Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'NV Energy, Inc. | ' |
Entity Central Index Key | '0000741508 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 235,581,074 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Nevada Power Company | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'Nevada Power Company | ' |
Entity Central Index Key | '0000071180 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Sierra Pacific Power Company | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'Sierra Pacific Power Company | ' |
Entity Central Index Key | '0000090144 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
OPERATING REVENUES: | ' | ' | ' | ' | ||||
OPERATING REVENUES | $1,013,151 | $1,026,488 | $2,329,011 | $2,378,606 | ||||
Operating Expenses | ' | ' | ' | ' | ||||
Fuel for power generation | 217,954 | 171,316 | 554,181 | 400,936 | ||||
Purchased power | 205,970 | 205,686 | 498,141 | 486,894 | ||||
Gas purchased for resale | 7,383 | 5,382 | 62,277 | 46,491 | ||||
Deferred energy | -55,270 | -29,036 | -221,022 | -30,285 | ||||
Energy efficiency program costs | 16,042 | 32,584 | 38,486 | 76,609 | ||||
Regulatory Disallowances | 17,335 | 0 | 17,335 | 0 | ||||
Merger related costs | 7,857 | 0 | 21,409 | 0 | ||||
Other operating expenses | 106,068 | 100,108 | 317,538 | 307,080 | ||||
Maintenance | 17,176 | 19,014 | 66,128 | 76,190 | ||||
Depreciation and amortization | 96,801 | 94,512 | 291,687 | 281,690 | ||||
Taxes other than income | 14,214 | 15,682 | 46,536 | 44,457 | ||||
Total Operating Expenses | 651,530 | 615,248 | 1,692,696 | 1,690,062 | ||||
OPERATING INCOME | 361,621 | 411,240 | 636,315 | 688,544 | ||||
OTHER INCOME (EXPENSE): | ' | ' | ' | ' | ||||
Interest expense (net of AFUDC-debt) | -74,438 | -73,667 | -221,305 | -226,162 | ||||
Interest Income (Expense) on Regulatory Items | -281 | -2,024 | -1,124 | -6,203 | ||||
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | 2,591 | 2,415 | 7,730 | 6,666 | ||||
Other Nonoperating Income | 3,239 | 8,827 | 10,872 | 19,312 | ||||
Other expense | -3,829 | -4,209 | -12,116 | -11,909 | ||||
Total Other Income (Expense) | -72,718 | -68,658 | -215,943 | -218,296 | ||||
Income Before Income Tax Expense | 288,903 | 342,582 | 420,372 | 470,248 | ||||
Income Tax Expense (Benefit) | 101,669 | 119,412 | 148,430 | 165,466 | ||||
NET INCOME | 187,234 | 223,170 | 271,942 | 304,782 | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Change in compensation retirement benefits liability and amortization | 246 | 155 | 738 | 464 | ||||
Change in market value of risk management assets and liabilities | -11 | -193 | 485 | -668 | ||||
Unrealized net gain/(loss) on investment | 98 | 0 | 33 | 0 | ||||
OTHER COMPREHENSIVE INCOME(LOSS) | 333 | -38 | 1,256 | -204 | ||||
COMPREHENSIVE INCOME | 187,567 | 223,132 | 273,198 | 304,578 | ||||
Amount per share basic and diluted | ' | ' | ' | ' | ||||
Net income per share - basic, in dollars per share | $0.79 | $0.95 | $1.16 | $1.29 | ||||
Net income per share - diluted, in dollars per share | $0.79 | $0.94 | $1.15 | $1.28 | ||||
Weighted Average Shares of Common Stock Outstanding - basic | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||
Weighted Average Shares of Common Stock Outstanding - diluted | 237,605,514 | [1] | 238,121,732 | [1] | 237,339,039 | [1] | 237,850,530 | [1] |
Dividends Declared Per Share of Common Stock | $0.19 | $0.17 | $0.57 | $0.47 | ||||
Nevada Power Company | ' | ' | ' | ' | ||||
OPERATING REVENUES: | ' | ' | ' | ' | ||||
OPERATING REVENUES | 786,142 | 802,334 | 1,695,129 | 1,751,165 | ||||
Operating Expenses | ' | ' | ' | ' | ||||
Fuel for power generation | 163,127 | 123,992 | 412,904 | 285,799 | ||||
Purchased power | 172,582 | 171,687 | 383,386 | 388,494 | ||||
Deferred energy | -45,381 | -22,685 | -154,484 | -15,461 | ||||
Energy efficiency program costs | 13,998 | 28,492 | 32,807 | 65,466 | ||||
Regulatory Disallowances | 11,866 | 0 | 11,866 | 0 | ||||
Merger related costs | 5,620 | 0 | 14,487 | 0 | ||||
Other operating expenses | 70,844 | 65,372 | 208,336 | 200,484 | ||||
Maintenance | 11,208 | 12,533 | 45,172 | 52,594 | ||||
Depreciation and amortization | 68,849 | 66,975 | 207,915 | 201,096 | ||||
Taxes other than income | 8,213 | 9,743 | 27,804 | 26,793 | ||||
Total Operating Expenses | 480,926 | 456,109 | 1,190,193 | 1,205,265 | ||||
OPERATING INCOME | 305,216 | 346,225 | 504,936 | 545,900 | ||||
OTHER INCOME (EXPENSE): | ' | ' | ' | ' | ||||
Interest expense (net of AFUDC-debt) | -52,856 | -51,784 | -155,758 | -158,791 | ||||
Interest Income (Expense) on Regulatory Items | -194 | -1,623 | -1,177 | -5,488 | ||||
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | 1,959 | 1,833 | 6,151 | 4,823 | ||||
Other Nonoperating Income | 1,948 | 7,096 | 5,330 | 14,197 | ||||
Other expense | -1,966 | -2,823 | -6,200 | -7,162 | ||||
Total Other Income (Expense) | -51,109 | -47,301 | -151,654 | -152,421 | ||||
Income Before Income Tax Expense | 254,107 | 298,924 | 353,282 | 393,479 | ||||
Income Tax Expense (Benefit) | 89,665 | 103,754 | 124,730 | 137,328 | ||||
NET INCOME | 164,442 | 195,170 | 228,552 | 256,151 | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Change in compensation retirement benefits liability and amortization | 96 | 65 | 290 | 192 | ||||
COMPREHENSIVE INCOME | 164,538 | 195,235 | 228,842 | 256,343 | ||||
Sierra Pacific Power Company | ' | ' | ' | ' | ||||
OPERATING REVENUES: | ' | ' | ' | ' | ||||
Electric | 213,463 | 212,073 | 560,392 | 549,886 | ||||
Gas | 13,543 | 12,077 | 73,480 | 77,543 | ||||
OPERATING REVENUES | 227,006 | 224,150 | 633,872 | 627,429 | ||||
Operating Expenses | ' | ' | ' | ' | ||||
Fuel for power generation | 54,827 | 47,324 | 141,277 | 115,137 | ||||
Purchased power | 33,388 | 33,999 | 114,755 | 98,400 | ||||
Gas purchased for resale | 7,383 | 5,382 | 62,277 | 46,491 | ||||
Deferral of energy - electric-net | -7,925 | -5,498 | -44,223 | -13,854 | ||||
Deferral of energy - gas-net | -1,964 | -853 | -22,315 | -970 | ||||
Energy efficiency program costs | 2,044 | 4,092 | 5,679 | 11,143 | ||||
Regulatory Disallowances | 5,469 | 0 | 5,469 | 0 | ||||
Merger related costs | 2,008 | 0 | 5,528 | 0 | ||||
Other operating expenses | 34,394 | 34,128 | 106,455 | 104,214 | ||||
Maintenance | 5,968 | 6,481 | 20,956 | 23,596 | ||||
Depreciation and amortization | 27,952 | 27,537 | 83,772 | 80,594 | ||||
Taxes other than income | 5,944 | 5,894 | 18,414 | 17,382 | ||||
Total Operating Expenses | 169,488 | 158,486 | 498,044 | 482,133 | ||||
OPERATING INCOME | 57,518 | 65,664 | 135,828 | 145,296 | ||||
OTHER INCOME (EXPENSE): | ' | ' | ' | ' | ||||
Interest expense (net of AFUDC-debt) | -15,122 | -15,298 | -46,020 | -47,650 | ||||
Interest Income (Expense) on Regulatory Items | -87 | -401 | 53 | -715 | ||||
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | 632 | 582 | 1,579 | 1,843 | ||||
Other Nonoperating Income | 983 | 1,399 | 4,641 | 4,181 | ||||
Other expense | -982 | -998 | -3,803 | -3,609 | ||||
Total Other Income (Expense) | -14,576 | -14,716 | -43,550 | -45,950 | ||||
Income Before Income Tax Expense | 42,942 | 50,948 | 92,278 | 99,346 | ||||
Income Tax Expense (Benefit) | 13,691 | 16,521 | 30,347 | 33,596 | ||||
NET INCOME | 29,251 | 34,427 | 61,931 | 65,750 | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Change in compensation retirement benefits liability and amortization | 59 | 42 | 176 | 127 | ||||
COMPREHENSIVE INCOME | $29,310 | $34,469 | $62,107 | $65,877 | ||||
[1] | The denominator does not include stock equivalents for options issued under the non-qualified stock option plan due to conversion prices being higher than market prices for the periods ending September 30, 2012. If the conditions for conversion were met under this plan, 327,503 and 329,382 shares, would be included for the three and nine months ended September 30, 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
AFUDC-debt | $1,957 | $1,976 | $5,770 | $5,479 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | -133 | -74 | -398 | -246 |
Market value of risk management assets and liabilities | -154 | 91 | -261 | 355 |
Unrealized net gain/(loss) on investments | -49 | 0 | -18 | 0 |
Nevada Power Company | ' | ' | ' | ' |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
AFUDC-debt | 1,520 | 1,528 | 4,763 | 4,021 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | -52 | -33 | -156 | -103 |
Sierra Pacific Power Company | ' | ' | ' | ' |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
AFUDC-debt | 437 | 448 | 1,007 | 1,458 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | ($32) | ($22) | ($95) | ($68) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $373,026 | $298,271 |
Accounts receivable less allowance for uncollectible accounts | 483,178 | 373,099 |
Materials, supplies and fuel, at average cost | 121,699 | 138,337 |
Deferred energy costs current | 82,235 | 0 |
Deferred income taxes | 120,186 | 60,592 |
Other current assets | 49,041 | 40,750 |
Total Current Assets | 1,229,365 | 911,049 |
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ' | ' |
Plant in service | 12,195,312 | 12,031,053 |
Construction work-in-progress | 821,430 | 708,109 |
Total | 13,016,742 | 12,739,162 |
Less accumulated provision for depreciation | 3,526,824 | 3,313,188 |
Public Utilities, Property, Plant and Equipment, Net | 9,489,918 | 9,425,974 |
Investments and other property, net | 65,354 | 56,660 |
Other Assets, Noncurrent [Abstract] | ' | ' |
Deferred Energy Costs Non Current | 85,055 | 87,072 |
Regulatory assets | 1,048,204 | 1,132,768 |
Regulatory asset for pension plans | 270,565 | 281,195 |
Other Assets, Noncurrent | 76,705 | 89,418 |
Total Deferred Charges and Other Assets | 1,480,529 | 1,590,453 |
Assets | 12,265,166 | 11,984,136 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 129,457 | 356,283 |
Accounts Payable | 316,681 | 332,245 |
Accrued expenses | 104,781 | 127,693 |
Deferred energy | 0 | 136,865 |
Other current liabilities | 88,299 | 66,221 |
Total Current Liabilities | 639,218 | 1,019,307 |
Long-term debt | 4,791,809 | 4,669,798 |
Commitments and Contingencies | ' | ' |
Deferred Credits and Other Liabilities: | ' | ' |
Deferred income taxes | 1,680,896 | 1,470,973 |
Deferred investment tax credit | 11,623 | 13,538 |
Accrued retirement benefits | 144,696 | 162,260 |
Regulatory liabilities | 631,368 | 550,687 |
Other deferred credits and liabilities | 656,963 | 540,202 |
Total Deferred Credits and Other Liabilities | 3,125,546 | 2,737,660 |
Shareholders' Equity | ' | ' |
Common stock | 236,000 | 236,000 |
Treasury stock, at cost | -7,898 | -16,804 |
Other paid-in capital | 2,716,311 | 2,712,943 |
Retained earnings | 772,995 | 635,303 |
Accumulated other comprehensive loss | -8,815 | -10,071 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,708,593 | 3,557,371 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 12,265,166 | 11,984,136 |
Nevada Power Company | ' | ' |
Current Assets: | ' | ' |
Cash and cash equivalents | 255,236 | 201,202 |
Accounts receivable less allowance for uncollectible accounts | 367,365 | 248,501 |
Materials, supplies and fuel, at average cost | 70,929 | 77,675 |
Deferred energy costs current | 68,391 | 0 |
Deferred income taxes | 80,062 | 48,590 |
Other current assets | 35,984 | 28,763 |
Total Current Assets | 877,967 | 604,731 |
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ' | ' |
Plant in service | 8,459,208 | 8,363,566 |
Construction work-in-progress | 695,749 | 567,941 |
Total | 9,154,957 | 8,931,507 |
Less accumulated provision for depreciation | 2,203,320 | 2,035,322 |
Public Utilities, Property, Plant and Equipment, Net | 6,951,637 | 6,896,185 |
Investments and other property, net | 51,114 | 49,808 |
Other Assets, Noncurrent [Abstract] | ' | ' |
Deferred Energy Costs Non Current | 84,041 | 87,072 |
Regulatory assets | 746,286 | 804,013 |
Regulatory asset for pension plans | 131,628 | 136,682 |
Other Assets, Noncurrent | 58,097 | 62,654 |
Total Deferred Charges and Other Assets | 1,020,052 | 1,090,421 |
Assets | 8,900,770 | 8,641,145 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 129,186 | 106,048 |
Accounts Payable | 202,915 | 201,193 |
Accounts Payable, Related Parties, Current | 43,800 | 42,036 |
Accrued expenses | 63,465 | 86,433 |
Deferred energy | 0 | 86,102 |
Other current liabilities | 69,479 | 52,567 |
Total Current Liabilities | 508,845 | 574,379 |
Long-term debt | 3,103,980 | 3,230,808 |
Commitments and Contingencies | ' | ' |
Deferred Credits and Other Liabilities: | ' | ' |
Deferred income taxes | 1,257,818 | 1,101,804 |
Deferred investment tax credit | 3,857 | 4,688 |
Accrued retirement benefits | 52,429 | 49,381 |
Regulatory liabilities | 376,136 | 323,400 |
Other deferred credits and liabilities | 551,545 | 434,367 |
Total Deferred Credits and Other Liabilities | 2,241,785 | 1,913,640 |
Shareholders' Equity | ' | ' |
Common stock | 1 | 1 |
Other paid-in capital | 2,308,211 | 2,308,211 |
Retained earnings | 742,164 | 618,612 |
Accumulated other comprehensive loss | -4,216 | -4,506 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,046,160 | 2,922,318 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,900,770 | 8,641,145 |
Sierra Pacific Power Company | ' | ' |
Current Assets: | ' | ' |
Cash and cash equivalents | 84,128 | 60,786 |
Accounts receivable less allowance for uncollectible accounts | 115,765 | 124,464 |
Materials, supplies and fuel, at average cost | 50,770 | 60,662 |
Deferred energy costs current | 13,844 | 0 |
Intercompany income taxes receivable | 10,351 | 10,351 |
Deferred income taxes | 49,748 | 21,589 |
Other current assets | 12,566 | 11,633 |
Total Current Assets | 337,172 | 289,485 |
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ' | ' |
Plant in service | 3,736,104 | 3,667,487 |
Construction work-in-progress | 125,681 | 140,168 |
Total | 3,861,785 | 3,807,655 |
Less accumulated provision for depreciation | 1,323,504 | 1,277,866 |
Public Utilities, Property, Plant and Equipment, Net | 2,538,281 | 2,529,789 |
Investments and other property, net | 7,126 | 6,499 |
Other Assets, Noncurrent [Abstract] | ' | ' |
Deferred Energy Costs Non Current | 1,014 | 0 |
Regulatory assets | 301,918 | 328,755 |
Regulatory asset for pension plans | 135,257 | 140,268 |
Other Assets, Noncurrent | 13,524 | 21,477 |
Total Deferred Charges and Other Assets | 451,713 | 490,500 |
Assets | 3,334,292 | 3,316,273 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 271 | 250,235 |
Accounts Payable | 84,277 | 106,415 |
Accounts Payable, Related Parties, Current | 21,543 | 21,534 |
Accrued expenses | 29,909 | 32,936 |
Deferred energy | 0 | 50,763 |
Other current liabilities | 18,821 | 13,655 |
Total Current Liabilities | 154,821 | 475,538 |
Long-term debt | 1,177,829 | 928,990 |
Commitments and Contingencies | ' | ' |
Deferred Credits and Other Liabilities: | ' | ' |
Deferred income taxes | 525,694 | 465,508 |
Deferred investment tax credit | 7,766 | 8,850 |
Accrued retirement benefits | 75,133 | 98,676 |
Regulatory liabilities | 255,232 | 227,287 |
Other deferred credits and liabilities | 76,974 | 72,688 |
Total Deferred Credits and Other Liabilities | 940,799 | 873,009 |
Shareholders' Equity | ' | ' |
Common stock | 4 | 4 |
Other paid-in capital | 1,111,266 | 1,111,266 |
Retained earnings | -49,055 | -70,986 |
Accumulated other comprehensive loss | -1,372 | -1,548 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,060,843 | 1,038,736 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $3,334,292 | $3,316,273 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $9,643 | $8,748 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share | $1 | $1 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 235,999,750 | 235,999,750 |
Common stock, shares outstanding (in shares) | 235,581,074 | 235,079,156 |
Treasury stock (in shares) | 418,675 | 920,594 |
Nevada Power Company | ' | ' |
Current Assets: | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | 8,584 | 7,622 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share | $1 | $1 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Sierra Pacific Power Company | ' | ' |
Current Assets: | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $1,059 | $1,126 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share | $3.75 | $3.75 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | $271,942 | $304,782 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | 291,687 | 281,690 |
Deferred Income Taxes and Tax Credits | 152,280 | 187,229 |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | -7,730 | -6,666 |
Deferred energy | -218,156 | -18,702 |
Non Cash Regulatory Disallowance | 17,335 | 0 |
Amortization of other regulatory assets | 134,846 | 114,626 |
Deferred rate increase | 9,241 | 2,252 |
Other Noncash Income (Expense) | 3,649 | -50,012 |
Changes in certain assets and liabilities: | ' | ' |
Accounts receivable | -101,079 | -151,420 |
Materials, supplies and fuel | 16,909 | -18,034 |
Other current assets | -8,292 | -10,390 |
Accounts payable | 7,042 | 22,646 |
Increase (Decrease) in Pension and Postretirement Obligations | -17,563 | -12,946 |
Other current liabilities | -594 | -23,643 |
Other deferred assets | -3,634 | -3,572 |
Other regulatory assets | -3,276 | 34,420 |
Other deferred liabilities | 9,099 | -8,066 |
Net Cash from Operating Activities | 553,706 | 644,194 |
CASH FLOWS USED BY INVESTING ACTIVITIES: | ' | ' |
Additions to utility plant (excluding AFUDC-equity) | -267,798 | -387,790 |
Customer advances for construction | 921 | -1,508 |
Contributions in aid of construction | 38,714 | 63,864 |
Investments and other property - net | -5,144 | 217 |
Net Cash Provided by (Used in) Investing Activities | -233,307 | -325,217 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of long-term debt | 247,245 | 130,764 |
Retirement of long-term debt | -354,443 | -272,353 |
Sale of Common Stock | 2,133 | 0 |
Common stock repurchased | -6,329 | -4,509 |
Dividends paid | -134,250 | -110,920 |
Net Cash from/(used by) Financing Activities | -245,644 | -257,018 |
Net Increase (Decrease) in Cash and Cash Equivalents | 74,755 | 61,959 |
Beginning Balance in Cash and Cash Equivalents | 298,271 | 145,944 |
Ending Balance in Cash and Cash Equivalents | 373,026 | 207,903 |
Cash paid during period for: | ' | ' |
Interest | 233,502 | 237,262 |
Income taxes | 2 | 151 |
Noncash Investing and Financing Items [Abstract] | ' | ' |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 141,214 | 132,112 |
Issuance of treasury stock | 13,102 | 0 |
Nevada Power Company | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | 228,552 | 256,151 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | 207,915 | 201,096 |
Deferred Income Taxes and Tax Credits | 126,080 | 150,289 |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | -6,151 | -4,823 |
Deferred energy | -152,534 | -7,335 |
Non Cash Regulatory Disallowance | 11,866 | 0 |
Amortization of other regulatory assets | 75,893 | 56,012 |
Deferred rate increase | 9,241 | 2,252 |
Other Noncash Income (Expense) | -722 | -35,553 |
Changes in certain assets and liabilities: | ' | ' |
Accounts receivable | -118,863 | -164,858 |
Materials, supplies and fuel | 7,017 | -5,119 |
Other current assets | -7,222 | -3,715 |
Accounts payable | 20,856 | 53,985 |
Increase (Decrease) in Pension and Postretirement Obligations | 3,048 | 3,708 |
Other current liabilities | -5,819 | -25,246 |
Other deferred assets | -1,613 | -2,412 |
Other regulatory assets | 26 | 50,008 |
Other deferred liabilities | 1,613 | -10,412 |
Net Cash from Operating Activities | 399,183 | 514,028 |
CASH FLOWS USED BY INVESTING ACTIVITIES: | ' | ' |
Additions to utility plant (excluding AFUDC-equity) | -159,063 | -232,608 |
Customer advances for construction | 1,035 | 713 |
Contributions in aid of construction | 20,263 | 34,274 |
Investments and other property - net | 1,595 | 193 |
Net Cash Provided by (Used in) Investing Activities | -136,170 | -197,428 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of long-term debt | -261 | 132,259 |
Retirement of long-term debt | -103,718 | -271,241 |
Dividends paid | -105,000 | -119,000 |
Net Cash from/(used by) Financing Activities | -208,979 | -257,982 |
Net Increase (Decrease) in Cash and Cash Equivalents | 54,034 | 58,618 |
Beginning Balance in Cash and Cash Equivalents | 201,202 | 65,887 |
Ending Balance in Cash and Cash Equivalents | 255,236 | 124,505 |
Cash paid during period for: | ' | ' |
Interest | 174,050 | 177,459 |
Income taxes | 1 | 1 |
Noncash Investing and Financing Items [Abstract] | ' | ' |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 119,943 | 111,052 |
Sierra Pacific Power Company | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | 61,931 | 65,750 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | 83,772 | 80,594 |
Deferred Income Taxes and Tax Credits | 32,847 | 42,809 |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | -1,579 | -1,843 |
Deferred energy | -65,622 | -11,367 |
Non Cash Regulatory Disallowance | 5,469 | 0 |
Amortization of other regulatory assets | 58,769 | 58,484 |
Other Noncash Income (Expense) | 185 | -15,532 |
Changes in certain assets and liabilities: | ' | ' |
Accounts receivable | 17,700 | 13,452 |
Materials, supplies and fuel | 9,892 | -12,915 |
Other current assets | -934 | -6,512 |
Accounts payable | -16,893 | -21,002 |
Increase (Decrease) in Pension and Postretirement Obligations | -23,544 | -18,477 |
Other current liabilities | 2,141 | -3,522 |
Other deferred assets | -2,021 | -1,160 |
Other regulatory assets | -3,302 | -15,588 |
Other deferred liabilities | -1,876 | -6,282 |
Net Cash from Operating Activities | 156,935 | 146,889 |
CASH FLOWS USED BY INVESTING ACTIVITIES: | ' | ' |
Additions to utility plant (excluding AFUDC-equity) | -108,735 | -155,182 |
Customer advances for construction | -114 | -2,221 |
Contributions in aid of construction | 18,451 | 29,590 |
Investments and other property - net | 24 | 24 |
Net Cash Provided by (Used in) Investing Activities | -90,374 | -127,789 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of long-term debt | 247,506 | -1,447 |
Retirement of long-term debt | -250,725 | -1,112 |
Dividends paid | -40,000 | -20,000 |
