COLLECTIVE BARGAINING AGREEMENT

 

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                                                                    EXHIBIT 10.1

 

                            2005 Negotiations Summary

                      IBEW Local 396 / Nevada Power Company

 

    COLLECTIVE BARGAINING AGREEMENT FEBRUARY 1ST 2005 - FEBRUARY 1ST 2008

 

                              NEW HOLIDAY SCHEDULE:

 

   NEW YEARS DAY                                 VETERAN'S DAY

   MARTIN L. KING DAY                            THANKSGIVING DAY

   MEMORIAL DAY                                  THANKSGIVING FRIDAY

   INDEPENDENCE DAY                              CHRISTMAS DAY

   LABOR DAY                                     FLOATING HOLIDAYS (3)

 

REVISED ARTICLE: 10.4 FLOATING HOLIDAYS

 

AN EMPLOYEE SHALL OBSERVE THE FLOATING HOLIDAYS ON ANY DAY THE EMPLOYEE DESIRES

SO LONG AS A SEVEN-DAY NOTICE HAS BEEN GIVEN REGARDLESS OF OPERATIONAL OR OTHER

NEEDS FOR THE PURPOSE OF THIS ARTICLE, THE CALENDAR WEEK BEGINS SUNDAY AND ENDS

SATURDAY. SHOULD AN EMPLOYEE BE CALLED IN OR BE REQUIRED TO WORK ON A PREVIOUSLY

APPROVED "HOLIDAY" THE EMPLOYEE SHALL BE PAID THE APPLICABLE OVERTIME RATE,

EXCEPT IF BOTH THE EMPLOYEE AND SUPERVISOR MUTUALLY AGREE TO CHANGE THE

OBSERVANCE OF THE HOLIDAY FLOATING HOLIDAYS DO NOT CARRY OVER FROM ONE PAYROLL

YEAR TO THE NEXT, AND MUST BE USED IN THE PAYROLL YEAR IN WHICH THEY ARE

RECEIVED.

 

IT IS UNDERSTOOD THAT THE (3) FLOATING HOLIDAYS DO NOT APPLY TO THE GENERATION

12 HOUR SHIFT OR 36 FOR 40 SHIFT AGREEMENTS.

 

                                   HEALTHCARE

 

ALL LOCAL 396 MEMBERS WILL BE ELIGIBLE TO PARTICIPATE IN THE COMPANY'S EMPOWER

WELLNESS PROGRAM EFFECTIVE JANUARY 1, 2006. THE COMPANY WILL OFFER A HEALTH

SCREENING IN SEPTEMBER-OCTOBER 2005 WHICH IS MANDATORY FOR ENROLLMENT INTO THE

2006 WELLNESS PROGRAM.

 

Healthcare premium cost share will change from:

      Company 80% - Employee 20% to COMPANY 82% - EMPLOYEE 18%

 

A 20% CAP (MAXIMUM INCREASE) PER YEAR FOR PREMIUMS WILL REMAIN IN PLACE FOR THE

TERM OF THE CONTRACT.

 

CO-PAYS REMAIN THE SAME. NO HEALTHCARE PREMIUM INCREASE IN 2005.

 

PRESCRIPTION DRUG BENEFIT WILL FOLLOW THE NPC UNION INSURANCE PLAN SCHEDULE FOR

ALL THREE INSURANCE OPTIONS, I.E. SIERRA SELECT AND HPN.

 

      - Retail

 

        1. Generic ("Tier 1") = $5 co-pay for 30-day supply

 

        2. Brand Name ("Tier 2") = $15 co-pay for 30-day supply

 

        3. Non-Preferred ("Tier 3") = $35 co-pay for 30-day supply

 

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                            2005 Negotiations Summary

                      IBEW Local 396 / Nevada Power Company

 

      - Mail Order - Available for "Maintenance" (Life-Sustaining) Drugs Only

        Generic ("Tier 1") = $10 co-pay for 90-day supply

 

        1. Brand Name ("Tier 2") = $30 co-pay for 90-day supply

 

        2. Non-Preferred ("Tier 3") = $70 co-pay for 90-day supply

 

IF THERE IS NO GENERIC SUBSTITUTE, THE BRAND NAME CO-PAY APPLIES. IF YOU CHOOSE

A BRAND NAME WHEN A GENERIC IS AVAILABLE, YOU WILL PAY THE BRAND NAME CO-PAY

PLUS THE DIFFERENCE IN COST BETWEEN THE GENERIC AND BRAND.

