## !contact Filer Regarding Image Clarity! BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA Application ofNevadaPowerCompany d/b/aNVEnergy Seeking Acceptance oftheFirstAmendmentto its 2013- 2032 integratedresource plan and its Energy SupplyPlan Updatefor 2015, which include an emissions reduction and capacityreplacementplan filed pursuanttoNRS § 704.7311 et seq.
VOLUME 3 OF 15 DocketNo. 14-05

EMISSIONS REDUCTION AND CAPACITYREPLACEMENT PLAN SUMMARY DESCRIPTION PAGE NUMBER SUMMARY 2

## SUMMARYSECTION 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: NevadaPower and SierraPacific PowerCompany d/b/aNVEnergy ("Sierra"). In preparing the ERCR filing, Nevada Power sought to develop a balanced plan, weighing a number offactors such as the effects on customers, resource diversity and economic benefits to the State ofNevada. 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 bythe PublicUtilities Commission ofNevada (the "Commission"). The result is a cost-effective, orderly and structured plan. Underthe plan, NevadaPowerwill retire or eliminate 812 MW ofcoal-fired generation over the next six years, acquire 496 MW ofexisting 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 newrenewable energy facilities (the "PreferredPlan"). The purpose ofthis Summary Volume is to provide an overview ofNevadaPower'sERCRPlan. 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 ("ActionPlan") forthe Commission's consideration. A. EMISSIONS REDUCTION AND CAPACITYREPLACEMENT. Background. On June 11, 2013, Governor Brian Sandoval signed SB 123, marking the completion ofa bi-partisan effort to change Nevada's energy landscape. 1 Sponsored by Senator Atkinson, Assemblywoman Kirkpatrick, and Assemblyman Bobzien, the legislation requires Nevada Powerto prepare and file with the Commission an ERCRPlan. Section 704.7316 ofthe NevadaRevised Statutes ("NRS") prescribes the minimum elements oftheERCRPlan. NRS § 704.7316(2)(a) provides for the retirement or elimination in three phases ofnot 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 ofcoalfired generation on orbefore December 31, 2017, followed by 250 MW ofcoal-fired generation on orbeforeDecember 31, 2019.

1 Senate Bill 123 receivedunanimous supportfrom Nevada's 11 Democratic and 10 Republican Senators. 1NRS § 704.7316(2)(c) provides that retired or eliminated coal-fired generation is to be replaced by 550 MW ofconstructed or acquired generating capacitythatis 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 ofreplacement 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] ofproduction of energy." 2 According to Senator Atkinson, the legislation took "a distinct and bold new approach to the development ofrenewable 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 ofall 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 ofwhich met the ERCR Plan requirements. Nevada Powertested each ofthe 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 ofrevenue 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 Nevadaby advancing renewable energy andjobs in the state. The Preferred Plan meets the three main requirements oftheERCRPlan.

2 See Assembly Journal at 241 ("This session we are making the choice to move our state forward by moving away from thisform ofproduction ofenergy.") (Statement ofAssemblymanBobzien). 3 See Senate Journal at 8 ("The bill also makes a distinct and bold new approach to the development ofrenewable energy for our State.") (Statement ofSenatorAtkinson). 4 See Assembly Journal 241("Nevada has a bright future with clean energy production and the finding ofsolutions for climate change.") (Statement ofAssemblymanBobzien). 5 See Senate Journal at 8 ("The bill requires NV Energy to take appropriate and necessary steps to develop 350 megawatts ofnewrenewable facilities, and provides constructionjobs at a critical point in the emergingrecovery of Nevada'seconomy.") (Statement ofSenatorAtkinson). 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 healthofall Nevadans, and for oureconomy."). 21. Retire orEliminate atLeast 800 MW ofCoalFired Generation Nevada Power must file with the Commission a plan for the retirement or elimination ofat 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 requirementby proposingthe following action as shown in Table S-1. TABLE S-1 PROPOSED RETIREMENT ORELIMINATIONOF 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, Unit4 Navajo Generating Station, 11.3 255MW Eliminate percent Ownership Interest TotalRetired/Eliminated 812MW PlanningCapacity Note: Retlre 1s to remove aumtpermanently from serv1ce. Eliminate isto divest autility's ownership interest inthe facility. Date 12/31/2014 12/31/2017 12/22/2019

