SEGMENT INFORMATION

9 Months Ended

Sep. 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
September 30, 2011	NVE
	Consolidated			NVE Other			NPC Electric			SPPC Total			SPPC Electric			SPPC Gas
Operating Revenues (1)	$	1,017,796		$	4		$	798,914		$	218,878		$	202,263		$	16,615
Energy Costs:
Fuel for power generation		216,779			-			162,976			53,803			53,803			-
Purchased power		223,348			-			181,733			41,615			41,615			-
Gas purchased for resale		10,137			-						10,137			-			10,137
Deferred energy		(33,620	)		-			(10,354	)		(23,266	)		(22,095	)		(1,171	)
Total Energy Costs	$	416,644		$	-		$	334,355		$	82,289		$	73,323		$	8,966
Gross Margin	$	601,152		$	4		$	464,559		$	136,589		$	128,940		$	7,649
Other operating expenses (1)		127,645			661			88,455			38,529
Maintenance		11,369			-			3,460			7,909
Depreciation and amortization		93,737			-			67,212			26,525
Taxes other than income		15,205			48			9,105			6,052
Operating Income (Loss)	$	353,196		$	(705	)	$	296,327		$	57,574

Nine Months Ended
September 30, 2011	NVE
	Consolidated			NVE Other			NPC Electric			SPPC Total			SPPC Electric			SPPC Gas
Operating Revenues(1)	$	2,333,710		$	11		$	1,662,880		$	670,819		$	545,462		$	125,357
Energy Costs:
Fuel for power generation		519,920			-			378,790			141,130			141,130			-
Purchased power		518,672			-			399,707			118,965			118,965			-
Gas purchased for resale		87,753			-			-			87,753			-			87,753
Deferred energy		(43,678	)		-			(1,274	)		(42,404	)		(45,924	)		3,520
Total Energy Costs	$	1,082,667		$	-		$	777,223		$	305,444		$	214,171		$	91,273
Gross Margin	$	1,251,043		$	11		$	885,657		$	365,375		$	331,291		$	34,084
Other operating expenses (1)		331,166			2,243			215,491			113,432
Maintenance		73,317			-			45,122			28,195
Depreciation and amortization		266,445			-			186,798			79,647
Taxes other than income		46,134			250			28,209			17,675
Operating Income (Loss)	$	533,981		$	(2,482	)	$	410,037		$	126,426

Three Months Ended
September 30, 2010	NVE
	Consolidated		NVE Other			NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues(2)	$	1,128,039	$	5		$	870,950	$	257,084	$	237,798	$	19,286
Energy Costs:
Fuel for power generation		247,233		-			181,100		66,133		66,133		-
Purchased power		249,854		-			216,309		33,545		33,545		-
Gas purchased for resale		10,823		-			-		10,823		-		10,823
Deferred energy		34,055		-			22,296		11,759		9,964		1,795
Total Energy Costs	$	541,965	$	-		$	419,705	$	122,260	$	109,642	$	12,618
Gross Margin(2)	$	586,074	$	5		$	451,245	$	134,824	$	128,156	$	6,668
Other operating expenses		112,741		975			73,762		38,004
Maintenance		31,126		-			23,707		7,419
Depreciation and amortization		83,423		-			56,575		26,848
Taxes other than income		15,420		52			9,038		6,330
Operating Income (Loss)(3)	$	343,364	$	(1,022	)	$	288,163	$	56,223

Nine Months Ended
September 30, 2010	NVE
	Consolidated		NVE Other			NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues (2)	$	2,625,211	$	19		$	1,836,144	$	789,048	$	649,337	$	139,711
Energy Costs:
Fuel for power generation		650,514		-			469,282		181,232		181,232		-
Purchased power		522,538		-			412,276		110,262		110,262		-
Gas purchased for resale		101,536		-			-		101,536		-		101,536
Deferred energy		106,554		-			81,719		24,835		17,189		7,646
Total Energy Costs	$	1,381,142	$	-		$	963,277	$	417,865	$	308,683	$	109,182
Gross Margin(2)	$	1,244,069	$	19		$	872,867	$	371,183	$	340,654	$	30,529
Other operating expenses		320,755		2,611			203,773		114,371
Maintenance		85,715		-			58,945		26,770
Depreciation and amortization		249,067		-			169,330		79,737
Taxes other than income		47,532		181			28,857		18,494
Operating Income (Loss)(3)	$	541,000	$	(2,773	)	$	411,962	$	131,811

(1)	Effective July 1, 2011, included in operating revenues were EEPR revenues, for which costs related to the program are included in other operating expense and therefore have no effect on operating income.   See Note 3, Regulatory Actions.
(2)	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 September 30, 2010 were reduced by $3.5 million, $2.0 million and $1.5 million for NVE, NPC and SPPC, respectively, from that reported in the Forms 10-Q for the period ended September 30, 2010.  Revenues and gross margin for the nine months ended September 30, 2010 were reduced by $8.7 million, $4.6 million and $4.1 million for NVE, NPC and SPPC, respectively, from that reported in the Forms 10-Q for the period ended September 30, 2010.
(3)	During the third quarter 2010, NPC terminated a long-term service agreement from one of its generating stations.  The estimated termination payment was not considered material to the third quarter but would have been material to the fourth quarter; therefore, as disclosed in our 2010 Form 10-K, third quarter 2010 was revised to reflect the estimated termination payment.  As such, operating  income for the three and nine months ended September 30, 2010 was reduced by $8.0 million, before tax,  for  NVE and NPC, from that reported in the Forms 10-Q for the quarterly period ended September 30, 2010.  See Note 1, Summary of Significant Accounting Policies.