UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended DECEMBER 31, 1997 Commission File Number 1-8788
SIERRA PACIFIC RESOURCES
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA 88-0198358
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. BOX 30150 (6100 NEIL ROAD)
RENO, NEVADA 89520-3150 (89511)
(Address of principal executive office) (Zip code)
(702) 834-4011
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
COMMON STOCK, $1.00 PAR VALUE NEW YORK STOCK EXCHANGE
COMMON STOCK, PURCHASE RIGHTS NEW YORK STOCK EXCHANGE
(Title of each class) (Name of each exchange on which
registered)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether 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
require 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
-----
State the aggregate market value of the voting stock held by non-affiliates. As
of March 16, 1998: $1,125,472,291
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Class
Common Stock, $1.00 par value Outstanding at March 16, 1998: 30,940,819 shares
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's definitive proxy statement filed in connection with
the Annual Meeting of shareholders, held May 18, 1998, are incorporated by
reference into Part III hereof.
The undersigned registrant hereby amends its Annual Report on Form 10-K for
the fiscal year ended December 31, 1997 by adding as an Appendix thereto the
Annual Report on Form 10-K of the registrant's wholly-owned subsidiary, Sierra
Pacific Power Company, for the fiscal year ended December 31, 1997, which
Appendix is attached to this amendment.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
SIERRA PACIFIC RESOURCES
By: /s/ Mark A. Ruelle
-----------------------------
Mark A. Ruelle
Senior Vice President
Chief Financial Officer
(Principal Financial Officer)
(Principal Accounting Officer)
Date: July 2, 1998
================================================================================
UNITED STATES 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 Commission File Number 0-508
DECEMBER 31, 1997
SIERRA PACIFIC POWER COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA 88-0044418
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. BOX 10100 (6100 NEIL ROAD)
RENO, NEVADA 89520-0400 (89511)
(Address of principal executive office) (Zip Code)
(702) 689-4011
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: none.
Securities registered pursuant to Section 12(g) of the Act:
Preferred Stock: Series A, $2.44 Dividend, $50 par value
---------------
(Title of Class) Series B, $2.36 Dividend, $50 par value
Series C, $3.90 Dividend, $50 par value
Sierra Pacific Power Capital Trust I,
$2.15 Dividend, $25 stated value
Indicate by check mark whether 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
--------
State the aggregate market value of the voting stock held by non-affiliates. As
of March 20, 1998: None
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Class Outstanding at March 20, 1998: 1,000 shares
Common Stock, $3.75 par value
================================================================================
SIERRA PACIFIC POWER COMPANY
1997 ANNUAL REPORT FORM 10-K
CONTENTS
PART I......................................................................................................... 4
ITEM 1. BUSINESS........................................................................................... 4
SIERRA PACIFIC POWER COMPANY................................................................................ 4
BUSINESS OUTLOOK AND OVERVIEW............................................................................... 5
ELECTRIC BUSINESS......................................................................................... 7
Business and Competitive Environment..................................................................... 7
MAJOR PROJECTS SUMMARY...................................................................................... 9
Pinon Pine Power Project................................................................................. 9
Alturas Intertie......................................................................................... 10
FACILITIES AND OPERATIONS................................................................................. 10
Total System............................................................................................. 10
Load and Resources Forecast.............................................................................. 12
Generation............................................................................................... 13
Purchased Power.......................................................................................... 13
Transmission............................................................................................. 15
Fuel Availability........................................................................................ 15
NATURAL GAS BUSINESS........................................................................................ 17
BUSINESS AND COMPETITIVE ENVIRONMENT...................................................................... 17
Competitive Issues....................................................................................... 18
Deregulation............................................................................................. 18
FACILITIES AND OPERATIONS................................................................................. 18
Transportation Capacity.................................................................................. 19
Storage Capacity......................................................................................... 19
WATER BUSINESS............................................................................................ 19
CONSTRUCTION PROGRAM...................................................................................... 21
GENERAL REGULATION........................................................................................ 21
RATE PROCEEDINGS.......................................................................................... 22
Nevada Matters........................................................................................... 22
ENVIRONMENT............................................................................................... 22
General.................................................................................................. 22
1997 Activities.......................................................................................... 23
GENERAL - FACILITIES...................................................................................... 24
Leases................................................................................................... 24
GENERAL - LEASEHOLDS...................................................................................... 24
GENERAL - FRANCHISES...................................................................................... 25
GENERAL - RESEARCH AND DEVELOPMENT........................................................................ 25
ITEM 2. PROPERTIES......................................................................................... 25
ITEM 3. LEGAL PROCEEDINGS.................................................................................. 26
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS................................................ 26
PART II........................................................................................................ 27
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS........................... 27
ITEM 6. SELECTED FINANCIAL DATA............................................................................ 28
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.............. 28
RESULTS OF OPERATIONS....................................................................................... 28
LIQUIDITY AND CAPITAL RESOURCES............................................................................. 33
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA........................................................ 38
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.................................................................. 46
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES.............. 64
PART III....................................................................................................... 65
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS................................................................... 65
ITEM 11. EXECUTIVE COMPENSATION............................................................................. 70
2
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT..................................... 76
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS..................................................... 77
CHANGE IN CONTROL AGREEMENT................................................................... 77
PART IV........................................................................................................ 79
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.................................... 79
(a) Financial Statements, Financial Statement Schedules and Exhibits................................... 79
Signatures.................................................................................................. 80
3
PART I
ITEM 1. BUSINESS
SIERRA PACIFIC POWER COMPANY (1)
--------------------------------
Sierra Pacific Power Company, hereinafter known as the Company or SPPC, is
a Nevada corporation organized in 1965 as a successor to a Maine corporation
organized in 1912. The Company became a wholly- owned subsidiary of Sierra
Pacific Resources (SPR) on May 31, 1984. Its mailing address is Post Office Box
10100 (6100 Neil Road), Reno, Nevada 89520-0400.
The Company has three primary subsidiaries: Pinon Pine Corp. (PPC), Pinon
Pine Investment Co. (PPIC) and Sierra Pacific Power Capital I (the Trust). The
Company, through PPC and PPIC, owns a 38% interest in the Pinon Pine Co., LLC
(The LLC) with a subsidiary of General Electric Capital Corporation owning the
remaining 62%. The Capital Trust was created to issue trust securities in order
to purchase the Company's junior subordinated debentures.
The Company is a public utility primarily engaged in the distribution,
generation, purchase and sale of electric energy. It provides electricity to
approximately 287,000 customers in a 50,000 square mile service area including
western, central and northeastern Nevada, including the cities of Reno, Sparks,
Carson City and Elko and a portion of eastern California, including the Lake
Tahoe area. In 1997, electric revenue was 82% of total revenue.
The Company used diverse resources to meet its 1997 electric energy
requirements, including gas and oil generation (33.8%), coal generation (21.3%),
hydroelectric generation (0.6%), and purchased power (44.3%). The Company has
no ownership interest in, nor does it operate any nuclear generating units.
The Company also provides natural gas in Nevada to approximately 101,000
customers in an area of about 600 square miles in Reno/Sparks and environs. It
supplies water service in Nevada to about 65,000 customers in the Reno/Sparks
metropolitan area. Natural gas revenues were 11% and water revenues were 7% of
total revenues.
In 1997, the Company added more customers than in any other year in recent
history. The Company's electric customer count grew by 3.2%; its natural gas
customer count increased by 5.2%; and its water customer count increased by
3.2%. Many factors account for this growth, not the least of which are
favorable business and tax climates.
The Company had 1,473 regular employees as of December 31, 1997, down 1.2%
from 1996. The Company's current contract with the International Brotherhood of
Electrical Workers, which represents 59% of the workforce, was renegotiated in
1997 and is in effect until December 31, 2000. The three-year contract provides
for a 2.75% general wage increase for most bargaining unit employees beginning
January 1, 1998, with 2.75% increases in both 1999 and 2000. In addition, the
contract provides for bargaining unit employees to participate in the incentive
compensation program. Nevada is a "right-to-work" state.
For a discussion of results of operations refer to Item 7, Management's
Discussion and Analysis of Financial Condition and Results of Operations.
4
BUSINESS OUTLOOK AND OVERVIEW (1)
---------------------------------
GENERAL ELECTRIC INDUSTRY TRENDS
Federal and state legislation is moving the electric utility industry
toward competition. Federal and state regulators play a critical role in
establishing a competitive marketplace. These changes generally focus on the
unbundling of utility services into separate products. The two major products
are energy (e.g. kilowatt hours) and the delivery of that energy (e.g.
transmission and distribution). Other services such as meter reading and
billing may also be opened to competition.
The Company is subject to California, Nevada, and Federal Energy Regulatory
Commission (FERC) regulatory jurisdiction. Federal and state regulation will
continue to play an active role in the Company's utility business. The Company's
electric system demand exceeds the import capabilities of its transmission
system. As such, a yet-to-be determined amount of the Company's generation
capacity may be identified as "must run". The output of the Company's generation
facilities that are considered to be "must run" may continue to be price
regulated. FERC will also regulate the Company's electric transmission system.
The states will continue to regulate those retail distribution services
determined to be non-competitive.
Approximately 82% of SPPC's operating revenues are related to electric
sales in Nevada. Nevada passed Assembly Bill 366 (AB366) in July 1997.
Pursuant to AB366, the Nevada Public Utilities Commission (PUCN) authorizes
customers to obtain competitive services from alternative sellers starting no
later than December 31, 1999, unless the PUCN determines a different date better
serves the public interest. AB366 allows the PUCN to authorize full recovery of
costs that it determines to be stranded. In August 1997, the PUCN opened an
investigatory docket of the issues to be considered as a result of restructuring
the electric industry. The Company is a participant in this docket. Issues
being addressed include:
1. Identification of all cost components in utility service and
establishment of allocation methods necessary for later pricing of
noncompetitive services;
2. Designation of services as potentially competitive or noncompetitive;
3. Determination of rate design and non-price terms and conditions for
noncompetitive services;
4. Establishment of licensing requirements for alternative sellers of
potentially competitive services;
5. Stranded costs;
(1) WHEN USED ANYWHERE IN THIS FORM 10-K, OR THE FORM 10-K OF SPR AND IN FUTURE
FILINGS BY SPR OR SPPC WITH THE SECURITIES AND EXCHANGE COMMISSION, IN SPR
OR SPPC'S PRESS RELEASES AND IN ORAL STATEMENTS MADE WITH THE APPROVAL OF
AN AUTHORIZED EXECUTIVE OFFICER, THE WORDS OR PHRASES "WILL LIKELY RESULT",
"ARE EXPECTED TO", "WILL CONTINUE", "IS ANTICIPATED", "ESTIMATED",
"PROJECT", OR "OUTLOOK" OR SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS ARE SUBJECT TO CERTAIN
RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM HISTORICAL EARNINGS AND THOSE PRESENTLY ANTICIPATED OR
PROJECTED. SPPC WISHES TO CAUTION READERS NOT TO PLACE UNDUE RELIANCE ON
ANY SUCH FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE MADE.
SPPC WISHES TO ADVISE READERS THAT VARIOUS FACTORS DESCRIBED IN THESE FORMS
10-K COULD CAUSE SPPC'S ACTUAL RESULTS FOR FUTURE PERIODS TO DIFFER
MATERIALLY FROM ANY OPINIONS OR STATEMENTS EXPRESSED WITH RESPECT TO FUTURE
PERIODS IN ANY CURRENT STATEMENTS. SPPC SPECIFICALLY DECLINES ANY
OBLIGATION TO PUBLICLY RELEASE THE RESULT OF ANY REVISIONS WHICH MAY BE
MADE TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES
AFTER THE DATE OF SUCH STATEMENTS OR TO REFLECT THE OCCURRENCE OF
ANTICIPATED OR UNANTICIPATED EVENTS.
5
6. Criteria and standards by which the PUCN will apply the legislative
requirements concerning affiliate relations;
7. Criteria and process by which the PUCN will appoint providers of
bundled electric service;
8. Consumer protection;
9. Anti-competitive behavior codes of conduct and enforcement;
10. Price regulation for potentially competitive services in immature
markets;
11. Compliance plans in accordance with regulation;
12. Options for complying with legislative mandates for integrated resource
planning and portfolio standards; and
13. Innovative pricing for noncompetitive services.
California accounts for about 6% of the Company's total electric kwh retail
sales. California requires all investor-owned utilities, including SPPC, to
offer all customers direct access beginning March 31, 1998, and required a 10%
rate reduction for all residential and small commercial customers effective
January 1, 1998. California customers may choose to continue to take service
from their incumbent utility at tariff rates, purchase energy from marketers or
contract directly with a generator. Any customers choosing to purchase energy
from marketers or generators will pay a distribution fee for their use of the
Company's transmission and distribution system. Operating results should not be
materially impacted by these regulatory changes because of the continued use of
the Company's transmission/distribution facilities and the Company's limited
exposure in California. See Item 7, California Matters.
------------------
In preparation for competition, the Company has reduced ongoing costs and
improved operations. Nevada electric rates were reduced in 1995 and 1997, and
will remain frozen until December 31, 1999. A Nevada rate plan is currently in
effect that provides for a 50/50 sharing between customers and shareholders of
electric earnings in excess of a 12 percent return on equity. In addition, in
lieu of a 50% refund, SPPC can apply excess earnings to buy down, or buy out of,
higher cost long-term fuel and purchased power contracts. The Company's 1997
earnings were sufficient to partially buy down a portion of a higher cost coal
contract and provide a refund to customers. Furthermore, the Company began
making improvements during 1997 to its customer information and billing systems
to support a competitive environment.
The Company is pursuing a long-term billing solution for its 450,000
electric, gas and water customers which will allow the Company to bill direct
access options. The Company's efforts in the next few months will concentrate
on detailed analyses of several new billing systems. By late summer or early
fall 1998, the Company will determine how it will provide a permanent
consolidated billing solution for customers.
For information regarding regulatory changes affecting SPPC, see Item 7,
Nevada Matters, California Matters, FERC Matters and Note 2 of the Company's
- -------------- ------------------ ------------
consolidated financial statements.
6
ELECTRIC BUSINESS
BUSINESS AND COMPETITIVE ENVIRONMENT
- ------------------------------------
The Company's electric business contributed $540 million (82.0%) of 1997
operating revenues. Typically the electric business peaks both in summer and
winter. The system has an annual load factor of approximately 72.3% which is
higher than the industry norm.
Winter peak loads are due to shorter daylight hours, colder temperatures
(which affect space heating requirements) and ski resort demands (snowmaking,
lifts, tourism, etc.). Summer peak loads result from air-conditioning, cooling
equipment and irrigation pumping. The Company's peak load increased an average
of three percent annually over the past five years, reaching 1,342 megawatts
(MW) on August 7, 1997. The Company's electric MWH sales have increased an
average of five percent annually over the past five years.
A significant part of the growth in SPPC's electric sales has resulted from
growth in the residential area and in the gold mining industry in northern
Nevada.
SPPC's electric customers by class contributed the following percentages
toward 1997 megawatt-hour sales:
MWH
SALES
--------
Residential 23.4%
Commercial and Industrial:
Mining 28.6%
Resorts and Recreation 9.3%
All Other 33.5%
Wholesale 3.8%
Miscellaneous 1.4%
--------
Total 100.0%
========
Residential and small commercial sectors increased 3.2%, the highest growth
rate in recent history.
In response to this growth, SPPC is implementing a program to provide
customers more choices in the design and installation of electric service. Under
this program, customers may select a contractor other than the Company to design
and install facilities. Additionally, the Company is evaluating enhanced
efficiency measures such as automated dispatch and mobile data capabilities.
SPPC works closely with developers to improve efficiency and customer
satisfaction.
Nevada leads the nation in gold production, accounting for about sixty-six
percent of all U.S. production and nine percent of world production. Nevada gold
production for 1997 was about 8 million ounces. The majority of Nevada's gold
mines are located within the Company's service area. Currently, known gold
reserves in Nevada total approximately 140 million ounces, or 75 percent of the
nation's known gold reserves. These reserves are sufficient to continue
production at 7 million ounces annually for the next two decades.
During 1997, world gold prices fell from about $360 per ounce to $289 per
ounce. Mining industry reports indicate many Nevada gold mines have production
costs of less than $300 per ounce, with some of the larger mines producing
within $177 to $250 per ounce. When compared to world production costs, Nevada,
at
7
an average $229 per ounce, is well below the worldwide average of $262 per
ounce. While Nevada's gold mines have the lowest costs in the world, investment
in exploration and development has fallen and may continue to fall. In addition,
the low gold price may also shorten the expected mine lives of certain Nevada
properties as mining lower grade ore becomes uneconomic.
Nevada also has other mineral producing mines. Approximately 24 million
ounces of silver were produced in 1997, worth approximately $120 million, and
over 300 million ounces of silver reserves have been identified in the State.
Silver demand has been exceeding new supply for most of the decade, drawing down
inventories built up in the 1980's. Other minerals produced in Nevada include
copper, lithium, mercury, barite, diatomite, gypsum, and lime, valued at over
$400 million annually.
The Company has seven 5 year long-term power sales agreements with major
mining customers. The final contract expires in 2003. Five of these agreements
have been reviewed and approved by the Nevada Commission as part of the
Company's new tariff structure designed for major customers. These mining
agreements secure over 266 megawatts of present and future mining load, or
approximately $91 million in annual revenue. The agreements require customers
to maintain minimum demand and load factor levels, and to include termination
charge provisions to recover all customer-specific facilities investment and
early termination.
The Resorts and Recreation Group is comprised of hotels, casinos, and ski
resorts. This major customer segment comprises 9.3% of the total electric
system retail kwh sales and 15.8% of the total major customer account electric
sales. Tourism and gaming continue to be key contributors to the local economy.
The economic impact on Washoe County, Reno and environs in 1997 was estimated
at over $3.5 billion. Electric sales to the gaming sector increased in 1997 by
6,082 megawatt-hours (0.8%) over 1996. Several of the largest gaming customers
completed major interior remodeling projects in 1997 and several others finished
expansion projects to accommodate projected increased tourist traffic in 1998.
Growth in the Northern Nevada gaming sector in recent years has provided
significant energy sales and revenue growth for the Company. However, the
advent of increased competition, particularly "Indian gaming" in key feeder
markets, and the continuing expansion in Las Vegas, may have a potentially
negative impact on the Northern Nevada market share and ultimately energy sales.
Northern Nevada casinos, faced with increased competition and a potentially
slowing visitor growth, are now taking a more critical look at competitive
strategies, profit margins, and facility-related operating costs. They are
evaluating programs to either reduce energy rates and/or decrease energy
consumption. Northern Nevada casinos are evaluating strategies to expand their
entertainment portfolio, not in an attempt to compete against the Las Vegas
market, but to differentiate themselves from each other. The key to this
strategy is packaging entertainment value, customer comfort, reasonable pricing
with the natural attraction of the High Sierra geographic location.
8
During 1997, firm and non-firm sales to wholesale customers comprised about
4% of total energy sales. The wholesale market is very competitive and sales
into this market are typically made at low margins.
1997 Percent
(MWH) of Total
--------- ---------
Firm Sales 81,012 27.6%
Non-firm Sales 85,391 29.1%
Firm Off-System Sales 127,298 43.3%
--------- ---------
Total 293,701 100.0%
========= =========
While wholesale sales in 1997 represent 4% of kwh sales, they
represent only 2.5% of electric revenues. Recent changes in federal regulations
covering the rules under which transmission systems are operated will increase
competition for wholesale sales and may impact the level of firm and non-firm
wholesale sales made in the future. See Item 7, FERC Matters.
------------
The Company's industrial and large commercial customers continue their
interest in the electric supply source options potentially available to them
under regulatory reforms. The Company actively participates in regulatory
reform deliberations. See Item 7, Nevada Matters, California Matters, and FERC
-------------- ------------------ ----
Matters.
- -------
MAJOR PROJECTS SUMMARY
----------------------
The following projects were approved in previous resource plans. See Rate
----
Proceedings.
- -----------
PINON PINE POWER PROJECT
- ------------------------
In August 1992, the Company executed a cooperative agreement with the U.S.
Department of Energy (DOE) for the construction of a coal-gasification power
plant. The project, known as the Pinon Pine Power Project (Pinon), was selected
by the DOE for funding under the fourth round of the Federal Clean Coal
Technology Program.
This clean coal integrated gasification combined-cycle power plant will be
fully capable of operating on syngas produced from coal, natural gas, and,
potentially, other fuels. The project consists of a coal gasification facility
and a Company-owned power island and post gasification facilities to clean and
partially cool the syngas produced by the gasifier. The current rating is 93
megawatts in the winter and 89 megawatts in the summer. Upon commissioning of
all coal gasification facilities, the projected ratings are 106 megawatts in the
winter and 96 megawatts in the summer.
The DOE is providing funding for approximately 43% of the construction cost
and half of the operating and fuel expenses for the first 36 months of
operation. The DOE has committed $168 million of funding for Pinon. Estimated
construction start-up and commissioning costs for Pinon, including the DOE's
portion are approximately $298.7 million, which includes permitting, taxes,
start-up commissioning, operator training and Allowance for Funds Used During
Construction. Expected DOE funding for construction is $131.8 million.
The Company's cost per kilowatt of capacity net of DOE construction after
commissioning of all coal gasification facilities, and prior to the sale of the
gasifier is $1,574 based on the peak winter rating and $1,739 based on the
summer rating.
9
Construction began on the project in February 1995, following resource plan
approval and the receipt of all permits and other approvals. The natural gas
portion (combined cycle combustion turbine) was completed and placed in service
December 1, 1996. The balance of the plant is expected to be in service by May
1998. The Company currently estimates that the construction of the gasifier
portion of the project will overrun the fixed contract price by approximately
24% or $11.5 million. The overrun is primarily due to redesign issues,
resolving technical issues related to start up and other costs due to a later
than anticipated in-service date. The Company and Foster Wheeler have entered
into an alternative dispute resolution process in an attempt to resolve issues
on total construction costs. At this time, the Company does not have any
estimates as to the outcome of the proceeding.
Pinon Pine Co. and Pinon Pine Investment Co., subsidiaries of the Company,
own 25% and 75%, respectively, of a 38% interest in the Pinon Pine Company LLC
(LLC), with a subsidiary of General Electric Capital Corporation (GECC) holding
a 62% interest. The LLC was formed to take advantage of federal income tax
credits associated with the alternative fuel (syngas) produced by the coal
gasifier and available under Section 29 of the Internal Revenue Code.
The Company is under contract to build and operate the gasifier portion of
the facility for the LLC. The Company has also agreed to purchase from the LLC
the syngas produced in the gasifier for use in the Company-owned power island.
These contracts are contingent upon the gasifier meeting the necessary
requirements to be eligible for the Section 29 credits. The contracts also
contain performance warranties which require the Company to make specified
payments to, or to purchase the gasifier from, the LLC under certain conditions.
Due to the later than anticipated in-service date for the gasifier of April
1998, certain performance warranties required by the contract were not met by
December 31, 1997. Consequently the Company has reserved $2.8 million as
satisfaction of the contract performance obligation. See Note 4 of the
Company's consolidated financial statements.
ALTURAS INTERTIE
- ----------------
SPPC is constructing the Alturas Intertie transmission line to better serve
existing load, new customers and to significantly increase SPPC's access to
lower cost resources. This 345 kv line will originate west of Alturas,
California, and will extend 165 miles south to Reno. To date, the Company has
spent approximately $83.4 million on the project. The current estimated cost,
including AFUDC, is approximately $149 million. Construction commenced on
February 9, 1998 and is expected to be completed in late 1998.
FACILITIES AND OPERATIONS
TOTAL SYSTEM
- ------------
As of December 31, 1997, the Company's electric transmission facilities
consisted of approximately 3,900 overhead pole line miles and 80 substations.
Its distribution facilities consisted of approximately 9,200 overhead pole line
miles, 4,500 underground cable miles and 176 substations.
10
The Company continues to maintain a wide variety of resources in its
generation system. During 1997, the Company generated 55.7% of its total
electric energy requirements in its own plants, purchasing the remaining 44.3%
as shown below:
Megawatt- Percent
Hours of Total
---------- ----------
Company Generation
----------------------
Gas/Oil 2,949,132 33.8%
Coal 1,859,208 21.3%
Hydro 50,863 0.6%
---------- ----------
Total Generated 4,859,203 55.7%
---------- ----------
Purchased Power
----------------------
Long-Term Firm:
Utility Purchases 2,046,603 23.6%
Non-Utility Purchases:
Geothermal 784,954 9.0%
Other 119,302 1.4%
Spot Market 899,211 10.3%
---------- ----------
Total Purchased 3,850,070/1/ 44.3%
---------- ----------
Total 8,709,273 100.0%
========== ==========
The Company's decision to purchase spot market energy is based on the
economics of purchasing "as-available" energy when it is less expensive than the
Company's own generation. At the time of the 1997 system peak, the Company had
purchased firm capacity under long-term contracts with other utilities and
qualifying facilities (QFs) equal to 27% of total system peak hour capacity. In
1997, most of the Company's non-utility generation came from QFs, except for
8,438 megawatt hours, which came from one small power producer. The percentage
of spot market energy purchases was somewhat lower than the previous year.
- ------------
/1/ Total purchased megawatt-hours include inadvertent purchases which are not
included in the purchases in the Management Discussion and Analysis.
11
LOAD AND RESOURCES FORECAST
- ---------------------------
The Company's actual total system capability and summer peak loads for
1997, and as estimated for summer peak demand through 2002 (assuming no
curtailment of supply or load, and normal weather conditions) are indicated
below:
Capacity at
1997 Peak Forecasted Summer MW
---------------- --------------------------------------------
MW % 1998 1999 2000 2001 2002
------- ------- ------- ------- ------- -------- -------
Company Generation:
Existing 1,049 69% 1,056 1,056 1,056 1,056 1,056
------- ------- ------- ------- ------- -------- -------
Purchases:
Long/Short-Term Firm (1) 262 17% 254 394 394 394 394
(2)
Interruptible Customers 5 0% 5 5 5 5 5
Non-Utility Generators 67 5% 74 74 74 74 74
------- ------- ------- ------- ------- -------- -------
Subtotal 334 22% 333 473 473 473 473
------- ------- ------- ------- ------- -------- -------
Additional Required 147 9% 169 48 74 116 125
------- ------- ------- ------- ------- -------- -------
Total System Capacity 1,530 100% 1,558 1,577 1,603 1,645 1,645
======= ====== ======= ======= ======= ======== =======
Net System Peak (3) 1,342 88% 1,368 1,382 1,403 1,443 1,451
Planning Reserve 188 12% 190 195 200 202 203
------- ------- ------- ------- ------- -------- -------
Total 1,530 100% 1,558 1,577 1,603 1,645 1,645
======= ====== ======= ======= ======= ======== =======
Growth over previous year 1.9% 1.2% 1.6% 2.6% 0.5%
======= ======= ======= ======== =======
(1) Value net of losses.
(2) Includes potential short-term firm purchases that are not under contract.
Values shown represent purchases within anticipated transmission system limits.
(3) The system peak shown for 1997 is the actual system peak of 1,342 MW, which
occurred on August 7, 1997.
With regard to total system capacity, the Company is expected to maintain a
planning reserve margin consistent with the Western System Coordinating Council
guidelines. This reserve margin was 188 megawatts in l997, which the Company
expects will increase to 203 megawatts by 2002. To accommodate the system
requirement during the 1998-2002 time period, it will be necessary to secure
additional capacity beginning in 1998. The PUCN, through the electric resource
planning process, approved the Pinon Pine Power Project, which will provide 96
megawatts beginning in 1998. The "Additional Required" will be met by short-term
purchases through 1999. The least-cost option for needs beginning in 1999 will
be evaluated in the Company's next resource plan filing due in 1998. Electric
industry restructuring may change SPPC's obligation to meet projected
requirements.
12
It should be noted that the Company's responsibility for resource planning
will be modified under Assembly Bill 366 (see Footnote 2 to the Consolidated
Financial Statements) it has been proposed that the PUCN will perform resource
planning for electric requirements within the State of Nevada.
GENERATION
- --------------
The Company's total net generating capability for the upcoming 1998 summer
peak is as follows:
Number of MW Year(s)
Name Type/Fuel Units Capacity Installed
- ---- --------- -----------------------------------
Valmy Steam/Coal 2 265 1981 and 1985
Tracy Steam/Gas, Resid. Oil 3 244 1963, 1965, 1974
Pinon Combined Cycle/Coal, Gas 1 96 1996 - 1998
Clark Mtn CT's CT/Gas, Diesel Oil 2 138 1994
Ft. Churchill Steam/Gas, Resid. Oil 2 226 1968 and 1971
Other GT/Gas, Diesel Oil, 1899 - 1970
Propane, Hydro 35 87
------
1056
======
(CT) Combustion
(GT) Gas Turbine
The Company owns an undivided 50 percent interest in the Valmy plant.
Idaho Power Company (Idaho Power) owns the remainder. The capacities shown
above for the Valmy plant represent the Company's share only. The Company owns
100 percent of all of its remaining electric generation plants. The table above
includes the generation capacity of the 100% SPPC-owned power island portion of
the Pinon Pine Power Project. Pinon's summer net capacity for combined cycle
operation on syngas is anticipated to be available in 1998. Pinon's current
summer net capacity is 89 MW when operating on natural gas.
Four of the Company's hydro generation units are located on the Truckee
River, which runs approximately 100 miles from Lake Tahoe, through Reno/Sparks,
to Pyramid Lake. A two MW facility located on the Truckee River at Farad was
damaged by the January, 1997 flood and will not be available for generation
during the 1998 summer peak. The Company also leases five units from the
Truckee-Carson Irrigation District under a 30-year operating lease expiring in
1998, prior to the Company's normal summer peak. The units are located in the
Lahontan Reservoir area, 70 miles southeast of Reno. See Leaseholds.
----------
PURCHASED POWER
- ---------------
The Company continues to manage a diverse portfolio of contracted and spot
market supplies, as well as its own generation, to minimize its net average
system costs. With above average precipitation within the Pacific Northwest
over much of the 1996-1997 season, the Company was also able to purchase surplus
economy energy and displace higher priced generation.
The Company is a member of the Northwest Power Pool and Western Systems
Power Pool. These pools have provided the Company further access to spot market
power in the Pacific Northwest and the Southwest. In turn, the Company's
generation facilities provide a backup source for other pool members who rely
heavily on hydroelectric systems. The Company has an agreement with
PacifiCorp's Utah division and Idaho Power in
13
which a portion of the energy purchased by the Company from PacifiCorp is
transmitted through the Idaho Power system. The agreement also provides added
access to spot market power.
The Company purchases spot market energy, both hydro and thermally-
produced, by the hour, based upon economics and system import limits. During
drought years, when less spot market hydro energy is available, the Company
supplies a higher percentage of its native load utilizing its fossil fuel
generation. Of continuing concern to any purchaser of hydro-generated energy are
proposals by federal regulators, in the interest of the salmon, recommending
closure of some hydro operations on the Snake and Columbia rivers. The amounts
of hydro energy available and the price will depend on weather conditions in the
Pacific Northwest and proposals by regulators. The amount of excess generating
capacity in other systems and the existence of competition in providing
utilities with economic incentives to make secondary sales are also important
factors.
Currently, the Company has contracted for a total of 265 megawatts of long-
term firm purchased power from the utility suppliers listed below. Several of
the Company's firm purchase power contracts contain minimum purchase
obligations. Meeting them has not been a problem for the Company in the past,
and is not expected to be a problem in the future.
Contract Operation Termination Minimum
Contract Party Capacity Date Date Capacity %
- ------------------------------ -------- --------- ----------- ----------
Idaho Power 75 MW Nov 1989 May 1999 50%
Idaho Power (for Elko) 15 MW Mar 1994 May 2000 40%
Tri-State /(1)/ 25 MW June 1991 May 1999 50%
PacifiCorp 75 MW June 1989 Feb 2009 70%
PacifiCorp/Utah Power /(2)/ 75 MW May 1991 Apr 2000 78%
(1) The Company has terminated the Tri-State contract effective May 31, 1999.
(2) The Company has terminated the PacifiCorp/Utah contract effective April
30, 2000.
According to regulations of the Public Utility Regulatory Policies Act,
the Company is obligated, under certain conditions, to purchase the generation
produced by small power producers and cogeneration facilities at costs
determined by the appropriate state utility commission. Generation facilities
that meet the specifications of the regulations are known as qualifying
facilities (QFs). As of December 31, 1997, the Company had a total of 109
megawatts of maximum contractual firm capacity under 15 contracts with QFs. The
Company also had contracts with three projects at fluctuating short-term avoided
cost rates. All contracts currently delivering power to the Company at long-term
rates have been approved by either the PUCN or the CPUC, and have QF status. One
long-term QF contract terminates in 2006, one terminates in 2039, with the
remainder terminating between 2016 and 2022.
Energy purchased by the Company from QFs constituted 10% of the net
system requirements during 1997. These contracts continue to provide useful
diversity for the Company in meeting its peak load. All the QFs from which the
Company makes firm purchases are either geothermal (87%), hydroelectric or
biomass.
The actual QF firm capacity output of 67 megawatts during the summer
1997 peak was less than the firm contracted amount of 109 megawatts. The actual
QF output for all non-utility generatory deliveries during the summer 1997 peak
was 87 megawatts. The table on page 12 reflects actual performance during the
1997 summer peak period. A difference exists between the non-utility generator
figures and the table on page 12 because the 1997 figure is an actual and the
remaining years are forecasts. Any capacity shortfall created by under-
performance was included in the Company's 1995 resource plan.
14
TRANSMISSION
- ------------
In planning its transmission capacity, the Company considers its generation
and purchased power needs, as well as the opportunity for providing retail and
wholesale wheeling services.
The Company's existing transmission lines extend some 300 miles from the
crest of the Sierra Nevada in eastern California, northeast to the Nevada-Idaho
border at Jackpot, Nevada, and 250 miles from the Reno area south to Tonopah,
Nevada. A 230 KV transmission line connects the Company to facilities near the
Utah-Nevada state line, which in turn interconnects the Company to Idaho Power
facilities at the Idaho-Nevada state line. The Company also has two 120 KV
lines and one 60 KV line which interconnect with Pacific Gas and Electric (PG&E)
on the west side of the Company's system at Donner Summit, California. Two 60
KV transmission ties allow wheeling of up to 14 megawatts of power from the
Beowawe Geothermal Project, which is located within the Company's service area,
to Southern California Edison. These two minor interties are available for use
during emergency conditions affecting either party.
The Company's transmission intertie system provides access to competitively
priced energy supplies. The existing system has played a major role in helping
stabilize energy costs by allowing surplus energy purchases throughout the year,
but especially during the spring snow melt in the Pacific Northwest.
The Company is currently developing the Alturas Intertie to provide the
means of serving existing native load and new customers, and to significantly
increase the Company's access to lower cost resources. The anticipated in-
service date is late 1998. See Alturas Intertie, page 10.
The Company has agreements with PacifiCorp's Utah division and Idaho Power
which allow for up to 50 megawatts of the energy purchased by the Company from
PacifiCorp to be transmitted through the Idaho Power system. The Company also
has an interconnection agreement with PG&E that requires PG&E to maintain a firm
transmission rating of 108 megawatts, provided the Company pays it for any
necessary system upgrades. The purpose for the tie is to provide an alternative
transmission path in the event of an emergency on the Company's system. The
PUCN, in a previous electric resource plan opinion and order, approved the
payment for upgrades into the late 1990's. The upgrades are considered
regulatory assets and are amortized over lives similar to Company-owned
facilities. At December 31, 1997 these regulatory assets amounted to $5.1
million. See Note 1 of the Consolidated Financial Statements.
FUEL AVAILABILITY
- -----------------
The Company's 1997 fuel requirements for electric generation were provided
by natural gas (62%), coal (37%) and oil (1%). During 1997 natural gas remained
the fuel of choice, over oil, for generation plants other than Valmy, which is a
coal-fired plant.
The average costs of coal, gas and oil for energy generation per million
British thermal units (MMBtu) for the years 1993-1997 were as follows:
Average Consumption Cost ($/MMBtu)
--------------------------------------------------
1997 1996 1995 1994 1993
----- ---- ---- ---- ------
Gas $2.03 $2.10 $1.65 $2.19 $2.19
Coal 1.80 1.88 2.19 2.07 2.05
Oil 3.35 3.48 3.80 3.37 3.54
15
Since beginning commercial operation of its Valmy coal-fired
generating units in the early 1980s, the Company operated these units at a
higher load level than its gas/oil-fired units because gas and oil fuels had
generally been more expensive. However, beginning in 1989, the Company operated
its gas/oil-fired units at increased levels due to competitive pricing of
natural gas. In September 1996, the Company began purchasing coal on the spot
market at prices more competitive than gas, oil and long-term contract coal. As
a result, except during periods of low-cost surplus hydro energy availability,
load levels on the Valmy units have been consistently high since that time.
The Company's long-term contract with Black Butte Coal Company (Black
Butte), for coal shipments to Valmy from the mine near Rock Springs, Wyoming,
remains in effect until June 30, 2007, or until all volume requirements under
the contract are delivered and/or canceled.
Beginning in June 1996, the Company, along with its joint-ownership
partner (Idaho Power Company), implemented an economic cancellation strategy
which essentially buys down minimum tonnage requirements under the Black Butte
contract rather than taking physical delivery of the coal. Canceling the Black
Butte tonnage creates various economic and operating benefits, primarily
opportunity to buy lower-cost spot market coal and reduce overall fuel costs.
In June 1996, the Company and Idaho Power expended $5 million ($2.5 million
each) to cancel all minimum volume requirements for the 1996-97 contract year.
The Company agreed with Idaho Power to satisfy even more volume requirements in
the fall of 1996 and in June 1997 by matching the dollar cost of Black Butte
tonnage purchased by Idaho Power for delivery to Idaho's coal-fired Jim Bridger
plant. The Company expended $3.8 million for these matching cancellations.
Since July 1997, the Company and Idaho Power have canceled minimum Black Butte
volume requirements on a monthly basis. Due to accelerated purchases, Company
projects it will fully satisfy all volume requirements and that termination of
the contract will occur sometime in 2002. At that time, the Company will pursue
lower fuel cost alternatives, which may include additional purchases of spot
market coal should pricing remain favorable.
The Company's long-term coal contract with Canyon Fuel Company, LLC
(Canyon), which provides coal for Valmy from Canyon's SUFCO mine in Central
Utah, expires on June 30, 2003. This contract also contains minimum volume
requirements which the Company expects to meet each year until termination.
The total amount of coal burned at the Valmy Power Plant during 1997
was 1.25 million tons. As of December 31, 1997, the coal inventory level was
157,241 tons, or approximately 27.5 days of consumption at 100% capacity. The
Company targets an average annual coal stockpile sufficient to provide 30 days
supply at full load.
Valmy has had coal delivered under a June 30, 1986 contract with the
Union Pacific Railroad Company (UP). This contract expired on July 31, 1997 and
the parties were unable to reach an agreement on a new contract. Subsequently,
the UP filed a common carrier rate under which these coal deliveries have been
moving while negotiations have been ongoing.
On August 1, 1997, SPPC and Idaho Power filed a complaint with the
Surface Transportation Board (STB) alleging that rates assessed by UP to move
coal from Sharp, Utah to Valmy exceeded a maximum reasonable level and that UP
possesses market dominance over that traffic. SPPC and Idaho Power have
requested that the STB prescribe maximum reasonable rates, along with related
rules and service terms for this movement. UP has counterclaimed that no such
market dominance exists and consequently, the STB does not have jurisdiction.
16
While this case has proceeded, SPPC and Idaho Power have continued to
negotiate a solution to the dispute. A new contract may be completed during
the second quarter of 1998. In the worst case, SPPC and Idaho Power will
continue to pay the common carrier rate until the STB renders its decision.
During 1997, the Company purchased a small volume of coal for use in
start-up at Pinon Pine. This coal will be used to produce synthetic gas in the
plant's coal gasification facility. Two unit train shipments of coal, from
Canyon Fuel Company's SUFCO mine, were taken in April 1997 and December 1997,
totaling approximately 19,000 tons. Once the gasifier is declared commercial,
scheduled for mid 1998, the Company expects to ship between one and three unit
trainloads of coal per month to that site which the Company expects to purchase
on the spot market.
The Company meets its needs for residual oil for generation through
purchases on the spot market. With no other mitigating factors, the Company's
residual oil inventory policy is to maintain 50,000 to 75,000 barrels at each of
its Tracy and Ft. Churchill generating plants. The actual residual oil
inventory level at these two sites was 166,147 barrels as of December 31, 1997,
which is equal to seven days supply at full load operation. Total residual oil
consumption in 1997 was 21,732 barrels.
NATURAL GAS BUSINESS
--------------------
BUSINESS AND COMPETITIVE ENVIRONMENT
The Company's natural gas business is a local distribution company (LDC) in
the Reno/Sparks area that accounted for $70.7 million in 1997 operating
revenues; 11% of total Company operating revenues. Growth in the Company's
service territory continues to be strong. Residential customer growth during
1997 was 5.3%, adding the Company's 100,000/th/ natural gas customer during the
summer. Residential sales growth was boosted by an increase in multifamily
construction activity and a residential marketing campaign targeting existing
propane and fuel oil conversions. The overall natural gas customer growth rate
was 5.2% for the year.
Natural gas offers significant economic and environmental advantages over
other energy sources for space heating, water heating and other uses in
residential, commercial and industrial applications. Growth in the residential
and small commercial sector is expected to continue as new developments in the
Company's distribution service area are planned. A new record peak day sendout
of 114,375 decatherms was reached on January 13, 1997.
In an ongoing search for growth and profitability, the Company is studying
an opportunity to provide gas LDC services to a community located along its
affiliate, Tuscarora Pipeline. A decision on this project is expected in the
first quarter of 1998.
The popularity of natural gas as a vehicle fuel is increasing. During
1997, the Company experienced a resurgence of interest in alternative vehicle
fuels. Growth in the use of natural gas as a vehicle fuel increased
significantly during the year as the Reno/Sparks area continued working to
attain status as a Clean City from the Department of Energy (DOE). State clean
air legislation is encouraging governmental fleets to develop alternative fuel
use in fleet operations. The Company was also successful in obtaining DOE grant
funding for alternative fuel development during 1997.
17
COMPETITIVE ISSUES
- ------------------
Contracts established during 1995 and 1996 under the Company's Value Based
Service Tariff (VBST) are being successfully renewed as the old contracts
expire. This tariff is applicable to natural gas use for customers desiring
firm service who qualify for transportation service in which they acquire their
own gas supply and the Company provides transportation. Three contracts were
renewed in 1997 and one new contract was signed to enable the Company to compete
with competitive service options for our largest customers. At December 31,
1997, the Company had nine VBST contracts in force with customers.
The Company's natural gas LDC business is subject to competition from other
suppliers and other forms of energy available to its customers. Large customers
with fuel switching capability compare natural gas prices on an interruptible
basis to alternative energy source prices. Three customers now secure their own
gas supplies, with the Company providing transportation service. As a result of
AB 366, gas supply may be unbundled from transportation.
Reno Energy, a new thermal energy company and competitor, received state
approvals during 1997 to proceed with its project to compete directly with
natural gas in the Reno/Sparks market. The status of this project is still
unknown, but the Company is taking actions to monitor and maintain its
competitive position as the energy supplier of choice in the area.
DEREGULATION
- ------------
The Company has been and will continue to be active in the development of
statutes, rules and regulations regarding the deregulation of the natural gas
industry. The Company has been involved at the state level in workshops
designed to set the course for the future of energy sales and distribution in
Nevada. See Rate Proceedings.
----------------
FACILITIES AND OPERATIONS
The Company has contracted for firm winter-only and annual gas supplies
with 10 Canadian and domestic suppliers to meet the firm requirements of its LDC
and electric operations. The contracts total 125,000 decatherms per day through
March 1998; 72,000 decatherms per day for April through October 1998 and 75,000
decatherms per day for the remainder of the year. Most of these contracts
provide for a fixed price. This ensures that the Company is able to lock in a
significant portion of its gas supply cost while retaining the flexibility to
purchase spot market supplies.
The Company's firm natural gas supply is supplemented with natural gas
storage services and supplies from a Northwest Pipeline Company facility located
at Jackson Prairie in southern Washington and a liquid natural gas (LNG) storage
facility. The LNG facility is operated by Paiute Pipeline Company and is used
for meeting peak demand. The Jackson Prairie and LNG facilities can contribute
a total of approximately 48,000 decatherms per day of peaking supplies. The
Company meets its peak day requirements above Northwest/Paiute capacity with
firm transportation capacity on the Tuscarora Pipeline and the Pacific Gas
Transmission Company (PGT) pipeline.
Starting November 1, 1996, the Company entered into an agreement to sell
winter seasonal peaking supplies to another company for seven years. The
contract provides for the payment to the Company of a
18
monthly reservation charge, reimbursement of pipeline capacity charges during
the winter, and a volumetric commodity charge based on the market price for
natural gas. The Company was able to enter into this agreement due to the
ability of its power plants to utilize alternative fuels and its power
importation option.
Following is a summary of the transportation and approximate storage
capacity of the Company's current gas supply program. Firm transportation
capacity on the Northwest/Paiute system exists primarily to serve the LDC. Firm
transportation capacity on the PGT/Tuscarora system exists primarily to serve
the Company's electric generating plants. Storage capacity is generally used
for the peaking requirements of the LDC.
TRANSPORTATION CAPACITY
- -----------------------------
Northwest - 70,696 Decatherms per day firm
90,000 Decatherms per day interruptible
Paiute - 105,774 decatherms per day firm from November through March
63,044 decatherms per day firm from April through October
90,000 decatherms per day interruptible
NOVA - 30,000 decatherms per day firm
ANG - 30,000 decatherms per day firm
PGT - 30,000 decatherms per day firm
- 30,000 decatherms per day firm from November through March
90,000 decatherms per day interruptible
Tuscarora - 95,000 decatherms per day firm
60,000 decatherms per day interruptible
STORAGE CAPACITY
- -----------------------------
Northwest - 277,997 decatherms from Jackson Prairie
12,733 decatherms per day from Jackson Prairie
Paiute - 463,034 decatherms from Lovelock LNG
35,078 decatherms per day from Lovelock LNG facility
Total LDC supply requirements in 1997 and 1996 were 12.4 million decatherms
and 12.1 million decatherms, respectively. Electric generating fuel
requirements for 1997 and 1996 were 32.0 million decatherms and 31.0 million
decatherms, respectively.
As of December 31, 1997, the Company owned and operated 1,219 miles of
three-inch equivalent natural gas distribution lines.
WATER BUSINESS
The water distribution business contributed $46.5 million (7%) to the
Company's 1997 operating revenues.
An application was filed with the PUCN requesting authorization to increase
general water rates for all classes of customers by $13.7 million (see Item 7,
Nevada Matters). This request was made mainly to recover approximately $119
- --------------
million in net plant increases for upgrades and additions to the water
facilities due to the passage of the Safe Drinking Water Act in 1986. The
Company believes that its water business is in full compliance with Federal
Regulations at this time.
19
Water production in 1997 totaled 23.3 billion gallons. 2.6 billion gallons
were produced from the Company's groundwater wells. The remaining 20.7 billion
gallons were treated through the Company's two water treatment facilities; the
Chalk Bluff Water Treatment Plant and the Glendale Water Treatment Plant. The
Company's peak day send-out of water during 1997 was 124 million gallons, a 5.9%
increase over the 117 million gallon peak set in 1996.
The Company's water supplies are based on surface water and groundwater
sources, with the addition of drought storage and refill provisions sufficient
to withstand a repeat of the recent eight-year drought plus an additional two
year period. The surface water source is the Truckee River which originates in
Lake Tahoe and flows north and east through the cities of Reno and Sparks to
Pyramid Lake, located northeast of Reno. In 1997 early warm rains brought
significant flooding to the Truckee River and surrounding areas. The Glendale
Water Treatment Plant, situated on the riverbanks, sustained over $1 million in
clean up and damage costs. The Chalk Bluff Plant successfully treated the muddy
flood water, which contained turbidities exceeding the design criteria of the
plant.
The Company's groundwater comes from 24 supply wells located around the
Reno/Sparks area. Man-made contaminants, perchalorethylene, from local business
operations have been found at levels exceeding the drinking water standards in
five of these wells. Three of these wells have been removed from service and
are in the process of being fit with treatment equipment. The remaining two
have been fit with treatment equipment which allows them to be returned to
operation. The 1997 Nevada Legislature passed a groundwater remediation bill
and Washoe County formed a remediation district which will allow the Company to
be reimbursed for the cleanup of this groundwater contaminant.
Additionally, the Company has four wells which currently exceed the federal
drinking water standard for naturally occurring arsenic concentrations.
Production from three of these wells continues by blending water treated at the
Glendale Water Treatment Plant. The fourth well is out of service pending
treatment. The Company's water laboratory research staff are developing options
to assure the Company is prepared to meet new arsenic standards.
A group has recently challenged the transfer of agricultural water rights
to municipal use for new development in the Truckee Meadows. In August, the
Company successfully reached an arrangement with the state engineer to sign
subdivision maps whose rights are under protest by providing a temporary back up
arrangement in which the Company's certificated rights are pledged to back up
the protested transfers through June 1998, at which time the Company will
evaluate its position. This process has enabled water service commitments to
continue until protests can be cleared.
The Company continues to pursue the Negotiated Settlement which has been
under development for several years. The Company is currently operating under
a Preliminary Settlement Agreement (PSA) and interim storage contract until
negotiations are completed and the final Truckee River Operating Agreement is
completed. A draft environmental impact statement and contract is expected in
the first quarter of 1998, with the agreement being finalized by year end. The
Negotiated Settlement is a complex set of agreements on Truckee River issues
involving the United States, California and Nevada governments, the Pyramid Lake
Paiute Tribe and SPPC. During 1997, these negotiations progressed toward the
completion of the draft Truckee River Operating Agreement. Once in effect, the
new agreement will allow the Company use of federal reservoirs for drought
reserve storage.
As a condition of the Negotiated Settlement, the Company's unmetered
residential water customers must be converted to metered service. A meter
retrofit program was approved by the PUCN and began in 1995.
20
Funding for the program is provided by new business development and administered
by the Company. The program is expected to take ten to twelve years to complete.
At this time, only customers who volunteer for the program may have meters
installed. Water meters have been required in all new construction since 1986.
CONSTRUCTION PROGRAM
Construction expenditures, including allowance for funds used during
construction (AFUDC), for 1997 were $147.8 million and for the period 1993
through 1997 were $786.3 million. Estimated construction expenditures for 1998
and the period 1999 - 2002 are as follows (dollars in thousands):
Total
1998 1999-2002 5-Year
--------- ----------- ----------
Electric Facilities $133,789 $ 305,756 $ 439,545
Water Facilities 14,042 104,338 118,380
Gas Facilities 10,283 41,488 51,771
Common Facilities 11,819 14,347 26,166
-------- ---------- ---------
Total Construction Expenditures $169,933 $ 465,929 $ 635,862
======== ========== =========
AFUDC ($8,744) ($5,708) ($14,452)
Net Salvage, including cost of removal (100) (400) (500)
Net Customer Advances and
Contributions in Aid of Construction (9,959) (39,820) (49,779)
-------- ---------- ---------
Total Cash Requirements $151,130 $ 420,001 $ 571,131
======== ========== =========
Total construction expenditures estimated for 1998 and the 1999-2002
period, for each segment of the Company's business, consist of the following
(dollars in thousands):
Total
1998 1999-2002 5-Year
-------- ---------- --------
Electric Facilities
Distribution $ 43,893 $ 172,727 $216,620
Generation 5,406 11,984 17,390
Transmission 81,434 106,167 187,601
Other 3,056 14,878 17,934
-------- ---------- --------
$133,789 $ 305,756 $439,545
======== ========== ========
Water Facilities
Treatment and Supply $ 3,805 $ 38,421 $ 42,226
Distribution 10,106 65,309 75,415
Other 131 608 739
-------- ---------- --------
$ 14,042 $ 104,338 $118,380
======== ========== ========
Gas Facilities
Distribution $ 9,316 $ 36,728 $ 46,044
Other 967 4,760 5,727
-------- ---------- --------
$ 10,283 $ 41,488 $ 51,771
======== ========== ========
GENERAL REGULATION
The Company is subject to the jurisdiction of the PUCN and the CPUC with
respect to rates, standards of service, siting of and necessity for generation
and certain transmission facilities, accounting, issuance of securities and
other matters with respect to electric operations. The PUCN also has
jurisdiction with respect to
21
the Company's gas and water operations. The Company submits integrated resource
plans regarding its electric, gas, and water business operations to the Nevada
Commission for approval.
Under federal law, the Company is subject to certain jurisdictional
regulation, primarily by the FERC. The FERC has jurisdiction under the Federal
Power Act with respect to rates, service, interconnection, accounting, and other
matters in connection with the Company's sales of electricity for resale and the
transmission of energy for others. The FERC also has jurisdiction over the
natural gas pipeline companies from which the Company takes service.
As a result of regulation, many of the fundamental business decisions of
the Company, as well as the rate of return it is permitted to earn on its
utility assets, are subject to the approval of governmental agencies.
The Company is also subject to regulation by environmental authorities.
See Environment.
-----------
RATE PROCEEDINGS
During 1997, 92% of the Company's revenues were from retail sales of
electricity, natural gas and water in Nevada; 6% from retail sales of
electricity in California and 2% from sales of electricity for resale.
NEVADA MATTERS
- --------------
The 1995-2014 Electric and Gas Integrated Resource Plan contains forecasts
of future electric and natural gas demand and the Company's plans to meet those
requirements economically while maintaining service reliability and flexibility.
Also included in the plan are distribution facility additions including the
Company's LDC interconnection with the Tuscarora Pipeline. The resource plan
identifies the criteria used in evaluating gas supply contracts, the proposed
mix of firm and interruptible natural gas supplies and the supply sources
required to meet peak day demands over the planning period. The next resource
plan is due mid 1998.
It should be noted that under Assembly Bill 366 (see Footnote 2 to the
Consolidated Financial Statements) it has been proposed that the PUCN begin
developing resource planning for electric requirements within the State of
Nevada after December 31, 1999.
The Company filed a water rate case on September 18, 1997 to recover cost
increases related to investments in water plants to comply with the Safe
Drinking Water Act. The Company expects to receive an order from the PUCN in
April 1998.
See Item 7, Nevada Matters, California Matters, and FERC matters and Note 2
-------------- ------------------- ------------
of the Consolidated Financial Statements.
ENVIRONMENT
GENERAL
- -------
As with other utilities, the Company is subject to federal, state, and
local regulations governing air and water quality, hazardous and solid waste,
land use, and other environmental considerations. These considerations affect
the construction and operation of electric, gas, and water utility facilities.
22
Nevada's Utility Environmental Protection Act requires approval of the PUCN
prior to the construction of major utility generation and transmission
facilities. The United States Environmental Protection Agency (EPA) and
Nevada's Division of Environmental Protection (NDEP) administer regulations
involving air quality; water pollution; and solid, hazardous, and toxic waste.
The Company's board of directors has a comprehensive environmental policy
and separate board committee on environmental compliance which oversees
corporate performance and achievements related to the environment. The
Company's corporate environmental policy emphasizes environmental stewardship.
1997 ACTIVITIES
- ---------------
The Company conducted compliance audits on 57 sites, including 13 vendor
sites. Remediation was performed on five of these sites at a cost of $270,000.
In addition, 25 spills were successfully remediated.
In 1995, the Company identified one site formerly used for manufacturing
gas from oil. This site was sold in 1997 with full disclosure to the buyer.
Shortly after the sale, the buyer notified the Company of its intent to file
legal action. To date, no such action has been taken. Negotiations with the
buyer will attempt to mitigate any financial impacts to the Company. Presently,
total liability for this site is estimated to be $700,000, of which
approximately $300,000 has been spent through December 31, 1997. The remaining
balance has been accrued as a liability.
The Company continued and initiated several actions in accordance with its
policy to be an environmental leader in principle and practice. These actions
have:
. Resulted in reduced pollutant and greenhouse gas emission rates at power
plants;
. Demonstrated stewardship of wildlife and waterfowl habitat on and adjacent to
Company property;
. Improved water quality conditions; and
. Lowered the cost of compliance with environmental regulations.
During 1997, the Company was awarded bonus sulfur dioxide emission allowances
by the EPA for its use of geothermal energy, a renewable resource. Under the
Acid Rain Rule of the Clear Air Act, bonus emission allowances are granted to
utilities that have avoided sulfur dioxide emissions by using renewable energy
to generate electricity. In 1997, the Company received 645 bonus allowances.
Only four other utilities in the U.S. were awarded more bonus allowances.
As a voluntary climate challenge participant, the Company filed its third
annual report on greenhouse gas emission and actions taken to reduce those
emissions with the DOE. Carbon dioxide, the principal so called "greenhouse
gas", is produced when oil, natural gas or coal is combusted. The Company's
carbon dioxide emissions were offset through its:
. Use of renewable resources (geothermal and hydroelectric energy);
. Energy conservation and efficiency measures;
. Improvements in generating unit efficiency;
. Increased use of natural gas over oil (a benefit of the Tuscarora Pipeline
Project completed in 1995);
. Reuse of coal fly ash in cement production; and
. Utilization of compressed natural gas in fleet vehicles.
23
In 1997, the Company's generating units reduced carbon dioxide emission by 15
percent as a direct result of the above actions.
Stewardship of Nevada's water and wildlife resources is being demonstrated at
the Fort Churchill and Tracy Power Plants. At Fort Churchill, the Company
completed its wetland restoration with a joint effort at the wetlands on the
Mason Valley Wildlife Refuge. The Refuge, adjacent to the Walker River, is
administered by Nevada's Division of Wildlife (NDOW). This cost and resource-
sharing partnership between the Company, NDOW, and Ducks Unlimited involves use
of cooling water from the Company's facilities. Water is now piped to wetland
ponds on the Refuge, expanding open water recreation opportunities and wildlife
habitat by about 500 acres. Besides enhancing water resources in the region,
this project is an inexpensive way to improve cooling systems at the generating
units.
In September 1994, the Company was notified by Region VII of EPA that the
Company was being named as a potentially responsible party (PRP) regarding the
past improper handling of Polychlorinated Biphenyls (PCBs) by PCB Treatment,
Inc., located in Kansas City, Kansas, and Kansas City, Missouri (the Sites).
The EPA is requesting that the Company voluntarily pay an undefined (pro rata)
share of the ultimate clean-up costs at the Sites. A number of the largest PRPs
formed a steering committee which is chaired by the Company. The responsibility
of the Committee is to direct clean-up activities, determine appropriate cost
allocation, and pursue actions against recalcitrant parties, if necessary. The
EPA issued an administrative order on consent requiring signatories to perform
certain investigative work at the Sites. The steering committee has retained a
consultant to prepare an analysis regarding the sites.
The Company has recorded a preliminary liability for the Sites of $650,000, of
which approximately $105,000 has been spent through December 31, 1997. Once
evaluations are completed, the Company will be in a better position to estimate
and record the ultimate liabilities for the Sites.
GENERAL - FACILITIES
LEASES
- ------
The Company continues to sublease available space in Sierra Plaza, its
general office complex, to outside companies and other organizations. The
largest lease, which is with Microsoft Licensing, Inc. runs until 2002.
GENERAL - LEASEHOLDS
The Company operates portions of its electric system as lessee under lease
agreements with Truckee-Carson Irrigation District (TCID) and Mineral County
Power System.
Under terms of the TCID lease, the Company is obligated to pay an annual
lease payment of $108,000 plus 2% of gross revenues derived from operations
within the leasehold area, which covers portions of Washoe (excluding
Reno/Sparks), Lyon, Storey and Churchill counties in Nevada. In 1997, the
Company paid approximately $382,000 as 2% of gross revenues. The lease expires
in July 1998, at which time TCID is obligated to purchase any Company capital
improvements unless the lease is renewed. To date, capital improvements, net
of depreciation, total $21.2 million. It is estimated that SPPC generates
approximately $1.8 million of net income from serving TCID.
24
In October 1997, TCID advised the Company that TCID would not be renewing
the lease agreement and that TCID intended to resume operation of the electric
system in July 1998 when the lease agreements expire. The Company has filed
with the PUCN documents requesting that the Company's existing Certificate of
Public Convenience and Necessity ("Certificate") to serve the TCID electric
customers be extended. In the event the PUCN is unwilling to extend the
Company's Certificate, the Company has asked the PUCN to require TCID to obtain
its own Certificate.
Under terms of the Mineral County Power System lease, the Company is
obligated to pay, on a sliding scale, a percentage of gross revenues derived
from operations within the leasehold area. The leasehold area includes the
towns of Hawthorne, Mina, and Luning, along with other unincorporated towns
roughly 100 miles southeast of Reno. During 1997, the Company paid $138,000 on
gross revenues of $5.8 million. The lease expires in 2000. As with TCID,
Mineral County Power System is obligated to purchase any Company capital
improvements unless the lease is renewed. To date, capital improvements, net of
depreciation, total $7.1 million.
GENERAL - FRANCHISES
The Company has nonexclusive franchises or revocable permits, in fact by
grant (in most cases for specified terms of years) or in effect by acquiescence,
to carry on its business in the localities in which its respective operations
are conducted in Nevada and California. The franchise requirements of the
various cities and counties in which the Company operates provide for payments
based on gross revenues. During 1997, the Company collected $8.0 million in
franchise fees based on gross revenues. It also paid and recorded as expense
$0.9 million of fees based on net profits.
Franchise Type of Service Expiration Date
------------------- ------------------------ ----------------------
Reno Electric, Gas and Water January 2006
Sparks Electric May 2006
Sparks Gas May 2007
Sparks Water April 2004
Carson City Electric February 2012
City of Elko Electric April 2017
City of South Lake
Tahoe Electric April 2018
Washoe County Gas and Water May 2015
Washoe County Electric September 2015
Eureka County Electric July 2018
The Company applies for renewal of franchises in a timely manner prior to
their respective expiration dates.
GENERAL - RESEARCH AND DEVELOPMENT
SPPC participates in several utility associations, including the Electric
Power Research Institute and Gas Research Institute.
ITEM 2. PROPERTIES
The general character of SPPC's principle facilities is discussed in Item
1, Business.
--------
25
Substantially all utility plant is subject to the lien of the Indenture of
Mortgage, dated December 1, 1940, and supplemental indentures thereto between
the Company and State Street Bank and Trust, as trustee, securing the Company's
outstanding first mortgage bonds.
ITEM 3. LEGAL PROCEEDINGS
SPPC, through the course of its normal business operations, is currently
involved in a number of legal actions, none of which has had or, in the opinion
of management, is expected to have a significant impact on its financial
position or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
26
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER
MATTERS
The Company is a wholly-owned subsidiary of Sierra Pacific Resources and,
as such, its common stock is not publicly traded and no market exists for it.
Cash dividends declared on common stock were as follows (dollars in thousands):
1997
-------
First Quarter $18,000
Second Quarter 18,000
Third Quarter 18,000
Fourth Quarter 18,000
-------
Total 1997 $72,000
=======
1996
----
First Quarter $16,000
Second Quarter 16,000
Third Quarter 16,000
Fourth Quarter 16,000
-------
Total 1996 $64,000
=======
Note: The dividends scheduled above represent payments from the Company to
its parent, SPR. Dividends declared by SPR on its publicly traded stock totaled
$38.3 million during 1997.
Future dividends are subject to factors that ordinarily affect dividend
policy, such as future earnings and the financial condition of the Company.
After provision for payment of dividends on all outstanding shares of preferred
stock and subject to limitations in the Company's restated articles of
incorporation and its indentures, dividends may be paid on the common stock out
of any funds legally available for that purpose when declared by the board of
directors. As of December 31, 1997, approximately $78.7 million of retained
earnings were available for the payment of dividends on common stock under the
most restrictive of these limitations.
27
ITEM 6. SELECTED FINANCIAL DATA
Year Ended December 31,
(dollars in thousands)
-----------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
Operating Revenues $ 657,540 $ 619,724 $ 597,784 $ 603,193 $ 521,568
========== ========== ========== ========== ==========
Operating Income $ 120,172 $ 107,008 $ 101,811 $ 95,983 $ 90,562
========== ========== ========== ========== ==========
Income Before
Preferred Dividends $ 83,127 $ 73,651 $ 65,983 $ 60,863 $ 57,457
========== ========== ========== ========== ==========
Income Applicable
To Common Stock $ 77,668 $ 67,351 $ 58,609 $ 52,929 $ 49,196
========== ========== ========== ========== ==========
Total Assets $1,912,242 $1,842,628 $1,729,818 $1,605,710 $1,554,896
========== ========== ========== ========== ==========
Long-Term Debt and
Redeemable Pre-
Ferred Stock $ 655,389 $ 655,787 $ 547,124 $ 531,233 $ 526,177
========== ========== ========== ========== ==========
Cash Dividends Paid
On Common Stock $ 70,000 $ 63,000 $ 54,000 $ 51,000 $ 48,000
========== ========== ========== ========== ==========
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
Net income before preferred dividends in 1997 was $83.1 million, an
increase of $9.4 million over 1996. The Company was authorized to earn a return
on equity of 12% in its Nevada electric operations and 12% and 11.25%,
respectively, in its Nevada gas and water operations. The Company earned in
excess of its allowed regulated returns for its electric and gas operations and
therefore, under its currently effective rate settlement, the Company
anticipates it will make refunds to customers reflecting one half of the excess
earnings. Appropriate reserves have been recorded to reflect the anticipated
refunds. A rate filing was made with the PUCN requesting an increase in rates
for the water operations. The rate change is expected to be placed in effect in
the second quarter of 1998. California operations were authorized to earn a
return on common equity of 11.6% in 1997. See Regulatory Matters for a detailed
discussion of these issues.
Nevada, the Company's primary jurisdiction, uses a marginal cost method for
setting electric and gas rates by customer class. As a result, changes in sales
mix can result in variations in revenues, regardless of changes in total
consumption.
28
The components of gross margin are set forth (dollars in thousands):
1997 1996 1995
-------- -------- --------
Operating Revenues:
Electric $540,346 $507,004 $491,419
Gas 70,675 67,376 62,572
Water 46,519 45,344 43,793
-------- -------- --------
Total Revenues $657,540 $619,724 $597,784
Energy Costs:
Electric $231,473 $223,177 $212,473
Gas 38,135 33,859 37,330
-------- -------- --------
Total Energy Costs 269,608 257,036 249,803
-------- -------- --------
Gross Margin $387,932 $362,688 $347,981
======== ======== ========
Gross Margin by Division:
Electric $308,873 $283,827 $278,946
Gas 32,540 33,517 25,242
Water 46,519 45,344 43,793
-------- -------- --------
Total $387,932 $362,688 $347,981
======== ======== ========
The causes for significant changes in specific lines comprising the
results of operations are provided (dollars in thousands):
1997 1996 1995
-------- -------- --------
ELECTRIC OPERATING REVENUES $540,346 $507,004 $491,419
Increase $ 33,342 $ 15,585
Percentage Increase 6.6% 3.2%
The increase in electric operating revenues during 1997 was
attributable primarily to increased demand of 177,815 MWH as a result of
continued growth in the service area. The 1996 increase also generally followed
the regional increase in customers.
1997 1996 1995
-------- -------- --------
GAS OPERATING REVENUES $70,675 $67,376 $62,572
Increase $ 3,299 $ 4,804
Percentage Increase 4.9% 7.7%
Gas operating revenues increased in 1997 as a result of increased
throughput of 199,698 decatherms attributable primarily to customer growth of
4,980 new customers. Similarly, 1996 revenues increased due to improved sales
and continued customer growth.
1997 1996 1995
-------- -------- --------
WATER OPERATING REVENUES $46,519 $45,344 $43,793
Increase $ 1,175 $ 1,551
Percentage Increase 2.6% 3.5%
An increase of 1,941 water customers in 1997 contributed to the growth
in revenues. An increase of 1,635 customers accounted for improved revenues in
1996.
