exhibit99-2.htm

EXHIBIT 99.2

Funds from Operations (“FFO”) and Adjusted FFO, which is FFO adjusted to account for cash inflows or outflows associated with the deferred energy accounts, are presented here because NV Energy, Inc. (the “Company”) believes that these measures are useful to investors because the rating agencies use these measures when determining a company’s credit ratings. The cost of the Company’s debt, the ability of the Company’s subsidiaries to pay dividends to the Company, and other capital and operational costs and expenses are impacted by the Company’s credit ratings. The Company believes that net income (loss) is the most directly comparable GAAP measure to FFO.

Since FFO excludes certain items includable in net income (loss), reliance on the measure has limitations; management compensates for these limitations by using the measure simply as a supplemental measure that is weighed in the balance with other GAAP measures. FFO is not necessarily an indication of the Company’s cash flow available to fund cash needs. Additionally, it should not be used as an alternative to net income (loss) when evaluating the Company’s financial performance or to cash flow from (used by) operating, investing and financing activities when evaluating the Company’s liquidity or ability to make cash distributions or pay debt service. The FFO presented by the Company may not be comparable to the FFO presented by other utility companies.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
NV Energy, Inc.
Funds From Operations (FFO)
	Three Months ended March 31,						Year Ended December 31,									LTM March 31,
	2010			2009			2009			2008			2007			2010

Net Income (Loss)	$	(1,721	)	$	(22,244	)	$	182,936		$	208,887		$	197,295		$	203,459

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization		80,948			78,048			321,921			260,608			235,532			324,821
Deferred taxes and deferred investment tax credit		1,284			5,264			111,219			52,060			79,337			107,239
AFUDC (1) (debt and equity)		(10,892	)		(11,364	)		(44,503	)		(67,968	)		(57,776	)		(44,031	)
Carrying charge on Lenzie Generating Station		-			-			-			-			(16,080	)		-
Reinstated interest on deferred energy		-			-			-			-			(11,076	)		-
Gain on sale of investment		-			-			-			-			(1,369	)		-
Other, net		21,206			16,836			(2,004	)		100,482			71,543			2,366
FFO (before deferred energy)		90,825			66,540			569,569			554,069			497,406			593,854
Deferred energy		26,824			45,803			306,406			2,717			309,587			287,427
Adjusted FFO	$	117,649		$	112,343		$	875,975		$	556,786		$	806,993		$	881,281

Long-term debt	$	5,546,626		$	5,485,643		$	5,303,357		$	5,266,982		$	4,137,864		$	5,546,626
Current maturities of long-term debt		7,785			8,885			134,474			9,291			110,285			7,785
Total Debt	$	5,554,411		$	5,494,528		$	5,437,831		$	5,276,273		$	4,248,149		$	5,554,411


Interest expense (net of AFUDC(1) - debt)	$	80,064		$	82,633		$	334,314		$	300,857		$	279,788		$	331,745
AFUDC (1) (debt)		4,939			5,146			20,229			29,527			25,967			20,022
Adjusted Interest Expense	$	85,003		$	87,779		$	354,543		$	330,384		$	305,755		$	351,767

Total Debt/FFO								9.55	x		9.52	x		8.54	x		9.35	x
Total Debt/Adjusted FFO								6.21	x		9.48	x		5.26	x		6.30	x
FFO Adjusted Interest Coverage								2.61	x		2.68	x		2.63	x		2.69	x
Adjusted FFO Interest Coverage								3.47	x		2.69	x		3.64	x		3.51	x
Shareholders' Equity							$	3,223,922		$	3,131,186		$	2,996,575		$	3,197,525
Total Capitalization (including current maturities of long-term debt)							$	8,661,753		$	8,407,459		$	7,244,724		$	8,751,936
Total Debt/Total Capitalization								62.78	%		62.76	%		58.64	%		63.46	%

(1) Allowance for borrowed funds used during construction or allowance for equity funds used during construction.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Nevada Power Company
Funds From Operations (FFO)
	Three Months ended March 31,						Year Ended December 31,									LTM March 31,
	2010			2009			2009			2008			2007			2010

Net Income (Loss)	$	(12,326	)	$	(35,151	)	$	134,284		$	151,431		$	165,694		$	157,109

