LAS VEGAS, July 31 /PRNewswire-FirstCall/ -- NV Energy, Inc.
(NYSE:NVE) today announced consolidated net income of $18.4
million, or 8 cents per share, for the quarter ended June 30, 2009,
compared with consolidated net income of $36.1 million, or 15 cents
per share, for the same period in 2008. The decrease in earnings in
the second quarter 2009 compared with the same period in 2008 was
the result of higher other operating and maintenance expenses,
depreciation, and interest expenses primarily related to power
plant investments. "Much of the decline in the second quarter is
attributable to expenses associated with new generating facilities
in southern Nevada that did not provide a return to shareholders
but were addressed in our most recent general rate case," said
Michael Yackira, president and chief executive officer of NV
Energy. NV Energy's two utilities contributed gross margin of
$325.9 million in the second quarter 2009, $21.6 million higher
than the second quarter 2008. The increase in consolidated gross
margin was primarily due to a general rate increase in the
company's northern Nevada service territory effective July 1, 2008,
as well as increased residential customer usage due to warmer
weather and modest customer growth. The average number of
residential, commercial and industrial electric customers in
southern Nevada increased by 0.4 percent, 0.8 percent and 2.8
percent, respectively, in the six months ended June 30, 2009,
compared with the same period in 2008. In northern Nevada, the
average number of residential customers declined 0.1 percent while
commercial and industrial electric customers increased by 1.5
percent and 2.6 percent, respectively, for the six months ended
June 30, 2009, compared with the same period in 2008. Webcast
Scheduled for 7 a.m. PDT today, Friday, July 31, 2009 Senior
management of NV Energy will review the company's 2009 second
quarter financial results, regulatory issues and other matters
during a conference call and live webcast today, Friday, July 31,
at 7 a.m. Pacific Daylight Time. The webcast will be accessible on
the NV Energy website: http://www.nvenergy.com/. An archived
version of the webcast will remain on the NV Energy website for
approximately one month following the live webcast. To listen to a
recording of the call by telephone, call (800) 475-6701, and
international callers should dial (320) 365-3844. Use the
conference call access code, 107018, to listen to the recording.
Headquartered in Las Vegas, NV Energy, Inc. is a holding company
whose principal subsidiaries, Nevada Power Company and Sierra
Pacific Power Company, are doing business as NV Energy. Serving a
54,500-square-mile service territory that stretches north to south
from Elko to Laughlin, NV Energy provides a wide range of energy
services and products to approximately 2.4 million citizens of
Nevada as well as approximately 40 million tourists annually. This
press release contains forward-looking statements regarding the
future performance of NV Energy, Inc. and its subsidiaries, Nevada
Power Company d/b/a NV Energy and Sierra Pacific Power Company
d/b/a NV Energy, within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are subject to a
variety of risks and uncertainties that could cause actual results
to differ materially from current expectations. These risks and
uncertainties include, but are not limited to, NV Energy's ability
to maintain access to the capital markets, NV Energy's ability to
receive dividends from its subsidiaries, the financial performance
of NV Energy's subsidiaries, particularly Nevada Power Company and
Sierra Pacific Power Company, and the discretion of NV Energy'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's and
its subsidiaries' financing agreements. For Nevada Power Company
and Sierra Pacific Power Company, 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,
unfavorable rulings in their pending and future regulatory filings,
their ability to maintain access to the capital markets for general
corporate purposes and to finance construction projects, their
ability to purchase sufficient fuel, natural gas and power to meet
their power demands and natural gas demands for Sierra Pacific
Power Company, financial market conditions, changes in
environmental laws and regulations, and construction risks.
