SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996 Commission file number 1-4698
NEVADA POWER COMPANY
(Exact name of registrant as specified in its charter)
Nevada 88-0045330
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6226 West Sahara Avenue 89102
Las Vegas, Nevada (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (702) 367-5000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
-------------------------- ---------------------
Common Stock, $1 Par Value New York Stock Exchange
Pacific Stock Exchange
Stock Purchase Rights New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Cumulative Preferred Stock, $20 Par Value, 5.40% Series
(Title of class)
Cumulative Preferred Stock, $20 Par Value, 5.20% Series
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES X NO
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
K or any amendment to this Form 10-K. X
---
49,226,593 shares of Common Stock were outstanding as of March 14, 1997.
The aggregate market value of Common Stock, which is the only voting
stock, held by non-affiliates as of March 14, 1997, was $990,685,184.
(Computed by reference to the closing price on March 14, 1997, as reported by
the Wall Street Journal as New York Stock Exchange Composite Transactions.)
DOCUMENTS INCORPORATED BY REFERENCE
(1) Portions of the Registrant's Annual Report to Shareholders for the
year ended December 31, 1996 are incorporated by reference into Parts II and
IV hereof.
(2) Portions of the Registrant's definitive Proxy Statement dated March
13, 1997 for the Company's annual meeting of shareholders on May 9, 1997, are
incorporated by reference into Part III hereof.
TABLE OF CONTENTS
Page
----
PART I
Item 1. Business ...................................... 1
Item 2. Properties .................................... 7
Item 3. Legal Proceedings ............................. 8
Item 4. Submission of Matters to a Vote of Security
Holders........................................ 8
Supplemental Item.
Executive Officers of Registrant .............. 8
PART II
Item 5. Market for the Registrant's Common Stock and
Related Security Holder Matters ............... 9
Item 6. Selected Financial Data ....................... 9
Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operation... 9
Item 8. Financial Statements and Supplementary Data ... 9
Item 9. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure ........ 10
PART III
Item 10. Directors and Executive Officers of the
Registrant .................................... 10
Item 11. Executive Compensation ........................ 10
Item 12. Security Ownership of Certain Beneficial Owners
and Management ................................ 10
Item 13. Certain Relationships and Related Transactions. 10
PART IV
Item 14. Exhibits, Financial Statement Schedule, and
Reports on Form 8-K ........................... 11
SIGNATURES .................................................. 23
PART I
ITEM 1. BUSINESS
THE COMPANY
Nevada Power Company (Company), incorporated in 1929 under the laws of
Nevada, is an operating public utility engaged in the electric utility
business in the City of Las Vegas and vicinity in southern Nevada. Most of
the Company's operations are conducted in Clark County, Nevada (with an
estimated service area population of 1,211,000 at December 31, 1996) where
the Company furnishes electric service in the communities of Las Vegas,
North Las Vegas, Henderson, Searchlight, Laughlin and adjoining areas and to
Nellis Air Force Base (a permanent military installation northeast of Las
Vegas and the USAF Tactical Fighter Weapons Center). Electric service is
also supplied to the Department of Energy at Mercury and Jackass Flats in
Nye County, where the Nevada Test Site is located. Nevada Power will supply
40 percent of the Nevada Test Site's future electrical power according to a
settlement agreement still to be approved by the Public Service Commission
of Nevada (PSC.) See the "Competition" section in this Form 10-K.
SOURCES OF ELECTRIC ENERGY SUPPLY
The electric energy obtained from the Company's own generating
facilities will be produced at the following plants:
Number Net Capacity
Plant of Units (Megawatts)
----- -------- ------------
Coal Fuel:
Reid Gardner (Steam).............. 3 330
Reid Gardner Unit No. 4 (Steam)... 1 275(1)
Mohave (Steam).................... 2 196(2)
Navajo (Steam).................... 3 255(3)
Natural Gas and Oil Fuel:
Clark (Steam)..................... 3 175
Clark (Gas Turbine)............... 1 50
Clark (Combined Cycle)............ 2 462
Sunrise (Steam)................... 1 80
Sunrise (Gas Turbine)............. 1 69
Harry Allen (Gas Turbine)......... 1 72
-----
1,964
=====
_________________
(1) This represents 25 megawatts of base load capacity, 235 megawatts of
peaking capacity and 15 megawatts (MW) upgrade capacity accomplished in
1990. Reid Gardner Unit No. 4, placed in service July 25, 1983, is a
coal-fired unit which is owned 32.2% by the Company and 67.8% by the
Department of Water Resources of the State of California. The Company
is entitled to use 100% of the unit's capacity for 1,500 hours each
year but the Company has agreed to reduce its allocation of such
peaking capacity by 20 MW from 1993 through 1997. The Company is
entitled to 9.6% of the first 260 megawatts of capacity and associated
energy and is entitled to all of the 1990 15 megawatt upgrade. The
Company had options for the use of increasing amounts of energy from
the unit beginning in 1998 so that the Company would have been entitled
to use all of the unit's output 15 years from that date. However, the
1998 through 2001 options for 10.17 MW per year were not exercised by
the Company and have expired.
(2) This represents the Company's 14% undivided interest in the Mohave
Generating Station as tenant in common without right of partition with
three other non-affiliated utilities, less operating restrictions.
(3) This represents the Company's 11.3% undivided interest in the Navajo
Generating Station as tenant in common without right of partition with
five other non-affiliated utilities.
1
The Company purchases Hoover Dam power pursuant to a contract with the
State of Nevada which became effective June 1, 1987 and will continue
through September 30, 2017. The Company's allocation of capacity is 235 MW.
The peak electric demand experienced by the Company was 3,332 megawatts
on July 23, 1996. This demand plus a reserve margin was served by a
combination of Company owned generation, and firm and short-term power
purchases.
For 1997, the Company has contracts to purchase power from an
independent power producer (IPP) and four qualifying facilities (QF) (also
known as cogenerators) as follows:
Contract Term Net Capacity
---------------------
From To (Megawatts)
-------- -------- -------------
Independent Power Producer:
---------------------------
Nevada Sun-Peak Limited
Partnership ............. 06/08/91 05/31/16 210
Qualifying Facilities:
----------------------
Saguaro Power Company .... 10/17/91 04/30/22 90
Nevada Cogeneration
Associates #1 ........... 06/18/92 04/30/23 85
Nevada Cogeneration
Associates #2 ........... 02/01/93 04/30/23 85
Las Vegas Cogeneration
Limited Partnership ..... 05/10/94 05/31/24 45
----
515
====
The Company has total generating capacity of 2,714 megawatts, including
235 megawatts of Hoover Dam power, 210 megawatts of IPP power and 305
megawatts of QF power. This along with agreements with other suppliers to
purchase 775 megawatts of firm capacity and associated energy, for the
summer of 1997, will not be sufficient to meet the 1997 anticipated peak
load demand and reserve margin needs. Accordingly, the Company is utilizing
a competitive bidding process to obtain resources from other suppliers for
additional firm capacity and associated energy to meet the projected peak
needs for 1997.
FUEL SUPPLIES
The fuels used to provide energy for the Company's generating
facilities are coal, natural gas and oil. Its other sources of electricity
are hydroelectric (Hoover Dam) and purchased power.
