Gary Smith, Director Customer Energy Solutions Consumer Confidence One step at a time

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1 Gary Smith, Director Customer Energy Solutions Consumer Confidence One step at a time This material is based upon work supported by the Department of Energy under Award Number DE-OE

2 Smart Grid For Nevada Nevada Statewide Project Serves 1.3MM electric meters and156k gas modules 46,000 square mile service territory Program cost $303MM SGIG funding $139MM Annual steady state benefits $35MM Status as of North 15,000 To-Go Balance Electric 328,000 Gas 150,000 South- 747,000 To-Go Balance 154,000 Residential Large Residential kwh Commercial kwh + kw Complex Billing 81,000 73,000

3 Consumer Confidence One step at a time

4 Security NV Energy is executing its Cybersecurity Plan The US Department of Energy has approved and has completed an onsite evaluation of the implementation progress The Cybersecurity Plan is guided by appropriate standards, best practices, and ongoing security testing 1 Installed firewalls, Virtual Private Networks (VPN), and implemented meter encryption 2 Engaged third-party Cybersecurity firm to complete an end-to-end technical security assessment of the AMI components and network 3 Established and staffed a new 24/7 Security Operations Center 4

5 Customer Safety Each element of the NV Energy AMI Network has been verified by a third-party to operate far below FCC exposure limits The NV Energy AMI Network produces RF exposures at levels at least 15,000 times lower than the FCC exposure limit Fact The NV Energy s electric smart meters typically transmit a total of 3 seconds per day. Gas smart modules typically transmit a total of less than 1 second per day Fact Meter Banks- Need 23,000 electric smart meters (or 83,000 gas modules) within a 1 foot distance to exceed FCC exposure limits Fact 1/15,700 of FCC 1/450,000 of FCC

6 Customer Privacy NV Energy has taken, and will continue to take, reasonable and appropriate steps to protect sensitive customer information Smart meters can not track and record individual appliance usage; instead, smart meters record whole-house usage just like analog and existing digital meters 1 Smart meters do not transmit personally identifiable information over its smart grid network 2 NV Energy may not provide any list of the names, addresses, or telephone numbers of its customers, or any related information about its customers, to any other person for commercial purposes (NAC , sub3) 3

7 Accuracy NV Energy smart meters have 3-levels of accuracy verification Standards Compliance All meters must comply with American National Standards Institute (ANSI) standards for accuracy and safety Certification 1 The University of Nevada, Reno (UNR) is 2 providing independent, third-party testing of AMI meters for accuracy Acceptance First article testing: industry-standard set of tests conducted by NV Energy before introduction of a new meter into the utility system Factory testing: validation that 100% of the meters produced at the factory meets accuracy requirements 3 Sample testing: testing of a sample (5%) of each meter shipment to validate accuracy, reliability and safety Periodic testing: testing of a sample of installed meters throughout the life of the meter to validate accuracy

8 Verification NV Energy verifies billing accuracy after new meter is installed All new smart meters are read manually by a Meter 1 Reader at least once 2 The manual read is compared to the automated read to verify accuracy 3 Potentially high and low usage is flagged and reviewed before bills are sent to customers Result 600,000 + bills have been processed with 0.59% requiring adjustments primarily from incorrect manual reads on the old meters

9 Meter Deployment Consumer Outreach Community Awareness 30-Days Phone Call Day-of Satisfaction Survey 60 -Days Direct Mail 5-Days Knock on Door Post

10 Customer Benefits 56% of customers with smart meters have signed up for MyAccount Bill-to-date and Energy use at 15-minute intervals 1 2 Alerts by 3 Remote Connect/Disconnect

11 Usage & Bill Awareness My Account Views of private & secure usage information

12 Proactive Usage & Bill Management My Account Alert functionality ( ) Coming Soon

13 AMI Remote Connect/Disconnect First 120 days 185,000 Automated Orders 86% of the automated orders were customer moves Start-up Throttling Day 1: 40 Orders per 10 minutes or 240 per hour Day 120: 150 Orders per 10 minutes or 900 per hour Capacity: 300 orders per 10 minutes or 1,800 per hour DNP Highest volume day 11/30/2011 4,384 Average per day volume 1,475 Moves Total Exceptions truck rolls (1.7%) 2,889 Consumer Bill of Rights 0 50, , , ,000 Hours- 7:30am to 12:30pm Payments received by 2:00pm require connection same day. Payments received after 2:00pm require connection within 24-hours.

14 Non-Standard Metering Option One New Chapter in Consumer Confidence 99.2% of the scheduled smart meter installations have been completed Nevada Commission concluded that the NVEnergize program has taken reasonable and appropriate steps to ensure the AMI network is safe, secure, private and accurate. In a 2-1 Vote the Nevada Commission determined that a trial opt-out program is warranted to determine the need for a permanent non-standard metering option: Digital meter capable of drive-by monthly meter reading (no interval data) Customers that opt-out are required to pay the full incremental costs (no low income rate) NV Energy has 60-days from approval of order to file upfront and monthly costs NV Energy has 90-days from approval to transition customers from postponement list to a smart meter or the non-standard metering option NV Energy is to base its estimate on 7,500 customers state-wide After a 12-month test year the commission will determine if there are sufficient customers to economically support the program. If yes, NV energy will file a permanent tariff and calculate the actual monthly costs to serve the actual number of customers

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