Net Cash from/(used by) Financing Activities | -43,219 | -22,559 |
Net Increase (Decrease) in Cash and Cash Equivalents | 23,342 | -3,459 |
Beginning Balance in Cash and Cash Equivalents | 60,786 | 55,195 |
Ending Balance in Cash and Cash Equivalents | 84,128 | 51,736 |
Cash paid during period for: | ' | ' |
Interest | 45,554 | 45,772 |
Noncash Investing and Financing Items [Abstract] | ' | ' |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $21,271 | $21,060 |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Nevada Power Company | Nevada Power Company | Nevada Power Company | Nevada Power Company | Nevada Power Company | Sierra Pacific Power Company | Sierra Pacific Power Company | Sierra Pacific Power Company | Sierra Pacific Power Company | Sierra Pacific Power Company |
In Thousands, except Share data | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011 | $3,406,079 | $236,000 | $0 | $2,713,736 | $464,277 | ($7,934) | $2,848,977 | $1 | $2,308,219 | $544,874 | ($4,117) | $974,542 | $4 | $1,111,262 | ($135,340) | ($1,384) |
Balance (in shares) at Dec. 31, 2011 | ' | 235,999,750 | 0 | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Net Income | 304,782 | ' | ' | ' | 304,782 | ' | 256,151 | ' | ' | 256,151 | ' | 65,750 | ' | ' | 65,750 | ' |
Change in compensation retirement benefits liability and amortization | 464 | ' | ' | ' | ' | 464 | 192 | ' | ' | ' | 192 | 127 | ' | ' | ' | 127 |
Change in market value of risk management assets and liabilities | -668 | ' | ' | ' | ' | -668 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized net gain/(loss) on investment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | -4,509 | ' | -4,509 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased (shares) | ' | ' | -252,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Declared | -110,920 | ' | ' | ' | -110,920 | ' | -119,000 | ' | ' | -119,000 | ' | -20,000 | ' | ' | -20,000 | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2012 | 3,595,228 | 236,000 | -4,509 | 2,713,736 | 658,139 | -8,138 | 2,986,320 | 1 | 2,308,219 | 682,025 | -3,925 | 1,020,419 | 4 | 1,111,262 | -89,590 | -1,257 |
Balance (in shares) at Sep. 30, 2012 | ' | 235,999,750 | -252,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 223,170 | ' | ' | ' | ' | ' | 195,170 | ' | ' | ' | ' | 34,427 | ' | ' | ' | ' |
Change in compensation retirement benefits liability and amortization | 155 | ' | ' | ' | ' | ' | 65 | ' | ' | ' | ' | 42 | ' | ' | ' | ' |
Change in market value of risk management assets and liabilities | -193 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized net gain/(loss) on investment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2012 | 3,595,228 | 236,000 | ' | 2,713,736 | ' | ' | 2,986,320 | 1 | 2,308,219 | ' | ' | 1,020,419 | 4 | 1,111,262 | ' | ' |
Balance (in shares) at Sep. 30, 2012 | ' | 235,999,750 | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | 3,557,371 | 236,000 | -16,804 | 2,712,943 | 635,303 | -10,071 | 2,922,318 | 1 | 2,308,211 | 618,612 | -4,506 | 1,038,736 | 4 | 1,111,266 | -70,986 | -1,548 |
Balance (in shares) at Dec. 31, 2012 | 235,079,156 | 235,999,750 | -920,594 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' |
Net Income | 271,942 | ' | ' | ' | 271,942 | ' | 228,552 | ' | ' | 228,552 | ' | 61,931 | ' | ' | 61,931 | ' |
Employee Benefits | 18,603 | ' | 15,235 | 3,368 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend Reinvestment and Employee Benefits (in shares) | ' | ' | 827,097 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in compensation retirement benefits liability and amortization | 738 | ' | ' | ' | ' | 738 | 290 | ' | ' | ' | 290 | 176 | ' | ' | ' | 176 |
Change in market value of risk management assets and liabilities | 485 | ' | ' | ' | ' | 485 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized net gain/(loss) on investment | 33 | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | -6,329 | ' | -6,329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased (shares) | ' | ' | -325,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Declared | -134,250 | ' | ' | ' | -134,250 | ' | -105,000 | ' | ' | -105,000 | ' | -40,000 | ' | ' | -40,000 | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2013 | 3,708,593 | 236,000 | -7,898 | 2,716,311 | 772,995 | -8,815 | 3,046,160 | 1 | 2,308,211 | 742,164 | -4,216 | 1,060,843 | 4 | 1,111,266 | -49,055 | -1,372 |
Balance (in shares) at Sep. 30, 2013 | 235,581,074 | 235,999,750 | -418,675 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 187,234 | ' | ' | ' | ' | ' | 164,442 | ' | ' | ' | ' | 29,251 | ' | ' | ' | ' |
Change in compensation retirement benefits liability and amortization | 246 | ' | ' | ' | ' | ' | 96 | ' | ' | ' | ' | 59 | ' | ' | ' | ' |
Change in market value of risk management assets and liabilities | -11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized net gain/(loss) on investment | 98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2013 | $3,708,593 | $236,000 | ' | ' | ' | ' | $3,046,160 | $1 | $2,308,211 | ' | ' | $1,060,843 | $4 | $1,111,266 | ' | ' |
Balance (in shares) at Sep. 30, 2013 | 235,581,074 | 235,999,750 | ' | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_COM3
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | ($133) | ($74) | ($398) | ($246) |
Market value of risk management assets and liabilities | -154 | 91 | -261 | 355 |
Unrealized net gain/(loss) on investments | -49 | 0 | -18 | 0 |
Nevada Power Company | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | -52 | -33 | -156 | -103 |
Sierra Pacific Power Company | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | ($32) | ($22) | ($95) | ($68) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The significant accounting policies for both utility and non-utility operations are as follows: | |
Basis of Presentation | |
The consolidated financial statements include the accounts of NV Energy, Inc. and its wholly-owned subsidiaries, NPC, SPPC, Sierra Pacific Communications, Lands of Sierra, Inc., NVE Insurance Company, Inc. and Sierra Gas Holding Company. All intercompany balances and transactions have been eliminated in consolidation. | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities. These estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of certain revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
In the opinion of the management of NVE, NPC and SPPC, the accompanying unaudited interim consolidated financial statements contain normal and recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows for the periods shown. These consolidated financial statements do not contain the complete detail concerning accounting policies and other matters, which are included in full year financial statements; therefore, they should be read in conjunction with the audited financial statements included in the 2012 Form 10-K. | |
The results of operations and cash flows of NVE, NPC and SPPC for the nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year. | |
Accounting Policies | |
Consolidations of VIEs | |
To identify potential variable interests, management reviewed contracts under leases, long-term purchase power contracts, tolling contracts and jointly owned facilities. The Utilities identified certain long-term purchase power contracts that could be defined as variable interests. However, the Utilities are not the primary beneficiary as they primarily lacked the power to direct the activities of the entity, including the ability to operate the generating facilities and make management decisions. The Utilities' maximum exposure to loss is limited to the cost of replacing these purchase power contracts if the providers are unable to deliver power. However, the Utilities believe their exposure is mitigated as they would likely recover these costs through their deferred energy accounting mechanism. As of September 30, 2013, the carrying amount of assets and liabilities in the Utilities’ balance sheets that relate to their involvement with VIEs are predominately related to working capital accounts and generally represent the amounts owed by the Utilities for the deliveries associated with the current billing cycle under the contracts. | |
Recent Accounting Standards Update | |
Derivatives and Hedging (ASC 815) | |
In July 2013, the FASB amended its existing guidance related to hedge accounting. The amendment permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S benchmark interest rate for hedge accounting purposes under ASC 815, in addition, to the current approved U.S. rates which include interest rates on direct Treasury obligations of the U.S. government (UST) and LIBOR. The amendment is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have an impact on the presentation of the consolidated financial statements or disclosure requirements for NVE and the Utilities. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB amended its existing guidance related to the presentation of an unrecognized tax benefit on the financial statements. ASC 740, Income Taxes, does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. As a result, there is diversity in practice in the presentation of unrecognized tax benefits. The objective of the amendment is to eliminate the diversity in practice, requiring the unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a NOL carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions. The amendment can be applied prospectively or retrospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities. NVE and the Utilities have elected to early adopt this amendment prospectively as of September 30, 2013, presenting their unrecognized tax benefit as a reduction to their NOL deferred tax asset. The adoption of this guidance did not have a material impact on the presentation of the financial statements for NVE and the Utilities. | |
Federal Income Tax Regulations | |
In September 2013, the Internal Revenue Service and the U.S. Treasury Department released final tax regulations on the deduction and capitalization of expenditures related to tangible property. These regulations apply to tax years beginning on or after January 1, 2014. NVE and the Utilities continue to evaluate the effects of the tangible property regulations as well as the generation guidance in Revenue Procedure 2013-24, but do not believe that these tax regulations will have a material impact on the presentation of the financial statements for NVE and the Utilities. | |
Other Comprehensive Income (ASC 220) | |
In December 2011, the FASB deferred the effective date of a portion of the June 2011 amendment related to the presentation of reclassification adjustments out of accumulated other comprehensive income. In February 2013, the FASB reinstated certain portions of the deferred amendment. The reinstated amendment is applied prospectively and is effective for NVE and the Utilities as of January 1, 2013. The adoption of this guidance did not have an impact on the presentation of the financial statements for NVE and the Utilities. | |
Balance Sheet Offsetting Disclosures (ASC 210) | |
In November 2011, the FASB amended the Balance Sheet Topic as reflected in the FASB Accounting Standards Codification to enhance current disclosures regarding offsetting (netting) of assets and liabilities on the face of the financial statements. The amendment requires an entity to disclose information about offsetting and related arrangements to enable users of the financial statements to understand the effect of those arrangements on its financial position. The scope of this amendment includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The amendment is applied retrospectively to all periods presented and is effective for NVE and the Utilities as of January 1, 2013. The adoption of this guidance did not have an impact on the disclosure requirements for NVE and the Utilities. |
MERGER_RELATED_ACTIVITIES
MERGER RELATED ACTIVITIES | 9 Months Ended | |
Sep. 30, 2013 | ||
Business Combinations [Abstract] | ' | |
MERGER RELATED ACTIVITIES | ' | |
MERGER-RELATED ACTIVITIES | ||
MidAmerican Merger | ||
On May 29, 2013, NVE entered into the MidAmerican Merger Agreement. The MidAmerican Merger Agreement provides for the merger of Silver Merger Sub, Inc. with and into NVE, with NVE continuing as the surviving corporation. Once merged, NVE will become an indirect wholly owned subsidiary of MEHC. The closing is expected to occur in late 2013 or the first quarter of 2014. | ||
Pursuant to the MidAmerican Merger Agreement, at the effective time of the MidAmerican Merger, each share of common stock of NVE issued and outstanding immediately prior to the closing will be converted into the right to receive cash in the amount of $23.75 per share, without interest and subject to applicable withholding taxes. | ||
The MidAmerican Merger Agreement has been approved by the BOD of both NVE and MEHC, but the consummation of the MidAmerican Merger is subject to the satisfaction or waiver of specified closing conditions, including: | ||
• | the approval of the MidAmerican Merger Agreement by the holders of a majority of the outstanding shares of NVE common stock. On September 25, 2013, NVE’s stockholders approved the MidAmerican Merger Agreement. Consequently, this closing condition has been satisfied; | |
• | the receipt of regulatory approvals and other consents required to consummate the MidAmerican Merger, including, among others, approvals from the PUCN and the FERC on terms and conditions specified in the MidAmerican Merger Agreement (in July 2013, filings were made with the PUCN and FERC. See Note 4, Regulatory Actions, for further details of these filings); | |
• | the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. On July 22, 2013, NVE was advised that the Department of Justice and the U.S. Federal Trade Commission had terminated the applicable waiting period under the Hart-Scott-Rodino Act. Consequently, the closing condition with respect to the Hart-Scott-Rodino Act has been satisfied; | |
• | the absence of the occurrence of a company material adverse effect (as defined in the MidAmerican Merger Agreement) after the date of the MidAmerican Merger Agreement; and | |
• | other customary closing conditions. | |
The MidAmerican Merger Agreement contains customary representations, warranties and covenants for both NVE and MEHC. These covenants include an obligation for us, subject to certain exceptions, to conduct our business in a manner substantially consistent with our current practice. In addition, the covenants contain several restrictions that apply unless MEHC’s consent is received, including limitations on making certain business acquisitions, limitations on our total capital spending, limitations on the extent to which we may obtain financing through long-term debt or equity issuances and limitations on increasing our common stock dividend payout. | ||
The MidAmerican Merger Agreement contains certain termination rights and fees for both NVE and MEHC. In the event of termination of the MidAmerican Merger under certain circumstances, NVE may be obligated to pay MEHC a termination fee of up to $169.7 million. | ||
During the three and nine month periods ending September 30, 2013, NVE incurred $7.9 million (pre-tax) and $21.4 million (pre-tax) of merger-related fees and stock compensation costs related to the MidAmerican Merger which have been expensed and presented on the Statement of Comprehensive Income as Merger-Related Costs. Stock compensation costs increased primarily due to the increase in the average price per share of NVE common stock used to value the liability for stock compensation, upon announcement of the MidAmerican Merger. NVE expects to incur additional merger fees relating to the MidAmerican Merger upon consummation of the MidAmerican Merger. | ||
As a result of the pending MidAmerican Merger, NVE, its directors, Silver Merger Sub, Inc. and, in some cases, MEHC, have been named as defendants in certain lawsuits brought by alleged NVE shareholders seeking, among other things, to enjoin the proposed MidAmerican Merger; see Note 8, Commitments and Contingencies for further details. In addition, NVE has ceased the repurchase of any common stock for NVE stock compensation plans; see Note 10, Common Stock and Other Paid-In Capital. | ||
The MidAmerican Merger will accelerate the vesting and settlement of equity compensation awards to executives and employees which will be cashed out upon consummation of the MidAmerican Merger. Certain executives are also entitled to additional change of control payments in the event of an occurrence of a qualified termination. The consummation of the MidAmerican Merger will also trigger mandatory redemption requirements under financing agreements of NVE and the Utilities. As a result, NVE, NPC and SPPC will be required to offer to purchase approximately $315.0 million, $3.1 billion, and $951.7 million, respectively, of debt at 101% of par within 10 days after the MidAmerican Merger closing. At this time, NVE and the Utilities are unable to determine the extent to which holders of these debt securities will accept such tender offers. The average interest rate under these debt securities is approximately 6.25%, 6.42% and 5.51% for NVE, NPC and SPPC, respectively. To the extent that debt securities are tendered pursuant to the required tender offers, NVE and the Utilities intend to fund the purchases using a combination of internal funds, the Utilities’ revolving credit facilities or the issuance of long-term debt. Furthermore, NVE and the Utilities were required to obtain consents from lenders under the terms of the Utilities’ revolving credit facilities and NVE’s Term Loan before consummating the MidAmerican Merger. In November 2013, NVE amended its Term Loan and NPC and SPPC amended their revolving credit facilities, in each case to permit the MidAmerican Merger. | ||
One Company Merger between NPC and SPPC | ||
As detailed further in Note 4, Regulatory Actions, NPC and SPPC filed a joint application with the PUCN to merge SPPC into NPC (“One Company Merger”) and to call the surviving entity NVEOC. The One Company Merger is subject to approval by the PUCN and FERC. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||||||
The Utilities operate three regulated business segments, NPC electric, SPPC electric and SPPC natural gas service, which are reported in accordance with Segment Reporting of the FASC. Electric service is provided to Las Vegas and surrounding Clark County by NPC, and to northern Nevada by SPPC. Natural gas services are provided by SPPC in the Reno-Sparks area of Nevada. Other information includes amounts below the quantitative thresholds for separate disclosure. | |||||||||||||||||||||||||
Operational information of the different business segments is set forth below based on the nature of products and services offered. NVE evaluates performance based on several factors, of which the primary financial measure is business segment gross margin. Gross margin, which the Utilities calculate as operating revenues less energy costs, energy efficiency program costs and regulatory disallowances provides a measure of income available to support the other operating expenses of the Utilities. See Note 1, Summary of Significant Accounting Policies, of the Notes to Financial Statements in the 2012 Form 10-K for further information regarding energy efficiency program costs. | |||||||||||||||||||||||||
Operating expenses are provided by segment in order to reconcile to operating income as reported in the consolidated financial statements (dollars in thousands): | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 1,013,151 | $ | 3 | $ | 786,142 | $ | 227,006 | $ | 213,463 | $ | 13,543 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 217,954 | — | 163,127 | 54,827 | 54,827 | — | |||||||||||||||||||
Purchased power | 205,970 | — | 172,582 | 33,388 | 33,388 | — | |||||||||||||||||||
Gas purchased for resale | 7,383 | — | — | 7,383 | — | 7,383 | |||||||||||||||||||
Deferred energy | (55,270 | ) | — | (45,381 | ) | (9,889 | ) | (7,925 | ) | (1,964 | ) | ||||||||||||||
Energy efficiency program costs | 16,042 | — | 13,998 | 2,044 | 2,044 | — | |||||||||||||||||||
Regulatory disallowance | 17,335 | — | 11,866 | 5,469 | 5,469 | — | |||||||||||||||||||
Total Costs | $ | 409,414 | $ | — | $ | 316,192 | $ | 93,222 | $ | 87,803 | $ | 5,419 | |||||||||||||
Gross Margin | $ | 603,737 | $ | 3 | $ | 469,950 | $ | 133,784 | $ | 125,660 | $ | 8,124 | |||||||||||||
Merger-related costs | 7,857 | 229 | 5,620 | 2,008 | |||||||||||||||||||||
Other operating expenses | 106,068 | 830 | 70,844 | 34,394 | |||||||||||||||||||||
Maintenance | 17,176 | — | 11,208 | 5,968 | |||||||||||||||||||||
Depreciation and amortization | 96,801 | — | 68,849 | 27,952 | |||||||||||||||||||||
Taxes other than income | 14,214 | 57 | 8,213 | 5,944 | |||||||||||||||||||||
Operating Income (Loss) | $ | 361,621 | $ | (1,113 | ) | $ | 305,216 | $ | 57,518 | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 2,329,011 | $ | 10 | $ | 1,695,129 | $ | 633,872 | $ | 560,392 | $ | 73,480 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 554,181 | — | 412,904 | 141,277 | 141,277 | — | |||||||||||||||||||
Purchased power | 498,141 | — | 383,386 | 114,755 | 114,755 | — | |||||||||||||||||||
Gas purchased for resale | 62,277 | — | — | 62,277 | — | 62,277 | |||||||||||||||||||
Deferred energy | (221,022 | ) | — | (154,484 | ) | (66,538 | ) | (44,223 | ) | (22,315 | ) | ||||||||||||||
Energy efficiency program costs | 38,486 | — | 32,807 | 5,679 | 5,679 | — | |||||||||||||||||||
Regulatory disallowance | 17,335 | — | 11,866 | 5,469 | 5,469 | — | |||||||||||||||||||
Total Costs | $ | 949,398 | $ | — | $ | 686,479 | $ | 262,919 | $ | 222,957 | $ | 39,962 | |||||||||||||
Gross Margin | $ | 1,379,613 | $ | 10 | $ | 1,008,650 | $ | 370,953 | $ | 337,435 | $ | 33,518 | |||||||||||||
Merger-related costs | 21,409 | 1,394 | 14,487 | 5,528 | |||||||||||||||||||||
Other operating expenses | 317,538 | 2,747 | 208,336 | 106,455 | |||||||||||||||||||||
Maintenance | 66,128 | — | 45,172 | 20,956 | |||||||||||||||||||||
