EX-99.2 3 b62945k2exv99w2.htm EX-99.2 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATIONI - FUNDS FROM OPERATIONS exv99w2
 

EXHIBIT 99.2
FUNDS FROM OPERATIONS — SIERRA PACIFIC RESOURCES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Sierra Pacific Resources
Funds From Operations (FFO)
                                                 
                                            LTM ended  
    Nine months ended September 30,     Year ended December 31,     September 30,  
    2006     2005     2005     2004     2003     2006  
Net Income (Loss)
   $ 253,665     $ 63,508     $ 86,137     $ 32,471     $ (136,629 )   $ 276,294  
 
                                                
Non-Cash items included in net income
                                                
Depreciation and amortization
     170,113       159,949       214,662       205,647       191,259       224,826  
Deferred taxes and deferred investment tax credit
     122,062       31,362       41,609       33,690       (50,724 )     132,309  
AFUDC
     (26,518 )     (31,529 )     (45,013 )     (14,536 )     (11,741 )     (40,002 )
Deferred Energy Costs Disallowed
     —       —       —       1,586       90,964       —  
Goodwill Impairment
     —       —       —       11,695       —       —  
Early retirement and severance amortization
     —       —       —       —       2,786       —  
Unrealized loss on derivative instrument
     —       —       —       —       46,065       —  
Impairment of assets of subsidiary
     —       —       —       —       32,911       —  
Loss on disposal of discontinued operations
     —       —       —       2,346       9,555       —  
Plant Costs disallowed
     —       —       —       47,092       —       —  
Reinstatement of deferred Energy Costs
     (178,825 )                                     (178,825 )
Carrying Charge on Lenzie Plant
     (26,957 )                                     (26,957 )
Other non-cash
     (27,326 )     (33,018 )     (4,119 )     (27,353 )     (7,131 )     1,573  
 
                                    
Funds from Operations (Before Deferred Energy Costs)
     286,214       190,272       293,276       292,638       167,315       389,218  
 
                                    
Amortization Deferred energy costs — electric
     130,279       140,554       188,221       265,418       250,134       177,946  
Amortization Deferred energy costs — gas
     4,773       (486 )     1,446       3,242       13,095       6,705  
Deferral of energy costs — electric plus terminated suppliers
     (75,599 )     (179,917 )     (241,103 )(1)     (147,589 )     (179,826 )     (136,785 )
Deferral of energy costs — gas
     1,897       (902 )     (2,519 )     (7,480 )     2,592       280  
Payment to terminating supplier
     (65,368 )     —       —       —       —       (65,368 )
Proceeds from claim on terminating supplier
     41,365       —       —       —       —       41,365  
 
                                    
Adjusted Funds from Operations
   $ 323,561     $ 149,521     $ 239,321     $ 406,229     $ 253,310     $ 413,361  
 
                                    
 
                                                
Long-term Debt
     4,162,341       3,734,822       3,817,122       4,081,281       3,579,674       4,162,341  
Current maturities of long term debt plus short-term borrowings
     41,051       278,804       58,909       8,491       243,970       41,051  
 
                                    
Total Debt
   $ 4,203,392     $ 4,013,626     $ 3,876,031     $ 4,089,772     $ 3,823,644     $ 4,203,392  
 
                                                
Preferred Stock
     —       50,000       50,000       50,000       50,000       —  
 
                                                
Net interest expense
     228,670       236,957       284,927       306,427       366,282       276,640  
AFUDC
     12,869       17,283       24,691       8,587       5,976       20,277  
 
                                    
Adjusted Interest Expense
   $ 241,539     $ 254,240     $ 309,618     $ 315,014     $ 372,258     $ 296,917  
 
                                                
Debt/Funds from operations
                     13.22 x     13.98 x     22.85 x     10.80 x
Debt/adjusted FFO
                     16.20 x     10.07 x     15.09 x     10.17 x
Funds from Operations Interest Coverage
                     1.95 x     1.93 x     1.45 x     2.31 x
Adjusted Funds From Operations Interest Coverage
                     1.77 x     2.29 x     1.68 x     2.39 x
Common shareholders equity
                   $ 2,060,154     $ 1,498,616     $ 1,435,394     $ 2,593,013  
Total Capitalization
                   $ 5,986,185     $ 5,638,388     $ 5,309,038     $ 6,796,405  
Debt/Capitalization
                     64.75 %     72.53 %     72.02 %     61.85 %
 
(1)   For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $218 million associated primarily with the November 2005 settlement with Enron.