The details ofthe retirements, including schedules and costs for decommissioning, are described inthe Generation Sectionbeginningwith the Supply SidePlan, Section 2.A.3. 2. 550 MW ofReplacement "Planning" Capacity Nevada Power developed a package ofreplacement generating units that adds company-owned capacity in an orderly and structured manner, and also provides fuel diversity. Equally important, instead ofproposing construction ofnew gas-fired generating units, the package provides for the acquisition ofexisting units. As shown in Table S-2, the first addition ofreplacement capacity occurs on January 1, 2015, whenNevadaPowerplans to acquirethe existing 224 MWLas Vegas Cogeneration ("LV Cogen") Unit 2. The next addition ofreplacement capacity occurs on June 1, 2016, when an existingpowerpurchase agreement ("PPA") terminates, and the existing 222 MW Sun-Peak Generating Unit becomes replacement capacity. NevadaPower adds the third element ofthe replacement capacity package in October 2016, when the 200 MW Moapa Solar Project (which provides 76 MW ofplanning capacity) is placed into service. The final element ofthe replacement capacity package involves the addition of 50 MW of incremental capacity in
7 See Regulation Section 12, Para. 2. 3October 2017, when NevadaPower's existing PPAwith LV Cogen Unit 1becomes 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 ofthe proposed investments that will reduce the overall cost ofproviding service. The Preferred Plan results in a 20-year present worth ofrevenue 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 ofa 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 LVCogen Unit2 1/1/2015 224MW Intermediate Sun-Peak Generating 6/1/2016 222MW Peaking Unit Moapa Solar Generating 10/1/2016 76MW Intermittent Station LVCogen 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 offirm electnc generatmg capacity reqmredto meetNevadaPower's peak load and provide aplanningreserve marginthat is authorizedby the Commission. Withregard to the Moapa Solar Generating Station, the "nameplate" capacity is approximately 200 MWbut aplanning capacity of76 MW. The details ofthe replacement capacity, including schedules and costs are described in Section IV ofthis Summary and Section 2.A.4. ofthe Supply Side Volume for LV Cogen Units 1 and 2,

8 Nev. Rev. Stat. §704.7361(2)(c). Million is abbreviatedto "m" and thousand is abbreviated to "k." 9 This estimate does not include an allowance forfunds used during construction ("AFUDC"). 10LVCogenUnit 1will be acquired as apackage with LV CogenUnit 2. 4and Sun-Peak, and in Section V ofthis Summary and Section 2.D.6. ofthe Supply Side Plan the forthe Moapa SolarProject. 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 theEnergy SupplyPlan filed with this ERCRPlan. 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 Commissionfor 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 aresult ofcontinued rulemaking known as Phase 2 ofDocketNo. 13-06023. The Company anticipates that it will request interim approval ofPPAs in an effort to allow projects eligible for an investment tax credit ("lTC") to meet a 2016 commercial operation date and to allowthe Companyto maintain schedule compliancewith SB 123 requirements.

5TABLE S-3 RENEWABLE RFP ESTIMATED SCHEDULE RFP Schedule 300 MW 

### EVENT 2014 2015 2016 ReleasePublicNotice 10/01/14 12/14/15 11 11/15/16 Initial ShortList 01/13/15 02/11/16 01/24/17 Final ShortList 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 PUCNApproval Timeline 12/28/15 10/28/16 10/13/17
The details ofthe renewablePPAs, Nellis SolarArray II and Clark County site permittingfor future renewables is described in the Supply Side Plan, Section 2.D. Analysisof Alternatives. NevadaPowerconsidered 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 ofsimple-cycle, peakingunits in 2018 (Case B); (3) areplacementpackage ofdiverse peaking (272 MW), intermediate (224 MW) and intermittentunits (approximately 200 MW, or approximately 76 MW planning), which is the Company's Preferred Plan (Case C); and, (4) a modified replacement package ofpeaking (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 powerforecast, 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. 6Case

Case A

Case B

Case C

CaseD TABLE S-4 SUMMARY-BASE LOAD FORECASTWITH BASE FUELAND PURCHASED POWER- MID CARBON



### ---- --- BASE WAD BASE FUELMid CarbonNo Sales lOYear 20Year 30Year lOYear 20Year 30Year PWRR PWRR PWRR PWRR PWRR PWRR 2015-2024 2015-2034 2015-2044 Increase Increase Increase vs LeastCost vs LeastCost vs LeastCost lOYear Description (million$) (million$) (million$) (million$) (million$) (million$) PWRRRank

2xl CC2018 ERCR $ 13,871 $ 24,199 $ 31,903

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

200 PV LVC SPERCR $ 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 ofalternative plans, the PreferredPlanresulted in a 20-yearPWRRthatunderbase assumptions is within 0_008 percent ofthe case with the lowest PWRR (the construction of a single large natural gas-fired combined cycle powerplant), 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 ofa 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 inthe 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 ofa portfolio of generation resources that rely on different means ofgenerating electricity
- has the potential to reduce the impactthat uncontrollable changes in fuel markets have on customers_ Fuel diversity assures economic and energy security; too great a reliance on any one source ofenergy 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 maintainingjust, reasonable and predictable rates_

7A variety ofdifferent resources can be used to generate electricity, including coal, natural gas, uranium, wind, water, solar, geothermal and biomass. Each ofthese options has a unique cost profile, based on the supply and demand ofthe 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 differentimplications 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 ofgas-fired peaking capacity, and 76 MW (planning capacity) ofrenewable intermittent capacity. The inclusion ofnew renewable energy facilities in the Preferred Plan provides an element of fuel diversity, which is particularly important in light ofthe retirement ofcoal-fired generation. SeeFigure S-1, below. FIGURE S-1 ENERGYPRODUCTIONBY CATEGORY PREFERREDPLANAND ALTERNATE PLAN Energy Production byCategory AlternatePlan 2018

B. SUMMARYVOLUME REQUIREMENTS 12 Energy Production byCategory PreferredPlan 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, includingNellis AirForceBase.

