	September 30, 2011
	NVE Total			NPC Electric				SPPC Electric			SPPC Gas
Nevada Deferred Energy
Cumulative Balance requested in 2011 DEAA	$	(334,102	)	$	(189,032	)	(1)	$	(115,955	)	$	(29,115	)
2011 Amortization		166,081			78,624				75,464			11,993
2011 Deferred Energy Over Collections (2)		(129,925	)		(78,647	)			(34,646	)		(16,632	)
Nevada Deferred Energy Balance at September 30, 2011 - Subtotal	$	(297,946	)	$	(189,055	)		$	(75,137	)	$	(33,754	)
Reinstatement of deferred energy (effective 6/07, 10 years)		120,678			120,678				-			-
Total Deferred Energy	$	(177,268	)	$	(68,377	)		$	(75,137	)	$	(33,754	)

Deferred Assets
Deferred energy	$	105,778		$	105,778			$	-		$	-
Current Liabilities
Deferred energy		(283,046	)		(174,155	)			(75,137	)		(33,754	)
Total Deferred Energy	$	(177,268	)	$	(68,377	)		$	(75,137	)	$	(33,754	)

(1)	Refer to NPC 2010 DEAA "Settled Regulatory Actions" in Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2010 Form 10-K for separate discussion regarding rate offset of this balance.
(2)	These deferred energy over collections will be filed in the March 2012 DEAA filings.

In 2011, the Legislature passed Assembly Bill 215 which allows an electric or gas utility that adjusts its BTER on a quarterly basis to request PUCN approval to make quarterly changes to its DEAA rate if the request is in the public interest. The Utilities will still be required to file an annual DEAA case to review costs for prudency and reasonableness, and if any costs are disallowed on such grounds, the disallowance will be incorporated into the next subsequent quarterly rate. SPPC filed an application to change its quarterly DEAA rates for both electric and gas in July 2011, and in October 2011, the PUCN accepted a stipulation authorizing the first quarterly adjustment to the electric DEAA to become effective on January 1, 2012. NPC filed an application to change its quarterly DEAA in October 2011. NPC requested the first quarterly adjustment to the DEAA to become effective on April 1, 2012.

In 2009, the Legislature passed Senate Bill 358, which required the PUCN to adopt regulations authorizing an electric utility to recover lost revenue that is attributable to the measurable and verifiable effects associated with the implementation of efficiency and conservation programs approved by the PUCN. As a result, the PUCN opened Docket No. 09-07016 to amend and adopt the regulation. The regulation was adopted by the Legislature on July 22, 2010. Accordingly, as of August 1, 2010, the Utilities began recording the amount of additional revenues which are objectively determinable and probable of recovery and are attributable to reduced kWh sales related to energy efficiency programs, prior to their inclusion in rates in accordance with FASC 980-605-25, Alternative Revenue Programs.

In October 2010, the Utilities filed to set 2011 base rates effective mid 2011 to recover approximately $35.1 million and $7.6 million for NPC and SPPC, respectively, for estimated reduced kWh sales related to the Utilities' energy efficiency programs. Annually, thereafter, the Utilities will make a filing in March, to adjust rates and set a clearing rate or EEIR for over or under collected balances, effective in October of the same year. In May 2011, the PUCN issued a final order on the October 2010 filing authorizing increases to the base rates of $14.5 million and $2.6 million for NPC and SPPC, respectively, effective July 1, 2011. As a result of the May order in June 2011, NPC and SPPC recorded a pre-tax adjustment to earnings for revenue previously recorded of approximately $4.5 million and $4.1 million, respectively. As of September 30, 2011, NPC and SPPC have recognized 2011 revenues of approximately $10.4 million and $4.1 million, respectively, of the authorized EEIR base amounts of which $7.4 million and $1 million, respectively, were recognized in accordance with FASC 980-605-25, Alternative Revenue Programs discussed above.

In March 2011, the Utilities filed applications with their annual DEAA filings to reset the base rates and clear the accumulated regulatory asset accounts between August 1, 2010 and December 31, 2010, with rates effective in October 2011. Reference further discussion below at NPC and SPPC DEAA, TRED, REPR, EEIR, EEPR Rate Filing.

In addition, the regulation approved the transition of the recovery of energy efficiency program costs from general rates (filed every 3 years) to recovery through independent annual rate filings. Accordingly, in their filing made in October 2010, the Utilities requested to set base rates beginning mid 2011 to recover the 2011 costs of implementing energy efficiency program costs of approximately $71.0 million and $12.1 million for NPC and SPPC, respectively. In May 2011, the PUCN issued a final order authorizing increases to the base rates of $58.4 million and $9.7 million for NPC and SPPC, respectively, effective July 1, 2011. For the three and nine months ended September 30, 2011, NPC and SPPC have recorded $20.5 million and $2.6 million respectively, of EEPR revenues. Costs accumulated between August 1, 2010 and December 31, 2010 were requested for recovery in the March 2011 DEAA filing with rates effective October 2011. Reference further discussion below at NPC and SPPC DEAA, TRED, REPR, EEIR, EEPR Rate Filing.

In February 2011, NVE and the Utilities cancelled plans to construct the EEC due to increasing environmental and economic uncertainties. In June 2009, the Utilities filed to withdraw the initial construction application under the Utility Environmental Protection Act (UEPA) filed in 2006 due to postponing the construction of the EEC. Simultaneously, the Utilities filed a new UEPA application for the construction of a transmission line which was granted in May 2011. The PUCN had previously approved the Utilities spending on development costs for the EEC up to $130 million, of which the Utilities have spent and recorded as an other deferred asset approximately $65.3 million as of September 30, 2011. Management believes the development amounts expended through September 30, 2011 are probable of recovery. In compliance with the SPPC 2010 Electric GRC, SPPC filed a separate application concurrent with the filing of NPC's GRC filed in June 2011, to determine the reasonableness of the EEC project development costs and propose reclassification of these costs from a deferred debit to a regulatory asset.

