NPC and SPPC follow deferred energy accounting. See Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2011 Form 10-K for additional information regarding deferred energy accounting by the Utilities.

The following deferred energy amounts were included in the consolidated balance sheets as of March 31, 2012 (dollars in thousands):

		March 31, 2012
		NVE Total		NPC Electric		SPPC Electric		SPPC Gas
Deferred Energy
	Cumulative Balance as of December 31, 2011	$	(260,079)	$	(174,714)	$	(56,337)	$	(29,028)
	2012 Amortization		77,059		38,126		25,498		13,435
	2012 Deferred Energy Over Collections⁽¹⁾		(64,975)		(39,226)		(13,213)		(12,536)
Deferred Energy Balance at March 31, 2012 - Subtotal		$	(247,995)	$	(175,814)	$	(44,052)	$	(28,129)
Reinstatement of deferred energy (effective 6/07, 10 years)			114,490		114,490		-		-
	Total Deferred Energy	$	(133,505)	$	(61,324)	$	(44,052)	$	(28,129)

Deferred Assets
	Deferred energy	$	99,566	$	99,566	$	-	$	-
Current Liabilities
	Deferred energy		(233,071)		(160,890)		(44,052)		(28,129)
	Total Deferred Energy	$	(133,505)	$	(61,324)	$	(44,052)	$	(28,129)

These deferred energy over collections are subject to quarterly rate resets as discussed in Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2011 Form 10-K.

In March 2012, NPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ending December 31, 2011, to reset the TRED and REPR rate elements and to retire the unamortized balance of NPC's 2008 GRC deferred rate increase, as discussed in Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2011 Form 10-K. The recoveries requested in this filing result in an overall increase in revenue requirement of approximately $30.1 million. The March 2012 application includes the following (dollars in millions):

			Anticipated	Requested		Present		$ Change in
			Effective	Revenue		Revenue		Revenue
			Date	Requirement		Requirement		Requirement
Revenue Requirement Subject To Change:
	2008 GRC Deferred Rate Increase⁽¹⁾		Oct. 2012	$	13.1	$	0.0	$	13.1
	REPR		Oct. 2012		28.2		8.5		19.7
	TRED		Oct. 2012		15.3		18.0		(2.7)
		Total Revenue Requirement		$	56.6	$	26.5	$	30.1

This rate request represents revenues previously recorded as a result of NPC's 2008 GRC. As such, NPC will not record further revenue related to this rate request, but does expect to collect such amounts from its customers. Reference Note 3, Regulatory Actions, NPC 2008 GRC, of the Notes to Financial Statements in the 2011 Form 10-K.

Subsequent to filing NPC's DEAA, TRED, and REPR rate filings in March 2012, the PUCN issued a final order in NPC's Annual Demand Side Management Update Report, requiring NPC to revise all lighting-specific calculations used in the EEIR and EEPR rate applications. As a result, in a pre-hearing conference on April 10, 2012, the parties agreed to bifurcate the EEIR and EEPR portions of the March filing to allow NPC to amend in July 2012 the EEIR and EEPR rate requests using revised lighting-specific calculations and to hold a separate hearing on these components. It is anticipated upon final hearing and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

NPC Petition for Declaratory Order and Accounting Guidance- Telecommunication Tower Sale

In March 2012, NPC filed a petition with the PUCN to obtain a declaratory order and the accounting guidance necessary to establish a regulatory account for the gain on sale of NPC's telecommunication towers to Global Tower Partners, LLC in August 2011 as discussed in Note 16, Assets Held for Sale, of the Notes to Financial Statements of the 2011 Form 10-K. NPC seeks authorization to apportion approximately $14 million of the $32 million gain on sale to ratepayers with amortization of the gain to coincide with the rate effective date of NPC's next GRC, which is mandated in 2015.

In March 2012, SPPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ending December 31, 2011 and to reset the TRED and REPR rate elements. The recoveries requested in this filing result in an overall decrease in revenue requirement of approximately $7.1 million. The March 2012 application includes the following (dollars in millions):

			Anticipated	Requested		Present		$ Change in
			Effective	Revenue		Revenue		Revenue
			Date	Requirement		Requirement		Requirement
Revenue Requirement Subject To Change:
	REPR		Oct. 2012	$	34.5	$	38.5	$	(4.0)
	TRED		Oct. 2012		6.1		9.2		(3.1)
		Total Revenue Requirement		$	40.6	$	47.7	$	(7.1)

Subsequent to filing SPPC's DEAA, TRED, and REPR rate filings in March 2012, the PUCN issued a final order in SPPC's Annual Demand Side Management Update Report, requiring SPPC to revise all lighting-specific calculations used in the EEIR and EEPR rate applications. As a result, in a pre-hearing conference on April 10, 2012, the parties agreed to bifurcate the EEIR and EEPR portions of the March filing to allow SPPC to amend in July 2012 the EEIR and EEPR rate requests using revised lighting-specific calculations and to hold a separate hearing on these components. It is anticipated upon final hearing and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

In March 2012, SPPC filed an application for the PUCN to review the physical gas, transportation and financial gas transactions that were recorded during the 12-month period ending December 31, 2011 and to reset the REPR. The recoveries requested in this filing result in an overall increase of $0.2 million.