NEVADA POWER CO - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - NEVADA POWER CO	d429197d8k.htm
EX-99.2 - SUPPLEMENTAL SLIDES - NEVADA POWER CO	d429197dex992.htm

Exhibit 99.1

LOGO

November 2, 2012

Analyst Contacts: Max Kuniansky, (702) 402-5627

Britta Carlson, (702) 402-5624

Media Contact: Karl Walquist, (775) 834-3891

NV Energy Reports Strong Third Quarter Results; Increases Earnings Guidance for 2012

Las Vegas – NV Energy, Inc. (NYSE: NVE) today announced financial results for the three-and nine-month periods ended September 30, 2012.

NV Energy, Inc.

Consolidated Results

Periods Ended September 30


	Net Income ($ in millions)				EPS (diluted)
	Net Income ($ in millions)				EPS (diluted)
	2012		2011		2012		2011
Three Months	$	223.2	$	173.5	$	0.94	$	0.73
Nine Months		304.8		188.7		1.28		0.80

“Our strong third quarter results were largely due to higher earnings from the investment in the Harry Allen Generating Station, increased electricity sales, and lower interest expense,” said Michael Yackira, NV Energy president and chief executive officer. “Our investments in generating capacity over the past five years have enabled us to increase Nevada’s energy independence while maintaining residential customer rates at about the same level as five years ago. Our cost control efforts remain on track. Operating and maintenance expenses for 2012 to date are virtually unchanged from last year.”

The increased electricity sales in the third quarter were primarily due to increased customer usage independent of weather effects, and customer growth. Warmer weather increased earnings by approximately $0.01 per share for the third quarter of 2012 compared to the same period a year ago. Weather was hotter than normal for both quarterly periods, benefiting earnings by about $0.04 per share for the third quarter of 2012, and about $0.03 per share for the same period in 2011, compared to historically normal conditions. For information on cooling and heating degree-days and electricity sales, see the Operating Statistics section of this news release.

In the quarter ended September 30, 2012, NV Energy recorded a $0.02 per share ($5.5 million pre-tax) gain on a previously disclosed asset sale.

Earnings Guidance

NV Energy’s last earnings guidance statement, dated July 27, 2012, indicated that the company expected to earn between $1.15 and $1.25 per share for 2012, with the potential for earnings to be at the upper end of that range assuming normal weather in the second half of the year.

Aided in part by warmer-than-normal weather, results for 2012 to date have exceeded the company’s expectations, and NV Energy is revising its earnings guidance accordingly. The company now expects to earn between $1.30 and $1.40 per share for calendar year 2012, assuming normal weather in the fourth quarter.

Key factors expected to drive financial results in 2012 are shown in the “Third Quarter 2012: Financial Results” presentation posted on www.nvenergy.com this morning.

Webcast Scheduled for 7 a.m. PDT today, Friday, November 2, 2012

Senior management of NV Energy will review the company's third quarter 2012 financial results and other matters during a conference call and live webcast today, Friday, November 2, at 7 a.m. Pacific Daylight Time.

The webcast will be accessible on the NV Energy website at: www.nvenergy.com. A taped replay will be available on the company’s website and by telephone 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 260407.

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 within the meaning of the Private Securities Litigation Reform Act of 1995 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. Forward-looking statements include earnings guidance and estimates or forecasts of operating and financial metrics. These statements reflect current expectations of future conditions and events and as such are subject to a variety of risks, uncertainties and assumptions that could cause actual results to differ materially from current expectations. These risks, uncertainties and assumptions 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, construction risks, including but not limited to those associated with the ON Line project, 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. Further risks, uncertainties and assumptions that may cause actual results to differ from current expectations pertain to weather conditions, customer and sales growth, plant outages, operations and maintenance expense, depreciation and allowance for funds used during construction, interest rates and expense, cash flow and regulatory matters. 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 Annual Reports on Form 10-K for the year ended December 31, 2011, and quarterly reports on Form 10-Q for the periods ended March 31, 2012 and June 30, 2012, 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)

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
OPERATING REVENUES	$	1,026,488		$	1,017,796		$	2,378,606		$	2,333,710

OPERATING EXPENSES:
Fuel for power generation		171,316			216,779			400,936			519,920
Purchased power		205,686			223,348			486,894			518,672
Gas purchased for resale		5,382			10,137			46,491			87,753
Deferred energy		(29,036	)		(33,620	)		(30,285	)		(43,678	)
Energy efficiency program costs		32,584			23,047			76,609			23,047
Other operating expenses		100,108			104,598			307,080			308,119
Maintenance		19,014			11,369			76,190			73,317
Depreciation and amortization		94,512			93,737			281,690			266,445
Taxes other than income		15,682			15,205			44,457			46,134

