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2nd Quarter 2015 Transmission Stakeholder

Planning Meeting

Reno, NVJune 26, 2015

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Agenda1. Regulatory Filings Update2. Integrated Resource Plan Update

◦ SB 123- NVision

3. Generator Interconnection Updates4. Stakeholder Input

Transmission Stakeholder Planning Input Meeting

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Regulatory Filings Update One Company Rate Case

FERC Order 1000

Energy Imbalance Market

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FERC Rate Case Summary

NVE filed a combined rate case May 31, 2013. Docket ER13-1605 Uncontested Settlement Agreement was filed

with FERC September 19, 2014. The Chief Judge certified the settlement on

September 24, 2014 and ordered that the settlement rates be implemented for billing as of September 1, 2014.

The Commission has approved the Settlement and refunds have been issued.

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FERC Order 1000

On July 21, 2011, the Federal Energy Regulatory Commission (“FERC”) issued Order No. 1000, Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities (“Order 1000”), which became effective on October 11, 2011

Four areas of reform:◦ Regional transmission planning◦ Interregional transmission planning coordination ◦ Right of First Refusal (ROFR) – N/A to Nevada◦ Cost Allocation

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FERC Order 1000 (Cont.)

Public Utility Transmission Providers (“TPs”) required to participate in a regional planning process that satisfies Order 890 principles (coordination, openness, transparency, information exchange, comparability, dispute resolution and economic planning) and produces a regional transmission plan◦ Each region to produce a regional plan reflecting solutions

that meet the region’s needs more efficiently or cost effectively

Local and Regional transmission planning processes must consider transmission needs driven by “Public Policy Requirements” established by state or federal laws or regulations

TPs in each pair of neighboring planning regions must coordinate to determine if more efficient or cost-effective solutions are available

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Fourth Compliance Filing made on June 15, 2015.

Planning Participation Agreement Completed and executed by all FERC jurisdictional members and others.

New Planning Management Committee formed 12/16/14

Study Plan prepared for one year abbreviated 2015 study plan.

Planning process commenced January 1, 2015.

FERC Order 1000 (Cont.)

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In Docket 14-04024 PUCN approved NV Energy participation in CAISO EIM.

EIM is a voluntary five-minute balancing market currently includes CAISO & PacifiCorp.

NV Energy will join EIM October 1, 2015. Puget Sound Energy and Arizona Public

Service have announced that they intend to join the EIM.

Other companies are investigating joining the EIM.

Energy Imbalance Market

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Economic: the EIM reduces costs for imbalance energy through the ISO’s automated system and market operations that match demand with least-cost available resources within transmission constraints in real-time.

Reliability: operating within the ISO’s larger network mode increased visibility, situational awareness, coordination, and automated outage response across larger portions of the western U.S. energy network.

Integration of renewable energy sources: load and resource diversity across the large EIM geographic footprint allow for more opportunities for and more effective use of intermittent resources.

Energy Imbalance Market Benefits

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On March 6, 2015 Nevada Power filed with the FERC the proposed amendments to its OATT to provide for voluntary participation in the EIM with the CAISO.

On May 14, 2015, the FERC issued an order that accepted all of NV Energy’s proposed amendments to its OATT, with a few subject to future information or compliance filings.

FERC accepted several OATT provisions with embedded key operational and policy decisions, including:◦ NV Energy adequately proved the benefits to customers

of joining EIM;◦ NV Energy’s use of ATC for EIM transfers is appropriate;◦ Use of free transmission for EIM transfers is acceptable;◦ The change in scheduling deadlines to be consistent with

the CAISO’s.

Amendment to OATT for EIM

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Integrated Resource Plan (IRP) Status

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Nevada Power Company Load ForecastHOT

WEATHER

ENERGY PCT PEAK PCT PEAK PCT

Year (GWH) GROWTH (MW) GROWTH (MW) GROWTH

2012 21,856 5,571

2013 21,917 0.3% 5,630 1.1%

2014 22,098 0.8% 5,594 -0.6%

2015 21,868 -1.0% 5,599 0.1% 5,836

2016 21,879 0.1% 5,648 0.9% 5,887 0.9%

2017 22,039 0.7% 5,692 0.8% 5,933 0.8%

2018 22,198 0.7% 5,730 0.7% 5,973 0.7%

2019 22,322 0.6% 5,746 0.3% 5,989 0.3%

2020 22,393 0.3% 5,777 0.5% 6,022 0.6%

2021 22,532 0.6% 5,815 0.7% 6,061 0.6%

2022 22,755 1.0% 5,878 1.1% 6,127 1.1%

2023 22,953 0.9% 5,930 0.9% 6,181 0.9%

2024 23,160 0.9% 5,985 0.9% 6,238 0.9%

2025 23,330 0.7% 6,034 0.8% 6,290 0.8%

Note: All historical numbers are weather normalized.

