WERING THE FUTURE 2017

A LETTER TO OUR STAKEHOLDERS 2

OUR BUSINESSES 4

OUR VISION, CULTURE AND STRATEGY 6

OUR CORE PRINCIPLES 7

2016 QUICK FACTS 8

CUSTOMER EXPECTATIONS ARE CHANGING 10

INVESTING IN RENEWABLES 14

SAFETY AND SECURITY 18

OUR LEADERSHIP TEAM 20

BERKSHIRE HATHAWAY ENERGY From our roots in renewable energy, Berkshire Hathaway Energy has grown to an

$85 billion portfolio of locally managed businesses that share a vision for a secure

and sustainable energy future. These businesses deliver affordable, safe and reliable

service each day to more than 11.6 million electric and gas customers and end-users

around the world and consistently rank high among energy companies in customer

satisfaction. Berkshire Hathaway Energy is headquartered in Des Moines, Iowa, U.S.A.

Learn more at www.berkshirehathawayenergyco.com

AltaLinkAlberta, Canada

ON THE COVER

BHE RenewablesSan Luis Obispo, California

2 3

WERING THE FUTURE

and on providing safe, reliable, affordable and cleanenergy services. Our locally managed businesseshave and will continue to deliver innovative solutionsfor customers’ key energy challenges while workingto keep their energy prices affordable. Beyond theenergy services we provide, our businesses givefinancial support to charitable organizations andeconomic development efforts and they encourageemployees to volunteer and be active in their localcommunities.

We value our strong reputation. Our regulatedenergy businesses serve customers and end-usersacross 18 western and Midwestern states in theU.S. and in the U.K. and Canada, creating aportfolio with significant geographic, regulatoryand resource diversity that helps us create value andmanage risk.

WE’RE COMMITTED TO A BETTER FUTURE.In the midst of uncertainty in an evolving industry, we are taking action. We have a measurable recordof results, solutions and success. The following pagesshowcase our 2016 business performance andprovide a look ahead at a few of the things we aredoing to provide the energy services our customerswant and depend on. We have the determination,experience, expertise and financial strength to findthe solutions our customers and regulators seek.

A LETTER TO OUR STAKEHOLDERS

AS A PROVIDER OF ESSENTIAL ENERGY SERVICES, WE POWER THELIVES AND LIVELIHOODS OF OUR HARD-WORKING CUSTOMERS.Our strong performance in 2016 reflects our commitment to provide safe,reliable, affordable and clean energy services to our customers and positionsus to deliver the energy solutions they want and expect for the long term.

OUR CUSTOMERS’ EXPECTATIONS ARE CHANGING. WE’RECOMMITTED TO DELIVERING THE SOLUTIONS THEY NEED. Some consumers are looking at ways to generate a portion of their own power.We believe we have a responsibility to deliver the energy services our customersexpect and new solutions for those who seek them. Reflective of those efforts is ourwork with regulators and other stakeholders to develop an energy market in thewestern U.S. that is producing significant cost savings and environmental benefitsby pooling resources and moving more renewable energy onto the energy grid.

Our customers are the reason we exist, and our commitment to them wasrecognized as they continued to report high levels of satisfaction. Our pipelinegroup maintained its No. 1 ranking in the annual Mastio survey; together, our U.S. utilities ranked first among holding companies in the annual TQS survey ofkey account customers; and our distribution company in the U.K. delivered its best-ever performance and the most-improved customer satisfaction ratings in its industry peer group. HomeServices, a leader in the real estate industry withbrokerage, mortgage and franchise businesses, provides personalized customerservice.

CLEAN AIR AND A HEALTHY ENVIRONMENT ARE IMPORTANT. WE CONTINUE TO REDUCE OUR IMPACT ON THE ENVIRONMENT.Being owned by Berkshire Hathaway Inc. provides a valuable competitiveadvantage; with no dividend requirement, we can invest our profits back into ourbusinesses and develop solutions that balance the needs of all stakeholders. As aresult, we have made substantial investments in renewable energy, gas pipelineinfrastructure, and projects to reduce emissions from our operations and to ensurethat the energy grid remains valued by stakeholders.

Gregory E. AbelChairman, President and CEO

WARREN E. BUFFETT

WALTER SCOTT, JR.

