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NV Energy Reports Strong Third Quarter Results; Increases Earnings Guidance for 2012

November 2, 2012

LAS VEGAS, Nov. 2, 2012 /PRNewswire/ — NV Energy, Inc. (NYSE: NVE) today announced financial results for the three-and nine-month periods ended September 30, 2012.

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

                             NV Energy, Inc.
                           Consolidated Results
                        Periods Ended September 30

               Net Income                               EPS
            ($ in millions)                          (diluted)
            --------------                            --------
                       2012                       2011           2012 2011
                       ----                       ----           ---- ----
     Three
     Months                             $223.2                 $173.5      $0.94 $0.73
     Nine
     Months                              304.8                  188.7       1.28  0.80

“Our strong third quarter results were largely due to higher earnings from the investment in the Harry Allen Generating Station, increased electricity sales, and lower interest expense,” said Michael Yackira, NV Energy president and chief executive officer. “Our investments in generating capacity over the past five years have enabled us to increase Nevada’s energy independence while maintaining residential customer rates at about the same level as five years ago. Our cost control efforts remain on track. Operating and maintenance expenses for 2012 to date are virtually unchanged from last year.”

The increased electricity sales in the third quarter were primarily due to increased customer usage independent of weather effects, and customer growth. Warmer weather increased earnings by approximately $0.01 per share for the third quarter of 2012 compared to the same period a year ago. Weather was hotter than normal for both quarterly periods, benefiting earnings by about $0.04 per share for the third quarter of 2012, and about $0.03 per share for the same period in 2011, compared to historically normal conditions. For information on cooling and heating degree-days and electricity sales, see the Operating Statistics section of this news release.

In the quarter ended September 30, 2012, NV Energy recorded a $0.02 per share ($5.5 million pre-tax) gain on a previously disclosed asset sale.

Earnings Guidance
NV Energy’s last earnings guidance statement, dated July 27, 2012, indicated that the company expected to earn between $1.15 and $1.25 per share for 2012, with the potential for earnings to be at the upper end of that range assuming normal weather in the second half of the year.

Aided in part by warmer-than-normal weather, results for 2012 to date have exceeded the company’s expectations, and NV Energy is revising its earnings guidance accordingly. The company now expects to earn between $1.30 and $1.40 per share for calendar year 2012, assuming normal weather in the fourth quarter.

Key factors expected to drive financial results in 2012 are shown in the “Third Quarter 2012: Financial Results” presentation posted on www.nvenergy.com this morning.

Webcast Scheduled for 7 a.m. PDT today, Friday, November 2, 2012
Senior management of NV Energy will review the company’s third quarter 2012 financial results and other matters during a conference call and live webcast today, Friday, November 2, 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 260407.

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 periods ended March 31, 2012 and June 30, 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 Share Amounts)
                                                                                                                                   (Unaudited)

                                                                                                                                                             Three Months Ended                Nine Months Ended
                                                                                                                                                                September 30,                    September 30,
                                                                                                                                                                -------------                    -------------
                                                                                                                                                          2012                  2011        2012                 2011
                                                                                                                                                          ----                  ----        ----                 ----

    OPERATING REVENUES                                                                                                                                             $1,026,488         $1,017,796                       $2,378,606       $2,333,710

    OPERATING EXPENSES:
                                                                          Fuel for power generation                                                                   171,316            216,779                          400,936          519,920
                                                                          Purchased power                                                                             205,686            223,348                          486,894          518,672
                                                                          Gas purchased for resale                                                                      5,382             10,137                           46,491           87,753
                                                                          Deferred energy                                                                             (29,036)           (33,620)                         (30,285)         (43,678)
                                                                          Energy efficiency program costs                                                              32,584             23,047                           76,609           23,047
                                                                          Other operating expenses                                                                    100,108            104,598                          307,080          308,119
                                                                          Maintenance                                                                                  19,014             11,369                           76,190           73,317
                                                                          Depreciation and amortization                                                                94,512             93,737                          281,690          266,445
                                                                          Taxes other than income                                                                      15,682             15,205                           44,457           46,134

