and between Sierra Pacific Power Company and The Bank of New York Mellon Trust Company, N.A., as trustee](sppc93024ex45.htm)[.](sppc93024ex45.htm)</u> |
| 4.6 | <u>[First Supplemental Indenture, dated as of September 8, 2025, by and between Sierra Pacific Power Company and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to the 6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes](sppc93024ex46.htm)[due 2055.](sppc93024ex46.htm)</u> |
| 10.8 | <u>[Third Amendment to the $400,000,000 Fifth Amended and Restated Credit Agreement, dated as of June 30, 2025, among Sierra Pacific Power Company, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Lenders, Wells Fargo Bank, National Association, as Administrative Agent and the LC Issuing Banks](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)[8](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)[to the](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)[Sierra Pacific](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)[Power Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2025).](https://www.sec.gov/Archives/edgar/data/71180/000108131625000013/sppc63025ex108.htm)</u> |

---

<u>EASTERN ENERGY GAS</u>

---

| | |
|:---|:---|
| 15.6 | <u>[Awareness Letter of Independent Registered Public Accounting Firm.](eegh93025ex156.htm)</u> |
| 31.13 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](eegh93025ex3113.htm)</u> |
| 31.14 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](eegh93025ex3114.htm)</u> |
| 32.13 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](eegh93025ex3213.htm)</u> |
| 32.14 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](eegh93025ex3214.htm)</u> |

---

------

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |

---

<u>EASTERN GAS TRANSMISSION AND STORAGE</u>

---

| | |
|:---|:---|
| 31.15 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](egts93025ex3115.htm)</u> |
| 31.16 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](egts93025ex3116.htm)</u> |
| 32.15 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](egts93025ex3215.htm)</u> |
| 32.16 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](egts93025ex3216.htm)</u> |

---

<u>ALL REGISTRANTS</u>

---

| | |
|:---|:---|
| 101 | The following financial information from each respective Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is formatted in iXBRL (Inline eXtensible Business Reporting Language) and included herein: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements, tagged in summary and detail. |
| 104 | Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101. |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | **BERKSHIRE HATHAWAY ENERGY COMPANY** |
| Date: October 31, 2025 | /s/ Charles C. Chang |
|  | Charles C. Chang |
|  | Senior Vice President and Chief Financial Officer |
|  | (principal financial and accounting officer) |
|  | **PACIFICORP** |
| Date: October 31, 2025 | /s/ Nikki L. Kobliha |
|  | Nikki L. Kobliha |
|  | Senior Vice President and Chief Financial Officer |
|  | (principal financial and accounting officer) |
|  | **MIDAMERICAN FUNDING, LLC** |
|  | **MIDAMERICAN ENERGY COMPANY** |
| Date: October 31, 2025 | /s/ Blake M. Groen |
|  | Blake M. Groen |
|  | Vice President and Controller |
|  | of MidAmerican Funding, LLC and |
|  | Vice President and Chief Financial Officer |
|  | of MidAmerican Energy Company |
|  | (principal financial and accounting officer) |
|  | **NEVADA POWER COMPANY** |
| Date: October 31, 2025 | /s/ Michael J. Behrens |
|  | Michael J. Behrens |
|  | Vice President and Chief Financial Officer |
|  | (principal financial and accounting officer) |
|  | **SIERRA PACIFIC POWER COMPANY** |
| Date: October 31, 2025 | /s/ Michael J. Behrens |
|  | Michael J. Behrens |
|  | Vice President and Chief Financial Officer |
|  | (principal financial and accounting officer) |
|  | **EASTERN ENERGY GAS HOLDINGS, LLC** |
| Date: October 31, 2025 | /s/ Scott C. Miller |
|  | Scott C. Miller |
|  | Vice President, Chief Financial Officer and Treasurer |
|  | (principal financial and accounting officer) |
|  | **EASTERN GAS TRANSMISSION AND STORAGE, INC.** |
| Date: October 31, 2025 | /s/ Scott C. Miller |
|  | Scott C. Miller |
|  | Vice President, Chief Financial Officer and Treasurer |
|  | (principal financial and accounting officer) |

---

## Exhibit 3.1

**EXHIBIT 3.1**

**AMENDED AND RESTATED BYLAWS**

**OF**

**BERKSHIRE HATHAWAY ENERGY COMPANY, an Iowa corporation (the "Corporation")**

**ARTICLE I<br>OFFICES**

Section 1.<u>Principal Office</u>. The principal office of the corporation shall be in the City of Des Moines, Polk County, Iowa, or at such other place either within or without the State of Iowa as the Board of Directors may from time to time determine. The Corporation may also have an office or offices at such other place or places either within or without the State of Iowa as the Board of Directors may from time to time determine or the business of the Corporation may require.

Section 2.<u>Registered Office</u>. The registered office of the Corporation required by the Iowa Business Corporation Act to be maintained in the State of Iowa may be, but need not be, the same as the principal office of the Corporation in the State of Iowa, and the address of the registered office may be changed from time to time by the Board of Directors.

**ARTICLE II**<br>**SHAREHOLDERS' MEETINGS**

**Section 1.** <u>Place</u>. All meetings of the shareholders may be held at such place as the Board of Directors shall determine. The Board of Directors may, in its sole discretion, determine that the meeting shall not be held at any place, but may instead be held solely by means of remote communication as described in accordance with <u>Section 4</u> of <u>Article II</u> of these bylaws and Section 490.709 of the Iowa Business Corporation Act.

Section 2.<u>Annual Meetings</u>. Any annual meeting of shareholders may be held at such date and time determined by the Board of Directors, when they shall elect the Board of Directors and transact such other business as may properly be brought before the meeting, provided that in lieu of an annual meeting, shareholders may act by written consent to elect directors and take other corporate actions.

Section 3.<u>Special Meetings</u>. Special meetings of the shareholders for any purpose or purposes may be called by the President, or by the Chairman of the Board of Directors (if there be one), or by the Board of Directors, or by the holders of not less than one-tenth of all the shares entitled to vote at the meeting.

108824996.5<br>

------

Section 4.<u>Meetings by Remote Communications</u>. If authorized by the Board of Directors in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, shareholders of any class or series of shares not physically present at a meeting of shareholders may, by means of remote communication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)participate in a meeting of shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)be deemed present in person and vote at such meeting of shareholders whether such meeting is to be held at a designated place or solely by means of remote communication,

<u>provided</u>, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a shareholder or proxyholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the Corporation shall implement reasonable measures to provide such shareholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders, including an opportunity to communicate, and to read or hear the proceedings of the meeting, substantially concurrently with such proceedings.

Section 5.<u>Notice</u>. Notice, in accordance with the Iowa Business Corporation Act, stating the place, day and hour, and the means of remote communications, if any, of the annual meeting and of any special meeting, and in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given so that it is effective not less than ten (10) nor more than sixty (60) days before the date of the meeting, by or at the direction of the President, or the Secretary, or the officer or persons calling the meeting, to each shareholder of record entitled to vote at such meeting.

Section 6.<u>Right to Vote</u>. Only shareholders owning shares of stock of a class entitled to vote as required by the Iowa Business Corporation Act or as provided in the Articles of Incorporation of record on the books of the Corporation at the close of business on the day fixed by the Board of Directors as the record date for the determination of the shareholders entitled to vote at such meeting, shall be entitled to notice of and shall have the right to vote (either in person or by proxy) at such meeting.

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Section 7.<u>Fixing of Record Date</u>. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors may fix in advance a date as the record date for any such determination of shareholders, such date in any case to be not more than seventy (70) days prior to the date on which the particular action requiring such determination of shareholders is to be taken. Except as otherwise provided by the Iowa Business Corporation Act or the Articles of Incorporation, if no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to receive payment of a dividend, the date on which notice of the meeting is mailed or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of shareholders. When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this <u>Section 7</u>, such determination shall apply to any adjournment thereof, except that the Board of Directors must fix a new record date if the meeting is adjourned to a date more than one hundred twenty (120) days after the date fixed for the original meeting.

Section 8.<u>Shareholders' List</u>. The officer having charge of the stock transfer books for shares of stock of the Corporation shall make a complete list of the shareholders entitled to vote at a meeting of shareholders or any adjournment thereof, arranged in alphabetical order, with the registered address of and the number of shares held by each, which list shall be kept on file at the office of the Corporation and shall be subject to inspection, in accordance with Section 490.720 of the Iowa Business Corporation Act, by any shareholder at any time during usual business hours beginning two business days after notice of such meeting is given for which such list was prepared. Such list shall also include the electronic mail or other electronic transmission address of a shareholder if notice or other communication regarding the meeting has been or will be sent by the Corporation to such shareholder by electronic mail or other electronic transmission. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to the inspection of any shareholder during the whole time of the meeting. The original stock transfer books shall be prima facie evidence as to who are the shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders. Failure to comply with the requirement of this <u>Section 8</u> shall not affect the validity of any action taken at any such meeting.

Section 9.<u>Proxies</u>. At all meetings of shareholders, a shareholder may vote either in person or by proxy executed in writing by the shareholder or by the duly authorized agent or attorney-in-fact of such shareholder. Such proxy and any revocation thereof shall be filed with the Secretary of the Corporation. No proxy shall be valid after eleven (11) months from the date of its execution, unless otherwise provided in the proxy. A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date.

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Section 10.<u>Quorum</u>. The holders of a majority of the votes of the shares entitled to vote thereat, represented in person or by proxy, shall constitute a quorum for the transaction of business at all meetings of the shareholders except as otherwise provided by the Iowa Business Corporation Act, the Articles of Incorporation or these bylaws. The holders of a majority of the votes of the shares present in person or by proxy at any meeting and entitled to vote thereat shall have power successively to adjourn the meeting to a specified date whether or not a quorum be present. The time and place to which any such adjournment is taken shall be publicly announced at the meeting, and no further notice thereof shall be necessary unless a new record date is or must be fixed for the adjourned meeting in accordance with <u>Section 7</u> of <u>Article II</u> of these bylaws. At any such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally called.

Section 11.<u>Votin</u>g. Each holder of the Corporation's common stock, no par value, shall be entitled to one vote for each share held by such holder. If a quorum is present, the affirmative vote of the majority of the votes of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the shareholders, unless the vote of a greater number or voting by classes is required by the Iowa Business Corporation Act or the Articles of Incorporation. Unless determined by the Chairman of the meeting to be advisable, the vote on any matter, including the election of directors, need not be by written ballot.

Section 12.<u>Officers</u> <u>of</u> <u>the</u> <u>Meeting-Powers</u>. The Chairman of the Board of Directors (if there be one), or in the absence of the Chairman of the Board, the President of the Corporation shall call meetings of the shareholders to order and shall act as chairman thereof. The Board of Directors may appoint any shareholder to act as chairman of any meeting in the absence of the Chairman of the Board of Directors and the President, and in the case of the failure of the Board of Directors to appoint a chairman, the shareholders present at the meeting shall elect a chairman who shall be either a shareholder or a proxy of a shareholder.

The Secretary of the Corporation shall act as secretary at all meetings of shareholders. In the absence of the Secretary at any meeting of shareholders, the chairman may appoint any person to act as secretary of the meeting.

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Section 13.<u>Conduct of Meeting</u>. The date and time of the opening and the closing of the polls for each matter upon which the shareholders will vote at a meeting shall be announced at the meeting by the chairman. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of shareholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the chairman of the meeting shall have the right and authority to convene and to adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of the chairman, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the chairman of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the presiding person of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The chairman at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting and if such presiding person should so determine, such presiding person shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board of Directors or the chairman of the meeting, meetings of shareholders shall not be required to be held in accordance with the rules of parliamentary procedure.

Section 14.<u>Adjournment</u>. At any meeting of shareholders of the Corporation, whether or not a quorum is present, a majority in voting power of the shareholders entitled to vote thereat, present in person or represented by proxy, shall have the power to adjourn the meeting from time to time. If a meeting is so adjourned to a different date, time, or place, then so long as such new date, time or place is announced at the meeting before adjournment, notice need not be given of the new date, time or place unless a new record date for the adjourned meeting is or must be fixed for the adjourned meeting in accordance with <u>Section 7</u> of <u>Article II</u> of these bylaws. Any business may be transacted at the adjourned meeting that might have been transacted at the meeting originally noticed.

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Section 15.<u>Action</u> <u>Without</u> <u>Meeting</u>. Any action required or permitted to be taken at any annual or special meeting of shareholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding shares having not less than ninety percent (90%) of the votes entitled to vote at the meeting at which all shares entitled to vote on the action were present and voted and shall be delivered to the Corporation by delivery to its registered office in the State of Iowa, its principal place of business, or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of shareholders are recorded. Delivery made to the Corporation's registered office shall be by hand or by certified or registered mail, return receipt requested. If written consents signed by sufficient shareholders to take an action have been delivered in accordance with this <u>Section 15</u>, then unless the Board of Directors has provided for a reasonable delay to permit tabulation of such written consents, within ten (10) days the Corporation shall give notice to any shareholder who has not consented in writing.

**ARTICLE III**

**BOARD OF DIRECTORS**

**Section 1.** <u>Powers</u>. The business and affairs of the Corporation shall be managed by the Board of Directors.

Section 2.<u>Number and Qualification of Directors</u>. Except as may be otherwise provided by the Articles of Incorporation, the number of members of the Board of Directors shall initially consist of one or more members, and afterwards, such number of members within that range as may be determined from time to time by resolution of the Board of Directors, who shall be elected at the annual meeting of shareholders or otherwise pursuant to these Bylaws. A director may, but need not be, a shareholder or a resident of the State of Iowa. Except as may be otherwise provided by the Articles of Incorporation, each director shall be elected to serve until the next annual meeting of shareholders, if any, or until his or her successor is elected and qualified or until his or her earlier death, resignation, disqualification or removal.

Section 3.<u>Resignations</u>. Any director may resign at any time upon notice given in writing or by electronic transmission to the Board of Directors, the Chairman of the Board of Directors, or the Secretary. The resignation shall take effect at the time specified therein, and if no time is specified, at the time of its receipt by the Board of Directors, the Chairman of the Board of Directors, or Secretary, as the case may be. Unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 4.<u>Removal</u>. Any director or the entire Board of Directors may be removed either with or without cause at any time by the affirmative vote of the holders of a majority in voting power of the outstanding shares then entitled to vote for the election of directors at any annual or special meeting of the shareholders called for that purpose or by written consent as permitted by law.

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Section 5.<u>Vacancies</u>. If a vacancy in the Board of Directors shall occur by reason of death, resignation, retirement, disqualification, removal from office, an increase in the number of members, or otherwise, a majority of the remaining directors, though less than a quorum, may appoint a director to fill such vacancy, who shall hold office for the unexpired term of the directorship in respect of which such vacancy occurred or for the full term of any new directorship caused by any increase in the number of members.

Section 6.<u>Regular Meetings</u>. If the Board wishes to hold any regular meetings, any regular meeting of the Board of Directors may be held, without notice other than this bylaw, immediately after, and at the same place as, any annual meeting of shareholders. The Board of Directors may provide, by resolution or by written consent, the time and place, either within or without the State of Iowa, for the holding of additional regular meetings without other notice than such resolution.

Section 7.<u>Special</u> <u>Meetings</u>. Special meetings of the Board of Directors may be called by the President or by the Secretary on the written or electronic transmission of such request of any director and may be held at such place as may be determined by the directors or as may be stated in the notice of the meeting.

Section 8.<u>Manner of Giving Notice of Meetings</u>. Except as provided by law, notice of regular meetings need not be given. Notice of the time and place of any special meeting shall be given to each director by the Secretary or another officer of the Corporation. Notice of each such meeting shall be given to each director, if by mail, addressed to such director at his or her residence or usual place of business and deposited in a United States post office at least one day before the day on which such meeting is to be held, or by electronic transmission, telegraph, telecopy, cable or wireless addressed to such director or delivered personally or by telephone at least twenty-four (24) hours before the time at which such meeting is to be held. The notice of any meeting need not specify the purpose thereof.

Section 9.<u>Waiver of Notice</u>. Whenever any notice is required to be given to directors under the provisions of the Iowa Business Corporation Act or of the Articles of Incorporation or these bylaws, a waiver thereof in writing signed by the director entitled to such notice, whether before, at or after the time stated therein, shall be deemed equivalent thereto. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting unless (i) such director at the beginning of the meeting, or promptly upon arrival, objects to holding the meeting or transacting business at the meeting and (ii) such director does not, after objecting, vote for or assent to action taken at the meeting.

Section 10.<u>Quorum, Voting and Adjournment</u>. A majority of the total number of directors shall constitute a quorum for the transaction of business. The vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors. In the absence of a quorum, a majority of the directors present thereat may adjourn such meeting to another time and place. Notice of such adjourned meeting need not be given if the time and place of such adjourned meeting are announced at the meeting so adjourned.

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Section 11.<u>Executive</u> <u>and</u> <u>Other</u> <u>Committees</u>. The Board of Directors may, by resolution adopted by a majority of the number of directors fixed in accordance with <u>Article</u> <u>III</u>, <u>Section</u> <u>2</u> of these bylaws, designate from among its members an executive committee and one or more other committees each of which, to the extent provided in such resolution and permitted by the Iowa Business Corporation Act, shall have and may exercise all the authority of the Board of Directors.

Section 12.<u>Compensation</u> <u>of</u> <u>Directors</u>. The Board of Directors shall have the authority to fix the compensation of directors. In addition, as determined by the Board of Directors, directors may be reimbursed by the Corporation for their expenses, if any, in the performance of their duties as directors. Any director may serve the Corporation in any other capacity and receive compensation therefor.

Section 13.<u>Indemnification</u> <u>of</u> <u>Directors,</u> <u>Officers</u> <u>and</u> <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Right to Indemnification</u>. Each person who was or is a party or is threatened to be made a party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative or arbitration and whether formal or informal ("<u>proceeding</u>"), by reason of the fact that he or she, or a person of whom he or she is the legal representative, is or was a director, officer or partner, trustee employee of the corporation or is or was serving at the request of the corporation as a director, officer or employee of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity while serving as a director, officer or employee or in any other capacity while serving as a director, officer or employee, shall be indemnified and held harmless by the corporation to the fullest extent authorized by the Iowa Business Corporation Act, as the same exists or may hereafter be amended, (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than the Iowa Business Corporation Act permitted the corporation to provide prior to such amendment), against all reasonable expenses, liability and loss (including, without limitation, attorneys' fees, all costs, judgments, fines, Employee Retirement Income Security Act excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith. Such right shall be a contract right and shall include the right to be paid by the corporation expenses incurred in defending any such proceeding in advance of its final disposition; provided, however, that, the payment of such expenses incurred by a director, officer or employee in his or her capacity as a director, officer or employee (and not in any other capacity in which service was or is rendered by such person while a director, officer or employee including, without limitation, service to an employee benefit plan) in advance of the final disposition of such proceeding, shall be made only upon due authorization by a majority of disinterested directors or shareholders of the corporation and upon delivery to the corporation of (i) a written undertaking, by or on behalf of such director, officer or employee to repay all amounts so advanced if it should be determined ultimately that such director, officer or employee is not entitled to be indemnified under this Section or otherwise, or (ii) a written affirmation by or on behalf of such director, officer or employee that, in such person's good faith belief, such person has met the standards of conduct set forth in the Iowa Business Corporation Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Right to Advancement of Expenses</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In addition to the right to indemnification conferred in <u>Section 13(a)</u> of this <u>Article III</u>, an indemnitee shall, to the fullest extent permitted by law, also have the right to be paid by the Corporation the expenses (including attorneys' fees) incurred in defending any proceeding in advance of its final disposition (hereinafter an "<u>advancement of expenses</u>"); <u>provided</u>, however, that an advancement of expenses shall be made only upon delivery to the Corporation of an undertaking (hereinafter an "<u>undertaking</u>"), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision of a court of competent jurisdiction from which there is no further right to appeal (hereinafter a "<u>final adjudication</u>") that such indemnitee is not entitled to be indemnified for such expenses under this <u>Section 13(a)</u> of <u>Article III</u> or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)To receive an advancement of expenses under this <u>Section 13(b)</u> of <u>Article III</u>, an indemnitee shall submit a written request to the Secretary of the Corporation. Such request shall reasonably evidence the expenses incurred by the indemnitee and shall include or be accompanied by the undertaking required by <u>Section 13(b)(i)</u> of <u>Article III</u>. Each such advancement of expenses shall be made within twenty (20) days after the receipt by the Secretary of the Corporation of a written request for advancement of expenses and approval by either the Board of Directors or shareholders in accordance with Section 490.853 of the Iowa Business Corporation Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Notwithstanding the foregoing <u>Section 13(b)(i)</u> of this <u>Article III</u>, the Corporation shall not make or continue to make advancements of expenses to an indemnitee if a determination is reasonably made that the facts known at the time such determination is made demonstrate clearly and convincingly that the indemnitee acted in bad faith or in a manner that the indemnitee did not reasonably believe to be in or not opposed to the best interests of the Corporation, or, with respect to any criminal proceeding, that the indemnitee had reasonable cause to believe his or her conduct was unlawful. Such determination shall be made: (i) by the Board of Directors by a majority vote of directors who are not parties to such proceeding, whether or not such majority constitutes a quorum; (ii) by a committee of such directors designated by a majority vote of such directors, whether or not such majority constitutes a quorum; or (iii) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Indemnification for Successful Defense</u>. To the extent that a current or former director has been successful on the merits or otherwise in defense of any proceeding (or in defense of any claim, issue or matter therein), such current or former director shall be indemnified under this <u>Section 13(c)</u> of <u>Article III</u> against expenses (including attorneys' fees) actually and reasonably incurred in connection with such defense. Indemnification under this <u>Section 13(c)</u> of <u>Article III</u> shall not be subject to satisfaction of a standard of conduct, and the Corporation may not assert the failure to satisfy a standard of conduct as a basis to deny indemnification or recover amounts advanced, including in a suit brought pursuant to <u>Section 13(d)</u> of this <u>Article III</u> (notwithstanding anything to the contrary therein).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Right of Claimant to Bring Suit</u>. If a claim under paragraph (a) is not paid in full by the corporation within thirty (30) days after a written claim has been received by the corporation, the claimant may at any time thereafter bring suit against the corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expenses of prosecuting such claim. It shall be a defense to any such action that the claimant has not met the standards of conduct which make it permissible under the Iowa Business Corporation Act for the corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the corporation. The failure of the corporation (including its Board of Directors, independent legal counsel, or its shareholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the Iowa Business Corporation Act, shall not be a defense to the action or create a presumption that claimant had not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Benefit</u>. Indemnification provided hereunder shall, in the case of the death of the person entitled to indemnification, inure to the benefit of such person's heirs, executors or other lawful representatives. The invalidity or unenforceability of any provision of this <u>Section 13</u> of <u>Article III</u> shall not affect the validity or enforceability of any other provision of this <u>Section 13</u> of <u>Article III</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Certain Actions; Presumption of Standard of Conduct</u>. Any action taken or omitted to be taken by any director, officer or employee in good faith and in compliance with or pursuant to any order, determination, approval or permission made or given by a commission, board, official or other agency of the United States or of any state or other governmental authority with respect to the property or affairs of the corporation or any such business corporation, not-for- profit corporation, joint venture, trade association or other entity over which such commission, board, official or agency has jurisdiction or authority or purports to have jurisdiction or authority shall be presumed to be in compliance with the standard of conduct set forth in Section 490.851 (or any successor provision) of the Iowa Business Corporation Act whether or not it may thereafter be determined that such order, determination, approval or permission was unauthorized, erroneous, unlawful or otherwise improper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Litigation; Presumption of Standard of Conduct</u>. Unless finally determined, the termination of any litigation, whether by judgment, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that the action taken or omitted to be taken by the person seeking indemnification did not comply with the standard of conduct set forth in Section 490.851 (or successor provision) of the Iowa Business Corporation Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Non-Exclusivity of Rights</u>. The rights conferred on any person by this <u>Section 13</u> of <u>Article III</u> shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of the Articles of Incorporation, as amended, bylaws, agreement, vote of shareholders or disinterested directors or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Insurance</u>. The corporation may maintain insurance, at its expense, to protect itself and any such director, officer or employee of the corporation or another corporation, partnership, joint venture, trust or other enterprise against any such expense, liability or loss, whether or not the corporation would have the power to indemnify such person against such expense, liability or loss under the Iowa Business Corporation Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Subrogation</u>. In the event of payment under this <u>Section 13</u> of <u>Article III</u>, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of the indemnitee (excluding insurance obtained on the indemnitee's own behalf), and the indemnitee shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Severability</u>. If any provision or provisions of this <u>Section 13</u> of <u>Article III</u> shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law: (a) the validity, legality and enforceability of such provision in any other circumstance and of the remaining provisions of <u>Section 13</u> of <u>Article III</u> (including, without limitation, all portions of any paragraph of this <u>Section 13</u> of <u>Article III</u> containing any such provision held to be invalid, illegal or unenforceable, that are not by themselves invalid, illegal or unenforceable) and the application of such provision to other persons or entities or circumstances shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this <u>Section 13</u> of <u>Article III</u> (including, without limitation, all portions of any paragraph of this <u>Section 13</u> of <u>Article III</u> containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent of the parties that the Corporation provide protection to the indemnitee to the fullest extent set forth in this <u>Section 13</u> of <u>Article III</u>.

