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 September 30, 2012 (dollars in thousands):

		September 30, 2012
		NVE Total		NPC Electric		SPPC Electric		SPPC Gas
Nevada Deferred Energy
	Cumulative Deferred Balance authorized in 2012 DEAA	$	(262,845)	$	(177,336)	$	(56,422)	$	(29,087)
	2012 Amortization		233,659		148,747		65,038		19,874
	2012 Deferred Energy Over Collections ⁽¹⁾		(199,905)		(126,504)		(53,440)		(19,961)
Nevada Deferred Energy Balance at September 30, 2012 - Subtotal		$	(229,091)	$	(155,093)	$	(44,824)	$	(29,174)
Reinstatement of deferred energy (effective 6/07, 10 years)			105,154		105,154		-		-
	Total Deferred Energy	$	(123,937)	$	(49,939)	$	(44,824)	$	(29,174)

Deferred Assets
	Deferred energy	$	90,244	$	90,244	$	-	$	-
Current Liabilities
	Deferred energy		(214,181)		(140,183)		(44,824)		(29,174)
	Total Net Deferred Energy	$	(123,937)	$	(49,939)	$	(44,824)	$	(29,174)

⁽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. In September 2012, the PUCN issued its final order which resulted in an overall increase in revenue requirement of approximately $37.7 million for the 2008 GRC deferred rate increase, REPR and TRED effective October 2012. Included in its September order are immaterial adjustments to deferred fuel and purchase power balances and a requirement to increase the REPR rate to include prospective customer incentives associated primarily with its solar rebate programs.

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 (currently scheduled in early November 2012), and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

The September PUCN approval of the 2012 DEAA, TRED and REPR application and the July 2012 EEIR and EEPR amendment include the following (dollars in millions):

				Authorized/
				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	$	11.5	$	0.0	$	11.5
	REPR⁽²⁾		Oct. 2012		37.4		8.5		28.9
	TRED⁽²⁾		Oct. 2012		15.3		18.0		(2.7)
	EEPR Base⁽²⁾		Jan. 2013		33.1		57.3		(24.2)
	EEPR Amortization⁽²⁾		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		$	127.6	$	126.6	$	1.0

⁽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 component, but will 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.
⁽²⁾	Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected.
	As a result, such programs have no effect on Operating or Net Income.

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. In the quarter ended September 30, 2012, NPC recorded approximately $5.5 million, including an adjustment to previously recorded carrying charges to other income for the remaining balance of the gain on sale.

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. In September 2012, the PUCN issued its final order which resulted in an overall increase in revenue requirement of $1.7 million for the REPR and TRED effective October 2012. Included in its September order are immaterial adjustments to deferred fuel and purchase power balances and a requirement to increase the REPR rate to include prospective customer incentives associated primarily with its solar rebate programs.

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 (currently scheduled in early November 2012) and approval of the amendments by the PUCN, rates for the EEIR and EEPR components would become effective January 2013.

The September PUCN approval of the 2012 DEAA, TRED and REPR application and the July 2012 EEIR and EEPR amendment include the following (dollars in millions):

				Authorized/
				Requested		Present		$ Change in
			Effective	Revenue		Revenue		Revenue
			Date	Requirement		Requirement		Requirement
Revenue Requirement Subject To Change:
	REPR⁽¹⁾		Oct. 2012	$	43.3	$	38.5	$	4.8
	TRED⁽¹⁾		Oct. 2012		6.1		9.2		(3.1)
	EEPR Base⁽¹⁾		Jan. 2013		5.4		9.8		(4.4)
	EEPR Amortization⁽¹⁾		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		$	63.3	$	65.8	$	(2.5)

⁽¹⁾	Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues
	collected. As a result, such programs have no effect on Operating or Net Income.

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. In September 2012, the PUCN issued its final order which result in an overall increase of $0.2 million.

In October 2012, NPC filed an application with the FERC to reset transmission and ancillary service rates that were last set in 2003. The rate changes requested in this filing would result in an overall annual revenue increase of $11.3 million. The requested rate effective date is January 1, 2013, which is subject to final approval by the FERC in 2013.

In October 2012, SPPC filed an application with the FERC to reset transmission and ancillary service rates that were last set in 2007 and 2003 respectively. The rate changes requested in this filing would result in an overall annual revenue increase of $3.2 million. The requested rate effective date is January 1, 2013, which is subject to final approval by the FERC in 2013.