Depreciation and amortization | 291,687 | — | 207,915 | 83,772 | |||||||||||||||||||||
Taxes other than income | 46,536 | 318 | 27,804 | 18,414 | |||||||||||||||||||||
Operating Income (Loss) | $ | 636,315 | $ | (4,449 | ) | $ | 504,936 | $ | 135,828 | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 1,026,488 | $ | 4 | $ | 802,334 | $ | 224,150 | $ | 212,073 | $ | 12,077 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 171,316 | — | 123,992 | 47,324 | 47,324 | — | |||||||||||||||||||
Purchased power | 205,686 | — | 171,687 | 33,999 | 33,999 | — | |||||||||||||||||||
Gas purchased for resale | 5,382 | — | — | 5,382 | — | 5,382 | |||||||||||||||||||
Deferred energy | (29,036 | ) | — | (22,685 | ) | (6,351 | ) | (5,498 | ) | (853 | ) | ||||||||||||||
Energy efficiency program costs | 32,584 | — | 28,492 | 4,092 | 4,092 | — | |||||||||||||||||||
Total Costs | $ | 385,932 | $ | — | $ | 301,486 | $ | 84,446 | $ | 79,917 | $ | 4,529 | |||||||||||||
Gross Margin | $ | 640,556 | $ | 4 | $ | 500,848 | $ | 139,704 | $ | 132,156 | $ | 7,548 | |||||||||||||
Other operating expenses | 100,108 | 608 | 65,372 | 34,128 | |||||||||||||||||||||
Maintenance | 19,014 | — | 12,533 | 6,481 | |||||||||||||||||||||
Depreciation and amortization | 94,512 | — | 66,975 | 27,537 | |||||||||||||||||||||
Taxes other than income | 15,682 | 45 | 9,743 | 5,894 | |||||||||||||||||||||
Operating Income (Loss) | $ | 411,240 | $ | (649 | ) | $ | 346,225 | $ | 65,664 | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 2,378,606 | $ | 12 | $ | 1,751,165 | $ | 627,429 | $ | 549,886 | $ | 77,543 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 400,936 | — | 285,799 | 115,137 | 115,137 | — | |||||||||||||||||||
Purchased power | 486,894 | — | 388,494 | 98,400 | 98,400 | — | |||||||||||||||||||
Gas purchased for resale | 46,491 | — | — | 46,491 | — | 46,491 | |||||||||||||||||||
Deferred Energy | (30,285 | ) | — | (15,461 | ) | (14,824 | ) | (13,854 | ) | (970 | ) | ||||||||||||||
Energy efficiency program costs | 76,609 | — | 65,466 | 11,143 | 11,143 | — | |||||||||||||||||||
Total Costs | $ | 980,645 | $ | — | $ | 724,298 | $ | 256,347 | $ | 210,826 | $ | 45,521 | |||||||||||||
Gross Margin | $ | 1,397,961 | $ | 12 | $ | 1,026,867 | $ | 371,082 | $ | 339,060 | $ | 32,022 | |||||||||||||
Other operating expenses | 307,080 | 2,382 | 200,484 | 104,214 | |||||||||||||||||||||
Maintenance | 76,190 | — | 52,594 | 23,596 | |||||||||||||||||||||
Depreciation and amortization | 281,690 | — | 201,096 | 80,594 | |||||||||||||||||||||
Taxes other than income | 44,457 | 282 | 26,793 | 17,382 | |||||||||||||||||||||
Operating Income (Loss) | $ | 688,544 | $ | (2,652 | ) | $ | 545,900 | $ | 145,296 | ||||||||||||||||
REGULATORY_ACTIONS
REGULATORY ACTIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
REGULATORY ACTIONS [Abstract] | ' | |||||||||||||||
REGULATORY ACTIONS | ' | |||||||||||||||
REGULATORY ACTIONS | ||||||||||||||||
NPC and SPPC follow deferred energy accounting. See Note 3, Regulatory Actions, of the Notes to Financial Statements in the 2012 Form 10-K for additional information regarding deferred energy accounting by the Utilities. | ||||||||||||||||
The following deferred energy amounts were included in the consolidated balance sheets as of September 30, 2013 (dollars in thousands): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
NVE Total | NPC Electric | SPPC Electric | SPPC Gas | |||||||||||||
Deferred Energy | ||||||||||||||||
Cumulative Deferred Balance authorized in 2013 DEAA | $ | (152,990 | ) | $ | (102,227 | ) | $ | (32,693 | ) | $ | (18,070 | ) | ||||
2013 Amortization | 111,977 | 69,288 | 23,695 | 18,994 | ||||||||||||
2013 Deferred Energy Under Collections (1) | 118,397 | 95,465 | 19,697 | 3,235 | ||||||||||||
Deferred Energy Balance at September 30, 2013 - Subtotal | $ | 77,384 | $ | 62,526 | $ | 10,699 | $ | 4,159 | ||||||||
Reinstatement of deferred energy (effective 6/07, 10 years) | 89,906 | 89,906 | — | — | ||||||||||||
Total Deferred Energy | $ | 167,290 | $ | 152,432 | $ | 10,699 | $ | 4,159 | ||||||||
Current Assets | ||||||||||||||||
Deferred energy | $ | 82,235 | $ | 68,391 | $ | 10,322 | $ | 3,522 | ||||||||
Non-current Assets | ||||||||||||||||
Deferred energy | 85,055 | 84,041 | 377 | 637 | ||||||||||||
Total Net Deferred Energy | $ | 167,290 | $ | 152,432 | $ | 10,699 | $ | 4,159 | ||||||||
(1) | These deferred energy under collections are subject to quarterly rate resets as discussed in Note 1, Summary of Significant Accounting Policies, Deferred Energy Accounting, of the Notes to the Financial Statements in the 2012 Form 10-K. | |||||||||||||||
Pending Regulatory Actions | ||||||||||||||||
Nevada Power Company and Sierra Pacific Power Company | ||||||||||||||||
Joint Application for the merger between NVE and MEHC (MidAmerican Merger) | ||||||||||||||||
In July 2013, NVE and MEHC filed a joint application with the PUCN seeking the authorization of the MidAmerican Merger. Under Nevada law, the PUCN may not authorize the MidAmerican Merger unless it finds, among other things, that the transaction is “in the public interest”. If the PUCN does not issue a final order regarding the MidAmerican Merger within 180 days of the application filing date, the transaction will be deemed to be authorized. Based on the date of filing, the expected authorization date for the joint application between NVE and MEHC is January 2014. Hearings are scheduled for November 2013. | ||||||||||||||||
Joint Application of NPC and SPPC (One Company Merger Filing) | ||||||||||||||||
In May 2013, NPC and SPPC filed a joint application with the PUCN to consolidate the Utilities into a single jurisdictional utility. The joint application with the PUCN requested the following: | ||||||||||||||||
• | Authority to modify the legal and regulatory structures of NPC and SPPC by merging SPPC into NPC, effectively transferring all of SPPC’s assets and obligations to NPC, and renaming the surviving utility NVEOC; | |||||||||||||||
• | Authority to transfer SPPC’s certificates of public convenience and necessity (CPCN) to NPC, and to modify the transferred CPCNs and NPC’s CPCN to reflect the name of the surviving utility, NVEOC; and | |||||||||||||||
• | Authority to transfer all SPPC’s electric and gas utility assets, including electric generation assets, to NPC. | |||||||||||||||
The PUCN may not authorize the One Company Merger unless it finds, among other things, that the proposed transaction is “in the public interest.” The PUCN is not bound by any statutory deadlines with respect to this application. Hearings were expected to begin in February 2014, but the Utilities are seeking to delay the proceedings to the second half of 2014. | ||||||||||||||||
Financing Application | ||||||||||||||||
Concurrent with the One Company Merger filing, NPC and SPPC filed a joint financing application with the PUCN. The application requested the PUCN to restate and review the Utilities’ existing unused authority and to assign and consolidate the unused authority under NVEOC. In addition, the application requests new authority of $705.0 million. The consolidated authority would give NVEOC authority to issue new debt of $1.1 billion and authority to refinance or redeem debt of $1.5 billion. The application does not seek a change to NPC’s and SPPC’s existing revolving credit facility authority of $1.3 billion and $600 million, respectively. The Utilities have requested that the financing application be consolidated with the One Company Merger filing. However, as the One Company Merger will not be approved prior to the December 31, 2013 expiration of NPC’s current financing authority, NPC requested that its current authority be extended, as well as additional authority to refinance debt of $255 million. In September 2013, the PUCN accepted a stipulation extending NPC’s existing financing authority until an order is issued in the One Company Merger filing. | ||||||||||||||||
Nevada Power Company | ||||||||||||||||
NPC 2013 DEAA, REPR, TRED, EEIR and EEPR Rate Filings | ||||||||||||||||
In March 2013, NPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ended December 31, 2012, and to reset the REPR, TRED, EEIR and EEPR rate elements. In September 2013, the PUCN issued an order disallowing approximately $1.1 million (pre-tax) in deferred energy costs, which NPC expensed as a regulatory disallowance for the three and nine month periods ended September 30, 2013 and correspondingly adjusted the deferred energy balance as reflected in the table above. In addition, the PUCN indicated in their order that EEIR revenue should not contribute to the Utilities earning more than their authorized ROR. As NPC earned in excess of its authorized ROR in 2012, the PUCN disallowed approximately $10.8 million in pre-tax EEIR revenues (including carrying charges) which was expensed as a regulatory disallowance for the three and nine month periods ended September 30, 2013. Furthermore, as a result of this order and NPC’s estimated 2013 ROR calculated to be in excess of its authorized ROR, NPC has recorded a provision for refund of $11.2 million pre-tax against operating revenues, representing all EEIR revenues recorded during the nine months ended September 30, 2013. The September PUCN order includes the following changes in revenue requirement (dollars in millions): | ||||||||||||||||
Effective | Authorized | Present | $ Change in | |||||||||||||
Date | Revenue | Revenue | Revenue | |||||||||||||
Requirement | Requirement | Requirement | ||||||||||||||
Revenue Requirement Subject To Change: | ||||||||||||||||
REPR (1) | Oct. 2013 | $ | 28.4 | $ | 38.7 | $ | (10.3 | ) | ||||||||
TRED (1) | Oct. 2013 | 15.7 | 15.9 | (0.2 | ) | |||||||||||
EEPR Base (1) | Oct. 2013 | 45.9 | 32.6 | 13.3 | ||||||||||||
EEPR Amortization (1) | Oct. 2013 | (29.9 | ) | 9 | (38.9 | ) | ||||||||||
EEIR Base (2) | Oct. 2013 | 15.1 | 10.6 | 4.5 | ||||||||||||
EEIR Amortization (3) | Oct. 2013 | (17.2 | ) | 10.7 | (27.9 | ) | ||||||||||
Total Revenue Requirement | $ | 58 | $ | 117.5 | $ | (59.5 | ) | |||||||||
(1) | Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected. As a result, such programs have no effect on Operating or Net Income. | |||||||||||||||
(2) | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if NPC earns in excess of its authorized ROR. In future periods, NPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. | |||||||||||||||
(3) | Amounts related to the EEIR revenue disallowance, discussed above, are required to be refunded back to ratepayers through negative EEIR amortization; however, while these amounts will affect cash flow, they will not have a future impact on revenues, as the disallowance was recognized as of September 30, 2013. | |||||||||||||||
Sierra Pacific Power Company | ||||||||||||||||
SPPC Electric General Rate Case | ||||||||||||||||
In June 2013, SPPC filed its statutorily required GRC for its Nevada electric operations and updated the filing in August 2013. In the updated filing, SPPC is requesting the following: | ||||||||||||||||
• | Decrease in general rates by $4.7 million, approximately a 0.7% decrease; and | |||||||||||||||
• | ROE and ROR of 10.4% and 7.74%, respectively. | |||||||||||||||
Hearings are scheduled for October 2013 and, if approved, the new rates would be effective January 1, 2014. | ||||||||||||||||
SPPC Gas General Rate Case | ||||||||||||||||
In June 2013, SPPC filed a GRC for its gas operations and updated the filing in August 2013. In the updated filing, SPPC is requesting the following: | ||||||||||||||||
• | Increase in general rates by $6.0 million, approximately a 6.1% increase; and | |||||||||||||||
• | ROE and ROR of 10.35% and 7.72%, respectively. | |||||||||||||||
Hearings are scheduled for October 2013 and, if approved, the new rates would be effective January 1, 2014. | ||||||||||||||||
SPPC 2013 Electric DEAA, REPR, TRED, EEIR and EEPR Rate Filings | ||||||||||||||||
In March 2013, SPPC filed an application for the PUCN to review fuel and purchased power transactions for the 12-month period ended December 31, 2012, and to reset the REPR, TRED, EEPR and EEIR rate elements. In September 2013, the PUCN issued an order disallowing approximately $0.1 million (pre-tax) in deferred energy costs, which SPPC expensed as a regulatory disallowance for the three and nine month periods ended September 30, 2013 and correspondingly adjusted the deferred energy balance as reflected in the table above. In addition, with respect to the EEIR disallowance discussed above under NPC, the PUCN disallowed $5.5 million (pre-tax) of SPPC's 2012 EEIR revenues, (including carrying charges) as a result of earning in excess of its authorized ROR. As a result $5.5 million was expensed as a regulatory disallowance for the three and nine months ended September 30, 2013. Also, similar to NPC, SPPC’s estimated 2013 ROR is calculated to be in excess of its authorized ROR, as such, SPPC has recorded a provision for refund of $4.0 million pre-tax against operating revenues, representing all EEIR revenues recorded during the nine months ended September 30, 2013. The September PUCN order includes the following changes in revenue requirement (dollars in millions): | ||||||||||||||||
Effective | Authorized | Present | $ Change in | |||||||||||||
Date | Revenue | Revenue | Revenue | |||||||||||||
Requirement | Requirement | Requirement | ||||||||||||||
Revenue Requirement Subject To Change: | ||||||||||||||||
REPR (1) | Oct. 2013 | $ | 42.3 | $ | 44.4 | $ | (2.1 | ) | ||||||||
TRED (1) | Oct. 2013 | 7.4 | 6.3 | 1.1 | ||||||||||||
EEPR Base (1) | Oct. 2013 | 6 | 5.6 | 0.4 | ||||||||||||
EEPR Amortization (1) | Oct. 2013 | (2.1 | ) | 1.8 | (3.9 | ) | ||||||||||
EEIR Base (2) | Oct. 2013 | 5.5 | 4.7 | 0.8 | ||||||||||||
EEIR Amortization (3) | Oct. 2013 | (3.7 | ) | 1.9 | (5.6 | ) | ||||||||||
Total Revenue Requirement | $ | 55.4 | $ | 64.7 | $ | (9.3 | ) | |||||||||
-1 | Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected. As a result, such programs have no effect on Operating or Net Income. | |||||||||||||||
-2 | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if SPPC earns in excess of its authorized ROR. In future periods, SPPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. | |||||||||||||||
-3 | Amounts related to the EEIR revenue disallowance, discussed above, are required to be refunded back to ratepayers through negative EEIR amortization; however, while these amounts will affect cash flow, they will not have a future impact on revenues, as the disallowance was recognized as of September 30, 2013. | |||||||||||||||
SPPC 2013 Nevada Gas DEAA and REPR Rate Filings | ||||||||||||||||
In March 2013, SPPC filed an application for the PUCN to review the physical gas, transportation and financial gas transactions that were recorded during the 12-month period ended December 31, 2012 and to reset the REPR. DEAA amounts subject to prudency review for cumulative balances as of December 31, 2012 are included in the deferred energy table above. In September 2013, the PUCN issued an order resulting in an overall decrease in revenue requirement of $0.2 million. | ||||||||||||||||
FERC Matters | ||||||||||||||||
NPC | ||||||||||||||||
NPC 2012 FERC Transmission Rate Case | ||||||||||||||||
In October 2012, NPC filed an application with the FERC to reset transmission and ancillary service rates that were last set in 2003. In December 2012, FERC issued an order which suspended the proposed rate increases until June 1, 2013. Furthermore, as requested in the filing, the FERC accepted two proposed rate decreases effective January 1, 2013. All rates are currently subject to refund and final approval by the FERC. However, at this time management is unable to determine the final revenue impact of the case. | ||||||||||||||||
SPPC | ||||||||||||||||
SPPC 2012 FERC Transmission Rate Case | ||||||||||||||||
In October 2012, SPPC filed an application with the FERC to reset transmission and ancillary service rates that were last set in 2007 and 2003, respectively. In December 2012, FERC issued an order which suspended certain rate increases until June 1, 2013. Furthermore, as requested in the filing, the FERC accepted two proposed rate decreases effective January 1, 2013. On June 17, 2013, SPPC filed an unopposed settlement agreement resolving all issues with the FERC, for approval for rates effective June 1, 2013. FERC approved the settlement on August 29, 2013. The rate changes under the terms of the settlement agreement are expected to result in an overall annual revenue increase of $1.5 million. | ||||||||||||||||
NVE, NPC and SPPC | ||||||||||||||||
2013 FERC Transmission Rate Case | ||||||||||||||||
In May 2013, NPC and SPPC filed an application with the FERC to reset transmission and ancillary service rates effective on the later of January 1, 2014, or the ON Line in-service date. The rate changes reflect the addition of the ON Line in the transmission revenue requirement. Various intervenors filed protests and NPC and SPPC filed a response to those protests on July 16, 2013. On August 5, 2013, FERC issued an order which suspended the rate changes until January 1, 2014 or the in-service date for ON Line, subject to refund. On August 12, 2013 the FERC designated a Settlement Judge and the matter is now in settlement proceedings. At this time, management is unable to determine the final revenue impact of the case. | ||||||||||||||||
FERC One Company Merger Request | ||||||||||||||||
In May 2013, NVE, NPC and SPPC filed an application with the FERC under Section 203 of the Federal Power Act for Approval of Internal Reorganization. In their request, NPC and SPPC requested FERC authorization for an internal corporate reorganization under which SPPC will merge into NPC and the surviving entity will be renamed NVEOC. On October 21, 2013, NVE, NPC and SPPC submitted an informational filing with FERC indicating that given the status of an application pending before the PUCN, the applicants did not object to FERC deferring its consideration of the application. The application remains pending before FERC for consideration. | ||||||||||||||||
FERC MidAmerican Merger Request | ||||||||||||||||
On July 12, 2013, an application was filed with the FERC under Section 203 of the Federal Power Act, to approve the MidAmerican Merger. The MidAmerican Merger is discussed in more detail in Note 2, Merger-Related Activities. Under Section 203 of the Federal Power Act, the FERC may not authorize the MidAmerican Merger unless it finds, among other things, that the transaction is “consistent with the public interest”. If the FERC does not grant or deny the application within 180 days after the application was filed, the application is deemed granted unless the FERC finds that further consideration, for a period not to exceed an additional 180 days, is required to determine whether the transaction meets the specified standards. The application requests authorization of the proposed transaction by December 19, 2013; however, NVE is unable to determine the timing of a decision in the filing. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | |||||||||||||||||||||||||||||||||||||
NVE’s, NPC’s and SPPC’s long-term debt consists of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Long-Term Debt: | Stated Rate | Maturity Date | Consolidated | NVE Holding Co. | NPC | SPPC | Consolidated | NVE Holding Co. | NPC | SPPC | |||||||||||||||||||||||||||
Secured Debt | |||||||||||||||||||||||||||||||||||||
General and Refunding Mortgage Securities | |||||||||||||||||||||||||||||||||||||
NPC Series L | 5.875 | % | 2015 | $ | 250,000 | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | — | ||||||||||||||||||
NPC Series M | 5.95 | % | 2016 | 210,000 | — | 210,000 | — | 210,000 | — | 210,000 | — | ||||||||||||||||||||||||||
NPC Series N | 6.65 | % | 2036 | 370,000 | — | 370,000 | — | 370,000 | — | 370,000 | — | ||||||||||||||||||||||||||
NPC Series O | 6.5 | % | 2018 | 325,000 | — | 325,000 | — | 325,000 | — | 325,000 | — | ||||||||||||||||||||||||||
NPC Series R | 6.75 | % | 2037 | 350,000 | — | 350,000 | — | 350,000 | — | 350,000 | — | ||||||||||||||||||||||||||
NPC Series S | 6.5 | % | 2018 | 500,000 | — | 500,000 | — | 500,000 | — | 500,000 | — | ||||||||||||||||||||||||||
NPC Series U | 7.375 | % | 2014 | 125,000 | — | 125,000 | — | 125,000 | — | 125,000 | — | ||||||||||||||||||||||||||
NPC Series V | 7.125 | % | 2019 | 500,000 | — | 500,000 | — | 500,000 | — | 500,000 | — | ||||||||||||||||||||||||||
NPC Series X | 5.375 | % | 2040 | 250,000 | — | 250,000 | — | 250,000 | — | 250,000 | — | ||||||||||||||||||||||||||
NPC Series Y | 5.45 | % | 2041 | 250,000 | — | 250,000 | — | 250,000 | — | 250,000 | — | ||||||||||||||||||||||||||
SPPC Series M | 6 | % | 2016 | 450,000 | — | — | 450,000 | 450,000 | — | — | 450,000 | ||||||||||||||||||||||||||
SPPC Series P | 6.75 | % | 2037 | 251,742 | — | — | 251,742 | 251,742 | — | — | 251,742 | ||||||||||||||||||||||||||
SPPC Series Q | 5.45 | % | 2013 | — | — | — | — | 250,000 | — | — | 250,000 | ||||||||||||||||||||||||||
SPPC Series T | 3.375 | % | 2023 | 250,000 | — | — | 250,000 | — | — | — | — | ||||||||||||||||||||||||||
Variable Rate Debt (Secured by General and Refunding Mortgage Securities) | |||||||||||||||||||||||||||||||||||||
NPC IDRB Series 2000A | 2020 | — | — | — | — | 98,100 | — | 98,100 | — | ||||||||||||||||||||||||||||
NPC PCRB Series 2006 | 2036 | 37,700 | — | 37,700 | — | 37,700 | — | 37,700 | — | ||||||||||||||||||||||||||||
NPC PCRB Series 2006A | 2032 | 37,975 | — | 37,975 | — | 37,975 | — | 37,975 | — | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006A | 2031 | 58,200 | — | — | 58,200 | 58,200 | — | — | 58,200 | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006B | 2036 | 75,000 | — | — | 75,000 | 75,000 | — | — | 75,000 | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006C | 2036 | 81,475 | — | — | 81,475 | 81,475 | — | — | 81,475 | ||||||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||||||||||||||
NVE Senior Notes | 6.25 | % | 2020 | 315,000 | 315,000 | — | — | 315,000 | 315,000 | — | — | ||||||||||||||||||||||||||
