Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NEVADA POWER CO | d304959d8k.htm |
| EX-99.2 - SUPPLEMENTAL SLIDES DATED FEBRUARY 21, 2012 - NEVADA POWER CO | d304959dex992.htm |
Exhibit 99.1
Analyst Contacts: Max Kuniansky, (702) 402-5627
Britta Carlson, (702) 402-5624
Media Contact: Karl Walquist, (775) 834-3891
NV Energy Reports Financial Results for 2011
LAS VEGAS, February 21, 2012 – NV Energy, Inc. (NYSE: NVE) today announced financial results for the three and 12 months ended December 31, 2011.
NV Energy, Inc.
Consolidated Results
Periods Ended December 31,
| Net Income (Loss) ($ in millions) |
EPS (diluted) | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Three Months |
$ | (25.2 | ) | $ | 14.2 | $ | (0.11 | ) | $ | 0.06 | ||||||
| 12 Months |
$ | 163.4 | $ | 227.0 | $ | 0.69 | $ | 0.96 | ||||||||
“Important considerations impacting our fourth quarter earnings included completion of the Harry Allen plant, which is now in rates, a number of accounting adjustments, and the timing of power plant outages. For the year ended 2011, the Harry Allen plant and accounting adjustments were the most significant drivers of earnings,” said Michael Yackira, president and chief executive officer of NV Energy, Inc. “Cost control will remain a top priority for our Company this year, as we transition to a period of reduced regulatory risk.”
Results for the three months ended December 31, 2011 were adversely affected by regulatory adjustments and reserves totaling $20.9 million (pre-tax), primarily related to a December 2011 rate decision by the Public Utilities Commission of Nevada.
Earnings for the 12 months ended December 31, 2010 benefitted from NV Energy’s California operations, which were sold effective January 1, 2011, and a $7.6 million pre-tax gain on a May 2010 asset sale as previously disclosed.
Webcast Scheduled for 7 a.m. PST today, Tuesday, February 21, 2012
Senior management of NV Energy will review the company’s 2011 financial results and other matters during a conference call and live webcast today, Tuesday, February 21, at 7 a.m. Pacific Standard Time.
The webcast will be accessible on the NV Energy website at www.nvenergy.com. A taped replay will remain on the company’s website for approximately 30 days. To listen to the replay by telephone, call (800) 475-6701. International callers should dial (320) 365-3844. Use the conference call access code 234001.
Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a combined 45,592 square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.
This press release may contain forward-looking statements regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, NV Energy Inc.’s ability to maintain access to the capital markets, NV Energy Inc.’s ability to receive dividends from its subsidiaries, the financial performance of
NV Energy Inc.’s subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, and the discretion of NV Energy Inc.’s Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in NV Energy Inc.’s and its subsidiaries’ financing agreements. For Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, these risks and uncertainties include, but are not limited to, future economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in their service territories, their ability to procure sufficient renewable energy sources in each compliance year to satisfy the Nevada Renewable Energy Portfolio Standard, changes in environmental laws and regulations, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, wildfire and other natural phenomena, explosions, fires, accidents, mechanical breakdowns that may occur while operating and maintaining an electric and natural gas system, their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company d/b/a NV Energy, financial market conditions, and unfavorable rulings in their pending and future regulatory filings. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy are contained in their quarterly reports on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011, and September 30, 2011 and Annual Report on Form 10-K for the year ended December 31, 2010, each filed with the Securities and Exchange Commission. NV Energy Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