12 This Section ofthe Summary contains an integrated evaluation ofthe components ofthe resource plan, which relates the preferred planto the objectives ofthe strategic plan. See NAC §704.9215(2)(11). 8Nevada Power is regulated by the Commission and the Federal Energy Regulatory Commission ("FERC"). Nevada Power's primary place ofbusiness 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 NEVADAPOWER SERVICE TERRITORY,EXISTING TRANSMISSIONAND GENERATION

With the Commission's leadership and support, Nevada Power has reduced its reliance on volatile wholesale markets in recent years. In 2008, NevadaPowergeneratedjust67.5 percent of its total energy requirements from Company-owned facilities, while purchasing the remaining 32.5 percentfrom neighboringutilities and renewable energy developers. NevadaPowernow has sufficient Company owned and/or controlled generation to meet nearly all ofits 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 9that 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 overNevadaPower'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), bybuilding or purchasingtransmission, and by purchasingfuel (natural gas and coal). ERCRPlanningPeriodandActionPeriod. 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 ofthe 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 andSelection 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'sregulations, including:
• ThePWRRfor each alternative (see NAC §704.9357(3)) • The present worth of societal cost ("PWSC") for each alternative (see NAC § 704.9357(4)) • Whetherthe plan mitigates risk (see NAC §704.9357(5)) • Whetherthe 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 § 704.9357(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 ofattributes, without assigning specific weightsto any particularfactor. 10As 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 conductedby modeling all alternative plans underhigh and low fuel and purchasedpowerprices; high and low load forecasts; and mid, high, and low carbon price impacts, including a scenario with no future carbon orgreenhouse gas ("GHG") cap-and-tradeprogram. Each ofthe alternative plans is run under 12 sensitivities as identified in Table S-5. TABLE S-5 SUMMARY OFANALYSIS 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 lowestPWRRunderbase 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 ofthe total PWRR. In light ofthe objective
- the orderly and structured replacement ofretired 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 of274 MW ofgas-fired generation and the addition ofanother 500 MW ofPV). The 11Preferred Plan also provides a more balanced outcome than the Alternate Plan, Case A (the construction ofa 2x1 combined-cycle generatingunit). 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 ofconstructing a single natural gas-fired 576 MW combined-cycle generating unitby June 1, 2018, at least $711 million (2015 dollars without an allowance for funds used during construction). In contrast, the estimated capital cost ofthe PreferredPlan is $584.7 million. 13 Importantly, the construction ofa single combined-cycle unit would not receive the benefit ofthe 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 normalizethe tax credit overtime, the creditreduces the overall cost ofproviding serviceto customers. Second, the construction ofa 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 ofpeaking capacity, 76 MW ofintermittent capacity and another 6 MW of intermittent capacity. The package thus expands the capacity diversity of Nevada Power'sportfolio. Third, the construction or acquisition of a single-combined cycle unit or the construction of simple-cycleunits would not enhance fuel diversity withinNevadaPower's generating fleet. The first option (Case A) adds 597 MW ofnatural-gas fired combined-cycle generating capacity; the second option (Case B) adds 568 MW ofnatural-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 withinNevadaPower's portfolio, but also increases the fuel diversity withinthe portfolio. Fourth, and possibly most importantly, the Preferred Plan provides a distinct and bold option for Nevada. The package provides "constructionjobs" in the renewable energy industry "at a critical

13 The estimated capital costs ofthe 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 pursuantto federal law, NevadaPower's customersrealize the benefit ofthe credit overtime. 12point in the emerging recovery ofNevada'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 bestvalue for Nevadans as the Moapa SolarProject should generate up to $181 million inbenefitsto Nevada. 14 ERCR Plan Long-TermResourcePlanning. 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 pursuantto SB 123. Nevada Powerwill seek permission in its triennial IRP filing (due 2015), to ensurethat it maintainsthe ability to continue to provide industry-leading reliable electric service atjust and reasonable rates throughout the planning period. Between 2014 and 2022, Nevada Powermust replace not only coal-fired generating capacitybut capacity from expiring long-term purchased power agreements. In total, Nevada Power must replace approximately 2,320 MW of generating capacityby 2022, as is shown in Table S-6. TABLE S-6 CAPACITYELIMINATIONS 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 WaterAuthorityTransaction 130 2018-C 

### I Navajo 255 2019-E 

# leiark 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 MWby 2018. Even ifthe Company takes action and adds the diverse portfolio of replacement capacity included in this ERCR Plan, Nevada Powerprojects thatits OpenPosition will growto approximately 1,000MWby 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 openposition and, in fact, is inthe process ofpursuingthose options. 13FIGURE S-3 OPENPOSITIONWITHNO ACTIONAND WITHCASE C (PREFERREDPLAN)

B ERCR Preferred Plan No New Generation

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 

### ERCRandtheStrategicPlan. 16 Nevada Poweris 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 ERCRPlan consistentwithNevada Power's strategic plan and is supported and endorsed atthe highest levels ofNVEnergy. 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 ofits 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 canreliably meetthe needs ofits customers. Taking orderly and structured steps now-by executing on the acquisition ofexisting generating resources and beginning construction of new generating resources-will ensure that the

