News Releases
NV Energy Reports Third Quarter Earnings
Nov 2, 2011
4:00am
LAS VEGAS, Nov. 2, 2011 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three months and nine months ended September 30, 2011.
(Logo: http://photos.prnewswire.com/prnh/20100825/LA55163LOGO)
NV Energy, Inc. | ||||||||||||
Consolidated Results | ||||||||||||
Periods Ended September 30 | ||||||||||||
Net Income | EPS | |||||||||||
($ in millions) | (diluted) | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Three Months | $ | 173.5 | $ | 177.5 | $ | 0.73 | $ | 0.75 | ||||
Nine Months | $ | 188.7 | $ | 212.8 | $ | 0.80 | $ | 0.90 | ||||
"As expected, the completion of the new Harry Allen combined cycle plant was a key factor affecting our third quarter results," said Michael Yackira, president and chief executive officer of NV Energy, Inc. "Harry Allen concludes our major investments in new efficient generation over the past five years. I am pleased that our continuing efforts to control spending helped mitigate the additional costs of this new plant."
The 2010 amounts in the table above incorporate an $8.0 million (pre-tax) accrual for the September 2010 termination of a long term service agreement(1). In the third quarter of 2011, after reaching a settlement with the vendor, NV Energy reversed the accrued termination costs. The reversal benefitted results for the three and nine months ended September 30, 2011 by $8.0 million (pre-tax).
Results for the nine months ended September 30, 2011 were adversely affected by $8.6 million of pre-tax adjustments in connection with energy efficiency implementation rates as previously disclosed.
Results for both periods ended September 30, 2010 reflect the results of NV Energy's California operations, which were sold effective January 1, 2011. Results for the nine months ended September 30, 2010 also reflect a $7.6 million pre-tax gain on a May 2010 asset sale as previously disclosed.
(1) A revision to the September 30, 2010 SEC Form 10-Q as disclosed in the SEC Form 10-K for the fiscal year ended December 31, 2010.
Webcast Scheduled for 7 a.m. PDT today, Wednesday, November 2, 2011
Senior management of NV Energy will review the company's third quarter 2011 financial results and other matters during a conference call and live webcast today, Wednesday, November 2, at 7 a.m. Pacific Daylight Time.
The webcast will be accessible on the NV Energy website at: www.nvenergy.com.
A taped replay will remain on the company's 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, 219843.
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, construction risks, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, threat of 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 and June 30, 2011, and Annual Reports 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 INCOME STATEMENTS | |||||||||||||
(Dollars in Thousands, Except Per Share Amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
OPERATING REVENUES | $ | 1,017,796 | $ | 1,128,039 | $ | 2,333,710 | $ | 2,625,211 | |||||
OPERATING EXPENSES: | |||||||||||||