NVE Term Loan | 2.56 | % | 2014 | 195,000 | 195,000 | — | — | 195,000 | 195,000 | — | — | ||||||||||||||||||||||||||
Obligations under capital leases | 38,415 | — | 36,571 | 1,844 | 44,258 | — | 42,908 | 1,350 | |||||||||||||||||||||||||||||
Unamortized bond premium and discount (net) | 759 | — | (9,080 | ) | 9,839 | 1,631 | — | (9,827 | ) | 11,458 | |||||||||||||||||||||||||||
Current maturities | (129,457 | ) | — | (129,186 | ) | (271 | ) | (356,283 | ) | — | (106,048 | ) | (250,235 | ) | |||||||||||||||||||||||
Total Long-Term Debt | $ | 4,791,809 | $ | 510,000 | $ | 3,103,980 | $ | 1,177,829 | $ | 4,669,798 | $ | 510,000 | $ | 3,230,808 | $ | 928,990 | |||||||||||||||||||||
Substantially all utility plant is subject to the liens of the NPC Indenture and the SPPC Indenture under which their respective General and Refunding Mortgage Securities are issued. | |||||||||||||||||||||||||||||||||||||
Financing Transactions | |||||||||||||||||||||||||||||||||||||
Nevada Power Company | |||||||||||||||||||||||||||||||||||||
In July 2013, NPC issued a notice of redemption to the bondholders for its $100 million Clark County Industrial Development Refunding Revenue Bonds, Series 2000A. In August 2013, NPC redeemed the aggregate principal amount outstanding of $98.1 million at 100% of the principal amount plus accrued interest with the use of cash on hand. | |||||||||||||||||||||||||||||||||||||
Sierra Pacific Power Company | |||||||||||||||||||||||||||||||||||||
In August 2013, SPPC issued and sold $250 million of its 3.375% General and Refunding Notes, Series T due 2023. The approximately $247.9 million in net proceeds was used, together with cash on hand, to pay at maturity the $250 million principal amount of its 5.45% General and Refunding Notes, Series Q, which matured in September 2013. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures | ' |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
The September 30, 2013 carrying amount of cash and cash equivalents, current assets, accounts receivable, accounts payable and current liabilities approximate fair value due to the short-term nature of these instruments. As reported in Note 4, Investments in Subsidiaries & Other Property, of the Notes to Financial Statements in the 2012 Form 10-K, investments held in Rabbi Trust continues to be considered Level 1 in the fair value hierarchy. | |
The total fair value of NVE’s consolidated long-term debt at September 30, 2013, is estimated to be $5.6 billion based on quoted market prices for the same or similar issues or on the current rates offered to NVE for debt of the same remaining maturities. The total fair value was estimated to be $5.9 billion as of December 31, 2012. | |
The total fair value of NPC’s consolidated long-term debt at September 30, 2013, is estimated to be $3.7 billion based on quoted market prices for the same or similar issues or on the current rates offered to NPC for debt of the same remaining maturities. The total fair value was estimated to be $4.1 billion at December 31, 2012. | |
The total fair value of SPPC’s consolidated long-term debt at September 30, 2013, is estimated to be $1.3 billion based on quoted market prices for the same or similar issues or on the current rates offered to SPPC for debt of the same remaining maturities. The total fair value was estimated to be $1.3 billion as of December 31, 2012. |
RETIREMENT_PLAN_AND_POSTRETIRE
RETIREMENT PLAN AND POST-RETIREMENT BENEFITS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
RETIREMENT PLAN AND POST-RETIREMENT BENEFITS | ' | |||||||||||||||
RETIREMENT PLAN AND POST-RETIREMENT BENEFITS | ||||||||||||||||
NVE has a single employer defined benefit pension plan covering substantially all employees of NVE and the Utilities. NVE allocates the unfunded liability and the net periodic benefit costs for its pension benefit and other post-retirement benefit plans to NPC and SPPC based upon the current, or in the case of the retirees, previous, employment location. Certain grandfathered and union employees are covered under a benefit formula based on years of service and the employee's highest compensation for a period prior to retirement, while most employees are covered under a cash balance formula with vesting after three years of service. NVE also has other post-retirement plans, including a defined contribution plan which provides medical and life insurance benefits for certain retired employees. A summary of the components of net periodic pension and other post-retirement costs for the three and nine months ended September 30 follows. This summary is based on a December 31, measurement date (dollars in thousands): | ||||||||||||||||
NVE | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5,132 | $ | 4,406 | $ | 660 | $ | 595 | ||||||||
Interest cost | 9,303 | 10,228 | 1,677 | 1,905 | ||||||||||||
Expected return on plan assets | (12,708 | ) | (12,447 | ) | (1,687 | ) | (1,563 | ) | ||||||||
Amortization of prior service cost | (720 | ) | (724 | ) | (952 | ) | (987 | ) | ||||||||
Amortization of net loss | 4,797 | 3,473 | 890 | 731 | ||||||||||||
Net periodic benefit cost | $ | 5,804 | $ | 4,936 | $ | 588 | $ | 681 | ||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 15,396 | $ | 13,220 | $ | 1,980 | $ | 1,787 | ||||||||
Interest cost | 27,911 | 30,684 | 5,030 | 5,715 | ||||||||||||
Expected return on plan assets | (38,124 | ) | (37,341 | ) | (5,060 | ) | (4,690 | ) | ||||||||
Amortization of prior service cost | (2,162 | ) | (2,173 | ) | (2,857 | ) | (2,961 | ) | ||||||||
Amortization of net loss | 14,391 | 10,418 | 2,671 | 2,193 | ||||||||||||
Net periodic benefit cost | $ | 17,412 | $ | 14,808 | $ | 1,764 | $ | 2,044 | ||||||||
The average percentage of NVE net periodic costs capitalized during 2013 and 2012 was 34.5% and 35.0% respectively. | ||||||||||||||||
NPC | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 2,761 | $ | 2,358 | $ | 389 | $ | 350 | ||||||||
Interest cost | 4,453 | 4,881 | 556 | 602 | ||||||||||||
Expected return on plan assets | (6,270 | ) | (6,237 | ) | (631 | ) | (592 | ) | ||||||||
Amortization of prior service cost | (453 | ) | (456 | ) | (23 | ) | 229 | |||||||||
Amortization of net loss | 2,117 | 1,363 | 289 | 221 | ||||||||||||
Net periodic benefit cost | $ | 2,608 | $ | 1,909 | $ | 580 | $ | 810 | ||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 8,283 | $ | 7,072 | $ | 1,167 | $ | 1,050 | ||||||||
Interest cost | 13,358 | 14,643 | 1,667 | 1,807 | ||||||||||||
Expected return on plan assets | (18,810 | ) | (18,711 | ) | (1,892 | ) | (1,775 | ) | ||||||||
Amortization of prior service cost | (1,358 | ) | (1,367 | ) | (69 | ) | 687 | |||||||||
Amortization of net loss | 6,351 | 4,089 | 867 | 662 | ||||||||||||
Net periodic benefit cost | $ | 7,824 | $ | 5,726 | $ | 1,740 | $ | 2,431 | ||||||||
The average percentage of NPC net periodic costs capitalized during 2013 and 2012 was 35.9% and 36.9% respectively. | ||||||||||||||||
SPPC | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 1,926 | $ | 1,695 | $ | 251 | $ | 227 | ||||||||
Interest cost | 4,558 | 5,043 | 1,104 | 1,283 | ||||||||||||
Expected return on plan assets | (6,162 | ) | (5,937 | ) | (1,022 | ) | (941 | ) | ||||||||
Amortization of prior service cost | (277 | ) | (277 | ) | (933 | ) | (1,220 | ) | ||||||||
Amortization of net loss | 2,501 | 2,026 | 592 | 504 | ||||||||||||
Net periodic benefit cost | $ | 2,546 | $ | 2,550 | $ | (8 | ) | $ | (147 | ) | ||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5,778 | $ | 5,086 | $ | 752 | $ | 682 | ||||||||
Interest cost | 13,676 | 15,130 | 3,310 | 3,848 | ||||||||||||
Expected return on plan assets | (18,486 | ) | (17,813 | ) | (3,065 | ) | (2,823 | ) | ||||||||
Amortization of prior service cost | (831 | ) | (831 | ) | (2,798 | ) | (3,658 | ) | ||||||||
Amortization of net loss | 7,502 | 6,078 | 1,777 | 1,511 | ||||||||||||
Net periodic benefit cost | $ | 7,639 | $ | 7,650 | $ | (24 | ) | $ | (440 | ) | ||||||
The average percentage of SPPC net periodic costs capitalized during 2013 and 2012 and was 35.6% and 35.1%, respectively. | ||||||||||||||||
As discussed in Note 10, Retirement Plan and Post-Retirement Benefits, of the Notes to Financial Statements in the 2012 Form 10-K, NVE offered a voluntary lump sum pension pay out to former employees not currently of retirement age but eligible for future benefits and certain retiree participants already receiving benefits under NVE’s pension plan in an effort to reduce NVE’s future pension obligation. During the nine months ended September 30, 2013, NVE paid $21.5 million in lump sum pension pay outs from the pension assets. The company does not expect any further material amounts to be paid in 2013. | ||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the company made contributions to the pension plan in the amount of $20.0 million and $15.0 million, respectively and $5.0 million and $7.1 million, respectively in contributions to the other post-retirement benefits plan. At the present time, it is not anticipated that additional funding will be required for either plan in 2013 in order to meet the minimum funding level requirements defined by the Pension Protection Act of 2006. However, NVE and the Utilities have included in their 2013 assumptions funding levels similar to the 2012 funding. The amounts to be contributed in 2013 may change subject to market conditions. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
COMMITMENTS AND CONTINGENCIES | ||
Environmental | ||
NPC | ||
NEICO | ||
NEICO, a wholly-owned subsidiary of NPC, owns property in Wellington, Utah, which was the site of a coal washing and load-out facility. The site has a reclamation estimate supported by a bond of approximately $4 million with the Utah Division of Oil and Gas Mining, which management believes is sufficient to cover reclamation costs. The site is under contract for sale to a third party and the sale is expected to close in the fourth quarter of 2013. The sale will not be material to NPC. | ||
Reid Gardner Generating Station | ||
On October 4, 2011, NPC received a request for information from the EPA-Region 9 under Section 114 of the Federal Clean Air Act requesting current and historical operations and capital project information for NPC’s Reid Gardner Generating Station located near Moapa, Nevada. NPC operates the facility and owns Units 1-4, with the interest of CDWR in Unit 4 having been terminated in October 2013. The EPA’s Section 114 information request does not allege any incidents of non-compliance at the plant. NPC completed its responses to EPA during the first quarter of 2012 and will continue to monitor developments relating to this Section 114 request. At this time, NPC cannot predict the impact, if any, associated with this information request. | ||
SPPC | ||
Valmy Generating Station | ||
On June 22, 2009, SPPC received a request for information from the EPA-Region 9 under Section 114 of the Federal Clean Air Act requesting current and historical operations and capital project information for SPPC’s Valmy Generating Station located in Valmy, Nevada. SPPC co-owns and operates this coal-fired plant. Idaho Power Company owns the remaining 50%. The EPA’s Section 114 information request does not allege any incidents of non-compliance at the plant, and there have been no other new enforcement-related proceedings that have been initiated by the EPA relating to the plant. SPPC completed its response to the EPA in December 2009 and will continue to monitor developments relating to this Section 114 request. At this time, SPPC cannot predict the impact, if any, associated with this information request. | ||
NPC and SPPC | ||
NVision and SB 123 | ||
NVision is a comprehensive plan of NVE for the reduction of emissions from coal-fired generation plants through the accelerated retirement of certain coal-fired plants, the replacement of the generation capacity of such plants with increased capacity from renewable energy facilities and other electric generating plants. NVision includes the following significant details: | ||
• | Accelerating the plan to retire 800 MWs of coal plants, starting as soon as December 31, 2014; | |
• | Replacement of such coal plants with the procurement of 300 MWs from renewable facilities; | |
• | Construction or acquisition and ownership of 50 MWs of electric generating capacity from renewable facilities; | |
• | Construction or acquisition and ownership of 550 MWs of electric generating capacity from other electric generating plants; and | |
• | Assuring regulatory procedures that protect reliability and supply and address financial impacts on customer and utility. | |
In June 2013, the Nevada State Legislature passed SB 123, which was supported by NVE as part of its NVision initiative and includes the requirements as outlined in the bullets above. The Utilities, along with other interested parties, are currently working with the PUCN to finalize the rulemaking associated with this bill and expect to file an emissions reduction plan in 2014 to specifically address the plan details as outlined above. | ||
Greenhouse Gas/Carbon Regulations | ||
In conjunction with the release of President Obama’s Climate Action Plan on June 25, 2013, the President issued a memorandum directing the EPA to take several actions on carbon emissions standards for power plants. As discussed above, NVision and the passage of SB 123, will yield substantial reductions in carbon as NVE and the Utilities retire their existing coal-fired generating facilities on an accelerated schedule. While the Utilities currently cannot predict the financial impact or final mandates by President Obama’s Climate Action Plan or the EPA’s final rules, NVE and the Utilities remain committed to taking progressive steps over time to limit the carbon emissions from its generation fleet by retiring older fossil units and replacing them with new, lower emissions and/or zero emission sources. | ||
Regional Haze Rules | ||
In 2005, the EPA finalized amendments to its Regional Haze Rules that require the installation and operation of emission controls, known as best available retrofit technology (BART), for industrial facilities emitting air pollutants that reduce visibility in certain national parks and wilderness areas throughout the U.S. Certain NVE generating facilities are subject to BART requirements. Pursuant to the EPA’s Regional Haze Rules, individual states were required to identify the facilities located in their states that will have to reduce sulfur dioxide (SO2), nitrogen oxide (NOx) and particulate matter emissions under BART and then set emissions limits for those facilities. | ||
In June 2011, the EPA published in the Federal Register its proposal to approve Nevada's State Implementation Plan (SIP) implementing the Regional Haze Rules for affected units in the State of Nevada, which includes units at our Reid Gardner, Tracy and Ft. Churchill Generating Stations. In March 2012, the EPA approved Nevada’s SIP as it pertains to all affected units and emissions, except for NOx controls at Units 1-3 at the Reid Gardner Generating Station. The specified compliance date for this action, which includes the affected Tracy and Ft. Churchill Generating Station units, is January 1, 2015. In that same March 2012 Federal Register notice, the EPA stated that it intended to make a BART determination on those Reid Gardner Generating Station units at a later date. In August 2012, the EPA published its final determination for NOx BART controls for the Reid Gardner Generating Station Units 1-3, approving and rejecting certain components of Nevada’s SIP. For the limited portions of Nevada’s SIP that EPA rejected, it put in place a Federal Implementation Plan (FIP) that will remain enforceable until such time as Nevada submits a revised SIP to address the concerns the EPA noted in its August 2012 Federal Register notice. Within the August 2012 notice, the EPA approved Nevada’s determination in its SIP that the installation of selective non-catalytic reduction technology (SNCR) represented BART for purposes of compliance with the Regional Haze Rule, with a specified compliance date of January 1, 2015. On October 19, 2012, NPC submitted to EPA a Petition for Reconsideration of the August 2012 final rule requesting EPA to reconsider the compliance deadline for the Reid Gardner Generating Station retrofits so that it be set no earlier than June 30, 2016, which would match the modified compliance data put forward by the State of Nevada. On March 26, 2013, the EPA granted reconsideration of the compliance date for the BART retrofits for Units 1, 2 and 3 at Reid Gardner Generating Station, proposing to extend the compliance date by 18 months, from January 1, 2015 to June 30, 2016. The EPA held a public hearing on April 29, 2013, to accept written and oral comments on this proposed action and t he comment period for this action closed on May 30, 2013. In August 2013, the EPA announced it was taking final action to extend the date by which Units 1, 2, and 3 at Reid Gardner Generating Station must meet the BART limits to reduce emissions of nitrogen oxides. The final date is now affirmed as June 30, 2016. | ||
NVE continues to work toward finalizing the retrofit designs for the affected BART units. NVE has received approval from the PUCN to retire Tracy Generating Station Units 1 and 2, and install retrofit controls on Tracy Generating Station Unit 3 and Ft. Churchill Generating Station Units 1 and 2. As previously disclosed, NVE and the Utilities intend to file with the PUCN their emissions reduction plan in 2014 detailing how they will address the phased retirement of coal fired assets as required under SB 123. While the BART requirements specify the installation of SNCR’s on Reid Gardner Generating Station Units 1, 2 and 3, the passage of SB 123 could result in the early retirement of those units prior to the required BART installation deadline, pending the final approval of the PUCN. Therefore, in 2014, NVE and the Utilities will file an emissions reduction plan. NVE and the Utilities would need to obtain either the PUCN approval to retire those units as soon as the end of 2014 or seek approval for the BART retrofit installation with an alternate retirement date. Compliance with the Regional Haze Rules are estimated to cost approximately $77.1 million, including Reid Gardner Generating Station Units 1, 2 and 3, but excluding AFUDC, over the next several years; however, these costs are preliminary and subject to change based on final engineering analysis and retirement of generating station units. NVE expects that costs incurred to comply with the Regional Haze Rules would be capitalized and recovered through the Utilities’ regulatory proceedings similar to other environmental compliance requirements. | ||
Environmental groups have challenged both of the EPA’s final determinations with respect to Nevada’s regional haze SIP submittal. In May 2012, WildEarth Guardians petitioned the Ninth Circuit to review the EPA’s March 2012 approval of Nevada’s SIP for all affected units and emissions except NOx controls at the Reid Gardner Generating Station, alleging that the EPA’s approval did not conform to the requirements set forth in the Regional Haze Rule. NVE has intervened in that lawsuit. In October 2012, Earthjustice, on behalf of the Moapa Band of Paiute Indians, Sierra Club and the National Parks Conservation Association, petitioned the Ninth Circuit to review the EPA’s August 2012 final determinations pertaining to NOx controls at the Reid Gardner Generating Station. NVE has intervened in this lawsuit. At this time management is unable to determine the likelihood of success by petitioners in these litigation matters. An adverse decision in either lawsuit could impact our compliance strategy for the Tracy, Ft. Churchill and Reid Gardner Generating Stations, and could result in the requirement to install more stringent emissions controls, or the retirement of certain units earlier than currently planned. | ||
The Navajo Generating Station is also an affected unit under EPA’s Regional Haze Rules. On January 17, 2013, the EPA announced a proposed FIP addressing BART and an “Alternative to BART” for the Navajo Generating Station that includes a flexible timeline for reducing NOx emissions. NVE, along with the other owners of the facility, have been reviewing the EPA proposal to determine its impact on the viability of the plant’s future operations. The land lease for the Navajo Generating Station is up for renewal in 2019. Renewal of this lease will require completion of an Environmental Impact Statement as well as a renewal of the fuels supply agreement, among other considerations. It is believed that the EPA BART proposal will require an investment of up to $1.1 billion in additional emission controls at the plant of which NPC’s ownership share is 11.3%. | ||
The original comment period on the EPA BART proposal expired on May 6, 2013, but Navajo Generating Station operator Salt River requested and was granted several extensions, citing the complexity of the plan and the need to consult with multiple tribes and the other plant co-owners. | ||
On September 25, 2013, the EPA issued a supplemental proposal which included a BART alternative called the Technical Work Group (“TWG”) Alternative. The TWG Alternative is based upon the proposal submitted to the EPA in July 2013 by a group of Navajo Generating Station stakeholders called the TWG. At this time, the EPA is concurrently accepting comments on the BART determination and the EPA Alternative which were proposed in February 2013, as well the TWG Alternative proposed in the supplemental proposal. Comments are now due by January 6, 2014. | ||
Given the uncertainties that remain regarding the various lease and agreement renewal terms, the timeline for BART installation, and the fact that the EPA’s overall proposal will be subject to significant input from a variety of affected parties before it is finalized, NVE cannot predict at this time the ultimate financial impact to the Navajo Generating Station operations or what other alternative actions the ownership may decide to take. As a result of the passage of NVision and these uncertainties, NPC expects to file in 2014 an emissions reduction plan to specifically address its ownership participation in the Navajo Generating Station. | ||
