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NV Energy Second Quarter Results Benefit From Warmer Weather; Earnings Guidance Affirmed

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LAS VEGAS, July 27, 2012 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three- and six-month periods ended June 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20100825/LA55163LOGO)


NV Energy, Inc.



Consolidated Results



Periods Ended June 30
















Net Income


EPS



($ in millions)


(diluted)



2012


2011


2012


2011


Three Months

$

69.4


$

12.9


$

0.29


$

0.05


Six Months


81.6



15.2



0.34



0.06


"Our improved results in the second quarter were largely due to unusually warm weather, higher earnings associated with our investment in the Harry Allen Generating Station, and settlement proceeds," said Michael Yackira, NV Energy president and chief executive officer.  "Operating and maintenance expenses were virtually unchanged, reflecting the continued success of our cost control efforts.  We have made investments over the past five years to reduce Nevada's dependence on purchased power.  This investment strategy has resulted in residential customer rates that are about the same as they were five years ago."

The warmer weather increased results for the second quarter of 2012 by an estimated $0.11 per share compared to the second quarter of 2011 and by approximately $0.07 per share compared to historically normal conditions.  Mild weather in the second quarter of 2011 had adversely affected earnings by about $0.04 per share compared with historically normal conditions. Cooling degree-days in southern Nevada in the second quarter of 2012 were 44 percent greater than the same period in 2011, and 23 percent greater than normal.

As previously disclosed, adjustments associated with a May 2011 regulatory decision reduced results for the second quarter of 2011 by $0.03 per share ($8.6 million pre-tax).

Earnings Guidance

As announced on May 8, 2012, NV Energy expects to earn between $1.15 and $1.25 per share for the year 2012.  For the first half of 2012, earnings were $0.34 per share.

"Results for the first half of the year exceeded our expectations," Yackira said.  "With summer still underway and third quarter weather a key variable for full-year results, we are making no changes to our earnings guidance range for 2012 at present.  However, assuming normal weather in the second half of the year, there is the potential for annual earnings to be at the upper end of the range."

Key factors expected to drive financial results in 2012 and beyond are shown in the "Second Quarter 2012: Financial Results" presentation posted on www.nvenergy.com this morning.  Management's earnings expectations assume actual weather for the first half of 2012, normal weather for the remainder of the year, and other drivers listed in the presentation.  The estimated impact of weather on earnings is based on assumed relationships between cooling and heating degree-days and demand, with normal conditions based on 20-year averages.

Webcast Scheduled for 7 a.m. PDT today, Friday, July 27, 2012

Senior management of NV Energy will review the company's second quarter 2012 financial results and other matters during a conference call and live webcast today, Friday, July 27, at 7 a.m. Pacific Daylight Time.

The webcast will be accessible on the NV Energy website at: www.nvenergy.com.

A taped replay will be available on the company's website and by telephone for approximately 30 days.  To listen to the replay by telephone, call (800) 475-6701. International callers should dial (320) 365-3844. Use the conference call access code, 252400.

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 combined 45,592 square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy. Forward-looking statements include earnings guidance and estimates or forecasts of operating and financial metrics.  These statements reflect current expectations of future conditions and events and as such are subject to a variety of risks, uncertainties and assumptions that could cause actual results to differ materially from current expectations. These risks, uncertainties and assumptions  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, including but not limited to those associated with the ON Line project, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, wildfire and other natural phenomena, explosions, fires, accidents, mechanical breakdowns that may occur while operating and maintaining an electric and natural gas system,  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 pending and future regulatory filings. Further risks, uncertainties and assumptions that may cause actual results to differ from current expectations pertain to weather conditions, customer and sales growth, plant outages, operations and maintenance expense, depreciation and allowance for funds used during construction, interest rates and expense, cash flow and regulatory matters.  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 Annual Reports on Form 10-K for the year ended December 31, 2011, and quarterly reports on Form 10-Q for the period ended March 31, 2012, each filed with the Securities and Exchange Commission. 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 STATEMENTS OF COMPREHENSIVE INCOME



(Dollars in Thousands, Except Per Share Amounts)



(Unaudited)



































Three Months Ended


Six Months Ended





June 30,


June 30,





2012


2011


2012


2011


















OPERATING REVENUES

$

740,698


$

674,931


$

1,352,118


$

1,315,914


















OPERATING EXPENSES:















Fuel for power generation


112,585



156,803



229,620



303,141




Purchased power


164,092



160,308



281,208



295,324




Gas purchased for resale


9,492



24,984



41,109



77,616




Deferred energy


10,490



(8,106)



(1,249)



(10,058)