NV ENERGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands, Except Share Amounts)
| Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| OPERATING REVENUES |
$ | 609,597 | $ | 655,011 | $ | 2,943,307 | $ | 3,280,222 | ||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Fuel for power generation |
160,665 | 170,970 | 680,585 | 821,484 | ||||||||||||
| Purchased power |
115,202 | 126,343 | 633,874 | 648,881 | ||||||||||||
| Gas purchased for resale |
37,402 | 36,166 | 125,155 | 137,702 | ||||||||||||
| Deferred energy |
(39,655 | ) | 6,553 | (83,333 | ) | 113,107 | ||||||||||
| Energy efficiency program costs |
20,489 | — | 43,537 | — | ||||||||||||
| Other operating expenses |
102,997 | 93,486 | 411,115 | 414,241 | ||||||||||||
| Maintenance |
29,990 | 18,852 | 103,307 | 104,567 | ||||||||||||
| Depreciation and amortization |
91,492 | 83,992 | 357,937 | 333,059 | ||||||||||||
| Taxes other than income |
14,331 | 15,214 | 60,465 | 62,746 | ||||||||||||
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| Total Operating Expenses |
532,913 | 551,576 | 2,332,642 | 2,635,787 | ||||||||||||
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| OPERATING INCOME |
76,684 | 103,435 | 610,665 | 644,435 | ||||||||||||
| OTHER INCOME (EXPENSE): |
||||||||||||||||
| Interest expense (net of AFUDC-debt: ($1,653), $6,006, $8,718 and $23,355) |
(89,992 | ) | (91,385 | ) | (328,710 | ) | (333,010 | ) | ||||||||
| Interest income (expense) on regulatory items |
(4,181 | ) | (3,764 | ) | (16,321 | ) | (12,517 | ) | ||||||||
| AFUDC-equity |
(1,981 | ) | 7,197 | 10,873 | 28,112 | |||||||||||
| Other income |
7,822 | 6,317 | 22,764 | 36,841 | ||||||||||||
| Other expense |
(25,324 | ) | (6,075 | ) | (48,924 | ) | (23,113 | ) | ||||||||
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| Total Other Income (Expense) |
(113,656 | ) | (87,710 | ) | (360,318 | ) | (303,687 | ) | ||||||||
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| Income (Loss) Before Income Tax Expense |
(36,972 | ) | 15,725 | 250,347 | 340,748 | |||||||||||
| Income tax expense (benefit) |
(11,724 | ) | 1,512 | 86,915 | 113,764 | |||||||||||
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| NET INCOME (LOSS) |
(25,248 | ) | 14,213 | 163,432 | 226,984 | |||||||||||
| Other comprehensive income (loss): |
||||||||||||||||
| Change in compensation retirement benefits liability and amortization (Net of taxes $1,504, $268, $202 and $217) |
(2,775 | ) | (497 | ) | (357 | ) | (403 | ) | ||||||||
| Change in market value of risk management assets and liabilities (Net of taxes $369 in 2011) |
$ | (686 | ) | $ | — | $ | (686 | ) | $ | — | ||||||
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| OTHER COMPREHENSIVE INCOME (LOSS) |
(3,461 | ) | (497 | ) | (1,043 | ) | (403 | ) | ||||||||
| COMPREHENSIVE INCOME (LOSS) |
$ | (28,709 | ) | $ | 13,716 | $ | 162,389 | $ | 226,581 | |||||||
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| Amount per share basic and diluted |
||||||||||||||||
| Net income (loss) per share - basic |
(0.11 | ) | 0.06 | 0.69 | 0.97 | |||||||||||
| Net income (loss) per share - diluted |
(0.11 | ) | 0.06 | 0.69 | 0.96 | |||||||||||
| Weighted Average Shares of Common Stock Outstanding - basic |
235,999,750 | 235,217,903 | 235,847,596 | 235,048,347 | ||||||||||||
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| Weighted Average Shares of Common Stock Outstanding - diluted |
238,365,115 | 236,767,210 | 237,767,071 | 236,294,812 | ||||||||||||
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| Dividends Declared Per Share of Common Stock |
0.13 | 0.12 | 0.49 | 0.45 | ||||||||||||
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NV ENERGY, INC.
CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| Residential |
2,060 | 2,142 | (3.8 | )% | 10,754 | 11,149 | (3.5 | )% | ||||||||||||||||
| Commercial |
1,733 | 1,741 | (0.5 | )% | 7,205 | 7,357 | (2.1 | )% | ||||||||||||||||
| Industrial |
2,538 | 2,511 | 1.1 | % | 10,218 | 10,217 | — | |||||||||||||||||
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| TOTAL RETAIL |
6,331 | 6,394 | (1.0 | )% | 28,177 | 28,723 | (1.9 | )% | ||||||||||||||||
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ELECTRIC SALES - MWh’s (EXCLUDING CALIFORNIA)*
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | Change From Prior Year |
Average Change in Customers |
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
|||||||||||||||||||||||||
| Residential |
2,060 | 2,071 | (0.5 | )% | 0.9 | % | 10,754 | 10,872 | (1.1 | )% | 0.9 | % | ||||||||||||||||||||
| Commercial |
1,733 | 1,703 | 1.8 | % | 0.7 | % | 7,205 | 7,201 | 0.1 | % | 0.6 | % | ||||||||||||||||||||
| Industrial |
2,538 | 2,481 | 2.3 | % | (2.4 | )% | 10,218 | 10,101 | 1.2 | % | (1.9 | )% | ||||||||||||||||||||
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| TOTAL RETAIL |
6,331 | 6,255 | 1.2 | % | 0.9 | % | 28,177 | 28,174 | — | 0.9 | % | |||||||||||||||||||||
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| * | Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011. |
GAS SALES - Dth
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| TOTAL RETAIL |
5,188 | 4,631 | 12.0 | % | 15,781 | 14,739 | 7.1 | % | ||||||||||||||||
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ELECTRIC SOURCES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| Generated |
5,011 | 4,833 | 3.7 | % | 19,488 | 20,526 | (5.1 | )% | ||||||||||||||||
| Purchased |
1,864 | 2,007 | (7.1 | )% | 10,945 | 9,861 | 11.0 | % | ||||||||||||||||
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| TOTAL |
6,875 | 6,840 | 0.5 | % | 30,433 | 30,387 | 0.2 | % | ||||||||||||||||
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DEGREE DAYS
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
Normal | 2011 | 2010 | Change from Prior Year |
Normal | |||||||||||||||||||||||||
| SOUTH |
||||||||||||||||||||||||||||||||
| Heating |
909 | 725 | 25.4 | % | 856 | 2,040 | 1,895 | 7.7 | % | 1,991 | ||||||||||||||||||||||
| Cooling |
211 | 230 | (8.3 | )% | 185 | 3,540 | 3,648 | (3.0 | )% | 3,540 | ||||||||||||||||||||||
| NORTH |
||||||||||||||||||||||||||||||||
| Heating |
1,911 | 1,795 | 6.5 | % | 1,934 | 5,112 | 4,868 | 5.0 | % | 4,960 | ||||||||||||||||||||||
| Cooling |
4 | 18 | (77.8 | )% | 4 | 964 | 922 | 4.6 | % | 864 | ||||||||||||||||||||||
CAPITAL STRUCTURE
(dollars in thousands)
| December 31, 2011 | December 31, 2010 | |||||||||||||||
| Current maturities of long-term debt |
$ | 139,985 | 1.6 | % | $ | 355,929 | 4.1 | % | ||||||||
| Long-term debt |
5,008,931 | 58.6 | % | 4,924,109 | 57.1 | % | ||||||||||
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| Total debt |
$ | 5,148,916 | 60.2 | % | $ | 5,280,038 | 61.2 | % | ||||||||
| Total shareholders’ equity |
3,406,079 | 39.8 | % | 3,350,818 | 38.8 | % | ||||||||||
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| Total capitalization (including current maturities of long-term debt) |
$ | 8,554,995 | 100.0 | % | $ | 8,630,856 | 100.0 | % | ||||||||
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AVAILABLE LIQUIDITY AS OF DECEMBER 31, 2011
(dollars in millions)
| NVE | NPC | SPPC | ||||||||||
| Cash and Cash Equivalents |
$ | 20.1 | $ | 65.9 | $ | 55.2 | ||||||
| Balance available on Revolving Credit Facilities |
N/A | 578.8 | 237.5 | |||||||||
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| $ | 20.1 | $ | 644.7 | $ | 292.7 | |||||||
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NEVADA POWER COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands)
| Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| OPERATING REVENUES |
$ | 391,513 | $ | 416,233 | $ | 2,054,393 | $ | 2,252,377 | ||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Fuel for power generation |
119,697 | 119,137 | 498,487 | 588,419 | ||||||||||||
| Purchased power |
77,519 | 92,963 | 477,226 | 505,239 | ||||||||||||
| Deferred energy |
(15,026 | ) | 13,124 | (16,300 | ) | 94,843 | ||||||||||
| Energy efficiency program costs |
16,841 | — | 37,292 | — | ||||||||||||
| Other operating expenses |
65,087 | 56,762 | 260,127 | 260,535 | ||||||||||||
| Maintenance |
19,198 | 12,814 | 64,320 | 71,759 | ||||||||||||
| Depreciation and amortization |
65,393 | 56,922 | 252,191 | 226,252 | ||||||||||||
| Taxes other than income |
9,045 | 9,061 | 37,254 | 37,918 | ||||||||||||
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| Total Operating Expenses |
357,754 | 360,783 | 1,610,597 | 1,784,965 | ||||||||||||
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| OPERATING INCOME |
33,759 | 55,450 | 443,796 | 467,412 | ||||||||||||
| OTHER INCOME (EXPENSE): |
||||||||||||||||
| Interest expense (net of AFUDC-debt: ($2,192), $5,680, $6,770 and $21,443) |
(58,917 | ) | (52,871 | ) | (221,953 | ) | (214,367 | ) | ||||||||
| Interest income (expense) on regulatory items |
(2,661 | ) | (1,204 | ) | (8,572 | ) | (3,169 | ) | ||||||||
| AFUDC-equity |
(2,681 | ) | 6,674 | 8,298 | 25,229 | |||||||||||
| Other income |
5,476 | 6,457 | 14,774 | 15,541 | ||||||||||||
| Other expense |
(17,785 | ) | (3,608 | ) | (33,020 | ) | (12,946 | ) | ||||||||
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| Total Other Income (Expense) |
(76,568 | ) | (44,552 | ) | (240,473 | ) | (189,712 | ) | ||||||||
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| Income (Loss) Before Income Tax Expense |
(42,809 | ) | 10,898 | 203,323 | 277,700 | |||||||||||
| Income tax expense (benefit) |
(13,744 | ) | 1,341 | 70,737 | 91,757 | |||||||||||
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| NET INCOME (LOSS) |
(29,065 | ) | 9,557 | 132,586 | 185,943 | |||||||||||
| Other comprehensive income (loss): |
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| Change in compensation retirement benefits liability and amortization (Net of taxes $683, $232, $129 and $205) |
(1,270 | ) | (430 | ) | (241 | ) | (380 | ) | ||||||||
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| COMPREHENSIVE INCOME (LOSS) |
$ | (30,335 | ) | $ | 9,127 | $ | 132,345 | $ | 185,563 | |||||||
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NEVADA POWER COMPANY
OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
Average Change in Customers |
2011 | 2010 | Change from Prior Year |
Average Change in Customers |
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| Residential |
1,502 | 1,522 | (1.3 | )% | 1.1 | % | 8,523 | 8,684 | (1.9 | )% | 1.1 | % | ||||||||||||||||||||
| Commercial |
1,046 | 1,018 | 2.8 | % | 0.4 | % | 4,353 | 4,340 | 0.3 | % | 0.4 | % | ||||||||||||||||||||
| Industrial |
1,860 | 1,848 | 0.6 | % | (2.4 | )% | 7,653 | 7,618 | 0.5 | % | (1.9 | )% | ||||||||||||||||||||
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| TOTAL RETAIL |
4,408 | 4,388 | 0.5 | % | 1.0 | % | 20,529 | 20,642 | (0.5 | )% | 1.0 | % | ||||||||||||||||||||
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ELECTRIC SOURCES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
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| Generated |
3,896 | 3,537 | 10.1 | % | 15,034 | 15,405 | (2.4 | )% | ||||||||||||||||
| Purchased |
756 | 1,140 | (33.7 | )% | 6,577 | 6,351 | 3.6 | % | ||||||||||||||||
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| TOTAL |
4,652 | 4,677 | (0.5 | )% | 21,611 | 21,756 | (0.7 | )% | ||||||||||||||||
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CAPITAL STRUCTURE
(dollars in thousands)
| December 31, 2011 | December 31, 2010 | |||||||||||||||
