Organization and Operations (Notes)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Operations

Organization and Operations

Nevada Power Company, together with its subsidiaries (collectively, the "Company"), is a wholly owned subsidiary of NV Energy, Inc. ("NV Energy"), a holding company that also owns Sierra Pacific Power Company ("Sierra Pacific") and certain other subsidiaries. The Company is a United States regulated electric utility company serving retail customers, including residential, commercial and industrial customers primarily in the Las Vegas, North Las Vegas, Henderson and adjoining areas. NV Energy is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company based in Des Moines, Iowa that owns subsidiaries principally engaged in energy businesses. BHE is a consolidated subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway").

On December 19, 2013, the merger contemplated by the Agreement and Plan of Merger dated May 29, 2013 among BHE, Silver Merger Sub, Inc. ("Merger Sub"), BHE's wholly owned subsidiary, and NV Energy, whereby Merger Sub was merged into NV Energy andNV Energy became an indirect wholly owned subsidiary of BHE ("BHE Merger") was completed.

The transaction was approved by the board of directors of both NV Energy and BHE and the shareholders of NV Energy and received various regulatory approvals, including the Public Utilities Commission of Nevada ("PUCN"), subject to certain stipulations. The stipulations included, among others:

• A one-time bill credit to retail customers of the Company of $15 million credited to retail customers over one billing cycle beginning within 30 days of the close of the BHE Merger.

• BHE and NV Energy agreed to not seek recovery of the acquisition premium, transaction and transition costs associated with the BHE Merger from customers.

• NV Energy agreed that it will base any rate case filed in 2014 by the Company with a requested change in revenue requirement on a return on common equity not to exceed 10%.

• The Company will not seek to collect lost revenues as described in section 704.9524 of the Nevada Administrative Code for calendar year 2013 in 2014 rates, and will not seek collection of lost revenues in excess of 50% of what the Company could otherwise request for calendar year 2014 in 2015 rates. NV Energy also agreed to work cooperatively with PUCNstaff and the Nevada Bureau of Consumer Protection ("BCP") to develop a legislative or administrative alternative to the current mechanism that would retain the objective of encouraging investment in energy efficiency and that is acceptable to NV Energy, PUCN staff and the BCP. NV Energy and the BCP also agree to work in good faith to have a legislative or administrative alternative adopted.

• Normal rate case rules and procedures apply to costs and revenues, and any under or over earnings will accrue to the Company until the next rate case filing after 2014, subject to specified adjustments for intercompany charges from BHEand its other subsidiaries as described in the PUCN Joint Application and the exclusion of the $15 millionone-time bill credit from the test period. The commitment does not preclude parties from proposing any other adjustments to test year or certification period results.