Fuel for power generation | 216,779 | 247,233 | 519,920 | 650,514 | |||||||||
Purchased power | 223,348 | 249,854 | 518,672 | 522,538 | |||||||||
Gas purchased for resale | 10,137 | 10,823 | 87,753 | 101,536 | |||||||||
Deferred energy | (33,620) | 34,055 | (43,678) | 106,554 | |||||||||
Other operating expenses | 127,645 | 112,741 | 331,166 | 320,755 | |||||||||
Maintenance | 11,369 | 31,126 | 73,317 | 85,715 | |||||||||
Depreciation and amortization | 93,737 | 83,423 | 266,445 | 249,067 | |||||||||
Taxes other than income | 15,205 | 15,420 | 46,134 | 47,532 | |||||||||
Total Operating Expenses | 664,600 | 784,675 | 1,799,729 | 2,084,211 | |||||||||
OPERATING INCOME | 353,196 | 343,364 | 533,981 | 541,000 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||||
Interest expense (net of AFUDC-debt: $1,326, $6,485, | |||||||||||||
$10,371 and $17,349) | (80,496) | (80,789) | (238,718) | (241,625) | |||||||||
Interest expense on regulatory items | (4,316) | (3,685) | (12,140) | (8,753) | |||||||||
AFUDC-equity | 1,690 | 7,824 | 12,854 | 20,915 | |||||||||
Other income | 4,645 | 9,246 | 14,942 | 30,524 | |||||||||
Other expense | (9,857) | (4,313) | (23,600) | (17,038) | |||||||||
Total Other Income (Expense) | (88,334) | (71,717) | (246,662) | (215,977) | |||||||||
Income Before Income Tax Expense | 264,862 | 271,647 | 287,319 | 325,023 | |||||||||
Income tax expense | 91,400 | 94,101 | 98,639 | 112,252 | |||||||||
NET INCOME | $ | 173,462 | $ | 177,546 | $ | 188,680 | $ | 212,771 | |||||
Amount per share basic and diluted | |||||||||||||
Net income per share - basic | $ | 0.74 | $ | 0.76 | $ | 0.80 | $ | 0.91 | |||||
Net income per share - diluted | 0.73 | 0.75 | 0.80 | 0.90 | |||||||||
Weighted Average Shares of Common Stock Outstanding - basic | 235,990,373 | 235,117,058 | 235,796,321 | 234,991,208 | |||||||||
Weighted Average Shares of Common Stock Outstanding - diluted | 237,901,330 | 236,477,187 | 237,320,796 | 236,136,725 | |||||||||
Dividends Declared Per Share of Common Stock | $ | 0.12 | $ | 0.11 | $ | 0.36 | $ | 0.33 | |||||
NV ENERGY, INC. | |||||||||||||||||
CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS | |||||||||||||||||
(unaudited) | |||||||||||||||||
ELECTRIC SALES - MWh's | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Change from | Change from | ||||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||||
Residential | 4,322 | 4,409 | (2.0)% | 8,694 | 9,007 | (3.5)% | |||||||||||
Commercial | 2,141 | 2,192 | (2.3)% | 5,472 | 5,616 | (2.6)% | |||||||||||
Industrial | 2,713 | 2,799 | (3.1)% | 7,680 | 7,707 | (0.4)% | |||||||||||
TOTAL RETAIL | 9,176 | 9,400 | (2.4)% | 21,846 | 22,330 | (2.2)% | |||||||||||
Other | 65 | 67 | (3.0)% | 178 | 181 | (1.7)% | |||||||||||
TOTAL | 9,241 | 9,467 | (2.4)% | 22,024 | 22,511 | (2.2)% | |||||||||||
ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)* | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Change from | Change in | Change from | Change in | ||||||||||||||||||||||
2011 | 2010 | Prior Year | Customers | 2011 | 2010 | Prior Year | Customers | ||||||||||||||||||