| Current maturities of long-term debt |
$ | 139,985 | 2.2 | % | $ | 355,929 | 5.6 | % | ||||||||
| Long-term debt |
3,319,605 | 52.6 | % | 3,221,833 | 50.8 | % | ||||||||||
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| Total debt |
$ | 3,459,590 | 54.8 | % | $ | 3,577,762 | 56.4 | % | ||||||||
| Total shareholder’s equity |
2,848,977 | 45.2 | % | 2,761,632 | 43.6 | % | ||||||||||
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| Total capitalization (including current maturities of long-term debt) |
$ | 6,308,567 | 100.0 | % | $ | 6,339,394 | 100.0 | % | ||||||||
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SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands)
| Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| OPERATING REVENUES: |
||||||||||||||||
| Electric |
$ | 170,955 | $ | 187,542 | $ | 716,417 | $ | 836,879 | ||||||||
| Gas |
47,125 | 51,232 | 172,482 | 190,943 | ||||||||||||
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| Total Operating Revenues |
218,080 | 238,774 | 888,899 | 1,027,822 | ||||||||||||
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| OPERATING EXPENSES: |
||||||||||||||||
| Fuel for power generation |
40,968 | 51,833 | 182,098 | 233,065 | ||||||||||||
| Purchased power |
37,683 | 33,380 | 156,648 | 143,642 | ||||||||||||
| Gas purchased for resale |
37,402 | 36,166 | 125,155 | 137,702 | ||||||||||||
| Deferral of energy - electric - net |
(19,521 | ) | (8,714 | ) | (65,445 | ) | 8,475 | |||||||||
| Deferral of energy - gas - net |
(5,108 | ) | 2,143 | (1,588 | ) | 9,789 | ||||||||||
| Energy efficiency program costs |
3,648 | — | 6,245 | — | ||||||||||||
| Other operating expenses |
35,864 | 35,575 | 146,699 | 149,946 | ||||||||||||
| Maintenance |
10,792 | 6,038 | 38,987 | 32,808 | ||||||||||||
| Depreciation and amortization |
26,099 | 27,070 | 105,746 | 106,807 | ||||||||||||
| Taxes other than income |
5,246 | 6,099 | 22,921 | 24,593 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Operating Expenses |
173,073 | 189,590 | 717,466 | 846,827 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME |
45,007 | 49,184 | 171,433 | 180,995 | ||||||||||||
| OTHER INCOME (EXPENSE): |
||||||||||||||||
| Interest expense (net of AFUDC-debt: $539, $326, $1,948 and $1,912) |
(16,854 | ) | (17,373 | ) | (67,435 | ) | (68,514 | ) | ||||||||
| Interest income (expense) on regulatory items |
(1,520 | ) | (2,560 | ) | (7,749 | ) | (9,348 | ) | ||||||||
| AFUDC-equity |
700 | 523 | 2,575 | 2,883 | ||||||||||||
| Other income |
2,206 | 2,472 | 6,883 | 16,748 | ||||||||||||
| Other expense |
(7,221 | ) | (2,430 | ) | (14,624 | ) | (9,985 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Other Income (Expense) |
(22,689 | ) | (19,368 | ) | (80,350 | ) | (68,216 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income Before Income Tax Expense |
22,318 | 29,816 | 91,083 | 112,779 | ||||||||||||
| Income tax expense |
7,856 | 10,338 | 31,197 | 40,404 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME |
14,462 | 19,478 | 59,886 | 72,375 | ||||||||||||
| Other comprehensive income (loss): |
||||||||||||||||
| Change in compensation retirement benefits liability and amortization (Net of taxes $556, $130, ($645) and $116) |
(995 | ) | (242 | ) | 1,236 | (215 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| COMPREHENSIVE INCOME |
$ | 13,467 | $ | 19,236 | $ | 61,122 | $ | 72,160 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
SIERRA PACIFIC POWER COMPANY
OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| Residential |
558 | 620 | (10.0 | )% | 2,231 | 2,465 | (9.5 | )% | ||||||||||||||||
| Commercial |
687 | 723 | (5.0 | )% | 2,852 | 3,017 | (5.5 | )% | ||||||||||||||||
| Industrial |
678 | 663 | 2.3 | % | 2,565 | 2,599 | (1.3 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL RETAIL |
