1. Reno, NV June 26, 2015 1

2.  Agenda 1. Regulatory Filings Update 2. Integrated Resource Plan Update ◦ SB 123- NVision 3. Generator Interconnection Updates 4. Stakeholder Input 2

3. 3 Regulatory Filings Update  One Company Rate Case  FERC Order 1000  Energy Imbalance Market

4.  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. 4

5.  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 5

6.  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 6

7.  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. 7

8.  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. 8

9.  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. 9

10.  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. 10

11. 11 Integrated Resource Plan (IRP) Status

12. 12 HOT WEATHER ENERGYPCTPEAKPCTPEAKPCT Year(GWH)GROWTH(MW)GROWTH(MW)GROWTH 201221,8565,571 201321,9170.3%5,6301.1% 201422,0980.8%5,594-0.6% 201521,868-1.0%5,5990.1%5,836 201621,8790.1%5,6480.9%5,8870.9% 201722,0390.7%5,6920.8%5,9330.8% 201822,1980.7%5,7300.7%5,9730.7% 201922,3220.6%5,7460.3%5,9890.3% 202022,3930.3%5,7770.5%6,0220.6% 202122,5320.6%5,8150.7%6,0610.6% 202222,7551.0%5,8781.1%6,1271.1% 202322,9530.9%5,9300.9%6,1810.9% 202423,1600.9%5,9850.9%6,2380.9% 202523,3300.7%6,0340.8%6,2900.8% Note: All historical numbers are weather normalized. Forecast Source: 2015 Integrates Resource Plan Forecast to be filed with the PUCN on July 1, 2015.

13. 13 HOT WEATHER ENERGYPCTPEAKPCTPEAKPCT Year(GWH)GROWTH(MW)GROWTH(MW)GROWTH 20128,9491,621 20139,2022.8%1,7176.0% 20149,2800.8%1,711-0.4% 20159,164-1.2%1,704-0.4%1,770 20169,3782.3%1,7351.8%1,8021.8% 20179,5902.3%1,7581.3%1,8261.3% 201810,0014.3%1,8002.4%1,8692.4% 20199,834-1.7%1,744-3.1%1,811-3.1% 20209,688-1.5%1,7560.7%1,8240.7% 20219,7730.9%1,7741.0%1,8421.0% 20229,8590.9%1,7911.0%1,8601.0% 20239,241-6.3%1,663-7.1%1,727-7.2% 20248,847-4.3%1,6791.0%1,7441.0% 20258,9210.8%1,6961.0%1,7611.0% Note: All historical numbers are weather normalized. WN peaks subject to change. Forecast Source: 2013 IRP 1st Amendment Forecast to be filed with the PUCN on August 15, 2015.

14. 14 2015 PEAKS AS OF 6/21/2015 RECORDEDFORECAST Daily Temperatures 20-yr Average Temps (MW)DateHourMaximumMinimum(MW)MaximumMinimum South5,4166/20/20156:00 PM11380 5,599112.387.3 North1,4987/17/20155:00 PM9556 1,704101.464.1

15. 1. 2012 IRP filed June 2012 (Docket 12-06053) 2. Planning period: 2013 – 2032 3. 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. 15

16.  “ 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% 16

17.  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 Transformer 2.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. 17

18. 1. NPC 2015 IRP will be filed July 1, 2015 2. Planning period: 2016 – 2035 3. PUCN approval will be requested for two new 100 MW PV contracts and required transmission network upgrades. 18

19. 1. 2013 IRP filed July 1, 2013 (Docket 13-07005) 2. Planning period: 2014 – 2033 3. Requested approval for new transmission projects 19

20. Bordertown to Cal Sub 120 kV Line 1.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. 20

21. 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 21

22. 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. 22

23. 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 23

24.  New Generators Connected-Last 5 Years  Generators Under Contact (not Suspended)  Generators in Study 24

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27.  NVE has two cluster windows annually ◦ Closing dates: March 31 st and September 30 th  Fall 2014 Cluster #3—Generation Projects connecting into Harry Allen ◦ In the middle of the Facilities Study ◦ Due by July 16 th  Spring 2015 Cluster #4 ◦ 5 separate clusters—2 South, 3 North ◦ In the middle of the System Impact Study ◦ Due by July 30 th 27

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