Mercury and Air Toxics Standards (MATS) | ||
In December 2011, the EPA signed for publication in the Federal Register a final rule regulating hazardous air pollutant (HAP) emissions from coal- and oil-fired electric utility steam generating units. The rule, referred to as the MATS rule, requires coal- and oil-fired electric utility steam generating units to meet HAP emission standards reflecting the application of the Maximum Achievable Control Technology (MACT). The final MATS rule (previously referred to as the Utility MACT Rule) was published in the Federal Register on February 16, 2012. The final rule establishes emission limits for hazardous air pollutants from new and existing coal-fired and oil-fired steam electric generating units. The rule requires sources to comply with the emission limits by April 16, 2015, with a potential one year compliance extension available for sources that are unable to complete the installation of emission controls before the compliance deadline. Numerous petitions for review of the final MATS rule have been filed with the United States Court of Appeals for the District of Columbia. The Court has established a schedule for the litigation; however, the Utilities cannot predict the outcome at this time. | ||
The final rule does not specifically list control technologies that are required to achieve the MATS emission standards. Coal- and oil-fired electric generating units are required to meet the applicable HAP emission limits using whatever control technology, or combination of technologies, they deem appropriate for their specific situation. In general, control technology requirements will be a function of the fuel being fired and the performance of existing air pollution control systems. Based on a review of emissions data available from NVE’s generating units, as well as emissions data available from EPA for similar sources, the Utilities anticipate that SO2 and/or acid gas reduction will be required at SPPC’s Valmy Generating Station, Unit 1 to achieve compliance with the MATS standards. At the present time, SPPC believes a dry sorbent injection system will be selected as the final control option for Unit 1, at an estimated capital cost for SPPC’s 50% ownership interest of approximately $6.4 million, excluding AFUDC. Note that the actual cost will be dependent upon final engineering design. | ||
The three units at the Navajo Generating Station are also subject to MATS. The plant operator intends to file a one year extension request associated with the compliance date in order to allow for additional testing of various mercury control strategies. Due to the uncertainty of what control equipment will be ultimately required to control mercury from the Navajo Generating Station units, a cost estimate is unable to be determined at this time. | ||
Currently, all four of the units at the Reid Gardner Generating Station, as well as Unit 2 at the Valmy Generating Station are compliant with the MATS emission standards, based on the current fuel blend. However, NVE and the Utilities will continue to monitor the chemical coal composition utilized in these units to ensure continued compliance. | ||
Other Environmental Matters | ||
NVE and the Utilities are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. In addition, NVE and the Utilities may also be subject to future state or federal regulations. Due to the age and/or historical usage of past and present operating properties, the Utilities may be responsible for various levels of environmental remediation at contaminated sites. This can include properties that are part of ongoing Utility operations, sites formerly owned or used by NVE or the Utilities, and/or sites owned by third parties. The responsibility to remediate typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility, which may be accelerated by any decision to retire a generating station or other facility. If remediation activities involve statutory joint and several liability provisions, strict liability or cost recovery of contribution actions, NVE, the Utilities or their respective affiliates could potentially be held responsible for contamination caused by other parties. In some instances, NVE or the Utilities may share liability associated with contamination with other parties, and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. These types of sites/situations are generally managed in the normal course of business operations. | ||
In 2008, NPC signed an Administrative Order of Consent (AOC) as owner and operator of Reid Gardner Generating Station Units 1, 2 and 3 and as co-owner and operating agent of Unit 4. In October 2013, NPC purchased Unit 4 from CDWR. Based on the AOC, in 2008, NPC recorded estimated ARO and capital remediation costs. However, actual costs of work under the AOC may vary significantly once the scope of work is defined and additional site characterization has been completed. | ||
NVE and the Utilities seek to continually comply with environmental regulations; however, given the uncertainties involved in the federal, state and local regulatory environment, future costs to comply may be material. | ||
Litigation Contingencies | ||
NVE | ||
Litigation Related to the MidAmerican Merger | ||
Following the announcement of the proposed acquisition of NVE by MEHC through its subsidiary Silver Merger Sub, Inc. on May 29, 2013, several complaints were filed by alleged NVE shareholders in the Eighth Judicial District Court in Clark County, Nevada, challenging the MidAmerican Merger. | ||
On June 6, 2013, a complaint was filed on behalf of a putative class of NVE public shareholders, naming NVE, its BOD, and Silver Merger Sub, Inc., as defendants. This complaint was amended on July 16, 2013. The amended complaint generally alleges that the individual defendants breached their fiduciary duties in connection with the proposed MidAmerican Merger, including by approving the transaction on allegedly unfair terms, at an allegedly unfair price and pursuant to an allegedly inadequate process; allegedly acting with conflicts and in their own personal interests rather than those of shareholders; and making inadequate disclosures in connection with requested shareholder approval of the proposed MidAmerican Merger. The amended complaint also alleges that Silver Merger Sub. Inc., NVE and MEHC aided and abetted the individual defendants in breaching their fiduciary duties. | ||
Four additional complaints were filed in the Eighth Judicial District Court in Clark County, Nevada on June 7, 2013, June 10, 2013, July 12, 2013 and August 16, 2013. These complaints contain claims and allegations similar to the amended July 16, 2013 complaint and seek similar relief on behalf of the same putative class. One complaint was voluntarily dismissed. The remaining cases were consolidated in Department XI of the Eighth Judicial District Court in Clark County, Nevada. | ||
An agreement-in-principle has been reached between the parties to these lawsuits, which was memorialized in a memorandum of understanding executed on September 4, 2013. The memorandum of understanding called for NVE to supplement the proxy statement for the special meeting of stockholders related to the MidAmerican Merger, and the supplemental information was in fact provided via NVE’s Form 8-K dated September 9, 2013. The parties currently are preparing a final stipulation of settlement which will be submitted to the court for approval. It is not known at this time when the court will set hearings and/or issue a final order, but NVE does not expect the outcome of this litigation or settlement to delay the closing of the MidAmerican Merger or otherwise have a material impact on NVE. | ||
NPC | ||
Peabody Western Coal Company - Royalty Claim | ||
NPC owns an 11% interest in the Navajo Generating Station, which is located in northern Arizona and operated by Salt River. Other participants in the Navajo Generating Station are Arizona Public Service Company, Los Angeles Department of Water and Power and Tucson Electric Power Company (together with Salt River and NPC, the “Navajo Joint Owners”). NPC also owns a 14% interest in the Mohave Generating Station which is located in Laughlin, Nevada and was operated by Southern California Edison (SCE) prior to the time it became non-operational on December 31, 2005. | ||
In June 1999, the Navajo Nation filed suit against Salt River, several Peabody Coal Company entities (collectively referred to as “Peabody”) and SCE in the U.S. District Court for the District of Columbia (the “DC Lawsuit”). NPC was not a party to the DC Lawsuit although, as noted above, it is a participant in both the Navajo Generating Station and the Mohave Generating Station. The DC Lawsuit asserted claims relating to the renegotiation of coal royalty and lease agreements and alleged, among other things, that the defendants obtained a favorable coal royalty rate for leases under which Peabody mined coal for both the Navajo Generating Station and Mohave Generating Station by improperly influencing the outcome of a federal administrative process. The DC Lawsuit sought $600 million in damages and punitive damages of not less than $1.0 billion. | ||
In 2004, Peabody brought suit against the Navajo Joint Owners in state court in St. Louis, Missouri, seeking a declaration that the Navajo Joint Owners are obligated to reimburse Peabody for any royalty, tax or other obligations arising out of the DC Lawsuit. In July 2008, the court dismissed all counts against NPC, two without prejudice to their possible re-filing. | ||
In August 2011, all claims in the DC Lawsuit were dismissed pursuant to a settlement agreement among the Navajo Nation, Peabody, Salt River and SCE. At the request of Salt River, NPC contributed an immaterial amount toward the settlement of the DC Lawsuit based on its 11% ownership stake in the Navajo Generating Station. | ||
SCE also has asked that the Mohave Joint Owners, including NPC, contribute toward the settlement based upon their ownership stakes in the Mohave Generating Station. In October 2013, NPC settled with SCE on this matter. The terms of the settlement are not material to NPC. | ||
November 2005 Land Investors | ||
In 2006, November 2005 Land Investors, LLC (“NLI”) purchased from the U.S. through the Bureau of Land Management (“BLM”) 2,675 acres of land located in North Las Vegas, Nevada. A small portion of the land was and is traversed by a 500kV transmission line owned by NPC and sited pursuant to a pre-existing right-of-way grant (“Grant”) from the BLM. Subsequent to NLI’s purchase, a dispute arose as to whether NPC owed rent and, if it did, the amount owed to NLI under the Grant. NLI eventually “terminated” the Grant and brought claims against NPC for breach of contract, inverse condemnation and trespass. NPC counterclaimed for express condemnation of a perpetual easement over the right-of-way corridor. The matter proceeded to trial in the Eighth Judicial District Court, Clark County, Nevada. In September 2013, the court awarded NLI approximately $1.0 million for unpaid rent and $5.1 million for inverse condemnation, plus interest and attorneys’ fees. The court also found NPC was entitled to judgment in its favor on its counterclaim for condemnation of the right-of-way corridor. | ||
NPC has appealed to the Nevada Supreme Court, which has yet to establish a schedule for the appeal. Management cannot assess or predict the outcome of the case at this time, but it is not expected to be material to NPC. | ||
SPPC | ||
Farad Dam | ||
In June 2001, SPPC sold four hydro generating units (10.3 MW total capacity) located in Nevada and California to TMWA for $8.0 million. One of the units, the Farad Hydro (2.8 MW), has been out of service since the summer of 1996 due to a collapsed flume. Under the terms of the contract with TMWA, SPPC is not entitled to receive the proceeds of sale relating to Farad unless and until it has reconstructed the Farad facility in a manner reasonably acceptable to TMWA or, alternatively, SPPC assigns its casualty loss claim to TMWA and TMWA is reasonably satisfied regarding its rights with respect to such claim. The current estimate to rebuild the diversion dam, if management decides to rebuild, is approximately $20 million. | ||
SPPC filed a claim with the Farad Dam’s insurers, Hartford Steam Boiler Inspection and Insurance Company and Zurich-American Insurance Company, and in 2003 initiated federal court litigation against the insurers. The insurers contested the extent and amount of insurance coverage. Coverage was established through this litigation, but until July 2012 the matter remained in litigation to determine the amount of coverage. | ||
In July 2012, the Ninth Circuit entered its order reversing the valuation holding of the U.S. District Court and setting the value of Farad Dam at $19.8 million (as was argued by SPPC), with some deduction for depreciation to be determined on remand. The court also affirmed SPPC’s right to recover $4.0 million dollars in permitting and design costs, but held that if SPPC accepts the money, rather than rebuild, the $4.0 million is part of the $19.8 million replacement cost. In addition, the court held that SPPC is entitled to recover full replacement cost in the event of a rebuild, and that the District Court is free, on remand, to extend the three years time to rebuild to start at the conclusion of all litigation. | ||
The District Court has now set the briefing schedule for the issues remanded by the Ninth Circuit. Management cannot assess or predict the outcome or the impact of the District Court decisions at this time, but they are not expected to be material to SPPC. | ||
Other Legal Matters | ||
NVE and its subsidiaries, through the course of their normal business operations, are currently involved in a number of other legal actions, none of which, in the opinion of management, is expected to have a significant impact on their financial positions, results of operations or cash flows. | ||
Other Commitments | ||
NPC and SPPC | ||
ON Line TUA | ||
During the second quarter of 2011, NVE began to construct Phase 1 of ON Line, which is a joint project between the Utilities and GBT-South. Construction of Phase 1 consists of the initial 500 kV interconnection between the Robinson Summit substation on the SPPC system and the Harry Allen substation on the NPC system. ON Line has an expected in-service date of no later than December 31, 2013. The Utilities will own a 25% interest in Phase 1 and have entered into a TUA with GBT-South for its 75% interest in Phase 1. Under the terms of the TUA, NVE’s future lease payments are adjusted for final capital costs, for which the Utilities expect to get regulatory recovery. For accounting purposes, NVE is treated as the owner of the construction project in accordance with Lease Accounting, The Effect of Lessee Involvement in Asset Construction of the FASC. As a result, as of September 30, 2013, capitalized construction costs associated with GBT’s 75% interest of $370.8 million and $19.4 million were included in CWIP with a corresponding credit to other deferred liabilities at NPC and SPPC, respectively. |
EARNINGS_PER_SHARE_NVE
EARNINGS PER SHARE (NVE) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
EARNINGS PER SHARE (NVE) | ||||||||||||||||
The difference, if any, between basic EPS and diluted EPS is due to potentially dilutive common shares resulting from stock options, the employee stock purchase plan, performance and restricted stock plans, and the non-employee director stock plan. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic EPS | ||||||||||||||||
Numerator ($000) | ||||||||||||||||
Net Income | $ | 187,234 | $ | 223,170 | $ | 271,942 | $ | 304,782 | ||||||||
Denominator | ||||||||||||||||
Weighted average number of common shares outstanding | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||||||||||
Per Share Amounts | ||||||||||||||||
Net Income per share - basic | $ | 0.79 | $ | 0.95 | $ | 1.16 | $ | 1.29 | ||||||||
Diluted EPS | ||||||||||||||||
Numerator ($000) | ||||||||||||||||
Net Income | $ | 187,234 | $ | 223,170 | $ | 271,942 | $ | 304,782 | ||||||||
Denominator(1) | ||||||||||||||||
Weighted average number of shares outstanding before dilution | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||||||||||
Stock options | 61,927 | 39,256 | 46,537 | 37,592 | ||||||||||||
Non-Employee Director stock plan | 190,705 | 166,829 | 185,337 | 160,257 | ||||||||||||
Employee stock purchase plan | 4,149 | 6,742 | 5,831 | 6,785 | ||||||||||||
Restricted Shares | 412,000 | 584,750 | 487,667 | 533,750 | ||||||||||||
Performance Shares | 1,358,423 | 1,362,753 | 1,191,734 | 1,125,272 | ||||||||||||
Diluted Weighted Average Number of Shares | 237,605,514 | 238,121,732 | 237,339,039 | 237,850,530 | ||||||||||||
Per Share Amounts | ||||||||||||||||
Net income per share - diluted | $ | 0.79 | $ | 0.94 | $ | 1.15 | $ | 1.28 | ||||||||
-1 | The denominator does not include stock equivalents for options issued under the non-qualified stock option plan due to conversion prices being higher than market prices for the periods ending September 30, 2012. If the conditions for conversion were met under this plan, 327,503 and 329,382 shares, would be included for the three and nine months ended September 30, 2012, respectively. |
COMMON_STOCK_AND_OTHER_PAIDIN_
COMMON STOCK AND OTHER PAID-IN CAPITAL | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Equity [Abstract] | ' | ||||||
COMMON STOCK AND OTHER PAID-IN CAPITAL | ' | ||||||
COMMON STOCK AND OTHER PAID-IN CAPITAL | |||||||
Dividends | |||||||
The following dividend declarations were made by the BOD of NVE: | |||||||
Declaration Date | Amount | Payable Date | Shareholders of Record Date | ||||
February 7, 2013 | $0.19 | March 20, 2013 | March 5, 2013 | ||||
May 8, 2013 | $0.19 | June 19, 2013 | June 4, 2013 | ||||
August 1, 2013 | $0.19 | September 18, 2013 | September 3, 2013 | ||||
November 6, 2013 | $0.19 | December 18, 2013 | December 3, 2013 | ||||
On November 6, 2013, NPC and SPPC declared dividends payable to NVE of $73.0 million and $37.0 million, respectively. For the nine months ended September 30, 2013, NPC and SPPC paid dividends to NVE of $105.0 million and $40.0 million, respectively. | |||||||
Treasury Stock | |||||||
NVE periodically repurchases common stock on the open market for the purpose of meeting the requirements of its stock compensation plans; such purchases were not made pursuant to a publicly announced stock repurchase plan or program. All shares repurchased are held as treasury stock and may be reissued upon exercise or settlement of the stock compensation award. Treasury stock is accounted for using the cost method. During the nine months ended September 30, 2013, NVE repurchased 325,178 shares of common stock for approximately $6.3 million. During the nine months ended September 30, 2013, NVE re-issued 827,097 treasury shares to satisfy employee benefit plans. In May 2013, NVE ceased the repurchase of common stock as a result of the proposed MidAmerican Merger. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the accounts of NV Energy, Inc. and its wholly-owned subsidiaries, NPC, SPPC, Sierra Pacific Communications, Lands of Sierra, Inc., NVE Insurance Company, Inc. and Sierra Gas Holding Company. All intercompany balances and transactions have been eliminated in consolidation. | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities. These estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of certain revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
In the opinion of the management of NVE, NPC and SPPC, the accompanying unaudited interim consolidated financial statements contain normal and recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows for the periods shown. These consolidated financial statements do not contain the complete detail concerning accounting policies and other matters, which are included in full year financial statements; therefore, they should be read in conjunction with the audited financial statements included in the 2012 Form 10-K. | |
The results of operations and cash flows of NVE, NPC and SPPC for the nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year. | |
Variable Interest Entities | ' |
Consolidations of VIEs | |
To identify potential variable interests, management reviewed contracts under leases, long-term purchase power contracts, tolling contracts and jointly owned facilities. The Utilities identified certain long-term purchase power contracts that could be defined as variable interests. However, the Utilities are not the primary beneficiary as they primarily lacked the power to direct the activities of the entity, including the ability to operate the generating facilities and make management decisions. The Utilities' maximum exposure to loss is limited to the cost of replacing these purchase power contracts if the providers are unable to deliver power. However, the Utilities believe their exposure is mitigated as they would likely recover these costs through their deferred energy accounting mechanism. As of September 30, 2013, the carrying amount of assets and liabilities in the Utilities’ balance sheets that relate to their involvement with VIEs are predominately related to working capital accounts and generally represent the amounts owed by the Utilities for the deliveries associated with the current billing cycle under the contracts. | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
Recent Accounting Standards Update | |
Derivatives and Hedging (ASC 815) | |