 

 

FUNDS FROM OPERATIONS — NEVADA POWER COMPANY
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Nevada Power Company
Funds From Operations (FFO)
                                                 
                                            LTM ended  
    Nine months ended September 30,     Year ended December 31,     September 30,  
    2006     2005     2005     2004     2003     2006  
Net Income (Loss)
   $ 236,273     $ 112,408     $ 132,734     $ 104,312     $ 19,277     $ 256,599  
Non-Cash items included in net income
                                             —  
Depreciation and amortization
     104,076       92,421       124,098       118,841       109,655       135,753  
Deferred taxes and deferred investment tax credit
     113,015       52,680       86,910       57,066       2,710       147,245  
AFUDC
     (20,190 )     (29,171 )     (41,870 )     (9,969 )     (5,545 )     (32,889 )
Deferred Energy Costs Disallowed
     —       —       —       1,586       45,964       —  
Plant Costs disallowed
     —       —       —       —       —       —  
Reinstatement of deferred Energy Costs
     (178,825 )                                     (178,825 )
Carrying Charge on Lenzie Plant
     (26,957 )                                     (26,957 )
Other non-cash
     (26,129 )     (22,201 )     (7,433 )     (44,149 )     (8,962 )     (11,361 )
Funds from Operations (Before Deferred Energy Costs)
     201,263       206,137       294,439       227,687       163,099       289,565  
 
                                    
Amortization Deferred energy costs
     95,830       108,480       131,471       228,765       204,610       118,821  
Deferral of energy costs plus terminated suppliers
     (58,158 )     (137,048 )     (186,338 )(1)     (112,992 )     (131,591 )     (107,448 )
Payment to terminating supplier
     (37,410 )     —       —       —       —       (37,410 )
Proceeds from claim on terminating supplier
     26,391       —       —       —       —       26,391  
Adjusted Funds from Operations
   $ 227,916     $ 177,569     $ 239,572     $ 343,460     $ 236,118     $ 289,919  
 
                                    
 
                                                
Long-term Debt
     2,429,256       2,113,370       2,214,063       2,275,690       1,899,709       2,429,256  
Current maturities of long term debt
     18,651       6,404       6,509       6,091       135,570       18,651  
 
                                    
Total Debt
   $ 2,447,907     $ 2,119,774     $ 2,220,572     $ 2,281,781     $ 2,035,279     $ 2,447,907  
 
                                                
Net interest expense
     134,063       118,350       134,657       137,388       190,472       150,370  
AFUDC
     10,050       16,154       23,187       5,738       2,700       17,083  
 
                                    
Adjusted Interest Expense
   $ 144,113     $ 134,504     $ 157,844     $ 143,126     $ 193,172     $ 167,453  
 
                                                
Debt/Funds from operations
                     7.54 x     10.02 x     12.48 x     8.45 x
Debt/adjusted FFO
                     9.27 x     6.64 x     8.62 x     8.44 x
Funds from Operations Interest Coverage
                     2.87 x     2.59 x     1.84 x     2.73 x
Adjusted Funds From Operations Interest Coverage
                     2.52 x     3.40 x     2.22 x     2.73 x
Common shareholders equity
                   $ 1,762,089     $ 1,436,788     $ 1,174,645     $ 2,166,719  
Total Capitalization
                   $ 3,982,661     $ 3,718,569     $ 3,209,924     $ 4,614,626  
Debt/Capitalization
                     55.76 %     61.36 %     63.41 %     53.05 %
 
(1)   For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $155 million associated primarily with the November 2005 settlement with Enron.