Total Operating Expenses		615,248			664,600			1,690,062			1,799,729

OPERATING INCOME		411,240			353,196			688,544			533,981

OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt: $1,976, $1,326, $5,479 and $10,371)		(73,667	)		(80,496	)		(226,162	)		(238,718	)
Interest income (expense) on regulatory items		(2,024	)		(1,282	)		(6,203	)		(3,549	)
AFUDC-equity		2,415			1,690			6,666			12,854
Other income		8,827			1,611			19,312			6,351
Other expense		(4,209	)		(9,857	)		(11,909	)		(23,600	)

Total Other Income (Expense)		(68,658	)		(88,334	)		(218,296	)		(246,662	)

Income Before Income Tax Expense		342,582			264,862			470,248			287,319

Income tax expense		119,412			91,400			165,466			98,639


NET INCOME		223,170			173,462			304,782			188,680

Other comprehensive income (loss):
Change in compensation retirement benefits liability and amortization (Net of taxes $(74), $(293), $(246) and $(1,302))		155			544			464			2,417
Change in market value of risk management assets and liabilities (Net of taxes $91, $0, $355 and $0)		(193	)		—			(668	)		—

OTHER COMPREHENSIVE INCOME (LOSS)		(38	)		544			(204	)		2,417

COMPREHENSIVE INCOME	$	223,132		$	174,006		$	304,578		$	191,097

Amount per share basic and diluted
Net income per share - basic	$	0.95		$	0.74		$	1.29		$	0.80
Net income per share - diluted	$	0.94		$	0.73		$	1.28		$	0.80
Weighted Average Shares of Common Stock Outstanding - basic		235,961,402			235,990,373			235,986,874			235,796,321

Weighted Average Shares of Common Stock Outstanding - diluted		238,121,732			237,901,330			237,850,530			237,320,796

Dividends Declared Per Share of Common Stock	$	0.17		$	0.12		$	0.47		$	0.36

NV ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Share Amounts)

(Unaudited)


	September 30, 2012		December 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	207,903	$	145,944
Accounts receivable less allowance for uncollectible accounts: 2012 - $9,750; 2011 - $8,150		511,107		355,091
Materials, supplies and fuel, at average cost		147,984		129,663
Current income taxes receivable		—		82
Deferred income taxes		165,015		104,958
Other current assets		47,172		36,782

Total Current Assets		1,079,181		772,520


Utility Property:
Plant in service		12,074,285		11,923,717
Construction work-in-progress		658,494		487,427

Total		12,732,779		12,411,144
Less accumulated provision for depreciation		3,351,132		3,184,071

Total Utility Property, Net		9,381,647		9,227,073

Investments and other property, net		58,666		57,021

Deferred Charges and Other Assets:
Deferred energy		90,244		102,525
Regulatory assets		1,121,185		1,186,127
Regulatory asset for pension plans		207,137		215,656
Other deferred charges and assets		77,999		74,206

Total Deferred Charges and Other Assets		1,496,565		1,578,514


TOTAL ASSETS	$	12,016,059	$	11,635,128

(Continued)

NV ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands, Except Share Amounts)

(Unaudited)


	September 30, 2012			December 31, 2011
LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:
Current maturities of long-term debt	$	258,024		$	139,985
Accounts payable		322,940			312,990
Accrued expenses		101,199			128,144
Deferred energy		214,181			245,164
Other current liabilities		68,172			65,572

Total Current Liabilities		964,516			891,855


Long-term debt		4,766,563			5,008,931

Commitments and Contingencies

Deferred Credits and Other Liabilities:
Deferred income taxes		1,546,998			1,306,510
Deferred investment tax credit		14,109			16,140
Accrued retirement benefits		79,405			92,351
Regulatory liabilities		541,823			486,259
Other deferred credits and liabilities		507,417			427,003

Total Deferred Credits and Other Liabilities		2,689,752			2,328,263


Shareholders’ Equity:
Common stock, $1.00 par value; 350 million shares authorized; 235,999,750 issued for 2012 and 2011; 235,747,750 and 235,999,750 outstanding for 2012 and 2011, respectively		236,000			236,000
Treasury stock, at cost, 252,000 shares and 0 shares for 2012 and 2011, respectively		(4,509	)		—
Other paid-in capital		2,713,736			2,713,736
Retained earnings		658,139			464,277
Accumulated other comprehensive loss		(8,138	)		(7,934	)

Total Shareholders' Equity		3,595,228			3,406,079


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	12,016,059		$	11,635,128

(Concluded)

NV ENERGY, INC.