The Company's primary fuel source for generation is coal. The
following table shows the actual sources of fuel for generation for 1996 and
anticipated sources of fuel for generation in 1997 and 1998.
1996 1997 1998
---- ---- ----
Coal........................ 76% 73% 70%
Natural Gas................. 24 27 30
--- --- ---
100% 100% 100%
=== === ===
The Company's average delivered cost per ton of coal burned was as
follows: 1994 - $32.96; 1995 - $30.37; 1996 - $29.02.
Coal for both the Mohave and Navajo Stations is obtained from surface
mining operations conducted by Peabody Coal Company (Peabody) on portions of
the Black Mesa in Arizona within the Navajo and Hopi Indian reservations.
The supply contracts with Peabody extend to December 31, 2005 for Mohave and
to June 1, 2011 for Navajo, each contract having an option to extend for an
additional 15 years.
Partial requirements for coal at the Reid Gardner Generating Station
are presently under contract through the year 2007. Although the Company
can not predict how the coal market may fluctuate in the future, the Company
anticipates no major
2
difficulties in purchasing the remainder of its coal requirements based upon
current coal market conditions in the Western United States. All coal for
Reid Gardner presently comes from underground mines in Utah and Colorado.
The Company's natural gas supply is subject to curtailment due to
limited pipeline capacity, until May 1997, when a pipeline expansion project
with Southwest Gas Corporation is completed. All the Company's plants using
natural gas also have the capability of burning oil on a sustained basis.
CONSTRUCTION AND FINANCING PROGRAMS
The Company carries on a continuing program to extend and enlarge its
facilities to meet current and future loads on its system. Gross plant
additions and retirements for the five years ended December 31, 1996
amounted to $913,617,000 and $64,607,000, respectively.
Excluding Allowance for Funds Used During Construction, the Company's
actual construction expenditures for 1996 were $180 million, and currently
estimated construction expenditures for 1997 and 1998 are $242 million and
$275 million, respectively.
The Company's construction program and estimated expenditures are
subject to continuing review and are revised from time to time due to
various factors, including the rate of load growth, escalation of
construction costs, availability of fuel types, changes in environmental
regulations, adequacy of rate relief and the Company's ability to raise
necessary capital.
To meet capital expenditure requirements through 1998, the Company
intends to utilize internally generated cash, the proceeds from industrial
development revenue bonds (IDBs), first mortgage bonds (FMBs), unsecured
borrowings, preferred securities and common stock issues through public
offerings and the Stock Purchase and Dividend Reinvestment Plan (SPP).
The Company has the option of issuing new shares or using open market
purchases of its common stock to meet the requirements of the SPP. The
Company issued 1,659,764 shares of its common stock in 1996 under the SPP.
At the end of 1996, common equity represented 47.5% of total capitalization.
On October 18, 1996, Coconino County, Arizona issued $20 million Series
1996 pollution control revenue bonds (PCRBs) (Nevada Power Company Project)
due 2036. Net proceeds from the sale of the PCRBs were used to finance the
construction of the Navajo Generating Station (Navajo) scrubber facilities
which qualify for tax-exempt financing.
On October 12, 1995, Clark County, Nevada issued $76.75 million in
floating rate revenue bonds (Nevada Power Company Project) Series 1995A IDBs
due 2030. Net proceeds from the sale of the Series 1995A IDBs were placed on
deposit with a trustee and will be used to finance the construction of
certain facilities which qualify for tax-exempt financing. At December 31,
1996, $52.7 million remained on deposit with the trustee.
The Indenture under which the Company's first mortgage bonds are issued
provides that no additional bonds may be issued unless earnings as defined
equal at least two and one-half times the interest requirements on all bonds
to be outstanding after the new issue. Based on its earnings through
December 31, 1996 and assuming an 8 percent interest rate on new bonds, the
Company would be able to issue approximately $481 million of additional
first mortgage bonds. The Company's ability to issue additional debt is
also limited by the need to maintain a reasonable ratio of debt to equity.
The Company's ability to sell additional preferred stock is limited by
the necessity to meet required dividend coverages. At December 31, 1996,
the applicable dividend coverage test would permit the issuance of $374
million of additional preferred stock at a dividend rate of 8 percent.
3
RESOURCE PLANNING
The Company's rate of customer growth, especially in recent years, has
been among the highest in the nation. The annual customer growth rate was
7.2 percent, 6.0 percent, and 6.0 percent in 1996, 1995 and 1994,
respectively.
The peak demand for electricity by the Company's customers increased
from 3,066 megawatts in 1995 to 3,332 megawatts in 1996. The Company's 1996
energy sales reached 13,697,059 megawatthours, an increase of 13.1 percent
over 1995.
Pursuant to Nevada law, every three years the Company files with the
PSC a forecast of electricity demands for the next 20 years and the
Company's plans to meet those demands. The Company is required to file its
next resource plan by July 1, 1997. Among the major items in the Company's
1994 Resource Plan, as refiled and amended, which were approved by the PSC
in 1994 and 1995 are the following:
(1) the Company will continue to pursue a strategy of relying
upon short-term power purchases to meet the forecasted increases
in load;
(2) the Company will maintain sufficient flexibility to implement
an efficient cost-effective resource acquisition process where
appropriate, noting that the competitive solicitation process
remains the preferred method for comparing resource options;
(3) the Company will proceed with the installation of the initial
230 kV circuit and associated substation and communication
facilities on the previously approved Arden-Northwest 230 kV
Transmission Line;
(4) the Company will proceed with the rerouting of a portion of
the #2 Arden-McCullough 230 kV Transmission Line;
(5) the Company will proceed with limited resource planning
approval to seek the necessary UEPA and other permitting
approvals, and to acquire necessary sites and rights-of-way for
two 230 kV switching stations;
(6) the Company will proceed with a Renewable Energy Program for
the Company to utilize all appropriate incentives, resources, and
expertise to foster the development of economically competitive
renewable energy systems with the intent to provide Southern
Nevada customers with 20 megawatts of solar-generated electricity
by the year 2002.
REGULATION AND RATES
The Company is subject to regulation by the PSC which has regulatory
powers with respect to rates, facilities, services, reports, issuance of
securities and other matters.
Following is a summary of the rate increases and decreases that have
been granted the Company during the past three years.
Amount in
Effective Millions
Date Nature of Increase (Decrease) of Dollars
------------- ----------------------------- ----------
February 1, 1994 Energy rate increase $ 23.6
October 1, 1994 General rate decrease (6.3)
October 1, 1995 Energy rate decrease (20.1)
December 1, 1995 Energy and resource plan
net rate decrease (17.6)
All amounts are on an annual basis.
On July 15, 1996, the Company filed a request with the PSC for
authorization to decrease energy rates by approximately $41 million under
the state's deferred energy accounting procedures. Prior to hearing, the
parties agreed to increase the proposed rate decrease to approximately $45
million. On December 12, 1996, an agreement was
4
reached with parties as to the rate design allocation. Pursuant to the
agreement public entities received a rate reduction of $11 million and other
large customers and medium-size commercial customers received $27 million.