In July 2013, the FASB amended its existing guidance related to hedge accounting. The amendment permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S benchmark interest rate for hedge accounting purposes under ASC 815, in addition, to the current approved U.S. rates which include interest rates on direct Treasury obligations of the U.S. government (UST) and LIBOR. The amendment is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have an impact on the presentation of the consolidated financial statements or disclosure requirements for NVE and the Utilities. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB amended its existing guidance related to the presentation of an unrecognized tax benefit on the financial statements. ASC 740, Income Taxes, does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. As a result, there is diversity in practice in the presentation of unrecognized tax benefits. The objective of the amendment is to eliminate the diversity in practice, requiring the unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a NOL carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions. The amendment can be applied prospectively or retrospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities. NVE and the Utilities have elected to early adopt this amendment prospectively as of September 30, 2013, presenting their unrecognized tax benefit as a reduction to their NOL deferred tax asset. The adoption of this guidance did not have a material impact on the presentation of the financial statements for NVE and the Utilities. | |
Federal Income Tax Regulations | |
In September 2013, the Internal Revenue Service and the U.S. Treasury Department released final tax regulations on the deduction and capitalization of expenditures related to tangible property. These regulations apply to tax years beginning on or after January 1, 2014. NVE and the Utilities continue to evaluate the effects of the tangible property regulations as well as the generation guidance in Revenue Procedure 2013-24, but do not believe that these tax regulations will have a material impact on the presentation of the financial statements for NVE and the Utilities. | |
Other Comprehensive Income (ASC 220) | |
In December 2011, the FASB deferred the effective date of a portion of the June 2011 amendment related to the presentation of reclassification adjustments out of accumulated other comprehensive income. In February 2013, the FASB reinstated certain portions of the deferred amendment. The reinstated amendment is applied prospectively and is effective for NVE and the Utilities as of January 1, 2013. The adoption of this guidance did not have an impact on the presentation of the financial statements for NVE and the Utilities. | |
Balance Sheet Offsetting Disclosures (ASC 210) | |
In November 2011, the FASB amended the Balance Sheet Topic as reflected in the FASB Accounting Standards Codification to enhance current disclosures regarding offsetting (netting) of assets and liabilities on the face of the financial statements. The amendment requires an entity to disclose information about offsetting and related arrangements to enable users of the financial statements to understand the effect of those arrangements on its financial position. The scope of this amendment includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The amendment is applied retrospectively to all periods presented and is effective for NVE and the Utilities as of January 1, 2013. The adoption of this guidance did not have an impact on the disclosure requirements for NVE and the Utilities. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Segment Reporting Information | ' | ||||||||||||||||||||||||
Operating expenses are provided by segment in order to reconcile to operating income as reported in the consolidated financial statements (dollars in thousands): | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 1,013,151 | $ | 3 | $ | 786,142 | $ | 227,006 | $ | 213,463 | $ | 13,543 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 217,954 | — | 163,127 | 54,827 | 54,827 | — | |||||||||||||||||||
Purchased power | 205,970 | — | 172,582 | 33,388 | 33,388 | — | |||||||||||||||||||
Gas purchased for resale | 7,383 | — | — | 7,383 | — | 7,383 | |||||||||||||||||||
Deferred energy | (55,270 | ) | — | (45,381 | ) | (9,889 | ) | (7,925 | ) | (1,964 | ) | ||||||||||||||
Energy efficiency program costs | 16,042 | — | 13,998 | 2,044 | 2,044 | — | |||||||||||||||||||
Regulatory disallowance | 17,335 | — | 11,866 | 5,469 | 5,469 | — | |||||||||||||||||||
Total Costs | $ | 409,414 | $ | — | $ | 316,192 | $ | 93,222 | $ | 87,803 | $ | 5,419 | |||||||||||||
Gross Margin | $ | 603,737 | $ | 3 | $ | 469,950 | $ | 133,784 | $ | 125,660 | $ | 8,124 | |||||||||||||
Merger-related costs | 7,857 | 229 | 5,620 | 2,008 | |||||||||||||||||||||
Other operating expenses | 106,068 | 830 | 70,844 | 34,394 | |||||||||||||||||||||
Maintenance | 17,176 | — | 11,208 | 5,968 | |||||||||||||||||||||
Depreciation and amortization | 96,801 | — | 68,849 | 27,952 | |||||||||||||||||||||
Taxes other than income | 14,214 | 57 | 8,213 | 5,944 | |||||||||||||||||||||
Operating Income (Loss) | $ | 361,621 | $ | (1,113 | ) | $ | 305,216 | $ | 57,518 | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 2,329,011 | $ | 10 | $ | 1,695,129 | $ | 633,872 | $ | 560,392 | $ | 73,480 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 554,181 | — | 412,904 | 141,277 | 141,277 | — | |||||||||||||||||||
Purchased power | 498,141 | — | 383,386 | 114,755 | 114,755 | — | |||||||||||||||||||
Gas purchased for resale | 62,277 | — | — | 62,277 | — | 62,277 | |||||||||||||||||||
Deferred energy | (221,022 | ) | — | (154,484 | ) | (66,538 | ) | (44,223 | ) | (22,315 | ) | ||||||||||||||
Energy efficiency program costs | 38,486 | — | 32,807 | 5,679 | 5,679 | — | |||||||||||||||||||
Regulatory disallowance | 17,335 | — | 11,866 | 5,469 | 5,469 | — | |||||||||||||||||||
Total Costs | $ | 949,398 | $ | — | $ | 686,479 | $ | 262,919 | $ | 222,957 | $ | 39,962 | |||||||||||||
Gross Margin | $ | 1,379,613 | $ | 10 | $ | 1,008,650 | $ | 370,953 | $ | 337,435 | $ | 33,518 | |||||||||||||
Merger-related costs | 21,409 | 1,394 | 14,487 | 5,528 | |||||||||||||||||||||
Other operating expenses | 317,538 | 2,747 | 208,336 | 106,455 | |||||||||||||||||||||
Maintenance | 66,128 | — | 45,172 | 20,956 | |||||||||||||||||||||
Depreciation and amortization | 291,687 | — | 207,915 | 83,772 | |||||||||||||||||||||
Taxes other than income | 46,536 | 318 | 27,804 | 18,414 | |||||||||||||||||||||
Operating Income (Loss) | $ | 636,315 | $ | (4,449 | ) | $ | 504,936 | $ | 135,828 | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 1,026,488 | $ | 4 | $ | 802,334 | $ | 224,150 | $ | 212,073 | $ | 12,077 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 171,316 | — | 123,992 | 47,324 | 47,324 | — | |||||||||||||||||||
Purchased power | 205,686 | — | 171,687 | 33,999 | 33,999 | — | |||||||||||||||||||
Gas purchased for resale | 5,382 | — | — | 5,382 | — | 5,382 | |||||||||||||||||||
Deferred energy | (29,036 | ) | — | (22,685 | ) | (6,351 | ) | (5,498 | ) | (853 | ) | ||||||||||||||
Energy efficiency program costs | 32,584 | — | 28,492 | 4,092 | 4,092 | — | |||||||||||||||||||
Total Costs | $ | 385,932 | $ | — | $ | 301,486 | $ | 84,446 | $ | 79,917 | $ | 4,529 | |||||||||||||
Gross Margin | $ | 640,556 | $ | 4 | $ | 500,848 | $ | 139,704 | $ | 132,156 | $ | 7,548 | |||||||||||||
Other operating expenses | 100,108 | 608 | 65,372 | 34,128 | |||||||||||||||||||||
Maintenance | 19,014 | — | 12,533 | 6,481 | |||||||||||||||||||||
Depreciation and amortization | 94,512 | — | 66,975 | 27,537 | |||||||||||||||||||||
Taxes other than income | 15,682 | 45 | 9,743 | 5,894 | |||||||||||||||||||||
Operating Income (Loss) | $ | 411,240 | $ | (649 | ) | $ | 346,225 | $ | 65,664 | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
NVE | NVE Other | NPC Electric | SPPC Total | SPPC Electric | SPPC Gas | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Operating Revenues | $ | 2,378,606 | $ | 12 | $ | 1,751,165 | $ | 627,429 | $ | 549,886 | $ | 77,543 | |||||||||||||
Energy Costs: | |||||||||||||||||||||||||
Fuel for power generation | 400,936 | — | 285,799 | 115,137 | 115,137 | — | |||||||||||||||||||
Purchased power | 486,894 | — | 388,494 | 98,400 | 98,400 | — | |||||||||||||||||||
Gas purchased for resale | 46,491 | — | — | 46,491 | — | 46,491 | |||||||||||||||||||
Deferred Energy | (30,285 | ) | — | (15,461 | ) | (14,824 | ) | (13,854 | ) | (970 | ) | ||||||||||||||
Energy efficiency program costs | 76,609 | — | 65,466 | 11,143 | 11,143 | — | |||||||||||||||||||
Total Costs | $ | 980,645 | $ | — | $ | 724,298 | $ | 256,347 | $ | 210,826 | $ | 45,521 | |||||||||||||
Gross Margin | $ | 1,397,961 | $ | 12 | $ | 1,026,867 | $ | 371,082 | $ | 339,060 | $ | 32,022 | |||||||||||||
Other operating expenses | 307,080 | 2,382 | 200,484 | 104,214 | |||||||||||||||||||||
Maintenance | 76,190 | — | 52,594 | 23,596 | |||||||||||||||||||||
Depreciation and amortization | 281,690 | — | 201,096 | 80,594 | |||||||||||||||||||||
Taxes other than income | 44,457 | 282 | 26,793 | 17,382 | |||||||||||||||||||||
Operating Income (Loss) | $ | 688,544 | $ | (2,652 | ) | $ | 545,900 | $ | 145,296 | ||||||||||||||||
REGULATORY_ACTIONS_Tables
REGULATORY ACTIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
REGULATORY ACTIONS [Abstract] | ' | |||||||||||||||
Summary of Deferred Energy Amounts | ' | |||||||||||||||
The following deferred energy amounts were included in the consolidated balance sheets as of September 30, 2013 (dollars in thousands): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
NVE Total | NPC Electric | SPPC Electric | SPPC Gas | |||||||||||||
Deferred Energy | ||||||||||||||||
Cumulative Deferred Balance authorized in 2013 DEAA | $ | (152,990 | ) | $ | (102,227 | ) | $ | (32,693 | ) | $ | (18,070 | ) | ||||
2013 Amortization | 111,977 | 69,288 | 23,695 | 18,994 | ||||||||||||
2013 Deferred Energy Under Collections (1) | 118,397 | 95,465 | 19,697 | 3,235 | ||||||||||||
Deferred Energy Balance at September 30, 2013 - Subtotal | $ | 77,384 | $ | 62,526 | $ | 10,699 | $ | 4,159 | ||||||||
Reinstatement of deferred energy (effective 6/07, 10 years) | 89,906 | 89,906 | — | — | ||||||||||||
Total Deferred Energy | $ | 167,290 | $ | 152,432 | $ | 10,699 | $ | 4,159 | ||||||||
Current Assets | ||||||||||||||||
Deferred energy | $ | 82,235 | $ | 68,391 | $ | 10,322 | $ | 3,522 | ||||||||
Non-current Assets | ||||||||||||||||
Deferred energy | 85,055 | 84,041 | 377 | 637 | ||||||||||||
Total Net Deferred Energy | $ | 167,290 | $ | 152,432 | $ | 10,699 | $ | 4,159 | ||||||||
(1) | These deferred energy under collections are subject to quarterly rate resets as discussed in Note 1, Summary of Significant Accounting Policies, Deferred Energy Accounting, of the Notes to the Financial Statements in the 2012 Form 10-K. | |||||||||||||||
Summary of Rate Filings | ' | |||||||||||||||
The September PUCN order includes the following changes in revenue requirement (dollars in millions): | ||||||||||||||||
Effective | Authorized | Present | $ Change in | |||||||||||||
Date | Revenue | Revenue | Revenue | |||||||||||||
Requirement | Requirement | Requirement | ||||||||||||||
Revenue Requirement Subject To Change: | ||||||||||||||||
REPR (1) | Oct. 2013 | $ | 42.3 | $ | 44.4 | $ | (2.1 | ) | ||||||||
TRED (1) | Oct. 2013 | 7.4 | 6.3 | 1.1 | ||||||||||||
EEPR Base (1) | Oct. 2013 | 6 | 5.6 | 0.4 | ||||||||||||
EEPR Amortization (1) | Oct. 2013 | (2.1 | ) | 1.8 | (3.9 | ) | ||||||||||
EEIR Base (2) | Oct. 2013 | 5.5 | 4.7 | 0.8 | ||||||||||||
EEIR Amortization (3) | Oct. 2013 | (3.7 | ) | 1.9 | (5.6 | ) | ||||||||||
Total Revenue Requirement | $ | 55.4 | $ | 64.7 | $ | (9.3 | ) | |||||||||
-1 | Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected. As a result, such programs have no effect on Operating or Net Income. | |||||||||||||||
-2 | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if SPPC earns in excess of its authorized ROR. In future periods, SPPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. | |||||||||||||||
-3 | Amounts related to the EEIR revenue disallowance, discussed above, are required to be refunded back to ratepayers through negative EEIR amortization; however, while these amounts will affect cash flow, they will not have a future impact on revenues, as the disallowance was recognized as of September 30, 2013. | |||||||||||||||
The September PUCN order includes the following changes in revenue requirement (dollars in millions): | ||||||||||||||||
Effective | Authorized | Present | $ Change in | |||||||||||||
Date | Revenue | Revenue | Revenue | |||||||||||||
Requirement | Requirement | Requirement | ||||||||||||||
Revenue Requirement Subject To Change: | ||||||||||||||||
REPR (1) | Oct. 2013 | $ | 28.4 | $ | 38.7 | $ | (10.3 | ) | ||||||||
TRED (1) | Oct. 2013 | 15.7 | 15.9 | (0.2 | ) | |||||||||||
EEPR Base (1) | Oct. 2013 | 45.9 | 32.6 | 13.3 | ||||||||||||
EEPR Amortization (1) | Oct. 2013 | (29.9 | ) | 9 | (38.9 | ) | ||||||||||
EEIR Base (2) | Oct. 2013 | 15.1 | 10.6 | 4.5 | ||||||||||||
EEIR Amortization (3) | Oct. 2013 | (17.2 | ) | 10.7 | (27.9 | ) | ||||||||||
Total Revenue Requirement | $ | 58 | $ | 117.5 | $ | (59.5 | ) | |||||||||
(1) | Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected. As a result, such programs have no effect on Operating or Net Income. | |||||||||||||||
(2) | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if NPC earns in excess of its authorized ROR. In future periods, NPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. | |||||||||||||||
(3) | Amounts related to the EEIR revenue disallowance, discussed above, are required to be refunded back to ratepayers through negative EEIR amortization; however, while these amounts will affect cash flow, they will not have a future impact on revenues, as the disallowance was recognized as of September 30, 2013. |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | ' | ||||||||||||||||||||||||||||||||||||
NVE’s, NPC’s and SPPC’s long-term debt consists of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Long-Term Debt: | Stated Rate | Maturity Date | Consolidated | NVE Holding Co. | NPC | SPPC | Consolidated | NVE Holding Co. | NPC | SPPC | |||||||||||||||||||||||||||
Secured Debt | |||||||||||||||||||||||||||||||||||||
General and Refunding Mortgage Securities | |||||||||||||||||||||||||||||||||||||
NPC Series L | 5.875 | % | 2015 | $ | 250,000 | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | — | ||||||||||||||||||
NPC Series M | 5.95 | % | 2016 | 210,000 | — | 210,000 | — | 210,000 | — | 210,000 | — | ||||||||||||||||||||||||||
NPC Series N | 6.65 | % | 2036 | 370,000 | — | 370,000 | — | 370,000 | — | 370,000 | — | ||||||||||||||||||||||||||
NPC Series O | 6.5 | % | 2018 | 325,000 | — | 325,000 | — | 325,000 | — | 325,000 | — | ||||||||||||||||||||||||||
NPC Series R | 6.75 | % | 2037 | 350,000 | — | 350,000 | — | 350,000 | — | 350,000 | — | ||||||||||||||||||||||||||
NPC Series S | 6.5 | % | 2018 | 500,000 | — | 500,000 | — | 500,000 | — | 500,000 | — | ||||||||||||||||||||||||||
NPC Series U | 7.375 | % | 2014 | 125,000 | — | 125,000 | — | 125,000 | — | 125,000 | — | ||||||||||||||||||||||||||
NPC Series V | 7.125 | % | 2019 | 500,000 | — | 500,000 | — | 500,000 | — | 500,000 | — | ||||||||||||||||||||||||||
NPC Series X | 5.375 | % | 2040 | 250,000 | — | 250,000 | — | 250,000 | — | 250,000 | — | ||||||||||||||||||||||||||
NPC Series Y | 5.45 | % | 2041 | 250,000 | — | 250,000 | — | 250,000 | — | 250,000 | — | ||||||||||||||||||||||||||
SPPC Series M | 6 | % | 2016 | 450,000 | — | — | 450,000 | 450,000 | — | — | 450,000 | ||||||||||||||||||||||||||
SPPC Series P | 6.75 | % | 2037 | 251,742 | — | — | 251,742 | 251,742 | — | — | 251,742 | ||||||||||||||||||||||||||
SPPC Series Q | 5.45 | % | 2013 | — | — | — | — | 250,000 | — | — | 250,000 | ||||||||||||||||||||||||||
SPPC Series T | 3.375 | % | 2023 | 250,000 | — | — | 250,000 | — | — | — | — | ||||||||||||||||||||||||||
Variable Rate Debt (Secured by General and Refunding Mortgage Securities) | |||||||||||||||||||||||||||||||||||||
NPC IDRB Series 2000A | 2020 | — | — | — | — | 98,100 | — | 98,100 | — | ||||||||||||||||||||||||||||
NPC PCRB Series 2006 | 2036 | 37,700 | — | 37,700 | — | 37,700 | — | 37,700 | — | ||||||||||||||||||||||||||||
NPC PCRB Series 2006A | 2032 | 37,975 | — | 37,975 | — | 37,975 | — | 37,975 | — | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006A | 2031 | 58,200 | — | — | 58,200 | 58,200 | — | — | 58,200 | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006B | 2036 | 75,000 | — | — | 75,000 | 75,000 | — | — | 75,000 | ||||||||||||||||||||||||||||
SPPC PCRB Series 2006C | 2036 | 81,475 | — | — | 81,475 | 81,475 | — | — | 81,475 | ||||||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||||||||||||||
NVE Senior Notes | 6.25 | % | 2020 | 315,000 | 315,000 | — | — | 315,000 | 315,000 | — | — | ||||||||||||||||||||||||||
NVE Term Loan | 2.56 | % | 2014 | 195,000 | 195,000 | — | — | 195,000 | 195,000 | — | — | ||||||||||||||||||||||||||
Obligations under capital leases | 38,415 | — | 36,571 | 1,844 | 44,258 | — | 42,908 | 1,350 | |||||||||||||||||||||||||||||
Unamortized bond premium and discount (net) | 759 | — | (9,080 | ) | 9,839 | 1,631 | — | (9,827 | ) | 11,458 | |||||||||||||||||||||||||||
Current maturities | (129,457 | ) | — | (129,186 | ) | (271 | ) | (356,283 | ) | — | (106,048 | ) | (250,235 | ) | |||||||||||||||||||||||
Total Long-Term Debt | $ | 4,791,809 | $ | 510,000 | $ | 3,103,980 | $ | 1,177,829 | $ | 4,669,798 | $ | 510,000 | $ | 3,230,808 | $ | 928,990 | |||||||||||||||||||||
RETIREMENT_PLAN_AND_POSTRETIRE1
RETIREMENT PLAN AND POST-RETIREMENT BENEFITS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||
This summary is based on a December 31, measurement date (dollars in thousands): | ||||||||||||||||
NVE | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5,132 | $ | 4,406 | $ | 660 | $ | 595 | ||||||||
Interest cost | 9,303 | 10,228 | 1,677 | 1,905 | ||||||||||||
Expected return on plan assets | (12,708 | ) | (12,447 | ) | (1,687 | ) | (1,563 | ) | ||||||||
Amortization of prior service cost | (720 | ) | (724 | ) | (952 | ) | (987 | ) | ||||||||
Amortization of net loss | 4,797 | 3,473 | 890 | 731 | ||||||||||||
Net periodic benefit cost | $ | 5,804 | $ | 4,936 | $ | 588 | $ | 681 | ||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 15,396 | $ | 13,220 | $ | 1,980 | $ | 1,787 | ||||||||
Interest cost | 27,911 | 30,684 | 5,030 | 5,715 | ||||||||||||
Expected return on plan assets | (38,124 | ) | (37,341 | ) | (5,060 | ) | (4,690 | ) | ||||||||
Amortization of prior service cost | (2,162 | ) | (2,173 | ) | (2,857 | ) | (2,961 | ) | ||||||||
Amortization of net loss | 14,391 | 10,418 | 2,671 | 2,193 | ||||||||||||
Net periodic benefit cost | $ | 17,412 | $ | 14,808 | $ | 1,764 | $ | 2,044 | ||||||||
The average percentage of NVE net periodic costs capitalized during 2013 and 2012 was 34.5% and 35.0% respectively. | ||||||||||||||||
NPC | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 2,761 | $ | 2,358 | $ | 389 | $ | 350 | ||||||||
Interest cost | 4,453 | 4,881 | 556 | 602 | ||||||||||||
Expected return on plan assets | (6,270 | ) | (6,237 | ) | (631 | ) | (592 | ) | ||||||||
Amortization of prior service cost | (453 | ) | (456 | ) | (23 | ) | 229 | |||||||||
Amortization of net loss | 2,117 | 1,363 | 289 | 221 | ||||||||||||
Net periodic benefit cost | $ | 2,608 | $ | 1,909 | $ | 580 | $ | 810 | ||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 8,283 | $ | 7,072 | $ | 1,167 | $ | 1,050 | ||||||||
Interest cost | 13,358 | 14,643 | 1,667 | 1,807 | ||||||||||||
Expected return on plan assets | (18,810 | ) | (18,711 | ) | (1,892 | ) | (1,775 | ) | ||||||||
Amortization of prior service cost | (1,358 | ) | (1,367 | ) | (69 | ) | 687 | |||||||||
Amortization of net loss | 6,351 | 4,089 | 867 | 662 | ||||||||||||
Net periodic benefit cost | $ | 7,824 | $ | 5,726 | $ | 1,740 | $ | 2,431 | ||||||||
The average percentage of NPC net periodic costs capitalized during 2013 and 2012 was 35.9% and 36.9% respectively. | ||||||||||||||||
SPPC | ||||||||||||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Three Months Ended September 30 | For the Three Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 1,926 | $ | 1,695 | $ | 251 | $ | 227 | ||||||||
Interest cost | 4,558 | 5,043 | 1,104 | 1,283 | ||||||||||||
Expected return on plan assets | (6,162 | ) | (5,937 | ) | (1,022 | ) | (941 | ) | ||||||||
Amortization of prior service cost | (277 | ) | (277 | ) | (933 | ) | (1,220 | ) | ||||||||
Amortization of net loss | 2,501 | 2,026 | 592 | 504 | ||||||||||||
Net periodic benefit cost | $ | 2,546 | $ | 2,550 | $ | (8 | ) | $ | (147 | ) | ||||||
Pension Benefits | Other Post-Retirement Benefits | |||||||||||||||
For the Nine Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5,778 | $ | 5,086 | $ | 752 | $ | 682 | ||||||||
Interest cost | 13,676 | 15,130 | 3,310 | 3,848 | ||||||||||||
Expected return on plan assets | (18,486 | ) | (17,813 | ) | (3,065 | ) | (2,823 | ) | ||||||||
Amortization of prior service cost | (831 | ) | (831 | ) | (2,798 | ) | (3,658 | ) | ||||||||
Amortization of net loss | 7,502 | 6,078 | 1,777 | 1,511 | ||||||||||||
Net periodic benefit cost | $ | 7,639 | $ | 7,650 | $ | (24 | ) | $ | (440 | ) | ||||||
The average percentage of SPPC net periodic costs capitalized during 2013 and 2012 and was 35.6% and 35.1%, respectively. |
EARNINGS_PER_SHARE_NVE_Tables
EARNINGS PER SHARE (NVE) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic EPS | ||||||||||||||||
Numerator ($000) | ||||||||||||||||
Net Income | $ | 187,234 | $ | 223,170 | $ | 271,942 | $ | 304,782 | ||||||||
Denominator | ||||||||||||||||
Weighted average number of common shares outstanding | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||||||||||
Per Share Amounts | ||||||||||||||||
Net Income per share - basic | $ | 0.79 | $ | 0.95 | $ | 1.16 | $ | 1.29 | ||||||||
Diluted EPS | ||||||||||||||||
Numerator ($000) | ||||||||||||||||
Net Income | $ | 187,234 | $ | 223,170 | $ | 271,942 | $ | 304,782 | ||||||||
Denominator(1) | ||||||||||||||||
Weighted average number of shares outstanding before dilution | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||||||||||
Stock options | 61,927 | 39,256 | 46,537 | 37,592 | ||||||||||||
Non-Employee Director stock plan | 190,705 | 166,829 | 185,337 | 160,257 | ||||||||||||