FREE CASH FLOW AND CONSOLIDATED OPERATING STATISTICS

(Unaudited)

FREE CASH FLOW

(dollars in thousands)


	Nine Months Ended September 30,
	2012		2011			Change from Prior Year
Free Cash Flow*	$	256,404	$	(2,836	)		N/A

*	Free cash flow is a non-GAAP financial measure as defined by the SEC. See the “Non-GAAP Financial Measures” section for additional information and GAAP reconciliation.

ELECTRIC SALES - MWh’s

(in thousands)


	Three Months Ended September 30,										Nine Months Ended September 30,
	2012		2011		Change from Prior Year			Change in Average Customers			2012		2011		Change from Prior Year			Change in Average Customers
Residential		4,419		4,323		2.2	%		1.2	%		9,356		8,694		7.6	%		1.3	%
Commercial		2,223		2,141		3.8	%		0.8	%		5,713		5,472		4.4	%		0.3	%
Industrial		2,831		2,712		4.4	%		(0.4	)%		7,841		7,680		2.1	%		(1.7	)%

TOTAL RETAIL		9,473		9,176		3.2	%		1.1	%		22,910		21,846		4.9	%		1.1	%

GAS SALES - Dth

(in thousands)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		Change from Prior Year			2012		2011		Change from Prior Year
Residential		642		638		0.6	%		5,613		6,318		(11.2	)%
Commercial		374		389		(3.9	)%		2,939		3,228		(9.0	)%
Industrial		153		160		(4.4	)%		876		1,047		(16.3	)%

TOTAL RETAIL		1,169		1,187		(1.5	)%		9,428		10,593		(11.0	)%

ELECTRIC SOURCES - MWh’s

(in thousands)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		Change from Prior Year			2012		2011		Change from Prior Year
Generated		6,617		6,180		7.1	%		16,093		14,477		11.2	%
Purchased		3,363		3,577		(6.0	)%		8,446		9,081		(7.0	)%

TOTAL		9,980		9,757		2.3	%		24,539		23,558		4.2	%

DEGREE DAYS


	Three Months Ended September 30,												Nine Months Ended September 30,
	2012		2011		Normal*		% Change From						2012		2011		Normal*		% Change From
	2012		2011		Normal*		Prior Year			Normal			2012		2011		Normal*		Prior Year			Normal
SOUTH
Heating		—		—		—		N/A			N/A			986		1,131		1,112		(12.8	)%		(11.3	)%
Cooling		2,313		2,312		2,209		—	%		4.7	%		3,771		3,329		3,390		13.3	%		11.2	%
NORTH
Heating		1		3		69		(66.7	)%		(98.6	)%		2,677		3,201		3,012		(16.4	)%		(11.1	)%
Cooling		1,020		848		699		20.3	%		45.9	%		1,255		960		878		30.7	%		42.9	%

*	Normal = 20-year average

NEVADA POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
OPERATING REVENUES	$	802,334		$	798,914		$	1,751,165		$	1,662,880

OPERATING EXPENSES:
Fuel for power generation		123,992			162,976			285,799			378,790
Purchased power		171,687			181,733			388,494			399,707
Deferred energy		(22,685	)		(10,354	)		(15,461	)		(1,274	)
Energy efficiency program costs		28,492			20,451			65,466			20,451
Other operating expenses		65,372			68,004			200,484			195,040
Maintenance		12,533			3,460			52,594			45,122
Depreciation and amortization		66,975			67,212			201,096			186,798
Taxes other than income		9,743			9,105			26,793			28,209

Total Operating Expenses		456,109			502,587			1,205,265			1,252,843

OPERATING INCOME		346,225			296,327			545,900			410,037

OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt: $1,528, $842, $4,021 and $8,962)		(51,784	)		(55,267	)		(158,791	)		(163,036	)
Interest income (expense) on regulatory items		(1,623	)		(82	)		(5,488	)		679
AFUDC-equity		1,833			1,026			4,823			10,979
Other income		7,096			594			14,197			2,708
Other expense		(2,823	)		(7,324	)		(7,162	)		(15,235	)

