Sierra Pacific Power 8-K Results of Operations and Financial Condition

EXHIBIT 99.2

FUNDS FROM OPERATIONS — SIERRA PACIFIC RESOURCES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

Sierra Pacific Resources
Funds From Operations (FFO)

																LTM ended
	Nine months ended September 30,						Year ended December 31,									September 30,
	2006			2005			2005			2004			2003			2006
Net Income (Loss)	$	253,665		$	63,508		$	86,137		$	32,471		$	(136,629	)	$	276,294
Non-Cash items included in net income
Depreciation and amortization		170,113			159,949			214,662			205,647			191,259			224,826
Deferred taxes and deferred investment tax credit		122,062			31,362			41,609			33,690			(50,724	)		132,309
AFUDC		(26,518	)		(31,529	)		(45,013	)		(14,536	)		(11,741	)		(40,002	)
Deferred Energy Costs Disallowed		—			—			—			1,586			90,964			—
Goodwill Impairment		—			—			—			11,695			—			—
Early retirement and severance amortization		—			—			—			—			2,786			—
Unrealized loss on derivative instrument		—			—			—			—			46,065			—
Impairment of assets of subsidiary		—			—			—			—			32,911			—
Loss on disposal of discontinued operations		—			—			—			2,346			9,555			—
Plant Costs disallowed		—			—			—			47,092			—			—
Reinstatement of deferred Energy Costs		(178,825	)														(178,825	)
Carrying Charge on Lenzie Plant		(26,957	)														(26,957	)
Other non-cash		(27,326	)		(33,018	)		(4,119	)		(27,353	)		(7,131	)		1,573
Funds from Operations (Before Deferred Energy Costs)		286,214			190,272			293,276			292,638			167,315			389,218
Amortization Deferred energy costs — electric		130,279			140,554			188,221			265,418			250,134			177,946
Amortization Deferred energy costs — gas		4,773			(486	)		1,446			3,242			13,095			6,705
Deferral of energy costs — electric plus terminated suppliers		(75,599	)		(179,917	)		(241,103	)(1)		(147,589	)		(179,826	)		(136,785	)
Deferral of energy costs — gas		1,897			(902	)		(2,519	)		(7,480	)		2,592			280
Payment to terminating supplier		(65,368	)		—			—			—			—			(65,368	)
Proceeds from claim on terminating supplier		41,365			—			—			—			—			41,365
Adjusted Funds from Operations	$	323,561		$	149,521		$	239,321		$	406,229		$	253,310		$	413,361
Long-term Debt		4,162,341			3,734,822			3,817,122			4,081,281			3,579,674			4,162,341
Current maturities of long term debt plus short-term borrowings		41,051			278,804			58,909			8,491			243,970			41,051
Total Debt	$	4,203,392		$	4,013,626		$	3,876,031		$	4,089,772		$	3,823,644		$	4,203,392
Preferred Stock		—			50,000			50,000			50,000			50,000			—
Net interest expense		228,670			236,957			284,927			306,427			366,282			276,640
AFUDC		12,869			17,283			24,691			8,587			5,976			20,277
Adjusted Interest Expense	$	241,539		$	254,240		$	309,618		$	315,014		$	372,258		$	296,917
Debt/Funds from operations								13.22	x		13.98	x		22.85	x		10.80	x
Debt/adjusted FFO								16.20	x		10.07	x		15.09	x		10.17	x
Funds from Operations Interest Coverage								1.95	x		1.93	x		1.45	x		2.31	x
Adjusted Funds From Operations Interest Coverage								1.77	x		2.29	x		1.68	x		2.39	x
Common shareholders equity							$	2,060,154		$	1,498,616		$	1,435,394		$	2,593,013
Total Capitalization							$	5,986,185		$	5,638,388		$	5,309,038		$	6,796,405
Debt/Capitalization								64.75	%		72.53	%		72.02	%		61.85	%

(1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $218 million associated primarily with the November 2005 settlement with Enron.

FUNDS FROM OPERATIONS — NEVADA POWER COMPANY

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

Nevada Power Company
Funds From Operations (FFO)