GREGORY E. ABEL

We also continued to make significant investmentsin generation, transmission, distribution and otherinfrastructure needed to maintain our facilities toreliably serve our customers and to prepare forexpected demand. Through our collective efforts,we are creating a cleaner, more reliable energyfuture, with a focus on keeping our costs low forour customers.

IN ALL OUR OPERATIONS, SAFETY ANDSECURITY ARE OUR TOP PRIORITY. Thanks to our employees’ hard work andcommitment to continuous improvement, weachieved our lowest-ever safety incident rate, anindustry-leading performance. We also establishedlong-term agreements with our labor partners atseveral of our businesses, which provide certaintythat benefits our employees and our customers.Because we work together and take personalresponsibility for safety, our workplaces and thecustomers and communities we serve are safer.

The importance of the services we provide to ourcustomers makes us a target for those who seek todisrupt lives – potentially, whole economies – as ameans to achieve their ends. We constantly work toensure reliability and security in an environmentwhere threats evolve rapidly and to increase theresilience of our operations and the energy grid.Our customers depend on us; we must be preparedto defend our businesses from attack and to restoreservice safely and efficiently.

OUR FOCUS ON CUSTOMERS IS AND WILLREMAIN THE HEART OF OUR CULTURE.Our actions and decision making center on everyemployee’s personal responsibility to our customers

4 POWERING THE FUTURE l 5

OUR BUSINESSES

ENERGY SERVICES

REAL ESTATE SERVICES

HAWAII PHILIPPINES GREAT BRITAIN

HomeServices of America’s real estatebrokerage companies have offices in28 states within the U.S. In addition,its real estate brokerage franchisenetworks operate in all states exceptAlaska, South Dakota and Vermont.

6

OUR CORE PRINCIPLESCUSTOMER SERVICEWe are focused on delivering reliability, dependability, fair prices and exceptional service to our customers. We are committed to providing innovative solutions for theenergy services our customers want and need.

EMPLOYEE COMMITMENTWe equip employees with the resources and support they need to be successful. Weencourage teamwork and provide a safe, rewarding work environment. We make no compromise when it comes to safety and security.

ENVIRONMENTAL RESPECTWe are committed to using natural resources wisely and protecting our environmentfor the benefit of future generations. Our Environmental RESPECT Policy details thiscommitment in the areas of Responsibility, Efficiency, Stewardship, Performance,Evaluation, Communication and Training.

REGULATORY INTEGRITYWe adhere to a policy of strict regulatory compliance and pursue frequent, opencommunication with regulators regarding our business performance.

OPERATIONAL EXCELLENCETogether with our employees, we pride ourselves on excellence in every aspect of ourwork. Our high standards for operations and system maintenance enable us to meet andexceed our customers’ expectations, perform our work safely, and preserve our assets.

FINANCIAL STRENGTHWe are excellent stewards of our substantial financial resources. Backed by BerkshireHathaway Inc., we invest in hard assets and focus on long-term opportunities that willcontribute to the future strength of the company.

STRATEGY

To be the best energy company in serving our customers,while delivering sustainable energy solutions.

Providing the energy solutions our customers depend on is aprivilege and a responsibility. We foster a culture of personalresponsibility to our customers that is based on ownership andaccountability for one’s actions and pride in the resultsachieved as an individual and as a team. This ownershipapproach provides line of sight deep into the business so risksand opportunities are identified early and managed timely forthe benefit of our customers.

Our strategy remains unchanged – reinvest in and take careof our existing businesses and assets, invest in internal growthopportunities, and acquire companies that are additive to ourbusiness.

