SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE 2.                 SEGMENT INFORMATION

The Utilities operate three regulated business segments which are 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 costs, provides a measure of income available to support the other operating expenses of the Utilities.  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
June 30, 2011
	NVE Consolidated			NVE Other			NPC Electric		SPPC Total			SPPC Electric			SPPC Gas
Operating Revenues (1)	$	674,931		$	3		$	473,898	$	201,030		$	164,582		$	36,448
Energy Costs:
Fuel for power generation		156,803			-			114,744		42,059			42,059			-
Purchased power		160,308			-			122,408		37,900			37,900			-
Gas purchased for resale		24,984			-			-		24,984			-			24,984
Deferred energy		(8,106	)		-			2,350		(10,456	)		(11,898	)		1,442
Total Energy Costs	$	333,989		$	-		$	239,502	$	94,487		$	68,061		$	26,426
Gross Margin (1)	$	340,942		$	3		$	234,396	$	106,543		$	96,521		$	10,022
Other operating expenses		97,547			925			61,935		34,687
Maintenance		32,186			-			19,325		12,861
Depreciation and amortization		89,606			-			61,913		27,693
Taxes other than income		14,684			39			9,046		5,599
Operating Income (Loss)	$	106,919		$	(961	)	$	82,177	$	25,703

Six Months Ended
June 30, 2011
	NVE Consolidated			NVE Other			NPC Electric		SPPC Total			SPPC Electric			SPPC Gas
Operating Revenues (1)	$	1,315,914		$	7		$	863,966	$	451,941		$	343,199		$	108,742
Energy Costs:
Fuel for power generation		303,141			-			215,814		87,327			87,327			-
Purchased power		295,324			-			217,974		77,350			77,350			-
Gas purchased for resale		77,616			-			-		77,616			-			77,616
Deferred energy		(10,058	)		-			9,080		(19,138	)		(23,829	)		4,691
Total Energy Costs	$	666,023		$	-		$	442,868	$	223,155		$	140,848		$	82,307
Gross Margin (1)	$	649,891		$	7		$	421,098	$	228,786		$	202,351		$	26,435
Other operating expenses		203,521			1,582			127,036		74,903
Maintenance		61,948			-			41,662		20,286
Depreciation and amortization		172,708			-			119,586		53,122
Taxes other than income		30,929			202			19,104		11,623
Operating Income (Loss)	$	180,785		$	(1,777	)	$	113,710	$	68,852

Three Months Ended
June 30, 2010
	NVE Consolidated		NVE Other			NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues (1)	$	782,683	$	6		$	539,395	$	243,282	$	202,877	$	40,405
Energy Costs:
Fuel for power generation		181,662		-			132,067		49,595		49,595		-
Purchased power		165,321		-			124,740		40,581		40,581		-
Gas purchased for resale		25,154		-			-		25,154		-		25,154
Deferred energy		54,933		-			39,960		14,973		8,725		6,248
Total Energy Costs	$	427,070	$	-		$	296,767	$	130,303	$	98,901	$	31,402
Gross Margin (1)	$	355,613	$	6		$	242,628	$	112,979	$	103,976	$	9,003
Other operating expenses		101,388		1,082			63,292		37,014
Maintenance		28,860		-			18,219		10,641
Depreciation and amortization		84,696		-			57,654		27,042
Taxes other than income		15,939		48			9,793		6,098
Operating Income (Loss)	$	124,730	$	(1,124	)	$	93,670	$	32,184

Six Months Ended
June 30, 2010
	NVE Consolidated		NVE Other			NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues (1)	$	1,497,172	$	14		$	965,194	$	531,964	$	411,539	$	120,425
Energy Costs:
Fuel for power generation		403,281		-			288,182		115,099		115,099		-
Purchased power		272,684		-			195,967		76,717		76,717		-
Gas purchased for resale		90,713		-			-		90,713		-		90,713
Deferred energy		72,499		-			59,423		13,076		7,225		5,851
Total Energy Costs	$	839,177	$	-		$	543,572	$	295,605	$	199,041	$	96,564
Gross Margin (1)	$	657,995	$	14		$	421,622	$	236,359	$	212,498	$	23,861
Other operating expenses		208,014		1,636			130,011		76,367
Maintenance		54,589		-			35,238		19,351
Depreciation and amortization		165,644		-			112,755		52,889
Taxes other than income		32,112		129			19,819		12,164
Operating Income (Loss)	$	197,636	$	(1,751	)	$	123,799	$	75,588

(1) As reported in our 2010 Form 10-K, amounts for REPR are presented net.  As such, revenues and gross margin for the three months ended June 30, 2010 were reduced by $2.7 million, $1.4 million and $1.3 million for NVE, NPC and SPPC, respectively, from that reported in Forms 10-Q/A for the period ended June 30, 2010. Revenues and gross margin for the six months ended June 30, 2010 were reduced by $5.2 million, $2.6 million and $2.6 million for NVE, NPC and SPPC, respectively, from that reported in Forms 10-Q/A for the period ended June 30, 2010. The change in presentation did not affect operating income or net income.