NPC and SPPC follow deferred energy accounting. See Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2012 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, 2013 (dollars in thousands):

		June 30, 2013
		NVE Total		NPC Electric		SPPC Electric		SPPC Gas
Deferred Energy
	Cumulative Balance as of December 31, 2012	$	(151,880)	$	(101,117)	$	(32,693)	$	(18,070)
	2013 Amortization		94,134		57,887		19,196		17,051
	2013 Deferred Energy Under Collections ⁽¹⁾		75,030		55,625		16,230		3,175
Deferred Energy Balance at June 30, 2013 - Subtotal		$	17,284	$	12,395	$	2,733	$	2,156
Reinstatement of deferred energy (effective 6/07, 10 years)			95,103		95,103		-		-
	Total Deferred Energy	$	112,387	$	107,498	$	2,733	$	2,156

Current Assets
	Deferred energy	$	31,113	$	27,389	$	2,733	$	991
Non-current Assets
	Deferred energy		81,274		80,109		-		1,165
	Total Net Deferred Energy	$	112,387	$	107,498	$	2,733	$	2,156

⁽¹⁾	These deferred energy under collections are subject to quarterly rate resets as discussed in Note 1, Summary of Significant Accounting
	Policies, Deferred Energy Accounting, of the Notes to Financial Statements in the 2012 Form 10-K.

In July 2013, NVE and MEHC filed a joint application with the PUCN seeking the authorization of NVE's merger with MEHC. Under Nevada law, the PUCN may not authorize the MidAmerican Merger unless it finds, among other things, that the transaction is “in the public interest.” If the PUCN does not issue a final order regarding the MidAmerican Merger within 180 days of the application filing date, the transaction will be deemed to be authorized. Based on the date of filing, the expected authorization date for the joint application between NVE and MEHC is January 2014.

In May 2013, NPC and SPPC filed a joint application with the PUCN to consolidate the Utilities into a single jurisdictional utility. The joint application with the PUCN requested the following:

Authority to modify the legal and regulatory structures of NPC and SPPC by merging SPPC into NPC, effectively transferring all of SPPC's assets and obligations to NPC, and renaming the surviving utility NVEOC;

Authority to transfer SPPC's certificates of public convenience and necessity (CPCN) to NPC, and to modify the transferred CPCNs and NPC's CPCN to reflect the name of the surviving utility, NVEOC; and

Authority to transfer all SPPC's electric and gas utility assets, including electric generation assets, to NPC.

The PUCN may not authorize the One Company Merger unless it finds, among other things, that the proposed transaction is “in the public interest.” Hearings are expected to begin in February 2014.

Concurrent with the One Company Merger filing, NPC and SPPC filed a joint financing application with the PUCN. The application requested the PUCN to restate and review the Utilities' existing unused authority and to assign and consolidate the unused authority under NVEOC. In addition, the application requests new authority of $705.0 million. The consolidated authority would give NVEOC authority to issue new debt of $1.1 billion and authority to refinance or redeem debt of $1.5 billion. The application does not seek a change to NPC's and SPPC's existing revolving credit facility authority of $1.3 billion and $600 million, respectively. The Utilities have requested that the financing application be consolidated with the One Company Merger filing. However, as the One Company Merger will not be approved prior to the December 31, 2013 expiration of NPC's current financing authority, NPC requests that its current authority be extended, as well as additional authority to refinance debt of $255 million. A hearing has been set for August 2013 to address whether NPC's financing authority should be extended.

In March 2013, NPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ended December 31, 2012, and to reset the REPR, TRED, EEIR and EEPR rate elements. DEAA amounts subject to prudency review for cumulative balances as of December 31, 2012 are included in the table above. Hearings are scheduled in mid-August 2013 with anticipated rates effective October 1, 2013. The March 2013 application includes the following changes in revenue requirement (dollars in millions):


			Anticipated	Requested		Present		$ Change in
			Effective	Revenue		Revenue		Revenue
			Date	Requirement		Requirement		Requirement
Revenue Requirement Subject To Change:

	REPR⁽¹⁾		Oct. 2013	$	28.4	$	38.7	$	(10.3)
	TRED⁽¹⁾		Oct. 2013		15.7		15.9		(0.2)
	EEPR Base⁽¹⁾		Oct. 2013		45.9		32.6		13.3
	EEPR Amortization⁽¹⁾		Oct. 2013		(29.9)		9.0		(38.9)
	EEIR Base		Oct. 2013		15.1		10.6		4.5
	EEIR Amortization		Oct. 2013		(6.7)		10.7		(17.4)
		Total Revenue Requirement		$	68.5	$	117.5	$	(49.0)

⁽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 June 2013, SPPC filed its statutorily required GRC for its Nevada electric operations. In this GRC, SPPC is requesting the following:

Hearings are scheduled for October 2013 and, if approved, the new rates would be effective January 1, 2014.

