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“WHO” “WHAT” WHY” “HOW” Getting Energy to the Market

“WHO” “WHAT” WHY” “HOW” Getting Energy to the Market. Nevada Conference on Economics & Energy October 27, 2005 Elko Convention Center Carolyn Barbash – Transmission Executive. Sierra Pacific Resources (SPR)

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“WHO” “WHAT” WHY” “HOW” Getting Energy to the Market

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  1. “WHO” “WHAT” WHY” “HOW”Getting Energy to the Market Nevada Conference on Economics & Energy October 27, 2005 Elko Convention Center Carolyn Barbash – Transmission Executive

  2. Sierra Pacific Resources (SPR) Sierra Pacific Resources is a holding Company with two separate operating subsidiaries that are vertically integrated public utilities. Nevada Power in southern Nevada (Las Vegas, Henderson, Laughlin) Sierra Pacific Power in western, central and northeastern Nevada and northeastern California Energy To Market“WHO”

  3. Energy To Market“WHO” Nevada Power Company (NPC) • Approximately 4,500 square miles in southern NV • Peak Load 5,587 MW • 738,000 Electric Customers • 1,665 Miles of Transmission Lines

  4. Energy To Market“WHO” Sierra Pacific Power Company (SPPC) • Approximately 50,000 sq. miles in northern NV and northeastern CA • Peak Load 1,744 MW • 343,000 Electric and 135,000 Gas Customers • 2,165 Miles of Transmission Lines

  5. Energy To Market“WHO” Regulated by Two Governmental Entities • Public Utilities Commission of Nevada (PUCN) • Bundled Retail Service • Federal Energy Regulatory Commission (FERC) • Transmission Provider Regulations (TP) • Transmission Access & Rates (OATT) • Generator Interconnect Procedures

  6. Energy To Market“WHY” Nevada State Renewable Energy • 20% required by 2015 (5% solar) • SP Currently has 10% Renewable • NP Currently has < 1% Renewable • Both companies currently supply > 50% energy with Purchased Power

  7. Energy To Market“WHY” FERC Transmission Provider Regulations • Transmission Provider and Power Purchasing Functionally Separated • Designed to restrict undue preferences given to Marketing Energy Affiliates • Encourages private investment in Energy Resources • Treat all Transmission & Interconnect Customers Consistently • Required Processes and Procedures with Predetermined Timeframes

  8. Energy To Market“WHAT” Power Utility Producers Transactions Liquid Market Merchant Power Purchase Agreement Self Provide Interconnect Agreement Committed Independent Transmission Agreement Power Producer Power Producers often require parallel Utility Transactions paths

  9. Energy To Market“HOW” OATIOASIS – Open Access Same Time Information System Provides detailed information on Transmission & Interconnect Processes and Agreements • http://www.oatioasis.com/NEVP/index.html • http://www.oatioasis.com/sppc/index.html

  10. Energy To Market“WHAT” Open Access Transmission Tariff (OATT) Transmission – An Interconnected group of electric lines for moving or transferring electric energy in bulk between points of supply and points at which it is transformed for delivery. Transmission Service Agreements • Long- Term Firm Point-To-Point Transmission Service > 1 Yr. • Short-Term Firm Point-To-Point Transmission Service < 1 Yr. • Non-Firm Point-To-Point Transmission Service • Network Service http://www.oatioasis.com/SPPC/SPPCdocs/Effective_OATT-_Part_1_-_August_2005.pdf

  11. Energy To Market“WHAT” Open Access Transmission Tariff (OATT) Interconnect – the service provided by the Transmission Provider (TP) to a generating facility allowing the TP to receive electric energy and capacity from the generator at the point where the TP and generating facilities intersect. Interconnect Service Agreements • Small Generator Interconnect < 20 MW • Large Generator Interconnect > 20 MW

  12. Energy To Market“HOW” Valid LGIA Interconnection Request • $10,000 deposit • Completed Application (form in Appendix 1) • Prove site control or additional $10,000 deposit http://www.oatioasis.com/SPPC/SPPCdocs/OATT-_Att_N_-_August_2005.pdf

  13. Energy To Market“WHAT” Large Generator Interconnection Agreement (LGIA) Attachment N pg. 352 • > 20 MW Generator • Standard LGIA Agreement • Scoping Meeting • Interconnect Feasibility Study and/or System Impact Study Required • < 180 days from Request to executed Agreement

  14. Energy To Market“HOW” Small Generators Interconnect Process • < 2 MW Fast Track Available • Screening process for applicability • No study required • 30 days from complete Interconnection Request to executable Interconnect Agreement • Standard SGIA Agreement • Standard SGIA Process http://www.oatioasis.com/sppc/sppcdocs/OATT_-_Att_O_-_August_2005.pdf

  15. Energy To Market“WHAT” Valid SGIA Interconnection Request • Lesser of 50% of estimated feasibility study cost or $1,000 deposit • Completed Application (Attachment 2) • Prove site control

  16. Energy To Market“WHAT” Small Generators Interconnect Agreement (SGIA) Attachment O pg. 500 • < 20 MW Generator • SGIA simplified agreement compared with LGIA • Up to 180 days from Request to executed Agreement • Termination 20 days with written notification

  17. “WHO” “WHAT” WHY” “HOW”Getting Energy to the Market Who to contact: Chris Tomchuk Manager, Transmission Business Development (775) 834-5876 Renee Hull, Business Development Executive (775) 834-5441 Pat Assuras, Business Development Contracts (775) 834-3752 Powerful Partnerships for Over a Century

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