29
1997 1996 1995
-------- -------- --------
PURCHASED POWER $ 130,612 $ 122,272 $ 119,464
Increase $ 8,340 $ 2,808
Percentage Increase 6.8% 2.4%
MWH Purchased 3,836,975 3,829,534 3,528,364
Increase 7,441 301,170
Percentage Increase 0.2% 8.5%
Average Cost $ 34.04 $ 31.93 $ 33.86
The cost of purchased power increased in 1997 as a result of
significantly higher prices because of the reduced availability of hydropower.
As a result, the Company only slightly increased the volume of electricity
purchased, and instead increased its generation to meet the growing demand.
1996 costs exceeded 1995 costs as a result of increased volume offset by reduced
cost per kwh due to the increased availability of inexpensive hydro electric
power from the northwest.
1997 1996 1995
-------- -------- --------
FUEL FOR POWER GENERATION $ 100,861 $ 102,601 $ 84,878
Increase (decrease) ($1,740) $ 17,723
Percentage Increase (decrease) (1.7)% 20.9%
Power Generated (MWH) 4,859,203 4,668,598 4,195,433
Increase 190,605 473,165
Percentage Increase 4.1% 11.3%
Average Cost of Generation Fuel $ 20.76 $ 21.98 $ 20.23
The cost of fuel for generation decreased slightly in 1997. This
resulted from a reduction in the cost of fuel due to the Company's purchase of
lower-cost spot coal and the operation of Pinon using natural gas. These
decreases were partially offset by the requirement to increase generation to
meet continued growth. The increase in cost in 1996 is primarily attributable
to an increase in the cost of natural gas as well as an increase in the total
generation necessary to meet growth.
1997 1996 1995
-------- -------- --------
GAS PURCHASED FOR RESALE $ 38,127 $ 33,899 $ 35,864
Increase (decrease) $ 4,228 ($1,965)
Percentage Increase
(decrease) 12.5% (5.5)%
Decatherms Purchased 14,194,641 13,031,000 10,955,666
Increase 1,163,641 2,075,334
Percentage Increase 8.9% 18.9%
Average Cost $ 2.68 $ 2.61 $ 3.27
The cost of gas purchased increased in 1997, consistent with the
customer growth in the segment. For 1996, while the Company increased total
volume of natural gas purchased, the unit cost of acquiring the gas decreased.
30
1997 1996 1995
------- -------- --------
DEFERRAL OF ENERGY COSTS $8 ($1,736) $9,597
Deferred energy accounting has been eliminated in Nevada with the exception
of costs associated with liquid propane gas. All changes in purchased gas, fuel
and purchased power are now reflected in current earnings. The 1996 income
represents the write-off of the over collected balance at the time of the
elimination.
1997 1996 1995
-------- -------- --------
OPERATING EXPENSE $120,600 $121,798 $117,619
Increase (decrease) ($1,198) $ 4,179
Percentage Increase (decrease) (1.0%) 3.6%
Operating expense for 1997 decreased primarily as a result of merger-
related retirement and severance costs incurred in 1996 but not in 1997. These
effects were offset by expenses incurred by the Pinon subsidiaries, an accrual
for delays in construction of Pinon, increased fuel buyouts and flood related
costs.
1996 operating expenses were up slightly from 1995, excluding the costs of
a coal contract buyout of $4 million. 1996 increases in wages and additional
water treatment expenses were offset by staff reductions.
1997 1996 1995
------- ------- ------
MAINTENANCE EXPENSE $23,387 $20,672 $18,391
Increase $ 2,715 $ 2,281
Percentage Increase 13.1% 12.4%
Maintenance expense for 1997 increased primarily as a result of costs
incurred for the repair and replacement of facilities damaged during a flood
which occurred in January 1997, and for the cost of more extensive plant outages
than occurred in 1996.
1996 maintenance expense increased primarily due to maintenance on the
Valmy Power Plant boiler, transmission stations and overhead lines.
1997 1996 1995
------- ------- -------
DEPRECIATION AND AMORTIZATION $64,117 $58,118 $55,065
Increase $ 5,999 $ 3,053
Percentage Increase 10.3% 5.5%
Depreciation increased in 1997 primarily as a result of new facilities
being placed in service. The Chalk Bluff water treatment plant and the Pinon
Pine power island were in service in 1997. In addition, the combustion turbines
at Clark Mountain received authorization to be utilized for more hours of
generation as opposed to peaking units. This reduced the estimated service
lives of the units and increased depreciation expense. Continued normal
additions to the utility plant contributed to the 1996 increase.
31
1997 1996 1995
------- ------ ------
ALLOWANCE FOR OTHER FUNDS USED $ 5,723 $5,231 $1,245
DURING CONSTRUCTION
ALLOWANCE FOR BORROWED FUNDS USED
DURING CONSTRUCTION $ 4,785 $3,924 $3,412
Total $10,508 $9,155 $4,657
Increase $ 1,353 $4,498
Percentage Increase 14.7% 96.6%
Allowance for funds used during construction (AFUDC) in 1997 exceeds the
1996 level primarily as a result of the Alturas Intertie project. In 1996, the
increase was the result of the AFUDC rate being higher than in 1995, combined
with higher construction work in process balances for the Alturas Intertie
project, the Chalk Bluff water treatment plant and Pinon.
1997 1996 1995
------- ------- -------
INCOME TAXES $40,387 $36,241 $37,370
Increase (decrease) $ 4,146 ($1,129)
Percentage Increase (decrease) 11.4% (3.0%)
Operating income taxes increased in 1997 as a result of improved pre-
tax income. In 1996, operating income taxes declined due to the deductibility
of merger expenses following the termination of the merger. See Footnote 9 for
a detailed analysis of income taxes.
1997 1996 1995
------- ------- -------
TAXES - OTHER THAN INCOME $19,269 $18,851 $17,725
Increase $ 418 $ 1,126
Percentage Increase 2.2% 6.4%
Increases in property, franchise and other taxes are consistent with
increases in revenues and utility plant.
1997 1996 1995
------- ------- -------
OTHER INCOME (EXPENSE) - NET $ 810 $ 867 ($3,378)
Increase (decrease) ($57) $ 4,245
For 1997, other income (expense) did not change significantly.
For 1996, other income (expense) - net, was significantly higher than 1995.
The 1995 amounts include, among other items, non-recurring expense adjustments
for transition interest and the customer shared savings program, a change in tax
regulations related to the water department trust fund, lower carrying charge
income, and a potential overcharge related to facilities.
1997 1996 1995
------- ------- -------
INTEREST ON LONG-TERM DEBT $39,609 $37,051 $35,326
Increase $ 2,558 $ 1,725
Percentage Increase 6.9% 4.9%
Interest on long term debt increased, reflecting the effect of interest on
debt issued during 1996 for the full year.
32
1997 1996 1995
------- ------- -------
OTHER INTEREST CHARGES $4,583 $4,579 $1,781
Change $ 4 $2,798
Other interest charges increased in 1996 due primarily to the absence
of a 1995 adjustment which related to the removal of interest accruals
associated with an IRS audit.
1997 1996 1995
------- ------- -------
DIVIDENDS ON TRUST ORIGINATED PREFERRED
SECURITIES $4,171 $1,749 $ 0
Due to the issuance in the third quarter of 1996 of 8.6% trust originated
preferred securities by the Company's subsidiary, Sierra Pacific Power Capital
I, preferred dividends on mandatorily redeemable preferred securities increased
in 1997.
1997 1996 1995
------- ------- -------
PREFERRED DIVIDEND REQUIREMENTS $5,459 $ 6,300 $7,374
(Decrease) ($841) ($1,074)
Preferred dividend requirements decreased due to the redemption of Series G
preferred stock in June 1996.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
CONSTRUCTION EXPENDITURES AND FINANCING
- ---------------------------------------
The table below provides cash construction expenditures and net internally
generated cash for 1995 through 1997 (dollars in thousands):
1997 1996 1995 TOTAL
-------- -------- -------- --------
CASH CONSTRUCTION EXPENDITURES $110,878 $179,101 $133,088 $428,321
======== ======== ======== ========
Net cash flow from operating activities 145,455 110,666 153,935 410,056
Less cash dividends paid 75,459 69,559 61,420 206,438
-------- -------- -------- --------
Net internally generated cash $ 69,996 $ 41,107 $ 92,515 $203,618
======== ======== ======== ========
Internally generated cash as a
percentage of cash construction
expenditures 63% 23% 70% 48%
The Company's estimated construction expenditures for 1998 through 2002 are
$571 million. The Company estimates that 45% of its 1998 cash expenditures of
$144 million will be provided by internally generated funds, with the remainder
being provided by the issuance of long-term and short-term debt.
The Company has established a $150 million revolving credit facility to
finance the construction of the Alturas Intertie. The Company estimates it will
utilize approximately $125 million of the facility. During 1998, the Company
anticipates receiving $20 million of common equity contribution from Sierra
Pacific Resources. The anticipated level of internally generated cash utilized
for construction of 45% anticipates that the Company will pay all of its net
income in dividends to Sierra Pacific Resources.
33
CAPITAL STRUCTURE
- -----------------
As of December 31, 1997, the Company had a total of $100 million in credit
facilities supporting its commercial paper program. At December 31, 1997, the
Company had $75 million of short-term borrowings outstanding, all of which were
in commercial paper. The Company's commercial paper is rated P2, A2 by Moody's
and Standard & Poor's, respectively.
As of January 29, 1998, the Company revised its credit facilities resulting
in a $150 million credit facility for the Alturas project, and a $50 million
revolving credit facility.
The Company's actual capital structure at December 31, 1997, 1996 and 1995
was as follows (dollars in thousands):
1997 1996 1995
---- ---- ----
Short-Term Debt (1) $ 75,454 (6%) $ 53,434 (4%) $ 63,208 (5%)
Long-Term Debt 606,889 (42%) 607,287 (44%) 533,524 (43%)
Preferred Stock 121,615 (8%) 121,615 (9%) 86,715 (7%)
Common Equity 639,556 (44%) 606,896 (43%) 567,383 (45%)
-------- --- ---------- ---- ---------- ----
1443,514 (100%) $1,389,232 (100%) $1,250,830 (100%)
======== ==== ========== ==== ========== ====
(1) Including current maturities of long-term debt and preferred stock.
The indenture under which the Company's first mortgage bonds are issued
prescribes certain coverage ratios that must be met before additional bonds may
be issued. At December 31, 1997, these coverage provisions would allow for the
issuance of approximately $438.6 million in additional first mortgage bonds at
an assumed interest rate of 8%. The indenture also limits the amount of first
mortgage bonds which the Company may issue to 60 percent of unfunded property
plus the amount of any previously issued bonds which have since been retired.
Based on certifications to the trustee as of December 31, 1997, these indenture
provisions would have allowed for the issuance of approximately $438 million in
additional first mortgage bonds. The company's long-term debt is rated A3, A-
by Moody's and Standard & Poor's, respectively. The Company's pre-tax interest
coverages for 1997, 1996 and 1995 were 3.60, 3.50 and 3.78, respectively.
In December 1996, the Company registered $35 million of collateralized debt
securities. No securities have been issued to date.
On November 18, 1997 SPPC's board of directors declared a common dividend
of $18.0 million, payable February 1, 1998, and a preferred dividend of $1.4
million payable March 1, 1998. On February 24, 1998 the SPPC board declared
both a common dividend of $19.0 million and preferred dividends of $1.4 million,
payable May 1, and June 1, 1998, respectively.
NEVADA MATTERS
- --------------
The Nevada Legislature passed Assembly Bill 366 during the 1997 legislative
session. This law provides for restructuring the electric utility industry in
Nevada. The PUCN is currently holding hearings and workshops necessary to
comply with and implement the law. SPPC expects the PUCN to reach final
decisions
34
on implementing the natural gas and electric provisions of AB 366 by the end of
1998. Compliance filings are expected to be due during the first quarter of
1999.
On October 21, 1997, the PUCN issued an order instituting investigation
which provided a guide of how it intended to address the various aspects of
electric restructuring. As a result of the PUCN order, hearings are expected to
identify and unbundle services; designate services as non-competitive,
competitive or potentially competitive; determine price and non-price terms and
conditions; establish licensing requirements; set up and define affiliate
requirements; address stranded cost and market power issues; develop standards
related to consumer protection; and identify the provider of last resort and
develop compliance plans.
The Company is committed to purchase certain power from Qualifying
Facilities (QF's) which is priced higher than its other supply sources.
However, Nevada law integrates the requirement to include power generated from
renewable sources. These QF contracts are priced favorably compared to other
renewable sources.
The Company has been actively participating in all hearings and workshops
related to electric and gas restructuring. At this time, it is too early to
predict how the outcome of the process will impact the Company.
CALIFORNIA MATTERS
- ------------------
On September 24, 1996, the Governor of California signed into law a bill
restructuring California's electric services industry and reforming regulation.
That bill provided for the restructuring of the electric industry beginning
January 1, 1998. The law included creation of an Independent System Operator
(ISO) to efficiently operate the State's transmission system and ensure
comparable access for power suppliers. It also created a Power Exchange (PX) to
function as a spot market for electricity. Over time, the law will provide
customers direct access to alternative suppliers. Utility provisions of
performance-based ratemaking will be applied to remaining regulated distribution
services. Stranded costs will be recovered through a separate competitive
transition charge on customers' bills.
On May 6, 1997, the California Public Utilities Commission (CPUC) issued an
order implementing portions of the California restructuring bill signed into law
in September 1996. Beginning on March 31, 1998, all investor-owned utilities,
including Sierra, must offer all customers direct access. Under the order,
customers may choose to continue to take service from their incumbent utility at
tariffed rates, purchase energy from marketers or contract directly with a
generator.
On June 27, 1997, the Company filed with the CPUC its transition plan which
addresses the Company's cost recovery and rate unbundling proposal during the
transition period (1998-2001) and contains a description of its transmission
system and constraints. On October 1, 1997, the Company filed supplemental
testimony to its plan which distinguished its position from that of Pacific Gas
and Electric, Southern California Edison and San Diego Gas and Electric (Major
Utilities). On December 16, 1997 the CPUC issued a decision on SPPC's
transition plan which requires the Company to comply with all of the provisions
that apply to the Major Utilities, including a 10% rate reduction for
residential and small commercial customers. The Company implemented the rate
reduction on January 1, 1998. On January 15, 1998 the Company filed a petition
for rehearing on several issues contained in the transition plan decision
including the recovery method of the rate reduction.
On July 1, 1997, the Company filed a direct access implementation (DAI)
plan with the CPUC which describes procedures used to offer energy to its direct
access customers. The plan is modeled after one
35
developed by the Major Utilities. The plan provides a framework for: the direct
access service election process; access to customer information; billing; credit
and collections; metering; load profiling; customer service; procedures for
aggregation and transmission service. On October 30, 1997, the CPUC issued a
decision on DAI plans which approved common tariffs for the Major Utilities. The
order also directed the Company to implement its July 1, 1997 DAI filing in the
interim until the Company receives approval of tariffs filed in compliance with
its transition decision as well as the DAI decision.
The Company's customer education program (CEP) and budget were approved on
August 1, 1997. A separate CEP was requested on May 30, 1997 because of
differences between the Major Utilities and the Company's implementation of
direct access.
The Company is still reviewing the compliance requirements associated with
this law. At this time, management cannot fully predict how these requirements
will impact the Company's electric business in California which represents
approximately 6.3% of the Company's kwh retail sales.
FERC MATTERS
- ------------
On April 24, 1996, the FERC issued its final rules concerning transmission
open access and stranded cost recovery. These were finalized in FERC Orders
888-A and 889. The rules require that public utilities that own and/or control
transmission facilities must file tariffs that allow third parties to utilize
the transmission facilities on a comparable basis to use by the transmission
owners. The transmission provider must provide tariffs that allow third parties
to purchase point-to-point transmission service or service that has multiple
points of receipt and delivery, much the same as network service. The Orders
also require that the transmission provider "unbundle" the transmission rates
into a transmission-only rate plus ancillary services for generation and
scheduling activities performed by the provider. The purchase of the ancillary
services by the customer from the transmission provider is largely optional.
The Company filed its initial tariffs for open access transmission service
by July 9, 1996 as required by FERC Order 888-A. This filing was resolved by a
settlement accepted by the Commission on May 28, 1997. On January 3, 1997, the
Company's open access online information system (OASIS) became operational in
accordance with FERC requirements and can be found on the Internet
(http://www.swoasis. com). On July 10, 1997, the Company filed revisions to its
open access tariff in compliance with FERC Order 888-A.
In July 1997, the Company made filings relating to (1) open access
transmission; (2) an unexecuted network service agreement with Truckee Donner
Public Utility District (TDPUD) (Docket No. ER97-3593-000); and (3) revisions to
the open access tariff clarifying how the Company's limited import capacity
should be allocated among network transmission customers. In September, 1997
the Company filed a form of service agreement placing itself under its own open
access tariff for non-firm and short-term firm point-to-point transmission
service and for network integration transmission service. This latter filing
was made in compliance with the FERC's omnibus order dated September 2, 1997.
On October 31, 1997, the FERC issued an order in the above referenced
docket (No. ER97-3593-000). That order rejected the proposed tariff revisions
without prejudice, requiring that limited transmission capacity be allocated on
a first in time basis rather than on a pro-rata share basis as proposed by the
Company. The two service agreement dockets were set for hearing on two factual
issues: (1) is the Company's transmission system limited to 360 MW of import
capacity; and (2) do all of the resources claimed by the Company qualify as
network resources? The Company expects these issues to be resolved in 1998.
36
On October 2, 1997, the Company filed proposed revisions to its open access
tariff to accommodate unbundled retail access transmission service associated
with state direct retail access programs. On December 22, 1997, the FERC issued
an order modifying, suspending, and setting for hearing these revisions. This
docket should also be resolved in 1998.
YEAR 2000 ISSUES
- -----------------
SPPC formed a Year 2000 project team in 1996 to address the Year 2000 issue
on all of the Company's business systems. Work has already been completed on
several major computer applications and SPPC expects to have all systems fully
compliant prior to 2000. The team is also examining all microprocessors that
govern the functions of equipment located throughout the service area. This
includes the electric transmission and distribution facilities, as well as
electric substations, power plants, water treatment facilities and natural gas
regulating stations.
SPPC estimates that the total cost of remediating the Year 2000 issues on
its business systems will be approximately $2.8 million, of which $1.4 million
has been already incurred. SPPC also has plans in place to address the impact
on its embedded systems. However, the cost of that effort has not yet been
estimated.
37
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Page
------
Reports of Independent Accountants................................................ 39, 40
Financial Statements:
Consolidated Balance Sheets as of December 31, 1997 and 1996................ 41
Consolidated Statements of Income for the Years Ended December 31,
1997, 1996 and 1995........................................................ 42
Consolidated Statements of Common Shareholder's Equity for the
Years Ended December 31, 1997, 1996 and 1995................................ 43
Consolidated Statements of Cash Flows for the Years Ended
December 31, 1997, 1996 and 1995........................................... 44
Consolidated Statements of Capitalization as of December 31, 1997
and 1996................................................................... 45
Notes to Consolidated Financial Statements........................................ 46-64
38
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholder of
Sierra Pacific Power Company
Reno, Nevada
We have audited the accompanying consolidated balance sheets and consolidated
statements of capitalization of Sierra Pacific Power Company and subsidiaries as
of December 31, 1997 and 1996, and the related consolidated statements of
income, common shareholder's equity, and cash flows for the years then ended.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits. The consolidated financial statements for the year ended
December 31, 1995 were audited by other auditors whose report, dated February
16, 1996, expressed an unqualified opinion on those statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such 1997 and 1996 consolidated financial statements present
fairly, in all material respects, the financial position of the Company as of
December 31, 1997 and 1996, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
Reno, Nevada
January 30, 1998
39
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholder of
Sierra Pacific Power Company
We have audited the accompanying consolidated balance sheet and consolidated
statement of capitalization of Sierra Pacific Power Company and subsidiaries as
of December 31, 1995, and the related consolidated statements of income, cash
flows, and shareholder's equity for the years ended December 31, 1995 and 1994.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, or a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Sierra Pacific Power Company
and subsidiaries at December 31, 1995, and the consolidated results of its
operations and its cash flows for each of the two years in the period ended
December 31, 1995 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
San Francisco, California
February 16, 1996
40
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
December 31,
ASSETS 1997 1996
------ ---- ----
Utility Plant, at Original Cost:
Plant in service $2,063,269 $1,984,781
Less accumulated provision for
depreciation 664,490 606,406
---------- ----------
1,398,779 1,378,375
Construction work in progress 202,036 165,939
---------- ----------
1,600,815 1,544,314
---------- ----------
Other Investments 26,791 21,290
---------- ----------
Current Assets:
Cash and cash equivalents 6,920 890
Accounts receivable less provision for
Uncollectible accounts: 1997 -
$1,704; 1996 - $2,196 104,926 94,782
Materials, supplies and fuel, at
average cost 25,255 27,586
Other 2,572 3,948
---------- ----------
139,673 127,206
---------- ----------
Deferred Charges:
Regulatory tax asset 66,563 67,667
Other regulatory assets 63,476 67,319
Other 14,924 14,832
---------- ----------
144,963 149,818
---------- ----------
$1,912,242 $1,842,628
========== ==========
CAPITALIZATION AND LIABILITIES
------------------------------
Capitalization:
Common shareholder's equity $ 639,556 $ 606,896
Preferred stock 73,115 73,115
Preferred stock subject to mandatory
redemption:
Company-obligated Mandatorily
Redeemable Preferred Securities of
the Company's Subsidiary Trust,
Sierra Pacific Power Capital I,
holding solely $50 million
principal amount of 8.6% Junior
Subordinated Debentures of the
Company, due 2036 48,500 48,500
Long-term debt 606,889 607,287
---------- ----------
1,368,060 1,335,798
---------- ----------
Current Liabilities:
Short-term borrowings 75,000 38,000
Current maturities of long-term debt
and redeemable preferred stock 454 15,434
Accounts payable 63,088 53,998
Accrued interest 6,394 6,178
Dividends declared 19,365 17,365
Accrued salaries and benefits 14,978 11,300
Other current liabilities 19,209 21,560
---------- ----------
198,488 163,835
---------- ----------
Deferred Credits:
Accumulated deferred federal income
taxes 162,627 162,438
Accumulated deferred investment tax
credits 39,873 41,835
Regulatory tax liability 40,767 42,870
Accrued retirement benefits 37,456 28,624
Customer advances for construction 38,478 39,429
Other 26,493 27,799
---------- ----------
345,694 342,995
---------- ----------
Commitments and Contingencies (Notes 5
and 16) $1,912,242 $1,842,628
========== ==========
The accompanying notes are an integral part of the financial statements.
41
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
Year Ended December 31,
1997 1996 1995
--------- --------- ---------
Operating Revenues:
Electric $540,346 $507,004 $491,419
Gas 70,675 67,376 62,572
Water 46,519 45,344 43,793
-------- -------- --------
657,540 619,724 597,784
-------- -------- --------
Operating Expenses:
Operation:
Purchased power 130,612 122,272 119,464
Fuel for power generation 100,861 102,601 84,878
Gas purchased for resale 38,127 33,899 35,864
Deferral of energy costs-net 8 (1,736) 9,597
Other 120,600 121,798 117,619
Maintenance 23,387 20,672 18,391
Depreciation and Amortization 64,117 58,118 55,065
Taxes:
Income taxes 40,387 36,241 37,370
Other than income 19,269 18,851 17,725
-------- -------- --------
537,368 512,716 495,973
-------- -------- --------
Operating Income 120,172 107,008 101,811
-------- -------- --------
Other Income:
Allowance for other funds
used during construction 5,723 5,231 1,245
Other (expense)income-net 810 867 (3,378)
-------- -------- --------
6,533 6,098 (2,133)
-------- -------- --------
Total Income Before
Interest Charges 126,705 113,106 99,678
-------- -------- --------
Interest Charges:
Long-term debt 39,609 37,051 35,326
Other 4,583 4,579 1,781
Allowance for borrowed
funds used during
construction and
Capitalized Interest (4,785) (3,924) (3,412)
-------- -------- --------
39,407 37,706 33,695
-------- -------- --------
Income Before Mandatorily
Redeemable Preferred
Securities 87,298 75,400 65,983
Preferred Dividend
Requirements of
Company-Obligated
Mandatorily Redeemable
Preferred Securities (4,171) (1,749) -
-------- -------- --------
Income Before Preferred 83,127 73,651 65,983
Dividends
Preferred Dividend
Requirements (5,459) (6,300) (7,374)
-------- -------- --------
Income Applicable to Common
Stock $ 77,668 $ 67,351 $ 58,609
======== ======== ========
The accompanying notes are an integral part of the financial statements.
42
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY
(DOLLARS IN THOUSANDS)
Year ended December 31,
1997 1996 1995
---- ---- ----
Common Stock
- ------------
Balance at Beginning of Year
and End of Year $ 4 $ 4 $ 4
Other Paid-In Capital
- ---------------------
Balance at Beginning of Year 518,434 482,434 447,106
Additional investment
by parent company 27,000 36,000 35,328
-------- -------- --------
Balance at End of Year 545,434 518,434 482,434
-------- -------- --------
Retained Earnings
- -----------------
Balance at Beginning of Year 88,458 84,945 84,167
Income before preferred dividends 83,127 73,651 65,983
Preferred stock dividends declared (5,459) (5,879) (9,205)
Common stock dividends declared (72,000) (64,000) (56,000)
Cost of issuing common stock
(reimbursement to parent company) (8) (259) -
-------- -------- --------
Balance at End of Year 94,118 88,458 84,945
-------- -------- --------
Total Common Shareholder's
Equity at End of Year $639,556 $606,896 $567,383
======== ======== ========
The accompanying notes are an integral part of the financial statements.
43
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
Year Ended December 31,
1997 1996 1995
---- ---- ----
Cash Flows From Operating Activities:
- ------------------------------------
Income before preferred dividends $ 83,127 $ 73,651 $ 65,983
Non-Cash items included in income:
Depreciation and amortization 64,117 58,118 55,065
Deferred taxes and investment tax credits (2,772) 1,233 (2,699)
AFUDC and capitalized interest (10,508) (9,155) (4,657)
Deferred energy costs 8 (1,736) 9,597
Early Retirement and severance amortization 4,551 7,877 2,127
Merger Costs (50) 1,909 11,612
Other non-cash (2,109) 2,803 2,719
Changes in certain assets and liabilities:
Accounts receivable (10,144) (3,520) (15,965)
Materials, supplies and fuel 2,331 2,869 935
Other current assets 1,376 (1,602) 820
Accounts payable 9,090 (36,817) 41,260
Other current liabilities 1,543 12,475 (5,814)
Other - net 4,895 2,561 (7,048)
--------- --------- ---------
Net Cash Flows From Operating Activities 145,455 110,666 153,935
--------- --------- ---------
Cash Flows Used in Investing Activities:
- ----------------------------------------
Additions to utility plant (147,801) (203,109) (144,197)
Non-cash charges to utility plant 11,553 9,475 5,059
Customer refunds for construction (951) (739) (571)
Contributions in aid of construction 26,321 15,272 6,621
--------- --------- --------
Net cash used for utility plant (110,878) (179,101) (133,088)
Disposal of (investment in) subsidiaries and
other non-utility property-net (5,254) 681 (16,950)
--------- --------- ---------
Net Cash Used in Investing Activities (116,132) (178,420) (150,038)
--------- --------- ---------
Cash Flows From (Used in) Financing Activities:
- -----------------------------------------------
Increase (Decrease) in short-term borrowings 40,583 (16,059) 12,635
Proceeds from issuance of long-term debt - 80,041 -
Retirement of long-term debt (15,417) (427) (10,383)
Decrease in funds held in trust - 9,175 23,058
Retirement of preferred stock - (20,400) (6,800)
Proceeds from Company-obligated Mandatorily Redeemable - 48,500 -
Preferred Securities
Additional investment by parent company 27,000 36,000 35,329
Expenses of external financing - - (59)
Dividends paid (75,459) (69,559) (61,420)
--------- --------- ---------
Net Cash (Used in) From Financing Activities (23,293) 67,271 (7,640)
--------- --------- ---------
Net Increase (Decrease) in Cash and
Cash Equivalents 6,030 (483) (3,743)
Beginning Balance in Cash and Cash Equivalents 890 1,373 5,116
--------- --------- ---------
Ending Balance in Cash and Cash Equivalents $ 6,920 $ 890 $ 1,373
========= ========= =========
Supplemental Disclosures of Cash Flow Information:
- --------------------------------------------------
Cash Paid During Year For:
Interest $ 46,824 $ 41,256 $ 37,706
Income taxes $ 41,656 $ 39,993 $ 40,177
The accompanying notes are an integral part of the financial statements.
44
SIERRA PACIFIC POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
(DOLLARS IN THOUSANDS)
December 31,
1997 1996
---------- ----------
Common Shareholder's Equity:
- ----------------------------
Common stock, $3.75 par value,
1,000 shares authorized, issued and
outstanding $ 4 $ 4
Other paid-in capital 545,434 518,434
Retained earnings 94,118 88,458
---------- ----------
Total Common Shareholder's Equity 639,556 606,896
---------- ----------
Cumulative Preferred Stock:
- ---------------------------
Not subject to mandatory redemption:
$50 par value:
Series A; $2.44 dividend 4,025 4,025
Series B; $2.36 dividend 4,100 4,100
Series C; $3.90 dividend 14,990 14,990
$25 stated value:
Class A Series 1; $1.95 dividend 50,000 50,000
---------- ----------
Total Preferred Stock 73,115 73,115
Company-obligated Mandatorily
Redeemable Preferred
Securities of the Company's
Subsidiary Trust,
Sierra Pacific Power Capital I,
holding solely
$50 million principal amount of
8.60% Junior
Subordinated Debentures of the
Company, due 2036 48,500 48,500
---------- ----------
Total preferred stock 121,615 121,615
---------- ----------
Long-Term Debt:
- ---------------
First Mortgage Bonds:
Unamortized bond premium and
discount, net (867) (906)
Debt Secured by First Mortgage Bonds:
2.00% Series Z due 2004 114 135
2.00% Series O due 2011 1,618 1,736
6.35% Series FF due 2012 1,000 1,000
6.55% Series AA due 2013 39,500 39,500
6.30% Series DD due 2014 45,000 45,000
6.65% Series HH due 2017 75,000 75,000
6.65% Series BB due 2017 17,500 17,500
6.55% Series GG due 2020 20,000 20,000
6.30% Series EE due 2022 10,250 10,250
6.95% to 8.65% Series A MTN due 2022 115,000 115,000
7.10% and 7.14% Series B MTN due 2023 58,000 58,000
6.83% and 6.86% Series C MTN due 1999 30,000 30,000
6.62% to 6.83% Series C MTN due 2006 50,000 50,000
5.90% Series JJ due 2023 9,800 9,800
5.90% Series KK due 2023 30,000 30,000
5.00% Series Y due 2024 3,275 3,335
6.70% Series II due 2032 21,200 21,200
---------- ----------
Subtotal, excluding current
portion 527,257 527,456
Rate Note:
Water Facilities Note: maturing 2020 80,000 80,000
Other, excluding current portion 499 737
---------- ----------
Total Long-Term Debt 606,889 607,287
---------- ----------
TOTAL CAPITALIZATION $1,368,060 $1,335,798
========== ==========
The accompanying notes are an integral part of the financial statements.
45
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies for utility operations are as
follows:
GENERAL
- -------
Sierra Pacific Power Company (SPPC), a wholly owned subsidiary of
Sierra Pacific Resources (SPR), is a regulated public utility engaged
principally in the generation, purchase, transmission, distribution, and sale of
electric energy. It provides electricity to approximately 287,000 customers in
a 50,000 square mile area including Reno, west, central, and northeastern
Nevada, and including the cities of Reno, Sparks, Carson City and Elko, and
portions of eastern California. SPPC also provides water and gas service in the
cities of Reno and Sparks, Nevada, and environs. In 1995, SPPC formed two
subsidiaries for the specific purpose of forming a partnership with a subsidiary
of General Electric Capital Corporation (GECC) to participate in the
construction and operation of the Pinon Pine gasifier facility. These
subsidiaries are Pinon Pine Corporation and Pinon Pine Investment Company. They
are consolidated into the financial statements of SPPC, with all significant
intercompany transactions eliminated. On July 29, 1996, SPPC formed a wholly
owned subsidiary, Sierra Pacific Power Capital I (Trust), for the purpose of
completing a public offering of trust originated preferred securities. Refer to
Note 4 of the Company's consolidated financial statements for the securities
issuance and Note 3 for the Pinon Pine Power Project.
SPPC maintains its accounts for electric and gas operations in
accordance with the uniform system of accounts prescribed by the Federal Energy
Regulatory Commission (FERC) and for water operations in accordance with the
uniform system of accounts prescribed by the National Association of Regulatory
Utility Commissioners.
The preparation of consolidated financial statements in conformity
with generally accepted accounting principles 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.
Certain reclassifications have been made for comparative purposes but
have not affected previously reported net income or common shareholders' equity.
SPPC UTILITY PLANT
- ------------------
In addition to direct labor and material costs, SPPC also charges to
the construction of utility plant: the cost of time spent by administrative
employees in planning and directing construction work; property taxes; employee
benefits (including such costs as pensions, postretirement and postemployment
benefits, vacations and payroll taxes); and an allowance for funds used during
construction.
46
The original cost of plant retired or otherwise disposed of and the
cost of removal less salvage are generally charged to the accumulated provision
for depreciation. The cost of current repairs and minor replacements is charged
to expense when incurred. The cost of renewals and betterments is capitalized.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION AND CAPITALIZED INTEREST
- ---------------------------------------------------------------------
SPPC capitalizes, as part of construction costs on utility plant, an
allowance for funds used during construction (AFUDC). AFUDC represents the cost
of borrowed funds and a reasonable return on other funds used for construction
purposes in accordance with rules prescribed by the FERC and the PUCN. AFUDC is
capitalized in the same manner as construction labor and material costs, with an
offsetting credit to "other income" for the portion representing other funds and
as a reduction of interest charges for the portion representing borrowed funds.
Recognition of this item as a cost of utility plant is in accordance with
established regulatory ratemaking practices. Such practices permit the utility
to earn a fair return on, and recover all capital costs in rates charged for
utility services. This is accomplished by including such costs in rate base and
in the provision for depreciation.
The AFUDC rates used during 1997, 1996 and 1995 were 8.30%, 8.91% and
8.16%, respectively. As specified by the PUCN, certain projects were assigned a
lower AFUDC rate due to specific low-interest-rate financings directly
associated with those projects.
DEPRECIATION
- ------------
Depreciation is calculated using the straight-line composite method
over the estimated remaining service lives of the related properties. The
provision, as authorized by the PUCN, for 1997, 1996 and 1995, stated as a
percentage of the original cost of depreciable property, was 3.16%, 3.18% and
3.16%, respectively.
CASH AND CASH EQUIVALENTS
- -------------------------
Cash is comprised of cash on hand and working funds. Cash equivalents
consist of high quality investments in commercial paper of other corporations
with original maturities of three months or less.
SPPC engages in short-term investment activity whenever it is deemed
beneficial. As of December 31, 1997 SPPC's investment in commercial paper was
$4.7 million. SPPC had no commercial paper investments as of December 31, 1996.
REGULATORY ACCOUNTING AND OTHER REGULATORY ASSETS
- -------------------------------------------------
SPPC's rates are currently subject to the approval of the PUCN and are
designed to recover the cost of providing generation, transmission and
distribution services. As a result, SPPC qualifies for the application of SFAS
No. 71, "Accounting for the Effects of Certain Types of Regulation". This
statement recognizes that the rate actions of a regulator can provide reasonable
assurance of the existence of an asset and requires the capitalization of
incurred costs that would otherwise be charged to expense where it is probable
that future revenue will be provided to recover these costs. SFAS No. 101,
"Regulated Enterprises-Accounting for the
47
Discontinuation of Application of FASB Statement No. 71" requires that an
enterprise whose operations cease to meet the qualifying criteria of SFAS 71
should discontinue the application of that statement by eliminating the effects
of any actions of regulators that had been previously recognized.
In 1997, the Emerging Issues Task Force (EITF) released Issue 97-4.
In doing so, it reached a consensus that a utility subject to a deregulation
plan for its generation business should stop applying SFAS No. 71 to the
generating portion of its business no later than the date when a plan with
sufficient detail of the effect of the plan is known. EITF 97-4 also reached a
consensus that regulatory assets and liability that originated in a portion of
the business which is discontinuing its application of SFAS No. 71 should be
evaluated on the basis of where (that is, the portion of the business in which)
the regulated cash flows to realize and settle them will be derived. The result
of the consensus is that there is no elimination of regulatory assets which the
deregulatory legislation or rate order specifies collection of, if they are
recoverable through a portion of the business which remains subject to SFAS No.
71.
In conformity with SFAS No. 71, the accounting for the utility
business conforms with generally accepted accounting principles as applied to
regulated public utilities and as prescribed by agencies and the commissions of
the various locations in which the utility businesses operate.
In accordance with these principles, certain costs that would
otherwise be charged to expense or capitalized as plant costs are deferred as
regulatory assets based on expected recovery from customers in future rates.
Management's expected recovery of deferred costs is based upon specific
ratemaking decisions or precedent for each item. The following other regulatory
assets were included in the consolidated balance sheets as of December 31
(dollars in thousands):
DESCRIPTION 1997 1996 AMORTIZATION PERIODS
- ----------- -------- -------- --------------------
Early Retirement and Severance Offers $24,644 $29,195 Various through 2005
Loss on Reacquired Debt 18,354 19,113 Various through 2023
Plant Assets 8,869 9,888 Various through 2031
Conservation and Demand Side Programs 6,146 6,805 Various through 2006
Other Costs 5,463 2,318 Various
------- -------
Total $63,476 $67,319
======= =======
Currently, the electric utility industry is predominately regulated on
a basis designed to recover the cost of providing electric power to its retail
and wholesale customers. If cost-based regulation were to be discontinued in
the industry for any reason, including competitive pressure on the cost-based
prices of electricity, profits could be reduced, and utilities might be required
to reduce their asset balances to reflect a market basis less than cost.
Discontinuance of cost-based regulation would also require affected utilities to
write off their associated regulatory assets. Management cannot predict the
potential impact, if any, of these competitive forces on SPPC's future financial
position and results of operations.
DEFERRAL OF ENERGY COSTS
- ------------------------
SPPC has suspended deferred energy accounting in its Nevada (except
for the cost of liquid propane gas) and California jurisdictions. Prior to May
1995 (Nevada) and June 1996 (California), SPPC employed deferred energy
accounting procedures in its electric and gas operations, as provided by
statutes. The intent of these procedures was to capture fluctuations in the
cost of
48
purchased gas, fuel and purchased power. Deferred energy accounting required
SPPC to record the difference between actual fuel expense and fuel revenues as
deferred energy costs. Refer to Note 2 of SPPC's consolidated financial
statements.
FEDERAL INCOME TAXES AND INVESTMENT TAX CREDITS
- -----------------------------------------------
SPR and its subsidiaries file a consolidated federal income tax
return. Current income taxes are allocated based on the parent and each
subsidiary's respective taxable income or loss and investment tax credits as if
each subsidiary filed a separate return. Deferred taxes are provided on timing
differences at the statutory income tax rate in effect as of the most recent
balance sheet date.
For regulatory purposes, SPPC is authorized to provide for deferred
taxes on the difference between straight-line and accelerated tax depreciation
on post-1969 utility plant expansion property, deferred energy, and certain
other differences between financial reporting and taxable income, including
those added by the Tax Reform Act of 1986 (TRA). In 1981, SPPC began providing
for deferred taxes on the benefits of using the Accelerated Cost Recovery System
for all post-1980 property. In 1987 the TRA required SPPC to begin providing
deferred taxes on the benefits derived from using the Modified Accelerated Cost
Recovery System.
Investment tax credits are no longer available to SPPC. The deferred
investment tax credit balance is being amortized over the estimated service
lives of the related properties.
REVENUES
- --------
SPPC accrues unbilled utility revenues earned from the dates customers
were last billed to the end of the accounting period. These amounts are
included in accounts receivable.
NOTE 2. REGULATORY ACTIONS
NEVADA PROCEEDINGS
- ------------------
A rate plan, approved by the PUCN in February 1997 included: a one-
time refund of $13 million in electric rates, a $7 million rate reduction, a
rate freeze for electric and natural gas rates through December 1999, and
continued suspension of deferred energy accounting. In addition, the deferred
energy and purchased gas filings were withdrawn. Water prices were not affected
by the stipulated rate plan.
The rate plan also provides for a 50/50 sharing between customers and
shareholders of electric and gas utility earnings in excess of a 12 percent
return on average equity. In lieu of refunds, SPPC has an opportunity, subject
to certain conditions, to apply such excess to buying down or buying out of
long-term fuel and purchased power contracts currently in place. The first
earnings sharing filing will be made no later than April 30, 1998.
In September 1997, SPPC filed an application to increase its water
prices with the PUCN. Rate changes were requested primarily because of
expenditures for the Chalk Bluff Water Treatment Plant, improvements to the
Glendale Water Treatment Plant, as well as other improvements required by the
federal Safe Drinking Water Act. The application was updated in
49
December to request a $13.7 million (or 30%) increase. Hearings began in January
1998, with rates expected to be effective in April 1998.
CALIFORNIA PROCEEDINGS
- ----------------------
As a result of the termination of a merger, certain filings were made
in SPPC's California jurisdiction. In a previous decision, which conditionally
approved the merger, SPPC was required to file various rate applications for
test year 1997 in the event the merger was not consummated by March 31, 1996.
In a second decision, the California Commission extended this deadline and
suspended deferred energy accounting, which reduced SPPC's rates by $2.3 million
effective June 1, 1996. With termination of the merger, another decision was
issued which ordered a rate freeze through December 31, 2000 and continued the
suspension of deferred energy accounting.
NOTE 3. JOINTLY-OWNED FACILITIES
VALMY
- -----
SPPC and Idaho Power Company each own an undivided 50% interest in the
Valmy generating station, with each company being responsible for financing its
share of capital and operating costs. SPPC is the operator of the plant for
both parties.
SPPC's share of direct operation and maintenance expenses for Valmy is
included in the accompanying consolidated statements of income.
The following schedule reflects SPPC's 50% ownership interest in the
jointly-owned electric utility plant at December 31, 1997 (dollars in
thousands):
Electric Accumulated Construction
MW Plant Provision For Work In
Plant Capacity In Service Depreciation Progress
----- -------- ---------- ------------- ------------
Valmy #1 129 $127,520 $49,642 $173
Valmy #2 137 $153,917 $48,850 $592
PINON PINE
- ----------
Pinon Pine Corp. and Pinon Pine Investment Co., subsidiaries of SPPC,
own 25% and 75% respectively of a 38% interest in Pinon Pine Co., LLC (the LLC),
with a subsidiary of General Electric Capital Corporation (GECC) owning the
remaining 62%. The LLC was formed to take advantage of federal income tax
credits available under IRC (S)29 from the production and sale of an alternative
fuel (syngas) produced by the coal gasifier. These tax credits will expire on
June 30, 1998. The entire project, which includes an LLC-owned gasifier and an
SPPC-owned power island and post-gasification facilities to partially cool and
clean the syngas, is referred to collectively as the Pinon Pine Power Project.
SPPC has a funding agreement with the DOE. Under the agreement, the
DOE will provide funding towards the construction of the project, and towards
the operating and maintenance costs of the facility. The total DOE contribution
is capped at $168 million, and through December 31, 1997, the DOE has funded
$138.5 million (including O&M expenses).
50
Total capital costs for the Pinon Pine Power Project are now estimated to be
$298.7 million. The LLC capital investment is capped at $46 million, DOE capital
contributions are estimated at $131.8 million and SPPC capital investment is
estimated at $120.9 million exclusive of it's share of the LLC investment.
SPPC must satisfy certain performance requirements as part of the
construction agreement with the LLC. The initial performance warranty required
that the gasifier attain an average capacity factor of 30% during 1997,
regardless of delays in the in-service date. Since the gasifier was not in
service in 1997, the certain performance warranties required by the contract
were not met. Consequently, SPPC has reserved $2.8 million as satisfaction of
the performance obligation. If the average capacity factor falls below 70% for
1998, SPPC is required to pay to the LLC lost revenues as a result of the actual
average capacity factor achieved compared to the 70% average capacity factor
required by the contract. If contracted performance levels are not met during
1998, SPPC may be required to refinance GECC's investment in the LLC. Under the
terms of the LLC agreements, GECC would be reimbursed for capital invested plus
a return on capital. If the Company is required to buyout GECC, it is estimated
that the total payment would be approximately $30 million.
NOTE 4. PREFERRED STOCK
All issues of preferred stock are superior to common stock with
respect to dividend payments (which are cumulative) and liquidation rights.
SPPC's Restated Articles of Incorporation, as amended on August 19, 1992,
authorize an aggregate total of 11,780,500 shares of preferred stock at any
given time.
The following table indicates the number of shares outstanding and the
dollar amount thereof at December 31 of each year. The difference between total
shares authorized and the amount outstanding represents undesignated shares
authorized but not issued.
1997 1996 1995
--------- --------- ---------
(dollars in thousands) Shares Amount Shares Amount Shares Amount
--------- -------- --------- -------- --------- -------
Not Subject to
Mandatory Redemption:
Series A 80,500 $ 4,025 80,500 $ 4,025 80,500 $ 4,025
Series B 82,000 4,100 82,000 4,100 82,000 4,100
Series C 299,800 14,990 299,800 14,990 299,800 14,990
Class A Series 1 2,000,000 50,000 2,000,000 50,000 2,000,000 50,000
--------- -------- --------- -------- --------- -------
Subtotal 2,462,300 73,115 2,462,300 73,115 2,462,300 73,115
Subject to Mandatory
Redemption:
Series G - - - - 408,000 20,400
Preferred Securities
of Sierra Pacific Power 1,940,000 48,500 1,940,000 48,500 - -
--------- -------- --------- -------- --------- -------
Capital I
Total 4,402,300 $121,615 4,402,300 $121,615 2,870,300 $93,515
========= ======== ========= ======== ========= =======
51
SPPC's Series G Preferred Stock was redeemable at any time at a redemption
price of $50 plus accrued dividends. SPPC was required to redeem 136,000 shares
at par value plus accrued dividends annually starting June 1, 1994. On June 3,
1996, SPPC redeemed the remaining 408,000 shares of Series G, 8.24% Preferred
Stock, at par value, for $20.4 million using the proceeds from the following
issuance of Preferred Securities.
On July 29, 1996, Sierra Pacific Power Capital I (the Trust), a wholly-
owned subsidiary of the Company, issued $48.5 million (1,940,000 shares) 8.60%
Trust Originated Preferred Securities (the preferred securities). SPPC owns
all the common securities of the Trust, 60,000 shares totaling $1.5 million
(common securities). The preferred securities and the common securities (the
Trust Securities) represent undivided beneficial ownership interests in the
assets of the Trust. The existence of the Trust is for the sole purpose of
issuing the Trust Securities and using the proceeds thereof to purchase from
SPPC its 8.60% Junior Subordinated Debentures due July 30, 2036, in a principal
amount of $50 million. The sole asset of the Trust is SPPC's Junior
Subordinated Debentures. SPPC's obligations under the guarantee agreement
entered into in connection with the preferred securities, when taken together
with the SPPC's obligation to make interest and other payments on the junior
subordinated debentures issued to the Trust, and SPPC's obligations under its
Indenture pursuant to which the junior subordinated debentures are issued and
its obligations under the declaration, including its liabilities to pay costs,
expenses, debts and liabilities of the Trust, provides a full and unconditional
guarantee by SPPC of the Trust's obligations under the Preferred Securities.
In addition to retiring the Series G Preferred Stock, proceeds were used to
reduce short-term borrowings.
The Preferred Securities of Sierra Pacific Power Capital I are
redeemable only in conjunction with the redemption of the related 8.60% junior
subordinated debentures. The junior subordinated debentures will mature on July
30, 2036, and may be redeemed, in whole or in part, at any time on or after July
30, 2001, or at any time in certain circumstances upon the occurrence of a tax
event. A tax event occurs if an opinion has been received from tax counsel that
there is more than an insubstantial risk that: the Trust is, or will be subject
to federal income tax with respect to interest accrued or received on the junior
subordinated debentures; the Trust is, or will be subject to more than a de
minimis amount of other taxes, duties or other governmental charges; interest
payable by SPPC to the Trust on the junior subordinated debentures is not, or
will not be, deductible, in whole or in part for federal income tax purposes.
Upon the redemption of the junior subordinated debentures, payment
will simultaneously be applied to redeem preferred securities having an
aggregate liquidation amount equal to the aggregate principal amount of the
Junior Subordinated Debentures. The preferred securities are redeemable at $25
per preferred security plus accrued dividends.
NOTE 5. LONG-TERM DEBT
Substantially all utility plant is subject to the lien of the SPPC
indenture under which the first mortgage bonds are issued.
A financing agreement in connection with SPPC's $80 million Water
Facilities Bonds, maturing in 2020, requires SPCC to maintain a bank letter of
credit agreement. On July 19, 1996, SPPC converted the interest rate on the
bonds to a daily rate which reduced the letter of
52
credit, trustee fees, and administrative costs. The fees are included in long-
term debt interest charges on the Consolidated Statement of Income.
SPPC issued $80 million principal amount of collateralized Medium-Term
Notes, Series C, consisting of ten year non-callable notes, due in 2006, with
interest rates ranging from 6.62% to 6.83% and three year non-callable notes,
due in 1999, with interest rates ranging from 6.83% to 6.86%. For all notes,
interest is payable in semi-annual payments. The proceeds to SPPC from the
sales of the notes were to reduce short-term debt and were used to fund
construction projects.
In December 1996, SPPC registered an additional $35 million of
collateralized debt securities. The net proceeds to SPPC from the sale of these
notes will be used for general corporate purposes including, but not limited to:
the acquisition of property; the construction, completion, extension or
improvement of facilities; or discharge or refunding of obligations, including
short-term borrowings. As of December 31, 1997, SPPC has not yet issued these
securities.
On June 30, 1997, SPPC redeemed $15 million 6.5% First Mortgage Bonds which
had been included in the current liability portion of the consolidated balance
sheet.
SPPC's aggregate annual amounts of maturities for long-term debt for each
fiscal year ended 1998 through 2002 are shown below (dollars in thousands):
1998 $500
1999 30,500
2000 300
2001 200
2002 200
53
NOTE 6. TAXES
The following reflects the composition of taxes on income (dollars in
thousands):
1997 1996 1995
-------- -------- --------
Federal:
Taxes estimated to be currently
Payable $40,574 $33,070 $39,150
Deferred taxes related to:
Excess of tax depreciation over
book depreciation 3,997 5,217 9,237
Deferral of energy costs
deducted currently for tax
purposes-net (3) (307) (4,112)
Contributions in aid of
construction and customer
Advances (3,966) (2,917) (1,798)
Avoided interest capitalized (1,578) (3,124) (569)
Costs of abandoned merger 301 4,359 (776)
Other-net 712 (33) (2,739)
Net amortization of investment tax
Credit (1,962) (1,961) (1,942)
State (California) 801 754 688
-------- -------- --------
Total $38,876 $35,058 $37,139
======== ======== ========
As Reflected in Statements of Income:
Federal income taxes 39,586 35,487 36,682
State income taxes 801 754 688
-------- -------- --------
Operating Income 40,387 36,241 37,370
Other income-net (1,511) (1,183) (231)
-------- -------- --------
Total $38,876 $35,058 $37,139
======== ======== ========
54
The total income tax provisions differ from amounts computed by
applying the federal statutory tax rate to income before income taxes for the
following reasons (dollars in thousands):
1997 1996 1995
-------- -------- --------
Income before preferred dividends $ 83,127 $ 73,651 $ 65,983
Total income tax expense 38,876 35,058 37,139
-------- -------- --------
122,003 108,709 103,122
Statutory tax rate 35% 35% 35%
-------- -------- --------
Expected income tax expense 42,701 38,048 36,093
Depreciation related to difference
in cost basis for tax purposes 1,591 2,456 2,394
Allowance for funds used during
construction - equity (1,912) (1,831) (540)
Tax benefit from the disposition
of assets (569) (1,130) (1,427)
ITC amortization (1,962) (1,961) (1,942)
Other-net (973) (524) 2,561
-------- -------- --------
$ 38,876 $ 35,058 $ 37,139
======== ======== ========
Effective tax rate 31.9% 32.2% 36.0%
======== ======== ========
ACCUMULATED DEFERRED FEDERAL INCOME TAXES
- -----------------------------------------
The net accumulated deferred federal income tax liability consists of
accumulated deferred federal income tax liabilities less related accumulated
deferred federal income tax assets, as shown (dollars in thousands):
1997 1996 1995
-------- -------- --------
Accumulated Deferred Federal
Income Tax Liabilities:
AFUDC $ 7,174 $ 5,745 $ 4,459
Bond redemptions 6,423 6,690 7,184
Excess of tax depreciation over
book depreciation 154,240 142,441 136,067
Tax benefits flowed through
to customers 66,563 67,667 69,610
Other 5,853 7,532 5,403
-------- -------- --------
Total 240,253 230,075 222,723
-------- -------- --------
Accumulated Deferred Federal
Income Tax Assets:
Avoided interest capitalized 13,819 12,241 9,117
Contributions in aid of
construction and customer advances 30,697 25,980 23,102
Unamortized investment tax credit 21,471 22,527 23,583
Other 11,639 6,890 7,949
-------- -------- --------
Total 77,626 67,638 63,751
-------- -------- --------
Accumulated Deferred Federal Income Taxes $162,627 $162,437 $158,972
======== ======== ========
55
SPPC's balance sheets contain a net regulatory tax asset of $25.8
million at year-end 1997 and $24.8 million at year-end 1996. The net regulatory
asset consists of future revenue to be received from customers (a regulatory tax
asset) of $66.6 million at year-end 1997 and $67.7 million at year-end 1996, due
to flow-through of the tax benefits of temporary differences. Offset against
these amounts are future revenues to be refunded to customers (a regulatory tax
liability), consisting of $19.3 million at year-end 1997 and $20.3 million at
year-end 1996, due to temporary differences which arose from liberalized
depreciation at tax rates which were in excess of current tax rates, and $21.5
million at year-end 1997 and $22.5 million at year-end 1996 due to temporary
differences caused by the investment tax credit. The regulatory tax liability
for temporary differences related to liberalized depreciation will continue to
be amortized using the average rate assumption method required by the Tax Reform
Act of 1986. The regulatory tax liability for temporary differences caused by
the investment tax credit will be amortized ratably in the same fashion as the
accumulated deferred investment credit.
NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS
The December 31, 1997 carrying amount for cash, cash equivalents,
current assets, accounts payable, current liabilities, and construction trust
funds approximates fair value due to the short-term nature of these instruments.
The total fair value of SPPC's long-term debt at December 31, 1997, is
estimated to be $640.4 million (excluding current portion) 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 (excluding
current portion) was estimated to be $619.1 million at December 31, 1996.
NOTE 8. SHORT-TERM BORROWINGS
In 1995, SPPC replaced its lines-of-credit arrangements with an $80
million revolving credit facility, which expired on December 29, 1997. At that
time, the Company replaced this line with various credit facilities totaling
$100 million. As of January 29, 1998, SPPC revised its credit facilities
resulting in a $150 million credit facility for the Alturas project and a $50
million revolving credit facility. SPPC pays the lender a facility fee on the
commitment quarterly, in arrears, based on SPPC's First Mortgage Bond rating.
Facility fees for 1997 and 1996 were approximately $101,000 for each year.
At December 31, 1997, SPPC's short-term borrowings of $75.0 million
were comprised entirely of commercial paper at an average interest rate of
6.12%. At December 31, 1996, SPPC had $38.0 million of commercial paper at an
average interest rate of 5.65%.
The other subsidiaries of SPPC have no outstanding short-term
borrowings at this time.
NOTE 9. DIVIDENDS
The Restated Articles of Incorporation of SPPC and the indentures
relating to the various series of its First Mortgage Bonds contain restrictions
as to the payment of dividends on its common stock. Under the most restrictive
of these limitations, approximately $78.7 million of retained earnings were
available at December 31, 1997 for the payment of common stock cash dividends.
56
NOTE 10. RETIREMENT PLAN
SPPC sponsors a noncontributory defined benefit retirement plan
covering all employees who satisfy the service requirement.
The plan provides benefits based on each covered employee's years of
service, highest five-year average compensation, and a step rate benefit formula
indirectly integrating the plan with Social Security.
Beginning in 1998, plan provisions applicable to employees covered by
the collective bargaining agreement were amended to recognize additional
compensation as pensionable pay and to reduce the penalty for retirement before
age 62.
SPPC's funding policy is to contribute an annual amount to an
irrevocable trust that is not less than the minimum funding requirement under
the Employee Retirement Income Security Act of 1974, and not in excess of the
amount that can be deducted for federal income tax purposes. The plan's assets
are invested primarily in common stocks, marketable bonds and other fixed-income
securities. The remainder is held in cash and cash equivalents. None of the
plan assets are invested in SPR common or SPPC preferred stock.
In April 1995, SPPC offered an early retirement plan to non-bargaining
unit employees age 50 and older with at least 15 years of credited service as of
January 1, 1996 and whose age and credited years of service equaled at least 70.
The present value of termination costs relating to the 112 employees who
accepted the offering was originally recorded in 1995 at $16.8 million, but was
revalued at $12.8 million during 1996 due to a revision in the measurement date.
These termination costs were fully deferred, as a regulatory asset, as of
December 31, 1995. During 1996, SPPC began amortizing the termination costs by
recognizing expense for both 1995 and 1996. SPPC is using a ten-year
amortization period for these costs, consistent with the treatment of previous
early retirement programs.
The following table sets forth a reconciliation of the funded status
of the plan with amounts included in SPPC's consolidated balance sheets as of
December 31, 1997 and 1996 (dollars in thousands):
1997 1996
---------- ----------
Actuarial present value of benefit
obligations:
Vested benefit obligation $ 134,237 $ 118,383
========= =========
Accumulated benefit obligation
$ 142,572 $ 125,547
========= =========
Projected benefit obligation
$ 180,921 $ 157,660
Less plan assets at fair value (190,535) (167,416)
--------- ---------
Projected benefit obligation (less
than) in excess of plan assets (9,614) (9,756)
Unrecognized net gain 35,379 26,661
Unrecognized prior service cost (9,419) (4,251)
--------- ---------
Net balance sheet liability $ 16,346 $ 12,654
========= =========
57
In the preceding table, unrecognized net gain represents the net gain
attributable to changes in actuarial assumptions and differences between actual
experience and actuarial assumptions.
Net periodic pension expense for 1997, 1996 and 1995 included the
following components (dollars in thousands):
1997 1996 1995
-------- -------- ---------
Service cost $ 5,825 $ 6,652 $ 6,320
Interest cost 11,920 11,778 10,380
Actual gain on plan assets (31,617) (19,954) (33,248)
Net amortizations and deferrals 17,564 7,736 23,518
Costs associated with 1995
early retirement plan - - 12,825
-------- -------- ---------
Net periodic pension cost as
Determined under SFAS No. 87 3,692 6,212 19,795
Amount expensed (deferred) under
SFAS No. 71 - net 2,599 3,882 (11,509)
-------- -------- ---------
Net periodic pension expense
Recognized $ 6,291 $ 10,094 $ 8,286
======== ======== ========
Amount charged to operating expense $ 4,188 $ 6,769 $ 5,416
======== ======== ========
Amount charged to utility plant
and clearing accounts $ 2,103 $ 3,325 $ 2,870
======== ======== ========
In the preceding table, service cost represents the benefits earned
during the year while interest cost represents the increase in the accumulated
benefit obligation due to the passage of time.
The amount deferred under SFAS No. 71 represents the SFAS No. 88 costs
arising from the 1989, 1992 and 1995 early retirement programs. Pursuant to
PUCN directive and prior precedent, costs for the 1989, 1992 and 1995 programs
are being amortized over 10 years and are summarized as follows (dollars in
thousands):
1997 1996 1995
------- ------- ----------
SFAS No. 88 costs associated with
the 1995 early retirement program $ - $ - $(12,825)
Amortization of 1995 early
retirement program 1,283 2,566 -
Amortization of 1992 early
retirement program 574 574 574
Amortization of 1989 early
retirement program 742 742 742
------- ------ --------
Net amount expensed (deferred)
under SFAS No. 71 $2,599 $3,882 $(11,509)
======= ====== ========
The weighted average discount rate used in determining the actuarial
present value of the projected benefit obligation as of December 31, 1997, 1996
and 1995 was 7.25%, 7.50% and 7.00% respectively. The assumed compensation
increase rate used for the same periods was 5.00% for all years. For purposes
of determining 1997, 1996 and 1995 pension cost, the
58
expected long-term rate of return on assets was 8.50%, 8.50% and 9.00%
respectively. Additionally, the projected benefit obligation as of December 31,
1997 reflects the adoption of the 1994 Group Annuity Generational Mortality
Table.
In addition to the employee retirement plan covering all employees,
SPPC has a Supplemental Executive Retirement Plan which is a non-qualified
defined benefit plan under which SPPC will pay out of general assets
supplemental pension benefits to key executives. SPPC also has a non-qualified
supplemental pension plan covering certain employees. This plan provides for
incremental pension payments from SPPC's funds so that total pension payments
equal amounts that would have been payable from SPPC's principal pension plan if
it were not for limitations imposed by income tax regulations. The unfunded
liability under these plans as of December 31, 1997 and 1996 was $5.2 million
and $4.9 million, respectively.
NOTE 11. POSTRETIREMENT BENEFITS
SPPC currently sponsors a defined benefit postretirement plan that
covers administrative employees and those covered under collective bargaining
agreements. The plan provides medical, dental and life insurance benefits for
retirees.
For management, professional and administrative employees the plan is
contributory for individuals retiring after January 1, 1993, with retiree
contributions tied to each retiree's length of service. Additionally, the plan
requires employees retiring after January 1, 1993 to participate in Medicare
Part "B". Life insurance benefits remain noncontributory for retirees.
However, the amount of life insurance provided for retirees is significantly
less than that provided to active employees. Also, dental coverage is
discontinued for all employees at age 65.
Beginning in 1998, plan provisions applicable to employees covered by
the collective bargaining agreement were amended. Retiree contributions were
increased to a minimum of 20% plus an additional amount for each year of service
fewer than 20. Also, the plan introduced a managed care option for future
retirees.
SPPC's funding policy for its postretirement benefit obligation takes
advantage of federal income tax deductions. Contributions are being made to two
voluntary employee's beneficiary associations and an IRC (S)401(h) account.
Plan assets are invested primarily in common stocks, marketable bonds and other
fixed income securities. The remainder is held in cash and cash equivalents.
None of the plan assets are invested in SPR common or SPPC preferred stock.
Postretirement health care costs for key executives continue to be paid from
SPPC's general assets.
59
The following table sets forth a reconciliation of the funded status
of the plan with amounts included in the accompanying consolidated balance
sheets as of December 31, 1997 and 1996 (dollars in thousands):
1997 1996
-------- --------
Accumulated postretirement benefit
obligation:
Retirees $ 32,920 $ 37,941
Fully eligible active participants 6,056 6,227
Other active plan participants 26,507 29,358
-------- --------
Total 65,483 73,526
Less plan assets at fair value (39,326) (32,944)
-------- --------
Accumulated postretirement benefit
obligation in excess of plan assets 26,157 40,582
Unrecognized prior service cost 0 (415)
Unrecognized net gain 20,837 8,562
Unrecognized transition obligation (33,818) (39,419)
-------- --------
Net balance sheet liability $ 13,176 $ 9,310
======== ========
In the preceding table, unrecognized net gain represents the net
change attributed to changes in actuarial assumptions and differences between
actual experience and actuarial assumptions.
Net periodic postretirement benefit expense for 1997, 1996 and 1995
included the following components (dollars in thousands):
1997 1996 1995
---------- ---------- ----------
Service cost
$ 2,440 $ 2,587 $ 2,448
Interest cost 5,597 5,269 4,479
Actual gain on plan assets (4,996) (1,942) (3,891)
Net amortizations and deferrals 2,030 (94) 2,111
Amortization of transition
Obligation over 20 years 2,464 2,464 2,838
Costs associated with 1995 early
Retirement plan - - 8,047
---------- ---------- ----------
Net periodic postretirement
benefit Cost determined
under SFAS No. 106 7,535 8,284 16,032
Amount expensed (deferred) under
SFAS No. 71 - net 805 2,044 (7,086)
---------- ---------- ----------
Net periodic postretirement
expense Recognized $8,340 $10,328 $8,946
========== ========== ==========
Amount charged to
operating expense $5,547 $ 6,903 $6,108
========== ========== ==========
Amount charged to utility
plant and Clearing accounts $2,793 $ 3,425 $2,838
========== ========== ==========
In the table above service cost represents the benefits earned during
the year while interest cost represents the increase in the accumulated benefit
obligation due to the passage of time.
60
The amount deferred under SFAS No. 71 for 1995 represents the present
value of termination benefits and curtailment losses resulting from the early
retirement and severance plans offered during that year. The present value of
these costs was originally recorded at $8.3 million during 1995, but was
revalued to $8.0 million during 1996 because of a revision in the measurement
date. These termination costs were fully deferred, as a regulatory asset, as of
December 31, 1995. Beginning in 1996, SPPC began amortization of the
termination costs by recognizing expense for both 1995 and 1996. SPPC is using
a ten-year amortization period for these costs which is consistent with the
treatment of previous early retirement programs.
The amortization of 1993 deferred costs represents the annual amounts
expensed from charges initially deferred pending the decision of the general
rate case filed in December 1992. These costs were deferred as a result of a
regulatory phase-in plan which did not allow immediate recognition of these
costs when SPPC adopted SFAS No. 106 in January 1993. As a result of the
decision, issued in June 1993, SPPC began to amortize these costs over a thirty-
six month period beginning July 1993.
The following schedule summarizes the amortization of the deferred costs
(dollars in thousands):
1997 1996 1995
---------- ---------- ----------
SFAS No. 106 costs deferred $ - $ - $(8,047)
Amortization of 1995 early
Retirement program 805 1,610 -
Amortization of 1993 deferred costs - 434 961
---- ------ -------
Net amount expensed (deferred) under
SFAS No. 71 $805 $2,044 $(7,086)
==== ====== =======
For measurement purposes, SPPC used a discount rate for obligations as
of December 31, 1997, 1996 and 1995 of 7.25%, 7.50% and 7.00% respectively. The
expected long-term return on assets was 8.50%, 8.50% and 9.00% for the same
periods, respectively. For 1996 and 1995 the company used a graduated medical
trend rate assumption with initial rates of 11.25% and 11.75%, respectively.
This medical trend rate declined by 0.50% over the next ten years to an ultimate
rate of 5.75% in 2007, remaining at that level thereafter. The obligation
valuation as of December 31, 1997 reflects the change to a constant medical
trend rate of 6.00% for each year as well as the adoption of the 1994 Group
Annuity Generational Mortality Table.
The health care cost trend rate has a significant effect on the
amounts reported. For example, an increase in the health care cost trend rates
by one percentage point in each year would increase the accumulated
postretirement benefit obligation as of December 31, 1997 by $11.4 million and
the aggregate of the service and interest cost component of net periodic
postretirement benefit cost for the year then ended by $1.5 million.
NOTE 12. POSTEMPLOYMENT BENEFITS
During 1995, SPPC offered a severance program to non-bargaining-unit
employees which provided both severance pay and medical benefits continuation
totaling $7.0 million and $0.5 million, respectively. These costs were deferred
as a regulatory asset as of December 31, 1995. SPPC began amortization of these
costs during 1996 over a ten-year period consistent
61
with the period used for pension and postretirement benefits. There was no
remaining liability for unpaid severance and benefits at December 31, 1997 or
1996.
