LAS VEGAS, Feb. 8 /PRNewswire-FirstCall/ -- NV Energy, Inc. (NYSE:NVE) today announced consolidated net income of $182.9 million, or 78 cents per share, for the year ended December 31, 2009, compared with consolidated net income of $208.9 million, or 89 cents per share, for the same period in 2008. The decrease in 2009 fiscal year earnings as compared with 2008 was primarily due to costs related to the Higgins Generating Station and the Clark Peaking Units not included in rates prior to July 1, 2009. The company earned consolidated net income of $4.2 million, or 2 cents per share, for the fourth quarter ended December 31, 2009, compared with a consolidated net loss of $2.1 million, or 1 cent per share, for the same period in 2008. The increased earnings in the fourth quarter 2009, compared with 2008 was primarily due to higher general rates as a result of the general rate case effective July 1, 2009 at our southern Nevada utility, partially offset by severance costs. "We are satisfied with the results we achieved this year when considering the economic conditions we faced," Michael Yackira, president and chief executive officer of NV Energy, said. "Much of the year over year decline is attributable to expenses related to investment in new generating facilities, which are now accounted for in rates, partially offset by cost discipline throughout the company." Webcast Scheduled for 7 a.m. PST today, Monday, February 8, 2010 Senior management of NV Energy will review the company's 2009 financial results and other matters during a conference call and live webcast today, Monday, Feb. 8, at 7 a.m. Pacific Standard Time. The webcast will be accessible on the NV Energy website: http://www.nvenergy.com/. An archived version of the webcast will remain on the NV Energy website for approximately one month following the live webcast. To listen to a recording of the call by telephone, call (800) 475-6701, and international callers should dial (320) 365-3844. Use the conference call access code, 143110, to listen to the recording. Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a 54,500-square-mile service territory that stretches north to south from Elko to Laughlin, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada as well as approximately 40 million tourists annually. This press release may contain forward-looking statements regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, NV Energy Inc.'s ability to maintain access to the capital markets, NV Energy Inc.'s ability to receive dividends from its subsidiaries, the financial performance of NV Energy Inc.'s subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, and the discretion of NV Energy Inc.'s Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in NV Energy Inc.'s and its subsidiaries' financing agreements. For Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, these risks and uncertainties include, but are not limited to, future economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in their service territories, their ability to procure sufficient renewable energy sources in each compliance year to satisfy the Nevada Renewable Energy Portfolio Standard, changes in environmental laws and regulations, construction risks, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, including changes in and renewals of collective bargaining agreements, strikes or work stoppages, unseasonable weather, drought, threat of wildfire and other natural phenomena, their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company d/b/a NV Energy, financial market conditions, and unfavorable rulings in their future regulatory filings. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy are contained in their quarterly reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009, and September 30, 2009 and their Annual Reports on Form 10-K for the year ended December 31, 2008, each filed with the SEC. NV Energy Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. NV ENERGY, INC. CONSOLIDATED INCOME STATEMENTS (Dollars in Thousands, Except Per Share Amounts) Year ended Three Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- OPERATING REVENUES $3,585,798 $3,528,113 $772,883 $766,137 OPERATING EXPENSES: Fuel for power generation 881,768 1,039,267 197,294 214,162 Purchased power 758,736 974,343 124,551 145,708 Gas purchased for resale 153,607 170,468 52,150 62,180 Deferred energy - net 289,076 (10,265) 74,021 48,710 Other operating expenses 453,413 394,019 120,858 98,610 Maintenance 102,309 94,069 20,090 29,138 Depreciation and amortization 321,921 260,608 81,009 74,952 Taxes other than income 60,885 53,525 17,308 13,259 ------ ------ ------ ------ Total Operating Expenses 3,021,715 2,976,034 687,281 686,719 --------- --------- ------- ------- OPERATING INCOME 564,083 552,079 85,602 79,418 OTHER INCOME (EXPENSE): Interest expense (net of AFUDC-debt) (334,314) (300,857) (83,318) (87,357) Interest income (expense) on regulatory items (2,280) 5,255 (1,407) 1,213 AFUDC-equity 24,274 38,441 5,181 5,506 Other income 33,122 34,278 1,913 9,491 Other expense (26,498) (24,955) (9,073) (14,151) ------- ------- ------ ------- Total Other Income (Expense) (305,696) (247,838) (86,704) (85,298) -------- -------- ------- ------- Income (Loss) before income tax expense 258,387 304,241 (1,102) (5,880) Income tax expense (benefit) 75,451 95,354 (5,253) (3,792) ------ ------ ------ ------ - - NET INCOME (LOSS) $182,936 $208,887 $4,151 $(2,088) ======== ======== ====== ======= Amount per share basic and diluted Net Income per share basic and diluted $0.78 $0.89 $0.02 $(0.01) Weighted Average Shares of Common Stock Outstanding - basic 234,542,292 234,031,750 234,728,309 234,199,000 =========== =========== =========== =========== Weighted Average Shares of Common Stock Outstanding - diluted 235,180,688 234,585,004 235,644,043 234,199,000 =========== =========== =========== =========== Dividends Declared Per Share of Common Stock $0.41 $0.34 $0.11 $0.10 ===== ===== ===== ===== NEVADA POWER COMPANY CONSOLIDATED INCOME STATEMENTS (Dollars in Thousands) Year ended Three Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- OPERATING REVENUES $2,423,377 $2,315,427 $477,559 $449,207 OPERATING EXPENSES: Fuel for power generation 587,647 755,925 132,292 141,957 Purchased power 627,759 680,816 86,013 103,655 Deferred energy - net 207,611 (6,947) 62,701 37,160 Other operating expenses 279,865 249,236 73,094 60,092 Maintenance 71,019 63,282 12,739 20,555 Depreciation and amortization 215,873 171,080 55,004 50,225 Taxes other than income 37,241 32,069 10,847 8,054 ------ ------ ------ ----- Total Operating Expenses 2,027,015 1,945,461 432,690 421,698 --------- --------- ------- ------- OPERATING INCOME 396,362 369,966 44,869 27,509 OTHER INCOME (EXPENSE): Interest expense (net of AFUDC-debt) (226,252) (186,822) (55,717) (56,090) Interest income (expense) on regulatory items 3,463 7,342 572 1,661 AFUDC-equity 21,025 25,917 4,467 4,824 Other income 19,658 16,631 932 3,661 Other expense (18,320) (10,221) (5,985) (5,176) ------- ------- ------ ------ Total Other Income (Expense) (200,426) (147,153) (55,731) (51,120) -------- -------- ------- ------- Income (Loss) before income tax expense 195,936 222,813 (10,862) (23,611) Income tax expense (benefit) 61,652 71,382 (4,205) (9,560) ------ ------ ------ ------ NET INCOME (LOSS) $134,284 $151,431 $(6,657) $(14,051) ======== ======== ======= ======== SIERRA PACIFIC POWER COMPANY CONSOLIDATED INCOME STATEMENTS (Dollars in Thousands) Year ended Three Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- OPERATING REVENUES: Electric $957,130 $1,002,674 $222,744 $244,062 Gas 205,263 209,987 72,577 72,862 ------- ------- ------ ------ Total Operating Revenues 1,162,393 1,212,661 295,321 316,924 --------- --------- ------- ------- OPERATING EXPENSES: Fuel for power generation 294,121 283,342 65,002 72,205 Purchased power 130,977 293,527 38,538 42,053 Gas purchased for resale 153,607 170,468 52,150 62,180 Deferred energy - electric - net 73,829 1,291 5,607 13,863 Deferred energy - gas - net 7,636 (4,609) 5,713 (2,313) Other operating expenses 170,849 141,064 47,101 37,320 Maintenance 31,290 30,787 7,351 8,583 Depreciation and amortization 106,048 89,528 26,005 24,727 Taxes other than income 23,447 21,304 6,401 5,176 ------ ------ ----- ----- Total Operating Expenses 991,804 1,026,702 253,868 