Forecast Source: 2015 Integrates Resource Plan Forecast to be filed with the PUCN on July 1, 2015.

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Sierra Pacific Power Company Load ForecastHOT

WEATHERENERGY PCT PEAK PCT PEAK PCT

Year (GWH) GROWTH (MW) GROWTH (MW) GROWTH2012 8,949 1,621 2013 9,202 2.8% 1,717 6.0%2014 9,280 0.8% 1,711 -0.4%2015 9,164 -1.2% 1,704 -0.4% 1,770 2016 9,378 2.3% 1,735 1.8% 1,802 1.8%

2017 9,590 2.3% 1,758 1.3% 1,826 1.3%

2018 10,001 4.3% 1,800 2.4% 1,869 2.4%

2019 9,834 -1.7% 1,744 -3.1% 1,811 -3.1%2020 9,688 -1.5% 1,756 0.7% 1,824 0.7%2021 9,773 0.9% 1,774 1.0% 1,842 1.0%2022 9,859 0.9% 1,791 1.0% 1,860 1.0%2023 9,241 -6.3% 1,663 -7.1% 1,727 -7.2%2024 8,847 -4.3% 1,679 1.0% 1,744 1.0%2025 8,921 0.8% 1,696 1.0% 1,761 1.0%

Note: All historical numbers are weather normalized.WN peaks subject to change.

Forecast Source: 2013 IRP 1st Amendment Forecastto be filed with the PUCN on August 15, 2015.

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2015 Actual vs Forecast System Peak Load

2015 PEAKS AS OF 6/21/2015

RECORDED FORECAST

Daily Temperatures 20-yr Average Temps

(MW) Date Hour Maximum Minimum (MW) Maximum Minimum

South 5,416 6/20/2015 6:00 PM 113 80 5,599 112.3 87.3

North 1,498 7/17/2015 5:00 PM 95 56 1,704 101.4 64.1

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1. 2012 IRP filed June 2012 (Docket 12-06053)2. Planning period: 2013 – 20323. PUCN Final Order December 24, 2012 4. PUCN approval was not requested for any new

transmission projects.5. 2015 IRP will be filed July 1, 2015.

Nevada Power Company Integrated Resource Plan (IRP) Status

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“Emission Reduction and Capacity Replacement Plan” Requires NVE-South to retire or eliminate 800 MW of coal by

2019 (Reid Gardner 1,2&3 2014, Reid Gardner 4 2017 and Navajo 2019)

Requires NVE to replace coal with company owned 550 MW of generation either constructed or acquired◦ Generation type not specified◦ Receive cost recovery for decommissioning costs

Consumer protection, cap on rates at 5%

SB123: NVision

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Requires annual RFPs for 100 MW of new renewables in 2014, 15, 16◦ NVE can participate and compete in RFPs

Requires 50 MW of company-owned renewables to start construction by 2017

Filed a Resource Plan Amendment with the PUCN on May 1, 2014 with plan to comply with SB123 and required resource additions.

1. PUCN approval was requested for two new transmission projects:

1. Harry Allen 500/230 kV Transformer2. Harry Allen 230 kV Network Upgrades for 200 MW Moapa PV

PUCN issued order on October 31, 2014. Harry Allen Transformer was approved with June 1, 2016 In-service date. Moapa PV project was denied.

SB123: NVision

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1. NPC 2015 IRP will be filed July 1, 20152. Planning period: 2016 – 20353. PUCN approval will be requested for two new

100 MW PV contracts and required transmission network upgrades.

Nevada Power Company 2015 IRP

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1. 2013 IRP filed July 1, 2013 (Docket 13-07005)2. Planning period: 2014 – 20333. Requested approval for new transmission projects

Sierra Pacific Power Company Integrated Resource Plan (IRP) Status

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Bordertown to Cal Sub 120 kV Line1. The project was approved by the PUCN in 2007 and includes

the construction of a 345/120 kV transformer at Bordertown Substation and a new 120 kV line from Bordertown substation to California Substation.