NOTE 13. COMMITMENTS AND CONTINGENCIES
SPPC's estimated cash construction expenditures for the year 1998 and
the five-year period 1998-2002 are $151.1 million and $571.1 million,
respectively.
Several of SPPC's purchased power, gas supply and pipeline capacity,
and coal supply contracts contain minimum volume provisions, which SPPC is
either meeting or exceeding. SPPC anticipates continuing to meet or exceed them
in the future. Estimated future commitments under non-cancelable agreements
with initial terms of one year or more at December 31, 1997 were as follows (in
thousands of dollars):
1998 $170,700
1999 148,900
2000 104,900
2001 83,800
2002 82,300
After 2002 to 2009 425,800
SPPC has an operating lease for its corporate headquarters building, a
334,000 square foot, five-floor, multi-purpose building located in southeast
Reno, Nevada. The primary term of the lease is 25 years, ending in 2010. The
current annual rental is $5.4 million, which amount remains constant until the
end of the primary term. The lease has renewal options for an additional 50
years.
The total rental expense under all leases was approximately $7.4
million in 1997, $8.2 million in 1996 and $8.0 million in 1995.
Estimated future minimum lease commitments (including the corporate
headquarters building described above) under non-cancelable operating leases
with initial terms of one year or more at December 31, 1997 were as follows (in
thousands of dollars):
1998 $ 8,000
1999 7,200
2000 6,800
2001 6,300
2002 5,800
After 2002 to 2018 46,000
-------
Total $80,100
=======
SPPC has no material capital lease commitments.
See Notes 1, 5, 7, and 13 of SPPC's consolidated financial statements
for additional commitments and contingencies.
62
NOTE 14. SEGMENT INFORMATION
Information related to the segments of SPPC's business is detailed below
(dollars in thousands):
December 31, 1997 Electric Gas Water Total
- ----------------- ------------ ----------- ----------- -----------
Operating Revenues $ 540,346 $ 70,675 $ 46,519 $ 657,540
========== ======== ======== ==========
Operating Income $ 99,671 $ 10,057 $ 10,444 $ 120,172
========== ======== ======== ==========
Depreciation $ 52,239 $ 4,531 $ 7,347 $ 64,117
========== ======== ======== ==========
Capital Expenditures $ 105,531 $ 12,191 $ 30,079 $ 147,801
========== ======== ======== ==========
Identifiable Assets:
Net Utility Plant $1,228,872 $111,606 $260,337 $1,600,815
Other $ 152,877 $ 15,524 $ 12,945 $ 181,346
Other Utility Assets - - - $ 130,081
---------- -------- -------- ----------
Total Assets $1,381,749 $127,130 $273,282 $1,912,242
========== ======== ======== ==========
December 31, 1996 Electric Gas Water Total
- ----------------- ------------ ----------- ----------- -----------
Operating Revenues $ 507,004 $ 67,376 $ 45,344 $ 619,724
========== ======== ======== ==========
Operating Income $ 86,428 $ 11,035 $ 9,545 $ 107,008
========== ======== ======== ==========
Depreciation $ 47,797 $ 4,223 $ 6,098 $ 58,118
========== ======== ======== ==========
Capital Expenditures $ 158,482 $ 10,798 $ 33,829 $ 203,109
========== ======== ======== ==========
Identifiable Assets:
Net Utility Plant $1,183,727 $104,427 $256,160 $1,544,314
Other $ 140,852 $ 13,270 $ 12,653 $ 166,775
Other Utility Assets - - - $ 131,539
---------- -------- -------- ----------
Total Assets $1,324,579 $117,697 $268,813 $1,842,628
========== ======== ======== ==========
December 31, 1995 Electric Gas Water Total
- ----------------- ------------ ----------- ----------- -----------
Operating Revenues $ 491,419 $ 62,572 $ 43,793 $ 597,784
========== ======== ======== ==========
Operating Income $ 87,825 $ 5,041 $ 8,945 $ 101,811
========== ======== ======== ==========
Depreciation $ 45,361 $ 4,019 $ 5,685 $ 55,065
========== ======== ======== ==========
Capital Expenditures $ 99,537 $ 13,318 $ 31,342 $ 144,197
========== ======== ======== ==========
Identifiable Assets:
Net Utility Plant $1,076,126 $ 98,367 $238,308 $1,412,801
Other $ 146,392 $ 11,505 $ 7,723 $ 165,620
Other Utility Assets - - - $ 151,397
---------- -------- -------- ----------
Total Assets $1,222,518 $109,872 $246,031 $1,729,818
========== ======== ======== ==========
63
NOTE 15. QUARTERLY FINANCIAL DATA (UNAUDITED)
The following represents unaudited quarterly financial data (dollars
in thousands):
Quarter Ended
--------------
March 31, 1997 June 30, 1997 Sept. 30, 1997 Dec. 31, 1997
-------------------------------------------------------------------------
Operating Revenues $171,858 $154,817 $159,783 $171,082
======== ======== ======== ========
Operating Income $ 32,292 $ 26,637 $ 29,194 $ 32,049
======== ======== ======== ========
Income Before Preferred
Dividends $ 24,400 $ 18,380 $ 20,142 $ 20,205
======== ======== ======== ========
Income Applicable to
Common Stock $ 21,992 $ 15,972 $ 18,777 $ 20,927
======== ======== ======== ========
Quarter Ended
--------------
March 31, 1996 June 30, 1996 Sept. 30, 1996 Dec. 31, 1996 (1)
-----------------------------------------------------------------------------
Operating Revenues $162,154 $147,376 $158,682 $151,512
======== ======== ======== ========
Operating Income $ 28,665 $ 23,180 $ 32,089 $ 23,074
======== ======== ======== ========
Income Before Preferred Dividends $ 20,114 $ 15,896 $ 23,482 $ 14,159
======== ======== ======== ========
Income Applicable to
Common Stock $ 18,329 $ 14,391 $ 21,803 $ 12,828
======== ======== ======== ========
(1) Reflects $13 million Nevada electric revenue refund.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES
None.
64
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS
(a) DIRECTORS
The following is a listing of all the current directors of SPPC and
their ages as of December 31, 1997. There are no family relationships among
them. Directors serve one year terms ending at the annual meeting each May, or
until a successor has been elected and qualified.
Edward P. Bliss, 65
Partner, Loomis, Sayles & Company, Inc., an investment counsel firm in
Boston, Massachusetts. He is also a Director of Seaboard Petroleum,
Midland, Texas. Mr. Bliss has served as Director of SPPC since 1992 and of
SPR since 1991.
Krestine M. Corbin, 60
President and Chief Executive Officer of Sierra Machinery,
Incorporated since 1984 and a director of that company since 1980. She
also serves on the Twelfth Federal Reserve Bank District Board. Ms.
Corbin has served as a Director of SPPC since 1992 and of SPR since 1989.
Theodore J. Day, 48
Senior Partner, Hale, Day, Gallagher Company, a real estate brokerage
and investment firm. Mr. Day has served as a Director of SPPC since 1986
and of SPR since 1987.
Harold P. Dayton, Jr., 75
Retired President of Dayton's Furniture, Inc. Mr. Dayton has served
as a Director of SPPC since 1967 and of SPR since 1983.
James R. Donnelley, 62
Vice Chairman of the Board, R.R. Donnelley & Sons Company, since July
1990. He was Group President, Corporate Development from June 1987 to July
1990 and Group President, Financial Printing Services Group from January
1985 to January 1988 for R.R. Donnelley and Sons Company. He has been a
Director of that Company since 1976. He is also a Director of Pacific
Magazines & Printing Limited and Director and Chairman of National Merit
Scholarship Corporation. Mr. Donnelley has served as a Director of SPPC
since 1992 and of SPR since 1987.
65
Richard N. Fulstone, 70
President and General Manager of R.N. Fulstone Company since 1957 and
President and General Manager, F.M. Fulstone, Inc., since 1982. Both
companies engage in farming, cattle ranching and investments. Mr. Fulstone
has served as a Director of SPPC since 1992 and of SPR since 1986.
Walter M. Higgins, 53, former Chairman, President and Chief Executive Officer
Mr. Higgins served as Chairman, President and Chief Executive Officer
of the Company from February 1994 to January 1998. He also served as
Chairman, President and Chief Executive Officer of SPR from January 1994 to
January 1998. Previously, Mr. Higgins was President and Chief Operating
Officer of SPPC from November 1993 to January 1994. Before joining the
Company, Mr. Higgins served as President and Chief Operating Officer of
Louisville Gas and Electric Company from 1991 to November 1993. Mr. Higgins
is also a Director of Aegis Insurance Services, Inc. and Utilix, Inc. Mr.
Higgins resigned in January, 1998.
Malyn K. Malquist, 45, Chairman, President and Chief Executive Officer
Mr. Malquist was elected President and Chief Executive Officer of the
Company and SPR on January 14, 1998, succeeding Mr. Higgins. In February,
1998, Mr. Malquist was elected to the additional position of Chairman for
both the Company and SPR. Prior to his recent appointment, he was Sr. Vice
President - Distribution Services Business Group and Principal Operations
Officer since August of Mr. Malquist served as Senior Vice President and
Chief Financial Officer of the Company and SPR when he joined the Company
in 1994. Prior to joining the Company, he was with San Diego Gas and
Electric, where since 1978 he held various financial positions, including
Treasurer in 1990 and Vice President in 1993.
James L. Murphy, 68
Certified Public Accountant and retired partner of and consultant to
Grant Thornton L.L.P., an international accounting and management
consulting firm. He is the owner, independent trustee and general partner
of several real estate development projects and numerous rental properties.
He is also a retired Colonel of the United States Air Force Reserve. Mr.
Murphy has served as a Director of SPPC since 1990 and of SPR since 1992.
Ronald K. Remington, 55
President, Great Basin College since June 1989. He was previously
Vice President of Instruction at Truckee Meadows Community College. Dr.
Remington received his Ph.D. in psychology from the University of Nevada,
Reno. Dr. Remington has served as a Director of SPPC since December 1991.
66
Dennis E. Wheeler, 55
Chairman, President and Chief Executive Officer of Coeur d'Alene Mines
Corporation since 1986. Mr. Wheeler has served as a Director of SPPC since
1992 and of SPR since 1990.
Robert B. Whittington, 71
Retired newspaper executive; former President, Gannett West Newspaper
Group; Director, Gannett Company, Inc.; and former publisher, Reno Gazette
and Nevada State Journal. Mr. Whittington has served as a Director of both
SPPC and SPR since 1985.
All of the present Directors, with the exception of Dr. Remington, are
Directors of SPR. Messrs. Malquist and Murphy are Directors of Lands of Sierra,
Inc.; Messrs. Dayton and Malquist are Directors of Sierra Gas Holdings Company
and Sierra Energy Company dba ethree; Messrs. Day and Malquist are Directors of
Tuscarora Gas Pipeline Company; Ms. Bennion and Mr. Malquist are Directors of
Sierra Energy Company, dba e-three; and Mr. Malquist is Director of Sierra Water
Development Company, Pinon Pine Corp., and Pinon Pine Investment Co. All of
the above listed companies are affiliates of SPPC.
(b) EXECUTIVE OFFICERS
The following are current executive officers and their ages as of
December 31, 1997. There are no family relationships among them. Officers
serve a term which extends to and expires at the meeting of the Board of
Directors in May of each year or until a successor has been elected and
qualified.
Walter M. Higgins, 53, former President and Chief Executive Officer
See description under Item 10(a), "Directors", page 66.
Malyn K. Malquist, 45, President and Chief Executive Officer
See description under Item 10(a), "Directors" , page 66.
William E. Peterson, 50, Senior Vice President, General Counsel and Corporate
Secretary
Mr. Peterson was elected to his present position in January 1994, and
holds the same position with the Company's parent, SPR. He was previously
Senior Vice President, Corporate Counsel from July 1993 to January 1994.
Prior to joining the Company in 1993, he served as General Counsel and
Resident Agent for SPR since 1992, and as a partner in the Woodburn and
Wedge Law Firm since 1982.
Mark A. Ruelle, 36, Senior Vice President, Chief Financial Officer and Treasurer
Mr. Ruelle was elected to his present position March 1, 1997 and holds
the same position with the Company's parent, SPR. Prior to joining the
Company, Mr. Ruelle was President of Westar Energy, a subsidiary of Western
Resources, Inc. in 1996, and before
67
that served as Vice President, Corporate Development for Western Resources
in 1995. Mr. Ruelle was with Western Resources since 1987 and served in
numerous positions in regulatory affairs, treasury, finance, corporate
development, and strategy planning.
Gerald W. Canning, 49, Vice President, Restructuring Group
Mr. Canning was appointed to his current position in January, 1998.
Prior to this, since November, 1996, he served as Vice President, Power
Production and Fuels. He also served as President of Tuscarora Gas
Pipeline Company, an affiliate of the Company, from 1995 to 1996. Mr.
Canning has been with the Company since 1968, and served in the positions
of Vice President - Electric Production and Fuels Business; Vice President
and General Manager - Wholesale Energy Business; Vice President - Wholesale
Electric Business; Vice President - Electric Operations; and Vice President
- Electric Resources.
Jeffrey C. Ceccarelli, 43, Vice President - Distribution Services
Mr. Ceccarelli was elected to his current position in February, 1998.
Prior to this, he served as Executive Director, Distribution Services.
From January 1996 through January 1998, Mr. Ceccarelli was Director,
Customer Operations. A civil engineer, Mr. Ceccarelli has been with the
Company since 1972 and has held numerous management positions in
operations, customer service, design and engineering.
Randy Harris, 44, Vice President, Energy Marketing Services Business Group
Mr. Harris was elected to his current position in November 1996. His
prior management positions include: General Manager, Transmission Services
Business Group; Director of Wholesale Business; Director of Operations,
Tuscarora Gas Pipeline; and Manager, Electric Operations. Mr. Harris
joined the Company in 1974.
Steven C. Oldham, 47, Vice President - Transmission Business Group and Strategic
Development
Mr. Oldham was elected to his current position in November 1996. His
previous executive positions include Vice President - Strategic
Development; Vice President - Information Resources, Corporate Redesign and
Merger Transaction; Vice President - Regulation and Treasurer; and
Treasurer and Director of Finance. Mr. Oldham has been with the Company
since 1976.
Victor H. Pena, 49, Vice President - Technology, Information Services and
Business Development
Mr. Pena was elected to his present position in August 1996. His
previous executive positions with the Company include: Vice President -
Business Development and Treasurer; and Vice President - Business
Development and Acting Treasurer. Prior to joining the Company, he was
Director of Financial Planning and Budget with Louisville Gas and Electric
Company, from 1991 to May 1994. Mr. Pena is also Vice President, Business
Development, of the Company's parent, SPR.
68
Mary O. Simmons, 42, Controller
Ms. Simmons was elected to her current position in June 1997. Her
previous positions include: Director, Water Policy and Planning; Director,
Budgets and Financial Services; and Assistant Treasurer, Shareholder
Relations for SPR. Ms. Simmons, a certified public accountant, has been
with the Company since 1985.
Mary Jane Willier, 51, Vice President, Human Resources
Ms. Willier was elected to her present position in January 1997. She
was previously Vice President, Human Resources Network Group for Bell
Atlantic Corporation. Ms. Willier was with Bell Atlantic from 1968 - 1996
and in addition to the Vice President's position, served as Director of
Human Resources, Assistant to the President for Consumer Affairs, and
several other managerial positions.
Although all outstanding shares of the Company's common stock are held by
SPR and it is SPR's common stock which is traded on the New York Stock Exchange,
SPPC has four series of non-voting preferred stock still outstanding and
registered under the Securities Exchange Act of 1934 ("the Act"). As a technical
matter, the Company is thus deemed an "issuer" for purposes of the Act whose
officers are required to make filings with respect to beneficial ownership, if
any, of those non-voting preferred securities. The Company's officers, all of
whom are currently reporting pursuant to Section 16(a) of the Act with respect
to SPR's common stock, have now filed reports with respect to the Company's
preferred stock, which reports show no past or current beneficial ownership of
such preferred stock.
69
ITEM 11. EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth information about the compensation of the
Chief Executive Officer, and each of the four most highly compensated officers
for services in all capacities to the Company and its subsidiaries.
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Compensation
Annual Compensation Awards Payouts
---------------------------------------------------------------------------
Securities
Other Under-
Annual Restricted lying
Name and Compen- Stock Options/ LTIP
Principal Salary Bonus Sation Award SARS Payouts
Position Year ($) ($) ($) ($) (#) ($)
(a) (b) (c) (d)(2) (e)(3) (f) (g) (h)(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Walter M. Higgins 1997 $361,497 $ 0 $ 6,020 $0 30,000 $ 0
Chairman, President and Chief 1996 $334,231 $219,869 $ 0 $0 9,594 $181,193
Executive Officer 1995 $314,423 $184,064 $ 1,123 $0 11,960 $ 0
Malyn K. Malquist, 1997 $212,803 $ 92,198 $ 2,052 $0 14,000 $101,192
Senior Vice President, 1996 $194,077 $ 95,335 $ 0 $0 3,504 $ 51,770
Distribution Services 1995 $185,769 $ 77,903 $ 297 $0 4,231 $ 0
Business Group; Principal
Operations Officer
Sierra Pacific Power Company
William E. Peterson, 1997 $207,757 $ 78,184 $17,412 $0 10,000 $101,192
Senior Vice President, 1996 $191,923 $ 85,445 $ 3,417 $0 3,504 $ 70,508
General Counsel and 1995 $190,000 $ 77,903 $ 6,157 $0 4,231 $ 0
Corporate Secretary
Mark A. Ruelle (1) 1997 $143,308 $ 65,269 $ 3,808 $0 8,384 $ 0
Senior Vice President, 1996 0 0 0 $0 0 $ 0
Chief Financial Officer, 1995 0 0 0 $0 0 $ 0
Treasurer
Gerald W. Canning 1997 $150,364 $ 45,916 $ 6,035 $0 6,000 $ 61,505
Vice President, Power 1996 $147,692 $ 46,232 $ 1,423 $0 2,066 $ 38,602
Products and Fuels Business 1995 $139,769 $ 46,510 $ 5,600 $0 2,570 $ 0
Sierra Pacific Power Company
- --------------------------------------------------------------------------------------------------------------------------------
Name and All Other
Principal Compensation
Position ($)
(a) (i)(5)
- ------------------------------------------------
Walter M. Higgins $47,175
Chairman, President and Chief $35,054
Executive Officer $21,600
Malyn K. Malquist, $15,279
Senior Vice President, Distribution $ 9,380
Services Business Group; Principal $13,219
Operations Officer
Sierra Pacific Power Company
William E. Peterson, $29,488
Senior Vice President, $20,982
General Counsel and $14,876
Corporate Secretary
Mark A. Ruelle (1) $77,329
Senior Vice President, $ 0
Chief Financial Officer, Treasurer $ 0
Gerald W. Canning $16,200
Vice President, Power Products $14,350
and Fuels Business $ 9,252
Sierra Pacific Power Company
- ------------------------------------------------
Notes:
(1) Mr. Ruelle joined Sierra Pacific Power Company as Senior Vice President,
Chief Financial Officer and Treasurer in March 1997.
(2) Amounts represent incentive pay received pursuant to SPR's "pay for
performance" team incentive plan approved by stockholders in May, 1994.
(3) No perquisites in the aggregate exceeded the lesser of $50,000 or 10% of
salary and bonus for any named executive. Accordingly, no amount
perquisites have been reported.
(4) Long term incentive payout relates to performance share payout for the
three-year period January 1, 1995 through December 31, 1997.
(5) Amounts for All Other Compensation include the following for 1997:
. Company contributions under the 401(k) Deferred Compensation Plan for
all administrative employees and the executive officers and directors,
pursuant to which the
70
Company matches 50% of each executive Officer's deferral up to 6% of
salary. In 1997, the Company matching amount was $4,750 for Mr.
Higgins, $4,750 for Mr. Malquist, $4,750 for Mr. Peterson, $1,471 for
Mr. Ruelle, and $4,750 for Mr. Canning.
. Company contributions to its Non-Qualified Deferred Compensation Plan
for Messrs. Higgins, Malquist, Peterson, Ruelle and Canning were
$34,108, $8,595, $21,375, and $8,322. The additional income on
earnings contributed by Messrs. Higgins, Malquist, Peterson and
Canning which was in excess of 120% of the federal rate were $763,
$644, $1,426, and $1,996.
. Imputed income on group term life insurance premiums paid by the
company for Messrs. Higgins, Malquist, Peterson, Ruelle and Canning
was $1,152, $560, $824, $140 and $352.
. Insurance premiums paid for Executive Term Life Policies for Messrs.
Higgins, Malquist, Peterson, Ruelle and Canning were $6,402 and $730;
$1,113, $290 and $780.
. Mr. Ruelle received a payment of $60,000 from the Company as an
inducement to accept employment. In addition, the Company paid
$15,428 in moving expenses for Mr. Ruelle.
OPTIONS/SAR GRANTS IN LAST FISCAL YEAR
The following table shows all grants of options to the named executive
officers of SPPC in 1997. Pursuant to Securities and Exchange Commission (the
"SEC") rules, the table also shows the present value of the grant at the date of
grant. The exercise price of all options is the market value of the stock as
listed on the New York Stock Exchange at the time the options are granted.
- ------------------------------------------------------------------------------------------------
Individual Grants (1)
- ------------------------------------------------------------------------------------------------
Percent of Total
Number of Options/SARS
Securities Granted to Exercise Grant
underlying Employees of Base Date
Options/SARS in Fiscal Price Expiration Present
Name Granted Year ($/Sh) Date Value
(a) (b) (c) (d) (e) (f) (2)
- ------------------------------------------------------------------------------------------------
Walter M. Higgins 30,000 27.2% $28.75 1/1/07 $107,445
William E. Peterson 10,000 9.1% $28.75 1/1/07 $ 35,815
Malyn K. Malquist 14,000 12.7% $28.75 1/1/07 $ 50,141
Gerald W. Canning 6,000 5.4% $28.75 1/1/07 $ 21,489
Mark Ruelle 8,384 7.6% $28.75 1/1/07 $ 30,027
- --------------------------------------------------------------------------------------------------
(1) Under the Executive Long-Term Incentive Plan, the grants of non-qualifying
stock options were made on January 1, 1997. One third of these grants vest
annually commencing one year after the date of the grant.
(2) The hypothetical grant date present values are calculated under a modified
Black-Scholes Model. The Black-Scholes Model is a mathematical formula
used to value options traded on stock exchanges. The assumptions used in
determining the option grant date present value listed above include the
stock's expected volatility (11.6%), risk free rate of return (6.25%),
projected dividend yield (5.5%), per annum for unvested options, the stock
option term (10 years), and an adjustment for non-transferability or risk
of forfeiture during the vesting period (5 years at 3%).
71
AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR
AND FY-END OPTION/SAR VALUES
The following table provides information as to the value of the
options held by the named executive officers at year-end measured in terms of
the closing price of Sierra Pacific Resources Common Stock on December 29, 1997.
- ---------------------------------------------------------------------------------------------------------
Number of Securities
Underlying Unexercised Value of Unexercised
Options/SARS at Fiscal in-the-Money Options/SARS
Shares Year-End at Fiscal Year-End
Acquired on Value Exercisable/ Exercisable/
Name Exercise Realized Unexercisable Unexercisable
(a) (b) (c) (d) (e)
- ---------------------------------------------------------------------------------------------------------
Walter M. Higgins 12,979 $223,501 0 / 49,036 $ 0 / $737,854
William E. Peterson 0 $ 0 4,648 / 16,845 $79,963 / $253,998
Malyn K. Malquist 0 $ 0 4,050 / 20,446 $69,794 / $303,719
Gerald W. Canning 0 $ 0 2,676 / 10,018 $46,113 / $151,010
Mark Ruelle 0 $ 0 0 / 8,384 $ 0 / $118,424
- ----------------------------------------------------------------------------------------------------
(e) Pre-tax gain. Value of in-the-money options based on December 29, 1997
closing trading price of $37.58 less the option exercise price.
LONG-TERM INCENTIVE PLANS - AWARDS
IN LAST FISCAL YEAR
The Executive Long-Term Incentive Plan (the "LTIP") provides for the
granting of stock options (both "nonqualified" and "qualified"), stock
appreciation rights ("SAR's"), restricted stock performance units, performance
shares and bonus stock to participating employees as an incentive for
outstanding performance. Incentive compensation is based on the achievement of
pre-established financial goals for SPPC. Goals are established for total
shareholder return ("TSR") compared against the Dow Jones Utility Index and
annual growth in earnings per share ("EPS").
72
The following table provides information as to the performance shares
granted to the named executive officers of Sierra Pacific Power Company in
1997. Nonqualifying stock options granted to the named executives as part of
the LTIP are shown in the table "Option/SAR Grants in Last Fiscal Year."
Estimated Future Payouts Under Non-Stock
Price-Based Plans
------------------------------------------------
Performance
Number of or Other
Shares, Units Period Until
or Other Maturation or Threshold $ Target $ Maximum $
Name Rights Payout (d) (1) (e) (2) (f) (3)
(a) (b) (c)
- -------------------------------------------------------------------------------------------------------------
Walter M. Higgins 4,500 3 years $64,688 $129,375 $226,406
William E. Peterson 1,500 3 years $21,563 $ 43,125 $ 75,469
Malyn K. Malquist 2,000 3 years $28,750 $ 57,500 $100,625
Gerald W. Canning 800 3 years $11,500 $ 23,000 $ 40,250
Mark Ruelle 1,258 3 years $18,084 $ 36,168 $ 63,294
- -------------------------------------------------------------------------------------------------------------
(1) The threshold represents the level of TSR and EPS achieved during the cycle
which represents minimum acceptable performance and which, if attained,
results in payment of 50% of the target award. Performance below the minimum
acceptable level results in no award earned.
(2) The target represents the level of TSR and EPS achieved during the cycle
which indicates outstanding performance and which, if attained, results in
payment of 100% of the target award.
(3) The maximum represents the maximum payout possible under the plan and a
level of TSR and EPS indicative of exceptional performance which, if
attained, results in a payment of 175% of the target award.
All levels of awards are made with reference to the price of each
performance share at the time of grant.
73
PENSION PLANS
The following table shows annual benefits payable on retirement at
normal retirement age 65 to elected officers under the Company's defined benefit
plans based on various levels of remuneration and years of service which may
exist at the time of retirement.
Annual Benefits for Years of Service Indicated
Highest Average Five- ----------------------------------------------------------------
Years Remuneration 15 Years 20 Years 25 Years 30 Years 35 Years
- --------------------- ----------------------------------------------------------------
$ 60,000 $ 27,000 $ 31,500 $ 36,000 $ 36,000 $ 36,000
$120,000 $ 54,000 $ 63,000 $ 72,000 $ 72,000 $ 72,000
$180,000 $ 81,000 $ 94,500 $108,000 $108,000 $108,000
$240,000 $108,000 $126,000 $144,000 $144,000 $144,000
$300,000 $135,000 $157,500 $180,000 $180,000 $180,000
$360,000 $162,000 $189,000 $216,000 $216,000 $216,000
$420,000 $189,000 $220,500 $252,000 $252,000 $252,000
$480,000 $216,000 $252,000 $288,000 $288,000 $288,000
$540,000 $243,000 $283,500 $324,000 $324,000 $324,000
$600,000 $270,000 $315,000 $360,000 $360,000 $360,000
$660,000 $297,000 $346,500 $396,000 $396,000 $396,000
$720,000 $324,000 $378,000 $432,000 $432,000 $432,000
The Company's noncontributory Retirement Plan provides retirement
benefits to eligible employees upon retirement at a specified age. Annual
benefits payable are determined by a formula based on years of service and final
average earnings consisting of base salary and incentive compensation.
Remuneration for the named executives is the amount shown under "Salary" and
"Incentive Pay" in the Summary Compensation Table. Pension costs of the
Retirement Plan to which the Company contributes 100% of the funding are not and
cannot be readily allocated to individual employees and are not subject to
Social Security or other offsets.
The Company has entered into an arrangement with Mr. Peterson
crediting him with four years of service for prior years of service with his
previous employer, most of which was dedicated to performing legal services for
SPR and SPPC, and an additional one-half year credit for each year of service
with the Company for the first ten years of his employment. Years of credited
service for Messrs. Higgins, Malquist, Peterson, Ruelle, and Canning are 4.1,
3.7, 4.6, .7, and 28.1, respectively.
A Supplemental Executive Retirement Plan ("SERP") and an Excess Plan
are also offered to the named executive officers. The SERP is intended to
ensure the payment of a competitive level of retirement income to attract,
retain and motivate selected executives. The Excess Plan is intended to provide
benefits to executive officers whose pension benefits under the Company's
Retirement Plan are limited by law to certain maximum amounts.
SEVERANCE ARRANGEMENTS
Severance allowance plans exist for all employees of the Company which
provide for severance pay, payable in a lump sum or by purchase of an annuity,
if within three years after a change in control of the Company, there is a
termination of employment by the Company related to such change in control, or a
termination of employment by the employee for good reason, in
74
each case as described in the plans. In these circumstances, employees,
including the currently employed officers named in the compensation table above,
are entitled to a severance allowance not to exceed an amount equal to 24 months
of the employee's base salary and any bonus and the continuation for up to 24
months of participation in the Company's group medical and life insurance plans.
Change in control is defined in the plan as, among other things, a dissolution
or liquidation, a reorganization, merger or consolidation in which the Company
is not the surviving corporation, the sale of all or substantially all the
assets of the Company (not the sale of a work unit) or the acquisition by any
person or entity of 20% or more of the voting power of the Company.
In addition, several merger-related and merger-conditioned severance
arrangements have been into between the Company and several executives, which
are described in the section titled Certain Relationships and Related
Transactions.
75
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Voting Stock
SPR owns 100 percent of the voting stock of SPPC.
The table below sets forth the shares of Sierra Pacific Resources
Common Stock beneficially owned by each director, nominee for director, the
Chief Executive Officer, and the four other most highly compensated executive
officers. No director, nominee for director or executive officer owns, nor do
the directors and executive officers as a group own, in excess of one percent of
the outstanding Common Stock of SPR. Unless otherwise indicated, all persons
named in the table have sole voting and investment power with respect to the
shares shown.
COMMON SHARES
BENEFICIALLY PERCENT OF TOTAL COMMON
OWNED AS OF SHARES OUTSTANDING AS OF
NAME OF DIRECTOR OR NOMINEE FEBRUARY 28, 1998 FEBRUARY 28, 1998
- ------------------------------ ------------------- --------------------------
Edward P. Bliss 13,090
Krestine M. Corbin 9,406
Theodore J. Day 19,467
Harold P. Dayton, Jr. 11,701
James R. Donnelley 17,373 No director or nominee
Richard N. Fulstone 13,920 for director owns in excess
Walter M. Higgins 100 of one percent.
James L. Murphy 9,445
Ronald K. Remington 7,367
Dennis E. Wheeler 8,379
Robert B. Whittington 12,202
-------------------
122,450
===================
COMMON SHARES
BENEFICIALLY PERCENT OF TOTAL COMMON
OWNED AS OF SHARES OUTSTANDING AS OF
EXECUTIVE OFFICERS FEBRUARY 28, 1998 FEBRUARY 28, 1998
- ------------------------------ ------------------- --------------------------
Walter M. Higgins 100
Malyn K. Malquist 14,888
William E. Peterson 13,129 No executive officer owns
Mark A. Ruelle 3,165 in excess of one percent.
Gerald W. Canning 7,881
-------------------
39,163
===================
All directors and executive
officers as a group (a)(b)(c) 186,017
===================
(a) Includes shares acquired through participation in the Employee Stock
Purchase Plan and/or the 401 (k) plan.
(b) The number of shares beneficially owned includes shares which the Executive
Officers currently have the right to acquire pursuant to stock options
granted and performance shares earned under the Executive Long-Term
Incentive Plan. Share beneficially owned pursuant to stock options granted
to Messrs. Higgins, Malquist, Peterson, Ruelle, and
76
Canning and all directors and executive officers as a group are -0-, 10,817,
10,287, 2,795, 6,017, and 42,441 shares, respectively. Shares beneficially
owned as a result of performance shares earned by Messrs. Higgins, Malquist,
Peterson, Ruelle, Canning, and all directors and officers as a group are 0;
1,350; 1,234; 0; 1,025 and 5,111, respectively.
(c) Included in the shares beneficially owned by the Directors are 68,603 shares
of "phantom stock" representing the actuarial value of the Director's vested
benefits in the terminated Retirement Plan for Outside Directors. The
"phantom stock" is held in an account to be paid at the time of the
Director's departure from the Board.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
SPR has entered to an agreement with Hale Day Gallagher Co., a real
estate brokerage and investment company, to act as broker for the sale of a
property owned by Lands of Sierra, Inc., a subsidiary of SPR. The eventual sale
of the property will result in Hale Day Gallagher Co. receiving a standard
brokerage commission not to exceed 5% of the selling price. Mr. T.J. Day, a
senior partner of Hale Day Gallagher Co. and a Director of the Company, has no
relationship with, or interest in, the transaction, will receive no part of the
commission, and will receive no direct or indirect benefit from the transaction.
Mr. Peterson, formerly a partner with the law firm of Woodburn and
Wedge, became Senior Vice President and General Counsel for Sierra Pacific
Resources in 1993. Woodburn and Wedge, which has performed legal services for
Sierra Pacific Power Company since 1920 and for Sierra Pacific Resources and all
of its subsidiaries from their inception, continues to perform legal work for
the Company. Mr. Peterson's spouse, an equity partner in the firm since 1982,
has performed work for the Company since 1976 and continues to do so from time
to time.
Susan Oldham, a former employee of SPPC specializing in water
resources law, planning and policy accepted the Company's voluntary severance
offering in December 1995. Ms. Oldham is the spouse of Steven C. Oldham, Vice
President Transmission Business Group and Strategic Development for Sierra
Pacific Power Company. Ms. Oldham, a licensed attorney in Nevada and
California, has continued to perform specialized legal services in the water
resources area for the Company on a contract basis.
In April 1994, Mr. Malquist, who was elected President and Chief
Executive Officer on January 13, 1998, received a $92,000 interest-free loan
related to his employment arrangement with the Company. The loan is payable in
four equal annual installments. Any installment due on any anniversary date on
which Mr. Malquist is employed by the Company will be discharged by the Company
in consideration for services rendered during the previous year.
CHANGE IN CONTROL AGREEMENT
SPR has entered into severance agreements with all of the executive
officers identified in Item 11, including the individuals named in the Summary
Compensation Table, and two other senior executives of the Company who are not
officers. These agreements provide that, upon termination of the executive's
employment within twenty-four months following a change in control of SPR (as
defined in the agreements) either (a) by SPR for reasons other than cause (as
defined in the agreements), death or disability, or (b) by the executive for
good reason (as
77
defined by the agreement, including a diminution of responsibilities,
compensation, or benefits (unless, with respect to reduction in salary or
benefits, such reduction is applicable to all senior executives of the Company
and the acquirer)), the executive will receive certain payments and benefits.
These severance payments and benefits include (I) a lump sum payment equal to
three times the sum of the executive's base salary and target bonus, (ii) a lump
sum payment equal to the present value of the benefits the executive would have
received had be continued to participate in the Company's retirement plans for
an additional 3 years (or, in the case of the Company's Supplemental Executive
Retirement Plan only, the greater of three years or the period from the date of
termination until the executive's early retirement date, as defined in such
plan), and (iii) continuation of life, disability, accident and health insurance
benefits for a period of thirty-six (36) months immediately following
termination of employment. The agreements also provide that if any compensation
paid, or benefit provided, to the executive, whether or not pursuant to the
severance agreements, would be subject to the federal excise tax on "excess
parachute payments," payments and benefits provided pursuant to the agreement
will be cut back to the largest amount that would not be subject to such excise
tax, if such cutback results in a higher after-tax payment to the executive.
78
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULES AND EXHIBITS
Page
----
1. Financial Statements:
Reports of Independent Accountants............................................. 39,40
Consolidated Balance Sheets as of
December 31, 1997 and 1996................................................... 41
Consolidated Statements of Income for the Years
Ended December 31, 1997, 1996 and 1995....................................... 42
Consolidated Statements of Common Shareholder's Equity
for the Years Ended December 31, 1997, 1996 and 1995......................... 43
Consolidated Statements of Cash Flows for the
Years Ended December 31, 1997, 1996 and 1995................................. 44
Consolidated Statements of Capitalization as of
December 31, 1997 and 1996................................................... 45
Notes to Consolidated Financial Statements..................................... 46-64
All other schedules have been omitted because they are not
required or are not applicable, or the required information is shown in the
financial statements or notes thereto. Columns omitted from schedules have
been omitted because the information is not applicable.
3. Exhibits:
Exhibits are listed in the Exhibit Index on pages 82-92.
79
SIGNATURES
----------
Pursuant to the requirements of Section 13 and 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.
SIERRA PACIFIC POWER COMPANY
By: /s/ Malyn K. Malquist
------------------------
Malyn K. Malquist
President and Chief Executive Officer
March 23, 1998
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on the 23th day of March, 1998.
/s/ Mark A. Ruelle /s/ Mary O. Simmons
- ------------------------------ -------------------------------
Mark A. Ruelle Mary O. Simmons
Senior Vice President, Controller
Chief Financial Officer and Treasurer (Principal Accounting Officer)
(Principal Financial Officer)
/s/ Edward P. Bliss /s/ James L. Murphy
- ------------------------------- -------------------------------
Edward P. Bliss James L. Murphy
Director Director
/s/ Krestine M. Corbin /s/ Ronald K. Remington
- -------------------------------- -------------------------------
Krestine M. Corbin Ronald K. Remington
Director Director
/s/ Theodore J. Day /s/ Dennis E. Wheeler
- -------------------------------- -------------------------------
Theodore J. Day Dennis E. Wheeler
Director Director
/s/ Harold P. Dayton, Jr. /s/ Robert B. Whittington
- -------------------------------- -------------------------------
Harold P. Dayton, Jr. Robert B. Whittington
Director Director
80
/s/ James R. Donnelley /s/ Malyn K. Malquist
- -------------------------------- -------------------------------
James R. Donnelley Malyn K. Malquist
Director Director
/s/ Richard N. Fulstone
- --------------------------------
Richard N. Fulstone
Director
81
SIERRA PACIFIC POWER COMPANY
1997 FORM 10-K EXHIBIT INDEX
Exhibits filed with this Form 10-K are denoted with an asterisk (*).
The other listed exhibits have been previously filed with the Securities and
Exchange Commission and are incorporated herein by reference.
(3)
. Restated Articles of Incorporation of the Company dated May 19, 1987
(originally filed as Exhibit (3)(A) to the 1987 Form 10-K - refiled as
Exhibit (3)(A) to the 1993 Form 10-K)
. Certificate of Amendments dated August 26, 1992 to Restated Articles
of Incorporation of the Company dated May 19, 1987, in connection with
the Company's preferred stock (Exhibit 3.1 to Form 8-K dated August
26, 1992)
. Certificate of Designation, Preferences and Rights dated August 31,
1992 to Restated Articles of Incorporation of the Company dated May
19, 1987, in connection with the Company's Series C Preferred Stock
(Exhibit 4.1 to Form 8-K dated August 26, 1992)
. Certificate of Designation, Preferences and Rights dated August 31,
1992 to Restated Articles of Incorporation of the Company dated May
19, 1987, in connection with the Company's Series G Preferred Stock
(Exhibit 4.2 to Form 8-K dated August 26, 1992)
. Certificate of Designation, Preferences and Rights dated August 31,
1992 to Restated Articles of Incorporation of the Company dated May
19, 1987, in connection with the Company's Class A Series 1 Preferred
Stock (Exhibit 4.3 to Form 8-K dated August 26, 1992)
. By-laws of the Company, as amended through June 30, 1988 (Exhibit
(3)(A) to the 1989 Form 10-K)
. Articles of Incorporation of Pinon Pine Corp., dated December 11, 1995
(Exhibit (3)(A) to the 1995 Form 10-K)
. Articles of Incorporation of Pinon Pine Investment Co., dated December
11, 1995 (Exhibit (3)(B) to the 1995 Form 10-K)
82
(3) - CONTINUED
. Agreement of Limited Liability Company of Pinon Pine Company, L.L.C.,
dated December 15, 1995, between Pinon Pine Corp., Pinon Pine
Investment Co. and GPSF-B INC 1995 (Exhibit (3)(C) to the 1995 Form
10-K)
. By-laws of the Company, in its entirety, as amended through November
13, 1996 (Exhibit (3)(A) to the 1996 Form 10-K)
(4)
. Mortgage Indentures of the Company defining the rights of the holders
of the Company's First Mortgage Bonds: Original Indenture (Exhibit 7-A
to Registration No. 2-7475); Ninth Supplemental Indenture (Exhibit 2-M
to Registration No. 2-59509); Tenth Supplemental Indenture (Exhibit 4-
K to Registration No. 2-23932); Eleventh Supplemental Indenture
(Exhibit 4-L to Registration No. 2-26552); Twelfth Supplemental
Indenture (Exhibit 4-Lto Registration No. 2-36982); Sixteenth
Supplemental Indenture (Exhibit 2-Y to Registration No. 2-53404);
Nineteenth Supplemental Indenture (originally filed as Exhibit (2)(B)
to the 1978 Form 10-K -refiled as Exhibit (4)(A) to the 1991 Form 10-
K; Twentieth Supplemental Indenture (originally filed as Exhibit
(2)(C) to the 1978 Form 10-K - refiled as Exhibit (4)(B) to the 1991
Form 10-K); Twenty-Seventh Supplemental Indenture (Exhibit (4)(A) to
the 1989 Form 10-K); Twenty-Eighth Supplemental Indenture (Exhibit
(4)(A) to the 1992 Form 10-K); Twenty-Ninth Supplemental Indenture
(Exhibit D to Form 8-K dated July 15, 1992 in connection with the
Company's medium-term note program); Thirtieth Supplemental Indenture
(Exhibit (4)(B) to the 1992 Form 10-K); Thirty-First Supplemental
Indenture (Exhibit (4)(C) to the 1992 Form 10-K); Thirty-Second
Supplemental Indenture (Exhibit 4.6 to Registration No. 33-69550);
Thirty-Third Supplemental Indenture (Exhibit C to Form 8-K dated
October 20, 1993 in connection with the Company's medium-term note
program)
. Collateral Trust Indenture dated June 1, 1992 between the Company and
Bankers Trust Company, as Trustee, relating to the Company's medium-
term Note program (Exhibit B to Form 8-K dated July 15, 1992 in
connection with the Company's medium-term note program)
. First Supplemental Indenture dated June 1, 1992 to Collateral Trust
Indenture dated June 1, 1992 between the Company and Bankers Trust
Company, as Trustee, relating to the Company's medium-term note
program (Exhibit C to Form 8-K dated July 15, 1992 in connection with
the Company's medium-term note program)
83
(4) - CONTINUED
. Second Supplemental Indenture dated October 1, 1993 to Collateral
Trust Indenture dated June 1, 1992 between the Company and Bankers
Trust Company, as Trustee, relating to the Company's medium-term note
program (Exhibit B to Form 8-K dated October 20, 1993 in connection
with the Company's medium-term note program)
. Form of Medium-Term Global Floating Rate Note, Series A (Exhibit E to
Form 8-K dated July 15, 1992 in connection with the Company's medium-
term note program)
. Form of Medium-Term Global Floating Rate Note, Series B (Exhibit D to
Form 8-K dated October 20, 1993 in connection with the Company's
medium-term note program)
. Distribution Agreement to final forms of exhibits to the Company's
Registration Statement (No. 333-1374) in connection with its offering
of $80 million of Collateralized Debt Securities (the Debt Securities)
subsequently referred to as Series C Medium Term Notes and
Collateralized Debt Securities. (Exhibit A on Form 8-K dated March 11,
1996).
. Third Supplemental Indenture dated as of February 1, 1996 to
Collateral Trust Indenture dated as of June 1, 1992 between the
Company and Bankers Trust Company, as Trustee, relating to the
Company's Medium Term Note Program. (Exhibit B to Form 8-K dated March
11, 1996).
. Thirty-fourth Supplemental Indenture dated as of February 1, 1996 to
Indenture of Mortgage dated as of December 1, 1940 defining the rights
of the Company's First Mortgage Bonds. (Exhibit C to Form 8-K dated
March 11, 1996).
. Form of Medium-Term Global Fixed Rate Note, Series C. (Exhibit D to
Form 8-K dated March 11, 1996).
. Amended and Restated Declaration of Trust of Sierra Pacific Power
Capital I (the Trust) dated July 24, 1996 in connection with the
offering of the Preferred Securities of the Trust. (Exhibit 4.1 Form
8-K dated August 2, 1996)
. Indenture between the Company and IBJ Schroder Bank and Trust Company
as Trustee dated July 1, 1996 in connection with the offering of the
Preferred Securities of the Trust. (Exhibit 4.2 Form 8-K dated August
2, 1996)
84
(4) - CONTINUED
. First Supplemental Indenture to the Indenture used in connection with
the issuance of Junior Subordinated Debentures dated July 24, 1996 in
connection with the offering of the Preferred Securities of the Trust.
(Exhibit 4.3 Form 8-K dated August 2, 1996).
. Guarantee with respect to Preferred Securities dated July 29, 1996 in
connection with the offering of the Preferred Securities of the Trust.
(Exhibit 4.4 Form 8-K dated August 2, 1996).
. Guarantee with respect to Common Securities dated July 29, 1996 in
connection with the offering of the Preferred Securities of the Trust.
(Exhibit 4.5 Form 8-K dated August 2, 1996).
(10)
. Coal Sales Agreement dated May 16, 1978 between the Company and
Coastal States Energy Company (confidential portions omitted and filed
separately with the Securities and Exchange Commission) (Exhibit 5-GG
to Registration No. 2-62476)
. Amendment No. 1 dated November 8, 1983 to Coal Sales Agreement dated
May 16, 1978 between the Company and Coastal States Energy Company
(originally filed as Exhibit (10)(B) to the 1983 Form 10-K -refiled as
Exhibit (10)(B) to the 1991 Form 10-K)
. Amendment No. 2 dated February 25, 1987 to Coal Sales Agreement dated
May 16, 1978 between the Company and Coastal States Energy Company
(originally filed as Exhibit (10)(G) to the 1986 Form 10-K as amended
by Form 8 filed May 19, 1987 - refiled as Exhibit (10)(A) to the 1993
Form 10-K)
85
(10) - CONTINUED
. Amendment No. 3 dated May 8, 1992 to Coal Sales Agreement dated May
16, 1978 between the Company and Coastal States Energy Company
(Exhibit (10)(B) to the 1992 Form 10-K; confidential portions omitted
and filed separately with the Securities and Exchange Commission)
. Coal Purchase Contract dated June 19, 1986 between the Company, Black
Butte Coal Company and Idaho Power Company (originally filed as
Exhibit (10)(B) to the 1986 Form 10-K - refiled as Exhibit (10)(C) to
the 1992 Form 10-K)
. Settlement Agreement and Mutual Release dated May 8, 1992 between the
Company and Coastal States Energy Company (Exhibit (10)(D) to the 1992
Form 10-K; confidential portions omitted and filed separately with the
Securities and Exchange Commission)
. Interconnection Agreement dated May 29, 1981 between the Company and
Idaho Power Company (originally filed as Exhibit (10)(A) to the 1981
Form 10-K - refiled as Exhibit (10)(C) to the 1991 Form 10-K)
. Amendatory Agreement dated February 14, 1992 to Interconnection
Agreement dated May 29, 1981 between the Company and Idaho Power
Company (Exhibit (10)(D) to the 1991 Form 10-K)
. Agreement dated February 23, 1989 between the Company and Idaho Power
Company for the supply of power and energy (Exhibit (10)(A) to the
1988 Form 10-K)
86
(10) - CONTINUED
. Cooperative Agreement dated July 31, 1992 between the Company and the
United States Department of Energy in connection with the Pinon Pine
Integrated Coal Gasification Combined Cycle Project (Exhibit (10)(H)
to the 1992 Form 10-K)
. Revised Intercompany Pool Agreement dated July 19, 1982 pertaining to
the Company's membership (originally filed as Exhibit (10)(C) to the
1982 Form 10-K - refiled as Exhibit (10)(E) to the 1991 Form 10-K)
. Agreement dated November 7, 1986 between the Company and Western
Systems Power Pool (Exhibit (10)(C) to the 1988 Form 10-K)
. Memorandum dated October 1, 1988 to Agreement dated November 7, 1986
between the Company and Western Systems Power Pool (Exhibit (10)(D) to
the 1988 Form 10-K)
. General Transfer Agreement dated February 25, 1988 between the Company
and the United States of America Department of Energy acting by and
through the Bonneville Power Administration (Exhibit (10)(E) to the
1988 Form 10-K)
. Rail Transportation Contract dated June 30, 1986 between the Company
and Idaho Power Company as shippers and Union Pacific and Western
Pacific Railroad Companies as carriers (originally confidentially
filed as Exhibit (10)(H) to the 1986 Form 10-K as amended by Form 8
filed May 19, 1987 - refiled as Exhibit (10)(C) to the 1993 Form 10-K)
. Addendum dated October 9, 1993 to Rail Transportation Contract dated
June 30, 1986 between the Company and Idaho Power Company as shippers
and Union Pacific Railroad Companies as carriers (Exhibit (10)(D) to
the 1993 Form 10-K)
. Financing Agreement dated March 1, 1987 between the Company and
Humboldt County, Nevada relating to the Humboldt County, Nevada
Variable Rate Demand Pollution Control Refunding Revenue Bonds (Sierra
Pacific Power Company Project) Series 1987 (originally filed as
Exhibit (10)(C) to the 1987 Form 10-K - refiled as Exhibit (10)(E) to
the 1993 Form 10-K)
87
(10) - CONTINUED
. Financing Agreement dated March 1, 1987 between the Company and Washoe
County, Nevada relating to the Washoe County, Nevada Variable Rate
Demand Gas and Water Facilities Refunding Revenue Bonds (Sierra
Pacific Power Company Project) Series 1987 (originally filed as
Exhibit (10)(E) to the 1987 Form 10-K - refiled as Exhibit (10)(F) to
the 1993 Form 10-K)
. Financing Agreement dated June 1, 1987 between the Company and Washoe
County, Nevada relating to the Washoe County, Nevada Variable Rate
Demand Water Facilities Revenue Bonds (Sierra Pacific Power Company
Project) Series 1987 (originally filed as Exhibit (10)(G) to the 1987
Form 10-K - refiled as Exhibit (10)(G) to the 1993 Form 10-K)
. Financing Agreement dated December 1, 1987 between the Company and
Washoe County, Nevada relating to the Washoe County, Nevada Variable
Rate Demand Gas Facilities Revenue Bonds (Sierra Pacific Power Company
Project) Series 1987 (originally filed as Exhibit (10)(I) to the 1987
Form 10-K - refiled as Exhibit (10)(H) to the 1993 Form 10-K)
. Financing Agreement dated September 1, 1990 between the Company and
Washoe County, Nevada relating to the Washoe County, Nevada Gas
Facilities Revenue Bonds (Sierra Pacific Power Company Project) Series
1990 (Exhibit (10)(C) to the 1990 Form 10-K)
. Financing Agreement dated December 1, 1990 between the Company and
Washoe County, Nevada relating to the Washoe County, Nevada Water
Facilities Revenue Bonds (Sierra Pacific Power Company Project) Series
1990 (Exhibit (10)(E) to the 1990 Form 10-K)
. First Amendment dated August 12, 1991 to Financing Agreement dated
December 1, 1990 between the Company and Washoe County, Nevada
relating to the Washoe County, Nevada Water Facilities Revenue Bonds
(Sierra Pacific Power Company Project) Series 1990 (Exhibit (10)(J) to
the 1991 Form 10-K)
. Letter of Credit, Reimbursement and Security Agreement dated December
12, 1990 between the Company and Union Bank of Switzerland relating to
the Washoe County, Nevada Water Facilities Revenue Bonds (Sierra
Pacific Power Company Project) Series 1990 (Exhibit (10)(F) to the
1990 Form 10-K)
. Financing Agreement dated June 1, 1993 between the Company and Washoe
County, Nevada relating to the Washoe County, Nevada Water Facilities
Refunding Revenue Bonds (Sierra Pacific Power Company Project) Series
1993A (Exhibit (10) (I) to the 1993 Form 10-K)
88
(10) - CONTINUED
. Financing Agreement dated June 1, 1993 between the Company and Washoe
County, Nevada relating to the Washoe County, Nevada Gas and Water
Facilities Refunding Revenue Bonds (Sierra Pacific Power Company
Project) Series 1993B (Exhibit (10) (J) to the 1993 Form 10-K)
. Credit Agreement dated January 3, 1995 by and among the Company, The
Lenders Parties hereto from time to time and Mellon Bank, N.A., as
Agent. (Exhibit (10)(A) to the 1994 Form 10-K)
. Agreement dated May 1, 1991 between the Company and the Inter-national
Brotherhood of Electrical Workers (Exhibit (10)(K) to the 1991 Form
10-K)
. Ratified changes to the Agreement between the Company and the
International Brotherhood of Electrical Workers dated October 31, 1994
(Exhibit (10)(B) to the 1994 Form 10-K)
. Employment Agreement dated June 27, 1994 by and among the Company SPR
and Gerald C. Canning. (Exhibit (10)(C) to the 1994 Form 10-K)
. Employment Agreement dated June 27, 1994 by and among the Company SPR
and Thomas D. Parker. (Exhibit (10)(D) to the 1994 Form 10-K)
. Lease dated January 30, 1986 between the Company and Silliman
Associates Limited Partnership relating to the Company's corporate
headquarters building (originally filed as Exhibit (10)(C) to the 1986
Form 10-K - refiled as Exhibit (10)(I) to the 1992 Form 10-K)
. Letter of Amendment dated May 18, 1987 to Lease dated January 30, 1986
between the Company and Silliman Associates Limited Partnership
relating to the Company's corporate headquarters building (Exhibit
(10)(L) to the 1987 Form 10-K - refiled as Exhibit (10) (K) to the
1993 Form 10-K)
. Natural gas Transportation Service Agreement, dated January 11, 1995
between the Company and Tuscarora Gas Transmission Company (Filed with
1995 Form 10-K)
. Fixed-Price Turn-Key Construction Agreement, dated December 15, 1995
between the Company and Pinon Pine Company, L.L.C (Filed with 1995
Form 10-K)
. Operation and Maintenance Agreement, dated December 15, 1995 between
the Company and Pinon Pine Company, L.L.C. (Filed with 1995 Form 10-K)
. Syngas Purchase Agreement, dated December 15, 1995 between the Company
and Pinon Pine Company, L.L.C. (Filed with 1995 Form 10-K)
89
. The Amended and Restated Nonqualified Deferred Compensation Plan in
which any director or any executive officer of the Company may
participate. The Plan was amended and restated January 1, 1996 (Filed
with 1996 Form 10-K)
. Distribution Agreement related to the Company's offering of $35
million Collateralized Medium-term Notes, Series D (Exhibit A on Form
8-K, dated March 10, 1997)
*(A)
Change in Control Agreement dated February 18, 1997 by and among
Sierra Pacific Resources and the following officers (individually):
Gerald W. Canning, Jeffrey L. Ceccarelli, Randy G. Harris, Walter M.
Higgins, Malyn K. Malquist, Lynn M. Miller, Steven C. Oldham, Victor
H. Pena, William E. Peterson, Mark A. Ruelle, Mary O. Simmons, and
Mary Jane Willier.
*(B)
Agreement dated January 1, 1998 between the Company and the
International Brotherhood of Electrical Workers
*(C)
Notice of Termination of Power Purchase from PacifiCorp under the
Interconnection Agreement of May 19, 1971.
(11)
. The Company is a wholly owned subsidiary and, in accordance with
Paragraph 6 of SFAS No. 128 (Earnings Per Share), earnings per share
data have been omitted.
(12)
*(A)
. Calculation of Pre-Tax Interest Coverages for the Periods 1997, 1996
and 1995.
(16)
. Letter from Coopers & Lybrand L.L.P. dated November 21, 1996 regarding
the change in certifying accountants. (Exhibit filed with Form 8-K/A
dated November 22, 1996)
(21)
. Subsidiaries of the Registrant:
Pinon Pine Company
Pinon Pine Investment Company
Sierra Pacific Power Capital Trust I (The Trust)
90
(23)
*(A) Consent of Independent Accountants in connection with the Registration
Statement of Sierra Pacific Power Company (File No. 333-17041),
regarding its issuance of Series D Medium-Term Notes.
(27)
*(A)
The Financial Data Schedule containing summary financial information
extracted from the consolidated financial statements filed on Form 10-
K for the twelve month period ending December 31, 1997.
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Exhibit (10)(A) to the 1997 Sierra Pacific Power Company Form 10-K
CHANGE IN CONTROL AGREEMENT
---------------------------
THIS AGREEMENT, dated February 18, 1997, is made by and between Sierra
Pacific Resources, a Nevada corporation (the "Company"), and Gerald W. Canning
(the "Executive").
WHEREAS, the Company considers it essential to the best interests of
its stockholders to foster the continued employment of key management personnel;
and
WHEREAS, the Board recognizes that, as is the case with many publicly
held corporations, the possibility of a Change in Control exists and that such
possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel
to the detriment of the Company and its stockholders; and
WHEREAS, the Board has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of
members of the management of the Company and its subsidiaries (collectively,
"Sierra"), including the Executive, to their assigned duties without distraction
in the face of potentially disturbing circumstances arising from the possibility
of a Change in Control;
NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the Company and the Executive hereby agree as
follows:
000000001. Defined Terms. The definitions of capitalized terms used
-------------
in this Agreement are provided in the last Section hereof.
2. Term of Agreement. Subject to the provisions of Section 12.2
-----------------
hereof, the term of this Agreement shall commence on the date hereof and shall
continue in effect through December 31, 1999; provided, however, that commencing
-------- -------
on January 1, 1999, and each January 1 thereafter, the Term shall automatically
be extended for one additional year unless, not later than September 30 of the
preceding year, the Company or the Executive shall have given notice not to
extend the Term; and further provided, however, that if a Change in Control
------- -------- -------
shall have occurred during the Term, the Term shall expire no earlier than
twenty-four (24) months beyond the month in which such Change in Control
occurred; and further provided, however, that if a Potential Change in Control
------- -------- -------
shall have occurred during the Term, the Term shall expire no earlier than a
date six months beyond the month in which such Potential Change in Control
occurred.
3. Company's Covenants Summarized. In order to induce the Executive
------------------------------
to remain in the employ of Sierra and in consideration of the Executive's
covenants set forth in
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Section 4 hereof, the Company agrees, under the conditions described herein, to
pay the Executive the Severance Payments and the other payments and benefits
described herein. Except as provided in Section 9.1 hereof, no Severance
Payments shall be payable under this Agreement unless there shall have been (or,
under the terms of the second sentence of Section 6.1 hereof, there shall be
deemed to have been) a termination of the Executive's employment with Sierra
following a Change in Control and during the Term. This Agreement shall not be
construed as creating an express or implied contract of employment and, except
as otherwise agreed in writing between the Executive and Sierra, the Executive
shall not have any right to be retained in the employ of Sierra. The obligations
of the Company hereunder shall be deemed satisfied to the extent payments are
made by Sierra Power Company.
4. The Executive's Covenants. The Executive agrees that, subject to
-------------------------
the terms and conditions of this Agreement, in the event of a Potential Change
in Control during the Term, the Executive will remain in the employ of the
Company until the earliest of (i) a date which is six (6) months from the date
of such Potential Change of Control, (ii) the date of a Change in Control, (iii)
the date of termination by the Executive of the Executive's employment for Good
Reason or by reason of death, Disability or Retirement, or (iv) the termination
by Sierra of the Executive's employment for any reason.
5. Compensation Other Than Severance Payments.
------------------------------------------
6.1 Following a Change in Control and during the Term, during any
period that the Executive fails to perform the Executive's full-time duties with
Sierra as a result of incapacity due to physical or mental illness, the Company
shall pay the Executive's full salary to the Executive at the rate in effect at
the commencement of any such period, together with all compensation and benefits
payable to the Executive under the terms of any compensation or benefit plan,
program or arrangement maintained by Sierra during such period, until the
Executive's employment is terminated by Sierra for Disability.
7.2 If the Executive's employment shall be terminated for any reason
following a Change in Control and during the Term, the Company shall pay the
Executive's full salary to the Executive through the Date of Termination at the
rate in effect immediately prior to the Date of Termination or, if higher, the
rate in effect immediately prior to the first occurrence of an event or
circumstance constituting Good Reason, together with all compensation and
benefits payable to the Executive through the Date of Termination under the
terms of Sierra compensation and benefit plans, programs or arrangements as in
effect immediately prior to the Date of Termination or, if more favorable to the
Executive, as in effect immediately prior to the first occurrence of an event or
circumstance constituting Good Reason.
8.3 If the Executive's employment shall be terminated for any reason
following a Change in Control and during the Term, the Company shall pay to the
Executive the Executive's normal post-termination compensation and benefits as
such payments become due. Such post-termination compensation and benefits shall
be determined under, and paid in accordance with, Sierra's retirement, insurance
and other compensation or benefit plans, programs and arrangements as in effect
immediately prior to the Date of Termination or, if more favorable to
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the Executive, as in effect immediately prior to the occurrence of the first
event or circumstance constituting Good Reason.
90. Severance Payments.
------------------
10.1 Subject to Section 6.2 hereof, if the Executive's employment is
terminated following a Change in Control and during the Term, other than (A) by
Sierra for Cause, (B) by reason of death or Disability, or (C) by the Executive
without Good Reason, then Sierra shall pay the Executive the amounts, and
provide the Executive the benefits, described in this Section 6.1 ("Severance
Payments"), in addition to any payments and benefits to which the Executive is
entitled under Section 5 hereof. For purposes of this Agreement, the
Executive's employment shall be deemed to have been terminated following a
Change in Control by Sierra without Cause or by the Executive with Good Reason,
if (i) the Executive's employment is terminated by Sierra without Cause prior to
a Change in Control (whether or not a Change in Control ever occurs) and such
termination was at the request or direction of a Person who has entered into an
agreement with the Company the consummation of which would constitute a Change
in Control, (ii) the Executive terminates his employment for Good Reason prior
to a Change in Control (whether or not a Change in Control ever occurs) and the
circumstance or event which constitutes Good Reason occurs at the request or
direction of such Person, or (iii) the Executive's employment is terminated by
Sierra without Cause or by the Executive for Good Reason and such termination or
the circumstance or event which constitutes Good Reason is otherwise in
connection with or in anticipation of a Change in Control (whether or not a
Change in Control ever occurs). For purposes of any determination regarding the
applicability of the immediately preceding sentence, any position taken by the
Executive shall be presumed to be correct unless the Company establishes to the
Board by clear and convincing evidence that such position is not correct.
(1) In lieu of any further salary payments to the Executive for
periods subsequent to the Date of Termination and in lieu of any severance
benefit otherwise payable to the Executive, the Company shall pay to the
Executive a lump sum severance payment, in cash, equal to three times the
sum of (i) the Executive's base salary as in effect immediately prior to
the Date of Termination or, if higher, in effect immediately prior to the
first occurrence of an event or circumstance constituting Good Reason, and
(ii) the target annual incentive award applicable to the Executive pursuant
to any annual bonus or incentive plan maintained by Sierra in respect of
the fiscal year ending immediately prior to the fiscal year in which occurs
the Date of Termination or, if higher, immediately prior to the fiscal year
in which occurs the first event or circumstance constituting Good Reason.
(2) For the thirty-six (36) month period immediately following
the Date of Termination, the Company shall arrange to provide the Executive
and his dependents life, disability, accident and health insurance benefits
substantially similar to those provided to the Executive and his dependents
immediately prior to the Date of Termination or, if more favorable to the
Executive, those provided to the Executive and his dependents immediately
prior to the first occurrence of an event or circumstance constituting Good
Reason, at no greater cost to the Executive than the cost to the Executive
immediately prior to such date or occurrence; provided, however, that,
-------- -------
unless
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the Executive consents to a different method (after taking into account the
effect of such method on the calculation of "parachute payments" pursuant
to Section 6.2 hereof), such health insurance benefits shall be provided
through a third-party insurer. Benefits otherwise receivable by the
Executive pursuant to this Section 6.1(B) shall be reduced to the extent
benefits of the same type are received by or made available to the
Executive during the thirty-six (36) month period following the Executive's
termination of employment (and any such benefits received by or made
available to the Executive shall be reported to the Company by the
Executive); provided, however, that the Company shall reimburse the
-------- -------
Executive for the excess, if any, of the cost of such benefits to the
Executive over such cost immediately prior to the Date of Termination or,
if more favorable to the Executive, the first occurrence of an event or
circumstance constituting Good Reason. If the Severance Payments shall be
decreased pursuant to Section 6.2 hereof, and the Section 6.1(B) benefits
which remain payable after the application of Section 6.2 hereof are
thereafter reduced pursuant to the immediately preceding sentence, the
Company shall, no later than five (5) business days following such
reduction, pay to the Executive the least of (a) the amount of the decrease
made in the Severance Payments pursuant to Section 6.2 hereof, (b) the
amount of the subsequent reduction in these Section 6.1(B) benefits, or (c)
the maximum amount which can be paid to the Executive without being, or
causing any other payment to be, nondeductible by reason of Section 280G of
the Code.
(3) Notwithstanding any provision of any annual or long-term
incentive plan to the contrary, the Company shall pay to the Executive a
lump sum amount, in cash, equal to the sum of (i) any unpaid incentive
compensation which has been allocated or awarded to the Executive for a
completed fiscal year or other measuring period preceding the Date of
Termination under any such plan and which, as of the Date of Termination,
is contingent only upon the continued employment of the Executive to a
subsequent date, and (ii) a pro rata portion to the Date of Termination of
the aggregate value of all contingent incentive compensation awards to the
Executive for all then uncompleted periods under any such plan, calculated
as to each such award by multiplying the award that the Executive would
have earned on the last day of the performance award period, assuming the
achievement, at the target level of the individual and corporate
performance goals established with respect to such award, by the fraction
obtained by dividing the number of full months and any fractional portion
of a month during such performance award period through the Date of
Termination by the total number of months contained in such performance
award period.
(4) In addition to the retirement benefits to which the
Executive is entitled under each Pension Plan or any successor plan
thereto, the Company shall pay the Executive a lump sum amount, in cash,
equal to the excess of (i) the actuarial equivalent of the aggregate
retirement pension (taking into account any early retirement subsidies
associated therewith and determined as a straight life annuity commencing
at the date (but in no event earlier than the third anniversary of the Date
of Termination) as of which the actuarial equivalent of such annuity is
greatest) which the Executive would have accrued under the terms of all
Pension Plans (without regard to any amendment to any Pension Plan made
subsequent to a Change in Control and on or prior to the Date of
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Termination, which amendment adversely affects in any manner the
computation of retirement benefits thereunder), determined as if the
Executive were fully vested thereunder and had accumulated (after the Date
of Termination) thirty-six (36) (or, with respect to the Sierra Pacific
Power Company Supplemental Executive Retirement Plan only, the higher of
thirty-six (36) or the number of months remaining from the Date of
Termination until the Executive's Early Retirement Date, as defined in such
plan) additional months of service credit thereunder and had been credited
under each Pension Plan during such period with compensation equal to the
Executive's compensation (as defined in such Pension Plan) during the
twelve (12) months immediately preceding the Date of Termination or, if
higher, during the twelve months immediately prior to the first occurrence
of an event or circumstance constituting Good Reason, over (ii) the
actuarial equivalent of the aggregate retirement pension (taking into
account any early retirement subsidies associated therewith and determined
as a straight life annuity commencing at the date (but in no event earlier
than the Date of Termination) as of which the actuarial equivalent of such
annuity is greatest) which the Executive had accrued pursuant to the
provisions of the Pension Plans as of the Date of Termination. For
purposes of this Section 6.1(D), "actuarial equivalent" shall be determined
using the same assumptions utilized under the Sierra Pacific Power Company
Retirement Plan immediately prior to the Date of Termination. or, if more
favorable to the Executive, immediately prior to the first occurrence of an
event or circumstance constituting Good Reason.
