Sierra Pacific Power Company
| Company type | Public utility |
|---|---|
| Industry | Electric and natural gas utility |
| Founded | 1998 |
| Headquarters | Las Vegas , United States |
Area served | Northern and southern Nevada |
Key people | Doug Cannon (President and CEO) |
| Products | Electric generation, transmission, distribution; natural gas services |
Number of employees | 2,500 |
| Parent | Berkshire Hathaway Energy |
NV Energy operates as a publicly owned utility delivering electric generation, transmission, and distribution services throughout northern and southern Nevada, including the Las Vegas Valley. It also provides natural gas services within the Reno – Sparks metropolitan area. The company is headquartered in Las Vegas and caters to roughly 1.3 million customers alongside serving over 40 million visitors annually.
In December 2013, NV Energy was acquired by MidAmerican Energy Company—now known as Berkshire Hathaway Energy—a subsidiary of Berkshire Hathaway. Despite the acquisition, NV Energy maintained its Las Vegas headquarters and brand identity. Prior to this transaction, NV Energy’s common shares were publicly traded on the New York Stock Exchange under the ticker symbol NVE.
Financial highlights from 2017 report revenues totaling US$3.016 billion, an operating income of US$755 million, and a net profit of US$344 million. Berkshire Hathaway holds a controlling interest with 92% ownership, while the Walter Scott Jr. family owns the remaining 8%. The company employs approximately 2,500 personnel and is led by President and CEO Doug Cannon.
History
NV Energy was formed in 1998 through the consolidation of Nevada’s two principal utilities: Sierra Pacific Power based in Reno and Las Vegas’s Nevada Power.
Sierra Pacific Power originated in 1928 following a merger of entities tracing back to the gold rush era of the 1850s. In 1984, it reorganized under the holding company Sierra Pacific Resources. Meanwhile, Nevada Power began operations in 1906 as Consolidated Power and Telephone Company of Nevada. After divesting its telephone business in 1929, it became Southern Nevada Power and later adopted the name Nevada Power in 1961. Notably, it was Nevada’s first company to be listed on the New York Stock Exchange in 1962.
The 1999 merger between Sierra Pacific and Nevada Power resulted in Sierra Pacific Resources remaining as the surviving entity. The corporate headquarters relocated from Reno to Nevada Power’s facility in Las Vegas, establishing a utility footprint spanning over 44,400 square miles that encompasses nearly all populated regions within Nevada.
On September 22, 2008, the company unified its brand identity under the name NV Energy. Following this rebranding, Sierra Pacific Resources officially changed its corporate name to NV Energy, Inc.
In 2009, NV Energy divested its California operations to a partnership between Algonquin Power & Utilities and Emera, with Algonquin subsequently acquiring full control. In February 2010, NV Energy entered into a 20-year power purchase agreement with Pattern Energy for electricity generated at the Spring Valley Wind Farm, which commenced operations in August 2012. This $225 million wind facility provides electricity sufficient to power approximately 40,000 homes across northern Nevada and the Las Vegas Valley.
In July 2018, NV Energy initiated an electric vehicle infrastructure program authorized by the Nevada Public Utilities Commission. This program involves a $15 million investment toward expanding publicly accessible EV charging stations. The initiative supports a broader legislative directive involving $295 million aimed at advancing solar incentives and renewable energy projects within the state.
Service reliability
Between 2010 and 2012, NV Energy ranked within the top decile of electric utilities nationwide regarding electric distribution reliability. In fact, it was recognized as the leading utility in the United States for reliability performance in 2009. These rankings are determined by metrics such as interruption frequency (SAIFI) and outage duration compared against peer utilities as evaluated by the Edison Electric Institute.
Electric sources
NV Energy supplies electricity through a combination of company-operated power plants—mainly fueled by natural gas—alongside purchased energy and renewable sources. The utility surpasses Nevada’s mandated renewable portfolio standard, which requires 18% of total energy sales to come from renewables. In the northern region of Nevada, renewable energy and credits accounted for 33.6%, while southern Nevada achieved a 20.2% share.
In April 2019, Nevada enacted legislation mandating that all electricity providers, including cooperatives and marketers, generate 50% of their power from renewable sources by 2030 and transition to 100% carbon-free energy by 2050.
Solar energy
NV Energy holds a 20-year power purchase agreement for electricity from the 100 MW Playa Solar 2 facility at a rate of $0.0378 per kilowatt-hour. In 2018, the company revealed intentions to procure power from Avantus’s 300 MW Eagle Shadow Mountain Solar Project.
By June 2019, NV Energy announced plans for three solar developments totaling 1,200 MW combined capacity alongside 590 MW of battery storage. These projects, led by developers such as 8minute Solar Energy, EDF Renewables, Quinbrook Infrastructure, and Arevia Power, aim for completion by 2023:
- Arrow Canyon Solar Project (200 MW)
- Southern Bighorn Solar & Storage Center (300 MW)
- Gemini Solar + Battery Storage Project: a $1.9 billion investment featuring 690 MW capacity with a 380 MW / 1,400 MWh battery system priced at $38.44 per megawatt-hour
These initiatives establish NV Energy as a frontrunner in deploying large-scale solar power coupled with storage solutions within Nevada.
Other projects
The company announced in 2006 its intention to build the Ely Energy Center near Ely, Nevada, but the project experienced a delay of nearly a decade starting February 2009.
In May 2011, NV Energy completed the Harry Allen gas-fired power plant ahead of schedule and under budget.
Prior to 2013, northern and southern Nevada operated separate electrical grids. This changed with the late-2013 completion of the 500-kilovolt One Nevada Transmission Line (ONLine), which links the Harry Allen facility in the south to Ely in the north. The ONLine improves grid reliability, lowers operational costs, and facilitates the integration of renewable resources such as wind, solar, and geothermal located in remote parts of Nevada.
"Energy Choice" initiative
In both 2016 and 2018, Nevadans voted on measures proposing to create a competitive retail electricity market to replace the existing single-utility framework. The initiative was ultimately defeated in the 2018 election. Nevertheless, between 2016 and 2018, six significant commercial customers transitioned away from NV Energy to alternative suppliers under provisions established by a state law enacted in 2001.
Subsidiaries
- Nevada Power Company
- Sierra Pacific Power Company