 

 

FUNDS FROM OPERATIONS — SIERRA PACIFIC POWER COMPANY
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Sierra Pacific Power Company
Funds From Operations (FFO)
                                                 
                                            LTM ended  
                                            September  
    Nine months ended September 30,     Year ended December 31,     30,  
    2006     2005     2005     2004     2003     2006  
Net Income (Loss)
   $ 42,299     $ 38,894     $ 52,074     $ 18,577     $ (23,275 )   $ 55,479  
Non-Cash items included in net income
                                             —  
Depreciation and amortization
     66,037       67,534       90,569       86,806       81,514       89,072  
Deferred taxes and deferred investment tax credit
     (27,392 )     (548 )     209       11,640       (23,676 )     (26,635 )
AFUDC
     (6,328 )     (2,358 )     (3,143 )     (4,567 )     (6,196 )     (7,113 )
Deferred Energy Costs Disallowed
     —       —       —       —       45,000       —  
Early retirement and severance amortization
     —       —       —       —       2,786       —  
Plant Costs disallowed
     —       —       —       47,092       —       —  
Other non-cash
     2,470       (4,116 )     318       474       (5,203 )     6,904  
Funds from Operations (Before Deferred Energy Costs)
     77,086       99,406       140,027       160,022       70,950       117,707  
 
                                    
Amortization Deferred energy costs — electric
     34,449       32,074       56,750       36,653       45,524       59,125  
Amortization Deferred energy costs — gas
     4,773       (486 )     1,446       3,241       13,095       6,705  
Deferral of energy costs — electric plus terminated suppliers
     (17,441 )     (42,869 )     (54,765 )(1)     (34,598 )     (48,236 )     (29,337 )
Deferral of energy costs — gas
     1,897       (902 )     (2,519 )     (7,480 )     2,592       280  
Payment to terminating supplier
     (27,958 )     —       —       —       —       (27,958 )
Proceeds from claim on terminating supplier
     14,974       —       —       —       —       14,974  
Adjusted Funds from Operations
   $ 87,780     $ 87,223     $ 140,939     $ 157,838     $ 83,925     $ 141,496  
 
                                    
 
                                                
Long-term Debt
     1,072,076       962,311       941,804       994,309       912,800       1,072,076  
Current maturities of long term debt plus short-term borrowings
     22,400       32,400       52,400       2,400       108,400       22,400  
 
                                    
Total Debt
   $ 1,094,476     $ 994,711     $ 994,204     $ 996,709     $ 1,021,200     $ 1,094,476  
 
                                                
Preferred Stock
     —       50,000       50,000       50,000       50,000       —  
 
                                                
Net interest expense
     54,833       54,206       69,067       62,831       96,093       69,694  
AFUDC
     2,819       1,129       1,504       2,849       3,276       3,194  
 
                                    
Adjusted Interest Expense
   $ 57,652     $ 55,335     $ 70,571     $ 65,680     $ 99,369     $ 72,888  
 
                                                
Debt/Funds from operations
                     7.10 x     6.23 x     14.39 x     9.30 x
Debt/adjusted FFO
                     7.05 x     6.31 x     12.17 x     7.74 x
Funds from Operations Interest Coverage
                     2.98 x     3.44 x     1.71 x     2.61 x
Adjusted Funds From Operations Interest Coverage
                     3.00 x     3.40 x     1.84 x     2.94 x
Common shareholders equity
                   $ 727,777     $ 705,395     $ 593,771     $ 770,640  
Total Capitalization
                   $ 1,771,981     $ 1,752,104     $ 1,664,971     $ 1,865,116  
Debt/Capitalization
                     56.11 %     56.89 %     61.33 %     58.68 %
     (1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $63 million associated primarily with the November 2005 settlement with Enron.