SEGMENT INFORMATION

9 Months Ended

Sep. 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
September 30, 2012			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	1,026,488	$	4	$	802,334	$	224,150	$	212,073	$	12,077
Energy Costs:
	Fuel for power generation		171,316		-		123,992		47,324		47,324		-
	Purchased power		205,686		-		171,687		33,999		33,999		-
	Gas purchased for resale		5,382		-		-		5,382		-		5,382
	Deferred energy		(29,036)		-		(22,685)		(6,351)		(5,498)		(853)
Energy efficiency program costs			32,584		-		28,492		4,092		4,092		-
Total Costs		$	385,932	$	-	$	301,486	$	84,446	$	79,917	$	4,529
Gross Margin		$	640,556	$	4	$	500,848	$	139,704	$	132,156	$	7,548
Other operating expenses			100,108		608		65,372		34,128
Maintenance			19,014		-		12,533		6,481
Depreciation and amortization			94,512		-		66,975		27,537
Taxes other than income			15,682		45		9,743		5,894
Operating Income (Loss)		$	411,240	$	(649)	$	346,225	$	65,664

Nine Months Ended
September 30, 2012			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	2,378,606	$	12	$	1,751,165	$	627,429	$	549,886	$	77,543
Energy Costs:
	Fuel for power generation		400,936		-		285,799		115,137		115,137		-
	Purchased power		486,894		-		388,494		98,400		98,400		-
	Gas purchased for resale		46,491		-		-		46,491		-		46,491
	Deferred energy		(30,285)		-		(15,461)		(14,824)		(13,854)		(970)
Energy efficiency program costs			76,609		-		65,466		11,143		11,143		-
Total Costs		$	980,645	$	-	$	724,298	$	256,347	$	210,826	$	45,521
Gross Margin		$	1,397,961	$	12	$	1,026,867	$	371,082	$	339,060	$	32,022
Other operating expenses			307,080		2,382		200,484		104,214
Maintenance			76,190		-		52,594		23,596
Depreciation and amortization			281,690		-		201,096		80,594
Taxes other than income			44,457		282		26,793		17,382
Operating Income (Loss)		$	688,544	$	(2,652)	$	545,900	$	145,296

Three Months Ended
September 30, 2011			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	1,017,796	$	4	$	798,914	$	218,878	$	202,263	$	16,615
Energy Costs:
	Fuel for power generation		216,779		-		162,976		53,803		53,803		-
	Purchased power		223,348		-		181,733		41,615		41,615		-
	Gas purchased for resale		10,137		-				10,137		-		10,137
	Deferred energy		(33,620)		-		(10,354)		(23,266)		(22,095)		(1,171)
Energy efficiency program costs			23,047		-		20,451		2,596		2,596		-
Total Costs		$	439,691	$	-	$	354,806	$	84,885	$	75,919	$	8,966
Gross Margin		$	578,105	$	4	$	444,108	$	133,993	$	126,344	$	7,649
Other operating expenses			104,598		661		68,004		35,933
Maintenance			11,369		-		3,460		7,909
Depreciation and amortization			93,737		-		67,212		26,525
Taxes other than income			15,205		48		9,105		6,052
Operating Income (Loss)		$	353,196	$	(705)	$	296,327	$	57,574

Nine Months Ended
September 30, 2011			NVE
		Consolidated		NVE Other		NPC Electric		SPPC Total		SPPC Electric		SPPC Gas
Operating Revenues		$	2,333,710	$	11	$	1,662,880	$	670,819	$	545,462	$	125,357
Energy Costs:
	Fuel for power generation		519,920		-		378,790		141,130		141,130		-
	Purchased power		518,672		-		399,707		118,965		118,965		-
	Gas purchased for resale		87,753		-		-		87,753		-		87,753
	Deferred Energy		(43,678)		-		(1,274)		(42,404)		(45,924)		3,520
Energy efficiency program costs			23,047		-		20,451		2,596		2,596		-
Total Costs		$	1,105,714	$	-	$	797,674	$	308,040	$	216,767	$	91,273
Gross Margin		$	1,227,996	$	11	$	865,206	$	362,779	$	328,695	$	34,084
Other operating expenses			308,119		2,243		195,040		110,836
Maintenance			73,317		0		45,122		28,195
Depreciation and amortization			266,445		0		186,798		79,647
Taxes other than income			46,134		250		28,209		17,675
Operating Income (Loss)		$	533,981	$	(2,482)	$	410,037	$	126,426