16 See LCB File No. Rl31-13, Sec. 13(2)(a). 14Company and its customers are well-positioned to maintain a strong generation portfolio and avoidthe risks ofhigh levels ofenergy market exposure inthe 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 ofSB 123, namely the development ofrenewable energy in Nevada and providing Nevadajobs 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. NVEnergy will complete an analysis ofdistributed generation and subscription options. Section VII describes the renewable energy action items thatthe 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 ofexisting gas-fired generating units and construction ofnew renewable generation that complements the Company's existing fleet ofowned generation and long-term PPAs. 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 customersby investigating generation acquisition opportunities and long-term PPA extensions where it is economically beneficial. Section VII ofthis Summary describes the generation action items thatthe 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 ofthe 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 ofNevada'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 ofthe transmission plan are intended to preserve and enhance the safety, reliability and effectiveness ofthe Company's transmission system. Section VII describes the transmission action items thatthe Companyis requesting approval. SECTIONII- 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 15filed 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. NevadaPower seeks approval ofthe 2014 ERCRForecast. 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 ofEnergy'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 percentrespectively 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 ofcustomer usage (measured in terms ofkWh/per customer). Residential average use is projectedto 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 ofthe 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 outin 2014. Afull discussion ofcustomerusage 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 ofapproximately 65 GWhfrom 2012 to 2013. 16TABLE S-7 HISTORICAL (WEATHERNORMALIZED) 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 StreetLighting

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 HISTORICALAND FORECASTED CUSTOMERCOUNTS 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% 

### RequiredFigures. Table S-9 shows the forecast ofenergy sales for each ofthe twenty years of the planning period under the low, base and high scenarios, both with and without DSM. Table S-10 shows the forecast ofpeak demand for each ofthe 20 years ofthe planning period, also under the low, base and high scenarios with and without DSM. Table S-11 is a summary ofthe DSMMW on peak, by program. The values are the cumulativeincremental additions from 2013.

18Year 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 WITHAND 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 ofsolar PV and windnetmetering.

19Year 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 HIGHPEAKDEMAND SCENARIOS WITHAND WITHOUTDSM PEAKDEMAND (MW) PEAKDEMAND (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 ofsolar PV and windnetmetering. TABLE S-11 DSMCONTRIBUTIONS 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 CommercialIncentives 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 LowIncome 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 ResidentialLighting 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 ResidentialHighEfficiency 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 EnergyEfficientPools 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 ThermalWater 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 DemandResponse (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 onthe expectedMWrealized at 5 pm ofthe peakday for the specifiedyear. These are notthe firstyear 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 527SECTION III- DEMAND SIDE PLAN SUMMARY: NAC § 704.9215(2)(c) The DSM portfolio ofprograms is consistent with that included in Nevada Power's application for approval ofits 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 ofthe alternative plans evaluatedfor this ERCRPlan. 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 ofexisting generating facilities coupled with the construction of new renewable facilities to replace retiring coal generation capacity. Case C includes the purchase ofLV Cogen on January 1, 2015, the Sun-Peak Generation Station on January 1, 2015, and construction ofthe 200 MW Moapa Solar Project, with an in-service date ofOctober 2016. LV Cogen-an existing gas-fired generator-includes 50 MW ofpeaking capacity from LV Cogen Unit 1 and 224 MW ofintermediate capacity from LV Cogen Unit 2. The cost ofacquisition ofLV Cogen is $130.8 million. 18 Sun-Peak Generation Unit-an existing gas-fired generator-includes 222 MW ofpeaking capacity. The cost ofacquisition ofthe SunPeak Generation Station is $15.8 million. 19 The cost ofconstructing the Moapa Solar Project is $438.1 million (excluding allowance of funds used during construction). The Moapa Solar Project provides 76 MW ofplanning capacity for a total planned replacement capacity package of572 MWto meetthe non-technology specificreplacement capacity SB 123 requirement. 20 The Preferred Plan also includes the 15 MWNellis 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 1and 2 The Company requests Commission approval to spend $130.8 million or $477/kW, to acquire the LV Cogen facility. LV Cogen consists oftwo combined cycle units with a total capacity of 274 MW. LV Cogen Unit 1is a 50 MW 1x1 natural gas-fired combined cycle unit that has been

