The ratings on NV Energy Inc. (NVE) are based on its consolidated credit profile with regulated electric utility subsidiary Nevada Power Co. (NPC) and regulated electric and natural gas utility Sierra Pacific Power Co. (SPPC). The credit profile reflects steady management of regulatory risk and adequate hedging of market exposures, offset by higher debt levels, lower cash flows, a very high exposure to natural gas prices, and service area economic volatility. NPC and SPPC provide electricity in fast-growing southern Nevada and slower-growing northern and western, central, and northeastern Nevada. The service territory includes the Las Vegas metropolitan area and the cities of Reno and Carson City. SPPC also provides natural gas service around the Reno-Sparks area of Nevada. In 2008,