    Total Operating Expenses                                                                                                                                          615,248            664,600                        1,690,062        1,799,729
                                                                                                                                                                      -------            -------                        ---------        ---------
    OPERATING INCOME                                                                                                                                                  411,240            353,196                          688,544          533,981

    OTHER INCOME (EXPENSE):
                                                                          Interest expense
                                                                          (net of AFUDC-debt: $1,976, $1,326, $5,479 and $10,371)                                     (73,667)           (80,496)                        (226,162)        (238,718)
                                                                          Interest income (expense) on regulatory items                                                (2,024)            (1,282)                          (6,203)          (3,549)
                                                                          AFUDC-equity                                                                                  2,415              1,690                            6,666           12,854
                                                                          Other income                                                                                  8,827              1,611                           19,312            6,351
                                                                          Other expense                                                                                (4,209)            (9,857)                         (11,909)         (23,600)

    Total Other Income (Expense)                                                                                                                                      (68,658)           (88,334)                        (218,296)        (246,662)
                                                                                                                                                                      -------            -------                         --------         --------
    Income Before Income Tax Expense                                                                                                                                  342,582            264,862                          470,248          287,319

    Income tax expense                                                                                                                                                119,412             91,400                          165,466           98,639
                                                                                                                                                                      -------             ------                          -------           ------

    NET INCOME                                                                                                                                                        223,170            173,462                          304,782          188,680

    Other comprehensive income (loss):
    Change in compensation retirement benefits liability and amortization
    (Net of taxes $(74), $(293), $(246) and $(1,302))                                                                                                                     155                544                              464            2,417
    Change in market value of risk management assets and liabilities
    (Net of taxes $91, $0, $355 and $0)                                                                                                       (193)                                -                 (668)                           -
                                                                                                                                              ----                               ---                 ----                          ---

    OTHER COMPREHENSIVE INCOME (LOSS)                                                                                                                                     (38)               544                             (204)           2,417

    COMPREHENSIVE INCOME                                                                                                                                             $223,132           $174,006                         $304,578         $191,097
                                                                                                                                                                     ========           ========                         ========         ========

    Amount per share basic and diluted
                                                                          Net income per share - basic                                                                  $0.95              $0.74                            $1.29            $0.80
                                                                          Net income per share - diluted                                                                $0.94              $0.73                            $1.28            $0.80
    Weighted Average Shares of Common Stock Outstanding - basic                                                                                                   235,961,402        235,990,373                      235,986,874      235,796,321
                                                                                                                                                                  ===========        ===========                      ===========      ===========
    Weighted Average Shares of Common Stock Outstanding - diluted                                                                                                 238,121,732        237,901,330                      237,850,530      237,320,796
                                                                                                                                                                  ===========        ===========                      ===========      ===========
    Dividends Declared Per Share of Common Stock                                                                                                                        $0.17              $0.12                            $0.47            $0.36
                                                                                                                                                                        =====              =====                            =====            =====

                         NV ENERGY, INC.
                   CONSOLIDATED BALANCE SHEETS
           (Dollars in Thousands, Except Share Amounts)
                           (Unaudited)

                                                           September 30,            December 31,
                                                                    2012                    2011
                                                                    ----                    ----
     ASSETS

     Current Assets:
              Cash and
              cash
              equivalents                                       $207,903                             $145,944
       Accounts
              receivable
              less
              allowance
              for
              uncollectible
              accounts:
                              2012 -$9,750; 2011 -
                              $8,150                                        511,107                              355,091
       Materials,
              supplies
              and fuel,
              at average
              cost                                               147,984                              129,663
              Current
              income
              taxes
              receivable                                               -                                   82
              Deferred
              income
              taxes                                              165,015                              104,958
              Other
              current
              assets                                              47,172                               36,782
                                                                  ------                               ------
      Total Current
      Assets                                                  1,079,181                              772,520
                                                              ---------                              -------