18 The total transaction costs consist of$129.9 millionpurchase price plus $0.900million oftransaction 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'sPVIntegration Study. See Docket No. 11-03014, Technical AppendixItem SUP-ECON-6. 21in-service since 1994. LVCogen Unit 2 is a 224 MW dual 2x1 natural gas-fired combined cycle unitthat has beenin-service since 2003. b.) Sun-Peak GeneratingFacility The Company requests to spend $15.8 million or $71/kW to acquire the Sun-Peak facility. SunPeak consists ofthree simple cycle combustion turbine units with a total capacity of222 MW. Sun-Peakhas beenin-service since 1991. c.) Moapa SolarProject 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 SolarProject, a solarphotovoltaic ("PV") electric generating facility with an expected capacity of 200 MWac, measured at the delivery point. The Moapa Solar Project is being developedby RES Americas Development, Inc. ("RES") and will be located on reservation lands ofthe Moapa Band ofPaiutes, approximately 45 miles north east ofLas Vegas, Nevada. Based on the proposed capital cost and expected output, the renewable nature ofthe project requiring only Nevada's abundant solar resource for fuel, and taking advantage ofthe 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 Powercustomers. d.) Nellis SolarArray II The Company is seeking Commission approval to invest up to $54.5 million (without AFUDC) to build a 15 MW (alternating current) solarPVgenerating facility at Nellis AirForce Base. The solar facility would be built on the premises ofNellis Air Force Base and would interconnect directly to the Nellis Air Force Base electric distribution system. The Company must begin construction ofat least 50 MW ofnew 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 benefitfrom the 2.4 portfolio credit ("PC") multiplier associated with this project. In orderto receive the multiplier at least 50 percent ofthe energy produced mustbe 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 SidePlan, Section 2.D.5.

22e.) Clark County Solar SitingWork 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 ofLas Vegas in Clark County, Nevada. NV Energy has identified several locations capable of supporting approximately 500 MW ofsolar 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 LandManagementland, within ornearthe currentNevadaPowerright-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 ofits previous solicitation and contracting process used in securing renewable powerpurchase agreements. The Company expects to receive additional guidance from the Commission as a result ofcontinued 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) FigureEA-3- Sensitivities Conducted for Economic Analysis.

23Description GROSS SYSTEMPEAKWADFORECAST (Janmny 2014)

DSM NetMetering DemandResponse SYSTEMPEAK WAD FORECAST (1) (Janu:ny2014LoadForecast)

SNWAObligation NETSYSTEMPEAKWAD

Plannilll! ReseiVe Reauirement 12% REQUIREDRESOURCES RESOURCES (Itemized) Existilll! Internal GenemtionFacilities (Retire Date 12131/xx)

Clatk4(2020) Clatk9,10(9-2033,10-2034) ClatkPeakersll-22(2038) Goodsprings(2043) HanyAllen3 (2025) HanyAllen4 (2036) HanyAllen 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! GenerationReguirilll! orAffectilll!Imports

Hoover Navajo1,2,3(2019) TotalExistingGeneration H.annedInternal GenemtionFacilities 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
TotalPlannedlntem.alGeneration H.anned GenerationFacilities ReauiringImport 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

TotalPlannedGenerationRequiringImports TotalPlannedGeneration Less SchednledMaintenance

TOTALGENERATION TABLE S-12 L&RTABLE- 2015-2029 NEVADAPOWERCOMPANY- 2014 ERCR- BaseLoad 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 5,820o• 1RN oo 1RN % 1RN 07 1RN n 1RN 00 1RN

1RN 1RN 1RN 1RN
1RN 1RN 1RN

1RN 1RN 1RN Description Specific Purchases

FuturePurchases (ERCR) QualifyingFacilities NCA1(2022) NCA2(2022) Saguaro(2021) Total Qualifying Facilities Contracts(lntemal) LVCoG-en I (Buy,Retire2036) LVCoGenII(Buy,Retire2036) TotalContracts(Internal) Contracts (External) Griffith Silverhawk(SNWATransaction) Solari ACE Searchlight FotowatioApex RepublicApexLandfill NextLight Silver State JsyValNP DsrtPkNP (BlueMomdain)FlknerNP G..UNP SltWelNP StlWtrNP(PV& GEO) Tuscarora TuscaroraExpansion(Option) McGinness McGinnessHills Expansioo.

NextEraMomdainView FRVSpectrmu CrescentDlUles SpValley WMRE Lockwood 100MWPV_2016 100MWPV_2017 50 MWPV_2018 51MWGE0_2019 102MWGEO
_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 GROSSPURCHASES

Less ScheduledMaintenance TOTALNETPURCHASES AVAILABLE RESOURCES IMP OPENPOSITION LONGPOSITION TRANSWSSION BalancingAreaImportTransmission Capacity

BalancingAreaCustomerLoad (2) SystemImportTransmission Capacity

ImportCapacityfor ReseiVe Sharing (3) Transfer ofRenewable Resources Subtotal ImportCapacityfor otherNative LoadRequirements ImportCapacityRequirementforH.anned Genemtion EstimatedAvailable Transmission Capacity (4) TABLE S-13 L&RTABLE-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 NetMetering DemandResponse SYSTEMPEAK WAD FORECAST (1) (Janu:ny2014LoadForecast)

SNWAObligation NETSYSTEMPEAKWAD

Plannilll! ReseiVe Reauirement 12% REQUIREDRESOURCES RESOURCES (Itemized) Existilll! Internal GenemtionFacilities (Retire Date 12131/xx)

Clatk4(2020) Clatk9,10(9-2033,10-2034) ClatkPeakersll-22(2038) Goodsprings(2043) HanyAllen3 (2025) HanyAllen4 (2036) HanyAllen 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! GenerationReguirilll! orAffectilll!Imports

