Fully regulated operations; Substantial improvements in the regulatory environment in the state; Good power and fuel cost adjustment mechanisms; Strong demand growth that exceeds 4% annually; No significant debt maturities until 2011. Exposure to wholesale power and natural gas markets; Highly leveraged financial profile; Large capital expenditure requirements that limit the company's ability to pay down debt; Significant customer concentration in the industrial segment in gaming and mining industries. The ratings on Nevada Power Co. (NPC) are based on the consolidated credit profile of Sierra Pacific Resources (SRP), of which it is a subsidiary, along with SRP's other subsidiary, Sierra Pacific Power Co. (SPPC). The business profile reflects a stable, much improved regulatory relationship with the Public Utilities Commission of
