NEVP and SPPC Balancing Area Integration WECC Schedulers Conference May 15, 2014

1. NEVP and SPPC Balancing Area Integration WECC Schedulers Conference May 15, 2014

2. Corporate Structure: • NV Energy, Inc. is a wholly owned subsidiary of Berkshire Hathaway Energy Holdings Company • Acquisition completed in late December 2013 • NV Energy’s chief operating subsidiaries are each d/b/a NV Energy: • Nevada Power Company (“NEVP”) ~ 6600 MW Peak BA Load • Sierra Pacific Power Company (“SPPC”) ~ 2200 MW Peak BA Load • NV Energy’s subsidiary utilities together serve approximately 1.2 million electric customers. Slide 2

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5. Control Centers • Each Entity maintains a Primary and Backup Control Center for the performance of TOP and Distribution Operations functions. • NEVP T&D Control Center Operations moved to a new primary Control Center (Beltway Complex) in late 2009. The Backup Control Center moved from the main corporate office to the Ryan Center in North Las Vegas. Slide 5

6. Control Center Functions • BA Functions • The NEVP and SPPC Balancing Authority Area Operations have been performed in the Reno Primary Control Center since 2005 and include the following services: • Load/Generation Balancing • Power Flow Control (Directs TOP to Operate Flow Control Devices) • Frequency Response • Time Error Correction • Automatic Generation Control • Inadvertent Interchange Management • Demand Side Load Management • No additional personnel were required for the recent BA integration. Slide 6

7. Control Center Functions(continued): • TOP Functions • NEVP and SPPC Transmission Operation functions are performed in the respective Control Centers and include: • Real-time Monitoring of Transmission System, Load Trends. • Management of Reactive Power and Voltage Schedules • Real-time Monitoring of System Operating Limits • Monitor Protective Relays Systems and Under Frequency Load Shedding • Outage Coordination (dedicated staff position) • Transmission & Sub-Transmission Switching • No Changes due to NEVP BA integration. Slide 7

8. Control Center Functions (continued): • Interchange Functions – conducted in Reno control center for NEVP: • Transmission Reservations • Transmission Scheduling • OASIS Management • ATC • Standards of Conduct • Outage Notification/Posting • Real-time Transaction Scheduling • No Functional Changes due to NEVP BA integration Slide 8

9. Balancing Services Provided • Effective 1/1/2014 NEVP, as a Balancing Authority, regulates for: • Lincoln County Power District • Overton Power District • Valley Electric Association (NNSS Only) • Colorado River Commission • Truckee Donner Public Utility District • City of Fallon • Mt Wheeler Power • BarrickGoldstrike Mines • Wells Rural Electric Association • Harney Electric Slide 9

10. Transmission Interconnection • 500kV Interconnecting transmission line completed construction in late November with commissioning of all substation equipment completed in December 2013. • “One Nevada Line” - ON Line stretches from the new Robinson Summit station in eastern Nevada to the existing southern Nevada Harry Allen station – referred to operationally as the “HA-RBS 500kV Line” • 12 Month delay in commissioning due to tower design issues. • Connection allows consolidated BA operation for the two entities Slide 10

11. The BA's mission is to maintain the balance between loads and resources in real time within its BA Area by keeping its actual interchange equal to its scheduled interchange and meeting its frequency bias obligation. Slide 11

12. Consolidation Activities • Cross Functional team representing BA, EMS, Interchange Scheduling, Outage Coordination and Network Engineering began work in early 2013 according to a managed work plan. (See following slides) • Coordination meetings with impacted neighboring BA’s and RC including Bi-weekly and weekly meetings to ensure readiness. • Reliability Coordination provided by Loveland Peak RC Slide 12

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14. NEVP Control Center utilizes an OSI Energy Management System (EMS) to perform Balancing Authority functions and tasks, including: • monitoring actual and scheduled interchange, • calculating ACE; • calculating CPS1 and CPS2; • determining Balancing Area Ace Limit (BAAL) • NEVP is a participant in the long-standing field trial • calculating DCS; • Cooperation with Northwest Power Pool • monitoring frequency; and • monitoring and requesting contingency reserves. Slide 14

15. The BA operates within the metered boundaries that establish the BA Area. Every generator, transmission facility, and end-use customer is in the defined Balancing Authority Area. • Metered boundaries of the consolidated BA are identical to those that existed prior to consolidation. Slide 15

