Nevada Power Company

  • Overview

Those famous bright city lights of gamblers' paradise (Las Vegas) are lit by Nevada Power, a subsidiary of NV Energy that also does business as NV Energy. The utility transmits and distributes electricity to 840,000 customers in southern Nevada, including in "Sin City," North Las Vegas, Henderson, Searchlight, Laughlin, and adjoining areas, including Nellis Air Force Base and the US Department of Energy's Nevada Test Site in Nye County. Nevada Power's 44 gas and coal generating units produces more than 4,340 MW of fossil-fueled capacity; it also buys power from the Hoover Dam and elsewhere and markets excess wholesale power. It is also pursuing the development of renewable energy power sources.

Geographic Reach

Nevada Power serves power customers primarily in Las Vegas, North Las Vegas, Henderson, and adjoining areas in Nevada.

Financial Performance

Revenues decreased by 9% in 2011 due to lower energy rates from Nevada Power's various Base Tariff Energy Rate quarterly updates, annual Deferred Energy cases, and the expiration of the Western Energy Crisis Amortization rate on May 1, 2010. Residential retail revenues decreased due to a drop in customer usage resulting from milder temperatures during the summer months of 2011, and conservation programs. Other operating revenues decreased due to lower revenues from Public Street and Highway Lighting resulting from lower energy rates.

Nevada Power's net income decreased by 29% in 2011 as depreciation and amortization increased primarily due to general increases in plant-in-service, including the Harry Allen Generating Station project. Interest expense increased primarily due to a decrease in construction funds allowance primarily due to the completion of various construction projects. Further contributing to the increase was interest expense from the issuance of a total of $500 million of General and Refunding Mortgage Notes in 2010 and 2011.

Other expenses increased primarily because of higher adjustments in 2011, increased donations, and higher losses on investments. The increase in interest expense on regulatory items was primarily due to higher over-collected deferred energy balances during 2011.  

Strategy

NV Energy is pursuing a strategy to reduce its carbon emissions to meet state and federal regulations. To boost its clean energy power sources, Nevada Power has a joint ownership agreement with Ormat Nevada Inc. (a unit of Ormat Technologies) for the co-development of the Carson Lake geothermal energy project near Fallon, Nevada. By 2011 NV Energy had enabled more than 800 customer-installed projects (solar wind and hydro) generating a total of more than 4 MW of power.

Further expanding its overall capacity, in 2011 the company completed a 484 MW expansion of a natural gas generating station at its existing Harry Allen Generating Station, near Las Vegas. That year it also made plans to connect a $509 million 500 kV transmission line from the proposed Robinson Summit Substation near Ely to the Harry Allen Generating Station. This project, when completed, will provide access to isolated renewable energy resources in northern and eastern Nevada.

Ownership

Nevada Power is a subsidiary of NV Energy .

Company Background

In 2010, to increase brand awareness in its core Nevada market, the company changed its dba name to NV Energy, as did sister company Sierra Pacific Power.

Nevada Power has been serving Las Vegas since 1906. In 1937 the company became the first utility to distribute electricity from the newly completed Hoover Dam.

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Nevada Power Company


6226 W Sahara Ave
Las Vegas, NV 89146-3060
Phone: 1 (702) 402-5000
Fax: 1 (702) 3675615
www.nevadapower.com

STATS


  • Employer Type: Subsidiary
  • President and CEO, NV Energy: Michael Yackira
  • EVP and COO, NV Energy: Dilek Samil
  • EVP and CFO, NV Energy: Jonathan Halkyard

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