2. Project would provide additional transmission support to the West Reno transmission system for outages of a North Valley Road transformer and N-1-1 outages of the 120 kV transmission system.

3. To date Sierra has not obtained the required permits for this line and permitting work is continuing. The in-service date for this project has been moved from 2012 to 2017.

Sierra IRP Project Status Cont.

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345 KV Voltage Support Project

Add 75 MVA 345 kV capacitor bank at North Valley Road substation and Mira Loma substation

Mira Loma in service date is December 2013 Valley Road in service date is April 2014

Sierra IRP Project Status Cont.

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Hycroft Mine Load Addition / Oreana Substation

Project scope has been revised to including a new 345 kV switching station at Oreana and a 345 kV transmission line to Hycroft.

Sierra IRP Project Status Cont.

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Carlin Trend Master Plan

Carlin Trend Under Voltage Load Shedding Scheme Second Falcon 345/120 kV Transformer Coyote Creek 120 kV Breaker Addition Carlin Trend Transmission Additions

Sierra IRP Project Status Cont.

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New Generators Connected-Last 5 Years Generators Under Contact (not Suspended) Generators in Study

Generator Interconnection Update

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Generation Projects Connected to NVE’s System over the last 5 years

Company ID Point of Interconnection MW Type In-Service DateBK Dun Glen 120 kV Switching Station 51 Geo 11/18/2009CP Bannock 120 kV Switching Station 31 Geo 8/30/2011AS Humboldt 120 Substation 49 Geo 11/8/201175 Gypsum 1208 12.47 kV Line 9.34 Bio 11/15/201191 NSO 230 kV Substation 55 PV 12/15/2011

CY2 Purgatory Substation 16 Geo 12/15/2011DQ, FN Crook Road 60 kV Switching Station 22 PV 12/21/2011

ED Patrick 226 Line 3.2 Bio 1/24/2012DK Frontier Substation 230 kV 65 Geo 4/13/2012

BJ Osceola Substation 149.1 Wind 6/1/201277 Twin Buttes 69kV Switching Station 20 PV 6/19/2012CS Anaconda Moly 230 kV Substation 110 Sol. Ther. 2/13/201376 Treeline Switching Station 5 PV 2/14/2013

72, 89 Pabco Substation 30 PV 5/7/2013DS Eagle 120 kV Substation 72 Geo 9/29/2013EW Excelsior 120kV Switching Station 22 Geo 11/1/2013106 Gypsum 138 kV Substation 20 PV 11/9/201367 Gas Pipeline 69kV Switching Station 17.5 PV 12/1/2014FQ Frontier 230 kV Switching station 38 Geo 12/12/2014FS Ft Churchill 60 kV Substation 19.89 PV 2/15/2015

Total 805.03

Projects Connected to our system over the last 5 years

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Generation Projects under contract

Company ID Point of Interconnection MW Type In-Service DateFV Excelsior 120kV Switching Station 22 Geo 12/1/2015129 Nevada Solar One 230 kV Sub 100 PV 5/1/2016ET Proposed Alpine 230 kV Switching Station 38.5 Geo 7/1/2016FW Table Mountain Switching Station 50 PV 8/1/2016

114/115/116 Harry Allen 230 kV Sub 200 PV 9/1/201659, 64, 82 Nevada Solar One 230 kV Sub 101 PV 10/15/2016

FX Salt Wells 230 kV Switching Station 20 PV 10/31/2016EU Bannock 120 kV switching station 35 PV 11/1/2016DZ Oreana 345 kV Sub 64.7 Geo 3/1/2017

FUProposed Middlgate 230 kV Switching

Station 38.5 Geo 7/7/2017FK Robinson Summit 345 kV Sub 200 Wind 10/1/2018

Total 869.7

Contracted Projects (not in Suspension)

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NVE has two cluster windows annually◦ Closing dates: March 31st and September 30th

Fall 2014 Cluster #3—Generation Projects connecting into Harry Allen◦ In the middle of the Facilities Study ◦ Due by July 16th

Spring 2015 Cluster #4◦ 5 separate clusters—2 South, 3 North◦ In the middle of the System Impact Study◦ Due by July 30th

Update on the Generator Interconnection Cluster Studies

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Stakeholder Input- Questions