Hoover Navajo1,2,3(2019) TotalExistingGeneration H.annedInternal GenemtionFacilities 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
TotalPlannedlntem.alGeneration H.anned GenerationFacilities ReauiringImport 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

TotalPlannedGenerationRequiringImports TotalPlannedGeneration Less SchednledMaintenance

TOTALGENERATION TABLE S-14 L&RTABLE
- 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 NEVADAPOWERCOMPANY- 2014 ERCR- BaseLoad 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 7,417o• 1RN oo 1RN % 1RN 07 1RN n 1RN 00 1RN

1RN 1RN 1RN 1RN
1RN 1RN 1RN

1RN 1RN

1RN Description Specific Purchases

FuturePurchases (ERCR) QualifyingFacilities NCA1(2022) NCA2(2022) Saguaro(2021) Total Qualifying Facilities Contracts(lntemal) LVCoG-en I (Buy,Retire2036) LVCoGenII (Buy,Retire2036) TotalContracts(Internal) Contracts (External) Griffith Silverhawk(SNWATransaction) Solari ACE Searchlight FotowatioApex RepublicApexLandfill NextLight Silver State JsyVaiNP DsrtPkNP (BlueMomdain)FlknerNP G..UNP SltWeiNP StlWtrNP(PV& GEO) Tuscarora TuscaroraExpansion(Option) McGinness McGinnessHills Expansioo.

NextEraMomdainView 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 GROSSPURCHASES

Less ScheduledMaintenance TOTALNETPURCHASES AVAILABLE RESOURCES TABLE S-15 L&RTABLE
- 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 OPENPOSITION 745 838 705 692 1,000 704 556 981 787 627 807 617 609 704 799 LONGPOSITION TRANSWSSION BalancingAreaImportTransmission Capacity

BalancingAreaCustomerLoad (2) SystemImportTransmission Capacity

ImportCapacityfor ReseiVe Sharing (3) Transfer ofRenewable Resources Subtotal ImportCapacityfor otherNative LoadRequirements ImportCapacityRequirementforH.anned Genemtion EstimatedAvailable 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 TONEVADA POWER'SL&RTABLES (1) SNWA 125 MW contractthrough 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, LVVWD, Lincoln, Overton, East Side INewport, SB 211, , City ofHenderson, (3) Reserve sharing assistance assumed to change from the Southwest Reserve Sharing Group (SRSG) to the NorthwestPowerPooL (4) Estimates are based on summerpeak conditions only, 27SECTION V - SUMMARY OF THE RENEWABLE 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 ofthe Commission's regulations implementing that legislation by meeting the requirements for new renewable energy RFPs and new utilitysponsored construction or acquisition ofrenewable 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 ofRFPs for 300 MW ofelectric generating capacity from renewable energy facilities. The renewable energy plan complies with the requirements set forth in SB 123 and supports NevadaPowers continued compliance with the RPS. The Preferred Plan will solidly position Nevada Power to meet the requirements ofNevada's RPS. These requirements grow to 25 percentby 2025, with five percent ofthe RPS that must be generated or acquired from solarresources (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 thatwill evolve overtime, such as load, changes in law, continued successful operation ofthe existing portfolio and stable resource for projects. Compliance with the RPS requires the Companyto measure against a continuously evolvingtarget. Nonetheless, NevadaPower expects to be fully compliant with the RPS requirements during the Action Plan Period ofthe ERCR Plan, 2015, and beyond. Execution of the Preferred Plan that includes new renewable construction of 15 MW ofsolar PV at Nellis, 200 MW ofsolar PV at Moapa, and RFPs for 300 MW ofadditional 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 ofthese 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 ofsolarPV, and solar sitingwork described below.