POWERING THE FUTURE l 7

VISION

CULTURE –PERSONAL

RESPONSIBILITY TOOUR CUSTOMERS

Northern Natural GasWrenshall, Minnesota

$-

$1,500

$3,000

$4,500

$6,000

$7,500

2012 2013 2014 2015 2016

$ M

ILLI

ON

S CASH FLOWS FROM OPERATIONS

TOTAL CAPITAL EXPENDITURES

OPERATING CAPITAL EXPENDITURES

FREE CASH FLOW

POWERING THE FUTURE l 9

ENERGY SERVICESFINANCIAL RESULTS (BILLIONS)

Operating Revenue $17.4Operating Income $4.3Net Income Attributable to BHE $2.5

FINANCIAL POSITION (BILLIONS)

Total Assets $85Total Shareholder’s Equity $24

CASH FLOWS (BILLIONS)

Net Cash Provided by Operating Activities $6.1Net Cash Used in Investing Activities ($5.7)Net Cash From Financing Activities ($0.7)

OTHER STATISTICSCustomers and End-Users (Total Electric and Natural Gas) 11.6 million

Total Generation CapacityOwned 30,000 MWContracted 5,000 MW

Percentage of Renewables and Noncarbon in Total Generation Portfolio(Owned and Contracted) 39%

Electricity Transmission and Distribution Line Miles 235,900 miles

Natural Gas Transmission and Distribution Pipeline Miles 43,000 miles

TOTAL EMPLOYEES 21,000

REAL ESTATE SERVICESBROKERAGE l Located in 28 states

Real Estate Transactions 244,000Agents 29,000Sales Volume (BILLIONS) $86.5

MORTGAGE l Licensed in 36 statesClosed Loans 18,550Mortgage Volume (BILLIONS) $4.6

FRANCHISE l Located in 47 states(Berkshire Hathaway HomeServices, including wholly owned subsidiaries)

Offices 1,269Agents 42,000Sales Volume (BILLIONS) $89.7

2016 QUICK FACTS

(OWNED AND CONTRACTED)

As a member of the Berkshire Hathaway Inc. familyof businesses, our private ownership structure is amajor source of financial strength. It creates aunique competitive advantage, including the abilityto identify and deliver innovative solutions forcustomers and an invitation to participate inregional, national and international discussionsrelated to the energy industry.

We have no dividend requirement and can invest our profits back into our businesses to provideadditional value for our customers. This relationship to our parent uniquely positions us to take along-term view and to take on ambitious energy projects that other companies may not be able toafford. As a result, our energy businesses sustain some of the lowest customer rates in the U.S. andwe have become a leader in renewable energy.

GENERATIONCAPACITY

8

RENEWABLES AND NONCARBON

NATURAL GAS AND OTHER

COAL

COMPARABLEINVESTOR-OWNED UTILITIES

BERKSHIRE HATHAWAY OWNERSHIP PROVIDES THEOPPORTUNITY TO INVEST PROFITS BACK INTO OUR BUSINESSES

3-YEAR AVERAGE DIVIDENDPAYOUT RATIO

OUR COMPETITIVE ADVANTAGE

PROVIDING THE ESSENTIAL ENERGY SOLUTIONS OUR CUSTOMERS DEPEND

ON IS A PRIVILEGE AND A RESPONSIBILITY. DOING WHAT IS BEST FOR

CUSTOMERS IS NOT JUST A BUSINESS STRATEGY; IT’S OUR CULTURE.

PRIVATE GENERATION UNIVERSAL GENERATION

.27%

99.73%

1.22%

98.78%

ELECTRIC CUSTOMERSSERVED BY BERKSHIRE HATHAWAY ENERGY BUSINESSES

As consumer interest in private energy generation increases, our businesses are actively seekingsolutions for this new type of customer while considering the needs of all customers. Last summer,NV Energy customers who had purchased or leased private solar systems faced uncertainty. Manyof these customers had entered into 20-year leases with the suppliers of the systems without a clearunderstanding of their energy costs. NV Energy submitted and received regulatory approval for aproposal that places eligible customers on grandfathered net metering rules and rates, giving thesecustomers more certainty about their energy costs and providing a solution that was fair for allcustomers going forward.

Pacific Power is preparing to roll out smart meters for electricity customers to help them takecontrol of their energy use and monitor their costs. The technology will collect household energyuse information that customers can access and use to make informed decisions about how theyuse energy and the impact their usage has on their bills. NV Energy’s customers are already usingthe technology.

