The 'BB' issuer credit ratings on utility holding company NV Energy Inc. (NVE), regulated electric utility subsidiary Nevada Power Co. (NPC), and regulated electric and natural gas utility Sierra Pacific Power Co. (SPPC) are based on the consolidated credit profile. 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. NVE provides electricity in fast-growing southern Nevada and slower-growing northern, 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.
