!contact Filer Regarding Image Clarity! 

BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA 

Application of Nevada Power Company d/b/a NV Energy 

Seeking Acceptance of the First Amendment to its 2013-

2032 integrated resource plan and its Energy Supply Plan 

Update for 2015, which include an emissions reduction and 

capacity replacement plan filed pursuant to NRS § 704.7311 

et seq. 

VOLUME 3 OF 15 

Docket No. 14-05 

EMISSIONS REDUCTION AND CAPACITY REPLACEMENT PLAN 

SUMMARY 

DESCRIPTION PAGE NUMBER 

SUMMARY 2 
SUMMARY 
SECTION I- INTRODUCTION: NAC § 704.9215(2)(a) 

This Emissions Reduction and Capacity Replacement plan ("ERCR Plan") is filed by Nevada 

Power Company d/b/a NV Energy ("Nevada Power" or the "Company"). Nevada Power is a 

wholly-owned subsidiary of NV Energy, Inc. ("NVE"). NVE has two utility subsidiaries: 

Nevada Power and Sierra Pacific Power Company d/b/a NV Energy ("Sierra"). 

In preparing the ERCR filing, Nevada Power sought to develop a balanced plan, weighing a 

number of factors such as the effects on customers, resource diversity and economic benefits to 

the State of Nevada. The Company developed a strategy based on opportunistic acquisitions, 

looking first to the acquisition of existing resources in Nevada rather than the construction of 

new fossil-fuel fired units. The Company then sought opportunities that immediately advance the 

development of new renewable resources in Nevada and add construction jobs to the local 

economy upon approval by the Public Utilities Commission of Nevada (the "Commission"). The 

result is a cost-effective, orderly and structured plan. Under the plan, Nevada Power will retire or 

eliminate 812 MW of coal-fired generation over the next six years, acquire 496 MW of existing 

gas-fired generation needed to provide reliable service, construct 215 MW of new, companyowned solar facilities that add fuel diversity, issue three separate 100 MW requests for proposals 

("RFPs") for transaction with new renewable energy, and begin permitting of land in Clark 

County for new renewable energy facilities (the "Preferred Plan"). 

The purpose of this Summary Volume is to provide an overview of Nevada Power's ERCR Plan. 

This volume also describes how the plan fits into the broader Company strategic and planning 

requirements. Finally, this volume presents the Company's plan which outlines the specific 

approval requests ("Action Plan") for the Commission's consideration. 

A. EMISSIONS REDUCTION AND CAPACITY REPLACEMENT. 

Background. On June 11, 2013, Governor Brian Sandoval signed SB 123, marking the 

completion of a bi-partisan effort to change Nevada's energy landscape. 1 Sponsored by Senator 

Atkinson, Assemblywoman Kirkpatrick, and Assemblyman Bobzien, the legislation requires 

Nevada Power to prepare and file with the Commission an ERCR Plan. Section 704.7316 of the 

Nevada Revised Statutes ("NRS") prescribes the minimum elements of the ERCR Plan. 

NRS § 704. 7316(2)(a) provides for the retirement or elimination in three phases of not less than 

800 MW of coal-fired electric generating capacity. The first 300 MW of coal-fired generating 

capacity must be retired or eliminated on or before December 31, 2014, then 250 MW of coalfired generation on or before December 31, 2017, followed by 250 MW of coal-fired generation 

on or before December 31, 2019. 

1 Senate Bill 123 received unanimous support from Nevada's 11 Democratic and 10 Republican Senators. 

1 
NRS § 704.7316(2)(c) provides that retired or eliminated coal-fired generation is to be replaced 

by 550 MW of constructed or acquired generating capacity that is owned by Nevada Power. The 

fuel source for this 550 MW of owned generating capacity is not specified by the legislation. 

However, the legislation does require that this 550 MW of replacement generating capacity be 

constructed or acquired in an orderly and structured manner. 

NRS § 704.7316(2)(b) provides that retired or eliminated coal-fired generation is to be replaced 

by 350 MW of constructed, acquired or contracted for renewable energy resources. Nevada 

Power is required to issue three 100 MW RFPs from new renewable energy, on or before 

December 31, 2014, December 31, 2015 and December 31, 2016, respectively. Nevada Power 

must begin to construct or acquire 50 MW of new renewable energy resources on or before 

December 31, 2017. 

In 2013, the Legislature made the "choice to move our state forward by moving away from this 

form [coal] of production of energy." 2 According to Senator Atkinson, the legislation took "a 

distinct and bold new approach to the development of renewable energy for our State." 3 The 

legislation secured for Nevada a "bright future with clean energy production," helping the State 

contribute to "solutions for climate change." 4 At the same time, the statute was designed and 

intended to provide "jobs at a critical point in the emerging recovery ofNevada's economy." 5 In 

short, the legislation was intended to do what is "right for our environment, for the health of all 

Nevadans, and for our economy." 6 

Key Elements of Nevada Power's ERCR Plan. Nevada Power has developed a thoughtful and 

comprehensive approach to meeting the challenges of long-term resource planning while 

considering the requirements of the ERCR Plan. The Company's Preferred Plan was selected 

from four alternative plans (or "cases"), all of which met the ERCR Plan requirements. Nevada 

Power tested each of the four alternative plans against different assumptions for fuel prices, load 

growth, and carbon prices. The Preferred Plan provides a balanced, orderly and structured 

solution for customers with a present worth of revenue requirement ("PWRR") 0.008 percent of 

the case with the lowest PWRR (the construction of a single large natural gas-fired combined 

cycle power plant). The Preferred Plan maintains critical system diversity, and has immediate 

positive economic impacts on Nevada by advancing renewable energy and jobs in the state. The 

Preferred Plan meets the three main requirements of the ERCR Plan. 

2 See Assembly Journal at 241 ("This session we are making the choice to move our state forward by moving away 

from this form of production of energy.") (Statement of Assemblyman Bobzien). 3 See Senate Journal at 8 ("The bill also makes a distinct and bold new approach to the development of renewable 

energy for our State.") (Statement of Senator Atkinson). 4 See Assembly Journal 241 ("Nevada has a bright future with clean energy production and the finding of solutions 

for climate change.") (Statement of Assemblyman Bobzien). 5 See Senate Journal at 8 ("The bill requires NV Energy to take appropriate and necessary steps to develop 350 

megawatts of new renewable facilities, and provides construction jobs at a critical point in the emerging recovery of 

Nevada's economy.") (Statement of Senator Atkinson). 6 See Assembly Journal at 244 ("This is planning. This is getting ready for the future. This is what's right for our 

environment, for the health of all Nevadans, and for our economy."). 

2 
1. Retire or Eliminate at Least 800 MW of Coal Fired Generation 

Nevada Power must file with the Commission a plan for the retirement or elimination of at least 

800 MW of coal-fired generating facilities according to a defined schedule. All required 

retirements and eliminations must be completed before December 31, 2019. This ERCR Plan 

meets this requirement by proposing the following action as shown in Table S-1. 

TABLE S-1 

PROPOSED RETIREMENT OR ELIMINATION OF 

COAL-FIRED GENERATION CAPACITY7 

Unit Planning Retire or 

Capacity Eliminate 

Reid Gardner Generating 300MW Retire 

Station, Units 1, 2 & 3 

Reid Gardner Generating 257MW Retire 

Station, Unit 4 

Navajo Generating Station, 11.3 255MW Eliminate 

percent Ownership Interest 

Total Retired/Eliminated 812MW 

Planning Capacity 

Note: Retlre 1s to remove a umt permanently from serv1ce. 

Eliminate is to divest a utility's ownership interest in the facility. 

Date 

12/31/2014 

12/31/2017 

12/22/2019 

The details of the retirements, including schedules and costs for decommissioning, are described 

in the Generation Section beginning with the Supply Side Plan, Section 2.A.3. 

2. 550 MW of Replacement "Planning" Capacity 

Nevada Power developed a package of replacement generating units that adds company-owned 

capacity in an orderly and structured manner, and also provides fuel diversity. Equally important, 

instead of proposing construction of new gas-fired generating units, the package provides for the 

acquisition of existing units. As shown in Table S-2, the first addition of replacement capacity 

occurs on January 1, 2015, when Nevada Power plans to acquire the existing 224 MW Las Vegas 

Cogeneration ("LV Cogen") Unit 2. The next addition of replacement capacity occurs on June 1, 

2016, when an existing power purchase agreement ("PPA") terminates, and the existing 222 MW 

Sun-Peak Generating Unit becomes replacement capacity. Nevada Power adds the third element 

of the replacement capacity package in October 2016, when the 200 MW Moapa Solar Project 

(which provides 76 MW of planning capacity) is placed into service. The final element of the 

replacement capacity package involves the addition of 50 MW of incremental capacity in 

7 See Regulation Section 12, Para. 2. 

3 
October 2017, when Nevada Power's existing PPA with LV Cogen Unit 1 becomes replacement 

capacity. 

The Preferred Plan is cost effective, with lower capital costs than a single new combined-cycle 

generating unit. Moreover, the economics of the Preferred Plan are improved with the 

opportunity to obtain an Investment Tax Credit ("lTC") on two of the proposed investments that 

will reduce the overall cost of providing service. The Preferred Plan results in a 20-year present 

worth of revenue requirement ("PWRR") that under base assumptions is within 0.008 percent of 

the case with the lowest PWRR (the construction of a single large natural gas-fired combined 

cycle power plant). The package balances cost-effective acquisitions of existing natural gas 

resources with the environmental and economic objectives of SB 123 by also providing for the 

construction of a new 200 MW (nameplate rating, 76 MW planning capacity) solar photovoltaic 

("PV") facility. Table S-2 describes the replacement capacity package developed by Nevada 

Power. 

TABLE S-2 

COMPANY-OWNED REPLACEMENT CAPACITY 

(NON-TECHNOLOGY SPECIFIC)8 

Unit Timing of Planning Type of 

Replacement Capacity Capacity 

LV Cogen Unit 2 1/1/2015 224MW Intermediate 

Sun-Peak Generating 6/1/2016 222MW Peaking 

Unit 

Moapa Solar Generating 10/1/2016 76MW Intermittent 

Station 

LV Cogen Unit 1 10/1/2017 50MW Peaking 

Total Replacement 572MW 

Capacity 

Fuel Estimated 

Cost 

Natural $130.8m 

Gas 

Natural $15.8m 

Gas 

Solar $438.1m 9 

Natural $0.0 10 

Gas 

$584.7m 

Note: Planmng capacity refers to the amount of firm electnc generatmg capacity reqmred to meet Nevada Power's 

peak load and provide a planning reserve margin that is authorized by the Commission. With regard to the Moapa 

Solar Generating Station, the "nameplate" capacity is approximately 200 MW but a planning capacity of 76 MW. 

The details of the replacement capacity, including schedules and costs are described in Section 

IV of this Summary and Section 2.A.4. of the Supply Side Volume for LV Cogen Units 1 and 2, 

8 Nev. Rev. Stat. § 704.7361 (2)( c). Million is abbreviated to "m" and thousand is abbreviated to "k." 9 This estimate does not include an allowance for funds used during construction ("AFUDC"). 10 LV Cogen Unit 1 will be acquired as a package with LV Cogen Unit 2. 

4 
and Sun-Peak, and in Section V ofthis Summary and Section 2.D.6. of the Supply Side Plan the 

for the Moapa Solar Project. 

The transmission requirements associated with the Moapa Solar Project are described in the 

Supply Side Volume, Section 2.E. Because the Preferred Plan contains natural gas fired 

replacement capacity, the Company is proposing a fixed physical gas hedging strategy. The 

hedging strategy is explained in detail in the Energy Supply Plan filed with this ERCR Plan. 

3. 350 MW Renewable Replacement "Nameplate" Capacity 

Under the provisions of SB 123, Nevada Power is required to acquire or construct 50 MW of 

renewable resources and issue three 100 MW RFPs for renewable energy. The Company is 

seeking Commission approval to invest up to $54.5 million to build a 15 MW (alternating 

current) PV generating facility at Nellis Air Force Base. The Company will take appropriate 

steps to identify opportunities for another 35 MW or more. Proposals will be brought to the 

Commission for approval in an amendment. 