Residential | 4,322 | 4,354 | (0.7)% | 0.9% | 8,694 | 8,801 | (1.2)% | 0.9% | |||||||||||||||||
Commercial | 2,141 | 2,153 | (0.6)% | 0.5% | 5,472 | 5,499 | (0.5)% | 0.6% | |||||||||||||||||
Industrial | 2,713 | 2,775 | (2.2)% | (3.0)% | 7,680 | 7,621 | 0.8% | (1.7)% | |||||||||||||||||
TOTAL RETAIL | 9,176 | 9,282 | (1.1)% | 21,846 | 21,921 | (0.3)% | |||||||||||||||||||
Other | 65 | 67 | (3.0)% | 178 | 181 | (1.7)% | |||||||||||||||||||
TOTAL | 9,241 | 9,349 | (1.2)% | 0.8% | 22,024 | 22,102 | (0.4)% | 0.8% | |||||||||||||||||
* 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 September 30, | Nine Months Ended September 30, | |||||||||||||
Change from | Change from | |||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | |||||||||
TOTAL RETAIL | 1,187 | 1,272 | (6.7)% | 10,593 | 10,108 | 4.8% | ||||||||
ELECTRIC SOURCES - MWh's | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
Generated | 6,180 | 6,263 | (1.3)% | 14,477 | 15,693 | (7.7)% | |||||||||
Purchased | 3,577 | 3,571 | 0.2% | 9,081 | 7,854 | 15.6% | |||||||||
TOTAL | 9,757 | 9,834 | 23,558 | 23,547 | |||||||||||
DEGREE DAYS | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
SOUTH | |||||||||||||||
Heating | - | - | N/A | 1,131 | 1,170 | (3.3)% | |||||||||
Cooling | 2,312 | 2,412 | (4.1)% | 3,329 | 3,418 | (2.6)% | |||||||||
NORTH | |||||||||||||||
Heating | 3 | 39 | (92.3)% | 3,201 | 3,023 | 5.9% | |||||||||
Cooling | 848 | 767 | 10.6% | 960 | 904 | 6.2% | |||||||||
CAPITAL STRUCTURE | |||||||||||||||
(dollars in thousands) | |||||||||||||||
September 30, 2011 | September 30, 2010 | ||||||||||||||
Current maturities of long-term debt | $ | 136,139 | 1.6% | $ | 356,538 | 3.9% | |||||||||
Long-term debt | 5,038,232 | 58.3% | 5,313,407 | 58.8% | |||||||||||
Total debt | $ | 5,174,371 | 59.9% | $ | 5,669,945 | 62.8% | |||||||||
Total shareholders' equity | 3,465,689 | 40.1% | 3,363,314 | 37.2% | |||||||||||
Total capitalization (including current maturities of long-term debt) | $ | 8,640,060 | 100.0% | $ | 9,033,259 | 100.0% | |||||||||
AVAILABLE LIQUIDITY AS OF SEPTEMBER 30, 2011 | |||||||||||||
(dollars in millions ) | |||||||||||||
NVE | NPC | SPPC | |||||||||||
Cash and Cash Equivalents | $ | 32.9 | $ | 34.8 | $ | 66.3 | |||||||
Balance available on Revolving Credit Facilities | N/A | 548.0 | 237.5 | ||||||||||
Less reduction for hedging transactions | N/A | (1.7) | (0.5) | ||||||||||
$ | 32.9 | $ | 581.1 | $ | 303.3 | ||||||||
NEVADA POWER COMPANY | |||||||||||||
CONSOLIDATED INCOME STATEMENTS | |||||||||||||
(Dollars in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
OPERATING REVENUES | $ | 798,914 | $ | 870,950 | $ | 1,662,880 | $ | 1,836,144 | |||||
OPERATING EXPENSES: | |||||||||||||
Fuel for power generation | 162,976 | 181,100 | 378,790 | 469,282 | |||||||||
Purchased power | 181,733 | 216,309 | 399,707 | 412,276 | |||||||||
Deferred energy | (10,354) | 22,296 | (1,274) | 81,719 | |||||||||
Other operating expenses | 88,455 | 73,762 | 215,491 | 203,773 | |||||||||
Maintenance | 3,460 | 23,707 | 45,122 | 58,945 | |||||||||