Section 14.<u>Action</u> <u>by</u> <u>Directors</u> <u>Without</u> <u>a</u> <u>Meeting</u>. Any action required to be taken at a meeting of the Board of Directors or a committee of directors and any other action which may be taken at a meeting of the Board of Directors or a committee of directors may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors or all of the members of the committee of directors, as the case may be, entitled to vote with respect to the subject matter thereof.

Section 15.<u>Remote Meeting</u>. Members of the Board of Directors, or any committee designated by the Board of Directors, may participate in a meeting by means of conference telephone or other communications equipment in which all persons participating in the meeting can simultaneously hear each other during the meeting. Participation in a meeting by this means shall be deemed the presence in person at such meeting.

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**ARTICLE IV**

**OFFICERS**

Section 1.<u>Number and Term</u>. At the first regular meeting of the Board of Directors following each annual meeting of the shareholders, if any, the Board of Directors shall elect a President, a Secretary and a Treasurer; and the Board of Directors may at any meeting elect or appoint a Chairman of the Board of Directors, vice presidents and other officers or assistants to officers. The Chairman of the Board of Directors (if there be one) shall be selected from among the members of the Board of Directors. Other officers may be, but are not required to be, directors. An officer may be, but need not be, a shareholder of the Corporation.

Subject to the power of the Board of Directors to remove any officer from office at any time when in its judgment the best interests of the Corporation will be served thereby, each officer shall serve until the successor of such officer is elected or appointed, unless his tenure of office is otherwise fixed by the Board of Directors by resolution, contract or agreement for a different period of time.

Section 2.<u>Chairman of the Board of Directors</u>. The Chairman of the Board of Directors (if there be one) shall preside at all meetings of the shareholders and of the directors, at which the Chairman is present. The Chairman shall perform all duties incident to the office of Chairman of the Board of Directors and such other duties as, from time to time, may be assigned to the Chairman by the Board of Directors, and, if so designated by an appropriate resolution of the Board of Directors or an agreement between the Chairman and the Corporation, shall be the chief executive officer of the Corporation, subject, however, to the right of the Board of Directors to delegate any specific power to any other officer or officers of the Corporation; and the Chairman shall see that all orders and resolutions of the Board of Directors are carried into effect.

Section 3.<u>President</u>. The President of the Corporation shall have general and active management of and exercise general supervision of the business and affairs of the Corporation and, if so designated by an appropriate resolution of the Board of Directors, or an agreement between the President and the Corporation, shall be the chief operating officer of the Corporation, subject, however, to the right of the Board of Directors to delegate any specific power to any other officer or officers of the Corporation; and the President shall see that all orders and resolutions of the Board of Directors are carried into effect. The President shall have concurrent power with the Chairman of the Board of Directors to sign bonds, mortgages, certificates for shares, and other contracts and documents, except in cases where the signing and execution thereof shall be expressly delegated by law, by the Board of Directors, or by these bylaws to some other officer of the Corporation. In the absence of the Chairman of the Board of Directors or in the event of the disability or refusal of the Chairman to act, the President shall have such other powers as are vested in the Chairman of the Board of Directors. In general, the President shall perform the duties incident to the office of President and such other duties as may be prescribed by the Board of Directors from time to time.

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Section 4.<u>Vice Presidents</u>. The vice presidents shall perform such of the duties and exercise such of the powers of the President as shall be assigned to them from time to time by the Board of Directors or the President, and shall perform such other duties as the Board of Directors or the President shall from time to time prescribe. Any vice president may sign certificates for shares of the Corporation and any deeds, mortgages, bonds, contracts or other instruments which the Board of Directors has authorized to be executed, which authorizations may be either specific or general.

Section 5.<u>Secretary</u>. The Secretary shall attend all meetings of the shareholders and of the Board of Directors and shall keep the minutes of such meetings. The Secretary shall perform like duties for the standing committees of the Board of Directors when required. Except as otherwise provided by these bylaws or by the Iowa Business Corporation Act, the Secretary shall give, or cause to be given, notice of all meetings of the shareholders and of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President.

The Secretary shall have custody of the minute books, containing the minutes of shareholders' and directors' meetings, of the stock books of the Corporation, and of all corporate records. The Secretary shall have the duty to see that the books, reports, statements, certificates and all other documents and reports of the Corporation required by law are properly prepared, kept and filed. The Secretary shall, in general, perform all duties incident to the office of Secretary.

Section 6.<u>Assistant Secretaries</u>. The assistant secretaries shall perform such of the duties and exercise such of the powers of the Secretary as shall be assigned to them from time to time by the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President or the Secretary, and shall perform such other duties as the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President shall from time to time prescribe.

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Section 7.<u>Treasurer</u>. The Treasurer shall have the custody of all moneys, stocks, bonds and other securities of the Corporation, and of all other papers on which moneys are to be received and of all papers which relate to the receipt or delivery of the stocks, bonds, notes and other securities of the Corporation in the possession of the Treasurer. The Treasurer is authorized to receive and receipt for stocks, bonds, notes and other securities belonging to the Corporation or which are received for its account, and to place and keep the same in safety deposit vaults rented for the purpose, or in safes or vaults belonging to the Corporation. The Treasurer is authorized to collect and receive all moneys due the Corporation and to receipt therefor, and to endorse all checks, drafts, vouchers or other instruments for the payment of money payable to the Corporation when necessary or proper and to deposit the same to the credit of the Corporation in such depositaries as the Treasurer may designate for the purpose, and the Treasurer may endorse all commercial documents for or on behalf of the Corporation. The Treasurer is authorized to pay interest on obligations when due and dividends on stock when duly declared and payable. The Treasurer shall, when necessary or proper, disburse the funds of the Corporation, taking proper vouchers for such disbursements. The Treasurer shall cause to be kept in the office of the Treasurer true and full accounts of all receipts and disbursements, and shall render to the Board of Directors and the Chairman of the Board of Directors (if there be one) or the President, whenever they may require it, an account of all the transactions as Treasurer and of the financial condition of the Corporation. The Treasurer shall also perform such other duties as may be prescribed by the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President. The Treasurer shall, in general, perform all duties usually incident to the office of Treasurer.

Section 8.<u>Assistant</u> <u>Treasurers</u>. The assistant treasurers shall perform such of the duties and exercise such of the powers of the Treasurer as shall be assigned to them from time to time by the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President or the Treasurer, and shall perform such other duties as the Board of Directors or the Chairman of the Board of Directors (if there be one) or the President shall from time to time prescribe.

Section 9.<u>Compensation</u>. The Board of Directors shall have power to fix the compensation of each officer, to decrease or increase such compensation, to prescribe the duties of such officer, to change the nature of such duties, or to remove such officer from office and elect or appoint the successor of such officer, in each case subject to the terms of any agreement between such officer and the Corporation. Nothing contained herein shall preclude any officer from serving the Corporation, or any subsidiary, in any other capacity and receiving such compensation by reason of the fact that he or she is also a director of the Corporation.

Section 10.<u>Resignation and Removal</u>. Any officer may resign at any time in the same manner prescribed under <u>Section 3</u> of <u>Article III</u> of these bylaws. Any officer of the Corporation may be removed from office for or without cause at any time by the Board of Directors.

Section 11.<u>Vacancies</u>. The Board of Directors shall have power to fill vacancies occurring in any office.

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**ARTICLE V**

**STOCK CERTIFICATES**

Section 1.<u>Registrars</u> <u>and</u> <u>Transfer</u> <u>Agents</u>. Subject to the Articles of Incorporation of the Corporation, the Corporation may authorize the issue of some or all of the shares of any or all of the classes of its capital stock without certificates. If the Board of Directors wishes to authorize any certificated shares, it shall determine the form of and provide for the issue, registration and transfer of the stock certificates of the Corporation, and may appoint registrars and transfer agents, who may be natural persons or Corporations; <u>provided</u>, <u>however</u>, that the form of any such certificate must comply with Section 490.625 of the Iowa Business Corporation Act and, at minimum, state on its face (i) the name of the Corporation and that it is organized under the laws of the State of Iowa, (ii) the name of the shareholder to whom such certificate has been issued, and (iii) the number and class of shares and the designation of the series, if any, the certificate represents; <u>provided</u>, <u>further</u>, that if the Corporation issues uncertificated shares, then within a reasonable time after such issuance the Corporation must deliver to the applicable shareholder a written statement of the information required on certificates by Section 490.625 and, if applicable, Section 490.627 of the Iowa Business Corporation Act. The office of any transfer agent or registrar may be maintained within or without the State of Iowa.

Section 2.<u>Signatures</u>. Any stock certificates issued by the Corporation shall bear the signatures of the Chairman of the Board of Directors (if there be one) or the President or any Vice President and of the Secretary or any assistant secretary and such officers are hereby authorized and empowered to sign such certificates when the issuance thereof has been duly authorized by the Board of Directors; provided, however, that if certificates representing shares of any class or series of stock issued by the Corporation are countersigned by manual signature by a transfer agent, other than the Corporation or its employee, or registered by manual signature by a registrar, other than the Corporation or its employee, any other signature on such certificate may be a facsimile, engraved, stamped or printed. In case any officer who has signed or whose facsimile signature has been placed upon such certificate for the Corporation shall cease to be such officer of the Corporation before such certificate is issued, such certificate may be issued by the Corporation with the same effect as if he were such officer at the date of its issue.

Section 3.<u>Transfers</u>. Transfers of shares shall be made on the books of the Corporation only by the registered owner thereof (or the legal representative of such owner, upon satisfactory proof of authority therefor), or by the attorney of such owner lawfully constituted in writing by documents filed with the Secretary or transfer agent of the Corporation, and only upon surrender of the certificate to be transferred, or delivery of an order of such owner if such shares are not represented by a certificate, and payment of applicable taxes with respect to such transfer, unless otherwise ordered by the Board of Directors.

Section 4.<u>Lost</u> <u>or</u> <u>Destroyed</u> <u>Certificates</u>. If applicable, any new certificates may be issued to replace lost, stolen or destroyed certificates, upon such terms and conditions as the Board of Directors may prescribe.

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Section 5.<u>Rights</u> <u>of</u> <u>Registered</u> <u>Owners</u>. The Corporation shall be entitled to recognize the exclusive right of a person registered or shown on its books as the owner of shares of its stock to receive dividends or any other distribution thereon, or to vote such shares, and to treat such person as the owner of such shares for all purposes and the Corporation shall not be bound to recognize any equitable or other claim to or interest in its shares on the part of any person other than the registered or record owner thereof, whether or not it shall have notice thereof.

**ARTICLE VI**<br>**GENERAL PROVISIONS**

**Section 1.** <u>Instruments Affecting Real Estate</u>. Deeds, mortgages and other instruments affecting real estate owned by the Corporation, the execution of which has been duly authorized by the Board of Directors, shall be signed on behalf of the Corporation by the Chairman of the Board of Directors (if there be one) or the President or any vice president and by the Secretary or any assistant secretary. Leases, contracts to purchase, and other instruments whereby the Corporation acquires, in the ordinary course of business, an interest in real estate owned by others may be executed on behalf of the Corporation by the Chairman of the Board of Directors (if there be one), the President or by any officer or employee of the Corporation thereunto authorized by the Chairman of the Board of Directors (if there be one) or the President, without obtaining specific authorization therefor from the Board of Directors.

Section 2.<u>Other Instruments</u>. Bonds, notes and other secured or unsecured obligations of the Corporation, when duly authorized by the Board of Directors, may be executed on behalf of the Corporation by the Chairman of the Board of Directors (if there be one) or the President or any vice president, or by any other officer or officers thereunto duly authorized by the Board of Directors and the signature of any such officer may, if the Board of Directors shall so determine, be a facsimile. Contracts and other instruments executed in the ordinary course of business may be signed on behalf of the Corporation by the Chairman of the Board of Directors (if there be one) or the President or by any officer or employee of the Corporation thereunto authorized by the Chairman of the Board of Directors (if there be one) or the President, without obtaining specific authorization therefor from the Board of Directors.

Section 3.<u>Fiscal</u> <u>Year</u>. The fiscal year of the Corporation shall be the calendar year.

Section 4.<u>No Corporate Seal</u>. The Corporation shall have no corporate seal.

Section 5.<u>Stock in Other Corporations</u>. Unless otherwise ordered by the Board of Directors, the Chairman of the Board of Directors (if there be one) or the President or any vice president of the Corporation (i) shall have full power and authority to act and vote, in the name and on behalf of this Corporation, at any meeting of shareholders of any Corporation in which this Corporation may hold stock, and at any such meeting shall possess and may exercise any and all of the rights and powers incident to the ownership of such stock, and (ii) shall have full power and authority to execute, in the name and on behalf of this Corporation, proxies authorizing any suitable person or persons to act and to vote at any meeting of shareholders of any Corporation in which this Corporation may hold stock, and at any such meeting the person or persons so designated shall possess and may exercise any and all of the rights and powers incident to the ownership of such stock.

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Section 6.<u>Inconsistent Provisions; Changes in Iowa Law</u>. If any provision of these bylaws is or becomes inconsistent with any provision of the Articles or Certificate of Incorporation, the Iowa Business Corporation Act or any other applicable law, the provision of these bylaws shall not be given any effect to the extent of such inconsistency but shall otherwise be given full force and effect. If any of the provisions of the Iowa Business Corporation Act referred to above are modified or superseded, the references to those provisions is to be interpreted to refer to the provisions as so modified or superseded.

**ARTICLE VII<br>AMENDMENTS**

These bylaws may be altered, amended or repealed and new bylaws may be adopted by vote of a majority of the Board of Directors at any regular or special meeting of the Board of Directors or as otherwise provided herein.

Date of Adoption: **August 7, 2025.**

## Exhibit 4.5

**EXHIBIT 4.5**

SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY

AND

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

Indenture

Dated as of September 8, 2025

Subordinated Debt Securities

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**Reconciliation and tie between**

**the Trust Indenture Act of 1939**

**and Indenture, dated as of September 8, 2025 \***

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| | | |
|:---|:---|:---|
| **Trust Indenture Act Section** | **Trust Indenture Act Section** | **Indenture Section** |
| Section 310 | (a)(1) | 6.09 |
|  | (a)(2) | 6.09 |
|  | (a)(3) | Not Applicable |
|  | (a)(4) | Not Applicable |
|  | (a)(5) | 6.08, 6.10 |
|  | (b) | 6.08, 6.10 |
| Section 311 | (a) | 6.13 |
|  | (b) | 6.13 |
| Section 312 | (a) | 7.01, 7.02(a) |
|  | (b) | 7.02(b) |
|  | (c) | 7.03 |
| Section 313 | (a) | 7.03 |
|  | (b) | 7.03 |
|  | (c) | 7.03 |
|  | (d) | 7.03 |
| Section 314 | (a) | 7.04, 10.05 |
|  | (b) | Not Applicable |
|  | (c)(1) | 1.02 |
|  | (c)(2) | 1.02 |
|  | (c)(3) | Not Applicable |
|  | (d) | Not Applicable |
|  | (e) | 1.02 |
|  | (f) | Not Applicable |
| Section 315 | (a) | 6.01 |
|  | (b) | 6.02 |
|  | (c) | 6.01 |
|  | (d) | 6.01 |
|  | (e) | 5.14 |
| Section 316 | (a) | 1.01 |
|  | (a)(1)(A) | 5.12 |
|  | (a)(1)(B) | 5.13 |
|  | (a)(2) | Not Applicable |
|  | (b) | 5.08 |
| Section 317 | (a)(1) | 5.03 |
|  | (a)(2) | 5.04 |
|  | (b) | 10.03 |
| Section 318 | (a) | 1.07 |
|  | (c) | 1.07 |

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\* This table shall not, for any purpose, be deemed to be a part of this Indenture.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | | **Page** |
| **ARTICLE I. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION** | **ARTICLE I. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION** | |
| &nbsp;&nbsp;Section 1.01 | Definitions | 1 |
| &nbsp;&nbsp;Section 1.02 | Compliance Certificates and Opinions | 6 |
| &nbsp;&nbsp;Section 1.03 | Form of Documents Delivered to Trustee | 7 |
| &nbsp;&nbsp;Section 1.04 | Acts of Holders; Record Dates | 7 |
| &nbsp;&nbsp;Section 1.05 | Notices, Etc., to Trustee and Company | 8 |
| &nbsp;&nbsp;Section 1.06 | Notice to Holders; Waiver | 9 |
| &nbsp;&nbsp;Section 1.07 | Conflict with Trust Indenture Act | 9 |
| &nbsp;&nbsp;Section 1.08 | Effect of Headings and **Table of Contents** | 10 |
| &nbsp;&nbsp;Section 1.09 | Successors and Assigns | 10 |
| &nbsp;&nbsp;Section 1.10 | Separability Clause | 10 |
| &nbsp;&nbsp;Section 1.11 | Benefits of Indenture | 10 |
| &nbsp;&nbsp;Section 1.12 | Governing Law | 10 |
| &nbsp;&nbsp;Section 1.13 | Legal Holidays | 10 |
| &nbsp;&nbsp;Section 1.14 | Waiver of Jury Trial | 10 |
| &nbsp;&nbsp;Section 1.15 | Force Majeure | 10 |
| &nbsp;&nbsp;Section 1.16 | Submission to Jurisdiction | 11 |
| &nbsp;&nbsp;Section 1.17 | FATCA | 11 |
| &nbsp;&nbsp;Section 1.18 | Counterparts | 11 |
| **ARTICLE II. SECURITY FORMS** | **ARTICLE II. SECURITY FORMS** |  |
| &nbsp;&nbsp;Section 2.01 | Forms of Securities | 11 |
| &nbsp;&nbsp;Section 2.02 | Form of Trustee's Certificate of Authentication | 12 |
| &nbsp;&nbsp;Section 2.03 | Securities in Global Form | 12 |
| **ARTICLE III. THE SECURITIES** | **ARTICLE III. THE SECURITIES** |  |
| &nbsp;&nbsp;Section 3.01 | Amount Unlimited; Issuable in Series | 12 |
| &nbsp;&nbsp;Section 3.02 | Denominations | 14 |
| &nbsp;&nbsp;Section 3.03 | Execution, Authentication, Delivery and Dating | 14 |
| &nbsp;&nbsp;Section 3.04 | Temporary Securities | 15 |
| &nbsp;&nbsp;Section 3.05 | Registration, Registration of Transfer and Exchange and Book-Entry Securities | 16 |
| &nbsp;&nbsp;Section 3.06 | Mutilated, Destroyed, Lost and Stolen Securities | 18 |
| &nbsp;&nbsp;Section 3.07 | Payment of Interest; Interest Rights Preserved | 18 |
| &nbsp;&nbsp;Section 3.08 | Persons Deemed Owners | 19 |
| &nbsp;&nbsp;Section 3.09 | Cancellation | 19 |
| &nbsp;&nbsp;Section 3.10 | Computation of Interest | 19 |
| &nbsp;&nbsp;Section 3.11 | CUSIP Numbers | 20 |
| &nbsp;&nbsp;Section 3.12 | Deferrals of Interest Payment Dates | 20 |
| **ARTICLE IV. SATISFACTION AND DISCHARGE** | **ARTICLE IV. SATISFACTION AND DISCHARGE** |  |
| &nbsp;&nbsp;Section 4.01 | Satisfaction and Discharge of Indenture | 20 |
| &nbsp;&nbsp;Section 4.02 | Application of Trust Money | 21 |
| **ARTICLE V. EVENTS OF DEFAULT; REMEDIES** | **ARTICLE V. EVENTS OF DEFAULT; REMEDIES** |  |
| &nbsp;&nbsp;Section 5.01 | Events of Default | 21 |
| &nbsp;&nbsp;Section 5.02 | Acceleration of Maturity; Rescission and Annulment | 22 |
| &nbsp;&nbsp;Section 5.03 | Collection of Indebtedness and Suits for Enforcement by Trustee | 23 |
| &nbsp;&nbsp;Section 5.04 | Trustee May File Proofs of Claim | 24 |
| &nbsp;&nbsp;Section 5.05 | Trustee May Enforce Claims Without Possession of Securities | 24 |
| &nbsp;&nbsp;Section 5.06 | Application of Money Collected | 25 |
| &nbsp;&nbsp;Section 5.07 | Limitation on Suits | 25 |

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i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Section 5.08 | Unconditional Right of Holders to Receive Principal, Premium and Interest | 25 |
| &nbsp;&nbsp;Section 5.09 | Restoration of Rights and Remedies | 26 |
| &nbsp;&nbsp;Section 5.10 | Rights and Remedies Cumulative | 26 |
| &nbsp;&nbsp;Section 5.11 | Delay or Omission Not Waiver | 26 |
| &nbsp;&nbsp;Section 5.12 | Control by Holders | 26 |
| &nbsp;&nbsp;Section 5.13 | Waiver of Defaults | 27 |
| &nbsp;&nbsp;Section 5.14 | Undertaking for Costs | 27 |
| &nbsp;&nbsp;Section 5.15 | Waiver of Stay or Extension Laws | 27 |
| **ARTICLE VI. THE TRUSTEE** | **ARTICLE VI. THE TRUSTEE** |  |
| &nbsp;&nbsp;Section 6.01 | Certain Duties and Responsibilities | 27 |
| &nbsp;&nbsp;Section 6.02 | Notice of Defaults | 28 |
| &nbsp;&nbsp;Section 6.03 | Certain Rights of Trustee | 28 |
| &nbsp;&nbsp;Section 6.04 | Not Responsible for Recitals or Issuance of Securities | 29 |
| &nbsp;&nbsp;Section 6.05 | May Hold Securities | 30 |
| &nbsp;&nbsp;Section 6.06 | Money Held in Trust | 30 |
| &nbsp;&nbsp;Section 6.07 | Compensation and Reimbursement | 30 |
| &nbsp;&nbsp;Section 6.08 | Disqualification; Conflicting Interests | 30 |
| &nbsp;&nbsp;Section 6.09 | Corporate Trustee Required; Eligibility | 31 |
| &nbsp;&nbsp;Section 6.10 | Resignation and Removal; Appointment of Successor | 31 |
| &nbsp;&nbsp;Section 6.11 | Acceptance of Appointment by Successor | 32 |
| &nbsp;&nbsp;Section 6.12 | Merger, Conversion, Consolidation or Succession to Business | 33 |
| &nbsp;&nbsp;Section 6.13 | Preferential Collection of Claims Against Company | 33 |
| &nbsp;&nbsp;Section 6.14 | Appointment of Authenticating Agent | 33 |
| **ARTICLE VII. HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY** | **ARTICLE VII. HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY** |  |
| &nbsp;&nbsp;Section 7.01 | Company to Furnish Trustee Names and Addresses of Holders. | 34 |
| &nbsp;&nbsp;Section 7.02 | Preservation of Information; Communications to Holders | 34 |
| &nbsp;&nbsp;Section 7.03 | Reports by Trustee | 35 |
| &nbsp;&nbsp;Section 7.04 | Reports by Company | 35 |
| &nbsp;&nbsp;Section 7.05 | Holders' Meetings | 35 |
| **ARTICLE VIII. CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE** | **ARTICLE VIII. CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE** |  |
| &nbsp;&nbsp;Section 8.01 | Company May Consolidate, Etc., Only on Certain Terms | 37 |
| &nbsp;&nbsp;Section 8.02 | Successor Substituted | 37 |
| **ARTICLE IX. SUPPLEMENTAL INDENTURES** | **ARTICLE IX. SUPPLEMENTAL INDENTURES** |  |
| &nbsp;&nbsp;Section 9.01 | Supplemental Indentures Without Consent of Holders | 37 |
| &nbsp;&nbsp;Section 9.02 | Supplemental Indentures With Consent of Holders | 38 |
| &nbsp;&nbsp;Section 9.03 | Execution of Supplemental Indentures | 39 |
| &nbsp;&nbsp;Section 9.04 | Effect of Supplemental Indentures | 39 |
| &nbsp;&nbsp;Section 9.05 | Conformity with Trust Indenture Act | 39 |
| &nbsp;&nbsp;Section 9.06 | Reference in Securities to Supplemental Indentures | 39 |
| &nbsp;&nbsp;Section 9.07 | Notice of Supplemental Indenture | 39 |
| &nbsp;&nbsp;Section 9.08 | Subordination Unimpaired | 40 |
| **ARTICLE X. COVENANTS** | **ARTICLE X. COVENANTS** |  |
| &nbsp;&nbsp;Section 10.01 | Payment of Principal, Premium and Interest | 40 |
| &nbsp;&nbsp;Section 10.02 | Maintenance of Office or Agency | 40 |
| &nbsp;&nbsp;Section 10.03 | Money for Securities Payments to be Held in Trust | 40 |
| &nbsp;&nbsp;Section 10.04 | Corporate Existence | 41 |
| &nbsp;&nbsp;Section 10.05 | Statement as to Default | 41 |
| &nbsp;&nbsp;Section 10.06 | Waiver of Certain Covenants | 42 |
| **ARTICLE XI. REDEMPTION OF SECURITIES** | **ARTICLE XI. REDEMPTION OF SECURITIES** |  |
| &nbsp;&nbsp;Section 11.01 | Applicability of Article | 42 |

