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 June 30, 2012 (dollars in thousands):

		June 30, 2012
		NVE Total		NPC Electric		SPPC Electric		SPPC Gas
Nevada Deferred Energy
	Cumulative Deferred Balance as of December 31, 2011	$	(260,079)	$	(174,714)	$	(56,337)	$	(29,028)
	2012 Amortization		148,481		85,047		45,721		17,713
	2012 Deferred Energy Over Collections ⁽¹⁾		(148,448)		(91,253)		(38,903)		(18,292)
Nevada Deferred Energy Balance at June 30, 2012-Subtotal		$	(260,046)	$	(180,920)	$	(49,519)	$	(29,607)
Reinstatement of deferred energy (effective 6/07, 10 years)			110,519		110,519		-		-
	Total Deferred Energy	$	(149,527)	$	(70,401)	$	(49,519)	$	(29,607)

Deferred Assets
	Deferred energy	$	95,599	$	95,599	$	-	$	-
Current Liabilities
	Deferred energy		(245,126)		(166,000)		(49,519)		(29,607)
	Total Deferred Energy	$	(149,527)	$	(70,401)	$	(49,519)	$	(29,607)

(1)	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 would result in an overall increase in revenue requirement of approximately $30.1 million. Hearings are scheduled for mid-August 2012 with rates effective October 1, 2012.

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, the parties agreed to bifurcate the EEIR and EEPR portions of the March filing to allow NPC to amend the EEIR and EEPR rate requests using revised lighting-specific calculations and to hold a separate hearing on these components. In July 2012, NPC filed an amended EEIR and EEPR rate request and upon final hearing and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

The March 2012 DEAA, TRED and REPR application and the July 2012 EEIR and EEPR amendment include 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)
	EEPR Base		Jan. 2013		33.1		57.3		(24.2)
	EEPR Amortization		Jan. 2013		8.9		21.2		(12.3)
	EEIR Base		Jan. 2013		11.0		16.8		(5.8)
	EEIR Amortization		Jan. 2013		10.4		4.8		5.6
		Total Revenue Requirement		$	120.0	$	126.6	$	(6.6)

⁽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.

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. In July 2012, the PUCN approved a stipulation between NPC, the Bureau of Consumer Protection, and PUCN staff that provides for an allocation of $27.3 million of the approximate $32.0 million gain on sale to the ratepayers. The amortization of the gain will coincide with the rate effective date of NPC's next GRC, which is mandated in 2015. As such, NPC will record the remaining balance of the gain on sale in the third quarter of 2012.

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 would result in an overall decrease in revenue requirement of approximately $7.1 million. Hearings are scheduled for mid August 2012 with rates to be effective October 1, 2012.

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, the parties agreed to bifurcate the EEIR and EEPR portions of the March filing to allow SPPC to amend the EEIR and EEPR rate requests using revised lighting-specific calculations and to hold a separate hearing on these components. In July 2012, SPPC filed an amended EEIR and EEPR rate request and upon final hearing and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

The March 2012 DEAA, TRED and REPR application and the July 2012 EEIR and EEPR amendment include 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)
	EEPR Base		Jan. 2013		5.4		9.8		(4.4)
	EEPR Amortization		Jan. 2013		1.7		4.7		(3.0)
	EEIR Base		Jan. 2013		4.9		3.1		1.8
	EEIR Amortization		Jan. 2013		1.9		0.5		1.4
		Total Revenue Requirement		$	54.5	$	65.8	$	(11.3)

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 would result in an overall increase of $0.2 million. Hearings are scheduled for mid August 2012 with rates effective October 1, 2012.