.	Increase in general rates by $249.9 million;
.	ROE and ROR of 11.25% and 8.64%, respectively;
.	Recovery of approximately $638.7 million, excluding AFUDC, for the 500 MW (nominally rated) expansion at the Harry Allen Generating Station;
.	Authorization to defer collection of approximately $79.7 million of the requested rate increase as a regulatory asset in order to mitigate the impact on customers. The remaining requested increase of approximately $170.2 is expected to be effective on January 1, 2012.

In March 2011, NPC filed an application to establish a new DEAA to refund over-collected purchased power and fuel costs and reset or establish several other rate elements (TRED, REPR, EEIR and EEPR). In September 2011, the PUCN accepted stipulations which resulted in an overall decrease in revenue requirement of approximately $78.6 million. The PUCN authorized recovery of the following amounts (dollars in millions):


		Authorized				Present			$ Change in
	Effective	Revenue				Revenue			Revenue
	Date	Requirement				Requirement			Requirement
Revenue Requirement Subject To Change:
DEAA	Oct. 2011	$	(188.9	)		$	(101.0	)	$	(87.9	)
REPR	Oct. 2011		8.6				29.8			(21.2	)
TRED	Oct. 2011		18.1				16.3			1.8
EEPR Base	Oct. 2011		58.4				58.4			-
EEPR Amortization	Oct. 2011		21.3				-			21.3
EEIR Base	Oct. 2011		17.1				14.5			2.6
EEIR Amortization	Oct. 2011		4.8		(1)		-			4.8
Total Revenue Requirement		$	(60.6	)		$	18.0		$	(78.6	)

(1)

In accordance with Alternative Revenue Accounting, NPC has recognized approximately $4.8 million in revenues pertaining to 2010. Based on the order from the PUCN in May 2011, which clarified the calculation of EEIR revenues, NPC does not expect to record further revenue from this rate request; however, NPC does expect to collect approximately $4.8 million from its customers.

In December 2010, NPC filed a petition with the PUCN seeking permission to establish a regulatory asset related to the 500 MW (nominally rated) expansion at the Harry Allen Generating Station. The petition sought to recover approximately $40 million of foregone return, depreciation expense and incremental operating and maintenance expense incurred between June 1, 2011, the approved in service date, and December 31, 2011, which due to regulatory lag will not be recovered. In April 2011, the PUCN denied NPC's petition to establish a regulatory asset. NPC does not plan further action on this request.

In March 2011, SPPC filed an application to establish a new DEAA to refund over-collected purchased power and fuel costs and reset or establish several other rate elements (TRED, REPR, EEIR and EEPR). In September 2011, the PUCN accepted stipulations which resulted in an overall decrease in revenue requirement of approximately $8.2 million. The PUCN authorized recovery of the following amounts (dollars in millions):


		Authorized				Present			$ Change in
	Effective	Revenue				Revenue			Revenue
	Date	Requirement				Requirement			Requirement
Revenue Requirement Subject To Change:
DEAA	Oct. 2011	$	(115.9	)		$	(99.5	)	$	(16.4	)
REPR	Oct. 2011		38.0				36.6			1.4
TRED	Oct. 2011		9.1				7.9			1.2
EEPR Base	Oct. 2011		9.7				9.7			-
EEPR Amortization	Oct. 2011		4.6				-			4.6
EEIR Base	Oct. 2011		3.1				2.6			0.5
EEIR Amortization	Oct. 2011		0.5		(1)		-			0.5
Total Revenue Requirement		$	(50.9	)		$	(42.7	)	$	(8.2	)

(1)

In accordance with Alternative Revenue Accounting, SPPC has recognized approximately $0.5 million in revenues pertaining to 2010. Based on the order from the PUCN in May 2011, which clarified the calculation of EEIR revenues, SPPC does not expect to record further revenue from this rate request; however, SPPC does expect to collect approximately $0.5 million from their customers.

In March 2011, SPPC filed an application to create a new DEAA rate to refund over-collected gas costs and to establish a new STPR (Solar Thermal Prospective Rate) to recover a legislatively mandated solar thermal program. In September 2011, the PUCN accepted stipulations which resulted in an overall decrease in revenue requirement of $12.1 million. The PUCN authorized the recovery of the following amounts (dollars in millions):


		Authorized				Present				$ Change in
	Effective	Revenue				Revenue				Revenue
	Date	Requirement				Requirement				Requirement
Revenue Requirement Subject To Change:
DEAA	Oct. 2011		$	(29.1	)		$	(16.7	)		$	(12.4	)
STPR	Oct. 2011			0.3				-				0.3
Total Revenue Requirement			$	(28.8	)		$	(16.7	)		$	(12.1	)

NPC and SPPC are participants in a FERC proceeding wherein California parties have been authorized to recalculate, or mitigate, the prices they paid for wholesale spot market power between October 2, 2000 and June 20, 2001. Both of the Utilities made spot market sales that are eligible for mitigation. NPC and SPPC have negotiated a comprehensive settlement with the California parties and have joined in requesting that the FERC approve the settlement agreement. The date by which parties may comment or protest the joint offer of settlement has passed and no party has tendered any form of opposition. A FERC order on the joint offer of settlement is anticipated by December 2011. The settlement is not material to the financial statements as a whole.