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ii

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Section 11.02 | Election to Redeem; Notice to Trustee | 42 |
| &nbsp;&nbsp;Section 11.03 | Selection by Trustee of Securities to Be Redeemed | 42 |
| &nbsp;&nbsp;Section 11.04 | Notice of Redemption | 42 |
| &nbsp;&nbsp;Section 11.05 | Deposit of Redemption Price | 43 |
| &nbsp;&nbsp;Section 11.06 | Securities Payable on Redemption Date | 43 |
| &nbsp;&nbsp;Section 11.07 | Securities Redeemed in Part | 43 |
| **ARTICLE XII. SINKING FUNDS** | **ARTICLE XII. SINKING FUNDS** |  |
| &nbsp;&nbsp;Section 12.01 | Applicability of Article | 44 |
| &nbsp;&nbsp;Section 12.02 | Satisfaction of Mandatory Sinking Fund Payments with Securities | 44 |
| &nbsp;&nbsp;Section 12.03 | Redemption of Securities for Mandatory Sinking Fund | 44 |
| **ARTICLE XIII. REPAYMENT OF SECURITIES AT OPTION OF HOLDERS** | **ARTICLE XIII. REPAYMENT OF SECURITIES AT OPTION OF HOLDERS** |  |
| &nbsp;&nbsp;Section 13.01 | Applicability of Article | 44 |
| &nbsp;&nbsp;Section 13.02 | Notice of Repayment Date | 45 |
| &nbsp;&nbsp;Section 13.03 | Deposit of Repayment Price | 45 |
| &nbsp;&nbsp;Section 13.04 | Securities Payable on Repayment Date | 45 |
| &nbsp;&nbsp;Section 13.05 | Securities Repaid in Part | 45 |
| **ARTICLE XIV. DEFEASANCE AND COVENANT DEFEASANCE** | **ARTICLE XIV. DEFEASANCE AND COVENANT DEFEASANCE** |  |
| &nbsp;&nbsp;Section 14.01 | Applicability of Article; Company's Option to Effect Defeasance or Covenant Defeasance | 46 |
| &nbsp;&nbsp;Section 14.02 | Defeasance and Discharge | 46 |
| &nbsp;&nbsp;Section 14.03 | Covenant Defeasance | 46 |
| &nbsp;&nbsp;Section 14.04 | Conditions to Defeasance or Covenant Defeasance | 47 |
| &nbsp;&nbsp;Section 14.05 | Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions | 48 |
| &nbsp;&nbsp;Section 14.06 | Reinstatement | 49 |
| **ARTICLE XV. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS** | **ARTICLE XV. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS** |  |
| &nbsp;&nbsp;Section 15.01 | Immunity of Incorporators, Stockholders, Officers and Directors | 49 |
| **ARTICLE XVI. SUBORDINATION OF SECURITIES** | **ARTICLE XVI. SUBORDINATION OF SECURITIES** |  |
| &nbsp;&nbsp;Section 16.01 | Securities Subordinate to Senior Debt | 49 |
| &nbsp;&nbsp;Section 16.02 | Trustee and Holders of Securities May Rely on Certificate of Liquidating Agent; Trustee May Require Further Evidence as to Ownership of Senior Debt; Trustee Not Fiduciary to Holders of Senior Debt | 51 |
| &nbsp;&nbsp;Section 16.03 | Payment Permitted If No Default | 52 |
| &nbsp;&nbsp;Section 16.04 | Trustee Not Charged with Knowledge of Prohibition | 52 |
| &nbsp;&nbsp;Section 16.05 | Trustee to Effectuate Subordination | 52 |
| &nbsp;&nbsp;Section 16.06 | Rights of Trustee as Holder of Senior Debt | 52 |
| &nbsp;&nbsp;Section 16.07 | Article Applicable to Paying Agents | 53 |
| &nbsp;&nbsp;Section 16.08 | Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior Debt | 53 |

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iii

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INDENTURE, dated as of September 8, 2025, between SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY, a corporation duly organized and existing under the laws of the State of Nevada (herein called the "<u>Company</u>"), having its principal office at 6100 Neal Road, Reno, Nevada 89511, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association duly organized and existing under the laws of the United States, as Trustee (herein called the "<u>Trustee</u>").

**RECITALS OF THE COMPANY**

The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured subordinated debentures, notes or other evidences of indebtedness (herein called the "<u>Securities,</u>" which term includes subordinated, senior subordinated and junior subordinated Securities and subordinated Securities of any other relative ranking), to be issued in one or more series as in this Indenture provided.

All things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

**NOW, THEREFORE, THIS INDENTURE WITNESSETH:**

For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or of any series thereof, as follows:

**ARTICLE I.**

**DEFINITIONS AND OTHER**

**PROVISIONS OF GENERAL APPLICATION**

Section 1.01 <u>Definitions</u>.

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) unless the context otherwise requires, any reference to an "Article" or a "Section" refers to an Article or a Section, as the case may be, of this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

Certain terms, used principally in Article VI, are defined in that Article.

"<u>Act</u>," when used with respect to any Holder, has the meaning specified in Section 1.04.

"<u>Affiliate</u>" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, "control," when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.

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"<u>Authenticating Agent</u>" means any Person authorized by the Trustee pursuant to Section 6.14 to act on behalf of the Trustee to authenticate Securities of one or more series.

"<u>Board of Directors</u>" means either the board of directors of the Company or any duly authorized committee of that board or any director or directors and/or officer or officers of the Company to whom that board or committee shall have duly delegated its authority.

"<u>Board Resolution</u>" means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

"<u>Business Day</u>," when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law or executive order to close.

"<u>Capital Stock</u>," as applied to the stock of any corporation, means the capital stock of every class whether now or hereafter authorized, regardless of whether such capital stock shall be limited to a fixed sum or percentage with respect to the rights of the holders thereof to participate in dividends and in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of such corporation.

"<u>Commission</u>" means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

"<u>Company</u>" means the Person named as the "Company" in the first paragraph of this Indenture until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Company" shall mean such successor corporation.

"<u>Company Request</u>" or "<u>Company Order</u>" means a written request or order signed in the name of the Company by its Chairman of the Board, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

"<u>Corporate Trust Office</u>" means the designated corporate trust office of the Trustee at which, at any particular time, its corporate trust business shall be administered, which office at the date hereof is located at 311 South Wacker Drive, Suite 6200B, Floor 62, Chicago, Illinois 60606, Attention: Corporate Trust Administration. The Trustee may change the designated Corporate Trust Office from time to time by notice to the Company and the Holders.

"<u>corporation</u>" includes corporations, associations, companies and business trusts.

"<u>Covenant Defeasance</u>" has the meaning specified in Section 14.03.

"<u>Debt</u>" means, with respect to any Person, (a) any liability of such Person (i) for borrowed money or (ii) evidenced by a bond, note, debenture or similar instrument (including purchase money obligations but excluding trade payables), or (iii) for the payment of money relating to a lease, whether or not such lease is required to be classified as a capitalized lease obligation in accordance with GAAP; (b) any liability of others described in the preceding clause (a) that such Person has guaranteed, that is recourse to such Person or that is otherwise such Person's legal liability; and (c) any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (a) and (b) above.

"<u>Defaulted Interest</u>" has the meaning specified in Section 3.07.

"<u>Defeasance</u>" has the meaning specified in Section 14.02.

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"<u>Depositary</u>" means, with respect to the Securities of any series issuable or issued in the form of a Global Security, a clearing agency registered under the Exchange Act or any successor thereto, which shall in either case be designated by the Company pursuant to Section 3.01 or 3.05 until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Depositary" shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, "Depositary" as used with respect to the Securities of any such series shall mean the Depositary with respect to the Securities of that series.

"<u>Electronic Means</u>" shall mean the following communications methods: e-mail or secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder.

"<u>Event of Default</u>" has the meaning specified in Section 5.01.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time.

"<u>Extension Period</u>" has the meaning specified in Section 3.12.

"<u>GAAP</u>" means, as of any date of computation, generally accepted accounting principles in the United States, consistently applied, that are in effect on the date of such computation.

"<u>Global Security or Securities</u>" means one or more fully registered Securities in global form evidencing all or a part of a series of Securities issued to the Depositary for such series or its nominee or registered in the name of the Depositary or its nominee.

"<u>Holder</u>" means a Person in whose name a Security is registered in the Security Register.

"<u>Indenture</u>" means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively. The term "Indenture" shall also include the terms of particular series of Securities established as contemplated by Section 3.01.

"<u>interest</u>," means (i) when used with respect to a Security, interest payable on such Security pursuant to Section 10.01 or pursuant to the terms of such Security, (ii) when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, interest payable after Maturity and (iii) when used with respect to a Security whose terms, as established pursuant to Section 3.01, permit the Company to extend the interest payment periods or to defer the payment of interest thereon, includes (unless otherwise provided by the terms of such Security pursuant to Section 3.01 or the context otherwise requires) any extended or deferred interest and, if applicable pursuant to the terms of such Security and to the extent permitted by applicable law, any compound interest on such Security.

"<u>Interest Payment Date</u>," when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security.

"<u>Maturity</u>," when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or by repayment or otherwise.

"<u>Notice of Default</u>" has the meaning specified in Section 5.01(4).

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"<u>Officers' Certificate</u>" means a certificate signed by at least two officers of the Company, one signature being that of the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice President, and the other signature being that of the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee.

"<u>Opinion of Counsel</u>" means a written opinion of counsel, who may be counsel for the Company, and who shall be acceptable to the Trustee.

"<u>Original Issue Discount Security</u>" means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02.

"<u>Outstanding</u>," when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Securities for whose payment or redemption money or U.S. Government Obligations in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; *provided* that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Securities which have been paid pursuant to Section 3.06 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Securities, except to the extent provided in Sections 14.02 and 14.03, with respect to which the Company has effected a Defeasance and/or Covenant Defeasance as provided in Article XIV, subject to certain provisions of this Indenture that continue after Defeasance;

*provided*, *however*, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, (a) the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, and (b) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee actually knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

"<u>Paying Agent</u>" means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Securities on behalf of the Company. The Trustee will serve the functions of paying agent with respect to each series of Securities unless a different paying agent is appointed with respect to the Securities of such series in accordance with this Indenture.

"<u>Person</u>" means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

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"<u>Place of Payment</u>," when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest on the Securities of that series are payable as contemplated by Section 3.01.

"<u>Predecessor Security</u>" of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.

"<u>Redemption Date</u>," when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

"<u>Redemption Price</u>," when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.

"<u>Regular Record Date</u>" for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 3.01.

"<u>Repayment Date</u>" means, when used with respect to any Security to be repaid at the option of the Holder, the date fixed for such repayment by or pursuant to this Indenture.

"<u>Repayment Price</u>" means, when used with respect to any Security to be repaid at the option of the Holder, the price at which it is to be repaid by or pursuant to this Indenture.

"<u>Responsible Officer</u>," means any officer assigned to the Corporate Trust Division - Corporate Finance Unit (or any successor division or unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility for the administration of this Indenture, and for the purposes of Section 6.01(c)(2) and Section 6.02 shall also include any other officer of the Trustee to whom any corporate trust matter is referred because of such officer's knowledge of and familiarity with the particular subject.

"<u>Securities</u>" has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture.

"<u>Security Register</u>" and "<u>Security Registrar</u>" have the respective meanings specified in Section 3.05.

"<u>Senior Debt</u>" means (i) all indebtedness of the Company (including Senior Debt Securities), whether outstanding at the date of this Indenture or incurred, created or assumed after such date, (a) in respect of money borrowed by the Company (including any financial derivative, hedging or futures contract or similar instrument, to the extent any such item is primarily a financing transaction) and (b) evidenced by debentures, bonds, notes, credit or loan agreements or other similar instruments or agreements issued or entered into by the Company; (ii) all finance and capitalized lease obligations of the Company; (iii) all obligations of the Company issued or assumed as the deferred purchase price of property, all conditional sale obligations of the Company and all obligations of the Company under any title retention agreement (but excluding, for the avoidance of doubt, trade accounts payable arising in the ordinary course of business); (iv) all obligations of the Company for the reimbursement of any letter of credit, banker's acceptance, security purchase facility or similar credit transaction; and (v) all obligations of the type referred to in clauses (i) through (iv) above of other Persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise; *provided*, however, that, unless otherwise provided pursuant to Section 3.01(19) with respect to the Securities of such series, in no event shall "Senior Debt" include (1) any obligations, instruments or agreements of the type referred to in any of clauses (i) through (v) above that, by the terms of the instruments or agreements creating or evidencing the same or pursuant to which the same is outstanding, are expressly subordinated or equal in right of payment to the Securities of such series, (2) Debt of the Company owed or owing to any Subsidiary of the Company or any officer, director or employee of the Company or any Subsidiary of the Company, and (3) any liability for taxes owed or owing by the Company.

"<u>Senior Debt Securities</u>" means, collectively, (i) any debt securities issued by the Company pursuant to the General and Refunding Mortgage Indenture, dated as of May 1, 2001, between the Company and The Bank of New

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York Mellon Trust Company, N.A., as trustee, as amended and supplemented, and (ii) any debt securities issued by the Company pursuant to an indenture for senior debt securities, to be entered into between the Company and the trustee thereunder.

"<u>Special Record Date</u>" for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07.

"<u>Stated Maturity</u>," when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal or such installment of principal of (and premium, if any) or interest on such Security is due and payable, in each case as such date may be extended or deferred, if applicable, pursuant to the terms of such Security established pursuant to Section 3.01.

"<u>Subordination Provisions</u>," when used with respect to the Securities of any series, shall have the

meaning set forth herein or established pursuant to Section 3.01(19), as applicable, with respect to the Securities of such series.

"<u>Subsidiary</u>" means a corporation or limited liability company more than 50% of the outstanding voting Capital Stock or voting membership interests of which is or are owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition, (1) "voting Capital Stock" means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency, and (2) "voting membership interests" means membership interests which ordinarily have voting power for the election of directors (or the equivalent thereof), whether at all times or only so long as no senior class of membership interests have such voting power by reason of any contingency.

"<u>Trustee</u>" means the Person named as the "Trustee" in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, "Trustee" as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series.

"<u>Trust Indenture Act</u>" means the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was executed; *provided*, however, that in the event the Trust Indenture Act of 1939 is amended after such date, "Trust Indenture Act" means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

"<u>United States</u>" means the United States of America.

"<u>U.S. Government Obligations</u>" has the meaning specified in Section 14.04.

"<u>Vice President</u>," when used with respect to the Company, means any vice president, whether or not designated by a number or a word or words added before or after the title "vice president."

Section 1.02 <u>Compliance Certificates and Opinions</u>.

Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than the certificate provided for in Section 10.05) shall include:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a statement that, in the opinion of each such individual, such individual has made such examination or investigation as is necessary to enable the individual to express an informed opinion as to whether or not such covenant or condition has been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

Section 1.03 <u>Form of Documents Delivered to Trustee</u>.

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

Section 1.04 <u>Acts of Holders; Record Dates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "<u>Act</u>" of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. The record of any meeting of Holders shall be proved in the manner provided in Section 7.05.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such witness or certifying individual the execution thereof. Where such execution is by a signer acting in a capacity other than such Holder's individual capacity, such certificate or affidavit shall also constitute sufficient proof of such Holder's authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. The record of any meeting of Holders shall be proved in the manner provided in Section 7.05.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The ownership of Securities shall be proved by the Security Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as the record date for the purpose of determining the Holders of Securities of any series entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or other action, or to vote on any action, authorized or permitted to be given or taken by Holders of Securities of such series. If not set by the Company prior to the first solicitation of a Holder of Securities of such series made by any Person in respect of any such action, or in the case of any such vote, prior to such vote, the record date for any such action or vote shall be the 30th day (or, if later, the date of the most recent list of Holders required to be provided pursuant to Section 7.01) prior to such first solicitation or vote, as the case may be. With regard to any record date for action to be taken by the Holders of one or more series of Securities, only the Holders of Securities of such series on such date (or their duly designated proxies) shall be entitled to give or take, or vote on, the relevant action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount. Any notice given or action taken by a Holder or its agents with regard to different parts of such principal amount pursuant to this paragraph shall have the same effect as if given or taken by separate Holders of each such different part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Without limiting the generality of the foregoing, unless otherwise specified pursuant to Section 3.01 or pursuant to one or more indentures supplemental hereto, a Holder, including a Depositary that is the Holder of a Global Security, may make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be made, given or taken by Holders, and a Depositary that is the Holder of a Global Security may provide its proxy or proxies to the beneficial owners of interests in any such Global Security through such Depositary's standing instructions and customary practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Trustee shall fix a record date for the purpose of determining the Persons who are beneficial owners of interests in any Global Security held by a Depositary entitled under the procedures of such Depositary to make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be made, given or taken by Holders. If such a record date is fixed, the Holders on such record date or their duly appointed proxy or proxies, and only such Persons, shall be entitled to make, give or take such request, demand, authorization, direction, notice, consent, waiver or other action, whether or not such Holders remain Holders after such record date. No such request, demand, authorization, direction, notice, consent, waiver or other action shall be valid or effective if made, given or taken more than 90 days after such record date.

Section 1.05 <u>Notices, Etc., to Trustee and Company</u>.

Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with a Responsible Officer of the Trustee at its Corporate Trust Office and unless otherwise herein expressly provided, any such document shall be deemed to be sufficiently made, given, furnished or filed upon its receipt by a Responsible Officer of the Trustee at such office, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company addressed

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to it at the address of its principal office specified in the first paragraph of this Indenture, Attention: Secretary, or at any other address previously furnished in writing to the Trustee by the Company.

The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions ("Instructions") given pursuant to this Indenture and delivered using Electronic Means; *provided*, however, that the Company shall provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions ("Authorized Officers") and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended by the Company whenever a person is to be added or deleted from the listing. If the Company elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee's understanding of such Instructions shall be deemed controlling. The Company understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The Company shall be responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that the Company and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the Company. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee's reliance upon and compliance with such Instructions notwithstanding whether such directions conflict or are inconsistent with a subsequent written instruction. The Company agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.

Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event or any other communication (including any notice of redemption or repurchase) to a holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee, including by electronic mail in accordance with accepted practices at the Depositary.

Section 1.06 <u>Notice to Holders; Waiver</u>.

Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at such Holder's address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Any notice to a Holder which is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not such Holder receives such notice. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

In case, by reason of the suspension of or irregularities in regular mail service or by reason of any other cause, it shall be impracticable to give notice of any event to Holders by mail when such notice is required to be given pursuant to any provision of this Indenture, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 1.07 <u>Conflict with Trust Indenture Act</u>.

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If any provision hereof limits, qualifies or conflicts with the duties imposed by any of Section 3.10 through Section 3.17, inclusive, of the Trust Indenture Act through the operation of Section 3.18(c) thereof, such imposed duties shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or shall be deemed to be so excluded, as the case may be.

Section 1.08 <u>Effect of Headings and **Table of Contents**</u>.

The Article and Section headings herein and the **Table of Contents** are for convenience only and shall not affect the construction hereof.

Section 1.09 <u>Successors and Assigns</u>.

All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

Section 1.10 <u>Separability Clause</u>.

In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 1.11 <u>Benefits of Indenture</u>.

Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any Paying Agent, the Holders and, with respect to Article XVI of this Indenture, the holders of Senior Debt, any benefit or any legal or equitable right, remedy or claim under this Indenture; *provided* that this Section 1.11 shall not limit the rights of any Holder of a Global Security to give any notice or take any action, or appoint any agents, with regard to any part or different parts of the principal amount of such Global Security pursuant to Section 1.04.

Section 1.12 <u>Governing Law</u>.

This Indenture and the Securities shall be governed by and construed in accordance with the laws of the State of New York and for all purposes shall be governed by and construed in accordance with the laws of said state.

Section 1.13 <u>Legal Holidays</u>.

In any case where any Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date or Stated Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest or principal (and premium, if any) need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date or at the Stated Maturity, *provided* that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date or Stated Maturity, as the case may be.

Section 1.14 <u>Waiver of Jury Trial</u>.

EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

Section 1.15 <u>Force Majeure</u>.

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without

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limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, epidemics or pandemics, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

Section 1.16 <u>Submission to Jurisdiction</u>.

The Company hereby irrevocably submits to the jurisdiction of any New York State court sitting in the Borough of Manhattan in the City of New York or any federal court sitting in the Borough of Manhattan in the City of New York in respect of any suit, action or proceeding arising out of or relating to this Indenture and the Securities, and irrevocably accepts for itself and in respect of its property, generally and unconditionally, jurisdiction of the aforesaid courts.

Section 1.17 <u>FATCA</u>.

The Company agrees (i) to provide the Trustee with such reasonable information as it has in its possession to enable the Trustee to determine whether any payments pursuant to the Indenture are subject to the withholding requirements described in Section 1471(b) of the US Internal Revenue Code of 1986 (the "Code") or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations, or agreements thereunder or official interpretations thereof ("Applicable Law"), and (ii) that the Trustee shall be entitled to make any withholding or deduction from payments under the Indenture to the extent necessary to comply with Applicable Law, for which the Trustee shall not have any liability.

Section 1.18 <u>Counterparts</u>.

This Indenture may be executed manually, by fascimile or by electronic signature in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by fascimile, email or other electronic format (i.e., "pdf," "tif" or "jpg") transmission or other electronically-imaged signature (including, without limitation, DocuSign or Adobe Sign) or transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto transmitted by fascimile, email or other electronic format (i.e., "pdf," "tif" or "jpg") (including, without limitation, DocuSign or Adobe Sign) shall be deemed to be their original signatures for all purposes. Notwithstanding anything to the contrary contained herein or in the Securities, the words "execute," "execution," "signed" and "signature" and words of similar import used in or related to any document to be signed in connection with this Indenture, the Securities or any of the transactions contemplated hereby or thereby (including amendments, waivers, consents and other modifications) shall be deemed to include electronic signatures and the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature in ink or the use of a paper-based recordkeeping system, as applicable, to the fullest extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other similar state laws based on the Uniform Electronic Transactions Act.

**ARTICLE II.**

**SECURITY FORMS**

Section 2.01 <u>Forms of Securities</u>.

The Securities of each series shall be in such form or forms (including global form) as shall be established by or pursuant to a Board Resolution, in one or more indentures supplemental hereto or in an Officers' Certificate pursuant to Section 3.01 hereof, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with any law or with any rules made pursuant thereto or the rules of any securities exchange or Depositary therefor or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution of such Securities. If the form of Securities of any series is established by action taken pursuant to a Board Resolution,

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a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 3.03 for the authentication and delivery of such Securities.

The Trustee's certificates of authentication shall be in substantially the form set forth in this Article.

The definitive Securities shall be printed, lithographed or engraved or may be produced in any other manner permitted by the rules of any securities exchange upon which the Securities may be listed and (with respect to Global Securities of any Series) the rules of the Depositary, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.

Section 2.02 <u>Form of Trustee's Certificate of Authentication</u>.

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

Dated: _____________________ The Bank of New York Mellon Trust Company, N.A.,as Trustee<br>By: &nbsp;&nbsp;&nbsp;&nbsp;_____________________&nbsp;&nbsp;&nbsp;&nbsp;Authorized Officer

Section 2.03 <u>Securities in Global Form</u>.

