Exhibit 99.2
Reference in this offering memorandum to "we," "us," "our" and "NPC" refer to
Nevada Power Company, unless the context indicates otherwise.
......................
SELECTED SUMMARY FINANCIAL AND OPERATING DATA
The following table summarizes our historical financial and operating
data. You should read this table in conjunction with "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and our financial
statements and related notes contained herein. The summary financial data as of
December 31, 2002 and 2001 and for each of the years in the three-year period
ended December 31, 2002 have been derived from our audited financial statements
contained or incorporated by referenced in this offering memorandum. The summary
financial data as of June 30, 2003 and for the six-month periods ended June 30,
2003 and 2002 have been derived from our unaudited interim financial statements
included in the Quarterly Report on Form 10-Q for the quarter ended June 30,
2003. The summary financial data for the twelve month period ended June 30, 2003
have been derived from the summary data for the year ended December 31, 2002 and
the summary financial data for the six months ended June 30, 2003 and 2002.
Interim results for the six months ended June 30, 2003 are not necessarily
indicative of results that can be expected in future periods. The information
under "Operating Data" below is not directly derived from our financial
statements, but have been presented to provide additional data for your
analysis.
<Table>
<Caption>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, TWELVE MONTHS
--------------------------------------- ----------------------- ENDED JUNE 30,
2000 2001 2002 2002 2003 2003
----------- ----------- ----------- ---------- ---------- --------------
(DOLLARS IN THOUSANDS, EXCEPT OPERATING DATA)
INCOME STATEMENT DATA:
Operating Revenues:
Electric.................. $ 1,326,192 $ 3,025,103 $ 1,901,034 $ 833,331 $ 757,164 $1,824,867
Operating Income (Loss)....... 74,182 144,364 (104,003) (230,597) 27,897 154,491
----------- ----------- ----------- ---------- ---------- ----------
Net Income (Loss)............. $ (7,928) $ 63,405 $ (235,070) $ (295,329) $ (37,438) $ 22,821
----------- ----------- ----------- ---------- ---------- ----------
OTHER FINANCIAL DATA:
Capital Expenditures.......... 196,636 196,896 250,441 116,106 106,986 241,321
Interest Expense.............. 70,390 92,677 116,869 51,875 69,447 134,441
Net Cash Flows from Operating
Activities.................. 113,711 (757,402) 253,757 101,437 28,190 180,510
Net Cash from Investing
Activities.................. (196,636) (197,011) (252,680) (117,048) (120,720) (256,352)
Net Cash from Financing
Activities.................. 126,540 919,060 85,427 66,983 18,639 37,083
BALANCE SHEET DATA (END OF
PERIOD):
Cash and Cash Equivalents..... $ 43,858 $ 8,505 $ 95,009 $ 59,877 $ 21,118 $ 21,118
Utility Plant(1).............. 2,462,962 2,562,351 2,697,995 2,630,280 2,760,664 2,760,664
Short-Term Borrowings......... 100,000 130,500 -- 200,000 20,000 20,000
Long-Term Obligations
(Including Current
Maturities)................. 1,180,694 1,627,347 1,843,274 1,624,824 1,841,913 1,841,913
Total Debt.................... 1,280,694 1,757,847 1,843,274 1,824,824 1,861,913 1,861,913
Preferred Trust Securities.... 188,872 188,872 188,872 188,872 188,872 188,872
Common Shareholders' Equity... 887,737 1,393,583 1,149,131 1,098,149 1,111,823 1,111,823
Total Capitalization(2)....... 2,357,303 3,340,302 3,181,277 3,111,845 3,162,608 3,162,608
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, TWELVE MONTHS
--------------------------------------- ----------------------- ENDED JUNE 30,
2000 2001 2002 2002 2003 2003
----------- ----------- ----------- ---------- ---------- --------------
(DOLLARS IN THOUSANDS, EXCEPT OPERATING DATA)
OPERATING DATA:
Number of Retail Customers:
Residential................. 526,899 552,276 573,956 562,645 593,522 593,522