263,794 ------- --------- ------- ------- OPERATING INCOME 170,589 185,959 41,453 53,130 OTHER INCOME (EXPENSE): Interest expense (net of AFUDC-debt) (69,413) (72,712) (17,940) (21,254) Interest income (expense) on regulatory items (5,743) (2,087) (1,979) (448) AFUDC-equity 3,249 12,524 714 682 Other income 13,276 12,819 977 1,488 Other expense (7,648) (8,318) (3,047) (2,888) ------ ------ ------ ------ Total Other Income (Expense) (66,279) (57,774) (21,275) (22,420) ------- ------- ------- ------- Income before income tax expense 104,310 128,185 20,178 30,710 Income tax expense 31,225 37,603 5,299 8,180 ------ ------ ----- ----- NET INCOME $73,085 $90,582 $14,879 $22,530 ======= ======= ======= ======= Gross margin is presented by Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy in order to provide information by segment that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a "non-GAAP financial measure" as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business. Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy believe presenting gross margin allows the reader to assess the impact of regulatory treatment and its overall regulatory environment on a consistent basis. To the extent purchased power and natural gas supply costs are deemed prudent by the PUCN, changes in these costs are designed to pass through to our customers and do not effect gross margin or operating income. Gross margin, as calculated below, provides a measure of income available to support the other operating expenses of Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy. Gross margin may be impacted by such factors as customer usage, customer growth and general base rate adjustments (filed every three years by statute). Reconciliations to GAAP operating income are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Gross Margin (Dollars in Thousands) (Unaudited) Nevada Power Company % Change from 2009 2008 Prior Year ---- ---- ---------- Operating Revenues $2,423,377 $2,315,427 4.7% Energy Costs: Fuel for power generation 587,647 755,925 Purchased Power 627,759 680,816 Deferred energy - net 207,611 (6,947) ------- ------ 1,423,017 1,429,794 -0.5% --------- --------- Gross Margin $1,000,360 $885,633 13.0% ========== ======== Other operating expenses 279,865 249,236 Maintenance 71,019 63,282 Depreciation and amortization 215,873 171,080 Taxes other than income 37,241 32,069 ------ ------ Operating Income $396,362 $369,966 7.1% ======== ======== Sierra Pacific Power Company % Change from 2009 2008 Prior Year ---- ---- ---------- Operating Revenues: Electric $957,130 $1,002,674 Gas 205,263 209,987 ------- ------- $1,162,393 $1,212,661 -4.1% ---------- ---------- Energy Costs: Fuel for power generation 294,121 283,342 Purchased Power 130,977 293,527 Gas purchased for resale 153,607 170,468 Deferred energy - electric - net 73,829 1,291 Deferred energy - gas - net 7,636 (4,609) ----- ------ $660,170 $744,019 -11.3% -------- -------- Gross Margin $502,223 $468,642 7.2% ======== ======== Other operating expenses 170,849 141,064 Maintenance 31,290 30,787 Depreciation and amortization 106,048 89,528 Taxes other than income 23,447 21,304 ------ ------ Operating Income $170,589 $185,959 -8.3% ======== ======== Energy Costs by Segment: Electric $498,927 $578,160 Gas 161,243 165,859 ------- ------- $660,170 $744,019 -------- -------- Gross Margin by Segment: Electric $458,203 $424,514 Gas 44,020 44,128 ------ ------ $502,223 $468,642 7.2% ======== ======== Summary of Selected Operating Statistics Nevada Power Company Operating Revenues (dollars in thousands) % Change Avg. from Prior Change in 2009 2008 Year customers ---- ---- ----------- ---------- Operating Revenues: Residential $1,143,836 $1,064,510 7.5% 0.1% Commercial 477,477 471,236 1.3% 0.4% Industrial 720,850 678,117 6.3% 1.5% ------- ------- Retail Revenues 2,342,163 2,213,863 5.8% Other 81,214 101,564 -20.0% ------ ------- Total Operating Revenues $2,423,377 $2,315,427 4.7% ========== ========== Retail sales in thousands of MWhs 20,957 21,381 -2.0% Sierra Pacific Power Company Operating Revenues (dollars in thousands) % Change Avg. from Prior Change in 2009 2008 Year customers ---- ---- ----------- ---------- Electric Operating Revenues: Residential $345,455 $340,972 1.3% -0.1% Commercial 381,805 386,678 -1.3% 1.3% Industrial 199,510 240,711 -17.1% 1.8% ------- ------- Retail revenues 926,770 968,361 -4.3% Other 30,360 34,313 -11.5% ------ ------ Total Revenues $957,130 $1,002,674 -4.5% ======== ========== Retail sales in thousands of MWhs 8,162 8,560 -4.6% % Change from Avg. Change in 2009 2008 Prior Year customers ---- ---- ---------- ----------- Gas Operating Revenues: Residential $116,680 $114,845 1.6% Commercial 52,186 52,163 0.0% Industrial 17,458 19,514 -10.5% ------ ------ Retail revenues 186,324 186,522 -0.1% 0.4% Wholesale revenue 16,560 20,956 -21.0% Miscellaneous 2,379 2,509 -5.2% ----- ----- Total Revenues $205,263 $209,987 -2.2% ======== ======== Retail sales in thousands of decatherms 15,046 15,070 -0.2% Summary of Selected Operating Statistics Nevada Power Company MWH Electric Sales (in MWh's) % Change from 2009 2008 prior year ---- ---- ------------- Residential 8,893,542 9,041,403 -1.6% Commercial & Industrial Gaming/Recreation/ Restaurants 3,392,658 3,695,156 -8.2% All Other Retail 8,670,931 8,644,314 0.3% --------- --------- Total Retail 20,957,131 21,380,873 -2.0% Wholesale 69,915 83,123 -15.9% Sales to Public Authorities 240,302 231,647 3.7% ------- ------- Total 21,267,348 21,695,643 -2.0% ========== ========== Sierra Pacific Power Company MWH Electric Sales (in MWh's) % Change from 2009 2008 prior year ---- ---- ------------- Residential 2,502,537 2,523,923 -0.8% Mining 1,405,087 1,632,882 -14.0% Commercial and Industrial 4,254,749 4,403,403 -3.4% --------- --------- Total Retail 8,162,373 8,560,208 -4.6% Wholesale 14,993 15,577 -3.7% Streetlights 16,535 16,108 2.7% ------ ------ Total 8,193,901 8,591,893 -4.6% ========= ========= Financial Highlights (Dollars in Thousands) (Unaudited) NV Energy, Inc Capital Structure December 31, 2009 December 31, 2008 ----------------- ----------------- Current maturities of long-term debt $134,474 1.6% $9,291 0.1% Long-term debt 5,303,357 61.2% 5,266,982 62.7% --------- ---- --------- ---- Total Debt $5,437,831 62.8% $5,276,273 62.8% Total shareholders' equity 3,223,922 37.2% 3,131,186 37.2% --------- ---- --------- ---- Total Capitalization (including current maturities of long-term debt) $8,661,753 100.0% $8,407,459 100.0% ========== ===== ========== ===== Nevada Power Company Capital Structure December 31, 2009 December 31, 2008 ----------------- ----------------- Current maturities of long-term debt $119,474 1.9% $8,691 0.2% Long-term debt 3,535,440 56.1% 3,385,106 56.2% --------- ---- --------- ---- Total Debt $3,654,914 58.0% $3,393,797 56.4% Total shareholder's equity 2,650,039 42.0% 2,627,567 43.6% --------- ---- --------- ---- Total Capitalization (including current maturities of long-term debt) $6,304,953 100.0% $6,021,364 100.0% ========== ===== ========== ===== Sierra Pacific Power Company Capital Structure December 31, 2009 December 31, 2008 ----------------- ----------------- Current maturities of long-term debt $15,000 0.6% $600 0.0% Long-term debt 1,282,225 55.6% 1,395,987 61.4% --------- ---- --------- ---- Total Debt $1,297,225 56.2% $1,396,587 61.4% Common shareholder's equity 1,009,258 43.8% 877,961 38.6% --------- ---- ------- ---- Total Capitalization (including current maturities of long-term debt) $2,306,483 100.0% $2,274,548 100.0% ========== ===== ========== ===== NVE Available Liquidity as of December 31, 2009 (dollars in millions) --------------------------------------------------------------------- NVE NPC (1) SPPC --- ------- ---- Cash and Cash Equivalents $3.7 $42.6 $14.4 Balance available on Revolving Credit Facilities N/A 553.3 301.8 --- ----- ----- $3.7 $595.9 $316.2 ==== ====== ====== (1) NPC's balance reflects combined amount available under the multi-year revolving credit facility and the $90 million supplemental revolving credit facility. The supplemental facility expired January 3, 2010. DATASOURCE: NV Energy, Inc. CONTACT: Analyst, Britta Carlson, +1-702-402-5624, Media, Karl Walquist, +1-775-834-3891, both for NV Energy, Inc. Web Site: http://www.nvenergy.com/

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