Nevada Power is also requesting Commission approval to issue three 100 MW RFPs (300 MW 

in total) for transactions with new renewable energy. The Company will follow the structure of 

its previous solicitation and contracting process used in securing renewable power purchase 

agreements ("PPAs"). The Company expects to receive additional guidance from the 

Commission as a result of continued rulemaking known as Phase 2 of Docket No. 13-06023. The 

Company anticipates that it will request interim approval of PPAs in an effort to allow projects 

eligible for an investment tax credit ("lTC") to meet a 2016 commercial operation date and to 

allow the Company to maintain schedule compliance with SB 123 requirements. 

5 
TABLE S-3 

RENEWABLE RFP ESTIMATED SCHEDULE 

RFP Schedule 300 MW 

EVENT 2014 2015 2016 

Release Public Notice 10/01/14 12/14/1511 11/15/16 

Initial Short List 01/13/15 02/11/16 01/24/17 

Final Short List 02/13/15 03/11/16 02/24/17 

Negotiations 03/30/15 04/22/16 04/07/17 

Management Approvals 04/30/15 05/23/16 05/08/17 

IRP (Amendment) Approval Filing 07/01/15 06/15/16 06/01/17 

PUCN Approval Timeline 12/28/15 10/28/16 10/13/17 

The details of the renewable PPAs, Nellis Solar Array II and Clark County site permitting for 

future renewables is described in the Supply Side Plan, Section 2.D. 

Analysis of Alternatives. Nevada Power considered four alternative plans to replacing coal-fired 

generating capacity that will be retired or eliminated pursuant to NRS § 704.7316. Specifically, 

Nevada Power considered replacing retired coal-fired generating capacity with: (1) a 597 MW 

combined-cycle generating unit in 2018 (Case A); (2) 568 MW of simple-cycle, peaking units in 

2018 (Case B); (3) a replacement package of diverse peaking (272 MW), intermediate (224 MW) 

and intermittent units (approximately 200 MW, or approximately 76 MW planning), which is the 

Company's Preferred Plan (Case C); and, (4) a modified replacement package of peaking (50 

MW), intermediate (224 MW) and intermittent units (700 MW nameplate, and 266 MW 

planning) (Case D). 

Table S-4 compares the Cases A, B, C, and D for the base load forecast, base fuel and purchase 

power forecast, and mid-carbon price forecast. 

11 NAC [Section 3] requires that the Company shall not accept proposals until the previous RFP is complete. 

Proposals would be accepted (due) in February 2016. 

6 
Case 

Case A 

Case B 

Case C 

CaseD 

TABLE S-4 

SUMMARY-BASE LOAD FORECAST WITH 

BASE FUEL AND PURCHASED POWER- MID CARBON ---- --- BASE WAD BASE FUEL Mid Carbon No Sales 

lOYear 20Year 30Year lOYear 20Year 30Year 

PWRR PWRR PWRR PWRR PWRR PWRR 

2015-2024 2015-2034 2015-2044 Increase Increase Increase 

vs Least Cost vs Least Cost vs Least Cost lOYear 

Description (million$) (million$) (million$) (million$) (million$) (million$) PWRRRank 

2xl CC 2018 ERCR $ 13,871 $ 24,199 $ 31,903 

CTs 2018 ERCR $ 13,935 $ 24,285 $ 31,999 63 $ 85 $ 96 

200 PV LVC SP ERCR $ 13,875 $ 24,201 $ 31,967 3 $ 2 $ 64 

200 PV LVC 500 PV $ 14,337 $ 24,724 $ ERCR 32,406 466 $ 525 $ 503 

20Year 30Year 

PWRRRank PWRRRank 

In an analysis of alternative plans, the Preferred Plan resulted in a 20-year PWRR that under base 

assumptions is within 0_008 percent of the case with the lowest PWRR (the construction of a 

single large natural gas-fired combined cycle power plant), and was the least cost plan in 6 of 12 

sensitivity scenarios_ 

Diversity Concerns. Diversification plays an important role in reducing risk related to price 

volatility and, consequently, cost With respect to electric generation, both capacity and fuel 

diversity are important 

Capacity diversity refers to the nature of a generating unit (~, baseload, intermediate, peaking 

and intermittent resources)_ Capacity diversity is important because it allows a utility to use the 

appropriate and most efficient "tool" for the "job_" When properly deployed, each type of 

capacity can operate synergistically to allow a utility to meet increases and decreases in demand 

in the most cost effective manner_ 

Fuel (or production) diversity refers to the type of fuel or process that a given unit uses to 

produce electricity_ More specifically, fuel diversity -that is, the development of a portfolio of 

generation resources that rely on different means of generating electricity - has the potential to 

reduce the impact that uncontrollable changes in fuel markets have on customers_ Fuel diversity 

assures economic and energy security; too great a reliance on any one source of energy increases 

risk by exposing customers to potential price increases and supply disruptions_ Equally 

important, fuel diversity can reduce the effect that major changes in public policy might have on 

the Company's customers_ In summary, capacity and fuel diversity play important roles in 

enhancing Nevada Power's ability to provide safe and reliable electric service to its customers 

while maintaining just, reasonable and predictable rates_ 

7 
A variety of different resources can be used to generate electricity, including coal, natural gas, 

uranium, wind, water, solar, geothermal and biomass. Each of these options has a unique cost 

profile, based on the supply and demand of the fuel and technology used to turn chemical, solar 

or kinetic energy into electricity. Each option presents different diversity, and thus risk, 

characteristics and unique operating considerations related to availability, performance and 

reliability. Each option has different implications for capacity and fuel diversity. 

The Company's Preferred Plan maintains both capacity and fuel diversity. When comparing 

Case C to Case A, Case C provides more fuel diversity and more capacity diversity than does 

Case A The combined-cycle unit in Case A is gas-fired base load capacity. The replacement 

capacity developed by the Company in Case C provides 224 MW of gas-fired intermediate 

capacity, 272 MW of gas-fired peaking capacity, and 76 MW (planning capacity) of renewable 

intermittent capacity. 

The inclusion of new renewable energy facilities in the Preferred Plan provides an element of 

fuel diversity, which is particularly important in light of the retirement of coal-fired generation. 

See Figure S-1, below. 

FIGURE S-1 

ENERGY PRODUCTION BY CATEGORY 

PREFERRED PLAN AND ALTERNATE PLAN 

Energy Production by Category 

Alternate Plan 

2018 

B. SUMMARY VOLUME REQUIREMENTS12 

Energy Production by Category 

Preferred Plan 

2018 

Nevada Power Described. Nevada Power generates, transmits and distributes electric energy to 

approximately 850,000 customers in Las Vegas, North Las Vegas, Henderson, Searchlight, 

Laughlin, and adjoining areas, including Nellis Air Force Base. 

12 This Section of the Summary contains an integrated evaluation of the components of the resource plan, which 

relates the preferred plan to the objectives of the strategic plan. See NAC §704.9215(2)(11). 

8 
Nevada Power is regulated by the Commission and the Federal Energy Regulatory Commission 

("FERC"). Nevada Power's primary place of business is at 6226 West Sahara Avenue, in Las 

Vegas, Nevada. Figure S-2 shows Nevada Power's service territory along with existing 

transmission and generation stations. 

FIGURE S-2 

NEVADA POWER SERVICE TERRITORY, EXISTING 

TRANSMISSION AND GENERATION 

With the Commission's leadership and support, Nevada Power has reduced its reliance on 

volatile wholesale markets in recent years. In 2008, Nevada Power generated just 67.5 percent of 

its total energy requirements from Company-owned facilities, while purchasing the remaining 

32.5 percent from neighboring utilities and renewable energy developers. Nevada Power now has 

sufficient Company owned and/or controlled generation to meet nearly all of its customers' 2014 

needs. Considering pending generation retirements and expiring contracts, and utilizing the 

results of a new long-term load forecast, the Company's approved demand-side management 

plan ("DSM Plan") and a refreshed renewable energy plan, Nevada Power identified the 

Company's resource requirements over a full 30-year planning period. This analysis indicates 

9 
that Nevada Power needs to execute a comprehensive replacement strategy to replace retiring 

capacity. 

Resource Planning Described. Beginning in 1983, the Legislature gave the Commission 

oversight authority over Nevada Power's long-term planning process. Every three years, Nevada 

Power formulates and presents its Preferred Plan for meeting the long-term needs of its 

customers. Based on projections of customers' load requirements, Nevada Power prepares a 

long-term integrated resource plan ("IRP"), in which it lays out programs to fill projected 

requirements with programs that reduce energy consumption (demand-side management or 

"DSM"), by building or purchasing generation (from conventional and renewable energy 

sources), by building or purchasing transmission, and by purchasing fuel (natural gas and coal). 

ERCR Planning Period and Action Period. This 2014 ERCR Plan filing addresses the 20-year 

planning period 2015 to 2034, and the 30-year planning period 2015-2044. The Company's 

Preferred and Alternate Plans are formulated and compared to different options using economic 

models. The ERCR Plan includes an "Action Plan" which details the steps that Nevada Power 

will take over the next year (2015) to implement the Preferred Plan. The Action Plan includes a 

description of the costs, timeline, and planning activities for each recommended project. A more 

detailed description of each project is provided in detailed narratives that are included in the 

ERCR Supply Side Volume. 

Economic Analysis and Selection of Nevada Power's ERCR Preferred Plan. In selecting its 

Preferred and Alternate Plans, Nevada Power has evaluated various factors that are set forth in 

the Commission's regulations, including: 

• The PWRR for each alternative (see NAC § 704.9357(3)) 

• The present worth of societal cost ("PWSC") for each alternative (see NAC § 

704.9357(4)) 

• Whether the plan mitigates risk (see NAC § 704.9357(5)) 

• Whether the plan provides adequate reliability (see NAC § 704.9357(6)(a)) 

• Regulatory and financial constraints (see NAC § 704.9357(6)(b )) 

• Whether the plan meets the Renewable Portfolio Standard ("RPS") (see NAC § 

704.93 57( 6)( c)) 

• Whether the plan meets the requirements for environmental protection (see NAC § 

704.9357(6)(d)) 

In accordance with NAC § 704.948(2), the Company considered the relationship among these 

factors in selecting the Preferred and Alternate Plans, including the relationship between 

mitigating risk, minimizing cost and volatility, maximizing reliability, and resource 

diversification. The Company selected Preferred and Alternate Plans that provide the best 

combination of attributes, without assigning specific weights to any particular factor. 

10 
As discussed above, Nevada Power considered four alternative plans to replacing coal-fired 

generating capacity that will be retired or eliminated. In addition, scenario analyses were 

conducted by modeling all alternative plans under high and low fuel and purchased power prices; 

high and low load forecasts; and mid, high, and low carbon price impacts, including a scenario 

with no future carbon or greenhouse gas ("GHG") cap-and-trade program. Each of the alternative 

plans is run under 12 sensitivities as identified in Table S-5. 

TABLE S-5 

SUMMARY OF ANALYSIS SENSITIVITIES 

Load Fuel GHG 

1 BASE MIDC 

2 BASE LOW MIDC 

3 HIGH MIDC 

4 HIGH BASE MIDC 

5 LOW BASE MIDC 

6 BASE NOC 

7 BASE LOW NOC 

8 HIGH NOC 

9 HIGH BASE NOC 

10 LOW BASE NOC 

11 BASE BASE HIGH 

12 BASE BASE LOW 

The Company has chosen Case C as the Preferred Plan and Case A as the Alternate Plan. With 

respect to PWRR, Cases C and A consistently provide the lowest PWRR among all scenarios 

among all planning periods. It is important to recognize that the difference between Case C and 

Case A (the case with the lowest PWRR under base assumptions) is negligible, especially in 10-

year and 20-year periods. Indeed, in those years, the PWRR differences between Case C and 

Case A are $3.0 million and $2.0 million, respectively. This amounts to 0.02 percent and 0.008 

percent of the total PWRR. 

In light of the objective - the orderly and structured replacement of retired or eliminated coalfired generating capacity - the replacement package developed by Nevada Power provides a 

favorably to Case B (the construction of a simple-cycle peaking project) and Case D (the 

acquisition of 274 MW of gas-fired generation and the addition of another 500 MW ofPV). The 

11 
Preferred Plan also provides a more balanced outcome than the Alternate Plan, Case A (the 

construction of a 2x1 combined-cycle generating unit). 