Employee stock purchase plan | 4,149 | 6,742 | 5,831 | 6,785 | ||||||||||||
Restricted Shares | 412,000 | 584,750 | 487,667 | 533,750 | ||||||||||||
Performance Shares | 1,358,423 | 1,362,753 | 1,191,734 | 1,125,272 | ||||||||||||
Diluted Weighted Average Number of Shares | 237,605,514 | 238,121,732 | 237,339,039 | 237,850,530 | ||||||||||||
Per Share Amounts | ||||||||||||||||
Net income per share - diluted | $ | 0.79 | $ | 0.94 | $ | 1.15 | $ | 1.28 | ||||||||
-1 | The denominator does not include stock equivalents for options issued under the non-qualified stock option plan due to conversion prices being higher than market prices for the periods ending September 30, 2012. If the conditions for conversion were met under this plan, 327,503 and 329,382 shares, would be included for the three and nine months ended September 30, 2012, respectively. |
COMMON_STOCK_AND_OTHER_PAIDIN_1
COMMON STOCK AND OTHER PAID-IN CAPITAL (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Equity [Abstract] | ' | ||||||
Dividend Declarations | ' | ||||||
The following dividend declarations were made by the BOD of NVE: | |||||||
Declaration Date | Amount | Payable Date | Shareholders of Record Date | ||||
February 7, 2013 | $0.19 | March 20, 2013 | March 5, 2013 | ||||
May 8, 2013 | $0.19 | June 19, 2013 | June 4, 2013 | ||||
August 1, 2013 | $0.19 | September 18, 2013 | September 3, 2013 | ||||
November 6, 2013 | $0.19 | December 18, 2013 | December 3, 2013 |
MERGER_RELATED_ACTIVITIES_Deta
MERGER RELATED ACTIVITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger related costs | $7,857,000 | $0 | $21,409,000 | $0 |
Nevada Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger related costs | 5,620,000 | 0 | 14,487,000 | 0 |
Sierra Pacific Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger related costs | 2,008,000 | 0 | 5,528,000 | 0 |
MidAmerican Merger | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger Agreement Date | ' | ' | 'May 29, 2013 | ' |
Expected Merger Closing Date | ' | ' | 'in late 2013 or first quarter of 2014 | ' |
Merger Closing Conditions | ' | ' | ' the approval of the MidAmerican Merger Agreement by the holders of a majority of the outstanding shares of NVE common stock. On September 25, 2013, NVEbs stockholders approved the MidAmerican Merger Agreement. Consequently, this closing condition has been satisfied; the receipt of regulatory approvals and other consents required to consummate the MidAmerican Merger, including, among others, approvals from the PUCN and the FERC on terms and conditions specified in the MidAmerican Merger Agreement (in July 2013, filings were made with the PUCN and FERC. See Note 4, Regulatory Actions, for further details of these filings); the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. On JulyB 22, 2013, NVE was advised that the Department of Justice and the U.S. Federal Trade Commission had terminated the applicable waiting period under the Hart-Scott-Rodino Act.B Consequently, the closing condition with respect to the Hart-Scott-Rodino Act has been satisfied; the absence of the occurrence of a company material adverse effect (as defined in the MidAmerican Merger Agreement) after the date of the MidAmerican Merger Agreement; and other customary closing conditions. | ' |
Merger Termination Right | ' | ' | 'The MidAmerican Merger Agreement contains certain termination rights and fees for both NVE and MEHC. In the event of termination of the MidAmerican Merger under certain circumstances, NVE may be obligated to pay MEHC a termination fee of up to $169.7 million. | ' |
Merger Termination Fee | 169,700,000 | ' | 169,700,000 | ' |
Merger Share Exchange Ratio | ' | ' | $23.75 | ' |
Shareholder approval date | 'September 25, 2013 | ' | 'September 25, 2013 | ' |
Filing Date of PUCN filing | ' | ' | 'July 2013 | ' |
Filing Date of FERC filing | ' | ' | 'July 2013 | ' |
Satisfaction date of Hart Scott Rodino Condition | ' | ' | 'July 22, 2013 | ' |
Change of Control Description of Debt | ' | ' | 'As a result, NVE, NPC and SPPC will be required to offer to purchase approximately $315.0 million, $3.1 billion, and $951.7 million, respectively, of debt at 101% of par within 10 days after the MidAmerican Merger closing. | ' |
Merger Restrictions | ' | ' | 'The MidAmerican Merger Agreement contains customary representations, warranties and covenants for both NVE and MEHC. These covenants include an obligation for us, subject to certain exceptions, to conduct our business in a manner substantially consistent with our current practice.B In addition, the covenants contain several restrictions that apply unless MEHCbs consent is received, including limitations on making certain business acquisitions, limitations on our total capital spending, limitations on the extent to which we may obtain financing through long-term debt or equity issuances and limitations on increasing our common stock dividend payout. | ' |
Merger Description | ' | ' | 'On MayB 29, 2013, NVE entered into the MidAmerican Merger Agreement.B The MidAmerican Merger Agreement provides for the merger of Silver Merger Sub, Inc. with and into NVE, with NVE continuing as the surviving corporation.B Once merged, NVE will become an indirect wholly owned subsidiary of MEHC.B The closing is expected to occur in late 2013 or during the first quarter of 2014. | ' |
MidAmerican Merger | Parent Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Debt required to be tendered | 315,000,000 | ' | 315,000,000 | ' |
Average interest rate of debt required to be tendered | ' | ' | 6.25% | ' |
MidAmerican Merger | Nevada Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Debt required to be tendered | 3,100,000,000 | ' | 3,100,000,000 | ' |
Average interest rate of debt required to be tendered | ' | ' | 6.42% | ' |
MidAmerican Merger | Sierra Pacific Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Debt required to be tendered | $951,700,000 | ' | $951,700,000 | ' |
Average interest rate of debt required to be tendered | ' | ' | 5.51% | ' |
One Company Merger | Nevada Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger Description | ' | ' | 'NPC and SPPC filed a joint application with the PUCN to merge SPPC into NPC (bOne Company Mergerb) and to call the surviving entity NVEOC. The One Company Merger is subject to approval by the PUCN and FERC. | ' |
One Company Merger | Sierra Pacific Power Company | ' | ' | ' | ' |
Merger Related Activities [Line Items] | ' | ' | ' | ' |
Merger Description | ' | ' | 'NPC and SPPC filed a joint application with the PUCN to merge SPPC into NPC (bOne Company Mergerb) and to call the surviving entity NVEOC. The One Company Merger is subject to approval by the PUCN and FERC. | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Revenues | $1,013,151 | $1,026,488 | $2,329,011 | $2,378,606 |
Energy Costs: | ' | ' | ' | ' |
Fuel for power generation | 217,954 | 171,316 | 554,181 | 400,936 |
Purchased power | 205,970 | 205,686 | 498,141 | 486,894 |
Gas purchased for resale | 7,383 | 5,382 | 62,277 | 46,491 |
Deferred energy | -55,270 | -29,036 | -221,022 | -30,285 |
Energy efficiency program costs | 16,042 | 32,584 | 38,486 | 76,609 |
Regulatory Disallowances | 17,335 | 0 | 17,335 | 0 |
Total Costs | 409,414 | 385,932 | 949,398 | 980,645 |
Gross Margin | 603,737 | 640,556 | 1,379,613 | 1,397,961 |
Merger related costs | 7,857 | 0 | 21,409 | 0 |
Other Cost and Expense, Operating | 106,068 | 100,108 | 317,538 | 307,080 |
Utilities Operating Expense, Maintenance | 17,176 | 19,014 | 66,128 | 76,190 |
Depreciation, Depletion and Amortization, Nonproduction | 96,801 | 94,512 | 291,687 | 281,690 |
Taxes, Other | 14,214 | 15,682 | 46,536 | 44,457 |
OPERATING INCOME | 361,621 | 411,240 | 636,315 | 688,544 |
Unallocated Amount to Segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Revenues | 3 | 4 | 10 | 12 |
Energy Costs: | ' | ' | ' | ' |
Total Costs | 0 | 0 | 0 | 0 |
Gross Margin | 3 | 4 | 10 | 12 |
Merger related costs | 229 | ' | 1,394 | ' |
Other Cost and Expense, Operating | 830 | 608 | 2,747 | 2,382 |
Taxes, Other | 57 | 45 | 318 | 282 |
OPERATING INCOME | -1,113 | -649 | -4,449 | -2,652 |
NPC Electric | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Revenues | 786,142 | 802,334 | 1,695,129 | 1,751,165 |
Energy Costs: | ' | ' | ' | ' |
Fuel for power generation | 163,127 | 123,992 | 412,904 | 285,799 |
Purchased power | 172,582 | 171,687 | 383,386 | 388,494 |
Deferred energy | -45,381 | -22,685 | -154,484 | -15,461 |
Energy efficiency program costs | 13,998 | 28,492 | 32,807 | 65,466 |
Regulatory Disallowances | 11,866 | ' | 11,866 | ' |
Total Costs | 316,192 | 301,486 | 686,479 | 724,298 |
Gross Margin | 469,950 | 500,848 | 1,008,650 | 1,026,867 |
Merger related costs | 5,620 | ' | 14,487 | ' |
Other Cost and Expense, Operating | 70,844 | 65,372 | 208,336 | 200,484 |
Utilities Operating Expense, Maintenance | 11,208 | 12,533 | 45,172 | 52,594 |
Depreciation, Depletion and Amortization, Nonproduction | 68,849 | 66,975 | 207,915 | 201,096 |
Taxes, Other | 8,213 | 9,743 | 27,804 | 26,793 |
OPERATING INCOME | 305,216 | 346,225 | 504,936 | 545,900 |
SPPC Total | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Revenues | 227,006 | 224,150 | 633,872 | 627,429 |
Energy Costs: | ' | ' | ' | ' |
Fuel for power generation | 54,827 | 47,324 | 141,277 | 115,137 |
Purchased power | 33,388 | 33,999 | 114,755 | 98,400 |
Gas purchased for resale | 7,383 | 5,382 | 62,277 | 46,491 |
Deferred energy | -9,889 | -6,351 | -66,538 | -14,824 |
Energy efficiency program costs | 2,044 | 4,092 | 5,679 | 11,143 |
Regulatory Disallowances | 5,469 | ' | 5,469 | ' |
Total Costs | 93,222 | 84,446 | 262,919 | 256,347 |
Gross Margin | 133,784 | 139,704 | 370,953 | 371,082 |
Merger related costs | 2,008 | ' | 5,528 | ' |
Other Cost and Expense, Operating | 34,394 | 34,128 | 106,455 | 104,214 |
Utilities Operating Expense, Maintenance | 5,968 | 6,481 | 20,956 | 23,596 |
Depreciation, Depletion and Amortization, Nonproduction | 27,952 | 27,537 | 83,772 | 80,594 |
Taxes, Other | 5,944 | 5,894 | 18,414 | 17,382 |
OPERATING INCOME | 57,518 | 65,664 | 135,828 | 145,296 |
SPPC Electric | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Electric Domestic Regulated Revenue | 213,463 | 212,073 | 560,392 | 549,886 |
Energy Costs: | ' | ' | ' | ' |
Fuel for power generation | 54,827 | 47,324 | 141,277 | 115,137 |
Purchased power | 33,388 | 33,999 | 114,755 | 98,400 |
Deferred energy | -7,925 | -5,498 | -44,223 | -13,854 |
Energy efficiency program costs | 2,044 | 4,092 | 5,679 | 11,143 |
Regulatory Disallowances | 5,469 | ' | 5,469 | ' |
Total Costs | 87,803 | 79,917 | 222,957 | 210,826 |
Gross Margin | 125,660 | 132,156 | 337,435 | 339,060 |
SPPC Gas | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Gas Domestic Regulated Revenue | 13,543 | 12,077 | 73,480 | 77,543 |
Energy Costs: | ' | ' | ' | ' |
Gas purchased for resale | 7,383 | 5,382 | 62,277 | 46,491 |
Deferred energy | -1,964 | -853 | -22,315 | -970 |
Total Costs | 5,419 | 4,529 | 39,962 | 45,521 |
Gross Margin | $8,124 | $7,548 | $33,518 | $32,022 |
REGULATORY_ACTIONS_Deferred_En
REGULATORY ACTIONS, Deferred Energy (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Nevada Deferred Energy | ' | ' | |
Cumulative balance authorized in DEAA | ($152,990) | ' | |
Amortization | 111,977 | ' | |
Deferred Energy Under Collection | 118,397 | [1] | ' |
Nevada Deferred Energy Balance at period end | 77,384 | ' | |
Reinstatement of deferred energy (effective 6/07, 10 years) | 89,906 | ' | |
Total Deferred Energy | 167,290 | ' | |
Deferred Assets | ' | ' | |
Deferred energy costs current | 82,235 | 0 | |
Deferred Energy Costs Non Current | 85,055 | 87,072 | |
Liabilities, Current [Abstract] | ' | ' | |
Deferred energy | 0 | 136,865 | |
NPC Electric | ' | ' | |
Nevada Deferred Energy | ' | ' | |
Cumulative balance authorized in DEAA | -102,227 | ' | |
Amortization | 69,288 | ' | |
Deferred Energy Under Collection | 95,465 | [1] | ' |
Nevada Deferred Energy Balance at period end | 62,526 | ' | |
Reinstatement of deferred energy (effective 6/07, 10 years) | 89,906 | ' | |
Total Deferred Energy | 152,432 | ' | |
Deferred Assets | ' | ' | |
Deferred energy costs current | 68,391 | ' | |
Deferred Energy Costs Non Current | 84,041 | ' | |
SPPC Electric | ' | ' | |
Nevada Deferred Energy | ' | ' | |
Cumulative balance authorized in DEAA | -32,693 | ' | |
Amortization | 23,695 | ' | |
Deferred Energy Under Collection | 19,697 | [1] | ' |
Nevada Deferred Energy Balance at period end | 10,699 | ' | |
Reinstatement of deferred energy (effective 6/07, 10 years) | 0 | ' | |
Total Deferred Energy | 10,699 | ' | |
Deferred Assets | ' | ' | |
Deferred Energy Electric Current | 10,322 | ' | |
Deferred Energy Costs Non Current | 377 | ' | |
SPPC Gas | ' | ' | |
Nevada Deferred Energy | ' | ' | |
Cumulative balance authorized in DEAA | -18,070 | ' | |
Amortization | 18,994 | ' | |
Deferred Energy Under Collection | 3,235 | [1] | ' |
Nevada Deferred Energy Balance at period end | 4,159 | ' | |
Reinstatement of deferred energy (effective 6/07, 10 years) | 0 | ' | |
Total Deferred Energy | 4,159 | ' | |
Deferred Assets | ' | ' | |
Deferred Energy Gas Current | 3,522 | ' | |
Deferred Energy Costs Gas Non Current | $637 | ' | |
[1] | These deferred energy under collections are subject to quarterly rate resets as discussed in Note 1, Summary of Significant Accounting Policies, Deferred Energy Accounting, of the Notes to the Financial Statements in the 2012 Form 10-K. |
REGULATORY_ACTIONS_Merger_Rela
REGULATORY ACTIONS, Merger Related and Financing Application (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Nevada Power Company | ' |
Merger Related Activities [Line Items] | ' |
Financing Application Date | 'May 2013 |
New Authority Requested | $705,000,000 |
Amount Of Requested New Debt Consolidated Authority | 1,100,000,000 |
Amount Of Requested Refinance Consolidated Authority | 1,500,000,000 |
Amount Of Existing Revolver | 1,300,000,000 |
Additional Authority Requested If Extended | 255,000,000 |
Sierra Pacific Power Company | ' |
Merger Related Activities [Line Items] | ' |
Financing Application Date | 'May 2013 |
New Authority Requested | 705,000,000 |
Amount Of Requested New Debt Consolidated Authority | 1,100,000,000 |
Amount Of Requested Refinance Consolidated Authority | 1,500,000,000 |
Amount Of Existing Revolver | $600,000,000 |
MidAmerican Merger | Nevada Power Company | ' |
Merger Related Activities [Line Items] | ' |
Filing Date of PUCN filing | 'July 2013 |
Filing Date of FERC filing | 'July 12, 2013 |
Expected Authorization Date FERC | 'December 19, 2013 |
Expected Authorization Date PUCN | 'January 2014 |
Expected Hearing Date | 1-Nov-13 |
Days To Respond | '180 days |
AdditionalDaysToRespond | '180 days |
MidAmerican Merger | Sierra Pacific Power Company | ' |
Merger Related Activities [Line Items] | ' |
Filing Date of PUCN filing | 'July 2013 |
Filing Date of FERC filing | 'July 12, 2013 |
Expected Authorization Date FERC | 'December 19, 2013 |
Expected Authorization Date PUCN | 'January 2014 |
Expected Hearing Date | 1-Nov-13 |
Days To Respond | '180 days |
AdditionalDaysToRespond | '180 days |
One Company Merger | Nevada Power Company | ' |
Merger Related Activities [Line Items] | ' |
Filing Date of PUCN filing | 'May 2013 |
Filing Date of FERC filing | 'May 2013 |
Expected Hearing Date | 1-Feb-14 |
One Company Merger | Sierra Pacific Power Company | ' |
Merger Related Activities [Line Items] | ' |
Filing Date of PUCN filing | 'May 2013 |
Filing Date of FERC filing | 'May 2013 |
Expected Hearing Date | 1-Feb-14 |
REGULATORY_ACTIONS_Summary_of_
REGULATORY ACTIONS, Summary of Regulatory Actions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | $17,335,000 | $0 | $17,335,000 | $0 | ||
Nevada Power Company | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Authorized Revenue Requirement | 58,000,000 | ' | 58,000,000 | ' | ||
Present Revenue Requirement | 117,500,000 | ' | 117,500,000 | ' | ||
$ Change in Revenue Requirement | -59,500,000 | ' | -59,500,000 | ' | ||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 11,866,000 | 0 | 11,866,000 | 0 | ||
Nevada Power Company | DEAA [Member] | ' | ' | ' | ' | ||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 1,100,000 | ' | 1,100,000 | ' | ||
Nevada Power Company | REPR [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 28,400,000 | [1] | ' | 28,400,000 | [1] | ' |
Present Revenue Requirement | 38,700,000 | [1] | ' | 38,700,000 | [1] | ' |
$ Change in Revenue Requirement | -10,300,000 | [1] | ' | -10,300,000 | [1] | ' |
Nevada Power Company | TRED [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 15,700,000 | [1] | ' | 15,700,000 | [1] | ' |
Present Revenue Requirement | 15,900,000 | [1] | ' | 15,900,000 | [1] | ' |
$ Change in Revenue Requirement | -200,000 | [1] | ' | -200,000 | [1] | ' |
Nevada Power Company | EEPR Base [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 45,900,000 | [1] | ' | 45,900,000 | [1] | ' |
Present Revenue Requirement | 32,600,000 | [1] | ' | 32,600,000 | [1] | ' |
$ Change in Revenue Requirement | 13,300,000 | [1] | ' | 13,300,000 | [1] | ' |
Nevada Power Company | EEPR Amortization [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | -29,900,000 | [1] | ' | -29,900,000 | [1] | ' |
Present Revenue Requirement | 9,000,000 | [1] | ' | 9,000,000 | [1] | ' |
$ Change in Revenue Requirement | -38,900,000 | [1] | ' | -38,900,000 | [1] | ' |
Nevada Power Company | EEIR Base [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [2] | ' | |
Authorized Revenue Requirement | 15,100,000 | [2] | ' | 15,100,000 | [2] | ' |
Present Revenue Requirement | 10,600,000 | [2] | ' | 10,600,000 | [2] | ' |
$ Change in Revenue Requirement | 4,500,000 | [2] | ' | 4,500,000 | [2] | ' |
Nevada Power Company | EEIR Amortization [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [3] | ' | |
Authorized Revenue Requirement | -17,200,000 | [3] | ' | -17,200,000 | [3] | ' |
Present Revenue Requirement | 10,700,000 | [3] | ' | 10,700,000 | [3] | ' |
$ Change in Revenue Requirement | -27,900,000 | [3] | ' | -27,900,000 | [3] | ' |
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 10,800,000 | ' | 10,800,000 | ' | ||
Regulatory reserve | 11,200,000 | ' | 11,200,000 | ' | ||
Sierra Pacific Power Company | ' | ' | ' | ' | ||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 5,469,000 | 0 | 5,469,000 | 0 | ||
SPPC Electric | ' | ' | ' | ' | ||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 5,469,000 | ' | 5,469,000 | ' | ||
SPPC Electric | GRC [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'January 1, 2014 | ' | ||
SPPC Electric | Sierra Pacific Power Company | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Authorized Revenue Requirement | 55,400,000 | ' | 55,400,000 | ' | ||
Present Revenue Requirement | 64,700,000 | ' | 64,700,000 | ' | ||
$ Change in Revenue Requirement | -9,300,000 | ' | -9,300,000 | ' | ||
SPPC Electric | Sierra Pacific Power Company | DEAA [Member] | ' | ' | ' | ' | ||
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 100,000 | ' | 100,000 | ' | ||
SPPC Electric | Sierra Pacific Power Company | REPR [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 42,300,000 | [1] | ' | 42,300,000 | [1] | ' |
Present Revenue Requirement | 44,400,000 | [1] | ' | 44,400,000 | [1] | ' |
$ Change in Revenue Requirement | -2,100,000 | [1] | ' | -2,100,000 | [1] | ' |
SPPC Electric | Sierra Pacific Power Company | TRED [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 7,400,000 | [1] | ' | 7,400,000 | [1] | ' |
Present Revenue Requirement | 6,300,000 | [1] | ' | 6,300,000 | [1] | ' |
$ Change in Revenue Requirement | 1,100,000 | [1] | ' | 1,100,000 | [1] | ' |
SPPC Electric | Sierra Pacific Power Company | EEPR Base [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | 6,000,000 | [1] | ' | 6,000,000 | [1] | ' |
Present Revenue Requirement | 5,600,000 | [1] | ' | 5,600,000 | [1] | ' |
$ Change in Revenue Requirement | 400,000 | [1] | ' | 400,000 | [1] | ' |
SPPC Electric | Sierra Pacific Power Company | EEPR Amortization [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [1] | ' | |
Authorized Revenue Requirement | -2,100,000 | [1] | ' | -2,100,000 | [1] | ' |
Present Revenue Requirement | 1,800,000 | [1] | ' | 1,800,000 | [1] | ' |
$ Change in Revenue Requirement | -3,900,000 | [1] | ' | -3,900,000 | [1] | ' |
SPPC Electric | Sierra Pacific Power Company | EEIR Base [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [4] | ' | |
Authorized Revenue Requirement | 5,500,000 | [4] | ' | 5,500,000 | [4] | ' |
Present Revenue Requirement | 4,700,000 | [4] | ' | 4,700,000 | [4] | ' |
$ Change in Revenue Requirement | 800,000 | [4] | ' | 800,000 | [4] | ' |
SPPC Electric | Sierra Pacific Power Company | EEIR Amortization [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'Oct. 2013 | [3] | ' | |
Authorized Revenue Requirement | -3,700,000 | [3] | ' | -3,700,000 | [3] | ' |
Present Revenue Requirement | 1,900,000 | [3] | ' | 1,900,000 | [3] | ' |
$ Change in Revenue Requirement | -5,600,000 | [3] | ' | -5,600,000 | [3] | ' |
Energy And Gas Related Regulatory Filings [Abstract] | ' | ' | ' | ' | ||
Regulatory Disallowances | 5,500,000 | ' | 5,500,000 | ' | ||
Regulatory reserve | 4,000,000 | ' | 4,000,000 | ' | ||
SPPC Gas | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
$ Change in Revenue Requirement | ($200,000) | ' | ($200,000) | ' | ||
SPPC Gas | GRC [Member] | ' | ' | ' | ' | ||
Revenue Requirement Subject To Change: | ' | ' | ' | ' | ||
Effective Date | ' | ' | 'January 1, 2014 | ' | ||
[1] | Represents programs that require the Utilities to collect funds from customers for which the related costs are equal to the revenues collected. As a result, such programs have no effect on Operating or Net Income. | |||||
[2] | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if NPC earns in excess of its authorized ROR. In future periods, NPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. | |||||
