Sierra Subregional Planning Group 10-year Transmission Plan 2011- 2020 New Projects Projects In-process Deferred Projects West Connect Annual Stakeholders Meeting, February 17, 2011, Las Vegas, NV

NV Energy 10-year Transmission Plan 2011 - 2020 New Projects Projects In-process Deferred Projects West Connect Annual Stakeholders Meeting, February 17, 2011, Las Vegas, NV

New Transmission Projects Joint ON Line [Financial close 2-11-11] 230 kV Shunt Reactors [Completed] Harry Allen 345/230 kV Transformer Bank 2 Harry Allen – Northwest 500 kV Line Permitting Northwest - Amargosa 500 & 230 kV Permitting Harry Allen – El Dorado 500 kV Line Permitting

In-Process Transmission Projects Northwest 2nd 500/230 kV Transformer Mohave Decommissioning Requirements Harry Allen Combined Cycle Interconnection Carson Lake 230 kV Bordertown 345/120 kV transformer VEA Interconnection @ Northwest EEI STEP Autotransformer Project Westconnect

Deferred Transmission Projects Sunrise 500 kV Tap VARs Thunderbird Substation Blackhawk Substation

ON Line Construct ON Line flow ~ 600 MW SPPC to NPC 235-mile 500 kV transmission line Robinson-Harry Allen Robinson Summit 500/345 kV substation Falcon-Gonder Fold Add 70% series compensation: 35% at Falcon and 35% at Robinson Harry Allen Terminal ON Line flow ~ 600 MW SPPC to NPC ~ 600 MW NPC to SPPC Total Project estimate $509.6M $14.7M in 2010 $217.6M in 2011 $262.5M in 2012

230 kV Shunt Reactors Three 100 MVAR shunt reactors Decatur Equestrian Magnolia Required due to high voltage on the transmission lines during light loads  Off-peak voltages are at 242 kV limit for 230 kV- class equipment, reactors are needed to prevent damage $9.2M in 2010

Harry Allen 345/230 kV Transformer Bank 2 PacifiCorp has submitted a request to Nevada Power for the addition of a second 345/230 kV transformer at Nevada Power’s Harry Allen Substation. The project is under construction, ISD: 6/15/2011. With its installation, TOT 2C (WECC Path 35) rating will increase to 400 MW N-S and 580 MW S-N. Used to serve load in Red Butte, Utah. The Red Butte load is primarily served by the Utah Associated Municipal Power Systems (“UAMPS”), which is in the PacifiCorp Balancing Authority Area. PACE to pay project costs

Harry Allen – Northwest 500 kV This Project is the permitting & acquisition of a 500 kV line ROW Harry Allen to Northwest Substation This route is needed to eliminate the 2x1500 MW transformer (2014+) loss under a Lenzie – NW 500 kV outage.  This parallel line would mitigate this N-1 substantially and thereby delay expensive upgrades. This project is the permitting & acquisition of 230/500 kV line ROW from Northwest Substation into the Amargosa Valley  This line would also enable the delivery of high levels of solar from the Amargosa Valley via the NW sub, reinforce NW substation for a west side 500 kV line,  and remove the need to build through Pahrump to second source NW sub (a 160 mile 500 kV detour) This Project is the permitting and acquisition of a 500 kV line right-of-way from Harry Allen Substation to El Dorado Substation NV Energy was directed to re-submit request after further development. Northwest - Amargosa 500 & 230 kV Harry Allen – El Dorado 500 kV

Northwest 500/230 kV Bank 2 Delay Studies in 2006 indicated a 2010 need for a second Northwest 500/230 kV transformer to meet projected load growth in the Las Vegas Valley. Postponed until 2014+, using RAS with Gen trip and 500 -> 230kV flow redirection through Crystal PSTs. Projected “flat” load growth in the Las Vegas Valley allows this postponement.

Carson Lake 230 kV New 230 kV, 30 mile line to interconnect ~150 MW of new geothermal resources and provide a second source to Fallon, Nevada. Approved in 2007 with a 2013 COD. Estimated budget is 35.0 M

Bordertown 345/120 kV transformer New 345/120 kV, 280 MVA transformer and ~15 miles of 120 kV line to provide additional capacity to west Reno and Lake Tahoe. Approved in 2007 with a 2012 COD. Has been delayed to 2014 by permitting Estimated budget is 20.4M

Mohave 500 kV Modifications The owners of the Mohave Generating Station are decommissioning the facility and removing the existing Mohave 13.8 kV reserve bus. The bulk of the existing Mohave 500kV facilities will remain. The existing 69/13.8/500 kV interconnection has acted as a second source for the Nevada Power transmission system with a peak backup capacity of 50 MVA. When the reserve bus is removed, Nevada Power will need a second service point to maintain reliability. New 2 span 500 kV line required.