First, the overall capital cost of the replacement package is lower than the estimated cost of 

constructing a combined-cycle generating unit. Nevada Power estimates the cost of constructing 

a single natural gas-fired 576 MW combined-cycle generating unit by June 1, 2018, at least $711 

million (2015 dollars without an allowance for funds used during construction). In contrast, the 

estimated capital cost of the Preferred Plan is $584.7 million. 13 Importantly, the construction of a 

single combined-cycle unit would not receive the benefit of the federal lTC. The lTC equals 30 

percent of eligible expenditures, with no maximum credit limitation on renewable systems 

placed in service on or before December 31, 2016. While Nevada Power, as a regulated utility, 

must normalize the tax credit over time, the credit reduces the overall cost of providing service to 

customers. 

Second, the construction of a combined-cycle unit or simple cycle units would not provide the 

same type of capacity diversity delivered by the replacement package. While natural gas-fired 

combined-cycle units provide flexibility, including the ability to follow intermittent resources, 

those units today provide either base load or intermediate capacity. Simple-cycle units, on the 

other hand, provide peaking capacity. The replacement capacity package developed by the 

Company provides a mixture of replacement capacity. The package provides 224 MW of 

intermediate capacity, 272 MW of peaking capacity, 76 MW of intermittent capacity and another 

6 MW of intermittent capacity. The package thus expands the capacity diversity of Nevada 

Power's portfolio. 

Third, the construction or acquisition of a single-combined cycle unit or the construction of 

simple-cycle units would not enhance fuel diversity within Nevada Power's generating fleet. The 

first option (Case A) adds 597 MW of natural-gas fired combined-cycle generating capacity; the 

second option (Case B) adds 568 MW of natural-gas fired simple-cycle generating capacity. In 

either case, the Company would be relying entirely on natural gas as the fuel for fulfilling the 

550 MW of non-technology specific replacement capacity required by NRS § 704.7316(2)(c) 

Case C, on the other hand, improves the Company's fuel diversity. By adding 200 MW 

(nameplate) of solar generating facilities, the Preferred Plan incorporates into its portfolio a 

resource that produces electricity without the need to procure additional natural gas. Case C not 

only increases the capacity diversity within Nevada Power's portfolio, but also increases the fuel 

diversity within the portfolio. 

Fourth, and possibly most importantly, the Preferred Plan provides a distinct and bold option for 

Nevada. The package provides "construction jobs" in the renewable energy industry "at a critical 

13 The estimated capital costs of the 200 MW, nameplate, of solar generating capacity shown in Table S-2 do not 

take into consideration the investment tax credit. While the Company must normalize the investment tax credit 

pursuant to federal law, Nevada Power's customers realize the benefit of the credit over time. 

12 
point in the emerging recovery of Nevada's economy." The Preferred Plan ensures that Nevada 

has a "bright future with clean energy production." And, the Preferred Plan ensures local 

benefits, providing the best value for Nevadans as the Moapa Solar Project should generate up to 

$181 million in benefits to Nevada. 14 

ERCR Plan Long-Term Resource Planning. Nevada Power needs to take action now, in 2014 

and 2015, to replace the coal-fired generating capacity that it plans to retire in 2014 and 2017 

pursuant to SB 123. Nevada Power will seek permission in its triennial IRP filing (due 2015), to 

ensure that it maintains the ability to continue to provide industry-leading reliable electric service 

at just and reasonable rates throughout the planning period. Between 2014 and 2022, Nevada 

Power must replace not only coal-fired generating capacity but capacity from expiring long-term 

purchased power agreements. In total, Nevada Power must replace approximately 2,320 MW of 

generating capacity by 2022, as is shown in Table S-6. 

TABLE S-6 

CAPACITY ELIMINATIONS 2013-2022 

Megawatts Retirement (R), 

(MW) Elimination (E) 

Unit/ PPA or Contract Summer 

Capacity Expiration (C) 

Year 

Las Vegas Cogeneration II 224 2013-C 

I Reid Gardner 1,2,3 300 2014-R 

lsunpeak 222 2016-C 

I Griffith 570 2017-C 

llas Vegas Cogeneration I 50 2017-C 

!Reid Gardner4 257 2017-R 

I southern Nevada Water Authority Transaction 130 2018-C 

I Navajo 255 2019-E 

lei ark 4 54 2020-C 

I saguaro 90 2021-C 

I Nevada Cogeneration Associates 1 85 2022-C 

I Nevada Cogeneration Associates 2 85 2022-C 

Absent action as a result of this filing, Figure S-3 shows that Nevada Power's open capacity 

position ("Open Position") grows to over 1,500 MW by 2018. Even if the Company takes action 

and adds the diverse portfolio of replacement capacity included in this ERCR Plan, Nevada 

Power projects that its Open Position will grow to approximately 1,000 MW by 2018. 15 

14 See Technical Appendix Item ECON-19, Solar Photovoltaic Plant Economic Impact Analysis prepared by 

Applied Analysis. 15 The Company has options to mitigate its open position and, in fact, is in the process of pursuing those options. 

13 
FIGURE S-3 

OPEN POSITION WITH NO ACTION AND WITH CASE C 

(PREFERRED PLAN) 

B ERCR Preferred Plan 

No New Generation 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 

ERCR and the Strategic Plan. 16 Nevada Power is guided by six core principles. The Company's 

ERCR Plan is consistent with these core principles: customer service, employee commitment, 

environmental respect, regulatory integrity, operational excellence, and financial strength. As 

such, the Company's ERCR Plan consistent with Nevada Power's strategic plan and is supported 

and endorsed at the highest levels of NV Energy. 

The Company's ERCR Plan is viewed as an efficient and effective strategic plan to meet the 

requirements of SB 123 while maintaining the reliability and cost effectiveness of its energy 

supply resources. The Company has incorporated the DSM Plan consistent with that included in 

Nevada Power's application for approval of its 2012 Integrated Resource Plan, as modified by 

the Commission's order and approved on December 24, 2012, in Docket 12-06053. After 

accounting for the contributions of DSM resources, the Company has identified the need to 

execute new generation supply acquisitions and initiate new generation construction activities to 

replace retiring generation and ensure it can reliably meet the needs of its customers. 

Taking orderly and structured steps now-by executing on the acquisition of existing generating 

resources and beginning construction of new generating resources-will ensure that the 

16 See LCB File No. Rl31-13, Sec. 13(2)(a). 

14 
Company and its customers are well-positioned to maintain a strong generation portfolio and 

avoid the risks of high levels of energy market exposure in the future. 

Managing the Renewable Portfolio. The renewable energy plan set forth in this ERCR Plan 

continues Nevada Power's RPS compliance planning and advances important facets of SB 123, 

namely the development of renewable energy in Nevada and providing Nevada jobs to fuel the 

recovery of our economy. The Preferred Plan allows the Company to continue to manage its 

diverse portfolio of renewable PPAs while carefully monitoring the completion of approved 

projects that are not yet in service and pursue new PPAs and Company-owned renewable 

projects. Additionally, the Company intends to investigate new distributed generation options. 

NV Energy will complete an analysis of distributed generation and subscription options. Section 

VII describes the renewable energy action items that the Company is requesting approval. 

Managing Generation and Purchased Power Portfolio. The Preferred Plan provides both 

capacity and fuel diversity. The Preferred Plan is based on the acquisition of existing gas-fired 

generating units and construction of new renewable generation that complements the Company's 

existing fleet of owned generation and long-term PP As. The Company will continue to manage 

its generation fleet and PPAs to optimize the overall value to its customers and maintain a safe 

and reliable electric system. Additionally, the Company will continue to seek opportunities for 

its customers by investigating generation acquisition opportunities and long-term PPA extensions 

where it is economically beneficial. Section VII of this Summary describes the generation action 

items that the Company is requesting approval. 

Managing Strategic Transmission Resources. The updated transmission plan submitted in this 

ERCR Plan filing is built upon the plan's load forecasts, system characteristics, existing and 

future transmission facilities, and obligations. Based on these key system characteristics, the 

transmission plan examines the capabilities of the existing transmission system and determines 

the need and timing of any additional transmission facilities. The Preferred Plan requires 

investment in transmission infrastructure. The transmission plan includes a previous study to 

address the development of Nevada's renewable resources for both internal consumption and for 

potential export to other markets. Finally the transmission plan discusses new or updated 

WestConnect and FERC policies. All facets of the transmission plan are intended to preserve and 

enhance the safety, reliability and effectiveness of the Company's transmission system. Section 

VII describes the transmission action items that the Company is requesting approval. 

SECTION II- FORECAST OF GROWTH: NAC § 704.9215(2)(b) 

Nevada Power has prepared a new load forecast for the 2014 ERCR Plan ("2014 ERCR 

Forecast"). The 2014 ERCR Forecast updates the 2014-15 Energy Supply Plan Update ("2014-

2015 ESP Update Forecast" or "2014-2015 ESP"), which was completed in January 2013 and 

15 
filed with the Commission on September 1, 2013 in Docket No. 13-08009. The 2014 ERCR 

Forecast was completed in November 2013 and incorporates actual sales and load data through 

August 2013. Nevada Power seeks approval of the 2014 ERCR Forecast. 

Forecast Summary. In 2008, the downturn in the national and local economy began to 

significantly impact economic performance and electric sales in Nevada Power's service 

territory. The economic downturn worsened in 2009 and continued to adversely impact Nevada 

Power's sales through 2011. Fueled by an uptick in the tourism industry, sales turned positive in 

2012 across all sectors with weather normalized sales up 1.7 percent compared to the previous 

year. However, in 2013 year-over-year sales fell again as the tourism industry remained sluggish 

and the Department of Energy's Nevada Test Site ("Nevada Test Site") exited Nevada Power's 

system to take service from Valley Electric Association. 17 In 2013, total sales fell 1.0 percent, 

with small and large commercial and industrial ("C&I") weather normalized sales dropping 1.5 

percent and 2.4 percent respectively from 2012. 

Unlike sales, customer counts continued to modestly mcrease even during the economic 

downturn that started in 2008. Residential customer counts increased 1.5 percent in 2012 and 1.2 

percent in 2013. Despite continued increases in customer counts, however, end-use efficiency, 

new appliance and commercial end-use standards, solar photovoltaic ("PV") market penetration, 

and demand side management ("DSM") program activity will continue to put downward 

pressure on long-term projections of customer usage (measured in terms of kWh/per customer). 

Residential average use is projected to decline 0.2 percent annually from 2013 through 2023 and 

commercial average use (small- and medium-size commercial customers) is projected to decline 

0.1 percent annually over this period. In the near-term (2013 through 2016) residential use per 

customer is forecast to decline 0.5 percent on average as a result of the new lighting standards 

and continued DSM program activity. New residential lighting standards have had the largest 

impact on customer usage, as 100 watt and 75 watt incandescent light bulbs were scheduled for 

phase out in 2013, and 60 watt and 40 watt incandescent light bulbs are scheduled to be phased 

out in 2014. A full discussion of customer usage is contained in Technical Appendix LF-1. 

Overall, Nevada Power expects to see positive sales growth over the next 10 years as the 

economy continues to improve, and Nevada Power adds new customers. Sales are expected to 

grow at an average annual rate of 1.0 percent over the next 10 years. Table S-7 summarizes 

historical (weather normalized) and forecasted class sales. Table S-8 presents residential 

historical and forecasted customer counts and weather normalized average usage. The forecast 

begins in 2014. Full results are summarized in Technical Appendix LF-1. 