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization		55,101			52,363			215,873			171,080			152,139			218,611
Deferred taxes and deferred investment tax credit		(3,990	)		19,424			96,831			45,039			56,868			73,417
AFUDC (1) (debt and equity)		(9,894	)		(10,183	)		(38,209	)		(45,980	)		(29,057	)		(37,920	)
Carrying charge on Lenzie Generating Station		-			-			-			-			(16,080	)		-
Reinstated interest on deferred energy		-			-			-			-			(11,076	)		-
Other, net		14,267			10,269			(34,291	)		73,209			38,821			(30,293	)
FFO (before deferred energy)		43,158			36,722			374,488			394,779			357,309			380,924
Deferred energy		24,695			35,928			216,629			4,211			218,992			205,396
Adjusted FFO	$	67,853		$	72,650		$	591,117		$	398,990		$	576,301		$	586,320

Long-term debt	$	3,779,120		$	3,596,840		$	3,535,440		$	3,385,106		$	2,528,141		$	3,779,120
Current maturities of long-term debt		7,785			8,885			119,474			8,691			8,642			7,785
Total Debt	$	3,786,905		$	3,605,725		$	3,654,914		$	3,393,797		$	2,536,783		$	3,786,905

Interest expense (net of AFUDC(1) - debt)	$	53,356		$	55,043		$	226,252		$	186,822		$	174,667		$	224,565
AFUDC (1) (debt)		4,532			4,562			17,184			20,063			13,196			17,154
Adjusted Interest Expense	$	57,888		$	59,605		$	243,436		$	206,885		$	187,863		$	241,719

Total Debt/FFO								9.76	x		8.60	x		7.10	x		9.94	x
Total Debt/Adjusted FFO								6.18	x		8.51	x		4.40	x		6.46	x
FFO Adjusted Interest Coverage								2.54	x		2.91	x		2.90	x		2.58	x
Adjusted FFO Interest Coverage								3.43	x		2.93	x		4.07	x		3.43	x
Shareholder's Equity							$	2,650,039		$	2,627,567		$	2,376,740		$	2,610,729
Total Capitalization (including current maturities of long-term debt)							$	6,304,953		$	6,021,364		$	4,913,523		$	6,397,634
Total Debt/Total Capitalization								57.97	%		56.36	%		51.63	%		59.19	%

(1) Allowance for borrowed funds used during construction or allowance for equity funds used during construction.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Sierra Pacific Power Company
Funds From Operations (FFO)
	Three Months ended March 31,						Year Ended December 31,									LTM March 31,
	2010			2009			2009			2008			2007			2010

Net Income	$	17,120		$	19,136		$	73,085		$	90,582		$	65,667		$	71,069

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization		25,847			25,685			106,048			89,528			83,393			106,210
Deferred taxes and deferred investment tax credit		7,534			8,597			32,548			24,598			(36,713	)		31,485
AFUDC (1) (debt and equity)		(998	)		(1,181	)		(6,293	)		(21,988	)		(28,719	)		(6,110	)
Other, net		6,494			6,395			30,368			22,872			29,451			30,467
FFO (before deferred energy)		55,997			58,632			235,756			205,592			113,079			233,121
Deferred energy		2,129			9,875			89,777			(1,494	)		90,595			82,031
Adjusted FFO	$	58,126		$	68,507		$	325,533		$	204,098		$	203,674		$	315,152

Long-term debt	$	1,281,863		$	1,402,964		$	1,282,225		$	1,395,987		$	1,084,550		$	1,281,863
Current maturities of long-term debt		-			-			15,000			600			101,643			-
Total Debt	$	1,281,863		$	1,402,964		$	1,297,225		$	1,396,587		$	1,186,193		$	1,281,863


Interest expense (net of AFUDC(1) - debt)	$	17,045		$	17,927		$	69,413		$	72,712		$	60,735		$	68,531
AFUDC (1) (debt)		407			584			3,044			9,464			12,771			2,867
Adjusted Interest Expense	$	17,452		$	18,511		$	72,457		$	82,176		$	73,506		$	71,398

Total Debt/FFO								5.50	x		6.79	x		10.49	x		5.50	x
Total Debt/Adjusted FFO								3.98	x		6.84	x		5.82	x		4.07	x
FFO Adjusted Interest Coverage								4.25	x		3.50	x		2.54	x		4.27	x
Adjusted FFO Interest Coverage								5.49	x		3.48	x		3.77	x		5.41	x
Shareholder's Equity							$	1,009,258		$	877,961		$	1,001,840		$	1,013,388
Total Capitalization (including current maturities of long-term debt)							$	2,306,483		$	2,274,548		$	2,188,033		$	2,295,251
Total Debt/Total Capitalization								56.24	%		61.40	%		54.21	%		55.85	%

(1) Allowance for borrowed funds used during construction or allowance for equity funds used during construction.