POWERING THE FUTURE l 1110

SO ARE WE.CUSTOMER EXPECTATIONS

ARE CHANGING.In Great Britain, the increasing popularity of low-carbontechnologies – like solar panels, heat pumps and electriccars – is expected to put pressure on existing electricitynetworks and changing traditional patterns of consumerdemand. Northern Powergrid expects to play anincreasing role in balancing network demand. Itsdedicated £83 million Smart Grid program will lay thefoundation for a more intelligent network. As a significantplayer in the rollout of smart meters to customers,Northern Powergrid will have more data about customerbehavior to meet these challenges. The program alsowill fund a range of innovative projects, including aground-breaking trial to demonstrate how clusters ofhome batteries can increase capacity on electricitynetworks so that more homes can install solar panelswithout creating a need to reinforce the network.

Looking for innovative ways to save energy andprotect the environment, Rocky Mountain Powerdeveloped a unique partnership with customerHouweling’s Tomatoes. The resulting projectrecovers waste heat from the Currant Creeknatural gas-fueled plant and delivers it to thenearby greenhouse to warm the facility andenhance tomato growth. This allows thegreenhouse to grow tomatoes year-round andavoids the need to use propane fuel. RockyMountain Power also provided a financialincentive to install energy-efficient equipmentthat saves enough energy to power 1,056typical Utah homes each year and reducesHouweling’s energy costs.

Rocky Mountain Power and Houweling’s Tomatoes partnershipMona, Utah

Northern PowergridWooler, England

We work to find equitable and long-term solutions that serve all customers – those served byuniversal generation provided by our businesses and those who choose to use private generation.

MidAmerican Energy has been building and utilizing wind energy for more than a decade. This ongoingcommitment to renewable energy is good for the company’s customers and for Iowa. The state hasbecome a leader in clean energy, and because of low energy prices and access to renewable energy,companies like Google, Facebook, Microsoft and Apple have found MidAmerican Energy’s serviceterritory a great place to do business. The company’s wind projects also help create local jobs and bringcapital investment, property tax revenues, and other economic benefits to nearby communities, includingemployment opportunities in other sectors like transportation and manufacturing.

Delivering the services ourcustomers want creates benefitsfar beyond the energy serviceswe provide. The things thatmatter to our customers matterto us. Berkshire HathawayEnergy’s businesses and theiremployees are dedicated to thecommunities they serve and theareas where their projects arelocated. They work to addresscommunity needs by supportinglocal events and initiatives,hiring local workers, andoffering educational benefits forlocal schools and universities.Berkshire Hathaway Energy alsosupports community initiativesthat are important to ouremployees through programsthat provide funding toorganizations where theyvolunteer their time.

HomeServices’ integrated business model –including brokerage, mortgage, title andescrow services, insurance, and globalrelocation – creates a seamless, streamlinedprocess for home buyers and sellers.HomeServices believes that fundamentally,real estate is local and that buyers andsellers gravitate to professionals who knowand understand the unique dynamics oftheir area, their community and theirneighborhood. HomeServices’ footprintexpanded in the past year with theacquisition of real estate firms in Oregon,Florida, Colorado and New York and thecontinued growth of its Berkshire HathawayHomeServices and Real Living Real Estatefranchise networks.

POWERING THE FUTURE l 1312

BHE Pipeline Group’s Kern River Gas TransmissionCompany received Federal Energy RegulatoryCommission approval to establish an alternative set ofrates for customers. The landmark rate redesign givescustomers the option to stay with currently establishedrates or choose the alternative lower rates for a longerterm, allowing customers the option to reduce costs byup to 24% and increase price stability for the longterm. Kern River’s transparency in working with itscustomers was critical in reaching this outcome.

SO ARE WE.CUSTOMER EXPECTATIONS

ARE CHANGING.

AltaLinkAlberta, Canada

MidAmerican Energy CompanyRolling Hills Wind Project, Iowa

NV EnergyLas Vegas, Nevada

HomeServices

In 2016, AltaLink improved customer reliability whilesignificantly reducing costs. The result was outage timesalmost 50% shorter than in 2015 and fewer outages overall.This operational performance combined with approval of acustomer rate-relief proposal that saves Albertans almostC$600 million by the end of 2018, delivers the results itscustomers need as the economy recovers. AltaLink’s significantinvestment in its transmission system – the province’s largest –means the grid is ready to deliver the lowest-cost energy toAlberta’s homes, farms, businesses and industries as theprovince connects more renewable energy sources.