17 The Nevada Test Site represented a sales loss of approximately 65 GWh from 2012 to 2013. 

16 
TABLE S-7 

HISTORICAL (WEATHER NORMALIZED) AND FORECASTED SALES (GWH) 

Year 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

20ll 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

2003 -13 

2013-23 

Notes: 

"Res"-

Res chg Small 

C&l 

7,456 3,743 

7,742 3.8% 3,923 

8,512 9.9% 4,243 

8,907 4.6% 4,410 

8,979 0.8% 4,573 

8,884 -1.1% 4,604 

8,718 -1.9% 4,447 

8,639 -0.9% 4,358 

8,604 -0.4% 4,352 

8,833 2.7% 4,456 

8,871 0.4% 4,391 

8,969 1.1% 4,462 

8,985 0.2% 4,477 

9,010 0.3% 4,525 

9,083 0.8% 4,595 

9,207 1.4% 4,678 

9,335 1.4% 4,767 

9,450 1.2% 4,861 

9,565 1.2% 4,956 

9,654 0.9% 5,049 

9,756 1.1% 5,145 

1.8% 

1.0% 

Residential 

Change 

chg Large chg 

C&l 

6,292 

4.8% 6,548 4.1% 

8.2% 6,986 6.7% 

3.9% 7,270 4.1% 

3.7% 7,472 2.8% 

0.7% 7,645 2.3% 

-3.4% 7,596 -0.6% 

-2.0% 7,653 0.7% 

-0.1% 7,627 -0.3% 

2.4% 7,645 0.2% 

-1.5% 7,458 -2.4% 

1.6% 7,563 1.4% 

0.3% 7,588 0.3% 

1.1% 7,633 0.6% 

1.6% 7,703 0.9% 

1.8% 7,789 1.1% 

1.9% 7,875 1.1% 

2.0% 7,957 1.0% 

2.0% 8,015 0.7% 

1.9% 8,062 0.6% 

1.9% 8,122 0.8% 

1.6% 1.7% 

1.6% 0.9% 

"Chg"-

"Small C&I" -

"Large C&I" -

"StLight"-

Small Commercial and Industrial 

Large Commercial and Industrial 

Street Lighting 

17 

StLight chg Public chg Total 

Authority 

153 258 17,901 

158 3.2% 249 -3.2% 18,620 

167 5.6% 184 -26.3% 20,091 

170 2.2% llO -40.0% 20,867 

171 0.5% 64 -42.1% 21,259 

173 1.0% 58 -9.5% 21,364 

185 6.7% 55 -4.3% 21,001 

177 -4.2% 56 0.4% 20,883 

170 -4.2% 55 -0.9% 20,807 

166 -1.9% 53 -4.4% 21,153 

155 -6.8% 56 6.2% 20,931 

154 -0.7% 54 -3.3% 21,202 

152 -1.0% 54 0.0% 21,256 

151 -1.0% 54 0.0% 21,372 

149 -1.0% 54 0.0% 21,585 

149 0.0% 54 0.0% 21,878 

149 0.0% 54 0.0% 22,180 

149 0.0% 54 0.0% 22,471 

149 0.0% 54 0.0% 22,740 

149 0.0% 54 0.0% 22,968 

149 0.0% 54 0.0% 23,227 

0.1% -14.2% 

-0.4% -0.3% 

chg 

4.0% 

7.9% 

3.9% 

1.9% 

0.5% 

-1.7% 

-0.6% 

-0.4% 

1.7% 

-1.0% 

1.3% 

0.3% 

0.5% 

1.0% 

1.4% 

1.4% 

1.3% 

1.2% 

1.0% 

1.1% 

1.6% 

1.0% 
Year 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

2003- 13 

2013-23 

TABLE S-8 

HISTORICAL AND FORECASTED CUSTOMER COUNTS AND 

AVERAGE USE PER CUSTOMER 

Res Avg Small 

Small 

C&I 

Res chg Use chg C&I chg Avg Use 

Custs (kWh) Custs (kWh) 

606,187 12,299 78,794 47,498 

633,907 4.6% 12,213 -0.7% 83,149 5.5% 47,179 

667,742 5.3% 12,747 4.4% 87,819 5.6% 48,318 

700,309 4.9% 12,718 -0.2% 92,367 5.2% 47,741 

720,116 2.8% 12,469 -2.0% 96,579 4.6% 47,345 

724,663 0.6% 12,259 -1.7% 99,089 2.6% 46,466 

725,557 0.1% 12,015 -2.0% 99,446 0.4% 44,716 

729,565 0.6% 11,842 -1.4% 100,270 0.8% 43,466 

737,500 1.1% 11,666 -1.5% 100,712 0.4% 43,213 

748,226 1.5% 11,805 1.2% 101,410 0.7% 43,937 

757,052 1.2% 11,718 -0.7% 102,981 1.5% 42,635 

768,297 1.5% 11,674 -0.4% 104,166 1.2% 42,839 

777,535 1.2% 11,556 -1.0% 105,522 1.3% 42,428 

786,458 1.1% 11,456 -0.9% 107,187 1.6% 42,213 

795,438 1.1% 11,419 -0.3% 109,138 1.8% 42,106 

804,507 1.1% 11,444 0.2% 111,269 2.0% 42,046 

813,309 1.1% 11,478 0.3% 113,514 2.0% 41,996 

821,678 1.0% 11,500 0.2% 115,772 2.0% 41,990 

829,994 1.0% 11,525 0.2% 117,962 1.9% 42,015 

837,917 1.0% 11,521 0.0% 120,076 1.8% 42,047 

845,641 0.9% 11,537 0.1% 122,075 1.7% 42,142 

2.2% -0.5% 2.7% 

1.1% -0.2% 1.7% 

chg 

-0.7% 

2.4% 

-1.2% 

-0.8% 

-1.9% 

-3.8% 

-2.8% 

-0.6% 

1.7% 

-3.0% 

0.5% 

-1.0% 

-0.5% 

-0.3% 

-0.1% 

-0.1% 

0.0% 

0.1% 

0.1% 

0.2% 

-1.1% 

-0.1% 

Required Figures. Table S-9 shows the forecast of energy sales for each of the twenty years of 

the planning period under the low, base and high scenarios, both with and without DSM. Table 

S-1 0 shows the forecast of peak demand for each of the 20 years of the planning period, also 

under the low, base and high scenarios with and without DSM. Table S-11 is a summary of the 

DSM MW on peak, by program. The values are the cumulative incremental additions from 2013. 

18 
Year 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TABLE S-9 

LOW, BASE AND HIGH SALES SCENARIOS 

WITH AND WITHOUT DSM 

SALES (GWH) WITHOUT 

SALES (GWH) WITH DSM DSM/DR 

LOW BASE HIGH LOW BASE HIGH 

20,878 21,202 21,083 21,017 21,341 21,222 

20,507 21,256 21,288 20,790 21,539 21,571 

20,470 21,372 21,603 20,896 21,798 22,029 

20,622 21,585 22,006 21,181 22,144 22,566 

20,883 21,878 22,487 21,574 22,569 23,178 

21,105 22,180 22,888 21,928 23,003 23,711 

21,329 22,471 23,284 22,284 23,426 24,238 

21,547 22,740 23,681 22,630 23,823 24,764 

21,798 22,968 24,127 23,007 24,177 25,337 

22,058 23,227 24,560 23,390 24,558 25,892 

22,328 23,503 25,022 23,777 24,952 26,470 

22,613 23,744 25,511 24,179 25,310 27,076 

22,943 24,026 26,052 24,620 25,702 27,729 

23,231 24,318 26,538 25,012 26,099 28,319 

23,559 24,638 27,085 25,415 26,494 28,941 

23,882 24,912 27,653 25,775 26,805 29,546 

24,234 25,200 28,257 26,147 27,113 30,170 

24,526 25,501 28,799 26,445 27,420 30,717 

24,842 25,836 29,382 26,766 27,760 31,306 

25,171 26,105 29,993 27,101 28,034 31,922 

25,544 26,413 30,622 27,477 28,346 32,554 

Includes the effects of solar PV and wind net metering. 

19 
Year 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TABLE S-10 

LOW, BASE, AND HIGH PEAK DEMAND SCENARIOS 

WITH AND WITHOUT DSM 

PEAK DEMAND (MW) PEAK DEMAND (MW) 

WITHDSM WITHOUT DSM/DR 

LOW BASE HIGH LOW BASE HIGH 

5,563 5,656 5,703 5,785 5,878 5,925 

5,480 5,629 5,727 5,769 5,918 6,016 

5,460 5,654 5,795 5,781 5,975 6,116 

5,470 5,713 5,899 5,818 6,061 6,247 

5,505 5,795 6,021 5,879 6,169 6,395 

5,548 5,883 6,142 5,949 6,284 6,543 

5,592 5,963 6,255 6,020 6,391 6,683 

5,636 6,043 6,363 6,090 6,497 6,817 

5,670 6,108 6,460 6,150 6,588 6,940 

5,710 6,180 6,564 6,215 6,685 7,069 

5,755 6,256 6,671 6,285 6,786 7,201 

5,793 6,322 6,770 6,347 6,876 7,324 

5,840 6,400 6,879 6,417 6,977 7,456 

5,889 6,480 6,994 6,489 7,080 7,594 

5,949 6,570 7,120 6,568 7,189 7,739 

5,993 6,642 7,227 6,626 7,275 7,860 

6,042 6,720 7,344 6,683 7,361 7,985 

6,094 6,803 7,466 6,735 7,444 8,107 

6,156 6,893 7,599 6,798 7,535 8,241 

6,204 6,969 7,721 6,846 7,611 8,363 

6,258 7,052 7,849 6,900 7,694 8,491 

Includes the effects of solar PV and wind net metering. 

TABLE S-11 

DSM CONTRIBUTIONS TO THE LOAD FORECAST (MW) 

Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 

Non-Proft Grants 4.3 9.0 13.9 18.9 23.7 28.6 33.6 38.4 43.4 48.2 53.2 58.1 62.7 67.1 69.8 70.3 70.5 70.5 

Commercial Incentives 2.8 5.8 9.0 12.1 15.2 18.4 21.6 24.7 27.9 31.0 34.2 37.4 40.3 43.1 44.9 45.2 45.4 45.3 

Energy Smart Schools 3.2 6.8 10.5 14.2 178 21.5 25.3 28.9 32.6 36.3 40.1 43.7 47.2 50.5 52.5 52.9 53.1 53.0 

Low Income Weatherization 5.0 10.1 15.3 20.5 25.5 30.7 35.9 40.9 45.8 50.4 54.8 59.1 63.2 67.5 71.8 76.2 78.8 78.8 

Residential Lighting 0.9 1.7 2.6 3.5 4.3 5.2 6.1 7.0 7.8 8.6 9.3 10.1 10.8 11.5 12.2 13.0 13.4 13.4 

Refrigerator Recycling 1.1 2.3 3.5 4.7 5.8 7.0 8.2 9.3 10.4 11.4 12.5 13.4 14.4 15.3 16.3 17.3 179 179 

Residential High Efficiency AC 5.0 10.1 15.3 20.5 25.5 30.7 35.9 40.9 45.8 50.4 54.8 59.1 63.2 67.5 71.8 76.2 78.8 78.8 

Energy Efficient Pools and Spas 1.6 3.3 5.0 6.7 8.3 10.0 11.6 13.2 14.8 16.3 178 19.1 20.5 21.9 23.2 24.7 25.5 25.5 

Solar Thermal Water Heating 0.9 1.9 2.9 3.8 4.8 5.7 6.7 7.6 8.5 9.4 10.2 11.0 11.8 12.6 13.4 14.2 14.7 14.7 

Demand Response (I) 82 123 128 128 128 128 128 128 128 128 128 128 128 128 128 128 128 128 

Tota!MW 107 174 206 233 259 286 313 339 365 390 415 439 462 485 504 518 526 526 

Footnote I: The estimates are based on the expected MW realized at 5 pm of the peak day for the specified year. These are not the first year savings. 

20 

2032 2033 2034 

70.5 70.4 70.4 

45.3 45.3 45.3 

53.1 53.0 53.0 

79.1 79.2 79.2 

13.5 13.5 13.5 

18.0 18.0 18.0 

79.1 79.2 79.2 

25.6 25.6 25.7 

14.8 14.8 14.8 

128 128 128 

527 527 527 
SECTION III- DEMAND SIDE PLAN SUMMARY: NAC § 704.9215(2)(c) 

The DSM portfolio of programs is consistent with that included in Nevada Power's application 

for approval of its 2013 Annual Demand Side Management Update Report, as modified by the 

Commission's order and approved on December 19, 2013 in Docket 13-07002. The estimated 

energy efficiency savings attributed to this portfolio is consistent in all of the alternative plans 

evaluated for this ERCR Plan. 

SECTION IV - SUMMARY OF THE SUPPLY SIDE PREFERRED PLAN: NAC § 

704.9215(2)(d) 

The Company's Preferred Plan (Case C) includes a package of company-owned generation of 

different capacity and fuel types that maximizes the use of existing generating facilities coupled 

with the construction of new renewable facilities to replace retiring coal generation capacity. 

Case C includes the purchase of LV Cogen on January 1, 2015, the Sun-Peak Generation Station 

on January 1, 2015, and construction of the 200 MW Moapa Solar Project, with an in-service 

date of October 2016. LV Cogen-an existing gas-fired generator-includes 50 MW of peaking 

capacity from LV Cogen Unit 1 and 224 MW of intermediate capacity from LV Cogen Unit 2. 