16. NV Energy Interconnection Neighbors LADWP: Crystal 500 kV (part of EOR P-49) LADWP: McCullough 230 kV LADWP: Gonder 230kV SCE (CAISO BA): Mohave 500 kV SCE (CAISO BA): Eldorado 230 kV SCE (CAISO BA): Silver Peak 55kV PG&E (CAISO BA): Donner Summit 60/120kV PACE: Red Butte 345 kV PACE: Gonder 230kV IPC: Midpoint 345kV BPA: Hilltop 230kV WALC: Mead 500, 230 and 69 kV Slide 16

17. EMS Consolidation • Energy Management System implemented in November, 2010 consolidated transmission control, monitoring, and modeling into a single, redundant EMS • Prior to November 2013, operated two instances of AGC. • NEVP (South) • SPPC (North) • Beginning in November 2013, third instance of AGC implemented on online EMS. • Third instance of AGC named “NV Energy” • Allows for zonal control during HA – RBS 500kV line outage • Operators trained utilizing online tool during actual operations for nearly two months previous to cutover. Slide 17

18. The load-resource balance is measured by the BA's Area Control Error (ACE). NV Energy calculates area control error within the reliability area maintains its ACE within acceptable limits. Slide 18

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24. Reserve Sharing: • NEVP(effective January 1, 2014) • Retired as member of the Southwest Reserve Sharing Group. • Became a member of the Northwest Power Pool Reserve Sharing Group. • Automated Reserves are delivered and received at either of the Midpoint, Gonder, or Harry Allen 345kV interfaces. • Manual NWPP Reserves can be delivered at the Hilltop interface Slide 24

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26. NEVP maintains common restoration plan • NEVP and SPPC provided and received approval for separate restoration and testing plans to the WECC RC previous to the July 2013 Standard implementation. • Provided a combined plan and received approval from the WECC RC by November 2013. Slide 26

27. NEVP maintains Loss of Control Center Functionality Plan. • NEVP maintains a redundant EMS at diverse locations. • Operators are trained in the implementation of the plan. • The plan is tested annually Slide 27

28. Operator Training: The following training was identified as required, designed, developed, and delivered: • Restoration (Blackstart) Changes due to Consolidation of Balancing Authorities • HA-RBS 500kV line and BA Integration • HA-RBS 500kV Outage DTS Simulation Exercise • Loss of Control Center Functionality Updates • ON-Line Project updates (follow up) • Path 32 Rating Changes • Procedures Classification Updates • Real Power Balancing and Disturbance Control Performance Monitoring (AGC, Must Run, Reserve Sharing) • SEOP for consolidated BA (including manual load shed calculation updates) • Series Compensation and Effects Training and Follow-up Training • WECC COI Remedial Action Scheme and Open Loop • WebAccounting • Operational Changes for Southern Transmission Operators Slide 28

29. The CRT noted the following positive aspects that will enhance NEVP’s performance as a BA: 1. Improved Voltage Control in the NEVP Balancing Authority 2. Certified Operator control of one Balancing Authority as opposed to two Certified Operators operating separate Balancing Authorities 3. Coordination that was performed with each adjacent BA 4. Request for suggestions from an entity that previously went through a Review prior to starting the project 5. Commitment that NEVP has to its operators and the tools they have to perform their job function 6. Gantt project chart that holds each project manager responsible for completion of their assigned tasks Slide 29

30. Certification Team Determinations Items that Required Completion At the conclusion of the site visit, it was determined that there were no items that required completion prior to the certification review approval of NEVP as a BA. Findings No findings which would prevent NEVP to continue as a NERC-certified BA were identified by the CRT as of the issuance of this Summary Report. Slide 30

31. Lessons Learned (not “Mistakes”) • Be aware of USLF programs and implications on schedule curtailments. • Accumulated inadvertent interchange MAY be an issue. • “Zonal” Calculations can be complicated • Be NICE to your neighbors. This change may have as big an effect on them as yourself. • CPS1 and CPS2 reporting calculations. • We may as well change our energy accounting program at the same time!!! Slide 31

32. Lessons Learned (not “Mistakes”) • BA integration occurred on January 1, 2014. • NEVP and SPPC audit periods ended in EARLY January. It is “Fun” to include in your RSAW narrative these significant changes to your BAA. We received our 90 day notice on January 7th and 17th. • We had our WECC BA Certification review in late January. • It is possible to shove 10 gallons of “stuff” in a 5 gallon bucket!!! Slide 32