Kern RiverGoodsprings, Nevada

POWERING THE FUTURE l 15

CLEAN AIR AND AHEALTHY ENVIRONMENT

ARE IMPORTANT TO OUR CUSTOMERS.

OUR CUSTOMERS WANT CLEANER ENERGY AND A HEALTHIER ENVIRONMENT

FOR THEIR CHILDREN AND THEIR CHILDREN’S CHILDREN. WE HEAR THEM.

WE’RE COMMITTED TO MAKING A CLEANER ENERGY FUTURE A REALITY.

14

MidAmerican Energy has a bold vision –the company is working toward delivering100% renewable energy to meet its Iowacustomers’ electricity needs, with minimalimpact to their costs. The journey beganmore than a decade ago when the company

completed its firstwind project. Atthe end of 2016,wind made up thelargest share ofMidAmericanEnergy’s ownedand contractedgeneration

portfolio, 48%, and work was underway onthe company’s largest-ever wind project.By year-end 2020, MidAmerican Energywill have the capability of generatingrenewable energy equal to 89% of its Iowacustomers’ annual usage. The company islooking to solar and other technologies toreach its 100% vision.

WE WANT THAT TOO.

Rocky Mountain Power and its Utahcustomers are working together tosupport renewable energy and makea difference for the environment. The company successfully launchedSubscriber Solar in 2016. Theprogram gives residential andcommercial customers who signedup the opportunity to support anduse universal solar power – a moreefficient way to generate solar energyat a lower cost – without having toinstall private solar on their rooftops.

2010

% OF IOWA RETAIL SALES

2012

2014

2016

2020

1,284 20%

MEGAWATTS

2,285 34%

2,841 40%

4,048 55%

6,048 89%

MIDAMERICAN ENERGY COMPANY

RENEWABLE GENERATION

Rocky Mountain PowerSalt Lake City, Utah

POWERING THE FUTURE l 17

Pacific Power worked with keystakeholders and the Oregonlegislature to create innovativenew public policy – the CleanElectricity and Coal TransitionAct – that identifies a path toprovide the cleaner energy thecompany’s Oregon customersare asking for, in a way that isaffordable. The law takes coalgeneration out of Oregon by2030, and by 2040, 50% ofthe energy Pacific Powerprovides in Oregon will comefrom renewable resources.

BHE Renewables continues to growits portfolio of renewable generation,bringing the 400-megawatt GrandePrairie wind project on-line – thelargest wind project in Nebraska,acquiring the 110-megawatt Alamo 6 solar project in Texas, and advancing Community SolarGardens, a 96-megawatt project inMinnesota. BHE Renewables ownsand operates two of the world’slargest photovoltaic solar plants thatgenerate energy while operating inharmony with their natural habitat.

Electric vehicles can lower carbon emissionssignificantly, and they cost less to operate thangas-powered vehicles. To fully leverage theopportunity electric vehicles offer and to makethe benefits available to our customers, weneed the right infrastructure. Our U.S. energyproviders – MidAmerican Energy, NV Energy,Pacific Power and Rocky Mountain Power –acknowledge that they play an essential rolein advancing the use of electricity as atransportation fuel. Each of the businesses isworking with stakeholders to advance vehicleelectrification in their service territories.

16

CLEAN AIR AND AHEALTHY ENVIRONMENT

ARE IMPORTANT TO OUR CUSTOMERS. WE WANT THAT TOO.

2006 2010 2016

21%

25%

39%

NV EnergyNellis Solar II, Las Vegas, Nevada

BHE RenewablesPecos County, Texas

Pacific PowerPortland, Oregon

EQUAL TOREMOVING

COLLECTIVELY, ROCKY MOUNTAINPOWER AND PACIFIC POWER MADESIGNIFICANT STRIDES IN 2016

RENEWABLES AND NONCARBONPERCENTAGE OF TOTAL OWNED

AND CONTRACTED CAPACITY

BERKSHIRE HATHAWAY ENERGY

GENERATIONCAPACITY

NV Energy continues its move to acleaner, more balanced generationportfolio through the retirement ofcoal-fueled generation in Nevada,replacing that generation withrenewable and natural gas-fueledresources. By the end of 2019, the company will have reduced coal-fueled generation by 76%. NV Energy customers benefit fromenergy generated by more than 40 universal renewables projects.