The cost of acquisition of LV Cogen is $130.8 million. 18 Sun-Peak Generation Unit-an existing 

gas-fired generator-includes 222 MW of peaking capacity. The cost of acquisition of the SunPeak Generation Station is $15.8 million. 19 The cost of constructing the Moapa Solar Project is 

$438.1 million (excluding allowance of funds used during construction). The Moapa Solar 

Project provides 76 MW of planning capacity for a total planned replacement capacity package 

of 572 MW to meet the non-technology specific replacement capacity SB 123 requirement. 20 The 

Preferred Plan also includes the 15 MW Nellis Solar Array II, with a construction cost of $54.5 

million, a request to permit acreage in Clark County for additional solar facilities, and 

authorization to issue the first of three separate 100 MW RFPs for transaction with new 

renewable energy. 

a.) LV Cogen Units 1 and 2 

The Company requests Commission approval to spend $130.8 million or $477/kW, to acquire 

the LV Cogen facility. LV Cogen consists of two combined cycle units with a total capacity of 

274 MW. LV Cogen Unit 1 is a 50 MW 1x1 natural gas-fired combined cycle unit that has been 

18 The total transaction costs consist of $129.9 million purchase price plus $0.900 million of transaction costs. 19 The total transaction costs consists of a purchase price of $11.0 million, integration costs of approximately $4.5 

million, and transaction costs of $300 thousand 20 The thirty-eight percent capacity value across the PV portfolio is based on an analysis performed by Pacific 

Northwest National Laboratories using data from Nevada Power's PV Integration Study. See Docket No. 11-03014, 

Technical Appendix Item SUP-ECON-6. 

21 
in-service since 1994. LV Cogen Unit 2 is a 224 MW dual 2x1 natural gas-fired combined cycle 

unit that has been in-service since 2003. 

b.) Sun-Peak Generating Facility 

The Company requests to spend $15.8 million or $71/kW to acquire the Sun-Peak facility. SunPeak consists of three simple cycle combustion turbine units with a total capacity of 222 MW. 

Sun-Peak has been in-service since 1991. 

c.) Moapa Solar Project 

The Company is seeking the Commission's approval to invest approximately $438.1 million 

(excluding AFUDC) to acquire the development assets and to construct and ultimately operate 

the Moapa Solar Project, a solar photovoltaic ("PV") electric generating facility with an expected 

capacity of 200 MWac, measured at the delivery point. The Moapa Solar Project is being 

developed by RES Americas Development, Inc. ("RES") and will be located on reservation lands 

of the Moapa Band of Paiutes, approximately 45 miles north east of Las Vegas, Nevada. Based 

on the proposed capital cost and expected output, the renewable nature of the project requiring 

only Nevada's abundant solar resource for fuel, and taking advantage of the lTC set to expire at 

the end of 2016, the Moapa Solar Project represents an opportunistic acquisition for Nevada 

Power Company and will provide many years of fuel and emissions free energy for Nevada 

Power customers. 

d.) Nellis Solar Array II 

The Company is seeking Commission approval to invest up to $54.5 million (without AFUDC) 

to build a 15 MW (alternating current) solar PV generating facility at Nellis Air Force Base. The 

solar facility would be built on the premises of Nellis Air Force Base and would interconnect 

directly to the Nellis Air Force Base electric distribution system. The Company must begin 

construction of at least 50 MW of new renewable energy facilities before December 31, 2017. 

This project satisfies that requirement, by beginning construction in 2015 for several good 

reasons. First, the Company takes advantage of the existing 30 percent investment tax credit. 

Second, the project cements the Company's relationship with a long-standing customer by 

developing an option that meets the customer's mission-critical goals. Third, the Company's 

customers will benefit from the 2.4 portfolio credit ("PC") multiplier associated with this project. 

In order to receive the multiplier at least 50 percent of the energy produced must be consumed on 

site and the project must be in place by December 31, 2015. The electrical interconnection 

requirements related to this project are described in the project narrative contained in the Supply 

Side Plan, Section 2.D.5. 

22 
e.) Clark County Solar Siting Work 

Nevada Power is requesting Commission approval to spend up to $4.4 million on initial siting 

activities related to one or more proposed new solar PV generating facilities northeast of Las 

Vegas in Clark County, Nevada. NV Energy has identified several locations capable of 

supporting approximately 500 MW of solar PV capacity near the Harry Allen power generation 

facility. The proposed sites occupy approximately 4,000 acres and are located on U.S. Bureau of 

Land Management land, within or near the current Nevada Power right-of-way grant. 

f) Renewable RFPs for 300 MWs 

Nevada Power is requesting Commission approval to issue three 100 MW RFPs for transactions 

with new renewable energy. The Company will generally follow the structure of its previous 

solicitation and contracting process used in securing renewable power purchase agreements. The 

Company expects to receive additional guidance from the Commission as a result of continued 

rulemaking in Docket 13-06023, known as Phase 2. 

Tables S-12 through S-16 show Nevada Power's projected loads and resources under the 

Preferred Plan, assuming base load conditions. The Company also developed a number of 

sensitivities around the base case; the sensitivities are presented in the Supply Side Plan, Section 

3 (Economic Analysis) Figure EA-3- Sensitivities Conducted for Economic Analysis. 

23 
Description 

GROSS SYSTEMPEAKWADFORECAST (Janmny 2014) 

DSM 

Net Metering 

Demand Response 

SYSTEM PEAK WAD FORECAST (1) (Janu:ny2014 Load Forecast) 

SNWAObligation 

NETSYSTEMPEAKWAD 

Plannilll! ReseiVe Reauirement 12% 

REQUIRED RESOURCES 

RESOURCES (Itemized) 

Existilll! Internal GenemtionFacilities (Retire Date 12131/xx) 

Clatk4(2020) 

Clatk9,10(9-2033,10-2034) 

ClatkPeakersll-22(2038) 

Goodsprings(2043) 

Hany Allen 3 (2025) 

Hany Allen 4 (2036) 

Hany Allen 5,6,7 (2046) 

Higgins(2039) 

Lenzie 1 (2041) 

Lenzie2 (2041) 

Reid Gardner 1,2,3 (2014) 

ReidGardner4 -Base(2017) 

Silveffiawk (75% Share) (2039) 

Sunpeak3,4,5 (2026) 

Existilll! Generation Reguirilll! or Affectilll! Imports 

Hoover 

Navajo1,2,3(2019) 

Total Existing Generation 

H.anned Internal Genemtion Facilities 

15 MWPV_2016 (COD 1!1!2016) 

200 MWPV_2016 (COD 10/1!2016) 

35 MWPV_2021 (COD 1!1!2021) 

3x_7EA_27 

2x1_CC_20 

Total Plannedlntem.al Generation 

H.anned Generation Facilities Reauiring Import Rights 

1x1_CC_22 

3x_7EA_23 

2x1_CC_24 

3x_LMS 100_30 

3x_LMS 100_32 

2x1_CC_35 

3x_LMS 100_36 

1x1_CC_38 

1x1_CC_39 

2x1_CC_39 

2x1_CC_40 

3x_LMS 100_40 

1x1_CC_41 

2x1_CC_42 

2x1_CC_42 

Total Planned Generation Requiring Imports 

Total Planned Generation 

Less Schednled Maintenance 

TOTAL GENERATION 

TABLE S-12 

L&R TABLE- 2015-2029 NEVADA POWER COMPANY- 2014 ERCR- Base Load 

200PV, LVC, SP ERCR 

2015 2016 2017 2018 

5,933 5,998 6,088 6,204 

51 78 105 131 

15 23 27 35 

238 243 243 243 

5,629 5,654 5,713 5,795 

125 125 125 125 

5,754 5,779 5,838 5,920 

690 693 701 710 

6,444 6,472 6,539 6,630 

54 

430 

619 

72 

72 

484 

530 

551 

551 

257 

3'Xl 

4,237 

200 

54 

430 

619 

72 

72 

484 

530 

551 

551 

257 

3'Xl 

4,237 

200 

54 

430 

619 

72 

72 

484 

530 

551 

551 

257 

3'Xl 

4,237 

200 

54 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,980 

200 

2019 

6,325 

158 

41 

243 

5,883 

5,883 

705 

6,589 

54 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,980 

200 

255 255 255 255~ 

455 455 455 455 455 

4,692 4,692 4,692 4,435 4,435 

76 76 76 

82 82 82 

82 82 

4,992 4,692 4,698 4,774 4,517 

24 

2020 

6,440 

185 

49 

243 

5,963 

5,963 

716 

6,679 

54 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,980 

200 

200 

4,180 

76 

597 

679 

82 

4,517 

2021 

6,549 

211 

52 

243 

6,043 

6,043 

725 

6,768 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,926 

200 

200 

4,126 

76 

13 

597 

692 

679 

4,859 

2022 

6,640 

237 

52 

243 

6,108 

6,108 

733 

6,841 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,926 

200 

200 

4,126 

76 

13 

597 

692 

692 

4,818 

2023 

6,738 

262 

53 

243 

6,180 

6,180 

742 

6,922 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,926 

200 

200 

4,126 

76 

13 

597 

692 

273 

273 

965 

5,091 

2024 

6,839 

287 

53 

243 

6,256 

6,256 

751 

7,007 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,926 

200 

200 

4,126 

76 

13 

597 

692 

273 

213 

486 

1,178 

5,304 

2025 

6,930 

311 

54 

243 

6,322 

6,322 

759 

7,081 

430 

619 

72 

72 

484 

530 

551 

551 

3'Xl 

3,926 

200 

200 

4,126 

76 

13 

597 

692 

273 

213 

597 

1,083 

1,775 

5,901 

2026 

7,033 

334 

56 

243 

6,400 

6,400 

768 

7,168 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,854 

200 

200 

4,054 

76 

13 

597 

692 

273 

213 

597 

1,083 

1,775 

5,901 

2027 

7,137 

357 

57 

243 

6,480 

6,480 

778 

7,258 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

1,083 

1,775 

5,829 

2028 

7,246 

376 

57 

243 

6,570 

6,570 

788 

7,358 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

1,083 

1,988 

5,820 

2029 

7,333 

3'Xl 

58 

243 

6,642 

6,642 

797 

7,439 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

1,083 

1,988 

5,820 
o• 1RN 

oo 1RN 

% 1RN 

07 1RN 

n 1RN 

00 1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

Description 

Specific Purchases 

Future Purchases (ERCR) 

Qualifying Facilities 

NCA1(2022) 

NCA2(2022) 

Saguaro(2021) 

Total Qualifying Facilities 

Contracts(lntemal) 

LV CoG-en I (Buy, Retire 2036) 

LV CoGen II (Buy, Retire 2036) 

TotalContracts(Internal) 

Contracts (External) 

Griffith 

Silverhawk (SNWA Transaction) 

Solari 

ACE Searchlight 

FotowatioApex 

Republic Apex Landfill 

Next Light Silver State 

JsyValNP 

DsrtPkNP 

(Blue Momdain) FlknerNP 

G..UNP 

SltWelNP 

StlWtrNP (PV & GEO) 

Tuscarora 

Tuscarora Expansion (Option) 

McGinness 

McGinness Hills Expansioo. 