Energy efficiency program costs


24,600



-



44,025



-




Other operating expenses


103,371



97,547



206,972



203,521




Maintenance


24,650



32,186



57,176



61,948




Depreciation and amortization


96,316



89,606



187,178



172,708




Taxes other than income


14,266



14,684



28,775



30,929



Total Operating Expenses


559,862



568,012



1,074,814



1,135,129



OPERATING INCOME


180,836



106,919



277,304



180,785


















OTHER INCOME (EXPENSE):















Interest expense















(net of AFUDC-debt: $1,908, $2,835, $3,503 and $9,045)


(74,564)



(80,879)



(152,495)



(158,222)




Interest income (expense) on regulatory items


(1,977)



(1,379)



(4,179)



(2,267)




AFUDC-equity


2,319



3,522



4,251



11,164




Other income


6,291



1,756



10,485



4,740




Other expense


(4,640)



(9,087)



(7,700)



(13,743)



Total Other Income (Expense)


(72,571)



(86,067)



(149,638)



(158,328)



Income Before Income Tax Expense


108,265



20,852



127,666



22,457


















Income tax expense


38,826



7,964



46,054



7,239


















NET INCOME


69,439



12,888



81,612



15,218


















Other comprehensive income (loss):














Change in compensation retirement benefits liability and amortization














(Net of taxes $(83), $(394), $(172) and $(1,009))


154



731



309



1,873



Change in market value of risk management assets and liabilities














(Net of taxes $123, $0, $264 and $0)


(229)



-



(475)



-


















OTHER COMPREHENSIVE INCOME (LOSS)


(75)



731



(166)



1,873


















COMPREHENSIVE INCOME

$

69,364


$

13,619


$

81,446


$

17,091


















Amount per share basic and diluted















Net income per share - basic

$

0.29


$

0.05


$

0.35


$

0.06




Net income per share - diluted

$

0.29


$

0.05


$

0.34


$

0.06



Weighted Average Shares of Common Stock Outstanding - basic


235,999,750



235,867,068



235,999,750



235,697,687



Weighted Average Shares of Common Stock Outstanding - diluted


237,903,276



237,278,546



237,715,070



237,027,656



Dividends Declared Per Share of Common Stock

$

0.17


$

0.12


$

0.30


$

0.24





















NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















June 30,


December 31,







2012


2011



ASSETS




















Current Assets: 










Cash and cash equivalents


$

122,768


$

145,944




Accounts receivable less allowance for uncollectible accounts:











2012 - $7,171; 2011 - $8,150



437,492



355,091




Materials, supplies and fuel, at average cost



146,454



129,663




Current income taxes receivable



-



82




Deferred income taxes



134,426



104,958




Other current assets



35,263



36,782



Total Current Assets



876,403



772,520














Utility Property:










Plant in service



12,025,938



11,923,717




Construction work-in-progress



617,591



487,427





Total



12,643,529



12,411,144




Less accumulated provision for depreciation



3,300,961



3,184,071





Total Utility Property, Net



9,342,568



9,227,073














Investments and other property, net



57,634



57,021














Deferred Charges and Other Assets:










Deferred energy



95,599



102,525




Regulatory assets



1,161,651



1,186,127




Regulatory asset for pension plans



209,698



215,656




Other deferred charges and assets



79,230



74,206



Total Deferred Charges and Other Assets



1,546,178



1,578,514

























TOTAL ASSETS


$

11,822,783


$

11,635,128



























(Continued)








NV ENERGY, INC.



CONSOLIDATED BALANCE SHEETS



(Dollars in Thousands, Except Share Amounts)



(Unaudited)


















June 30,


December 31,



LIABILITIES AND SHAREHOLDERS' EQUITY


2012


2011














Current Liabilities:










Current maturities of long-term debt


$

8,054


$

139,985




Accounts payable



321,962



312,990




Accrued expenses



118,020



128,144




Deferred energy



245,126



245,164




Other current liabilities



72,034



65,572



Total Current Liabilities



765,196



891,855














Long-term debt



5,130,322



5,008,931














Commitments and Contingencies




















Deferred Credits and Other Liabilities:










Deferred income taxes



1,367,358



1,306,510




Deferred investment tax credit



14,861



16,140




Accrued retirement benefits



97,258



92,351




Regulatory liabilities



521,731



486,259




Other deferred credits and liabilities



509,332



427,003



Total Deferred Credits and Other Liabilities



2,510,540



2,328,263












Shareholders' Equity:










Common stock, $1.00 par value; 350 million shares authorized










235,999,750 issued and outstanding for 2012 and 2011



236,000



236,000




Other paid-in capital



2,713,736



2,713,736




Retained earnings



475,089



464,277




Accumulated other comprehensive loss



(8,100)



(7,934)



Total Shareholders' Equity



3,416,725



3,406,079












TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

11,822,783


$

11,635,128














(Concluded)





NV ENERGY, INC.