Residential and small commercial customers received a reduction of $7
million. On January 23, 1997, the PSC approved the stipulation which took
effect on February 1, 1997.
On January 23, 1997, the PSC also rendered its decision in the last
phase of the 1995 deferred energy case and ordered a disallowance of $5.5
million, net of tax, which was recorded in the fourth quarter of 1996
regarding various coal contracting matters. The PSC Staff and Consumer
Advocate Office initially filed testimony seeking disallowance from recovery
and credit to the Company's customers in excess of $25 million.
As permitted by state statute, the Company defers differences between
the current cost of fuel plus net purchased power and base energy costs as
defined. Under regulations adopted by the PSC, the balance in the deferred
energy account at the end of twelve months should be cleared over a
subsequent period. Recovery of increased costs is permitted to the extent
that the Company has not realized its authorized overall rate of return. If
the Company has exceeded the authorized rate of return, the portion of
deferred energy costs represented in such excess is transferred to the next
deferred energy recovery period. The energy costs deferred are included as
a current item in determining taxable income for federal income tax
purposes. However, for financial statement purposes, the federal income tax
effect is deferred and amortized to income as the deferred energy account is
cleared. PSC regulations allow the fuel base portion of the Company's
general rates to be changed at the time of a hearing to clear the balance in
the deferred energy account. This permits the recovery of fuel expenses on
a deferred basis, but, recovery will have no effect on the Company's
earnings. Effective February 1, 1997, capacity costs associated with
purchased power were included in general rates rather than the deferred
energy cost accounting mechanism.
Starting in February 1997, the Company will be allowed to recover the
costs of developing its 20-year resource plan in general rates. In the
past, the recovery of these costs was administered under the state's
deferred accounting procedures. Also, by an order of the PSC in June 1988,
the Company is allowed to capitalize certain costs associated with
Commission approved conservation programs.
ENVIRONMENTAL MATTERS
The Company is subject to regulation by federal, state and local
authorities with regard to air and water quality control and other
environmental matters.
Environmental expenditures made by the Company are currently being
recovered through customer rates. Management believes environmental
expenditures will increase over time and the increased costs will also be
recovered as necessary utility expenses. The following is a discussion of
pending environmental matters:
The Federal Clean Air Act Amendments of 1990 (Amendments) include
provisions for reduction of emissions of oxides of nitrogen by establishing
new emission limits for coal-fired generating units. This will require the
installation of additional pollution-control technology at some of the Reid
Gardner Station generating units before 2000 at an estimated cost to the
Company of no more than $6 million.
The Amendments also mandated creation of the Grand Canyon Visibility
Transport Commission (Commission) to work toward the goal of visibility
improvement in the Grand Canyon and other national parks of the Colorado
Plateau. The Commission completed its report and recommendations to the
Environmental Protection Agency (EPA) in June 1996. The Commission's study
anticipates emissions from stationary sources, including power plants, to be
reduced over the next 40 years as a result of other provisions of the
Amendments. Additional power plant controls could become necessary if
expected emission reductions do not occur. The EPA will develop regulations
to implement the Commission's recommendations. The new regulations are
expected to be promulgated in 1997.
5
Related to visibility, the United States Congress authorized the EPA to
study the potential impact the Mohave Generating Station (Mohave) may have
on visibility in the Grand Canyon area. Results of this study are expected
in 1997. The cost of any improvements that may be required cannot be
determined at this time.
In 1991, the EPA published an order requiring Navajo to install
scrubbers to remove 90 percent of sulfur dioxide emissions beginning in
1997. As an 11.3 percent owner of Navajo, the Company will be required to
fund an estimated $53.1 million for installation of the scrubbers. The
first of three scrubber units is expected to be on line in November 1997.
At that point, the project will be approximately 50 percent complete. The
first of the other two units is expected to be on line in 1998 and the last
unit in 1999. The Company has spent $30.4 million on the scrubbers'
construction through 1996. In 1992, the Company received resource planning
approval from the PSC for its share of the cost of the scrubbers.
COMPETITION
On September 21, 1992, Valley Electric Association, Inc. (Valley
Electric) filed a complaint with the PSC alleging that the Company was
unlawfully providing service to the Nevada Test Site and requesting damages
and a cease and desist order. In an Opinion and Order issued on May 13,
1994, the PSC found that based on a 1963 territorial agreement (Agreement)
between Valley Electric and the Company, each of these two electric
suppliers have a non-exclusive right to provide service to the Test Site's
discretion. On an appeal brought by Valley Electric, the Eighth Judicial
District Court for Clark County Nevada (District Court) vacated the PSC's
Opinion and Order and ordered the PSC to issue an order requiring the
Company to cease and desist from any activity that violates the Agreement.
The District Court's Order is the subject of a pending appeal brought by the
United States Department of Energy (DOE) on behalf of the Test Site.
In July 1996, Valley Electric, the Company, the PSC Regulatory
Operations Staff and Lincoln County Power District No. 1 (Lincoln Power)(a
governmental electric supplier that holds itself out as providing electric
service in Lincoln County, Nevada, where a portion of the Test Site is
located), entered into a Stipulation, Settlement Agreement and Release
(Settlement Agreement.) The term of the Settlement Agreement is three
years, commencing with the date it is approved by the PSC. Under the
Settlement Agreement, the Test Site's electrical usage would be split among
Valley Electric (40 percent), the Company (40 percent) and Lincoln Power (20
percent), and each of the three electric suppliers unconditionally released
and forever discharged each other from any and all claims for damages based
directly or indirectly on the geographic scope of the service provided to
the Test Site before and during the term of the Settlement Agreement. On
July 30, 1996, the parties to the Settlement Agreement jointly requested PSC
approval of the Settlement Agreement, the DOE has opposed approval, and the
approval proceedings are currently pending before the PSC. Regardless of the
outcome of this matter, the Company believes there will not be a material
impact on its operations, or upon its competitive position generally.
The electric utility industry is in the midst of change. With the
Federal Energy Regulatory Commission's (FERC) recent rulings and several
states considering and passing legislation to increase competition by
allowing customers a choice in their electric supplier ("retail wheeling"),
Company management believes the electric utility industry of the future will
be very different from that of the past.
In April 1996, the FERC issued a ruling that opens wholesale power
sales to competition by requiring public utilities owning, controlling, or
operating transmission lines to file non-discriminatory open access tariffs.
In another ruling, the FERC requires public utilities to implement standards
of conduct and an Open Access Same-time Information System (OASIS) so that
utilities obtain information about their transmission through the OASIS the
same way their competitors do. The Company has made organizational changes
which were necessary to ensure compliance with the recent rulings.
The FERC also found that if costs are stranded by retail wheeling, the
states should make decisions regarding recovery with the FERC only becoming
involved if state regulators lack authority under state law.
6
In September 1995, the PSC opened a docket to examine electric industry
restructuring issues. The docket was intended to supplement the
subcommittee established by the Nevada Legislature during the 1995
legislative session to study the effects of competition in the generation,
sale and transmission of electric energy. In January 1997, the legislative
subcommittee approved a bill draft request recommending the legislature
thoroughly study the industry restructuring issues in the 1997 legislative
session to determine the direction that the state of Nevada should take with
respect to retail wheeling. The subcommittee's proposed bill would
establish a legislative oversight committee to ensure that the regulatory
agency implementing retail wheeling complies with the legislative intent.