      Utility
      Property:
              Plant in
              service                                         12,074,285                           11,923,717
              Construction
              work-in-
              progress                                           658,494                              487,427
                                                                 -------                              -------
                             Total                                       12,732,779                           12,411,144
       Less
              accumulated
              provision
              for
              depreciation                                     3,351,132                            3,184,071
                                                               ---------                            ---------
                              Total Utility Property,
                              Net                                         9,381,647                            9,227,073

      Investments and
      other
      property, net                                              58,666                               57,021

      Deferred
      Charges and
      Other Assets:
              Deferred
              energy                                              90,244                              102,525
              Regulatory
              assets                                           1,121,185                            1,186,127
              Regulatory
              asset for
              pension
              plans                                              207,137                              215,656
              Other
              deferred
              charges and
              assets                                              77,999                               74,206
                                                                  ------                               ------
      Total Deferred
      Charges and
      Other Assets                                            1,496,565                            1,578,514
                                                              ---------                            ---------

     TOTAL ASSETS                                           $12,016,059                          $11,635,128
                                                            ===========                          ===========

                                               (Continued)

                                NV ENERGY, INC.
                          CONSOLIDATED BALANCE SHEETS
                 (Dollars in Thousands, Except Share Amounts)
                                  (Unaudited)

                                                                              September 30,  December 31,
      LIABILITIES AND
      SHAREHOLDERS'
      EQUITY                                                 2012                      2011
                                                             ----                      ----

     Current Liabilities:
                           Current
                           maturities of
                           long-term
                           debt                                                    $258,024                $139,985
                           Accounts
                           payable                                                  322,940                 312,990
                           Accrued
                           expenses                                                 101,199                 128,144
                          Deferred energy                                           214,181                 245,164
                           Other current
                           liabilities                                               68,172                  65,572
                                                                                     ------                  ------
      Total Current
      Liabilities                                                     964,516                     891,855
                                                                      -------                     -------

     Long-term debt                                                 4,766,563                   5,008,931

      Commitments and
      Contingencies

      Deferred Credits and
      Other Liabilities:
                           Deferred income
                           taxes                                                  1,546,998               1,306,510
                           Deferred
                           investment tax
                           credit                                                    14,109                  16,140
                           Accrued
                           retirement
                           benefits                                                  79,405                  92,351
                           Regulatory
                           liabilities                                              541,823                 486,259
                           Other deferred
                           credits and
                           liabilities                                              507,417                 427,003
                                                                                    -------                 -------
      Total Deferred
      Credits and Other
      Liabilities                                                   2,689,752                   2,328,263
                                                                    ---------                   ---------

      Shareholders'
      Equity:
       Common stock,
                           $1.00 par
                           value; 350
                           million shares
                           authorized;
                           235,999,750
                           issued
       for 2012 and
                           2011;
                           235,747,750
                           and
                           235,999,750
                           outstanding
                           for 2012 and
                           2011,
                           respectively                                             236,000                 236,000
       Treasury stock,
                           at cost,
                           252,000 shares
                           and 0 shares
                           for 2012 and
                           2011,
                           respectively                                              (4,509)                      -
                           Other paid-in
                           capital                                                2,713,736               2,713,736
                           Retained
                           earnings                                                 658,139                 464,277
                           Accumulated
                           other
                           comprehensive
                           loss                                                      (8,138)                 (7,934)
                                                                                     ------                  ------
      Total Shareholders'
      Equity                                                        3,595,228                   3,406,079
                                                                    ---------                   ---------

      TOTAL LIABILITIES
      AND SHAREHOLDERS'
      EQUITY                                                      $12,016,059                 $11,635,128
                                                                  ===========                 ===========

                                  (Concluded)

                                                                                                                                                                     NV ENERGY, INC.
                                                                                                                                                   FREE CASH FLOW AND CONSOLIDATED OPERATING STATISTICS
                                                                                                                                                                       (Unaudited)

