SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

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 Clark County 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. Energy efficiency program 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 Financial Statements in 2011 Form 10-K). Costs incurred prior to the implementation of the EEPR are recovered through general rates and amortized to other operating expense. 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 (dollars in thousands).

Three Months Ended
March 31, 2012			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	611,420	$	4	$	395,688	$	215,728	$	169,806	$	45,922
Energy Costs:
	Fuel for power generation		117,035		-		80,549		36,486		36,486		-
	Purchased power		117,116		-		81,531		35,585		35,585		-
	Gas purchased for resale		31,617		-				31,617		-		31,617
	Deferred energy		(11,739)		-		2,171		(13,910)		(12,670)		(1,240)
Energy efficiency program costs			19,425		-		15,774		3,651		3,651
Total Costs		$	273,454	$	-	$	180,025	$	93,429	$	63,052	$	30,377
Gross Margin		$	337,966	$	4	$	215,663	$	122,299	$	106,754	$	15,545
Other operating expenses			103,601		707		66,462		36,432
Maintenance			32,526		-		23,073		9,453
Depreciation and amortization			90,862		-		64,990		25,872
Taxes other than income			14,509		192		8,454		5,863
OPERATING INCOME		$	96,468	$	(895)	$	52,684	$	44,679

Three Months Ended
March 31, 2011			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	640,983	$	4	$	390,068	$	250,911	$	178,617	$	72,294
Energy Costs:
	Fuel for power generation		146,338		-		101,070		45,268		45,268		-
	Purchased power		135,016		-		95,566		39,450		39,450		-
	Gas purchased for resale		52,632		-				52,632		-		52,632
	Deferred energy		(1,952)		-		6,730		(8,682)		(11,931)		3,249
Energy efficiency program costs			0		-		0		0		0		0
Total Costs		$	332,034	$	-	$	203,366	$	128,668	$	72,787	$	55,881
Gross Margin		$	308,949	$	4	$	186,702	$	122,243	$	105,830	$	16,413
Other operating expenses			105,974		657		65,101		40,216
Maintenance			29,762		-		22,337		7,425
Depreciation and amortization			83,102		-		57,673		25,429
Taxes other than income			16,245		163		10,058		6,024
OPERATING INCOME		$	73,866	$	(816)	$	31,533	$	43,149