																LTM ended
	Nine months ended September 30,						Year ended December 31,									September 30,
	2006			2005			2005			2004			2003			2006
Net Income (Loss)	$	236,273		$	112,408		$	132,734		$	104,312		$	19,277		$	256,599
Non-Cash items included in net income																	—
Depreciation and amortization		104,076			92,421			124,098			118,841			109,655			135,753
Deferred taxes and deferred investment tax credit		113,015			52,680			86,910			57,066			2,710			147,245
AFUDC		(20,190	)		(29,171	)		(41,870	)		(9,969	)		(5,545	)		(32,889	)
Deferred Energy Costs Disallowed		—			—			—			1,586			45,964			—
Plant Costs disallowed		—			—			—			—			—			—
Reinstatement of deferred Energy Costs		(178,825	)														(178,825	)
Carrying Charge on Lenzie Plant		(26,957	)														(26,957	)
Other non-cash		(26,129	)		(22,201	)		(7,433	)		(44,149	)		(8,962	)		(11,361	)
Funds from Operations (Before Deferred Energy Costs)		201,263			206,137			294,439			227,687			163,099			289,565
Amortization Deferred energy costs		95,830			108,480			131,471			228,765			204,610			118,821
Deferral of energy costs plus terminated suppliers		(58,158	)		(137,048	)		(186,338	)(1)		(112,992	)		(131,591	)		(107,448	)
Payment to terminating supplier		(37,410	)		—			—			—			—			(37,410	)
Proceeds from claim on terminating supplier		26,391			—			—			—			—			26,391
Adjusted Funds from Operations	$	227,916		$	177,569		$	239,572		$	343,460		$	236,118		$	289,919
Long-term Debt		2,429,256			2,113,370			2,214,063			2,275,690			1,899,709			2,429,256
Current maturities of long term debt		18,651			6,404			6,509			6,091			135,570			18,651
Total Debt	$	2,447,907		$	2,119,774		$	2,220,572		$	2,281,781		$	2,035,279		$	2,447,907
Net interest expense		134,063			118,350			134,657			137,388			190,472			150,370
AFUDC		10,050			16,154			23,187			5,738			2,700			17,083
Adjusted Interest Expense	$	144,113		$	134,504		$	157,844		$	143,126		$	193,172		$	167,453
Debt/Funds from operations								7.54	x		10.02	x		12.48	x		8.45	x
Debt/adjusted FFO								9.27	x		6.64	x		8.62	x		8.44	x
Funds from Operations Interest Coverage								2.87	x		2.59	x		1.84	x		2.73	x
Adjusted Funds From Operations Interest Coverage								2.52	x		3.40	x		2.22	x		2.73	x
Common shareholders equity							$	1,762,089		$	1,436,788		$	1,174,645		$	2,166,719
Total Capitalization							$	3,982,661		$	3,718,569		$	3,209,924		$	4,614,626
Debt/Capitalization								55.76	%		61.36	%		63.41	%		53.05	%

(1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $155 million associated primarily with the November 2005 settlement with Enron.

FUNDS FROM OPERATIONS — SIERRA PACIFIC POWER COMPANY

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

Sierra Pacific Power Company
Funds From Operations (FFO)

																LTM ended
																September
	Nine months ended September 30,						Year ended December 31,									30,
	2006			2005			2005			2004			2003			2006
Net Income (Loss)	$	42,299		$	38,894		$	52,074		$	18,577		$	(23,275	)	$	55,479
Non-Cash items included in net income																	—
Depreciation and amortization		66,037			67,534			90,569			86,806			81,514			89,072
Deferred taxes and deferred investment tax credit		(27,392	)		(548	)		209			11,640			(23,676	)		(26,635	)
AFUDC		(6,328	)		(2,358	)		(3,143	)		(4,567	)		(6,196	)		(7,113	)
Deferred Energy Costs Disallowed		—			—			—			—			45,000			—
Early retirement and severance amortization		—			—			—			—			2,786			—
Plant Costs disallowed		—			—			—			47,092			—			—
Other non-cash		2,470			(4,116	)		318			474			(5,203	)		6,904
Funds from Operations (Before Deferred Energy Costs)		77,086			99,406			140,027			160,022			70,950			117,707
Amortization Deferred energy costs — electric		34,449			32,074			56,750			36,653			45,524			59,125
Amortization Deferred energy costs — gas		4,773			(486	)		1,446			3,241			13,095			6,705
Deferral of energy costs — electric plus terminated suppliers		(17,441	)		(42,869	)		(54,765	)(1)		(34,598	)		(48,236	)		(29,337	)
Deferral of energy costs — gas		1,897			(902	)		(2,519	)		(7,480	)		2,592			280
Payment to terminating supplier		(27,958	)		—			—			—			—			(27,958	)
Proceeds from claim on terminating supplier		14,974			—			—			—			—			14,974
Adjusted Funds from Operations	$	87,780		$	87,223		$	140,939		$	157,838		$	83,925		$	141,496
Long-term Debt		1,072,076			962,311			941,804			994,309			912,800			1,072,076
Current maturities of long term debt plus short-term borrowings		22,400			32,400			52,400			2,400			108,400			22,400
Total Debt	$	1,094,476		$	994,711		$	994,204		$	996,709		$	1,021,200		$	1,094,476
Preferred Stock		—			50,000			50,000			50,000			50,000			—
Net interest expense		54,833			54,206			69,067			62,831			96,093			69,694
AFUDC		2,819			1,129			1,504			2,849			3,276			3,194
Adjusted Interest Expense	$	57,652		$	55,335		$	70,571		$	65,680		$	99,369		$	72,888
Debt/Funds from operations								7.10	x		6.23	x		14.39	x		9.30	x
Debt/adjusted FFO								7.05	x		6.31	x		12.17	x		7.74	x
Funds from Operations Interest Coverage								2.98	x		3.44	x		1.71	x		2.61	x
Adjusted Funds From Operations Interest Coverage								3.00	x		3.40	x		1.84	x		2.94	x
Common shareholders equity							$	727,777		$	705,395		$	593,771		$	770,640
Total Capitalization							$	1,771,981		$	1,752,104		$	1,664,971		$	1,865,116
Debt/Capitalization								56.11	%		56.89	%		61.33	%		58.68	%

     (1) For 2005, deferral of energy costs electric plus terminated suppliers does not include the non-cash net change in deferred energy of $63 million associated primarily with the November 2005 settlement with Enron.