Additional cautionary statements regarding other risk factors that
could have an effect on the future performance of NV Energy, Nevada
Power Company and Sierra Pacific Power Company are contained in
their quarterly reports on Form 10-Q for the quarter ended March
31, 2009 and their Annual Reports on Form 10-K for the year ended
December 31, 2008 each filed with the SEC. NV Energy, Nevada Power
Company and Sierra Pacific Power Company 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. Financial Highlights (Dollars in Thousands,
Except Per Share Amounts) (Unaudited) NV Energy, Inc. Three Months
Ended Six Months Ended June 30, June 30, ------------------
----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating
revenues $838,641 $838,794 $1,593,908 $1,643,845 Other operating
expenses $109,886 $98,647 $224,563 $190,322 Maintenance $27,632
$21,472 $62,032 $44,594 Depreciation and amortization $80,323
$64,341 $158,371 $126,411 Income taxes (benefits) $4,084 $12,928
$(9,572) $21,547 Taxes other than income $13,753 $12,658 $28,400
$26,565 Operating income $90,215 $94,201 $145,968 $171,014 Other
income (expense): Allowance for other funds used during
construction $8,548 $13,113 $14,766 $25,070 Income taxes $(5,509)
$(4,099) $(7,751) $(12,188) Interest Charges (net of AFUDC) $83,559
$67,300 $166,192 $135,804 Net Income (Loss) $18,383 $36,134
$(3,861) $60,192 ======= ======= ======= ======= Amount per share
basic and diluted - Net income (Loss) per share - basic and diluted
$0.08 $0.15 $(0.02) $0.26 Weighted Average Shares of Common Stock
Outstanding: Basic - 234,474,727 233,992,721 234,403,282
233,914,046 =========== =========== =========== =========== Diluted
- 235,089,193 234,519,562 234,403,282 234,420,336 ===========
=========== =========== =========== Capital Structure June 30, 2009
June 30, 2008 ------------- ------------- Current maturities of
long-term debt $9,085 0.1% $10,298 0.1% Long-term debt 5,571,799
64.3% 4,451,781 59.5% --------- ---- --------- ---- Total Debt
$5,580,884 64.4% $4,462,079 59.6% Common shareholders' equity
3,083,773 35.6% 3,024,027 40.4% --------- ---- --------- ---- Total
Capitalization (including current maturities of long-term debt)
$8,664,657 100.0% $7,486,106 100.0% ========== ===== ==========
===== Nevada Power Company Three Months Ended Six Months Ended June
30, June 30, ------------------ ---------------- 2009 2008 2009
2008 ---- ---- ---- ---- Operating revenues $575,769 $570,223
$1,012,298 $1,039,395 Other operating expenses $68,057 $62,617
$138,250 $119,712 Maintenance $18,732 $13,608 $46,266 $30,258
Depreciation and amortization $53,510 $42,323 $105,873 $82,953
Income taxes (benefits) $1,035 $12,865 $(17,512) $14,997 Taxes
other than income $8,361 $7,427 $17,424 $15,749 Operating income
$60,640 $67,067 $76,105 $107,864 Other income (expense): Allowance
for other funds used during construction $7,552 $7,692 $13,173
$14,550 Income taxes $(4,361) $(3,131) $(6,543) $(7,522) Interest
Charges (net of AFUDC) $57,137 $40,988 $112,180 $82,461 Net Income
(Loss) $12,501 $33,175 $(22,650) $41,146 ======= ======= ========
======= Capital Structure June 30, 2009 June 30, 2008 -------------
------------- Current maturities of long-term debt $9,085 0.1%
$8,636 0.1% Long-term Debt 3,712,016 59.3% 2,664,929 51.2% Total
Debt $3,721,101 59.4% $2,673,565 51.3% Common shareholder's equity
2,542,948 40.6% 2,534,866 48.7% Total Capitalization (including
current maturities of long-term debt) $6,264,049 100.0% $5,208,431
100.0% ========== ===== ========== ===== Sierra Pacific Power
Company Three Months Ended Six Months Ended June 30, June 30,
------------------ ---------------- 2009 2008 2009 2008 ---- ----
---- ---- Operating revenues $262,862 $268,567 $581,593 $604,439
Other operating expenses $40,890 $34,765 $84,905 $68,270
Maintenance $8,900 $7,864 $15,766 $14,336 Depreciation and
amortization $26,813 $22,018 $52,498 $43,458 Income taxes $4,752
$3,952 $13,830 $13,611 Taxes other than income $5,360 $5,198
$10,884 $10,726 Operating Income $28,833 $24,539 $65,456 $58,508
Other income (expense): Allowance for other funds used during