1,923 | 2,006 | (4.1 | )% | 7,648 | 8,081 | (5.4 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
ELECTRIC SALES - MWh’s (EXCLUDING CALIFORNIA)*
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | Change From Prior Year |
Average Change in Customers |
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
|||||||||||||||||||||||||
| Residential |
558 | 549 | 1.6 | % | 0.6 | % | 2,231 | 2,188 | 2.0 | % | 0.4 | % | ||||||||||||||||||||
| Commercial |
687 | 685 | 0.3 | % | 1.4 | % | 2,852 | 2,861 | (0.3 | )% | 0.9 | % | ||||||||||||||||||||
| Industrial |
678 | 633 | 7.1 | % | (1.8 | )% | 2,565 | 2,483 | 3.3 | % | (1.8 | )% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| TOTAL RETAIL |
1,923 | 1,867 | 3.0 | % | 0.7 | % | 7,648 | 7,532 | 1.5 | % | 0.4 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| * | Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011. |
GAS SALES - Dth
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| TOTAL RETAIL |
5,188 | 4,631 | 12.0 | % | 15,781 | 14,739 | 7.1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
ELECTRIC SOURCES - MWh’s
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
| Generated |
1,115 | 1,296 | (14.0 | )% | 4,454 | 5,121 | (13.0 | )% | ||||||||||||||||
| Purchased |
1,108 | 867 | 27.8 | % | 4,368 | 3,510 | 24.4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL |
2,223 | 2,163 | 2.8 | % | 8,822 | 8,631 | 2.2 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
CAPITAL STRUCTURE
(dollars in thousands)
| December 31, 2011 | December 31, 2010 | |||||||||||||||
| Long-term debt |
$ | 1,179,326 | 54.8 | % | $ | 1,195,775 | 55.1 | % | ||||||||
| Total shareholder’s equity |
974,542 | 45.2 | % | 973,420 | 44.9 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total capitalization |
$ | 2,153,868 | 100.0 | % | $ | 2,169,195 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy in order to provide information that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a “non-GAAP financial measure” as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.
Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy calculate as operating revenues less energy costs and energy efficiency program costs, provides a measure of income available to support the other operating expenses. Gross margin changes are based primarily on general base rate adjustments (which are required to be filed by statute every three years). Reconciliations between GAAP operating income and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.
NV Energy, Inc.
Consolidated Gross Margin
(dollars in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
| Operating Revenues: |
$ | 609,597 | $ | 655,011 | (6.9 | )% | $ | 2,943,307 | $ | 3,280,222 | (10.3 | )% | ||||||||||||
| Energy Costs: |
||||||||||||||||||||||||
| Fuel for power generation |
160,665 | 170,970 | (6.0 | )% | 680,585 | 821,484 | (17.2 | )% | ||||||||||||||||
| Purchased power |
115,202 | 126,343 | (8.8 | )% | 633,874 | 648,881 | (2.3 | )% | ||||||||||||||||
| Gas purchased for resale |
37,402 | 36,166 | 3.4 | % | 125,155 | 137,702 | (9.1 | )% | ||||||||||||||||
| Deferred energy |
(39,655 | ) | 6,553 | (705.1 | )% | (83,333 | ) | 113,107 | (173.7 | )% | ||||||||||||||
| Energy efficiency program costs |
20,489 | — | N/A | 43,537 | — | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 294,103 | 340,032 | 1,399,818 | 1,721,174 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Gross Margin |
$ | 315,494 | $ | 314,979 | 0.2 | % | $ | 1,543,489 | $ | 1,559,048 | (1.0 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other operating expenses |
102,997 | 93,486 | 411,115 | 414,241 | ||||||||||||||||||||
| Maintenance |
29,990 | 18,852 | 103,307 | 104,567 | ||||||||||||||||||||
| Depreciation and amortization |
91,492 | 83,992 | 357,937 | 333,059 | ||||||||||||||||||||
| Taxes other than income |