If any Security of a series is issuable in global form, such Security may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and also may provide that the aggregate amount of Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges. Any endorsement of a Security in global form to reflect the amount, or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee and in such manner as shall be specified in such Security. Any instructions by the Company with respect to a Security in global form, after its initial issuance, shall be in writing but need not comply with Section 1.02.

**ARTICLE III.**

**THE SECURITIES**

Section 3.01 <u>Amount Unlimited; Issuable in Series</u>.

The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more series. All Securities of each series issued under this Indenture shall in all respects be equally and ratably entitled to the benefits hereof with respect to such series without preference, priority or distinction on account of the actual time of the authentication and delivery or Maturity of the Securities of such series. There shall be established in or pursuant to a Board Resolution, and, to the extent not set forth therein, set forth in an Officers' Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the title of the Securities of the series, including CUSIP Numbers (which shall distinguish the Securities of the series from all other series of Securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the price or prices (expressed as a percentage of the aggregate principal amount thereof) at which the Securities will be issued;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that series pursuant to Section 3.04, Section 3.05, Section 3.06, Section 9.06, Section 11.07 or Section 13.05);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the date or dates on which the principal and premium, if any, of the Securities of the series is payable and the right, if any, to shorten or extend the date on which the principal of any Securities of the series is payable and the conditions to any such change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the rate or rates (which may be fixed or variable), or the method of determination thereof, at which the Securities of the series shall bear interest, if any, the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Interest Payment Date and the right of the Company to defer or extend an Interest Payment Date or, if the principal amount payable at the Stated Maturity of any of the Securities will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any Maturity other than the Stated Maturity or which will be deemed to be Outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) if other than the Corporate Trust Office, the place or places where the principal of (and premium, if any) and interest on Securities of the series shall be payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company and, if other than by a Board Resolution, the manner in which any election by the Company to redeem the Securities shall be evidenced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any mandatory sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) if other than denominations of $1,000 and any integral multiple thereof, the denominations in which Securities of the series shall be issuable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) if the Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions upon which such Global Security may be exchanged in whole or in part for other individual securities, the Depositary for such Global Security or Securities and the form of any legend or legends which shall be borne by such Global Security or Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) any addition to or change in the Events of Default which applies to any Securities of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) any addition to or change in the covenants set forth in Article X which applies to Securities of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) the nature and terms of the security for any secured Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) the form and terms of any guarantee of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) the application, if any, of Section 14.02 or Section 14.03 to the Securities of the series and any provisions in modification of, in addition to or in lieu of any of the provisions of Article XIV;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) the listing of the Securities on any securities exchange or the inclusion in any other market or quotation or trading system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) any Trustee, Authenticating Agent, Paying Agent, issuing or transfer agent or Securities Registrar or any other Person appointed to act in connection with such Securities for or on behalf of the Holders thereof or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) any addition to or change in (a) the definition of "Senior Debt" set forth in Section 1.01 or (b) any of the terms and provisions (the "Subordination Provisions") of Article XVI of this Indenture regarding subordination, as the case may be, in each case that shall be applicable to the Securities of such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture).

The Securities of each series issued hereunder shall be subordinated in right of payment to Senior Debt of the Company to the extent and in the manner set forth in the Subordination Provisions as provided in Article XVI.

All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution and set forth in such Officers' Certificate, to the extent applicable, or in any such indenture supplemental hereto. All Securities of any one series need not be issued at the same time and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for issuance of additional Securities of such series.

If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Board Resolution or the Officers' Certificate setting forth the terms of the series.

Notwithstanding Section 3.01(3) herein and unless otherwise expressly provided with respect to a series of Securities, a series of Securities may from time to time be "re-opened" and the aggregate principal amount of any such series of Securities may be increased and additional Securities of such series may be issued up to the maximum aggregate principal amount authorized with respect to such series as increased.

Section 3.02 <u>Denominations</u>.

The Securities of each series shall be issuable in registered form with or without coupons in such denominations as shall be specified as contemplated by Section 3.01. In the absence of any such provisions with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof.

Section 3.03 <u>Execution, Authentication, Delivery and Dating</u>.

The Securities shall be executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its President or one of its Vice Presidents. The signature of any of these officers on the Securities may be manual or facsimile.

Securities bearing the manual, facsimile or electronic signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities.

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee shall authenticate and deliver such Securities in accordance with the Company Order. If all the Securities of any one series are not to be originally

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issued at one time and if a Board Resolution relating to such Securities shall so permit, such Company Order may set forth procedures (acceptable to the Trustee) for the issuance and authentication of such Securities.

If the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Section 2.01 and Section 3.01, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be provided with, and (subject to Section 6.01) shall be fully protected in relying upon, an Opinion of Counsel stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the form of such Securities has been established by or pursuant to a Board Resolution as permitted by Section 2.01, that such form has been established in conformity with the provisions of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the terms of such Securities have been established by or pursuant to a Board Resolution as permitted by Section 3.01, that such terms have been established in conformity with the provisions of this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to customary exceptions including bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles.

If such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee's own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

Notwithstanding the provisions of Section 3.01 and of the preceding paragraph, if all Securities of a series are not to be originally issued at one time, it shall not be necessary to deliver the Board Resolution or Officers' Certificate otherwise required pursuant to Section 3.01 or the Company Order and Opinion of Counsel otherwise required pursuant to this Section 3.03 at or prior to the time of authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued and such documents reasonably contemplate the issuance of all Securities of such series.

Unless otherwise provided in the form of Security for any series, each Security shall be dated the date of its authentication.

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual or by pdf or other electronically-imaged (including, without limitation, DocuSign or Adobe Sign) signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture.

If the Company shall establish pursuant to Section 3.01 that the Securities of a series are to be issued in the form of one or more Global Securities, then the Company shall execute and the Trustee shall, in accordance with this Section and the Company Order with respect to such series, authenticate and deliver one or more Global Securities that (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of all of the Securities of such series having the same terms issued and not yet canceled, (ii) shall be registered in the name of the Depositary for such Global Security or Securities or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary's instructions and (iv) shall bear a legend substantially to the following effect: "Unless and until it is exchanged in whole or in part for Securities in definitive registered form, this Security may not be transferred except as a whole by the Depositary to the nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary."

Section 3.04 <u>Temporary Securities</u>.

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Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. Every such temporary Security shall be executed by the Company and shall be authenticated and delivered by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the definitive Security in lieu of which it is issued.

If temporary Securities of any series are issued, the Company will cause definitive Securities of that series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency of the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of the same series of authorized denominations. Until so exchanged the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.

Section 3.05 <u>Registration, Registration of Transfer and Exchange and Book-Entry Securities</u>.

The Company shall cause to be kept at one of its offices or agencies maintained pursuant to Section 10.02 a register (the register maintained in such office being herein sometimes referred to as the "<u>Security Register</u>") in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of exchanges and transfers of Securities. The Person responsible for the maintenance of the Security Register is referred to herein as the "<u>Security Registrar</u>." The Trustee is hereby initially appointed Security Registrar for the purpose of registering Securities and transfers of Securities as herein provided. The exchange of and the transfer of Securities also may be registered at the Corporate Trust Office of the Trustee.

Upon surrender for registration of transfer of any Security of any series at the office or agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of like tenor and aggregate principal amount.

At the option of the Holder, Securities of any series (except Global Securities) may be exchanged for other Securities of the same series (except Global Securities) of any authorized denominations and of like tenor and aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive.

All Securities issued upon any registration of transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

Every Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Security Registrar) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or such Holder's attorney duly authorized in writing.

No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, Section 9.06, Section 11.07, Section 13.05 or Section 14.04 not involving any transfer.

The Company shall not be required (i) to issue, register the transfer of or exchange Securities of any series during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption

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of Securities of that series selected for redemption under Section 11.02 and ending at the close of business on the day of such mailing, or (ii) to register the transfer or exchange of any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

Notwithstanding any other provision of this Section 3.05, unless and until it is exchanged in whole or in part for Securities in definitive registered form, a Global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.

If at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for the Securities of a series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to the Securities of such series. If a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver Securities of such series in definitive form in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities.

The Company may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more Global Securities shall no longer be represented by a Global Security or Securities. In such event the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver, Securities of such series in definitive registered form without coupons, in any authorized denominations, in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series, in exchange for such Global Security or Securities.

If (1) an Event of Default shall occur and be continuing and (2) beneficial owners of interests representing a majority in aggregate principal amount of the Securities of a series represented by a Global Security or Securities shall advise the Trustee through the Depositary for such Global Security or Securities in writing that the maintenance of a Depositary for such series is no longer in such beneficial owners' best interests, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver, Securities of such series in definitive registered form without coupons, in any authorized denominations, in an aggregate principal amount equal to the principal amount of the such Global Security or Securities, in exchange for such Global Security or Securities.

If specified by the Company pursuant to Section 3.01 with respect to a series of Securities, the Depositary for such series of Securities may surrender a Global Security for such series of Securities in exchange in whole or in part for Securities of such series in definitive registered form on such terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the Trustee shall authenticate and deliver, without service charge,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the Person specified by such Depositary a new Security or Securities of the same series, of any authorized denomination as requested by such Person, in an aggregate principal amount equal to and in exchange for such Person's beneficial interest in the Global Security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to such Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Securities authenticated and delivered pursuant to clause (i) above.

Upon the exchange of a Global Security for Securities in definitive registered form, in authorized denominations, such Global Security shall be canceled by the Trustee. Securities in definitive registered form issued in exchange for a Global Security pursuant to this Section 3.05 shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or

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indirect participants or otherwise, shall instruct the Trustee. The Trustee shall not be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. The Trustee shall, at Company expense, deliver such Securities to or as directed by the Persons in whose names such Securities are so registered.

Section 3.06 <u>Mutilated, Destroyed, Lost and Stolen Securities</u>.

If any mutilated Security is surrendered to the Trustee, together with such other security and/or indemnity as may be reasonably required by the Trustee to save it harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security and/or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security, subject to satisfaction of the foregoing conditions. Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

Section 3.07 <u>Payment of Interest; Interest Rights Preserved</u>.

Except as otherwise provided as contemplated by Section 3.01 with respect to any series of Securities and subject to the deferral of any Interest Payment Dates in the case of an Extension Period, interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. The Company and the Trustee understand that interest on any Global Security will be disbursed or credited by the Depositary to the Persons having ownership thereof pursuant to a book entry or other system maintained by the Depositary.

Any interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "<u>Defaulted Interest</u>") shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (1) or clause (2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted

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Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at such Holder's address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

Section 3.08 <u>Persons Deemed Owners</u>.

The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Section 3.07) interest on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Section 3.09 <u>Cancellation</u>.

Unless otherwise specified pursuant to Section 3.01(6) for Securities of any series all Securities surrendered for payment, redemption, registration of transfer or exchange or for credit against any mandatory sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee, except that if a Global Security is so surrendered, the Company shall execute and the Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new Global Security or Securities in a denomination equal to and in exchange for the portion of the Global Security so surrendered not to be paid, redeemed, repaid or registered for transfer or exchange or for credit. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in accordance with its customary procedures and a certificate of disposition shall be delivered to the Company upon its request therefor, unless, by a Company Order, the Company shall direct the canceled Securities be returned to it.

Section 3.10 <u>Computation of Interest</u>.

Except as otherwise specified as contemplated by Section 3.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months.

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Section 3.11 <u>CUSIP Numbers</u>.

The Company in issuing the Securities may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; *provided* that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the "CUSIP" numbers.

Section 3.12 <u>Deferrals of Interest Payment Dates</u>.

If specified as contemplated by Section 2.01 or Section 3.01 with respect to the Securities of a particular series, so long as no Event of Default has occurred and is continuing, the Company shall have the right, at any time during the term of such series, from time to time to defer the payment of interest on such Securities for such period or periods as may be specified as contemplated by Section 3.01 (each, an "<u>Extension Period</u>") during which Extension Periods the Company shall have the right to make partial payments of interest on any Interest Payment Date. No Extension Period shall end on a date other than an Interest Payment Date or extend beyond the Stated Maturity. At the end of any such Extension Period the Company shall pay all interest then accrued and unpaid on the Securities.

**ARTICLE IV.**

**SATISFACTION AND DISCHARGE**

Section 4.01 <u>Satisfaction and Discharge of Indenture</u>.

Upon Company Request, this Indenture shall cease to be of further effect, including the provisions of Article XVI, with respect to the Securities of a particular series, and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such Securities, when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all Securities of such series theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.06 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.03) have been delivered to the Trustee for cancellation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all Securities of such series not theretofore delivered to the Trustee for cancellation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have become due and payable, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will become due and payable at their Stated Maturity within one year, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) are to be called for redemption within one year, under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company;

and the Company, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be irrevocably deposited with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (x) money in an amount, (y) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (z) a combination thereof, sufficient, without reinvestment of interest earned thereon, in the

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opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to such Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to the Securities of such series have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture with respect to the Securities of a particular series, the obligations of the Company to the Trustee under Section 6.07, the obligations, if any, of the Trustee to any Authenticating Agent under Section 6.14 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 4.02 and the last paragraph of Section 10.03, in each case with respect to such Securities, shall survive such satisfaction and discharge.

Notwithstanding the cessation, termination and discharge of all obligations, covenants and agreements of the Company under this Indenture with respect to any series of Securities, the obligations of the Company to the Trustee under Section 6.07 and the obligations of the Trustee under Section 4.02 and the last paragraph of Section 10.03 shall survive with respect to such series of Securities.

Section 4.02 <u>Application of Trust Money</u>.

Subject to the provisions of the last paragraph of Section 10.03, all money deposited with the Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent), as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee.

**ARTICLE V.**

**EVENTS OF DEFAULT; REMEDIES**

Section 5.01 <u>Events of Default</u>.

Unless otherwise provided in a supplemental indenture hereto, "Event of Default," wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) default in the payment of any interest upon any Security of that series when it becomes due and payable, and continuance of such default for a period of 30 days (subject to the deferral of any Interest Payment Date in the case of an Extension Period) (regardless of whether such payment is prohibited by the provisions of Article XVI hereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) default in the payment of the principal of (and premium, if any, on) any Security of that series when it becomes due and payable at its Maturity (regardless of whether such payment is prohibited by the provisions of Article XVI hereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) default in the deposit of any mandatory sinking fund payment, when and as due by the terms of the Securities of that series, and continuance of such default for a period of 30 days (regardless of whether such payment is prohibited by the provisions of Article XVI hereof); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) default in the performance of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section 5.01 specifically dealt with or which has expressly been included in this Indenture solely for the benefit of a series of Securities other than that series), and continuance of such default for a period of 60 days (unless the Company during such period shall have performed such covenant or warranty, or if such covenant or warranty cannot reasonably have been performed during such period, then the Company shall have commenced and be diligently pursuing such performance) after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 33% in aggregate principal amount of the Outstanding Securities of that series, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or a decree or order adjudging the Company as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal or state law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 90 consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the commencement by the Company of a voluntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or the consent by it to the entry of an order for relief in an involuntary case under any such law or to the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of its creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action.

Upon receipt by the Trustee of any proposed Notice of Default from any Holder with respect to Securities of a series all or part of which is represented by a Global Security, a record date shall be established for determining Holders of Outstanding Securities of such series entitled to join in such proposed Notice of Default, which record date shall be at the close of business on the day the Trustee receives such proposed Notice of Default. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such proposed Notice of Default, whether or not such Holders remain Holders after such record date; *provided*, that unless Holders of at least a majority in principal amount of the Outstanding Securities of such series, or their proxies, shall have joined in such proposed Notice of Default prior to the day which is 90 days after such record date, such proposed Notice of Default shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving (i) after expiration of such 90-day period, a new proposed Notice of Default identical to a proposed Notice of Default which has been canceled pursuant to the proviso to the preceding sentence, or (ii) during any such 90-day period, an additional proposed Notice of Default with respect to any new or different fact or circumstance permitting the giving of a proposed Notice of Default with respect to Securities of such series, in either of which events a new record date shall be established pursuant to the provisions of this Section 5.01. Any such proposed Notice of Default shall be considered a Notice of Default hereunder at such time, if any, that Holders of at least a majority in principal amount of the Outstanding Securities shall have joined in such proposed Notice of Default by giving timely notice to the Trustee hereunder.

Section 5.02 <u>Acceleration of Maturity; Rescission and Annulment</u>.

If an Event of Default with respect to Securities of any series (other than an Event of Default specified in Section 5.01(4)) at the time Outstanding occurs and is continuing, then in every such case, the Trustee or the Holders of not less than 33% in principal amount of the Outstanding Securities of that series may declare the principal amount (or, if any of the Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified in the terms thereof) of all of the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable.

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Upon payment of said amounts, all obligations of the Company in respect of payment of principal of the Securities of such series shall terminate. Notwithstanding the foregoing, if an Event of Default specified in Section 5.01(5) or Section 5.01(6) hereof occurs with respect to the Company, all Outstanding Securities shall become immediately due and payable without further action or notice.

At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Event of Default giving rise to such declaration of acceleration shall, without further act, be deemed to have been waived, and such declaration and its consequences shall, without further act, be deemed to have been rescinded and annulled such declaration and its consequences if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company has paid or deposited with the Trustee a sum sufficient to pay

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all overdue interest on all Securities of that series,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such Securities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Securities, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel;

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

Upon receipt by the Trustee of written notice declaring such an acceleration, or rescission and annulment thereof, with respect to Securities of a series all or part of which is represented by a Global Security, a record date shall be established for determining Holders of Outstanding Securities of such series entitled to join in such notice, which record date shall be at the close of business on the day the Trustee receives such notice. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such record date; *provided*, that unless such declaration of acceleration, or rescission and annulment, as the case may be, shall have become effective by virtue of the requisite percentage having joined in such notice prior to the day which is 60 days after such record date, such notice of declaration of acceleration, or rescission and annulment, as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving (i) after expiration of such 60-day period, a new written notice of declaration of acceleration, or rescission and annulment, as the case may be, that is identical to a written notice which has been canceled pursuant to the proviso to the preceding sentence, or (ii) during any such 60-day period, an additional written notice of declaration of acceleration with respect to Securities of such series, or an additional written notice of rescission and annulment of any declaration of acceleration with respect to any other Event of Default with respect to Securities of such series, in either of which events a new record date shall be established pursuant to the provisions of this Section 5.02.

Section 5.03 <u>Collection of Indebtedness and Suits for Enforcement by Trustee</u>.

The Company covenants that if:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) default is made in the payment of any interest upon any Security when it becomes due and payable and such default continues for a period of 30 days (subject to the deferral of any Interest Payment Date in the case of an Extension Period) (regardless of whether such payment is prohibited by the provisions of Article XVI hereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) default is made in the payment of the principal of (or premium, if any, on) any Security when the same has become due and payable at its Maturity (regardless of whether such payment is prohibited by the provisions of Article XVI hereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) default is made in the making or satisfaction of any mandatory sinking fund payment when it becomes due pursuant to the terms of the Securities of any series and such default continues for a period of 30 days (regardless of whether such payment is prohibited by the provisions of Article XVI hereof),

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal (and premium, if any) and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate or rates prescribed therefor in such Securities and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may, but shall not be obligated to, institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

Section 5.04 <u>Trustee May File Proofs of Claim</u>.

In case of any judicial proceeding relative to the Company (or any other obligor upon the Securities), its property or its creditors, the Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to file and prove a claim for the whole amount of principal, premium and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.07.

No provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 5.05 <u>Trustee May Enforce Claims Without Possession of Securities</u>.

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All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

Section 5.06 <u>Application of Money Collected</u>.

Any money collected by the Trustee pursuant to this Article, or after an Event of Default, any money or other property distributable in respect of the Company's obligations under this Indenture with respect to the Securities of any series shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the Securities of any series and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due the Trustee (or any successor Trustee) in each of its capacities under the Indenture under Section 6.07;

SECOND: To the payment of Senior Debt, to the extent required by the provisions of Article XVI;

THIRD: to the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest on the Securities of such series in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively; and

FOURTH: The balance, if any, to the Company or as a court of competent jurisdiction may direct.

Section 5.07 <u>Limitation on Suits</u>.

No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Holders of not less than 33% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) such Holder or Holders have offered to the Trustee security and/or indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Trustee for 60 days after its receipt of such notice, request and offer of security and/or indemnity has failed to institute any such proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all the Holders.

Section 5.08 <u>Unconditional Right of Holders to Receive Principal, Premium and Interest</u>.

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Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and (subject to Section 3.07) interest on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption or repayment at the option of the Holder, on the Redemption Date or the Repayment Date, as the case may be) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

Section 5.09 <u>Restoration of Rights and Remedies</u>.

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

Section 5.10 <u>Rights and Remedies Cumulative</u>.

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

Section 5.11 <u>Delay or Omission Not Waiver</u>.

No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

Section 5.12 <u>Control by Holders</u>.

The Holders of at least a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series, provided that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such direction shall not be in conflict with any rule of law or with this Indenture, expose the Trustee to personal liability or be unduly prejudicial to Holders not joining therein, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

Upon receipt by the Trustee of any such direction with respect to Securities of a series all or part of which is represented by a Global Security, a record date shall be established for determining Holders of Outstanding Securities of such series entitled to join in such direction, which record date shall be determined in accordance with Section 1.04(e). The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such direction, whether or not such Holders remain Holders after such record date; *provided*, that unless Holders of at least a majority in principal amount of the Outstanding Securities of such series, or their proxies, shall have been joined in such direction prior to the day which is 90 days after such record date, such direction shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving (i) after expiration of such 90-day

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period, a new direction identical to a direction which has been canceled pursuant to the provisions of the preceding sentence or (ii) during any such 90-day period, a new direction contrary to or different from such direction, in either of which events a new record date shall be established pursuant to the provisions of this Section 5.12.

Section 5.13 <u>Waiver of Defaults</u>.

By Act delivered to the Company and the Trustee, the Holders of not less than a majority in principal amount of the Outstanding Securities of any affected series may on behalf of the Holders of all the Securities of such series waive any existing Event of Default hereunder with respect to such series and its consequences (including an acceleration and its consequences, including any related payment default that resulted from such acceleration), except an Event of Default

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the payment of the principal of (or premium, if any) or interest on any Security of such series or in the payment of any mandatory sinking fund installment with respect to the Securities of such series, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected thereby.

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to waive any past default hereunder. If a record date is fixed, the Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to waive any default hereunder, whether or not such Holders remain Holders after such record date; *provided*, that unless such majority in principal amount shall have been obtained prior to the date which is 90 days after such record date, any such waiver previously given shall automatically and without further action by any Holder be canceled and of no further effect.

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

Section 5.14 <u>Undertaking for Costs</u>.

In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any such party litigant, including reasonable attorneys' fees and expenses, in the manner and to the extent provided in the Trust Indenture Act; *provided* that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit instituted by the Trustee, by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series, or by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security on or after the Stated Maturity expressed in such Security (or, in the case of redemption or repayment at the option of the Holder, on or after the Redemption Date or Repayment Date, as the case may be).

Section 5.15 <u>Waiver of Stay or Extension Laws</u>.

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

**ARTICLE VI.**

**THE TRUSTEE**

Section 6.01 <u>Certain Duties and Responsibilities</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except during the continuance of an Event of Default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision of this Indenture are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations or other facts stated therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) this Subsection shall not be construed to limit the effect of Subsection (a) of this Section;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the Outstanding Securities of any series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

Section 6.02 <u>Notice of Defaults</u>.

Within 90 days after the occurrence of any default hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as their names and addresses appear in the Security Register, notice of such default hereunder known to the Trustee, unless such default shall have been cured or waived; *provided*, however, that, except in the case of a default in the payment of the principal, premium or interest on any Security of such series or in the payment of any mandatory sinking fund installment with respect to the Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee of the board of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of the Holders of the Securities of such series; and *provided, further*, that in the case of any default of the character specified in Section 5.01(4) with respect to the Securities of such series no such notice to Holders shall be given until at least 60 days after the occurrence thereof. For the purpose of this Section, the term "<u>default</u>" means any event which is, or after notice or lapse of time or both would become, an Event of Default.

Section 6.03 <u>Certain Rights of Trustee</u>.