Depreciation and amortization | 67,212 | 56,575 | 186,798 | 169,330 | |||||||||
Taxes other than income | 9,105 | 9,038 | 28,209 | 28,857 | |||||||||
Total Operating Expenses | 502,587 | 582,787 | 1,252,843 | 1,424,182 | |||||||||
OPERATING INCOME | 296,327 | 288,163 | 410,037 | 411,962 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||||
Interest expense (net of AFUDC-debt: $842, | |||||||||||||
$5,787, $8,962 and $15,763) | (55,267) | (54,144) | (163,036) | (161,496) | |||||||||
Interest expense on regulatory items | (2,478) | (1,157) | (5,911) | (1,965) | |||||||||
AFUDC-equity | 1,026 | 6,795 | 10,979 | 18,555 | |||||||||
Other income | 2,990 | 3,842 | 9,298 | 9,084 | |||||||||
Other expense | (7,324) | (3,034) | (15,235) | (9,338) | |||||||||
Total Other Income (Expense) | (61,053) | (47,698) | (163,905) | (145,160) | |||||||||
Income Before Income Tax Expense | 235,274 | 240,465 | 246,132 | 266,802 | |||||||||
Income tax expense | 80,666 | 81,537 | 84,481 | 90,416 | |||||||||
NET INCOME | $ | 154,608 | $ | 158,928 | $ | 161,651 | $ | 176,386 | |||||
NEVADA POWER COMPANY | ||||||||||||||||||||||||
CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
ELECTRIC SALES - MWh's | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Change from | Change in | Change from | Change in | |||||||||||||||||||||
2011 | 2010 | Prior Year | Customers | 2011 | 2010 | Prior Year | Customers | |||||||||||||||||
Residential | 3,711 | 3,758 | (1.3)% | 1.1% | 7,021 | 7,162 | (2.0)% | 1.1% | ||||||||||||||||
Commercial | 1,319 | 1,327 | (0.6)% | 0.7% | 3,307 | 3,322 | (0.5)% | 0.5% | ||||||||||||||||
Industrial | 2,070 | 2,123 | (2.5)% | (2.9) % | 5,793 | 5,771 | 0.4% | (1.7)% | ||||||||||||||||
TOTAL RETAIL | 7,100 | 7,208 | (1.5)% | 16,121 | 16,255 | (0.8)% | ||||||||||||||||||
Other | 61 | 63 | (3.2)% | 166 | 169 | (1.8)% | ||||||||||||||||||
TOTAL | 7,161 | 7,271 | (1.5)% | 1.0% | 16,287 | 16,424 | (0.8)% | 1.0% | ||||||||||||||||
ELECTRIC SOURCES - MWh's | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
Generated | 4,879 | 4,738 | 3.0% | 11,138 | 11,868 | (6.2)% | |||||||||
Purchased | 2,520 | 2,804 | (10.1) % | 5,821 | 5,211 | 11.7% | |||||||||
TOTAL | 7,399 | 7,542 | 16,959 | 17,079 | |||||||||||
DEGREE DAYS | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
Heating | - | - | N/A | 1,131 | 1,170 | (3.3)% | |||||||||
Cooling | 2,312 | 2,412 | (4.1)% | 3,329 | 3,418 | (2.6)% | |||||||||
CAPITAL STRUCTURE | |||||||||||||||
(dollars in thousands) | |||||||||||||||
September 30, 2011 | September 30, 2010 | ||||||||||||||
Current maturities of long-term debt | $ | 136,139 | 2.1% | $ | 356,538 | 5.3% | |||||||||
Long-term debt | 3,352,044 | 52.4% | 3,546,724 | 53.2% | |||||||||||
Total debt | $ | 3,488,183 | 54.5% | $ | 3,903,262 | 58.5% | |||||||||
Total shareholders' equity | 2,913,311 | 45.5% | 2,764,475 | 41.5% | |||||||||||
Total capitalization (including current maturities of long-term debt) | $ | 6,401,494 | 100.0% | $ | 6,667,737 | 100.0% | |||||||||
SIERRA PACIFIC POWER COMPANY | |||||||||||||
CONSOLIDATED INCOME STATEMENTS | |||||||||||||