28EXISTINGRENEWABLE 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 ofthe facilities that are operating and contributingtoRPS requirements as ofthe end of2013: 1. Goodsprings RecoveredEnergy Generation Station, waste heat-7.5 MW 2. DesertPeak2 Geothermal Power, geothermal PPA-25 MW 3. Faulkner 1Geothermal PowerPlant, geothermal PPA-49.5 MW 4. Galena2 Geothermal PowerPlant, geothermal PPA-13 MW 5. Jersey Valley Geothermal Project, geothermal PPA-22.5 MW 6. McGinnessHills Geothermal Project, geothermal PPA-48 MW 7. SaltWells Geothermal Plant, geothermal PPA-23.6MW 8. Stillwater2 Geothermal Plant, geothermal PPA-47.2 MW 9. Tuscarora Geothermal Plant, geothermal PPA-32 MW 10. ApexNevada Solar, solarPPA-20MW 11. Las Vegas ValleyWaterDistrict ("LVVWD"; six projects), solarPPA-3 MW 12. Mountain View Solar, solarPPA-20MW 13. Nellis AirForceBase, Solar Star, solarPPA-13.2 MW 14. Nevada Solar One, solarPPA-46.9 MW (balance ofplantcontractedto Sierra) 15. Silver State Solar, solarPPA-52MW 16. SpectrumNevada Solar, solarPPA-30MW 17. Stillwater2 Solar, solarPPA-22MW 18. SpringValleyWind, windPPA-151.8 MW 19. CC Landfill Facility, gas recovery PPA-12MW 20. LockwoodRenewableEnergyFacility, gas recovery PPA-3.2 MW 29SECTION VI- SUMMARY OFENERGY SUPPLY PLAN: NAC §704.9215(f) PursuanttoNAC §704.9061, an "Energy SupplyPlan" 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) Minimizingthe cost ofsupply; Minimizingretail pricevolatility; and Maximizing the reliability of energy supply over the term ofthe energy supply plan. 2. Is composed of a purchased power procurement plan, fuel procurement plan and riskmanagement strategy. NevadaPower'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 overthe ActionPlan periodto adequately respond to changes in the market, changes in the Company's expected loads and resources, and other significant changes in circumstances. PursuanttoNAC § 704.9504, NevadaPowermay deviate from the approvedESP "to the extent necessary to respond adequately to any significant change in circumstances not contemplated by the Energy Supply Plan." IfNevada Power deviates from its approved ESP, it will inform the Commission's Staff ofthe 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 ofthe ESP filed pursuant to NAC § 704.9506, or by filing an amendment to the ESP pursuanttoNAC §704.9504(3). Pursuant to NAC §§ 704.9508(2) and 704.9494, the Commission may determine that the elements ofan ESP are prudentifthe following requirements are met:
• TheESP balances the objectives ofminimizingthe cost ofsupply, minimizingretail price volatility and maximizingthe reliability ofsupply overtheterm oftheplan.
• TheESP optimizesthe value ofthe overall supply portfolio oftheutility for thebenefit of its bundledretail 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 ofthe creditworthiness oftheutility. The 2015 ESP Update balances the objectives ofminimizing the cost ofsupply, minimizing retailpricevolatility andmaximizingthereliability of supply overthe termof theplan. Price volatility risk remains, particularly with respect to fuel supplies. Assuming approval ofthe proposed ESP Update, the estimated costs offuel and purchased power costs during the Action Plan period under the low, base, and high fuel & purchased power price scenarios are summarized inFigure S-4. FIGURE S-4 ESTIMATED COSTTO SERVE FOR2015

The Company calculated the projected Base Tariff Energy Rates ("BTERs") and Deferred Energy Accounting Adjustment ("DEAA'') rates for 2015 underthe low, base, and high fuel and purchased power price forecasts. The projected BTER and DEAA rates, along with estimated carrying charges, are presentedin Technical Appendices. The expected costto serve and forecasted rates are expected to remain within areasonable band underthe Company'sproposed procurement strategies. This ESPoptimizes the value of the overall supplyportfolio of the utilityfor the benefit ofits bundledretailcustomers. 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 ortechnical factors. Day-ahead or day-ofpowerpurchases are expected to be made if there is an open position, or if system costs of decremental energy exceed the additional cost ofmarket purchases. Similarly, day-ahead or day-ofpower 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 31reverse RFPs for the prospective forward sale of heat rate call options, as specified in the Portfolio OptimizationProceduresManual. This ESPdoes notcontain any feature ormechanismthatwouldimpairtherestoration of the creditworthiness ofthe utility or would lead to a deterioration ofthe creditworthiness ofthe 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. IfNevadaPowerlater determines a need for additional capacity or energy, the Company will procure needed products through a competitive bidding process. Any proposed purchases ofgreater than three years in duration will be submitted to the Commissionfor approval in accordance withNAC §§ 704.9113 and 704.9512. In addition, Nevada Powerwill continue to make forward and short-term sales of resources not expectedto be neededto 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 ofpurchasing PCs from customers in Nevadawho hostrenewable energy systems withuncommitted 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