Subject to the provisions of Section 6.01:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers' Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security and/or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Trustee shall not be required to take notice or be deemed to have notice or knowledge of any default hereunder (except failure by the Company to pay principal of (or premium, if any) or interest on any series of Securities so long as the Trustee is also acting as Paying Agent for such series of Securities) unless the Trustee shall be specifically notified in writing of such default by the Company or by the Holders of at least 10% in aggregate principal amount of all Outstanding Securities, and all such notices or other instruments required by this Indenture to be delivered to the Trustee must, in order to be effective, be delivered to and received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee, and in the absence of such notice the Trustee may conclusively assume there is no default except as aforesaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed by the Trustee to act hereunder pursuant to the terms of this Indenture.

Section 6.04 <u>Not Responsible for Recitals or Issuance of Securities</u>.

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The recitals contained herein and in the Securities, except the Trustee's certificates of authentication, shall be taken as the statements of the Company, and the Trustee or any Authenticating Agent assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be accountable for the use or application by the Company of Securities or the proceeds thereof. The Trustee shall not be deemed to have knowledge of the identity of any Subsidiary unless either (A) a Responsible Officer of the Trustee shall have actual knowledge thereof or (B) a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company or any Holder.

Section 6.05 <u>May Hold Securities</u>.

The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Section 6.08 and Section 6.13, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

Section 6.06 <u>Money Held in Trust</u>.

Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on, or to invest, any money received by it hereunder except as otherwise agreed with the Company.

Section 6.07 <u>Compensation and Reimbursement</u>.

The Company agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to pay to the Trustee from time to time reasonable compensation for the Trustee's services rendered hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to the Trustee's own negligence or willful misconduct; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to indemnify the Trustee for, and to hold it harmless against, in each case to the extent permitted by law, any charge, loss, claim, damage, liability or expense incurred without negligence or willful misconduct on the Trustee's part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the Trustee's costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of the Trustee's powers or duties hereunder including the costs and expenses of defending itself against any claim (whether asserted by the Company, or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, or in connection with enforcing the provisions of this Section, except to the extent that such charge loss, damage, claim, liability or expense is due to its own negligence or willful misconduct.

As security for the performance of the obligations of the Company under this Section, the Trustee shall have a lien prior to the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities.

The benefits of this Section shall survive the termination of this Indenture and the resignation or removal of the Trustee.

Section 6.08 <u>Disqualification; Conflicting Interests</u>.

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If the Trustee has or shall acquire a conflicting interest within the meaning of Section 3.10 of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting interest with respect to the Securities of any series by virtue of being Trustee with respect to the Securities of any particular series of Securities except as may be otherwise provided by the terms of the Securities of that series.

Section 6.09 <u>Corporate Trustee Required; Eligibility</u>.

There shall at all times be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of Federal, State, Territorial or District of Columbia supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

Section 6.10 <u>Resignation and Removal; Appointment of Successor</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 6.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by Section 6.11 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may at the expense of the Company petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to the Company. If the instrument of acceptance by a successor Trustee required by Section 6.11 shall not have been delivered to the Trustee within 60 days after the removal of Trustee, the removed Trustee may at the expense of the Company petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Trustee shall fail to comply with Section 6.08 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign after written request therefor by the Company or by any such Holder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall become incapable of acting or shall be adjudged bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company may remove the Trustee with respect to any or all Securities, or (ii) subject to Section 5.14, any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of themselves and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to any or all Securities and the appointment of a successor Trustee or Trustees with respect to such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company shall promptly

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appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with the applicable requirements of Section 6.11. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of that or those series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 6.11, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 6.11, any Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of themselves and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series to all Holders of Securities of such series in the manner provided in Section 1.06. Each notice of appointment shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

Section 6.11 <u>Acceptance of Appointment by Successor</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject nevertheless to its lien, if any, provided for in Section 6.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article.

Section 6.12 <u>Merger, Conversion, Consolidation or Succession to Business</u>.

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, *provided* such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. In case any Securities shall not have been authenticated by such predecessor Trustee, any such successor Trustee may authenticate and deliver such Securities, in either its own name or that of its predecessor Trustee, with the full force and effect which this Indenture provides for the certificate of authentication of the Trustee.

Section 6.13 <u>Preferential Collection of Claims Against Company</u>.

If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject to the provisions of Section 3.11 of the Trust Indenture Act regarding the collection of such claims against the Company (or any such other obligor). A Trustee that has resigned or been removed shall be subject to and comply with said Section 3.11 to the extent required thereby.

Section 6.14 <u>Appointment of Authenticating Agent</u>.

The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities (which may be an Affiliate of the Company) which shall be authorized to act on behalf of the Trustee to authenticate Securities issued upon registration of transfer or partial redemption or repayment thereof or pursuant to Section 3.06, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation organized and doing business and in good standing under the laws of the United States, any State or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of no less than $50,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, *provided* such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. An Authenticating Agent for any series of Securities may resign at any time by giving written notice thereof to the Trustee for such series and to the Company. The Trustee for any series of Securities may at any time terminate the agency of an Authenticating Agent for such series by giving written notice

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thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee of such series may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

Except with respect to an Authenticating Agent appointed at the request of the Company, the Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section, and the Trustee shall be entitled to be reimbursed for such payments, pursuant to the provisions of Section 6.07.

If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee's certificate of authentication, an alternative certificate of authentication in the following form:

This is one of the Securities of the series described therein referred to in the within-mentioned Indenture.

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

as Trustee

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

As Authenticating Agent

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Authorized Officer

**ARTICLE VII.**

**HOLDERS' LISTS AND REPORTS**

**BY TRUSTEE AND COMPANY**

Section 7.01 <u>Company to Furnish Trustee Names and Addresses of Holders.</u>

With respect to each series of Securities, the Company will furnish or cause to be furnished to the Trustee for the Securities of such Series

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) semiannually, not more than 15 days after each Regular Record Date relating to that series (or, if there is no Regular Record Date relating to that series, on June 30 and December 31), a list, in such form as such Trustee may reasonably require, of the names and addresses of the Holders of that series as of such date, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; *provided*, however, that if and so long as the Trustee is Security Registrar with respect to Securities of a particular series no such list shall be required with respect to the Securities of such series.

Section 7.02 <u>Preservation of Information; Communications to Holders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of the disclosure of information as to the names and addresses of the Holders made pursuant to the Trust Indenture Act.

Section 7.03 <u>Reports by Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within 60 days after May 15 of each year commencing with 2025, the Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act if and to the extent and in the manner provided pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange.

Section 7.04 <u>Reports by Company</u>.

The Company shall file with the Trustee and the Commission, and transmit to Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act in the manner provided pursuant to the Trust Indenture Act; *provided* that any such information, documents or reports required to be filed with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is filed with the Commission. Delivery of such reports to the Trustee is for informational purposes only and the Trustee's receipt of such reports shall not constitute actual or constructive notice or knowledge of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers' Certificates).

Section 7.05 <u>Holders' Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A meeting of Holders of any or all series may be called at any time and from time to time pursuant to the provisions of this Section 7.05 for any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to give any notice to the Company or to the Trustee for such series, or to give any directions to the Trustee for such series, or to consent to the waiving of any default hereunder and its consequences, or to take any other action authorized to be taken by Holders pursuant to any of the provisions of Article V;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to remove the Trustee for such series and appoint a successor Trustee pursuant to the provisions of Article VI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to consent to the execution of an indenture or supplemental indentures hereto pursuant to the provisions of Section 9.02; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Outstanding Securities of any one or more or all series, as the case may be, under any other provision of this Indenture or under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee for any series may at any time call a meeting of Holders of such series to take any action specified in paragraph (a) of this Section 7.05, to be held at such time or times and at such place or places as the Trustee for such series shall determine. Notice of every meeting of the Holders of any series, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given to Holders of such series in the manner and to the extent provided in Section 1.06. Such notice shall be given not less than 20 days nor more than 90 days prior to the date fixed for the meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In case at any time the Company, or the Holders of at least 10% in aggregate principal amount of the Outstanding Securities of a series or of all series, as the case may be, shall have requested the Trustee for such series to call a meeting of Holders of any or all such series by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have given the notice of such meeting within 20 days after the receipt of such request, then the Company or such Holders may determine the time or times and the place or places for such meetings and may call such meetings to take any action authorized by giving notice thereof as provided in the preceding paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To be entitled to vote at any meeting of Holders a Person shall be (a) a Holder of a Security of the series with respect to which such meeting is being held or (b) a Person appointed by an instrument in writing as agent or proxy by such Holder. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee for the series with respect to which such meeting is being held and its counsel and any representatives of the Company and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provisions of this Indenture, the Trustee for any series may make such reasonable regulations as it may deem advisable for any meeting of Holders of such series, in regard to proof of the holding of Securities of such series and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders of such series as provided in paragraph (c) of this Section 7.05, in which case the Company or the Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by a majority vote of the meeting.

Subject to the provisos in the definition of "Outstanding," at any meeting each Holder of a Debt Security of the series with respect to which such meeting is being held or proxy therefor shall be entitled to one vote for each $1,000 principal amount (or such other amount as shall be specified as contemplated by Section 3.01) of Securities of such series held or represented by him; *provided*, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Outstanding Securities of such series held by such chairman or instruments in writing duly designating the chairman as the person to vote on behalf of Holders of Securities of such series. Any meeting of Holders with respect to which a meeting was duly called pursuant to the provisions of paragraph (b) or (c) of this Section 7.05 may be adjourned from time to time by a majority of such Holders present and the meeting may be held as so adjourned without further notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The vote upon any resolution submitted to any meeting of Holders with respect to which such meeting is being held shall be by written ballots on which shall be subscribed the signatures of such Holders or of their representatives by proxy and the serial number or numbers of the Securities held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was transmitted as provided in paragraph (b) of this Section 7.05. The record shall show the serial numbers of the Securities voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee.

Any record so signed and verified shall be conclusive evidence of the matters therein stated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Nothing contained in this Section 7.05 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to any Holder under any of the provisions of this Indenture or of the Securities of any series.

**ARTICLE VIII.**

**CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE**

Section 8.01 <u>Company May Consolidate, Etc., Only on Certain Terms</u>.

The Company shall not consolidate with or merge with or into any other Person or convey, transfer or lease all or substantially all of its property or assets to any Person unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in case the Company shall consolidate with or merge into another Person or convey, transfer or lease all or substantially all of its property or assets to any Person, the Person formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company shall be either the Company or a corporation or limited liability company, shall be organized and validly existing under the laws of the United States, any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto executed and delivered to the Trustee, all obligations hereunder, including the due and punctual payment of the principal of and any premium and interest on all the Securities and the performance or observance of every covenant of this Indenture on the part of the Company to be performed or observed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) after giving effect to such transaction, no Event of Default shall have occurred and be continuing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein relating to such consolidation, conveyance or merger have been satisfied and that after giving effect to such transaction, no Event of Default shall have occurred and be continuing.

Notwithstanding the foregoing, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties and assets to the Company.

Section 8.02 <u>Successor Substituted</u>.

Upon any consolidation of the Company with, or merger of the Company into, any other Person or conveyance, transfer or lease of all or substantially all of the property or assets of the Company in accordance with Section 8.01, the successor Person formed by such consolidation or into which the Company is merged or to which conveyance, transfer or lease of all or substantially all of its property or assets is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. In the case of a lease, the predecessor Person shall not be released from its obligations to pay the principal of, premium, if any, and interest on the Securities. All Securities issued by the successor Person shall in all respects have the same legal priority as the Securities theretofore or thereafter authenticated, issued and delivered in accordance with the terms of this Indenture.

**ARTICLE IX.**

**SUPPLEMENTAL INDENTURES**

Section 9.01 <u>Supplemental Indentures Without Consent of Holders</u>.

Without the consent of any Holders, the Company and the Trustee, at any time and from time to time, may amend the Securities of a series or enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to make such provision in regard to matters or questions arising under this Indenture as may be necessary or desirable and not inconsistent with this Indenture or for the purpose of supplying any omission, curing any ambiguity, or curing, correcting or supplementing any defective or inconsistent provision, *provided* that such provision shall not adversely affect the interests of Holders of Outstanding Securities created prior to the execution of such supplemental indenture in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to change or eliminate any of the provisions of this Indenture, *provided* that any such change or elimination shall become effective only when there is no Outstanding Security of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to secure the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to establish the form or terms of Securities of any series as permitted by Section 2.01 and Section 3.01; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to evidence the succession of another Person to the Company, and the assumption by any such successor of the covenants of the Company herein and in the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) to grant to or confer upon the Trustee for the benefit of the Holders any additional rights, remedies, powers or authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) to permit the Trustee to comply with any duties imposed upon it by law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) to specify further the duties and responsibilities of, and to define further the relationships among, the Trustee, any Authenticating Agent and any Paying Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender a right or power conferred on the Company herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) to add any additional Events of Default (and if such Events of Default are to be applicable to less than all series of Securities, stating that such Events of Default are expressly being included for the benefit of such series).

Section 9.02 <u>Supplemental Indentures With Consent of Holders</u>.

With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture, by Act of such Holders delivered to the Company and the Trustee, the Company and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; *provided*, however, that no such supplemental indenture shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) change the Stated Maturity of any Security; or reduce the rate of interest on any Security; or change the method of calculating interest, or any term used in the calculation of interest, or the period for which interest is payable, on any Security; or reduce the principal amount of any Security or any premium thereon; or reduce the payment of any mandatory sinking fund or analogous obligation; or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof; or adversely affect the right of repayment or renewal, if any, at the option of the Holders; or change the coin or currency in which the principal of any Security or any premium or interest thereon is payable; or change the date on which any Security may be redeemed; or adversely affect the rights of any Holder to institute suit for the enforcement of any payment of principal of or any premium or interest on any Security, in each case without the consent of the Holder of each Outstanding Security that would be affected thereby (for purposes of this Section

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9.02(1) only, the term "Security" shall include Securities for which an offer to purchase has been accepted by the Company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the aforesaid percentage of Securities, the Holders of which are required to consent to any such supplemental indenture, or the percentage in aggregate principal amount of the Outstanding Securities the consent of the Holders of which is required for any waiver of certain past defaults or Events of Default hereunder or the consequences thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) waive a continuing default or Event of Default in the payment of principal of, premium (if any) or interest on any Security,

in each case without the consent of the Holders of all of the Outstanding Securities.

In addition, any amendment to, or waiver of, the provisions of this Indenture relating to subordination, include Article XVI, that adversely affects the rights of the Holders of the Outstanding Securities shall require the consent of the Holders of at least 75% in aggregate principal amount of Outstanding Securities.

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

Section 9.03 <u>Execution of Supplemental Indentures</u>.

Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

Section 9.05 <u>Conformity with Trust Indenture Act</u>.

Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.<br>Section 9.06 <u>Reference in Securities to Supplemental Indentures</u>.

Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.<br>Section 9.07 <u>Notice of Supplemental Indenture</u>.

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Promptly after the execution by the Company and the appropriate Trustee of any supplemental indenture, the Company shall transmit, as provided herein, to all Holders of any series of the Securities affected thereby, a notice setting forth in general terms the substance of such supplemental indenture; *provided*, however, that no such notice shall be required with respect to a supplemental indenture that is entered into solely pursuant to clause (4) of Section 9.01 of this Indenture to establish the form or terms of Securities of any series as permitted by Section 2.01 and Section 3.01 of this Indenture.<br>Section 9.08 <u>Subordination Unimpaired</u>.

No supplemental indenture executed pursuant to this Article shall directly or indirectly modify the provisions of Article XVI in any manner which might alter the subordination of the Securities.

**ARTICLE X.**

**COVENANTS**

Section 10.01 <u>Payment of Principal, Premium and Interest</u>.

The Company covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay the principal of (and premium, if any) and interest on the Securities of that series in accordance with the terms of the Securities and this Indenture.

Section 10.02 <u>Maintenance of Office or Agency</u>.

The Company will maintain in each Place of Payment an office or agency where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company terminates the appointment of a Paying Agent or Security Registrar or otherwise shall fail to maintain any such required office or agency, the Company shall use its reasonable best efforts to appoint a successor Paying Agent or Security Registrar reasonably acceptable to the Trustee. If the Company fails to maintain a Paying Agent or Security Registrar, the Trustee will act as such, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; *provided*, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in each Place of Payment for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

Unless otherwise provided in or pursuant to Section 3.01 of this Indenture, the Company hereby designates as a Place of Payment for each series of Securities the Borough of Manhattan, The City of New York, and initially appoints the corporate trust agency office of The Bank of New York Mellon Trust Company, N.A. as its office or agency in that Place of Payment for such purpose.

Section 10.03 <u>Money for Securities Payments to Be Held in Trust</u>.

If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee in writing of its action or failure so to act.

Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to

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be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee in writing of its action or failure so to act.

The Company will cause each Paying Agent for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) hold all sums held by it for the payment of the principal of (and premium, if any) or interest on Securities of that series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) give the Trustee written notice of any default by the Company (or any other obligor upon the Securities of that series) in the making of any payment of principal of (and premium, if any) or interest on the Securities of that series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any) or interest on any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; *provided*, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in an Authorized Newspaper in the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company.

Section 10.04 <u>Corporate Existence</u>.

Subject to Article VIII, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; *provided*, however, that the Company shall not be required to preserve any such right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company.

Section 10.05 <u>Statement as to Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, a certificate, signed by the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not to the best knowledge of the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company will give to the Trustee written notice of the occurrence of an Event of Default within five days after the Company becomes aware of such occurrence.

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Section 10.06 <u>Waiver of Certain Covenants</u>.

The Company may omit in any particular instance to comply with any term, provision or condition set forth in Section 8.01 with respect to the Securities of any series if, before the time for such compliance, the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect.

**ARTICLE XI.**

**REDEMPTION OF SECURITIES**

Section 11.01 <u>Applicability of Article</u>.

Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated in Section 3.01 for Securities of any series) in accordance with this Article.

Section 11.02 <u>Election to Redeem; Notice to Trustee</u>.

The election of the Company to redeem any Securities shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of less than all the Securities of any series, the Company shall, at least 10 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such restriction.

Section 11.03 <u>Selection by Trustee of Securities to Be Redeemed</u>.

If less than all the Securities of any series are to be redeemed (unless all of the Securities of such series and of a specified tenor are to be redeemed), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date, from the Outstanding Securities of such series not previously called for redemption, by lot, which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series; *provided* that in any case where the Securities are in the form of Global Securities, the Securities to be redeemed shall be selected in accordance with the policies and procedures of the Depositary. If the Company shall so specify and identify the appropriate Securities, Securities owned of record and beneficially by the Company or any Subsidiary shall not be included in the Securities selected for redemption.

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed.

Section 11.04 <u>Notice of Redemption</u>.

Notice of redemption shall, unless otherwise specified by the terms of the Securities to be redeemed, be given not less than 10 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, in accordance with Section 1.06.

All notices of redemption shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Redemption Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Redemption Price (or if not then ascertainable, the manner of calculation thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the place or places where such Securities are to be surrendered for payment of the Redemption Price, which shall be the office or agency of the Company in each Place of Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) that payment of the Redemption Price, together with accrued interest, if any, to the Redemption Date, will be made on the surrender of such Securities at such place or places of redemption and, if applicable, that from and after the Redemption Date interest on such Securities will cease to accrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the CUSIP number of such Securities, if any, or any other numbers used by the Depositary to identify such Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) if less than all the Outstanding Securities of any series are to be redeemed (unless all the Securities of such series of a specified tenor are to be redeemed), the identification (and, in the case of partial redemption of any Securities, the principal amounts) of the particular Securities to be redeemed and, if less than all the Outstanding Securities of any series and of a specified tenor consisting of a single Security are to be redeemed, the principal amount of the particular Security to be redeemed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) in the case of partial redemption of any Securities, that upon surrender of such Securities, a new Security or new Securities having the same terms will be issued in aggregate principal amount equal to the unredeemed portion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) that the redemption is for a sinking fund, if such is the case.

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense of the Company.

Section 11.05 <u>Deposit of Redemption Price</u>.

Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date.

Section 11.06 <u>Securities Payable on Redemption Date</u>.

Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption Date; *provided*, however, that, unless otherwise specified as contemplated by Section 3.01, installments of interest whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 3.07.

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security.

Section 11.07 <u>Securities Redeemed in Part</u>.

Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly

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authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and of like tenor, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. If a Global Security is so surrendered, such new Security so issued shall be a new Global Security.

**ARTICLE XII.**

**SINKING FUNDS**

Section 12.01 <u>Applicability of Article</u>.

The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 3.01 for Securities of such series.

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment," and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment." If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.02. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.

Section 12.02 <u>Satisfaction of Mandatory Sinking Fund Payments with Securities</u>.

The Company (1) may deliver Outstanding Securities of a series to the Trustee for cancellation (other than any previously called for redemption) and (2) may apply as a credit Securities of a series which have been redeemed either at the election of the Company or the Holders, if applicable, pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any mandatory sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series or may apply Securities of such series which have been previously canceled; *provided* that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of such mandatory sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly.

Section 12.03 <u>Redemption of Securities for Mandatory Sinking Fund</u>.

Not less than 60 days prior to each mandatory sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities or applying previously canceled Securities of that series pursuant to Section 12.02 and the basis for such credit and will also deliver to the Trustee any Securities to be so delivered which have not theretofore been delivered to the Trustee. Not less than 30 days before each such mandatory sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such mandatory sinking fund payment date in the manner specified in Section 11.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.03. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 11.04, Section 11.05 and Section 11.06.

**ARTICLE XIII.**

**REPAYMENT OF SECURITIES**

**AT OPTION OF HOLDERS**

Section 13.01 <u>Applicability of Article</u>.

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Securities of any series that are repayable before their Stated Maturity at the option of the Holders shall be repaid in accordance with their terms and (except as otherwise specified as contemplated by Section 3.01 for Securities of any series) in accordance with this Article.

Section 13.02 <u>Notice of Repayment Date</u>.

Notice of any Repayment Date with respect to Securities of any series shall, unless otherwise specified by the terms of the Securities of such series, be given by the Company not less than 10 nor more than 60 days prior to such Repayment Date, to the Trustee and to each Holder of Securities of such series in accordance with Section 1.05 and Section 1.06, respectively.

The notice as to Repayment Date shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Repayment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Repayment Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the place or places where such Securities are to be surrendered for payment of the Repayment Price, which shall be the office or agency of the Company in each Place of Payment, and the date by which Securities must be so surrendered in order to be repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4) a description of the procedure which a Holder must follow to exercise a repayment right; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) that exercise of the option to elect repayment is irrevocable.

No failure of the Company to give the foregoing notice shall limit any Holder's right to exercise a repayment right.

Section 13.03 <u>Deposit of Repayment Price</u>.

On or prior to any Repayment Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money sufficient to pay the Repayment Price of and (except if the Repayment Date shall be an Interest Payment Date) accrued interest on, all the Securities of such series which are to be repaid on that date.

Section 13.04 <u>Securities Payable on Repayment Date</u>.

The form of option to elect repayment having been delivered as specified in the form of Security for such series as provided in Section 2.01, the Securities so to be repaid shall, on the Repayment Date, become due and payable at the Repayment Price applicable thereto, and from and after such date (unless the Company shall default in the payment of the Repayment Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for repayment in accordance with said notice, such Security shall be paid by the Company at the Repayment Price, together with accrued interest to the Repayment Date; *provided*, however, that, unless otherwise specified as contemplated by Section 3.01, installments of interest whose Stated Maturity is on or prior to such Repayment Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Date according to their terms and the provisions of Section 3.07.

If any Security to be repaid shall not be so paid upon surrender thereof for repayment, the principal shall, until paid, bear interest from the Repayment Date at the rate prescribed in the Security.

Section 13.05 <u>Securities Repaid in Part</u>.

Any Security which by its terms may be repaid in part at the option of the Holder thereof and which is to be repaid only in part shall be surrendered at any office or agency of the Company designated for that purpose pursuant to Section 10.02 (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of

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transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities of the same series and of like tenor, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unrepaid portion of the principal of the Security so surrendered. If a Global Security is so surrendered, such new Security so issued shall be a new Global Security.

**ARTICLE XIV.**

**DEFEASANCE AND COVENANT DEFEASANCE**

Section 14.01 <u>Applicability of Article; Company's Option to Effect Defeasance or Covenant Defeasance</u>.

