Fully regulated integrated utility operations; Excellent power and fuel cost pass-through 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 Volatile demand growth, historically exceeding 4% annually but currently flat. Cash flows and debt leverage that are weaker than sector averages and that have deteriorated over the past few years, due to large capital expenditures accompanied by heavy borrowings; and Concentration in gaming, hospitality and leisure, and construction, all of which are economically and/or tourism sensitive and have weakened significantly in the current recession. The 'BB' issuer credit ratings on utility holding company NV Energy Inc. (NVE), regulated electric utility subsidiary Nevada Power Co.
