SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 2.HYPERLINK \l "Seginfo"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. 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 for the years ended December 31 (dollars in thousands):

2012
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	2,979,177	$	16	$	2,145,241	$	833,920	$	725,874	$	108,046	$
Energy Costs:
	Fuel for power generation		565,381		-		407,687		157,694		157,694		-
	Purchased power		603,999		-		472,715		131,284		131,284		-
	Gas purchased for resale		74,352		-		-		74,352		-		74,352
	Deferred energy		(106,728)		-		(67,976)		(38,752)		(26,369)		(12,383)
Energy efficiency program costs			96,677		-		81,845		14,832		14,832		-
Total Costs			1,233,681		-		894,271		339,410		277,441		61,969
Gross Margin		$	1,745,496	$	16	$	1,250,970	$	494,510	$	448,433	$	46,077
Other operating expenses			412,372		4,960		267,720		139,692
Maintenance			109,725		-		74,364		35,361
Depreciation and amortization			377,640		-		269,721		107,919
Taxes other than income			60,696		438		36,870		23,388
Operating Income		$	785,063	$	(5,382)	$	602,295	$	188,150
Assets		$	11,984,136	$	26,718	$	8,641,145	$	3,316,273	$	2,919,362	$	318,901	$	78,010
Capital expenditures		$	498,893	$	-	$	287,598	$	211,295	$	190,702	$	20,593

2011
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	2,943,307	$	15	$	2,054,393	$	888,899	$	716,417	$	172,482	$
Energy Costs:
	Fuel for power generation		680,585		0		498,487		182,098		182,098		-
	Purchased power		633,874		0		477,226		156,648		156,648		-
	Gas purchased for resale		125,155		0				125,155				125,155
	Deferred energy		(83,333)		0		(16,300)		(67,033)		(65,445)		(1,588)
Energy efficiency program costs			43,537		0		37,292		6,245		6,245
Total Costs			1,399,818		0		996,705		403,113		279,546		123,567
Gross Margin		$	1,543,489	$	15	$	1,057,688	$	485,786	$	436,871	$	48,915
Other operating expense			411,115		4,289		260,127		146,699
Maintenance			103,307		-		64,320		38,987
Depreciation and amortization			357,937		-		252,191		105,746
Taxes other than income			60,465		290		37,254		22,921
Operating Income		$	610,665	$	(4,564)	$	443,796	$	171,433
Assets		$	11,667,129	$	8,523	$	8,442,597	$	3,216,009	$	2,844,718	$	308,272	$	63,019
Capital expenditures(2)		$	620,516	$	0	$	475,118	$	145,398	$	132,083	$	13,315

2010
														SPPC
		NVE		NVE		NPC		SPPC		SPPC		SPPC		Reconciling
		Consolidated		Other		Electric		Total		Electric		Gas		Eliminations(1)
Operating Revenues		$	3,280,222	$	23	$	2,252,377	$	1,027,822	$	836,879	$	190,943	$
Energy Costs:
	Fuel for power generation		821,484		0		588,419		233,065		233,065		-
	Purchased power		648,881		0		505,239		143,642		143,642		-
	Gas purchased for resale		137,702		0				137,702				137,702
	Deferred energy		113,107		0		94,843		18,264		8,475		9,789
Total Costs			1,721,174		0		1,188,501		532,673		385,182		147,491
Gross Margin		$	1,559,048	$	23	$	1,063,876	$	495,149	$	451,697	$	43,452
Other operating expenses			414,241		3,760		260,535		149,946
Maintenance			104,567		-		71,759		32,808
Depreciation and amortization			333,059		-		226,252		106,807
Taxes other than income			62,746		235		37,918		24,593
Operating Income		$	644,435	$	(3,972)	$	467,412	$	180,995
Assets		$	11,700,283	$	20,822	$	8,301,824	$	3,377,637	$	3,047,184	$	296,810	$	33,643
Capital expenditures(2)		$	629,496	$	(13,094)	$	499,374	$	143,216	$	131,579	$	11,637

(1) The reconciliation of segment assets at December 31, 2012, 2011, and 2010 to the consolidated total includes the following unallocated amounts:
		2012		2011		2010
	Other investments	$	6,499	$	5,901	$	5,956
	Cash		60,786		55,195		9,552
	Deferred charges-other		10,725		1,923		18,135
		$	78,010	$	63,019	$	33,643
(2) The capital expenditures for NVE Other at December 31, 2010 includes $13.1 million proceeds from the sale of assets between SPPC and SPCOM.