(5) If the Executive would have become entitled to benefits under
Sierra's post-retirement health care or life insurance plans, as in effect
immediately prior to the Date of Termination or, if more favorable to the
Executive, as in effect immediately prior to the first occurrence of an
event or circumstance constituting Good Reason, had the Executive's
employment terminated at any time during the period of thirty-six (36)
months after the Date of Termination, the Company shall provide such post-
retirement health care or life insurance benefits to the Executive and the
Executive's dependents commencing on the later of (i) the date on which
such coverage would have first become available and (ii) the date on which
benefits described in subsection (B) of this Section 6.1 terminate.
6.2 (A) Notwithstanding any other provisions of this Agreement,
in the event that any payment or benefit received or to be received by the
Executive in connection with a Change in Control or the termination of the
Executive's employment (whether pursuant to the terms of this Agreement or any
other plan, arrangement or agreement with the Company, any Person whose actions
result in a Change in Control or any Person affiliated with the Company or such
Person) (all such payments and benefits, including the Severance Payments, being
hereinafter called "Total Payments") would be subject (in whole or part), to the
Excise Tax, then, after taking into account any reduction in the Total Payments
provided by reason of section 280G of the Code in such other plan, arrangement
or agreement, the cash Severance Payments shall first be reduced, and the non-
cash Severance Payments shall thereafter be reduced, to the extent necessary so
that no portion of the Total Payments is subject to the Excise Tax but only if
(A) the net amount of such Total Payments, as so reduced (and after subtracting
the net amount of federal, state and local income taxes on such reduced Total
Payments) is greater than or equal to (B) the net amount of such Total Payments
without such reduction (but
97
after subtracting the net amount of federal, state and local income taxes on
such Total Payments and the amount of Excise Tax to which the Executive would be
subject in respect of such unreduced Total Payments); provided, however, that
-------- -------
the Executive may elect to have the non-cash Severance Payments reduced (or
eliminated) prior to any reduction of the cash Severance Payments.
(B) For purposes of determining whether and the extent to which the
Total Payments will be subject to the Excise Tax, (i) no portion of the Total
Payments the receipt or enjoyment of which the Executive shall have waived at
such time and in such manner as not to constitute a "payment" within the meaning
of Section 280G(b) of the Code shall be taken into account, (ii) no portion of
the Total Payments shall be taken into account which, in the opinion of tax
counsel ("Tax Counsel") reasonably acceptable to the Executive and selected by
the accounting firm (the "Auditor") which was, immediately prior to the Change
in Control, the Company's independent auditor, does not constitute a "parachute
payment" within the meaning of Section 280G(b)(2) of the Code (including by
reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax,
no portion of such Total Payments shall be taken into account which, in the
opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in
excess of the Base Amount allocable to such reasonable compensation, and (iii)
the value of any non-cash benefit or any deferred payment or benefit included in
the Total Payments shall be determined by the Auditor in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code.
(C) At the time that payments are made under this Agreement, the
Company shall provide the Executive with a written statement setting forth the
manner in which such payments were calculated and the basis for such
calculations including, without limitation, any opinions or other advice the
Company has received from Tax Counsel, the Auditor or other advisors or
consultants (and any such opinions or advice which are in writing shall be
attached to the statement). If the Executive objects to the Company's
calculations, the Company shall pay to the Executive such portion of the
Severance Payments (up to 100% thereof) as the Executive determines is necessary
to result in the proper application of subsection A of this Section 6.2.
11.3 The payments provided in subsections (A), (C) and (D) of Section
6.1 hereof shall be made not later than the fifth day following the Date of
Termination; provided, however, that if the amounts of such payments, and the
-------- -------
limitation on such payments set forth in Section 6.2 hereof, cannot be finally
determined on or before such day, the Company shall pay to the Executive on such
day an estimate, as determined in good faith by the Executive of the minimum
amount of such payments to which the Executive is clearly entitled and shall pay
the remainder of such payments (together with interest on the unpaid remainder
(or on all such payments to the extent the Company fails to make such payments
when due) at 120% of the rate provided in Section 1274(b)(2)(B) of the Code) as
soon as the amount thereof can be determined but in no event later than the
thirtieth (30th) day after the Date of Termination. In the event that the
amount of the estimated payments exceeds the amount subsequently determined to
have been due, such excess shall constitute a loan by the Company to the
Executive, payable on the fifth (5th) business day after demand by the Company
(together with interest at 120% of the rate provided in Section 1274(b)(2)(B) of
the Code).
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12.4 The Company also shall pay to the Executive all legal fees and
expenses incurred by the Executive in disputing in good faith any issue
hereunder relating to the termination of the Executive's employment, in seeking
in good faith to obtain or enforce any benefit or right provided by this
Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of Section 4999 of the Code to any payment or
benefit provided hereunder. Such payments shall be made within five (5)
business days after delivery of the Executive's written requests for payment
accompanied with such evidence of fees and expenses incurred as the Company
reasonably may require.
130. Termination Procedures and Compensation During Dispute.
------------------------------------------------------
14.1 Notice of Termination. After a Change in Control and during the
---------------------
Term, any purported termination of the Executive's employment (other than by
reason of death) shall be communicated by written Notice of Termination from one
party hereto to the other party hereto in accordance with Section 10 hereof.
For purposes of this Agreement, a "Notice of Termination" shall mean a notice
which shall indicate the specific termination provision in this Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated. Further, a Notice of Termination for Cause is
required to include a copy of a resolution duly adopted by the affirmative vote
of not less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board which was called and held for the purpose of considering
such termination (after reasonable notice to the Executive and an opportunity
for the Executive, together with the Executive's counsel, to be heard before the
Board) finding that, in the good faith opinion of the Board, the Executive was
guilty of conduct set forth in clause (i) or (ii) of the definition of Cause
herein, and specifying the particulars thereof in detail.
15.2 Date of Termination. "Date of Termination," with respect to any
-------------------
purported termination of the Executive's employment after a Change in Control
and during the Term, shall mean (i) if the Executive's employment is terminated
for Disability, thirty (30) days after Notice of Termination is given (provided
that the Executive shall not have returned to the full-time performance of the
Executive's duties during such thirty (30) day period), and (ii) if the
Executive's employment is terminated for any other reason, the date specified in
the Notice of Termination (which, in the case of a termination by Sierra, shall
not be less than thirty (30) days (except in the case of a termination for
Cause) and, in the case of a termination by the Executive, shall not be less
than fifteen (15) days nor more than sixty (60) days, respectively, from the
date such Notice of Termination is given).
16.3 Dispute Concerning Termination. If within fifteen (15) days
------------------------------
after any Notice of Termination is given, or, if later, prior to the Date of
Termination (as determined without regard to this Section 7.3), the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the termination, the Date of Termination shall be extended
until the earlier of (i) the date on which the Term ends or (ii) the date on
which the dispute is finally resolved, either by mutual written agreement of the
parties or by a final judgment, order or decree of an arbitrator or a court of
competent jurisdiction (which is not appealable or with respect to which the
time for appeal therefrom has expired and no appeal has been perfected);
provided, however, that the Date of Termination shall be extended by a notice
- -------- -------
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of dispute given by the Executive only if such notice is given in good faith and
the Executive pursues the resolution of such dispute with reasonable diligence.
17.4 Compensation During Dispute. If a purported termination occurs
---------------------------
following a Change in Control and during the Term and the Date of Termination is
extended in accordance with Section 7.3 hereof, the Company shall continue to
pay the Executive the full compensation in effect when the notice giving rise to
the dispute was given (including, but not limited to, salary) and continue the
Executive as a participant in all compensation, benefit and insurance plans in
which the Executive was participating when the notice giving rise to the dispute
was given, until the Date of Termination, as determined in accordance with
Section 7.3 hereof. Amounts paid under this Section 7.4 are in addition to all
other amounts due under this Agreement (other than those due under Section 5.2
hereof) and shall not be offset against or reduce any other amounts due under
this Agreement.
180. No Mitigation. The Company agrees that, if the Executive's
-------------
employment with Sierra terminates during the Term, the Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable
to the Executive by the Company pursuant to Section 6 hereof or Section 7.4
hereof. Further, the amount of any payment or benefit provided for in this
Agreement (other than Section 6.1(B) hereof) shall not be reduced by any
compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.
19. Successors; Binding Agreement.
-----------------------------
20.1 In addition to any obligations imposed by law upon any successor
to the Company, the Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle the Executive to compensation from the Company in
the same amount and on the same terms as the Executive would be entitled to
hereunder if the Executive were to terminate the Executive's employment for Good
Reason after a Change in Control, except that, for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination.
21.2 This Agreement shall inure to the benefit of and be enforceable
by the Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive shall
die while any amount would still be payable to the Executive hereunder (other
than amounts which, by their terms, terminate upon the death of the Executive)
if the Executive had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
the executors, personal representatives or administrators of the Executive's
estate.
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220. Notices. For the purpose of this Agreement, notices and all
-------
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed, if to the
Executive, to the address inserted below the Executive's signature on the final
page hereof and, if to the Company, to the address set forth below, or to such
other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon actual receipt:
To the Company:
Sierra Power Resources
6100 Neil Road
Reno, Nevada 89520-3150
Attention: General Counsel
23. Miscellaneous. No provision of this Agreement may be modified,
-------------
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and such officer as may be specifically
designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of any lack of compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. This Agreement supersedes any
other agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party;
provided, however, that this Agreement shall supersede any agreement setting
- -------- -------
forth the terms and conditions of the Executive's employment with Sierra only in
the event that the Executive's employment with Sierra is terminated on or
following a Change in Control, by Sierra other than for Cause or by the
Executive other than for Good Reason. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of Nevada. All references to sections of the Exchange Act or the Code
shall be deemed also to refer to any successor provisions to such sections. Any
payments provided for hereunder shall be paid net of any applicable withholding
required under federal, state or local law and any additional withholding to
which the Executive has agreed. The obligations of the Company and the
Executive under this Agreement which by their nature may require either partial
or total performance after the expiration of the Term (including, without
limitation, those under Sections 6 and 7 hereof) shall survive such expiration.
24. Validity; Pooling.
-----------------
12.1 The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.
12.2 In the event that the Company is party to a transaction which is
otherwise intended to qualify for "pooling of interests" accounting treatment
then (A) this Agreement shall, to the extent practicable, be interpreted so as
to permit such accounting treatment, and (B) to the
101
extent that the application of clause (A) of this Section 12.2 does not preserve
the availability of such accounting treatment, then, to the extent that any
provision of the Agreement disqualifies the transaction as a "pooling"
transaction (including, if applicable, the entire Agreement), such provision
shall be null and void as of the date hereof. All determinations under this
Section 12.2 shall be made by the accounting firm whose opinion with respect to
"pooling of interests" is required as a condition to the consummation of such
transaction.
25. Counterparts. This Agreement may be executed in several
------------
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.
26. Settlement of Dispute; Arbitration.
----------------------------------
14.1 All claims by the Executive for benefits under this Agreement
shall be directed to and determined by the Board and shall be in writing. Any
denial by the Board of a claim for benefits under this Agreement shall be
delivered to the Executive in writing and shall set forth the specific reasons
for the denial and the specific provisions of this Agreement relied upon. The
Board shall afford a reasonable opportunity to the Executive for a review of the
decision denying a claim and shall further allow the Executive to appeal to the
Board a decision of the Board within sixty (60) days after notification by the
Board that the Executive's claim has been denied.
14.2 Any further dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Reno, Nevada in accordance with the rules of the American Arbitration
Association then in effect; provided, however, that the evidentiary standards
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set forth in this Agreement shall apply. Judgment may be entered on the
arbitrator's award in any court having jurisdiction. Notwithstanding any
provision of this Agreement to the contrary, the Executive shall be entitled to
seek specific performance of the Executive's right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or
in connection with this Agreement.
01444444415. Definitions. For purposes of this Agreement, the
-----------
following terms shall have the meanings indicated below:
(5) "Affiliate" shall have the meaning set forth in Rule 12b-2
promulgated under Section 12 of the Exchange Act.
(6) "Auditor" shall have the meaning set forth in Section 6.2
hereof.
(7) "Base Amount" shall have the meaning set forth in Section
280G(b)(3) of the Code.
(8) "Beneficial Owner" shall have the meaning set forth in Rule
13d-3 under the Exchange Act.
(9) "Board" shall mean the Board of Directors of the Company.
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(10) "Cause" for termination by Sierra of the Executive's
employment shall mean (i) the willful and continued failure by the Executive to
substantially perform the Executive's duties with Sierra (other than any such
failure resulting from the Executive's incapacity due to physical or mental
illness or any such actual or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 7.1 hereof)
after a written demand for substantial performance is delivered to the Executive
by the Board, which demand specifically identifies the manner in which the Board
believes that the Executive has not substantially performed the Executive's
duties, or (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to Sierra, monetarily or otherwise. For
purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to
act, on the Executive's part shall be deemed "willful" unless done, or omitted
to be done, by the Executive not in good faith and without reasonable belief
that the Executive's act, or failure to act, was in the best interest of Sierra
and (y) in the event of a dispute concerning the application of this provision,
no claim by Sierra that Cause exists shall be given effect unless Sierra
establishes to the Board by clear and convincing evidence that Cause exists.
(11) A "Change in Control" shall be deemed to have occurred if the
event set forth in any one of the following paragraphs shall have occurred:
(5) any Person is or becomes the Beneficial Owner, directly
or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired
directly from the Company or its affiliates) representing 30% or more
of the combined voting power of the Company's then outstanding
securities, excluding any Person who becomes such a Beneficial Owner
in connection with a transaction described in clause (i) of paragraph
(III) below; or
(6) the following individuals cease for any reason to
constitute a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board and any new
director (other than a director whose initial assumption of office is
in connection with an actual or threatened election contest, including
but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board
or nomination for election by the Company's stockholders was approved
or recommended by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors on the date hereof or
whose appointment, election or nomination for election was previously
so approved or recommended; or
(7) there is consummated a merger or consolidation of the
Company or any direct or indirect subsidiary of the Company with any
other corporation, other than (i) a merger or consolidation which
would result in the voting securities of the Company outstanding
immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof), in
combination
103
with the ownership of any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any
subsidiary of the Company, at least 66.66% of the combined voting
power of the securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger or
consolidation, or (ii) a merger or consolidation effected to implement
a recapitalization of the Company (or similar transaction) in which no
Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities
Beneficially Owned by such Person any securities acquired directly
from the Company or its Affiliates other than in connection with the
acquisition by the Company or its Affiliates of a business)
representing 30% or more of the combined voting power of the Company's
then outstanding securities; or
(IV) the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the Company of
all or substantially all of the Company's assets, other than a sale or
disposition by the Company of all or substantially all of the
Company's assets to an entity, at least 66.66% of the combined voting
power of the voting securities of which are owned by stockholders of
the Company in substantially the same proportions as their ownership
of the Company immediately prior to such sale.
Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Company immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in
an entity which owns all or substantially all of the assets of the Company
immediately following such transaction or series of transactions.
(12)4 "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.
(13) "Company" shall mean Sierra Pacific Resources and, except in
determining under Section 15(G) hereof whether or not any Change in Control of
the Company has occurred, shall include any successor to its business and/or
assets which assumes and agrees to perform this Agreement by operation of law,
or otherwise.
(14) "Date of Termination" shall have the meaning set forth in
Section 7.2 hereof.
(15) "Disability" shall be deemed the reason for the termination by
Sierra of the Executive's employment, if, as a result of the Executive's
incapacity due to physical or mental illness, the Executive shall have been
absent from the full-time performance of the Executive's duties with Sierra for
a period of six (6) consecutive months, Sierra shall have given the Executive a
Notice of Termination for Disability, and, within thirty (30) days after such
Notice of Termination is given, the Executive shall not have returned to the
full-time performance of the Executive's duties.
104
(16) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time.
(17) "Executive" shall mean the individual named in the first
paragraph of this Agreement.
(18) "Good Reason" for termination by the Executive of the
Executive's employment shall mean the occurrence (without the Executive's
express written consent) after any Change in Control, or prior to a Change in
Control under the circumstances described in clauses (ii) and (iii) of the
second sentence of Section 6.1 hereof (treating all references in paragraphs (I)
through (VII) below to a "Change in Control" as references to a "Potential
Change in Control"), of any one of the following acts by Sierra, or failures by
Sierra to act, unless, in the case of any act or failure to act described in
paragraphs (I), (IV), (V) or (VI) below, such act or failure to act is corrected
prior to the Date of Termination specified in the Notice of Termination given in
respect thereof:
(5) the assignment to the Executive of any duties
substantially below the Executive's status as a senior executive
officer of Sierra or a substantial adverse reduction in the nature or
status of the Executive's responsibilities from those in effect
immediately prior to the Change in Control other than any such
alteration primarily attributable to the fact that the Company may no
longer be a public company;
(6) a reduction by Sierra in the Executive's annual base
salary as in effect on the date hereof or as the same may be increased
from time to time except for across-the-board salary reductions
similarly affecting all senior executives of Sierra and all senior
executives of any Person in control of Sierra;
(7) the failure by Sierra to pay to the Executive any
portion of the Executive's current compensation except pursuant to an
across-the-board compensation deferral similarly affecting all senior
executives of Sierra and all senior executives of any Person in
control of Sierra, or to pay to the Executive any portion of an
installment of deferred compensation under any deferred compensation
program of Sierra, within thirty (30) days of the date such
compensation is due;
(8) the failure by Sierra to continue in effect any
compensation plan in which the Executive participates immediately
prior to the Change in Control which is material to the Executive's
total compensation, including but not limited to the Company's Officer
and Senior Managers Annual Incentive Plan, Executive Long-Term
Incentive Plan, Long-Term Performance Share Program and Stock Option
Plan or any substitute plans adopted prior to the Change in Control,
unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan) has been made with respect to such plan, or the
failure by Sierra to continue the Executive's participation therein
(or in such substitute or alternative plan) on a
105
basis not materially less favorable, both in terms of the amount or
timing of payment of benefits provided and the level of the
Executive's participation relative to other participants, as existed
immediately prior to the Change in Control;
(9) the failure by Sierra to continue to provide the
Executive with benefits substantially similar to those enjoyed by the
Executive under any of Sierra's pension, savings, life insurance,
medical, health and accident, or disability plans in which the
Executive was participating immediately prior to the Change in Control
(except for across the board changes similarly affecting all senior
executives of Sierra and all senior executives of any Person in
control of Sierra), the taking of any other action by Sierra which
would directly or indirectly materially reduce any of such benefits or
deprive the Executive of any material fringe benefit enjoyed by the
Executive at the time of the Change in Control, or the failure by
Sierra to provide the Executive with substantially the same number of
paid vacation days to which the Executive is entitled on the basis of
years of service with Sierra in accordance with Sierra's normal
vacation policy in effect at the time of the Change in Control; or
(10) any purported termination of the Executive's
employment which is not effected pursuant to a Notice of Termination
satisfying the requirements of Section 7.1 hereof; for purposes of
this Agreement, no such purported termination shall be effective.
The Executive's right to terminate the Executive's employment for Good
Reason shall not be affected by the Executive's incapacity due to physical or
mental illness. The Executive's continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
constituting Good Reason hereunder.
For purposes of any determination regarding the existence of Good
Reason, any claim by the Executive that Good Reason exists shall be presumed to
be correct unless the Company establishes to the Board by clear and convincing
evidence that Good Reason does not exist.
(19)4 "Notice of Termination" shall have the meaning set forth in
Section 7.1 hereof.
(20) "Pension Plan" shall mean any tax-qualified, supplemental or
excess benefit pension plan maintained by Sierra and any other plan or agreement
entered into between the Executive and Sierra which is designed to provide the
Executive with supplemental retirement benefits.
(21) "Person" shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except
that such term shall not include (i) the Company or any of its subsidiaries,
(ii) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any of its Affiliates, (iii) an
106
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.
(22) "Potential Change in Control" shall be deemed to have occurred
if the event set forth in any one of the following paragraphs shall have
occurred:
(5) the Company enters into an agreement, the consummation
of which would result in the occurrence of a Change in Control;
(6) the Company or any Person publicly announces an
intention to take or to consider taking actions which, if consummated,
would constitute a Change in Control;
(7) any Person becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing 15% or more of
either the then outstanding shares of common stock of the Company or
the combined voting power of the Company's then outstanding securities
(not including in the securities beneficially owned by such Person any
securities acquired directly from the Company or its affiliates); or
(8) the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has
occurred.
(23)4 "Retirement" shall be deemed the reason for the termination by
the Executive of the Executive's employment if such employment is terminated in
accordance with Sierra's retirement policy, including early retirement,
generally applicable to its salaried employees.
(24) "Severance Payments" shall have the meaning set forth in Section
6.1 hereof.
(25) "Tax Counsel" shall have the meaning set forth in Section 6.2
hereof.
(26) "Term" shall mean the period of time described in Section 2
hereof (including any extension, continuation or termination described therein).
(27) "Total Payments" shall mean those payments so described in
Section 6.2 hereof.
Sierra Pacific Resources
By:
-------------------------------
Name:
Title:
107
Exhibit (10)(B) to the 1997 Sierra Pacific Power Company Form 10-K
AGREEMENT
BETWEEN
SIERRA PACIFIC POWER COMPANY
RENO, NEVADA
AND
LOCAL UNION 1245
OF THE
INTERNATIONAL BROTHERHOOD
OF ELECTRICAL WORKERS
AFFILIATED WITH THE
AMERICAN FEDERATION OF LABOR AND
THE CONGRESS OF INDUSTRIAL ORGANIZATIONS
AFL-CIO
JANUARY 1, 1998 - DECEMBER 31, 2000
109
TABLE OF CONTENTS
-----------------
TITLE PAGE
----- ----
Agreement
Preamble
1. Recognition
2. Continuity of Service
3. Definitions
4. Wages
5. Transportation
6. Working Hours
7. Shift Premium
8. Leaves of Absence
9. Inclement Weather Practice
10. Overtime
11. Holidays
12. Vacations
13. Safety
14. Union Activity
15. Sick Leave
16. Seniority
17. Expenses
18. Apprenticeship
19. Miscellaneous
20. Supplemental Benefits for Industrial Injury
21. Grievance Procedure
22. Employee Benefit Programs
23. Demotion and Layoff Procedure
24. Term of Agreement
-i-
110
ATTACHMENTS
- -----------
I. Exhibit A (1) Wage Schedules
II. Exhibit B (1) Classifications and Job Descriptions
Exhibit B (2) Deleted Job Classifications
III. Letters of Understanding
IV. Exhibit C (1) Lines of Progression for Bidding & Demotional
Purposes by Occupational Groups
Definition of Occupational Groups
Lines of Progression
Bidding Notes
V. Exhibit D (1) Shift Employees
(2) Service Employees
(3) Operations Center Employees
(4) Part-Time Employees
(5) Office Service Employees
VI. Voluntary Investment Plan (401k) and
Long-Term Disability Plan
VII. Group Insurance Plan - Medical/Dental Plan
Wellness Participation
Bargaining Unit Medical Plan Options - Exhibits
Premium Summary for Part-time Employees
VIII. Retirement Plan
IX. Out-of-Town Work Assignment Guidelines
X. (Deleted 1/198)
XI. Job Site Reporting
XII. Emergency Response Program
XIII. Company Statement RE: Continuation of Post Retirement Medical Coverage
XIV. Letter of Understanding - Work-At-Home Schedule for CSRs (Business Office)
111
-ii-
INDEX
-----
SPPCO-IBEW LOCAL UNION 1245 AGREEMENT
-------------------------------------
JANUARY 1, 1998
---------------
PAGE
----
AGREEMENT (INTRODUCTION & PREAMBLE)
ARBITRATION PROCEDURE
APPRENTICESHIP
BIDDING NOTES
BULLETIN BOARDS, UNION
CALL OUTS
CHECK-OFF, UNION DUES
CLERICAL BIDDING NOTES
CLERICAL - CHANGE OF WORK HOURS
COMPANY VEHICLE USE
COMMUNICATION TECHNICIAN LETTER
CONTINUITY OF SERVICE TO THE PUBLIC
DAY EMPLOYEES
DEFINITIONS OF EMPLOYEE STATUS
DEMOTION PROCEDURE
DISCRIMINATION, RACE, COLOR, SEX, ETC.
DISQUALIFICATION OF PREFERRED BIDDER
DOUBLE TIME
DRIVERS LICENSE REQUIREMENTS
EMERGENCY RESPONSE PROGRAM
EMPLOYEE BENEFIT PROGRAMS
EMPLOYEE PLACEMENT
- Disabled
- New Technologies
- Revision of Operations
- Return from Military Leave
- Temperamentally Unsuited
EQUIPMENT OPERATOR PROGRESSION GUIDELINES
EXPENSES
- Meals
112
- Board/Lodging
- Subsistence
- Moving
FAMILY SICK LEAVE PROGRAM
FOREMAN SELECTION
GRIEVANCE PROCEDURE
GROUP INSURANCE
HOLIDAYS
ICE FIGHTING
INCLEMENT WEATHER
INTERIM NEGOTIATIONS
-iii-
113
JOB BIDDING
JOB DEFINITIONS (EXHIBIT B)
LAYOFF, LACK OF WORK
LETTERS OF UNDERSTANDING
LEAVES OF ABSENCE
- Military
- Personal
- Union
- Family and Medical
LIFE INSURANCE PLAN
LINES OF PROGRESSION
LONG-TERM DISABILITY PLAN
LUNCH PERIOD
MANAGEMENT RIGHTS
MEAL ALLOWANCES
MEAL PERIODS
MEDICAL/DENTAL/VISION GROUP INSURANCE
MEMBERSHIP
METER READER ALLOWANCE
MILEAGE ALLOWANCE
NON-BARGAINING UNIT ASSIGNMENTS
OCCUPATIONAL GROUP DEFINITIONS
OFF SCHEDULE ASSIGNMENT
OFFICE SERVICE EMPLOYEES CLASSIFICATIONS
ON CALL - STANDBY
OPERATIONS CENTER EMPLOYEES
OUT-OF-TOWN GUIDELINES
OUT-OF-TOWN PREMIUM
OVERTIME PAY
PART-TIME EMPLOYEES BENEFITS
PART-TIME EMPLOYEES DEFINITIONS
PASS - UNION BUSINESS REPRESENTATIVE
PAY PERIODS
PREARRANGED WORK
PROMOTION (QUALIFYING PERIOD)
RECOGNITION
RELOCATION ASSISTANCE
REPORTING PLACE
RESIDENTIAL REQUIREMENTS
REST PERIOD
RETIREMENT PLAN
SAFETY
SAVINGS CLAUSE
SENIORITY
SERVICE EMPLOYEES
114
SEVERANCE PLAN
SHIFT EMPLOYEES
-iv-
SHIFT PREMIUM
SICK LEAVE
SICK LEAVE PAYOFF
STRIKE AND LOCKOUT
SUPPLEMENTAL BENEFITS FOR INDUSTRIAL INJURY
TELEPHONE ALLOWANCE
TEMPORARY ASSIGNMENTS
TERM OF AGREEMENT
TESTING REQUIREMENTS - POWER PRODUCTION
TOOLS
TRAVEL TIME
UNION SECURITY
UPGRADES
VACATIONS
VOLUNTARY INVESTMENT PLAN
WAGE RATES (EXHIBIT "A")
WAGE STEPS WITHHELD
WELLNESS PROGRAM
WORKING HOURS
115
AGREEMENT
---------
THIS AGREEMENT, made and entered into this first day of January, 1998,
by and between SIERRA PACIFIC POWER COMPANY of Reno, Nevada, its successors or
assigns, together with such other properties of a public utility character as
may hereafter be acquired, hereinafter referred to as Company, and LOCAL UNION
No. 1245 of the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (affiliated with
the American Federation of Labor-Congress of Industrial Organizations),
hereinafter referred to as Union. (Amended 1/1/98)
WITNESSETH that:
WHEREAS, the parties hereto desire to facilitate the peaceful
adjustment of differences that may from time to time arise between them, to
promote harmony and efficiency to the end that Company, Union and the general
public may benefit therefrom, and to establish wages, hours and working
conditions for certain hereinafter designated employees of Company;
WHEREAS, the parties hereby recognize that their industry is quickly
transitioning into a competitive environment, and that they will be faced with
competitive threats, expanding customer requirements, and related implications
that must be addressed during the transition. Both parties agree that the
magnitude of the possible changes are currently unknown; however, the Union and
Company both agree to meet these challenges jointly as committed partners with
the end result being the Company and Union that the customers choose. (Added
1/1/98)
NOW THEREFORE, the parties hereto do agree as follows:
TITLE 1
-------
RECOGNITION
1.1 For the purpose of collective bargaining with respect to rates of pay,
wages, hours of employment and other conditions of employment, Company
shall recognize Union as the exclusive representative of those employees
for whom the National Labor Relations Board certified Union as such
representative in Cases 20-R-1376 and 20-R-1403. It is agreed that the
following specific classifications of employees shall be added to those
classifications of employees which have previously been specifically
excluded from the Bargaining Unit by mutual agreement.
1.2 Provisions of this Agreement shall be limited in their application to
employees of Company as described in 1.1 of this Title. When the words
"employee" and "employees" are used in this Agreement they shall be
construed to refer only to employees described in said 1.1 unless
otherwise noted.
1.3 Company shall deduct from their wages and pay over to the proper
officers of Union, the membership dues of the members of the Union who
individually and voluntarily authorize such deductions in writing. The
form of check-off authorization shall be approved by Company and Union.
1.4 It is the policy of the Company and the Union not to discriminate
against any employee because of race, creed, sex, age, color, national
origin, or mental or physical impairment. It is further agreed that
wherever in this Agreement the masculine term is used, it shall be
considered applicable to both sexes.
117
TITLE 2
-------
CONTINUITY OF SERVICE
2.1 Company is engaged in rendering public utility services to the public
and Union and Company recognize that there is an obligation on each party
for the continuous rendition and availability of such services.
2.2 The duties performed by employees of Company as part of their
employment pertain to and are essential in the operation of a public
utility and the welfare of the public dependent thereon. During the term
of this Agreement, Union shall not call upon or authorize or permit
employees individually or collectively to cease or abstain from the
performance of their duties for the Company, and Company shall not cause
any lockout.
2.3 Any employee in a Bargaining Unit classification shall perform loyal
and efficient work and service, and shall use their influence and best
efforts to protect the properties of Company and its service to the
public, and shall cooperate in promoting and advancing the welfare of
Company and in preserving the continuity of its service to the public at
all times.
2.4 Consistent with the Provisions of this Title, the parties recognize
that Union, Company, and all employees are mutually obligated to promote
efficiency in Company's operations and harmony among Company's employees.
2.5 Consistent with the provisions of this Title which pertain to
continuity of service to the public and duties essential to the operation
of the utility, after May 1, 1979 all employees shall be required by
Company to either report to work on a call out basis within 45 minutes or
reside within a thirty-five (35) mile radius of the Company headquarters
to which they regularly report. An employee who is unable to report for
work on a call-out basis within forty-five (45) minutes, will be exempt
from the provisions of Section 10.3 of the Agreement. (Amended 1/1/98)
Any employee who must change his place of residence as provided herein
shall be given a reasonable period of time to move in order to avoid
personal hardship.
Incumbent employees who on May 1, 1979 reside within the present
district or sub-district of the Company headquarters to which they
regularly report, shall not be affected by the above provisions, until
such time as they voluntarily change their residence, or job
classification, or reporting headquarters.
TITLE 3
-------
DEFINITIONS
3.1 Employees shall be known as "Regular," "Temporary," "Part-Time" and
"Probationary."
3.2 For the purpose of the contract, a regular employee is defined as an
employee who has completed six (6) months of continuous service with the
Company.
3.3 A temporary employee is defined as an employee hired by the day for
occasional or seasonal work, or for a limited time. A temporary employee
shall not be eligible for sick pay, holiday pay, vacation pay, insurance
coverage, pension coverage or items of similar nature, except as herein
specifically provided. If a temporary employee should in the course of
continuous employment, be reclassified to probationary or regular, he
shall be credited with all continuous service in determining eligibility
for such benefits that may accrue to him in his new status. A temporary
employee shall receive not less than the minimum rate for the job except
in the case of laborers. Temporary laborers, as defined in
118
Exhibit A, may be hired for a period of not more than three (3) months at
the special temporary labor rate.
3.4 A probationary employee is defined as an employee hired for a position
that has been regularly established and is of indeterminate duration. A
probationary employee shall receive sick pay, vacation pay, insurance
coverage, pension coverage or items of a similar nature as he shall become
eligible, but in all other respects shall be equivalent to a regular
employee, subject to the provision of 3.6 of this Title. A probationary
employee shall receive not less than the minimum rate for the job.
3.5 (a) A part-time employee is one scheduled to work less than five (5)
days per week or less than eight (8) hours per day. A limited number of
part-time employees may be assigned to work covered by the Bargaining
Agreement, provided that such assignment shall not result in the loss of
regular employment for regular employees, nor shall the employees so
assigned affect the status of or impede the promotional opportunities of
regular employees. Part-time employees shall be paid the wage rates
established in Exhibit A for the work performed. In determining allowances
for vacations, sick leave, and other benefits hereunder, such allowance
shall be prorated in direct ratio that the number of hours worked per week
bears to forty (40). (Amended 1/1/95)
3. (b) The number of part-time employees in all "Clerical Department"
classifications will not exceed 15% of the aggregate number
of employees in all "Clerical Department" classifications.
(Amended 1/1/98)
(Benefits related to part-time employees was moved to Title 22,
effective 1/1/98)
Schedules will be established in full hour increments and the
employee's classification, i.e., one-half (1/2) time or three-quarter
(3/4) time will be based on the established schedule at the time they are
hired and an annual (payroll year) review of hours actually worked
(excluding non-productive time) thereafter. Status changes will apply
prospectively only. (Amended 1/1/98)
3.6 The retention of temporary and probationary employees is at the sole
discretion of the Company, and termination of employment of such employees
shall not be subject to review through the grievance procedure.
3.7 Continuous service with Company shall start with the date of
employment and consist of the entire period of employment. Continuous
service will be broken when (a) an employee is discharged for cause; (b)
an employee voluntarily terminates employment; (c) an employee has been
laid off for more than twelve (12) consecutive months; (d) an employee has
violated the provisions of 8.4; (e) an employee has taken a leave of
absence of over thirty (30) calendar days as defined in Section 8.1.
(Amended 5/1/88)
TITLE 4
-------
WAGES
4.1 The wage to be paid employees of the Company covered by this Agreement
shall be at the rates specified in the schedule hereto attached, numbered
Exhibit A, and made a part hereof.
4.2 All employees shall be placed on an hourly rate of pay and shall be
paid on alternate Fridays for all time worked during the two (2) week
period ending the previous Saturday midnight; exclusive of overtime worked
during the second week of the two week period. Any such deferred payment
shall be included with the pay check for the payroll period next
succeeding the period in which such overtime was worked. In order to
spread the payroll work the Company reserves the right to divide the
payroll into two groups, paying each group on alternate Fridays. If a pay
day falls on a holiday, the day next preceding such holiday shall be pay
day. However, if a pay day falls on the Day after Thanksgiving
119
the following Monday shall be pay day. Payroll deductions for employees
shall occur semi-monthly (first and second paycheck each month) including,
but not limited to, Employee-only/Dependent Medical premium payments,
Long-term Disability Insurance premiums, Life Insurance premiums, Union
Dues, and Credit Union deposits or payments. (Amended 1/1/95)
4.3 (a) An employee who temporarily assumes the duties and responsibilities
of a classification having a higher minimum rate shall be paid not less
than the minimum rate of the higher classification for the time worked,
meal and travel time, as applicable, computed to the next quarter (1/4)
hour. (Amended 5/1/83)
1. Any upgrade position lacking an incumbent employee and
continuing for a cumulative period of 1500 straight-time
hours in a 12-month period shall require posting of the
position. This provision does not apply to those
classifications designated as "upgrade only". Exceptions to
this provision can be made by mutual agreement between the
Company and Union, i.e., training positions and special
projects. (Added 1/1/98)
(b) When an employee is temporarily reassigned to work in a
classification higher than his regular classification, he shall be paid,
upon such reassignment, the rate of pay he last received in such higher
classification, plus any general wage increase or adjustments subsequently
made therein.
(c) When an employee is temporarily assigned or reassigned to work in
a classification lower than his regular classification, his rate of pay
will not be reduced.
(d) Where automatic progression between classification or within the
pay rate range of a classification is provided by the Agreement, it is
understood that the employee's performance must be satisfactory to qualify
for advancement. Where an employee's performance is unsatisfactory and an
automatic progression wage step has been withheld, the Investigating
Committee, provided for in Section 21.2 of the Agreement, may review the
employee's performance.
(e) Where automatic progression in any classification is provided by
the Agreement, an automatic progression wage step will be withheld after
an employee is off work for sixty (60) calendar days or more. (Amended
5/1/83)
4.4 Company and Union may agree to additional classifications and/or
revisions of existing classifications and wages and lines of progression
with respect thereto, during the term of this Agreement. Pending
negotiations with respect to such classifications, wage rates and lines of
progression, the Company may establish temporary classifications and wage
rates.
The Company will promptly notify the Union of any such temporary
classifications and/or revisions and wage rates which are established.
When the Company and Union reach agreement on the wage rate for the new
classification and/or revised classification, it shall be retroactive to
the date when the classification was first temporarily established or
revised.
TITLE 5
-------
TRANSPORTATION
5.1 Company or public transportation shall be furnished all employees
requiring, at the discretion of the Company, transportation in the
performance of their duties. In the event an employee is asked to use his
own automobile for Company business, he shall be reimbursed at the current
rate sanctioned by the Internal Revenue Code, Section 274, Treasury
Regulations and Administrative Interpretations. (Amended 1/1/95)
120
5.2 Regular full-time Reno area Meter Readers shall be required to use
their personal vehicles in the performance of their assigned duties within
the Reno/Sparks metropolitan area for which they shall be reimbursed at
the rate of One Hundred Eighty Dollars ($180.00) effective 5/1/96 per
month for each month personal vehicles are so used. An allowance has been
included in the reimbursement for the difference in cost between pleasure
and business vehicle insurance coverage. As a condition of employment,
personal vehicle insurance coverage shall be provided by the employee in
an amount not less than the minimum state insurance requirements for such
vehicle's use, and; a certificate of insurance with a thirty (30) day
cancellation clause shall be required from each employee's insurance
Company naming Sierra Pacific Power Company as an "Additional Insured Non-
Owner" for each such vehicle used. Reno area Meter Readers shall not be
required to use their personal vehicles outside the Reno/Sparks
Metropolitan area. (Amended 1/1/98)
5.3 (a) Any employee who may be required to operate Company vehicles
and/or equipment while performing duties pertinent to his job
classification must possess and maintain the appropriate licenses or
permits required by applicable laws and/or Company policy. (Amended
5/1/82)
(b) An employee incumbent in any such job who is unable to maintain
the necessary driver's license, shall be returned to his former
classification and rate of pay or, by mutual agreement between the
Company and Union, shall be placed in another classification.
(Amended 5/1/82)
In the specific event of where an employee is unable to
maintain the necessary driver's license for driving under the
influence or controlled substance abuse, the following shall
apply: (Added 1/1/98)
1. Said employee for a 1/st/ occurrence shall retain his rate of pay
but may be required to work in another classification by mutual
agreement between the Company and Union. However, a return to work
agreement will be made between the Company, Union and employee
specifically addressing terms and conditions of continued
employment. (Added 1/1/98)
2. In the event of a 2/nd/ occurrence, within 5 years of the 1/st/,
said employee will not be accommodated in existing position. The
Company and Union will endeavor to place the employee; however, if
no vacancies exist, this could result in termination. (Added 1/1/98)
3. In the event of a 3/rd/ occurrence, within 5 years of the 1/st/, the
Company is not obligated for any reason whatsoever to accommodate
said employee in any position. (Added 1/1/98)
(c) A successful bidder on any job requiring vehicle and/or equipment
operation, will be given a thirty (30) day period beyond the date of the
job award to obtain the proper licenses and/or permits. Additional
training must be arranged through Department Management. Bidder must be
trained and/or evaluated prior to receiving approval to operate Company
vehicles and/or equipment. (Amended 1/1/98)
(d) Any employee who is considered for an upgrade to a position
requiring the operation of Company vehicles or equipment must be qualified
by training or experience prior to upgrade. Employee will be subject to
the provisions of Section (a) and (b) above. (Added 5/1/83)
(e) The provisions of Sections (a), (b) and (c) shall also apply to
any employee operating a personal vehicle while being compensated by the
Company for its use. (Added 5/1/82)
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5.4 Employees shall be authorized to utilize Company vehicles only for the
purpose of performing their assigned duties. Use of such vehicles for
personal reasons is prohibited.
TITLE 6
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WORKING HOURS
6.1 All regular employees shall receive full-time employment for each work
week employed provided they physically report for duty at their regularly
assigned reporting place in accordance with the terms and conditions of
this Agreement and are in condition to perform their work. This is not
interpreted to mean that the Company does not have the right to lay off or
release employees on account of lack of work or any other valid reason at
the end of the work week.
6.2 (a) Each employee shall have a regular reporting place, a regularly
established schedule of work hours and work days. Such schedule shall
indicate the starting and quitting times, the regularly scheduled meal
period and the scheduled non-work days. The arrangement of such schedule
shall be in accordance with the provisions hereafter contained for the
classification in which the employee is regularly employed. Schedules
with work periods providing for starting times after 12:00 noon or before
6:00 a.m. shall provide eight (8) consecutive hours of work.
(b) Employees who are assigned to work away from their regular
assigned reporting place will be required to report to work at the
established starting time and at the temporary reporting place designated
by Company. When board and lodging are provided by Company, the reporting
place will be the lodging designated by Company. It is understood that
the temporary reporting place designated by the Company may change from
time to time due to changes in Company's operational requirements. When
necessary, Company shall provide water and sanitation facilities for the
employee's use at the temporary reporting place. When the change of
temporary reporting place occurs, the Union will be notified as far in
advance as practicable. (Amended 1/1/95)
6.3 The work week shall be defined to be that period of 168 hours
comprising seven (7) consecutive calendar days. For all employees but
those in classifications listed in Section 6.13 the work week shall be
that period beginning one (1) minute after 11:59 p.m. Saturday and ending
168 hours later.
6.4 A change in the regularly scheduled lunch period for any reason shall
be deemed to require the payment of overtime for work performed during the
regular lunch period and the employees may eat their lunch on Company
time. Lunch periods may be advanced or delayed one-half (1/2) hour
without the payment of overtime.
6.5 Employees, including those on Out-of-Town assignment, who are required
to report for work on their non-work days, or on holidays which they are
entitled to have off, or outside their regular work hours on work days,
shall be paid overtime compensation for the actual work time, commencing
at the time they physically report at their regularly assigned reporting
place, and travel time in the amount of fifteen (15) minutes each way in
connection therewith. An employee who is called out for such work shall
be paid overtime compensation for travel time in the amount of thirty (30)
minutes from his home and fifteen (15) minutes to return home. If an
employee who is called out for such work outside of his regular work hours
on a work day continues to work into or beyond his regular work hours, he
shall be paid overtime compensation for actual travel time in the amount
of thirty (30) minutes only from his home. (Amended 1/1/95)
In applying this Section 6.5 to work to be performed at Tracy or Ft.
Churchill Steam Plants by those employees whose regularly established
headquarters are either the Frank A. Tracy
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or Fort Churchill Steam Plants, a travel time allowance of "30 minutes"
shall be substituted for "15 minutes" wherever it appears in the paragraph
next preceding.
In applying Section 6.5, employees whose regular established
headquarters is North Valmy Steam Plant but who reside in Winnemucca, will
be compensated for "45 minutes" travel time each way and employees
residing in Battle Mountain will be compensated for "30 minutes" each way.
The portion of this Title relating to travel time shall not apply to
the following situation:
(a) Prearranged extended work schedules on regular work days.
(Amended 5/1/81)
6.6 (a) If an employee is instructed by his Supervisor to report for
prearranged overtime on a non-work day, or on a holiday which he is
entitled to take off with pay, and the employee reports for work as
instructed, the employee shall be paid overtime compensation for a minimum
of four (4) hours provided, however, this will not apply to cases in which
the employee is prevented from completing the assignment or earning the
minimum through no fault of the Company, for reasons such as inclement
weather, accidents, illness, or other reasons beyond the control of the
Company. In such cases the employee shall be paid overtime compensation
for the actual time worked, but in no event less than the two (2) hour
minimum. (Amended 5/1/81)
(b) In the event an employee is instructed to report for prearranged
overtime as provided in 6.6(a) above, and such work is canceled, the
employee shall be paid overtime compensation for a minimum of four (4)
hours, if he has not had notice of such cancellation at least eight (8)
hours prior to the designated reporting time. (Amended 5/1/81)
(c) If an employee is instructed by his Supervisor to report for
prearranged overtime prior to his regular starting time on a scheduled
work day, the employee reports for work as instructed and for any reason
the work is canceled, the employee shall be paid overtime compensation for
actual time worked, but in no event less than a two (2) hour minimum time.
(Added 5/1/91)
6.7 For the purposes of application of the provisions of this Title, all
employees not specifically denoted by Section 6.13 shall be considered to
be day employees. Section 6.13 shall determine the designation of all
others.
6.8 (a) Day employees' hours of work shall be regularly scheduled as
either 7:00 a.m. to 11:00 a.m. and 11:30 a.m. to 3:30 p.m. or 7:30 a.m. to
11:30 a.m. and 12:00 noon to 4:00 p.m. or 8:00 a.m. to 12:00 noon and
12:30 to 4:30 p.m. or 8:00 a.m. to 12:00 noon and 1:00 p.m. to 5:00 p.m.
and the regular work days shall be Monday through Friday.
Working hours will be the same for all employees within an
occupational group at their specific reporting place. If Company desires
to split starting times for employees within the same occupational group
it shall be established by mutual agreement between Company and Union.
(b) When by reason of an emergency in connection with ice fighting, it
is necessary to work employees on a shift schedule at hours outside of
their regular work hours, Company shall be exempt from the penalties
provided under Section 10.1(a)(5) after paying two (2) days of such
penalty. Upon the third day, the employees will assume the hours of the
new schedule at the straight-time rate of pay for the duration of such
assignment. When employees are assigned to such shift schedules, the
newly scheduled hours shall become their "regular work hours" in applying
the other provisions of this Title.
123
In connection with ice fighting work assignments as provided for
above, the following rules will be applicable to "Day Employees" with a
normal work week of Monday through Friday, and employees classified as
Hydro Operators.
1. When an emergency arises in connection with ice fighting, the
Company may reschedule the hours of certain "Day Employees"
and employees classified as "Hydro Operators" to the hours of
a shift schedule.
2. The starting time for a shift schedule is 0800, 1600, or
2400.
3. The work day of a shift schedule consists of eight (8)
consecutive hours.
4. When "Day Employees" and employees classified as "Hydro
Operators" are assigned ice fighting on a shift schedule,
they assume the hours of a shift schedule beginning with the
first day of the assignment, but the work days and non-work
days remain the same as their normal work week.
5. The shift premium is applicable to the hours in these
schedules as provided for in Title 7, beginning with the
first day of the assignment.
6. No notice is necessary to start a shift schedule to fight
ice. However, as much notice as possible should be given both
going on and coming off the shift schedule to allow the
employees sufficient time to readjust their sleep and rest
routine.
7. Meals at Company expense are limited to those where the
Supervisor has not allowed sufficient time for the employees
to eat breakfast and prepare lunch before reporting to work.
8. On days the provisions of Section 10.1(a)(1), (2), (3), and
(4) are applicable, such day or days shall not be counted as
one (1) of the days where penalty is paid under Section
6.8(b).
9. The two (2) day penalty provided in Section 6.8(b) is not
considered overtime in applying the rest period provisions.
(c) The regular hours of work established herein may be changed by
Company at the request or direction of public authorities, provided,
however, that before any such change is made Company shall discuss it with
Union. Company shall not be required to pay overtime compensation by
reason of any change made as provided in this Section.
6.9 (a) Company may schedule employees to work for periods of eight (8)
hours at other than their regular hours in any of the following
situations:
1. The maintenance or repair of any generating plant or
substations, and emergency repairs to hydro plant canal
systems. A generating plant or substation shall be defined as
any facility that has high voltage apparatus, including OCBs
and disconnects. (Amended 5/1/87)
2. Work involving cleaning debris from the water intake of a
hydro or power plant.
3. Restoration of the Valley Road Gas Plant to operating
condition and the production of gas.
4. To provide relief in a regularly scheduled job which has been
temporarily vacated by absence of an incumbent.
124
5. To provide public safety and the protection of Company
facilities underground which may be exposed to possible
damage by excavating operations performed by other than
Company employees.
6. Work involving emergency repairs to or the cleaning of sand
and debris from all raw water delivery systems. (Amended
1/1/98)
7. Infra-red inspections of outdoor electric facilities. (Added
1/1/98)
8. At the request of the customer, special project construction
or unique maintenance requirements of facilities where
customer impacts must be minimized. (Added 1/1/98)
(b) In the event such assignment is for four (4) regular work days or
less, the employees shall be paid at the rate of one and one-half (1 1/2)
times the applicable straight-time rate for all such work except that if
the schedule continues beyond four (4) regular work days, the employee
shall be paid one and one-half (1 1/2) times the applicable straight-time
rate only for the first two (2) days of any such situation, and shall upon
the third day, be paid at the straight-time rate for the duration of the
assignment. Where the provisions of Title 10.1(a), (1), (2), (3), and (4)
or the paragraph (c) next following are applicable, such day shall not be
counted as one (1) of the premium days under this Section 6.9.
(c) In the event the employee is required to begin work in a temporary
"off schedule" assignment with less than forty-eight (48) hours notice he
shall be paid at the applicable overtime rate for all work performed on
the "off schedule" assignment between the time of notice and the
expiration of the forty-eight (48) hour period. Wherever possible,
assignment to an "off schedule" status and return to the regular schedule
shall be made in such a manner as to provide the same number of hours off
between work periods as is provided by the employee's regular schedule.
Where this is not possible and a change is made with less than the
required time interval, the difference between the amount of time off and
the required time interval shall require the payment of an additional one-
half (1/2) times the straight-time or overtime rate which may be
applicable.
(d) Upon completion of the temporary off schedule assignment, which
may include scheduled days off, the employee shall be returned to his
regular status and schedule. In all cases an assignment to an "off
schedule" status shall not operate to deprive an employee of a forty (40)
hour work week.
(e) Except for operating employees who are assigned to supplement
maintenance employees as provided in (a) above, and for employees who are
assigned to relief as provided in (a) above, the employees' regular
schedules of days of work shall not be changed.
(f) If any such situation extends beyond four (4) weeks, Company and
Union may agree to rotate the shift assignments without additional payment
of overtime for such change.
(g) The application of this Section shall in no way limit the right of
the Company to establish schedules which would provide for work hours in
excess of eight (8) on a work day, or more than five (5) days in a work
week.
6.10 "Operations Center" employees shall have work schedules as follows:
(a) They may be regularly scheduled to work any eight (8) consecutive
hours, exclusive of meal period, between 6:00 a.m. and 7:00 p.m., Monday
through Friday.
125
(b) Operations Center employees, other than those working hours as
provided in Section 6.10(a) above, may be assigned to work any eight (8)
consecutive hours between 1:00 p.m. and 12 midnight.
(c) Group schedules when required shall be developed to provide
rotation of assignments and equalization of conditions. Schedules may be
established or revised during the term of the Agreement, provided however
that such arrangements shall be first mutually agreed upon by Company and
Union.
6.11 (a) This section means that except as noted below, there is an
absolute prohibition against requiring an employee to work more than three
(3) consecutive weeks without having two (2) consecutive days off. There
is no penalty provided for a violation of the provisions of this section
since the ban is absolute.
If an employee has performed work on twenty-one (21) straight days,
the employee must be granted the next two (2) days off. If the next two
(2) days off occur on regular work days for that employee, such employee
shall, nonetheless, be granted the days off at the straight-time rate of
pay. (Added 1/1/95)
(b) Employees may work beyond the twenty-one (21) day limit only under
the following condition:
1. Any work situation involving an immediate hazard to life or
property. This does not include situations limited to a loss
of money or revenue only. (Added 1/1/95)
6.12 The work week and work hours of part-time employees shall be governed
by the following rules:
(a) Company shall notify Union of all part-time employees hired, the
work being performed and the schedule of work hours and work days, if any,
for such employees.
(b) Schedules of work hours and work days for part-time employees
which would fall within the regular work hours and work days established
in Section 6.8(a) may be established at the convenience of the Company.
(c) Schedules of work hours or work days for part-time employees which
would fall wholly or in part outside the regular work hours and work days
established in Section 6.8(a) shall be established by mutual agreement
between Company and Union.
6.13 "Shift" employees are as listed below: (Moved from Attachment V,
Exhibit D, effective 1/1/98)
Building Services Worker, Lead
Foreman, Hydro/Peaking, Working
Foreman, Scrubber, Working
Foreman, Shift, Working
Foreman, Shift, Working, Water Treatment
Operator, Assistant, Control Room
Operator, Clarifier
Operator, Control Room
Operator, Emergency Relief (Scrubber)
Operator, Emergency Relief (Steam)
Operator, Hydro/Peaking
Operator, Hydro/Peaking, Assistant
Operator, Service Utility
Operator, Utility, Scrubber
Operator, Water Plant
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Specialist, Equipment, Water Treatment
Technician, Instrument*
Technician, Shift, Instrument & Control (Pinon)
* Instrument Technicians at Valmy are designated as Service Employees.
The incumbent Instrument Technicians at Fort Churchill and Tracy
will remain as Shift Employees until such time as they bid to
another station, or if any future inequity increases are granted to
the classification of Instrument Technician.
(a) The work week for shift employees shall be regularly scheduled but
may be any seven (7) consecutive days. The normal work week of shift
employees may start on any day of the week and at any hour of the day, and
shall consist of one (1) eight (8) hour shift for five (5) days. The five
(5) work days and two (2) non-work days may be arranged in one, two, three
or four (4) week cycles. The shift employee's work day shall consist of
eight (8) consecutive hours. The starting time of such shifts are
presently established at 8:00 a.m., 4:00 p.m., and 12:00 midnight. During
the term of the Agreement, present shifts may be changed or additional
shifts added, provided however, that such arrangements shall be first
mutually agreed upon by Company and Union. The term "shift" shall be
defined as a schedule of employee's work days, non-work days, working
hours, and the arrangement of work week cycles.
(b) When generating plant operations personnel are not specifically
assigned to operations duties, they may be temporarily assigned to other
duties at the generating facilities of the Power Production Department
subject to the provisions of Section 4.3. Excluded from such assignments
shall be work involving ice fighting and the construction, repair and
maintenance of flumes.
When assigned to report to their regular generating facility, they may
be reassigned to perform duties in any occupational group established in
that facility.
The working days of operating personnel so assigned shall remain
unchanged.
The working hours of operating personnel so assigned may be changed
and consist of the hours worked by the employees in the Power Production
Department Occupational Group to which assigned.
Such change in working hours and the return to the regular operations
schedule hours shall require, after proper notice of such change of hours
or return to regular hours, twelve (12) hours off between change to
temporary hours or return to regular operations schedule hours. Where
this is not possible and a change is made with less than twelve (12) hours
off after proper notice, the difference between the amount of time off and
twelve (12) hours shall require the payment of an additional one-half
(1/2) times the straight-time or overtime rate which may be applicable.
The provisions of Section 6.9 will not apply.
(c) When generating stations are operated on a 3 shift, 24 hour basis,
the work periods of shift operating personnel shall be in accordance with
Subsection (a) above.
When generating stations are operating on less than a 3 shift, 24 hour
basis, the normal work week shall be in accordance with (a) above and the
starting time of such shifts shall begin between the hours of 5:00 a.m.
and 8:00 a.m. for the one shift, and between the hours of 1:00 p.m. and
4:00 p.m. for the other shift. Such schedules will be regularly
established and will only be used to meet peak load conditions as they
exist.
(d) An employee classified as Emergency Relief Operator shall be
regularly scheduled and shall perform the regularly scheduled assignments
for operators at substations, generating plants and water treatment
plants. He may be reassigned to any existing schedule for relief
assignments in such plants without advance notice. Such employee
127
shall not, as a result of such relief assignment, be entitled to overtime
compensation for work performed during the regularly scheduled hours of
such shift, except that, in the event he shall be required to report for
work without having had twelve (12) hours off following the end of his
last preceding work period, he shall be paid overtime compensation for any
time worked in the twelve (12) hour period following the end of his last
preceding work period. (Amended 1/1/98)
(e) (Deleted 5/1/87)
6.14 "Service" employees are as listed below: (Moved from Attachment V,
Exhibit D, effective 1/1/98)
Apprentice, Fabricator-Welder**
Apprentice, Mechanic, Plant
Apprentice, Serviceman, Customer
Apprentice, Technician, Electrical, Plant
Apprentice, Technician, Instrument
Apprentice, Technician, Lab
Coordinator, Fleet Repair/Licensing**
Electrician, Plant
Fabricator-Welder **
Fabricator-Welder, Certified**
Foreman, Communication Systems, Working
Foreman, Gas Pressure, System Working
Foreman, Lab, Working
Foreman, Machinist, Working**
Foreman, Maintenance, Working
Foreman, Shop Operations, Working**
Foreman, Technical, Working
Foreman, Utility Materials, Working***
Foreman, Utility Materials, Working (Power Plants)
Foreman, Working**
Foreman, Yard, Working
Garageman**
Helper **
Helper (Power Production Maintenance)
Machinist-Tool Repair**
Maintenanceman, Street Light
Mechanic/Machinist, Plant
Mechanic, Plant
Mechanic, Utility Fleet**
Mechanic/Welder, Plant
Operator, Gas Pressure
Operator, Yard
Operator, Yard, Senior
Parts Clerk**
Serviceman, Customer
Serviceman, Equipment
Serviceman, Water
Specialist, Water Supply
Technician, Communications Class I*
Technician, Communications Class II*
Technician, Communications Class III*
Technician, Communication Systems
Technician, Electrical, Plant
Technician, Instrument
Technician, Lab
Troubleman
128
Utilityman, Gas
Utilityman, Service
Utility Materials Specialist***
Utility Materials Specialist I***
Utility Materials Specialist, Trainee***
Utility Materials, Specialist (Power Plants)
Utility Materials, Specialist I (Power Plants)
* Future Communication Technician I, II, and III vacancies may be
posted as "Service Employee" classifications. No current
employee will be affected unless he/she voluntarily bids one (1)
of these Service job classifications.
** No current employee as of 5/1/91 will be affected unless he/she
voluntarily bids one (1) of these Service job classifications.
(Amended 1/1/98)
*** No current employee as of 1/1/98 will be affected unless he/she
voluntarily bids one (1) of these Service job classifications.
(Added 1/1/98)
(a) The normal work week for each Service Employee shall be regularly
scheduled and may be any five (5) consecutive days, starting on any day of
the week. The arrangement of work hours, work days, non-work days and
work week cycles, where applicable, shall be considered as the employee's
work schedule and shall be developed to provide rotation of assignments
and equalization of conditions.
(b) Working hours for Service Employees assigned to work schedules
providing for one-shift operations shall be either 7:00 a.m. to 11:00 a.m.
and 11:30 a.m. to 3:30 p.m., or 7:30 a.m. to 11:30 a.m. and 12:00 noon to
4:00 p.m. or 8:00 a.m. to 12:00 noon and 12:30 p.m. to 4:30 p.m. or 8:00
a.m. to 12:00 noon and 1:00 p.m. to 5:00 p.m.
(c) Schedules for two-shift operations shall be as follows: First
shift shall consist of any eight (8) consecutive hours between 7:00 a.m.
and 5:00 p.m., exclusive of a thirty (30) minute meal period. Second
shift shall consist of any eight (8) consecutive hours between 1:00 p.m.
and 12 midnight. Employees assigned to the No. 2 shift shall be allowed
necessary time to eat a meal on the job on Company time.
The Company agrees to schedule Service Employees on the No. 1 shift to
take lunch four (4) hours after his regular starting time.
(d) Group schedules when required shall be developed to provide
rotation to assignments and equalization of conditions. Schedules may be
established or revised during the term of the Agreement, provided however,
that such arrangements shall be first mutually agreed upon by Company and
Union.
(e) New work schedules may be established and present schedules may be
revised during the terms of the Agreement, provided, however, that such
arrangements shall be first mutually agreed upon by Company and Union.
6.15 (a) "Office Service" employees are listed below: These employees
may be regularly scheduled to work any eight (8) consecutive hours,
exclusive of a meal period, between 6:00 a.m. and 12:00 midnight, Monday
through Friday.
Clerk
Clerk, Cash Processing, Senior
Clerk, Print Shop
Foreman, Customer Services, Working
Foreman, Distribution, Working
Foreman, Meter Reader, Working-Reno
129
Messenger, Outside
Meter Reader-Collector
Meter Reader-Collector, Trainee
Operator, Data Entry
Operator, Data Entry, Trainee
Operator, Data Entry, Senior
Operator, Mail Inserter
Operator, PBX
Operator, Phototypeset
Representative, Accounts Payable
Representative, Clerical
Representative, Credit & Collections
Representative, Customer Services
Representative, Customer Services, Senior
Serviceman, Customer (District)
Specialist, Clerical
Specialist, Meter Data
(Amended 1/1/98)
(b) The Company will schedule Office Service employees to take lunch
during the period from three (3) hours after the employee's regular
starting time to five (5) hours after his regular starting time. Office
Service employees, with consent of the Supervisor, may exchange lunch
periods on any given day.
(c) The provisions of Section 6.4 shall not apply to employees covered
by this section. Schedules of Office Service Employees may be established
or revised during the term of the Agreement, provided, however, that such
arrangements shall be first mutually agreed upon by Company and Union.
(Amended 5/1/80)
(d) Office Service employees may change their working hours and/or
lunch period, with prior supervisory approval, by up to two (2) hours
within the same work day with no penalty to the Company. This allows the
employee to schedule personal time off while maintaining their regularly
scheduled number of work hours, i.e. making time up within the same day of
no more than two hours.
A request to change an employee's work schedule must be arranged with
the supervisor at least one day prior to the change, other than for
emergency situations.
When an employee has requested personal time off, the employee has the
option to make up time within the same day by adjusting his or her work
schedule, or may use vacation or floating holiday hours, or sick leave
(under Title 15 or Family Sick Leave guidelines), or may elect time off
without pay. A minimum of 1/2 hour lunch period must be taken in
accordance with Section 6.15, unless required by operational needs.
(Moved from Attachment III, Letter of Understanding #1, effective
1/1/98)
TITLE 7
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SHIFT PREMIUM
7.1 All eight (8) hour work periods regularly scheduled to begin at 4:00
a.m. or thereafter, but before 12:00 noon shall be designated as first
shifts. All eight (8) hour work periods regularly scheduled to begin at
12:00 noon or thereafter, but before 8:00 p.m., shall be designated as
second shifts. All eight (8) hour work periods regularly scheduled to
begin at 8:00 p.m. or thereafter, but before 4:00 a.m., shall be
designated as third shifts. No shift premium shall be paid for the first
shift. A premium of $1.00 effective 1/1/98, ($1.05 effective 1/1/99, and
$1.10 effective 1/1/00) shall be paid for work performed in the
130
second shift. A premium of $1.20 effective 1/1/98, ($1.25 effective
1/1/99, and $1.30 effective 1/1/00) shall be paid for work performed in
the third shift. (Amended 1/1/98)
7.2 When a shift premium is applicable to time worked at the overtime rate
of pay, the overtime rate shall be applied to the applicable shift
premium.
7.3 Shift premiums shall be payable only for hours actually worked, and
shall not be paid for non-work time such as holidays, sick leave,
vacations, etc.
7.4 Shift premium shall be paid for meal and travel time at the applicable
overtime rate. (Added 5/1/83)
TITLE 8
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LEAVES OF ABSENCE
8.1 "Leaves of Absence" and "Leaves" signify approved absence without pay.
A leave shall commence on and include the first work day on which an
employee is absent and shall terminate upon the agreed-to date of
expiration of the leave of absence. An individual's seniority shall not
be affected, except for personal leaves of thirty (30) or more calendar
days. The employee's status as a regular employee shall not be impaired
by a leave of absence and the conditions of the leave shall be governed by
the provisions herein applicable to the type of leave granted. Any
demotion of an employee caused by a reinstatement of an employee who has
been absent on an approved leave of absence shall be governed by the
Demotion and Layoff Procedure. (Amended 1/1/95)
Military Leave
--------------
8.2 A leave of absence shall be granted to employees who enter the Armed
Forces of the United States, provided, however, that any such leave of
absence and the reinstatement of any such employee shall be subject to the
terms of any Act of Congress which provides for re-employment. The
seniority rights for employees who are members of the Armed Forces shall
accrue while they are absent on military duty.
Union Leave
-----------
8.3 Company shall, at the written request of Union, grant a leave of
absence without pay to an employee who is appointed or elected to any
office or position in the Union and whose services are required by the
Union, provided adequate arrangements can be made to take care of the
employee's duties, without undue interference with the normal routine of
work. Such Union leave shall be subject to the following conditions:
1. The term shall be for a fixed period not to exceed three (3)
years. The period shall be stated in the request for leave.
2. The employee shall be returned to employment in his same
classification held at the time the leave was granted and at the
same headquarters at which he was last employed, or at the nearest
headquarters to that location in which a vacancy exists.
3. The seniority of an employee who is granted a leave of absence
under the provisions of this Title shall accrue during the period
of such leave.
(Amended 1/1/98)
Personal Leave
--------------
8.4 Leaves of absence for urgent, substantial personal reasons may be
granted to regular employees provided that mutual agreement is reached
thereon by Company and employee, and subject to the following conditions:
131
1. The leave will not exceed a period of six (6) months, or a six (6)
month extension thereof, but in no case shall any leave or
extension be granted which extends the total leave of absence
beyond a period of one (1) year.
2. The purpose for which the leave is granted will not lead to the
employee's resignation.
3. If an employee fails to return immediately on the expiration of the
leave of absence, or if he makes application for unemployment
benefits, or if he accepts other employment while on leave, he
shall thereby forfeit the leave of absence and terminate his
employment with the Company.
4. An employee returning from an authorized leave of six (6) months or
less shall be reinstated to his former classification and
headquarters location.
5. An employee returning from an authorized leave exceeding six (6)
months shall be reinstated to his former classification and
headquarters provided a vacancy exists in his former
classification. If no such vacancy exists, the employee shall be
reinstated in a lower classification thereto in the same Line of
Progression. If such reinstatement in a lower classification is
required under this section, the employee will be given
preferential consideration over other employees in the filling of
vacancies in higher classifications in the line of progression
until such time as he is returned to his former classification or
rate of pay. (Amended 5/1/82)
8.5 The Company will not consider the bid of an employee on a leave of
absence. (Added 5/1/87)
Family and Medical Leave
------------------------
8.6 Leaves for care of child, spouse, parent or serious illness of
employee in accordance with the Federal Family and Medical Leave Act.
(a) Employees are eligible if they have attained regular status and
have at least six (6) months of continuous service with the Company when
the leave begins. Part-time employees are eligible if they have attained
regular status and have worked 1040 hours.
(b) Eligible employees can take six (6) months unpaid leave of absence
for a qualifying reason.
(c) Employees should give thirty (30) days advance written notice of
intent to take leave. The employee should make a reasonable effort to
schedule his/her leave so as not to interrupt Company operations. If an
unforeseeable event occurs, employees should give notice as soon as
practicable.