construction $996 $5,421 $1,593 $10,520 Income taxes $(1,217)
$(953) $(1,425) $(4,527) Interest Charges (net of AFUDC) $16,759
$15,879 $34,686 $32,466 Net Income $14,804 $10,849 $33,940 $35,133
======= ======= ======= ======= Capital Structure June 30, 2009
June 30, 2008 ------------- ------------- Current maturities of
long-term debt $- 0.0% $1,662 0.1% Long-term debt 1,373,992 58.6%
1,261,788 55.8% --------- ---- --------- ---- Total Debt $1,373,992
58.6% $1,263,450 55.9% Common shareholder's equity 970,218 41.4%
998,221 44.1% ------- ---- ------- ---- Total Capitalization
(including current maturities of long-term debt) $2,344,210 100.0%
$2,261,671 100.0% ========== ===== ========== ===== Gross margin is
presented by Nevada Power Company d/b/a NV Energy and Sierra
Pacific Power Company d/b/a NV Energy in order to provide
information by segment that management believes aids the reader in
determining how profitable the electric and gas business is at the
most fundamental level. Gross margin, which is a "non-GAAP
financial measure" as defined in accordance with SEC rules,
provides a measure of income available to support the other
operating expenses of the business and is utilized by management in
its analysis of its business. Nevada Power Company and Sierra
Pacific Power Company 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 regulated 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 calculate as operating revenues less
fuel and purchased power costs, provides a measure of income
available to support the other operating expenses. Gross margin
changes based on such factors as general base rate adjustments
(which are required to be filed by statute every three years) and
reflect Nevada Power Company and Sierra Pacific Power Company's
strategy to increase internal power generation versus purchased
power, which generates no gross margin. Reconciliations between
GAAP operating revenues and gross margin are provided in tables
herein. These non-GAAP measures should not be considered as
substitutes for the GAAP measures. RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES Gross Margin (Dollars in Thousands) (Unaudited)
Nevada Power Company Three Months Ended Six Months Ended June 30,
June 30, ------------------ ---------------- 2009 2008 2009 2008
---- ---- ---- ---- Operating Revenues: Electric $575,769 $570,223
$1,012,298 $1,039,395 Energy Costs: Fuel for power generation
$140,333 $209,920 $294,395 $373,941 Purchased Power $165,292
$164,087 $253,498 $257,837 Deferred energy costs-net $59,809
$(9,691) $97,999 $36,084 ------- -------- ------- ------- $365,434
$364,316 $645,892 $667,862 -------- -------- -------- --------
Gross Margin $210,335 $205,907 $366,406 $371,533 ======== ========
======== ======== Sierra Pacific Power Company Three Months Ended
Six Months Ended June 30, June 30, ------------------
---------------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating
Revenues: Electric $230,914 $236,415 $468,652 $486,693 Gas $31,948
$32,152 $112,941 $117,746 ------- ------- -------- --------
$262,862 $268,567 $581,593 $604,439 -------- -------- --------
-------- Energy Costs: Fuel for power generation $63,952 $60,705
$139,994 $118,292 Purchased Power $29,678 $97,363 $66,859 $187,469
Deferral of energy costs-electric-net $29,780 $(11,695) $41,576
$(3,188) Gas purchased for resale $19,916 $27,632 $90,188 $94,528
Deferral of energy costs-gas, net $3,988 $(3,774) $(363) $(1,571)
------ -------- ----- ------- $147,314 $170,231 $338,254 $395,530
-------- -------- -------- -------- Energy Costs by Segment:
Electric $123,410 $146,373 $248,429 $302,573 Gas 23,904 23,858
89,825 92,957 ------ ------ ------ ------ $147,314 $170,231
$338,254 $395,530 -------- -------- -------- -------- Gross Margin
by Segment: Electric $107,504 $90,042 $220,223 $184,120 Gas 8,044
8,294 23,116 24,789 ----- ----- ------ ------ $115,548 $98,336
$243,339 $208,909 ======== ======= ======== ======== DATASOURCE: NV
Energy, Inc. CONTACT: Analysts, Britta Carlson, +1-702-402-5624, or
Media, Adam Grant, +1-702-402-5222, both of NV Energy, Inc. Web
Site: http://www.nvenergy.com/
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