Bill Fehrman President and CEO

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2 Bill Fehrman President and CEO A graduate of the University of Nebraska in Lincoln and with a master s degree in business administration from Regis University, Bill joined MidAmerican Energy in 2007 after serving as president of PacifiCorp Energy. Bill is president and CEO of MidAmerican Energy and BHE Renewables. The companies are subsidiaries of Berkshire Hathaway Energy, a global leader in the production of energy from diversified fuel sources, including coal, natural gas, wind, solar, hydroelectric, nuclear, geothermal and biomass. Berkshire Hathaway Energy also is a leader in the supply and distribution of energy in the U.S., Canadian and U.K. consumer markets, with approximately 11.5 million electricity and natural gas customers. Bill is a member of the Iowa Business Council, the Greater Des Moines Partnership, the board of directors for the American Gas Association, and the Iowa Partnership for Economic Progress board.

3 Bill Fehrman President and CEO MidAmerican Energy Company

4 Our Vision To be the best energy company in serving our customers, while delivering sustainable energy solutions

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7 100% Renewable Energy Embraces customers expressed preference for more renewable energy Supports a cleaner environment Builds stronger communities Fosters a more vibrant economy Injects a significant risk mitigation against future carbon taxes or other related costs

8 100% Renewable Energy Shifting our Generation Mix Dec. 31, 2000 Dec. 31, 2012 Forecast Dec. 31, 2016 Nuclear and Other 11% Nuclear and Other 7% Nuclear and Other 6% Natural Gas 19% Coal 45% Coal 31% Wind 30% Wind 47% Coal 70% Natural Gas 18% Natural Gas 16%

9 100% Renewable Energy Wind Generation Investment MW 7,000 6,000 5,000 Cumulative MW Installed April 2016 $6.6 billion invested; 53% of MEC Iowa Customer Use 2020 $10 billion invested; 85% of MEC Iowa Customer Use 4,000 3,000 2,000 1, * 2018* 2019* 2020* * Wind XI project

10 100% Renewable Energy Wind XI Overview IUB approved Wind XI on August 26, ,000 MW; 1,000 turbines at approximately 7 sites, locations TBD Goal to build, operate and maintain at no net cost to customers Did not seek a rate increase to move forward Taller turbine towers, with a higher capacity factor: 46.9% vs. 41.6% Capital cost of $3.6 billion offset by $3.58 billion in production tax credits Iowa s largest-ever economic development project $500 million in tax base; $720 million in landowner payments; $371 million in local expenditures $228 million in labor payments; $69 million in new permanent jobs Anticipate delaying next electric rate case from 2026 to 2029

11 100% Renewable Energy Green Label Program Internal certification program that allows business customers the ability to meet their sustainability goals Documents and verifies the use of green energy to meet customers goals Provides business customers a baseline allocation of renewable energy, based on customer grouping Provides business customers annual certification for the power generated by those assets

12 100% Renewable Energy Universal Solar Build up to 35 MW of solar generation in Iowa Include solar community garden as part of program Customers may subscribe and virtually own solar, without installing or maintaining their own panels Potential for multiple locations throughout the service territory Pilot project to evaluate the effectiveness of the approach and the demand for solar generation in Iowa Explore a storage component as part of system Address fairness with a revised price structure

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14 Transformation of the Grid Iowa Typical Residential Summer Demand with 5 kw DC Solar DG System Private generation peak 1-3 PM Customer power demand peak 6-7 PM Kilowatt Private generation customer uses power grid to export excess power % Energy Company- Provided Power 100% Energy Company- Provided Power 4am 8am 12pm 4pm 8pm 12am Customer Power Demand Energy Company-Provided Power Grid Services hours/day energy company provides all power grid services Energy Company-Provided Power 8 hours/day energy company provides 100% of power needed Private Generation Energy Company and Private Generation System-Provided Power 8.5 hours/day both energy company and private generation system provide power Private Generation System-Provided Power 7.5 hours/day private generation system provides 100% of power needed

15 100% Renewable Energy MEC s Rates Compared to Private Solar Solar costs are anticipated to decrease 5% per year, but MEC s customer rates for all classes are expected to remain below the cost of solar for the next 10 years Iowa Private Solar $/kwh $0.160 $0.140 $0.120 $0.100 $0.080 $0.060 $0.040 $0.020 $ Projected Solar Rates MEC Commercial Electric Rate MEC Residential Electric Rate MEC Industrial Electric Rate

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18 Innovative Technologies Electric Infrastructure Improvements LED streetlight conversion 40,000+ lights converted from high-pressure sodium to LED Average monthly, systemwide, energy savings of 940,000 kwh Varantec system optimization technology To be utilized to stabilize system voltages, reduce system energy losses, integrate renewable energy resources, and manage peak demand

19 Innovative Technologies Gas Infrastructure Improvements Invested $124.6 million in gas infrastructure improvement projects between 2011 and 2015 Added capacity in high-growth areas to serve new customers Replaced aging infrastructure identified through integrity management programs (i.e., cast iron or first generation plastic pipe) Modified existing pipelines to ensure continued safe, reliable operation, and compliance with federal and state regulations An additional $231 million in projects are planned over the next 10 years Base rates have not been increased since 2002; more than 14 years and counting, of low and stable rates

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21 Talent Pipeline, Reward for Performance Delivering our dream relies on a strong, empowered workforce Center for Excellence: Line mechanic training program Guided Talent: Employee development program Reward performance that helps move our business forward Wind projects create jobs Thousands of construction jobs More than 200 new permanent jobs Sustainable employment supports strong communities

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23 Funding the Dream Low & Stable Electric Rates, Reliability 2015 Average Retail Rate/kWh

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