Profits rise 40 percent for Sierra Pacific Resources
Sierra Pacific Resources, the parent of Nevada Power Co., on Friday reported second-quarter net income increased 40 percent, despite the slump in the economy and cooler temperatures than last summer.
The utility holding company earned $36.1 million, or 15 cents per share, for the quarter ended June 30, up from $25.8 million, or 12 cents per share, a year earlier.
Analysts polled by Thomson Financial expected earnings of 17 cents per share in the latest quarter.
"I'm pleased at the way our company is performing," Chief Executive Officer Michael Yackira said. "The whole economy is suffering nationwide."
The opening of new casinos can turn around the job market in Southern Nevada quickly, he said.
"It's a matter of time before the economy comes back," Yackira said.
In addition, "we certainly had less revenue than we would have if we had had normal weather," he said. "It's been a milder spring and beginning of the summer than we have experienced in recent years."
Nevada Power hit a 2008 use peak of 5,504 megawatts this summer but hasn't topped the prior year's peak of 5,866 megawatts despite a year of growth.
Second-quarter operating revenues fell 1.5 percent to $838.8 million, but the effect on the bottom line was offset by lower maintenance expense.
Gross margin, which is revenue less fuel and purchased power costs, increased 5.7 percent to $304.2 million for the quarter.
Nevada Power reported $33.2 million in net income, up from $23.6 million in the second quarter a year ago. Operating revenues dipped to $570.2 million from $575.1 million last year.
Nevada Power customers are slower to pay their bills than a year ago, causing delinquency rates to increase. But Yackira said billing write-offs have not changed materially.
Nevada Power, which serves Southern Nevada customers, and Sierra Pacific Power Co. of Reno both reported slowing growth in new customers during the first six months of the year.
The number of Nevada Power's residential customers for the first six months increased 1.1 percent this year, compared with 2.7 percent a year ago. Commercial customers rose by 3.1 percent, down from 3.4 percent a year ago. Giant commercial customers, such as hotel-casinos, and industrial customers grew by 3.4 percent, compared with 5.9 percent a year ago.
Sierra Pacific Power reported net income rose to $10.8 million from $10 million in the second quarter last year. Revenues fell to $268.6 million from $276.7 million.
Shares in the holding company fell 48 cents, or 4.09 percent, Friday to close at $11.27 on the New York Stock Exchange.
NEVADA UTILITIES RANK SECOND IN POLL
Sierra Pacific Resources' electric utilities ranked second nationally in four areas of the "Top 10 Solar Electric Utilities" poll.
The Solar Electric Power Association announced the rankings Thursday.
The subsidiaries, Nevada Power Co. and Sierra Pacific Power Co., were second in total solar electric capacity per customer among all utilities, total solar electric capacity for investor-owned utilities, solar electric power on the utility side of the meter for all utilities and solar power per customer on the utility side of the meter.
The company was ranked third nationally in total solar electric capacity.
REVIEW-JOURNAL
Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.
NEVADA UTILITIES RANK SECOND IN POLL
Sierra Pacific Resources' electric utilities ranked second nationally in four areas of the "Top 10 Solar Electric Utilities" poll.
The Solar Electric Power Association announced the rankings Thursday.
The subsidiaries, Nevada Power Co. and Sierra Pacific Power Co., were second in total solar electric capacity per customer among all utilities, total solar electric capacity for investor-owned utilities, solar electric power on the utility side of the meter for all utilities and solar power per customer on the utility side of the meter.
The company was ranked third nationally in total solar electric capacity.