(d) An employee returning from an authorized leave under Section 8.6
will be reinstated to his/her former classification and headquarters
location.
(e) Employees may be required to provide medical certification from a
qualified health care provider.
(f) Leave may be denied if adequate notification or proper medical
certification is not provided as required.
(Added 1/1/95)
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TITLE 9
-------
INCLEMENT WEATHER PRACTICE
9.1 Regular and probationary employees who are unable to work in the field
because of inclement weather, "red" air quality days, as ordered by any
air quality regulatory agency, or other similar causes, shall receive pay
for the full day, provided they physically report for duty at their
regularly assigned reporting place and are in condition to perform their
work. However, they may be held pending emergency calls, and may be given
first aid, safety or other instructions, or they may be required to
perform miscellaneous work in the warehouses or other sheltered locations.
Temporary employees under the same conditions shall receive pay for time
they worked or are held on Company property, or ordered to stand-by. They
shall not be paid in any event for less than four (4) hours.
When "red" air quality days occur, strenuous work activity shall cease
within affected areas except when emergencies, and/or public safety or
welfare are involved, and in those instances, the Company shall provide
appropriate respirators for those employees required to work. (Added
1/1/95)
9.2 The employee in charge at the job site shall be responsible for
determining whether weather conditions warrant cessation of outside work.
In arriving at a decision with respect to weather conditions, the
following shall be taken into account: (Amended 1/1/98)
1. Employee safety
2. Operating requirements
3. Undue hazards
4. Service to the public
5. Job site working conditions
6. Anticipated duration of time required to leave unfinished job in
safe condition
7. Anticipated duration of inclement weather
8. Distance from job site to operating headquarters
9. Any other pertinent factors which in his opinion should be taken
into account in reaching his decision relative to stopping or
continuing work. (Amended 1/1/98)
TITLE 10
--------
OVERTIME
10.1 (a) Overtime is defined as (1) time worked in excess of forty (40)
hours in a work week, (2) time worked in excess of eight (8) hours on a
scheduled work day, (3) time worked on a non-work day, (4) time worked on
a holiday, and (5) time worked outside of regular work hours on a work
day. Overtime shall be computed to the nearest quarter hour.
(b) Prearranged overtime shall be defined as overtime for which notice
has been given prior to the employee's release at the end of the last
regularly scheduled work period or an extension thereof, of no more than
two (2) hours on that work day.
133
1. Company may extend prearranged overtime as necessary.
(Amended 5/1/81)
(c) Callout overtime shall be defined as overtime for which prior
notice has not been given the employee as per 10.1(b). (Added 5/1/81)
(d) Overtime work should be assigned in accordance with the following
principles, which are intended to guide the actions of both Supervisors
and employees:
1. The nature of the utility business requires the working of
overtime and is reflected in the language of this Agreement.
2. The right to determine the importance and necessity of any
work assignment rests within the rights of Management.
3. Refusal shall be supported by a valid reason.
4. A reasonable and sympathetic approach shall be taken by
Supervision, with employees receiving as much advance notice
as possible in order to allow them to alter their plans.
5. Extenuating circumstances and health of the employees shall
be considered.
6. The time necessary to complete the work assignment and the
availability and practicability of the use of other employees
shall be considered.
7. Above all, the rule of reason shall be used by employees and
Supervisors.
10.2 If an employee is called out by a responsible authority of the Company
outside the employee's regularly scheduled hours and works less than two
(2) hours, the employee shall receive not less than two (2) hours to be
compensated at the applicable overtime rate, for each such call out,
provided the employee has finished his first call out and has returned to
his home. If the employee is sent on another job or jobs prior to
returning home from the initial call without a break in work time it shall
be considered a single call out. It shall be the policy of the Company to
avoid a second assignment except those of such urgency as would ordinarily
warrant a call out, but the determination of such urgency shall be
determined solely by the Company Representative dispatching the call.
Such minimum call out pay provision shall not apply and the overtime
payment shall be made only for actual work time outside regular hours
where:
1. The call-out is less than two (2) hours prior to his regular
starting time and the work extends into the regular work day.
2. The call-out is an extension of the regular work day or the
employee has not left the plant premises when called. Any employee
required to keep a radio-equipped Company vehicle at home when off
duty shall, upon completion of a tour of duty, proceed directly to
his home. Any call-out while in transit shall be considered an
extension of the regular day without interruption in time. A call-
out received after reaching home and signing off the radio shall be
considered a separate call-out. (Amended 5/1/81)
10.3 (a) Overtime shall be divided as equally as is practicable over
the course of the payroll year, among those employees
qualified and available within a classification and
headquarters. All overtime for individuals in each
headquarters shall be posted every 30 days. Employees new
to a
134
classification or district or department shall be averaged
into that district or Department's year to date overtime
list. (Amended 1/1/98)
(b) Deviation from the distribution of overtime as stated in
Section 10.3 (a) must be established in writing and agreed
to by both Company and Union. (Added 1/1/98)
(c) Deviation from the distribution of overtime as stated in
Section 10.3 (a) will be allowed in select cases where
employees within classification possess special skills
(certifications, licenses, or training) unique to that job
requirement. (Added 1/1/98)
10.4 Nothing contained herein shall be construed to require the payment of
overtime compensation under more than one (1) of the foregoing definitions
for a single period of operation.
10.5 (a) Overtime compensation at the rate of one and one-half (1 1/2)
times the straight rate of pay shall be paid to employees for overtime as
defined in Section 10.1 (a) (1), (2), (3), (4), and (5) and Section 10.1
(b). (Amended 5/1/81)
(b) The time worked in excess of sixteen (16) consecutive hours (which
includes unpaid meal period) and continuing until the employee is
dismissed from such work shall be paid at the rate of two (2) times the
employee's straight rate of pay. (Amended 5/1/82)
(c) Prearranged overtime worked in excess of twelve (12) consecutive
hours and continuing until the employee is dismissed from such work shall
be paid at the rate of two (2) times the employee's straight rate of pay.
(Added 5/1/81)
(d) If, following an employee's dismissal from work or on an
employee's non-work day, the employee is called out for work, he shall be
paid at two (2) times his straight rate of pay for all work performed
outside his regular work hours or on a non-work day. (Added 5/1/81)
(e) (Deleted 5/1/91)
10.6 (a) Any regular or probationary employee who, as the result of a
call out or a prearranged work assignment, has worked at overtime rates
between his regular quitting time and his next regular starting time on
regular work days, shall be entitled to a rest period under the following
conditions:
1. If he has worked eight (8) hours or more at overtime rates,
he shall be entitled to a rest period of nine (9) consecutive
hours upon completion of such overtime work.
2. If he has worked a minimum of two (2) hours at overtime rates
and such work extends beyond nine and one-half (9 1/2) hours
after his regular quitting time, he shall be entitled to a
rest period of nine (9) consecutive hours upon completion of
such overtime work.
3. If he has worked a minimum of two (2) hours at overtime rates
and such work commences later than nine and one-half (9 1/2)
hours after his regular quitting time, he shall be entitled
to a rest period of nine (9) consecutive hours upon
completion of such overtime work. The above provisions shall
not apply if such work commences later than four (4) hours
before his next regular starting time.
4. Rest periods, as provided above, shall commence upon
completion of the employee's overtime work or the start of
his regular work hours, whichever occurs first.
135
(b) The provisions of Section 10.6(a) shall apply to an employee who
works at overtime rates on his regularly scheduled day off or on a holiday
observed by the Company as follows:
1. The overtime must have been worked immediately preceding his
regular starting time on the next regularly scheduled work
day, and
2. During the corresponding time period normally observed by him
as off-duty hours on consecutive work days.
(c) If the employee becomes eligible for a rest period in accordance
with any of the conditions above, and the Company requires the employee to
continue work into his regular work period, the employee shall be paid at
two (2) times the standard rate of pay for all hours worked until he is
given a rest period. If, however, the employee is not entitled to a rest
period, the employee shall revert to the straight-time rate at the
beginning of his regular work period irrespective of whether he continues
to work at said overtime work or changes to regular duties.
(d) If the employee becomes eligible for a rest period and is called
back to work during his nine (9) hour rest period, the employee shall be
paid overtime compensation at the rate of pay equivalent to two (2) times
the standard rate of pay for all work performed until he has been relieved
from duty for at least nine (9) consecutive hours, and a new rest period
will commence at the conclusion of such work.
(e) Should a rest period provided for above extend into his regular
work hours, the employee may be required to report for work at the end of
said rest period for the remainder of that regular work period. The
employee shall be paid at straight time for any portion of his regular
work period which he is allowed to take as a rest period. He will in any
event be paid at the straight-time rate for the said regular work period.
TITLE 11
--------
HOLIDAYS
11.1 It shall be the policy of the Company to perform only necessary work
on any of the holidays observed by the Company. The necessity for holiday
work and the number and choice of employees required to work on the
holiday shall be determined by the Company.
11.2 For regular and probationary employees, "holiday" as used herein is
defined as a day on which each of the following holidays is observed by
the Company:
New Year's Day
Presidents' Day
Memorial Day
Independence Day
*Floating Holiday #1
*Floating Holiday #2
*Floating Holiday #3
Labor Day
Nevada Admission Day
Thanksgiving Day
Day After Thanksgiving
Christmas Day
*An employee, during his first payroll year of employment, shall be
entitled to Floating Holidays in accordance with the following table:
(Amended 1/1/98)
Hired From To Inclusive Floating Holidays
- ---------- ------------ -----------------
136
Beginning of Payroll Year April 30 3
May 1 August 31 2
September 1 End of Payroll Year 1
Employees shall observe their floating holidays on a workday before
the end of the payroll year at the convenience of the Company and the
Company will not pay in lieu of unused floating holidays. In the event an
employee is prevented from taking his floating holidays due to operational
requirements, he shall be entitled to defer the floating holidays into the
next ensuing payroll year. (Amended 1/1/98)
11.3 If a holiday is observed by Company on a regular or probationary
employee's non-working day, the employee shall, during the ensuing twelve
(12) months be given a work day off with straight-time pay at the
convenience of the Company. The employee may have the option of foregoing
the work day off and accepting regular straight-time pay for the holiday
if he so desires.
11.4 If a holiday is observed by Company on a regular or probationary
employee's scheduled non-work day and the employee works on that day, he
shall be paid at the applicable overtime rate for all work performed plus
his holiday allowance.
11.5 If a holiday is observed by Company on a regularly scheduled work day
of a regular or probationary employee and he performs no work that day, he
shall be given a holiday allowance equal to his regular straight-time pay
for the day.
11.6 If a holiday is observed by Company on a regularly scheduled work day
of an employee and he works that day, the employee shall have the option
to:
1. be paid the applicable overtime rate for all work performed plus
his holiday allowance of eight (8) hours straight-time pay, or
2. be paid the applicable overtime rate for all work performed and
carry over the holiday, to be observed at another time, subject to
the provisions of 11.3 of the Agreement. (Amended 5/1/83)
11.7 (a) If a holiday falls on a Saturday, the Company shall observe the
holiday on Friday. If a holiday falls on a Sunday, the Company shall
observe the holiday on Monday.
(b) If a holiday falls on a Saturday or Sunday, employees regularly
scheduled to work that day shall observe the actual holiday rather than
the Company observed holiday.
11.8 If an employee takes off any of the days observed by the Company as
holidays and is absent without bona fide reason on the work day either
immediately preceding or following such day observed by the Company as
holiday, he shall not receive holiday pay.
TITLE 12
--------
VACATIONS
12.1 All active employees except temporary employees begin accumulating
vacation time upon employment. Vacation time shall be computed from the
employee's continuous service date and will be credited bi-weekly.
(a) An employee's continuous service date shall be his/her most recent
date of hire which may be adjusted subject to the provisions of Title 8.
137
(b) When an employee's accrual rate changes as stated in 12.2 below,
the new accrual rate will be effective at the beginning of the pay period
in which the continuous service date falls. (Amended 5/1/87; Effective
1/1/88)
12.2 Full-time employees except temporary employees earn vacation time as
follows and subject to the provisions of Title 20:
(a) First (1st) through Fifth (5th) year of continuous service:
From one (1) day through sixty (60) months from your continuous
service date you begin accruing 3.076 hours biweekly for a total of ten
(10) days' vacation per year.
(b) Sixth (6th) through Twelfth (12th) year:
At the completion of five (5) full years (60 months) from your
continuous service date you begin accruing 4.615 hours biweekly for a
total of fifteen (15) days' vacation per year.
(c) Thirteenth (13th) through Nineteenth (19th) year:
At the completion of twelve (12) full years (144 months) from your
continuous service date you begin accruing 6.153 hours biweekly for a
total of twenty (20) days' vacation per year.
(d) Twentieth (20th) through Twenty-sixth (26th) year:
At the completion of nineteen (19) full years (228 months) from your
continuous service date you begin accruing 7.692 hours biweekly for a
total of twenty-five (25) days' vacation per year.
(e) Twenty-seven (27) or more years:
At the completion of twenty-six (26) full years (312 months) from your
continuous service date you begin accruing 9.230 hours biweekly for a
total of thirty (30) days' vacation per year. (Amended 5/1/91; Effective
4/28/91)
12.3 Each employee who has completed five (5), ten (10), fifteen (15),
twenty (20) years, etc., of continuous service with the Company will be
credited with five (5) days vacation (40 hours) in the pay period in which
the continuous service date falls. (Amended 5/1/87; Effective 1/1/88)
12.4 Part-time employees except temporary employees shall earn vacation
time as stated in Section 12.2 and 12.3, but adjusted as follows and
subject to the provisions of Title 20.
(a) Vacation time credits shall be prorated as outlined in Section
3.5. (Amended 5/1/87)
12.5 An employee must complete six (6) months of continuous service to be
eligible to take vacation. After completion of six (6) months of
continuous service, vacation may be taken as earned, subject to
operational needs of the Company and by mutual agreement of Company and
employee. (Amended 5/1/87)
12.6 Vacation time shall be paid at the straight-time rate of pay.
(Amended 5/1/87)
12.7 All vacation shall be taken on consecutive days unless otherwise
mutually agreed upon between Company and the employee.
(a) An employee may, upon his request, and with the consent of his
Supervisor, take a vacation of less than five (5) consecutive work days,
providing that:
138
1. Such request is submitted as far in advance as is possible.
2. Such request is no less than 1/4 hour. (Amended 1/1/98)
12.8 Earned vacation which is not used by an employee may be allowed to
accumulate. Such vacation may be carried over from one (1) payroll year
to the next following payroll year provided that the carryover vacation
does not exceed a maximum amount based on years of continuous service as
stated below: (Amended 1/198)
Years of Continuous Service Maximum Carryover Vacation
--------------------------- --------------------------
1st through 5th year 20 days or 160 hours
6th through 12th year 30 days or 240 hours
13th through 19th year 40 days or 320 hours
20th through 26th year 50 days or 400 hours
27 years or more 60 days or 480 hours
(a) All vacation carried over from one (1) payroll year to the next
following payroll year in excess of the maximum as stated in 12.8 above
will be forfeited. (Amended 1/1/98)
12.9 When an employee is required to carry over a vacation from one (1)
payroll year to the next payroll year due to an approved absence from
work because of an extended illness or industrial injury, such vacation
will be taken at the convenience of the Company and at such time as not
to interfere with vacation schedules of other employees. Such vacation
will not be subject to forfeiture as stated in 12.8(a). (Amended 1/1/98)
12.10 When an employee's approved scheduled vacation is canceled by the
Company due to unforeseen emergency conditions, or an employee foregoes
his/her vacation for the convenience of the Company, the employee shall
be allowed to reschedule his vacation by mutual agreement between Company
and the employee. If such vacation must be carried over to the next
following payroll year, it shall not be subject to forfeiture as stated
in 12.8(a). (Amended 1/1/98)
12.11 If a holiday is observed by the Company on a work day within an
employee's vacation period, the holiday shall not be considered a
vacation day. (Amended 5/1/87)
12.12 Company shall not require an employee to take his vacation in lieu of
sick leave or leave of absence on account of illness. (Amended 5/1/87)
12.13 Regular and probationary employees whose employment with the Company
has been terminated for any reason shall receive vacation pay for all
accrued vacation time in lieu of any vacation allowance. (Amended
5/1/87)
12.14 Before April of each year, there will be a sign-up in each department
so that the employees may designate their choice of vacation periods.
The Company shall prepare the annual vacation schedule on the basis of
such sign-up, effecting whenever possible the selections of the employees
within each classification in the order of Company seniority.
(a) If, in accordance with 12.7, an employee has arranged to take his
vacation in two (2) or more periods the use of seniority as a factor in
securing preferential consideration over other employees shall be limited
to one (1) of such periods.
(b) Service employees shall be allowed to include one (1) night shift
in their first choice vacation period. (Amended 5/1/87)
139
12.15 Vacation lists shall be posted on or before April 15 of each year.
Scheduled vacation shall be taken as posted unless otherwise agreed to by
Company. Any request for changes in scheduled vacation shall be
submitted by the employee in writing and subject to written approval by
Company. Such request shall include the alternate date(s) proposed by
the employee. (Amended 5/1/87)
TITLE 13
--------
SAFETY
(Moved from Attachments, effective 1/1/98)
Working SAFELY prevents suffering, loss of wages to ourselves and
families, and damage to property and injury to others.
An important part of everyone's acceptance of employment is to accept
responsibility to do his work in accordance with the latest safety practices and
to cooperate with other employees with whom he works to carry out safety rules
and practices. Therefore, every employee of this Company is automatically
pledged to study the safety rules and put them into effect for every applicable
circumstance.
Every employee must be familiar with the special safety rules and
regulations pertaining to his particular classification, in addition to the
general overall safety rules.
13.1 Company shall make reasonable provisions for the safety of employees
in the performance of their work. Union shall cooperate in promoting the
realization of the responsibility of the individual employee with regard
to the prevention of accidents.
13.2 The Company will draft reasonable safety rules for employees and it
will be the responsibility of all employees to observe these rules. A
copy of the rules will be furnished the Union.
13.3 The Company shall hold not less than eight (8) safety meetings each
year at practical points throughout the system. When practicable, such
meetings shall be scheduled to permit as many employees as possible to
attend. Employees shall be required to attend safety meetings except for
good cause. The programs of the safety meetings shall be arranged by the
Company and in general will cover material appropriate to each group.
13.4 The Company will promptly notify the Union Business Representative of
any accident resulting in death or serious injury to an employee. The
Union Business Representative of Local 1245 shall be a member of the
Company Accident Prevention Board. (Amended 1/1/98)
13.5 The Company and Union recognize the importance of timely, well-
documented investigative reports for any serious accident/incident
determined to be worth investigating. To this end, the Company and Union
agree that a Committee comprised of not more than twelve (12) members of
the Bargaining Unit and twelve (12) members of Management will be
selected by their respective parties to receive special training from the
Safety Department in the appropriate methods of conducting accident
investigations -- such training to be provided on Company time at Company
expense.
Thus, when an accident/incident occurs, there will be a trained group
of personnel from whom to select the Joint Accident Investigating
Committee members as described in the remainder of this section.
Selection to serve as a member of the Joint Accident Investigating
Committee shall be based on the knowledge and experience of the
individual committee members so that, to the extent practicable, the
Committee will be comprised of members experienced in the field of work
in which the accident/incident
140
occurred. In no case shall the members of the Joint Accident
Investigating Committee be selected from the reporting place in which the
accident/incident has occurred.
At the request of either the Company or the Union, any
accident/incident of a serious nature shall be investigated by a Joint
Accident Investigating Committee. The Joint Accident Investigating
Committee shall consist of not more than four (4) employees, two (2) of
whom shall be appointed by the Company and two (2) by the Union.
If such investigation is requested by the Company, the Company will
pay wages at the appropriate hourly wage rate, for approved hours so
worked by the Union committee members. Normal out of pocket expenses
required for the proper conduct of the investigation will also be paid by
the Company.
If such investigation is requested by the Union, the Company will not
be liable for any lost wages or expenses incurred resulting from the
Union members participation in the investigation.
After investigating a serious accident/incident, the Joint Committee
may, at its discretion, file a joint or separate report or reports with
the Company covering its recommendations for prevention of the recurrence
of accidents of similar nature. It is understood and agreed that the
Company is not obligated or required to accept the committee's
recommendations. If the Company accepts or rejects any or all such
recommendations, Company will give written explanation to the Joint
Accident Investigating Committee. (Amended 1/1/98)
13.6 A Department Safety Committee shall be established consisting of three
(3) non-Supervisory employees. A "chairman", "co-chairman" and "member"
shall be selected by the members of the committee. Each year the
chairman moves off the committee, the co-chairman moves to chairman, and
the member becomes co-chairman, and a new member will be appointed. In
establishing said committee, it is specifically recognized and
acknowledged that the employer is obligated to provide to the employees a
safe and healthy place of employment and that the operation and/or
establishment of the aforementioned committee shall in no way relieve the
employer of that obligation. The Department Safety Committee shall be
established to function in the prevention of accidents by ascertaining
unsafe working conditions and recommending measures to be taken for
correction thereof. Such recommendations shall be in the form of written
reports, copies of which will be sent to the appropriate Supervisors,
Safety Manager and each member of the Safety Committee. Within ten (10)
working days from receipt of such recommendations, a written reply from
the Manager will be returned to the Chairman of the Committee with a copy
to the Safety Manager. There shall be as many such Committees in each
district as may be warranted by the extent of the territory of such
district and the number of employees therein. District Supervisors and
Department Heads shall make appointments to the Safety Committees for
their respective districts and departments. Union shall have the right
to suggest names for appointment to such committees. In April and
October each Committee shall make inspections of Company's properties,
vehicles, equipment, and activities in its designated territory. Members
of such committees will have time off with pay for the purpose of making
said inspections and shall be reimbursed by Company for expenses incurred
therefore.
13.7 The Company Safety Manager or their representative will meet with
the Department Safety Committee at such times and places as may mutually
be agreed upon. At such meetings the Department Safety Committee may
submit suggestions to Company concerning the revision and enforcement of
safety rules. (Amended 5/1/82)
13.8 If the Company requires any employee to wear steel-toed safety shoes (as
defined in ANSI Standard Z.41), the Company will provide the shoes. The
employee is then required to wear in the performance of his duties,
steel-toed safety shoes recognized as such by ANSI Standard Z.41. (Added
5/1/91)
141
TITLE 14
--------
UNION ACTIVITY
14.1 The Union will use one-half (1/2) of the Company's regular bulletin
boards and Company shall designate by lettering the portion of the Board
reserved for Union use.
14.2 The Company shall not discriminate against an employee because of his
or her membership in the Union or his or her activity on behalf of the
Union, and the Union agrees not to discriminate against any employee
because of his non-affiliation with the Union.
14.3 The Union's use of bulletin boards shall be limited to the posting
thereon of official notices of meetings and similar matters relating to
official Union business, and Union shall not post thereon any matter
relating to the solicitation of employees to join Union or the collection
of dues, or any matter derogatory to Company.
14.4 At the request of the Union, the Company shall issue a temporary pass,
renewable yearly, to any representative of the Union authorizing him to
enter any Company property where any employee within the Bargaining Unit
is employed.
14.5 All employees hired by Company in the State of California after May 1,
1990 shall after thirty (30) days of employment (1) become a member of
the Union; or (2) in the alternative, an employee must tender a
registration fee to the Union in such an amount as the Union may
prescribe (but in no event to exceed the initiation fee required of Union
members) and shall tender, monthly, an agency fee as established by the
Union in an amount not to exceed the amount of the monthly dues and per
capita fees required of BA members in his wage rate.
14.6 (a) APB Member: It has been agreed that the I.B.E.W. Business
----------
Representative will become a member of the Accident Prevention
Board (APB). (Amended 1/1/98)
(b) E-Mail: E-Mail will be made available to the Union for Union
------
communications.
(c) New Employee Orientation: I.B.E.W. Business Representative will
------------------------
be allowed to participate in the New Employee Orientation.
(Moved from Attachment III, Letter of Understanding #2,
effective 1/1/98)
TITLE 15
--------
SICK LEAVE
15.1 A regular employee shall, in addition to any accumulated unused sick
leave with pay to which he may be entitled as of May 1, 1968, also be
entitled to accumulate further unused sick leave with pay at the rate of
one (1) day of sick leave for each month worked subsequent to May 1, 1969,
and calculated biweekly. An unlimited number of working days of sick
leave may be accumulated in this manner, subject to the provisions of
Section 20.1. (Amended 5/1/86)
15.2 The Company may require satisfactory evidence of an employee's illness
or disability before sick leave will be granted. If it is found that the
employee is using sick leave for
142
reasons other than a bona fide personal sickness or disability, said
employee shall forfeit all sick leave accumulated up to that date. As soon
as an employee determines that he will be unable to report for work, he
must notify his Supervisor or arrange for his Supervisor to be so
notified. Such notification must be provided prior to normal starting
time. In the event an employee is unable to determine when he will be able
to return to work, he must, on each day of his illness or disability,
notify his Supervisor that he will be unable to report for work. When the
employee does become aware of the date when he will be capable of
returning to work, he must give as much advance notice of this fact as
possible to the Supervisor. Lack of notification will result in denial of
sick pay benefits.
15.3 If a holiday is observed by the Company on a work day within the sick
leave period of an employee who is entitled to holidays off with pay, the
holiday shall not be charged to the employee's sick leave (see 11.5).
Except as provided in Section 15.4, nothing in the foregoing Title
shall be interpreted to entitle the employee to sick leave while on
vacation, temporarily laid off by the Company, upon severance of
employment, or while receiving industrial compensation.
15.4 If an employee is confined to a hospital during his vacation period,
upon request he will be granted sick leave for the period of confinement.
15.5 (Deleted 5/1/83)
15.6 (Deleted 5/1/83)
15.7 (Deleted 5/1/83)
15.8 Sick leave time may be granted in 1/4 hour increments. (Added 1/1/98)
15.9 Sick Leave Payoff (Moved from Attachment III - Letters of
-----------------
Understanding #2, 1/1/98)
Pursuant to the agreements reached during 1983 General Negotiations
relative to the deletion of Sections 15.5, 15.6 and 15.7, Title 15, the
following applies to payback of unused sick leave:
A. The eligibility requirements and future payoffs will be based on
the following guidelines:
1. An employee whose years of continuous service plus age total
sixty-five (65) or more shall upon retirement or death be paid
for 40% of his unused sick leave.
2. An employee who terminates his employment with the Company
shall be paid for 20% of his unused sick leave provided he has
a minimum of ten (10) years' continuous service.
3. Any employee who is terminated by the Company for
disciplinary reasons shall receive NO pay for unused sick
leave.
4. In the event an employee dies leaving unused sick leave,
payback under the provisions of item 1 or 2 above shall be
paid to the beneficiary designated in the employee's Company
sponsored Group Life Insurance Policy, or if no such
beneficiary is designated then to his or her estate.
B. The hours accrued between date of hire and the date of ratification
will be "frozen" and will be the only hours included in the payoff
calculation.
143
C. Payoffs will be based on the provisions of Paragraph A, items 1 and
2 above.
D. The rate to be used for unused sick leave payback in Paragraph A,
items 1 and 2, shall be the employee's final average pay as outlined
in the terms of the Retirement Plan.
E. Employees who terminate prior to meeting the eligibility
requirements of Paragraph A above will not receive any payback.
F. Employees transferring out of the Bargaining Unit will not be
eligible for any payback.
G. If an employee uses any part of the "frozen" hours, the payoff
calculation will be based on the hours remaining at the time of
retirement or termination.
H. An employee may replace sick leave used from his "frozen" hours
from future sick leave accumulation; however, under no circumstances
will the employee be allowed to replace more than those sick leave
hours originally "frozen". In other words, the hours "frozen" as of
September 6, 1983, will never be increased.
15.10 Family Sick Leave Program (Moved from Attachment III - Letters of
-------------------------
Understanding #7, effective 1/1/98)
The parties, in an effort to meet the needs of employees while
maintaining sick leave usage at an acceptable level, hereby agree to
the following:
A. Employees may be granted up to thirty-two (32) hours sick leave
per payroll year (assuming sufficient hours of accrued sick leave)
for immediate family illness/emergency. The accrual rate remains
unchanged. (Amended 1/1/98)
B. Family illness/emergency is any situation involving the employee's
immediate (as defined in the Company's funeral leave policy) family
requiring the employee's personal attention which cannot be attended
to outside normal work hours.
C. Family sick leave time may be granted in 1/4 hour increments.
(Amended 1/1/98)
D. Proven abuse will be handled pursuant to the provisions of Section
15.2
E. Employees at any stage of progressive discipline for attendance
related problems are not eligible.
F. It is recognized that this program does not provide an additional
benefit to employees. Time is provided, as described above, at the
sole discretion of the Supervisor.
G. The Company will communicate this program to Supervisors in a
manner designed to foster consistency and understanding. (Amended
1/1/95)
H. Family sick leave usage will not be a consideration in employee
performance appraisals. (Added 1/1/98)
TITLE 16
--------
SENIORITY
16.1 There shall be two (2) types of seniority, namely, Occupational Group
Seniority and Company Seniority. Company Seniority shall be defined as
total length of continuous service with the Company as determined in
accordance with 3.7. Company Seniority shall
144
be used as the basis for determining such benefits as sick leave,
retirement, vacations and protection against demotion and lay-off.
Occupational Group Seniority shall be defined as the total length of
service in one (1) of the occupational groups shown in Exhibit C attached
hereto. Occupational Group Seniority shall be used in determining the
preferred bidder within an occupational group and line of progression in
the sequence outlined in 16.5. Attached hereto and made a part hereof is
Exhibit C, an appendix outlining the "Occupational Groups" and "Lines of
Progression" to be used for promotion and demotion. It is understood that
the Occupational Groups have no relationship to "departments" as used in
prior contracts between the parties nor shall Exhibit C be construed to
limit in any way the right of the Company to choose any form of
organizational arrangement it prefers.
16.2 Company shall make up and post on bulletin boards, a Company seniority
list and an occupational seniority list every six (6) months. If no
opposition shall be made in writing within thirty (30) days after posting,
the respective seniorities shall be considered as correct as listed. A
copy shall be furnished the Union.
16.3 (a) The seniority status of employees as of July 1, 1959, shall be
that shown on the personnel records of the Company, and seniority shall
accumulate in the occupational group where then employed.
(b) An employee who, after May 1, 1974, bids or is transferred from
one occupational group to another or is transferred out of the Bargaining
Unit shall, for a period of six (6) months following the date he is
awarded his new job in the new occupational group, or out of the
Bargaining Unit, be assumed to be continuing in the occupational group
from which he transferred and shall have no seniority in the group to
which he transferred. At the end of the six (6) month period specified,
he shall be credited with six (6) months of seniority in the new group,
and shall retain in the group from which he bid or was transferred, the
seniority he had earned in that group as of the beginning of the six (6)
month period specified.
(c) An employee who is transferred out of the Bargaining Unit on a
temporary assignment shall be considered to be continuing in the
occupational group and classification from which he has been transferred.
Assignments of a temporary nature which are expected to continue beyond
twelve (12) months shall first be discussed with the Union.
(d) Such employee may not use the previous group seniority for bidding
on posted jobs in the previous group, but if he is re-transferred to the
previous group he may use the seniority to re-establish himself in that
group.
(e) All non-Bargaining Unit employees who are used on the job for
training purposes, shall be exempt from the provisions of this Agreement.
They shall be assigned to fully manned and supervised crews and for
periods not to exceed ninety (90) calendar days.
16.4 When an employee is temporarily transferred from the occupational
group in which he is regularly employed to another occupational group, his
seniority will continue to accumulate in his regular occupational group
while he is temporarily working elsewhere.
16.5 When new jobs are created as provided in 4.4, additional jobs and
vacant jobs will be posted on the bulletin boards by the Company for a
period of ten (10) calendar days. It shall be the duty of the Company to
set forth in said bulletin the date of postings, the nature of the job,
its duties, qualifications required and the rate of pay. The Company
shall furnish the Union with a list of bidders on all jobs and it shall be
the duty of the Company within ten (10) working days of the close of the
bidding period to post on bulletin boards the name of the applicant, if
any, awarded the job, and mail a copy of such notice to the
145
Union. If no bids are received for the job classification during the
bidding period, the Company may fill the job from any source whatsoever.
After a period of six (6) months, if Company has not hired an applicant to
fill the posted vacancy, Company shall re-post the job vacancy if such
vacancy still exists. If a job is filled and the job again becomes vacant
within forty-five (45) days from the date the job was last filled, it
shall not be necessary to again post the job. If the job was awarded to a
qualified bidder and becomes vacant within forty-five (45) days from the
date the job was last filled it shall be awarded to the next highest
bidder. If the next highest bidder has been awarded another job, he shall
have the option to accept either job. The vacant position shall be filled
by the next highest bidder. (Amended 1/1/98)
Attached hereto and made a part hereof and numbered Exhibit B are the
"Job Descriptions and Qualifications" of those jobs coming within the
scope of the bidding procedure. Bids to job vacancies will be given
preferential consideration in the following manner. Subject to 16.7 and
16.10, the employee with the greatest occupational group seniority shall
be awarded the job, except under (c) and (e) below, the Company seniority
shall be used:
(a) Bids from employees within the same occupational group in the same
classification or classifications higher than the existing vacancy.
(b) If there are no bidders under (a), all bids from employees in the
next lower classification within that occupational group.
(c) Where no bids are received under (a) and (b), all bids from
employees in another occupational group with the same classification.
(d) If there are no bids received under (a), (b) or (c), all bids from
employees within the occupational group in which the vacancies exist.
(e) Should there be no bids from any employee under (a), (b), (c) or
(d), all other bids from any employee in any occupational group,
regardless of classification and subject to 16.7 and 16.10, the bidder
with the greatest Company seniority shall be awarded the job. (Amended
5/1/87)
1. Incumbents are defined as those employees hired prior to
January 1, 1995 and listed in classifications in Exhibit "C"
both below the entry level line and in double-lined boxes
above the entry level line. Incumbents shall retain their
group seniority for bidding purposes subject to provisions
listed below.
2. Employees hired or who bid after January 1, 1995 in
classifications below the entry level line listed as "E"
bidders shall only accrue Company seniority until they are
awarded a position above the entry level line, at which time
they will also begin accruing occupational group seniority per
Sections 16.1 and 16.3(a).
3. All bids to Apprentice classifications shall be considered
"E" bids (except those incumbents hired before January 1, 1995
subject to Section 16.5(8).
4. All bids to classifications in the double-lined boxes except
apprenticeships shall be considered "E" bids unless group
seniority as an "A", "B", or "D" bidder applies.
5. All classifications listed below the entry level line shall
not have group seniority and will be considered "E" bidders to
all classifications except those incumbents designated under
Section 16.5(1).
146
6. Any apprentice who does not complete his/her apprenticeship
after January 1, 1995 shall not be considered an incumbent.
7. An incumbent will have one (1) opportunity to accept a bid
using group seniority per 16.5(1) for a double-lined
classification, and will then continue to progress in his/her
line of progression in accordance with Section 16.5.
8. If incumbent above or below the entry level line bids a
position within his/her line of progression at any location
but elects to turn down such position or fails to place a bid,
he/she will lose the opportunity to use group seniority for
that particular position and location. Future bids to that
position and location, if posted again, shall be based on
Company seniority only.
Examples: An Apprentice Lineman position is posted in Yerington.
- --------
If incumbent Field Clerk in Tonopah elects not to bid the above
position because he/she is waiting for an opportunity to bid an
Apprentice Lineman in Tonopah, incumbent loses the opportunity to
use group seniority in bidding a future Apprentice Lineman position
in Yerington, should it be reposted, per Section 16.5(8).
If incumbent bids the position in Yerington, but is not the
senior bidder, he/she retains group seniority to bid the same
position in Yerington, should it be reposted.
If incumbent bids the position in Yerington, and is awarded the
job, he/she no longer retains any preferential bidding rights to
double-lined classifications within that occupational group per
Section 16.5(7). (Added 1/1/95)
16.6 When the occupational group seniority is identical for two (2) or more
employees whose bids are entitled to equal consideration under paragraph
(a), (b), or (d) of Section 16.5, preferential consideration shall be
given to the employee with the greatest Company seniority, subject to the
provisions of Sections 16.7 and 16.10.
16.7 (a) Nothing in this Agreement shall be construed as limiting the
right of the Company to determine the number of employees required in each
classification nor shall it be construed as limiting the right of the
Company to determine whether a vacancy shall be filled. Except as
provided in Section 16.7(b), awards to jobs posted for bid shall be made
in accordance with Section 16.5. However, whenever a vacancy occurs in
any job classification, Company may, in its discretion, temporarily fill
such vacancy. Any such temporary appointment shall, if practicable, be
given to an employee who would be eligible to bid therefore under the
seniority and job bidding provisions of this Agreement, subject to the
provisions of Sections 16.7(b) and 16.10(a).
(b) In filling vacancies in jobs hereinafter collectively referred to
in Subsection 16.7(c) as "Working Foreman jobs," Company shall consider
the appointment of employees to any such vacancy as herein provided, and
where the Company determines that the following qualifications are
relatively equal, seniority shall govern:
1. The quality of the employee's performance on his current
job.
2. His background of education and experience in similar or
related work.
3. The amount of special preparation for the new job, if any is
necessary or pertinent, which the employee has completed at
the time the bid is made.
147
4. His previous demonstrations of leadership and progress.
It is the intent of the parties that the Union shall not have the
right to arbitrate the "judgment" of the Company, but that the Union shall
have the right of appeal if it believes there was not a fair submission of
facts upon which that judgment was made.
After selecting an applicant on the above basis, the Company shall
notify the Union by letter. During a period of fifteen (15) calendar days
following the receipt of such notification, the Union may investigate the
facts used by the Company in making its selection. If, after such
investigation, the Union feels that it would serve a useful purpose to
further review the matter, the Union may request a meeting with an officer
of the Company or his representative. The Union Representative at such
meeting shall not have participated actively in the original
investigation. The Union and Company representatives would review the
facts used by the Company in making the selection. Company's initial
decision will stand unless, after such review of the facts, Union and
Company representatives agree that the decision was arbitrary. In any
event, the Union and Company representatives shall, within thirty (30)
days, dispose of the case and their decision shall be final and binding
upon the Company, the Union, and the employees involved.
(c) The term "Working Foreman" as used in this Section 16.7 shall be
construed to include any of the following: (Amended 5/1/86)
1. Crew Chief
2. Foreman, Working (All Classifications)
3. Inspector
4. Inspector-Electric
5. Operator, Emergency Relief
6. Representative, Customer Services, Senior
7. Specialist, Meter Data
8. Technician, Instruction/Standards
9. Utilityman, Maintenance, Senior (Amended 1/1/98)
16.8 (a) An employee promoted to a higher classification shall be given a
qualifying period of not more than six (6) months. Such period shall be
for determining whether he can meet the job requirements. If the employee
fails to demonstrate his ability to perform the job or lacks the ability
to progress during the six-month trial period, he shall be returned to his
former job classification and rate of pay.
(b) In the event it is necessary for the Company to demote a "Working
Foreman," as defined in Subsection 16.7(c) for failure to discharge the
duties of his position, the identical procedures of notice to Union,
investigation and review procedure for appointment as outlined in
Subsection 16.7(b), shall be used prior to completion of demotion.
16.9 All bids shall be submitted by United States Mail to the Labor
Relations Offices at the Company at its general offices in Reno. The
Company will not consider any bid postmarked later than the closing date
on the posted bid form. (Amended 5/1/86)
16.10 (a) Notwithstanding anything contained herein, Company need not
consider the bid of any employee who does not possess the knowledge,
skill, efficiency, adaptability and physical ability required for the job
on which the bid is made.
(b) Company need not consider the bid of any employee for a posted
vacancy in another District or sub-District of the Company, if the
employee has not worked for a minimum of six (6) months in his present
classification within the District or sub-District in which he is
currently employed. The provisions of Section 16.10(b) are not to be
148
construed as placing any time limitation upon the subsequent advancement
of an employee within the line of progression in the District or sub-
District to which he is qualified to bid.
(c) Company need not consider the bid of any employee for a posted job
vacancy in another occupational group, if the employee has not worked for
a minimum of six (6) months in his present classification within the
occupational group in which he is currently employed. The provisions of
Section 16.10(c) are not to be construed as placing any time limitation
upon the subsequent advancement of any employee within the line of
progression in the occupational group to which he is qualified to bid.
(d) Company will not consider the bid of any employee in an Apprentice
classification for a posted job vacancy in another Apprentice
classification. (Amended 1/1/95)
(e) Company will not consider the bid of any employee for an
apprenticeship who has not met the requirements of the Apprentice Pre-
Qualification Pool Agreement. The requirements are described in the
Supplementary Agreement titled, Administration of Apprenticeship Programs.
(Added 5/1/83)
(f) Company need not consider the bid of a Lineman, who has completed
an apprenticeship in any district other then the Central District, for any
other Lineman vacancy outside his district or sub-district for a period of
one (1) year following his attainment of Journeyman status.
Company need not consider the bid of a Journeyman Lineman hired from
outside the Company for any other Lineman vacancy outside his district or
sub-district until he has worked for a period of one (1) year in his
present district. (This Section will not apply to incumbents [5/1/79])
(g) Company need not consider the bid of a Service Employee for a
posted non-service job vacancy in their present district, if the employee
has not worked for a minimum of one (1) year in his/her present
classification within the occupational group in which he/she is currently
employed. The provisions of Section 16.10(g) are not to be construed as
placing any time limitation upon the subsequent advancement of any
employee within the line of progression in the occupational group to which
he is qualified to bid.
Note: All current incumbents that come under the Service Employee
designation will not be affected by the above proposal. This section
applies to the Electric Department Occupation Group only. (Added 5/1/91)
(h) The Company will not consider the bid of an employee for any
position if the employee has an overall unsatisfactory appraisal in their
current classification. (Added 1/1/95)
16.11 (Deleted 5/1/82)
16.12 The seniority rights of employees who are members of the Armed Forces
shall accrue while they are absent on military duty.
16.13 Both the Company and Union recognize that there will arise situations with
respect to partially incapacitated employees, employees displaced by new
technologies or revisions of operational procedures, employees who are
temperamentally unsuited to their jobs, employees returning from military
service (other than annual field training) or employees who are displaced
either directly or indirectly by other employees returning from military
service with the Armed Forces of the United States (other than annual
field training) who have been granted leaves of absence by the Company
under Section 8.2 of the Agreement, and that in such cases the bidding
procedure may be waived by mutual agreement in order to properly protect
the seniority of employees who have given long and faithful service.
149
The Company will discuss such cases with the Union as far in advance as
possible with the object of avoiding any inequitable situations which
might result. Both parties will endeavor to provide for retention of
employees in the Company, in jobs suitable to their capabilities, first in
the areas where they are employed at the time, or secondly in other areas
of the Company's operations. If after full discussion of such cases and
survey of all possibilities available to the solution of the problem, the
Union and the Company are unable to agree on a satisfactory solution, the
Company shall have the right to make changes or layoffs as it may deem
necessary, consistent with the provisions of the Agreement. Should a
partially incapacitated employee, an employee displaced by new
technologies or revisions of operational procedures, or an employee who is
temperamentally unsuited to his job, or employees returning from military
service (other than annual field training) or employees who are displaced
either directly or indirectly by another employee returning from military
service with the Armed Forces of the United States (other than annual
field training) who have been granted leaves of absence by the Company
under Section 8.2 of the Agreement, agree to be transferred to work
falling outside of the Bargaining Unit, and should the employee not prove
to be satisfactory in this assignment, Company and Union may mutually
agree to waive the bidding procedure and return the employee to a
Bargaining Unit job suitable to his capabilities, under the provisions of
this Section.
16.14 After attainment of journeyman status through the Apprenticeship Program,
the Company need not consider the journeyman's bid back into another
Apprentice Program for a period of one year. (Added 1/1/98)
TITLE 17
--------
EXPENSES
17.1 (a) Upon mutual agreement between the Company and the employee, the
employee may provide his/her own regular meals on an out-of-town work
assignment as outlined in Section 17.8(a) and be reimbursed by the Company
the meals for which the employee qualified during each day of the
assignment. The reimbursed price will be the base cost of the appropriate
meal as outlined in 17.1, excluding tax and tip. Overtime meals shall be
charged directly to the Company, subject to the provisions of Title 17 and
will not be subject to reimbursement. (Added 5/1/86)
(b) The provisions of this Title shall be applied in a reasonable
manner by the Company and the Union to conform to the intent of the
parties, namely, that the Company will provide adequate meals when
employees are prevented from observing their normal meal practices, and
such other meals as provided for in this Title. Time necessary to consume
the meals provided shall be considered as time worked. Union will
cooperate with the Company to insure that the time necessary to consume
meals will not be excessive. Company shall have right to consider
excessive time taken to consume meals as time not worked.
DEFINITIONS
"Normal Meal Practice":
Breakfast: The two (2) hour period immediately preceding the time
corresponding to an employee's regular starting time on regular work days.
Lunch: From four (4) hours after the time corresponding to an
employee's regular starting time on regular work days to five (5) hours
after this starting time.
Dinner: From one (1) hour after the time corresponding to an
employee's regular quitting time on regular work days to two (2) hours
after this quitting time.
150
The meal practices observed on work days shall prevail on non-work days.
"Adequate Meal":
Meals shall be limited to those which are appropriate at the time,
adequate in quantity and quality, and reasonable in price. In connection
with non-emergency work assignments, the costs of any meal consumed by
employees in accordance with the provisions of this Title shall not
exceed:
Breakfast Lunch Dinner
$8.05 $10.00 $17.96 effective 1/1/98
_____ _____ ______- effective 1/1/99
_____ _____ ______- effective 1/1/00
excluding tip, and employees shall be billed for any cost exceeding
these approved amounts. If such billings are not paid by the employee
within thirty (30) calendar days after receipt of said billings, the
Company shall have the right to deduct such amounts from the employee's
paycheck. (Amended 1/1/98)
The price of such meals shall be reviewed and updated annually. The
basis for such adjustment shall be the change in the appropriate Consumer
Price Index for the preceding calendar year.
"Time Necessary to Consume":
Parties recognize that certain meals may take more or less than thirty
(30) minutes to consume. Any excessive time may be subject to
justification.
17.2 If Company requires an employee to perform work for one and one-half
(1 1/2) hours or more beyond regular work hours, it shall provide him with
a meal approximately one and one-half (1 1/2) hours after regular quitting
time and with meals thereafter of approximately four (4) but not more than
five (5) hours for as long as he continues to work, insofar as it is
possible for the Company to do so.
17.3 (a) On callout overtime, outside of regular hours on work days, the
Company shall provide: breakfast, if callout work begins prior to two (2)
hours before the time corresponding to the employee's regular starting
time on regular work days. Lunch, if callout work begins prior to two (2)
hours before the time corresponding to the employee's regular starting
time on regular work days and he has qualified for a lunch through time
worked. Neither breakfast nor lunch, if callout work begins two (2) hours
or less before the time corresponding to the employee's regular starting
time on regular work days, unless the employee has not been allowed
sufficient time by his Supervisor, at the Supervisor's discretion, to eat
his breakfast and prepare his lunch before reporting for work.
Other meals will be provided at intervals of approximately four (4)
hours but not more than five (5) insofar as it is possible for the Company
to do so and for so long as the work continues. Where any such work
extends into regular work hours the normal meal hours as defined in
Section 17.1 shall apply. (Amended 5/1/81)
(b) On callout overtime on non-work days, Company will furnish meals
at intervals of approximately four (4) but not more than five (5) hours,
for as long as such work continues insofar as it is possible to do so.
Normal meal practice shall prevail for work performed during those
hours described in Section 17.1. (Amended 5/1/81)
17.4 (a) On prearranged overtime assignments, Company will provide breakfast if
such work begins prior to two (2) hours before the time corresponding to
the employee's regular starting time on work days and non-work days. If
such work begins two (2) hours or less before the time corresponding to
the employee's regular starting time on a work day or a non-work day the
normal meal practice relating to work days shall prevail. If such work
151
continues, Company will furnish meals in accordance with
Section 17.2 for the duration of the assignment. (Amended 5/1/81)
(b) If such prearranged overtime is wholly outside of regularly
scheduled work hours on either work days or non-work days, employee shall
provide one (1) meal on the job and shall be allowed thirty (30) minutes
for consumption of such meal, approximately four (4) but not more than
five (5) hours after beginning work, to be considered as time worked. If
such work continues, Section 17.2 or 17.3 will be applicable. (Amended
5/1/81)
17.5 It shall be the obligation of Company to provide meals to any employee
whose normal meal practices, as herein defined, are disrupted. These
meals shall be furnished as nearly as possible, to the normal time for
eating regular meals, and shall consist of a meal comparable to the one
disrupted.
17.6 Notwithstanding anything contained herein, if an employee has
completed his work assignment and is qualified for a meal under the
provisions of this Title, and has not worked more than one (1) hour beyond
his qualifying time, he may be released and allowed 30 minutes to consume
such meal as work time. If an employee has worked more than one (1) hour
beyond his qualifying time, he will be provided such meal on his way back
to his headquarters and allowed the time necessary to consume such meal as
work time. If an employee does not elect to eat such meals he shall
nevertheless be entitled to thirty (30) minutes at the applicable overtime
rate.
17.7 Nothing in the preceding Sections of this Title shall be construed as
altering in any way the lunch time provisions set forth in Title 6.
17.8 (a) Regular employees who are assigned to temporary work at such
distance from their headquarters that it is impractical for them to return
thereto or to their regular place of abode, shall be allowed actual
personal expense for board and lodging for the duration of such
assignment, provided they board and lodge at places to be designated by
Company. Under such circumstances, the Company designated lodging will be
the reporting place. (Amended 1/1/95)
(b) The subsistence allowance will not be applicable if board and/or
lodging is provided by the Company. Upon the approval of the Company, any
employee electing to provide his own living accommodations and meals in
lieu of those provided by the Company will be:
Each night's stay of the work assignment: $80 Effective 1/1/98
--- Effective
1/1/99
--- Effective
1/1/00
The last day of the whole aforementioned assignment:
$40 Effective 1/1/98
Effective 1/1/99
----
Effective 1/1/00
----
The dollar amount prescribed above will be adjusted based on Section
274 of the Internal Revenue Code, Treasury Regulations and Administrative
Interpretations. (Amended 1/1/95)
152
Employees working a five (5) day work week and electing to remain
within the project area on their two (2) non-work days will not be
entitled to the subsistence allowance for the non-work days. If assigned
to work six (6) days during the work week, the subsistence allowance will
be granted for each of the seven (7) days in the work week.
An employee shall not be entitled to the subsistence allowance for any
day he is absent from duty for personal reasons.
In the event of the illness of an employee, subsistence allowance
shall be granted only for the first regularly scheduled work day. If such
illness exceeds one (1) regularly scheduled work day, employees shall be
encouraged to seek proper medical attention at facilities properly
equipped to render same.
Transportation and allowances shall be provided to employees by the
Company in accordance with the terms of Sections 17.8(a) and 17.9 of the
Agreement, except that time spent by employees traveling in their personal
vehicles to the project at the beginning of the employee's assignment and
from the project at the end of the employee's assignment shall not be
considered as time worked.
A travel allowance equal to that provided for under Title 5, Section
5.1, for one (1) round trip, will be allowed each employee providing his
own living accommodations and meals under the following conditions:
(Amended 1/1/95)
1. Travel to the project at the beginning of the employee's
assignment and from the project at the end of the employee's
assignment.
2. Travel from one (1) temporary reporting place designated by
Company to another such Company designated temporary reporting
place within the project for the purpose of relocating an
employee's personal living accommodations.
Employees will be required to report for work at the established
starting time and at the temporary reporting place designated by Company.
It is understood that the temporary reporting place designated by Company
may change from time to time due to changes in Company's operational
requirements. Such changes shall occur at Company's option.
Employees receiving the subsistence allowance in accordance with the
foregoing provisions shall report for work on the first scheduled work day
of the work week, at the established starting time, at the temporary
reporting place designated by Company.
Employees providing their own living accommodations and meals shall
accept full responsibility for the health, welfare and safety of any
family members or personal property taken with them while on this job
assignment. Employees shall hold the Company harmless of any and all
liability involving family members, friends, personal property or
equipment. (Amended 5/1/82)
(c) Employees who are assigned to temporary out-of-town, overnight
work assignments, as outlined in Sections 17.8(a) and 17.8(b), shall be
paid an additional $2.00 per hour out-of-town premium, commencing on
departure the first work day and ending on the start of the last work day
after the last night's stay. Such premium shall be paid for the duration
of the assignment, excluding days not worked, even though such assignment
may be interrupted by weekends or authorized days off during which the
employee returns to his regular place of abode. (Amended 1/1/95)
No out-of-town premium shall be applicable for one (1) night out-of-
town assignments.
When out-of-town premium is applicable to time worked at the overtime
rate of pay, the overtime rate shall be applied to the out-of-town work
premium.
153
Out-of-town premium shall be applicable only for hours considered time
worked and shall not be paid for non-work time such as sick leave, time of
own accord, etc. (Added 5/1/83; Effective 5/1/84)
17.9 If on their non-work days any such employees remain at such designated
places, their expenses for board and lodging on such days shall be paid by
Company, but if they go elsewhere for their personal convenience Company
shall not reimburse them for any expense they incur thereby. If any such
employees return to their homes on their non-work days, Company at its
option shall (1) allow them the equivalent of any saving it realizes in
their board and lodging costs, or (2) reimburse them for the expenses of
round-trip transportation by public carrier, or (3) provide round-trip
transportation by Company vehicle, if such travel is at Company's request.
In the event that any such employees board and lodge at a Company boarding
house, the allowance which may be made by reason of the saving in board
and lodging cost will be based on the established charge to employees who
regularly board and lodge at such boarding houses.
17.10 An employee who is required to change his residence from one (1)
locality to another for the Company's convenience, shall be eligible for
authorized relocation expenses (Company reserves the right to select
approved expenses) consistent with the current Company policy/procedure if
the employee's place of residence is at least 50 miles from his/her new
headquarters. This benefit does not apply if the move results from an
employee exercising his/her rights under Title 16, except when there is
only one qualified bidder for a journeyman or above job, qualified moving
expenses, not to exceed $2,000 with a limit on availability to said bidder
once every five years, will be available. (Amended 1/1/98)
17.11 (Deleted 5/1/91)
17.12 Insofar as possible, the Company will give at least one (1) day's
notice to an employee who is to be sent out of town for work in order that
the employee may have time to prepare for the trip. The cost of Company
provided meals for which the employee qualifies during each day of such
assignments shall not exceed the aggregate of the meal allowances
specified in Section 17.1 for such meals.
17.13 On optional or voluntary training related travel out of Sierra's service
territory, the following shall apply.
. Company to reimburse for actual expenses.
. Out-of-town premium will not be in effect.
. No overtime will be paid; however, Company Management to be sympathetic
to travel connections and delays. (Added 1/1/98)
TITLE 18
--------
APPRENTICESHIP
18.1 (a) A committee, known as the Joint Apprenticeship Training
Committee, shall be established for the purpose of working out
apprenticeship problems.
(b) The committee shall be composed of four (4) members appointed by
the Company and four (4) members appointed by the Union. (Amended
1/1/95).
(c) The committee members shall serve from the date of their
appointment until their successors are duly selected.
(d) The Project Administrator, Apprenticeships shall be the committee
chairman and the secretary will be selected from the Union
Representatives on the Committee.
154
(e) The chairman will be responsible for an agenda of, and presiding
over scheduled meetings. The secretary shall record the minutes of
each meeting and distribute them to all appropriate persons.
(f) Committee meetings shall be held once a month or as designated by
the chairman. (Amended 5/1/82)
18.2 The JATC shall have the responsibility for developing new
apprenticeship programs, amending existing apprenticeship programs, and
investigating problems related to such areas as entrance requirements,
standards of progress, methods of testing and scoring, apprenticeship
working conditions, and procedures for removal or freezing when
apprentices fail to meet established requirements. (Amended 5/1/82)
18.3 The Company shall not be liable for lost time or expenses of the Union
appointed members of the Apprenticeship Committee.
18.4 Any programs or plans which may be agreed upon by the Committee with
reference to items listed in 18.2 shall be reduced to writing and upon
approval and acceptance by the President of the Company and the Business
Manager of the Union, such supplemental agreements shall constitute an
amendment to this Agreement as of the date specified in such supplementary
agreement.
18.5 The Company may post and fill Apprentice Lineman job vacancies within
any District of the Company, subject to the provisions of Title 16. When
an Apprentice Lineman has completed six (6) months at the top step of the
Lineman Apprentice wage progression and has successfully met all
requirements for advancement to Journeyman status, he shall automatically
be reclassified to the classification and wage rate of a Lineman within
the Headquarters in which his apprenticeship has been served, and the
Company shall not be required to post a Journeyman vacancy. When an
Apprentice Lineman has reached the thirty-six (36) month step of the
Lineman Apprentice wage progression and has successfully met all
requirements for advancement to Journeyman status, he may be, at Company's
discretion, reclassified to the classification and wage of a Journeyman
Lineman within the Headquarters in which his apprenticeship has been
served, and the Company shall not be required to post a Journeyman
vacancy. Apprentice Linemen shall be required to serve their entire
apprenticeship training period in one (1) Headquarters of the Company
unless otherwise agreed to by Company and Union. (Amended 5/1/91)
18.6 When an apprentice in any formalized Apprenticeship Training Program
has completed six (6) months at the top step of his apprentice wage
progression and has successfully met all requirements for advancement to
Journeyman status, he shall automatically be reclassified to the
classification and wage rate of a Journeyman within the Department in
which his apprenticeship has been served, and the Company shall not be
required to post a Journeyman vacancy. When an apprentice has reached the
top step of his wage progression and has successfully met all requirements
for advancement to Journeyman status, he may be, at Company's discretion,
reclassified to the classification and wage rate of Journeyman within the
Department in which his apprenticeship has been served, and the Company
shall not be required to post a Journeyman vacancy. (Amended 5/1/81)
18.7 All apprenticeship job vacancies will be filled in accordance with the
provisions of Section 16.10 of this Agreement. (Added 5/1/83)
TITLE 19
--------
MISCELLANEOUS
19.1 No employee shall be required to be "on call." An employee placed on
standby duty shall be considered working and shall receive pay as such.
Provisions to this section do not apply to the Emergency Response Program
(Attachment XII). (Amended 1/1/98)
155
19.2 (Deleted 5/1/80)
19.3 The Company does not plan to contract work it normally does and agrees
that in no case will it lay off employees as the result of work
contracted. The Company has the right to enter in contracts. The Company
will review on a quarterly basis, in the labor management committee, the
status of the outside contracts. (Amended 1/1/98)
19.4 Company shall not, by reason of the execution of this Agreement,
abrogate or reduce the scope of any present plan or rule beneficial to
employees, which is not specifically covered by this Agreement.
19.5 Job descriptions are not intended to be so restrictive as to prohibit
performance of work not specifically mentioned in the job descriptions
themselves. Such work assignments shall be in accordance with Section 4.3
of the Agreement.
19.6 Nothing herein contained shall be construed as to limit the right of
the Company to determine the character, extent and methods of its
operations, the amount of production, the number of employees required in
total and in the specific classifications of work.
19.7 The Company will furnish for use by employees all special tools it
deems necessary that may be required by any classification in the
performance of the job therein. The Company will replace all personal
hand tools, as normally purchased by the Company, which are worn out in
the service of the Company and are turned in to the Company for
replacement.
19.8 If any part or portion of this contract should be invalid or be
superseded by either state or Federal law, the remaining portions of the
contract shall, nevertheless, remain in full force and effect.
19.9 (Deleted 1/1/98)
19.10 Severance benefits shall be provided pursuant to the Sierra Pacific
Power Company Bargaining Unit Employees Severance Pay Plan, which became
effective January 1, 1995, for employees laid off through the application
of Title 23. (Added 1/1/95).
BARGAINING UNIT EMPLOYEES SEVERANCE PAY PLAN
Severance Provision (if laid off for lack of work):
# of Weeks for Each
Full Year of
Continuous Service Minimum # of Weeks Maximum # of Weeks
(Max. 17 Years) + of Severance = of Severance
One (1) One (1) Eighteen (18)
For the duration of the severance benefit period, employees will
receive medical/dental/vision benefits based on whatever plan they were
enrolled in at the time of layoff provided that they make any required
premium contributions. ( Amended 1/1/98)
19.11 Enhanced Severance & Retirement Bridge Program
Employees are eligible for "enhanced severance & retirement bridge
program" options if they are determined to be no longer required due to
displacement as a result of a sale, divestiture, merger, or any other
business event as defined by the Company. Affected employee is defined as
an employee in a specific classification and location.
156
(See 19.11(g), Enhanced Severance & Retirement Bridge Program Flow Chart.)
A. NOTIFICATION OF INDIVIDUALS: Company will notify Union and employees
affected by an event as soon as possible.
B. PLACEMENT: Company and Union will work to place affected employees in
available positions for which they are qualified:
1. Volunteers will be requested and selected by company seniority.
If there are no volunteers, reverse seniority will be used to
select employees for enhanced severance and retirement bridge
program.
2. Employee offered comparable position [defined as the same
headquarters location (i.e., Reno/Sparks will be considered one
location) and same wage (i.e., comparable or higher wage if
qualified)], it will be offered to the affected employee(s). The
employee will have five (5) working days to notify the Company of
their decision. If the employee accepts the position, it will be
awarded to them at the appropriate wage rate. If the employee
refuses the position, he/she will be terminated with no
severance.
3. Employee offered non-comparable position (defined as
requiring relocation of greater than a 35-mile radius and/or wage
reduction):
(a) the employee will have five (5) days to notify the
company of his/her decision to accept the offer at the
appropriate wage rate.
(b) if employee accepts and is awarded the position, he/she will
be eligible for retraining, if required, and up to $2000
relocation expense.
(c) if employee declines, he/she will be eligible for:
1. Enhanced Severance defined as:
. two (2)weeks of pay for each year of service, with a
maximum of 52 weeks.
. a lump sum payment of $4,500 for training or
outplacement services.
. six (6) months of company-paid COBRA
OR
2. Retirement Bridge Program options:
a) An affected employee who has achieved 80 (eighty) points
in combination of age and credited service at the time
they are affected will not have to reach the minimum age
55 requirement for retirement or post retirement
medical. The employee's retirement benefit will be
reduced by 4% per year for each year under age 62.
. For example, an employee who is age 49 with 31
years of service (for a total of 80 points) at the
time they are affected would be eligible to
"retire" and receive post retirement medical
regardless of their minimum age and would
157
receive the benefit of the 4% reduction for each
year under age 62 rather than the previous 6%
reduction for each year under age 65.
OR
b) An affected employee may add the following schedule of
points to either their age or service or a combination
thereof to affect their retirement eligibility. The
employee must achieve a minimum age of 55 (including
points) with at least 10 years of service to be eligible
to retire and receive post retirement medical.
YEARS OF SERVICE POINTS
---------------- ------
0-9 0
10-14 3
15-19 4
20+ 5
. For example, an employee who is age 52 with 28 years of
service at the time they are affected can add 3 points
to their age and effectively become age 55 and 2 points
to service, which gives them 85 points, which qualifies
them for full retirement at the time they retire.
C. Employees can select only one option - either Severance OR Retirement Bridge.
D. If employee declines Enhanced Severance and Retirement Bridge Program
options, they will be eligible for consideration under Title 23, Demotion and
Layoff Procedure (bumping).
E. Title 19.10 severance calculation will apply with one (1) week per year with
a minimum of one (1) week of severance, i.e., a one year employee would
receive two (2) weeks of severance pay. Rehire rights will be limited to one
year. The IBEW 1245 will be responsible for monitoring the program. The
Company will provide the list of affected employees and listings of job
openings as they occur.
F. When an employee exercises Title 23, Demotion and Layoff Procedure (bumping),
the affected employee (bumped employee) will start at the "placement" step of
the enhanced severance and retirement bridge program options. (Added 1/1/98)
158
[FLOW CHART APPEARS HERE]
Section 19.11(g), Enhanced Severance & Retirement Bridge Program Flow Chart
159
(this chart should only be used as a guide when reviewing Section 19.11)
160
TITLE 20
--------
SUPPLEMENTAL BENEFITS FOR
INDUSTRIAL INJURY
20.1 When an employee is absent by reason of injury which comes within the
application of the Nevada Industrial Insurance Act, the Nevada
Occupational Diseases Act, or the Workman's Compensation and Insurance
Chapters of the State of California Labor Code, he shall be entitled to
supplementary benefits for the duration of such temporary disability.
Benefits shall begin with the first work day of absence following the day
of injury. The amount of Supplemental benefit payable for each day of
absence shall be 85% of the employee's basic daily wage less the sum of
any payments to which he may be entitled under the aforementioned acts or
any other acts applying to the case. The Company will investigate any
employee off work on industrial injury. If there is reason to believe
that the intent and/or benefits of this section are being abused, the
supplemental benefit will be terminated. After six (6) months off on
industrial injury the employee will no longer accrue vacation or sick
leave until such time as he reports back to work. Reference is hereby
made to Section 16.13, relative to employees permanently injured in the
Company's services.
TITLE 21
--------
GRIEVANCE PROCEDURE
21.1 Any grievance which may arise between Union or any employee in a
Bargaining Unit classification and Company with respect to the
interpretation or application of any of the terms of this Agreement and
with respect to such matters as the alleged discriminatory or arbitrary
discharge, discipline, or demotion of an individual employee shall be
processed through the procedure set forth in the following paragraphs of
this Title.
21.2 An Investigating Committee shall be established and shall consist of
at least two (2) members, one (1) appointed by Union and one (1) by
Company. (Amended 1/1/95)
21.3 A Joint Grievance Committee shall be established consisting of four
(4) members appointed by Union, one (1) of which will be the Union
Business Representative, and four (4) members appointed by Company. The
Grievance Committee shall meet at a time and place to be designated by
mutual consent of the members thereof. The meetings shall be limited to
one (1) per month but need not be held each month if there is a lack of
business for the Committee to conduct.
21.4 (a) STEP 1 - As the initial step in the adjustment of an alleged
grievance of an employee, the Union Shop Steward shall discuss same
with the Supervisor in charge and the Union Shop Steward shall
inform the Supervisor that this is the first step of the grievance
procedure. The Supervisor shall have five (5) working days from date
of notification to give his verbal response.
(b) STEP 2 - If they are unable to resolve the alleged grievance as
provided in Subsection 21.4(a), the Union Shop Steward shall present
a written statement of the alleged grievance to the Supervisor in
charge within five (5) working days after completion of the first
step. Such grievance report form shall have been approved by Company
and Union. The Supervisor shall present his answer in writing on
grievance form to the Union Shop Steward as soon as possible, but in
no event more than ten (10) working days from the date Union Shop
Steward presents the written statement of the alleged grievance to
the Supervisor in charge.
(c) Discussions between Union Shop Steward and the Supervisor may be on
Company time but shall be at such time and place as not to interfere
with the work in progress.
161
(d) Grievances shall be introduced at the initial step of the
grievance procedure within the time limits specified in subsections (1)
and (2) hereof:
1. A grievance involving the alleged discriminatory or arbitrary
discharge of an employee shall be introduced at the initial
step of the grievance procedure not later than ten (10)
working days after an employee discharge becomes effective.
Company shall answer, in writing, within five (5) working days
after receipt of Union's written grievance.
2. Grievances as described in Section 21.1 other than specified
in (1) above shall be introduced at the initial step of the
grievance procedure not later than thirty (30) calendar days
after the date of the incident or action complained of which
is the basis of the grievance, or in a situation beyond the
control of the employee, thirty (30) calendar days after the
date the employee became aware of said incident or action.