(Dollars in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
OPERATING REVENUES: | |||||||||||||
Electric | $ | 202,263 | $ | 237,798 | $ | 545,462 | $ | 649,337 | |||||
Gas | 16,615 | 19,286 | 125,357 | 139,711 | |||||||||
Total Operating Revenues | 218,878 | 257,084 | 670,819 | 789,048 | |||||||||
OPERATING EXPENSES: | |||||||||||||
Fuel for power generation | 53,803 | 66,133 | 141,130 | 181,232 | |||||||||
Purchased power | 41,615 | 33,545 | 118,965 | 110,262 | |||||||||
Gas purchased for resale | 10,137 | 10,823 | 87,753 | 101,536 | |||||||||
Deferral of energy - electric - net | (22,095) | 9,964 | (45,924) | 17,189 | |||||||||
Deferral of energy - gas - net | (1,171) | 1,795 | 3,520 | 7,646 | |||||||||
Other operating expenses | 38,529 | 38,004 | 113,432 | 114,371 | |||||||||
Maintenance | 7,909 | 7,419 | 28,195 | 26,770 | |||||||||
Depreciation and amortization | 26,525 | 26,848 | 79,647 | 79,737 | |||||||||
Taxes other than income | 6,052 | 6,330 | 17,675 | 18,494 | |||||||||
Total Operating Expenses | 161,304 | 200,861 | 544,393 | 657,237 | |||||||||
OPERATING INCOME | 57,574 | 56,223 | 126,426 | 131,811 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||||
Interest expense (net of AFUDC-debt: $484, | |||||||||||||
$698, $1,409 and $1,586) | (16,861) | (16,983) | (50,581) | (51,141) | |||||||||
Interest expense on regulatory items | (1,838) | (2,528) | (6,229) | (6,788) | |||||||||
AFUDC-equity | 664 | 1,029 | 1,875 | 2,360 | |||||||||
Other income | 1,448 | 2,379 | 4,677 | 14,276 | |||||||||
Other expense | (2,255) | (1,285) | (7,403) | (7,555) | |||||||||
Total Other Income (Expense) | (18,842) | (17,388) | (57,661) | (48,848) | |||||||||
Income Before Income Tax Expense | 38,732 | 38,835 | 68,765 | 82,963 | |||||||||
Income tax expense | 13,396 | 14,373 | 23,341 | 30,066 | |||||||||
NET INCOME | $ | 25,336 | $ | 24,462 | $ | 45,424 | $ | 52,897 | |||||
SIERRA PACIFIC POWER COMPANY | |||||||||||||||||
CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS | |||||||||||||||||
(unaudited) | |||||||||||||||||
ELECTRIC SALES - MWh's | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Change from | Change from | ||||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||||
Residential | 611 | 651 | (6.1)% | 1,673 | 1,845 | (9.3)% | |||||||||||
Commercial | 822 | 865 | (5.0)% | 2,165 | 2,294 | (5.6)% | |||||||||||
Industrial | 643 | 676 | (4.9)% | 1,887 | 1,936 | (2.5)% | |||||||||||
TOTAL RETAIL | 2,076 | 2,192 | (5.3)% | 5,725 | 6,075 | (5.8)% | |||||||||||
Other | 4 | 4 | N/A | 12 | 12 | -% | |||||||||||
TOTAL | 2,080 | 2,196 | (5.3)% | 5,737 | 6,087 | (5.7)% | |||||||||||
ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)* | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Change from | Change in | Change from | Change in | ||||||||||||||||||||
2011 | 2010 | Prior Year | Customers | 2011 | 2010 | Prior Year | Customers | ||||||||||||||||
Residential | 611 | 596 | 2.5% | 0.3% | 1,673 | 1,639 | 2.1% | 0.3% | |||||||||||||||
Commercial | 822 | 826 | (0.5)% | 0.1% | 2,165 | 2,177 | (0.6)% | 0.8% | |||||||||||||||