NextEraMomdain View 

FRVSpectrmu 

CrescentDlUles 

SpValley 

WMRE Lockwood 

100MWPV_2016 

100MWPV_2017 

50 MWPV_2018 

51MWGE0_2019 

102 MW GEO _ 2033 

76.5MWGE0_2033 

100MWPV_2033 

25 MWPV_2035 

25 MWPV_2036 

25 MWPV_2037 

25 MWPV_2037 

50 MWPV_2038 

25 MWPV_2039 

25 MWPV_2040 

50 MWPV_2041 

50 MWPV_2042 

25 MWPV_2043 

25 MWPV_2044 

Renewables - Subtotal 

Total Contracts (External) 

TOTAL GROSS PURCHASES 

Less Scheduled Maintenance 

TOTAL NET PURCHASES 

AVAILABLE RESOURCES 

IMP OPEN POSITION 

LONG POSITION 

TRANSWSSION 

Balancing Area Import Transmission Capacity 

Balancing Area Customer Load (2) 

System Import Transmission Capacity 

Import Capacity for ReseiVe Sharing (3) 

Transfer ofRenewable Resources 

Subtotal 

Import Capacity for other Native Load Requirements 

Import Capacity Requirement for H.anned Genemtion 

Estimated Available Transmission Capacity (4) 

TABLE S-13 

L&R TABLE -2015- 2029 NEVADAPOWERCOMPANY- 2014ERCR-BaseLoad 

200PV, LVC, SP ERCR 

2015 2016 2017 2018 2019 2020 2021 

85 85 85 85 85 85 85 

85 85 85 85 85 85 85 

~ ~ ~ ~ ~ ~ ~ 

200 200 200 200 200 200 200 

2022 

85 

85 

170 

2023 2024 2025 2026 2027 2028 2029 

50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 

2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 2M 

m m m m m m m m m m m m m m m 

570 

130 

34 

20 

25 

21 

15 

15 

19 

92 

15 

311 

1,011 

1,545 

1,545 

6,237 

207 

2,500 

262 

2,238 

570 

130 

34 

20 

25 

21 

15 

15 

16 

19 

92 

15 

38 

365 

1,065 

1,599 

1,599 

6)97 

176 

2,500 

265 

2,235 

570 

130 

34 

20 

25 

21 

15 

15 

16 

19 

92 

15 

38 

38 

4(1) 

1,103 

1,637 

1,637 

6,411 

128 

2,500 

267 

2,233 

130 

34 

20 

25 

21 

15 

15 

16 

19 

92 

15 

38 

38 

19 

422 

552 

1,086 

1,086 

5,603 

1,028 

2,500 

2® 

2,231 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

987 

987 

5,504 

1,085 

2,500 

271 

2)29 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

987 

987 

5,846 

833 

2,500 

273 

2,227 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

987 

987 

5,805 

963 

2,500 

274 

2)M 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

897 

897 

5~88 

853 

2,500 

278 

2)22 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,031 

891 

2,500 

279 

2,221 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,628 

379 

2,500 

280 

2)20 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,628 

453 

2,500 

299 

2,201 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,556 

612 

2,500 

299 

2,201 

m m m m w w w w w w w w 2,022 2,003 2,001 1,999 1,966 1,964 1,963 1,959 1,958 1,957 1,938 1,938 

~______!22!~~~~~~~ 579 652 812 

802 848 516 4M 931 800 

25 

273 

633 

486 

381 

1,083 

295 

1,083 1,083 

2(1) 43 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,547 

711 

2,500 

299 

2,201 

263 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,547 

811 

2,500 

299 

2,201 

263 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,547 

892 

2,500 

299 

2,201 

263 

1,938 1,938 1,938 

910_______!1!_!!_~ 

1,083 1,083 

(55) (156) 

1,083 

(237) 
Description 

GROSS SYSTEMPEAKWADFORECAST (Janmny 2014) 

DSM 

Net Metering 

Demand Response 

SYSTEM PEAK WAD FORECAST (1) (Janu:ny2014 Load Forecast) 

SNWAObligation 

NETSYSTEMPEAKWAD 

Plannilll! ReseiVe Reauirement 12% 

REQUIRED RESOURCES 

RESOURCES (Itemized) 

Existilll! Internal GenemtionFacilities (Retire Date 12131/xx) 

Clatk4(2020) 

Clatk9,10(9-2033,10-2034) 

ClatkPeakersll-22(2038) 

Goodsprings(2043) 

Hany Allen 3 (2025) 

Hany Allen 4 (2036) 

Hany Allen 5,6,7 (2046) 

Higgins(2039) 

Lenzie 1 (2041) 

Lenzie2 (2041) 

Reid Gardner 1,2,3 (2014) 

ReidGardner4 -Base(2017) 

Silveffiawk (75% Share) (2039) 

Sunpeak3,4,5 (2026) 

Existilll! Generation Reguirilll! or Affectilll! Imports 

Hoover 

Navajo1,2,3(2019) 

Total Existing Generation 

H.anned Internal Genemtion Facilities 

15 MWPV_2016 (COD 1!1!2016) 

200 MWPV_2016 (COD 10/1!2016) 

35 MWPV_2021 (COD 1!1!2021) 

3x_7EA_27 

2x1_CC_20 

Total Plannedlntem.al Generation 

H.anned Generation Facilities Reauiring Import Rights 

1x1_CC_22 

3x_7EA_23 

2x1_CC_24 

3x_LMS 100_30 

3x_LMS 100_32 

2x1_CC_35 

3x_LMS 100_36 

1x1_CC_38 

1x1_CC_39 

2x1_CC_39 

2x1_CC_40 

3x_LMS 100_40 

1x1_CC_41 

2x1_CC_42 

2x1_CC_42 

Total Planned Generation Requiring Imports 

Total Planned Generation 

Less Schednled Maintenance 

TOTAL GENERATION 

TABLE S-14 

L&R TABLE - 2030 - 2044 

2(1)0 

7,420 

398 

59 

243 

6,720 

6,720 

8()5 

7,526 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

234 

1,317 

2,222 

6,054 

2(1)1 

7,504 

398 

60 

243 

6,803 

6,803 

816 

7,619 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

234 

1,317 

2,222 

6,054 

2(1)2 

7,596 

399 

61 

243 

6,893 

6,893 

827 

7,720 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

1,551 

2,456 

6,288 

NEVADA POWER COMPANY- 2014 ERCR- Base Load 

200PV, LVC, SP ERCR 

2(1)3 

7,672 

399 

61 

243 

6$69 

6$69 

836 

7,805 

430 

619 

72 

484 

530 

551 

551 

3'Xl 

3,632 

200 

200 

3,832 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

1,551 

2,456 

6,288 

26 

2(1)4 

7,756 

399 

62 

243 

7,052 

7,052 

846 

7,898 

215 

619 

72 

484 

530 

551 

551 

3'Xl 

3,417 

200 

200 

3,617 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

1,551 

2,456 

6,073 

2(1)5 

7,841 

399 

62 

243 

7,137 

7,137 

856 

619 

72 

484 

530 

551 

551 

3'Xl 

3,202 

200 

200 

3,402 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

2,148 

3,053 

6,455 

2(1)6 

7f!l7 

399 

62 

243 

7,223 

7,223 

867 

8,090 

619 

72 

484 

530 

551 

551 

3'Xl 

3,202 

200 

200 

3,402 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

2,382 

3,287 

6,689 

2(1)7 

8,014 

399 

62 

243 

7,:310 

7,:310 

877 

8,187 

619 

484 

530 

551 

551 

3'Xl 

3,130 

200 

200 

3,330 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

2,382 

3,287 

6,617 

2(1)8 

8,102 

399 

62 

243 

7,398 

888 

8,286 

619 

484 

530 

551 

551 

3'Xl 

3,130 

200 

200 

3,330 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

2,655 

3,560 

6,890 

2(1)9 

8,191 

399 

62 

243 

7,487 

7,487 

898 

8,385 

484 

530 

551 

551 

2,511 

200 

200 

2,711 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

3,525 

4,430 

7,141 

2040 

8,281 

399 

62 

243 

7,577 

7,577 

909 

8,486 

484 

551 

551 

1,591 

200 

200 

1,791 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

597 

234 

4,356 

5,261 

7,052 

2041 

8,372 

399 

62 

243 

7,668 

7,668 

920 

8,588 

484 

551 

551 

1,591 

200 

200 

1,791 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

597 

234 

273 

4,629 

5,534 

7,325 

2042 

8,464 

399 

62 

243 

7,760 

7,760 

931 

8,691 

484 

489 

200 

200 

689 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

597 

234 

273 

597 

5,823 

6,728 

7,417 

2043 

8,557 

399 

62 

243 

7,853 

7,853 

942 

8,795 

484 

489 

200 

200 

689 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

597 

234 

273 

597 

5,823 

6,728 

7,417 

2044 

8,651 

399 

62 

243 

7,947 

7,947 

954 

8,'Xl1 

484 

489 

200 

200 

689 

76 

13 

213 

597 

905 

273 

213 

597 

234 

234 

597 

234 

273 

273 

597 

597 

234 

273 

597 

5,823 

6,728 

7,417 
o• 1RN 

oo 1RN 

% 1RN 

07 1RN 

n 1RN 

00 1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

1RN 

Description 

Specific Purchases 

Future Purchases (ERCR) 

Qualifying Facilities 

NCA1(2022) 

NCA2(2022) 

Saguaro(2021) 

Total Qualifying Facilities 

Contracts(lntemal) 

LV CoG-en I (Buy, Retire 2036) 

LV CoGen II (Buy, Retire 2036) 

TotalContracts(Internal) 

Contracts (External) 

Griffith 

Silverhawk (SNWA Transaction) 

Solari 

ACE Searchlight 

FotowatioApex 

Republic Apex Landfill 

Next Light Silver State 

JsyVaiNP 

DsrtPkNP 

(Blue Momdain) FlknerNP 

G..UNP 

SltWeiNP 

StlWtrNP (PV & GEO) 

Tuscarora 

Tuscarora Expansion (Option) 

McGinness 

McGinness Hills Expansioo. 

NextEraMomdain View 

FRVSpectrmn 

CrescentDlUles 

SpValley 

WMRE Lockwood 

100MWPV_2016 

100MWPV_2017 

50 MWPV_2018 

51MWGE0_2019 

76.5MWGE0_2032 

100MWPV_2032 

100MWPV_2032 

50 MWPV_2032 

51MWGE0_2033 

25 MWPV_2034 

25 MWPV_2035 

25.5MWGE0_2037 

25 MWPV_2038 

25 MWPV_2039 

50 MWPV_2040 

25 MWPV_2041 

25 MWPV_2041 

50 MWPV_2042 

Renewables - Subtotal 

Total Contracts (External) 

TOTAL GROSS PURCHASES 

Less Scheduled Maintenance 

TOTAL NET PURCHASES 

AVAILABLE RESOURCES 

TABLE S-15 

L&R TABLE - 2030 - 2044 NEVADAPOWERCOMPANY- 2014ERCR-BaseLoad 

200PV, LVC, SP ERCR 

2(1)0 2(1)1 2(1)2 2(1)3 2(1)4 2(1)5 2(1)6 

50 50 50 50 50 50 50 

2M 2M 2M 2M 2M 2M 2M 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,781 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

6,781 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

453 

453 

727 

727 

7,015 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

551 

551 

825 

825 

7,113 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

551 

551 

825 

825 

6,898 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

561 

561 

835 

835 

274 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

570 

570 

844 

844 

7,533 

2(1)7 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

589 

589 

589 

589 

7)05 

2(1)8 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

608 

608 

608 

608 

7,498 

2(1)9 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

618 

618 

618 

618 

7,759 

2040 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

10 

627 

627 

627 

627 

7,679 

2041 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

10 

19 

646 

646 

646 

646 

7~71 

2042 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

10 

19 

19 

665 

665 

665 

665 

8,082 

2043 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

10 

19 

19 

10 

675 

675 

675 

675 

8,092 

2044 

34 

20 

25 

21 

21 

15 

16 

19 

92 

15 

38 

38 

19 

17 

34 

26 

38 

10 

10 

10 

10 

19 

10 

10 

19 

19 

10 

10 

684 

684 

684 

684 

8,101 

IMP OPEN POSITION 745 838 705 692 1,000 704 556 981 787 627 807 617 609 704 799 

LONG POSITION 

TRANSWSSION 

Balancing Area Import Transmission Capacity 

Balancing Area Customer Load (2) 

System Import Transmission Capacity 

Import Capacity for ReseiVe Sharing (3) 

Transfer ofRenewable Resources 

Subtotal 

Import Capacity for other Native Load Requirements 

Import Capacity Requirement for H.anned Genemtion 

Estimated Available Transmission Capacity (4) 

2,500 2,500 

299 299 

2,201 2,201 

263 263 

1,938 1,938 

945~ 

1,317 1,317 

(324) (417) 

2,500 

299 

2,201 

263 

1,938 

905 

1,551 

(518) 

2,500 2,500 

299 299 

2,201 2,201 

323 323 

1,878 1,878 

892~ 

1,551 1,551 

(565) (873) 

2,500 

299 

2,201 

323 

1,878 

904 

2,148 

(1,174) 

TABLE S-16 

2,500 2,500 

299 299 

2,201 2,201 

323 323 

1,878 1,878 

756~ 

2,382 2,382 

(1,260) (1,685) 