21.5 STEP 3 - If the Union Shop Steward and Supervisor involved are not
able to reach an agreement on the disposition of a grievance, or if the
Company fails to answer within the time limit above, it may be referred by
the Shop Steward to the Union's Business Representative. If the alleged
grievance is not presented to the third step of the grievance procedure
within ten (10) working days after receiving the Supervisor's answer in
Step 2; the grievance shall be considered closed. The Union's Business
Representative may present such grievance in duplicate on the proper form
to the Labor Relations Manager, or alternate. The form shall be completed
by the Company and returned to the Union's Committee Chairman within ten
(10) working days from receipt thereof.
21.6 (a) STEP 4 - If no settlement is reached at Step 3, or the Company
fails to submit a written answer within the specified time limit, the
Union may refer such alleged grievance to the next step of the grievance
procedure which is the Joint Grievance Committee.
(b) If the grievance is not settled as provided in Sections 21.4 and
21.5, it shall be discussed by the Joint Grievance Committee at its next
regular meeting. The Committee shall consider grievances referred to it
as provided in Section 21.5 and shall conscientiously endeavor to effect
their settlement. The decision of this Committee shall be final and
binding upon both parties. Minutes shall be kept of the Committee's
proceedings and the disposition of all grievances shall be recorded.
(c) All grievances will be processed in the manner prescribed in
Sections 21.4 and 21.5 and 21.6(a) except those involving alleged
discriminatory or arbitrary discharge, discipline, or demotion of an
individual employee, which, if not settled in the manner prescribed in
Sections 21.4 and 21.5 shall be referred directly to the Investigating
Committee. The Investigating Committee shall make a complete
investigation of all the facts pertinent to the grievance and shall strive
to reach agreement on disposition of the grievance. Their agreement shall
be recorded and shall be final and binding on Company, Union and the
aggrieved employee. If the Committee is unable to reach agreement, it
shall refer the grievance to the next regular meeting of the Joint
Grievance Committee with a full and complete report of its investigation
and the separate recommendations of the Investigating Committee members.
Company and Union agree that they will attempt to settle grievances
involving alleged discriminatory or arbitrary discharge of an individual
employee as expeditiously as possible.
21.7 STEP 5 - If a satisfactory settlement cannot be reached by the Joint
Grievance Committee in two (2) consecutive meetings (unless mutually
otherwise agreed), it shall be referred to the Review Committee, such
committee to be composed of a Union Representative who was not involved in
any of the preceding discussions, and an officer of the Company. This
Committee shall meet within thirty (30) working days after the date the
case is referred to
162
the Committee, and shall endeavor to make a decision based on the record
referred to it. It may, in its discretion, return the grievance to the
Joint Committee with a request for further investigation and consideration
by that Committee. It may, at its discretion, conduct a hearing on any
grievance submitted to it. This Committee shall be authorized to make a
decision which shall be final and binding on Company and Union. If the
members agree on the disposition of a grievance a statement to that effect
shall be signed by the members. (Amended 1/1/95)
21.8 STEP 6 - If a satisfactory settlement cannot be reached under the
foregoing procedure, either party may refer the case to arbitration by
notifying the other in writing to that effect. Within twenty-one (21)
days of such notice, Union and Company shall each notify the other of the
persons appointed to act as their representative on the Arbitration Board.
An Arbitration Board shall be appointed on each occasion that a grievance
is submitted to arbitration. The Board shall be composed of three (3)
members, one (1) to be appointed by Union; one (1) to be appointed by the
Company. At the earliest convenience of the representatives after their
appointment, they shall meet for the purpose of selecting the third member
who will serve as Chairman of the Board. In the event the parties are
unable to agree on a person to act as a third member, within forty-eight
(48) hours they shall jointly request the Director of Federal Mediation
and Conciliation Service to submit a list of five (5) persons qualified to
act as a third member. After receipt of such list, the Union and Company
shall alternately challenge two (2) names, the party to have first choice
to be determined by lot. The remaining name shall be accepted as Chairman
of the Board. The Arbitration Board shall hear all evidence and
arguments on the points in dispute and the written decision of a majority
of the members of such Board shall be final and binding upon the parties
hereto. The Board shall have jurisdiction and authority to interpret and
apply the provisions of this Agreement, insofar as shall be necessary to
the determination of the grievance of complaint, but it shall not have
jurisdiction or authority to alter in any way the provisions of this
Agreement.
The Board may make such retroactive award, or settlement, of any
grievance or complaint as the equities of the case may demand, but in no
event shall any award be retroactive beyond the date of the occurrence of
the latest incident which gave rise to the grievance, nor shall any award
be retroactive for more than one (1) year prior to date of submission of
grievance at Step 3. The Company and the Union shall each bear the
expense of its own representatives. The expense of the third party shall
be borne equally by the Company and the Union. Either party may call any
employee as a witness in any proceeding before the Arbitration Board, and
if the employee is on duty, the Company agrees to release such employee
from duty so he may appear as a witness. If an employee is called to
appear before the Board, the party calling the witness will reimburse him
for all expenses including time lost.
21.9 The disqualification of a preferred bidder as provided in Section 16.5
to a job classification listed in Exhibit C by reason of Company
application of Section 16.10 shall be referred to Union's member of the
Investigating Committee. The Union's member shall within fourteen (14)
calendar days notify Company member that an investigation is desired. If
no notification is made the award shall be made permanent. Where
notification is given the Committee shall make a complete investigation of
all the facts pertinent to the grievance and this investigation shall
substitute as the initial step in the adjustment of a grievance provided
in Section 21.4. Such investigation shall commence as soon as reasonably
possible after referral and the Committee shall diligently carry on its
investigation and shall strive to reach agreement on disposition of the
grievance. Their agreement shall be recorded and shall be final and
binding on Company, Union and the aggrieved employee. If the Committee is
unable to reach agreement it shall refer the grievance to the next regular
meeting of the Joint Grievance Committee with a full and complete report
of its investigation and the separate recommendations of the Committee
members.
TITLE 22
--------
163
EMPLOYEE BENEFIT PROGRAMS
This Title is amended and restated as of 1/1/98. Attachments and Letters of
Understanding relating to Benefits, formerly residing in the back of the
contract, have been incorporated into this Title. For previous language, refer
to the prior Contract.
The Company maintains the right to make administrative changes to any benefit
plan that will not adversely affect the employee's benefit or cost of such
--------
benefit, but may reduce the Company's obligation. These changes will be
reviewed and discussed with the Joint Wages and Benefits Committee.
Except in the event of the election of a different funding medium by Sierra
Pacific Power Company, if any Benefit Plan is terminated the Union or Company
shall have the right to open negotiations for the purpose of negotiating a
replacement plan or program but for no other purpose.
22.1 Retirement Plan
- ---- ---------------
1. The "Retirement Plan for Employees of Sierra Pacific Power Company",
hereinafter referred to as "Retirement Plan", which became effective July
1, 1958, and last amended January 1, 1998, is the Plan Document filed with
the Department of Labor. For more detailed information regarding the
"Retirement Plan" refer to the formal Plan Document or Summary Plan
Description.
2. While this Contract is in effect, the Company will not change or
discontinue the Retirement Plan unless terminated through the election of a
different funding medium by Sierra Pacific Power Company, or by operation
of law, in which event the rights theretofore accruing to participants
under said Retirement Plan shall not be adversely affected.
3. Retirement Plan Document will be amended as follows effective July 1, 1998,
or other dates as specified. Retirement Plan Summary Plan Description will
be updated and distributed to all participants on or before December, 1998.
a) Unreduced retirement benefit available at age 62 with at least 10
years of Service; at age 65 with one year of Service; or upon
achieving age 55 and a total of 85 points when age and Credited
Service are added together.
b) Reduced early retirement benefit available upon attaining a minimum
age of 55 with at least 10 years of Credited Service. Early Retirement
benefits are reduced by 4% for each year under age 62.
c) Credited Service recognizes the first year of Service.
d) Credited Service recognizes all Service prior to age 21, provided the
participant made the necessary contributions to the Retirement Plan
when the Plan was contributory.
e) Covered Compensation includes: 1) Base Pay; 2) Incentive Compensation;
3) Out of Town Premium; 4) Upgrade; and 5) Shift Pay.
4. The retirement benefit calculation is as follows: Final Average Earnings X
Years of Credited Service X 1.5%. Please refer to the Plan Document or
Summary Plan Description for more detailed explanation.
22.2 Post Retirement Medical
- ---- -----------------------
164
1. Employees who "retire" under the qualified Retirement Plan (minimum age 55
with at least 10 years of service), are eligible for Post Retirement
Medical benefits.
2. Post Retirement Medical benefit provisions are incorporated within the
Retirement Plan and the "Medical and Dental Benefit Plan for Bargaining
Unit Employees".
3. Employees retiring on or after January 1, 1998, who are under age 65, will
be eligible for the same medical, dental and vision plan options as active
Bargaining Unit ("BU") employees.
4. Employees retiring on or after July 1, 1998, who are under age 65, will pay
20% of the applicable Medical Plan premium (including Dental and Vision);
plus an additional 4% of the applicable Medical Plan premium (including
Dental and Vision) for each year less than 20 full years of Credited
Service.
5. Employees retiring on or after January 1, 1998, who are age 65 or over, or
who subsequently become age 65, will be offered the same HMO's as active BU
employees, a Medicare Supplement Plan (plan design to be determined and
mutually agreed upon in the Joint Wages and Benefits Committee), and a
Medicare Risk Contract.
6. Employees retiring on or after July 1, 1998, who are age 65 or over, will
pay 15% of the applicable Medical Plan premium (including Dental and
Vision); plus an additional 4% of the applicable Medical Plan premium
(including Dental and Vision) for each year less than 20 full years of
Credited Service. If a retiree elects to participate in a Medicare Risk
Contract, the 15% premium will be waived; any additional premium for years
of Credited Service less than 20 shall apply. In additional, retirees age
65 or over are required to enroll in and pay the cost of Medicare Part "B"
or Medicare Part "C".
7. GRANDFATHERING: Employees who are age 60 or greater with at least 10 years
--------------
of service as of July 1, 1998, will not be required to pay 20% (or 15% if
over age 65) of the applicable premium at the time they retire, but will be
required to pay 4% for each year less than 20 full years of Credited
Service. For example, an employee who turns 60 on May 1, 1998, but chooses
to retire May 1, 2001, when he has 20 years of service, will NOT be
---
required to pay 20% of his applicable Medical Plan premium.
8. Retirees may choose to waive their medical coverage at the time of
retirement or any time thereafter. Waiver is permanent.
9. Retirees may change plans once each year during an annual open enrollment
period without pre-existing exclusions. Retirees can change their coverage
level (retiree only; retiree plus spouse; etc.) if they incur a family
status change within the plan year.
10. Medical Plan premiums will be actuarially determined each plan year.
Retirees will be rated separately from active employees for self-funded
plans.
11. Unless the parties design a more mutually acceptable plan, all new
employees hired on or after January 1, 1998, will receive an individual
account balance for post retirement medical equivalent to $1,250 per year
of Credited Service at the time they retire. Details of plan design and
administration will be deferred to Joint Wages and Benefits Committee.
22.3 Voluntary Investment Plan [401(k) Plan]
- -------------------------------------------------
1. The "Voluntary Investment Plan for Bargaining Unit Employees of Sierra
Pacific Power Company", hereinafter referred to as "VIP", which became
effective January 1, 1987, and
165
last amended January 1, 1998, is the Plan in effect during the term of this
Contract. For more detailed information regarding "VIP" refer to the formal
Plan Document or Summary Plan Description.
2. The Company will pay the normal administrative fee (excluding loan and other
individual transaction costs) for all plan participants.
3. Effective January 1, 1998, the maximum employee contribution is 17% of gross
earnings, defined as:
a) Base Pay
b) Incentive Compensation
c) Out of Town
d) Upgrade
e) Shift Premium
f) Overtime
g) Rest Period
h) Pager Pay
i) any other cash earnings.
4. Effective January 1, 1998, the Company will provide a match of fifty (50)
cents for each dollar of employee contributions up to six (6) percent of the
following total earnings:
a) Base Pay
b) Incentive compensation
c) Out-of-Town
d) Upgrade
e) Shift Premium
5. If an employee reaches the IRS limit, (currently $10,000), at any time during
the tax year, and their company match is negatively affected, their company
match will be made whole within 30 days following the end of the plan year.
6. Effective April 1, 1998, the following funds will be investment options:
a) Vanguard Wellington Fund
b) Vanguard Windsor II Fund
c) Vanguard Money Market Reserves-Federal Portfolio
d) Vanguard Index Trust-500 Portfolio
e) Vanguard Bond Index Fund-Total Bond Market Portfolio
f) Sierra Pacific Power Stock Fund
g) Warburg Pincus International Equity
h) Chesapeake Growth Fund
i) Stable Value Fund
8. Effective January 1, 1998, changes to allocations, payroll deductions, etc.,
and transfers among funds can be done on a monthly basis.
9. Effective January 1, 1998, the following changes were made to the BU
Voluntary Investment Plan loan provisions:
a) Loans are available for any reason for up to 50% of the participants total
account balance or $50,000; whichever is less
b) Limit of two outstanding loans; (limit of one outstanding loan for Primary
Residence)
c) Loan interest rate is Prime plus one percent
d) 10 year loan term for Primary Residence, 5 year loan term for all others
166
22.4 Medical, Dental, and Vision
- ---- ----------------------------
1. The "Medical and Dental Benefit Plan for Bargaining Unit Employees",
hereinafter referred to as "Medical Plan", which became effective January
1, 1993, and last amended January 1, 1998, is the Medical Plan in effect
during the term of this Contract. For more detailed information regarding
the "Medical Plan" refer to the formal Plan Document or Summary Plan
Description.
2. While this Contract is in effect the Company will not change or discontinue
the Medical Plan, which is provided for through a Voluntary Employee
Benefits Association (VEBA). If by operation of law the Medical Plan is
terminated the rights accruing to participants shall not be adversely
affected.
3. Effective January 1, 1998, a Cafeteria Plan, as defined by Internal Revenue
Code Section 125, is established to allow pre-tax premium contributions.
Health Care and Dependent Care Flexible Spending Accounts (FSA's) are also
available on a pre-tax basis.
4. The Medical Plan provides the following five (5) options. The options are
outlined in Exhibit A, page ____.
a) Preferred Provider Organization at 90% (Union Best)
b) Preferred Provider Organization at 80% (Basic)
c) HealthFirst (HMO)
d) Hometown Health Plan (HMO)
e) No coverage, contingent upon proof of other insurance
5. Elections of medical plan options will be made each year during an open
enrollment period. The election remains in effect for the entire Plan Year,
unless the employee incurs a "Family Status Change" as defined by Internal
Revenue Code Section 125, Cafeteria Plan. If an employee fails to enroll, he
will default to previous year's coverage for himself and his dependents.
6. Under options (a) and (b), when services are rendered in a community where
the PPO is available and there is more than one (1) PPO physician available
to perform the services, the employee will be subject to PPO provisions.
7. Under options (a) and (b), employees and their dependents are eligible under
the provisions of the Preferred Provider Organization (PPO) to receive
payment of 90% [for option (a)] or 80% [for option (b)] of usual, reasonable
and customary charges when:
a) PPO services are not available within thirty (30) miles of the community in
which the employee and dependents reside or;
b) Employee has an eligible dependent attending school away from home and
there is not a PPO provider available or;
c) Employee or dependent is traveling away from home and PPO services are not
available or;
d) Employee is required to work away from their principle residence and PPO
services are not available.
8. Self-funded Dental and Vision benefits are included in options (a) and (b).
9. Within options (c) and (d), employees and their dependents who live in
specified zip code areas will be eligible under the Health Maintenance
Organization (HMO). Employees who enroll in an HMO must abide by the
provisions of the HMO.
10.Dental and Vision benefits for employees selecting either HMO option will be
provided by the HMO.
167
11. The rate structure for the Medical Plan options shall consist of four-tiers:
employee only; employee plus spouse; employee plus children; and, employee
plus spouse and children. Employee contributions will be made semi-monthly
on a pre-tax basis.
12. The rates for the self-funded options ("Basic" and "Union Best") will be
actuarially determined each plan year, based on previous year's claims
experience. The rates for the HMO options will be as quoted by the
respective insurance carriers. The Company contributions to the HMO options
will not exceed contributions to self-funded options.
13. The employee contribution for dependent coverage under the "Basic" and HMO
options shall not exceed 20% of the cost of applicable level of dependent
coverage.
14. The employee contribution for employee only coverage under the "Union Best"
option shall not exceed 15% of the cost of employee only coverage.
15. The employee contribution for dependent coverage under the "Union Best"
option shall not exceed 20% of the cost of the applicable level of dependent
coverage; plus 15% of the cost of employee only coverage.
16. The Joint Wages and Benefits Committee shall evaluate claims experience and
actuarially determined rates in each year of the Collective Bargaining
Agreement.
17. If option (a) receives enrollment of less than 5% of eligible participants
in any plan year, the Company will not offer this option in subsequent plan
years unless the Bargaining Unit agrees to pay up to $20,000 in
administrative expenses unique to option (a). If option (a) receives
enrollment of greater than 5%, but less than 10%, the Bargaining Unit will
have the option of not offering this option in subsequent years OR sharing
--
equally all administrative expenses (not to exceed $10,000 as the Union's
share) unique to option (a) with the Company.
18. The medical options, with the exception of the fully-insured HMO's, will
have a $1,000,000 lifetime maximum benefit. Reinsurance is included with a
$300,000 specific stop loss coverage.
19. A Dental PPO will be implemented as soon as practicable. There will be no
reduction to benefits if an employee utilizes a dentist outside of the panel
until the panel and discounts are larger as determined by Joint Wages and
Benefits Committee.
20. Coverage under the Medical Plan for any participant shall immediately
terminate on the earliest of the following dates:
a) The last day of the calendar month during which the participant
voluntarily terminates or is dismissed from the employment of the
Company, or otherwise ceases active work for the Company, except:
i) in the event of retirement, the participant is eligible for
continuance of coverage on the date of his retirement, provided
he was covered under the Plan on the day prior to his retirement.
However, a participant who terminates employment with the Company
with vested retirement rights in the Company's Retirement Plan
and later retires upon reaching normal retirement age, is not
eligible for coverage under this Plan;
b) The last day of the calendar month during which the participant enters
full-time military service;
c) The last day of the calendar month for which contributions were last
paid;
d) The date the Plan terminates.
22.5 Wellness Program
- ---- ----------------
168
1. Employees in the Bargaining Unit shall be eligible to participate in the
Company's Wellness Program. The following requirements shall apply:
a) Employee's participation shall be voluntary.
b) Employee's health care premiums shall not be, in any way, affected by their
"Health Risk" category assessment.
c) Entire cost of the Wellness Program paid by Company
22.6 Group Life Insurance
- ---- --------------------
1. All regular, full-time, Bargaining Unit employees shall have Group Life
Insurance coverage with a basic benefit level of $50,000. Employees who
"retire" under the qualified Retirement plan after 1/1/95 will receive a
life insurance benefit in the amount of $10,000.
2. Sierra will provide Bargaining Unit employees the opportunity to purchase
optional life insurance (in excess of the base amount provided at no cost
by Sierra) at employee cost. This will be in the form of Group Universal
Life subject to any underwriting restrictions imposed by the insurance
carrier. Employee contributions will be made semi-monthly on a post-tax
basis.
22.7 Employee Discount
- ---- -----------------
1. Regular Bargaining Unit employees receive a 50% discount on electric
service, a 25% discount on natural gas service, and a 50% discount on water
service. These discounts apply only to services provided by Sierra Pacific
Power Company. Employees will pay any applicable taxes levied by the
Internal Revenue Service as established each year for the following year.
22.8 Long-Term Disability Income Plan
- ---- --------------------------------
1. Sierra will provide Bargaining Unit employees the opportunity to purchase
optional long-term disability income insurance at employee cost.
2. Bargaining Unit employees will pay premiums in excess of the insurance rate
determined by the carrier until the funding shortfall associated with the
conversion from self-insured to fully insured is repaid.
3. Coverage amount is equal to 66 2/3% of monthly base pay
4. Maximum benefit amount is $2,500 per month
5. The "own occupation" disability period is twenty-four (24) months
6. The option to enroll or terminate participation will be limited to an
annual open enrollment "window"
7. Premiums will be paid on post-tax basis.
8. At such time as CIGNA verifies the funding shortfall has been eliminated,
thus permanently absolving Sierra Pacific Power Company of any financial
responsibility for past, current, or future claims, the premiums shall be
adjusted to those actuarially justified based on actual claims experience.
169
22.9 Benefits for Part-Time Employees
- ---- --------------------------------
1. The following provisions apply to part-time employees hired on or after
January 1, 1995, and to part-time employees who assume full-time status and
subsequently revert to part time on or after January 1, 1995, and to full-
time employees who become part-time on or after January 1, 1995.
a) Allowance for vacation, sick leave, holidays and other nonproductive
time will be prorated as described in Title 3.5(a).
b) To participate in the benefits programs, employees must work a minimum
of 20 hours per week.
c) All welfare benefits will have the appropriate premium allocation
between Company and the employee based on the following formula:
1. Twenty (20) hours per week = one-half (1/2) time.
2. More than twenty (20) but less than thirty-one (31)
hours per week = three-quarter (3/4) time.
3. Thirty-one (31) or more hours per week = full time.
22.10 Joint Wages and Benefits Committee
- ----- ----------------------------------
1. A Joint Benefits Committee was established as of January 1, 1995, for the
purpose of reviewing Medical, Benefit and Dependent Care costs, issues and
trends and to make non-binding recommendations for improving savings and
enhancing Medical, Benefit and Dependent Care Programs/Policies and to
assist employees in dealing with Child/Elder Care issues. The Joint
Benefits Committee meets at least Quarterly unless mutually agreed to meet
more often when necessary. Direct payroll costs for Bargaining Unit
members are shared equally by Local #1245 and Sierra Pacific Power Company.
Either party may cancel this agreement with 30 days notice.
2. In recognition of the continuing need and success of the Joint Benefits
Committee, as of January 1, 1998, this Committee is expanded to include
wages and the name is changed to Joint Wages and Benefits Committee. The
Committee will consist of the Union Business Representative and four (4)
Union members and the Representative of the Vice President-Human Resources
and four (4) MPA employees assigned by the Vice President. The Committee
will be chartered to review health and welfare plans, pension and 401(k)
plans and wage inequities and adjustments during the term of the contract.
3. As assigned during the 1997 contract negotiations, this Committee will
analyze the feasibility of implementing Paid Time Off (PTO), cash balance
retirement plan, Medicare coordination (carve out), short term disability
and flex benefits plans, and any other benefits as mutually agreed for
Bargaining Unit Employees. The Committee may make a recommendation for
ratification not later than July 1, 1999. These issues shall be separate
from normal contract negotiations and will require a separate ratification
vote.
TITLE 23
--------
DEMOTION AND LAYOFF PROCEDURE
170
23.1
I. General Rules
(a) Employees shall be given as much notice as practicable of
Company's proposed action. Following such notice, and prior to the date
of the actual layoff, employees to be affected by the procedure shall be
considered as though they have already been demoted, and notwithstanding
the provisions of Title 16, have their bids to fill vacancies in the
normal line of progression considered under the provisions of VI below.
(b) An employee's Company seniority, as defined in Sections 3.7 and
8.1 shall be determining factors in the application of this procedure.
(c) Where a vacancy in an appropriate classification exists, the
filling of such vacancy shall be in accordance with the appropriate
provisions of this procedure. If such vacancies exist at more than one
(1) headquarters, Company shall provide an employee with a list of such
vacancies and the location thereof. Employee may then elect to fill any
of such vacancies for which he has sufficient Company seniority [I(b)].
(d) An employee may not elect to demote another employee whose Company
seniority is equal to or greater than his own. An employee may not demote
an employee in a classification having a wage rate higher than that of his
own classification.
(e) Employees scheduled for demotions under this procedure shall
exercise one (1) of two (2) options:
1. Employee may demote a junior employee in the employee's
present job classification at another headquarters, or
2. Employee may demote within his occupational group at his
present headquarters.
In either of these options, the demoted employee shall be considered
to have displaced the most junior employee in the classification.
If the exercise of Options (e) 1) and/or (e) 2) would result in a
senior employee being laid off, then, and only then, the employee may
exercise Option 3). If exercise of this Option would still result in a
senior employee being laid off, the employee may then exercise Option 4).
3. Employee may demote a junior employee in any occupational
group at his present headquarters.
4. Employee may demote a junior employee in any occupational
group at any headquarters.
Options 3) and 4) above are intended to protect employees whose job
classifications fall "below the entry level line", but who have more
seniority than other employees in occupational groups and/or headquarters.
In either of these options, the demoted employee shall be considered to
have displaced the most junior employee in the job classification at that
headquarters location.
(f) In the application of this procedure, an employee shall not be
placed in a job unless qualified to perform the duties.
II. Notices
171
The following notices shall be given in connection with the demotion
and layoff provisions of this procedure.
(a) Company will give an employee who is to be demoted as much notice
thereof as possible, but not less than three (3) days, advising him of the
classification to which he is to be demoted and whether there are any jobs
with respect to which he may exercise an election by filling a vacancy or
by demoting another employee.
(b) Not more than three (3) days after receiving the notice provided
for in Subsection (a), the employee shall advise the Company of his
decision with respect to exercising the election. If he desires to
exercise the election, Company shall, within two (2) days thereafter,
provide him with a list of the jobs and the locations thereof to which the
election may be applied.
(c) Within three (3) days after receipt of the list described in
Subsection (b), the employee shall notify Company of his election to
transfer and indicate the job locations in the order of his preference.
Preferential consideration shall be given to employees in the order of
their Company seniority. While Company shall endeavor to give effect to
an employee's preference in the order he has indicated, Company seniority
shall be the determining factor where two (2) or more employees express a
preference for a single job classification or headquarters location.
Company shall notify an employee as to the specific location to which he
will be transferred and the effective date of the transfer.
(d) An employee's failure to give the notices prescribed in
Subsections (b) and (c) will operate to forfeit his right of election.
(e) Any transfer resulting from the application of this Section shall
be effective not later than fifteen (15) days from the giving of the
notice provided for in Subsection (a).
III. When a demotion is to be made in a job classification(s) at a Company
headquarters [see I(e)], the employee(s) with least Company seniority in
such classification(s) shall have the option to:
(a) Elect to displace that employee in his same classification and
occupational group within the Company who has less Company seniority than
he.
(b) Elect to demote to the next lower classification in the reverse
order of the normal line of progression in his occupational group.
An employee shall be demoted on a step by step basis; that is, he
shall first be demoted in the reverse order of the normal line of
progression for his classification to the next lower classification. If
successive demotions must be made, the same procedure shall apply at each
step until the employee is either placed in another job or is laid off.
If more than one (1) demotion is to be made, the described procedure shall
first be applied to the highest classification to be affected, and then to
successively lower classifications.
(c) If an employee cannot for any reason effect an election in
accordance with (a) or (b) above, he shall demote into the general
demotional pool.
(d) All jobs below dotted line, including Laborer and Building
Services Worker, in Exhibit C, shall be considered as a general demotional
pool for demotion purposes. All demotions to be by Company seniority.
(e) In all demotions and/or layoffs, the employees demoting into a job
must be able and willing to perform the duties of the job with a minimum
of further training. Company shall make the determination of minimum
training needed in all such cases.
172
(f) Journeymen who can demote apprentices shall retain Journeyman
status and the junior apprentice(s) shall be demoted.
IV. Layoff
If there is no job to which the employee can demote under III above,
he or she will be laid off.
V. Notice of Layoff
When it is necessary for Company to lay off employees because of lack
of work, Company shall give employees involved as much notice thereof as
practicable, but in no event shall an employee be given less than thirty
(30) calendar days' notice of layoff, provided, however that notice of
layoff need not be given to employees who are employed on a temporary or
probationary basis.
VI. Accelerated Promotion
For the purpose of enabling employees who have been demoted or
transferred under the provisions of this procedure, Company will give
preferential consideration in the following sequence to the bids made by
such employees on any job vacancy:
(a) Bids made by employees who formerly worked in such job
classification and headquarters; demoted from such classification from
such headquarters. An employee's bid shall not be considered under this
subsection if following his demotion or transfer he has not exercised each
opportunity available to him to bid on a job in his former classification
and headquarters;
(b) Bids made by employees listed in Subsection (a) above who formerly
worked in such job classification.
In considering, under Subsection (a) or (b), bids received from two
(2) or more employees on the same job, Company shall give preferential
consideration to the bid made by the employee who has the greatest Company
seniority.
An employee who has been demoted or transferred under the provisions
of this procedure who thereafter voluntarily removes himself from the Line
of Progression and occupational group to which he was previously
transferred or demoted shall not be given consideration under this
section.
VII. Enabler
By written agreement between Company and Union, special provisions may
be substituted for the provisions of this procedure. (Added 5/1/82)
TITLE 24
--------
TERM OF AGREEMENT
24.1 This Agreement shall take effect as of January 1, 1998. The term of
this Agreement shall continue in full force and effect until the first day
of January 2001 and thereafter from year to year unless written notice of
change or termination shall be given by either party ninety (90) days
prior to the expiration date above or the expiration date of any year
thereafter.
24.2 Whenever notice is given for changes, the nature of the changes
desired must be specified in the notice, and until a satisfactory
conclusion is reached in the matter of such changes, the original
provision shall remain in full force and effect.
173
24.3 This Agreement shall not be amended or supplemented except by
agreement of the parties hereto, reduced to writing and duly signed by
each.
24.4 This Agreement cancels and supersedes that certain Agreement and
Exhibits attached thereto, entered into on January 1, 1995 , by the
parties hereto.
174
AGREEMENT BETWEEN SIERRA PACIFIC POWER COMPANY
AND LOCAL UNION 1245 OF THE
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AFL-CIO
JANUARY 1, 1998 THROUGH DECEMBER 31, 2000
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written, acting by and through their duly
authorized officers.
SIERRA PACIFIC POWER COMPANY LOCAL UNION 1245 OF THE
INTERNATIONAL BROTHERHOOD
OF ELECTRICAL WORKERS, AFL-CIO
/s/ Malyn Malquist
- ---------------------------------
Malyn Malquist, COB/CEO/President Jack McNally, Business Manager
/s/ Mary Jane Willier
- ---------------------------------
Mary Jane Willier, Vice President, Howard Stiefer, President
Human Resources
John Stralla, Business Representative
APPROVED:
J. J. Barry
International President
175
1998NEGOTIATING COMMITTEE MEMBERS
COMPANY UNION
M. Smart, Chair J. Stralla, Chair
B. Bullock G. Aramini
F. Gonzales T. Cornell
K. Grosulak S. Downs
B. MacMullen G. Garrison
K. Smith M. Hinton
D. Huntsman
W. Paterson
S. Salazar
R. Weisshaar
B. Wilk
176
ATTACHMENT I
EXHIBIT "A" (1)
(As Amended January 1, 1998)
WAGES
- -----
. Annual increases (All classifications except for Clerical and Buildings and
Grounds)
. 1998 Base 2.75% Target Incentive 3.0%
. 1999 Base 2.75% Target Incentive 3.0%
. 2000 Base 2.75% Target Incentive 3.0%
Clerical and Building and Grounds classifications:
. 1998 Base 1.25% Target Incentive 3.0%
. 1999 Base 1.25% Target Incentive 3.0%
. 2000 Base 1.25% Target Incentive 3.0%
. Shift premium 1998 1999 2000
. 2nd shift $1.00 $1.05 $1.10
. 3rd shift $1.20 $1.25 $1.30
. Enhanced Severance "Soft Landings" (see Title 19.11)
. Incentive compensation will be included in pension and 401k match
calculations
TEAM INCENTIVE AWARD
- ---------------------
Effective 1/1/98
Minimum corporate performance requirements must be achieved as under the current
plan: financial goals will be weighted 50% and customer satisfaction goals will
be weighted 50%.
Extraordinary events affecting performance of a goal may be considered by the
CEO in determining the size and existence of the award. IF MP&A EMPLOYEES
RECEIVE AN AWARD, BARGAINING UNIT EMPLOYEES WILL RECEIVE AN AWARD.
TIAs will be calculated as follows:
TIA TARGET PERCENT (3%) X ANNUAL BASE OF PRIOR YEAR WAGES X COMPANY RESULTS FOR
PERFORMANCE YEAR
Annual award to be paid in late February or early March for the prior year's
performance; the first award for bargaining unit employees may be paid in 1999.
177
All regular full time and part time employees with an overall satisfactory
performance rating (or above) and who work for the company through December 31st
may be eligible to receive a TIA. Employees who resign or are terminated during
the year (on or before December 31) will not receive a TIA. Prorated awards may
be made for employees with satisfactory performance who leave the company in the
event of retirement, long-term disability or death
Employees with less than satisfactory performance (as documented in the current
"Employee Performance Appraisal") will not receive a TIA. If an employee does
not receive an annual performance appraisal, that employee's performance will be
assumed to be satisfactory. By February 1st of each year, a list of all
employees whose performance is rated less than satisfactory will be presented to
the I.B.E.W. Business Representative. If a grievance is filed on behalf of
those employee(s) who are rated less than satisfactory, such grievance may be
referred directly to the third step of the grievance process.
TIAs will be based on standard (2,080) hours per year, not to include overtime.
TIAs will be prorated if an employee is absent from work for more than one
month.
(Added 1/1/98)
178
ATTACHMENT II
-------------
EXHIBIT "B" (1)
---------------
(as Amended January 1, 1998)
CLASSIFICATIONS AND JOB DESCRIPTIONS
------------------------------------
Note: Classifications preceded by an (*) are subject to the provisions of
Section 5.3(a), (b), (c), (d) and (e).
7653 *APPRENTICE, COMMUNICATIONS TECHNICIAN
--------------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of employees in higher classifications within
the general Measurement and Test Department Occupational Group while
training for Communication Technician. In order to gain experience for
advancement, he may be required to work alone or under direct supervision
on jobs for which he has been trained and instructed. Must hold a current
Second Class or higher Federal Communications Commission Radio Telephone
License or General Radio Telephone Operator License.
7635 *APPRENTICE, CONSTRUCTION REPAIRMAN
-----------------------------------
An employee who is engaged in performing work as an Assistant to, or
under the general direction of, employees in higher rated classifications
within the Construction Department while training for a Journeyman. In
order to gain experience for advancement, he may be required to work alone
or under direct supervision on jobs for which he has been trained and
instructed. The employee's educational and general qualifications must be
such that he is considered capable of attaining Journeyman status.
7684 *APPRENTICE, CUSTOMER SERVICEMAN
--------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Serviceman, Customer, while training for
a Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status. Must be able to write legibly and maintain a neat,
clean appearance and must be qualified to work with the public.
An Apprentice, Customer Serviceman shall be required by Company to
reside within a thirty-five (35) mile radius of the Company headquarters
to which they regularly report.
7641 *APPRENTICE, ELECTRICIAN
------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of employees in higher rated classifications
within the general Measurement and Test Department Occupational Group
while training for a Journeyman. In order to gain experience for
advancement, he may be required to work alone or under direct supervision
on jobs for which he has been trained and instructed. The employee's
educational and general qualifications must be such that he is considered
capable of attaining Journeyman status.
7645 *APPRENTICE, ELECTRICIAN, MAINTENANCE
-------------------------------------
An employee who is engaged in performing work as an assistant to, or
under the general supervision of, a Journeyman Maintenance Electrician.
In order to gain experience for advancement, he may be required to work
alone or under direct supervision on jobs for which he has been trained
and instructed. His education and general qualifications must be such
that he is considered capable of attaining Journeyman status.
7642 *APPRENTICE, ELECTRICIAN, UNDERGROUND
-------------------------------------
An employee who is engaged in performing work as an assistant to, or
under the general direction of an Underground Electrician while training
for a Journeyman. In order to gain
180
experience for advancement, he may be required to work alone or under
direct supervision on jobs for which he has been trained and instructed.
Employee's education and general qualifications must be such that he is
considered capable of attaining Journeyman status.
7681 *APPRENTICE, FABRICATOR/WELDER
------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Fabricator/Welder while training for a
Journeyman. In order to gain experience for advancement, the apprentice
may be required to work alone or under direct supervision on jobs for
which the employee has been trained and instructed. The general
qualifications and educational experience must be such that the apprentice
must be considered capable of Journeyman status.
7691 *APPRENTICE, FITTER
-------------------
An employee who installs and maintains gas and water pipes, conduits,
mains and accessories under the general direction of a Foreman, Fitter, or
other experienced and qualified personnel while training for a Journeyman
classification. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's education and general
qualifications must be such that he is considered capable of obtaining
Journeyman status. Before obtaining Journeyman status, he must qualify by
test and demonstrate an ability to handle tools and operate equipment,
such as earth boring machines, all types of tapping machines, pipe
locators, gas leakage detection equipment, Holiday detectors, concrete
saws, compressors and other equipment commonly used in the trade.
7692 *APPRENTICE, FITTER/WELDER
--------------------------
An employee who installs and maintains gas and water pipes, conduits,
mains and accessories under the general direction of a Foreman,
Fitter/Welder or other experienced and qualified personnel while training
for a Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's education and general
qualifications must be such that he is considered capable of attaining
Journeyman status. Before attaining Journeyman status he must qualify by
test under the requirements for gas and electric arc welding for
certification in accordance with Department of Transportation regulations.
Employees with one (1) year or more Company experience as a Fitter
transferring into this classification will be given credit for completion
of six (6) months time in the classification and shall not suffer a wage
reduction.
7651 *APPRENTICE, INSTRUMENT TECHNICIAN
----------------------------------
An employee who is engaged in performing work as an assistant to or
under the same general direction of an Instrument Technician while
training for a Journeyman. In order to gain experience for advancement,
he may be required to work alone or under direct supervision on jobs for
which he has been trained and instructed. The employee's educational and
general qualifications must be such that he is considered capable of
attaining Journeyman status.
7631 *APPRENTICE, LINEMAN
--------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Lineman while training for a Journeyman.
In order to gain experience for advancement, he may be required to work
alone or under direct supervision on jobs for which he has been trained
and instructed. The employee's education and general qualifications must
be such that he is considered capable of attaining Journeyman status.
7685 *APPRENTICE, MACHINIST
----------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Machinist while training for a
Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
181
7680 *APPRENTICE, MECHANIC
---------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Mechanic, while training for a
Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
7652 *APPRENTICE, MECHANIC, DIESEL/TURBINE
-------------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Diesel-Turbine Mechanic while training
for a Journeyman. In order to gain experience for advancement he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
7683 *APPRENTICE, MECHANIC, MAINTENANCE & CONTROL,WP
-----------------------------------------------
An employee who is engaged in performing as an assistant to, or under
the direction of a Maintenance Mechanic & Control, WP, while training for
a Journeyman. In order to gain experience for advancement he may be
required to work alone or under direct supervision on jobs for which he
has been instructed. The employee's educational background and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
7687 *APPRENTICE, METERMAN, GAS AND WATER
------------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Meterman, Gas and Water while training
for a Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained and instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
7643 *APPRENTICE, OPERATOR, WATER PLANT
---------------------------------
An employee who assists the Water Plant Operators as required and who
is in training to acquire the experience and develop the skills necessary
for advancement to Operator, Water Plant. In order to gain experience for
advancement, he may be required to work alone or under direct supervision
on jobs for which he has been trained or instructed. The employee in this
classification will be required to progress to the one-year rate of pay.
Grade II certification will be required to progress to the two year rate
of pay. His education and general qualifications must be such that he is
considered capable of attaining Journeyman status.
7689 *APPRENTICE, PLANT MECHANIC
---------------------------
An employee who is engaged in performing work as an assistant to, or
under the direction of a Plant Mechanic or Mechanic/Machinist or
Mechanic/Welder while training for Plant Mechanic. In order to gain
experience for advancement, he may be required to work alone or under
general supervision on jobs for which he has been trained and instructed.
His education and general qualifications must be such that he is
considered capable of attaining Journeyman status.
7632 *APPRENTICE, TECHNICIAN, ELECTRICAL, PLANT
------------------------------------------
An employee who is engaged in performing work as an assistant to, or
under the general supervision of a Journeyman Plant Electrical Technician.
In order to gain experience for advancement, he may be required to work
alone or under direct supervision on jobs for which he has been trained
and instructed. His education and general qualification must be such that
he is considered capable of attaining Journeyman status.
7690 *APPRENTICE, TECHNICIAN, LAB
----------------------------
182
An employee who is engaged in performing work as an assistant to or
under the same general direction of a Laboratory Technician while training
for a Journeyman. In order to gain experience for advancement, he may be
required to work alone or under direct supervision on jobs for which he
has been trained or instructed. The employee's educational and general
qualifications must be such that he is considered capable of attaining
Journeyman status.
7673 *APPRENTICE, TECHNICIAN, METER
------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of employees in higher rated classifications,
within the Electric Metering Department, while training for Technician,
Meter I. In order to gain experience for advancement, he/she will be
required to work alone or under direct supervision on jobs for which
he/she has been trained and instructed. The employee's educational and
general qualifications must be such that he is considered capable of
attaining Technician I status. Applicants will be expected to prove
possession of these qualifications by successfully passing a test with a
score of 75% or better.
8051 *CHIEF,CREW
-----------
An employee working with and directing the activity of a survey crew
in the absence of a Supervisor. Will be engaged in determining the
location of land boundaries to assist in properly locating the Company's
facilities. Must be a qualified Instrumentman or equivalent.
9893 *CLERK
------
An employee not required to have prior experience and generally is a
trainee for more advanced clerical positions. Duties may include but
shall not be limited to, operation of various office machines; collecting,
sorting, opening and receiving mail including pick up from and delivery to
the post office; running errands to outside locations; summarizing checks
and cash stubs and performing a variety of office duties not requiring
prolonged periods of training.
9730 CLERK, CASH PROCESSING, SENIOR
------------------------------
An employee who has demonstrated to the satisfaction of the Company, a
thorough knowledge of cashiering and the cash remittance processing system
by training and working in the cash operations unit. Will perform a
variety of skilled and unskilled tasks dealing with the orderly flow of
work within the cash operations unit. Such employees will be responsible
for:
1) The timely and accurate submittal of reports and records as
assigned,
2) Training cash remittance processing equipment operators and
Customer Services Representative cashiers,
3) Review and edit of work processed,
4) Operation of all cash remittance equipment including data
management computer and various office machines, and
5) Other assigned clerical functions as required. Directs the
activities of other departmental personnel as required.
Required to be effective when working with the public and responding
to customer requests and inquiries, as well as have other qualifications
and qualities generally accepted as being desirable in a customer services
classification. Required to make independent decisions as necessary to
satisfy customer needs and provide quality customer service.
9590 *CLERK, FIELD
-------------
An employee assigned to the Electric Department who performs field
work such as reading and computing demand meters, collection of delinquent
accounts, electric cut-ins and cut-outs. May be required to make up
blanket work and job orders in connection with local crew operations. May
also be required to perform various Stores Department duties
183
in the local warehouse, and other miscellaneous duties as required by the
Electric Department Supervisor.
Note: It is intended this classification be used only in the areas
----
where Company may not need the full-time services of certain Bargaining
Unit classifications, and to perform various other semi-skilled duties.
9624 *CLERK, PARTS
-------------
An employee who is familiar with automotive parts & supplies and is
qualified to perform, without direct supervision, and subordinate to the
Supervisor in charge, duties relating to the ordering, receiving,
shipping, handling, storing and disbursing of automotive and equipment
related materials and supplies. Shall be required to take physical
inventories, update a perpetual inventory system and perform related
clerical duties as necessary. The employee shall become familiar with the
Department's accounting and data processing procedures and other
applicable rules. May be required to update and operate a data entry
system for parts inventory control. Shall be required to operate Company
vehicles within the scope of foregoing duties. May be required to provide
general direction to any classification assigned him in performing the
work herein defined. May be assigned to perform other work as occasions
arise.
9875 *CLERK, PRINT SHOP
------------------
An employee who may be assigned to perform any and all routine or
advanced print shop functions and any other miscellaneous duties as
required. Must be qualified to operate various types of print shop
finishing equipment, such as a hydraulic paper cutter, high speed folder,
book binding machine, automatic collator, three-hole punch and copying
equipment through training or experience. Must be qualified through
training to assist the print shop in the absence of an Offset Press
Operator. Must be able to meet deadlines and produce top quality work,
and be capable of heavy lifting.
8640 *COORDINATOR, FLEET REPAIR/LICENSING
------------------------------------
An employee who is responsible for entering vehicle repair order data
into the Transportation Management Information System. These functions
shall be performed cost effectively, accurately, and in accordance with
departmental and Company guidelines, policies and procedures. Also
responsible for verification of all labor parts and commercial (outside
shop) costs for the fleet by direct computer input into the Transportation
Management System.
This position will also be responsible for performing all duties
related to licensing the fleet, both in Nevada and California. This shall
include any special permits that may be required. This entails
preparation of the necessary paperwork, securing the funds, obtaining the
license plates, registration, renewal tags and titles, either personally
or by mail, as required. Will be responsible for the maintenance of all
data and documents into the fleet vehicle files.
Requires comprehensive knowledge of overall fleet operations. Possess
good knowledge related to automotive maintenance terminology, practices,
parts, and licensing. Ability to communicate effectively and courteously
with Company and non-Company personnel. Possess experience of direct
computer data entry and comprehensive knowledge of Fleet Services
Department shop policies and procedures.
8944 *DRAFTSMAN
----------
An employee who is training for advancement to Senior Draftsman and
under general direction prepares sketches, diagrams, single line job
drawings and maintains up-to-date maps of Electric, Gas and Water systems.
From data provided, makes masters for job drawings and maps. May engage
in the operation and care of blue-printing and other duplicating machines,
miscellaneous minor maintenance of equipment. May assist in field
checking and perform clerical work related to the Drafting Department.
The employee must possess an aptitude for the work and a working knowledge
of mathematics, including
184
trigonometry. Some knowledge of utility operation is desirable. May be
required to pass an oral or written examination or performance test
covering these qualifications.
8380 *DRAFTSMAN, LAND
----------------
An employee who, under the supervision of the Right-of-Way Engineer,
or other Supervisor, assembles preliminary information and does skilled
drafting, and general tracing and mapping work in connection with the
acquisition of Rights-of-Way. Composes right-of-way papers, searches
County records, and processes other necessary forms for the granting and
procuring of easements, rights-of-way, highway and railroad crossing
permits, government permits, and other land documents. Plots profiles,
makes routine calculations, and reduces field notes. The employee must
possess the qualifications of a Rod and Chainman or the equivalent, with
experience or training in drafting. May be required to take an oral or
written examination or performance test covering these qualifications.
8390 *DRAFTSMAN, SENIOR
------------------
An employee who, under the supervision of the Drafting Supervisor,
prepares job maps and when required, makes field checks in connection
with such maps. Interprets and maps verbal and written instructions,
rough sketches, and data collected by Engineers and Estimators or
Surveyors. Consults standard maps of cities, subdivision plots,
railroads, and highways in connection with the preparation of new maps for
plotting distribution lines and facilities. Reproduces maps, inks in and
completes tracings, revises maps as changes occur. May do occasional
reducing of field survey notes and field checking. May be required to
make mechanical and architectural drawings. Performs other related duties
as may be required by the Supervisor. May be required to pass an oral or
written examination or performance test covering these qualifications.
8770 *DRIVER, TRANSPORT
------------------
An employee who drives truck transporting supplies and equipment;
loads and unloads trucks; may act as Field Clerk, taking care of
timesheets and material records; responsible for keeping tools in good
order; assists crews with work. Will be selected on the basis of
qualifications, experience and performance to operate a fifth-wheel
tractor with 2 or 3 axles which tows a trailer or semi-trailer.
6385 *DRIVER, TRANSPORT, HEAVY
-------------------------
An employee who drives truck transporting men, supplies and equipment,
often in remote areas and without direct supervision; loads and unloads
trucks; operates fixed and attached equipment; may act as Field Clerk,
taking care of time cards and material records; responsible for keeping
tools in good order; assists crews with work; must be familiar with
loading and tie-down procedures, permits, routes, clearances. Will be
selected on the basis of qualifications, experience and performance to
operate a fifth-wheel tractor with 2 or 3 axles which tows a semi-trailer
or trailer or multiple trailers for standard loads or special permit loads
which may be loaded with a variety of cargoes of supplies or equipment.
Must be qualified to load and unload power-operated construction
equipment.
8970 *DRIVER, TRUCK
--------------
An employee who drives truck transporting men, supplies and equipment;
loads and unloads truck; operates fixed and attached equipment; may act as
Field Clerk taking care of time cards and material records; responsible
for keeping tools in good order; assists crews with work; may not tow
trailers rated at 6,000 pounds gross vehicle weight or more. May not
operate truck having more than two (2) axles.
8845 *DRIVER, TRUCK, HEAVY
---------------------
An employee who drives truck transporting men, supplies and equipment;
loads and unloads truck; operates fixed and attached equipment; may act as
Field Clerk taking care of time cards and material records; responsible
for keeping tools in good order; assists crews with work; must be familiar
with loading and tie-down procedures. Will be selected on basis of
qualifications, experience and performance to operate a truck with three
(3) or
185
more axles such as a dump truck, winch truck, boom truck, flat rack, or a
similar truck or a two (2) axle truck towing a trailer rated at 6,000
pounds gross vehicle weight or more.
7340 *ELECTRICIAN
------------
An employee who is qualified by training and knowledge to construct,
erect, and maintain substations. Must be qualified by training and
knowledge to install, maintain, test, and repair substation, generating
station and distribution equipment including but not limited to
transformers, regulators, tap changing devices, circuit breakers,
switchboards, generators, and other rotary equipment. Must be qualified
to perform switching. Must be able to lay out, assemble, install, test,
and maintain electrical fixtures, apparatus and wiring. When under direct
supervision may be required to perform work on protective relaying,
communications equipment, Supervisory control and related equipment. Must
have successfully completed the Electrician Apprentice training program or
equivalent.
7310 *ELECTRICIAN, MAINTENANCE
-------------------------
An employee who is a Journeyman and is engaged in testing, repairing,
maintaining and installing all types of electric equipment in generating
stations. May be required to do plant and plant substation switching.
May be required to do incidental welding, such as tack hangers and test
welding machines after repair, etc. Must be qualified to operate station
crane. His background of apprenticeship and experience must be such as to
qualify him to perform these duties with skill and efficiency. He may
also be required to instruct or advise operating personnel on problems
pertaining to electrical equipment. He must be thoroughly familiar with
Company's electrical and mechanical tagging and safety rules and be able
to render first aid. May at times be required to drive light and heavy
vehicles.
7320 *ELECTRICIAN, MAINTENANCE, GAS AND WATER
----------------------------------------
An employee who is a Journeyman Electrician and is engaged in
installing, maintaining, testing, and repairing all types of electrical
equipment connected with or related to the Gas and Water Department's
operating facilities. This includes all electrical equipment, existing
and future, being utilized at booster pump stations, raw water pump
stations, deep well stations, regulatory stations, water treatment plants,
gas plants, reservoirs, upstream monitoring stations, diversion works,
transmission and distribution mains, and water storage tanks. Will be
required to perform installation, maintenance, testing and repairing tasks
to Gas and Water Department telemetering equipment. His background of
apprenticeship and experience must be such as to qualify him to perform
these duties with skill and efficiency with or without direct supervision.
Must be thoroughly familiar with Company's electrical and mechanical
tagging and safety rules and be capable of rendering first aid. May be
required to instruct and advise department operating personnel on problems
and safety pertaining to electrical and telemetering equipment.
7325 *ELECTRICIAN, PLANT
-------------------
An employee who is a Journeyman and is engaged in testing, repairing,
maintaining and installing all types of electric equipment in generating
stations. May be required to do plant and plant substation switching.
May be required to do incidental welding, such as tack hangers and test
welding machines after repair, etc. His background of apprenticeship and
experience must be such as to qualify him to perform these duties with
skill and efficiency. He may also be required to instruct or advise
operating personnel on problems pertaining to electrical equipment. He
must be thoroughly familiar with Company's electrical and mechanical
tagging and safety rules and be able to render first aid.
7345 *ELECTRICIAN, UNDERGROUND
-------------------------
An employee who is a Journeyman qualified by training and knowledge of
underground circuits, substations and apparatus to test, maintain and
install duct line, cable, conduits, risers, Company-owned customer outdoor
lighting equipment, circuit breakers, transformers and associated
equipment. Must be able to climb and perform Lineman's work such as
making underground connections on customer services and substation feeder
installations. Is required to drive truck and operate the fixed and
attached equipment. May be required to keep time cards and material
records.
186
7615 *FABRICATOR/WELDER
------------------
An employee engaged in making and repairing parts of equipment and
tools. The forge and trip hammer are used for sharpening and tempering of
tools. Must read and interpret drawings and layouts that are given as
guides for the desired end product. Performs basic metal working such as
sheet metal layout, threading bolts and pipe, cutting and fitting of large
pipes and culverts, layout and fitting of all types of structural shapes.
Must be knowledgeable in the use of electric welding and cutting,
including metal inert gas (MIG), heliarc (TIG) welding, hard surfacing,
and all aspects of acetylene welding including cutting and brazing.
7543 *FABRICATOR/WELDER, CERTIFIED
-----------------------------
A Journeyman employee engaged primarily in the repair and maintenance
of light and heavy equipment. Performs basic metal working such as sheet
metal layout and forming, threading of bolts and pipe, cutting and fitting
of large pipes and culverts, layout and fitting of all types of structural
shapes. Performs specialty work that is not available from outside
suppliers, such as, construction of trailers, meter manifolds, and
associated piping, meter sets, access gates, platforms, valve tools/keys,
rebar fabrication, and special engineering designs. Performs welding on
man-related equipment such as manlifts and derricks. Fabricates, repairs,
sharpens, and tempers tools and equipment using a forge, anvil and trip
hammer.
Field work performed includes substation modification and erection,
aluminum buss bar welding, hydro power penstocks, gates and component
fabrication, aerial welding and repair. Emergency repair of gas, water,
electrical systems, as well as vehicle and equipment repair may also be
required.
Must be able to read and interpret drawings and layouts that are given
as guidelines for the desired end product, as well as listening to a
verbal description of a desired product or problem and come up with an
acceptable solution. Must have a working knowledge of math to perform
layouts as well as being informed as to the types of materials available
from suppliers to do the various jobs. Must be knowledgeable in the use
of electric welding and cutting, including metal inert gas (MIG), heliarc
(TIG) welding, hard surfacing, and all aspects of acetylene welding
including cutting, brazing, and silver soldering. Must also have a
working knowledge of plumbing, both pressure and non-pressure systems.
Requires certification in ASME Schedule 40, 6-inch pipe in the 6G (45
angle) position, and structural ASME1 plate using E7018 weld rod in the
vertical and overhead position.
8620 *FACILITIES LOCATOR
-------------------
An employee who has had at least one (1) year's experience as either
an Apprentice Lineman, Apprentice Fitter, or equivalent experience. The
employee's educational and general qualifications must be such that he is
considered capable of attaining knowledge of gas, water or electrical
facilities and capable of learning the application of pipe and cable
locator equipment to locate these facilities. When it is necessary to
connect to live electrical circuits with locating equipment or to enter
vaults, containing live circuits, only an employee with one (1) year's
experience as Apprentice Lineman or equivalent experience will be
qualified to do so. May be required to investigate and report on damage
to Company facilities. Must be able to write legibly and maintain a neat,
clean appearance and must be qualified to work with the public.
7620 *FITTER
-------
An employee who is qualified by experience, training and knowledge to
install and repair water and gas services, mains and appurtenances, locate
and repair leaks, do miscellaneous pipe fitting and operate equipment such
as earth boring machines, all types of tapping machines, pipe locators,
gas leakage detection equipment, Holiday detectors, concrete saws and
compressors. He locates and repairs leaks. Understands the use of tools
in
187
connection with pipe work and the installation of all types of pipe. May
be required to prepare ground for installation of mains and services and
restore ground to required condition. May be assigned to other work as the
occasion arises, including the installation of meters and regulators; may
be required to relight gas appliances during seasonal relighting program
or in times of emergency. Must have six (6) months of applicable
experience or equivalent in the Gas and Water Department.
7460 *FITTER/WELDER
-------------
An employee who installs and repairs gas and water pipes, conduits,
mains and accessories. Does gas and electric welding and is required to
be certified by testing in accordance with the Department of
Transportation regulations and repair work on gas and water lines and
their accessories as required and, in addition, will be required to
operate all tools used on gas and water leakage detection equipment and
Holiday detectors. Will be required to prepare ground for the
installation of mains and services and restore ground to required
condition. May be assigned to other work as the occasion arises,
including the installation of meters and regulators and may be required to
relight gas appliances during seasonal relighting program or in times of
emergency.
6022 *FOREMAN, COMMUNICATION SYSTEMS, WORKING
----------------------------------------
An employee who is engaged in the installation, maintenance, repair
and adjustment of communication facilities including but not limited to
two-way radio, telephone microwave, power line carrier, Supervisory
control, telemetering equipment, ESCC computer systems and other work as
required. Must be capable of directing men and planning work.
1. Must hold a current Federal Communications Commission
General Radio Telephone Operator's License or have taken and passed
a Sierra Pacific Power Company certification test with a grade of
75% or higher.
2. Must have a total of two (2) years' experience as a
Communication Systems Technician.
6021 *FOREMAN, COMMUNICATIONS, WORKING
---------------------------------
An employee who is engaged in the installation, maintenance, repair
and adjustment of communication facilities including but not limited to
two-way radio, telephone, microwave, power line carrier, Supervisory
control and telemetering equipment and other work as required. Must be
capable of directing men and planning work.
1. Must hold a current Federal Communications Commission
General Radio Telephone Operator's License or have taken and passed
a Sierra Pacific Power Company certification test with a grade of
75% or more.
2. Must have a total of two (2) years' experience as a
Communication Technician Class I or its equivalent.
6281 *FOREMAN, CONSTRUCTION, WORKING, HEAVY
--------------------------------------
An employee who is qualified to work with, direct, and coordinate the
daily activities of a crew engaged in heavy construction, maintenance,
and/or repair of all civil/structural portions of utility facilities.
Must be thoroughly qualified by training, knowledge, and experience as to
the proper methods and procedures required to perform tasks typically
classified as carpentry, masonry, concrete work, ironwork, sitework, and
earthwork, in a safe and efficient manner. May be required to direct and
coordinate activities of Laborers, Construction Workers, Apprentice
Construction Repairmen, Construction Repairmen, Powdermen, Construction
Inspectors, Truck Drivers, Transport Drivers, and Equipment Operators,
although crew size will not be limited in number or by classification.
Must have a comprehensive working knowledge of mathematics, basic
surveying techniques, construction materials, methods, and equipment, and
the use of hand and power tools. Must be able to interpret drawings,
prints, sketches, specifications, and other written documents. Must have
effective oral and written communication skills. Will be required to
prepare proper notes, records, and other documentation as required for all
daily job
188
activities. Must be a Journeyman Construction Repairman with not less than
two (2) years' experience as such or equivalent.
6394 *FOREMAN, CONSTRUCTION, WORKING, LIGHT
--------------------------------------
An employee who is qualified to work with, direct, and coordinate the
daily activities of a crew engaged in light construction, maintenance,
and/or repair of all civil portions of utility facilities. Must be
thoroughly qualified by training, knowledge, and experience as to the
proper methods and procedures required to perform tasks, typically routine
in nature, classified as carpentry, masonry, concrete work, and earthwork,
in a safe and efficient manner. May be required to direct and coordinate
activities of Laborers, Construction Workers, Apprentice Construction
Repairmen, Construction Repairmen, Construction Inspectors, Truck Drivers,
Transport Drivers, and Equipment Operators, although crew size will not be
limited in number or by classification. Must have a comprehensive working
knowledge of mathematics, basic surveying techniques, construction
materials, methods, and equipment, and the use of hand and power tools.
Must be able to interpret drawings, prints, sketches, specifications, and
other written documentation. Must have effective oral and written
communication skills. Will be required to prepare proper notes, records,
and other documentation as required for all daily job activities. Must be
a Journeyman Construction Repairman with not less than one (1) year's
experience as such or equivalent.
6031 *FOREMAN, CONTROL, WORKING
--------------------------
An employee engaged in the installation, maintenance, repair and
adjustment of substation equipment including transformers, regulators,
circuit breakers, switches, relaying, power line carrier, substation
metering, telemetering and other work as required. Must be capable of
directing men and planning work. Must be qualified to perform switching.
Must have at least two (2) years' experience as a Substation Technician.
Must be proficient in using a personal computer.
6825 *FOREMAN, CUSTOMER SERVICE REPRESENTATIVE, WORKING
--------------------------------------------------
An employee who is directly in charge of and directs a crew of
Customer Services Representatives in the day-to-day operations of the
Phone Center, Customer Lobby, Customer Billing, Customer Systems Controls,
Credit and Collections, Service Center and/or District Office operations.
Will also be in charge of and direct the work of meter reader/collectors.
Will be responsible for scheduling, logging attendance, maintaining daily
work schedules, time sheets and monitoring Customer Services
Representatives and Meter Readers/Collectors to assure quality in their
transactions with customers. Also prepare their performance appraisals
and be thoroughly familiar with the work procedures and methods for the
area of work assigned and skilled in all areas of the Customer Service
Representative position. They may be required to assist representatives
in on-the-job training and answer questions as they arise. They will also
handle those customers who wish to have their questions or complaints
answered on a higher level. Required to make independent decisions as
necessary to satisfy customer needs. Also required to perform tasks as
delegated by their Supervisor. Must have successfully performed as a
Customer Service Representative for at least three (3) years.
6820 *FOREMAN, DISTRIBUTION, WORKING
-------------------------------
An employee who, under general supervision, is directly in charge of
and responsible for the operation of the internal and external mail
distribution services and other duties as assigned. Must possess a
thorough knowledge of the corporate mail processing system, equipment
policies and procedures, and have the ability to meet corporate
distribution deadlines, U.S. Postal regulations, requester delivery
schedules and perform daily recordkeeping duties. Must have completed a
minimum of two (2) years as a Mail Inserter Operator or equivalent.
He/she shall relieve in subordinate capacities when required and direct
and plan the work of others assisting him/her, including the training of
personnel. Must be able to communicate effectively and be capable of
heavy lifting.
6277 *FOREMAN, GAS PRESSURE SYSTEM, WORKING
--------------------------------------
189
An employee who is engaged in the operation and maintenance of Gas
System Pressure facilities and equipment who possesses the necessary
knowledge and skill through experience and training to work with and
direct the activities of Gas System Pressure employees.
Must be familiar with equipment, instruments, and procedures used in
pressure regulation, custody transfer measurement, forecasting daily gas
system requirements, gas analysis, gas odorization, and the gas leak
survey program. Must be capable of directing personnel and planning work.
Must have two (2) years' experience as Gas Pressure Operator or
equivalent. Must be familiar with federal and state regulations and
recordkeeping requirements as related to the safe and reliable
distribution of gas within the system. Will be required to assist in
training personnel in all phases of Gas System Pressure activities. Must
be capable of testing and calibrating various instruments used in Gas
System Pressure operation. Will be subject to on-call assignments as
required and may be required to carry a pager or other type of remote
notification system.
6275 *FOREMAN, GAS AND WATER, METER SHOP, WORKING
--------------------------------------------
An employee working with and directing the activity of Gas and Water
Meter Shop employees. May be required to field test gas meters, water
meters and devices. Must be capable of directing men and planning work.
Must have a total of two (2) years as Gas Meterman or equivalent
knowledge.
6025 *FOREMAN, GAS AND WATER, WELDING, WORKING
-----------------------------------------
To be filled on a upgrade basis, only, when an employee who is
incumbent in the classification of Foreman, Electric, Gas & Water,
Construction, Working, is required to do qualified gas and electric
welding on gas and water lines and their accessories.
. *FOREMAN, GENERAL, WORKING (UPGRADE ONLY)
-----------------------------------------
An employee assigned on an upgrade basis only at the Company's
discretion, to assume a leadership role under any combination of the
following circumstances:
. on special projects when required to direct crew operations and
coordinate all aspects of construction, maintenance and repair of
company facilities. Will aid in the design of facilities and also
participate in the planning stages of such projects,
. replace a supervisor who will be absent from their duties for an
extended time period,
. when directing the work of other foremen and their crews (foreman
over foreman),
. other circumstances as deemed appropriate by management.
An employee assigned to this upgrade must have been a journeyman in their
occupation for a minimum of six (6) years or a foreman or equivalent for
at least two years. Will be required to communicate effectively and
contribute to a positive team environment to provide quality service to
both external and internal customers.
. See Wage Table for appropriate job class upgrade number.
6283 *FOREMAN, HEAVY, EQUIPMENT, WORKING
-----------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to work with and direct the activities of
equipment operators, heavy equipment operators, heavy truck drivers and
transport drivers engaged in heavy construction, maintenance or
replacement of facilities. Must have demonstrated satisfactory
performance as a Senior Equipment Operator for at least one (1) year or
have equivalent experience. May be required to assist in training. Must
be familiar with all Company and governmental agency policies, procedures
and requirements relative to operating, maintaining, licensing and/or
permitting of heavy equipment. Must be able to interpret plans, sketches,
specifications and written instructions. Will be required to keep time
for himself, as well as for those under his supervision. Will be required
to keep proper notes and records associated with daily activities,
equipment maintenance schedules, safety inspections, and operator training
schedules. Must be able to write with clarity in a neat and legible
fashion.
190
6396 *FOREMAN, HYDRO/PEAKING, WORKING
--------------------------------
An employee who, under general supervision, is in charge of and
responsible for the operation of hydro, diesel, and combustion turbine
plants and maintenance of the hydro plants and related waterways. Must
have at least two (2) years experience as a Hydro/Peaking Operator and
possess the knowledge and skill through experience and training to direct
and assist the Hydro/Peaking Operators and Assistant Hydro/Peaking
Operators. He shall determine the lumber and hardware needed for
rebuilding flumes or penstock. He shall inventory the materials stored at
the Verdi yard. He shall be responsible for making proper record of plant
operations, maintenance, tests and unusual incidents. He shall be
thoroughly familiar with Company dispatching and, clearance rules,
electrical and mechanical tagging and safety rules, and be qualified to
render first aid. During extended periods of shutdown may be assigned to
work in other Power Production Departments in jobs for which he is
qualified, subject to the provisions of Section 4.3 of the Agreement. In
such case, he shall work the hours of day employees and such hours shall
become his regular working hours in applying the provisions of Title 6 and
10 of the Agreement. He may also be required in such case to report to
the appropriate Company Operations Center for work on regular working
days.
6041 *FOREMAN, LAB, WORKING
----------------------
An employee who, under general supervision, is directly in charge of
and supervises all aspects of power station water treatment and the
operation of water and fuel laboratories. Must be capable of analyzing
data from analyses and recommending proper courses of action. Will train
operators and technicians in chemical analyses and operation of water
treatment equipment as required. He must have not less than two (2) years
of prior experience as a laboratory technician or chemist and completed
formal courses in general chemistry, qualitative analysis, quantitative
analysis, organic chemistry or Company-approved equivalents.
6051 *FOREMAN, LINE, WORKING
-----------------------
An employee engaged in performing all classes of overhead and
underground transmission and distribution line work and construction,
erection and maintenance of substations,** having full charge of and
directing entire crew. Must be a Journeyman Lineman with not less than
two (2) years of experience as such.*** Must be qualified to perform
switching. Is required to drive line truck and operate the fixed and
attached equipment. Will keep time cards and material records.
** See Letter of Understanding dated July 13, 1967, as amended by
Supplementary Agreement dated May 10, 1973.
*** See Supplementary Agreement dated May 10, 1973, concerning
qualification of Underground Electricians for advancement within the
Electric Overhead Line of Progression.
6375 *FOREMAN, MACHINIST, WORKING
----------------------------
An employee engaged in performing all classes of Machinist's work,
having full charge of and directing an entire crew. Must be a Journeyman
Machinist and/or Fabricator/Welder with not less than two (2) years'
experience as such or its equivalent. Is responsible for scheduling of the
shop work, has a working knowledge of the computer controlled work order
and procurement system, inspects completed work to maintain quality and
reviews jobs as they come in to make sure material and/or equipment is
available so the work is performed efficiently.