Industrial | 643 | 652 | (1.4)% | (4.2)% | 1,887 | 1,850 | 2.0% | (1.8)% | |||||||||||||||
TOTAL RETAIL | 2,076 | 2,074 | 0.1% | 5,725 | 5,666 | 1.0% | |||||||||||||||||
Other | 4 | 4 | N/A | 12 | 12 | -% | |||||||||||||||||
TOTAL | 2,080 | 2,078 | 0.1% | 0.2% | 5,737 | 5,678 | 1.0% | 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 September 30, | Nine Months Ended September 30, | |||||||||||||
Change from | Change from | |||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | |||||||||
TOTAL RETAIL | 1,187 | 1,272 | (6.7)% | 10,593 | 10,108 | 4.8% | ||||||||
ELECTRIC SOURCES - MWh's | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
Generated | 1,301 | 1,525 | (14.7)% | 3,339 | 3,825 | (12.7)% | |||||||||
Purchased | 1,057 | 767 | 37.8% | 3,260 | 2,643 | 23.3% | |||||||||
TOTAL | 2,358 | 2,292 | 6,599 | 6,468 | |||||||||||
DEGREE DAYS | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Change from | Change from | ||||||||||||||
2011 | 2010 | Prior Year | 2011 | 2010 | Prior Year | ||||||||||
Heating | 3 | 39 | (92.3)% | 3,201 | 3,023 | 5.9% | |||||||||
Cooling | 848 | 767 | 10.6% | 960 | 904 | 6.2% | |||||||||
CAPITAL STRUCTURE | |||||||||||||||
(dollars in thousands) | |||||||||||||||
September 30, 2011 | September 30, 2010 | ||||||||||||||
Long-term debt | $ | 1,179,688 | 55.1% | $ | 1,281,138 | 55.8% | |||||||||
Total debt | $ | 1,179,688 | 55.1% | $ | 1,281,138 | 55.8% | |||||||||
Total shareholders' equity | 961,386 | 44.9% | 1,014,181 | 44.2% | |||||||||||
Total capitalization (including current maturities of long-term debt) | $ | 2,141,074 | 100.0% | $ | 2,295,319 | 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, 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
Change from | Change from | ||||||||||||||||
2011 | 2010 | Prior Year % | 2011 | 2010 | Prior Year % | ||||||||||||
Operating Revenues: | $ | 1,017,796 | $ | 1,128,039 | (9.8)% | $ | 2,333,710 | $ | 2,625,211 | (11.1)% | |||||||
Energy Costs: | |||||||||||||||||
Fuel for power generation | 216,779 | 247,233 | (12.3)% | 519,920 | 650,514 | (20.1)% | |||||||||||
Purchased power | 223,348 | 249,854 | (10.6)% | 518,672 | 522,538 | (0.7)% | |||||||||||
Gas purchased for resale | 10,137 | 10,823 | (6.3)% | 87,753 | 101,536 | (13.6)% | |||||||||||
Deferred energy | (33,620) | 34,055 | (43,678) | 106,554 | |||||||||||||
$ | 416,644 | $ | 541,965 | (23.1)% | $ | 1,082,667 | $ | 1,381,142 | (21.6)% | ||||||||
Gross Margin | $ | 601,152 | $ | 586,074 | 2.6% | $ | 1,251,043 | $ | 1,244,069 | 0.6% | |||||||
Other operating expenses | 127,645 | 112,741 | 331,166 | 320,755 | |||||||||||||
Maintenance | 11,369 | 31,126 | 73,317 | 85,715 | |||||||||||||
Depreciation and amortization | 93,737 | 83,423 | 266,445 | 249,067 | |||||||||||||
Taxes other than income | 15,205 | 15,420 | 46,134 | 47,532 | |||||||||||||
Operating Income | $ | 353,196 | $ | 343,364 | 2.9% | $ | 533,981 | $ | 541,000 | (1.3)% | |||||||
Nevada Power Company | |||||||||||||||||
Gross Margin | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Change from | Change from | ||||||||||||||||