2,500 

299 

2,201 

323 

1,878 

987 

2,655 

(1,764) 

2,500 2,500 

299 299 

2,201 2,201 

323 323 

1,878 1,878 

827~ 

3,525 4,356 

(2,474) (3,485) 

FOOTNOTES TO NEVADA POWER'S L&R TABLES 

(1) SNWA 125 MW contract through 2018, 

2,500 

299 

2,201 

323 

1,878 

817 

4,629 

(3,568) 

2,500 

299 

2,201 

323 

1,878 

809 

5,823 

(4,754) 

2,500 

299 

2,201 

323 

1,878 

9(1) 

5,823 

(4,848) 

2,500 

299 

2,201 

323 

1,878 

999 

5,823 

(4,944) 

(2) Coincident combined loads for Boulder City, CRC-BMI, City of LV SB211, L VVWD, Lincoln, 

Overton, East Side I Newport, SB 211, , City of Henderson, 

(3) Reserve sharing assistance assumed to change from the Southwest Reserve Sharing Group (SRSG) to 

the Northwest Power PooL 

( 4) Estimates are based on summer peak conditions only, 

27 
SECTION V - SUMMARY OF THE RENEW ABLE ENERGY PLAN: NAC § 

704.9215(2)(e) 

The renewable energy plan set forth in this ERCR Plan continues Nevada Power's RPS 

compliance planning and advances important facets of SB 123, namely developing renewable 

energy for our state and providing jobs for the recovery of our economy. The Preferred Plan 

efficiently and effectively meets the requirements of the Commission's regulations implementing 

that legislation by meeting the requirements for new renewable energy RFPs and new utilitysponsored construction or acquisition of renewable energy facilities. SB 123 and the associated 

regulations related to renewable energy require Nevada Power, in its ERCR Plan filing, to 

provide, at a minimum, for a) the construction or acquisition of 50 MW of electric generating 

capacity from renewable energy facilities, and b) the issuance of RFPs for 300 MW of electric 

generating capacity from renewable energy facilities. The renewable energy plan complies with 

the requirements set forth in SB 123 and supports Nevada Powers continued compliance with the 

RPS. 

The Preferred Plan will solidly position Nevada Power to meet the requirements of Nevada's 

RPS. These requirements grow to 25 percent by 2025, with five percent of the RPS that must be 

generated or acquired from solar resources (growing to six percent starting in 2016). These RPS 

requirements continue to grow in accordance with statutory requirements, even during periods of 

low or flat load growth. Nevada Power's ability to comply with the RPS is dependent on 

variables that will evolve over time, such as load, changes in law, continued successful operation 

of the existing portfolio and stable resource for projects. Compliance with the RPS requires the 

Company to measure against a continuously evolving target. Nonetheless, Nevada Power expects 

to be fully compliant with the RPS requirements during the Action Plan Period of the ERCR 

Plan, 2015, and beyond. Execution of the Preferred Plan that includes new renewable 

construction of 15 MW of solar PV at Nellis, 200 MW of solar PV at Moapa, and RFPs for 300 

MW of additional renewable energy will position the Nevada Power and its customers to meet 

future RPS requirements through at least 2033. Please see Section IV for a more detailed 

discussion of these facilities. 

While Nevada Power's renewable energy portfolio is adequate to satisfy the RPS through the 

Action Plan Period, the Company must diligently plan to meet its ongoing RPS compliance 

requirements after the Action Plan Period. Although no new power purchase agreements with 

renewable energy projects are presented for approval in this ERCR Plan, the Company is asking 

the Commission to approve an RFP program, the completion of 15 MW of solar PV and 200 

MW of solar PV, and solar siting work described below. 

28 
EXISTING RENEW ABLE ENERGY CONTRACTS 

Nevada Power has been able to contract for many of Nevada's prime renewable resources 

through long-term PPAs, and is now seeing the results of these efforts as numerous projects 

complete construction and begin operating. The following list sets forth all of the facilities that 

are operating and contributing to RPS requirements as of the end of 2013: 

1. Goodsprings Recovered Energy Generation Station, waste heat-7.5 MW 

2. Desert Peak 2 Geothermal Power, geothermal PPA-25 MW 

3. Faulkner 1 Geothermal Power Plant, geothermal PPA-49.5 MW 

4. Galena 2 Geothermal Power Plant, geothermal PPA-13 MW 

5. Jersey Valley Geothermal Project, geothermal PPA-22.5 MW 

6. McGinness Hills Geothermal Project, geothermal PPA-48 MW 

7. Salt Wells Geothermal Plant, geothermal PPA-23.6 MW 

8. Stillwater 2 Geothermal Plant, geothermal PPA-47.2 MW 

9. Tuscarora Geothermal Plant, geothermal PPA-32 MW 

10. Apex Nevada Solar, solar PPA-20 MW 

11. Las Vegas Valley Water District ("LVVWD"; six projects), solar PPA-3 MW 

12. Mountain View Solar, solarPPA-20 MW 

13. Nellis Air Force Base, Solar Star, solar PPA-13.2 MW 

14. Nevada Solar One, solar PPA-46.9 MW (balance of plant contracted to Sierra) 

15. Silver State Solar, solar PPA-52 MW 

16. Spectrum Nevada Solar, solar PPA-30 MW 

17. Stillwater 2 Solar, solar PPA-22 MW 

18. Spring Valley Wind, wind PPA-151.8 MW 

19. CC Landfill Facility, gas recovery PPA-12 MW 

20. Lockwood Renewable Energy Facility, gas recovery PPA-3.2 MW 

29 
SECTION VI- SUMMARY OF ENERGY SUPPLY PLAN: NAC § 704.9215(f) 

Pursuant to NAC § 704.9061, an "Energy Supply Plan" means a plan that: 

1. Establishes the parameters of an energy supply portfolio for a utility for 

the three-year period covered by its Action Plan and which balances the 

objectives of: 

a) 

b) 

c) 

Minimizing the cost of supply; 

Minimizing retail price volatility; and 

Maximizing the reliability of energy supply over the term of the 

energy supply plan. 

2. Is composed of a purchased power procurement plan, fuel procurement 

plan and risk management strategy. 

Nevada Power's 2015 Energy Supply Plan Update ("ESP Update") will be filed concurrent with 

this 2014 ERCR. The ESP Update provides the Company's recommended power procurement 

plan, fuel procurement plan, and risk management strategy based on current conditions. This 

ESP may need to be adjusted over the Action Plan period to adequately respond to changes in the 

market, changes in the Company's expected loads and resources, and other significant changes in 

circumstances. Pursuant to NAC § 704.9504, Nevada Power may deviate from the approved ESP 

"to the extent necessary to respond adequately to any significant change in circumstances not 

contemplated by the Energy Supply Plan." If Nevada Power deviates from its approved ESP, it 

will inform the Commission's Staff of the deviation as soon as practical. In addition, Nevada 

Power will include in its next annual deferred energy application a description of and 

justification for the deviation. If a deviation from the ESP is of a continuing nature, Nevada 

Power will seek authority from the Commission to deviate prospectively from the ESP in an 

update of the ESP filed pursuant to NAC § 704.9506, or by filing an amendment to the ESP 

pursuant to NAC § 704.9504(3). 

Pursuant to NAC §§ 704.9508(2) and 704.9494, the Commission may determine that the 

elements of an ESP are prudent if the following requirements are met: 

• The ESP balances the objectives of minimizing the cost of supply, minimizing retail price 

volatility and maximizing the reliability of supply over the term of the plan. 

• The ESP optimizes the value of the overall supply portfolio of the utility for the benefit of 

its bundled retail customers. 

30 
• The ESP does not contain any feature or mechanism that the Commission finds would 

impair the restoration of the creditworthiness of the utility or would lead to a 

deterioration of the creditworthiness of the utility. 

The 2015 ESP Update balances the objectives of minimizing the cost of supply, minimizing 

retail price volatility and maximizing the reliability of supply over the term of the plan. 

Price volatility risk remains, particularly with respect to fuel supplies. Assuming approval of the 

proposed ESP Update, the estimated costs of fuel and purchased power costs during the Action 

Plan period under the low, base, and high fuel & purchased power price scenarios are 

summarized in Figure S-4. 

FIGURE S-4 

ESTIMATED COST TO SERVE FOR 2015 

The Company calculated the projected Base Tariff Energy Rates ("BTERs") and Deferred 

Energy Accounting Adjustment ("DEAA'') rates for 2015 under the low, base, and high fuel and 

purchased power price forecasts. The projected BTER and DEAA rates, along with estimated 

carrying charges, are presented in Technical Appendices. 

The expected cost to serve and forecasted rates are expected to remain within a reasonable band 

under the Company's proposed procurement strategies. 

This ESP optimizes the value of the overall supply portfolio of the utility for the benefit of its 

bundled retail customers. 

The Company will continue to monitor and adjust the power portfolio. By monitoring the 

portfolio, Nevada Power can identify and account for changes in load, cost, volatility, reliability, 

and other commercial or technical factors. Day-ahead or day-of power purchases are expected to 

be made if there is an open position, or if system costs of decremental energy exceed the 

additional cost of market purchases. Similarly, day-ahead or day-of power sales are expected to 

be made as opportunities appear, including spot, fixed price, or indexed agreements as specified 

in the Energy Risk Management and Control Policy. The Company intends to continue to issue 

31 
reverse RFPs for the prospective forward sale of heat rate call options, as specified in the 

Portfolio Optimization Procedures Manual. 

This ESP does not contain any feature or mechanism that would impair the restoration of the 

creditworthiness of the utility or would lead to a deterioration of the creditworthiness of the 

utility. 

Historically, the Commission has implemented an energy supply planning process and the 

Company's credit has improved. Currently, the Company is able to provide financing for this 

ESP without impairing its creditworthiness, assuming timely recovery under current rate 

recovery mechanisms. 

A. POWERPROCUREMENTPLAN 

The Company's power position for 2015 is projected to be 250 MW open. The Company does 

not propose to take any short-term action to close the position at this time. If Nevada Power later 

determines a need for additional capacity or energy, the Company will procure needed products 

through a competitive bidding process. Any proposed purchases of greater than three years in 

duration will be submitted to the Commission for approval in accordance with NAC §§ 704.9113 

and 704.9512. In addition, Nevada Power will continue to make forward and short-term sales of 

resources not expected to be needed to serve native load. 

The Company currently anticipates satisfying the RPS through the Action Plan Period based on 

current load forecasts and current renewable supply projections. The Company's goal for shortterm purchases of renewable energy is to augment, not supplant, supplies from long-term 

renewable energy PPAs by helping to close gaps resulting from under-producing, late and 

cancelled projects. To the extent short-term purchases can be made on an opportunistic basis, 

they help Nevada Power meet its RPS requirements and bridge to between project completion 

dates. In addition, the Company expects to continue with the past practice of purchasing PCs 

from customers in Nevada who host renewable energy systems with uncommitted PCs. 

B. GASPROCUREMENTPLAN 

The gas procurement plan has three components: physical gas procurement plan; gas 

transportation plan; and gas hedging plan. 

Physical Gas Procurement Plan. Nevada Power employs a four-season laddering strategy for 

physical gas purchases through which 25 percent of projected monthly gas requirements per 

season are procured, subject to the availability of conforming bids and the willingness of 

32 
suppliers to accept reasonable commercial terms. All of Nevada Power's physical gas is expected 

to come from the Rocky Mountain gas supply basin. 

Gas Transportation Plan. Nevada Power is requesting acceptance and approval of its gas 

transportation plan. Presently, no contracts will be discontinued. Two existing gas transport 

contracts with Kern River Gas Transmission Company are set to expire on September 30, 2016, 

and require a decision to extend by September 30, 2015. Nevada Power is requesting approval to 

renew these two contracts at lower Period Two21 rates for rolled-in rate service for up to fifteen 

years, resulting in lower annual costs by approximately $0.7 million. Nevada Power is also 

requesting approval to acquire additional firm gas transportation capacity, up to 40,075 

MMBtu/day, through a competitive bid process as part of the proposed gas transportation 

strategy. The additional capacity will assist in minimizing any future open position with respect 

to firm interstate gas transportation. Nevada Power will continue to purchase firm delivered gas 

to reliably meet small open positions. As part of the acquisition of LV Cogen, Nevada Power 

will assume and maintain two gas transportation agreements with Southwest Gas Company. 

