SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 21, 2012
Commission File Number |
Registrant, State of Incorporation, Address of Principal Executive Offices and Telephone Number |
I.R.S. Employer Identification Number | ||
1-08788 | NV ENERGY, INC. | 88-0198358 | ||
Nevada | ||||
6226 West Sahara Avenue | ||||
Las Vegas, Nevada 89146 | ||||
(702) 402-5000 | ||||
2-28348 | NEVADA POWER COMPANY d/b/a | 88-0420104 | ||
NV ENERGY | ||||
Nevada | ||||
6226 West Sahara Avenue | ||||
Las Vegas, Nevada 89146 | ||||
(702) 402-5000 | ||||
0-00508 | SIERRA PACIFIC POWER COMPANY d/b/a NV ENERGY |
88-0044418 | ||
Nevada | ||||
P.O. Box 10100 (6100 Neil Road) | ||||
Reno, Nevada 89520-0400 (89511) | ||||
(775) 834-4011 |
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
EX-99.1 Press Release dated February 21, 2012 |
||
EX-99.2 Supplemental Slides dated February 21, 2012 |
Item 2.02 | Results of Operations and Financial Condition |
On February 21, 2012, NV Energy, Inc. and its two utility subsidiaries, Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, issued a press release disclosing financial results for the year ended December 31, 2011. The text of the release is furnished herewith as Exhibit 99.1.
Item 7.01 | Regulation FD Disclosure |
In addition to the earnings press release on February 21, 2012 discussed in Item 2.02 above, NV Energy, Inc. and its two utility subsidiaries, Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, posted supplemental slides containing additional financial information about the companies to its website, www.nvenergy.com. A copy of these supplemental slides is furnished herewith as Exhibit 99.2.
The information contained in this Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed filed for the purpose of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits The following exhibits are furnished with this Form 8-K:
EX-99.1 Press Release dated February 21, 2012.
EX-99.2 Supplemental Slides dated February 21, 2012.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have each duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
NV Energy, Inc. | ||||
(Registrant) | ||||
Date: February 21, 2012 |
By: | /s/ E. Kevin Bethel | ||
E. Kevin Bethel | ||||
Chief Accounting Officer | ||||
Nevada Power Company d/b/a NV Energy | ||||
(Registrant) | ||||
Date: February 21, 2012 |
By: | /s/ E. Kevin Bethel | ||
E. Kevin Bethel | ||||
Chief Accounting Officer | ||||
Sierra Pacific Power Company d/b/a NV Energy | ||||
(Registrant) | ||||
Date: February 21, 2012 |
By: | /s/ E. Kevin Bethel | ||
E. Kevin Bethel | ||||
Chief Accounting Officer |
Exhibit 99.1
Analyst Contacts: Max Kuniansky, (702) 402-5627
Britta Carlson, (702) 402-5624
Media Contact: Karl Walquist, (775) 834-3891
NV Energy Reports Financial Results for 2011
LAS VEGAS, February 21, 2012 NV Energy, Inc. (NYSE: NVE) today announced financial results for the three and 12 months ended December 31, 2011.
NV Energy, Inc.
Consolidated Results
Periods Ended December 31,
Net Income (Loss) ($ in millions) |
EPS (diluted) | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Three Months |
$ | (25.2 | ) | $ | 14.2 | $ | (0.11 | ) | $ | 0.06 | ||||||
12 Months |
$ | 163.4 | $ | 227.0 | $ | 0.69 | $ | 0.96 |
Important considerations impacting our fourth quarter earnings included completion of the Harry Allen plant, which is now in rates, a number of accounting adjustments, and the timing of power plant outages. For the year ended 2011, the Harry Allen plant and accounting adjustments were the most significant drivers of earnings, said Michael Yackira, president and chief executive officer of NV Energy, Inc. Cost control will remain a top priority for our Company this year, as we transition to a period of reduced regulatory risk.
Results for the three months ended December 31, 2011 were adversely affected by regulatory adjustments and reserves totaling $20.9 million (pre-tax), primarily related to a December 2011 rate decision by the Public Utilities Commission of Nevada.
Earnings for the 12 months ended December 31, 2010 benefitted from NV Energys California operations, which were sold effective January 1, 2011, and a $7.6 million pre-tax gain on a May 2010 asset sale as previously disclosed.