[3] | Amounts related to the EEIR revenue disallowance, discussed above, are required to be refunded back to ratepayers through negative EEIR amortization; however, while these amounts will affect cash flow, they will not have a future impact on revenues, as the disallowance was recognized as of September 30, 2013. | |||||
[4] | The authorized revenue requirement for EEIR Base may be subject to refund based on the PUCN order discussed above if SPPC earns in excess of its authorized ROR. In future periods, SPPC may record a provision against revenues to the extent its estimated ROR exceeds its authorized ROR. |
REGULATORY_General_Rate_Cases_
REGULATORY, General Rate Cases (Details) (GRC [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
SPPC Electric | ' |
Summary of General Rate Case [Line Items] | ' |
Anticipated Effective Date of Rate Filing | 'January 1, 2014 |
Requested Increase Decrease In General Rates | ($4.70) |
Percentage Overall Increase Decrease In General Rates | -0.70% |
Requested Rate Of Return | 7.74% |
Requested Return On Equity | 10.40% |
General Rate Case Hearing Date | 'October 2013 |
SPPC Gas | ' |
Summary of General Rate Case [Line Items] | ' |
Anticipated Effective Date of Rate Filing | 'January 1, 2014 |
Requested Increase Decrease In General Rates | $6 |
Percentage Overall Increase Decrease In General Rates | 6.10% |
Requested Rate Of Return | 7.72% |
Requested Return On Equity | 10.35% |
General Rate Case Hearing Date | 'October 2013 |
REGULATORY_ACTIONS_FERC_Matter
REGULATORY ACTIONS, FERC Matters (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Nevada Power Company | FERC Filing 2012 [Member] | ' |
FERC Matters [Abstract] | ' |
Transmission Rate Case Filing Date | 'October 2012 |
Anticipated Effective Date of Rate Filing | 'June 1, 2013 |
Nevada Power Company | FERC Filing 2013 [Member] | ' |
FERC Matters [Abstract] | ' |
Transmission Rate Case Filing Date | 'May 2013 |
Anticipated Effective Date of Rate Filing | 'January 1, 2014 |
Intervenor Filing Date | 'July 16, 2013 |
Sierra Pacific Power Company | FERC Filing 2012 [Member] | ' |
FERC Matters [Abstract] | ' |
TransmissionRateCase | 1.5 |
Transmission Rate Case Filing Date | 'October 2012 |
Anticipated Effective Date of Rate Filing | 'June 1, 2013 |
FERC approval date | 'August 29, 2013 |
Sierra Pacific Power Company | FERC Filing 2013 [Member] | ' |
FERC Matters [Abstract] | ' |
Transmission Rate Case Filing Date | 'May 2013 |
Anticipated Effective Date of Rate Filing | 'January 1, 2014 |
Intervenor Filing Date | 'July 16, 2013 |
LONGTERM_DEBT_Debt_Instruments
LONG-TERM DEBT, Debt Instruments (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | ($759,000) | ($1,631,000) |
Current maturities | -129,457,000 | -356,283,000 |
Total Long-Term Debt | 4,791,809,000 | 4,669,798,000 |
Secured, General and Refunding Mortgage Securities, NPC Series L [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Stated interest rate (in hundredths) | 5.88% | ' |
Maturity date | '2015 | ' |
Secured, General and Refunding Mortgage Securities, NPC Series M [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 210,000,000 | 210,000,000 |
Stated interest rate (in hundredths) | 5.95% | ' |
Maturity date | '2016 | ' |
Secured, General and Refunding Mortgage Securities, NPC Series N [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 370,000,000 | 370,000,000 |
Stated interest rate (in hundredths) | 6.65% | ' |
Maturity date | '2036 | ' |
Secured, General and Refunding Mortgage Securities, NPC Series O [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 325,000,000 | 325,000,000 |
Stated interest rate (in hundredths) | 6.50% | ' |
Maturity date | '2018 | ' |
Secured, General and Refunding Mortgage Securities, NPC Series R [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 350,000,000 | 350,000,000 |
Stated interest rate (in hundredths) | 6.75% | ' |
Maturity date | '2037 | ' |
Secured, General and Refunding Mortgage Securities, NPC Series S [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 500,000,000 | 500,000,000 |
Stated interest rate (in hundredths) | 6.50% | ' |
Maturity date | '2018 | ' |
Secured, General and Refunding Mortgage Securities, Series U [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 125,000,000 | 125,000,000 |
Stated interest rate (in hundredths) | 7.38% | ' |
Maturity date | '2014 | ' |
Secured, General and Refunding Mortgage Securities, Series V [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 500,000,000 | 500,000,000 |
Stated interest rate (in hundredths) | 7.13% | ' |
Maturity date | '2019 | ' |
Secured, General and Refunding Mortgage Securities, Series X [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Stated interest rate (in hundredths) | 5.38% | ' |
Maturity date | '2040 | ' |
Secured, General and Refunding Mortgage Securities, Series Y [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Stated interest rate (in hundredths) | 5.45% | ' |
Maturity date | '2041 | ' |
Secured, General and Refunding Mortgage Securities, SPPC Series M [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 450,000,000 | 450,000,000 |
Stated interest rate (in hundredths) | 6.00% | ' |
Maturity date | '2016 | ' |
Secured, General and Refunding Mortgage Securities, SPPC Series P [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 251,742,000 | 251,742,000 |
Stated interest rate (in hundredths) | 6.75% | ' |
Maturity date | '2037 | ' |
Secured, General and Refunding Mortgage Securities, SPPC Series Q [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 0 | 250,000,000 |
Stated interest rate (in hundredths) | 5.45% | ' |
Maturity date | '2013 | ' |
General and Refunding Mortgage Securities SPPC Series T [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 0 |
Stated interest rate (in hundredths) | 3.38% | ' |
Maturity date | '2023 | ' |
Secured Variable Rate Debt Npc Idrb Series Two Thousand [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | ' | 98,100,000 |
Maturity date | '2020 | ' |
Secured Variable Rate Debt, NPC PCRB Series 2006 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 37,700,000 | 37,700,000 |
Maturity date | '2036 | ' |
Secured Variable Rate Debt Npc Pcrb Series Two Thousand Six [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 37,975,000 | 37,975,000 |
Maturity date | '2032 | ' |
Secured Variable Rate Debt Sppc Pcrb Series 2006 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 58,200,000 | 58,200,000 |
Maturity date | '2031 | ' |
Secured Variable Rate Debt Sppc Pcrb Series 2006 B [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 75,000,000 | 75,000,000 |
Maturity date | '2036 | ' |
Secured Variable Rate Debt Sppc Pcrb Series 2006 C [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 81,475,000 | 81,475,000 |
Maturity date | '2036 | ' |
NVE Senior Notes due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 195,000,000 | 195,000,000 |
Stated interest rate (in hundredths) | 2.56% | ' |
Maturity date | '2014 | ' |
NVE Senior Notes due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 315,000,000 | 315,000,000 |
Stated interest rate (in hundredths) | 6.25% | ' |
Maturity date | '2020 | ' |
Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 38,415,000 | 44,258,000 |
Parent Company | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total Long-Term Debt | 510,000,000 | 510,000,000 |
Parent Company | NVE Senior Notes due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 195,000,000 | 195,000,000 |
Parent Company | NVE Senior Notes due 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 315,000,000 | 315,000,000 |
Nevada Power Company | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | 9,080,000 | 9,827,000 |
Current maturities | -129,186,000 | -106,048,000 |
Total Long-Term Debt | 3,103,980,000 | 3,230,808,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series L [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series M [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 210,000,000 | 210,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series N [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 370,000,000 | 370,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series O [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 325,000,000 | 325,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series R [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 350,000,000 | 350,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, NPC Series S [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 500,000,000 | 500,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, Series U [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 125,000,000 | 125,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, Series V [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 500,000,000 | 500,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, Series X [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Nevada Power Company | Secured, General and Refunding Mortgage Securities, Series Y [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 250,000,000 |
Nevada Power Company | Secured Variable Rate Debt Npc Idrb Series Two Thousand [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | ' | 98,100,000 |
Notice Of Redemption | 100,000,000 | ' |
Notice Of Redemption Date | 'July 1, 2013 | ' |
Redemption Date | 'August 1, 2013 | ' |
Redemption Percentage | 100.00% | ' |
Amount of debt redeemed | 98,100,000 | ' |
Nevada Power Company | Secured Variable Rate Debt, NPC PCRB Series 2006 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 37,700,000 | 37,700,000 |
Nevada Power Company | Secured Variable Rate Debt Npc Pcrb Series Two Thousand Six [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 37,975,000 | 37,975,000 |
Nevada Power Company | Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 36,571,000 | 42,908,000 |
Sierra Pacific Power Company | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | -9,839,000 | -11,458,000 |
Current maturities | -271,000 | -250,235,000 |
Total Long-Term Debt | 1,177,829,000 | 928,990,000 |
Sierra Pacific Power Company | Secured, General and Refunding Mortgage Securities, SPPC Series M [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 450,000,000 | 450,000,000 |
Sierra Pacific Power Company | Secured, General and Refunding Mortgage Securities, SPPC Series P [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 251,742,000 | 251,742,000 |
Sierra Pacific Power Company | Secured, General and Refunding Mortgage Securities, SPPC Series Q [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 0 | 250,000,000 |
Redemption Date | 'September 1, 2013 | ' |
Amount of debt redeemed | 250,000,000 | ' |
Sierra Pacific Power Company | General and Refunding Mortgage Securities SPPC Series T [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 250,000,000 | 0 |
Net Proceeds used to redeem debt | 247,900,000 | ' |
Debt Instrument, Issuance Date | 1-Aug-13 | ' |
Sierra Pacific Power Company | Secured Variable Rate Debt Sppc Pcrb Series 2006 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 58,200,000 | 58,200,000 |
Sierra Pacific Power Company | Secured Variable Rate Debt Sppc Pcrb Series 2006 B [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 75,000,000 | 75,000,000 |
Sierra Pacific Power Company | Secured Variable Rate Debt Sppc Pcrb Series 2006 C [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | 81,475,000 | 81,475,000 |
Sierra Pacific Power Company | Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt including current maturities | $1,844,000 | $1,350,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Billions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | $5.60 | $5.90 |
Nevada Power Company | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | 3.7 | 4.1 |
Sierra Pacific Power Company | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt, Fair Value | $1.30 | $1.30 |
RETIREMENT_PLAN_AND_POSTRETIRE2
RETIREMENT PLAN AND POST-RETIREMENT BENEFITS, Components of Net Periodic Cost and Expected Benefit Payments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Average percentage of net periodic costs capitalized [Abstract] | ' | ' | ' | ' |
Average percentage of net periodic costs capitalized (in hundredths) | ' | ' | 34.50% | 35.00% |
DefinedBenefitPlanEffectOfPlanAmendmentOnAccumulatedBenefitObligation | $21,500,000 | ' | $21,500,000 | ' |
United States Pension Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 5,132,000 | 4,406,000 | 15,396,000 | 13,220,000 |
Interest cost | 9,303,000 | 10,228,000 | 27,911,000 | 30,684,000 |
Expected return on plan assets | -12,708,000 | -12,447,000 | -38,124,000 | -37,341,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -720,000 | -724,000 | -2,162,000 | -2,173,000 |
Actuarial (gain)/loss | 4,797,000 | 3,473,000 | 14,391,000 | 10,418,000 |
Total net benefit cost | 5,804,000 | 4,936,000 | 17,412,000 | 14,808,000 |
Average percentage of net periodic costs capitalized [Abstract] | ' | ' | ' | ' |
PensionAndOtherPostretirementBenefitContributions | ' | ' | 20,000,000 | 15,000,000 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 660,000 | 595,000 | 1,980,000 | 1,787,000 |
Interest cost | 1,677,000 | 1,905,000 | 5,030,000 | 5,715,000 |
Expected return on plan assets | -1,687,000 | -1,563,000 | -5,060,000 | -4,690,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -952,000 | -987,000 | -2,857,000 | -2,961,000 |
Actuarial (gain)/loss | 890,000 | 731,000 | 2,671,000 | 2,193,000 |
Total net benefit cost | 588,000 | 681,000 | 1,764,000 | 2,044,000 |
Average percentage of net periodic costs capitalized [Abstract] | ' | ' | ' | ' |
PensionAndOtherPostretirementBenefitContributions | ' | ' | 5,000,000 | 7,100,000 |
Nevada Power Company | ' | ' | ' | ' |
Average percentage of net periodic costs capitalized [Abstract] | ' | ' | ' | ' |
Average percentage of net periodic costs capitalized (in hundredths) | ' | ' | 35.90% | 36.90% |
Nevada Power Company | United States Pension Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 2,761,000 | 2,358,000 | 8,283,000 | 7,072,000 |
Interest cost | 4,453,000 | 4,881,000 | 13,358,000 | 14,643,000 |
Expected return on plan assets | -6,270,000 | -6,237,000 | -18,810,000 | -18,711,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -453,000 | -456,000 | -1,358,000 | -1,367,000 |
Actuarial (gain)/loss | 2,117,000 | 1,363,000 | 6,351,000 | 4,089,000 |
Total net benefit cost | 2,608,000 | 1,909,000 | 7,824,000 | 5,726,000 |
Nevada Power Company | United States Postretirement Benefit Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 389,000 | 350,000 | 1,167,000 | 1,050,000 |
Interest cost | 556,000 | 602,000 | 1,667,000 | 1,807,000 |
Expected return on plan assets | -631,000 | -592,000 | -1,892,000 | -1,775,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -23,000 | 229,000 | -69,000 | 687,000 |
Actuarial (gain)/loss | 289,000 | 221,000 | 867,000 | 662,000 |
Total net benefit cost | 580,000 | 810,000 | 1,740,000 | 2,431,000 |
Sierra Pacific Power Company | ' | ' | ' | ' |
Average percentage of net periodic costs capitalized [Abstract] | ' | ' | ' | ' |
Average percentage of net periodic costs capitalized (in hundredths) | ' | ' | 35.60% | 35.10% |
Sierra Pacific Power Company | United States Pension Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 1,926,000 | 1,695,000 | 5,778,000 | 5,086,000 |
Interest cost | 4,558,000 | 5,043,000 | 13,676,000 | 15,130,000 |
Expected return on plan assets | -6,162,000 | -5,937,000 | -18,486,000 | -17,813,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -277,000 | -277,000 | -831,000 | -831,000 |
Actuarial (gain)/loss | 2,501,000 | 2,026,000 | 7,502,000 | 6,078,000 |
Total net benefit cost | 2,546,000 | 2,550,000 | 7,639,000 | 7,650,000 |
Sierra Pacific Power Company | United States Postretirement Benefit Plans of US Entity, Defined Benefit | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | 251,000 | 227,000 | 752,000 | 682,000 |
Interest cost | 1,104,000 | 1,283,000 | 3,310,000 | 3,848,000 |
Expected return on plan assets | -1,022,000 | -941,000 | -3,065,000 | -2,823,000 |
Amortization of: | ' | ' | ' | ' |
Prior service (credit)/cost | -933,000 | -1,220,000 | -2,798,000 | -3,658,000 |
Actuarial (gain)/loss | 592,000 | 504,000 | 1,777,000 | 1,511,000 |
Total net benefit cost | ($8,000) | ($147,000) | ($24,000) | ($440,000) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES, Environmental (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Environmental [Abstract] | ' |
Regional Haze | $77.10 |
Nevada Power Company | ' |
Environmental [Abstract] | ' |
Reclamation estimate of coal washing and load-out facility site | 4 |
Nevada Power Company | Navajo Generating Station | ' |
Environmental [Abstract] | ' |
Ownership interest in generating stations (in hundredths) | 11.30% |
Regional Haze | 1,100 |
Sierra Pacific Power Company | Valmy Generating Station | ' |
Environmental [Abstract] | ' |
Ownership interest in generating stations (in hundredths) | 50.00% |
Mercury Air Toxic Standards Costs | $6.40 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES, Litigation Contingencies and Other Commitments (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Capital Projects | ' |
ON Line TUA [Abstract] | ' |
Capacity of interconnection (in kV) | 500 |
Utilities' aggregate share in transmission line project (in hundredths) | 25.00% |
GBT-South's share in the ON Line project (in hundredths) | 75.00% |
Nevada Power Company [Member] | ' |
Royalty claim [Abstract] | ' |
Damages sought in DC Lawsuit | $600,000,000 |
Minimum punitive damages sought in DC Lawsuit | 1,000,000,000 |
November 2005 Land Investors [Abstract] | ' |
Amount awarded unpaid rent | 1,000,000 |
Amount awarded inverse condemnation and interest | 5,100,000 |
Nevada Power Company [Member] | Capital Projects | ' |
ON Line TUA [Abstract] | ' |
Capitalized construction costs | 370,800,000 |
Nevada Power Company [Member] | Navajo Generating Station | ' |
Royalty claim [Abstract] | ' |
Ownership interest in generating stations (in hundredths) | 11.30% |
Sierra Pacific Power Company | ' |
Farad Dam [Abstract] | ' |
Number of hydro generating units sold | 4 |
Total capacity of hydro generating units sold (in MW) | 10.3 |
Proceeds from sale of hydro units | 8,000,000 |
Capacity of the Farad Hydro generating unit (in MW) | 2.8 |
Estimate to rebuild diversion dam of the Farad Hydro generating unit | 20,000,000 |
Amount entitled to be recovered for costs incurred to date on Farad Dam | 4,000,000 |
Duration to rebuild the Farad dam from the date of the Court's decision | '3 years |
ReplacementCost | 19,800,000 |
Sierra Pacific Power Company | Capital Projects | ' |
ON Line TUA [Abstract] | ' |
Capitalized construction costs | $19,400,000 |
EARNINGS_PER_SHARE_NVE_Details
EARNINGS PER SHARE (NVE) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Numerator | ' | ' | ' | ' | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $187,234 | $223,170 | $271,942 | $304,782 | ||||
Denominator | ' | ' | ' | ' | ||||
Weighted Average Shares of Common Stock Outstanding - basic | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||
Per Share Amounts | ' | ' | ' | ' | ||||
Net income per share - basic | $0.79 | $0.95 | $1.16 | $1.29 | ||||
Numerator | ' | ' | ' | ' | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $187,234 | $223,170 | $271,942 | $304,782 | ||||
Denominator | ' | ' | ' | ' | ||||
Weighted Average Number of Shares Outstanding, Basic | 235,578,310 | 235,961,402 | 235,421,933 | 235,986,874 | ||||
Stock options (in shares) | 61,927 | 39,256 | 46,537 | 37,592 | ||||
Non-Employee Director stock plan (in shares) | 190,705 | 166,829 | 185,337 | 160,257 | ||||
Employee stock purchase plan (in shares) | 4,149 | 6,742 | 5,831 | 6,785 | ||||
Restricted Shares (in shares) | 412,000 | 584,750 | 487,667 | 533,750 | ||||
Performance Shares (in shares) | 1,358,423 | 1,362,753 | 1,191,734 | 1,125,272 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 237,605,514 | [1] | 238,121,732 | [1] | 237,339,039 | [1] | 237,850,530 | [1] |
Per Share Amounts | ' | ' | ' | ' | ||||
Net income per share - diluted | $0.79 | $0.94 | $1.15 | $1.28 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 327,503 | ' | 329,382 | ' | ||||
[1] | The denominator does not include stock equivalents for options issued under the non-qualified stock option plan due to conversion prices being higher than market prices for the periods ending September 30, 2012. If the conditions for conversion were met under this plan, 327,503 and 329,382 shares, would be included for the three and nine months ended September 30, 2012, respectively. |
COMMON_STOCK_AND_OTHER_PAIDIN_2
COMMON STOCK AND OTHER PAID-IN CAPITAL (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 06, 2013 | Dec. 18, 2013 | Dec. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Nov. 06, 2013 | Sep. 30, 2013 | Nov. 06, 2013 | |
Subsequent Event | Subsequent Event | Subsequent Event | Treasury stock | Treasury stock | Nevada Power Company | Nevada Power Company | Sierra Pacific Power Company | Sierra Pacific Power Company | |||||||
Scenario, Forecast | Scenario, Forecast | Subsequent Event | Subsequent Event | ||||||||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Declared Per Share of Common Stock | $0.19 | $0.19 | $0.19 | $0.17 | $0.57 | $0.47 | $0.19 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date to be Paid, Day, Month and Year | 18-Sep-13 | 19-Jun-13 | 20-Mar-13 | ' | ' | ' | ' | 18-Dec-13 | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date of Record, Day, Month and Year | 3-Sep-13 | 4-Jun-13 | 5-Mar-13 | ' | ' | ' | ' | ' | 3-Dec-13 | ' | ' | ' | ' | ' | ' |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $105,000,000 | ' | $40,000,000 | ' |
Dividend declared to parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,000,000 | ' | 37,000,000 |
Declaration date | 1-Aug-13 | 8-May-13 | 7-Feb-13 | ' | ' | ' | 6-Nov-13 | ' | ' | ' | ' | ' | 6-Nov-13 | ' | 6-Nov-13 |
Common stock repurchased (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,178 | 252,000 | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ($6,329,000) | ($4,509,000) | ' | ' | ' | ($6,329,000) | ($4,509,000) | ' | ' | ' | ' |
Dividend Reinvestment and Employee Benefits (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 827,097 | ' | ' | ' | ' | ' |