NV Energy Energy Imbalance Market (EIM) Presentation to ISAS April 22, 2015 Left picture Cresent Dunes Solar – 110 MW owned by Solar Reserve. Concentrated solar power with thermal energy storage (molten salt) located near Tonopah Center picture – LV strip – Bellagio Right picture – on line

EIM Footprint Existing Market in CAISO PacifiCorp joined in Fall 2014 NV Energy to join in Fall 2015

Energy Imbalance Market Update November 2013: Announced plan to join CAISO EIM August 2014: Received PUCN Approval Amendment to Transmission Tariff to participate in EIM August 2014 – January 2015: Stakeholder workshops and tariff comments February 2015: Finalize tariff revisions and FERC pre-filing meetings March 2015: File tariff revisions with the FERC July – September: Stakeholder Training Biweekly meetings with PUCN and BCP staff through implementation

Energy Imbalance Market Update Con’t. Technical Milestones September 2014 - February 2015: Model NV Energy system into the CAISO system model, designate “Participating Resources”, and develop applications and test plans April - June 2015: Testing, early connectivity, and early market simulation June – July 2015: Training Sessions – if you or your colleagues wish to receive email notices, please send contact information to: NVE-EIM-Stakeholder@nvenergy.com September 2015: Parallel non-binding operation OCTOBER 2015: MARKET OPERATION GO-LIVE

EIM Advantages Increased Reliability – more tools and modeling to provide operational awareness across a larger (EIM) footprint increasing reliability Improved Renewable Integration – Helps integrate renewable resources by capturing the benefits of longitudinal / geographic diversity. Cost Savings – Energy Imbalances served from a much larger pool of least cost resources. Re- dispatched every five minutes.

Variable Generation penetration in the West VERs are a growing portion of generation portfolios Increasing due to: State renewable requirements No fuel costs Environmental impacts Publicly accepted System/load geography Rooftop solar Tax credits

Variable Generation Integration Solar/Wind

Terminology Market Operator EIM Entity Participating Resource Operates the market model, produces dispatches EIM Entity BAA that allows EIM to operate in their footprint Participating Resource Generator that bids energy into the market Non-Participating Resources Resources within the BA not submitting bids Scheduling Coordinator Interfaces with Market Operator (EESC and PRSC) Data Schedules and forecasts System model Outages Dispatch instructions RTM: Real-Time Market RTD: Real-Time Dispatch RTUC (RTPD): Real-Time Pre-Dispatch

EIM Process Overview EIM 15-Minute Market Economic Bids Generation Forecast Interchange Forecast Load Forecast Outages Economic Bids

EIM Process Overview EIM 15-Minute Market Awarded Schedule

EIM Process Overview EIM 5-Minute Market Economic Bids Updates to Generation Forecast Interchange Forecast Load Forecast Outages Economic Bids State Estimator

Operational Overview Expansion of CAISO’s current 5 minute market Security Constrained Economic Dispatch (SCED) Congestion management Network model visibility and increased outage accuracy in CAISO as well as NV Energy systems Increased modeling and outage details for modeling purposes lead to increased situational awareness

Base Schedule data flow

Responsibilities: Other Load Serving Entities (LSEs) – Non-NV Energy Forecast / Resources Base Schedules Note that currently all participating resources are NV Energy units –additional participating units are welcome. If interested please email NVE-EIM-Stakeholder@nvenergy.com for more information.

Base Schedule Background What A forward energy schedule Includes hourly forecasts of load, generation schedules, and Inter-tie schedules Why It communicates the hourly planned operation for participating resources, non-participating resources, imports, exports, and load Represents a financially binding starting point in the real-time market When Day-ahead is prior to 10:00 am ppt the day before the operating hour Real-time - 75 minutes prior to the start of the operating hour

Base Schedules Entity must come to the market balanced Base Schedule (G + I = L) (feasibility check) Forecast of Generation Forecast of Interchange Forecast of Load Submitted by all customers to EIM Entity Data aggregated and validated by NV Energy Entity (NV Energy) retains all BAA responsibilities

Base Schedule Details An EIM base schedule is a forward looking energy schedule. It includes hourly forecasts of load, hourly generation schedules, and hourly inter-tie schedules Base schedules are used to balance load and generation in our Balancing Authority (BA) Base Schedules are also used as a baseline for settlements

Base Schedule Details, Con’t. Day Ahead Market opens 7 days before the Operating Day Day Ahead Market closes at 10:00 pm ppt before the Operating Day, and used as baseline for real-time market Base schedules must be submitted for both Participating and non-participating resources Can be modified by 75 minutes before the operating hour. EIM entity then has 2 opportunities for adjustment.

Base Schedules, Load and Bid Range

Redispatch

Timeline leading up to Operating Hour

Security Events and Outages Currently made public on OASIS Under EIM, outage forms will be completed in NV Energy’s outage management system in real-time Outages will be posted on OASIS and communicated to CAISO within 30 minutes Outages will be reflected in market results for congestion, EIM dispatches, and settlements

Settlements Overview Three settlement processes with the EIM CAISO to EIM Participating Resource/Participating Intertie Settlement CAISO to EIM Entity (BA) Settlement which includes all load and nonparticipating resources and interties BA settling with all entities within their region

Settlements & Invoicing Timeline CAISO NV Energy – EIM Entity Scheduling Coordinator Daily Settlement Statement T+3B Recalculation Settlement Statement T+12B Recalculation Settlement Statement T+55B Recalculation Settlement Statement – T+12B Recalculation Settlement Statement T+55B Invoices EESC Payment advices to PR Trading days Monday - Sunday plus recalcs Every Wednesday Invoice Transmission Customers OATT Section 7.1 amended to enable billing more frequently than once per month

Dispute Timeline Statement Publication Settlement Dispute Deadline Data T+12B T+26B All but ESQMD T+55B T+77B All T+9M (T+194B) T+10M (T+216B) Incremental Changes Only Note that Section 7.1 of OATT provides for the flexibility to expedite billing of EIM settlements to better match CAISO’s dispute resolution timeline.

Questions For notification of EIM related postings on OASIS, please email your contact information to NVE-EIM-Stakeholder@nvenergy.com