Webcast Scheduled for 7 a.m. PST today, Tuesday, February 21, 2012
Senior management of NV Energy will review the companys 2011 financial results and other matters during a conference call and live webcast today, Tuesday, February 21, at 7 a.m. Pacific Standard Time.
The webcast will be accessible on the NV Energy website at www.nvenergy.com. A taped replay will remain on the companys website for approximately 30 days. To listen to the replay by telephone, call (800) 475-6701. International callers should dial (320) 365-3844. Use the conference call access code 234001.
Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a combined 45,592 square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.
This press release may contain forward-looking statements regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, NV Energy Inc.s ability to maintain access to the capital markets, NV Energy Inc.s ability to receive dividends from its subsidiaries, the financial performance of
NV Energy Inc.s subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, and the discretion of NV Energy Inc.s Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in NV Energy Inc.s and its subsidiaries financing agreements. For Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, these risks and uncertainties include, but are not limited to, future economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in their service territories, their ability to procure sufficient renewable energy sources in each compliance year to satisfy the Nevada Renewable Energy Portfolio Standard, changes in environmental laws and regulations, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, wildfire and other natural phenomena, explosions, fires, accidents, mechanical breakdowns that may occur while operating and maintaining an electric and natural gas system, their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company d/b/a NV Energy, financial market conditions, and unfavorable rulings in their pending and future regulatory filings. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy are contained in their quarterly reports on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011, and September 30, 2011 and Annual Report on Form 10-K for the year ended December 31, 2010, each filed with the Securities and Exchange Commission. NV Energy Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
NV ENERGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands, Except Share Amounts)
Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
OPERATING REVENUES |
$ | 609,597 | $ | 655,011 | $ | 2,943,307 | $ | 3,280,222 | ||||||||
OPERATING EXPENSES: |
||||||||||||||||
Fuel for power generation |
160,665 | 170,970 | 680,585 | 821,484 | ||||||||||||
Purchased power |
115,202 | 126,343 | 633,874 | 648,881 | ||||||||||||
Gas purchased for resale |
37,402 | 36,166 | 125,155 | 137,702 | ||||||||||||
Deferred energy |
(39,655 | ) | 6,553 | (83,333 | ) | 113,107 | ||||||||||
Energy efficiency program costs |
20,489 | | 43,537 | | ||||||||||||
Other operating expenses |
102,997 | 93,486 | 411,115 | 414,241 | ||||||||||||
Maintenance |
29,990 | 18,852 | 103,307 | 104,567 | ||||||||||||
Depreciation and amortization |
91,492 | 83,992 | 357,937 | 333,059 | ||||||||||||
Taxes other than income |
14,331 | 15,214 | 60,465 | 62,746 | ||||||||||||
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|||||||||
Total Operating Expenses |
532,913 | 551,576 | 2,332,642 | 2,635,787 | ||||||||||||
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|||||||||
OPERATING INCOME |
76,684 | 103,435 | 610,665 | 644,435 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest expense (net of AFUDC-debt: ($1,653), $6,006, $8,718 and $23,355) |
(89,992 | ) | (91,385 | ) | (328,710 | ) | (333,010 | ) | ||||||||
Interest income (expense) on regulatory items |
(4,181 | ) | (3,764 | ) | (16,321 | ) | (12,517 | ) | ||||||||
AFUDC-equity |
