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 -Publisher FASB

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 -Name Statement of Financial Accounting Standard (FAS)

 -Number 167

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 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 167

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The amendment permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S benchmark interest rate for hedge accounting purposes under ASC 815, in addition, to the current approved U.S. rates which include interest rates on direct Treasury obligations of the U.S. government (UST) and LIBOR.  The amendment is effective prospectively for qualifying new or &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;redesignated&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; hedging relationships entered into on or after July 17, 2013.    NVE and the Utilities do not expect this amendment to have a material impact on &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;their&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; financial statements or disclosure requirements. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0px;"&gt;      &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt;Income Taxes (AS&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt;C&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt; 740)&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;"&gt;In July 2013, the FASB amended its existing guidance related to the presentation of an unrecognized tax benefit on the financial statements.  &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;F&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;ASC 740, Income Taxes, does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a NOL &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;carryforward&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, a similar tax loss, or a tax credit &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;carryforward&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; exists.  As a result, there is diversity in practice in the presentation of unrecognized tax benefits.  The objective of the amendment is to eliminate the diversity in practice, requiring the unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a NOL &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;carryforward&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, a similar tax loss, or a tax credit &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;carryforward&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; with certain exceptions.  The amendment will be applied prospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities.  NVE and the Utilities are evaluating the potential effects of this amendment and currently do &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;not anticipate that the adoption of this amendment will have a material impact on the presentation of NVE and the Utilities' consolidated financial statements.    &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0px;"&gt;      &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt;Other Comprehensive Income (AS&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt;C&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt; 220)&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;"&gt;In December 2011, the FASB deferred the effective date of a portion of the June 2011 amendment related to the presentation of reclassification adjustments out of accumulated other comprehensive income.  In February 2013, the FASB reinstated certain portions of the deferred amendment.  The reinstated amendment is applied prospectively and is effective for NVE and the Utilities as of January 1, 2013.  The adoption of this guidance d&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;id&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; not have a material impact on the presentation of the financial statements for NVE and the Utilities. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0px;"&gt;      Balance Sheet Offsetting Disclosures (AS&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt;C&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;font-style:italic;"&gt; 210)&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;"&gt;In November 2011, the FASB amended the Balance Sheet Topic as reflected in the FASB Accounting Standards Codification to enhance current disclosures regarding offsetting (netting) of assets and liabilities on the face of the financial statements.  The amendment requires an entity to disclose information about offsetting and related arrangements to enable users of the financial statements to understand the effect of those arrangements on its financial position.  The scope of this amendment includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements.  The amendment is applied retrospectively to all periods presented and is effective for NVE and the Utilities as of January 1, 2013.  The adoption of this guidance d&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;id&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; not have a material impact on the disclosure requirements for NVE and the Utilities.&lt;/font&gt;&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of the adoption of new accounting pronouncements that may impact the entity's financial reporting.</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>NewAccountingPronouncementsPolicyPolicyTextBlock</Label></Row></Rows><Footnotes /><IsEquityReport>false</IsEquityReport><ReportName>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>true</HasCustomUnits><IsEmbedReport>false</IsEmbedReport><IsMultiCurrency>false</IsMultiCurrency><ReportType>Sheet</ReportType><RoleURI>http://nvenergy.com/role/DisclosureSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESPolicies</RoleURI><NumberOfCols>1</NumberOfCols><NumberOfRows>5</NumberOfRows></InstanceReport>
