LONG-TERM DEBT

9 Months Ended

Sep. 30, 2011

NOTE 4. LONG-TERM DEBT

Maturities of Long-Term Debt

As of September 30, 2011, NPC's, SPPC's and NVE's aggregate annual amount of maturities for long-term debt (including obligations related to capital leases) for the next five years and thereafter are shown below (dollars in thousands):

	NVE			NVE
	Consolidated			Holding Co.		NPC			SPPC
2011(1)	$	(1,034	)	$	-	$	(1,034	)	$	-
2012		134,822			-		134,822			-
2013		285,405			-		35,405			250,000
2014		128,513			-		128,513			-
2015		251,039			-		251,039			-
Total Debt 2011-2015		798,745			-		548,745			250,000
Thereafter		4,388,183			506,500		2,965,266			916,417
Total Debt Before Unamortized Premium (Discount)		5,186,928			506,500		3,514,011			1,166,417
Unamortized Premium (Discount) Amount		(12,557	)		-		(25,828	)		13,271
Total Debt	$	5,174,371		$	506,500	$	3,488,183		$	1,179,688

(1)	Amounts may differ from current portion of long-term debt as reported on the consolidated balance sheet due to the timing difference of payments and the change in obligation.

Substantially all utility plant is subject to the liens of the NPC Indenture and the SPPC Indenture under which their respective General and Refunding Mortgage bonds are issued.

Financing Transactions

NV Energy, Inc.

$195 Million Term Loan Agreement

On October 7, 2011, NVE entered into a $195 million 3-year loan agreement (Term Loan). The Term Loan is an unsecured, single-draw loan that is due on October 7, 2014. The borrowing under the Term Loan will bear interest at the LIBOR rate plus a margin. The current LIBOR rate margin is 2.00%. The margin varies based upon NVE's long-term unsecured debt credit rating by S&P and Moody's. However, NVE entered into a floating-for-fixed interest rate swap agreement to lock in an effective interest rate of 2.81% for the length of the Term Loan.

The Term Loan contains conditions of borrowing, events of default, and affirmative and negative covenants. The Term Loan includes (i) a financial covenant to maintain a ratio of total consolidated indebtedness to total consolidated capitalization, determined on the last day of each fiscal quarter ending on and after September 30, 2011, not to exceed 0.70 to 1.00 and (ii) a fixed charge covenant that requires NVE not to permit the fixed charge coverage ratio, determined on the last day of each fiscal quarter ending on and after September 30, 2011, to be less than 1.50 to 1.00.

Redemption of 6.75% Senior Notes

On October 7, 2011, NVE provided notice of the redemption of all of its $191.5 million 6.75% Senior Notes due 2017 (the "Senior Notes"). On November 7, 2011, NVE expects to use the proceeds of the Term Loan, plus cash on hand, to redeem the Senior Notes. The Senior Notes will be redeemed at 102.25% of the stated principal amount plus accrued interest to the date of redemption. Upon redemption, NVE and the Utilities will no longer be subject to the covenants contained in the Senior Notes, which were more restrictive than the covenants described above for the Term Loan.

Nevada Power Company

5.45% General and Refunding Mortgage Notes, Series Y

On May 12, 2011, NPC issued and sold $250 million of its 5.45% General and Refunding Mortgage Notes, Series Y, due May 15, 2041. The approximately $248 million in net proceeds, plus a portion of the proceeds from a draw on NPC's revolving credit facility, were utilized to pay at maturity NPC's $350 million aggregate principal amount of 8.25% General and Refunding Mortgage

Notes, Series A, which matured on June 1, 2011. In conjunction with this debt issuance, NPC entered into an interest rate swap hedging agreement with a notional principal amount of $250 million and a mandatory termination date of June 1, 2011. The interest rate swap agreement was entered into to effectively lock the interest rate of the U.S. Treasury component of the prospective General and Refunding Note issuance. The swap transaction was settled on May 9, 2011, when NPC launched and priced the Series Y Notes, resulting in a settlement payment amount of $14.9 million, which was recorded as a regulatory asset and will be amortized over the 30 year life of the Series Y Notes in accordance with past accounting precedent for the Utilities.