(1,981 | ) | 7,197 | 10,873 | 28,112 | |||||||||||
Other income |
7,822 | 6,317 | 22,764 | 36,841 | ||||||||||||
Other expense |
(25,324 | ) | (6,075 | ) | (48,924 | ) | (23,113 | ) | ||||||||
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Total Other Income (Expense) |
(113,656 | ) | (87,710 | ) | (360,318 | ) | (303,687 | ) | ||||||||
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Income (Loss) Before Income Tax Expense |
(36,972 | ) | 15,725 | 250,347 | 340,748 | |||||||||||
Income tax expense (benefit) |
(11,724 | ) | 1,512 | 86,915 | 113,764 | |||||||||||
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NET INCOME (LOSS) |
(25,248 | ) | 14,213 | 163,432 | 226,984 | |||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Change in compensation retirement benefits liability and amortization (Net of taxes $1,504, $268, $202 and $217) |
(2,775 | ) | (497 | ) | (357 | ) | (403 | ) | ||||||||
Change in market value of risk management assets and liabilities (Net of taxes $369 in 2011) |
$ | (686 | ) | $ | | $ | (686 | ) | $ | | ||||||
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OTHER COMPREHENSIVE INCOME (LOSS) |
(3,461 | ) | (497 | ) | (1,043 | ) | (403 | ) | ||||||||
COMPREHENSIVE INCOME (LOSS) |
$ | (28,709 | ) | $ | 13,716 | $ | 162,389 | $ | 226,581 | |||||||
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Amount per share basic and diluted |
||||||||||||||||
Net income (loss) per share - basic |
(0.11 | ) | 0.06 | 0.69 | 0.97 | |||||||||||
Net income (loss) per share - diluted |
(0.11 | ) | 0.06 | 0.69 | 0.96 | |||||||||||
Weighted Average Shares of Common Stock Outstanding - basic |
235,999,750 | 235,217,903 | 235,847,596 | 235,048,347 | ||||||||||||
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Weighted Average Shares of Common Stock Outstanding - diluted |
238,365,115 | 236,767,210 | 237,767,071 | 236,294,812 | ||||||||||||
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Dividends Declared Per Share of Common Stock |
0.13 | 0.12 | 0.49 | 0.45 | ||||||||||||
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NV ENERGY, INC.
CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
Residential |
2,060 | 2,142 | (3.8 | )% | 10,754 | 11,149 | (3.5 | )% | ||||||||||||||||
Commercial |
1,733 | 1,741 | (0.5 | )% | 7,205 | 7,357 | (2.1 | )% | ||||||||||||||||
Industrial |
2,538 | 2,511 | 1.1 | % | 10,218 | 10,217 | | |||||||||||||||||
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TOTAL RETAIL |
6,331 | 6,394 | (1.0 | )% | 28,177 | 28,723 | (1.9 | )% | ||||||||||||||||
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ELECTRIC SALES - MWhs (EXCLUDING CALIFORNIA)*
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
|||||||||||||||||||||||||
Residential |
2,060 | 2,071 | (0.5 | )% | 0.9 | % | 10,754 | 10,872 | (1.1 | )% | 0.9 | % | ||||||||||||||||||||
Commercial |
1,733 | 1,703 | 1.8 | % | 0.7 | % | 7,205 | 7,201 | 0.1 | % | 0.6 | % | ||||||||||||||||||||
Industrial |
2,538 | 2,481 | 2.3 | % | (2.4 | )% | 10,218 | 10,101 | 1.2 | % | (1.9 | )% | ||||||||||||||||||||
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TOTAL RETAIL |
6,331 | 6,255 | 1.2 | % | 0.9 | % | 28,177 | 28,174 | | 0.9 | % | |||||||||||||||||||||
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* | Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011. |
GAS SALES - Dth
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
TOTAL RETAIL |
5,188 | 4,631 | 12.0 | % | 15,781 | 14,739 | 7.1 | % | ||||||||||||||||
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ELECTRIC SOURCES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
Generated |
5,011 | 4,833 | 3.7 | % | 19,488 | 20,526 | (5.1 | )% | ||||||||||||||||
Purchased |
1,864 | 2,007 | (7.1 | )% | 10,945 | 9,861 | 11.0 | % | ||||||||||||||||
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TOTAL |
6,875 | 6,840 | 0.5 | % | 30,433 | 30,387 | 0.2 | % | ||||||||||||||||
