Nevada Power Co.

Overview Key strengths Key risks Merger with Sierra Pacific Power expected to bolster business profile. Midsize customer base with limited geographic diversity. Regulated, vertically integrated electric utility that provides an essential service to Las Vegas and the surrounding area. Heightened politicization of utility policies in Nevada. Operations under a generally constructive regulatory environment. Modest economic diversity in its service territory. Stable cash flows from rate-regulated operations. Berkshire Hathaway Energy (BHE) announced the merger of Nevada Power Co. (NPC) and Sierra Pacific Power (SPC), both operating subsidiaries of BHE. The companies will merge into one entity under NPC. The transaction is expected to improve the scale and scope of NPC and bolster its business risk profile. NPC reduces regulatory lag through

...(NPC) and Sierra Pacific Power (SPC), both operating subsidiaries of BHE. The companies will merge into one entity under NPC. The transaction is expected to improve the scale and scope of NPC and bolster its business risk profile. NPC reduces regulatory lag through various mechanisms. NPC is permitted to use a hybrid test period, reflecting known and measurable adjustments for certain construction work in progress for seven months after the initial test period. The regulatory...

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