    FREE CASH FLOW
    --------------
    (dollars in thousands)
                                                                                                                                                                                                                                                                                                                                                                                           Nine Months Ended September 30,
                                                                                                                                                                                                                                                                                                                                                                                           -------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Change from
                                                                                                                                                                                                                                                                                                                                                                                                                                                 2012                                    2011            Prior Year
                                                                                                                                                                                                                                                                                                                                                                                                                                                 ----                                    ----            ----------

    Free Cash Flow*                                                                                                                                                                                                                                                                                                                                                                                                                          $256,404                                           $(2,836)              N/A

                                                                                                                                                                                                                                                                                                                                                       *         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 September 30,                                   Nine Months Ended September 30,
                                                                                                                                                                                                                                                                                                                                                                                           --------------------------------                                   -------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Change in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Average
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Customers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ---------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Change from
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Prior Year
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ----------
                                                                                                                                                                                                                                                                                                                                                                                                                                                 2012                                    2011                                     2012             2011            Change             Change
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 fromPrior          inAverage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Year
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Customers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ---------

    Residential                                                                                                                                                                                                                                                                                                                                          4,419                                                                                         4,323                                        2.2%                           1.2%                  9,356              8,694               7.6%             1.3%
    Commercial                                                                                                                                                                                                                                                                                                                                           2,223                                                                                         2,141                                        3.8%                           0.8%                  5,713              5,472               4.4%             0.3%
    Industrial                                                                                                                                                                                                                                                                                                                                           2,831                                                                                         2,712                                        4.4%                         (0.4)%                  7,841              7,680               2.1%           (1.7)%
                                                                                                                                                                                                                                                                                                                                                         -----                                                                                         -----                                                                                             -----              -----
                                                                                                                                                                                                                                                                                                                                                        TOTAL
                                                                                                                                                                                                                                                                                                                                                        RETAIL                                                                                  9,473                                   9,176                    3.2%                         1.1%                  22,910             21,846         4.9%             1.1%
                                                                                                                                                                                                                                                                                                                                                       ======
    GAS SALES - Dth
    ---------------
    (in thousands)
                                        Three Months Ended September 30,                        Nine Months Ended September 30,
                                        --------------------------------                        -------------------------------

                                                       2012                          2011                    Change                            2012                          2011                            Change
                                                                                                           fromPrior                                                                                       fromPrior
                                                                                                              Year                                                                                            Year
                                                       ----                          ----                 ----------                           ----                          ----                         ----------

    Residential                                         642                           638                              0.6%                                        5,613                           6,318                               (11.2)%
    Commercial                                          374                           389                            (3.9)%                                        2,939                           3,228                                (9.0)%
    Industrial                                          153                           160                            (4.4)%                                          876                           1,047                               (16.3)%
                                                        ---                           ---                                                                            ---                           -----
                            TOTAL
                            RETAIL                    1,169                         1,187                            (1.5)%                                        9,428                          10,593                               (11.0)%
                           ======

    ELECTRIC SOURCES - MWh's
    ------------------------
    (in thousands)
                             Three Months Ended September 30,            Nine Months Ended September 30,
                             --------------------------------            -------------------------------

                              2012              2011           Change                   2012             2011          Change
                                                              fromPrior                                              fromPrior
                                                                 Year                                                   Year
                              ----              ----          ---------                 ----             ----        ---------
    Generated                6,617             6,180                7.1%                        16,093        14,477            11.2%
    Purchased                3,363             3,577              (6.0)%                         8,446         9,081           (7.0)%
                             -----             -----                                             -----         -----
    TOTAL                    9,980             9,757                2.3%                        24,539        23,558             4.2%
                             =====             =====                                            ======        ======