6061 *FOREMAN, MAINTENANCE, WORKING
------------------------------
An employee who, under general supervision, is engaged in performing
all classes of maintenance work, having full charge of and directing
entire crew. Must be a Plant Mechanic and/or Journeyman
Mechanic/Machinist and/or Mechanic/Welder, with not less than two (2)
years' experience as such or its equivalent.
6071 *FOREMAN, MECHANIC, DIESEL/TURBINE, WORKING
-------------------------------------------
191
An employee who, under general supervision, is engaged in performing
all types of diesel and turbine maintenance having full charge of and
directing entire crew. Must be a Journeyman Diesel Mechanic or
Maintenance Electrician with at least two (2) years' experience as such or
its equivalent.
6285 *FOREMAN, MECHANIC, MAINTENANCE & CONTROL, WP
---------------------------------------------
An employee who has the knowledge and skill through experience and
training to work with and direct the activities of a crew engaged in
construction and maintenance of facilities connected with or related to
the Water Production Department. Must be a Journeyman Mechanic,
Maintenance & Control, WP, to be considered for promotion to this
classification. Must be skilled in the crafts in which he works and have
sufficient knowledge of all tools and equipment used under his direction
and guidance. Must have sufficient knowledge of the function of water
system equipment, how it operates mechanically, hydraulically and
electronically. Must be able to interpret plans, sketches, specifications
and written instructions. Will be required to interpret and work from
various service and repair manuals. Must be thoroughly familiar with work
procedures and methods for the assigned area of responsibility. Will be
required to keep and maintain accurate and legible records of the
operation and maintenance of water system related mechanical equipment.
Shall be thoroughly familiar with Company's dispatching, clearance,
rigging, and hazardous materials handling regulations.
6813 *FOREMAN, METER READER, WORKING-RENO
------------------------------------
An employee who is in charge of and directs the work of meter
reader/collectors in day-to-day operations. Is required to effectively
contribute to positive working relationships and job performance of the
employees under his direction and provide and encourage quality customer
service. Is required to communicate effectively with employees and
customers both orally and in writing. Is responsible for scheduling,
logging attendance, maintaining daily work schedules, monitoring work
quality, evaluating performance, and performing other duties as assigned.
Must be thoroughly familiar with all work procedures, related equipment
operation and is required to assist other department personnel as
required. Will provide training to new employees and be responsible for
temporary employees assigned to gas/water demand studies. Will be
required to make independent decisions as necessary to satisfy customer
needs and ensure employee safety. Is required to perform tasks as
delegated by management.
6290 *FOREMAN, SCRUBBER, SHIFT, WORKING
----------------------------------
An employee who, under general supervision, is in charge of and
operates the scrubber and other related equipment. He shall direct and
train subordinates and may be required to make temporary repairs of
equipment in an emergency. Must be thoroughly familiar with the Company's
plant tagging and safety rules and be qualified to issue clearances and
perform switching within the scrubber. May be required to perform other
related duties as required and be qualified to render first aid.
6297 *FOREMAN, SHIFT, WATER TREATMENT, WORKING
-----------------------------------------
An employee who is in charge of and responsible for the operation and
maintenance of all water treatment plants and related water system
facilities Is required to effectively contribute to positive working
relationships and job performance of the employees under his direction and
to provide and encourage quality customer service. Must possess the
knowledge and skill through experience and training to direct, perform and
assist in the activities and duties of , Water Plant Operators,
apprentices and other classifications as assigned. Must be capable of
analyzing water system problems and be responsible for contracting and
directing other Water Production personnel to resolve these problems in
the most timely and economical fashion. Shall be responsible for
scheduling and directing work and training activities while on shift.
Must be capable of properly coordinating the flow of water through all
treatmentplants, regulators and pumping plants to satisfy pressure and
storage of water. He shall be responsible for recordkeeping such as, but
not limited to timesheets, plant operation, maintenance, tests and unusual
incidents during his shift. Shall be responsible for implementing company
policies, including fitness for duty.
192
In addition to the duties of foreman, is required to relieve in all
subordinate capacities when requires. Must possess sufficient knowledge of
all tools and equipment which may be used. Must be able to interpret
plans, drawings and specifications and comply with all federal, state and
local governmental regulations. He shall be thoroughly familiar with
Company's dispatching and clearance rules, electrical and mechanical
tagging and safety rules. Must possess AWWA (American Water Works
Association) Water Treatment and Distribution Operators certification
Grade III or equivalent. At its discretion, the Company may grant a
reasonable period of time to obtain a Grade III if equivalent experience
and educational background has been established. Must maintain a valid
driver's license.
6091 *FOREMAN, SHIFT, WORKING
------------------------
An employee who, under general supervision, is directly in charge of
and responsible for the operation of the plant during his shift. He shall
direct, perform, or assist in the performance of all duties related to the
light-off and securing of boilers, the start and securing of turbines,
generators, and auxiliaries, perform and direct switching, handle
communications, tend equipment, keep records, make temporary repairs of
equipment in emergency, and other related work as required. He shall
relieve in subordinate capacities when required and direct the work of
others assisting him, including the training of plant personnel. He shall
be thoroughly familiar with Company's dispatching and clearance rules,
electrical and mechanical tagging and safety rules, and be qualified to
render first aid.
6035 *FOREMAN, SHOP OPERATIONS, WORKING
----------------------------------
An employee who, under general supervision, is directly in charge of
and responsible for the operation of the Parts Room and assists in shop
coordination. He/she shall relieve in subordinate capacities when
required and direct the work of others assisting him/her. Must possess
the knowledge and skill, through training and experience obtained by
having spent a minimum of two (2) years as a fleet repair/licensing
coordinator and/or parts clerk, or similar experience, to: operate and
maintain the fleet services computer system (TMIS), handle all aspects of
shop repair orders; invoicing system; and coordination duties as assigned.
Must possess a comprehensive knowledge of overall shop and garage
operations including automotive maintenance terminology, practices and
parts. Must possess good communication skills, both oral and written.
Will be required to train personnel when required and to perform other
duties as assigned.
6082 *FOREMAN, TECHNICIAN, METER, WORKING
------------------------------------
An employee engaged in installing, servicing, testing, repairing
meters, electrical equipment and devices and having charge of crew
assigned to him/her and in general engaged in work associated with
metering. Must be capable of directing the work of others and planning
work. Must have a minimum of two (2) years' experience as Technician,
Meter II or equivalent.
6101 *FOREMAN, TECHNICAL, WORKING
----------------------------
An employee who, under general supervision, is engaged in performing
all types of electrical and instrumentation work, having full charge and
directing an entire crew. Must be an Instrument Technician or a Plant
Electrical Technician with no less than two (2) years' experience in a
power plant as a Journeyman or its equivalent.
6053 *FOREMAN, TRANSMISSION LINE, WORKING (TRAVELING)
------------------------------------------------
An employee engaged in performing all classes of overhead and
underground transmission line work on energized circuits of 110KV or
greater. Also performs construction, erection and maintenance of
transmission lines and associated structures having full charge of and
directing entire crew. Must be qualified to perform switching. Must have
served as a Transmission Lineman for at least two (2) years. Is required
to drive line truck and operate the fixed and attached equipment. Will
keep time cards and material records. May be required to spend a
significant amount of time on out-of-town projects.
6054 *FOREMAN, UNDERGROUND ELECTRIC, WORKING
---------------------------------------
193
An employee engaged in performing all classes of underground
distribution line work, having full charge of and directing entire crew.
Must be a Journeyman Electrician Underground with not less than two (2)
years' experience as such. Is required to drive truck and operate the
fixed and attached equipment. Will keep time cards and material records.
6020 *FOREMAN, UTILITY FLEET, WORKING
--------------------------------
An employee who works with, coordinates and provides general direction
to support the maintenance teams, individual team members, shop processes
and related activities to achieve fleet maintenance goals of optimizing
fleet client satisfaction, financial quality, and employee satisfaction.
Must communicate effectively with team members, all levels of fleet
clients, company personnel, external customers and support personnel.
Must be familiar with, and ensure that utility fleet maintenance practices
and standards, automated work order system operation, all applicable
regulatory requirements (DOT, OSHA, EPA and local), and associated work
rules and regulations are complied within the daily maintenance
activities. Must be a Journeyman Utility Fleet Mechanic with three (3)
years experience as such and must be qualified to perform those duties
expected of a Journeyman. Must possess and maintain a Nevada Emission
Inspector's License and a valid Commercial Driver's License (CDL) and all
applicable endorsements.
6450 *FOREMAN, UTILITY MATERIALS, WORKING
------------------------------------
An employee who is qualified to perform, without direct supervision,
and engaged in performing subordinate to the Supervisor in charge, both
Supervisory and routine duties in the Reno area Stores Department
facilities relating to the ordering, receiving, shipping, handling,
storing, disbursing and salvaging of materials and supplies and the taking
of physical inventories. Must have at least two (2) years' experience as
a Utility Materials Specialist and/or Storekeeper, including a minimum of
two (2) years of Stores Department experience involving such processing of
materials and supplies other than those normally stocked within the
districts. The employee shall be familiar with Company's Stores and
Accounting procedures and other applicable rules. May be required to
perform all related clerical duties.
6280 *FOREMAN, WORKING, HEAVY (ELECTRIC, GAS AND WATER)
--------------------------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to work with and direct the activities of a crew
engaged in heavy construction, maintenance or replacement of facilities.
Must have demonstrated satisfactory performance as a light Foreman for at
least one (1) year or have equivalent experience before consideration will
be given for promotion to this classification. Crew size will not be
limited in number or skilled classifications under direction by this
classification. Must be skilled in the crafts in which he works and
possess sufficient knowledge of all tools and equipment which he may have
occasion to use or to be used under his direction and guidance. He must
be able to interpret plans, sketches, specifications, and written
instructions. Must be thoroughly familiar with the work procedures and
methods for the area of responsibility assigned. Must possess sufficient
familiarity with symbols and dimensions as related to plans. Will be
required to keep time for himself, as well as the crew under his
supervision and prepare proper notes and records, as well as other
clerical work associated with his job and crew. Must be capable of
writing with clarity in a neat and legible fashion.
6284 *FOREMAN, WORKING, HEAVY (BUILDING AND GROUNDS)
-----------------------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to work with and direct the activities of a crew
engaged in heavy construction, maintenance or replacement of facilities.
Must have demonstrated satisfactory performance as a light Foreman for at
least one (1) year or have equivalent experience before consideration will
be given for promotion to this classification. Crew size will not be
limited in number or skilled classifications under direction by this
classification. Must be skilled in the crafts in which he works and
possess sufficient knowledge of all tools and equipment which he may have
occasion to use or to be used under his direction and
194
guidance. He must be able to interpret plans, sketches, specifications,
and written instructions. Must be thoroughly familiar with the work
procedures and methods for the area of responsibility assigned. Must
possess sufficient familiarity with symbols and dimensions as related to
plans. Will be required to keep time for himself, as well as the crew
under his supervision and prepare proper notes and records, as well as
other clerical work associated with his job and crew. Must be capable of
writing with clarity in a neat and legible fashion.
6395 *FOREMAN , WORKING, LIGHT (ELECTRIC, GAS AND WATER)
---------------------------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to work with and direct the activities of semi-
skilled personnel engaged in light construction, maintenance or
replacement of facilities. Must be skilled in the crafts in which he
works and possess sufficient knowledge of all tools and equipment which he
may have occasion to use or to be used under his direction and guidance.
He must be able to interpret plans, sketches, specifications and written
instruction. Must be thoroughly familiar with the work procedures and
methods for the area of responsibility assigned. Must possess sufficient
familiarity with symbols and dimensions as related to plans. Will be
required to keep time for himself, as well as the crew under his
supervision and prepare proper notes and records, as well as other
clerical work associated with his job and crew. Must be capable of
writing with clarity in a neat and legible fashion.
6398 *FOREMAN, WORKING, LIGHT (BUILDINGS AND GROUNDS)
------------------------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to work with and direct the activities of semi-
skilled personnel engaged in light construction, maintenance or
replacement of facilities. Must be skilled in the crafts in which he
works and possess sufficient knowledge of all tools and equipment which he
may have occasion to use or to be used under his direction and guidance.
He must be able to interpret plans, sketches, specifications and written
instruction. Must be thoroughly familiar with the work procedures and
methods for the area of responsibility assigned. Must possess sufficient
familiarity with symbols and dimensions as related to plans. Will be
required to keep time for himself, as well as the crew under his
supervision and prepare proper notes and records, as well as other
clerical work associated with his job and crew. Must be capable of
writing with clarity in a neat and legible fashion.
6397 *FOREMAN, YARD, WORKING
-----------------------
An employee who, under general supervision is directly in charge of
and directs an entire crew in the operation, service, and maintenance of,
but not limited to coal, ash, lime, and other bulk material handling
equipment.
8956 *GARAGEMAN
----------
An employee who acts as a helper for a Mechanic or, under indirect
supervision, does all types of automotive service work relating to a
utility equipment fleet. This includes all phases of preventative
maintenance (PM) work such as visual inspections, operational checks, oil
and filter changes, equipment lubrication, fluid level checking and
filling coolant system checks and servicing, battery servicing, and
related incidental minor maintenance and repairs (such as fan belt
replacements and adjustments, spark plug, shock absorber, and radiator
hose replacements). Additional service work may include dispensing fuel
and oil, tire repairs, cleaning, washing, and other janitorial work. May
pick up and deliver fleet equipment, parts, and accessories as required.
Shall be required to perform minimal clerical tasks such as completing PM
check sheets, repair orders, parts requests and other related documents.
8709 *GROUNDS MAINTENANCEMAN
-----------------------
An employee who is qualified to perform, without direct supervision,
all work associated with grounds and building maintenance, to all Company
property as required, including but not limited to, painting, glazing,
carpentry, fence repair, sprinkler systems, pruning and planting trees and
shrubs, mowing lawns, fertilizing, etc. Must acquire a current
certification as pesticide applicator within six (6) months of the job
award, and will be
195
required to operate equipment and/or Company vehicles. May be required to
provide general direction to any classifications assigned to him in
performing work as defined.
9239 *HELPER
-------
Must have sufficient knowledge and adaptability to understand and
carry on duties as assigned; must be semi-skilled laborer, or equivalent
with past experience as such, capable of handling ordinary tools safely in
accordance with Company safety rules. Assist skilled workman or
apprentice or work under their direction at various classes of work which
may be assigned in any location.
9240 *HELPER (BUILDING & GROUNDS)
----------------------------
Must have sufficient knowledge and adaptability to understand and
carry on duties as assigned; must be semi-skilled laborer, or equivalent
with past experience as such, capable of handling ordinary tools safely in
accordance with Company safety rules. Assist skilled workman or
apprentice or work under their direction at various classes of work which
may be assigned in any location.
7405 *INSPECTOR
----------
An employee who possesses knowledge and skill as obtained by
experience and training to direct the efforts of contractors doing work
for the Company in the installation of Gas and Water facilities. Must
possess in-depth knowledge of material and construction standards,
procedures and specifications and have the capability of interpreting
plans and sketches depicting the required work associated with gas and
water installations. Will be required to keep records as necessary to
complete as-built drawings, including materials installed, as well as the
dimensions of the installation. Will be required to complete main and
service cards in a neat and legible fashion as related to the facilities
he inspects. Must be able to use pipe locator, Holiday detector, Gas
Explosive Meter, pressure recorders and other instruments and equipment
common to gas and water installations.
7410 *INSPECTOR, CONSTRUCTION
------------------------
An employee who has sufficient knowledge of Construction to inspect
contractors' and/or Company work. Will be required to perform such duties
as coordinating work between contractors and Company crews, scheduling and
coordinating delivery of materials, preparing and maintaining construction
records and verifying that work is done in accordance with plans and
specifications. Must be familiar with all phases of substation
construction including site work, excavation, carpentry, concrete work,
steel work, fencing, buildings, grounding, installation of both metallic
and non-metallic conduit, and their underground facilities. Must be able
to read and understand drawings and specifications, have knowledge of
surveying, and be able to work with all other departments. May be
assigned to work as a member of a construction crew. Requires two (2)
years' experience as a Repairman or equivalent.
7210 *INSPECTOR, ELECTRIC
--------------------
An employee who has sufficient knowledge of the specifications and
installation of electric overhead and underground lines to check
contractors and/or Company work. Will be required to perform such duties
as scheduling and coordinating work between subdividers and Company crews,
providing information on locations of underground facilities, conducting
periodic checks of underground and overhead installations and doing
necessary work to maintain such installations. Must be qualified to
perform switching. Will be required to perform other related duties as
required including the maintenance of records pertaining to plant
construction and operations. Must be qualified to work with the public.
May be assigned to work as a member of a line crew or an underground crew.
Requires a minimum of one (1) year of experience as a Lineman and/or
Underground Electrician.
7130 *INSPECTOR, SUBSTATION, ELECTRIC
--------------------------------
An employee who has sufficient knowledge of the specifications,
installation and operation of electric substations to check contractors
and/or Company work. Will be
196
required to perform various duties necessary to properly coordinate and
inspect substation electric equipment installations. Must be qualified to
perform switching. Will be required to perform other related duties
including the preparation and maintenance of records pertaining to
substation operation and maintenance. May be assigned work as a member of
a substation construction or maintenance crew. Requires a minimum of two
(2) years' of experience as an Electrician (control).
8395 *INSTRUMENTMAN
--------------
An employee engaged in survey work, in the field or office as
required, such as operating with skill and efficiency, all survey
instruments normally utilized by the Company, preparing survey
calculations, assisting Engineers and Estimators in preparing estimates,
making job layouts and surveying. Training and/or experience in mapping,
drafting and mathematics will be required. Must have worked as a Rod &
Chainman or its equivalent. May be required to pass an oral or written
examination or performance test covering these qualifications.
9378 *LABORER
--------
An employee who performs manual work such as digging ditches, digging
holes and clearing rights-of-way and other repetitive unskilled work as
required.
9379 *LABORER (Clerical/Building & Grounds)
--------------------------------------
An employee who performs manual work such as digging ditches, digging
holes and clearing rights-of-way and other repetitive unskilled work as
required.
9450 *LABORER, TEMPORARY
-------------------
(Note: A "Laborer, Temporary" is a student hired during vacations and
others hired for a limited period of time for seasonal or emergency work.
Employees under this classification shall only be hired as needed to
supplement the regular work force and shall normally be assigned only such
work as falls within the Laborer definition.)
7330 *LINEMAN, ELECTRIC
------------------
An employee who is a Journeyman and who performs all classes of
overhead and underground transmission and distribution line work and the
construction, erection and maintenance of substations** when assigned to a
crew under the direction of a Working Foreman or Supervisor of higher
grade, and who is qualified by training and knowledge of underground
circuits, substations, and apparatus to test, maintain, and install duct
line, cable, conduits, risers, Company-owned customer outdoor lighting
equipment, circuit breakers, transformers, and associated equipment,
substation equipment and circuits.** Must be qualified to perform
switching.
Will make connections to underground circuits and substation feeder
installations as well as making underground connections on customer
services.
His background of apprenticeship training and experience must be such
as to qualify him to perform these duties with skill and efficiency. He
may be assigned to work with and under general direction of a Troubleman
and when so assigned, the type of work he performs and the method of
supervision shall be governed by the rules with respect to the Troubleman
classification. A Lineman may be assigned temporarily to work apart from
a crew either alone or as a member of a two-man unit without supervision,
doing work which shall include:
1. Framing poles.
2. Preassembling material.
3. Patrolling and inspecting pole and tower lines.
4. Testing and inspecting poles.
5. Repairing risers and ground mouldings.
6. Pulling slack in anchor guys.
7. Replacing guy guards.
197
8. Splicing and terminating non-leaded and leaded underground
cables.
A Lineman may be assigned temporarily to work apart from a crew as a
member of a two-man unit, without supervision, when the second man in such
unit is a one-year Apprentice Lineman or higher, doing work which shall
include:
** See Letter of Understanding dated July 13, 1967, as amended by
Supplementary Agreement dated May 10, 1973.
1. Taking primary distribution voltage readings.
2. Installing Company-owned customer outdoor lighting service
equipment and street fixtures, including making connections on
circuits with voltage below 750 volts.
3. Installing all types of customer's services, complete with
setting self-contained meters.
Using special design lift equipment, or an aerial bucket, a Lineman
may work apart from a crew as a two-man unit, without supervision, when
the second man in such unit is a one-year Apprentice Lineman or higher,
doing work which shall include:
1. Setting and replacing service poles.
2. Setting street light poles and outdoor lighting service poles not
to exceed 40 feet in length.
3. Washing insulators on lines energized up to 60 KV.
When it is necessary to climb through live circuits of 750 volts or
more, the other employee in the two-man unit shall be a Journeyman
Lineman. Is required to drive the line truck and operate the fixed and
attached equipment. May be required to keep time cards and materials
records.
7332 *LINEMAN, TRANSMISSION (TRAVELING)
----------------------------------
An employee with at least two (2) years' experience as a Lineman who
is qualified by training and on-the-job experience to perform work on
energized circuits of 110KV or greater. Must be qualified to perform
switching. His background and training must qualify him to perform all
duties associated with Lineman work at normal distribution voltages as
well as work on 110KV, 230KV, 345KV, or higher transmission line voltages.
May be required to spend a significant amount of time on out-of-town
projects.
7580 *MACHINIST/TOOL REPAIR
----------------------
An employee who is qualified to perform precision work with a lathe
and milling machine, who is capable of skillfully and efficiently
installing, repairing and maintaining all types of mechanical equipment
and tools. The machinist performs the machining, gauging and production
of parts; also repairs tools, valves, pumps and compressors; and also does
the major maintenance and overhaul of the CNG facility. Must have a
working knowledge of hydraulics. Must be capable of reading and
interpreting sketches and drawings, making setups, and have a good working
knowledge of shop math and properties of materials. Must be qualified to
do all types of welding and brazing using the forge, acetylene and
electric methods.
8690 *MAINTENANCEMAN, STREET LIGHT
-----------------------------
An employee whose main duties will be, but not limited to, maintaining
street lights and luminaries, installation and removal of company outdoor
lighting equipment and other miscellaneous work on street lights and street
light circuits. Other duties may require the employee to assist a
Troubleman in the performance of their duties, as long as he has been
certified through training and experience. This employee can be utilized
as a qualified observer while hot primary work is in progress and may be
requested to relay
198
switching information as per the qualified person directing the work.
These employees must have completed an I.B.E.W. Apprentice Lineman program
at or above the 24-month level.
7350 *MECHANIC, DIESEL/TURBINE
-------------------------
An employee who is qualified and regularly engaged in performing all
types of diesel and turbine maintenance, including maintenance of engines,
turbo chargers, oil systems, cooling systems, etc. He shall do mechanical
and electrical repairs, tune-ups and adjustments and incidental welding or
brazing in connection with the above.
7360 *MECHANIC, MACHINIST
--------------------
An employee who has completed a minimum of two (2) years as a
Maintenance Mechanic and is qualified to perform precision work with all
machine shop equipment, read and work from drawings and sketches, read
precision instruments and gauges, make own set-ups and has knowledge of
shop math, properties of materials, and Company's electrical and mechanic
tagging and safety rules.
Job duties include all types of precision work on machine shop
equipment, mechanical repairs to boilers, turbines, auxiliaries and other
rotating equipment aligning motors and mechanical equipment, truing and
balancing, rotating equipment, incidental welding, brazing and soldering,
rigging, operation of the station crane and work of lower classifications
as required.
7585 *MECHANIC, MAINTENANCE & CONTROL, CERTIFIED, WP
----------------------------------------------
An employee who has completed a Maintenance and Control Mechanic
apprenticeship or equivalent and is qualified to install, maintain, test
and repair various types of mechanical equipment within the Water
Production Department, including, but not limited to, production wells,
booster pump stations, pressure regulator stations as well as the water
treatment facilities. Must have an understanding of the electrical
systems related to the mechanical equipment. Must have a thorough
understanding of hydraulic controls, and their principles, and will be
required to install, test, and service these controls in order to obtain
an efficient operation. Must have a working knowledge of the SCADA system
and will be required to access data relative to the operation of the
various pumping systems and pressure zones. Will also input setpoints
related to the hydraulic controls and their automatic functions and my at
times be asked to aid the plant operators in the operation of these
systems/zones. Must be able to work from various service and repair
manuals and be capable of solving technical problems where resources may
be limited. Will be required to perform other related task such as
incidental welding and rigging and will keep accurate and legible records
of the operation and maintenance of the equipment for which the employee
is responsible. Must be thoroughly familiar with the company tagging
procedure and safety rules. Must have and maintain a current AWWA Grade 2
distribution certificate.
7590 *MECHANIC MAINTENANCE & CONTROL, WP
-----------------------------------
An employee who has completed a Maintenance and Control Mechanic
apprenticeship or equivalent and is qualified to install, maintain, test
and repair various types of mechanical equipment within the Water
Production Department, including, but not limited to, production wells,
booster pump stations, pressure regulator stations as well as the water
treatment facilities. Must have an understanding of the electrical
systems related to the mechanical equipment. Must have a thorough
understanding of hydraulic controls, and their principles, and will be
required to install, test, and service these controls in order to obtain
an efficient operation. Must have a working knowledge of the SCADA system
and will be required to access data relative to the operation of the
various pumping systems and pressure zones. Will also input setpoints
related to the hydraulic controls and their
199
automatic functions and my at times be asked to aid the plant operator sin
the operations of these systems/zones. Must be able to working from
various service and repair manuals and be capable of solving technical
problems where resources may be limited. Will be required to perform other
related tasks such as incidental welding and rigging and will keep
accurate and legible records of the operation and maintenance of the
equipment for which the employee is responsible. Must be thoroughly
familiar with the company tagging procedure and safety rules.
7496 *MECHANIC, PLANT
----------------
An employee who has completed his apprenticeship, or equivalent, and
is in the process of acquiring the experience and skills required for
advancement to Mechanic/Machinist or Mechanic Welder. Job duties include
the performance of general machine shop practices such as making parts for
mechanical equipment, turning shafts, turning down commutators,
rebabbitting bearings, fitting gears, etc., truing, aligning and balancing
rotating equipment, incidental welding and brazing, soldering and
metalizing, making mechanical repairs to boilers, turbines, generators,
and all related auxiliaries. As a part of his training to qualify for
advancement, may work as an assistant to and under the supervision of a
Mechanic/Machinist and/or Mechanic Welder and/or Maintenance Working
Foreman. The Plant Mechanic will be reclassified to Mechanic Welder when
the following three (3) conditions are satisfied:
1. Has completed the SPPCO 30-month Apprentice Plant Mechanic program
or has worked as a Plant Mechanic at SPPCO for one (1) year. NOTE:
The one (1) year Plant Mechanic requirement may be waived by the
Plant Manager.
2. Has passed the certified Welders test as outlined in Plant
Mechanic/Welder classification.
3, The employee has passed the ICS portion of the Apprentice Plant
Mechanic training program.
7385 *MECHANIC, SPECIALIST, MAINTENANCE & CONTROL, WP
------------------------------------------------
An employee who has completed a Mechanic, Maintenance & Control
apprenticeship or equivalent, has received hazardous materials handling
training or equivalent and is qualified to install, maintain, test and
repair various types of mechanical equipment, chemical handling equipment,
and piping systems used in water production, treatment, and distribution
facilities, including, but not limited to, production wells, booster pump
stations, pressure regulator stations, water treatment plants, and
associated facilities. Must have an understanding of the electrical
systems related to the mechanical systems controlling and driving
mechanical equipment. Must have a thorough understanding of hydraulic
controls and will be required to install, test and service these controls
in order to obtain an efficient operation. Must have a working knowledge
of the SCADA system and will be required to access data relative to the
operation of the various pumping systems and pressure zones. Will also
enter data relative to hydraulic setpoints and controls. May be asked to
aid the plant operators in operations of pumping and/or regulator station
operation. Will be called on to assist customers in resolving pressure or
flow problems. Will be required to inspect contractor installed work in
any water production facility. Must be able to work from various service
and repair manuals and be capable of solving technical problems where
resources may be limited. Will be required to perform other related tasks
such as welding and rigging and will keep accurate and legible records of
operation and maintenance of the equipment for which the employee is
responsible. Must be certified to perform maintenance welding on water
production related facilities. Must be thoroughly familiar with company
lock-out/tag-out procedures, safety rules, hazardous materials handling
procedures. Must maintain current AWWA Grade II water distribution
certificate.
7600 *MECHANIC, UTILITY FLEET
------------------------
An employee who has completed an accredited Apprentice Mechanic
program, or who has worked for two (2) or more consecutive years as an
automotive/heavy equipment Journeyman Mechanic, and is capable of
performing all maintenance, service, and directly
200
related functions involved with the hands-on maintenance of a large modern
utility-type fleet of vehicles and equipment. The person shall possess and
maintain a Commercial Drivers License (CDL) with air brake and combination
vehicle endorsements and a DOT physical card. At one (1) year, the
employee shall possess and maintain all CDL endorsements and Nevada
Emissions Inspector Certificate(s) as applicable in the employee's
responsibility area. The employee shall, during the first year, become
familiar with and following, under indirect supervision, department,
Company, automotive and utility industry job standards and practices as
directed. May be required to assist in related safety and training
functions.
9889 *MESSENGER, OUTSIDE
-------------------
An employee who performs various errands between different divisions
of the Company in the Reno-Sparks area, such as delivering messages,
written material, supplies and equipment. Shall also be required to pick
up and deliver mail to the Post Office. Will be required to do heavy
lifting.
7370 *METERMAN
---------
An employee who has served successfully his apprenticeship or
equivalent for a Meterman. Must have the necessary knowledge to install,
test, and repair all electrical instruments, meters and metering equipment
and sufficient working knowledge of electricity to be able by the use of
instruments, to determine power, volt amperes, power factor and reactive
component in an electric circuit.
7605 *METERMAN, GAS AND WATER
------------------------
An employee who performs all classes of shop work on gas and water
meters and regulators, including testing, repairing and adjusting. Must
be familiar with gas and water fittings and system pressures.
9165 *METER READER-COLLECTOR, TRAINEE
--------------------------------
An employee not required to have prior Meter Reader/Collector
experience and who, after passing a meter reading aptitude test and
physical ability test, will receive formal training in order to perform
the duties of Meter Reader/Collector. The meter reading physical ability
test shall consist of an eleven (11) mile walk over level ground within a
four (4) hour time limit. Upon satisfactory completion of formal Meter
Reader/Collector training, and while receiving on-the-job training, may be
assigned to any of the duties performed by the Meter Reader/Collector.
May be required to work alone in such duties as obtaining actual meter
readings for any meter as assigned, verifying accuracy of meter numbers,
meter locations, meter instructions, and any other duty associated with
the Meter Reader/Collector. Those employees required to read gas meters,
must, on a regular basis do visual checks of the meters and report to
supervision any conditions for which they are trained. Must be qualified
to meet and talk to customers and be able to provide customers with
quality customer service and be courteous and effective when responding to
customer requests and inquiries as well as have other qualifications
generally accepted as being desirable to work with the public. Will
automatically be reclassified to the title and beginning rate of Meter
Reader/Collector after six (6) months of satisfactory job performance in
the trainee classification.
9162 *METER READER-COLLECTOR
-----------------------
An employee who has satisfactorily progressed through the Meter
Reader-Collector Trainee classification and is required to obtain actual
meter readings for any meter as assigned, including exchanging tapes on
magnetic recorders. This employee must verify the accuracy of meter
numbers, meter locations, meter reading instruction codes, sequence
numbers, and must record meter readings on forms/devices as required.
This employee must report damaged or missing meters, metering equipment,
and unusual or abnormal meter and metering equipment conditions, to
supervision. Those employees required to read gas meters, must, on a
regular basis do visual checks of the meters and report to supervision any
conditions, such as atmospheric corrosion, environmentally caused
movement, encroachments, or any other conditions for which they are
trained. Must
201
accurately and legibly complete all Company and departmental documents and
forms related to meter reading. In addition to the performance of routine
office duties and collection of bills, may be required to connect,
disconnect, seal and insulate (OBM) meters. Must maintain a neat and clean
appearance. Must be qualified to meet and talk to customers and provide
customers with quality customer service and be courteous and effective
when responding to customer requests and inquiries as well as have other
qualifications generally accepted as being desirable to work with the
public.
7525 *OPERATOR, ASSISTANT, CONTROL ROOM
----------------------------------
An employee who, under direct supervision, will assist the Control
Room Operator in the operation of the Plant during his shift including all
duties related to the light-off and securing of boilers, starting,
operating and securing turbines, generators, and auxiliaries, and make
temporary emergency repairs, keep records, keep his station clean, perform
other related work as required. When not assigned to operations duties,
he may be assigned work in accordance with Section 6.13(b). He shall
relieve the Utility Operator, and when qualified, shall relieve the
Control Room Operator. He shall be thoroughly familiar with the Company's
mechanical and electrical tagging and safety rules, and be qualified to
render first aid. He may be required to assist in the training of plant
personnel.
8740 *OPERATOR, CLARIFIER
--------------------
An employee who has completed U.O. II training and under general
supervision, operates the station sidestream softening clarifiers. The
employee secures and analyzes clarifier, clarifier filter and circulating
water samples. Makes the necessary chemical calculations to adjust the
chemical feed rates, flows or mechanical equipment to assure efficient,
economical clarifier operation and maintenance of circulating water
chemistry operating parameters. Must be familiar with standard lab safety
procedures and the Company's safety rules, and must be able to render
first aid. The employee, during his shift, assists with the operations
and service of the cooling tower de-icing when necessary. Performs
tagging of equipment as required.
Monitors and maintains log of all pertinent operating data. Assists
in the unloading and storage of all chemicals used in the clarifier or
cooling towers and maintains the chemical burn station in the clarifier
building. Is responsible for the cleanliness of the clarifier area. Will
be required to successfully complete the Center for Occupational Research
and Development Fossil-Fuel Power Plant Technology series chemistry
technician course. Will be required to maintain an OJT card for
documentation by the JATC. When not assigned to operations duties, he/she
may be assigned to work in accordance with Section 6.13(b) and may be
required to assist with training of plant personnel.
If the employee has completed twenty-four (24) months as a Clarifier
Operator and is a successful bidder to an Apprentice Lab Technician
position, the JATC may place that employee at an appropriate step level
(up to one (1) year) based on the documented formal and OJT training with
the approval of the plant manager with no wage reduction. See Bidding
Note #26.
7090 *OPERATOR, CONTROL ROOM
-----------------------
An employee, under the supervision of the Shift Supervisor or Shift
Foreman, Working, whose duties include the operation of equipment in the
plant, together with their related controls, particularly the equipment
and switch gear which have their controls in the control room. Is in
charge of the control room and generally assists the Shift Supervisor or
Shift Foreman, Working, in the operation of the plant. Must keep his
station clean. Must be familiar with system operating orders, clearance
procedures, and other necessary transactions with the System Operator.
When required, he shall relieve the Shift Foreman, Working, or
subordinates. When not assigned to operations duties, he may be assigned
work in accordance with Section 6.13(b). He shall be qualified to render
first aid, and be thoroughly familiar with the Company's electrical and
mechanical tagging and safety rules. He may be required to assist in the
training of plant personnel.
202
9785 OPERATOR, DATA ENTRY
--------------------
An employee who is a proficient data entry operator. This employee
will be required to pass a data entry operator test to determine his/ her
data entry ability before being considered qualified to be awarded a data
entry operator job, and must have completed eighteen (18) months as a data
entry operator trainee, or the equivalent in data entry experience. Will
be required to data entry punch and type information from source documents
into tabulating cards or other input formats. Information recorded from
these source documents may be interpreted as required. Will be required
to operate, but will not be limited to key-to-disk/tape machines, key
punch machines, verifiers, 1050 teleprocessing units, or other data
processing source input equipment that may become available, or perform
duties of a comparable nature as assigned by the data entry department
Supervisor.
9535 OPERATOR, DATA ENTRY, SENIOR
----------------------------
An employee who has progressed through the Operator, Data Entry
Trainee and Operator, Data Entry classification or who has completed equal
training in a data entry shop of comparable size and complexity.
An employee under the supervision of the Data Entry Supervisor, who
performs such duties as receiving, reviewing and logging all incoming work
to insure completeness and clarity of input documents, resolve any
potential problems with the user, prepare batch tags for work and assign
work to the Data Entry Operators. Perform transfer functions of data from
disk to tape for submission to computer operations, perform cold starts,
disk saves and prepare operator statistic tapes as required, assist
Supervisor in preparing new application formats. Keys information from
various source documents. Assist in training Data Entry Operators.
Performs other related clerical duties as required.
9910 OPERATOR, DATA ENTRY, TRAINEE
-----------------------------
An employee not required to have prior experience as a data entry
operator. This employee must have average typing ability (50-60 words per
minute) and will be required to pass a data entry operator aptitude test
before being considered qualified to be awarded a data entry operator
trainee job. In the course of training may be assigned to any of the
duties performed by a data entry operator. Six (6) months after
progressing to the top of the trainee classification, will automatically
be reclassified to the classification of, and beginning wage rate of data
entry operator.
7575 *OPERATOR, DIESEL/TURBINE
-------------------------
An employee who, under general supervision, operates and performs
routine operational maintenance of diesel and turbine driven generating
equipment and auxiliaries, during his shift. Routine operational
maintenance includes such functions as replacement of lubricating and fuel
oil filters, addition of lubricating oil and anti-freeze and other minor
repairs not requiring the services of a qualified Journeyman Mechanic.
When not on shift, he may assist Journeyman maintenance personnel. He
will keep records, and maintain the plants where he is assigned to work in
a neat and clean manner.
He shall be thoroughly familiar with the Company's dispatching and
clearance rules and shall be qualified to perform switching in conjunction
with the operation of diesel and turbine generating facilities. He shall
be familiar with the Company's mechanical and electrical tagging rules and
shall be able to render first aid.
7213 *OPERATOR, EMERGENCY RELIEF (SCRUBBER)
--------------------------------------
An employee qualified to relieve in any operating capacity at the
Scrubber, including Shift Foreman, Scrubber, whose primary duties are to
stand shift as assigned, and to relieve Scrubber Operators as required.
When not assigned to relief duties, he may be required to perform other
related duties. In addition, when not assigned to a watch or when not
assigned to operations duties, he may be assigned work in accordance with
Section 6.13(b). He must be qualified to render first aid. He must be
thoroughly familiar with the Company's plant tagging and safety rules and
be qualified to issue clearances and perform
203
switching for and within the Scrubber. He shall assist in the training of
Scrubber personnel. Scrubber Foreman bidding to ERO (Scrubber) will
maintain foreman wage rate.
7260 *OPERATOR, EMERGENCY RELIEF (STEAM)
-----------------------------------
An employee qualified to relieve in any operating capacity, including
Shift Foreman, Working, whose primary duties are to stand shift as
assigned, and to relieve Plant Operators as required. When not assigned
to relief duties, he may be required to perform other related duties. In
addition, when not assigned to a watch or when not assigned to operations
duties, he may be assigned work in accordance with Section 6.13(b). Must
be qualified to perform switching. He shall assist in the training of
plant personnel.
8776 *OPERATOR, EQUIPMENT I
----------------------
An employee who is under direct supervision and assists an experienced
Operator, or equivalent, and is in the process of acquiring the
experience and skills required to advance to Equipment Operator II. Will
be required to operate pavement breakers, rubber-tired excavation
equipment such as loaders, and combination back-hoe/loaders with rated
capacities not exceeding one and one-half (1 1/2) cubic yards for loader
buckets and one half (1/2) cubic yard for back-hoe buckets.
After one (1) year, automatic progression to Equipment Operator II
classification will occur upon successful completion of the Equipment
Operator I Performance Test. Refer to Equipment Operator Progression
Guidelines.
8774 *OPERATOR, EQUIPMENT II
-----------------------
An employee who has progressed through the Equipment Operator I
classification, or has equivalent experience and is qualified by training
and experience to perform special construction work using rubber-tired
excavation equipment such as loaders, and combination back-hoe/loaders
with rated capacities exceeding one and one-half (1 1/2) cubic yards for
loader buckets and one half (1/2) cubic yard for back-hoe buckets boom
trucks, forklifts, etc. (type of equipment may vary by department). May
be required to complete job-related clerical work and assist in training.
After two (2) years of Equipment Operator II, progression to Equipment
III classification will occur upon successful demonstration of Equipment
Operator II skills and department specific Journeyman skills during two
years of Operator II classification. Refer to Equipment Operator
Progression Guidelines.
8773 *OPERATOR, EQUIPMENT III
------------------------
An employee who has progressed through the Equipment Operator II
classification, or has equivalent experience and is qualified by training
and operating experience to perform special construction work using rubber
tired equipment such as loaders, and combination backhoe-loaders with
rated capacities exceeding 1 1/2 cubic year for loader buckets and 1/2
cubic yard for backhoe buckets, boom trucks, forklifts, etc. (type of
equipment may vary by department). May be required to complete job
related clerical work and assist in training. Is additionally qualified
by training and experience to perform a variety of department specific
Journeyman level tasks. Refer to the Equipment Operator Progression
Guidelines.
8772 *OPERATOR, EQUIPMENT, HEAVY
---------------------------
An employee who has completed a minimum of three (3) years as an
Equipment Operator II and/or a combination of two (2) years as an
Equipment Operator II and one (1) year as an Equipment Operator III, or
has equivalent experience and is qualified by training and operating
experience to perform special construction work using various rubber-tire
and track- mounted or heavy equipment (type of equipment may vary by
department) such as bulldozers, cranes, road graders and excavators or
other similar equipment.
May be required to complete job-related clerical work and assist in
training.
204
8466 *OPERATOR, EQUIPMENT, HEAVY (TRAVELING)
---------------------------------------
An employee who is a qualified equipment and vehicle Mechanic and also
qualified as a heavy equipment operator. Must be familiar with
transmission crew operations. Employee must have a good working knowledge
of the operation of the transmission crew. May be assigned other
miscellaneous duties such as ground work, etc. May be required to spend a
significant amount of time on out-of-town projects.
8115 *OPERATOR, GAS PRESSURE
-----------------------
An employee with knowledge and experience of the operation and
maintenance of gas distribution systems whose responsibilities and duties
include the control of pressure and maintenance of the gas flow in the
distribution lines within the scope of the district operations. Shall
include the operation and maintenance of gas regulator stations, changing
various pressure and/or flow meters or volume charts and reading or
computing gas usage. Shall be required to test, calibrate and maintain
maintenance schedules on various equipment, instruments and devices as
used in the industry. Must be capable of operating various instruments,
such as square root planimeter for computing gas usage and complete
operation and maintenance schedules of gas calorimeter for determining and
logging in a legible manner the heating value of system gas. Shall be
responsible for all odorant injections and odorant testing of the system
gas. Responsible for the regulation of all gas received from our supplier
at the City Gate Stations and must be capable of forecasting daily gas
requirements. Will be required to assist in training personnel in all
phases of operation and regulation of system gas. May be assigned to
other duties as required to assure delivery of safe and reliable gas
supply throughout the system. Shall be responsible for recording all
maintenance and inspection records as required by Department of
Transportation regulations.
8325 *OPERATOR, HYDRO/PEAKING
------------------------
A shift employee with at least one (1) year's experience as an
Assistant Hydro/Peaking Operator who, during his shift, is in direct
charge of and is responsible for the operation of one (1) or more hydro
combustion turbine, and diesel plants and their related facilities;
performs and directs switching in accordance with established Company
procedure; makes routine operational maintenance such as replacement of
lubricants, antifreeze, and filters; keeps records; cares for buildings
and grounds. He shall direct and train other operating employees, prepare
code switching orders and maintain operating diagrams. He shall be
thoroughly familiar with Company dispatching and clearance rules,
electrical and mechanical tagging and safety rules, and be qualified to
render first aid. During extended periods of shutdown may be assigned to
work in other Power Production Departments in jobs for which he is
qualified, subject to the provisions of Section 4.3 of the Agreement. In
such case he shall work the hours of day employees and such hours shall
become his regular working hours in applying the provisions of Title 6 and
Title 10 of the Agreement. He may also be required in such case to report
to the appropriate Company Operations Center for work on regular working
days.
8850 *OPERATOR, HYDRO/PEAKING, ASSISTANT
-----------------------------------
An employee who is engaged in performing work as an assistant to or
under the general direction of a Hydro/Peaking Operator. He may be
required to relieve the Hydro/Peaking Operator when qualified. The
employee's educational and general qualifications must be such that he is
considered capable of attaining Operator status. During extended periods
of shutdown may be assigned to work in the Power Production Departments in
jobs for which he is qualified, subject to the provisions of Section 4.3
of the Agreement. In such case he shall work the hours of day employees
and such hours shall become his regular working hours in applying the
provisions of Title 6 and 10 of the Agreement. He may also be required in
such cases to report to the appropriate Company Operations Center for work
on regular working days.
9840 OPERATOR, MAIL INSERTER
-----------------------
An employee, who, under direct supervision, operates and maintains
according to manufacturer's specification, the mail inserter and various
mail room equipment. Must be
205
able to understand written and oral instructions to ensure proper
postaging and handling of customer billing and shareholder mailings in a
timely manner. Must be physically capable of heavy lifting.
9818 OPERATOR, PBX
-------------
An employee who operates a manual or automatic switchboard to handle
incoming, outgoing and intra-office calls. In addition, while at
switchboard acts as receptionist. Must have pleasing personality and
pleasing telephone voice. Also performs routine clerical work as part of
regular duties.
8900 *OPERATOR, PHOTO-TYPESET
------------------------
An employee, who under general supervision and who has completed
training, operates a photo-typesetter machine, and is proficient in
producing a proof-ready copy for printing or reproduction. Must be
experienced in photo-typesetting techniques, type size, styles and
formats. Must be knowledgeable of printing terminology and requirements,
read job design specifications, and produce camera-ready, accurate proofs
of charts, forms, tables, graphs and test, from drafts and paste-ups.
Must be able to use tools of the trade in producing copy. Must be able to
maintain detailed job costs data and perform daily recordkeeping duties.
8743 *OPERATOR, SCRUBBER, UTILITY
----------------------------
An employee who, under direct supervision, shall assist in the
operation and service of the scrubber and related equipment. The employee
will perform routine tests on water and slurries and shall keep his
station clean. The employee will be qualified to change atomizer wheels
on spray machines and make temporary repairs of scrubber equipment in an
emergency. When qualified, he shall relieve the Scrubber Working Foreman
and assist in the training of scrubber personnel. He shall be thoroughly
familiar with Company safety rules and be qualified to render first aid.
May be required to perform other related duties as required.
8750 *OPERATOR, SERVICE UTILITY
-------------------------
An employee who, under direct supervision, shall during shift, assist
in the operation of generating equipment, and operate auxiliary equipment
including pumps, fans, air compressors, and demineralizers, water treating
and chemical feed equipment, fuel metering and transfer equipment, screen
wells, cooling towers and chemical disposal system. Shall have a good
working knowledge of plant equipment and its lubrication needs. Will
service plant auxiliary equipment, change filters, maintain records,
adjust packings, tighten safety guards, remove pipe couplings, lubricate
plant equipment and maintain lubrication equipment and inventory. When
the lab technician is not on duty, the Service Utility Operator may be
required to perform simple routine tests on water, such as silica, pH and
conductivity. When qualified, he shall be required to relieve the
Assistant Control Room Operator. When not assigned to operations duties,
may be assigned work in accordance with Section 6.13(b). Must keep any
assigned work area clean and be thoroughly familiar with Company safety
rules and be able to render first aid. May be required to assist in the
training of plant personnel. (Service Utility Operators who are
upgradeable to Assistant Control Room Operator shall be placed at the 30-
month step after completing 24-months as a Service Utility Operator.)
8470 *OPERATOR, WATER PLANT
----------------------
An employee who has completed an apprenticeship and/or equivalent
level of training or appropriate certification and is responsible for the
flow of water in the canals and reservoirs and operates pumps and valves
to regulate the flow of water through a treatment plant or pumping plant,
coordinating the rate of flow with demand, storage and other operating
plants; reads and interprets meters, charts, and gauges, changing
recording charts and inking pens as necessary; performs such recordkeeping
functions as log of plant operations, test results, maintenance work
performed, unusual operating conditions and special reports as required;
takes samples of water at established times and makes such standardized
control tests as chlorine residual, coagulation tests, pH, etc., as may be
206
required; adjusts rate-of-feed of chemical dispensers accordingly, will
conduct daily radiological monitoring tests; maintain plants and operating
equipment in a clean and orderly condition, may perform maintenance
cleaning of plant machinery, equipment, piping and structures; lubricates
and makes limited repairs and adjustments to equipment commonly found in a
water pumping or treatment plant, shuts down areas of the plant system for
repairs; observes and reports unusual operating conditions or the need for
maintenance of equipment, building and grounds; makes prescribed and
special reports, receives supplies delivered during his shift and insures
that they are properly stored. Must possess a Grade II Water Treatment
Operator's Certification as prescribed by the AWWA (American Water Works
Association) or equivalent.
8870 *OPERATOR, YARD
---------------
An employee who, under general supervision, operates and maintains
coal and ash handling equipment. Will be required to operate any
equipment in the handling of coal, ash dewatering systems, fly ash
conditioning, and unloading systems in the handling of ash. Shall be
required to perform mechanical maintenance duties on coal handling
systems. Will assist the mechanical maintenance department in the
maintenance of all plant equipment when required. Performs preventative
maintenance duties such as lubricating, oil and filter changing, etc., on
all equipment used for coal and ash handling. Must keep his assigned area
clean. Must be familiar with plant equipment tagging rules. Shall
perform other related duties as assigned by Supervisor or Foreman. Shall
be qualified to render first aid. When not assigned to coal handling
duties, may be assigned to work in accordance with Section 6.13(b).
Processes and delivers coal samples to coal lab as required.
8511 *OPERATOR, YARD, SENIOR
-----------------------
An employee who, under general supervision, will operate and maintain
coal and ash handling equipment. Will be required to operate a rubber-
tired dozer and any other equipment used in the handling of coal, ash
dewatering systems, fly ash systems, and unloading systems used in the
handling of ash. Will be required to perform routine maintenance duties
on coal handling systems and coal handling equipment, such as lubricating,
oil and filter changing, etc. Will be required to keep maintenance logs
on equipment and schedule the necessary maintenance. Will be required to
train Yard Operators in the performance of their duties. Shall be
responsible for the cleanliness of the equipment involved in the coal
handling process, coal storage area, and the plant outside area in
general. Must be thoroughly familiar with the work procedures in the area
of responsibility assigned. Must be thoroughly familiar with plant
equipment tagging procedures. During outages or emergency situations, may
be assigned to work in accordance with Section 6.13(b). Communications as
necessary with railroad and mine.
8885 *PATROLMAN, LINE
----------------
An employee who is qualified by training, experience and knowledge to
perform on temporary assignment without direct supervision the
responsibility of patrolling overhead electric transmission lines,
overhead electric distribution lines and other electric system plant
facilities.
The primary duties of this position are to patrol, observe and
recognize any damaged structures or equipment or physical irregularities
in the aforesaid facilities. Will not be required to climb, perform
switching, or repair electrical equipment, perform work from an aerial
lift or elevated platform. A record must be made of all irregularities or
damages and appropriate reports completed for follow-up repairs by others.
Must have one (1) year of experience in the Electric Department and have
worked with a line crew a minimum two (2) months on overhead line
construction and have received a minimum of 80 hours pertinent training
under a qualified instructor. May assist skilled workman or apprentice or
work under their direction on various classes of work which may be
performed.
7595 *PATROLMAN, LINE, ELECTRIC
--------------------------
207
An employee who has completed the 30-month step of Apprentice Lineman
and who is qualified by training, experience and knowledge to perform
without direct supervision the responsibility of patrolling/inspecting
overhead and underground electric transmission lines, overhead and
underground electric distribution lines, and other electric system plant
facilities.
The primary duties of this position are to patrol/inspect, observe,
recognize and report any damaged structures or equipment or physical
irregularities in the aforesaid facilities. May be required, based on
qualifications, to perform switching and minor electrical repairs and
incidental climbing. May be required to operate infra-red scanning
devices or other detection instruments. A record must be made of all
irregularities or damages and appropriate reports completed for follow-up
repairs by others. May assist skilled workman or apprentice, or work
under their direction, on various classes of work which may be performed.
7420 *POWDERMAN
----------
An employee who has successfully completed a Company-provided course
in the handling and use of explosives, and currently holds a valid license
to purchase, transport and use explosives in the state in which the
employee will be performing blasting operations. Duties include loosening
of materials to be excavated, opening of holes for utility poles and
anchors, and demolition of concrete footings and foundations. This
position is for upgrade only.
8716 *REPAIRMAN, CONSTRUCTION
------------------------
An employee who is qualified to lay out, install, erect, construct,
maintain and/or repair all civil/structural portions of utility
facilities. Must be qualified by training, knowledge and experience to
perform tasks typically classified as carpentry, masonry, concrete work,
ironwork, sitework and earthwork, including but not limited to general
carpentry, basic framing and forming, heavy timber construction, concrete
placement, finishing and curing, trenching and excavation, fencing,
grounding, conduit installation, rigging, structural steel erection,
hazardous waste handling and the interpretation of drawings and prints
associated therewith. Must have a working knowledge of mathematics, basic
surveying techniques, construction materials, construction equipment and
the use of hand and power tools. Must have successfully completed the
Construction Repairman Apprentice Training Program or equivalent.
8530 *REPAIRMAN, TOOL
----------------
An employee who is qualified to perform, without direct supervision,
and subordinate to the Working Foreman or Supervisor in the duties
required to receive, store, issue, maintain records, repair, maintain and
distribute tools related to all Company operations. Will not be required
to repair internal combustion engines or electric motors. May be required
to operate equipment and/or Company vehicles within the scope of the
foregoing duties. May be required to provide general direction to any
classifications assigned to him in performing work herein defined.
8535 *REPAIRMAN, TOOL (POWER PRODUCTION)
-----------------------------------
An employee who is familiar with mechanical tools and equipment used
to maintain apparatus in power plant operations. Shall issue, receive,
store, inventory, maintain records and tools related to power plant
mechanical maintenance operations. May be required to assist Journeyman
maintenance personnel as required.
9777 REPRESENTATIVE, ACCOUNTS PAYABLE
--------------------------------
An employee not required to have prior accounts payable experience,
but who must, prior to the award, pass the clerical battery test and a
typing proficiency test (45 w.p.m.). Will receive formal training in order
to perform the duties of an Accounts Payable Representative. Works alone
and makes independent decisions as necessary on such duties for which the
employee has been trained and instructed, including the MSA/Accounts
Payable-Purchasing Inventory System, in bookkeeping and in data entry
208
functions. Required to be effective when working with their customers and
responding to vendor requests and inquiries, as well as having other
qualifications generally accepted as being desirable in an Accounts
Payable Representative classification. Will automatically progress
through the wage rate scale provided the employee's performance is
satisfactory to qualify for advancement. May be required by Company to
pass written and/or proficiency tests covering any of the following
qualifications prior to job award:
1. Aptitude for routine accounting operations and bookkeeping entries.
2. Aptitude for more complex arithmetical calculations.
3. Ability to operate a computer terminal.
4. Balancing and preparation of daily balance sheets and reports.
5. Ability to operate various complex office machines/equipment.
9861 REPRESENTATIVE, CLERICAL
------------------------
An employee who after passing a clerical aptitude test, may be
assigned to perform any and all advanced clerical or secretarial functions
which require greater judgment and initiative in non-routine situations.
Performs any other miscellaneous duties as required by Supervisory
personnel in the department to which assigned, including bookkeeping and
entering functions, as well as customer contacts either in person or by
telephone. May be required by the Company to pass written and/or
proficiency test covering any of the following qualifications. (Only
those qualifications as specified in points one through six below, which
are considered by Company for a particular Clerical Representative
vacancy, shall be posted):
1. Typing with acceptable speed and accuracy (45 w.p.m. or 60 w.p.m.
as required).
2. Taking dictation in shorthand or dictaphone, etc., with acceptable
speed and accuracy (80 w.p.m.).
3. Aptitude for more complex arithmetical calculations.
4. Ability to operate various complex office machines/equipment.
5. Aptitude for routine accounting clerical operations and bookkeeping
entries.
6. Receive cash payments, balance and prepare daily cash reports.
9566 *REPRESENTATIVE, CREDIT & COLLECTIONS
-------------------------------------
An employee who is qualified to perform within a six-month period and
without direct supervision, field and office work directed by credit
supervision. Must be able to understand and have a thorough knowledge of
all credit policies and procedures, customers' records, service reports,
and the SCIS (computer) system. Must be able to collect delinquent
accounts by telephone or in the field and will be required to prepare and
turn in daily reports. Must know and understand the different types of
electric meters.
Will be required to reconnect electric meters and disconnect, seal or
OBM electric and/or gas meters for non-payment of bills. He/she will
report damaged or missing meters, metering equipment, and unusual or
abnormal meter and metering equipment conditions to supervision. He/she
may be required to do routine meter reading, service reads, special reads,
read meters for cut-ins and cut-outs. Must be qualified to meet and talk
intelligently to customers. Must have other qualifications generally
accepted as desirable to work with the public. Must be able to write
legibly and maintain a neat, clean appearance. Will be required to
satisfactorily complete the minimum requirements of the Sierra Customer
Information System (SCIS) training program and have the ability to operate
the CRT. His/her Supervisor may assign other duties related to
collections and credit.
9776 *REPRESENTATIVE, CUSTOMER SERVICES
----------------------------------
An employee not required to have prior customer services experience
and who, after passing a clerical aptitude test, will receive formal
training in order to perform the duties of Customer Services
Representative. Upon satisfactory completion of the minimum requirements
of the Sierra Customer Information System (SCIS) Training Program, and
209
while receiving on-the-job training, may be assigned to any of the duties
performed by the Customer Services Representative in the Central District
Customer Business Office, Meter Reading, Cash Operations, Energy
Diversion, Service Center or District Offices. Shall be required by
Company to pass the SCIS training proficiency test. Required to be
effective when working with the public and responding to customer requests
and inquiries, as well as have other qualifications and qualities
generally accepted as being desirable in a customer services
classification. Works alone on duties for which employee has been trained
and instructed and makes independent decisions as necessary to satisfy
customer needs and provide quality customer service. Will automatically
progress through the wage rate scale provided the employee's performance
is satisfactory to qualify for advancement. May be required by Company to
pass written and/or proficiency tests covering any of the following
qualifications:
1. Typing with acceptable speed and accuracy (45 w.p.m.)
2. Aptitude for arithmetical calculations.
3. Ability to operate various office machines and personal computers
as required.
4. Spanish speaking skills.
9735 *REPRESENTATIVE, CUSTOMER SERVICES, SENIOR
------------------------------------------
An employee who has demonstrated to the satisfaction of the Company,
through a minimum of three (3) years' experience as a Customer Services
Representative, that he/she is qualified to perform, with a minimal amount
of supervision, all functions relating to Customer Services; Customer
Billing; Customer System Controls; Credit and Collections; Service Center
operations and/or; District Office operations. Required to be effective
when working with the public and responding to customer requests and
inquiries, as well as having other qualifications and qualities generally
accepted as being desirable in customer services classifications.
Required to make independent decisions as necessary to satisfy customer
needs and provide on-the-job training. (Only those qualifications as
specified in points 1 through 6 below, which are considered by Company for
a particular Customer Services Representative Senior vacancy, shall be
posted.)
1. Skilled in the use of the Automatic Call Distributor telephone
system as well as the on-line inquiry and order entry Customer
Information System (SCIS).
2. Performs all clerical functions related to computer printed edit
lists, revenue adjustments, corrected bills and other related off-
line functions as required.
3. Understands service bills, billing rates, deposit requirements,
termination of service rules and the use of various computer reports
prepared for credit and collection work.
4. Performs all clerical functions related to the Service Center
operation.
5. Performs all clerical functions pertaining to the meter inventory
system, customer system controls and balancing, and other related
activities using the Customer Information System (SCIS).
6. Performs all clerical functions related to District Office
operations.
9181 *ROD AND CHAINMAN
-----------------
An employee who performs semi-skilled field survey work under the
direction of a Supervisor. Working as a Rodman or Chainman, he may be
required to draw field sketches, make notes, and perform minor survey
calculations in the field or office as required. The employee must have a
working knowledge of mathematics, including trigonometry. His duties may
include assisting in mapping and drafting. May be required to pass an
oral or written examination or performance test covering these
qualifications.
7485 *SERVICEMAN, CUSTOMER
---------------------
An employee who has completed his apprenticeship and does such work as
checking operations of gas meters, installing and altering gas meter and
regulator installations; will make adjustments and repairs of domestic,
commercial, industrial, and Company rental gas equipment and appliances.
Will set or replace electric meters and inspect tampered gas and electric
meters, inverted and switched electric meters and investigate all types of
210
broken meter seals. Will make electric, gas and water cut-ins and cut-
outs, seal or O.B.M. meters and in conjunction with the aforementioned
duties will collect delinquent payments and deposits at the customers'
premises. Will investigate gas and water customer complaints, make
service checks on customers' premises and must be able to discuss service
problems and advise both existing and prospective customers. Must be able
to learn the application of pipe locator equipment, determine leak
locations in regard to Company or customer side of water curb cock and
investigate water customer complaints. May be required to change periodic
clock charts at various locations. Must be able to write legibly and
maintain a neat, clean appearance and must be qualified to work with the
public.
A Serviceman, Customer shall be required by Company to reside within a
thirty-five (35) mile radius of the Company headquarters to which they
regularly report.
7628 *SERVICEMAN, CUSTOMER (DISTRICT)
--------------------------------
An employee who is qualified to perform, without direct supervision,
electric cut-ins, electric cut-outs, and electric meter exchanges.
Will be required to inspect and report on tampered, inverted and
switched electric meters and to investigate broken meter seals and
occupant bills. Will also be required to do routine meter reading,
special reads, read meters for cut-ins and cut-outs seal or O.B.M. meters,
collect delinquent payments and deposits at the customer's premises, and
such other customer service work as may be assigned from time to time.
Will be required to complete any and all forms as applicable.
Must be able to write legibly and maintain a neat and clean
appearance.
Must have six (6) months training as a Meter Reader-Collector or field
related experience before assignment to the job.
8720 *SERVICEMAN, EQUIPMENT
----------------------
An employee who has a strong mechanical background and good knowledge
of plant equipment and its lubrication needs. Duties will include
equipment lubrication, changing filters, recordkeeping, and minor repairs,
such as adjustment of packing, drive belts, tightening of safety guards
and repair of minor leaks noticed during normal lubrication duties. Will
be responsible for keeping his assigned area clean, maintaining
lubrication equipment, and maintaining proper lubricant inventory. Will
work under general supervision and have a good knowledge of plant safety
and tagging procedures.
7625 *SERVICEMAN, WATER
------------------
An employee who is a Fitter or equivalent. His background of
apprentice training and experience must be such as to qualify him to
perform these duties with skill and efficiency. Must be able to learn the
application of pipe locator equipment, determine leak locations in regard
to Company or customer side of curb cock and investigate water customer
complaints. Will be required to set and remove water meters and remote
readers. Will be required to check for and investigate tampered or
damaged water meters, remote readers, and remote cables as well as repair
or replace remote cables. May be required to assist in the field with the
testing of water meters. May be required to change recording instrument
charts at various locations. Will be required to make water, electric and
gas cut-outs and water and electric cut-ins.
9865 SPECIALIST, CLERICAL
--------------------
An employee who, after passing a clerical aptitude test, may be
assigned to perform any and all routine clerical functions which require
specialized knowledge of subject area. Handles differing situations,
problems, and deviations in the work of the office according to
Supervisory personnel, general instructions, and priorities. Performs any
other
211
miscellaneous duties as required by the Supervisory personnel in the
department to which assigned, including customer contacts in person and by
phone. May be required by Company to pass written and/or proficiency test
covering any of the following qualifications. (Only those qualifications
as specified in points 1 through 4 below, which are considered by Company
for a particular Clerical Specialist vacancy, shall be posted.)
1. Typing with acceptable speed and accuracy (45 w.p.m.).
2. Taking dictation in shorthand, dictaphone, etc., with acceptable
speed and accuracy (80 w.p.m.).
3. Aptitude for standard arithmetical calculations.
4. Ability to operate various standard office machines/equipment.
8150 *SPECIALIST, EQUIPMENT, WATER TREATMENT
---------------------------------------
An employee who is responsible for the operation and routine
maintenance of water treatment equipment and machinery, including flow
meters. Will be required to conduct water treatment tests including
determination of coagulant and purification dosage. Must be able to
modify existing water treatment systems when needed and be capable of
recognizing the need for making these changes and make recommendations.
Will be required to make preliminary analysis of usage and costs of
chemical and chemical equipment. Must be able to make estimates for plant
operations improvements and changes. Will be required to keep accurate
records of plant operations and maintenance, chemical usage, purchases and
other special reports as required. Will be responsible for maintaining
proper stock of water treatment chemicals for all plants. Will be
required to pass a written examination for Water Treatment Operator's
Certification as set forth and prescribed by the State of Nevada or the
Federal Government.
9745 *SPECIALIST, METER DATA
-----------------------
An employee who possesses the necessary knowledge and skill through
experience and training to provide a high level of technical data
processing and support to ensure all meter reading data for billing is
complete and accurate. Employee is responsible for using his/her
knowledge to support the electronic meter reading system for billing
through daily processing of collected data. Maintains existing computer
application software through trouble-shooting and installation of new
software in all personal computers associated with the electronic meter
reading system. Provides district offices with technical support for the
electronic meter reading system including trouble-shooting and training.
Provides procedural instructions for use of computer software
packages. Must understand the mainframe-p.c. link software to upload and
download sensitive billing data through the electronic meter reading
system. Maintains inventory of electronic handheld devices and ensures
adequate equipment is available to all district offices through
coordination and distribution.
Employee must have a thorough understanding of the fundamentals and
have a practical understanding of data processing techniques, data
collection procedures and meter read preparation. Must have comprehensive
knowledge of personal computers, system hardware, communication devices
and application software. Must have considerable knowledge of the
electronic meter reading system and data acquisition. Must possess the
ability to analyze and document the operations of the electronic meter
reading system. Must be able to communicate effectively, both orally and
in writing.
8958 *SPECIALIST, WATER SUPPLY
-------------------------
An employee who, with minimum supervision, is responsible for the
inspection, maintenance and customer ditch water supply turn on and off's,
protection of the watershed from upriver storage dams to plant intakes for
potential or actual contamination. Will be required to measure and record
water flows, operate ditch/dam gates, make repairs on ditch/dam gates and
water flow measuring devices as directed, measure well groundwater depths
and perform a variety of other tasks related to watershed protection and
reservoir/ditch operation. Observes and recognizes the proper operation
and status of all
212
facilities contained within all pump reservoirs, pressure recording
stations, and metering stations throughout the entire water transmission
and distribution systems. Maintains well chemical systems. Will be
required to accurately collect field data, using this data to perform
calculations for reporting information. Must have ability to employ and
working knowledge of mathematics (including algebra and trigonometry and
exponents), personal computers and spreadsheets, and related field
relations, writing and verbal skills. Will be required to pass a written
examination and/or performance tests covering any of these qualifications
listed above. In order to remain in the position, must, within six (6)
months from entering the position, demonstrate the ability to learn and
understand the specialized instruments, software and reporting
requirements to a satisfactory level. May be required to supervise
unskilled labor.