In June 2013, SPPC filed a GRC for its gas operations. In this GRC, SPPC is requesting the following:

Hearings are scheduled for October 2013 and, if approved, the new rates would be effective January 1, 2014.

In March 2013, SPPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ended December 31, 2012, and to reset the REPR, TRED, EEPR and EEIR rate elements. DEAA amounts subject to prudency review for cumulative balances as of December 31, 2012 are included in the deferred energy table above. Hearings are scheduled in mid-August 2013 with anticipated rates effective October 1, 2013. The March 2013 application includes the following changes in revenue requirement includes the following (dollars in millions):


			Anticipated	Requested		Present		$ Change in
			Effective	Revenue		Revenue		Revenue
			Date	Requirement		Requirement		Requirement
Revenue Requirement Subject To Change:
	REPR⁽¹⁾		Oct. 2013	$	42.3	$	44.4	$	(2.1)
	TRED⁽¹⁾		Oct. 2013		7.4		6.3		1.1
	EEPR Base⁽¹⁾		Oct. 2013		6.0		5.6		0.4
	EEPR Amortization⁽¹⁾		Oct. 2013		(2.2)		1.8		(4.0)
	EEIR Base		Oct. 2013		5.6		4.7		0.9
	EEIR Amortization		Oct. 2013		1.1		1.9		(0.8)
		Total Revenue Requirement		$	60.2	$	64.7	$	(4.5)

⁽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 2013, 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 ended December 31, 2012 and to reset the REPR. DEAA amounts subject to prudency review for cumulative balances as of December 31, 2012 are included in the deferred energy table above. The amounts requested in this filing result in an overall decrease in revenue requirement of $0.2 million, hearings are scheduled in mid-August 2013, with an anticipated effective date of October 2013.

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. In December 2012, FERC issued an order which suspended the proposed rate increases until June 1, 2013. Furthermore, as requested in the filing, the FERC accepted two proposed rate decreases effective January 1, 2013. All rates are currently subject to refund and final approval by the FERC. However, at this time management is unable to determine the final revenue impact of the case.

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. In December 2012, FERC issued an order which suspended certain rate increases until June 1, 2013. Furthermore, as requested in the filing, the FERC accepted two proposed rate decreases effective January 1, 2013. On June 17, 2013, SPPC filed an unopposed settlement agreement resolving all issues with the FERC, which is pending before FERC for approval for rates effective June 1, 2013. The rate changes under the terms of the settlement agreement are expected to result in an overall annual revenue increase of $1.5 million.

In May 2013, NPC and SPPC filed an application with the FERC to reset transmission and ancillary service rates effective on the later of January 1, 2014, or the ON Line in-service date. The rate changes reflect the addition of the ON Line in transmission revenue requirement. Various interveners filed protests and NPC and SPPC filed a response to those protests on July 16, 2013. FERC has not ruled on this application. At this time, management is unable to determine the final revenue impact of the case.

In May 2013, NVE, NPC and SPPC filed an application with the FERC under Section 203 of the Federal Power Act for Approval of Internal Reorganization. In their request, NPC and SPPC requested FERC authorization for an internal corporate reorganization under which SPPC will merge into NPC and the surviving entity will be renamed NVEOC. Under Section 203 of the Federal Power Act, the FERC may not authorize the Internal Reorganization unless it finds, among other things, that the transaction is “consistent with the public interest”. If the FERC does not grant or deny the application within 180 days after the application was filed, the application is deemed granted unless the FERC finds that further consideration, for a period not to exceed an additional 180 days, is required to determine whether the transaction meets the specified standards. NPC and SPPC requested authorization by December 1, 2013 to enable the transaction to be effective on the latter of December 31, 2013, or the ON Line in-service date. The application is currently pending before FERC for consideration.

On July 12, 2013, an application was filed with the FERC under Section 203 of the Federal Power Act, to approve the MidAmerican Merger. The MidAmerican Merger is discussed in more detail in Note 2, Merger Related Activities. Under Section 203 of the Federal Power Act, the FERC may not authorize the MidAmerican Merger unless it finds, among other things, that the transaction is “consistent with the public interest.” If the FERC does not grant or deny the application within 180 days after the application was filed, the application is deemed granted unless the FERC finds that further consideration, for a period not to exceed an additional 180 days, is required to determine whether the transaction meets the specified standards. The application requests authorization of the proposed transaction by December 19, 2013; however, NVE is unable to determine the timing of a decision in the filing.