The PSC issued a report in June of 1996 and concluded if the legislature
chooses to authorize retail wheeling, it can be done in a manner which
benefits Nevada. Implementation would be complicated but achievable. In
February 1997, the PSC requested legislation that would give the PSC the
authority to prepare regulations that would allow retail wheeling in Nevada.
The retail wheeling debate and discussion will continue in the 1997
session of the Nevada Legislature and the PSC's investigatory docket. The
United States Congress will also consider proposals to restructure the
electric utility industry in order to introduce retail wheeling. The
Company will continue to actively participate in these debates and
discussions.
EMPLOYEES
The Company had 1,792 employees at December 31, 1996.
ITEM 2. PROPERTIES
The Company's generating facilities are described under "Item 1.
Business, Sources of Electric Energy Supply".
The Company shares ownership in a 59-mile, 500 kilovolt line and two
15-mile, 230 kilovolt lines that transmit power from the Mohave Generating
Station near Davis Dam on the Colorado River via Eldorado Substation to Mead
Substation located near Boulder City, Nevada. The Company has 32 miles of
230 kilovolt line from Mead Substation to Las Vegas. This line, together
with two Company-owned 230 kilovolt lines presently connected to the Bureau
of Reclamation lines between Mead Substation and Henderson, Nevada, transmit
the Mohave Generating Station power to the Las Vegas area. A 25-mile, 230
kilovolt line between the Mead Substation and the Company's Winterwood
Substation was energized in 1988. This line brings the additional Hoover
energy to the Las Vegas Area and increases the Company's interconnected
transmission capabilities. The Company shares ownership in 76 miles of 500
kilovolt transmission line from the Navajo Generating Station to the
Moenkopi Switchyard in Coconino County, Arizona (the Southern Transmission
System) and 274 miles of 500 kilovolt transmission line from the Navajo
Generating Station to the McCullough Substation in Clark County, Nevada (the
Western Transmission System). Power is transmitted from the McCullough
Substation to the Las Vegas area via three 230 kilovolt lines of 23 miles,
25 miles and 32 miles in length, respectively. The 25-mile line was
energized in May 1992. Two 230 kilovolt lines transmit power from the Reid
Gardner Station located near Glendale, Nevada. One is a 39 mile line to the
Pecos Substation and the other a 25 mile line to the Harry Allen Substation.
In 1994, 20 miles of a 230 kilovolt line from the Harry Allen Substation to
the Pecos Substation was energized. One 39-mile, 230 kilovolt line
transmits power from the Reid Gardner Station located near Glendale, Nevada
to the Pecos Substation near North Las Vegas. A 7 mile, 230 kilovolt line
between Westside and Decatur Substations, both located in Las Vegas, was
energized in 1991. In addition to the above, the Company has 294 miles of
138 kilovolt and 488 miles of 69 kilovolt transmission lines in service.
In 1990 the Company added a new transmission interconnection consisting
of a 345 kilovolt line from Harry Allen Substation in Southern Nevada to the
Nevada-Utah border where it connects with a PacifiCorp line to Red Butte
Substation in Southern Utah near the City of St. George and a 230 kilovolt
line from Harry Allen Substation to Westside Substation which is located in
Las Vegas. The Company owns the 50-mile, 230 kilovolt line and the 69 miles
of the 345 kilovolt line from Harry Allen
7
Substation to the Nevada-Utah border; PacifiCorp owns the portion of the
345 kilovolt line from the Nevada-Utah border to Red Butte Substation.
At December 31, 1996, the Company owned 106 transmission and
distribution substations with a total installed transformer capacity of
10,908,783 kilovolt-amperes. In addition it co-owns with others the above
mentioned Eldorado Substation with installed transformer capacity of
1,000,000 kilovolt-amperes, the McCullough Substation with installed
transformer capacity of 1,250,000 kilovolt-amperes, the Reid Gardner Unit
No. 4 Substation with installed capacity of 318,000 kilovolt-amperes and
Mead Substation with 250,000 kilovolt-amperes.
At Harry Allen Substation, the Company has a 336,000 kilovolt-ampere
transformer and two 336,000 kilovolt-ampere 345 kilovolt phase shifting
transformers which are used for necessary voltage transformations and to
control flows on the interconnection.
As of December 31, 1996, there were approximately 3,142 miles of pole
line together with approximately 8,058 cable miles of underground in the
Company's distribution system with a total installed distribution
transformer capacity of 6,472,112 kilovolt-amperes.
ITEM 3. LEGAL PROCEEDINGS
The Company is involved in litigation arising in the normal course of
business. While the results of such litigation cannot be predicted with
certainty, management, based upon advice of counsel, believes that the final
outcome will not have a material adverse effect on the Company's financial
position, results of operations and net cash flow.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of security holders during the fourth
quarter of the fiscal year covered by this report, through the solicitation
of proxies or otherwise.
SUPPLEMENTAL ITEM. EXECUTIVE OFFICERS OF REGISTRANT
The Company's executive officers are as follows:
Age as of
Name December 31, 1996 Position
---- ----------------- --------
Charles A. Lenzie 59 Chairman of the Board, President and Chief
Executive Officer
David G. Barneby 51 Vice President, Power Delivery
Cynthia K. Gilliam 48 Vice President, Retail Customer Operations
Richard L. Hinckley 41 Vice President, Secretary and General Counsel
Steven W. Rigazio 42 Vice President, Finance and Planning,
Treasurer, Chief Financial Officer
Gloria T. Banks Weddle 47 Vice President, Corporate Services
Sally L. Galati 35 Vice President, Distribution
Each of the executive officers has been actively engaged in the
business of the Company for more than five years.
Charles A. Lenzie was elected Chairman of the Board and Chief Executive
Officer on May 1, 1989. Prior to that time he was President of the Company.
Due to the resignation of James C. Holcombe as President and Chief Operating
Officer on August 1, 1995, Mr. Lenzie was appointed President of the Company
effective August 10, 1995.
David G. Barneby was elected Vice President, Power Delivery effective
October 14, 1993. He joined the Company in 1965 as a Student Engineer and
was made a Junior Engineer in 1967. He was promoted to Superintendent of
the Reid Gardner Generating Station in 1976; Project Manager - Reid Gardner
Unit 4 in 1979 and in 1985 appointed Manager - Generation Engineering and
Construction. He was elected Vice President -
8
Generation in 1989. His title was changed to Vice President - Power Supply
later that year.
Cynthia K. Gilliam was elected Vice President, Retail Customer
Operations effective October 14, 1993. She joined the Company in 1974 as a
Rate Analyst and was promoted to Rates Administrator in 1979 and to Manager
of Financial Planning in 1983. In 1987, she was appointed Manager of Human
Resource Planning. She was elected Vice President - Personnel in 1988 and
her title was changed to Vice President - Human Resources in 1989. In 1992,
she was elected Vice President - Customer Service.
