PUCN Approves Rate Change for NV Energy Southern Nevada Customers

The Public Utilities Commission of Nevada last week approved an annual revenue increase of $158.6 million for NV Energy’s southern utility. End Quote

(1888PressRelease) December 31, 2011 - This increase is offset by decreases in other rate components effective January 1, 2012. The net result is a 2.7 percent increase overall and an approximate 3.5 percent increase for NV Energy’s southern Nevada single-family residential customers. Single-family residential customers using an average of 1,145 kWh a month will see a $4.84 increase/month.

In October 2011, a rate decrease related to fuel and purchased power went into effect. The new average monthly bill of $144.55 compares to $145.94 in September 2011.

NV Energy is required to file its General Rate Case at least once every three years in order to recover costs associated with operation and maintenance, transmission and distribution facilities, depreciation and return to the company’s shareholders. Specifically, this filing included costs associated with investments in company-owned generation including the Harry Allen Generating Station combined-cycle addition, Clark Generating Station peaking units and energy efficiency programs.

In its order, the PUCN established an overall rate of return for the company of 8.09 percent and a return on equity of 10 percent.

Headquartered in Las Vegas, Nevada, NV Energy, Inc. is a holding company with principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, doing business as NV Energy. Serving a combined 45,592-square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.

These statements contain forward-looking statements regarding the future performance of NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to subsequent rulings in the deferred energy rate cases, the base tariff energy rate cases, general rate cases of NV Energy and other regulatory filings, and volatility and fluctuations in the markets for purchased power and natural gas. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, are contained in the Annual Report of Nevada Power Company d/b/a NV Energy on Form 10-K for the year ended December 31, 2010 and in its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011, and September 30, 2011, filed with the SEC. NV Energy undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For further information: Jennifer Schuricht 702.402.5241

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