Total Other Expense		(47,301	)		(61,053	)		(152,421	)		(163,905	)

Income Before Income Tax Expense		298,924			235,274			393,479			246,132

Income tax expense		103,754			80,666			137,328			84,481


NET INCOME		195,170			154,608			256,151			161,651

Other comprehensive income:
Change in compensation retirement benefits liability and amortization (Net of taxes $(33), $(41), $(103) and $(554))		65			75			192			1,028


COMPREHENSIVE INCOME	$	195,235		$	154,683		$	256,343		$	162,679

NEVADA POWER COMPANY

CONSOLIDATED OPERATING STATISTICS

(Unaudited)

ELECTRIC SALES - MWh’s

(in thousands)


	Three Months Ended September 30,										Nine Months Ended September 30,
	2012		2011		Change from Prior Year			Change in Average Customers			2012		2011		Change from Prior Year			Change in Average Customers
Residential		3,752		3,711		1.1	%		1.2	%		7,619		7,021		8.5	%		1.4	%
Commercial		1,374		1,319		4.2	%		0.9	%		3,480		3,307		5.2	%		0.5	%
Industrial		2,145		2,070		3.6	%		(0.7	)%		5,836		5,793		0.7	%		(2.0	)%

TOTAL RETAIL		7,271		7,100		2.4	%		1.2	%		16,935		16,121		5.0	%		1.3	%

ELECTRIC SOURCES - MWh’s

(in thousands)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		Change from Prior Year			2012		2011		Change from Prior Year
Generated		5,105		4,879		4.6	%		12,264		11,138		10.1	%
Purchased		2,392		2,520		(5.1	)%		5,415		5,821		(7.0	)%

TOTAL		7,497		7,399		1.3	%		17,679		16,959		4.2	%

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
OPERATING REVENUES:
Electric	$	212,073		$	202,263		$	549,886		$	545,462
Gas		12,077			16,615			77,543			125,357

Total Operating Revenues		224,150			218,878			627,429			670,819


OPERATING EXPENSES:
Fuel for power generation		47,324			53,803			115,137			141,130
Purchased power		33,999			41,615			98,400			118,965
Gas purchased for resale		5,382			10,137			46,491			87,753
Deferral of energy - electric - net		(5,498	)		(22,095	)		(13,854	)		(45,924	)
Deferral of energy - gas - net		(853	)		(1,171	)		(970	)		3,520
Energy efficiency program costs		4,092			2,596			11,143			2,596
Other operating expenses		34,128			35,933			104,214			110,836
Maintenance		6,481			7,909			23,596			28,195
Depreciation and amortization		27,537			26,525			80,594			79,647
Taxes other than income		5,894			6,052			17,382			17,675

Total Operating Expenses		158,486			161,304			482,133			544,393

OPERATING INCOME		65,664			57,574			145,296			126,426

OTHER INCOME (EXPENSE):
Interest expense (net of AFUDC-debt: $448, $484, $1,458 and $1,409)		(15,298	)		(16,861	)		(47,650	)		(50,581	)
Interest expense on regulatory items		(401	)		(1,200	)		(715	)		(4,228	)
AFUDC-equity		582			664			1,843			1,875
Other income		1,399			810			4,181			2,676
Other expense		(998	)		(2,255	)		(3,609	)		(7,403	)

Total Other Income (Expense)		(14,716	)		(18,842	)		(45,950	)		(57,661	)

Income Before Income Tax Expense		50,948			38,732			99,346			68,765

Income tax expense		16,521			13,396			33,596			23,341


NET INCOME		34,427			25,336			65,750			45,424

Other comprehensive income:
Change in compensation retirement benefits liability and amortization (Net of taxes $(22), $(150), $(68) and $(1,201))		42			279			127			2,230


COMPREHENSIVE INCOME	$	34,469		$	25,615		$	65,877		$	47,654

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED OPERATING STATISTICS

(Unaudited)

ELECTRIC SALES - MWh’s

(in thousands)


	Three Months Ended September 30,										Nine Months Ended September 30,
	2012		2011		Change from Prior Year			Change in Average Customers			2012		2011		Change from Prior Year			Change in Average Customers
Residential		667		612		9.0	%		1.0	%		1,737		1,673		3.8	%		0.7	%
Commercial		849		822		3.3	%		0.7	%		2,233		2,165		3.1	%		(0.2	)%
Industrial		686		642		6.9	%		4.4	%		2,005		1,887		6.3	%		2.8	%