If, pursuant to Section 3.01, provision is made for either or both of (a) Defeasance of the Securities of a series under Section 14.02 or (b) Covenant Defeasance of the Securities of a series under Section 14.03, then the provisions of such Section or Sections, as the case may be, together with the other provisions of this Article XIV, shall be applicable to the Outstanding Securities of such series, and the Company may at its option at any time with respect to the Securities of such series, elect to have either Section 14.02 (if applicable) or Section 14.03 (if applicable) be applied with respect to all, and not less than all, the Outstanding Securities of such series upon compliance with the conditions set forth below in this Article XIV. To the extent that the Company is permitted, pursuant to Section 3.01, to extend interest payment periods or defer interest payments, change the time for interest payments, or change the Stated Maturity of the Securities of any series or any installment of principal thereof or interest thereon, or otherwise change the time of any payment of principal thereof or premium, if any, or interest thereon, any such right shall terminate upon Defeasance or Covenant Defeasance of the Securities of that series as described below or upon satisfaction and discharge with respect to the Securities of that series pursuant to Section 4.01.

Section 14.02 <u>Defeasance and Discharge</u>.

Upon the Company's exercise of the above option applicable to this Section with respect to the Outstanding Securities of a particular series, the Company shall be deemed to have been discharged from its obligations, and the provisions of Article XVI shall cease to be effective, with respect to the Outstanding Securities of such series (except for certain obligations to register the transfer or exchange of Securities of such series, to replace stolen, lost or mutilated Securities of such series, and to maintain paying agencies) on and after the date the conditions precedent set forth in Section 14.04 are satisfied (hereinafter, "<u>Defeasance</u>"). For this purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the Outstanding Securities of such series and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company and upon Company Request, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of Outstanding Securities of such series to receive, solely from the trust fund described in Section 14.04 as more fully set forth in such Section, payments of the principal of and any premium and interest on such Securities when such payments are due, (B) the Company's and the Trustee's obligations with respect to such Securities under Section 3.04, Section 3.05, Section 3.06, Section 6.07, Section 10.02, Section 10.03 and Section 13.06 and such obligations as shall be ancillary thereto, (C) the rights, powers, trusts, duties, immunities and other provisions in respect of the Trustee hereunder and (D) this Article XIV. Subject to compliance with this Article XIV, the Company may exercise its option under this Section 14.02 notwithstanding the prior exercise of its option under Section 14.03 with respect to the Securities of such series.

Section 14.03 <u>Covenant Defeasance</u>.

Upon the Company's exercise of the above option applicable to this Section with respect to the Outstanding Securities of a particular series, (i) the Company shall be released from its obligations under Section 8.01 (and any other covenant applicable to such Securities that is determined pursuant to Section 3.01 to be subject to Covenant Defeasance under this Section), (ii) the occurrence of an event specified in Section 5.01(4) with respect to Section 8.01 (and any other Event of Default applicable to such Securities that is determined pursuant to Section 3.01 to be subject to Covenant Defeasance under this Section) shall not be deemed to be an Event of Default and (iii) the

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provisions of Article XVI shall cease to be effective, in each case, with respect to the Outstanding Securities of such series on and after the date the conditions set forth in Section 14.04 are satisfied (hereinafter, "<u>Covenant Defeasance</u>"). For this purpose, such Covenant Defeasance means that, with respect to the Outstanding Securities of such series, the Company may omit to comply with and shall have no liability in respect of any term, condition, limitation or restrictive covenant set forth in any such specified Section or Article whether directly or indirectly by reason of any reference elsewhere herein to any such Section or Article or by reason of any reference in any such Section or Article to any other provision herein or in any other document, including any supplement hereto, any Board Resolution or Officers' Certificate delivered hereto but the remainder of this Indenture and such Securities shall be unaffected thereby.

Section 14.04 <u>Conditions to Defeasance or Covenant Defeasance</u>.

The following shall be the conditions precedent to application of either Section 14.02 or Section 14.03 to the Outstanding Securities of a particular series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee or an affiliate of the Trustee (or another trustee satisfying the requirements of Section 6.09 who shall agree to comply with the provisions of this Article XIV applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (C) a combination thereof, sufficient, without reinvestment of interest earned thereon, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereto delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (i) the principal of and any premium, if any, and interest on the Outstanding Securities of such series on the maturity of such principal, premium or interest and (ii) any mandatory sinking fund payments or analogous payments applicable to the Outstanding Securities of such series on the day on which such payments are due in accordance with the terms of this Indenture and of such Securities. Before such a deposit, the Company may make arrangements satisfactory to the Trustee for the redemption of Securities at a future date or dates in accordance with Article XI, which shall be given effect in applying the foregoing. For this purpose, "<u>U.S. Government Obligations</u>" means securities that are (x) direct obligations of the United States for the payment of which its full faith and credit is pledged or (y) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such depositary receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal of or interest on the U.S. Government Obligation evidenced by such depositary receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No Event of Default with respect to the Securities of such series shall have occurred and be continuing (A) on the date of such deposit or (B) insofar as Section 5.01(5) and Section 5.01(6) are concerned, at any time during the period ending on the 91st day after the date of such deposit or, if longer, ending on the day following the expiration of the longest preference period applicable to the Company in respect of such deposit (it being understood that the condition in this condition shall not be deemed satisfied until the expiration of such period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such Defeasance or Covenant Defeasance shall not (A) cause the Trustee for the Securities of such series to have a conflicting interest as defined in Section 6.08 or for purposes of the Trust Indenture Act with respect to any securities of the Company or (B) result in the trust arising from such deposit to constitute, unless it is qualified as, a regulated investment company under the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) In the case of an election under Section 14.02, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (y) since the date of this Indenture there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of the Outstanding Securities of such series will not recognize income, gain or loss for United States federal income tax purposes as a result of such deposit, Defeasance and discharge and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit, Defeasance and discharge had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) In the case of an election under Section 14.03, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of the Outstanding Securities of such series will not recognize income, gain or loss for United States federal income tax purposes as a result of such Covenant Defeasance and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and Covenant Defeasance had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Such Defeasance or Covenant Defeasance shall be effected in compliance with any additional terms, conditions or limitations which may be imposed on the Company in connection therewith pursuant to Section 3.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) At the time of such deposit, (A) no default in the payment of any principal of or premium or interest on any Senior Debt shall have occurred and be continuing, (B) no event of default with respect to any Senior Debt shall have resulted in such Senior Debt becoming, and continuing to be, due and payable prior to the date on which it would otherwise have become due and payable (unless payment of such Senior Debt has been made or duly provided for), and (C) no other event of default with respect to any Senior Debt shall have occurred and be continuing permitting (after notice or lapse of time or both) the holders of such Senior Debt (or a trustee on behalf of such holders) to declare such Senior Debt due and payable prior to the date on which it would otherwise have become due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) The Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to either the Defeasance under Section 14.02 or the Covenant Defeasance under Section 14.03 (as the case may be) have been complied with.

Section 14.05 <u>Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions</u>.

Subject to the provisions of the last paragraph of Section 10.03, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively, for purposes for this Section 14.05, the "Trustee") pursuant to Section 14.04 in respect of the Outstanding Securities of such series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (but not including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal, premium and interest, but such money need not be segregated from other funds except to the extent required by law.

The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the money or U.S. Government Obligations deposited pursuant to Section 14.04 or the principal and interest received in respect thereof.

Anything herein to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 14.04 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent Defeasance or Covenant Defeasance, as the case may be, with respect to such Securities.

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All money and U.S. Government Obligations (including the proceeds thereof) held and applied pursuant to this Section 14.05 shall not be subject to the claims of the holders of Senior Debt under Article XVI.

Section 14.06 <u>Reinstatement</u>.

If the Trustee or the Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Section 4.01 or Section 14.04 to pay any principal of or premium, if any, or interest, if any, on the Securities of any series by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to this Article XIV until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations to pay the principal of and premium, if any, and interest, if any, on the Securities of such series in accordance with Section 4.02 or Section 14.05, as the case may be; *provided*, however, that if the Company makes any payment of the principal of or any premium or interest on the Securities of such series following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or the Paying Agent, but shall not be entitled to enforce or to receive any payments arising out of, or based upon, such right of subrogation until the principal of and premium, if any, and interest, if any, on all Securities of that series shall have been paid in full.

**ARTICLE XV.**

**IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS**

Section 15.01 <u>Immunity of Incorporators, Stockholders, Officers and Directors</u>.

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors, as such, of the Company or any successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director, as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of such Securities.

**ARTICLE XVI.**

**SUBORDINATION OF SECURITIES**

Section 16.01 <u>Securities Subordinate to Senior Debt</u>.

The Company covenants and agrees that anything in this Indenture or the Securities of any series to the contrary notwithstanding, the indebtedness evidenced by the Securities of each series and the payment of the principal of and any premium or interest on each and all of the Securities of such series is subordinated, to the extent and in the manner hereinafter set forth, in right of payment to all Senior Debt to the extent provided herein, and each Holder of Securities of each series, by such Holder's acceptance thereof, likewise covenants and agrees to the subordination herein provided and shall be bound by the provisions hereof. Senior Debt shall continue to be Senior Debt and entitled to the benefits of these Subordination Provisions irrespective of any amendment, modification or waiver of any term of the Senior Debt or extension or renewal of the Senior Debt.

In the event that the Company shall default in the payment of any principal of (or premium, if any) or interest on any Senior Debt when the same becomes due and payable, whether at maturity or at a date fixed for

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repayment or by declaration of acceleration or otherwise, then, upon written notice of such default to the Company by the holders of Senior Debt or any trustee therefor or representative thereof, unless and until such default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment (in cash, property, securities, by set-off or otherwise) shall be made or agreed to be made on account of the principal of (or premium, if any) or interest on any of the Securities, or in respect of any redemption, retirement, purchase or other acquisition of any of the Securities.

With respect to the Securities of any series (unless provided pursuant to Section 3.01 with respect to the Securities of such series), in the event of (a) any payment by, or distribution of the assets of, the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution, winding up, liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other similar proceedings, (b) a failure to pay any interest, principal or other monetary amounts due on any of the Company's Senior Debt when due and continuance of that default beyond any applicable grace period, or (c) acceleration of the maturity of any Senior Debt of the Company as a result of a default with respect to such Senior Debt, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the holders of all such Senior Debt shall first be entitled to receive, in the case of clause (a) above, payment of all amounts due or to become due upon all such Senior Debt or, in the case of clauses (b) and (c) above, payment of all amounts due upon all such Senior Debt, or provision shall be made for such payment in money or money's worth, before the Holders of any of the Securities of such series are entitled to receive any payment on account of the principal of or any premium or interest on the indebtedness evidenced by the Securities of such series, including, without limitation but subject to the provisions of Section 14.05, any payments made pursuant to Article XI or Article XII of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) so long as any of the events in clauses (a), (b) or (c) above has occurred and is continuing, any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, to which the Holders of any of the Securities of such series would be entitled except for the provisions of this Article, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of the Securities of such series, shall be paid or distributed, as the case may be, by the Person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of such Senior Debt or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any such Senior Debt may have been issued, ratably according to the aggregate amounts remaining unpaid on account of such Senior Debt held or represented by each, to the extent necessary to make payment, in the case of clause (a) above, of all amounts due and to become due upon all such Senior Debt, or, in the case of clauses (b) and (c) above, of all amounts due upon all such Senior Debt, in each case remaining unpaid after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Debt, before any payment or distribution is made to the Holders of the indebtedness evidenced by the Securities of such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) so long as any of the events in clauses (a), (b) or (c) above has occurred and is continuing, in the event that, notwithstanding the foregoing, any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of the Securities of such series, in respect of principal of or any premium or interest on any of the Securities of such series or in connection with the repurchase by the Company of any of the Securities of such series, shall be received by the Trustee or the Holders of any of the Securities of such series before, in the case of clause (a) above, all amounts due or to become due upon all such Senior Debt or, in the case of clauses (b) and (c) above, all amounts due upon all such Senior Debt is paid in full (or provision is made for such payment), then such payment or distribution shall be paid over to the holders of such Senior Debt or their representative or representatives or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any such Senior Debt may have been issued, ratably as aforesaid, for application to the payment of, in the case of clause (a) above, all amounts due and to become due upon all such Senior Debt or, in the case of clause (b) and (c) above, all amounts due upon all such Senior Debt, in each case until all such amounts shall have been paid in full, after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Debt. In the event of the failure of the Trustee or any Holder to endorse or assign any such payment, distribution or security, each holder of Senior Debt is hereby irrevocably authorized to endorse or assign the same.

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No present or future holder of any Senior Debt shall be prejudiced in the right to enforce subordination of the indebtedness evidenced by the Securities by any act or failure to act on the part of the Company. Nothing contained herein shall impair, as between the Company and the Holders of Securities of each series, the obligation of the Company to pay to such Holders the principal of (and premium, if any) and interest on such Securities or prevent the Trustee or the Holder from exercising all rights, powers and remedies otherwise permitted by applicable law or hereunder upon an Event of Default, all subject to the rights of the holders of the Senior Debt to receive cash, securities or other property otherwise payable or deliverable to the Holders.

Senior Debt shall not be deemed to have been paid in full unless the holders thereof shall have received cash, securities or other property equal to the amount of such Senior Debt then outstanding. Upon the payment in full of all Senior Debt, the Holders of Securities of each series shall be subrogated to all rights of any holders of Senior Debt to receive any further payments or distributions applicable to the Senior Debt until the indebtedness evidenced by the Securities of such series shall have been paid in full, and such payments or distributions received by such Holders, by reason of such subrogation, of cash, securities or other property which otherwise would be paid or distributed to the holders of Senior Debt, shall, as between the Company and its creditors other than the holders of Senior Debt, on the one hand, and such Holders, on the other hand, be deemed to be a payment by the Company on account of Senior Debt, and not on account of the Securities of such series.

The provisions of this Section 16.01 shall not impair any right, interests, remedies or powers of any secured creditor of the Company in respect of any security interest the creation of which is not prohibited by the provisions of this Indenture.

The securing of any obligations of the Company, otherwise ranking on a parity with the Securities or ranking junior to the Securities, shall not be deemed to prevent such obligations from constituting, respectively, obligations ranking on a parity with the Securities or ranking junior to the Securities.

Section 16.02 <u>Trustee and Holders of Securities May Rely on Certificate of Liquidating Agent; Trustee May Require Further Evidence as to Ownership of Senior Debt; Trustee Not Fiduciary to Holders of Senior Debt</u>.

Upon any payment or distribution of assets of the Company referred to in this Article XVI, the Trustee and the Holders of Securities of each series shall be entitled to conclusively rely upon an order or decree made by any court of competent jurisdiction in which such dissolution or winding up or liquidation or reorganization or arrangement proceedings are pending or upon a certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors or other Person making such payment or distribution, delivered to the Trustee or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XVI.

In the absence of any such bankruptcy trustee, receiver, assignee or other Person, the Trustee shall be entitled to conclusively rely upon a written notice by a Person representing themselves to be a holder of Senior Debt (or a trustee or representative on behalf of such holder) as evidence that such Person is a holder of such Senior Debt (or is such a trustee or representative). In the event that the Trustee determines, in good faith, that further evidence is required with respect to the right of any Person as a holder of Senior Debt to participate in any payments or distributions pursuant to this Article XVI, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Debt held by such Person, as to the extent to which such Person is entitled to participate in such payment or distribution, and as to other facts pertinent to the rights of such Person under this Article XVI, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt and the Trustee shall not be liable to any holder of Senior Debt if it shall mistakenly in the absence of bad faith pay over or deliver to Holders of Securities, the

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Company or any other Person moneys or assets to which any holder of Senior Debt shall be entitled by virtue of this Article or otherwise.

Section 16.03 <u>Payment Permitted If No Default</u>.

Nothing contained in this Article XVI or elsewhere in this Indenture, or in any of the Securities, shall prevent (a) the Company at any time, except during the pendency of any dissolution, winding up, liquidation or reorganization proceedings referred to in, or under the conditions described in, Section 16.01, from making payments of the principal of (or premium, if any) or interest on the Securities, or (b) the application by the Trustee or any Paying Agent of any moneys deposited with it hereunder to payments of the principal of (or premium, if any) or interest on the Securities if the Trustee or such Paying Agent, as the case may be, did not have the written notice provided for in Section 16.04 by the times referred to therein of any event prohibiting the making of such deposit or exchange, and the Trustee or any Paying Agent shall not be affected by any notice to the contrary received by it on or after such times.

Section 16.04 <u>Trustee Not Charged with Knowledge of Prohibition</u>.

Anything in this Article XVI or elsewhere in this Indenture contained to the contrary notwithstanding, the Trustee shall not at any time be charged with knowledge of the existence of any facts which would prohibit the making of any payment of money to or by the Trustee and shall be entitled conclusively to assume that no such facts exist and that no event specified in Section 16.01 has happened, until a Responsible Officer of the Trustee shall have received at the Corporate Trust Office an Officers' Certificate to that effect or notice in writing to that effect signed by or on behalf of the holder or holders, or their representatives, of Senior Debt who shall have been certified by the Company or otherwise established to the reasonable satisfaction of the Trustee to be such holder or holders or representatives or from any trustee under any indenture pursuant to which such Senior Debt shall be outstanding; *provided*, however, that, if prior to the fifth Business Day preceding the date upon which by the terms hereof any money becomes payable (including, without limitation, the payment of either the principal of or interest on any Security), or in the event of the execution of an instrument pursuant to Section 4.01 acknowledging satisfaction and discharge of this Indenture, then if prior to the second Business Day preceding the date of such execution, a Responsible Officer of the Trustee shall not have so received or any Paying Agent shall not have received with respect to such money the Officers' Certificate or notice provided for in this Section 16.04, then, anything herein contained to the contrary notwithstanding, the Trustee or such Paying Agent shall have full power and authority to receive such money and apply the same to the purpose for which they were received and shall not be affected by the notice to the contrary which may be received by it on or after such date. The Company shall give prompt written notice to the Trustee and to the Paying Agent of any facts which would prohibit the payment of money to or by the Trustee or any Paying Agent.

The Trustee shall be entitled to conclusively rely on the delivery to it of a written notice by a person representing themselves to be a holder of Senior Debt (or a trustee or agent on behalf of such holder) to establish that such notice has been given by a holder of Senior Debt (or a trustee or agent on behalf of any such holder). In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any person as a holder of Senior Debt to participate in any payment or distribution pursuant to this Article, the Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Debt held by such person, the extent to which such person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such person under this Article, and if such evidence is not furnished, the Trustee may defer any payment which it may be required to make for the benefit of such person pursuant to the terms of this Indenture pending judicial determination as to the rights of such person to receive such payment.

Section 16.05 <u>Trustee to Effectuate Subordination</u>.

Each Holder of Securities by such Holder's acceptance thereof authorizes and directs the Trustee on such Holder's behalf to take such action as may be necessary or appropriate to effectuate the subordination as between such Holder and holders of Senior Debt as provided in this Article and appoints the Trustee its attorney-in-fact for any and all such purposes.

Section 16.06 <u>Rights of Trustee as Holder of Senior Debt</u>.

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The Trustee shall be entitled to all the rights set forth in this Article with respect to any Senior Debt which may at the time be held by it, to the same extent as any other holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.07.

Section 16.07 <u>Article Applicable to Paying Agents</u>.

In case at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term "Trustee" as used in this Article shall in such case (unless the context shall otherwise require) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if the Paying Agent were named in this Article in addition to or in place of the Trustee; *provided*, however, that Sections 16.04 and 16.06 shall not apply to the Company or any Affiliate of the Company if the Company or such Affiliate acts as Paying Agent; and *provided, further*, that references to the "Trustee" in Section 16.02 shall not include the paying agent (other than the Trustee) except that a paying agent shall be entitled to rely, to the same extent as the Trustee, on any order or decree made by a court of competent jurisdiction or upon a written notice by a Person representing itself to be a holder of Senior Debt (or a trustee or representative thereof), in each case as set forth in the first paragraph of Section 16.02, if and to the extent that such order, decree or written notice shall have been approved by the Trustee.

Section 16.08 <u>Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior Debt</u>.

No right of any present or future holder of any Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or be otherwise charged with. The holders of Senior Debt may, at any time or from time to time and in their absolute discretion, change the manner, place or terms of payment, change or extend the time of payment of, or renew or alter, any such Senior Debt, or amend or supplement any instrument pursuant to which any such Senior Debt is issued or by which it may be secured, or release any security therefor, or exercise or refrain from exercising any other of their rights under the Senior Debt, including, without limitation, the waiver of default thereunder, all without notice to or assent from the Holders of the Securities or the Trustee and without affecting the obligations of the Company, the Trustee or the Holders of the Securities under this Article.

\* \* \*

This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the day and year first above written.

SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY

By: &nbsp;&nbsp;&nbsp;&nbsp; <u>/s/ Michael Behrens&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

&nbsp;&nbsp;&nbsp;&nbsp;Name: Michael Behrens

&nbsp;&nbsp;&nbsp;&nbsp;Title: VP & Chief Financial Officer

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By: <u>/s/ Glenn G. McKeever&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

&nbsp;&nbsp;&nbsp;&nbsp;Name: Glenn G. McKeever

&nbsp;&nbsp;&nbsp;&nbsp;Title: Agent

[*Signature Page to Indenture*]

## Exhibit 4.6

**EXHIBIT 4.6**

SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

**FIRST SUPPLEMENTAL INDENTURE**

Dated as of September 8, 2025<br>to<br>Indenture dated as of September 8, 2025

6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055

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**<u>**Table of Contents**</u>**

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| | |
|:---|:---|
| ARTICLE I DEFINITIONS | 1 |
| SECTION 1.1 *Generally* | 1 |
| SECTION 1.2 *Definition of Certain Terms* | 1 |
| ARTICLE II GENERAL TERMS OF THE NOTES | 4 |
| SECTION 2.1 *Form* | 4 |
| SECTION 2.2 *Title, Amount and Payment of Principal and Interest* | 5 |
| SECTION 2.3 *Regular Record Date* | 6 |
| SECTION 2.4 *Deferral of Interest* | 6 |
| SECTION 2.5 *Interest Payments and Redemption* | 8 |
| SECTION 2.6 *Calculation Agent* | 8 |
| SECTION 2.7 *Transfer and Exchange* | 8 |
| ARTICLE III REDEMPTION | 9 |
| SECTION 3.1 *Optional Redemption of Notes* | 9 |
| SECTION 3.2 *Redemption Following a Tax Event* | 9 |
| SECTION 3.3 *Redemption Following a Rating Agency Event* | 9 |
| SECTION 3.4 *Calculation of Redemption Price* | 9 |
| SECTION 3.5 *No Sinking Fund; Mandatory Redemption* | 9 |
| ARTICLE IV SUBORDINATION | 10 |
| SECTION 4.1 *Subordination* | 10 |
| ARTICLE V MISCELLANEOUS PROVISIONS | 11 |
| SECTION 5.1 *Ratification of Base Indenture* | 11 |
| SECTION 5.2 *Trustee Not Responsible for Recitals* | 11 |
| SECTION 5.3 *Table of Contents, Headings, etc* | 11 |
| SECTION 5.4 *Counterpart Originals* | 11 |
| SECTION 5.5 *Governing Law* | 12 |

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<u>EXHIBIT</u>

Exhibit A:&nbsp;&nbsp;&nbsp;&nbsp;Form of 6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055

i

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THIS FIRST SUPPLEMENTAL INDENTURE, dated as of September 8, 2025 (the "<u>First Supplemental Indenture</u>"), is between Sierra Pacific Power Company d/b/a NV Energy, a Nevada corporation (the "<u>Company</u>"), and The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee (the "<u>Trustee</u>").

WHEREAS, the Company and the Trustee have executed and delivered an Indenture, dated as of September 8, 2025 (the "<u>Base Indenture</u>" and, as supplemented by this First Supplemental Indenture, the "<u>Indenture</u>"), providing for the issuance by the Company from time to time of its debentures, notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (the "<u>Securities</u>");

WHEREAS, the Company has duly authorized and desires to cause to be established pursuant to the Base Indenture and this First Supplemental Indenture a series of Securities designated as follows: the "6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055" (the "<u>Notes</u>");

WHEREAS, Sections 2.01, 3.01 and 9.01 of the Base Indenture permit the execution of indentures supplemental thereto to establish the form and terms of Securities of any series;

WHEREAS, the Company has requested that the Trustee join in the execution of this First Supplemental Indenture to establish the form and terms of the Notes; and

WHEREAS, all things necessary have been done to make the Notes, when executed and delivered by the Company and authenticated and delivered by the Trustee hereunder and under the Base Indenture and when duly issued by the Company, the valid obligations of the Company, and to make this First Supplemental Indenture a valid agreement of the Company enforceable in accordance with its terms.

NOW, THEREFORE, the Company and the Trustee hereby agree that the following provisions shall supplement the Base Indenture, but solely with respect to the Notes:

**ARTICLE I**

**DEFINITIONS**

SECTION 1.1 *Generally.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Base Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The rules of interpretation set forth in the Base Indenture shall be applied hereto as if set forth in full herein.