8847 *STOREKEEPER
------------
An employee with no less than two (2) years' experience as a
Warehouseman, who has charge of a District Stores facility (outside the
Reno area) and who is qualified to perform and direct, without direct
supervision, and subordinate to the Supervisor in charge, all work
relating to the ordering, receiving, shipping, handling, storing,
disbursing and salvaging of materials and supplies, and the taking of
inventories. The employee shall be familiar with the Company's Stores and
Accounting procedures and other applicable rules. Shall be required to
perform all related clerical duties and to operate equipment and/or
Company vehicles within the scope of the foregoing duties. Shall provide
general direction to any classifications assigned to assist him in
performing stores work herein defined. May be assigned to perform other
work as occasions arise.
8780 *SURVEYOR, LEAK
---------------
An employee with background and experience in Gas and Water Operations
with training in leak surveying or fitting or other related equivalent
fields. Must have a good knowledge of and be capable of operating and
performing minor maintenance and care of equipment, such as: combustible
gas indicator, flame ionization leak detector, odorometer, pipe locator
and any other equipment that may be required by regulation for use in
locating and pinpointing gas leaks in underground or above-ground
installations of the gas system. Will be required to test for gas in
basements, vaults, manholes and other areas where gas may accumulate as
part of the continuing gas leak survey program and assist in the annual
system leak survey program. Will be required to repair minor leaks on
above-ground facilities. May be assigned to grease and operate gas valves
throughout the system and to clean out and/or raise valve road boxes. May
also be required to assist the Gas Pressure Operator in the control of gas
pressure throughout the distribution system. May be required to pick up
and change pressure and/or volume flow charts from gate and regulator
stations and commercial customers. May be required to assist in water
leak surveys. May be assigned other duties as required in the operation
of the gas distribution system during peak loads or emergencies under the
direction of a higher classified person. Must be able to write legibly
and keep accurate records. Will be required to make out daily and monthly
reports.
7135 *TECHNICIAN, COMMUNICATIONS, CLASS I
------------------------------------
An employee who is qualified by training and knowledge to install,
maintain, repair and adjust all types of communication and data
transmission facilities, including but not limited to two-way radio,
telephone, manual and automatic PBX systems, microwave, power line
carrier, Supervisory control, telemetering equipment, data transmission,
and modem equipment and other electronic and communication work as
required. Shall be required to do work planning and assist in the
training of department personnel.
1. Must hold a current Federal Communications Commission General Radio
Telephone Operator's License or have taken and passed a Sierra
Pacific Power Company certification test with a grade of 75% or
higher.
2. Must have completed two (2) years or more as a Communications
Technician Class II.
213
3. Must have successfully completed and passed the prescribed Class I
and Class II course of instruction and required tests.
7145 *TECHNICIAN, COMMUNICATIONS, CLASS II
-------------------------------------
An employee who is qualified by training and knowledge to install,
maintain, repair, and adjust all types of communication and data
transmission facilities including but not limited to two-way radio,
telephone, manual and automatic PBX systems, microwave, power line
carrier, Supervisory control, telemetering equipment, data transmission,
and modem equipment and other electronic and communication work as
required. Shall be required to do work planning and assist in the
training of department personnel.
1. Must hold a current Federal Communications Commission General Radio
Telephone Operator's License or have taken and passed a Sierra
Pacific Power Company certification test with a grade of 75% or
higher.
2. Must have completed two (2) years or more as a Communications
Technician Class III.
3. Must have successfully completed and passed the prescribed Class II
course of instruction and required tests.
This employee will be reclassified to Communications Technician Class
I upon completion of two (2) years in this classification and successfully
completing and passing the prescribed Class I course of instruction and
required tests.
7147 *TECHNICIAN, COMMUNICATIONS, CLASS III
--------------------------------------
An employee who is qualified by training and knowledge to install,
maintain, repair, and adjust all types of communication and data
transmission facilities including but not limited to two-way radio,
telephone, manual and automatic PBX systems, microwave, power line
carrier, Supervisory control, telemetering equipment, data transmission,
and modem equipment and other electronic and communication work as
required. Shall be required to assist in the training of department
personnel.
1. Must hold a current Federal Communications Commission General Radio
Telephone Operator's License or have taken and passed a Sierra
Pacific Power Company certification test with a grade of 75% or
higher.
2. Must have successfully completed the Communication Technician's
apprentice program or equivalent.
This employee will be reclassified to Communications Technician Class
II upon completion of two (2) years in this classification and
successfully completing and passing the prescribed Class II course of
instruction and required tests.
7133 *TECHNICIAN, COMMUNICATION SYSTEMS
----------------------------------
An employee who is qualified by training and knowledge to install,
maintain, repair, and adjust all types of communication and data
transmission facilities, including but not limited to two-way radio,
telephone, manual and automatic PBX systems, microwave, power line
carrier, Supervisory control, telemetering equipment, data transmission,
modem equipment and other electronic and communication work as required.
Must have a thorough knowledge of the ESCC computer system and be capable
of performing maintenance and repair on that equipment or any peripheral
equipment associated with the computer system. Shall be required to do
job planning and assist in the training of department personnel.
1. Must hold a current Federal Communications Commission General Radio
Telephone Operator's License or have taken and passed a Sierra
Pacific Power Company certification test with a grade of 75% or
higher.
2. Must have completed two (2) years or more as a Communications
Technician Class I.
3. Must have successfully completed and passed the System
Manufacturers courses of instruction on the computer system
consisting of Micro-diagnostics
214
Troubleshooting Techniques, System Architecture, and System
Maintenance or similar courses provided by Sierra Pacific Power
Company.
7075 *TECHNICIAN, CONTROL
--------------------
An employee who has been a Journeyman Electrician for at least two (2)
years and has successfully completed the Control Technician course.
He/she will be further qualified by training and knowledge to install,
maintain, test, repair and adjust protective relays, substation control
equipment, substation equipment, substation metering and other work as
required. Must be qualified to perform switching. Must be able to
analyze and troubleshoot complex substation equipment and record test data
and prepare detailed test reports and analytical graphs or data tables.
Must be capable of work planning.
7015 *TECHNICIAN, CONTROL, SENIOR
----------------------------
An employee who has been a Control Technician for at least two (2)
years and has successfully completed the Senior Control Technician course.
Must be fully qualified to install, maintain, test, repair, and adjust
both the normal and most complex types of microprocessors, solid state,
and electro-mechanical relays and relay packages. Must be qualified to
perform switching. Must have the capability to analyze and troubleshoot
all types of complex substation relay, control, and disturbance analysis
circuits and devices. Will be required to do work planning and assist in
the training of Control Technicians. Must have the capability to prepare
and analyze detailed test reports, graphs, and tables.
7110 *TECHNICIAN, ELECTRICAL, PLANT
------------------------------
An employee who is a Journeyman and is engaged in testing, repairing,
maintaining and installing all types of electric and electronic equipment
and related components in generating stations. May be required to do
plant and plant substation switching. May be required to do incidental
welding, such as tack hangers and test welding machines after repair, etc.
Must be qualified to operate station crane. His background of
apprenticeship and experience must be such as to qualify him to perform
these duties with skill and efficiency. He may also be required to
instruct or advise operating personnel on problems pertaining to
electrical equipment. He must be thoroughly familiar with Company's
electrical and mechanical tagging and safety rules and be able to render
first aid.
7073 *TECHNICIAN, INSTRUCTION/STANDARDS
----------------------------------
An employee who possesses the necessary knowledge and skill through
experience and training to prepare, direct and schedule training for
Apprentice and Journeymen Electricians and other Company personnel who may
be required to work in or around electric substations. Must have been a
Journeyman Electrician for at least four (4) years. Must be able to
demonstrate complete knowledge of current installation and maintenance
procedures for all substation equipment to include, but not restricted to
gas, oil, air and vacuum circuit breakers; transformers, tap changers and
regulators and all ancillary equipment involved with same. Must have a
basic knowledge of transmission and distribution relay protection schemes
including transformer and bus protection. Must be able to read,
comprehend and interpret all electric blueprints such as one (1) line,
three (3) lines, wiring diagrams, schematics and erection drawings and
plot plans. Must be familiar with all safety standards (i.e. IEEE, ANSI,
OSHA and SPPCo.). Will have successfully completed substation and
overhead switching training. Must have ability to read and comprehend
technical material, instruction manuals and textbooks for the purpose of
training other personnel in the maintenance and installation of new and
existing equipment. Must have a thorough knowledge of, and the ability to
train others in electrical test procedures and overhead substation
switching procedures. Must have a thorough knowledge of and the ability
to administer the Electrician Apprenticeship Agreement between SPPCo. and
IBEW Local 1245. Will be required to organize and maintain training files
and records, prepare and present both written and oral reports, and
conduct training for large and small groups in both classroom and field
settings. Will act as SCAT apprenticeship liaison to SPPCo. Joint
Apprenticeship Committee and the State of Nevada Apprenticeship Council.
When not engaged in instruction and standards, may be assigned
215
to work as an Electrician. Will be subject to overtime assignments when
working as an Electrician and averaged into the year to date overtime
list.
7150 *TECHNICIAN, INSTRUMENT
-----------------------
An employee who is a graduate of an accredited two-year technical
educational institution in a field related to one (1) of the engineering
sciences, or possesses the equivalent knowledge, and is qualified by
training to install, calibrate and test instruments and meters used in
steam, hydro, diesel and gas turbine power plants, and who has further
qualified himself by training and education to install, calibrate, test
and service complex automatic control systems such as combustion controls,
chlorination equipment, etc., in order to obtain efficient operation. May
perform, under direction, corrective measures to improve the performance
of equipment. Must be able to understand relatively complex technical
problems and perform a wide variety of non-routine tasks where only
general methods of procedure are available. Must be able to plan and
conduct tests on various power plant equipment, perform test calculations,
interpret the results and prepare detailed test reports, graphs, etc. May
perform other related duties as required.
7515 *TECHNICIAN, LAB
----------------
An employee who, under general supervision, operates station water
treating equipment, secures and analyzes fuel, water and air samples and
maintains proper chemical treatment for the plant water, fuel and steam
systems. Must be proficient with standard laboratory techniques and
equipment for analyzing fuel, water and air samples. Makes necessary
chemical calculations and prescribes required feed rates and correction
procedures to maintain established chemical control limits and practices.
Monitors and maintains proper calibration on station chemical
instrumentation and performs minor servicing as required. Maintains
filing system and log of all data pertinent to station water and fuel
treatment. Prepares written reports and performs statistical work and
other related duties as required. Assists, if required, in unloading and
storage of all chemicals, and will maintain chemical burn and eyewash
stations. Will train operators and other personnel in chemical analysis
and operation of water treatment as required. Is responsible for
cleanliness of chemical laboratory, water treatment equipment areas and
for maintaining proper stock of water treatment chemicals. Must be
familiar with Company's safety rules and be able to render first aid. May
be required to work shift work. When not assigned to laboratory duties,
may be assigned to work in accordance with Section 6.13(b).
7165 *TECHNICIAN, METER I
--------------------
An employee who has served successfully his apprenticeship or
equivalent for Technician, Meter I. Must have sufficient working
knowledge of electricity to be able, by the use of instruments, to
determine power, volt amperes, power factor and reactive component in an
electric circuit. Must be able to program, test, read, and troubleshoot
demand, reactive, and TOU meters, both induction and solid state types,
and solid state recorders, using computers where needed. Applicants will
be expected to prove possession of these qualifications by successfully
passing a test with a score of 75% or better.
7170 *TECHNICIAN, METER II
---------------------
An employee who has been a Technician, Meter I for at least two (2)
years and who, in addition, has successfully completed the Technician,
Meter I course plan. Must be able to perform all the tasks as specified
for Technician, Meter I, plus be able to program, read, test, and
troubleshoot multi-tariff four-quadrant meters and specialized test
equipment and metering systems. Applicants will be expected to
demonstrate their competence in these fields by passing a written test
with a score of 75% or better.
7175 *TECHNICIAN, METER, SENIOR
--------------------------
An employee who has two (2) years of job experience as a Technician,
Meter II and who, in addition, has successfully completed the Technician,
---
Meter II course plan. Must be able to perform all the tasks as specified
for the Technician, Meter II, plus be able to troubleshoot Itron Hardware
and resolve billing translation and mainline billing problems,
216
using load graphs or other computer listings as needed. Will be required
to do work planning and assist in developing and presenting training
programs for Apprentices and Meter Technicians. This position is
promotional only. Successful candidate will report to the Working Foreman,
Technician, Meter.
7125 *TECHNICIAN, REGULATOR, GAS AND WATER
-------------------------------------
An employee under the supervision of the Gas and Water Meter Shop
Foreman whose responsibilities and duties include the repair, maintenance,
and calibration of gas and water control and measuring devices within the
distribution system including gas regulator stations and meter stations.
Must be capable of working alone when required.
Shall be required to test, calibrate, and maintain maintenance
schedules of gas and water meters and various equipment, instruments,
large house regulators where pounds pressure is delivered, pressure and
temperature compensating devices, scallop recorders, combination water
meters with regulators, 3" and larger water meters with strainers. Must
have experience on all mechanical and electronic correcting devices used
in Company's system. Will be required to assist in training personnel in
all phases of gas control and regulation. May be assigned to other duties
as required to assure safe and reliable gas and water supply and service
throughout the system. Must be capable of analyzing the gas equipment of
Company's commercial and industrial customers and provide pertinent
information in relation to their natural gas facilities. Shall be
responsible for recording all maintenance and inspection records as
required by Department of Transportation regulations.
Must have completed two (2) years' experience as Journeyman Meterman-
Gas and Water, or equivalent.
7151 *TECHNICIAN, SCADA
------------------
An employee who has completed an apprenticeship in the electrical
field and can demonstrate experience in the instrumentation area or who
has completed an apprenticeship in the instrumentation field and can
demonstrate experience in the electrical area. Equivalent training and
experience may also be considered. Must be qualified to maintain, repair,
install and trouble-shoot various water system instruments, electronic
devices and motor control devices, including but not limited to
calibration and/or repair of all primary sensors, chlorination equipment,
meters, pressure switches, etc.; problem analysis and/or
replacement/repair of telemetry communications circuits, circuit breakers,
fuses, control wiring and other electrical motor control equipment;
programming of logic controllers and troubleshooting remote terminal
signals to computer controlled systems. Must be able to understand
relatively complex technical problems and perform a wide variety of non-
routine tasks where only general methods of procedure are available. May
be required to do work planning and in a courteous and professional
manner, train and direct the activities of other employees. Must have
good knowledge of electrical and mechanical tagging procedures, safety
rules and the ability to render first aid.
7155 *TECHNICIAN, SHIFT, INSTRUMENT & CONTROL, PINON
----------------------------------------------
An employee who is a graduate of an accredited two-year technician
educational institution in a field related to one of the engineering
sciences, or possesses the equivalent knowledge, and is qualified by
training to install, calibrate, and test instruments and meters used in
steam, hydro, diesel and gas turbine power plants, and who is further
qualified by training and education to install, calibrate, test and
service complex automatic control systems such as combustion controls,
chlorination equipment, distributive control systems, etc., in order to
obtain efficient operation. May perform, under direction, corrective
measure to improve the performance of equipment. Must be able to
understand relatively complex technical problems and perform a wide
variety of non-routine tasks where only general methods of procedure are
available. Must be able to plan and conduct tests on various power plant
equipment, perform test calculations, interpret the results and prepare
detailed test reports, graphs, etc. May perform other related duties as
required including plant operating duties that he has been trained to
perform. (This position is a shift
217
employee and is subject to the current 12-hour shift scheduled agreement
and/or applicable sections of Title 6 in the Collective Bargaining
Agreement.)
7052 *TECHNICIAN, SUBSTATION
-----------------------
An employee who has been a Control Technician for at least two (2)
years and has successfully completed the Substation Technician training
course. Must be fully qualified to install, maintain, test, repair, and
adjust some solid state relays and electro-mechanical relays and relay
packages. Must have an advanced knowledge of substation equipment and
their mechanical function and the ability to repair, test, adjust, and
maintain this equipment. Must be qualified to perform switching. Must
have the capability to analyze and troubleshoot all types of complex
substations, controls, and disturbance analysis circuits and devices.
Will be required to do work planning and have a good working knowledge on
substation construction and maintenance problems.
7225 *TROUBLEMAN, ELECTRIC
---------------------
An employee with at least two (2) years of experience as a Lineman,
engaged in performing any overhead and underground work in connection with
maintaining electric service to the public, including the installation of
all types of customer services, including risers and terminal connections
when the service is to be underground, meters and materials, replacing
line and transformer fuses; patrolling, switching, restoring service on
"no light" and "no power" calls and operating unattended substations.
Must be qualified to perform switching. May install Company-owned
customer outdoor lighting service equipment, may make short secondary
extension using bundle conductors and may perform emergency maintenance
and/or repairs to overhead and underground secondary and primary circuits
which he is equipped to handle. May do minor repairing on customer's
equipment. Must be qualified to work with the public. A Troubleman may
work alone or may have additional personnel assigned to assist him.
Troubleman when working in a two-man unit performing work as outlined
above may have any one (1) of the following as an assistant: another
Troubleman, a Lineman, or a Service Utilityman. When installing services
the assistant may be an Apprentice Lineman assigned for training as
provided under the apprentice training program.
When working on work as outlined above in a three-man unit the
Troubleman may be assisted by another Troubleman and one (1) Service
Utilityman or by two (2) Service Utilitymen.
If any other combination of three (3) or more persons is used or work
is performed other than outlined above, the unit shall constitute a crew
and will require a Working Foreman as part of the complement.
A Troubleman shall be required by Company to reside within a thirty-
five (35) mile radius of the Company headquarters to which they regularly
report.
9115 *UTILITY MATERIALS SPECIALIST
-----------------------------
An employee who is qualified to perform, without direct supervision,
and subordinate to the Working Foreman or Supervisor in charge, duties
relating to the ordering, receiving, shipping, handling, storing,
disbursing and salvaging of materials and supplies, and the taking of
inventories. Shall be required to perform related clerical duties. May
be required to operate equipment and/or Company vehicles within the scope
of the foregoing duties. May be required to provide general direction to
any classifications assigned him in performing work herein defined.
8842 *UTILITY MATERIALS SPECIALIST I
-------------------------------
An employee with at least two (2) years of experience as a Utility
Materials Specialist and who is qualified to perform, without direct
supervision, and subordinate to the Working Foreman, or Supervisor in
charge, duties relating to the ordering, receiving, shipping, handling,
storing, disbursing and salvaging of materials and supplies, and the
taking of inventories. Shall be required to transport supplies and
equipment; load and unload truck,
218
maneuver truck and operate fixed and attached equipment; responsible for
keeping tools in good order. Will also be required to operate other
equipment and/or Company vehicles in connection with foregoing duties.
Will be required to perform related clerical duties. May be required to
provide general direction to any classifications assigned him in
performing work herein defined.
9118 *UTILITY MATERIALS SPECIALIST, TRAINEE
--------------------------------------
An employee not required to have prior warehouse experience and who,
after passing a clerical battery and physical abilities test, will receive
formal training in order to perform the duties of Utility Materials
Specialist. Performs work as an assistant to or under direct supervision
on jobs for which he has been trained and instructed. The employee must
satisfactorily complete classroom training on basic inventory management,
on-the-job training in computer operation, equipment operation, general
material classification and become familiar with inventory management
policies and procedures. Will be required to perform duties relating to
the ordering, receiving, shipping, handling, storing, disbursing and
salvaging of materials and supplies, and the taking of inventories. Shall
be required to perform related clerical duties. Will be automatically
reclassified to the title and beginning rate of Utility Materials
Specialist after six (6) months of satisfactory job performance in the
trainee classification.
8655 *UTILITYMAN, GAS
----------------
An employee with knowledge and experience of the operation and
maintenance of gas distribution systems. This employee will be under the
general supervision of a person in a higher classification and shall be
required to perform duties which include the control of pressure and
maintenance of the gas flow in the distribution system and operation and
maintenance of the gas regulator stations. Must be able to operate, test
and/or calibrate and perform scheduled maintenance on all equipment or
instruments used in gas measurement and heating value of the gas. Will be
required to change pressure and volume charts from various recorders and
take readings and compute gas usage. May be assigned other duties as
required to insure the safe and reliable operation of the gas system
during peak loads or emergencies. Under supervision, will be required to
perform all of the duties of the Gas Pressure Operator during his absence.
Must be able to write legibly.
8830 *UTILITYMAN, MAINTENANCE
------------------------
An employee who performs skilled and semi-skilled work under the
direction of a Senior Maintenance Utilityman or Supervisor to gain
experience for advancement. Work will include, but not be limited to,
repairs and up-keep to mechanical equipment, electrical systems, changing
filters, chemical treatment, plumbing, etc. Most duties will be building
maintenance related. Will be required to perform other duties as
necessary.
8420 *UTILITYMAN, MAINTENANCE, SENIOR
--------------------------------
An employee who performs all types of skilled maintenance associated
with building maintenance, including but not limited to, repairs and
upkeep of mechanical equipment, electrical systems, changing filters,
chemical treatment, plumbing, etc. He shall direct and train the work of
others assisting him. Will be required to perform other related duties as
necessary. Must have two (2) years' experience in working with
mechanical/building equipment, or equivalent work experience with air
handling system.
8888 *UTILITYMAN, SERVICE
--------------------
An employee engaged in setting electric meters and making electric and
water cut-ins and making electric, water and gas cut-outs; making electric
connections at the weatherhead and assisting the Troubleman. An employee
who has had at least one (1) year's experience as either an Apprentice
Lineman, Apprentice Fitter, or equivalent experience shall be given an
experience rating to the one (1) year wage step.
7601 *UTILITYMAN, SUBSTATION
-----------------------
An employee who has successfully completed at least eighteen (18)
months of the Apprentice Electrician training course or equivalent. Work
will include but not be limited
219
to changing substation meter charts (including fault recorders), record
meter readings, record breaker, regulator and transformer operation
counter, pressure and temperature, general inspection of substation for
discrepancies and making sure substation is stocked with clearance tags,
light bulbs and other miscellaneous equipment. Employee will be required
to work alone. Employee will be required to use simple instruments such as
voltmeters and ammeters to check for proper voltage and current at various
locations within the substation.
8890 *UTILITYWORKER, COMMUNICATIONS
-----------------------------
An employee who is qualified to provide quality customer service by
installing, troubleshooting, repairing, testing, maintaining and verifying
port connections and equipment for all types of Company operated telephone
systems, including digital and analog terminations, distribution, cabling,
fiber optics, network interface systems, circuit protective devices and
other terminating and distribution equipment as directed. Is also
required to provide quality customer service by resolving radio frequency
interference complaints under the general supervision of a qualified
employee. May be required to assist Journeyman Communications Technicians
and perform other work as assigned.
9585 *UTILITYWORKER UNIVERSAL
------------------------
An employee assigned to perform field work such as reading and
computing demand meters, collection of delinquent accounts, cut-ins and
cut-outs. May be required to make up blanket work and job orders in
connection with local crew operations. May also be required to perform
various stores department duties in the local warehouse and other
miscellaneous duties, including assignment to work crews as required by
the Supervisor.
Note: This employee is not intended to replace a Journeyman or a
qualified employee, either singly or in a crew situation. It is the
intent this classification be used to perform various semi-skilled
duties.
7380 *WELDER, MECHANIC
-----------------
An employee who is qualified to perform, under general supervision,
all phases of SMAW, GTAW, GMAW, brazing and gas welding. The welder must
have passed and maintained the appropriate ASME welder's performance test
certification, using a Sierra Pacific Power Company qualified welding
procedure specification. Must have completed and passed the ICS portion
of the Apprentice Plant Mechanic training program. He must be familiar
with and perform repairs of boilers, turbine, generators and all
auxiliaries and perform these and other related duties with skill and
efficiency. He is required to work from drawings and sketches, do layout
work for fabrications of pipe and pipe hangers, know proper procedures for
stress relieving and be thoroughly familiar with the Company's electrical
and mechanical tagging and safety rules and be able to render first aid.
9250 *WORKER, BUILDING SERVICES, LEAD
--------------------------------
An employee working with and directing other Building Services Workers
in maintaining the building and surrounding areas, to which he is
assigned. Must be familiar with all details of Building Services work and
shall provide supervision and training to the Building Services staff.
Will be required to maintain supplies and to see that Building Services
equipment is kept in good working condition. Shall notify Supervisor when
repairs are needed and when problems arise. Must have three (3) months
experience as a Building Services Worker before assignment to the job.
May be required to keep time slips and records. May be required to have a
valid Health Department Work Permit.
9310 *WORKER, CONSTRUCTION
---------------------
An employee who assists Repairmen, Truck Drivers and Equipment
Operators in the performance of their work. Must be able to learn all
phases of the construction, repair, and alteration of wood, metal, masonry
and earthen structures and utility facilities. Must be able to learn to
use hand and power tools, and work in conjunction with heavy equipment.
Must be knowledgeable of Company Safety Rules and General Policies.
220
ATTACHMENT II
-------------
EXHIBIT "B" (2)
---------------
(as Amended January 1, 1998)
DELETED JOB CLASSIFICATIONS
---------------------------
The following classifications shall be deleted and the incumbents shall be
reclassified as indicated:
1. 6285 Foreman, Mechanic, Maintenance, Working
becomes
Foreman, Mechanic, Maintenance & Control, Working
2. 6295 Foreman, Shift, Working, Water Treatment
becomes
6297 Foreman, Shift, Water Treatment, Working
3. 7590 Mechanic, Maintenance
becomes
Mechanic, Maintenance & Control, WP
4. 7683 Apprentice, Mechanic, Maintenance
becomes
Apprentice, Mechanic, Maintenance & Control, WP
5. 6020 Foreman, Shop, Working
becomes
Foreman, Utility Fleet, Working
The following classifications shall be deleted:
1. 6815 Foreman, Meter Reader, Working
2. 7050 Operator, System, Senior
3. 7120 Technician, Well Production
4. 7140 Technician, Communications, G/W
5. 7215 Operator, Emergency Relief
6. 7220 Operator, System
7. 7355 Technician, Systems, Peaking/Hydro
8. 7510 Operator, System, Assistant
9. 7560 Mechanic, Traveling
10. 7602 Painter/Bodyman
11. 7603 Apprentice, Painter/Bodyman
12. 8210 Operator, Substation
13. 8745 Operator, Utility
14. 8778 Operator, Equipment, Assistant
15. 8840 Operator, Water Plant, Assistant
16. 8940 Operator, Utility II
17. 8950 Garageman, Traveling
18. 9244 Operator, Utility III
19. 9725 Representative, Accounts Payable, Sr.
20. 9781 Clerk, Data Control
21. 9855 Specialist, Translation Data
222
ATTACHMENT III
--------------
LETTERS OF UNDERSTANDING
------------------------
1. CLERICAL BIDDING NOTES (Moved to Attachment IV, Exhibit "C" (1), Bidding
----------------------
Notes, effective 1/1/98)
2. SICK LEAVE PAYOFF (Moved to Title 15.9, effective 1/1/98)
-----------------
3. COMMUNICATIONS TECHNICIAN, TELECOMMUNICATIONS DEPARTMENT
--------------------------------------------------------
Guidelines to place incumbent Communications Technicians in revised
Communications Technician Class I, II, and III lines of progression.
A. All incumbent Communications Technicians at date of ratification
will be reclassified to Communications Technician Class II at the
starting wage rate.
B. Each incumbent employee will be required to enroll in the Class II
course of instruction. Upon satisfactory completion of the Class II
course of instruction, each employee may enroll in the Class I
course of instruction and progress within that job classification.
C. Each incumbent employee placed in the Communications Technician
Class II classification will be given a maximum of two (2) years to
satisfactorily complete the Class II course. If an employee fails
to satisfactorily complete the Class II course in two (2) years,
the employee will be reclassified to a Communications Technician
Class III with the associated rate of pay. The employee will then
progress at the same rate as a new employee.
D. Each incumbent employee, except those reclassified to
Communications Technician Class III in Item 3., who have
satisfactorily completed both Class I and Class II instruction will
be reclassified to Communications Technician Class I when their
total service time as a Communications Technician and
Communications Technician Class II is forty-eight (48) months or
more.
4. EQUIPMENT OPERATOR EVALUATION COMMITTEE (Deleted 1/1/98)
---------------------------------------
5. EQUIPMENT OPERATOR PROGRAM (Deleted 1/1/98)
--------------------------
6. EMERGENCY RESPONSE PROGRAM (Moved to Attachment XII, effective 1/1/98)
--------------------------
7. FAMILY SICK LEAVE PROGRAM (Moved to Title 15.10, effective 1/1/98)
-------------------------
8. TELEPHONE ALLOWANCE
-------------------
Employees receiving the telephone allowance as of May 1, 1991 will
continue to receive one-half (1/2) of the base rate as long as they remain
in a classification where the Company requires them to install and
maintain a telephone in their home.
Effective May 1, 1991, no one will be added to the list of eligible
employees, i.e., employees bidding to classifications where the Company
may have previously required an employee to install and maintain a
telephone in their home will no longer be eligible for the phone
allowance.
9. DEPARTMENTAL SENIORITY FOR LABORERS (Deleted 1/1/95)
-----------------------------------
10. YARD OPERATOR--POWER PRODUCTION
-------------------------------
All incumbent employees in the Yard Operator classification shall be
reclassified to Senior Yard Operator effective May 1, 1991.
224
11. CLERICAL OCCUPATIONAL GROUP - CHANGING WORK HOURS (Moved to Title 6.15,
-------------------------------------------------
effective 1/1/98)
12. ACCIDENT PREVENTION BOARD BUSINESS REPRESENTATIVE AS MEMBER
-----------------------------------------------------------
E-MAIL FOR UNION COMMUNICATIONS
-------------------------------
NEW EMPLOYEE ORIENTATION PARTICIPATION BY UNION
-----------------------------------------------
(Moved to Title 14.6, effective 1/1/98)
13. JOINT BENEFITS COMMITTEE ESTABLISHED OPTIONAL LIFE INSURANCE
------------------------------------------------------------
LONG-TERM DISABILITY BARGAINING UNIT INSURING PLAN (Moved to
--------------------------------------------------
Title 22, effective 1/1/98)
14. PART-TIME EMPLOYEES TERMS AND CONDITIONS (Moved to Titles 3.5 & 22,
----------------------------------------
effective 1/1/98)
15. EQUIPMENT OPERATOR PROGRESSION GUIDELINES (Added 1/1/98)
-----------------------------------------
The Equipment Operator I performance test will generally consist of
the following: Monthly evaluations by the Working Foreman or equivalent (a
form entitled "Equipment Operator Evaluation" will be used for such
evaluations). Additionally, the employee will be required to study and
become knowledgeable of proper equipment safety and operating techniques
as well as maintenance procedures for each piece of equipment he operates
within the Equipment Operator I classification. This information is
typically found in the equipment operator's manual and/or in other
publications which deal specifically with operating equipment.
Demonstration of Equipment Operator II skills and Journeyman skills,
if applicable, will generally be determined through demonstrated
proficiency, which will be evaluated and documented on the form entitled
"Equipment Operator Evaluation". These evaluation forms are to be
completed at least quarterly by the Working Foreman or equivalent. The
Equipment Operator II should have these skills evaluated by at least 75%
of the Working Foreman in a given department over the course of the
progression, which will help ensure a representative yet thorough
appraisal of the operator's skills is being achieved.
Demonstration of understanding and basic proficiency in the following
Journeyman level skills will be required in order to progress to Equipment
Operator III:
Gas and Water Distribution Department--Polyethylene pipe fusion
-------------------------------------
(including certification), facility locating, map and print reading, use
of water tapping equipment, leak repair techniques.
General Construction Department--Carpentry and forming techniques,
-------------------------------
reinforcing steel placement, concrete finishing, surveying techniques, map
and print reading.
225
ATTACHMENT IV
-------------
EXHIBIT "C" (1)
---------------
(as Amended January 1, 1995)
LINES OF PROGRESSION FOR BIDDING AND DEMOTIONAL
-----------------------------------------------
PURPOSES BY OCCUPATIONAL GROUPS
-------------------------------
DEFINITION OF OCCUPATIONAL GROUPS
Occupational Groups shall be defined as those separate divisions of the
applicable Company "Departments" shown above. In those "Departments" where
there is no such division, the entire "Department" shall be considered as an
Occupational Group.
"A" Bid - Same classification or higher than job posted using group seniority.
(Amended 1/1/95)
"B" Bid - Next lower classifications in group seniority. Classifications shown
on chart above at the reverse end of arrows shall be considered next lower to
those to which the arrow points. (Amended 1/1/95)
"C" Bid - Same classification in any other group using Company seniority.
"D" - Any classification in same group as job being posted using group
seniority.
"E" - Any classification in any group using Company seniority.
LINES OF PROGRESSION (SEE FOLD-OUT)
226
BIDDING NOTES
-------------
1. (Deleted 1/1/95)
2. (Deleted 1/1/98) 3. (Deleted 1/1/95)
4. Classifications labeled (4) shall be considered as Lineman for bidding
purposes.
4a. Any bids to Troubleman Electric shall be awarded by group seniority.
(Added 1/1/98)
5. (Deleted 1/1/95)
6. (Deleted 1/1/95)
7. (Deleted 1/1/95)
8. Serviceman, Equipment bidding to Plant Mechanic Apprentice shall not
suffer a wage reduction if he has been in that classification for six (6)
months or more. His wages will be red-circled until such time as his step
rate in his new classification exceeds his red-circled wage rate. (Added
5/1/86)
9. Classifications labeled (9) shall be considered as "B" bids to Working
Foreman. Fitters and Fitter-Welders will be considered "A" bids to
Inspector. (Amended 1/1/95)
10. Representative, Customer Services and Meter Reader-Collector have equal
bidding rights to Representative, Credit and Collections. (Added 5/1/86)
11. Incumbent Meter Reader-Collectors shall be considered as "A" bidders to
Meter Reader-Collector Trainee and shall not suffer a wage reduction or
job classification change. (Amended 1/1/95)
12. Classifications labeled (12) need not be posted and are considered non-bid
jobs.
13. (Deleted 5/1/81)
14. (Deleted 5/1/68)
15. (Deleted 5/1/68)
16. Awards to these jobs shall require successful completion of screening
examination.
17. (Deleted 1/1/95)
18. (Deleted 5/1/71)
19. (Deleted 5/1/71)
20. (Deleted 5/1/74)
21. Classifications labeled (21) shall be considered as "B" bids to Working
Foreman subject to the time limits provided in the Working Foreman job
description. A Storekeeper who is awarded a Reno Utility Materials
Specialist vacancy shall assume the vacancy of his present Storekeeper
rate of pay. Said wage rate shall remain in effect until (1) such time as
it may be surpassed by the wage schedule of the Utility Materials
Specialist classification as the result of continuous time spent in the
Utility Materials Specialist classification or (2) until such time as it
may be surpassed by the wage schedule of Utility Materials Specialist
classification through the normal process of collective bargaining between
Company and Union. A Utility Materials Specialist who is awarded a
Storekeeper vacancy shall assume
227
the vacancy at the wage step of the Storekeeper wage schedule which is
next higher to the Utility Materials Specialist's present rate of pay.
(Amended 5/1/76)
22. (Deleted 1/1/95)
23. The successful bidder must meet the respirator fit-test requirements as
outlined by OSHA before the job award can be made. This will require the
employee to be clean shaven for the test. (Added 5/1/88)
24. If a Clerical Specialist in the Mail Room has progressed through the wage
steps of that classification and is awarded a Mail Inserter Operator
vacancy, he will start at the six-month wage step. (Added 5/1/91)
25. (Deleted 1/1/95)
26. Clarifier Operator bidding to Apprentice Lab Technician shall not suffer a
wage reduction if he has been in that classification for twenty-four (24)
months or more. His wage will be red-circled until such time as his step
rate in his new classification exceeds his red-circled wage rate. (Added
1/1/95)
27. (Deleted 1/1/95)
28 Sr. Control Technician will be red-circled when going to a Substation
Technician. (Effective 4/11/94; Added 1/1/98)
29. Sr. Control Technician will be a "D" bidder to Control Working Foreman and
Substation Technician to Control Working Foreman will be a "B" bidder.
(Effective 4/11/94; Added 1/1/98)
30. Clerical Bidding Notes (Moved from Attachment III - Letters of
----------------------
Understanding #1, effective 1/1/98)
A. Generally speaking, Clerical employees will be hired at the minimum
of the range. In exceptional cases, experience elsewhere will be
counted in determining the starting rate. In no case will
experience elsewhere be given more weight in determining the
starting rate than if it had been with the Company.
B. When a Clerical employee is in a wage progression and is promoted
from one (1) job classification to another, his rate of pay shall be
the starting rate for new classification or his present rate,
whichever is higher. In the case of an employee who bids laterally
to a job classification with the same wage progression, or an
employee who bids downward to a job classification with a lower wage
progression, his rate of pay shall be the starting rate for such
classification, except that allowance shall be made by the Company
for previous experience in the new classification. When a Clerical
employee bids from one (1) Department, District or Sub-District to
another in the same classification, his rate of pay shall remain the
same.
C. (Deleted 5/1/91)
D. Employees in the Clerical Occupational Group job classifications
listed below, who were hired prior to the 1986 contract ratification
date, will be red-circled in their current wage progression (at the
wage rate in effect May 1, 1986) and will continue to receive
general wage increases based on that wage progression.
Clerical Representative
Clerical Specialist
Meter Reader-Collector
Customer Services Representative
When an employee whose wage progression is red-circled becomes
eligible to receive their final step increase under the red-circled
wage progression, they will
228
receive the top wage step of the red-
circled wage progression or top wage step of the current book rate,
whichever is higher. (Added 5/1/86)
E. (Deleted 1/1/95)
"E" BIDDERS (Moved from Flow Chart, effective 1/1/98)
- -----------
Clerk
Clerk, Field
Coordinator, Fleet Repair License
Driver, Truck
Driver, Truck, Heavy
Garageman
Helper
Laborer
Messenger, Outside
Repairman, Tool
Specialist, Water Supply
Utilityworker, Universal
Worker, Construction
229
ATTACHMENT V
------------
EXHIBIT "D"
-----------
(as Amended January 1, 1998)
(1) SHIFT EMPLOYEES (Moved to Title 6.13, effective 1/1/98)
---------------
(2) SERVICE EMPLOYEES (Moved to Title 6.14, effective 1/1/98)
-----------------
(3) OPERATIONS CENTER EMPLOYEES (Deleted 1/1/98)
---------------------------
(4) PART-TIME EMPLOYEES
-------------------
(5) OFFICE SERVICE EMPLOYEES (Moved to Title 6.15, effective 1/1/98)
------------------------
230
EXHIBIT "A"
1998 BARGAINING UNIT
MEDICAL/DENTAL/VISION OPTIONS COMPARISON
MEDICAL SERVICES
BENEFITS UNION BEST BASIC HEALTHFIRST HHP
ANNUAL DEDUCTIBLE $150/person $200/person No deductible No deductible
$300/family max. (must PPO - $800/family max. No claim forms No claim forms
be met by 2 or more Non-PPO - No limit Copays only Copays only
family members)
OUT OF POCKET MAXIMUM Deductible plus Deductible plus $2,986.88; all $1,000/person
(Copays to do not apply to PPO - $300/person PPO - $1,000/person copays apply $2,000/family
out of pocket maximums for $600/family $4,000/family
Union and Basic plans) Non-PPO - $2,250/person Non-PPO - No limit
$4,500/family
LAB AND X-RAY EXPENSES PPO - 90% after PPO - 80% after 100% fully covered; 100% fully covered;
deductible deductible no copays no copays
Non-PPO - 70% after ded. Non-PPO - 50% after
ded.
HOSPICE CARE 100%; no deductible 100%; no deductible 100%; no copay 100%; no copay
SKILLED NURSING FACILITY PPO - 90% after PPO - 80% after 100%; no copay 100%; no copay
deductible deductible
Non-PPO - 70% after ded. Non-PPO - 50% after
ded.
HOME HEALTH CARE PPO - 90% after PPO - 80% after $5 copay; 40 visits 100%; no copay
deductible deductible per member per
Non-PPO - 70% after ded. Non-PPO - 50% after calendar year.
ded.
MEDICAL EQUIPMENT OR OTHER PPO - 90% after PPO - 80% after Durable medical Durable medical
SUPPLIES deductible deductible equipment and equipment and
Non-PPO - 70% after ded. Non-PPO - 50% after prosthetic devices prosthetic devices
ded. 100%; no copay 100%; no copay
HEARING AIDS No deductible - $1,500 No deductible - $1,000 Not covered Not covered
every 5 yrs. every 5 yrs.
BIRTH CONTROL DEVICES AND PPO - 90% after PPO - 80% after Not covered. Oral contraceptives and
deductible deductible diaphragm covered under
prescription drug plan
rider;
STERILIZATION PROCEDURES Non-PPO - 70% after ded. Non-PPO - 50% after
ded.
Surgery - 100%; no copay
Office visit - $5 copay
HOSPITALIZATION $200 copay and 100%; no copay 100%, no copay
w/preauthorization PPO - 90% after PPO - 80% after
deductible deductible
Non-PPO - 70% after ded. Non-PPO - 50% after
ded.
w/o preauthorization $200 copay and PPO - 80% after
PPO - 70% after deductible
deductible Non-PPO - 50% after
Non-PPO 50% after ded ded.
SURGERY Inpatient - 100%; no Inpatient - $100%; no
w/second surgical opinion PPO - 90% after PPO - 80% after copay copay
(if required) deductible deductible Same day surgery - 100%;
Non-PPO - 70% after ded. Non-PPO - 50% after no copay
ded.
w/o second opinion PPO - 70% after PPO - 60% after
deductible deductible
Non-PPO - 50% after ded Non-PPO - 40% after
ded.
67
MEDICAL SERVICES
BENEFITS UNION BEST BASIC HEALTHFIRST HHP
EMERGENCY ROOM VISITS $50 copay and $50 copay and $75 copay, waived if Emergency services -
PPO - 90% after PPO - 80% after admitted directly to $25 copay; waived if
deductible deductible the hospital admitted
Non-PPO - 70% after Non-PPO - 50% after Urgent services - $100
ded. ded. copay
URGENT CARE SERVICES PPO - 90% after PPO - 80% after $25 copay - Urgent Care $10 copay - Urgent Care
deductible deductible Ctr. Ctr.
Non-PPO - 70% after Non-PPO - 50% after $75 copay - Hosp. $100 copay - Hosp.
ded. ded. Emergency Rm. Emergency Rm.
ACCIDENT PPO - 90% after PPO - 80% after $75 copay, waived if Emergency services -
deductible deductible admitted directly to $25 copay; waived if
Non-PPO - 70% after Non-PPO - 50% after the hospital admitted
ded. ded. $50 copay for ambulance Ambulance - 100%; no
services per occurrence copay
PHYSICIAN'S OFFICE VISIT $10 copay and $10 copay and $5 copay $5 copay
PPO - 90% after PPO - 80% after
deductible deductible
Non-PPO - 70% after Non-PPO - 50% after
ded. ded.
PHYSICIAN'S FEES OTHER THAN PPO - 90% after PPO - 80% after 100%; no copay 100%; no copay
OFFICE VISITS deductible deductible
Non-PPO - 70% after Non-PPO - 50% after
ded. ded.
ANNUAL PHYSICAL EXAM EMPLOYEE ONLY EMPLOYEE ONLY $5 copay (Employee and $5 copay (Employee and
100% of first $300 100% of first $300 dependents) dependents)
PPO - Excess annual PPO - Excess annual
physical cost paid physical cost paid at
at 90% with no 80% with no deductible
deductible Non-PPO - Excess
Non-PPO - Excess annual physical cost
annual physical cost paid at 50% with no
paid at 70% with no deductible
deductible
SPOUSE MAMMOGRAPHY, PAP Spouse mammography 80% with no deductible No copay for radiology No copay for radiology
SMEAR, OR PROSTRATE only; service; service
SCREENING (one per year) PPO - 90% after $5 office visit copay $5 office visit copay
deductible
Non-PPO - 70% after
ded.
WELL BABY CARE No coverage 4 visits/yr. up to age $5 copay $5 copay
3 and required
immunizations paid
same as physician's
office visit
CHIROPRACTIC PPO - 90% after PPO - 80% after $5 copay with referral $5 copay with referral
deductible deductible from PCP by PCP
Non-PPO - 70% after Non-PPO - 50% after
ded. ded.
Maximum $1,500 per Maximum $1,500 per yr.
yr. (does not apply (does not apply to out
to out of pocket of pocket max.)
max.)
MENTAL HEALTH
Inpatient treatment or daily PPO - 90% after PPO - 80% after Inpatient - 100%; no Inpatient - 100%; no
program in lieu of deductible deductible copay up to 21 copay up to 21
inpatient treatment Non-PPO - 70% after Non-PPO - 50% after days/calendar year days/calendar year
ded. ded. Max. 42 days/lifetime
(separate $39,000 (separate $39,000
lifetime max.) lifetime max.)
Outpatient counseling 50% after ded. up to 50% after ded. up to Outpatient counseling Outpatient - $20 office
$50/day; $50/day; - $25 copay; up to 21 visit copay; up to 25
maximum $1,500 per maximum $1,500 per year visits/calendar year visits/calendar year
year
68
MEDICAL SERVICES
BENEFITS UNION BEST BASIC HEALTHFIRST HHP
SPEECH THERAPY PPO - 90% after PPO - 80% after Inpatient - 100%; no Inpatient - 100%; no
deductible deductible copay copay
Non-PPO - 70% after Non-PPO - 50% after Outpatient - $5 copay Outpatient - $5 copay
ded. ded.
(separate $1,000 (separate $1,000
lifetime max.) lifetime max.)
COORDINATION OF BENEFITS (if Not to exceed 100% of Not to exceed % plan Not to exceed 100% of Not to exceed 100% of
Company is secondary UCR charges would pay as primary contracted charges contracted charges
carrier) carrier
LIFETIME MAXIMUM $1,000,000 $1,000,000 Unlimited Unlimited
PRESCRIPTION DRUG CARD $8 copay or 50%; $16 copay or 50%; $8 copay for each $5 Generic (30-day
PROGRAM whichever is less for whichever is less for 30-day supply supply)
each 30-day supply or each 30-day supply (3 copays for 90-day $10 Brand (30-day
90-day supply for supply of maintenance supply)
maint. drugs drugs)
DENTAL SERVICES
DENTAL SERVICES UNION BEST BASIC HEALTHFIRST HHP
(ANY DENTIST) (ANY DENTIST)
ANNUAL DEDUCTIBLE Combined with medical Combined with medical $ 25 $25/person; $50 family
option option
EXAM 80% after deductible 80% after deductible 100% after deductible 100% of UCR;
Routine, x-rays, twice a yr. deductible waived
ROUTINE 80% after deductible 80% after deductible 100% after deductible 100%; deductible
Prophylaxis including Twice a year Twice a year waived
cleaning, scaling, polishing Once in five (5)
months
ORAL SURGERY 80% after deductible 80% after deductible 80% after deductible 80% after deductible
Extractions
BASIC 80% after deductible 80% after deductible 80% after deductible 80% after deductible
PERIODONTICS/ENDODONTICS
Gum repair, root canals,
pulp capping, fillings,
repair dentures
MAJOR 80% after deductible 80% after deductible 50% after deductible 50% after deductible
PERIODONTICS/PROSTHETICS
Crowns, dentures, bridges,
partials
ORTHODONTIA $50 deductible - 50% $50 deductible - 50% 50% - No deductible 50% - No deductible
after ded. after ded. $1,500 lifetime maximum $1,500 lifetime
$1,500 lifetime $1,000 lifetime maximum
maximum maximum
MAXIMUM ANNUAL BENEFIT $ 1,500 $ 1,200 $2,000 $2,000
69
VISION SERVICES
VISION UNION BEST/BASIC - UNION BEST/BASIC - HEALTHFIRST HHP - HHP -
SERVICES PANEL DOCTOR NON PANEL DOCTOR PANEL DOCTOR NON PANEL DOCTOR
EXAM - Once every 12 months $10 Copay Up to $40 $40 reimbursement $10 Copay Up to $40
reimbursement reimbursement
LENSES Full cost of Single vision Up to $80, once $20 deductible; Single vision
lenses ordered by lenses, up to $40 every two years full cost of lenses, up to $30
doctor to correct Bifocal lenses, lenses ordered Bifocal lenses,
your vision, up to $60 by your doctor up to $50
excluding any Trifocal lenses, to correct your Trifocal lenses,
cosmetic items; up to $80 vision, up to $65
once every 12 Lenticular excluding any Lenticular
months lenses, up to $125 cosmetic items; lenses, up to
once every 12 once every 24 $125; once every
months MONTHS 24 mos.
FRAMES - Once every 24 Full cost of Frames, up to $45 Up to $50 Full cost of Frames, up to $45
months, if needed allowable frames allowable
based on wholesale frames based on
pricing wholesale
pricing
CONTACT LENSES, Medically Up to $210 Materials, Up to $80, once Fully covered Materials,
Necessary - Member doctor reimbursement fittings and every two years and are in lieu fittings and
must secure prior approval evaluation only, either elective of those evaluation only
from VSP for medically up to $210 or medically benefits up to $250
necessary contact lenses necessary described for
lenses and
frames
CONTACT LENSES, ELECTIVE Up to $105 toward Materials, See above Up to $130 Materials,
cost in lieu of fittings and toward cost in fittings and
lense and frame evaluation only, lieu of lenses evaluation only,
benefit above up to $105 and frames up to $130
NOTE:
. Payments based on usual, customary and reasonable (UCR) charges.
. For more detailed medical, dental or vision information on the Union Best and
Basic Plans, please refer to the Medical/Dental/Vision Summary Plan
. Descriptions. St. Mary's Preferred HealthCare Network member service number
is 829-3099.
. For a complete explanation of applicable copayments and services covered by
the HMO plans, please refer to:
. St. Mary's HealthFirst packet - Summary of Benefits, Explanation of
Copayments, Evidence of Coverage. Member service number is 829-
6060.
. Hometown Health Plan packet- Summary of Benefits, Explanation of
Copayments, Evidence of Coverage. Member service number is 325-
3232.
. This summary is NOT meant to be a complete, legal description of the plans;
the official Plan Documents, and/or the official Evidence of Coverage (EOC)
prevail. 11/3/97
70
ATTACHMENT IX
OUT-OF-TOWN WORK ASSIGNMENT GUIDELINES
--------------------------------------
(Added January 1, 1995)
A. PURPOSE
Due to growth and operational changes which have occurred in our
service area over the last few years, it has become more common to
send employees away from their permanent work location to work in
other areas. In most cases these temporary assignments are
beneficial to both the Company and its employees. As the number of
out-of-town assignments increases, however, so does the potential
for disruption of family life and personal inconvenience of our
employees.
B. NOTIFICATION OF WORK ASSIGNMENT
As soon as a Supervisor learns that some of his employees will
be needed on an out-of-town project or job he should make his
employees aware of the following factors:
1. Number of employees required in each classification from his
work location for the job or project.
2. Scope of work of the job or project (build new line, general
maintenance, plant overhaul, etc.).
3. Starting date and expected duration.
4. Job location and reporting place.
5. Expected working hours (overtime, if expected).\
6. Any other information available and of interest to employees,
e.g., is there a special project agreement with the Union for
the job?
Keep in mind that employees appreciate being kept informed and
effective, timely communications improve morale. THE SUPERVISOR SHOULD
GIVE EMPLOYEES ASSIGNED OUT-OT-TOWN WORK AS MUCH ADVANCE NOTICE AS
POSSIBLE.
C. MANNING OUT-OF-TOWN WORK ASSIGNMENTS
1. VOLUNTARY:
a. If possible, the Supervisor should attempt to use
volunteers in each job classification, with the skill level
required.
b. If there are more volunteers than are required for the
job assignment then employees should be selected on the basis
of 1) qualifications, 2) accumulated overtime, 3) accumulated
number of nights out-of-town, 4) Occupational Group Seniority
from top to bottom, 5) operational needs.
c. Unless otherwise agreed to, volunteers will be expected
to work through the entire project from start to finish.
Supervisors should discuss this issue with employees at the
earliest possible date.
2. NON-VOLUNTARY:
a. If volunteers are not available to fill the manpower
requirements of a project, assignments will be made on a non-
voluntary basis. Employees will be selected on the basis of
1) qualifications, 2) accumulated overtime, 3) accumulated
number of nights out-of-town, 4) Occupational Group Seniority
from bottom to top, 5) operational needs.
b. On the next mandatory job assignment, the next employees
on the Out-Of-Town Assignment List should be selected. By
assigning employees in this order, all employees will share
equally in performance of out-of-town assignments.
82
c. If an employee volunteers for an out-of-town assignment,
he should be considered as doing so on his own accord, and
will still be required to take his turn at non-voluntary
assignments based on Section C (2)(a).
d. If an employee is unable to work his out-of-town
assignment when selected due to illness, personal hardship, or
any other reason of a temporary nature, he shall be replaced
on the list as the first to go when his problems are resolved.
e. Any new employee reporting to a work location will be
placed on the Headquarters' Out-Of-Town Assignment List and
will be assigned out-of-town work when his turn arrives based
on Section C (2)(a).
f. Employees should be kept informed where they stand on
the Out-Of-Town Assignment List, as this will give them
additional time to plan in advance for out-of-town
assignments.
D. PERSONAL HARDSHIP
1. When an employee feels that an out-of-town assignment will
create a personal hardship he should explain all the facts to
his Supervisor. The Supervisor should listen to the employee,
evaluate the situation and make a decision whether to send the
employee on a non-voluntary basis or not. These decisions
will have to be made on a case-by-case basis, relying on the
information supplied by the employee as well as other facts
which may be known to the Supervisor.
2. If a non-voluntary job assignment lasts more than eight (8)
weeks the Supervisor should consider rotating personnel to
complete that job assignment. (If for example, the Supervisor
knows that an out-of-town work assignment will last for ten
(10) weeks, he might consider sending two (2) different groups
for five (5) weeks each.)
E. OTHER CONSIDERATIONS
1. Continuity - Is it better to have the same group of employees
do the full job rather than changing in the middle of the
project?
2. Project Length - Eight (8) weeks is not necessarily the ideal
maximum assignment for some projects. Some might be shorter,
depending on the travel required, working conditions,
equalization of overtime, etc.
3. Job Location - If the assigned job locations are so far away
that employees cannot return home on weekends, consideration
should be given to making shorter assignments and rotating
employees.
4. Productivity - Employees away from home on an involuntary
basis for long periods of time may become less productive.
Harmony and efficiency in the operation should be considered
by Supervisors.
5. Skills Required - Certain employees with special skills may
be required at certain projects for the duration of the
project, or they may be required to remain at their home
location regardless, of the provisions of these guidelines.
This will depend on job requirements.
6. Reporting Place - When board and lodging are provided by the
--- Company, the reporting place will be the Company designated
lodging of the local headquarters.
83
ATTACHMENT XI
-------------
JOB SITE REPORTING
------------------
(Added 1/1/98)
Sierra Pacific Power Company and Local Union 1245 of the International
Brotherhood of Electrical Workers hereby mutually agree to the following:
A. DEFINITION - TEMPORARY ASSEMBLY SITES
-------------------------------------
Employees who are assigned to work away from their regular assigned
reporting place will be required to report to work at the established starting
time and the established temporary assembly site designated by the Company.
(Temporary assembly site is defined as a temporary work location, not regularly
established as a company reporting place or headquarters.) It is understood
that the temporary assembly site designated by the Company may change from time
to time due to changes in the Company's operational requirements. When
necessary, the Company shall provide water and sanitation facilities for the
employee's use at the temporary assembly site. Temporary assembly sites shall
be within twenty (20) road miles, one way, of the employee's regular reporting
headquarters and accessed by a regularly maintained, paved, all-weather road.
Access by other roads must be mutually agreed upon by the Company and the Union.
When a change of temporary assembly site occurs, the Union will be notified as
far in advance as practicable.
B. CONDITIONS FOR IMPLEMENTING
---------------------------
1. The Company shall not reduce the work force as a result of job site
reporting.
2. An employee's regular reporting headquarters shall not be changed for the
purpose of job site reporting
3. Each employee shall receive an expense allowance for each day the
employee physically reports to the temporary assembly site. The expense
allowance will be $17.50 per day when the job site is within 20 road
miles of the employee's regular reporting headquarters.
4. The guidelines contained in Section C (Staffing Temporary Assembly Sites)
of this agreement shall be followed to provide personnel for projects or
jobs using a temporary assembly site.
5. The Company shall provide a secure area for Company vehicles and
employee's personal vehicles.
6. All other provisions and terms of the agreement between Sierra Pacific
Power Company and Local Union No. 1245 shall apply as if employees were
reporting to their regular headquarters.
7. During the three (3) year trial period (January 1, 1998 to December 31,
2000) EITHER PARTY on a department or location basis may cancel this
proposal as related to that work area with thirty (30) days written
notice after Company and Union have met and attempted to resolve problems
associated with job site reporting.
STAFFING TEMPORARY ASSEMBLY SITES
- ---------------------------------
84
1. A sign-up sheet will be posted in the regular reporting headquarters no
less than five (5) work days prior to the establishment of a temporary
assembly site. The sign-up sheet shall include a description of the
project, location of the temporary assembly site, classifications
required, an estimate of the duration of the assignment, and any other
relevant information.
2. Job site reporting assignments shall be staffed on a voluntary basis
unless there is an insufficient number of volunteers then the assignment
will be staffed using reverse seniority. Volunteers shall be selected in
order from the Group Seniority List by required classification. A system
of totaling and equalizing remote reporting assignments shall be
established and reduced in writing in each department in a headquarters.
3. Unless otherwise agreed to, employees will be expected to work through
the entire project from start to finish. If a personal hardship arises,
consideration will be given to the employee and the next qualified
employee on the Group Seniority List will be given the opportunity to be
the replacement.
4. The assigned foreman, along with the supervisor and others involved in
the project, will participate in planning and scheduling for the project.
5. Transportation will be provided as necessary for personnel and their
tools to and from the temporary assembly site on the first and last days
of the project.
6. Safe storage for employee's tools will be provided.
7. Employee's paychecks, messages, company mail, notifications of CDL drug
tests, etc., will be made available in a timely manner.
85
ATTACHMENT XII
EMERGENCY RESPONSE PROGRAM
--------------------------
Consistent with the provisions and obligations of Section 2.1,
Title 2 of the Collective Bargaining Agreement between Sierra Pacific
Power Company and Local Union No. 1245 of the International Brotherhood
of Electrical Workers, the parties hereby agree to the following:
The Company and Union recognize there may arise situations in
various departments of the Company where availability of some key
classifications becomes imperative in the rendering of service to the
customer and for the safe, effective operation of facilities. To assure
availability of these key people, the Company and Union mutually agree to
the following conditions that will apply to both parties for Positive
Emergency Response.
A. Conditions Applicable to Company
1. The Company will provide an appropriate radio-equipped
vehicle for the employee's commute purposes.
2. The Company will provide a pager or hand-held
radio/telephone to improve the employee's mobility and
communication.
3. Normal work hours will prevail during employee's
regular work days.
4. Availability schedule will apply from the end of
employee's shift on Friday until the beginning of
employee's shift on Monday, during holidays and such
other times when adequate emergency coverage is not
available (Amended 1/1/98)
5. The Company shall provide an option for either (1)
availability premium to employee of:
$3.27/hour, effective 1/1/98
$3.36/hour, effective 1/1/99
$3.45/hour, effective 1/1/00
for every hour employee is available for duty exclusive
of employee's normal pay for regular scheduled hours
worked. (Amended 1/1/95) or (2) "day in lieu of" at the
following rates: All non-holiday hours will be factored
at the .127/hour accrual rate. Example--2-day weekend -
from 1530 Friday to 0700 Monday = 63.5 hours X .127 = 8
hours. All holiday hours will be factored at the
.251/hour accrual rate. Example--Christmas Day--from
1530 Christmas Eve day to 0700 the day after
Christmas=15.5 hours X .127 hours + 24 hours X .251 = 8
hours. Example below:
1 weekend @ 1 day in lieu
Monday-Friday work week @ 1 day in lieu
Holiday @ 1 day in lieu (Amended 1/1/98)
Note: The availability premium will be adjusted each
-----
January 1, beginning January 1, 1996. The adjustment
will be made by a percentage equal to the general wage
increase. (Added 1/1/95)
6. The Company shall compensate the employee at the
applicable overtime rate as provided in Title 10 of the
Agreement for any hours worked outside normally scheduled
hours during the availability period plus the
availability premium for all hours available.
7. The maximum limit of in lieu accrual hours on pager duty
is 160 hours, after which, only premium pay will be
available. (Added 1/1/98)
B. Conditions Applicable to Employee
1. Employee must live within the sub-district boundaries and
be available to receive communication to qualify for
emergency availability scheduled.
2. Employee must be in physical condition to perform
assigned duties when emergency situations arise.
86
3. The employee must respond to a page within ten (10) minutes
of the notification and report within a reasonable time
thereafter.
4. Substitutions of coverage may be arranged only with the
approval of the Supervisor in charge, and the substitute
employee must be qualified to perform the assigned duties.
5. The employee on duty will have first opportunity to fill
availability schedule. If a substitute employee is required,
accumulated overtime will prevail. (Amended 1/1/95)
C. (Deleted 1/1/95)
D. If, in the event there is no duty employee, a departmental procedure
to administer the Emergency Response Program must be established in
writing and agreed to by the Company and Union. (Added 1/1/98)
ATTACHMENT XIII
COMPANY STATEMENT RE: CONTINUATION OF
---------------------------------------
POST RETIREMENT MEDICAL COVERAGE
--------------------------------
(Added 1/1/98)
"It would not be fiscally responsible (nor meaningful) for SPPCo to "guarantee"
Post-Retirement medical coverage indefinitely into the future. Since current
retiree medical and insurance costs are paid from current earnings each year, a
change in the control of the Company or bankruptcy could very well defeat the
purpose of any such "guarantee". To protect this benefit for SPPCo's current
and future retirees, the Company in 1993 established an irrevocable trust for
post retirement medical and life insurance costs. Beginning in 1993 the Company
has contributed the maximum amount permitted by tax code each year to this
trust. This trust falls under ERISA laws and protections and cannot be used for
any purpose other than post retirement medical benefit costs.
As of January, 1997, the assets in the trust for Bargaining Unit employees
totaled $17,993,852. The present value Accumulated Benefit Obligation (APBO)
was projected at $29,915,693. Assuming continued Company contribution, no
change in Plan design, and other economic and asset growth assumptions are
realized, it is expected that the trust will be adequately funded by 2013 to
meet current Accumulated Post Retirement Medical Benefits Obligations.
Based upon prior rate orders and the recent stipulation with the Nevada Public
Service Commission, the Company is required to fund post retirement medical to
the maximum amount permitted by the tax code."
87
ATTACHMENT XIV
LETTER OF UNDERSTANDING
Sierra Pacific Power Company
November 21, 1997
Mr. Jack McNally
Business Manager
I.B.E.W. Local No. 1245
P. O. Box 4790
Walnut Creek, California 94596
Dear Mr. McNally:
This letter refers to the work-at-home schedule for Customer Services
Representative employees in the Business Office, Clerical Occupational Group,
Reno.
Under Section 6.15, the Company is proposing the following guidelines
to provide a more useful and productive work environment with little impact to
those working in the office. Perceived advantages that have been noted during
the time employees have been working at home are; disaster recovery
capabilities, outages, no commuting, scheduling flexibility, space in the
office, reduced sick leave, and in some cases, increased call productivity. The
following are stipulations that must be met in order for employees to work at
home.
1. If an employee falls under conditions set by the "Family & Medical Leave
Act", the employee will be able to work at home.
2. An office environment must be kept in the home during such time to promote an
environment free from noise and outside distractions.
3. The Customer Service Representative must be available to come into the office
for safety meetings, staff meetings, or any other additional training that
might be required.
4. The productivity of the Customer Service Representative must remain
consistent or better with what has been observed in the office. All
monitoring and call statistics will continue to ensure quality customer
service and expected performance standards.
5. The office may request at any time for the Customer Service Representative to
return to the office to work on a permanent basis with advance written notice
and give reasonable verbal notice for temporary return for equipment
malfunction, technical problems, or the like.
6. If the Customer Service Representative chooses to use his/her own personal
computer (not supplied by Sierra Pacific Power Company), Company will not be
responsible for any damage to or malfunction of the computer. Company will
maintain all equipment owned by Sierra Pacific Power Company.
7. The employee will be required to work at least one (1) day a week in the
office.
8. The employee will be required to work at least one (1) day a week in the
office. The employee will provide a "date of return" to the supervisor based
on the length of absence.
9. The employee will sign a document stating agreement of the above with a
listed date of return.
88
If you are in agreement, please sign one copy of this letter and
return.
Sincerely,
Bonnie MacMullen
HR Services Manager
AGREED TO BY:
- --------------------------- ---------------------------
For I.B.E.W. Local No. 1245 Date
cc: C. Elmore J. Stralla
G. Djukanovich P. Zimmerman
D. Rhoden File
89
Exhibit (10)(C) to the 1997 Sierra Pacific Power Company Form 10-K
April 29,1997
Mr. Stan Waters
Manager, Wholesale Power Sales
825 N.E. Multnomah, Suite 625
Portland, OR 97232
RE: TERMINATION of POWER PURCHASE FROM PACIFICORP UNDER THE INTERCONNECTION
AGREEMENT OF MAY 19, 197 1.
Dear Mr. Waters:
Pursuant to section 2.2 of the Interconnection Agreement between
Sierra Pacific Power Company and PacifiCorp entered into on May 19, 1971 and
amended on September 12, 1977, September 3, 1985, February 28, 1991, and May 1,
1992, Sierra Pacific Power Company hereby offers notice to terminate the
purchase effective April 30, 2000. As agreed in a letter from PacifiCorp dated
February 25, 1997, termination given on or before April 30, 1997 will constitute
notice of termination as if it had been provided to PacifiCorp by April 30, 1996
pursuant to Subsection 2.2.
Sierra Pacific Power Company would welcome any additional proposals
from PacifiCorp with regard to this contract prior to the termination date and
hopes to continue discussions held to date with regard to possible mutual
savings possibilities.
If you have any questions with regard to this termination request,
please contact Jim Bengochea, Director, Power Management at (702) 689-4874
Sincerely,
Mr. Randy Harris
Vice President, Energy Marketing Business
cc: PacifiCorp
Vice-President, Power Systems & Development
700 N.E. Multnomah, Suite 1600
Portland, OR 97232-4116
90
EXHIBIT 12.A
SIERRA PACIFIC POWER COMPANY
CALCULATION OF PRE-TAX INTEREST COVERAGES
1997 1996 1995
-------- -------- --------
Total Income Before Interest Charges $126,705 $113,106 $ 99,678
Add: Income Taxes:
Included in operating expense 40,387 36,241 37,370
Included in other income - net (1,511) (1,183) (231)
Allowance for Borrowed Funds
Used During Construction 4,785 3,924 3,412
-------- -------- --------
TOTAL NUMERATOR $170,366 $152,088 $140,229
======== ======== ========
Interest Charges:
Long-Term Debt $ 39,609 $ 37,051 $ 35,326
Other 4,583 4,579 1,781
-------- -------- --------
TOTAL DENOMINATOR $ 44,192 $ 41,630 $ 37,107
======== ======== ========
PRE-TAX INTEREST COVERAGE 3.86 3.65 3.78
======== ======== ========
EXHIBIT 23.1
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-17041 of Sierra Pacific Power Company on Form S-3 of our report dated
February 16, 1996, on our audit of the consolidated statements of income, cash
flows and shareholder's equity for the year ended December 31, 1995 appearing in
and incorporated by reference in the Annual Report on Form 10-K of Sierra
Pacific Power Company for the year ended December 31, 1997.
Coopers & Lybrand L.L.P.
San Francisco, California
March 16, 1998
EXHIBIT 23.2
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-17041 of Sierra Pacific Power Company on Form S-3 of our report dated
January 30, 1998, appearing in and incorporated by reference in the Annual
Report on Form 10-K of Sierra Pacific Power Company for the year ended December
31, 1997.
Deloitte & Touche
Reno, Nevada
March 16, 1998