Commercial.................. 69,536 72,606 75,091 73,694 77,847 77,847
Industrial.................. 1,144 1,219 1,242 1,220 1,285 1,285
Other....................... 64 68 67 67 71 71
----------- ----------- ----------- ---------- ---------- ----------
Total Retail Customers.... 597,643 626,169 650,356 637,626 672,725 672,725
----------- ----------- ----------- ---------- ---------- ----------
Annual Load Factor............ 49.3% 49.0% 49.0% -- -- --
Peak Load (MW)(3)............. 4,325 4,412 4,617 4,082 4,301 4,617
Total Retail Sales (MWh)...... 16,363,000 16,799,000 17,197,000 7,885,000 7,888,000 17,200,000
Average Retail Revenue per
MWh......................... $ 63.99 $ 83.06 $ 89.63 $ 86.51 $ 85.03 $ 88.92
Purchased Power (MWh)......... 9,659,118 19,268,305 12,908,000 5,782,000 5,529,000 12,655,000
Average Cost per MWh of
Purchased Power(4).......... $ 69.51 $ 157.06 $ 78.46 $ 74.89 $ 57.70 $ 71.02
Company Generated Power
(MWh)....................... 10,744,466 9,899,195 10,147,000 4,656,000 3,919,000 9,410,000
Average Fuel Cost per MWh of
Generated Power............. $ 27.25 $ 44.64 $ 30.48 $ 33.76 $ 30.57 $ 28.89
</Table>
- ------------
(1) Amounts include plant in service and construction work in progress, less
accumulated provision for depreciation.
(2) Amounts include total debt, preferred trust securities and common
shareholder's equity.
(3) Nevada Power's peak load through June 30, 2003 occurred on July 12, 2002.
Nevada Power has subsequently reported a new peak load on July 22, 2003 of
4,808 MWs.
(4) Average costs per MWh for the years ended December 31, 2002 and the six
months ended June 30, 2002 exclude contract termination costs of
approximately $229 million.
SELECTED FINANCIAL INFORMATION
The following table summarizes our selected historical financial data,
which you should read in conjunction with "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and our financial statements
and related notes contained herein, which should be read in their entirety. Our
obligations under the notes will not be guaranteed by Sierra Pacific Resources,
Sierra Pacific Power Company or any other entity. The selected financial data
have been derived from our financial statements. The unaudited interim period
selected financial data, in our opinion, reflect all adjustments necessary to
present fairly the data for such periods. Interim results for the six months
ended June 30, 2003 are not necessarily indicative of results that can be
expected in future periods.
<Table>
<Caption>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
-------------------------------------------------------------- -----------------------
1998 1999 2000 2001 2002 2002 2003
---------- ---------- ---------- ---------- ---------- ---------- ----------
(DOLLARS IN THOUSANDS)
INCOME STATEMENT DATA:
Operating Revenues:
Electric............... $ 873,682 $ 977,262 $1,326,192 $3,025,103 $1,901,034 $ 833,331 $ 757,164
Operating Expenses:
Operation:
Purchased Power...... 283,838 293,600 671,396 3,026,336 1,241,783 661,992 319,029
Fuel for Power
Generation......... 149,804 154,546 292,787 441,900 309,293 157,196 119,804
Deferred Energy Costs
Disallowed......... -- -- -- -- 434,123 434,123 45,964
Deferral of Energy
Costs -- net....... (29,680) 97,238 16,719 (937,322) (179,182) (194,835) 84,227
Other................ 134,652 141,041 139,723 169,442 167,768 77,270 92,215
Maintenance............ 49,082 50,805 34,057 45,136 41,200 23,526 29,187
Depreciation and
Amortization......... 73,562 80,644 85,989 93,101 98,198 47,949 52,621
Taxes:
Income Taxes......... 42,949 19,943 (12,162) 17,775 (133,411) (156,480) (26,822)
Other than Income.... 22,198 22,462 23,501 24,371 25,265 13,187 13,042
---------- ---------- ---------- ---------- ---------- ---------- ----------
726,405 860,279 1,252,010 2,880,739 2,005,037 1,063,928 729,267
---------- ---------- ---------- ---------- ---------- ---------- ----------
Operating Income