Richard L. Hinckley was elected Vice President, Secretary and General
Counsel on May 15, 1991. He joined the Company as Staff Counsel in 1985 and
was promoted to Assistant Secretary and Chief Counsel in 1989. Prior to
joining the Company, he served as Staff Attorney with the PSC and as
Assistant Attorney General in Utah.
Steven W. Rigazio was elected Vice President, Finance and Planning,
Treasurer, Chief Financial Officer effective October 14, 1993. He joined
the Company in 1984 as a Rates Administrator and was promoted to Supervisor
of Rates and Regulations in 1985, Manager of Rates and Regulatory Affairs in
1986, Director of System Planning in 1990, Vice President - Planning in 1991
and Vice President and Treasurer, Chief Financial Officer in 1992.
Gloria T. Banks Weddle was named Vice President, Corporate Services
effective January 1, 1996. She first joined the Company in 1973, was
promoted to Manager of Compensation and Benefits in 1988 and Director of
Human Resources in 1991. She was elected Vice President - Human Resources
in 1992. On October 14, 1993, she was elected Vice President, Human
Resources and Corporate Services. Her title was changed to Vice President -
Corporate Services in 1996.
Sally L. Galati was named Vice President, Distribution on March 13,
1997. She first joined the Company in 1984 as a Distribution and
Transmission Engineer and was promoted to Supervisor, Major Projects in
1992, Acting Manager, Builder Services in 1993, Director, Distribution
System Services in 1994 and Division Director, Distribution Operations &
Construction in 1995.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK
AND RELATED SECURITY HOLDER MATTERS
Information with respect to the principal market for the Company's
common stock, securities exchange, shareholders of record, quarterly high
and low sales prices and quarterly dividend payments for 1996 and 1995 are
hereby incorporated by reference from page 34 of the Company's Annual Report
to Shareholders for the year ended December 31, 1996, which is filed
herewith as Exhibit 13.
ITEM 6. SELECTED FINANCIAL DATA
The information required by Item 6 is hereby incorporated by reference
from page 36 of the Company's Annual Report to Shareholders for the year
ended December 31, 1996, which is filed herewith as Exhibit 13.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
The information required by Item 7 is hereby incorporated by reference
from pages 16 to 19 of the Company's Annual Report to Shareholders for the
year ended December 31, 1996, which are filed herewith as Exhibit 13.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Company's financial statements for the years ended December 31,
1996, 1995 and 1994 together with the auditors' report thereon required by
Item 8 are incorporated by reference from the following pages of the
Company's Annual Report to
9
Shareholders for the year ended December 31, 1996, which are filed herewith
as Exhibit 13.
Annual
Report
Page
------
Statements of Income for the Years Ended
December 31, 1996, 1995 and 1994...................... 20
Statements of Cash Flows for the Years Ended
December 31, 1996, 1995 and 1994...................... 21
Balance Sheets - December 31, 1996 and 1995............ 22-23
Schedules of Capitalization -
December 31, 1996 and 1995............................ 24
Schedules of Long-Term Debt -
December 31, 1996 and 1995............................ 25
Statements of Retained Earnings for the Years
Ended December 31, 1996, 1995 and 1994................ 26
Notes to Financial Statements.......................... 27-34
Independent Auditors' Report........................... 35
Report of Management................................... 35
See Note 11 of Notes to Financial Statements in the Company's Annual
Report to Shareholders for the unaudited selected quarterly financial data
required to be presented in this Item 8.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
There has been no Report on Form 8-K filed within the twenty-four
months prior to the date of the most recent financial statements, December
31, 1996, reporting a change of accountants.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Information required by Item 10 with respect to the Company's executive
officers is set forth in Part I, Item 4., under the preceding heading
"Supplemental Item. Executive Officers of Registrant." The other
information required by Item 10 is hereby incorporated by reference from the
Company's definitive Proxy Statement dated March 13, 1997 and heretofore
filed with the Securities and Exchange Commission (SEC.) (See the heading
therein "Election of Directors.")
ITEM 11. EXECUTIVE COMPENSATION
The information required by Item 11 is hereby incorporated by reference
from the Company's definitive Proxy Statement dated March 13, 1997 and
heretofore filed with the SEC. (See the heading therein "Executive
Compensation.")
ITEM 12. SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
The information required by Item 12 is hereby incorporated by reference
from the Company's definitive Proxy Statement dated March 13, 1997 and
heretofore filed with the SEC. (See the heading therein "Security Ownership
of Management.")
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Management of the Company has no knowledge of any transaction,
relationship or indebtedness which is required to be disclosed by Item 13.
10
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
AND REPORTS ON FORM 8-K
The Company's financial statements for the years ended December 31,
1996, 1995 and 1994 together with the auditors' report appearing on pages 20
to 35 of Nevada Power Company's 1996 Annual Report to Shareholders are
incorporated herein by reference and filed as Exhibit 13.
FINANCIAL STATEMENT SCHEDULE FOR THE
Years Ended December 31, 1996, 1995 and 1994 Page
- -------------------------------------------- ----
Independent Auditors' Consent and Report on Schedule.............. 21
Schedule VIII - Valuation and Qualifying Accounts................. 22
All other schedules are omitted because they are not applicable, not
required, or because the information is included in the financial statements
or notes thereto.