 

                                   RETIREMENT

 

INCREASE RETIREMENT FOR EMPLOYEES RETIRING WITH 25 YEARS OF SERVICE OR MORE.

THE 35 YEAR MAX PROVISION IS REMOVED.

 

                          25 YEARS OF SERVICE OR MORE

            --------------------------------------------------------

            FINAL AVERAGE EARNINGS X .1.55 x BENEFIT ACCRUAL SERVICE

 

THE COMPANY WILL REINSERT DISABILITY RETIREMENT LANGUAGE PREVIOUSLY REMOVED

UNDER AMENDMENT 2 TO THE RETIREMENT PLAN DOCUMENT.

 

                             POST RETIREMENT MEDICAL

                             -----------------------

                     Current: $240.00 x B.A.S. prior to age 65

                              $120.00 x B.A.S. after age 65

 

                   PROPOSED: $260.00 X B.A.S. PRIOR TO AGE 65

                             $130.00 X B.A.S. AFTER AGE 65

 

                                      WAGES

 

                           02-07-2005           4.00%

                           01-23-2006           3.75%

                           02-05-2007           3.75%

                           (Dates reflect pay periods)

 

*     WAGE INCREASES FOR 2005 WILL BE IMPLEMENTED THE FIRST PAY PERIOD FOLLOWING

      RATIFICATION. RETRO WILL BE PAID ON THE FIRST CHECK FOLLOWING

      RATIFICATION.

 

                                     GENERAL

 

PREFERRED PROVIDER ORGANIZATION. Under the, NPC Union Plan, when a Preferred

Provider is available within A 30-MILE radius of the employee's (or the

dependent seeking care) residence, and there is more than one (1) Preferred

Provider available to perform the services, the employee will be subject to the

PPO provisions and Non-PPO penalties.

 

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                            2005 Negotiations Summary

                     IBEW Local 396 / Nevada Power Company

 

85-POINT PROVISION, Unreduced retirement benefits are available to employees

who meet the eligibility criteria and terminate: at age sixty-five (65); at age

sixty-two (62) with at least five (5) years of Vesting Service; or upon reaching

age fifty-five (55) with a total of eighty-five (85) points when age and Benefit

Accrual Service are added together. EMPLOYEES NOT CURRENTLY COVERED IN THE

COLLECTIVE BARGAINING AGREEMENT THAT TRANSFER TO A JOB UNDER THE AGREEMENT MUST

WORK FIVE YEARS UNDER THE AGREEMENT BEFORE THEY CAN EXERCISE THE 85 POINT PLAN

IN THE PENSION PLAN.

 

401 k AUTOMATIC ENROLLMENT. EFFECTIVE JANUARY 1, 2005, ALL NEW HIRES WILL BE

AUTOMATICALLY ENROLLED AT A 3% DEFERRAL RATE UPON INITIAL ELIGIBILITY. ALL NEW

HIRES WILL BE PROVIDED THE OPPORTUNITY TO OPT-OUT OF THE PLAN PRIOR TO INITIAL

ELIGIBILITY. EMPLOYEES MAY ELECT TO STOP CONTRIBUTIONS TO THE PLAN AT ANY TIME.

IN THE ABSENCE OF ANY INVESTMENT ELECTION, CONTRIBUTIONS WILL BE INVESTED 100%

IN THE DEFAULT INVESTMENT FUND ESTABLISHED UNDER THE PLAN.