(Loss)................. 147,277 116,983 74,182 144,364 (104,003) (230,597) 27,897
Other Income (Expense):
Allowance for Other
Funds Used During
Construction......... 8,944 3,713 2,456 (382) (153) 501 1,641
Other Income
(Expense) -- net..... (4,602) (1,824) 996 27,272 1,127 (5,772) 10,057
---------- ---------- ---------- ---------- ---------- ---------- ----------
4,342 1,889 3,452 26,890 974 (5,271) 11,698
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Income Before
Interest Charges....... 151,619 118,872 77,634 171,254 (103,029) (235,868) 39,595
Interest Charges:
Long-Term Debt......... 56,995 64,454 64,513 81,599 98,886 46,954 59,029
Other.................. 6,018 8,815 13,732 13,219 21,395 6,882 11,994
Allowance for Borrowed
Funds Used During
Construction and
Capitalized
Interest............. (6,080) (8,356) (7,855) (2,141) (3,412) (1,961) (1,576)
---------- ---------- ---------- ---------- ---------- ---------- ----------
56,933 64,913 70,390 92,677 116,869 51,875 69,447
---------- ---------- ---------- ---------- ---------- ---------- ----------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
-------------------------------------------------------------- -----------------------
1998 1999 2000 2001 2002 2002 2003
---------- ---------- ---------- ---------- ---------- ---------- ----------
(DOLLARS IN THOUSANDS)
Income (Loss) Before NPC
Obligated Mandatorily
Redeemable Preferred
Trust Securities....... 94,686 53,959 7,244 78,577 (219,898) (287,743) (29,852)
Obligated Mandatorily
Redeemable
Preferred Trust
Securities......... (11,013) (15,172) (15,172) (15,172) (15,172) (7,586) (7,586)
Income (Loss) Before
Preferred Stock
Dividends.............. 83,673 38,787 (7,928) 63,405 (235,070) (295,329) (37,438)
Preferred Stock
Dividend
Requirements......... (174) (95) -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Income (Loss)........ $ 83,499 $ 38,692 $ (7,928) $ 63,405 $ (235,070) $ (295,329) $ (37,438)
========== ========== ========== ========== ========== ========== ==========
RATIO OF EARNINGS TO
FIXED CHARGES(1)(2).... 2.51x 1.53x -- 1.82x -- -- --
BALANCE SHEET DATA (END OF PERIOD):
Cash and Cash
Equivalents............ $ 1,770 $ 243 $ 43,858 $ 8,505 $ 95,009 $ 59,877 $ 21,118
Utility Plant(3)......... 2,199,886 2,352,641 2,462,962 2,562,351 2,697,995 2,630,280 2,760,664
Short-Term Borrowings.... 105,000 182,000 100,000 130,500 0 200,000 20,000
Long-Term Obligations
(Including Current
Maturities)............ 950,607 1,020,846 1,180,694 1,627,347 1,843,274 1,624,824 1,841,913
Total Debt............... 1,055,607 1,202,846 1,280,694 1,757,847 1,843,274 1,824,824 1,861,913
Preferred Stock.......... 3,265 -- -- -- -- -- --
Preferred Trust
Securities............. 188,872 188,872 188,872 188,872 188,872 188,872 188,872
Common Shareholders'
Equity................. 864,036 822,973 887,737 1,393,583 1,149,131 1,098,149 1,111,823
Total
Capitalization(4)...... 2,111,780 2,214,691 2,357,303 3,340,302 3,181,277 3,111,845 3,162,608
</Table>
- ------------
(1) For the purpose of calculating the ratio of earnings to fixed charges,
"Fixed Charges" represent the aggregate of interest charges on short-term
and long-term debt distributions on preferred securities, allowance for
funds used during construction, capitalized interest and the portion of
interest expense deemed attributable to interest. "Earnings" represent the
income (or loss) from continuing operations before income taxes, plus fixed
charges.
(2) For the six months ended June 30, 2002 and 2003, earnings were insufficient
to cover fixed charges by $456,313 and $60,643, respectively. For the year
ended December 31, 2000 and December 31, 2002, earnings were insufficient to
cover fixed charges by $25,169 and $370,266, respectively.
(3) Amounts include plant in service and construction work in progress, less
accumulated provision for depreciation.
(4) Amounts include total debt, preferred trust securities, accumulated other
comprehensive income and common shareholders' equity.