DERIVATIVES AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2011

DERIVATIVES AND HEDGING ACTIVITIES [Abstract]

Option Premiums

Option premium amounts included in risk management assets and liabilities for NVE, NPC and SPPC were as follows (dollars in millions):

Option Premiums
	September 30, 2011								December 31, 2010
	NVE			NPC			SPPC		NVE			NPC			SPPC
Current Assets	$	0.1		$	0.1		$	-	$	1.9		$	1.4		$	0.5
Current Liabilities	$	(0.3	)	$	(0.3	)	$	-	$	(0.4	)	$	(0.4	)	$	-
Non-Current Liabilities		(0.2	)		(0.2	)		-		-			-			-
Total Liabilities	$	(0.5	)	$	(0.5	)	$	-	$	(0.4	)	$	(0.4	)	$	-

Fair Value of Open Derivative Positions

This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on derivative transactions until the period of settlement (dollars in millions):

	September 30, 2011									December 31, 2010
Derivative Contracts	Level 2									Level 2
	NVE			NPC			SPPC			NVE			NPC			SPPC
Risk management assets - current	$	-		$	-		$	-		$	2.1		$	2.1		$	-
Risk management liabilities - current		1.2			0.9			0.3			32.9			22.4			10.5
Risk management liabilities - noncurrent		0.3			0.3			-			-			-			-
Total risk management liabilities		1.5			1.2			0.3			32.9			22.4			10.5
Risk management regulatory assets/liabilities - net (1)	$	(1.5	)	$	(1.2	)	$	(0.3	)	$	(30.8	)	$	(20.3	)	$	(10.5	)

(1) When amount is negative it represents a risk management regulatory asset, when positive it represents a risk management regulatory liability.  For the three months ended September 30, 2011, NVE, NPC and SPPC would have recorded cumulative gains of $3.5million, $2.9million and $0.6million, respectively, and for the nine months ended September 30, 2011, NVE, NPC and SPPC would have recorded gains of $29.3million, $19.1million, and $10.2million, respectively.  However, as permitted by the Regulated Operations Topic of the FASB Accounting Standards Codification, NVE and the Utilities deferred these gains, which are included in the risk management regulatory liability - net amounts above.

Commodity Volume for Open Derivative Contracts

The following table shows the commodity volume for our open derivative contracts related to natural gas contracts (amounts in millions):

September 30, 2011

December 31, 2010

Commodity Volume (MMBTU)

Commodity Volume (MMBTU)

NVE

NPC

SPPC

NVE

NPC

SPPC

Commodity volume liabilities - current (1)

0.6

0.5

0.1

18.1

12.9

5.2

(1) The change in commodity volumes at September 30, 2011, as compared to December 31, 2010, is primarily due to the suspension of the Utilities' hedging program as of October 2009.  As such, the Utilities' exposure to mark-to-market hedging transactions has declined.