 

SUPPLEMENTAL LIFE. THE COMPANY WILL PROVIDE A SUPPLEMENTAL LIFE INSURANCE

PROGRAM THAT ALLOWS EMPLOYEES DESIRING SUCH COVERAGE TO PURCHASE SUPPLEMENTAL

LIFE INSURANCE FOR THEMSELVES AT GROUP RATES. THE FOLLOWING OPTIONS ARE

AVAILABLE:

 

      -     EMPLOYEE COVERAGE FROM .5X TO 5X AN EMPLOYEE'S BASE PAY (MAXIMUM

            $1,000.000)

 

      -     SPOUSE'S COVERAGE FROM S10,000 TO $150,000 IN INCREMENTS OF $10,000.

            HOWEVER, ANY EMPLOYEE'S SPOUSE WHO HAD AND AMOUNT OF OVER $150,000

            AS OF DECEMBER 31, 2004 WILL BE ALLOWED TO CONTINUE HAT AMOUNT INTO

            THE FUTURE WITHOUT CHANGE.

 

      -     CHILDREN EITHER IN THE AMOUNT OF $5,000 OR $10,000.

 

RED CIRCLE/GRANDFATHER:

 

ALL CURRENT RED CIRCLE WAGES, AS OF THE RATIFICATION OF THE 2005 CBA, SHALL BE

"GRANDFATHERED" AT SUCH WAGE AND SHALL CONTINUE TO RECEIVE WAGE INCREASES;

HOWEVER THE WAGE SCHEDULE FOR "GRANDFATHERED" EMPLOYEES WILL NOT BE INCLUDED IN

THE CBA. ALL "GRANDFATHERED" EMPLOYEES SHALL BE IDENTIFIED AT THEIR CURRENT WAGE

AND A LIST SHALL BE SHARED BETWEEN THE UNION & COMPANY. GOING FORWARD, RED

CIRCLED EMPLOYEES SHALL BE DEFINED AS EMPLOYEES FROZEN AT THEIR CURRENT RATE AND

SHALL NOT RECEIVE PAY INCREASES UNTIL ANNUAL INCREASES CATCH UP. IN THE EVENT AN

EMPLOYEE IS INVOLUNTARILY FORCED TO A LOWER CLASSIFICATION, OTHER THAN AS A

RESULT OF DISCIPLINE, SUCH EMPLOYEE SHALL BE "GRANDFATHERED" AND SHALL CONTINUE

TO RECEIVE ANNUAL WAGE INCREASES FOR AS LONG AS THEY REMAIN IN THEIR

"GRANDFATHERED" POSITION.

 

MODIFICATION: JOB POSTING SYSTEM: The Company shall publish job posting and

awarding procedures, which, at a minimum, comply with the provisions of this

Agreement. These procedures will constitute the Company's job posting system.

Any bargaining unit employee covered by the Collective Bargaining Agreement may

apply and compete equally for any position within the Company. EMPLOYEES ARE

DISQUALIFIED FROM BIDDING IF THEY HAVE A LETTER OF DISCIPLINE, WHICH IS LESS

THAN ONE (1) YEAR OLD IN

 

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                            2005 Negotiations Summary

                     IBEW Local 396 / Nevada Power Company

 

