NV Energy says refund drops earnings to $187 million for 3rd quarter
Las Vegas-based utility NV Energy, which serves about 90 percent of Nevada’s population, reported its third-quarter earnings today.
Company: NV Energy Inc. (NYSE:NVE)
Revenue: $1.01 billion (down 1 percent from the third quarter of 2012).
Earnings: $187 million (down 16 percent from the third quarter of 2012). The drop was attributed in large part to “a regulatory disallowance and reserves” related to orders last month by the Public Utilities Commission of Nevada.
On Sept. 25, the regulatory agency ordered NV Energy to refund customers $14.5 million, essentially because the company had earned too much money in 2012. NV Energy booked $322 million in profit last year, almost double what it took home in 2011.
The company also blamed the third-quarter earnings drop on milder weather and costs related to its planned buyout by Iowa’s MidAmerican Energy Holdings Co., a unit of famed billionaire Warren Buffett’s Berkshire Hathaway conglomerate. The sale, for $5.6 billion cash, was announced in late May and is expected to close in the first quarter of 2014.
Earnings per share: 79 cents (down 16 percent from 94 cents per share in the third quarter of 2012).
Quote: “Our cost control efforts are on track, with operating and maintenance expenses virtually unchanged for the year to date. We also reached an important milestone in our proposed merger, receiving shareholder approval in the third quarter, and we continue to work on obtaining regulatory approvals for the transaction. Our fundamental mission will remain unchanged: providing our customers with safe, reliable, affordable energy.” — Michael Yackira, president and CEO