The decrease in earnings in the first quarter of 2009 compared with the year-ago quarter was the result of higher other operating and maintenance expenses, depreciation, and financing expenses mainly due to power plant investments, and reduced revenues because of milder weather. Other income was less in 2009 due to recognition of certain non-recurring items in previous year.
NV Energy’s two utilities contributed gross margin of $283.9 million in the first quarter of 2009, up $7.7 million, compared with contributed gross margin in the year-ago quarter. Although NV Energy’s consolidated revenues were lower in the first quarter of 2009, the increase in consolidated gross margin was mainly due to the effect of the northern utility’s 2007 General Rate Case effective July 1, 2008.
The average number of residential, commercial and industrial electric customers in southern Nevada increased by 0.6%, 0.4% and 3.3%, respectively, in the first quarter 2009, compared to the average customer counts for the year-ago quarter. In northern Nevada, the average number of residential customers remained unchanged while commercial and industrial electric customers increased by 1.7% and 4.6%, respectively, in the first quarter 2009, compared with the year-ago quarter.
Much of the first quarter-to-quarter decline is attributable to expenses associated with new generating facilities in southern Nevada that have yet to generate a return to shareholders which we expect will be addressed in our current general rate case, said Michael Yackira, president and chief executive officer of NV Energy. In addition, growth in both our northern and southern Nevada service territories continued to slow, demonstrating that our company is not immune to the economic challenges that have gripped our state and nation.
