Fully regulated integrated utility operations; Excellent power and fuel cost passthrough mechanisms, including the quarterly base tariff energy rate adjustment, and a supportive regulatory environment in the state of Nevada, backed by legislatively created provisions; and Robust but also volatile demand growth, historically exceeding 4% annually but currently flat. Cash flows and debt leverage that are weaker than sector averages, and have deteriorated over the past year, due to large capital expenditures accompanied by heavy borrowings; Liquidity restrictions due to covenant tests that have limited revolver access; and Concentration in gaming, hospitality and leisure, and construction, all of which are economically and/or tourism sensitive, and have experienced significant weakness in the current recession. The ratings on NV Energy Inc. (NVE)