14,331 | 15,214 | 60,465 | 62,746 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating Income |
$ | 76,684 | $ | 103,435 | (25.9 | )% | $ | 610,665 | $ | 644,435 | (5.2 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Nevada Power Company
Gross Margin
(dollars in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
| Operating Revenues: |
$ | 391,513 | $ | 416,233 | (5.9 | )% | $ | 2,054,393 | $ | 2,252,377 | (8.8 | )% | ||||||||||||
| Energy Costs: |
||||||||||||||||||||||||
| Fuel for power generation |
119,697 | 119,137 | 0.5 | % | 498,487 | 588,419 | (15.3 | )% | ||||||||||||||||
| Purchased power |
77,519 | 92,963 | (16.6 | )% | 477,226 | 505,239 | (5.5 | )% | ||||||||||||||||
| Deferred energy |
(15,026 | ) | 13,124 | (214.5 | )% | (16,300 | ) | 94,843 | (117.2 | )% | ||||||||||||||
| Energy efficiency program costs |
16,841 | — | N/A | 37,292 | — | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 199,031 | 225,224 | 996,705 | 1,188,501 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Gross Margin |
$ | 192,482 | $ | 191,009 | 0.8 | % | $ | 1,057,688 | $ | 1,063,876 | (0.6 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other operating expenses |
65,087 | 56,762 | 260,127 | 260,535 | ||||||||||||||||||||
| Maintenance |
19,198 | 12,814 | 64,320 | 71,759 | ||||||||||||||||||||
| Depreciation and amortization |
65,393 | 56,922 | 252,191 | 226,252 | ||||||||||||||||||||
| Taxes other than income |
9,045 | 9,061 | 37,254 | 37,918 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating Income |
$ | 33,759 | $ | 55,450 | (39.1 | )% | $ | 443,796 | $ | 467,412 | (5.1 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Sierra Pacific Power Company
Gross Margin
(dollars in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
| Operating Revenues: |
||||||||||||||||||||||||
| Electric |
$ | 170,955 | $ | 187,542 | (8.8 | )% | $ | 716,417 | $ | 836,879 | (14.4 | )% | ||||||||||||
| Gas |
47,125 | 51,232 | (8.0 | )% | 172,482 | 190,943 | (9.7 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 218,080 | 238,774 | (8.7 | )% | 888,899 | 1,027,822 | (13.5 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Energy Costs: |
||||||||||||||||||||||||
| Fuel for power generation |
40,968 | 51,833 | (21.0 | )% | 182,098 | 233,065 | (21.9 | )% | ||||||||||||||||
| Purchased power |
37,683 | 33,380 | 12.9 | % | 156,648 | 143,642 | 9.1 | % | ||||||||||||||||
| Gas purchased for resale |
37,402 | 36,166 | 3.4 | % | 125,155 | 137,702 | (9.1 | )% | ||||||||||||||||
| Deferral of energy - electric - net |
(19,521 | ) | (8,714 | ) | 124.0 | % | (65,445 | ) | 8,475 | (872.2 | )% | |||||||||||||
| Deferral of energy - gas - net |
(5,108 | ) | 2,143 | (338.4 | )% | (1,588 | ) | 9,789 | (116.2 | )% | ||||||||||||||
| Energy efficiency program costs |
3,648 | — | N/A | 6,245 | — | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 95,072 | $ | 114,808 | (17.2 | )% | $ | 403,113 | $ | 532,673 | (24.3 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Gross Margin by Segment: |
||||||||||||||||||||||||
| Electric |
108,177 | 111,043 | (2.6 | )% | 436,871 | 451,697 | (3.3 | )% | ||||||||||||||||
| Gas |
14,831 | 12,923 | 14.8 | % | 48,915 | 43,452 | 12.6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Gross Margin |
$ | 123,008 | $ | 123,966 | (0.8 | )% | $ | 485,786 | $ | 495,149 | (1.9 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Other operating expenses |
35,864 | 35,575 | 146,699 | 149,946 | ||||||||||||||||||||
| Maintenance |
10,792 | 6,038 | 38,987 | 32,808 | ||||||||||||||||||||
| Depreciation and amortization |
26,099 | 27,070 | 105,746 | 106,807 | ||||||||||||||||||||
| Taxes other than income |
5,246 | 6,099 | 22,921 | 24,593 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating Income |
$ | 45,007 | $ | 49,184 | (8.5 | )% | $ | 171,433 | $ | 180,995 | (5.3 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||