    DEGREE DAYS
    -----------

                                         Three Months Ended September 30,                  Nine Months Ended September 30,
                                         --------------------------------                  -------------------------------
                                                                                           % Change From                                                                       % Change From
                                                                                           -------------                                                                       -------------
                                          2012                          2011 Normal*        Prior Year                  Normal         2012  2011     Normal*       Prior Year             Normal
                                          ----                          ---- ------         ----------                  ------         ----  ----     ------        ----------             ------
    SOUTH
                Heating                      -                             -             -             N/A                        N/A         986 1,131       1,112            (12.8)%            (11.3)%
                Cooling                  2,313                         2,312         2,209               -  %                     4.7%      3,771 3,329       3,390              13.3%              11.2%

    NORTH
                Heating                      1                             3            69          (66.7)%                    (98.6)%      2,677 3,201       3,012            (16.4)%            (11.1)%
                Cooling                  1,020                           848           699            20.3%                      45.9%      1,255   960         878              30.7%              42.9%

    *           Normal = 20-year average

                                           NEVADA POWER COMPANY
                             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                          (Dollars in Thousands)
                                               (Unaudited)

                                                            Three Months Ended           Nine Months Ended
                                                               September 30,               September 30,
                                                               -------------               -------------
                                                                          2012            2011                 2012        2011
                                                                          ----            ----                 ----        ----

      OPERATING
      REVENUES                                                        $802,334                    $798,914           $1,751,165            $1,662,880

      OPERATING
      EXPENSES:
                      Fuel for power generation                                 123,992                     162,976               285,799               378,790
                      Purchased power                                           171,687                     181,733               388,494               399,707
                      Deferred energy                                           (22,685)                    (10,354)              (15,461)               (1,274)
                      Energy efficiency program costs                            28,492                      20,451                65,466                20,451
                      Other operating expenses                                   65,372                      68,004               200,484               195,040
                      Maintenance                                                12,533                       3,460                52,594                45,122
                      Depreciation and amortization                              66,975                      67,212               201,096               186,798
                      Taxes other than income                                     9,743                       9,105                26,793                28,209
                                                                                  -----                       -----                ------                ------
      Total Operating
      Expenses                                                         456,109                     502,587            1,205,265             1,252,843
                                                                       -------                     -------            ---------             ---------
     OPERATING INCOME                                                  346,225                     296,327              545,900               410,037

      OTHER INCOME
      (EXPENSE):
                      Interest expense
                       (net of AFUDC-debt: $1,528, $842,
                       $4,021 and $8,962)                                       (51,784)                    (55,267)             (158,791)             (163,036)
                       Interest income (expense) on
                       regulatory items                                          (1,623)                        (82)               (5,488)                  679
                      AFUDC-equity                                                1,833                       1,026                 4,823                10,979
                      Other income                                                7,096                         594                14,197                 2,708
                      Other expense                                              (2,823)                     (7,324)               (7,162)              (15,235)
                                                                                 ------                      ------                ------               -------
      Total Other
      Expense                                                          (47,301)                    (61,053)            (152,421)             (163,905)
                                                                       -------                     -------             --------              --------
      Income Before
      Income Tax
      Expense                                                          298,924                     235,274              393,479               246,132

      Income tax
      expense                                                          103,754                      80,666              137,328                84,481
                                                                       -------                      ------              -------                ------

     NET INCOME                                                        195,170                     154,608              256,151               161,651

      Other
      comprehensive
      income:
      Change in
      compensation
      retirement
      benefits
      liability and
      amortization
      (Net of taxes
      $(33), $(41),
      $(103) and
      $(554))                                                               65                          75                  192                 1,028

      COMPREHENSIVE
      INCOME                                                          $195,235                    $154,683             $256,343              $162,679
                                                                      ========                    ========             ========              ========

                                                                                                                                                                    NEVADA POWER COMPANY
                                                                                                                                                              CONSOLIDATED OPERATING STATISTICS
                                                                                                                                                                        (Unaudited)

    ELECTRIC SALES - MWh's
    ----------------------
    (in thousands)
                                                  Three Months Ended September 30,                             Nine Months Ended September 30,
                                                  --------------------------------                             -------------------------------