EXHIBITS
Filed Description
- -------- -----------
10.82 Financing Agreement between Coconino County, Arizona
Pollution Control Corporation and Nevada Power Company
dated October 1, 1996
13 Pages 16 to 36 of Nevada Power Company's Annual Report to
Shareholders for the Year Ended December 31, 1996
(incorporated by reference in Parts II and IV hereof)
23 Independent Auditors' Consent and Report on Schedule
27 Financial Data Schedule - December 31, 1996
11
In addition to those Exhibits shown above, the Company hereby
incorporates the following Exhibits pursuant to Exchange Act Rule 12B-32 and
Regulation #201.24 by reference to the filings set forth below:
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ---------------- --------
3.1 Restated Articles of Incorporation 3.8 to Form 10-K 1-4698
filed June 10, 1988 Year 1988
3.2 Amendment to Restated Articles of 4.7 to Form S-8 33-32372
Incorporation filed May 23, 1989
3.3 Amendment to Restated Articles of 4.8 to Form S-3 33-55698
Incorporation filed June 8, 1992
3.4 Restated Bylaws, as amended 3.4 to Form 10-K 1-4698
March 9, 1995 Year 1995
4.1 Certificate of Designation of Cumulative
Preferred Stock as follows:
5.40% Series 2.1 to Form S-1 2-16968
5.20% Series 2.1 to Form S-1 2-20618
4.70% Series 3.2 to Form 8-K 1-4698
July 1965
8% Series 2.1 to Form S-7 2-44513
8.70% Series 2.1 to Form S-7 2-49622
11.50% Series 2.1 to Form S-7 2-52238
9.75% Series 2.1 to Form S-7 2-56788
Auction Series A 4.6 to Form S-3 33-15554
Auction Series A as amended
November 14, 1991 4.9 to Form S-3 33-44460
Auction Series A as amended
December 12, 1991 4.1 to Form 10-K 1-4698
Year 1992
9.90% Series 4.1 to Form 10-K 1-4698
Year 1992
4.2 Indenture of Mortgage and Deed of 4.2 to Form S-1 2-10932
Trust Providing for First Mortgage
Bonds, dated October 1, 1953 and
Twenty-Six Supplemental Indentures
as follows:
First Supplemental Indenture, 4.2 to Form S-1 2-11440
dated August 1, 1954
Second Supplemental Indenture, 4.9 to Form S-1 2-12566
dated September 1, 1956
Third Supplemental Indenture, 4.13 to Form S-1 2-14949
dated May 1, 1959
Fourth Supplemental Indenture, 4.5 to Form S-1 2-16968
dated October 1, 1960
Fifth Supplemental Indenture, 4.6 to Form S-16 2-74929
dated December 1, 1961
Sixth Supplemental Indenture, 4.6A to Form S-1 2-21689
dated October 1, 1963
Seventh Supplemental Indenture, 4.6B to Form S-1 2-22560
dated August 1, 1964
Eighth Supplemental Indenture, 4.6C to Form S-9 2-28348
dated April 1, 1968
Ninth Supplemental Indenture, 4.6D to Form S-1 2-34588
dated October 1, 1969
Tenth Supplemental Indenture, 4.6E to Form S-7 2-38314
dated October 1, 1970
Eleventh Supplemental Indenture, 2.12 to Form S-7 2-45728
dated November 1, 1972
12
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
Twelfth Supplemental Indenture, 2.13 to Form S-7 2-52350
dated December 1, 1974
Thirteenth Supplemental 4.14 to Form S-16 2-74929
Indenture, dated October 1,
1976
Fourteenth Supplemental 4.15 to Form S-16 2-74929
Indenture, dated May 1, 1977
Fifteenth Supplemental 4.16 to Form S-16 2-74929
Indenture dated September 1,
1978
Sixteenth Supplemental Indenture, 4.17 to Form S-16 2-74929
dated December 1, 1981
Seventeenth Supplemental 4.2 to Form 10-K 1-4698
Indenture, dated August 1, 1982 Year 1982
Eighteenth Supplemental Indenture, 4.6 to Form S-3 33-9537
dated November 1, 1986
Nineteenth Supplemental Indenture, 4.2 to Form 10-K 1-4698
dated October 1, 1989 Year 1989
Twentieth Supplemental Indenture, 4.21 to Form S-3 33-53034
dated May 1, 1992
Twenty-First Supplemental 4.22 to Form S-3 33-53034
Indenture, dated June 1, 1992
Twenty-Second Supplemental 4.23 to Form S-3 33-53034
Indenture, dated June 1, 1992
Twenty-Third Supplemental 4.23 to Form S-3 33-53034
Indenture, dated October 1, 1992
Twenty-Fourth Supplemental 4.23 to Form S-3 33-53034
Indenture, dated October 1, 1992
Twenty-Fifth Supplemental 4.23 to Form S-3 33-53034
Indenture, dated January 1, 1993
Twenty-Sixth Supplemental 4.2 to Form 10-K 1-4698
Indenture, dated May 1, 1995 Year 1995
4.3 Instrument of Further Assurance 4.8 to Form S-1 2-12566
dated April 1, 1956 to Indenture
of Mortgage and Deed of Trust
dated October 1, 1953
4.4 Rights Agreement dated October 15, 4.1 to Form 8-A 1-4698
1990 between Manufacturers Hanover Year 1990
Trust Company and Nevada Power
Company
10.1 Contract for Sale of Electrical 13.9A to Form S-1 2-10932
Energy between State of Nevada
and the Company, dated October
10, 1941
10.2 Amendment dated June 30, 1953 to 13.9A to Form S-1 2-10932
Exhibit 10.1
10.3 Contract for Sale of Electrical 13.10 to Form S-1 2-10932
Energy between State of Nevada
and the Company, dated June 1,
1951
10.4 Agreement dated November 10, 1948 13.18 to Form S-1 2-12697
between the Company and Lincoln
County Power District No. 1 and
Overton Power District No. 5
13
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
10.5 Agreement dated October 21, 1949 13.19 to Form S-9 2-12697
between the Company and Lincoln
County Power District No. 1 and
Overton Power District No. 5
10.6 Mohave Project Plant Site 13.27 to Form S-9 2-28348
Conveyance and Co-tenancy
Agreement dated May 29, 1967
between the Company and Salt
River Project Agricultural
Improvement and Power District
Southern California Edison
Company
10.7 Eldorado System Conveyance and 13.30 to Form S-9 2-28348
Co-tenancy Agreement dated
December 20, 1967 between the
Company and Salt River Project
Agricultural Improvement and
Power District and Southern
California Edison Company
10.8 Mohave Operating Agreement dated 13.26F to Form S-1 2-38314
July 6, 1970 between the Company,
Salt River Project Agricultural
Improvement and Power District,
Southern California Edison
Company and Department of Water
and Power of the City of Los
Angeles
10.9 Navajo Project Participation 13.27A to Form S-1 2-38314
Agreement dated September 30,
1969 between the Company, the
United States of America,
Arizona Public Service Company,
Department of Water and Power of
the City of Los Angeles, Salt
River Project Agricultural
Improvement and Power District
and Tucson Gas & Electric
Company
10.10 Navajo Project Coal Supply 13.27B to Form S-1 2-38314
Agreement dated June 1, 1970
between the Company, the United
States of America, Arizona
Public Service Company,
Department of Water and Power
of the City of Los Angeles,
Salt River Project Agricultural
District, Tucson Gas & Electric
Company and the Peabody Coal
Company
10.11 Contract dated January 1, 1968 13.32 to Form S-1 2-34588
between the Company and United
States Bureau of Reclamation for
interconnections at Mead Station
10.12 Note Agreement dated December 11, 5.35 to Form S-7 2-49622
1973 relating to $25,000,000
8-1/2% Promissory Notes due 1998
14
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
10.13 Reclaimed Wastewater Purchase 5.36 to Form S-7 2-52238
Agreement dated June 21, 1974
among City of Las Vegas, Nevada,
Clark County Sanitation District
No. 1, County of Clark, Nevada
and Nevada Power Company
10.14 Equipment Lease dated as of 5.37 to Form 8-K 1-4698
March 1, 1974 between Nevada Power April 1974
Company, Lessor, and Clark County,
Nevada, Lessee
10.15 Sublease Agreement dated as of 5.38 to Form 8-K 1-4698
March 1, 1974 between Clark April 1974
County, Nevada, Sublessor,
and Nevada Power Company,
Sublessee
10.16 Guaranty Agreement dated as of 5.39 to Form 8-K 1-4698
March 1, 1974 between Nevada April 1974
Power Company and Commerce
Union Bank as Trustee
10.17 Navajo Project Co-tenancy 5.31 to Form 8-K 1-4698
Agreement dated March 23, 1976 April 1974
between the Company, Arizona
Public Service Company,
Department of Water and
Power of the City of Los Angeles,
Salt River Project Agricultural
Improvement and Power District,
Tucson Gas & Electric Company
and the United States of America
10.18 Amended Mohave Project Coal Supply 5.35 to Form S-7 2-56356
Agreement dated May 26, 1976
between the Company and Southern
California Edison Company,
Department of Water and Power of
the City of Los Angeles, Salt
River Project Agricultural
Improvement and Power District
and the Peabody Coal Company
10.19 Amended Mohave Project Coal Slurry 5.36 to Form S-7 2-56356
Pipeline Agreement dated May 26,
1976 between Peabody Coal Company
and Black Mesa Pipeline, Inc.