2011 | 2010 | Prior Year % | 2011 | 2010 | Prior Year % | ||||||||||||
Operating Revenues: | $ | 798,914 | $ | 870,950 | (8.3)% | $ | 1,662,880 | $ | 1,836,144 | (9.4)% | |||||||
Energy Costs: | |||||||||||||||||
Fuel for power generation | 162,976 | 181,100 | (10.0)% | 378,790 | 469,282 | (19.3)% | |||||||||||
Purchased power | 181,733 | 216,309 | (16.0)% | 399,707 | 412,276 | (3.0)% | |||||||||||
Deferred energy | (10,354) | 22,296 | (146.4)% | (1,274) | 81,719 | (101.6)% | |||||||||||
$ | 334,355 | $ | 419,705 | (20.3)% | $ | 777,223 | $ | 963,277 | (19.3)% | ||||||||
Gross Margin | $ | 464,559 | $ | 451,245 | 3.0% | $ | 885,657 | $ | 872,867 | 1.5% | |||||||
Other operating expenses | 88,455 | 73,762 | 215,491 | 203,773 | |||||||||||||
Maintenance | 3,460 | 23,707 | 45,122 | 58,945 | |||||||||||||
Depreciation and amortization | 67,212 | 56,575 | 186,798 | 169,330 | |||||||||||||
Taxes other than income | 9,105 | 9,038 | 28,209 | 28,857 | |||||||||||||
Operating Income | $ | 296,327 | $ | 288,163 | 2.8% | $ | 410,037 | $ | 411,962 | (0.5)% | |||||||
Sierra Pacific Power Company | |||||||||||||||||
Gross Margin | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Change from | Change from | ||||||||||||||||
2011 | 2010 | Prior Year % | 2011 | 2010 | Prior Year % | ||||||||||||
Operating Revenues: | |||||||||||||||||
Electric | $ | 202,263 | $ | 237,798 | (14.9)% | $ | 545,462 | $ | 649,337 | (16.0)% | |||||||
Gas | 16,615 | 19,286 | (13.8)% | 125,357 | 139,711 | (10.3)% | |||||||||||
218,878 | 257,084 | (14.9)% | 670,819 | 789,048 | (15.0)% | ||||||||||||
Energy Costs: | |||||||||||||||||
Fuel for power generation | 53,803 | 66,133 | (18.6)% | 141,130 | 181,232 | (22.1)% | |||||||||||
Purchased power | 41,615 | 33,545 | 24.1% | 118,965 | 110,262 | 7.9% | |||||||||||
Gas Purchased for resale | 10,137 | 10,823 | (6.3)% | 87,753 | 101,536 | (13.6)% | |||||||||||
Deferral of energy - electric - net | (22,095) | 9,964 | (321.7)% | (45,924) | 17,189 | (367.2)% | |||||||||||
Deferral of energy - gas - net | (1,171) | 1,795 | (165.2)% | 3,520 | 7,646 | (54.0)% | |||||||||||
$ | 82,289 | $ | 122,260 | (32.7)% | $ | 305,444 | $ | 417,865 | (26.9)% | ||||||||
Gross Margin by Segment: | |||||||||||||||||
Electric | 128,940 | 128,156 | 0.6% | 331,291 | 340,654 | (2.7)% | |||||||||||
Gas | 7,649 | 6,668 | 14.7% | 34,084 | 30,529 | 11.6% | |||||||||||
Gross Margin | $ | 136,589 | $ | 134,824 | 1.3% | $ | 365,375 | $ | 371,183 | (1.6)% | |||||||
Other operating expenses | 38,529 | 38,004 | 113,432 | 114,371 | |||||||||||||
Maintenance | 7,909 | 7,419 | 28,195 | 26,770 | |||||||||||||
Depreciation and amortization | 26,525 | 26,848 | 79,647 | 79,737 | |||||||||||||
Taxes other than income | 6,052 | 6,330 | 17,675 | 18,494 | |||||||||||||
Operating Income | $ | 57,574 | $ | 56,223 | 2.4% | $ | 126,426 | $ | 131,811 | (4.1)% | |||||||
SOURCE NV Energy, Inc.
For further information: Analyst, Max Kuniansky, +1-702-402-5627, or Britta Carlson, +1-702-402-5624, or Media, Karl Walquist, +1-775-834-3891, both of NV Energy, Inc.
