NV EnergyCommunity Roundtable

Carson City, NVMarch 28, 2011

A Glimpse Into Your Energy Future

Mary SimmonsVice President External Strategy

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Safe, Reliable Energy at Reasonable Prices

• Three part strategy for resource portfolioo Energy efficiency and conservationo Renewable energyo Transmission and efficient generation

• Operating efficiencies and effectiveness

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Pricing History

• Change in strategy and policy since 2004

• Steady decreases since January 2009• Rates now comparable to 2004/05

prices• Regional comparison

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Future Strategies

• One Nevada transmission line (ON Line)

• NV Energize

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One Nevada Transmission Line (ON Line)

• Joint project between NV Energy and Great Basin Transmission

• 235 mile, 500 kv transmission line connecting northern and southern Nevada

• Estimated cost - $510 million• Expected in service - 20126

ON Line Benefits

• Provides access to isolated renewable energy resources

• Enables development of renewable energy projects throughout the State

• Enhances energy sharing efficiencies for NV Energy power generation resources

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Providing Nevada Jobs and Local Opportunities

• 400 workers employed at peak constructiono Transmission line crewso Substation construction workerso Communicationso Inspection and environmental

compliance

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NVEnergize

Brian CostelloRegional Operations Director

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Creating an Energy Smart Future

• NV Energy awarded $138 million grant by U.S. Department of Energy to implement a smart grid/smart meter project

• We’re calling the project NVEnergize• Total project cost = $300 million• Improve energy infrastructure, upgrade

company operations, and enhance customer service capability

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NVEnergize Basics

• Installation of digital meters• Two-way communications

equipment• Smart Grid Technology• Expanded customer service and

program choices

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Meters are Accurate

• Three tests confirm this1. Manufacturer tests all meters2. NV Energy tests sample meters3. University of Nevada, Reno conducted

independent lab tests• NV Energy will read meters manually

and remotely for a period of time

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Other NVEnergize Benefits

• Operational savings• Better management of energy supply

needs• Security controls are among best in

industry

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Installation Schedule

• Began testing and installing meters in southern Nevada in September 2010

• More than 100,000 meters deployed• Meter installation in northern Nevada to

begin in December 2011• Approximately 1.4 million meters installed

throughout Nevada by end of 2012

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NV Energy’s Renewable Energy ProgramJack McGinleyDirector of Regulatory and Legislative Strategy

Renewable Resource Portfolio

• Geothermalo Mainstay – began in 1986o Portfolio growing

• Solaro Large and small scale PVo Thermal plants

• Windo Projects in northern and eastern NV

• Othero Biomass, hydro and heat recovery

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Status of Renewable Portfolio

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Renewables Portfolio44 Projects Total over 1,240 MW

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Examples of Recent Renewable Projects

• Waste heat recovery• Solar thermal• Integrated solar combined cycle• Solar photovoltaics (PV)

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Acciona’s 64 MW Nevada Solar One Concentrating Solar Power Plant

(Located in Boulder City)

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Renewable Generations

John HargroveEnergy Efficiency Program Manager

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Program History

• 2003 – Nevada State legislation encourages NV Energy customers to install solar photovoltaic systems

• 2004 – Solar Generations program launched • 2007 – Solar program made permanent,

nearly doubling size from 1,900 kw to 3,760 kw and adding hydro and wind

• New – Solar Hot Water incentive program23

Current Results

• Renewable Generations has reached the milestone of 10 megawatts of customer generation installed o 10 megawatts = electricity use of 1,743 average

American homeso Environmental impact = reduced CO2 emissions

equivalent to 1,615,666 gallons of car gasoline• Over $40.5 million in rebates paid 24

Renewable Generations

• Solar Generationso Over 26 mw of solar PV pending installation in

2011• Solar Hot Water Incentives

o Rebates to small businesses, schools and public buildings

• Solar incentive program under review by Nevada State Legislature and may open again for applications in 2011

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SolarGenerationsCCSD West Career & Technical Academy– System: 48.404 kW– Location: Las Vegas, NV

Wind Generations

• Currently a demonstration program and being reviewed by the Nevada State Legislature. May open again for applications in 2011

• Over 11 mw of wind projects pending installation in 2011

• The Wind Generations program is closed and all available capacity is reserved

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WindGenerationsLargest WindGenerations Project Washoe Valley

• Size: 25 kW

• Rebate: $75,000

Hydro Generations

• 595 kw in agricultural hydro projects pending installation in 2011

• Hydro Generations incentive program currently open to agricultural customers and accepting applications

• Hydro Generations currently being reviewed by the Nevada State Legislature and may open again for applications in 2011

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Hydro Generations

• HydroGenerations 1st Complete Project • Young Brothers Ranch - Austin, NV• Size: 93 kW Hydro System • Rebate: $232,500 Rebate

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Demonstration Trailers

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New Demonstrations Trailers

Demonstration trailers include solar and wind generating systems and will be used at community events throughout the state to demonstrate renewable energy options and to promote the availability and success of NV Energy’s RenewableGenerations incentive program.

