Commitments and Contingencies (MEC) (MidAmerican Energy Company and Subsidiaries [Member])

12 Months Ended

Dec. 31, 2011

MidAmerican Energy Company and Subsidiaries [Member]

Notes to Consolidated Financial Statements [Line Items]

Commitments and Contingencies Disclosure [Text Block]

(14) Commitments and Contingencies

Commitments

MidAmerican Energy had the following firm commitments that are not reflected on the Consolidated Balance Sheets. Minimum payments as of December 31, 2011, are as follows (in millions):

											2017 and
	2012		2013		2014		2015		2016		Thereafter		Total
Contract type:
Coal and natural gas for generation	$	241	$	148	$	89	$	40	$	3	$	—	$	521
Electric capacity and transmission	29		28		25		24		22		122		250
Natural gas contracts for gas operations	129		56		44		25		15		25		294
Construction commitments	108		132		62		427		—		—		729
Operating leases, easements and
maintenance and services contracts	31		25		20		14		14		331		435
	$	538	$	389	$	240	$	530	$	54	$	478	$	2,229

Coal, Natural Gas, Electric Capacity and Transmission Commitments

MidAmerican Energy has coal supply and related transportation and lime contracts for its coal-fueled generating facilities. The contracts have expiration dates ranging from 2012 to 2016. MidAmerican Energy expects to supplement the coal contracts with additional contracts and spot market purchases to fulfill its future coal supply needs. Additionally, MidAmerican Energy has a natural gas transportation contract, which expires in 2012, for a natural gas-fueled generating facility.

MidAmerican Energy also has various natural gas supply and transportation contracts for its gas operations that have expiration dates ranging from 2012 to 2024.

MidAmerican Energy has contracts to purchase electric capacity to meet its electric system energy requirements. The contracts have expiration dates ranging from 2012 to 2028. MidAmerican Energy also has contracts for the right to transmit electricity over other entities' transmission lines that have expiration dates ranging from 2012 to 2017.

Construction Commitments

MidAmerican Energy's firm construction commitments reflected in the table above include the following major construction projects. MidAmerican Energy is constructing 407 megawatts of wind-powered generation that it expects to place in service in 2012. Additionally, MidAmerican Energy has contracts for the construction of emissions control equipment at two of its jointly owned generating facilities to address air quality requirements. MidAmerican Energy's share of the resulting firm commitments is reflected in the table.

Operating Leases, Easements and Maintenance and Services Contracts

MidAmerican Energy has non-cancelable operating leases with expiration dates from 2012 to 2016 primarily for rail cars, office space and computer equipment. MidAmerican Energy also has non-cancelable easements with expiration dates from 2034 to 2061 for land in Iowa on which its wind-powered generating facilities are located. Additionally, MidAmerican Energy has non-cancelable maintenance and services contracts related to various generating facilities with expiration dates from 2012 to 2027. Payments on non-cancelable operating leases, easements and maintenance and services contracts totaled $25 million, $21 million and $21 million for 2011, 2010 and 2009, respectively.

Guarantees

MidAmerican Energy is the lessee on operating leases for coal rail cars for which it guarantees of the residual value of such equipment throughout the term of the leases, which expire in 2013. Events triggering the residual guarantees include termination of the lease, loss of the equipment or purchase of the equipment. As of December 31, 2011, the maximum amount of such guarantees specified in these leases totaled $23 million.

Environmental Laws and Regulations

MidAmerican Energy is subject to federal, state and local laws and regulations regarding air and water quality, emissions performance standards, climate change, coal combustion byproduct disposal, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact it's 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. Plaintiffs occasionally seek punitive or exemplary damages. MidAmerican Energy does not believe that such normal and routine litigation will have a material impact on its consolidated financial results.