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 of market exposures, offset by higher debt levels, lower cash flows, service area economic volatility, and high exposure to natural gas prices, which is mitigated by significant hedging. NVE provides electricity in southern, northern, western, central, and northeastern Nevada. The service territory includes the Las Vegas metropolitan area and the cities of Reno and Carson City. At the end of 2009, NPC and SPPC represented about 67% and 24%, respectively, of