Harry Allen Combined Cycle 500 kV Transmission work required to interconnect the 489 MW HA CC to the Harry Allen 500 kV Substation. Including the transmission line about 0.5 miles The new 500 kV line terminal at Harry Allen The relocation of the APEX line terminal at Harry Allen. June 1, 2011 expected HACC COD

Valley Electric Association Interconnection VEA has submitted an interconnection request to Nevada Power for the interconnection of the VEA’s Sterling 230 kV substation to Nevada Power’s Northwest 230 kV substation. The interconnection will allow VEA to meet NERC voltage reliability requirements during N-1 contingencies. The transmission line is proposed to be forty-two (42) miles long, energized at 230 kV and utilize 954-ACSR. The VEA interconnection project was approved by the Commission in the 2006 IRP.

EEI STEP Transformer Sharing Program The Commission approved $4.5M in funding for the EEI Step Transformer Sharing Program in Amendment Four of the 2006 IRP. $1.5M was spent prior to 2010. Nevada Power is requesting the Commission to authorize Nevada Power to spend $4.0 M in Action Plan Period 2010-12.

Westconnect Nevada Power has been authorized by the Public Utilities Commission to fund its participation in WestConnect during the 2009 IRP Action Plan Period. Nevada Power participates in the WestConnect Steering Committee and Transmission Planning Committee. Sierra Pacific Power has been authorized by the Public Utilities Commission to fund its participation in WestConnect during the 2009 IRP Action Plan Period. Sierra Pacific Power participates in the WestConnect Steering Committee and Transmission Planning Committee.

Sunrise 500 kV Tap Thunderbird 230 KV Sub Blackhawk 345 kV KV Sub The Commission has approved about $12.8M dollars for Sunrise Tap lands only: for the 500/230 kV substation and 230 kV ROWs. Sunrise has been deferred until 2018 Thunderbird 230 KV Sub The Commission approved about $54.1M in the 2006 IRP for Thunderbird (lands and construction) only about $1M has been spent to date. Thunderbird has been deferred until about 2017 and will likely be deferred longer if the load forecast remains flat. Blackhawk 345 kV KV Sub The Commission approved $29.8M in the 2004 IRP for Blackhawk Substation. Blackhawk has been indefinitely deferred and will likely be driven by renewable development if it goes forward.

Renewable Energy Conceptual Transmission Plan (“RECTP”) Required by Assembly Bill 387 Regulated under PUCN Docket 09-07010 Identifies transmission plans and costs to access RETAAC/PUCN approved renewable energy zones Filed in each NV Energy triennial Integrated Resource Plan First RECTP filing was July 1, 2010

New Projects PROPOSED PROJECTS Sierra Subregional Planning Group 10-year Transmission Plan 2011 - 2020 New Projects PROPOSED PROJECTS West Connect Annual Stakeholders Meeting, February 17, 2011, Las Vegas, NV

New Transmission Projects O'Banion – Elverta/Natomas 230 kV Double Circuit Line Joint Project with WAPA Scheduled for Completion May 2011 230 kV Shunt Capacitor at Natomas (50 MVAR) Scheduled for Completion June 2011

Proposed Transmission Projects Convert Sutter – O’Banion 230 kV Line from Single to Double Circuit 200 MVAR 230 kV Shunt Caps Power Factor Improvement Program Iowa Hill Pumped Storage Plant (400 MW)

New Projects PROPOSED PROJECTS Sierra Subregional Planning Group 10-year Transmission Plan 2011 - 2020 New Projects PROPOSED PROJECTS WestConnect Annual Stakeholders Meeting, February 17, 2011, Las Vegas, NV

New Transmission Projects O'Banion – Elverta/Natomas 230 kV Double Circuit Line Joint Project with SMUD Scheduled for Completion May 2011 Upgrade Tracy Sub to DBDB Configuration Scheduled for Completion last quarter 2012 Reconductor Shasta - Flanagan – Keswick 230 kV Line Scheduled for Completion June 2014

Proposed Transmission Projects Convert Sutter – O’Banion 230 kV Line from Single to Double Circuit Fiber Optic addition to Hedge – Tracy 230 kV line Reconductor the Elverta – Tracy 230 kV lines