TOTAL RETAIL		2,202		2,076		6.1	%		0.9	%		5,975		5,725		4.4	%		0.6	%

GAS SALES - Dth

(in thousands)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		Change from Prior Year			2012		2011		Change from Prior Year
Residential		642		638		0.6	%		5,613		6,318		(11.2	)%
Commercial		374		389		(3.9	)%		2,939		3,228		(9.0	)%
Industrial		153		160		(4.4	)%		876		1,047		(16.3	)%

TOTAL RETAIL		1,169		1,187		(1.5	)%		9,428		10,593		(11.0	)%

ELECTRIC SOURCES - MWh’s

(in thousands)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2012		2011		Change from Prior Year			2012		2011		Change from Prior Year
Generated		1,512		1,301		16.2	%		3,829		3,339		14.7	%
Purchased		971		1,057		(8.1	)%		3,031		3,260		(7.0	)%

TOTAL		2,483		2,358		5.3	%		6,860		6,599		4.0	%

Non-GAAP Financial Measures

Free Cash Flow

“Free cash flow” meets the definition of a non-GAAP financial measure. NV Energy, Inc. defines free cash flow as net cash from operating activities less additions to utility plant (excluding AFUDC-equity). Since free cash flow is not a measure of liquidity calculated in accordance with GAAP, it should be considered in addition to, but not as a substitute for, the GAAP measure net cash from operating activities.

NV Energy, Inc. considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated from operations after capital expenditures that may be available for increasing its common stock dividend payout ratio, strengthening its capital structure, and considering new investment opportunities.

NV Energy, Inc.’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. The table below provides a reconciliation between GAAP net cash from operating activities and non-GAAP free cash flow (dollars in thousands).


	Nine Months Ended September 30,
	2012			2011			Change from Prior Year
Net Cash from Operating Activities	$	644,194		$	467,034			37.9	%
Less Additions to Utility Plant (Excluding AFUDC-Equity)		(387,790	)		(469,870	)		(17.5	)%

Free Cash Flow	$	256,404		$	(2,836	)		N/A

Gross Margin

NV Energy, Inc. presents gross margin in order to aid the reader in determining how profitable the utilities’ electric and gas businesses are 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.

NV Energy, Inc. believes presenting gross margin allows the reader to assess the impact of the utilities’ 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 regulated utility electric and natural gas supply costs versus the fixed rates collected from utility 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 utility customers. Gross margin, which NV Energy, Inc. calculates as operating revenues less energy and energy efficiency program costs, provides a measure of income available to support the other operating expenses of the utilities. Gross margin changes are based primarily on the utilities’ general base rate adjustments (which are required to be filed by statute every three years). These non-GAAP measures should not be considered as substitutes for the GAAP measures. Reconciliations between GAAP operating income and gross margin are provided in the table below (dollars in thousands).


	Three Months Ended September 30,									Nine Months Ended September 30,
	2012			2011			Change from Prior Year			2012			2011			Change from Prior Year
Operating Revenues:	$	1,026,488		$	1,017,796			0.9	%	$	2,378,606		$	2,333,710			1.9	%

Energy Costs:
Fuel for power generation		171,316			216,779			(21.0	)%		400,936			519,920			(22.9	)%
Purchased power		205,686			223,348			(7.9	)%		486,894			518,672			(6.1	)%
Gas purchased for resale		5,382			10,137			(46.9	)%		46,491			87,753			(47.0	)%
Deferred energy		(29,036	)		(33,620	)		(13.6	)%		(30,285	)		(43,678	)		(30.7	)%
Energy efficiency program costs		32,584			23,047			41.4	%		76,609			23,047			232.4	%

Total Costs	$	385,932		$	439,691			(12.2	)%	$	980,645		$	1,105,714			(11.3	)%


Gross Margin	$	640,556		$	578,105			10.8	%	$	1,397,961		$	1,227,996			13.8	%


Other operating expenses		100,108			104,598						307,080			308,119
Maintenance		19,014			11,369						76,190			73,317
Depreciation and amortization		94,512			93,737						281,690			266,445
Taxes other than income		15,682			15,205						44,457			46,134


Operating Income	$	411,240		$	353,196			16.4	%	$	688,544		$	533,981			28.9	%

NEVADA POWER CO - FORM 8-K - EX-99.1 - PRESS RELEASE - November 2, 2012

Attached files

NEVADA POWER CO Reports