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DEGREE DAYS
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
Normal | 2011 | 2010 | Change from Prior Year |
Normal | |||||||||||||||||||||||||
SOUTH |
||||||||||||||||||||||||||||||||
Heating |
909 | 725 | 25.4 | % | 856 | 2,040 | 1,895 | 7.7 | % | 1,991 | ||||||||||||||||||||||
Cooling |
211 | 230 | (8.3 | )% | 185 | 3,540 | 3,648 | (3.0 | )% | 3,540 | ||||||||||||||||||||||
NORTH |
||||||||||||||||||||||||||||||||
Heating |
1,911 | 1,795 | 6.5 | % | 1,934 | 5,112 | 4,868 | 5.0 | % | 4,960 | ||||||||||||||||||||||
Cooling |
4 | 18 | (77.8 | )% | 4 | 964 | 922 | 4.6 | % | 864 |
CAPITAL STRUCTURE
(dollars in thousands)
December 31, 2011 | December 31, 2010 | |||||||||||||||
Current maturities of long-term debt |
$ | 139,985 | 1.6 | % | $ | 355,929 | 4.1 | % | ||||||||
Long-term debt |
5,008,931 | 58.6 | % | 4,924,109 | 57.1 | % | ||||||||||
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Total debt |
$ | 5,148,916 | 60.2 | % | $ | 5,280,038 | 61.2 | % | ||||||||
Total shareholders equity |
3,406,079 | 39.8 | % | 3,350,818 | 38.8 | % | ||||||||||
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Total capitalization (including current maturities of long-term debt) |
$ | 8,554,995 | 100.0 | % | $ | 8,630,856 | 100.0 | % | ||||||||
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AVAILABLE LIQUIDITY AS OF DECEMBER 31, 2011
(dollars in millions)
NVE | NPC | SPPC | ||||||||||
Cash and Cash Equivalents |
$ | 20.1 | $ | 65.9 | $ | 55.2 | ||||||
Balance available on Revolving Credit Facilities |
N/A | 578.8 | 237.5 | |||||||||
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$ | 20.1 | $ | 644.7 | $ | 292.7 | |||||||
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NEVADA POWER COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands)
Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
OPERATING REVENUES |
$ | 391,513 | $ | 416,233 | $ | 2,054,393 | $ | 2,252,377 | ||||||||
OPERATING EXPENSES: |
||||||||||||||||
Fuel for power generation |
119,697 | 119,137 | 498,487 | 588,419 | ||||||||||||
Purchased power |
77,519 | 92,963 | 477,226 | 505,239 | ||||||||||||
Deferred energy |
(15,026 | ) | 13,124 | (16,300 | ) | 94,843 | ||||||||||
Energy efficiency program costs |
16,841 | | 37,292 | | ||||||||||||
Other operating expenses |
65,087 | 56,762 | 260,127 | 260,535 | ||||||||||||
Maintenance |
19,198 | 12,814 | 64,320 | 71,759 | ||||||||||||
Depreciation and amortization |
65,393 | 56,922 | 252,191 | 226,252 | ||||||||||||
Taxes other than income |
9,045 | 9,061 | 37,254 | 37,918 | ||||||||||||
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Total Operating Expenses |
357,754 | 360,783 | 1,610,597 | 1,784,965 | ||||||||||||
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OPERATING INCOME |
33,759 | 55,450 | 443,796 | 467,412 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest expense (net of AFUDC-debt: ($2,192), $5,680, $6,770 and $21,443) |
(58,917 | ) | (52,871 | ) | (221,953 | ) | (214,367 | ) | ||||||||
Interest income (expense) on regulatory items |
(2,661 | ) | (1,204 | ) | (8,572 | ) | (3,169 | ) | ||||||||
AFUDC-equity |
(2,681 | ) | 6,674 | 8,298 | 25,229 | |||||||||||
Other income |
5,476 | 6,457 | 14,774 | 15,541 | ||||||||||||
Other expense |
(17,785 | ) | (3,608 | ) | (33,020 | ) | (12,946 | ) | ||||||||
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Total Other Income (Expense) |
(76,568 | ) | (44,552 | ) | (240,473 | ) | (189,712 | ) | ||||||||
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Income (Loss) Before Income Tax Expense |
(42,809 | ) | 10,898 | 203,323 | 277,700 | |||||||||||
Income tax expense (benefit) |
(13,744 | ) | 1,341 | 70,737 | 91,757 | |||||||||||
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NET INCOME (LOSS) |
(29,065 | ) | 9,557 | 132,586 | 185,943 | |||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Change in compensation retirement benefits liability and amortization (Net of taxes $683, $232, $129 and $205) |
