Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NEVADA POWER CO | d429197d8k.htm |
| EX-99.1 - PRESS RELEASE - NEVADA POWER CO | d429197dex991.htm |
 Third
Quarter 2012 Financial Results
November 2, 2012
Exhibit 99.2 |
 2
Safe Harbor Statement
This presentation 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, 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. IR Contacts
Max Kuniansky
Britta Carlson
Executive, Investor Relations
Manager, Investor and Shareholder Relations
(702) 402-5627
(702) 402-5624
mkuniansky@nvenergy.com
bcarlson@nvenergy.com |
 Third
Quarter Financial Results Major Drivers
Q3 2012 vs. Q3 2011
NV Energy Consolidated
Pre-Tax Total
After Tax
Gross Margin:
($ millions)
EPS Impact
Rate increase, NVE-South
48.2
$
0.13
$
Usage and customer growth
13.3
0.03
Weather
3.7
0.01
Other:
O&M expense excluding reversal
4.9
0.01
Termination cost reversal (O&M, 2011)
(8.0)
(0.02)
Interest expense
5.5
0.02
Gain on asset sale
5.5
0.02
Trust investments
4.9
0.01 |
 Customer
and Usage Trends Low-use accounts, a proxy for vacant homes, have
decreased to levels not seen since 2008.
NV Energy South
4 |
 5
Customer and Usage Trends
NV Energy North
Change in Average Customers
(% change, quarter vs. prior year; retail)
Low-Use Customer Accounts
(% of Residential Customers)
The trend in low-use accounts remains favorable.
|
 EPS
Impact of Weather: Actual vs. Normal* 2011
Weather benefited earnings by $0.04 in Q3 2012 compared to
historically normal conditions.
* Estimates. Normal = 20-year average.
2012
No
Impact
$(0.04)
$0.03
$(0.01)
Q1
Q2
Q3
Q4
$(0.02)
$0.07
$0.04
Q1
Q2
Q3
6 |
 Cost
Control O&M virtually unchanged year-over-year
Periods ended September 30
$ millions
* Includes $8.0 million benefit from termination cost reversal
$116.0 *
$119.1
2011
2012
Three Months
$381.4 *
$383.3
2011
2012
Nine Months
7 |
 8
Outlook: 2012
Guidance is based on ongoing, normalized EPS for the fourth
quarter of 2012, excluding unexpected events such as plant
outages, required regulatory accounting adjustments, etc.
For further information see forward –looking statements and risk factors in
2011 SEC Form 10-K and Form 10-Q for periods ended March 31,
2012 and June 30, 2012. Assumptions
Weather
Actual for first 9 months, normal for Q4
Gross margin
Actual for first 9 months, ~1% increase* for
Q4 from customer growth
O&M expense
Flat
Depreciation, AFUDC
Harry Allen plant, capital expenditures
Interest expense
Decrease due to 2011 refinancings, debt
reduction
* Excludes NVE-S rate increase effective January 1
2012 Earnings Guidance: $1.30 -
$1.40 / share |
 9
Increase in 2012 Earnings Guidance
Since inception; per diluted share
* Estimate. Normal = 20-year average.
Guidance
Change
May 8, 2012
$1.15 - $1.25
Weather vs. normal*
0.09
$
Usage
0.04
All other
0.02
$
November 2, 2012
$1.30 - $1.40
|
  10
EPS Impact: Adjustments & Other Items
Favorable (Unfavorable)
1
Estimates. Normal = 20-year average.
2
Energy efficiency implementation rate
12 Months Ended
9 Months Ended
Dec. 31, 2011
Sept. 30, 2012
Weather vs. normal
(0.02)
$
0.09
$
EEIR adjustment (Q2)
(0.03)
Termination cost reversal (Q3)
0.02
Regulatory adjustment/reserves (Q4)
(0.05)
Settlement (Q2)
0.01
Gain on asset sale (Q3)
0.02
1
2 |
 Decreasing Capital Expenditures
$1,536
$1,166
A Key Driver of Free Cash Flow
* Gross expenditures, including contributions in aid of construction, debt AFUDC,
and net salvage. Forecast includes environmental expenditures for which the
company plans to seek PUCN approval. $843
$629
$621
$490
$490
$420
$445
$440
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
$ millions*
Base
Environmental
All Other
11 |
 Third Quarter is Key to 12-Month Results
Earnings Per Share (diluted)
$0.01
$0.05
$0.73
$(0.11)
$0.05
$0.29
$0.94
Q1
Q2
Q3
Q4
2011
2012
Q1
Q2
Q3
Q4
Year
2007
$0.07
$0.12
$0.69
$0.02
$0.89
2008
0.10
0.15
0.64
(0.01)
0.89
2009
(0.09)
0.08
0.78
0.02
0.78
2010
(0.01)
0.16
0.75
0.06
0.96
2011
0.01
0.05
0.73
(0.11)
0.69
2012
0.05
0.29
0.94
Summer weather in southern Nevada
can
significantly affect financial results.
12 |
 13
Key Expected Regulatory Filings and
Decisions through 2014
NVE-S
IRP
In merger filing, NVE will request that the resulting merged company general rate
filing follow the NVE-S schedule. Merger
Filing
Decision expected by year-end 2012
To be filed approximately 6 months before completion of ON Line
Current statutory schedule: NVE-N, June 2013; NVE-S, June 2014
General
Rate Filings |