NV Energy

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NV Energy, Inc.
Industry Public utilities
Founded Las Vegas, Nevada, United States (1999 (1999))
Headquarters Las Vegas, Nevada, United States
Products electricity, natural gas
Revenue US$ 2,961 million (2013)[1]
Operating income US$ 558 million (2013)[2]
Net income US$ 162 million (2013)[3]
Total assets US$ 12,272 million (2013)[4]
Employees ~2,500[5]
Parent Berkshire Hathaway Energy
Subsidiaries
Website nvenergy.com

NV Energy is a public utility which generates, transmits and distributes electric service in northern and southern Nevada, including the Las Vegas Valley, and provides natural gas service in the Reno–Sparks metropolitan area of northern Nevada. Based in Las Vegas, Nevada, it serves about 1.3 million customers and over 40 million tourists annually.[6] NV Energy charges the highest rates out of any mountain energy company[7]

NV Energy corporate headquarters in Las Vegas, NV

MidAmerican Energy Holdings Company (now Berkshire Hathaway Energy), a subsidiary of Berkshire Hathaway, acquired NV Energy in a transaction completed on December 19, 2013. [8] NV Energy will continue to be based in Las Vegas under its current name.[9] Prior to the acquisition by MidAmerican, the company's common stock was listed on the New York Stock Exchange under the ticker symbol NVE.

History[edit]

NV Energy is the product of the 1998 merger of the two major utilities in Nevada—northern Nevada's Sierra Pacific Power, based in Reno, and Las Vegas' Nevada Power.

Sierra Pacific Power was founded in 1928 from a merger of several companies dating back to the gold rush of the 1850s. In 1984, it reorganized as a holding company, Sierra Pacific Resources. Nevada Power was formed in 1906 as the Consolidated Power and Telephone Company of Nevada. It sold off its telephone operations in 1929 and became Southern Nevada Power, changing its name to Nevada Power in 1961. A year later, it became the first Nevada-based company listed on the New York Stock Exchange.

In 1999, Sierra Pacific and Nevada Power merged.[10] While Sierra Pacific was the nominal survivor, headquarters moved from Reno to Nevada Power's old campus in Las Vegas. The merger created a company with a service territory stretching over 44,400 square miles—nearly all of Nevada's densely populated area.

On September 22, 2008, Nevada Power and Sierra Pacific Power began doing business as NV Energy. This is the result of the corporate decision to unify its image under a single brand. Later, Sierra Pacific Resources changed its corporate name to NV Energy, Inc.[11]

In 2009, NV Energy sold its California operations to a partnership of Algonquin Power & Utilities and Emera.[12] Algonquin later bought out Emera.[13]

Service Reliability[edit]

Based on the reliability of electric distribution service, NV Energy ranked among the best 10% of electric utilities nationwide in 2012, 2011 and 2010, and was the best in the nation in 2009.[14] The rankings are based on interruption frequency[15] and interruption duration[16] compared to a peer group constructed by the Edison Electric Institute.

NV Energy corporate headquarters in Las Vegas, NV

Customer Service Reputation[edit]

NV Energy has not received particularly good reviews from customers in the Reno/Sparks and Las Vegas area. Many complaints about long wait times, disconnections, poor customer service, being hung up on, getting "estimates" instead of accurate meter readings, being charged for the rates of the previous tenant in their home, and most of all, that the company is a monopoly and they have no other choice.[17][18] NV Energy is the only energy company available for services in the Reno/ Sparks and Las Vegas areas, and many think that the rates they charge are unfair. In 2011, IBEW Local 1245/AFL-CIO, which has represented the utility’s workers since the Truman administration, conducted a poll of 1,000 likely voters. It found 82 percent supporting a plan to form a “citizen utility board” to represent ratepayers before the PUC. Just 10 percent opposed.[19]

Electric sources[edit]

The company obtains the majority of its electricity from natural gas-fired sources. Coal-fired power plants provide about 10% of electricity sources.[14] Eight of the company's nine coal-fired generating units have flue gas desulfurization equipment (scrubbers) installed to control sulfur dioxide emissions.

Major projects[edit]

In May 2011, the company completed construction of the Harry Allen gas-fired generating plant below budget and ahead of schedule. Previously announced plans to construct two 750 megawatt pulverized coal generation units near Ely have been cancelled.

Prior to 2013, the company's northern and southern Nevada electric grids were not connected, and ran as separate systems. This changed in late 2013, when the company completed a transmission line running from the Harry Allen plant north to Ely, Nevada. The 500-kilovolt One Nevada Transmission Line (ONLine) is expected to improve electric service reliability, reduce costs and allow development of renewable energy sources, such as wind, solar and geothermal generating units, in remote parts of the state.[20][21][22]

Subsidiaries[edit]

References[edit]

  1. ^ "NV Energy Bondholder Report, March 2014". 
  2. ^ "NV Energy Bondholder Report, March 7, 2014". Retrieved 19 July 2014. 
  3. ^ "NV Energy Bondholder Report, March 7, 2014". Retrieved 19 July 2014. 
  4. ^ "NV Energy Bondholder Report, March 7, 2014". Retrieved 19 July 2014. 
  5. ^ "Annual Reports on SEC Form 10-K for period ending Dec. 31, 2013, Nevada Power Company and Sierra Pacific Power Company". Retrieved 19 July 2014. 
  6. ^ source: 2012 Annual Report on Form 10-K
  7. ^ http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_6_a
  8. ^ SEC Form 8-K dated December 19, 2013
  9. ^ Merger announcement
  10. ^ Journal, Kathryn Kranhold Staff Reporter of The Wall Street (1998-05-01). "Nevada Power, Sierra Pacific Plan Merger Deal of at Least $1 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2014-09-09. 
  11. ^ "Nevada Power and Sierra Pacific Power Renamed NV Energy" (Press release). Sierra Pacific Resources. 2008-09-22. Retrieved 2008-09-22. 
  12. ^ "UPDATE 2-Algonquin, Emera to jointly buy some NV Energy assets". Reuters. 2009-04-23. Retrieved 2014-09-16. 
  13. ^ "Algonquin and Emera announce a Strategic Investment Agreement and the transfer of California Utility to Algonquin". Retrieved 2014-09-16. 
  14. ^ a b NV Energy investor presentation, March 2013, company website
  15. ^ SAIFI
  16. ^ SAIDI
  17. ^ http://www.yelp.com/biz/nv-energy-reno
  18. ^ http://www.consumeraffairs.com/utilities/nv_energy.html
  19. ^ http://www.shameonnvenergy.com/nevada-journalist-andrew-barbano-nv-energy-new-poll
  20. ^ Las Vegas Review-Journal, January 23, 2014
  21. ^ Jennifer Robison (2010-60-03). "Hot topic? How does ONLine grab you?: PUC hears all about plan for $510 million power line". Las Vegas Review-Journal.  Check date values in: |date= (help)
  22. ^ Bureau of Land Management news release, October 19, 2010

External links[edit]