SECTION 1.2 *Definition of Certain Terms.*

For all purposes of this First Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the following respective meanings:

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"<u>business day</u>" means, unless otherwise expressly stated, any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions in The City of New York are authorized or obligated by law or executive order to remain closed.

"<u>Calculation Agent</u>" has the meaning given to such term in Section 2.6(a) hereof.

"<u>Capital Stock</u>" means (i) in the case of a corporation or a company, corporate stock or shares; (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

"<u>First Reset Date</u>" means December 15, 2030.

"<u>Five-year U.S. Treasury Rate</u>" means, as of any Reset Interest Determination Date, (i) an interest rate (expressed as a decimal) determined to be the per annum rate equal to the arithmetic mean of the yields to maturity for U.S. treasury securities adjusted to constant maturity with a maturity of five years from the next Reset Date and trading in the public securities markets, for the five consecutive business days immediately prior to the respective Reset Interest Determination Date (or, if fewer than five business days appear, such number of business days appearing) as published in the most recent H.15, or (ii) if there is no such published U.S. Treasury security with a maturity of five years from the next Reset Date and trading in the public securities markets, then the rate will be determined by interpolation between the arithmetic mean of the yields to maturity for each of the two series of U.S. Treasury securities adjusted to constant maturity trading in the public securities markets, (A) one maturing as close as possible to, but earlier than, the Reset Date following the next succeeding Reset Interest Determination Date, and (B) the other maturing as close as possible to, but later than, the Reset Date following the next succeeding Reset Interest Determination Date, in each case for the five consecutive business days immediately prior to the respective Reset Interest Determination Date (or, if fewer than five business days appear, such number of business days appearing) as published in the most recent H.15.

"<u>H.15</u>" means the statistical release designated as such, or any successor publication, published by the Board of Governors of the U.S. Federal Reserve System (or any successor thereto).

"<u>Interest Payment Period</u>" means the semi-annual period from and including an Interest Payment Date to but excluding the next succeeding Interest Payment Date, except for the first Interest Payment Period which shall be the period from and including the Original Issue Date to but excluding December 15, 2025.

"<u>most recent H.15</u>" means the H.15 published closest in time but prior to the close of business on the second business day prior to the applicable Reset Date.

"<u>Optional Deferral Period</u>" has the meaning given to such term in Section 2.4(a) hereof.

"<u>Original Issue Date</u>" means September 8, 2025.

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"<u>Person</u>" means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.

"<u>Rating Agency Event</u>" means, as of any date, a change, clarification or amendment in the methodology published by any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act (or any successor provision thereto), that then publishes a rating for the Company (together with any successor thereto, a "<u>rating agency</u>") in assigning equity credit to securities such as the Notes, (a) as such methodology was in effect on September 4, 2025, or (b) as such methodology was in effect on the date such rating agency first published a rating for the Company, in the case of any rating agency that first publishes a rating for the Company after September 4, 2025 (in the case of either clause (a) or (b), the "<u>current methodology</u>"), that results in (i) any shortening of the length of time for which a particular level of equity credit pertaining to the Notes by such rating agency would have been in effect had the current methodology not been changed or (ii) a lower equity credit (including up to a lesser amount) being assigned by such rating agency to the Notes as of the date of such change, clarification or amendment than the equity credit that would have been assigned to the Notes by such rating agency had the current methodology not been changed.

"<u>Regular Record Date</u>" has the meaning given to such term in Section 2.3 hereof.

"<u>Reset Date</u>" means the First Reset Date and December 15 of every fifth year after 2030.

"<u>Reset Interest Determination Date</u>" means, in respect of any Reset Period, the day falling two business days prior to the first day of such Reset Period.

"<u>Reset Period</u>" means the period from and including the First Reset Date to, but excluding, the next following Reset Date and thereafter each period from and including a Reset Date to, but excluding, the next following Reset Date.

"<u>Senior Debt</u>" means, with respect to the Notes, (i) indebtedness of the Company, whether outstanding at the date of this First Supplemental Indenture or incurred, created or assumed after such date, (a) in respect of money borrowed by the Company (including any financial derivative, hedging or futures contract or similar instrument, to the extent any such item is primarily a financing transaction) and (b) evidenced by debentures, bonds, notes, credit or loan agreements or other similar instruments or agreements issued or entered into by the Company; (ii) all finance lease obligations of the Company; (iii) all obligations of the Company issued or assumed as the deferred purchase price of property, all conditional sale obligations of the Company and all obligations of the Company under any title retention agreement (but excluding, for the avoidance of doubt, trade accounts payable arising in the ordinary course of business and long-term purchase obligations); (iv) all obligations of the Company for the reimbursement of any letter of credit, banker's acceptance, security purchase facility or similar credit transaction; and (v) all obligations of the type referred to in clauses (i) through (iv) above of other Persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise, except for any obligations, instruments or agreements of the type referred to in any of clauses (i) through (v) above that, by the terms of the instruments or agreements creating or evidencing the same or pursuant to which the same is outstanding, are subordinated or equal in right of payment to the Notes.

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"<u>Tax Event</u>" means that the Company has received an opinion of counsel experienced in such matters to the effect that, as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any amendment to, clarification of, or change, including any announced prospective change, in the laws or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an administrative action, which means any judicial decision or any official administrative pronouncement, ruling, regulatory procedure, notice or announcement, including any notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any amendment to, clarification of, or change in the official position or the interpretation of any administrative action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action or judicial decision that differs from the previously generally accepted position, in each case, by any legislative body, court, governmental authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made known; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a threatened challenge asserted in writing in connection with a tax audit of the Company or any of the Company's subsidiaries, or a publicly-known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Notes,

which amendment, clarification or change is effective or the administrative action is taken or judicial decision, interpretation or pronouncement is issued or threatened challenge is asserted or becomes publicly-known after September 4, 2025, there is more than an insubstantial risk that interest payable by the Company on the Notes is not deductible, or within 90 days would not be deductible, in whole or in part, by the Company for United States federal income tax purposes.

**ARTICLE II**

**GENERAL TERMS OF THE NOTES**

SECTION 2.1 *Form.*

The Notes and the Trustee's certificates of authentication shall be substantially in the form of Exhibit A to this First Supplemental Indenture, which is hereby incorporated into this First Supplemental Indenture. The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this First Supplemental Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

The Notes are to be issued only as registered securities without coupons. The Notes shall be issued upon original issuance in book-entry form and represented by one or more Global Notes (the "<u>Global Notes</u>"). Each Global Note shall represent such of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.

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The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Global Notes.

SECTION 2.2 *Title, Amount and Payment of Principal and Interest.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Notes shall be entitled the "6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055." The Trustee shall authenticate and deliver (i) the Notes for original issue on the date hereof (the "<u>Original Notes</u>") in the aggregate principal amount of $450,000,000, and (ii) additional Notes for original issue from time to time after the date hereof in such principal amounts as may be specified in a Company Order, in each case, upon a Company Order for the authentication and delivery thereof and satisfaction of the other provisions of Section 3.03 of the Base Indenture. Such Company Order shall specify the amount of the Notes to be authenticated, the date on which the original issue of Notes is to be authenticated, and the name or names of the initial Holder or Holders. The aggregate principal amount of Notes that may be outstanding at any time may not exceed $450,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in Section 3.06 of the Base Indenture). The Original Notes and any additional Notes issued and authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Securities for all purposes under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Notes shall bear interest (i) from and including the Original Issue Date to, but excluding, the First Reset Date at the rate of 6.200% per annum and (ii) from and including the First Reset Date, during each Reset Period at a rate per annum equal to the Five-year U.S. Treasury Rate as of the most recent Reset Interest Determination Date plus a spread of 2.549%, to be reset on each Reset Date, and shall have a Stated Maturity of December 15, 2055 (the "<u>Maturity Date</u>"). Interest accumulating or payable on the Notes for any Interest Payment Period (or portion thereof) will be calculated on the basis of a 360-day year of twelve 30-day months. Interest on the Notes shall be payable semi-annually in arrears on each June 15 and December 15 (each, an "<u>Interest Payment Date</u>") of each year to Holders of record at the close of business on the immediately preceding Regular Record Date, subject to Section 2.4 hereof. If an Interest Payment Date is not a business day, payment of interest will be made on the next succeeding business day, without any interest, additional interest, or other payment in lieu of interest or additional interest accumulating with respect to this delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Payments of principal of, premium, if any, on, and interest due on the Notes representing Global Notes on any Interest Payment Date or on the Maturity Date will be made available to the Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day that is not a business day, in which case (x) such payments will be made available to the Trustee by 10:00 a.m., New York City time, on the next business day, and (y) for so long as clause (x) is satisfied, no interest shall accrue on the amount of interest due on such Interest Payment Date for the period from and after such Interest Payment Date and the date of payment. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

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SECTION 2.3 *Regular Record Date.*

With respect to each Interest Payment Date, the record date for the Notes shall be June 1 and December 1 (whether or not a business day), as the case may be, next preceding such Interest Payment Date (each, a "<u>Regular Record Date</u>").

SECTION 2.4 *Deferral of Interest*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)So long as no Event of Default with respect to the Notes has occurred and is continuing, the Company may, at its option, defer interest payments on the Notes, from time to time, for one or more deferral periods of up to 20 consecutive Interest Payment Periods (each such deferral period, commencing on the Interest Payment Date on which the first such deferred interest payment otherwise would have been made, an "<u>Optional Deferral Period</u>"), except that no such Optional Deferral Period may extend beyond the Maturity Date or end on a day other than the day immediately preceding an Interest Payment Date. During any Optional Deferral Period, interest on the Notes will continue to accrue at the then-applicable interest rate on the Notes (as reset from time to time on any Reset Date occurring during such Optional Deferral Period in accordance with the terms of the Notes). In addition, during any Optional Deferral Period, interest on the deferred interest ("<u>compound interest</u>") will accrue at the then-applicable interest rate on the Notes (as reset from time to time on any Reset Date occurring during such Optional Deferral Period in accordance with the terms of the Notes), compounded semi-annually, to the extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No interest will be due or payable on the Notes during an Optional Deferral Period, except upon a redemption of any Notes on any Redemption Date during such Optional Deferral Period (in which case, all accrued and unpaid interest (including, to the extent permitted by applicable law, any compound interest) on the Notes to be redeemed to, but excluding, such Redemption Date will be due and payable on such Redemption Date), or unless the principal of and interest on the Notes shall have been declared due and payable as the result of an Event of Default with respect to the Notes (in which case, all accrued and unpaid interest, including, to the extent permitted by applicable law, any compound interest, on the Notes, shall become due and payable). All references in the Notes and, insofar as relates to the Notes, the Indenture to "interest" on the Notes shall be deemed to include any such deferred interest and, to the extent permitted by applicable law, any compound interest, unless otherwise expressly stated or the context otherwise requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Before the end of any Optional Deferral Period that is shorter than 20 consecutive Interest Payment Periods, the Company may elect, at its option, to extend such Optional Deferral Period, so long as the entire Optional Deferral Period does not exceed 20 consecutive Interest Payment Periods or extend beyond the Maturity Date. The Company may also elect, at its option, to shorten the length of any Optional Deferral Period. No Optional Deferral Period (including as extended or shortened) may end on a day other than the day immediately preceding an Interest Payment Date. At the end of any Optional Deferral Period, if all amounts then due on the Notes, including all accrued and unpaid interest thereon (including, without limitation and to the extent permitted by applicable law, any compound interest), are paid, the Company may elect to begin a new Optional Deferral Period; *provided*, *however*, that, without limitation of the foregoing, the Company may not begin a new Optional Deferral Period unless the Company has paid all accrued

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and unpaid interest on the Notes (including, without limitation and to the extent permitted by applicable law, any compound interest) from any previous Optional Deferral Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)During any Optional Deferral Period, the Company (and its subsidiaries, as applicable) shall not do any of the following (subject to the exceptions set forth in clause (e) of this Section 2.4):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)declare or pay any dividends or distributions on any Capital Stock of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)redeem, purchase, acquire or make a liquidation payment with respect to any Capital Stock of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)pay any principal, interest or premium on, or repay, repurchase or redeem, any indebtedness of the Company that ranks equally with or junior to the Notes in right of payment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)make any payments with respect to any guarantees by the Company of any indebtedness if such guarantees rank equally with or junior to the Notes in right of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)However, during an Optional Deferral Period, the Company may (a) declare and pay dividends or distributions payable solely in shares of its common stock (together, for the avoidance of doubt, with cash in lieu of any fractional share) or options, warrants or rights to subscribe for or purchase shares of its common stock, (b) declare and pay any dividend in connection with the implementation of a plan (a "<u>Rights Plan</u>") providing for the issuance by the Company to all holders of its common stock of rights entitling them to subscribe for or purchase its common stock or any class or series of its preferred stock, which rights (1) are deemed to be transferred with such common stock, (2) are not exercisable until the occurrence of a specified event or events and (3) are also issued in respect of future issuances of its common stock, (c) issue any of shares of its Capital Stock under any Rights Plan or redeem or repurchase any rights distributed pursuant to a Rights Plan, (d) reclassify its Capital Stock or exchange or convert one class or series of its Capital Stock for another class or series of its Capital Stock, (e) purchase fractional interests in shares of its Capital Stock pursuant to the conversion or exchange provisions of such Capital Stock or the security being converted or exchanged, (f) purchase, acquire or withhold shares of its common stock related to the issuance of its common stock or rights under any dividend reinvestment plan or related to any of its benefit plans for its directors, officers, employees, consultants or advisors, including any employment contract, and (g) for the avoidance of doubt, convert convertible Capital Stock of the Company into other Capital Stock of the Company in accordance with the terms of such convertible Capital Stock (together, for the avoidance of doubt, with cash in lieu of any fractional share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Company will give the Holders of the Notes and the Trustee written notice of its election of, or any shortening or extension of, an Optional Deferral Period at least 10 business days prior to the earlier of (i) the next succeeding Interest Payment Date or (ii) the date upon which the Company is required to give notice to any applicable self-regulatory organization or to Holders of the Notes of the next succeeding Interest Payment Date or the record date therefor. The record date for the payment of deferred interest and, to the extent permitted by applicable law, any compound interest payable on the Interest Payment Date immediately following the last day of an

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Optional Deferral Period will be the Regular Record Date with respect to such Interest Payment Date.

SECTION 2.5 *Interest Payments and Redemption.*

Notwithstanding any provision of Article III of this First Supplemental Indenture to the contrary, installments of interest on the Notes that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date for the Notes will be payable on that Interest Payment Date to the registered Holders thereof as of the close of business on the Regular Record Date immediately preceding such Interest Payment Date, according to the terms of the Notes and the Indenture, except that, if the Redemption Date for any Notes falls on any day during an Optional Deferral Period, accrued and unpaid interest (including, to the extent permitted by applicable law, any compound interest) on such Notes will be paid on such Redemption Date to the Persons entitled to receive the Redemption Price of such Notes. The Interest Payment Date falling immediately after the last day of an Optional Deferral Period shall not be deemed to fall on a day during such Optional Deferral Period.

SECTION 2.6 *Calculation Agent.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Unless the Company has validly called all of the outstanding Notes for redemption on a Redemption Date occurring prior to the First Reset Date, the Company will appoint a calculation agent (the "<u>Calculation Agent</u>") for the Notes prior to the Reset Interest Determination Date immediately preceding the First Reset Date; *provided* that, if the Company has called all of the outstanding Notes for redemption on a Redemption Date occurring prior to the First Reset Date but the Company does not redeem all of the outstanding Notes on such Redemption Date, the Company will appoint a Calculation Agent for the Notes as promptly as practicable after such proposed Redemption Date. The Company may terminate any such appointment and may appoint a successor Calculation Agent at any time and from time to time (so long as there shall always be a Calculation Agent in respect of the Securities of this series when so required). The Company may appoint itself or an affiliate of the Company as Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The applicable interest rate for each Reset Period will be determined by the Calculation Agent as of the applicable Reset Interest Determination Date. Promptly upon such determination, the Calculation Agent will notify the Company of the interest rate for the Reset Period and the Company will promptly notify, or cause the Calculation Agent to promptly notify, the Trustee and each Paying Agent for the Notes of such interest rate. The Calculation Agent's determination of any interest rate, and its calculation of the amount of interest for any Interest Payment Period beginning on or after the First Reset Date, will be on file at the Company's principal offices, will be made available to any Holder or beneficial owner of the Notes upon request and will be final and binding in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Trustee shall be entitled to conclusively rely on any determination made by the Calculation Agent. In no event shall the Trustee be the Calculation Agent, nor shall the Trustee have any liability for such actions taken at the Calculation Agent's direction or otherwise in connection with respect to any such determination by the Calculation Agent.

SECTION 2.7 *Transfer and Exchange.*

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The transfer and exchange of Global Notes or beneficial interests therein shall be effected through the Depositary, in accordance with Section 3.05 of the Base Indenture and Article II of this First Supplemental Indenture (including the restrictions on transfer set forth therein and herein) and the rules and procedures of the Depositary therefor, which shall include restrictions on transfer comparable to those set forth therein and herein to the extent required by the Securities Act of 1933, as amended.

 **ARTICLE III**

**REDEMPTION**

SECTION 3.1 *Optional Redemption of Notes.*

The Company may at its option redeem the Notes, in whole or from time to time in part, (i) on any day in the period commencing on the date falling 90 days prior to the First Reset Date and ending on and including the First Reset Date and (ii) after the First Reset Date, on any Interest Payment Date, at a Redemption Price in cash equal to 100% of the principal amount of the Notes to be redeemed, *plus* (subject to Section 2.5 of this First Supplemental Indenture) accrued and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date.

SECTION 3.2 *Redemption Following a Tax Event.*

The Company may at its option redeem the Notes, in whole but not in part, for a period of 120 days following the occurrence of a Tax Event at a Redemption Price in cash equal to 100% of the principal amount of the Notes, *plus* (subject to Section 2.5 of this First Supplemental Indenture) accrued and unpaid interest on the Notes to, but excluding, the Redemption Date.

SECTION 3.3 *Redemption Following a Rating Agency Event.*

The Company may at its option redeem the Notes, in whole but not in part, for a period of 120 days following the occurrence of a Rating Agency Event at a Redemption Price in cash equal to 102% of the principal amount of the Notes, *plus* (subject to Section 2.5 of this First Supplemental Indenture) accrued and unpaid interest on the Notes to, but excluding, the Redemption Date.

SECTION 3.4 *Calculation of Redemption Price.*

The Redemption Price will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 3.5 *No Sinking Fund; Mandatory Redemption.*

The Company is not required to make any mandatory redemption, mandatory repurchase or sinking fund payments with respect to the Notes or to repurchase the Notes at the option of Holders.

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**ARTICLE IV**

**SUBORDINATION**

SECTION 4.1 *Subordination.*

The following shall apply only to the Notes and not to any other series of Securities issued under the Indenture.

Pursuant to Section 3.01 of the Indenture, the definition of "<u>Senior Debt</u>" set forth in the Base Indenture is hereby, solely with respect the Notes, replaced with the definition of "Senior Debt" set forth in this First Supplemental Indenture.

The Notes will be subordinated in right of payment to the prior payment in full of all Senior Debt. Accordingly, upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any payment by, or distribution of the assets of, the Company upon its dissolution, winding-up, liquidation or reorganization, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a failure to pay any interest, principal or other monetary amounts due on any of the Senior Debt when due and continuance of that default beyond any applicable grace period, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)acceleration of the maturity of any Senior Debt as a result of a default,

the Holders of all Senior Debt will be entitled to receive, in the case of clause (a) immediately above, payment of all amounts due or to become due on all Senior Debt, or in the case of clauses (b) and (c) immediately above, payment of all amounts due on all Senior Debt, before the Holders of the Notes are entitled to receive any payment. So long as any of the events in clauses (a), (b), or (c) immediately above has occurred and is continuing, any amounts payable or assets distributable on the Notes will instead be paid or distributed, as the case may be, directly to the Holders of Senior Debt to the extent necessary to pay, in the case of clause (a) immediately above, all amounts due or to become due upon all such Senior Debt, or, in the case of clauses (b) and (c) immediately above, all amounts due on all such Senior Debt, and, if any such payment or distribution is received by the Trustee under the Indenture or the Holders of any of the Notes before all Senior Debt due and to become due or due, as applicable, is paid, such payment or distribution must be paid over to the Holders of the unpaid Senior Debt. Subject to paying the Senior Debt due and to become due in the case of clause (a) immediately above or the Senior Debt due in the case of clauses (b) and (c) immediately above, the Holders of the Notes will be subrogated to the rights of the Holders of the Senior Debt to receive payments applicable to the Senior Debt until the Notes are paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained in this Article IV or this First Supplemental Indenture to the contrary, the rights, privileges, protections, immunities and benefits given to the Trustee in Article XVI of the Base Indenture (without giving effect to this Article IV) and elsewhere in the Indenture shall remain in full force and effect.

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**ARTICLE V<br>MISCELLANEOUS PROVISIONS** 

SECTION 5.1 *Ratification of Base Indenture.*

The Base Indenture, as supplemented by this First Supplemental Indenture, is in all respects ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided.

SECTION 5.2 *Trustee Not Responsible for Recitals.*

The recitals contained herein and in the Notes, except with respect to the Trustee's certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture or the Notes.

SECTION 5.3 *Table of Contents, Headings, etc.*

The table of contents and headings of the Articles and Sections of this First Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

SECTION 5.4 *Counterpart Originals.*

This First Supplemental Indenture may be executed manually, by fascimile or by electronic signature in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this First Supplemental Indenture and of signature pages by fascimile, email or other electronic format (i.e., "pdf," "tif" or "jpg") transmission or other electronically-imaged signature (including, without limitation, DocuSign or Adobe Sign) or transmission shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto transmitted by fascimile, email or other electronic format (i.e., "pdf," "tif" or "jpg") (including, without limitation, DocuSign or Adobe Sign) shall be deemed to be their original signatures for all purposes. Notwithstanding anything to the contrary contained herein or in the Notes, the words "execute," "execution," "signed" and "signature" and words of similar import used in or related to any document to be signed in connection with this First Supplemental Indenture, the Notes or any of the transactions contemplated hereby or thereby (including amendments, waivers, consents and other modifications) shall be deemed to include electronic signatures and the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature in ink or the use of a paper-based recordkeeping system, as applicable, to the fullest extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National

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Commerce Act, the New York State Electronic Signatures and Records Act and any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 5.5 *Governing Law.*

THIS FIRST SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

The Company irrevocably consents and agrees, for the benefit of the Holders from time to time of the Notes and the Trustee, Security Registrar and Paying Agent, that any legal action, suit or proceeding against it with respect to its obligations, liabilities or any other matter arising out of or in connection with the Indenture or the Notes may be brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and, until amounts due and to become due in respect of the Notes have been paid, hereby irrevocably consents and submits to the exclusive jurisdiction of each such court in personam, generally and unconditionally with respect to any action, suit or proceeding for themselves in respect of their respective properties, assets and revenues.

The Company irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which they may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with the Indenture or the Notes brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

(*Signature Page Follows*)

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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first written above.

SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY

By: <u>/s/ Michael Behrens&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Michael Behrens

Title: VP & Chief Financial Officer

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

&nbsp;&nbsp;&nbsp;&nbsp;

By: <u>/s/ Glenn G. McKeever&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:&nbsp;&nbsp;&nbsp;&nbsp;Glenn G. McKeever

Title:&nbsp;&nbsp;&nbsp;&nbsp;Agent

[*Signature Page to First Supplemental Indenture*]

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***Exhibit A***

**FORM OF NOTE** 

[FACE OF SECURITY]

[For inclusion in Global Securities—] THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

[For inclusion in Global Securities—] UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY

6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055

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| | |
|:---|:---|
| No. ___  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
|  | CUSIP No. 826418 BR5 <br>ISIN No. US826418BR51 |

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Sierra Pacific Power Company d/b/a NV Energy, a corporation duly organized and existing under the laws of the State of Nevada (herein called the "<u>Company</u>," which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to ____________________, or registered assigns, the principal sum of ____________________ Dollars ($____________________) on December 15, 2055 (the "<u>Maturity Date</u>"), and to pay interest thereon from and including September 8, 2025 (the "<u>Original Issue Date</u>") or from the most recent date to which interest has been paid or duly provided for, semi-annually in arrears on June 15 and December 15 in each year (each, an "<u>Interest Payment Date</u>"), commencing December 15, 2025 (subject to the right of the Company to defer the payment of interest, but not beyond the Maturity Date, in accordance with the provisions set forth below), and on the Maturity Date (i) from and including the Original Issue Date to but excluding December

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15, 2030, at the rate of 6.200% per annum and (ii) from and including December 15, 2030, during each Reset Period at a rate per annum equal to the Five-year U.S. Treasury Rate as of the most recent Reset Interest Determination Date plus a spread of 2.549%, to be reset on each Reset Date, until the principal hereof is paid or made available for payment, *provided* that any principal hereof or (to the extent that the payment of such interest shall be legally enforceable) premium, if any, or interest hereon which is not paid when due shall bear interest at the then-applicable interest rate on the Securities (as defined on the reverse hereof) of this series (as reset from time to time in accordance with the terms of the Securities of this series) from the respective dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. Interest on this Security shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 <br>SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY<br>By: Name: Title: <br> Attest:<br>By: Name: <br>Title:

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee<br>By: Authorized Signatory <br> Dated:

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[REVERSE OF SECURITY]

**SIERRA PACIFIC POWER COMPANY D/B/A NV ENERGY**

**<u>6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055</u>**

This Security is issued in respect of a series of Securities of an initial aggregate principal amount of $450,000,000 designated as the 6.200% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, SPPC JSN Series 2025A, due 2055 of the Company (the "<u>Securities</u>") and is governed by the Indenture dated as of September 8, 2025 (the "<u>Base Indenture</u>"), by and between the Company, as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee (the "<u>Trustee</u>"), as supplemented by the First Supplemental Indenture dated as of September 8, 2025 (the "<u>First Supplemental Indenture</u>", and together with the Base Indenture, the "<u>Indenture</u>"), each duly executed by the Company and the Trustee. The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.

1.&nbsp;&nbsp;&nbsp;&nbsp;*Interest*.

The Company promises to pay interest on the principal amount of this Security in accordance with the provisions hereof and of the Indenture. Interest on the Security shall be computed on the basis of a 360-day year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the June 1 or December 1 (whether or not a Business Day (as defined in the Indenture)), as the case may be, immediately preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for on any Interest Payment Date will forthwith cease to be payable to the Holder on such Regular Record Date by virtue of having been such Holder and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

So long as no Event of Default with respect to the Securities of this series has occurred and is continuing, the Company may, at its option, defer interest payments on the Securities of this series, from time to time, as set forth in Section 2.4 of the First Supplemental Indenture.

2. &nbsp;&nbsp;&nbsp;&nbsp;*Method of Payment.*

Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency of the Company maintained for that purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; *provided*, *however*, that at the option of the Company payment of

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interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of the Securities (as set forth in Section 3.05 of the Base Indenture) or by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

3.&nbsp;&nbsp;&nbsp;&nbsp;*Paying Agent and Security Registrar*.

Initially, The Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Security Registrar. The Company may change any Paying Agent or Security Registrar at any time upon notice to the Trustee and the Holders. The Company may act as Paying Agent.

4. &nbsp;&nbsp;&nbsp;&nbsp;*Indenture.*

This Security is one of a duly authorized issue of Securities of the Company issued and to be issued in one or more series under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Base Indenture, those made part of the Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms stated in the First Supplemental Indenture. The Securities are subject to all such terms, and Holders of Securities are referred to the Base Indenture, the First Supplemental Indenture and the TIA for a statement of them. The Securities of this series are general unsecured obligations of the Company limited to an initial aggregate principal amount of $450,000,000; *provided, however*, that the authorized aggregate principal amount of such series may be increased from time to time as provided in the First Supplemental Indenture.

5.*&nbsp;&nbsp;&nbsp;&nbsp;Optional Redemption of Securities*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company may at its option redeem the Securities, in whole or from time to time in part, (i) on any day in the period commencing on the date falling 90 days prior to the First Reset Date and ending on and including the First Reset Date and (ii) after the First Reset Date, on any applicable Interest Payment Date at a Redemption Price in cash equal to 100% of the principal amount of the Securities to be redeemed, plus (subject to Section 2.5 of the First Supplemental Indenture) accrued and unpaid interest on the Securities to be redeemed to, but excluding, the Redemption Date*.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*&nbsp;&nbsp;&nbsp;&nbsp;*The Company may at its option redeem the Securities, in whole but not in part, for a period of 120 days following the occurrence of a Tax Event at a Redemption Price in cash equal to 100% of the principal amount of the Securities, plus (subject to Section 2.5 of the First Supplemental Indenture) accrued and unpaid interest on the Securities to, but excluding, the Redemption Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*&nbsp;&nbsp;&nbsp;&nbsp;*The Company may at its option redeem the Securities, in whole but not in part, for a period of 120 days following the occurrence of a Rating Agency Event at a Redemption Price in cash equal to 102% of the principal amount of the Securities, plus (subject to Section 2.5 of the First Supplemental Indenture) accrued and unpaid interest on the Securities to, but excluding, the Redemption Date.

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*6.&nbsp;&nbsp;&nbsp;&nbsp;No Sinking Fund; Mandatory Redemption*.

The Company is not required to make any mandatory redemption, mandatory repurchase or sinking fund payments with respect to the Securities or to repurchase the Securities at the option of Holders.

7.*&nbsp;&nbsp;&nbsp;&nbsp;Denominations; Transfer; Exchange.*

Securities in denominations larger than $2,000 in principal amount may be redeemed in part but only in integral multiples of $1,000.

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the register of the Securities (as set forth in Section 3.05 of the Base Indenture), upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

8.&nbsp;&nbsp;&nbsp;&nbsp;*Person Deemed Owners.*

The registered Holder of a Security may be treated as the owner of it for all purposes.

9.&nbsp;&nbsp;&nbsp;&nbsp;*Amendment; Supplement; Waiver.*

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the securities of all series affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the securities of all series at the time outstanding affected thereby (voting as one class). The Indenture contains provisions permitting the Holders of not less than a majority in principal amount of the securities of all series at the time outstanding with respect to which a default under the Indenture shall have occurred and be continuing (voting as one class), on behalf of the Holders of the securities of all such series, to waive, with certain exceptions, such past default with respect to all such series and its consequences. The Indenture also permits the Holders of not less than a majority in principal amount of the securities of each series at the time outstanding, on behalf of the Holders of all

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securities of such series, to waive compliance by the Company with certain provisions of the Indenture. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 33% in principal amount of the Securities of this series at the time outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

10.&nbsp;&nbsp;&nbsp;&nbsp;*Event of Default; Defeasance.*

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case, upon compliance with certain conditions set forth in the Indenture.

11.&nbsp;&nbsp;&nbsp;&nbsp;*Authentication*.

&nbsp;&nbsp;&nbsp;&nbsp;This Security may be signed by the Company by manual or by pdf or other electronically-imaged (including, without limitation, DocuSign or Adobe Sign) signature and this Security so executed shall be deemed to have been duly and validly executed and be valid and effective as a manually executed Security. Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual or by pdf or other electronically-imaged (including, without limitation, DocuSign or Adobe Sign) signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

12.&nbsp;&nbsp;&nbsp;&nbsp;*Abbreviations and Defined Terms*.

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

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13.&nbsp;&nbsp;&nbsp;&nbsp;*CUSIP Numbers*.

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

14.&nbsp;&nbsp;&nbsp;&nbsp;*Redemption Procedures; Redemption Price.*

In the case of a redemption of Securities, notice of redemption will be in writing and mailed first-class postage-prepaid not less than 10 days nor more than 60 days prior to the Redemption Date to each Holder of the Securities to be redeemed at the Holder's registered address; *provided*, *however*, that such notice need not state the dollar amount of the Redemption Price if such dollar amount has not been determined as of the date such notice is being given to the Holders of the Securities being redeemed. If money sufficient to pay the Redemption Price of all the Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent or the Trustee on or prior to the Redemption Date, from and after such Redemption Date such Securities or portions thereof shall cease to bear interest.

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

The Redemption Price will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

15*.&nbsp;&nbsp;&nbsp;&nbsp;Absolute Obligation.*

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

16. &nbsp;&nbsp;&nbsp;&nbsp;*No Recourse.* 

No director, officer, employee, limited partner or member, as such, of the Company or the General Partner shall have any personal liability in respect of the obligations of the Company under the Securities or the Indenture by reason of his, her or its status. Each Holder, by accepting the Securities, waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities.

17.&nbsp;&nbsp;&nbsp;&nbsp;*Governing Law.*

This Security shall be construed in accordance with and governed by the laws of the State of New York.

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18.&nbsp;&nbsp;&nbsp;&nbsp;*Subordination.*

The indebtedness represented by the Securities of this series is, to the extent and in a manner set forth in the Indenture, expressly subordinated in right of payment to the prior payment in full of all Senior Debt, as defined in the Indenture with respect to this series, and this Security is issued subject to such provisions, and each Holder of this Security, by acceptance thereof, agrees to and shall be bound by such provisions and authorizes and directs the Trustee on his, her or its behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in the Indenture and appoints the Trustee his, her or its attorney-in-fact, as the case may be, for any and all such purposes.

19.&nbsp;&nbsp;&nbsp;&nbsp;*Tax Treatment*.

The Holder (and beneficial owner of this Security), by accepting this Security, acknowledges and affirms that it intends that the Security constitute indebtedness of the Company and will treat the Security as indebtedness of the Company for United States federal, state and local income tax purposes.

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**ABBREVIATIONS**

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

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| | |
|:---|:---|
| TEN COM - as tenants in common | U/G/M/A - |
| | (Cust.) |
| TEN ENT - as tenants by entireties | Custodian for: |
| | (Minor) |
| JT TEN - as joint tenants with right of survivorship and not as tenants in common | Under Uniform Gifts to Minors Act of |
| | (State) |

---

Additional abbreviations may also be used though not in the above list.

**ASSIGNMENT** 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Please print or type name and address including postal zip code of assignee:

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to transfer said Security on the books of the Company, with full power of substitution in the premises.

Dated&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;Registered Holder&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

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**SCHEDULE OF INCREASES OR DECREASES <br>IN GLOBAL SECURITY\*** 

The following increases or decreases in this Global Security have been made:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Decrease or Decrease in Principal Amount of this Global Security** | **Amount of Decrease in Principal Amount of this Global Security** | **Amount of Increase in Principal Amount of this Global Security** | **Principal Amount of this Global Security Following Such Decrease (or Increase)** | **Signature of Authorized Officer of Trustee or Depositary** |

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\*&nbsp;&nbsp;&nbsp;&nbsp;To be included in a Global Security.

## Exhibit 15.1

**EXHIBIT 15.1**

October 31, 2025

To the Board of Directors and Shareholders of

Berkshire Hathaway Energy Company

1615 Locust St.

Des Moines, Iowa 50309

We are aware that our report dated October 31, 2025, on our review of the interim financial information of Berkshire Hathaway Energy Company appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-276321 on Form S-8.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

## Exhibit 15.2

**EXHIBIT 15.2**

October 31, 2025

The Board of Directors and Shareholder of

PacifiCorp

825 N.E. Multnomah Street

Portland, Oregon 97232

We are aware that our report dated October 31, 2025, on our review of the interim financial information of PacifiCorp appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-281019 on Form S-3.

/s/ Deloitte & Touche LLP

Portland, Oregon

## Exhibit 15.3

**EXHIBIT 15.3**

October 31, 2025

To the Board of Directors and Shareholder of

MidAmerican Energy Company

1615 Locust St.

Des Moines, Iowa 50309

We are aware that our report dated October 31, 2025, on our review of the interim financial information of MidAmerican Energy Company appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-291012 on Form S-3.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

## Exhibit 15.4

**EXHIBIT 15.4**

October 31, 2025

To the Board of Directors and Shareholder of

Nevada Power Company

6226 West Sahara Avenue

**Las Vegas**, Nevada 89146

We are aware that our report dated October 31, 2025, on our review of the interim financial information of Nevada Power Company appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-283731 on Form S-3.

/s/ Deloitte & Touche LLP

Las Vegas, Nevada

## Exhibit 15.5

**EXHIBIT 15.5**

October 31, 2025

To the Board of Directors and Shareholder of

Sierra Pacific Power Company

**6100 Neil Road**

**Reno**, Nevada 89511

We are aware that our report dated October 31, 2025, on our review of the interim financial information of Sierra Pacific Power Company appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-285816 on Form S-3.

/s/ Deloitte & Touche LLP

Las Vegas, Nevada

## Exhibit 15.6

**EXHIBIT 15.6**

October 31, 2025

The Board of Directors of

Eastern Energy Gas Holdings, LLC

10700 Energy Way

Glen Allen, Virginia 23060

We are aware that our report dated October 31, 2025, on our review of the interim financial information of Eastern Energy Gas Holdings, LLC appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in Registration Statement No. 333-276072 on Form S-3.

/s/ Deloitte & Touche LLP

Richmond, Virginia

## Exhibit 31.1

**EXHIBIT 31.1** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott W. Thon, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Berkshire Hathaway Energy Company;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott W. Thon</u> |
| | Scott W. Thon |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Charles C. Chang, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Berkshire Hathaway Energy Company;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Charles C. Chang</u> |
| | Charles C. Chang |
| | Senior Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 31.3

**EXHIBIT 31.3** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Cindy A. Crane, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of PacifiCorp;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Cindy A. Crane</u> |
| | Cindy A. Crane |
| | Chair of the Board of Directors and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.4

**EXHIBIT 31.4** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Nikki L. Kobliha, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of PacifiCorp;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Nikki L. Kobliha</u> |
| | Nikki L. Kobliha |
| | Senior Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 31.5

**EXHIBIT 31.5**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Kelcey A. Brown, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of MidAmerican Energy Company;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Kelcey A. Brown</u> |
| | Kelcey A. Brown |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.6

**EXHIBIT 31.6**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Blake M. Groen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of MidAmerican Energy Company;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Blake M. Groen</u> |
| | Blake M. Groen |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 31.7

**EXHIBIT 31.7**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Kelcey A. Brown, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of MidAmerican Funding, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Kelcey A. Brown</u> |
| | Kelcey A. Brown |
| | President |
| | (principal executive officer) |

---

## Exhibit 31.8

**EXHIBIT 31.8**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Blake M. Groen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of MidAmerican Funding, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Blake M. Groen</u> |
| | Blake M. Groen |
| | Vice President and Controller |
| | (principal financial officer) |

---

## Exhibit 31.9

**EXHIBIT 31.9**

 **CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Brandon M. Barkhuff, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Nevada Power Company (dba NV Energy);

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Brandon M. Barkhuff</u> |
| | Brandon M. Barkhuff |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.10

**EXHIBIT 31.10**

 **CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Michael J. Behrens, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Nevada Power Company (dba NV Energy);

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Michael J. Behrens</u> |
| | Michael J. Behrens |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 31.11

**EXHIBIT 31.11**

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Brandon M. Barkhuff, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Sierra Pacific Power Company (dba NV Energy);

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Brandon M. Barkhuff</u> |
| | Brandon M. Barkhuff |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.12

**EXHIBIT 31.12** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Michael J. Behrens, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Sierra Pacific Power Company (dba NV Energy);

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Michael J. Behrens</u> |
| | Michael J. Behrens |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 31.13

**EXHIBIT 31.13**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Paul E. Ruppert, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Eastern Energy Gas Holdings, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Paul E. Ruppert</u> |
| | Paul E. Ruppert |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 31.14

**EXHIBIT 31.14**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott C. Miller, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Eastern Energy Gas Holdings, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott C. Miller</u> |
| | Scott C. Miller |
| | Vice President, Chief Financial Officer and Treasurer |
| | (principal financial officer) |

---

## Exhibit 31.15

**EXHIBIT 31.15** 

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Paul E. Ruppert, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Eastern Gas Transmission and Storage, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Paul E. Ruppert</u> |
| | Paul E. Ruppert |
| | President and Chair of the Board of Directors |
| | (principal executive officer) |

---

## Exhibit 31.16

**EXHIBIT 31.16**

**CERTIFICATION PURSUANT TO** 

**SECTION 302 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott C. Miller, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Eastern Gas Transmission and Storage, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott C. Miller</u> |
| | Scott C. Miller |
| | Vice President, Chief Financial Officer and Treasurer |
| | (principal financial officer and accounting officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott W. Thon, President and Chief Executive Officer of Berkshire Hathaway Energy Company (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott W. Thon</u> |
| | Scott W. Thon |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Charles C. Chang, Senior Vice President and Chief Financial Officer of Berkshire Hathaway Energy Company (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Charles C. Chang</u> |
| | Charles C. Chang |
| | Senior Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 32.3

**EXHIBIT 32.3** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Cindy A. Crane, Chair of the Board of Directors and Chief Executive Officer of PacifiCorp, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of PacifiCorp for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PacifiCorp.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Cindy A. Crane</u> |
| | Cindy A. Crane |
| | Chair of the Board of Directors and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.4

**EXHIBIT 32.4** 

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Nikki L. Kobliha, Senior Vice President and Chief Financial Officer of PacifiCorp, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of PacifiCorp for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PacifiCorp.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Nikki L. Kobliha</u> |
| | Nikki L. Kobliha |
| | Senior Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 32.5

**EXHIBIT 32.5**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Kelcey A. Brown, President and Chief Executive Officer of MidAmerican Energy Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of MidAmerican Energy Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of MidAmerican Energy Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Kelcey A. Brown</u> |
| | Kelcey A. Brown |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.6

**EXHIBIT 32.6**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Blake M. Groen, Vice President and Chief Financial Officer of MidAmerican Energy Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of MidAmerican Energy Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of MidAmerican Energy Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Blake M. Groen</u> |
| | Blake M. Groen |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 32.7

**EXHIBIT 32.7**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Kelcey A. Brown, President of MidAmerican Funding, LLC, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of MidAmerican Funding, LLC for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of MidAmerican Funding, LLC.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Kelcey A. Brown</u> |
| | Kelcey A. Brown |
| | President |
| | (principal executive officer) |

---

## Exhibit 32.8

**EXHIBIT 32.8**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Blake M. Groen, Vice President and Controller of MidAmerican Funding, LLC, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of MidAmerican Funding, LLC for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of MidAmerican Funding, LLC.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Blake M. Groen</u> |
| | Blake M. Groen |
| | Vice President and Controller |
| | (principal financial officer) |

---

## Exhibit 32.9

**EXHIBIT 32.9**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Brandon M. Barkhuff, President and Chief Executive Officer of Nevada Power Company (dba NV Energy), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Nevada Power Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Nevada Power Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Brandon M. Barkhuff</u> |
| | Brandon M. Barkhuff |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.10

**EXHIBIT 32.10**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Michael J. Behrens, Vice President and Chief Financial Officer of Nevada Power Company (dba NV Energy), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Nevada Power Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Nevada Power Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Michael J. Behrens</u> |
| | Michael J. Behrens |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 32.11

**EXHIBIT 32.11**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Brandon M. Barkhuff, President and Chief Executive Officer of Sierra Pacific Power Company (dba NV Energy), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Sierra Pacific Power Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Sierra Pacific Power Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Brandon M. Barkhuff</u> |
| | Brandon M. Barkhuff |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.12

**EXHIBIT 32.12**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Michael J. Behrens, Vice President and Chief Financial Officer of Sierra Pacific Power Company (dba NV Energy), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Sierra Pacific Power Company for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Sierra Pacific Power Company.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Michael J. Behrens</u> |
| | Michael J. Behrens |
| | Vice President and Chief Financial Officer |
| | (principal financial officer) |

---

## Exhibit 32.13

**EXHIBIT 32.13**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Paul E. Ruppert, President and Chief Executive Officer of Eastern Energy Gas Holdings, LLC, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Eastern Energy Gas Holdings, LLC for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Eastern Energy Gas Holdings, LLC.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Paul E. Ruppert</u> |
| | Paul E. Ruppert |
| | President and Chief Executive Officer |
| | (principal executive officer) |

---

## Exhibit 32.14

**EXHIBIT 32.14**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott C. Miller, Vice President, Chief Financial Officer and Treasurer of Eastern Energy Gas Holdings, LLC, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Eastern Energy Gas Holdings, LLC for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Eastern Energy Gas Holdings, LLC.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott C. Miller</u> |
| | Scott C. Miller |
| | Vice President, Chief Financial Officer and Treasurer |
| | (principal financial officer) |

---

## Exhibit 32.15

**EXHIBIT 32.15**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Paul E. Ruppert, President and Chair of the Board of Directors of Eastern Gas Transmission and Storage, Inc., certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Eastern Gas Transmission and Storage, Inc. for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Eastern Gas Transmission and Storage, Inc.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Paul E. Ruppert</u> |
| | Paul E. Ruppert |
| | President and Chair of the Board of Directors |
| | (principal executive officer) |

---

## Exhibit 32.16

**EXHIBIT 32.16**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE** 

**SARBANES-OXLEY ACT OF 2002**

I, Scott C. Miller, Vice President, Chief Financial Officer and Treasurer of Eastern Gas Transmission and Storage, Inc., certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of Eastern Gas Transmission and Storage, Inc. for the quarterly period ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Eastern Gas Transmission and Storage, Inc.

---

| | |
|:---|:---|
| Date: October 31, 2025 | <u>/s/ Scott C. Miller</u> |
| | Scott C. Miller |
| | Vice President, Chief Financial Officer and Treasurer |
| | (principal financial and accounting officer) |

---

## Ex-95

**EXHIBIT 95**

**MINE SAFETY VIOLATIONS AND OTHER LEGAL MATTER DISCLOSURES**

**PURSUANT TO SECTION 1503(a) OF THE DODD-FRANK WALL STREET**

**REFORM AND CONSUMER PROTECTION ACT**

PacifiCorp and its subsidiaries operate certain coal mines and coal processing facilities (collectively, the "mining facilities") that are regulated by the Federal Mine Safety and Health Administration ("MSHA") under the Federal Mine Safety and Health Act of 1977 (the "Mine Safety Act"). MSHA inspects PacifiCorp's mining facilities on a regular basis. The total number of reportable Mine Safety Act citations, orders, assessments and legal actions for the three-month period ended September 30, 2025, are summarized in the table below and are subject to contest and appeal. The severity and assessment of penalties may be reduced or, in some cases, dismissed through the contest and appeal process. Amounts are reported regardless of whether PacifiCorp has challenged or appealed the matter. Mines that are closed or idled are not included in the information below. There were no mining-related fatalities during the three-month period ended September 30, 2025. PacifiCorp has not received any notice of a pattern, or notice of the potential to have a pattern, of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards under Section 104(e) of the Mine Safety Act during the three-month period ended September 30, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Mine Safety Act** | **Mine Safety Act** | **Mine Safety Act** | **Mine Safety Act** | **Mine Safety Act** | | **Legal Actions** | **Legal Actions** | **Legal Actions** |
|<br><br><br>**Mining Facilities** |<br>**Section 104**<br>**Significant**<br>**and**<br>**Substantial**<br>**Citations**<sup>(1)</sup> |<br><br>**Section**<br>**104(b)**<br>**Orders**<sup>(2)</sup> |<br>**Section**<br>**104(d)**<br>**Citations/**<br>**Orders**<sup>(3)</sup> |<br><br>**Section**<br>**110(b)(2)**<br>**Violations**<sup>(4)</sup> |<br>**Section**<br>**107(a)**<br>**Imminent**<br>**Danger**<br>**Orders**<sup>(5)</sup> |<br>**Total**<br>**Value of**<br>**Proposed**<br>**MSHA**<br>**Assessments**<br>**(in thousands)** |<br>**Pending**<br>**as of Last**<br>**Day of**<br>**Period**<sup>(6)</sup> |<br><br>**Instituted**<br>**During**<br>**Period** |<br><br>**Resolved**<br>**During**<br>**Period** |
| Bridger (surface) | 1 |  |  |  |  | $— |  |  |  |
| Wyodak Coal Crushing Facility |  |  |  |  |  |  |  |  |  |

---

(1)Citations for alleged violations of mandatory health and safety standards that could significantly or substantially contribute to the cause and effect of a safety or health hazard under Section 104 of the Mine Safety Act.

(2)For alleged failure to totally abate the subject matter of a Mine Safety Act Section 104(a) citation within the period specified in the citation.

(3)For alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mandatory health or safety standard.

(4)For alleged flagrant violations (i.e., reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury).

(5)For the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated.

(6)For the existence of any proposed penalties under Subparts B-H of the Federal Mine Safety and Health Review Commission's procedural rules. The pending legal actions are not exclusive to citations, notices, orders and penalties assessed by the MSHA during the reporting period.

<br>