THEIR HUMAN RESOURCES PERSONNEL FILE. EMPLOYEES WILL NOT BE DISQUALIFIED FROM

BIDDING IF THEY HAVE A LETTER OF DISCIPLINE FOR METER READING ACCURACY, WHICH IS

LESS THAN ONE (1) YEAR OLD IN THEIR HUMAN RESOURCES PERSONNEL FILE, PROVIDED

THAT THE JOB FOR WHICH THEY ARE BIDDING DOES NOT INVOLVE READING METERS AS PART

OF THEIR REGULAR DUTIES. IN ADDITION, EMPLOYEES WHO ARE HIRED, PROMOTED OR

TRANSFERRED TO A METER READER POSITION SHALL NOT BE PERMITTED TO APPLY FOR

ANOTHER POSITION FOR SIX (6) MONTHS FROM THEIR HIRE DATE OR DATE OF

PROMOTION/TRANSFER. EMPLOYEES WILL NOT BE DISQUALIFIED FORM BIDDING IF THEY HAVE

A LETTER OF DISCIPLINE WHICH IS LESS THAN ONE (1) YEAR OLD IN THEIR HUMAN

RESOURCES PERSONNEL FILE FOR CASH HANDLING PROVIDED THAT THE JOB FOR WHICH THEY

ARE BIDDING DOES NOT INVOLVE CASH HANDLING AS PART OF THE REGULAR DUTIES.

 

NEW ARTICLE: 7.10 BRIDGE TIME FOR RE-HIRED EMPLOYEES:

 

PREVIOUS EMPLOYEES, WHO ARE REHIRED AS A REGULAR EMPLOYEE, ONE YEAR AFTER THE

DATE THEY LEFT THE COMPANY (AS REGULAR EMPLOYEES), SHALL NOT BE CREDITED WITH

COMPANY SENIORITY AT THE TIME OF RE-EMPLOYMENT AND SHALL BE REQUIRED TO SERVE A

NEW PROBATIONARY PERIOD. WHEN THE EMPLOYEE HAS COMPLETED FIVE (5) YEARS OF

SUBSEQUENT SERVICE, IN A FULL-TIME REGULAR POSITION, AN ADJUSTED HIRE DATE WILL

BE CALCULATED, CREDITING REGULAR HOURS WORKED WITH THE COMPANY FOR PURPOSES OF

COMPANY SENIORITY AND ALL RELATED BENEFITS. EMPLOYEES RE-HIRED WITH LESS THAN A

ONE YEAR BREAK IN SERVICE WILL HAVE THEIR TIME BRIDGED UPON RE-HIRE. THIS

AGREEMENT IS SEPARATE AND NOT INTENDED TO CONFLICT WITH ARTICLE 5.4 OF THE

COLLECTIVE BARGAINING AGREEMENT.

 

NEW ARTICLE 12,10 FAMILY SICK LEAVE

 

FAMILY SICK LEAVE (FSL): EMPLOYEES WILL BE ALLOWED TO USE UP TO 32 HOURS OF

ACCRUED SICK LEAVE PER PAYROLL YEAR TO CARE FOR AN IMMEDIATE FAMILY ILLNESS OR

EMERGENCY. UNUSED HOURS CANNOT BE CARRIED OVER TO THE NEXT YEAR. THERE WILL BE

NO OCCURRENCES WHEN SICK LEAVE IS USED FOR THIS PURPOSE. FSL CANNOT BE USED IN

CONJUNCTION WITH A HOLIDAY.

 

NEW ARTICLE 13.10 JOINT BENEFITS COMMITTEE:

 

A JOINT BENEFITS COMMITTEE WAS ESTABLISHED FEBRUARY 1ST, 2002 FOR THE PURPOSE OF

REVIEWING MEDICAL, BENEFITS, DEPENDENT CARE, COSTS, ISSUES AND TRENDS. JOINT

DECISIONS ARE MADE ON BENEFITS PROGRAMS AND ARE BINDING. THE COMMITTEE WILL

CONSIST OF THE UNION BUSINESS MANAGER AND FOUR (4) UNION MEMBERS AND THE

REPRESENTATIVE OF THE SR. VICE PRESIDENT OF HUMAN RESOURCES AND FOUR (4) MPAT

EMPLOYEES ASSIGNED BY THE SR. VICE PRESIDENT. THE COMMITTEE WILL BE CHARTERED TO

REVIEW HEALTH AND WELFARE PLANS, PENSION AND 401(K) PLANS DURING THE TERM OF

THIS AGREEMENT.

 

REVISED ARTICLE: 153 REMOVING LETTERS OF DISCIPLINE:

 

Any Employee, who receives a written letter of reprimand which is a part of the