FREE CASH FLOW AND CONSOLIDATED OPERATING STATISTICS

(Unaudited)

























FREE CASH FLOW









(dollars in thousands)












Six Months Ended June 30,











Change from





2012


2011


Prior Year














Free Cash Flow*

$

31,104


$

(107,688)


128.9

%















*

Free cash flow is a non-GAAP financial measure as defined by the SEC.  See the "Non-GAAP Financial Measures" section for additional information and GAAP reconciliation.    






ELECTRIC SALES - MWh's

















(in thousands)






















Three Months Ended June 30,


Six Months Ended June 30,




2012


2011


Change from

Prior Year


Change in

Average

Customers


2012


2011


Change from

Prior Year


Change in

Average

Customers























Residential

2,801


2,248


24.6

%


1.3

%


4,937


4,372


12.9

%


1.3

%

Commercial

1,873


1,760


6.4

%


0.3

%


3,490


3,330


4.8

%


-

%

Industrial

2,727


2,669


2.2

%


(2.0)

%


5,011


4,968


0.9

%


(2.3)

%


TOTAL RETAIL

7,401


6,677


10.8

%


1.2

%


13,438


12,670


6.1

%


1.1

%






















GAS SALES - Dth














(in thousands)


















Three Months Ended June 30,


Six Months Ended June 30,





2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year



















Residential

1,263


1,718


(26.5)

%


4,970


5,680


(12.5)

%


Commercial

685


837


(18.2)

%


2,565


2,838


(9.6)

%


Industrial

247


316


(21.8)

%


723


887


(18.5)

%



TOTAL RETAIL

2,195


2,871


(23.5)

%


8,258


9,405


(12.2)

%


















ELECTRIC SOURCES - MWh's












(in thousands)

















Three Months Ended June 30,


Six Months Ended June 30,




2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year


Generated


5,009


4,464


12.2

%


9,474


8,286


14.3

%


Purchased


3,046


2,822


7.9

%


5,083


5,504


(7.6)

%


TOTAL


8,055


7,286





14,557


13,790





















DEGREE DAYS


















































Three Months Ended June 30,


Six Months Ended June 30,









% Change From








% Change From



2012


2011


Normal*


Prior Year


Normal


2012


2011


Normal*


Prior Year


Normal

SOUTH

























Heating

62


85


77


(27.1)

%


(19.5)

%


986


1,131


1,112


(12.8)

%


(11.3)

%


Cooling

1,417


985


1,153


43.9

%


22.9

%


1,458


1,017


1,181


43.4

%


23.5

%


























NORTH

























Heating

548


883


715


(37.9)

%


(23.4)

%


2,676


3,198


2,943


(16.3)

%


(9.1)

%


Cooling

235


112


179


109.8

%


31.3

%


235


112


179


109.8

%


31.3

%


























*

Normal = 20-year average












































NEVADA POWER COMPANY



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



(Dollars in Thousands)



(Unaudited)



































Three Months Ended


Six Months Ended





June 30,


June 30,





2012


2011


2012


2011


















OPERATING REVENUES

$

553,143


$

473,898


$

948,831


$

863,966


















OPERATING EXPENSES:















Fuel for power generation


81,258



114,744



161,807



215,814




Purchased power


135,276



122,408



216,807



217,974




Deferred energy


5,053



2,350



7,224



9,080




Energy efficiency program costs


21,200



-



36,974



-




Other operating expenses


68,650



61,935



135,112



127,036




Maintenance


16,988



19,325



40,061



41,662




Depreciation and amortization


69,131



61,913



134,121



119,586




Taxes other than income


8,596



9,046



17,050



19,104



Total Operating Expenses


406,152



391,721



749,156



750,256



OPERATING INCOME


146,991



82,177



199,675



113,710


















OTHER INCOME (EXPENSE):















Interest expense















(net of AFUDC-debt: $1,314, $2,330, $2,493 and $8,120)


(52,602)



(55,736)



(107,007)



(107,769)




Interest income (expense) on regulatory items


(1,849)



126



(3,865)



761




AFUDC-equity


1,577



2,855



2,990



9,953




Other income


5,392



568



7,101



2,114




Other expense


(2,993)



(5,179)



(4,339)



(7,911)



Total Other Expense


(50,475)



(57,366)



(105,120)



(102,852)



Income Before Income Tax Expense


96,516



24,811



94,555



10,858


















Income tax expense


34,219



8,748



33,574



3,815


















NET INCOME


62,297



16,063



60,981



7,043


















Other comprehensive income:














Change in compensation retirement benefits liability and amortization














(Net of taxes $(38), $(108), $(70) and $(513))