(1,270 | ) | (430 | ) | (241 | ) | (380 | ) | ||||||||
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COMPREHENSIVE INCOME (LOSS) |
$ | (30,335 | ) | $ | 9,127 | $ | 132,345 | $ | 185,563 | |||||||
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NEVADA POWER COMPANY
OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
Average Change in Customers |
2011 | 2010 | Change from Prior Year |
Average Change in Customers |
|||||||||||||||||||||||||
Residential |
1,502 | 1,522 | (1.3 | )% | 1.1 | % | 8,523 | 8,684 | (1.9 | )% | 1.1 | % | ||||||||||||||||||||
Commercial |
1,046 | 1,018 | 2.8 | % | 0.4 | % | 4,353 | 4,340 | 0.3 | % | 0.4 | % | ||||||||||||||||||||
Industrial |
1,860 | 1,848 | 0.6 | % | (2.4 | )% | 7,653 | 7,618 | 0.5 | % | (1.9 | )% | ||||||||||||||||||||
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TOTAL RETAIL |
4,408 | 4,388 | 0.5 | % | 1.0 | % | 20,529 | 20,642 | (0.5 | )% | 1.0 | % | ||||||||||||||||||||
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ELECTRIC SOURCES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
Generated |
3,896 | 3,537 | 10.1 | % | 15,034 | 15,405 | (2.4 | )% | ||||||||||||||||
Purchased |
756 | 1,140 | (33.7 | )% | 6,577 | 6,351 | 3.6 | % | ||||||||||||||||
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TOTAL |
4,652 | 4,677 | (0.5 | )% | 21,611 | 21,756 | (0.7 | )% | ||||||||||||||||
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CAPITAL STRUCTURE
(dollars in thousands)
December 31, 2011 | December 31, 2010 | |||||||||||||||
Current maturities of long-term debt |
$ | 139,985 | 2.2 | % | $ | 355,929 | 5.6 | % | ||||||||
Long-term debt |
3,319,605 | 52.6 | % | 3,221,833 | 50.8 | % | ||||||||||
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|||||||||
Total debt |
$ | 3,459,590 | 54.8 | % | $ | 3,577,762 | 56.4 | % | ||||||||
Total shareholders equity |
2,848,977 | 45.2 | % | 2,761,632 | 43.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total capitalization (including current maturities of long-term debt) |
$ | 6,308,567 | 100.0 | % | $ | 6,339,394 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands)
Three Months Ended December 31, |
Year
Ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
OPERATING REVENUES: |
||||||||||||||||
Electric |
$ | 170,955 | $ | 187,542 | $ | 716,417 | $ | 836,879 | ||||||||
Gas |
47,125 | 51,232 | 172,482 | 190,943 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Operating Revenues |
218,080 | 238,774 | 888,899 | 1,027,822 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
OPERATING EXPENSES: |
||||||||||||||||
Fuel for power generation |
40,968 | 51,833 | 182,098 | 233,065 | ||||||||||||
Purchased power |
37,683 | 33,380 | 156,648 | 143,642 | ||||||||||||
Gas purchased for resale |
37,402 | 36,166 | 125,155 | 137,702 | ||||||||||||
Deferral of energy - electric - net |
(19,521 | ) | (8,714 | ) | (65,445 | ) | 8,475 | |||||||||
Deferral of energy - gas - net |
(5,108 | ) | 2,143 | (1,588 | ) | 9,789 | ||||||||||
Energy efficiency program costs |
3,648 | | 6,245 | | ||||||||||||
Other operating expenses |
35,864 | 35,575 | 146,699 | 149,946 | ||||||||||||
Maintenance |
10,792 | 6,038 | 38,987 | 32,808 | ||||||||||||
Depreciation and amortization |
26,099 | 27,070 | 105,746 | 106,807 | ||||||||||||
Taxes other than income |
5,246 | 6,099 | 22,921 | 24,593 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Operating Expenses |
173,073 | 189,590 | 717,466 | 846,827 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
OPERATING INCOME |
45,007 | 49,184 | 171,433 | 180,995 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest expense (net of AFUDC-debt: $539, $326, $1,948 and $1,912) |
(16,854 | ) | (17,373 | ) | (67,435 | ) | (68,514 | ) | ||||||||
Interest income (expense) on regulatory items |
(1,520 | ) | (2,560 | ) | (7,749 | ) | (9,348 | ) | ||||||||
AFUDC-equity |
