NV Energy Reports Financial Results for 2011

Feb 21, 2012, 07:00 ET from NV Energy, Inc.

LAS VEGAS, Feb. 21, 2012 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three and 12 months ended December 31, 2011.

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

NV Energy, Inc.

Consolidated Results

Periods Ended December 31,

Net Income (Loss)

($ in millions)

EPS (diluted)

2011

2010

2011

2010

Three Months

$

(25.2)

$

14.2

$

(0.11)

$

0.06

12 Months

$

163.4

$

227.0

$

0.69

$

0.96

"Important considerations impacting our fourth quarter earnings included completion of the Harry Allen plant, which is now in rates, a number of accounting adjustments, and the timing of power plant outages. For the year 2011, the Harry Allen plant and accounting adjustments were the most significant drivers of earnings," said Michael Yackira, president and chief executive officer of NV Energy, Inc.  "Cost control will remain a top priority for our Company this year, as we transition to a period of reduced regulatory risk."

Results for the three months ended December 31, 2011 were adversely affected by regulatory adjustments and reserves totaling $20.9 million (pre-tax), primarily related to a December 2011 rate decision by the Public Utilities Commission of Nevada.

Earnings for the 12 months ended December 31, 2010 benefitted from NV Energy's California operations, which were sold effective January 1, 2011, and a $7.6 million pre-tax gain on a May 2010 asset sale as previously disclosed.

Webcast Scheduled for 7 a.m. PST today, Tuesday, February 21, 2012

Senior management of NV Energy will review the company's 2011 financial results and other matters during a conference call and live webcast today, Tuesday, February 21, at 7 a.m. Pacific Standard Time.

The webcast will be accessible on the NV Energy website at www.nvenergy.com. A taped replay will remain on the company's website 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 234001.

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 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, 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, 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. 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, 2011, June 30, 2011, and September 30, 2011 and Annual Report on Form 10-K for the year ended December 31, 2010, 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 Share Amounts)

Three Months Ended

Year Ended

December 31,

December 31,

2011

2010

2011

2010

OPERATING REVENUES

$

609,597

$

655,011

$

2,943,307

$

3,280,222

OPERATING EXPENSES:

Fuel for power generation

160,665

170,970

680,585

821,484

Purchased power

115,202

126,343

633,874

648,881

Gas purchased for resale

37,402

36,166

125,155

137,702

Deferred energy

(39,655)

6,553

(83,333)

113,107

Energy efficiency program costs

20,489

-

43,537

-

Other operating expenses

102,997

93,486

411,115

414,241

Maintenance

29,990

18,852

103,307

104,567

Depreciation and amortization

91,492

83,992

357,937

333,059

Taxes other than income

14,331

15,214

60,465

62,746

Total Operating Expenses

532,913

551,576

2,332,642

2,635,787

OPERATING INCOME

76,684

103,435

610,665

644,435

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: ($1,653), $6,006, $8,718 and

$23,355)

(89,992)

(91,385)

(328,710)

(333,010)

Interest income (expense) on regulatory items

(4,181)

(3,764)

(16,321)

(12,517)

AFUDC-equity

(1,981)

7,197

10,873

28,112

Other income

7,822

6,317

22,764

36,841

Other expense

(25,324)

(6,075)

(48,924)

(23,113)

Total Other Income (Expense)

(113,656)

(87,710)

(360,318)

(303,687)

Income (Loss) Before Income Tax Expense

(36,972)

15,725

250,347

340,748

Income tax expense (benefit)

(11,724)

1,512

86,915

113,764

NET INCOME (LOSS)

(25,248)

14,213

163,432

226,984

Other comprehensive income (loss):

Change in compensation retirement benefits liability and amortization

(Net of taxes $1,504, $268, $202 and $217)

(2,775)

(497)

(357)

(403)

Change in market value of risk management assets and liabilities

(Net of taxes $369 in 2011)

$

(686)

$

-

$

(686)

$

-

OTHER COMPREHENSIVE INCOME (LOSS)

(3,461)

(497)

(1,043)

(403)

COMPREHENSIVE INCOME (LOSS)

$

(28,709)

$

13,716

$

162,389

$

226,581

Amount per share basic and diluted

Net income (loss) per share - basic

(0.11)

0.06

0.69

0.97

Net income (loss) per share - diluted

(0.11)

0.06

0.69

0.96

Weighted Average Shares of Common Stock Outstanding - basic

235,999,750

235,217,903

235,847,596

235,048,347

Weighted Average Shares of Common Stock Outstanding - diluted

238,365,115

236,767,210

237,767,071

236,294,812

Dividends Declared Per Share of Common Stock

0.13

0.12

0.49

0.45

NV ENERGY, INC.

CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Residential

2,060

2,142

(3.8)%

10,754

11,149

(3.5)%

Commercial

1,733

1,741

(0.5)%

7,205

7,357

(2.1)%

Industrial

2,538

2,511

1.1%

10,218

10,217

-

TOTAL RETAIL

6,331

6,394

(1.0)%

28,177

28,723

(1.9)%

ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)*

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change

Average

Change

Average

From

Change in

From

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

2,060

2,071

(0.5)%

0.9%

10,754

10,872

(1.1)%

0.9%

Commercial

1,733

1,703

1.8%

0.7%

7,205

7,201

0.1%

0.6%

Industrial

2,538

2,481

2.3%

(2.4)%

10,218

10,101

1.2%

(1.9)%

TOTA RETAIL

6,331

6,255

1.2%

0.9%

28,177

28,174

-

0.9%

* Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011.

GAS SALES - Dth

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

TOTAL RETAIL

5,188

4,631

12.0%

15,781

14,739

7.1%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

5,011

4,833

3.7%

19,488

20,526

(5.1)%

Purchased

1,864

2,007

(7.1)%

10,945

9,861

11.0%

TOTAL

6,875

6,840

0.5%

30,433

30,387

0.2%

DEGREE DAYS

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

Normal

2011

2010

Prior Year

Normal

SOUTH

Heating

909

725

25.4%

856

2,040

1,895

7.7%

1,991

Cooling

211

230

(8.3)%

185

3,540

3,648

(3.0)%

3,540

NORTH

Heating

1,911

1,795

6.5%

1,934

5,112

4,868

5.0%

4,960

Cooling

4

18

(77.8)%

4

964

922

4.6%

864

CAPITAL STRUCTURE

(dollars in thousands)

December 31, 2011

December 31, 2010

Current maturities of long-term debt

$

139,985

1.6%

$

355,929

4.1%

Long-term debt

5,008,931

58.6%

4,924,109

57.1%

Total debt

$

5,148,916

60.2%

$

5,280,038

61.2%

Total shareholders' equity

3,406,079

39.8%

3,350,818

38.8%

Total capitalization (including current maturities of long-term debt)

$

8,554,995

100.0%

$

8,630,856

100.0%

AVAILABLE LIQUIDITY AS OF DECEMBER 31, 2011

(dollars in millions)

NVE

NPC

SPPC

Cash and Cash Equivalents

$

20.1

$

65.9

$

55.2

Balance available on Revolving Credit Facilities

N/A

578.8

237.5

$

20.1

$

644.7

$

292.7

NEVADA POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

Three Months Ended

Year Ended

December 31,

December 31,

2011

2010

2011

2010

OPERATING REVENUES

$

391,513

$

416,233

$

2,054,393

$

2,252,377

OPERATING EXPENSES:

Fuel for power generation

119,697

119,137

498,487

588,419

Purchased power

77,519

92,963

477,226

505,239

Deferred energy

(15,026)

13,124

(16,300)

94,843

Energy efficiency program costs

16,841

-

37,292

-

Other operating expenses

65,087

56,762

260,127

260,535

Maintenance

19,198

12,814

64,320

71,759

Depreciation and amortization

65,393

56,922

252,191

226,252

Taxes other than income

9,045

9,061

37,254

37,918

Total Operating Expenses

357,754

360,783

1,610,597

1,784,965

OPERATING INCOME

33,759

55,450

443,796

467,412

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: ($2,192), $5,680, $6,770

and $21,443)

(58,917)

(52,871)

(221,953)

(214,367)

Interest income (expense) on regulatory items

(2,661)

(1,204)

(8,572)

(3,169)

AFUDC-equity

(2,681)

6,674

8,298

25,229

Other income

5,476

6,457

14,774

15,541

Other expense

(17,785)

(3,608)

(33,020)

(12,946)

Total Other Income (Expense)

(76,568)

(44,552)

(240,473)

(189,712)

