SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 2.       SEGMENT INFORMATION

The Utilities operate three regulated business segments, 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 and energy efficiency program costs, provides a measure of income available to support the other operating expenses of the Utilities. Energy efficiency program costs are conservation costs being recovered from ratepayers through EEPR revenues which were implemented in July 2011 (See Note 3, Regulatory Actions, of the Notes to Financial Statements in 2011 Form 10-K). Costs incurred prior to the implementation of the EEPR are recovered through general rates and amortized to other operating expense. The EEPR mechanism is designed such that conservation costs are equal to revenues collected and any under/over collection is deferred as a regulatory asset/liability until rates are reset. As a result, amounts related to EEPR do not have an effect on gross margin, operating income or net income.

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, 2012			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	740,698	$	4	$	553,143	$	187,551	$	168,007	$	19,544
Energy Costs:
	Fuel for power generation		112,585		-		81,258		31,327		31,327		-
	Purchased power		164,092		-		135,276		28,816		28,816		-
	Gas purchased for resale		9,492		-		-		9,492		-		9,492
	Deferred energy		10,490		-		5,053		5,437		4,314		1,123
Energy efficiency program costs			24,600		-		21,200		3,400		3,400
Total Costs		$	321,259	$	-	$	242,787	$	78,472	$	67,857	$	10,615
Gross Margin		$	419,439	$	4	$	310,356	$	109,079	$	100,150	$	8,929
Other operating expenses			103,371		1,067		68,650		33,654
Maintenance			24,650		-		16,988		7,662
Depreciation and amortization			96,316		-		69,131		27,185
Taxes other than income			14,266		45		8,596		5,625
Operating Income (Loss)		$	180,836	$	(1,108)	$	146,991	$	34,953

Six Months Ended
June 30, 2012			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	1,352,118	$	8	$	948,831	$	403,279	$	337,813	$	65,466
Energy Costs:
	Fuel for power generation		229,620		-		161,807		67,813		67,813		-
	Purchased power		281,208		-		216,807		64,401		64,401		-
	Gas purchased for resale		41,109		-		-		41,109		-		41,109
	Deferred energy		(1,249)		-		7,224		(8,473)		(8,356)		(117)
Energy efficiency program costs			44,025		-		36,974		7,051		7,051		-
Total Costs		$	594,713	$	-	$	422,812	$	171,901	$	130,909	$	40,992
Gross Margin		$	757,405	$	8	$	526,019	$	231,378	$	206,904	$	24,474
Other operating expenses			206,972		1,774		135,112		70,086
Maintenance			57,176		-		40,061		17,115
Depreciation and amortization			187,178		-		134,121		53,057
Taxes other than income			28,775		237		17,050		11,488
Operating Income (Loss)		$	277,304	$	(2,003)	$	199,675	$	79,632

Three Months Ended
June 30, 2011			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	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 Costs		$	333,989	$	-	$	239,502	$	94,487	$	68,061	$	26,426
Gross Margin		$	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		$	1,315,914	$	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 Costs		$	666,023	$	-	$	442,868	$	223,155	$	140,848	$	82,307
Gross Margin		$	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		0		41,662		20,286
Depreciation and amortization			172,708		0		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