700 | 523 | 2,575 | 2,883 | ||||||||||||
Other income |
2,206 | 2,472 | 6,883 | 16,748 | ||||||||||||
Other expense |
(7,221 | ) | (2,430 | ) | (14,624 | ) | (9,985 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Other Income (Expense) |
(22,689 | ) | (19,368 | ) | (80,350 | ) | (68,216 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income Before Income Tax Expense |
22,318 | 29,816 | 91,083 | 112,779 | ||||||||||||
Income tax expense |
7,856 | 10,338 | 31,197 | 40,404 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCOME |
14,462 | 19,478 | 59,886 | 72,375 | ||||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Change in compensation retirement benefits liability and amortization (Net of taxes $556, $130, ($645) and $116) |
(995 | ) | (242 | ) | 1,236 | (215 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
COMPREHENSIVE INCOME |
$ | 13,467 | $ | 19,236 | $ | 61,122 | $ | 72,160 | ||||||||
|
|
|
|
|
|
|
|
SIERRA PACIFIC POWER COMPANY
OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS
(unaudited)
ELECTRIC SALES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
Residential |
558 | 620 | (10.0 | )% | 2,231 | 2,465 | (9.5 | )% | ||||||||||||||||
Commercial |
687 | 723 | (5.0 | )% | 2,852 | 3,017 | (5.5 | )% | ||||||||||||||||
Industrial |
678 | 663 | 2.3 | % | 2,565 | 2,599 | (1.3 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL RETAIL |
1,923 | 2,006 | (4.1 | )% | 7,648 | 8,081 | (5.4 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
ELECTRIC SALES - MWhs (EXCLUDING CALIFORNIA)*
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
2011 | 2010 | Change From Prior Year |
Average Change in Customers |
|||||||||||||||||||||||||
Residential |
558 | 549 | 1.6 | % | 0.6 | % | 2,231 | 2,188 | 2.0 | % | 0.4 | % | ||||||||||||||||||||
Commercial |
687 | 685 | 0.3 | % | 1.4 | % | 2,852 | 2,861 | (0.3 | )% | 0.9 | % | ||||||||||||||||||||
Industrial |
678 | 633 | 7.1 | % | (1.8 | )% | 2,565 | 2,483 | 3.3 | % | (1.8 | )% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
TOTAL RETAIL |
1,923 | 1,867 | 3.0 | % | 0.7 | % | 7,648 | 7,532 | 1.5 | % | 0.4 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
* | Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011. |
GAS SALES - Dth
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
TOTAL RETAIL |
5,188 | 4,631 | 12.0 | % | 15,781 | 14,739 | 7.1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
ELECTRIC SOURCES - MWhs
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year |
2011 | 2010 | Change from Prior Year |
|||||||||||||||||||
Generated |
1,115 | 1,296 | (14.0 | )% | 4,454 | 5,121 | (13.0 | )% | ||||||||||||||||
Purchased |
1,108 | 867 | 27.8 | % | 4,368 | 3,510 | 24.4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL |
2,223 | 2,163 | 2.8 | % | 8,822 | 8,631 | 2.2 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
CAPITAL STRUCTURE
(dollars in thousands)
December 31, 2011 | December 31, 2010 | |||||||||||||||
Long-term debt |
$ | 1,179,326 | 54.8 | % | $ | 1,195,775 | 55.1 | % | ||||||||
Total shareholders equity |
974,542 | 45.2 | % | 973,420 | 44.9 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total capitalization |
$ | 2,153,868 | 100.0 | % | $ | 2,169,195 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy in order to provide information that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a non-GAAP financial measure as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.
Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy calculate as operating revenues less energy costs and energy efficiency program costs, provides a measure of income available to support the other operating expenses. Gross margin changes are based primarily on general base rate adjustments (which are required to be filed by statute every three years). Reconciliations between GAAP operating income and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.
NV Energy, Inc.