                                                       2012                          2011                   Change                             Change                                 2012                            2011                   Change                          Change
                                                                                                          fromPrior                          inAverage                                                                                      fromPrior                      inAverage
                                                                                                             Year                                                                                                                             Year
                                                                                                                                            Customers                                                                                                                      Customers
                                                                                                                                            ---------                                                                                                                      ---------

    Residential                                       3,752                         3,711                            1.1%                                               1.2%                                         7,619                           7,021                            8.5%                                            1.4%
    Commercial                                        1,374                         1,319                            4.2%                                               0.9%                                         3,480                           3,307                            5.2%                                            0.5%
    Industrial                                        2,145                         2,070                            3.6%                                             (0.7)%                                         5,836                           5,793                            0.7%                                          (2.0)%
                                                      -----                         -----                                                                                                                            -----                           -----
                            TOTAL
                            RETAIL                    7,271                         7,100                            2.4%                                               1.2%                                        16,935                          16,121                            5.0%                                            1.3%
                           ======

    ELECTRIC SOURCES - MWh's
    ------------------------
    (in thousands)
                             Three Months Ended September 30,            Nine Months Ended September 30,
                             --------------------------------            -------------------------------

                              2012              2011           Change                   2012             2011          Change
                                                              fromPrior                                              fromPrior
                                                                 Year                                                   Year
                              ----              ----          ---------                 ----             ----        ---------
    Generated                5,105             4,879                4.6%                        12,264        11,138            10.1%
    Purchased                2,392             2,520              (5.1)%                         5,415         5,821           (7.0)%
                             -----             -----                                             -----         -----
    TOTAL                    7,497             7,399                1.3%                        17,679        16,959             4.2%
                             =====             =====                                            ======        ======

                                                                        SIERRA PACIFIC POWER COMPANY
                                                              CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                           (Dollars in Thousands)
                                                                                (Unaudited)

                                                                              Three Months Ended                       Nine Months Ended
                                                                                 September 30,                           September 30,
                                                                                 -------------                           -------------
                                                                             2012                2011             2012                 2011
                                                                             ----                ----             ----                 ----
    OPERATING REVENUES:
                                 Electric                                           $212,073                  $202,263                      $549,886  $545,462
                                 Gas                                                  12,077                    16,615                        77,543   125,357

    Total Operating Revenues                                                         224,150                   218,878                       627,429   670,819
                                                                                     -------                   -------                       -------   -------

    OPERATING EXPENSES:
                                 Fuel for power generation                            47,324                    53,803                       115,137   141,130
                                 Purchased power                                      33,999                    41,615                        98,400   118,965
                                 Gas purchased for resale                              5,382                    10,137                        46,491    87,753
                                 Deferral of energy - electric - net                  (5,498)                  (22,095)                      (13,854)  (45,924)
                                 Deferral of energy - gas - net                         (853)                   (1,171)                         (970)    3,520
                                 Energy efficiency program costs                       4,092                     2,596                        11,143     2,596
                                 Other operating expenses                             34,128                    35,933                       104,214   110,836
                                 Maintenance                                           6,481                     7,909                        23,596    28,195
                                 Depreciation and amortization                        27,537                    26,525                        80,594    79,647
                                 Taxes other than income                               5,894                     6,052                        17,382    17,675

    Total Operating Expenses                                                         158,486                   161,304                       482,133   544,393
                                                                                     -------                   -------                       -------   -------
    OPERATING INCOME                                                                  65,664                    57,574                       145,296   126,426

    OTHER INCOME (EXPENSE):
                                 Interest expense
                                  (net of AFUDC-debt: $448, $484,
                                  $1,458 and $1,409)                                 (15,298)                  (16,861)                      (47,650)  (50,581)
                                 Interest expense on regulatory items                   (401)                   (1,200)                         (715)   (4,228)
                                 AFUDC-equity                                            582                       664                         1,843     1,875
                                 Other income                                          1,399                       810                         4,181     2,676
                                 Other expense                                          (998)                   (2,255)                       (3,609)   (7,403)

