The 'BB+' issuer credit rating on regulated electric utility subsidiary Nevada Power Co. (NPC) is based on the consolidated credit profile of utility holding company NV Energy Inc. (NVE) and regulated electric and natural gas utility Sierra Pacific Power Co. (SPPC). The consolidated credit profile reflects steady management of regulatory risks, offset by higher debt levels, lower cash flows, service area economic volatility, and exposure to natural gas and power costs. NVE provides electricity in Nevada, including the Las Vegas metropolitan area and the cities of Reno and Carson City. During 2011, NPC's electric and SPPC's electric and gas operations represented about 70% and 30% of operating revenues, respectively. NVE's excellent consolidated business risk profile reflects our view of its