Consolidated Gross Margin
(dollars in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
Operating Revenues: |
$ | 609,597 | $ | 655,011 | (6.9 | )% | $ | 2,943,307 | $ | 3,280,222 | (10.3 | )% | ||||||||||||
Energy Costs: |
||||||||||||||||||||||||
Fuel for power generation |
160,665 | 170,970 | (6.0 | )% | 680,585 | 821,484 | (17.2 | )% | ||||||||||||||||
Purchased power |
115,202 | 126,343 | (8.8 | )% | 633,874 | 648,881 | (2.3 | )% | ||||||||||||||||
Gas purchased for resale |
37,402 | 36,166 | 3.4 | % | 125,155 | 137,702 | (9.1 | )% | ||||||||||||||||
Deferred energy |
(39,655 | ) | 6,553 | (705.1 | )% | (83,333 | ) | 113,107 | (173.7 | )% | ||||||||||||||
Energy efficiency program costs |
20,489 | | N/A | 43,537 | | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
294,103 | 340,032 | 1,399,818 | 1,721,174 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross Margin |
$ | 315,494 | $ | 314,979 | 0.2 | % | $ | 1,543,489 | $ | 1,559,048 | (1.0 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other operating expenses |
102,997 | 93,486 | 411,115 | 414,241 | ||||||||||||||||||||
Maintenance |
29,990 | 18,852 | 103,307 | 104,567 | ||||||||||||||||||||
Depreciation and amortization |
91,492 | 83,992 | 357,937 | 333,059 | ||||||||||||||||||||
Taxes other than income |
14,331 | 15,214 | 60,465 | 62,746 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
$ | 76,684 | $ | 103,435 | (25.9 | )% | $ | 610,665 | $ | 644,435 | (5.2 | )% | ||||||||||||
|
|
|
|
|
|
|
|
Nevada Power Company
Gross Margin
(dollars in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
Operating Revenues: |
$ | 391,513 | $ | 416,233 | (5.9 | )% | $ | 2,054,393 | $ | 2,252,377 | (8.8 | )% | ||||||||||||
Energy Costs: |
||||||||||||||||||||||||
Fuel for power generation |
119,697 | 119,137 | 0.5 | % | 498,487 | 588,419 | (15.3 | )% | ||||||||||||||||
Purchased power |
77,519 | 92,963 | (16.6 | )% | 477,226 | 505,239 | (5.5 | )% | ||||||||||||||||
Deferred energy |
(15,026 | ) | 13,124 | (214.5 | )% | (16,300 | ) | 94,843 | (117.2 | )% | ||||||||||||||
Energy efficiency program costs |
16,841 | | N/A | 37,292 | | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
199,031 | 225,224 | 996,705 | 1,188,501 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross Margin |
$ | 192,482 | $ | 191,009 | 0.8 | % | $ | 1,057,688 | $ | 1,063,876 | (0.6 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other operating expenses |
65,087 | 56,762 | 260,127 | 260,535 | ||||||||||||||||||||
Maintenance |
19,198 | 12,814 | 64,320 | 71,759 | ||||||||||||||||||||
Depreciation and amortization |
65,393 | 56,922 | 252,191 | 226,252 | ||||||||||||||||||||
Taxes other than income |
9,045 | 9,061 | 37,254 | 37,918 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
$ | 33,759 | $ | 55,450 | (39.1 | )% | $ | 443,796 | $ | 467,412 | (5.1 | )% | ||||||||||||
|
|
|
|
|
|
|
|
Sierra Pacific Power Company
Gross Margin
(dollars in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | Change from Prior Year % |
2011 | 2010 | Change from Prior Year % |
|||||||||||||||||||
Operating Revenues: |
||||||||||||||||||||||||
Electric |
$ | 170,955 | $ | 187,542 | (8.8 | )% | $ | 716,417 | $ | 836,879 | (14.4 | )% | ||||||||||||
Gas |
47,125 | 51,232 | (8.0 | )% | 172,482 | 190,943 | (9.7 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
218,080 | 238,774 | (8.7 | )% | 888,899 | 1,027,822 | (13.5 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Energy Costs: |
||||||||||||||||||||||||
Fuel for power generation |
40,968 | 51,833 | (21.0 | )% | 182,098 | 233,065 | (21.9 | )% | ||||||||||||||||
Purchased power |
37,683 | 33,380 | 12.9 | % | 156,648 | 143,642 | 9.1 | % | ||||||||||||||||
Gas purchased for resale |
37,402 | 36,166 | 3.4 | % | 125,155 | 137,702 | (9.1 | )% | ||||||||||||||||
