EXHIBIT 99.2
FUNDS FROM OPERATIONS — SIERRA PACIFIC RESOURCES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Dollars in thousands)
Sierra Pacific Resources
Funds From Operations (FFO)
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)
(Dollars in thousands)
Nevada Power Company
Funds From Operations (FFO)
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)
(Dollars in thousands)
Sierra Pacific Power Company
Funds From Operations (FFO)
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.