NV Energy, Inc. (NV Energy), a Sierra Pacific Resources company, has reported operating revenues of $3.52 billion for the year-end 2008, compared with the operating revenues of $3.6 billion in the previous year-end. It has also reported a net income of $208.8 million for the year-end 2008, compared with the net income of $197.3 million in the previous year-end.
The increase in earnings in 2008 was primarily the result of higher operating income from general rate increases in 2007 and 2008, and customer growth. These increases were partially offset by a reduction in customer energy usage caused by milder weather and higher interest charges.
For the fourth quarter of 2008, the company reported a loss of $2.1 million, or 1 cent per share, compared with earnings of $3.7 million, or 2 cents per share, in the 2007 fourth quarter. This decrease in quarterly earnings was primarily due to higher depreciation and maintenance expenses attributable to power plant investments, higher interest charges, and lower AFUDC.
Michael Yackira, president and chief executive officer of NV Energy, said, “While we are never satisfied with a loss as experienced in the recent fourth quarter, the majority of the expense dollars responsible for that decline were associated with two significant new power plant facilities added at our company. These included the $400 million, 600-megawatt peaking plant built at our Clark Generating Station and the acquisition of the $510 million, 598-megawatt Walter Higgins Generating Station. Although these assets are now serving our customers, they are not presently in rates but are part of the General Rate Case currently before the Public Utilities Commission of Nevada. We expect that the cost of service and rate base associated with these investments will be included in our new rates that will be effective later this year.
“Despite the down economy and slowing growth in both our northern and southern service territories, we were satisfied with both our financial and operating performance for the entire year,” Yackira added.
NV Energy’s two utilities contributed gross margin of $1.35 billion for 2008, $100 million higher than in 2007.
The average number of residential, commercial and industrial electric customers in southern Nevada increased by 0.8%, 2.6% and 3.8%, respectively, in 2008, compared with the average customer counts for the same period in 2007. In northern Nevada, the average number of residential, commercial and industrial electric customers increased by 0.5%, 2.0% and 4.5%, respectively, in 2008, compared with 2007.