Income (Loss) Before Income Tax Expense

(42,809)

10,898

203,323

277,700

Income tax expense (benefit)

(13,744)

1,341

70,737

91,757

NET INCOME (LOSS)

(29,065)

9,557

132,586

185,943

Other comprehensive income (loss):

Change in compensation retirement benefits liability and amortization

(Net of taxes $683, $232, $129 and $205)

(1,270)

(430)

(241)

(380)

COMPREHENSIVE INCOME (LOSS)

$

(30,335)

$

9,127

$

132,345

$

185,563

NEVADA POWER COMPANY

OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change

Average

Change

Average

from

Change in

from

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

1,502

1,522

(1.3)%

1.1%

8,523

8,684

(1.9)%

1.1%

Commercial

1,046

1,018

2.8%

0.4%

4,353

4,340

0.3%

0.4%

Industrial

1,860

1,848

0.6%

(2.4)%

7,653

7,618

0.5%

(1.9)%

TOTAL RETAIL

4,408

4,388

0.5%

1.0%

20,529

20,642

(0.5)%

1.0%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

3,896

3,537

10.1%

15,034

15,405

(2.4)%

Purchased

756

1,140

(33.7)%

6,577

6,351

3.6%

TOTAL

4,652

4,677

(0.5)%

21,611

21,756

(0.7)%

CAPITAL STRUCTURE

(dollars in thousands)

December 31, 2011

December 31, 2010

Current maturities of long-term debt

$

139,985

2.2%

$

355,929

5.6%

Long-term debt

3,319,605

52.6%

3,221,833

50.8%

Total debt

$

3,459,590

54.8%

$

3,577,762

56.4%

Total shareholder's equity

2,848,977

45.2%

2,761,632

43.6%

Total capitalization (including current maturities of long-term debt)

$

6,308,567

100.0%

$

6,339,394

100.0%

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

Three Months Ended

Year Ended

December 31,

December 31,

2011

2010

2011

2010

OPERATING REVENUES:

Electric

$

170,955

$

187,542

$

716,417

$

836,879

Gas

47,125

51,232

172,482

190,943

Total Operating Revenues

218,080

238,774

888,899

1,027,822

OPERATING EXPENSES:

Fuel for power generation

40,968

51,833

182,098

233,065

Purchased power

37,683

33,380

156,648

143,642

Gas purchased for resale

37,402

36,166

125,155

137,702

Deferral of energy - electric - net

(19,521)

(8,714)

(65,445)

8,475

Deferral of energy - gas - net

(5,108)

2,143

(1,588)

9,789

Energy efficiency program costs

3,648

-

6,245

-

Other operating expenses

35,864

35,575

146,699

149,946

Maintenance

10,792

6,038

38,987

32,808

Depreciation and amortization

26,099

27,070

105,746

106,807

Taxes other than income

5,246

6,099

22,921

24,593

Total Operating Expenses

173,073

189,590

717,466

846,827

OPERATING INCOME

45,007

49,184

171,433

180,995

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $539, $326, $1,948

and $1,912)

(16,854)

(17,373)

(67,435)

(68,514)

Interest income (expense) on regulatory items

(1,520)

(2,560)

(7,749)

(9,348)

AFUDC-equity

700

523

2,575

2,883

Other income

2,206

2,472

6,883

16,748

Other expense

(7,221)

(2,430)

(14,624)

(9,985)

Total Other Income (Expense)

(22,689)

(19,368)

(80,350)

(68,216)

Income Before Income Tax Expense

22,318

29,816

91,083

112,779

Income tax expense

7,856

10,338

31,197

40,404

NET INCOME

14,462

19,478

59,886

72,375

Other comprehensive income (loss):

Change in compensation retirement benefits liability and amortization

(Net of taxes $556, $130, ($645) and $116)

(995)

(242)

1,236

(215)

COMPREHENSIVE INCOME

$

13,467

$

19,236

$

61,122

$

72,160

SIERRA PACIFIC POWER COMPANY

OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Residential

558

620

(10.0)%

2,231

2,465

(9.5)%

Commercial

687

723

(5.0)%

2,852

3,017

(5.5)%

Industrial

678

663

2.3%

2,565

2,599

(1.3)%

TOTAL RETAIL

1,923

2,006

(4.1)%

7,648

8,081

(5.4)%

ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)*

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change

Average

Change

Average

From

Change in

From

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

558

549

1.6%

0.6%

2,231

2,188

2.0%

0.4%

Commercial

687

685

0.3%

1.4%

2,852

2,861

(0.3)%

0.9%

Industrial

678

633

7.1%

(1.8)%

2,565

2,483

3.3%

(1.8)%

TOTAL RETAIL

1,923

1,867

3.0%

0.7%

7,648

7,532

1.5%

0.4%

* Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011.