Energy Efficiency and Conservation

Tim KierszEnergy Education Team Leader

Lower Your Bill – Improve the Environment

• Top energy users in home:o Air conditioner/electric heato Spaso Water heatero Large applianceso Lights

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Residential Programs

• ENERGY STAR Lightingo Direct incentives to customers

• Refrigerator Recyclingo $30 to recycle old refrigerators in working

condition • Comfort Savings

o Free weatherization program for income qualified families

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Commercial Programs

• Commercial Incentive Programo Offers incentives to businesses in the following

areas:• Commercial, industrial and institutional

customer projects in existing buildings• Agricultural irrigation• New construction projects• Schools

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Conservation Program Contact Information

• NV Energy.com• 775-834-0810

The most environmentally friendly kilowatt is the one never used

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Electric Vehicle Technology

Travis JohnsonElectric Transportation Program Manager

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Does a Plug-in Electric Vehicle Make a Difference?

o Energy for internal combustion engines and hybrids comes from gasoline

o Plug-in electric vehicles get their energy from the electric grid which uses no petroleum in Nevada

o Plugging in results in lower overall emissions and uses domestically produced, lower cost energy

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Where Does U.S. Electrical Energy Come From?

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o NV Energy uses roughly:o 65% to 70%

natural gaso 20% coalo Renewables

What About Power Plant Emissions?

• Driving an electric vehicle reduces C02 emissions by roughly 50%

• Urban air quality improves because emissions are lower and further removed from population centers.

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How Many Electric Cars Can our Power Grid Handle?

• If NV Energy customers plug their electric cars in at night, the electric grid can handle over 1,000,000 vehicles without significant infrastructure improvements

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Will Electric Cars be Available and Affordable?

• All major auto makers are now making electric vehicles

• There are at least 15 models coming by 2012/2013

• Battery prices are falling and EV cost should be competitive with gasoline powered cars in just a few years without tax credits

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How Far Can They Go?

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Battery Electric (BEV)• 73 to 100 mile range per charge• Does not use gasoline • Good for average commuter• Very low maintenance

Extended Range EV• 40 mi. electric, then 300 mi. gas• Gas extends range beyond 40 mi.• Best for long commutes• Typical maintenance (oil, filter, etc.)

How Much Will My Power Bill Increase?

• Vehicles like the Nissan Leaf, Ford Focus EV, and the Chevy Volt can drive roughly 3 miles per kWh.

• Driving 1,000 miles per month would use 333 kWh which currently costs approximately $37 ($25 with the EV TOU rate)

• A 25 MPG car using $3 gas costs $120 for 1,000 miles

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How Long Will the Battery Last?

• Nissan and GM offer an 8-year, 100,000 warranty for the battery on the Leaf and Volt.

• Most common battery replacement will be on a cell levelo A few cells may require replacement,

not the entire pack.

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Economic Development

Brad WoodringEconomic Development Manager

Leaders in Nevada’s Economic Recovery

• Promote local, regional, and state economic development

• Aggressively recruit companies to Nevada• Collaborate with partners in strategic

planning efforts• Develop and maintain information and

databases for potential clients

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Nurture Relationships that Promote Nevada

• Create and maintain relationships with decision makers of major corporations, professional site selectors, corporate asset managers, and commercial brokers

• Participate in professional site selection organizations

• Attend industry conferences and trade shows

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Recruiting New Business

• Develop leads with site selectors and company contacts

• Utilize lead generation organizations and databases

• Recruiting trips to specific markets• Target companies with Nevada

industry sectors49

Partnering to Attract, Expand, Retain, and Grow Business

• Nevada Commission on Economic Development (NCED)

• Local economic development authorities• City Councils and County Commissions• University and community college

systems• Nevadaworks and Job Connect

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Commitment to Nevada Communities

Karen RossCommunity Relations Manager

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Employees Who Make a Big Difference

• Setting the standard for employee volunteer programs

• Over 24,000 employee volunteer hours in 2010

• One of the largest United Way contributors in Nevada

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Enduring Partnerships

• NV Energy Foundationo Over $4 million in shareholder funded grants to

501(c)(3) nonprofits in 2010• Scholarship programs

o $238,000 in 2010• Education program support

o $1,042,050 in 2010o Intern programs

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Creating a More Sustainable Tomorrow

• Renewable energy program supporto Over $2 million funded by NV Energy

shareholders since 2007• Statewide energy assistance expos

o Five eventso 5,200 customers attendedo Distributed $446,496 in utility bill

assistance54

Wrap Up

Mary Simmons

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We Want to Hear From You

• Questions?• What are the most urgent issues

facing your region and community?• How can NV Energy partner with you

for a stronger Nevada? • Survey

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