. . . EXHIBIT 12 (B) NEVADA POWER COMPANY RATIOS OF EARNINGS TO FIXED CHARGES <Table> <Caption> Year Ended December 31, ------------------------------------------------------------------ Amounts in 000's 2002 2001 2000 1999 1998 EARNINGS AS DEFINED: Income (Loss) From Continuing Operations After Interest Charges $(219,898) $ 78,577 $ 7,244 $ 53,959 $ 94,686 Income Taxes (131,784) 32,783 (9,386) 21,213 45,471 --------- --------- --------- --------- --------- Income (Loss) From Continuing Operations before Income Taxes (351,682) 111,360 (2,142) 75,172 140,157 Fixed Charges 140,911 114,015 103,933 97,734 81,238 Capitalized Interest (3,412) (2,141) (7,855) (8,356) (6,080) Preference Security Dividend Requirements of Consolidated Subsidiaries (15,172) (15,172) (15,172) (15,172) (11,013) --------- --------- --------- --------- --------- Total $(229,355) $ 208,062 $ 78,764 $ 149,378 $ 204,302 ========= ========= ========= ========= ========= FIXED CHARGES AS DEFINED: Interest Expensed and Capitalized (1) $ 125,739 $ 98,843 $ 88,761 $ 82,562 $ 70,225 Preference Security Dividend Requirements of Consolidated Subsidiaries 15,172 15,172 15,172 15,172 11,013 --------- --------- --------- --------- --------- Total $ 140,911 $ 114,015 $ 103,933 $ 97,734 $ 81,238 ========= ========= ========= ========= ========= RATIO OF EARNINGS TO FIXED CHARGES -- 1.82 -- 1.53 2.51 DEFICIENCY $ 370,266 $ -- $ 25,169 $ -- $ -- </Table> (1) Includes amortization of premiums, discounts, and capitalized debt expense and interest component of rent expense. For the purpose of calculating the ratios of earnings to fixed charges, "Fixed charges" represent the aggregate of interest charges on short-term and long-term debt and distributions on preferred securities of consolidated subsidiaries, allowance for borrowed funds used during construction (AFUDC) and capitalized interest, and the portion of rental expense deemed to be attributable to interest. "Earnings" represent the aggregate of income (or loss) from operations before obligated mandatorily redeemable preferred securities, income taxes, and fixed charges, less AFUDC and capitalized interest.