(Exhibit B to Exhibit 10.18)
10.20 Coal Supply Agreement dated October 5.38 to Form S-7 2-56356
15, 1975 between the Company and
United States Fuel Company
10.21 Amendment dated November 19, 1976 5.30 to Form S-7 2-62105
to Exhibit 10.20
10.22 Participation Agreement Reid 5.34 to Form S-7 2-65097
Gardner Unit No. 4 dated July
11, 1979 between the Company
and California Department of
Water Resources
15
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ---------------- --------
10.23 Coal Supply Agreement dated 5.37 to Form S-7 2-62509
March 1, 1980 between the
Company and Beaver Creek
Coal Company
10.24 Coal Supply Agreement dated 5.38 to Form S-7 2-62509
March 1, 1980 between the
Company and Trail Mountain
Coal Company
10.25 Coal Supply Agreement dated 10.26 to Form 10-K 1-4698
December 8, 1980 between the Year 1981
Company and Plateau Mining
Company
10.26 Coal Supply Agreement dated 10.26 to Form 10-K 1-4698
August 31, 1982 between Year 1982
the Company and CO-OP
Mining Company
10.27 Coal Supply Agreement dated 10.27 to Form 10-K 1-4698
September 8, 1982 between the Year 1982
Company and Getty Mining
Company
10.28 Coal Supply Agreement dated 10.28 to Form 10-K 1-4698
September 8, 1982 between the Year 1982
Company and Tower Resources,
Inc.
10.29 Coal Supply Agreement dated 10.29 to Form 10-K 1-4698
September 22, 1982 between the Year 1982
Company and Beaver Creek Coal
Company
10.30 Memorandum of Understanding 10.30 to Form 10-K 1-4698
Concerning Interconnection Year 1983
between Utah Power & Light
Company and Nevada Power
Company dated February 2, 1984
10.31 Sublease Agreement between Powveg 10.31 to Form 10-K 1-4698
Leasing Corp., as Lessor and Year 1983
Nevada Power Company as Lessee,
dated January 11, 1984 for
lease of administrative
headquarters
10.32 Participation Agreement between 10.32 to Form 10-K 1-4698
Utah Power & Light Company and Year 1985
the Company dated December 19,
1985
10.33 Sale and Purchase Agreement dated 10.33 to Form 10-K 1-4698
as of December 23, 1985 by and Year 1985
between Nevada Power Company and
CP National Corporation
10.34 Restated Coal Sales Agreement as 10.34 to Form 10-K 1-4698
of July 1, 1985 by and between Year 1985
Nevada Power Company and Trail
Mountain Coal Company
10.35 Summary of Supplemental Executive 10.35 to Form 10-K 1-4698
Retirement Plan as approved Year 1985
November 14, 1985
16
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ---------------- --------
10.36 Financing Agreement dated as of 10.36 to Form 10-K 1-4698
February 1, 1983 between Clark Year 1985
County, Nevada and Nevada Power
Company
10.37 Financing Agreement between Clark 10.37 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1985
Company dated as of December 1,
1985
10.38 Reimbursement Agreement dated 10.38 to Form 10-K 1-4698
as of December 1, 1985 between Year 1986
The Fuji Bank, Limited and
Nevada Power Company
10.39 Contract for Sale of Electrical 10.39 to Form 10-K 1-4698
Energy between the State of Year 1987
Nevada and the Company, dated
July 8, 1987
10.40 Power Sales Agreement between 10.40 to Form 10-K 1-4698
Utah Power & Light Company and Year 1987
the Company, dated August 17,
1987
10.41 Transmission Facilities Agreement 10.41 to Form 10-K 1-4698
between Utah Power & Light Year 1987
Company and the Company, dated
August 17, 1987
10.42 Financing Agreement between Clark 10.42 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1988
Company dated as of November 1,
1988
10.43 Reimbursement Agreement dated 10.43 to Form 10-K 1-4698
as of November 1, 1988 between Year 1988
The Fuji Bank, Limited and
Nevada Power Company
10.44 Power Purchase Contract dated 10.45 to Form 10-K 1-4698
February 15, 1990 between Year 1989
Mission Energy Company and
Nevada Power Company
10.45 Contact for Long-Term Power 10.46 to Form 10-K 1-4698
Purchases from Qualifying Year 1989
Facilities dated May 1, 1989
between Oxford Energy of Nevada
and Nevada Power Company
10.46 Contract A for Long-Term Power 10.47 to Form 10-K 1-4698
Purchases from Qualifying Year 1989
Facilities dated May 2, 1989
between Bonneville Nevada
Corporation and Nevada Power
Company
10.47 Contract for Long-Term Power 10.48 to Form 10-K 1-4698
Purchases from Qualifying Year 1989
Facilities dated April 10, 1989
between Magna Energy Systems,
Eastern Sierra Energy Company
and Nevada Power Company
17
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
10.48 Contract B for Long-Term Power 10.49 to Form 10-K 1-4698
Purchases from a Qualifying Year 1989
Facility dated October 27, 1989
between Bonneville Nevada
Corporation and Nevada Power
Company
10.49 Contract for Long-Term Power 10.50 to Form 10-K 1-4698
Purchases from Qualified Year 1989
Facilities dated February 12,
1990 between Las Vegas
Co-generation, Inc. and Nevada
Power Company
10.50 Agreement for Transmission 10.51 to Form 10-K 1-4698
Service dated March 29, 1989 Year 1989
between Overton Power District
No. 5 , Lincoln County Power
District No. 1 and Nevada Power
Company
10.51 Contract dated June 30, 1988 10.52 to Form 10-K 1-4698
between United States Department Year 1989
of Energy Western Area Power
Administration and Nevada Power
Company
10.52 Executive Performance Incentive 10.53 to Form 10-K 1-4698
Plan dated as of January 1, 1989 Year 1989
10.53 Severance Allowance Plan 10.54 to Form 10-K 1-4698
adopted September 14, 1989 Year 1989
10.54 Power Purchase Contract dated 10.55 to Form 10-K 1-4698
July 5, 1990 between Year 1990
Mission Energy Company and
Nevada Power Company
10.55 Contract B for Long-Term Power 10.56 to Form 10-K 1-4698
Purchases from a Qualifying Year 1990
Facility dated May 24, 1990
between Bonneville Nevada
Corporation and Nevada Power
Company
10.56 Amendment dated June 15, 1989 to 10.57 to Form 10-K 1-4698
Exhibit 10.45 Year 1990
10.57 Amendment dated August 23, 1989 10.58 to Form 10-K 1-4698
to Exhibit 10.45 Year 1990
10.58 Amendment dated April 23, 1990 10.59 to Form 10-K 1-4698
to Exhibit 10.45 Year 1990
10.59 Exhibit H dated August 13, 1990 10.60 to Form 10-K 1-4698
to Exhibit 10.45 Year 1990
10.60 Western Systems Power Pool 10.61 to Form 10-K 1-4698
Agreement (Agreement) dated Year 1990
January 2, 1991 between
thirty-nine other Western
Systems Power Pool members as
listed on pages 1 and 2 of the
Agreement and Nevada Power
Company
10.61 Financing Agreement between Clark 10.62 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1990
Company dated June 1, 1990
18
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
10.62 Restated Power Sales Agreement 10.63 to Form 10-K 1-4698
dated March 25, 1991 between Year 1991
Pacificorp and Nevada Power
Company
10.63 Amendment dated July 17, 1990 to 10.64 to Form 10-K 1-4698