    Total Other Income (Expense)                                                     (14,716)                  (18,842)                      (45,950)  (57,661)
                                                                                     -------                   -------                       -------   -------
    Income Before Income Tax
     Expense                                                                          50,948                    38,732                        99,346    68,765

    Income tax expense                                                                16,521                    13,396                        33,596    23,341
                                                                                      ------                    ------                        ------    ------

    NET INCOME                                                                        34,427                    25,336                        65,750    45,424

    Other comprehensive income:
    Change in compensation
     retirement benefits
     liability and amortization
    (Net of taxes $(22), $(150),
     $(68) and $(1,201))                                                                  42                       279                           127     2,230
                                                                                         ---                       ---                           ---     -----

    COMPREHENSIVE INCOME                                                             $34,469                   $25,615                       $65,877   $47,654
                                                                                     =======                   =======                       =======   =======

                                                                                                                                                              SIERRA PACIFIC POWER COMPANY
                                                                                                                                                            CONSOLIDATED OPERATING STATISTICS
                                                                                                                                                                      (Unaudited)

    ELECTRIC SALES - MWh's
    ----------------------
    (in thousands)
                                                  Three Months Ended September 30,                             Nine Months Ended September 30,
                                                  --------------------------------                             -------------------------------

                                                       2012                          2011                   Change                             Change                                 2012                          2011                  Change                         Change
                                                                                                          fromPrior                          inAverage                                                                                   fromPrior                     inAverage
                                                                                                             Year                                                                                                                          Year
                                                                                                                                            Customers                                                                                                                  Customers
                                                                                                                                            ---------                                                                                                                  ---------

    Residential                                         667                           612                            9.0%                                             1.0%                                         1,737                         1,673                            3.8%                                            0.7%
    Commercial                                          849                           822                            3.3%                                             0.7%                                         2,233                         2,165                            3.1%                                          (0.2)%
    Industrial                                          686                           642                            6.9%                                             4.4%                                         2,005                         1,887                            6.3%                                            2.8%
                                                        ---                           ---                                                                                                                          -----                         -----
                            TOTAL
                            RETAIL                    2,202                         2,076                            6.1%                                             0.9%                                         5,975                         5,725                            4.4%                                            0.6%
                           ======

    GAS SALES - Dth
    ---------------
    (in thousands)
                                        Three Months Ended September 30,                        Nine Months Ended September 30,
                                        --------------------------------                        -------------------------------

                                                       2012                          2011                    Change                            2012                          2011                            Change
                                                                                                           fromPrior                                                                                       fromPrior
                                                                                                              Year                                                                                            Year
                                                       ----                          ----                 ----------                           ----                          ----                         ----------

    Residential                                         642                           638                              0.6%                                        5,613                           6,318                               (11.2)%
    Commercial                                          374                           389                            (3.9)%                                        2,939                           3,228                                (9.0)%
    Industrial                                          153                           160                            (4.4)%                                          876                           1,047                               (16.3)%
                                                        ---                           ---                                                                            ---                           -----
                            TOTAL
                            RETAIL                    1,169                         1,187                            (1.5)%                                        9,428                          10,593                               (11.0)%
                           ======

    ELECTRIC SOURCES - MWh's
    ------------------------
    (in thousands)
                             Three Months Ended September 30,            Nine Months Ended September 30,
                             --------------------------------            -------------------------------

                              2012              2011           Change                   2012             2011         Change
                                                              fromPrior                                             fromPrior
                                                                 Year                                                  Year
                              ----              ----          ---------                 ----             ----       ---------
    Generated                1,512             1,301               16.2%                        3,829         3,339            14.7%
    Purchased                  971             1,057              (8.1)%                        3,031         3,260           (7.0)%
                               ---             -----                                            -----         -----
    TOTAL                    2,483             2,358                5.3%                        6,860         6,599             4.0%
                             =====             =====                                            =====         =====

Non-GAAP Financial Measures

Free Cash Flow

“Free cash flow” meets the definition of a non-GAAP financial measure. NV Energy, Inc. defines free cash flow as net cash from operating activities less additions to utility plant (excluding AFUDC-equity). Since free cash flow is not a measure of liquidity calculated in accordance with GAAP, it should be considered in addition to, but not as a substitute for, the GAAP measure net cash from operating activities.