Gas Hedging Plan. For delivery periods April 2015 to March 2016, the Company proposes to 

procure fixed physical natural gas in the amount of 25,000 MMBtu/day to cover two gas seasons. 

The Company will continue to monitor the natural gas market fundamentals and recommend 

changes to the hedging strategy in an ESP Update or ESP Amendment as necessary. Should the 

Company determine that additional hedging would be in the best interest of its customers for 

periods beyond March 2014, it will make a specific proposal to the Commission in its next ESP 

filing, a future ESP update or in an ESP amendment filed pursuant to NAC § 704.9504(3). 

C. COALPROCUREMENTPLAN 

Nevada Power is proposing to continue the current coal procurement strategy containing the 

following elements: 

• Fill Reid Gardner Unit 4's coal requirements for 2015 via spot market solicitations as 

necessary. 

D. RISK MANAGEMENT STRATEGY 

The Company's risk management strategy includes: 

• Detailed corporate governance and risk control policies and procedures; 

21 Kern River Gas Transmission Company's Tariff in Section 30.l(c), Sheet No. 299 defines Period Two as "The 

contract term that commences when the primary term of an Eligible Shipper's Period One transportation service 

agreement ends and during which an Eligible shipper will be charged Period Two rates." 

33 
• Compliance with approved supply plans; 

• Reduced reliance on volatile wholesale markets; 

• Increased fuel diversity; 

• Use of competitive procurement processes; 

• Gas hedging strategies; and 

• Market monitoring. 

Risk Control measures the Company's energy portfolio against specific criteria, including 

transaction approval limits, test period mark-to-base, value at risk, and credit risk limits. Specific 

measurements are compared to the approved exposure notification thresholds. Reports are 

prepared to identify, track and report compliance with the Company's risk policies. 

Credit Risk Management mitigates risk of the organization by reviewing potential transactions 

with counterparties to make sure they comply with credit limits. All potential transactions are 

reviewed to determine the credit ratings, policy limits based on credit ratings, the current markto-market exposure of all current transactions, and whether the potential credit exposure 

calculations are within the Company's policy limits. 

SECTION VII - A SUMMARY OF THE ACTIVITIES, ACQUISITIONS, AND COSTS 

INCLUDED IN THE ACTION PLAN OF THE UTILITY: NAC § 704.9215(2)(g)22 

The Company seeks Commission approval of the following Action Plan items, which must be 

acted upon within the Action Plan period, 2015. Items denoted with an asterisk (*) meet the 

requirements ofNAC § 704.9512(2)(g) and Section 13(2)(b) ofLCB Rl31-13. 

A. LOAD FORECAST- ERCR & ESP 

• Approval of the load forecast that is provided in the Load Forecast, Market Fundamentals 

and Fuel and Purchase Power volume. Approval of the loads and resources tables for 

2015 that are presented in the ESP Update, Economic Analysis and Financial Plan 

volume. A finding that the load forecast is based upon substantially accurate data that has 

been adequately demonstrated and defended, and has been adequately documented and 

justified. A finding that the load forecast is appropriate for resource planning decision 

making through the Action Plan period.* 

B. FUEL AND PURCHASED POWER FORECAST- IRP & ESP 

• Approval of the fuel and purchased power price forecasts presented in the Load Forecast 

and Market Fundamentals volume. A finding that the fuel and purchased power price 

22 See LCB File No. Rl31-13, Sec. 13(2)(b). 

34 
forecasts are based upon substantially accurate data that has been adequately 

demonstrated and defended, and has been adequately documented and justified. A finding 

that the fuel and purchased power forecasts are appropriate for resource planning decision 

making through the Action Plan period.* 

C. ERCRPLAN 

(1) Retirement Plan 

• Approval to retire coal-fired generating units as shown in Table S-17. 

TABLE S-17 

RETIREMENT PLAN 

Unit Planning Retire or 

Capacity Eliminate 

Reid Gardner Generating 300MW Retire 

Station, Units 1, 2 & 3 

Reid Gardner Generating 257MW Retire 

Station, Unit 4 

Navajo Generating Station, 11.3 255MW Eliminate 

percent Ownership Interest 

Total Retired/Eliminated 812MW 

Planning Capacity 

Note: Retlre 1s to remove a umt permanently from serv1ce. 

Eliminate is to divest a utility's ownership interest in the facility. 

Date 

12/31/2014 

12/31/2017 

12/22/2019 

(2) 550 MW of Company-Owned Replacement Capacity, see Table S-18 

• A finding, pursuant to NAC § 704.0097, that good cause exists for deviating from 

LCB Rl31-13 § 12(8). 

• Approval to acquire 224 MW of intermediate gas-fired combined cycle capacity 

from LV Cogen Unit 2. 

• Approval to acquire 222 MW of natural gas-fired peaking capacity from SunPeak Generating Company. 

• Approval to invest approximately $471.6 million to acquire the development 

assets and complete the construction of the Moapa Solar Project, a 200 MW 

(nameplate) solar PV facility. 

35 
• Approval to acquire LV Cogen Unit 1 as a package with LV Cogen Unit 2. 

TABLE S-18 

550 MW COMPANY -OWNED REPLACEMENT CAPACITY 

(NON-TECHNOLOGY SPECIFIC) 

Unit Timing of Planning Type of Fuel Replacement Capacity Capacity 

LV Cogen Unit 2 1/1/2015 224MW Intermediate Natural 

Gas 

Sun-Peak Generating 6/1/2016 222MW Peaking Natural 

Unit Gas 

Moapa Solar Generating 10/1/2016 76MW Intermittent Solar 

Station 

LV Cogen Unit 1 10/1/2017 50MW Peaking Natural 

Gas 

Total Replacement 572MW 

Capacity 

Estimated 

Cost 

$130.8m 

$15.8m 

$438.1m 23 

$0.0 24 

$584.7m 

Note: Planmng capacity IS the rehable capacity at the hme of summer peak. With regard to the Moapa Solar 

Generating Station, the "nameplate" capacity is approximately 200 MW. 

(3) 350 MW of Replacement Renewable Capacity 

• Approval to issue three 100 MW RFPs for renewable resources pursuant to the 

schedule set forth in Table S-19. 

23 This estimate does not include an allowance for funds used during construction ("AFUDC"). 24 LV Cogen Unit 1 will be acquired as a package with LV Cogen Unit 2. 

36 
RFP Schedule 300 MW 

EVENT 

Release Public Notice 

Short List/Start Negotiations 

Conclude Negotiations 

TABLE S-19 

THREE 100 MW RFPS 

2014 

10/01/14 

02/13/15 

03/30/15 

IRP (Amendment) Approval Filing 07/01/15 

PUCN Approval Timeline 12/28/15 

2015 2016 

12/14/1525 11/15/16 

03/11/16 02/24/17 

04/22/16 04/07/17 

06/15/16 06/01/17 

10/28/16 10/14/17 

• Approval of the Nellis Solar Array II, a 15 MW solar PV facility located on the Nellis 

Air Force Base at a cost of approximately $54.5 million (excluding AFUDC). 

Included in the budget are the new distribution interconnection facilities to 

interconnect the facility with the Company's Nellis 69/12 kV substation at a cost of 

$4.6 million and the distribution interconnection facilities to interconnect the PV 

facility and Nellis Air Force Base to the Company's Lincoln 138/12 kV substation 

and a new Clinton 69/12 kV substation at a cost of$3.2 million, excluding AFUDC. 

• Approval to spend up to $4.4 million as shown in Table S-20 on initial siting 

activities related to one or more proposed new solar PV generating facilities northeast 

ofLas Vegas in Clark County, Nevada. 

25 LCB Rl31-13 § 12.3(a) requires that the Company shall not accept proposals until the previous RFP is complete. 

Proposals would be accepted (due) in February 2016. 

37 
TABLE S-20 

CLARK COUNTY SOLAR DEVELOPMENT BUDGET 

TOTAL 

PRE- 2015 TOTAL26 

2015 

Permitting costs $95 $1,101 $1,196 

Project management and 40 150 190 internal labor 

Outside services: design, 40 600 640 consulting, legal, etc. 

BLM auction 2,347 2,347 

TOTAL $2,522 $1,851 $4,373 

D. RENEW ABLES 

• Approval of the Renewable Expansion Plan set forth in Section 2.D. of the Supply 

Side Plan. 

E. TRANSMISSION 

• Harry Allen Transformer. Because Nevada Power does not seek to include the Harry 

Allen 1,500 MVA, 500/230 kV autotransformer in the regulatory asset to be established 

for SB 123 eligible projects, Nevada Power will file a brief amendment seeking separate 

approval of the new Harry Allen 1,500 MVA, 500/230 kV autotransformer 45 days after 

it files the ERCR. The Company will rely on the information provided in this ERCR in 

making its amendment filing and seek to consolidate the amendment requesting approval 

for the Harry Allen 500/230 kV transformer with the ERCR filing for hearing purposes. 

• To interconnect the Moapa Solar Project to the Company's transmission system at Harry 

Allen, the Company requests approval to spend approximately $1.7 million on network 

upgrades at the Harry Allen substation. This work will include site metering and 

communication, substation entrance work, permit assistance, environmental work and 

protection review. 

26 If permitting efforts continue beyond 2015, estimated costs total approximately $7.3 million. 

38 
F. DEMAND SIDE PROGRAMS 

Nevada Power is not seeking approval of any change to its approved DSM Plan. The DSM 

portfolio of programs is consistent with that included inN evada Power's application for approval 

of its 2012 Integrated Resource Plan, as modified by the Commission's order and approved on 

December 24, 2012 in Docket 12-06053. The estimated energy efficiency savings attributed to 

this portfolio is consistent in all of the alternative expansion plans evaluated for this Emissions 

Reduction and Capacity Replacement plan. As required by the Commission's regulations, the 

Company will file an update to its 2015 DSM Plan by July 1, 2014. 

G. ENERGY SUPPLY PLAN 

Nevada Power's Energy Supply Plan is described in Section VI above. 

H. ACTION PLAN BUDGET 

Table S-21lists the individual projects and the associated budgets for the Action Plan period. 

39 
Generation 

Action Plan Projects 

LV Cogen 1 and 2 

Sun-Peak 

TABLE S-21 

ACTION PLAN BUDGET27 

NEVADA POWER COMPANY 

ESTIMATED CASH FLOWS 

(millions excluding AFUDC) 

Total PreTotal 2015 

$ 130.82 

$ 15.83 

Subtotal Generation $ 146.65 $ -

Renewables 

Nellis Solar II 

Moapa Solar 

Clark County Solar Development 

Subtotal Renewables 

Transmission 

Harry Allen ("HA") Transformer 

Breaker Bay at HA for Moapa 

previously approved 

ON Line (Nevada Power's portion 95%) 

WestConnect membership 

Subtotal transmission 

Demand Side 

Per Approved DSM Plan 

Subtotal DSM 

Total 

$ 54.50 

$ 438.09 $ 6.00 

$ 4.37 $ 2.52 

$ 496.96 $ 8.52 

$ 46.70 

$ 1.70 

$ 48.40 $ -

$ - $ -

$ 692.01 $ 8.52 

Action 

Plan 2015 

$ 130.82 

$ 15.83 

$ 146.65 

$ 54.50 

$ 192.21 

$ 1.85 

$ 248.56 

$ 0.94 

$ 1.70 

$ 0.12 

$ 0.15 

$ 2.91 

$ 53.05 

$ 53.05 

$ 451.17 

NonAction 

Plan 

Period 

$ -

$ 239.88 

$ 239.88 

$ 45.77 

$ 45.77 

$ -

$ 285.65 

Expected 

Completion/ 

In-service 

12/31/2014 

12/31/2014 

12/31/2015 

10/1/2016 

12/31/2016 

6/1/2017 

12/31/2015 

12/31/2015 

27 Harry Allen Transformer. Because Nevada Power does not seek to include the Harry Allen 1,500 MV A, 500/230 

kV autotransformer in the regulatory asset to be established for SB 123 eligible projects, Nevada Power will file a 

brief amendment seeking separate approval of new Harry Allen 1,500 MV A, 500/230 k V autotransformer 45 days 

after it files the ERCR. The Company will rely on the information provided in this ERCR in making its amendment 

filing, and seek to consolidate the amendment requesting approval for the Harry Allen 500/230 kV transformer with 

the ERCR filing for hearing purposes. 

40