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 is the most directly comparable GAAP measure to FFO.

Since FFO excludes certain items includable in net income, 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 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)
	Nine Months ended September 30,						Year Ended December 31,									LTM September 30,
	2010			2009			2009			2008			2007			2010
Net Income	$	217,971		$	178,785		$	182,936		$	208,887		$	197,295		$	222,122
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		249,067			240,912			321,921			260,608			235,532			330,076
Deferred taxes and deferred investment tax credit		129,459			115,389			111,219			52,060			79,337			125,289
AFUDC(1) (debt and equity)		(38,264	)		(34,940	)		(44,503	)		(67,968	)		(57,776	)		(47,827	)
Carrying charge on Lenzie Generating Station		-			-			-			-			(16,080	)		-
Reinstated interest on deferred energy		-			-			-			-			(11,076	)		-
Gain on sale of asset		(7,575	)		-			-			-			(1,369	)		(7,575	)
Amortization of other regulatory assets		59,643			69,701			-			-			-			(10,058	)
Deferred rate increase		(6,250	)		(61,795	)		-			-			-			55,545
Other, net		8,922			3,282			(2,004	)		100,482			71,543			3,636
FFO (before deferred energy)		612,973			511,334			569,569			554,069			497,406			671,208
Deferred energy		134,969			221,321			306,406			2,717			309,587			220,054
Adjusted FFO	$	747,942		$	732,655		$	875,975		$	556,786		$	806,993		$	891,262
Long-term debt	$	5,313,407		$	5,549,052		$	5,303,357		$	5,266,982		$	4,137,864		$	5,313,407
Current maturities of long-term debt		356,538			9,286			134,474			9,291			110,285			356,538
Total Debt	$	5,669,945		$	5,558,338		$	5,437,831		$	5,276,273		$	4,248,149		$	5,669,945
Interest expense (net of AFUDC(1) debt)	$	241,625		$	250,996		$	334,314		$	300,857		$	279,788		$	324,943
AFUDC(1) (debt)		17,349			15,847			20,229			29,527			25,967			21,731
Adjusted Interest Expense	$	258,974		$	266,843		$	354,543		$	330,384		$	305,755		$	346,674
Total Debt/FFO								9.55	x		9.52	x		8.54	x		8.45	x
Total Debt/Adjusted FFO								6.21	x		9.48	x		5.26	x		6.36	x
FFO Adjusted Interest Coverage								2.61	x		2.68	x		2.63	x		2.94	x
Adjusted FFO Interest Coverage								3.47	x		2.69	x		3.64	x		3.57	x
Shareholders' Equity							$	3,223,922		$	3,131,186		$	2,996,575		$	3,368,514
Total Capitalization (including current maturities of long-term debt)							$	8,661,753		$	8,407,459		$	7,244,724		$	9,038,459
Total Debt/Total Capitalization								62.78	%		62.76	%		58.64	%		62.73	%
(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)
	Nine Months ended September 30,						Year Ended December 31,									LTM September 30,
	2010			2009			2009			2008			2007			2010
Net Income	$	181,586		$	140,941		$	134,284		$	151,431		$	165,694		$	174,929
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		169,330			160,869			215,873			171,080			152,139			224,334
Deferred taxes and deferred investment tax credit		93,730			100,126			96,831			45,039			56,868			90,435
AFUDC(1) (debt and equity)		(34,318	)		(30,041	)		(38,209	)		(45,980	)		(29,057	)		(42,486	)
Carrying charge on Lenzie Generating Station		-			-			-			-			(16,080	)		-
Reinstated interest on deferred energy		-			-			-			-			(11,076	)		-
Amortization of other regulatory assets		41,415			41,791			-			-						(376	)
Uncollected revenue - deferred rate increase		(6,250	)		(61,795	)		-			-						55,545
Other, net		3,085			5,507			(34,291	)		73,209			38,821			(36,713	)