Exhibit 10.54 Year 1991
10.64 Financing Agreement between Clark 10.65 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1992
Company dated June 1, 1992
(Series 1992A)
10.65 Financing Agreement between Clark 10.66 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1992
Company dated June 1, 1992
(Series 1992B)
10.66 Financing Agreement between Clark 10.67 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1992
Company dated October 1, 1992
10.67 Power Sales Agreement dated 10.68 to Form 10-K 1-4698
October 19, 1992 between the Year 1992
Department of Water and Power
of the City of Los Angeles
and Nevada Power Company
10.68 Long-Term Incentive Plan dated 10.69 to Form 10-K 1-4698
as of January 1, 1993 Year 1993
10.69 Contract for Long-Term Power 10.70 to Form 10-K 1-4698
Purchases from Qualifying Year 1993
Facilities dated May 27, 1992
between Las Vegas Co-generation,
Inc. and Nevada Power Company
Replaces Exhibit 10.49
10.70 Settlement Agreement and Promissory 10.71 to Form 10-K 1-4698
Note between Mountain Coal Company Year 1993
and Atlantic Richfield Company and
Nevada Power Company dated
March 9, 1994
10.71 401(k) Savings Plan, as amended 99.1 to Form S-8 33-50809
and restated January 1, 1990
10.72 Amendment dated January 1, 1991 99.2 to Form S-8 33-50809
to Exhibit 10.71
10.73 Letter of Credit and Reimbursement 10.72 to Form 10-K 1-4698
Agreement dated as of April 12, Year 1994
1994 between Nevada Power Company
and Societe Generale, Los Angeles
Branch and Amendment No. 1 thereto
dated as of May 3, 1994
10.74 Loan Agreement dated as of November 10.73 to Form 10-K 1-4698
21, 1994 between Nevada Power Year 1994
Company, certain banks, and First
Interstate Bank of Nevada, N.A. as
the Administrative Agent
10.75 Financing Agreement between Clark 10.75 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1995
Company dated October 1, 1995
(Series 1995A)
19
EXHIBIT ORIGINALLY FILED
No. Description as Exhibit File No.
- ------- ----------- ----------------- --------
10.76 Financing Agreement between Clark 10.76 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1995
Company dated October 1, 1995
(Series 1995B)
10.77 Financing Agreement between Clark 10.77 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1995
Company dated October 1, 1995
(Series 1995C)
10.78 Financing Agreement between Clark 10.78 to Form 10-K 1-4698
County, Nevada and Nevada Power Year 1995
Company dated October 1, 1995
(Series 1995D)
10.79 Financing Agreement between 10.79 to Form 10-K 1-4698
Coconino County, Arizona Pollution Year 1995
Control Corporation and Nevada Power
Company dated October 1, 1995
(Series 1995E)
10.80 Letter of Credit and Reimbursement 10.80 to Form 10-K 1-4698
Agreement dated as of October 1, Year 1995
1995 among Nevada Power Company,
The Banks Named Herein, and Societe
Generale, Los Angeles Branch
10.81 Letter of Credit and Reimbursement 10.81 to Form 10-K 1-4698
Agreement dated as of October 1, Year 1995
1995 among Nevada Power Company,
The Banks Named Herein, and Barclays
Bank PLC, New York Branch
REPORTS ON FORM 8-K
The Company filed no current report on Form 8-K during the quarter
ended December 31, 1996.
20
INDEPENDENT AUDITORS' CONSENT AND REPORT ON SCHEDULE
We consent to the incorporation by reference in Registration Statements
No. 33-62691 and No. 333-21091 on Form S-3 and in Registration Statement No.
33-61365 on Form S-8 of Nevada Power Company of our report dated February
14, 1997 incorporated by reference in this Annual Report on Form 10-K of
Nevada Power Company for the year ended December 31, 1996.
Our audits of the financial statements referred to in our
aforementioned report also included the financial statement schedule of
Nevada Power Company, listed in Item 14. This financial statement schedule
is the responsibility of Nevada Power Company's management. Our
responsibility is to express an opinion based on our audits. In our
opinion, such financial statement schedule, when considered in relation to
the basic financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.
DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Las Vegas, Nevada
March 17, 1997
21
NEVADA POWER COMPANY
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
RESERVE FOR
DOUBTFUL
ACCOUNTS
---------
BALANCE AT DECEMBER 31, 1993............................. $ 1,125
Provision charged to income............................. 4,302
Amounts written off, less recoveries.................... (4,032)
-------
BALANCE AT DECEMBER 31, 1994............................. $ 1,395
Provision charged to income............................. 3,590
Amounts written off, less recoveries.................... (3,658)
-------
BALANCE AT DECEMBER 31, 1995............................. $ 1,327
Provision charged to income............................. 3,829
Amounts written off, less recoveries.................... (2,264)
-------
BALANCE AT DECEMBER 31, 1996............................. $ 2,892
=======
22
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
NEVADA POWER COMPANY
-------------------------------------
(Registrant)
March 18, 1997 By CHARLES A. LENZIE
-------------------------------------
Charles A. Lenzie
Chairman of the Board, President and
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1934, this report
has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
March 18, 1997 By CHARLES A. LENZIE
-------------------------------------
Charles A. Lenzie, Chairman of
the Board, President and Chief Executive
Officer and Director
(Principal Executive Officer)
March 18, 1997 By STEVEN W. RIGAZIO
-------------------------------------
Steven W. Rigazio, Vice President,
Finance and Planning, Treasurer,
Chief Financial Officer
(Principal Financial and
Principal Accounting Officer)
March 18, 1997 By MARY KAYE CASHMAN
-------------------------------------
Mary Kaye Cashman, Director
March 18, 1997 By MARY LEE COLEMAN
-------------------------------------
Mary Lee Coleman, Director
March 18, 1997 By FRED D. GIBSON JR.
-------------------------------------
Fred D. Gibson Jr., Director
March 18, 1997 By JOHN L. GOOLSBY
-------------------------------------
John L. Goolsby, Director
March 18, 1997 By JERRY E. HERBST
-------------------------------------
Jerry E. Herbst, Director
March 18, 1997 By JOHN F. O'REILLY
-------------------------------------
John F. O'Reilly, Director
March 18, 1997 By CONRAD L. RYAN
-------------------------------------
Conrad L. Ryan, Director
March 18, 1997 By FRANK E. SCOTT
-------------------------------------
Frank E. Scott, Director
By
-------------------------------------
Arthur M. Smith, Director
March 18, 1997 By JELINDO A. TIBERTI
-------------------------------------
Jelindo A. Tiberti, Director
23