SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 2.       SEGMENT INFORMATION

The Utilities operate three regulated business segments, NPC electric, SPPC electric and SPPC natural gas service, which are reported in accordance with Segment Reporting of the FASC. Electric service is provided to Las Vegas and surrounding ClarkCounty by NPC, and to northern Nevada by SPPC. Natural gas services are provided by SPPC in the Reno-Sparks area of Nevada. Other information includes amounts below the quantitative thresholds for separate disclosure.

Operational information of the different business segments is set forth below based on the nature of products and services offered. NVE evaluates performance based on several factors, of which the primary financial measure is business segment gross margin. Gross margin, which the Utilities calculate as operating revenues less energy and energy efficiency program costs, provides a measure of income available to support the other operating expenses of the Utilities. EEPR costs are conservation costs being recovered from ratepayers through EEPR revenues which were implemented in July 2011 (see Note 3, Regulatory Actions, of the Notes to Consolidated Financial Statements). Costs incurred prior to the implementation of the EEPR are recovered through general rates and amortized to other operating expense. See Note 3, Regulatory Actions, of the Notes to Financial Statements for conservation program amount details. The EEPR mechanism is designed such that conservation costs are equal to revenues collected and any over/under collection is deferred as a regulatory asset/liability until rates are reset. As a result, amounts related to EEPR do not have an effect on gross margin, operating income or net income.

Operating expenses are provided by segment in order to reconcile to operating income as reported in the consolidated financial statements for the years ended December 31 (dollars in thousands):

2011
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	2,943,307	$	15	$	2,054,393	$	888,899	$	716,417	$	172,482	$
Energy Costs:
	Fuel for power generation		680,585		-		498,487		182,098		182,098		-
	Purchased power		633,874		-		477,226		156,648		156,648		-
	Gas purchased for resale		125,155		-				125,155				125,155
	Deferred energy		(83,333)		-		(16,300)		(67,033)		(65,445)		(1,588)
Energy efficiency program costs			43,537		-		37,292		6,245		6,245
Total Costs			1,399,818		-		996,705		403,113		279,546		123,567
Gross Margin		$	1,543,489	$	15	$	1,057,688	$	485,786	$	436,871	$	48,915
Other operating expenses			411,115		4,289		260,127		146,699
Maintenance			103,307		-		64,320		38,987
Depreciation and amortization			357,937		-		252,191		105,746
Taxes other than income			60,465		290		37,254		22,921
Operating Income		$	610,665	$	(4,564)	$	443,796	$	171,433
Assets		$	11,635,128	$	8,523	$	8,442,597	$	3,184,008	$	2,818,927	$	302,062	$	63,019
Capital expenditures		$	620,516	$	-	$	475,118	$	145,398	$	132,083	$	13,315

2010
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	3,280,222	$	23	$	2,252,377	$	1,027,822	$	836,879	$	190,943	$
Energy Costs:
	Fuel for power generation		821,484		0		588,419		233,065		233,065		-
	Purchased power		648,881		0		505,239		143,642		143,642		-
	Gas purchased for resale		137,702		0				137,702				137,702
	Deferred energy		113,107		0		94,843		18,264		8,475		9,789
Total Costs			1,721,174		0		1,188,501		532,673		385,182		147,491
Gross Margin		$	1,559,048	$	23	$	1,063,876	$	495,149	$	451,697	$	43,452
Other operating expense			414,241		3,760		260,535		149,946
Maintenance			104,567		-		71,759		32,808
Depreciation and amortization			333,059		-		226,252		106,807
Taxes other than income			62,746		235		37,918		24,593
Operating Income		$	644,435	$	(3,972)	$	467,412	$	180,995
Assets		$	11,669,668	$	20,822	$	8,301,824	$	3,347,022	$	3,022,257	$	291,122	$	33,643
Capital expenditures(2)		$	629,496	$	(13,094)	$	499,374	$	143,216	$	131,579	$	11,637

2009
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	3,585,798	$	28	$	2,423,377	$	1,162,393	$	957,130	$	205,263	$
Energy Costs:
	Fuel for power generation		881,768		0		587,647		294,121		294,121		-
	Purchased power		758,736		0		627,759		130,977		130,977		-
	Gas purchased for resale		153,607		0				153,607				153,607
	Deferred energy		289,076		0		207,611		81,465		73,829		7,636
Total Costs			2,083,187		0		1,423,017		660,170		498,927		161,243
Gross Margin		$	1,502,611	$	28	$	1,000,360	$	502,223	$	458,203	$	44,020
Other operating expenses			453,413		2,699		279,865		170,849
Maintenance			102,309		-		71,019		31,290
Depreciation and amortization			321,921		-		215,873		106,048
Taxes other than income			60,885		197		37,241		23,447
Operating Income		$	564,083	$	(2,868)	$	396,362	$	170,589
Assets		$	11,413,463	$	(25,053)	$	8,096,371	$	3,342,145	$	2,997,116	$	305,434	$	39,595
Capital expenditures(2)		$	843,132	$	-	$	656,074	$	187,058	$	171,036	$	16,022

(1)	The reconciliation of segment assets at December 31, 2011, 2010 and 2009 to the consolidated total includes the following unallocated amounts:
			2011		2010		2009
		Other investments	$	5,901	$	5,956	$	5,428
		Cash		55,195		9,552		14,359
		Deferred charges-other		1,923		18,135		19,808
			$	63,019	$	33,643	$	39,595
(2)	The capital expenditures for NVE Other at December 31, 2010 includes $13.1 million proceeds from the sale of assets between SPPC and Sierra
	Pacific Communications.