Deferral of energy - electric - net |
(19,521 | ) | (8,714 | ) | 124.0 | % | (65,445 | ) | 8,475 | (872.2 | )% | |||||||||||||
Deferral of energy - gas - net |
(5,108 | ) | 2,143 | (338.4 | )% | (1,588 | ) | 9,789 | (116.2 | )% | ||||||||||||||
Energy efficiency program costs |
3,648 | | N/A | 6,245 | | N/A | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | 95,072 | $ | 114,808 | (17.2 | )% | $ | 403,113 | $ | 532,673 | (24.3 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross Margin by Segment: |
||||||||||||||||||||||||
Electric |
108,177 | 111,043 | (2.6 | )% | 436,871 | 451,697 | (3.3 | )% | ||||||||||||||||
Gas |
14,831 | 12,923 | 14.8 | % | 48,915 | 43,452 | 12.6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross Margin |
$ | 123,008 | $ | 123,966 | (0.8 | )% | $ | 485,786 | $ | 495,149 | (1.9 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other operating expenses |
35,864 | 35,575 | 146,699 | 149,946 | ||||||||||||||||||||
Maintenance |
10,792 | 6,038 | 38,987 | 32,808 | ||||||||||||||||||||
Depreciation and amortization |
26,099 | 27,070 | 105,746 | 106,807 | ||||||||||||||||||||
Taxes other than income |
5,246 | 6,099 | 22,921 | 24,593 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
$ | 45,007 | $ | 49,184 | (8.5 | )% | $ | 171,433 | $ | 180,995 | (5.3 | )% | ||||||||||||
|
|
|
|
|
|
|
|
Exhibit 99.2
Fourth Quarter 2011 Earnings Call Supplemental Slides
February 21, 2012
Fourth Quarter Financial Results
NV Energy Consolidated
Net Income (Loss)
$14.2 $ millions
$(25.2) 2010 2011
EPS
diluted
$0.06
$(0.11) 2010 2011
Gross Margin
$ millions
$315.0 $315.5
Major Drivers
Q4 2011 vs. Q4 2010 Pre-Tax After Tax
Gross Margin: ($ millions) EPS Impact
Retail margin $ 4.6 $ 0.01
Lost revenue recovery (EEIR)* 1.7
California sale (4.2) (0.01)
Other:
Harry Allen plant (18.4) (0.05)
Plant outage costs (timing) (12.2) (0.03)
Regulatory adjustments/reserves (20.9) (0.05)
Tax rate (0.02)
* Energy efficiency implementation rates
2
12 Month Financial Results
NV Energy Consolidated
Net Income
$ millions EPS diluted
$227 $0.96 $163 $0.69
2010 2011 2010 2011
Gross Margin
$ millions
$1,559 $1,543
2010 2011
Major Drivers
2011 vs. 2010 Pre-Tax Total After Tax
($ millions) EPS Impact
Gross Margin $ (15.5) $ (0.04)
Other:
Harry Allen plant (42.4) (0.12)
O&M (1) 8.6 0.02
Regulatory adjustments/reserves (26.7) (0.07)
Gain on asset sale (2010) (7.6) (0.02)
Depreciation and amortization (11.5) (0.03)
(1) Excludes Harry Allen plant ($6.3 increase) and regulatory
adjustments ($2.1 decrease)
3
Customer and Usage Trends
NV Energy South
Change in Number of Customers (% change, quarter vs. prior year)
Low-Use Customer Accounts (% of Residential Customers)
1.50%
1.00% 1.0%
0.50%
0.00%
-0.50%
12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11
9.5%
9.0%
8.5%
8.0%
7.5% 7.7%
7.0%
6.5%
6.0%
12/09 03/10 06/10 09/10 12/10 03/11 06/11 09/11 12/11
NVE-Souths customer base continued to expand in the fourth quarter. The trend in low-use accounts is favorable.
4
Customer and Usage Trends
NV Energy North
Change in Number of Customers
1.50% (% change, quarter vs. prior year)
1.00%
0.7%
0.50%
0.00%
-0.50%
12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11
Low-Use Customer Accounts
9.0% (% of Residential Customers)
8.5%
8.0%
7.8%
7.5%
7.0%
6.5%
6.0%
12/09 03/10 06/10 09/10 12/10 03/11 06/11 09/11 12/11
NVE-Norths customer growth improved in the fourth quarter. Low-use accounts continued to show a favorable trend.
5
Capital Expenditures
NV Energy Consolidated $ millions *
$1,536
$843 $629 $621 $510 $450 $440 $370 $340
2008 2009 2010 2011 2012 2013 2014 2015 2016 Base CapEx Renewable All Other
* Gross expenditures, including contributions in aid of construction, debt AFUDC, and net salvage
6
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