2014 2015 2016 2014 2015 2016

1.41

1.03

1.71

0.750.64 0.59

1.79

1.41

1.92

1.61

1.23

1.48

EEI TOP DECILE

BERKSHIRE HATHAWAY ENERGY

EEI TOP DECILE

BERKSHIRE HATHAWAY ENERGY

RECORDABLEINCIDENT RATE

PREVENTABLE VEHICLEACCIDENT RATE

POWERING THE FUTURE l 1918

SAFETY AND SECURITY ARE ALWAYS OUR TOP PRIORITY.

Our employees’ commitment to safety is moving us toward our ultimate goal of an accident-freeworkplace. But we don’t just track our performance. We work together to identify and mitigateconditions, processes and actions that could contribute to accidents or injuries; we communicatethe lessons we learn to help keep others across the organization safe; and we provide tools andtactics to help avoid a recurrence.

Our safety, cyber and physical security programs are built on personalownership, compliance with standards, accountability for performance,and continuous improvement. These fundamentals are key to creating asustainable and continuously improving business in a global economy.

We place great value on the security of our people, systems and facilities,one employee at a time. We provide best-in-class training to ensure that ouremployees understand the risks and have thorough and specific knowledgeto protect our assets, information and operations. We deploy technologyand equipment solutions to create strong layers of defense.

Prevention is only part of our focus. We have and will continue to advancegrid resilience and our ability to restore service to our customers, ensuringthat any event will be rare, brief and never repeated.

PEOPLE

PHYSICAL ASSETS

CYBER ASSETS

S

AF

E AND SECURE

+

+

EVERY JOB, EVERY DAY.

OUR CUSTOMERS DEPEND ON US. TO PROTECT THEM AND TO

ENSURE WE DELIVER THE ENERGY SERVICES THEY RELY ON,

WE MUST BE VIGILANT ABOUT SAFETY AND SECURITY.

WE ARE CONTINUOUSLY IMPROVING OUR SAFETY PERFORMANCE.

NV Energy continues to foster excellent relationships withInternational Brotherhood of Electrical Workers Locals 1245and 396, the two bargaining units that represent nearly halfof the company’s employees. The Commitment to Excellence,a unique bond between NV Energy and Local 396, aims tocreate a more positive and collaborative relationship betweenthe entities. Based on IBEW’s nationally recognized Code ofExcellence and aligned with our six core principles, thepartnership promotes a highly collaborative relationship andfocus on safety and mutual respect and is designed to achievecontinued success and deliver a more sustainable operation.

PAUL J. CAUDILLPresident and CEONV Energy

CINDY A. CRANEPresident and CEORocky Mountain Power

PHILIP A. JONESPresident and CEONorthern Powergrid

RONALD J. PELTIERChairman and CEOHomeServices of America, Inc.

MARK A. HEWETTPresident and CEO BHE Pipeline Group

PATRICK J. GOODMANExecutive Vice President andChief Financial Officer

JOHN A. CUPPAROPresident and CEO BHE U.S. Transmission

WILLIAM J. FEHRMANPresident and CEO MidAmerican EnergyCompany andBHE Renewables

SCOTT W. THONPresident and CEOAltaLink

STEFAN A. BIRDPresident and CEOPacific Power

CATHY S. WOOLLUMSSenior Vice President,Environmental Services andChief Environmental Counsel

NATALIE L. HOCKENSenior Vice President andGeneral Counsel

GREGORY E. ABELChairman, President and CEO

R. PATRICK REITENSenior Vice President,Government Relations

20

WERING THE FUTURE

OUR LEADERSHIP TEAM

OUR TEAM INCLUDES LEADERS AT THE BERKSHIRE HATHAWAY ENERGY LEVEL

AND AT EACH OF OUR BUSINESSES, WHICH OPERATE AUTONOMOUSLY.

WE SHARE A COMMON VISION, CULTURE AND PRINCIPLES.

BERKSHIRE HATHAWAY ENERGY666 GRAND AVE.P.O. BOX 657DES MOINES, IA 50306-0657, U.S.A.

www.berkshirehathawayenergyco.com