NV Energy, Inc. considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated from operations after capital expenditures that may be available for increasing its common stock dividend payout ratio, strengthening its capital structure, and considering new investment opportunities.

NV Energy, Inc.’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. The table below provides a reconciliation between GAAP net cash from operating activities and non-GAAP free cash flow (dollars in thousands).

                                            Nine Months Ended September 30,
                                            -------------------------------

                                         2012                                 2011             Change
                                                                                             fromPrior
                                                                                                Year
                                         ----                                 ----                ---------

    Net Cash from Operating Activities                                $644,194                             $467,034               37.9%

    Less Additions to Utility Plant (Excluding AFUDC-Equity)                       (387,790)                        (469,870)           (17.5)%
                                                                 --------                             --------

    Free Cash Flow                                               $256,404                              $(2,836)               N/A
                                                                 ========                              =======

Gross Margin

NV Energy, Inc. presents gross margin in order to aid the reader in determining how profitable the utilities’ electric and gas businesses are 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.

NV Energy, Inc. believes presenting gross margin allows the reader to assess the impact of the utilities’ 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 regulated utility electric and natural gas supply costs versus the fixed rates collected from utility 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 utility customers. Gross margin, which NV Energy, Inc. calculates as operating revenues less energy and energy efficiency program costs, provides a measure of income available to support the other operating expenses of the utilities. Gross margin changes are based primarily on the utilities’ general base rate adjustments (which are required to be filed by statute every three years). These non-GAAP measures should not be considered as substitutes for the GAAP measures. Reconciliations between GAAP operating income and gross margin are provided in the table below (dollars in thousands).

                                                            Three Months Ended September 30,                                   Nine Months Ended September 30,
                                                            --------------------------------                                   -------------------------------

                                                         2012                      2011                       Change fromPrior Year                                2012             2011                    Change fromPrior Year
                                                         ----                      ----                       ---------------------                                ----             ----                    ---------------------
    Operating Revenues:                                          $1,026,488                          $1,017,796                        0.9 %                            $2,378,606               $2,333,710                        1.9 %

    Energy Costs:
                            Fuel for power generation               171,316                             216,779                      (21.0)%                               400,936                  519,920                      (22.9)%
                            Purchased power                         205,686                             223,348                       (7.9)%                               486,894                  518,672                       (6.1)%
                            Gas purchased for resale                  5,382                              10,137                      (46.9)%                                46,491                   87,753                      (47.0)%
                            Deferred energy                         (29,036)                            (33,620)                     (13.6)%                               (30,285)                 (43,678)                     (30.7)%
    Energy efficiency
     program costs                                                   32,584                              23,047                       41.4 %                                76,609                   23,047                      232.4 %
                                                                     ------                              ------                                                             ------                   ------
    Total Costs                                                    $385,932                            $439,691                      (12.2)%                              $980,645               $1,105,714                      (11.3)%
                                                                   --------                            --------                                                           --------               ----------

    Gross Margin                                                   $640,556                            $578,105                       10.8 %                            $1,397,961               $1,227,996                       13.8 %
                                                                   ========                            ========                                                         ==========               ==========

    Other operating
     expenses                                         100,108                                104,598                                                          307,080                    308,119
    Maintenance                                        19,014                                 11,369                                                           76,190                     73,317
    Depreciation and
     amortization                                      94,512                                 93,737                                                          281,690                    266,445
    Taxes other than income                            15,682                                 15,205                                                           44,457                     46,134
                                                       ------                                 ------                                                           ------                     ------

    Operating Income                                               $411,240                            $353,196                       16.4 %                              $688,544                 $533,981                       28.9 %
                                                                   ========                            ========                                                           ========                 ========

SOURCE NV Energy, Inc.


Source: PR Newswire