GAS SALES - Dth

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

TOTAL RETAIL

5,188

4,631

12.0%

15,781

14,739

7.1%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

1,115

1,296

(14.0)%

4,454

5,121

(13.0)%

Purchased

1,108

867

27.8%

4,368

3,510

24.4%

TOTAL

2,223

2,163

2.8%

8,822

8,631

2.2%

CAPITAL STRUCTURE

(dollars in thousands)

December 31, 2011

December 31, 2010

Long-term debt

$

1,179,326

54.8%

$

1,195,775

55.1%

Total shareholder's equity

974,542

45.2%

973,420

44.9%

Total capitalization

$

2,153,868

100.0%

$

2,169,195

100.0%

Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy in order to provide information 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 their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy calculate as operating revenues less energy costs and energy efficiency program costs, provides a measure of income available to support the other operating expenses. Gross margin changes are based primarily on general base rate adjustments (which are required to be filed by statute every three years). Reconciliations between GAAP operating income and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.

NV Energy, Inc.

Consolidated Gross Margin

(dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year %

2011

2010

Prior Year %

Operating Revenues:

$

609,597

$

655,011

(6.9)%

$

2,943,307

$

3,280,222

(10.3)%

Energy Costs:

Fuel for power generation

160,665

170,970

(6.0)%

680,585

821,484

(17.2)%

Purchased power

115,202

126,343

(8.8)%

633,874

648,881

(2.3)%

Gas purchased for resale

37,402

36,166

3.4%

125,155

137,702

(9.1)%

Deferred energy

(39,655)

6,553

(705.1)%

(83,333)

113,107

(173.7)%

Energy efficiency program costs

20,489

-

N/A

43,537

-

N/A

294,103

340,032

1,399,818

1,721,174

Gross Margin

$

315,494

$

314,979

0.2%

$

1,543,489

$

1,559,048

(1.0)%

Other operating expenses

102,997

93,486

411,115

414,241

Maintenance

29,990

18,852

103,307

104,567

Depreciation and amortization

91,492

83,992

357,937

333,059

Taxes other than income

14,331

15,214

60,465

62,746

Operating Income

$

76,684

$

103,435

(25.9)%

$

610,665

$

644,435

(5.2)%

Nevada Power Company

Gross Margin

(dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year %

2011

2010

Prior Year %

Operating Revenues:

$

391,513

$

416,233

(5.9)%

$

2,054,393

$

2,252,377

(8.8)%

Energy Costs:

Fuel for power generation

119,697

119,137

0.5%

498,487

588,419

(15.3)%

Purchased power

77,519

92,963

(16.6)%

477,226

505,239

(5.5)%

Deferred energy

(15,026)

13,124

(214.5)%

(16,300)

94,843

(117.2)%

Energy efficiency program costs

16,841

-

N/A

37,292

-

N/A

199,031

225,224

996,705

1,188,501

Gross Margin

$

192,482

$

191,009

0.8%

$

1,057,688

$

1,063,876

(0.6)%

Other operating expenses

65,087

56,762

260,127

260,535

Maintenance

19,198

12,814

64,320

71,759

Depreciation and amortization

65,393

56,922

252,191

226,252

Taxes other than income

9,045

9,061

37,254

37,918

Operating Income

$

33,759

$

55,450

(39.1)%

$

443,796

$

467,412

(5.1)%

Sierra Pacific Power Company

Gross Margin

(dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

Change from

Change from

2011

2010

Prior Year %

2011

2010

Prior Year %

Operating Revenues:

Electric

$

170,955

$

187,542

(8.8)%

$

716,417

$

836,879

(14.4)%

Gas

47,125

51,232

(8.0)%

172,482

190,943

(9.7)%

218,080

238,774

(8.7)%

888,899

1,027,822

(13.5)%

Energy Costs:

Fuel for power generation

40,968

51,833

(21.0)%

182,098