32suppliers to acceptreasonable commercial terms. All ofNevadaPower'sphysical gas is expected to come from the Rocky Mountain gas supplybasin. 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. NevadaPoweris 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 ofthe acquisition ofLV Cogen, Nevada Power will assume and maintaintwo 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 inthe amount of25,000 MMBtu/dayto covertwo 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 ofits customers for periods beyond March 2014, it will make a specific proposal to the Commission in its next ESP filing, afuture ESPupdate orin an ESP amendment filed pursuantto 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. RISKMANAGEMENT STRATEGY The Company'srisk management strategy includes:
• Detailed corporate governance and risk control policies and procedures;
21 Kern River Gas Transmission Company's Tariffin 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 shipperwill be charged Period Two rates." 33• Compliance with approved supply plans; • Reduced reliance on volatile wholesale markets; • Increased fuel diversity; • Use ofcompetitiveprocurementprocesses; • Gas hedging strategies; and • Marketmonitoring. Risk Control measures the Company's energy portfolio against specific criteria, including transaction approval limits, testperiod mark-to-base, value at risk, and creditrisk limits. Specific measurements are compared to the approved exposure notification thresholds. Reports are prepared to identify, track and report compliance withthe Company'srisk policies. Credit Risk Management mitigates risk ofthe 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 withinthe Company'spolicy limits. SECTION VII - A SUMMARY OF THE ACTIVITIES, ACQUISITIONS, AND COSTS INCLUDED IN THE ACTIONPLAN OF THE UTILITY: NAC §704.9215(2)(g)22 The Company seeks Commission approval ofthe 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 ofthe load forecast that is provided in the Load Forecast, MarketFundamentals 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 thatthe load forecast is based upon substantially accurate datathat 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 makingthrough the Action Planperiod.*
B. FUELAND PURCHASED POWERFORECAST- IRP & ESP
• Approval ofthe 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). 34forecasts are based upon substantially accurate data that has been adequately demonstrated and defended, and has been adequately documented andjustified. A finding thatthe fuel and purchased powerforecasts are appropriate for resource planning decision makingthrough the Action Planperiod.* C. ERCRPLAN (1) RetirementPlan
• Approval to retire coal-fired generatingunits as shown in Table S-17. TABLE S-17 RETIREMENTPLAN Unit Planning Retire or Capacity Eliminate Reid Gardner Generating 300MW Retire Station, Units 1, 2 & 3 Reid Gardner Generating 257MW Retire Station, Unit4 Navajo Generating Station, 11.3 255MW Eliminate percent Ownership Interest TotalRetired/Eliminated 812MW PlanningCapacity Note: Retlre 1s to remove aumtpermanently from serv1ce. Eliminate is to divest autility's ownership interest inthe facility. Date 12/31/2014 12/31/2017 12/22/2019

(2) 550 MW ofCompany-Owned Replacement Capacity, see Table S-18
• A finding, pursuantto NAC § 704.0097, that good cause exists for deviating from LCB Rl31-13 § 12(8).
• Approval to acquire 224 MW ofintermediate gas-fired combined cycle capacity from LVCogenUnit2.
• 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) solarPVfacility. 35• Approval to acquire LV Cogen Unit 1as apackage with LV Cogen Unit2. TABLE S-18 550 MW COMPANY-OWNED REPLACEMENT CAPACITY (NON-TECHNOLOGY SPECIFIC) Unit Timing of Planning Type of Fuel Replacement Capacity Capacity LV Cogen Unit2 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 ISthe rehable capacity at thehme ofsummerpeak. Withregard to the Moapa Solar Generating Station, the "nameplate" capacity is approximately 200 MW. (3) 350 MW ofReplacement 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 doesnot include an allowance for funds used during construction ("AFUDC"). 24LVCogenUnit 1will be acquired as apackage withLV CogenUnit 2. 36RFP Schedule 300 MW EVENT ReleasePublicNotice ShortList/StartNegotiations ConcludeNegotiations TABLE S-19 THREE 100 MW RFPS 2014 10/01/14 02/13/15 03/30/15 IRP (Amendment) Approval Filing 07/01/15 PUCNApproval 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 oftheNellis Solar Array II, a 15 MW solarPVfacility located ontheNellis 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 newClinton 69/12 kV substation at a cost of$3.2million, excludingAFUDC.
• Approval to spend up to $4.4 million as shown in Table S-20 on initial siting activities related to one ormore proposed new solarPVgeneratingfacilities northeast ofLasVegas in ClarkCounty, Nevada.

25 LCB Rl31-13 § 12.3(a) requires that the Company shall not accept proposals until the previous RFP is complete. Proposals wouldbe accepted (due) inFebruary 2016. 37TABLE S-20 CLARKCOUNTY SOLARDEVELOPMENTBUDGET TOTAL

PRE- 2015 TOTAL26 2015 Permitting costs $95 $1,101 $1,196 Projectmanagement 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. RENEWABLES
• Approval ofthe Renewable Expansion Plan set forth in Section 2.D. ofthe Supply SidePlan. 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 briefamendment seeking separate approval ofthe 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 forthe Harry Allen 500/230 kVtransformerwiththe ERCRfiling for hearing purposes.
• To interconnect the Moapa Solar Projectto 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 Ifpermitting efforts continue beyond 2015, estimated costs total approximately $7.3 million. 38F. DEMAND SIDE PROGRAMS Nevada Power is not seeking approval of any change to its approved DSM Plan. The DSM portfolio ofprograms is consistentwiththat included inNevadaPower's application for approval ofits 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 ofthe alternative expansion plans evaluated for this Emissions Reduction and Capacity Replacement plan. As required by the Commission's regulations, the Companywill file an updateto its 2015 DSMPlanby July 1, 2014. G. ENERGY SUPPLY PLAN NevadaPower'sEnergy SupplyPlanis described in Section VI above. H. ACTIONPLANBUDGET Table S-21liststhe individual projects and the associatedbudgets for the Action Planperiod.

39GenerationAction Plan Projects
LV Cogen 1 and 2 Sun-Peak TABLE S-21 ACTION PLANBUDGET27 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 previouslyapproved 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 ofnew Harry Allen 1,500 MV A, 500/230 kV autotransformer 45 days after it files the ERCR. The Company will rely onthe information provided in this ERCR in making its amendment filing, and seekto consolidate the amendmentrequesting approval for the Harry Allen 500/230 kVtransformer with the ERCRfilingforhearingpurposes. 40