FFO (Before Deferred Energy Costs)		448,578			357,398			374,488			394,779			357,309			465,668
Deferred energy		99,407			144,656			216,629			4,211			218,992			171,380
Adjusted FFO	$	547,985		$	502,054		$	591,117		$	398,990		$	576,301		$	637,048
Long-term debt	$	3,546,724		$	3,701,308		$	3,535,440		$	3,385,106		$	2,528,141		$	3,546,724
Current maturities of long-term debt		356,538			9,286			119,474			8,691			8,642			356,538
Total Debt	$	3,903,262		$	3,710,594		$	3,654,914		$	3,393,797		$	2,536,783		$	3,903,262
Interest expense (net of AFUDC(1) debt)	$	161,496		$	170,535		$	226,252		$	186,822		$	174,667		$	217,213
AFUDC(1) (debt)		15,763			13,483			17,184			20,063			13,196			19,464
Adjusted Interest Expense	$	177,259		$	184,018		$	243,436		$	206,885		$	187,863		$	236,677
Total Debt/FFO								9.76	x		8.60	x		7.10	x		8.38	x
Total Debt/Adjusted FFO								6.18	x		8.51	x		4.40	x		6.13	x
FFO Adjusted Interest Coverage								2.54	x		2.91	x		2.90	x		2.97	x
Adjusted FFO Interest Coverage								3.43	x		2.93	x		4.07	x		3.69	x
Shareholder's Equity							$	2,650,039		$	2,627,567		$	2,376,740		$	2,769,675
Total Capitalization (including current maturities of long-term debt)							$	6,304,953		$	6,021,364		$	4,913,523		$	6,672,937
Total Debt/Total Capitalization								57.97	%		56.36	%		51.63	%		58.49	%
(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)
	Nine Months ended September 30,						Year Ended December 31,									LTM September 30,
	2010			2009			2009			2008			2007			2010
Net Income	$	52,897		$	58,206		$	73,085		$	90,582		$	65,667		$	67,776
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		79,737			80,043			106,048			89,528			83,393			105,742
Deferred taxes and deferred investment tax credit		21,134			38,782			32,548			24,598			(36,713	)		14,900
AFUDC(1) (debt and equity)		(3,946	)		(4,899	)		(6,293	)		(21,988	)		(28,719	)		(5,340	)
Gain on sale of asset		(7,575	)		-			-			-			-			(7,575	)
Amortization of other regulatory assets		18,056			27,361			-			-			-			(9,305	)
Other, net		4,454			(2,444	)		30,368			22,872			29,451			37,266
FFO (before deferred energy)		164,757			197,049			235,756			205,592			113,079			203,464
Deferred energy		35,562			76,665			89,777			(1,494	)		90,595			48,674
Adjusted FFO	$	200,319		$	273,714		$	325,533		$	204,098		$	203,674		$	252,138
Long-term debt	$	1,281,138		$	1,362,002		$	1,282,225		$	1,395,987		$	1,084,550		$	1,281,138
Current maturities of long-term debt		-			-			15,000			600			101,643			-
Total Debt	$	1,281,138		$	1,362,002		$	1,297,225		$	1,396,587		$	1,186,193		$	1,281,138
Interest expense (net of AFUDC(1) debt)	$	51,141		$	51,473		$	69,413		$	72,712		$	60,735		$	69,081
AFUDC(1) (debt)		1,586			2,364			3,044			9,464			12,771			2,266
Adjusted Interest Expense	$	52,727		$	53,837		$	72,457		$	82,176		$	73,506		$	71,347
Total Debt/FFO								5.50	x		6.79	x		10.49	x		6.30	x
Total Debt/Adjusted FFO								3.98	x		6.84	x		5.82	x		5.08	x
FFO Adjusted Interest Coverage								4.25	x		3.50	x		2.54	x		3.85	x
Adjusted FFO Interest Coverage								5.49	x		3.48	x		3.77	x		4.53	x
Shareholder's Equity							$	1,009,258		$	877,961		$	1,001,840		$	1,014,181
Total Capitalization (including current maturities of long-term debt)							$	2,306,483		$	2,274,548		$	2,188,033		$	2,295,319
Total Debt/Total Capitalization								56.24	%		61.40	%		54.21	%		55.82	%
(1) Allowance for borrowed funds used during construction or allowance for equity funds used during construction.