64



200



127



953

















COMPREHENSIVE INCOME

$

62,361


$

16,263


$

61,108


$

7,996
















NEVADA POWER COMPANY

 CONSOLIDATED OPERATING STATISTICS

(Unaudited)













































ELECTRIC SALES - MWh's

















(in thousands)






















Three Months Ended June 30,


Six Months Ended June 30,




2012


2011


Change from

Prior Year


Change in

Average

Customers


2012


2011


Change from

Prior Year


Change in

Average

Customers























Residential

2,331


1,781


30.9

%


1.6

%


3,867


3,310


16.8

%


1.5

%

Commercial

1,149


1,073


7.1

%


0.5

%


2,107


1,988


6.0

%


0.3

%

Industrial

2,040


2,027


0.6

%


(2.7)

%


3,691


3,723


(0.9)

%


(2.6)

%


TOTAL RETAIL

5,520


4,881


13.1

%


1.4

%


9,665


9,021


7.1

%


1.4

%






















ELECTRIC SOURCES - MWh's












(in thousands)

















Three Months Ended June 30,


Six Months Ended June 30,




2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year


Generated


3,871


3,487


11.0

%


7,158


6,260


14.3

%


Purchased


1,997


1,718


16.2

%


3,023


3,301


(8.4)

%


TOTAL


5,868


5,205





10,181


9,561






















SIERRA PACIFIC POWER COMPANY



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



(Dollars in Thousands)



(Unaudited)



































Three Months Ended


Six Months Ended





June 30,


June 30,





2012


2011


2012


2011



OPERATING REVENUES:















Electric

$

168,007


$

164,582


$

337,813


$

343,199




Gas


19,544



36,448



65,466



108,742



Total Operating Revenues


187,551



201,030



403,279



451,941


















OPERATING EXPENSES:















Fuel for power generation


31,327



42,059



67,813



87,327




Purchased power


28,816



37,900



64,401



77,350




Gas purchased for resale


9,492



24,984



41,109



77,616




Deferral of energy - electric - net


4,314



(11,898)



(8,356)



(23,829)




Deferral of energy - gas - net


1,123



1,442



(117)



4,691




Energy efficiency program costs


3,400



-



7,051



-




Other operating expenses


33,654



34,687



70,086



74,903




Maintenance


7,662



12,861



17,115



20,286




Depreciation and amortization


27,185



27,693



53,057



53,122




Taxes other than income


5,625



5,599



11,488



11,623



Total Operating Expenses


152,598



175,327



323,647



383,089



OPERATING INCOME


34,953



25,703



79,632



68,852


















OTHER INCOME (EXPENSE):















Interest expense















(net of AFUDC-debt: $594, $505, $1,010 and $925)


(15,379)



(16,774)



(32,352)



(33,720)




Interest expense on regulatory items


(128)



(1,505)



(314)



(3,028)




AFUDC-equity


742



667



1,261



1,211




Other income


599



602



2,782



1,866




Other expense


(1,276)



(3,554)



(2,611)



(5,148)



Total Other Income (Expense)


(15,442)



(20,564)



(31,234)



(38,819)



Income Before Income Tax Expense


19,511



5,139



48,398



30,033


















Income tax expense


6,832



1,627



17,075



9,945


















NET INCOME


12,679



3,512



31,323



20,088


















Other comprehensive income:














Change in compensation retirement benefits liability and amortization














(Net of taxes $(23), $(210), $(46) and $(1,051))


43



390



85



1,951


















COMPREHENSIVE INCOME

$

12,722


$

3,902


$

31,408


$

22,039

















SIERRA PACIFIC POWER COMPANY

 CONSOLIDATED OPERATING STATISTICS

(Unaudited)













































ELECTRIC SALES - MWh's

















(in thousands)






















Three Months Ended June 30,


Six Months Ended June 30,




2012


2011


Change from

Prior Year


Change in

Average

Customers


2012


2011


Change from

Prior Year


Change in

Average

Customers























Residential

470


467


0.6

%


0.7

%


1,070


1,062


0.8

%


0.6

%

Commercial

724


687


5.4

%


(0.2)

%


1,383


1,342


3.1

%


(0.7)

%

Industrial

687


642


7.0

%


9.0

%


1,320


1,245


6.0

%


2.9

%


TOTAL RETAIL

1,881


1,796


4.7

%


0.6

%


3,773


3,649


3.4

%


0.5

%






















GAS SALES - Dth














(in thousands)


















Three Months Ended June 30,


Six Months Ended June 30,





2012


2011


Change from

Prior Year


2012


2011


Change from

Prior Year



















Residential

1,263


1,718


(26.5)

%


4,970


5,680


(12.5)

%


Commercial

685


837


(18.2)