Cash flows and debt leverage that are weaker than sector averages because of large capital expenditures accompanied by heavy borrowings in recent years; High exposure to natural gas for electric generation; and Service area concentration in gaming, hospitality, and construction, all of which are sensitive to the economy and/or tourism and have weakened significantly in the current recession. Fully regulated integrated utility operations; Supportive power and fuel cost pass-through mechanisms, including quarterly base tariff energy rate adjustments; A supportive regulatory environment in Nevada, backed by legislatively created provisions; and A slowdown in growth that has lessened the need for external capital. The 'BB+' issuer credit rating on regulated electric utility subsidiary Nevada Power Co. (NPC) is based on the consolidated
