Overview Key strengths Key risks The company is a regulated, vertically integrated electric utility that provides an essential service to Las Vegas and surrounding areas. A lack of regulatory diversity makes the company dependent on the Public Utilities Commission of Nevada (PUCN) to sustain its credit quality. It manages its regulatory risk effectively under a generally constructive regulatory environment. Politicization of utility policies in Nevada are heightened. Group support from parent Berkshire Hathaway Energy (BHE) provides two notches of uplift to the rating. The company?s exposure to commercial and industrial customers, particularly in the gaming and mining industries, leaves it more susceptible to adverse economic conditions than many of its peers. Negative discretionary cash flow indicates future external funding needs.
